FACT BOOK
For the Year Ended March 31, 2020
May 12, 2020
1-1, Nihonbashi Muromachi 2-chome,Chuo-Ku, Tokyo, 103-0022, Japan
https://www.mitsuifudosan.co.jp/english/
Corporate Data | Contents | |
(As of March 31, 2020) | ||
Head Office: | Corporate Data, Contents | 1 |
1-1, Nihonbashi Muromachi 2-chome,Chuo-ku, Tokyo, | ||
103-0022, Japan | Consolidated Business Overview | 2 |
Date of Establishment: | Segment Results | 3 - 6 |
July 15, 1941 | ||
[Reference] Overseas Business | 6 | |
Share Capital: | ||
¥339,766 million | Consolidated Balance Sheets | 7-8 |
Number of Issued and Outstanding Shares: | Disclosure of Market Value of Rental Properties | 9 |
979,250,227 | ||
Segment Information | 10 | |
Stock Exchange Listings: | ||
Tokyo (Code: 8801) | Consolidated Statements of Income | 11 |
Consolidated Statements of Cash Flows | 12 | |
Consolidated Statements of Earning Forecasts | 13-14 | |
Contingent Liabilities | 15 | |
[Reference] Change of Segment Classification | 16 | |
Consolidated Financial Highlights | 17 |
Forward-Looking Statements
In this Fact Book, statements other than historical facts are forward-looking statements that reflect the Company's plans and expectations. These forward-looking statements involve risks and uncertainties related to internal and external factors that may cause actual results and achievements to differ from those anticipated in these statements. Therefore, we do not advise potential investors to base investment decisions solely on this Fact Book.
1
CONSOLIDATED BUSINESS OVERVIEW
Results of Operations | (¥ millions) | ||
Year Ended March 31 | Change | ||
2020 | 2019 | ||
Revenue from Operations | ¥1,905,642 | ¥1,861,195 | ¥44,447 |
Leasing | 636,056 | 603,284 | 32,771 |
Property Sales | 524,094 | 530,766 | (6,671) |
Management | 421,490 | 404,346 | 17,143 |
Other | 324,001 | 322,797 | 1,204 |
Operating Income | 280,617 | 262,147 | 18,470 |
Leasing | 145,893 | 141,945 | 3,947 |
Property Sales | 123,745 | 98,037 | 25,707 |
Management | 55,670 | 55,180 | 490 |
Other | 2,291 | 9,157 | (6,866) |
Elimination or Corporate | (46,982) | (42,172) | (4,809) |
Non-Operating Income/Expenses | (22,107) | (8,041) | (14,065) |
Equity in Net Income/Loss of Affiliated Companies | 5,715 | 14,895 | (9,180) |
Interest Income/Expense, in Net | (28,009) | (26,933) | (1,076) |
Other, in Net | 187 | 3,996 | (3,808) |
Ordinary Income | 258,510 | 254,106 | 4,404 |
Extraordinary Gains/Losses | 2,706 | (12,063) | 14,769 |
Extraordinary Gains | 16,710 | 1,481 | 15,229 |
Extraordinary Losses | 14,004 | 13,544 | 459 |
Income before Income Taxes | 261,217 | 242,043 | 19,173 |
Income Taxes | 76,522 | 71,906 | 4,616 |
Profit | 184,694 | 170,136 | 14,557 |
Profit (Loss) Attributable to Non-Controlling Interests | 721 | 1,475 | (753) |
Profit Attributable to Owners of Parent | ¥183,972 | ¥168,661 | ¥15,311 |
◆Overview
-
For the fiscal year ended March 31, 2020, revenue and earnings increased in the "Leasing" segment. This was
mainly due to the full-term contributions from offices and retail facilities* which were completed and opened for operation during the previous fiscal year, as well as contributions to revenue by LaLaport NUMAZU, which was opened for operation in the fiscal year under review. Additionally, due to growth in property sales to investors and progress with the handover of condominiums-for-sale at Park Tower Harumi and The Tower Yokohama Kitanaka in the "Property Sales" segment, in overall terms revenue from operations increased ¥44.4 billion, or 2.4%, operating income climbed ¥18.4 billion, or 7.0%, and ordinary income increased ¥4.4 billion, or 1.7%, year on year. Profit attributable to owners of parent also increased ¥15.3 billion, or 9.1%.
(*msb Tamachi Tamachi Station Tower South, Nihonbashi Takashimaya Mitsui Building, 55 Hudson Yards, MITSUI OUTLET PARK TAICHUNG PORT, Nihonbashi Muromachi Mitsui Tower and others)
Revenue from operations was a record high for the eighth consecutive period, while operating income, ordinary income, and profit attributable to owners of parent were record highs for the sixth consecutive period.
Due to the recent spread of COVID-19, retail facilities are being temporarily closed per requests by the government and local administrative authorities. As a result, the Company is supporting stakeholders through measures such as reducing and waiving rent payments for some facilities owned by the Company. Nevertheless, when considering the increase in revenue and earnings in the period under review, the Company plans to implement the following return to shareholders.
・The annual dividend is ¥44 per share as announced at the start of the period (scheduled)
(An interim dividend of ¥22 has already been paid and the Company plans to pay a period-end cash dividend of ¥22.)
・In addition to the purchase of Company shares (¥15.0 billion) that was completed in March and April of 2020, the Company has decided to purchase its own shares to a maximum of ¥10.0 billion and 10 million shares (purchase period: May 13, 2020 to March 31, 2021).
・We forecast a total return ratio of 36.9% for profit attributable to owners of parent.
Progress Comparison with Full Year Forecasts | (¥ millions) | |||||
Year Ended | Year to March 2020 | Full-Year Results / | ||||
(Forecast as of | Full-Year Forecast | |||||
March 31, 2020 | ||||||
January 30, 2020) | (%) | |||||
Revenue from Operations | ¥1,905,642 | ¥2,013,000 | 94.7 | |||
Operating Income | 280,617 | 280,000 | 100.2 | |||
Ordinary Income | 258,510 | 259,000 | 99.8 | |||
Profit Attributable to Owners of Parent | 183,972 | 192,000 | 95.8 | |||
Extraordinary Gains/Losses | (¥ millions) | |||||
【Extraordinary Gains】 | ||||||
Gain on Sales of Investment Securities | ¥16,710 | |||||
Total | ¥16,710 | |||||
【Extraordinary Losses】 | ||||||
Loss on Sales of Non-Current Assets | ¥4,257 | |||||
Loss on Sale of Businesses | 2,962 | |||||
Loss on Valuation of Investment Securities | 2,868 | |||||
Loss Related to COVID-19 | 2,402 | |||||
Impairment Loss | 1,513 | |||||
Total | ¥14,004 | |||||
Consolidated Statements of Comprehensive Income | (¥ millions) | |||||
Year Ended March 31 | ||||||
2020 | 2019 | |||||
Profit | ¥184,694 | ¥170,136 | ||||
Other Comprehensive Income | (17,690) | 31,401 | ||||
Valuation Difference on Available-For-Sale Securities | (14,550) | 36,382 | ||||
Deferred Gains or Losses on Hedges | (153) | 322 | ||||
Foreign Currency Translation Adjustment | (711) | (8,405) | ||||
Remeasurements of Defined Benefit Plans, Net of Tax | (3,982) | 7,670 | ||||
Share of Other Comprehensive Income of Associates Accounted | 1,707 | (4,568) | ||||
for Using Equity Method | ||||||
Comprehensive Income | ¥167,004 | ¥201,538 | ||||
(Comprehensive Income Attributable to Owners of the Parent) | 166,471 | 200,524 | ||||
(Comprehensive Income Attributable to Non-Controlling Interests) | 532 | 1,013 | ||||
【Reference】 Nonconsolidated Operating Income/Expenses (Mitsui Fudosan) | (¥ millions) | |||||
Year Ended March 31 | Change | |||||
2020 | 2019 | |||||
Revenue from Operations | Leasing | ¥577,450 | ¥556,207 | ¥21,243 | ||
Property Sales | 135,685 | 119,026 | 16,658 | |||
Other | 63,219 | 58,746 | 4,473 | |||
Total | 776,355 | 733,980 | 42,375 | |||
Gross Profit Margin (%) | Leasing | 16.3 | 17.6 | (1.3)pt | ||
Property Sales | 50.8 | 38.4 | 12.4 pt | |||
Other | 54.2 | 55.6 | (1.4)pt | |||
Operating Income | ¥156,551 | ¥140,655 | ¥15,895 |
2
SEGMENT RESULTS
[1] LEASING
(¥ millions) | ||||
Year Ended March 31 | Change | |||
2020 | 2019 | |||
Revenue from Operations | ¥636,056 | ¥603,284 | ¥32,771 | |
Operating Income | 145,893 | 141,945 | 3,947 | |
Year to March 2020 | Full-Year Results / | |||
(Forecast as of | January | |||
Full-Year Forecast (%) | ||||
30, 2020) | ||||
Revenue from Operations | ¥630,000 | 101.0 | ||
Operating Income | 144,000 | 101.3 | ||
- In the "Leasing" segment, overall revenue from operations rose ¥32.7 billion compared with the previous fiscal year, and operating income increased ¥3.9 billion year on year. This was mainly due to the full-term contributions from msb Tamachi Tamachi Station Tower South, Nihonbashi Takashimaya Mitsui Building, 55 Hudson Yards, MITSUI OUTLET PARK TAICHUNG PORT and Nihonbashi Muromachi Mitsui Tower, which were completed and opened for operation during the previous fiscal year, as well as contributions to revenue by LaLaport NUMAZU, which was opened for operation in the fiscal year under review.
The vacancy rate for the Company's office buildings located in the Tokyo metropolitan area was 1.9% on a non-consolidated basis.
【Reference】 Non-consolidated Results
(Revenue from operations)
- Newly on-stream and full-term contribution projects: ¥25.3 billion year-on-year increase in revenue
- Existing properties: ¥1.9 billion year-on-year increase in revenue
- Shifting, terminations, etc.: ¥6.0 billion year-on-year decrease in revenue
Breakdown of Leasing Operations (Non-consolidated)
At March 31 | |||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||
Total | Tokyo | Regional Areas | |||||||
Metropolitan Area | |||||||||
Number of Buildings | 139 | 133 | 111 | 105 | 28 | 28 | |||
Office | Leased Floor Space (1,000m2) | 2,808 | 2,753 | 2,482 | 2,427 | 326 | 326 | ||
Buildings | Leasing Revenue (¥ millions) | 311,761 | 291,305 | 289,781 | 269,632 | 21,980 | 21,672 | ||
Vacancy Rate (%) | 1.9 | 1.7 | 1.9 | 1.7 | 1.3 | 1.8 | |||
Number of Buildings | 89 | 87 | 64 | 60 | 25 | 27 | |||
Retail | Leased Floor Space (1,000m2) | 2,086 | 2,116 | 1,364 | 1,375 | 723 | 741 | ||
Facilities | Leasing Revenue (¥ millions) | 231,684 | 231,790 | 159,780 | 161,504 | 71,903 | 70,285 | ||
Vacancy Rate (%) | 2.2 | 1.2 | 2.7 | 1.3 | 1.3 | 0.9 |
Leased Floor Space | (¥ millions) | |||||||
At March 31 | Change | |||||||
2020 | 2019 | |||||||
Revenue | Office Buildings | ¥360,260 | ¥337,733 | ¥22,526 | ||||
Retail Facilities | 240,407 | 238,345 | 2,062 | |||||
Office Buildings and | Total Leased Floor Space | (1,000 m2): | 5,462 | 5,341 | 121 | |||
Owned | 2,051 | 1,969 | 82 | |||||
Retail Facilities | Office Buildings | |||||||
Managed | 1,207 | 1,179 | 27 | |||||
Retail Facilities | Owned | 1,675 | 1,593 | 82 | ||||
Managed | 529 | 600 | (71) | |||||
Other | Revenue | 35,388 | 27,205 | 8,182 | ||||
Total Revenue | ¥636,056 | ¥603,284 | ¥32,771 | |||||
Vacancy Rate | (%) | |||||||
3/2020 | 3/2019 | 3/2018 | 3/2017 | 3/2016 | 3/2015 | |||
Consolidated | 2.3 | 1.8 | 2.4 | 3.1 | 2.2 | 3.2 | ||
Office Buildings and Retail Facilities (including overseas) | ||||||||
Non-consolidated | 1.9 | 1.7 | 2.2 | 3.4 | 2.6 | 3.2 | ||
Tokyo Metropolitan Area Office Buildings | ||||||||
Regional Area Office Buildings | 1.3 | 1.8 | 2.3 | 2.3 | 3.1 | 4.1 | ||
Major Projects during the Period | ||||||||
(NEWLY OPENED) | ||||||||
LaLaport NUMAZU (Numazu, Shizuoka) | Retail facility opened in October 2019 | |||||||
Otemachi One Tower (Chiyoda-ku, Tokyo) | Office building completed in February 2020 | |||||||
TOYOSU BAYSIDE CROSS TOWER (Koto-ku, Tokyo) | Office building completed in March 2020 | |||||||
(FULL-TERM CONTRIBUTION) | ||||||||
2 Television Centre (London, UK) | Office building completed in March 2018 | |||||||
msb Tamachi Tamachi Station Tower South (Minato-ku, Tokyo) | Office building completed in May 2018 | |||||||
Nihonbashi Takashimaya Mitsui Building (Chuo-ku, Tokyo) | Office building completed in June 2018 | |||||||
OVOL Nihonbashi Building (Chuo-ku, Tokyo) | Office building completed in June 2018 | |||||||
LaLaport NAGOYA minato AQULS (Nagoya, Aichi) | Retail facility opened in September 2018 | |||||||
55 Hudson Yards (New York, US) | Office building completed in October 2018 | |||||||
MITSUI OUTLET PARK TAICHUNG PORT (Taichung, Taiwan) | Retail facility opened in December 2018 | |||||||
Nihonbashi Muromachi Mitsui Tower (Chuo-ku, Tokyo) | Office building completed in March 2019 | |||||||
3
[2] PROPERTY SALES
(¥ millions) | |||
Year Ended March 31 | Change | ||
2020 | 2019 | ||
Revenue from Operations | ¥524,094 | ¥530,766 | ¥(6,671) |
Operating Income | 123,745 | 98,037 | 25,707 |
Year to March 2020 | Full-Year Results / | ||
(Forecast as of | |||
Full-Year Forecast (%) | |||
January 30, 2020) | |||
Revenue from Operations | ¥613,000 | 85.5 | |
Operating Income | 124,000 | 99.8 | |
- While revenue in the "Property Sales to Individuals (Domestic)" category decreased due to a decrease in the number of reported units, earnings increased due to progress with the handover of properties such as Park Tower Harumi and The Tower Yokohama Kitanaka. In the "Property Sales to Investors and Individuals (Overseas)" category, both revenue and earnings increased due to the growth of sales of properties to investors including J-REITs. Overall, revenue from operations in the "Property Sales" segment fell ¥6.6 billion compared with the previous fiscal year and operating income increased ¥25.7 billion year on year.
Major Projects Undertaken during the Period (Property Sales to Individuals (Domestic))
Park Tower Harumi (Chuo-ku, Tokyo) | Condominiums |
THE TOWER YOKOHAMA KITANAKA (Yokohama, Kanagawa) | Condominiums |
Park Court Hamarikyu The Tower (Minato-ku, Tokyo) | Condominiums |
Park Court NOGIZAKA The Tower (Minato-ku, Tokyo) | Condominiums |
Fine Court Shakujii Park THE GRAND PLACE (Nerima-ku, Tokyo) | Detached Housing |
(Property Sales to Investors)
Osaki Bright Core (Shinagawa-ku, Tokyo) | Office Building |
Osaki Bright Plaza (Shinagawa-ku, Tokyo) | Office Building |
Ikebukuro GLOBE(Toshima-ku, Tokyo) | Retail Facilities |
MFLP Sakai (Sakai, Osaka) | Logistics |
MFLP Prologis Park Kawagoe (Kawagoe, Saitama) | Logistics |
MFLP Hiroshima Ⅰ (Hiroshima, Hiroshima) | Logistics |
Park Axis Oshiage Terrace (Sumida-ku, Tokyo) | Rental Housing |
Park Axis Ikegami (Ota-ku, Tokyo) | Rental Housing |
(Property Sales to Individuals (Overseas))
Television Centre (The Helios, The Crescent) (London, UK) | Condominiums |
Robinson Landing (Alexandria, VA, US) | Detached Housing |
Property Sales to Individuals and Investors | (¥ millions) | |||||||||
Year Ended March 31 | Change | |||||||||
2020 | 2019 | |||||||||
Unit Price | Unit Price | Unit Price | ||||||||
Revenue | Units | (¥10 | Revenue | Units | (¥10 | Revenue | Units | (¥10 | ||
thousand) | thousand) | thousand) | ||||||||
Condominiums | ¥236,023 | 3,194 | ¥7,390 | ¥252,230 | 3,283 | ¥7,683 | ¥(16,207) | (89) | ¥(293) | |
Property Sales to | Detached Housing | 32,638 | 481 | 6,785 | 33,202 | 475 | 6,990 | (564) | 6 | (205) |
Individuals (Domestic) | Subtotal | 268,661 | 3,675 | 7,311 | 285,432 | 3,758 | 7,595 | (16,771) | (83) | (284) |
Operating Income | 29,624 | 26,604 | 3,020 | |||||||
Property Sales to Investors | Revenue | 255,433 | 245,333 | 10,100 | ||||||
and Individuals (Overseas), | ||||||||||
94,120 | 71,433 | 22,687 | ||||||||
etc. | Operating Income | |||||||||
Total Revenue | 524,094 | 530,766 | (6,671) | |||||||
Total Operating Income | ¥123,745 | ¥98,037 | ¥25,707 | |||||||
Breakdown for the Revenue from the Property Sales to Individuals (Domestic) | (¥ millions) | |||||||||
Year Ended March 31 | Change | |||||||||
2020 | 2019 | |||||||||
Revenue | Units | Revenue | Units | Revenue | Units | |||||
Condominiums | Tokyo Metropolitan | ¥208,144 | 2,515 | ¥223,412 | 2,729 | ¥(15,268) | (214) | |||
Area | ||||||||||
Other | 27,878 | 679 | 28,817 | 554 | (939) | 125 | ||||
Total | 236,023 | 3,194 | 252,230 | 3,283 | (16,207) | (89) | ||||
Detached Housing | Tokyo Metropolitan | 31,896 | 466 | 33,202 | 475 | (1,306) | (9) | |||
Area | ||||||||||
Other | 741 | 15 | - | - | 741 | 15 | ||||
Total | ¥32,638 | 481 | ¥33,202 | 475 | ¥(564) | 6 | ||||
Inventories of Property Sales to Individuals (Domestic) | (Units) | |||||||||
3/2020 | 3/2019 | 3/2018 | 3/2017 | 3/2016 | 3/2015 | |||||
Condominiums | 128 | 141 | 108 | 321 | 88 | 83 | ||||
Detached Housing | 58 | 30 | 40 | 69 | 127 | 100 | ||||
Total | 186 | 171 | 148 | 390 | 215 | 183 |
Contracted for Sale from the Property Sales to Individuals (Domestic) | (Units) | ||||||
Contracts at | Contracts | Total | Reported No. of | Contracts at End of | Newly Launched | ||
Beginning of Term | during Term | Units | Term | during Term | |||
Condominiums | 4,331 | 2,536 | 6,867 | 3,194 | 3,673 | 2,484 | |
Detached Housing | 119 | 426 | 545 | 481 | 64 | 460 | |
Total | 4,450 | 2,962 | 7,412 | 3,675 | 3,737 | 2,944 |
4
[3] MANAGEMENT
(¥ millions) | ||||
Year Ended March 31 | Change | |||
2020 | 2019 | |||
Revenue from Operations | ¥421,490 | ¥404,346 | ¥17,143 | |
Operating Income | 55,670 | 55,180 | 490 | |
Year to March 2020 | Full-Year Results / | |||
(Forecast as of | January | |||
Full-Year Forecast (%) | ||||
30, 2020) | ||||
Revenue from Operations | ¥410,000 | 102.8 | ||
Operating Income | 52,000 | 107.1 |
- In the "Property Management" category, both revenue and earnings increased due to factors including contracts for large properties in the operation/management business and an increase in the number of managed units in the "Repark" business. (car park leasing business).
In the "Brokerage and Asset Management, etc." category, revenue increased but earnings decreased. This was due to factors including an increase in asset management fees in the "Asset Management Business," but a backlash in brokerage for large corporate properties compared to the previous fiscal year.
As a result, overall revenue from operations in the "Management" segment as a whole climbed ¥17.1 billion compared with the previous fiscal year, and operating income increased ¥0.4 billion year on year.
(¥ millions) | ||||||
Year Ended March 31 | Change | |||||
2020 | 2019 | |||||
Property Management | Revenue | ¥316,228 | ¥302,194 | ¥14,034 | ||
Operating Income | 32,776 | 31,978 | 798 | |||
Brokerage, Asset | Revenue | 105,261 | 102,152 | 3,109 | ||
Management, etc. | Operating Income | 22,894 | 23,202 | (307) | ||
Total | Revenue | ¥421,490 | ¥404,346 | ¥17,143 | ||
Operating Income | 55,670 | 55,180 | 490 | |||
Property Management Business: Car Park Leasing (including "Property Management" category)
(Units) | |||
At March 31, 2020 | At March 31, 2019 | Change | |
Total Managed Units | 268,771 | 245,511 | 23,260 |
Brokerage Business: Mitsui Fudosan Realty
(including "Brokerage and Asset Management, etc." category)
(¥ millions) | |||||||||
Year Ended March 31 | Change | ||||||||
2020 | 2019 | ||||||||
Brokerage | Transaction | Units | Transaction | Units | Transaction | Units | |||
Volume | Volume | Volume | |||||||
¥1,783,232 | 42,818 | ¥1,706,843 | 41,533 | ¥76,389 | 1,285 |
Consignment Sales Business: Mitsui Fudosan Residential (including "Brokerage and Asset Management, etc." category)
(¥ millions) | |||||||||
Year Ended March 31 | Change | ||||||||
2020 | 2019 | ||||||||
Consignment Sales | Transaction | Units | Transaction | Units | Transaction | Units | |||
Volume | Volume | Volume | |||||||
¥83,840 | 1,127 | ¥102,196 | 1,461 | ¥(18,356) | (334) | ||||
5
[4] OTHER
(¥ millions) | ||||
Year Ended March 31 | Change | |||
2020 | 2019 | |||
Revenue from Operations | ¥324,001 | ¥322,797 | ¥1,204 | |
Operating Income | 2,291 | 9,157 | (6,866) | |
Year to March 2020 | Full-Year Results / | |||
(Forecast as of | January | |||
Full-Year Forecast (%) | ||||
30, 2020) | ||||
Revenue from Operations | ¥360,000 | 90.0 | ||
Operating Income | 4,000 | 57.3 | ||
- In the "Facility Operations" category, results benefitted from contribution for the full period from projects such as Mitsui Garden Hotel Nihonbashi Premier, which opened during the previous fiscal year. For the segment overall, however, although revenue increased ¥1.2 billion compared with the previous fiscal year, earnings declined ¥6.8 billion year on year due to the impact of such factors as expenses applicable to new openings, including Halekulani Okinawa, as well the impact of the spread of COVID-19.
(¥ millions) | ||||||
Year Ended March 31 | Change | |||||
2020 | 2019 | |||||
New Construction under Consignment | ¥165,818 | ¥168,173 | ¥(2,355) | |||
Facility Operations | 67,448 | 63,949 | 3,498 | |||
Other | 90,735 | 90,674 | 60 | |||
Total Revenue | ¥324,001 | ¥322,797 | ¥1,204 | |||
Year Ended March 31 | Change | |||||
2020 | 2019 | |||||
Revenue from New Construction under | ¥138,494 | ¥166,077 | ¥(27,583) | |||
Consignment Orders Received | ||||||
Major Projects Undertaken during the Period | ||||||
(NEWLY OPENED) | ||||||
Mitsui Garden Hotel Fukuoka Gion (Fukuoka, Fukuoka) | Hotel opened in June 2019 | |||||
Halekulani Okinawa (Kunigami-gun, Okinawa) | Hotel opened in July 2019 | |||||
Mitsui Garden Hotel Kyoto Station Front (Kyoto, Kyoto) | Hotel opened in August 2019 | |||||
Mitsui Garden Hotel Ginza-gochome(Chuo-ku, Tokyo) | Hotel opened in September 2019 | |||||
Mitsui Garden Hotel Jingugaien Tokyo Premier (Shinjuku-ku, Tokyo) | Hotel opened in November 2019 | |||||
Mitsui Garden Hotel Roppongi Premier (Minato-ku, Tokyo) | Hotel opened in January 2020 | |||||
Mitsui Garden Hotel Sapporo West (Sapporo, Hokkaido) | Hotel opened in February 2020 | |||||
(FULL-TERM CONTRIBUTION) | ||||||
Mitsui Garden Hotel Otemachi (Chiyoda-ku, Tokyo) | Hotel opened in June 2018 | |||||
Mitsui Garden Hotel Gotanda (Shinagawa-ku, Tokyo) | Hotel opened in June 2018 | |||||
Mitsui Garden Hotel Nihonbashi Premier (Chuo-ku, Tokyo) | Hotel opened in September 2018 | |||||
Mitsui Garden Hotel Kanazawa (Kanazawa, Ishikawa) | Hotel opened in January 2019 |
[REFERENCE] OVERSEAS BUSINESS
(¥ millions) | ||||
Year Ended March 31 | Change | |||
2020 | 2019 | |||
Leasing | Revenue | ¥65,004 | ¥55,784 | ¥9,220 |
Operating Income | 19,360 | 16,673 | 2,686 | |
Property Sales | Revenue | 28,167 | 83,903 | (55,736) |
Operating Income | (434) | 18,936 | (19,370) | |
Management, Other, etc. | Revenue | 14,243 | 15,278 | (1,035) |
Operating Income | 1,205 | 1,546 | (340) | |
Pro forma Operating Income of Overseas Affiliates *1 | 7,463 | 18,298 | (10,834) | |
Total Overseas Income | 27,596 | 55,454 | (27,858) | |
Overseas Income Ratio*2 | 9.6% | 19.8% | (10.2)pt | |
*1 Calculated by multiplying the operating income or the amount equivalent to operating income of each overseas equity-method affiliated company by the Company's equity interest (Note).
Note: The amount equivalent to operating income is the amount of profit calculated on a simplified basis after taking into consideration the tax burden.
*2 Total overseas income ÷ (Operating income + Pro forma operating income of overseas affiliates) x 100
6
CONSOLIDATED BALANCE SHEETS
(¥ millions) | ||||
ASSETS: | March 31, 2020 | March 31, 2019 | Change | |
Cash and Time Deposits | ¥183,412 | ¥174,250 | ¥9,162 | |
Accounts Receivable-Trade | 38,908 | 45,276 | (6,367) | |
Marketable Securities | 219 | 949 | (730) | |
Real Property for Sale | 1,043,889 | 802,624 | 241,264 | |
Real Property for Sale in Process | 516,997 | 480,236 | 36,760 | |
Real Property for Development | 318,411 | 321,438 | (3,026) | |
Expenditure on Contracts in Progress | 17,149 | 25,326 | (8,177) | |
Other Inventories | 5,308 | 5,500 | (191) | |
Advance Payments-Trade | 28,541 | 26,259 | 2,282 | |
Short-Term Loans | 18,543 | 18,296 | 246 | |
Equity Investments in Properties for Sale | 6,682 | 6,700 | (18) | |
Other | 215,803 | 210,787 | 5,015 | |
Allowance for Doubtful Accounts | (300) | (409) | 109 | |
Current Assets | 2,393,566 | 2,117,238 | 276,328 | |
Buildings and Structures | 1,965,266 | 1,796,827 | 168,438 | |
Accumulated Depreciation-Buildings and Structures | (757,561) | (721,394) | (36,166) | |
Buildings and Structures, Net | 1,207,705 | 1,075,433 | 132,272 | |
Machinery, Equipment and Vehicles | 99,723 | 87,535 | 12,187 | |
Accumulated Depreciation-Machinery, Equipment and Vehicles | (40,943) | (35,344) | (5,598) | |
Machinery, Equipment and Vehhicles | 58,780 | 52,191 | 6,588 | |
Land | 2,175,707 | 2,099,971 | 75,736 | |
Construction in Progress | 177,433 | 162,122 | 15,310 | |
Other | 155,755 | 130,600 | 25,154 | |
Accumulated Depreciation | (97,772) | (89,992) | (7,780) | |
Other, Net | 57,983 | 40,608 | 17,374 | |
Tangible Fixed Assets | 3,677,609 | 3,430,326 | 247,283 | |
Leasehold Interests in Land | 40,993 | 46,065 | (5,072) | |
Other | 34,539 | 24,090 | 10,448 | |
Intangible Fixed Assets | 75,532 | 70,156 | 5,375 | |
Investment Securities | 888,056 | 872,686 | 15,370 | |
Long-Term Loans | 7,586 | 6,730 | 856 | |
Lease Deposits | 145,413 | 140,570 | 4,843 | |
Net Defined Benefit Asset | 28,994 | 31,294 | (2,300) | |
Deferred Income Taxes | 25,943 | 24,428 | 1,515 | |
Deferred Tax Assets on Land Revaluation | 2 | 2 | 0 | |
Other | 153,717 | 110,436 | 43,281 | |
Allowance for Doubtful Accounts | (1,065) | (1,139) | 74 | |
Investments and Other Assets | 1,248,650 | 1,185,010 | 63,640 | |
Total Non-Current Assets | 5,001,792 | 4,685,492 | 316,299 | |
Total Assets | ¥7,395,359 | ¥6,802,731 | ¥592,627 |
[Real Property for Sale] | |||||||
(a) Breakdown by Company | (¥ millions) | ||||||
At March 31, 2020 | At March 31, 2019 | Change | |||||
Mitsui Fudosan Residential | ¥717,860 | ¥637,722 | ¥80,138 | ||||
Mitsui Fudosan | 582,181 | 419,416 | 162,764 | ||||
Mitsui Fudosan America Group | 355,724 | 283,533 | 72,190 | ||||
SPCs Total | 192,689 | 220,793 | (28,103) | ||||
Mitsui Fudosan UK Group | 46,072 | 51,138 | (5,066) | ||||
Other and Elimination | 13,310 | 17,954 | (4,643) | ||||
Consolidated Total | ¥1,907,839 | ¥1,630,558 | ¥277,280 | ||||
(b) Accounts of Real Property for Sale | (¥ millions) | ||||||
Year Ended March 31 | At Beginning of | New Investments* | Cost Recovery | Others | At End of Period | ||
Period | |||||||
2020 | ¥1,630,558 | ¥628,913 | ¥(341,823) | ¥(9,809) | ¥1,907,839 | ||
2019 | ¥1,524,863 | ¥423,897 | ¥(382,620) | ¥64,418 | ¥1,630,558 |
Note: Land acquisition-related expenditures by Mitsui Fudosan Residential Co., Ltd., totaled ¥104.8 billion for the three-month period under review.
* New investments include the increase in real property for sale at subsidiaries in which the Company invested during the period.
[Tangible and Intangible Fixed Assets ]
The consolidated balance of tangible and intangible fixed assets stood at ¥3,753.1 billion as of March 31, 2020, up ¥252.6 billion compared with the end of the previous fiscal year. This increase largely reflects Mitsui Fudosan's new investments in such projects as Otemachi One Tower and LaLaport NUMAZU, Halekulani Okinawa as well as 50 Hudson Yards by Mitsui Fudosan America Group.
Foreign currency exchange rates:
¥109.56:US$1 as of March 31, 2020, ¥111:US$1 as of March 31, 2019; ¥143.48:£1 as of March 31, 2020, ¥140.46:£1 as of March 31, 2019
(a) Breakdown by Company | (¥ millions) | ||
At March 31, 2020 | At March 31, 2019 | Change | |
Mitsui Fudosan | ¥2,815,017 | ¥2,665,997 | ¥149,019 |
Mitsui Fudosan America Group | 421,554 | 355,736 | 65,817 |
SPCs Total | 228,744 | 223,557 | 5,186 |
Mitsui Fudosan Residential | 64,600 | 59,952 | 4,647 |
Mitsui Fudosan UK Group | 58,365 | 58,515 | (150) |
Other and Elimination | 164,859 | 136,722 | 28,137 |
Consolidated Total | ¥3,753,141 | ¥3,500,482 | ¥252,659 |
Above figures include revaluation reserve for land.
(b) Accounts of Tangible and Intangible Fixed Assets | (¥ millions) | ||||
Year Ended March 31 | At Beginning of | New Investments* | Depreciation | Others | At End of Period |
Period | |||||
2020 | ¥3,500,482 | ¥379,279 | ¥(91,434) | ¥(35,186) | ¥3,753,141 |
2019 | ¥3,318,928 | ¥390,514 | ¥(79,034) | ¥(129,925) | ¥3,500,482 |
* New investments include the increase in tangible and intangible fixed assets at subsidiaries in which the Company invested during the period.
7
CONSOLIDATED BALANCE SHEETS
(¥ millions) | ||||
LIABILITIES: | March 31, 2020 | March 31, 2019 | Change | |
Accounts Payable-Trade | ¥147,075 | ¥126,868 | ¥20,206 | |
Short-Term Debt | 143,025 | 194,987 | (51,961) | |
Non-RecourseShort-Term Debt | 21,416 | 64,929 | (43,513) | |
Commercial Papers | 173,000 | 114,000 | 59,000 | |
Bond Redeemable Within One Year | 55,000 | 50,000 | 4,999 | |
Non-Recourse Bond Redeemable Within One Year | 47,500 | 29,200 | 18,300 | |
Income Taxes Payable | 36,905 | 27,624 | 9,280 | |
Advances from Contracts in Progress | 21,635 | 19,729 | 1,905 | |
Allowance for Completed Project Indemnities | 797 | 872 | (75) | |
Allowance for Possible Guarantee Losses | 3 | 7 | (3) | |
Other | 393,401 | 481,137 | (87,736) | |
Current Liabilities | 1,039,761 | 1,109,358 | (69,596) | |
Corporate Bonds | 612,603 | 469,957 | 142,646 | |
Non-Recourse Corporate Bonds | 81,935 | 123,035 | (41,100) | |
Long-Term Debt | 1,893,813 | 1,644,518 | 249,295 | |
Non-Recourse Deposits from Tenants | 452,823 | 215,982 | 236,840 | |
Deposits from Tenants | 436,595 | 424,335 | 12,260 | |
Deferred Income Taxes | 147,786 | 154,940 | (7,154) | |
Deferred Tax Liabilities on Land Revaluation | 151,544 | 151,545 | (1) | |
Net Defined Benefit Liability | 46,196 | 43,503 | 2,692 | |
Allowance for Directors' and Corporate Auditors' Retirement Benefits | 800 | 711 | 88 | |
Other | 44,973 | 44,037 | 935 | |
Long-Term Liabilities | 3,869,071 | 3,272,567 | 596,503 | |
Total Liabilities | 4,908,833 | 4,381,926 | 526,906 | |
NET ASSETS: | ||||
Common Stock | 339,766 | 339,766 | - | |
Capital Surplus | 372,162 | 403,268 | (31,106) | |
Retained Earnings | 1,070,239 | 962,153 | 108,086 | |
Treasury Stock | (14,364) | (21,088) | 6,723 | |
Total Shareholders' Equity | 1,767,804 | 1,684,101 | 83,703 | |
Net Unrealized Holding Gains on Securities | 319,993 | 334,611 | (14,618) | |
Deferred Gains or Losses on Hedges | (222) | 71 | (294) | |
Reserve on Land Revaluation | 330,305 | 330,537 | (232) | |
Foreign Currency Translation Adjustment | (14,793) | (16,333) | 1,540 | |
Remeasurements of Defined Benefit Plans | 5,592 | 9,523 | (3,930) | |
Total Accumulated Other Comprehensive Income | 640,875 | 658,411 | (17,535) | |
New Share Subscription Rights | 1,454 | 1,285 | 169 | |
Non-Controlling Interests | 76,391 | 77,007 | (615) | |
Total Net Assets | 2,486,525 | 2,420,804 | 65,720 | |
Total Liabilities and Net Assets | ¥7,395,359 | ¥6,802,731 | ¥592,627 | |
Note: Debt-Equity Ratio 1.45 times (1.24 times at March 31, 2019) | ||||
Interest-Bearing Debt: | 3,481,117 | 2,906,610 | 574,506 | |
Non-Recourse Debt | 603,674 | 433,147 | 170,526 | |
Surplus lease deposits/guarantee deposits | 291,181 | 283,764 | 7,416 |
[Interest-Bearing Debt]
The Mitsui Fudosan Group witnessed a cash outflow from operating activities of ¥87.0 billion and a cash outflow from investing activities of ¥532.8 billion on the back of such factors as new investments in tangible and intangible fixed assets. The cash outflow attributable to cash dividends paid came to ¥45.0 billion. As a result, interest-bearing debt stood at ¥3,481.1 billion on a consolidated basis as of March 31, 2020, up ¥574.5 billion compared with the end of the previous fiscal year.
Breakdown by Company
(¥ millions) | |||
At March 31, 2020 | At March 31, 2019 | Change | |
Mitsui Fudosan | ¥2,630,106 | ¥2,234,094 | ¥396,012 |
Mitsui Fudosan America Group | 681,207 | 488,561 | 192,646 |
Mitsui Fudosan Residential | 594,900 | 520,500 | 74,400 |
SPCs Total | 345,355 | 365,455 | (20,100) |
Mitsui Fudosan Asia Group | 81,735 | 73,007 | 8,728 |
Mitsui Fudosan UK Group | 51,909 | 57,054 | (5,145) |
Loans to Subsidiaries | (990,427) | (933,372) | (57,055) |
Other and Elimination | 86,330 | 101,310 | (14,979) |
Consolidated Total | ¥3,481,117 | ¥2,906,610 | ¥574,506 |
(Non-recourse Debt of Total) | 603,674 | 433,147 | 170,526 |
8
DISCLOSURE OF MARKET VALUE OF RENTAL PROPERTIES
[Rental Properties]
Mitsui Fudosan and some of its consolidated subsidiaries have rental properties including office buildings and retail facilities in the Tokyo Metropolitan and other areas. Profit and loss for such rental properties for the fiscal year ended March 31, 2019 amounted to ¥136,200 million (rental revenue is reported on revenue from operations and rental expenses are reported on the cost of revenue from operations) while impairment losses were ¥964 million and the loss on disposal of fixed assets was ¥1,020 million (impairment losses and loss on disposal of fixed assets are reported on extraordinary losses). Profit and loss for such rental properties for the fiscal year ended March 31, 2020 amounted to ¥141,919 million (rental revenue is reported on revenue from operations and rental expenses are reported on the cost of revenue from operations) while impairment losses were ¥1,063 million and the loss on disposal of fixed assets was ¥6,953 million (impairment losses and loss on disposal of fixed assets are reported on extraordinary losses).
The amounts of rental properties shown on consolidated balance sheets, year-on-year change, and market values as of the end of each fiscal year are presented as follows.
(¥ millions) | |||
At March 31, | At March 31, | Change | |
2020 | 2019 | ||
Amount Shown on Consolidated Balance Sheets | ¥3,186,633 | ¥3,024,028 | ¥162,605 |
Market Value | 6,135,521 | 5,773,672 | 361,849 |
Change | ¥2,948,888 | ¥2,749,643 | ¥199,245 |
9
SEGMENT INFORMATION
Year Ended March 31, 2020 | (¥ millions) | |||||||
Revenue from Operations | Segment Income | Segment Assets | Depreciation | Impairment Loss | Increase in Tangible and | |||
(1) Outside Customers | (2) Intersegment | Total | Intangible Fixed Assets | |||||
(1)Leasing | ¥636,056 | ¥21,855 | ¥657,911 | ¥145,893 | ¥4,055,972 | ¥66,730 | ¥1,063 | ¥301,853 |
(2)Property Sales | 524,094 | - | 524,094 | 123,745 | 2,155,135 | 845 | 2 | 4,940 |
(3)Management | 421,490 | 77,112 | 498,602 | 55,670 | 363,775 | 9,573 | 446 | 16,585 |
(4)Other | 324,001 | 16,253 | 340,255 | 2,291 | 337,200 | 10,439 | - | 60,225 |
Elimination or Corporate | - | (115,221) | (115,221) | (46,982) | 483,275 | 3,844 | - | (4,326) |
Consolidated | ¥1,905,642 | - | ¥1,905,642 | ¥280,617 | ¥7,395,359 | ¥91,434 | ¥1,513 | ¥379,279 |
Year Ended March 31, 2019 | (¥ millions) | |||||||
Revenue from Operations | Segment Income | Segment Assets | Depreciation | Impairment Loss | Increase in Tangible and | |||
(1) Outside Customers | (2) Intersegment | Total | Intangible Fixed Assets | |||||
(1)Leasing | ¥603,284 | ¥19,482 | ¥622,767 | ¥141,945 | ¥3,792,511 | ¥59,451 | ¥964 | ¥337,028 |
(2)Property Sales | 530,766 | 558 | 531,324 | 98,037 | 1,866,803 | 1,553 | 5 | 2,945 |
(3)Management | 404,346 | 74,712 | 479,059 | 55,180 | 378,545 | 9,119 | 440 | 10,871 |
(4)Other | 322,797 | 11,241 | 334,039 | 9,157 | 285,690 | 7,124 | 10,003 | 45,136 |
Elimination or Corporate | - | (105,995) | (105,995) | (42,172) | 479,181 | 1,786 | - | (5,466) |
Consolidated | ¥1,861,195 | - | ¥1,861,195 | ¥262,147 | ¥6,802,731 | ¥79,034 | ¥11,414 | ¥390,514 |
10
CONSOLIDATED STATEMENTS OF INCOME
(¥ millions) | |||
Year Ended March 31 | |||
2020 | 2019 | ||
Revenue from Operations | ¥1,905,642 | ¥1,861,195 | |
Cost of Revenue from Operations | 1,435,903 | 1,423,442 | |
Gross Operating Profit | 469,739 | 437,752 | |
Selling, General and Administrative Expenses | 189,121 | 175,604 | |
Operating Income | 280,617 | 262,147 | |
Interest Income | 1,373 | 1,351 | |
Dividend Income | 6,378 | 5,785 | |
Equity In Net Income of Affiliated Companies | 5,715 | 14,895 | |
Subsidy Income | - | 3,973 | |
Other Non-Operating Income | 2,960 | 2,520 | |
Non-Operating Income | 16,426 | 28,526 | |
Interest Expenses | 29,382 | 28,284 | |
Loss on Tax Purpose Reduction Entry of Non-Current Assets | - | 3,959 | |
Other Non-Operating Expenses | 9,151 | 4,323 | |
Non-Operating Expenses | 38,533 | 36,567 | |
Ordinary Income | 258,510 | 254,106 | |
Gain on Sales of Investment Securities | 16,710 | 1,481 | |
Extraordinary Income | 16,710 | 1,481 | |
Loss on Retirement of Non-Current Assets | 4,257 | 2,129 | |
Impairment Loss | 1,513 | 11,414 | |
Loss on Valuation of Investment Securities | 2,868 | - | |
Loss on Sale of Businesses | 2,962 | - | |
Loss Related to COVID-19 | 2,402 | - | |
Extraordinary Losses | 14,004 | 13,544 | |
Income Before Income Taxes | 261,217 | 242,043 | |
Income Taxes-current | 77,321 | 69,518 | |
Income Taxes-deferred | (798) | 2,387 | |
Income Taxes | 76,522 | 71,906 | |
Profit | 184,694 | 170,136 | |
Profit (Loss) Attributable to Non-Controlling Interests | 721 | 1,475 | |
Profit Attributable to Owners of Parent | ¥183,972 | ¥168,661 |
11
CONSOLIDATED STATEMENTS OF CASH FLOWS
(¥ millions) | ||||
Year Ended March 31 | ||||
2020 | 2019 | |||
Cash Flows From Operating Activities | ||||
Income before Income Taxes | ¥261,217 | ¥242,043 | ||
Depreciation and Amortization | 91,434 | 79,034 | ||
Impairment Loss | 1,513 | 11,414 | ||
Interest and Dividend Income Receivable | (7,751) | (7,136) | ||
Interest Expense | 29,382 | 28,284 | ||
(Gain) Loss on Equity-Method Investments | (5,715) | (14,895) | ||
Loss on retirement of fixed assets | 4,257 | 2,129 | ||
Subsidy Income | - | (3,973) | ||
Loss on Reduction of Non-Current Assets | - | 3,959 | ||
Loss on Sale of Businesses | 2,962 | - | ||
Loss Related to COVID-19 | 2,402 | - | ||
(Gain) Loss on Sales of Investment Securities | (16,710) | (1,481) | ||
Loss on valuation of investment securities | 2,868 | - | ||
(Increase) Decrease in Accounts Receivable | 7,414 | (4,323) | ||
Increase (Decrease) in Accounts Payable | (1,763) | 3,826 | ||
(Increase) Decrease in Real Property for Sale | (255,846) | (31,877) | ||
Other | 53,103 | 9,419 | ||
Subtotal | 168,768 | 316,424 | ||
Cash Receipts of Interest and Dividend Income | 16,811 | 15,018 | ||
Cash Payments of Interest Expense | (28,815) | (27,421) | ||
Payments Related to COVID-19 | (282) | - | ||
Income Taxes Paid | (69,388) | (87,312) | ||
Net Cash Provided by (Used in) Operating Activities | 87,094 | 216,709 | ||
Cash Flows From Investing Activities | ||||
Purchase of Tangible and Intangible Fixed Assets | (473,818) | (338,318) | ||
Proceeds from Sale of Tangible and Intangible Fixed Assets | 1,908 | 1,173 | ||
Purchase of Investment Securities | (53,438) | (33,216) | ||
Proceeds from Sale of Investment Securities | 22,810 | 3,029 | ||
Payment of Lease Deposits | (13,539) | (9,400) | ||
Proceeds from Collection of Lease Deposits | 8,607 | 7,385 | ||
Repayment of Deposits from Tenants | (41,772) | (34,385) | ||
Proceeds from Deposits from Tenants | 54,763 | 55,645 | ||
Payment of Loan Receivable | (19,947) | (21,149) | ||
Collection of Loan Receivable | 18,234 | 19,913 | ||
Payments into Time Deposits | (15,639) | (35,563) | ||
Proceeds from Withdrawal of Time Deposits | 28,113 | 18,758 | ||
Purchase of Shares of Subsidiaries | - | (3,301) | ||
Resulting in Change in Scope of Consolidation | ||||
Proceeds from Subsidy Income | 1,945 | 1,569 | ||
Other | (51,034) | (21,034) | ||
Net Cash Provided by (Used in) Investing Activities | ¥(532,806) | ¥(388,895) |
(¥ millions) | |||
Year Ended March 31 | |||
2020 | 2019 | ||
Cash Flows From Financing Activities | |||
Proceeds from Short-Term Debt | ¥2,886,795 | ¥3,562,942 | |
Repayment of Short-Term Debt | (2,836,965) | (3,585,861) | |
Proceeds from Long-Term Debt | 630,138 | 448,635 | |
Repayment of Long-Term Debt | (230,976) | (268,840) | |
Proceeds from Issuance of Bonds | 230,499 | 246,318 | |
Redemption of Bonds | (103,300) | (97,590) | |
Cash Dividends Paid | (45,048) | (41,363) | |
Proceeds from Share Issuance to Non-Controlling Shareholders | 6,532 | 19,070 | |
Dividends Paid to Non-Controlling Shareholders | (7,142) | (4,224) | |
Repayment to Non-Controlling Shareholders | (136) | (486) | |
Payments for Equity Transactions with Non-Controlling Shareholder | (30,746) | (983) | |
Repayment of Finance Lease Obligations | (5,029) | (3,883) | |
(Increase) Decrease in Treasury Stocks | (24,193) | (15,013) | |
Payments from Changes in Ownership Interests in Subsidiaries | (2,675) | (27,473) | |
Not Resulting in Change in Scope of Consolidation | |||
Other | - | (8) | |
Net Cash Provided by (Used in) Financing Activities | 467,751 | 231,238 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (249) | (2,078) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 21,789 | 56,974 | |
Cash and Cash Equivalents at Beginning of the Period | 157,682 | 100,708 | |
Cashand Cash Equivalents at End of the Period | ¥179,472 | ¥157,682 |
12
CONSOLIDATED STATEMENTS OF EARNING FORECASTS
For the Year Ending March 31, 2020 | (¥ millions) | ||
Year to March 31 | Change | ||
2021 (forecast) | 2020 (actual) | ||
Revenue from Operations | ¥1,850,000 | ¥1,905,642 | ¥(55,642) |
Leasing | 600,000 | 636,056 | (36,056) |
Property Sales | 540,000 | 524,094 | 15,906 |
Property Sales to Individuals (Domestic) | 310,000 | 268,661 | 41,339 |
Property Sales to Investors and Individuals (Overseas), | 230,000 | 255,433 | (25,433) |
etc. | |||
Management | 410,000 | 421,490 | (11,490) |
Other | 300,000 | 324,001 | (24,001) |
Operating Income | 200,000 | 280,617 | (80,617) |
Leasing | 113,000 | 145,893 | (32,893) |
Property Sales | 103,000 | 123,745 | (20,745) |
Property Sales to Individuals (Domestic) | 33,000 | 29,624 | 3,376 |
Property Sales to Investors and Individuals (Overseas), | 70,000 | 94,120 | (24,120) |
etc. | |||
Management | 50,000 | 55,670 | (5,670) |
Other | (13,000) | 2,291 | (15,291) |
Elimination or Corporate | (53,000) | (46,982) | (6,018) |
Non-Operating Income/Expenses | (31,000) | (22,107) | (8,893) |
Interest Income/Expense, in Net | (30,000) | (28,009) | (1,991) |
Other, in Net | (1,000) | 5,902 | (6,902) |
Ordinary Income | 169,000 | 258,510 | (89,510) |
Extraordinary Gains/Losses | 10,000 | 2,706 | 7,294 |
Income before Income Taxes | 179,000 | 261,217 | (82,217) |
Income Taxes | 58,000 | 76,522 | (18,522) |
Profit | 121,000 | 184,694 | (63,694) |
Profit (Loss) Attributable to Non-controlling Interests | 1,000 | 721 | 279 |
Profit Attributable to Owners of Parent | ¥120,000 | ¥183,972 | ¥(63,972) |
・The outbreak of COVID-19 is having a widespread impact on economic conditions both in Japan and overseas.
・In accordance with requests by the government and local administrative authorities, and from the perspective of actively working to stop the spread of COVID-19 as a corporation, the Company has temporarily closed its retail facilities and hotels, and has provided various support such as reduction of rent for some of its tenants. The Company's business results may still be severely affected depending on conditions when COVID-19 should end and governmental response policies.
・Even medical experts are unable to clearly forecast when the spread of COVID-19 will end. Amidst such circumstances, when forecasting business in the next fiscal year, it is difficult to predict the extent to which economic activities will be restricted throughout the entire year. Consequently, it is extremely difficult to calculate earnings forecasts for the next fiscal year with a high degree of accuracy. Despite this difficulty, the Company has decided to make certain assumptions and identify estimates to the extent that is currently possible.
・In specific terms, estimates of forecast results are based on the assumption that, due to requests from the government and local administrative authorities, economic activity will operate under strict restrictions during the first quarter. We then anticipate that conditions will gradually return to normal from the second quarter until the end of the year.
・Actual results may fluctuate depending on a variety of factors including when COVID-19 should dissipate. Should the need to revise forecasts arise in the future, the Company will disclose details in a timely manner.
Leasing: Overall revenue from operations and operating income are forecast to decrease ¥36.0 billion and ¥32.8 billion, respectively. This is mainly due to the reduction in rent at facilities owned by the Company resulting from the temporary closure of retail facilities in response to requests from the government and local administrative authorities.
Property Sales: Overall revenue from operations is forecast to increase ¥15.9 billion, while operating income is expected to decrease ¥20.7 billion. In the "Property Sales to Individuals (Domestic)" category, both revenue and earnings are forecast to increase due to an increase in the number of reported units. However, in the "Property Sales to Investors and Individuals (Overseas)" category, both revenue and earnings are forecast to decrease in consideration of reviewing sales while carefully assessing the impact of COVID-19 on the market.
Management: Overall revenue from operations and operating income are forecast to decrease ¥11.4 billion and
¥5.6 billion, respectively. This is due to consideration for the impact of COVID-19 on the brokerage business and the car park leasing business.
Other: Overall revenue from operations and operating income are forecast to decrease ¥24.0 billion and ¥15.2 billion, respectively. This is largely due to the temporary closure of hotels in response to requests from the government and local administrative authorities as well as other factors and the decrease in accommodation demand.
As a result, revenue from operations is forecast to amount to ¥1,850 billion, a decrease of ¥55.6 billion, and operating income is expected to fall to ¥200.0 billion, a decrease of ¥80.6 billion.
When accounting for the decrease in the equity in net income/loss of affiliated companies in non-operating income/expenses, ordinary income is expected to amount to ¥169.0 billion, a decrease of ¥89.5 billion. When accounting for extraordinary gains/losses of ¥10.0 billion, the profit attributable to owners of parent is expected to fall to ¥120.0 billion, a decrease of ¥63.9 billion.
The Company is expecting to pay a cash dividend per share for the fiscal year ending March 31, 2021 of ¥44.00 (comprising an interim and period-end dividend of ¥22.00 per share).
13
CONSOLIDATED STATEMENTS OF EARNING FORECASTS
【Property Sales】 | ||||
Revenue, Operating Margin | (¥ millions) | |||
Year to March 2021 | Year Ended March 2020 | YoY Change | ||
(Forecast) | (actual) | |||
Property Sales to Individuals | ||||
Revenue from Operations: | ¥310,000 | ¥268,661 | ¥41,339 | |
Condominiums | 270,000 | 236,023 | 33,977 | |
Detached Housing | 40,000 | 32,638 | 7,362 | |
Operating Income | 33,000 | 29,624 | 3,376 | |
Operating Margin (%) | 10.6 | 11.0 | (0.4)pt | |
Property Sales to Investors | ||||
Revenue from Operations: | 230,000 | 255,433 | (25,433) | |
Operating Income | 70,000 | 94,120 | (24,120) | |
Total | ||||
Revenue from Operations: | 540,000 | 524,094 | 15,906 | |
Operating Income | ¥103,000 | ¥123,745 | ¥(20,745) | |
Number of Domestic Housing Units | (Units) | |||
Year to March 2021 | Year Ended March 2020 | YoY Change | ||
(Forecast) | (actual) | |||
Condominiums | 3,800 | 3,194 | 606 | |
Detached Housing | 500 | 481 | 19 | |
Total | 4,300 | 3,675 | 625 |
【Tangible and Intangible Assets】
(¥ millions) | |||
Year to March 2021 | Year Ended March 2020 | YoY Change | |
(Forecast) | (actual) | ||
New Investments | ¥250,000 | ¥379,279 | ¥(129,279) |
Depreciation | 100,000 | 91,434 | 8,566 |
【Real Property for Sale】
(¥ millions) | |||
Year to March 2021 | Year Ended March 2020 | YoY Change | |
(Forecast) | (actual) | ||
New Investments | ¥700,000 | ¥628,913 | ¥71,087 |
Recovery of Costs | 380,000 | 341,823 | 38,177 |
【Interest-Bearing Debt】
(¥ millions) | |||
Year to March 2021 | Year Ended March 2020 | YoY Change | |
(Forecast) | (actual) | ||
Interest-Bearing Debt | ¥3,800,000 | ¥3,481,117 | ¥318,883 |
14
CONTINGENT LIABILITIES
In response to concerns regarding the faulty installation of foundation piles at a condominium complex located in Yokohama and sold by Mitsui Fudosan Residential Co., Ltd., a consolidated subsidiary of Mitsui Fudosan, the company received a report confirming that a portion of the piling used in construction failed to reach the necessary depth and required bearing layer from Sumitomo Mitsui Construction Co., Ltd., the building contractor, on April 11, 2016. Furthermore, Mitsui Fudosan Residential received a notice from the City of Yokohama that the subject condominium complex violated the Building Standards Law and a request that the company take all responsible measures to address and correct the situation in line with discussions with condominium owners on August 26, 2016.
In outlining its stance toward corrective measures including the reconstruction of the condominium complex impacted by faulty installation as well as compensation, Mitsui Fudosan Residential executed an agreement with the condominium association on May 8, 2016, confirming that the company would shoulder all expenses. Later, on September 19, 2016, the condominium association resolved that it would seek the complete reconstruction of the entire condominium complex in accordance with the Act on Building Unit Ownership, etc.
According to the report issued by Sumitomo Mitsui Construction, which noted that construction records had been diverted and modified in connection with the installation of foundation piles and that certain foundation piles failed to reach the necessary depth and required bearing layer, the condominium complex was deemed to be in violation of the Building Standards Law. As a result, and in accordance with the aforementioned agreement, Mitsui Fudosan Residential has decided to seek damages including reconstruction costs as well as expenses relating to the temporary housing of residents during the period of construction under such remedies as tort liability and warranties against defects from Sumitomo Mitsui Construction, as well as Hitachi High‐Technologies Corporation and Asahi Kasei Construction Materials Corporation, who installed the foundation piles. Based on this decision to seek damages, Mitsui Fudosan Residential filed a lawsuit for total compensation amounting to around ¥50.9 billion against the three companies identified above on November 28, 2017. Mitsui Fudosan has posted all related temporary payments undertaken by Mitsui Fudosan Residential up to the end of the fiscal year under review as current assets on its consolidated quarterly balance sheet.
Depending on the flow of future events, any incidence of expenditure may impact the consolidated results of the Mitsui Fudosan Group. At this stage, however, the Company is unable to provide a reasonable estimate of any such impact.
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[REFERENCE] CHANGE OF SEGMENT CLASSIFICATION
Effective April 2019, Mitsui Fudosan has decided to change the classification of its business segments. Brief details are presented as follows.
- Historically, the Company's operations have been classified into the five "Leasing," "Property Sales," "Management," "Mitsui Home," and "Other" business segments. These five business segments have now been classified into the four "Leasing," "Property Sales," "Management," and "Other" business segments.
- Under this revised classification, the "New Construction," "Reform/Renewal," and "Material Sales" businesses included in the "Mitsui Home" business segment have been integrated into the "Other" business segment.
- Under this revised classification the "Lease Management" business included in the "Mitsui Home" business segment has been integrated into the "Management" business segment.
* A diagram outlining changes to the Company's business segments is attached to the end of this documents for reference.
【Year ended March 31, 2019 Comparison of Old and New Segments】 | |
Old Segment | New Segment |
Office Buildings | |
Leasing | Retail Facilities |
Other | |
Office Buildings | |
Retail Facilities | Leasing |
Other | |
Condominiums | ||
Property | Detached Housing | |
Sales | ||
Property Sales to Investors and | ||
Individuals (Overseas), etc. | ||
Management | Property Management | |
Brokerage, Asset Management, etc. | ||
New Construction | ||
Mitsui Home | Reform/Renewal | |
Lease Management | ||
Housing-Related Material Sales | ||
Other | Facility Operations | |
Other | ||
Condominiums | |
Detached Housing | Property |
Sales | |
Property Sales to Investors and | |
Individuals (Overseas), etc. | |
Property Management | Management |
Brokerage, Asset Management, etc. | |
Facility Operation | |
New Construction | Other |
Other | |
Elimination or Corporate | Elimination or Corporate | |
Consolidated | Consolidated | |
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Consolidated Financial Highlights
Fiscal Year | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | |
Revenue from Operations | 1,338,102 | 1,445,644 | 1,515,252 | 1,529,036 | 1,567,969 | 1,704,416 | 1,751,114 | 1,861,195 | |
Income Statement | Operating Income | 126,038 | 148,184 | 172,567 | 186,074 | 202,482 | 232,698 | 245,902 | 262,147 |
Ordinary Income | 102,509 | 123,066 | 144,587 | 163,373 | 182,521 | 219,607 | 240,341 | 254,106 | |
Profit Attributable to Owners of Parent | 50,129 | 59,451 | 76,843 | 100,185 | 117,722 | 131,815 | 155,874 | 168,661 | |
Leasing | 436,208 | 458,356 | 466,759 | 464,842 | 509,178 | 536,518 | 558,165 | 603,284 | |
Property Sales | 321,352 | 393,534 | 409,466 | 425,442 | 391,577 | 488,710 | 499,607 | 530,766 | |
Revenue by Segment | Management | 329,101 | 348,596 | 372,526 | 317,818 | 334,652 | 347,672 | 353,813 | 377,490 |
Mitsui Home | 216,838 | 218,387 | 247,233 | 242,150 | 247,455 | 247,195 | 252,180 | 261,702 | |
Other | 105,397 | 107,245 | 109,267 | 78,782 | 85,104 | 84,320 | 87,346 | 87,950 | |
Total Revenue from Operations | 1,338,102 | 1,445,644 | 1,515,252 | 1,529,036 | 1,567,969 | 1,704,416 | 1,751,114 | 1,861,195 | |
Leasing | 95,699 | 104,352 | 109,205 | 107,863 | 124,112 | 135,774 | 138,338 | 141,945 | |
Property Sales | 15,734 | 23,059 | 27,099 | 45,493 | 44,525 | 65,285 | 83,010 | 98,037 | |
Operating Income by Segment | Management | 34,363 | 41,579 | 49,945 | 49,317 | 52,446 | 53,838 | 48,727 | 53,445 |
Mitsui Home | 4,187 | 566 | 4,192 | 4,017 | 4,724 | 4,907 | 5,463 | 6,208 | |
Other | (806) | (85) | 3,071 | 5,186 | 7,163 | 5,994 | 6,849 | 4,681 | |
Operating Income | 126,038 | 148,184 | 172,567 | 186,074 | 202,482 | 232,698 | 245,902 | 262,147 | |
Total Assets | 3,868,411 | 4,390,074 | 4,548,822 | 5,067,187 | 5,363,477 | 5,551,751 | 6,284,723 | 6,802,731 | |
Real Property for Sale | 642,809 | 915,222 | 961,449 | 1,031,080 | 1,167,745 | 1,334,167 | 1,524,863 | 1,630,558 | |
Tangible and Intangible Assets | 2,304,809 | 2,503,977 | 2,526,139 | 2,788,633 | 2,968,975 | 2,967,788 | 3,318,928 | 3,500,482 | |
Balance Sheets | Capital Outlays | 111,755 | 72,355 | 148,255 | 273,487 | 207,172 | 173,745 | 440,752 | 390,514 |
Depreciation | 53,231 | 59,022 | 56,030 | 61,242 | 67,460 | 71,357 | 70,167 | 79,034 | |
Interest-Bearing Debt | 1,743,411 | 2,120,225 | 2,040,071 | 1,976,150 | 2,226,236 | 2,287,489 | 2,604,656 | 2,906,610 | |
Retained Earnings | 363,877 | 402,224 | 454,750 | 549,660 | 640,204 | 722,363 | 834,497 | 962,153 | |
Shareholders' Equity | 1,078,182 | 1,181,174 | 1,274,355 | 1,871,922 | 1,922,305 | 1,984,635 | 2,204,882 | 2,342,512 | |
Cash Flows from Operating Activities | 148,161 | 99,684 | 189,903 | 30,343 | 32,154 | 227,432 | 30,143 | 216,709 | |
Cash Flows | Cash Flows from Investing Activities | (124,353) | (71,132) | (44,056) | (261,640) | (239,719) | (201,583) | (365,464) | (388,895) |
Cash Flows from Financing Activities | (18,649) | (7,944) | (123,713) | 221,508 | 201,110 | 15,071 | 289,150 | 231,238 | |
Free Cash Flow | 23,807 | 28,552 | 145,847 | (231,296) | (207,564) | 25,848 | (335,320) | (172,185) | |
Return on Assets (%) | 3.55% | 3.66% | 4.07% | 4.10% | 4.14% | 4.59% | 4.58% | 4.44% | |
Key Ratios | Return on Equity (%) | 4.78% | 5.27% | 6.26% | 6.37% | 6.20% | 6.75% | 7.44% | 7.42% |
Debt/Equity Ratio (times) | 1.62 | 1.80 | 1.60 | 1.06 | 1.16 | 1.15 | 1.18 | 1.24 | |
Equity Ratio (%) | 27.9% | 26.9% | 28.0% | 36.9% | 35.8% | 35.7% | 35.1% | 34.4% | |
Scope of Consolidation | Consolidated Subsidiaries (companies) | 140 | 174 | 181 | 201 | 211 | 216 | 242 | 255 |
Equity-Method Affiliates (companies) | 45 | 47 | 52 | 56 | 64 | 67 | 71 | 78 | |
[Millions of Yen] | ||
18 | 19 | |
Revenue from Operations | 1,861,195 | 1,905,642 |
Operating Income | 262,147 | 280,617 |
Ordinary Income | 254,106 | 258,510 |
Profit Attributable to Owners of Parent | 168,661 | 183,972 |
Leasing | 603,284 | 636,056 |
Property Sales | 530,766 | 524,094 |
Management | 404,346 | 421,490 |
Other | 322,797 | 324,001 |
Total Revenue from Operations | 1,861,195 | 1,905,642 |
Leasing | 141,945 | 145,893 |
Property Sales | 98,037 | 123,745 |
Management | 55,180 | 55,670 |
Other | 9,157 | 2,291 |
Operating Income | 262,147 | 280,617 |
Total Assets | 6,802,731 | 7,395,359 |
Real Property for Sale | 1,630,558 | 1,907,839 |
Tangible and Intangible Assets | 3,500,482 | 3,753,141 |
Capital Outlays | 390,514 | 379,279 |
Depreciation | 79,034 | 91,434 |
Interest-Bearing Debt | 2,906,610 | 3,481,117 |
Retained Earnings | 962,153 | 1,070,239 |
Shareholders' Equity | 2,342,512 | 2,408,679 |
Cash Flows from Operating Activities | 216,709 | 87,094 |
Cash Flows from Investing Activities | (388,895) | (532,806) |
Cash Flows from Financing Activities | 231,238 | 467,751 |
Free Cash Flow | (172,185) | (445,712) |
Return on Assets (%) | 4.44% | 4.18% |
Return on Equity (%) | 7.42% | 7.74% |
Debt/Equity Ratio (times) | 1.24 | 1.45 |
Equity Ratio (%) | 34.4% | 32.6% |
Consolidated Subsidiaries (companies) | 255 | 275 |
Equity-Method Affiliates (companies) | 78 | 90 |
- Segment Revenue: Revenue from Outside customers and inter-segment
- Real Property for Sale: Real Property for Sale + Real Property for Sale in Progress + Land for Development + Advances Paid for Purchas
- Interest-BearingDebt: Short-Term Debt + Non-RecourseShort-Term Debt + Commercial Paper
- Bond Redeemable within One Year + Non-Recourse Bond Redeemable within One Year + Corporate Bonds +Non-Recourse Bond + Long-Term Debt + Non-RecourseLong-Term Debt
- From FY2012, Mitsui Fudosan implemented the early adoption of changes to accounting standards on the consolidation of SPCs. On this basis, certain SPCs, in which the Company maintains an equity interest, were newly included in the scope of its consolidati
- ROA: (Operating Income + Non-Operating Income) /Average Total Assets over period
- ROE: Profit Attributable to Owners of Parent/Average Shareholders' Equity over period
- Debt/Equity Ratio: Interest-Bearing Debt/Shareholders' Equity
- Segment changes have been implemented since April 2019 as follows.
From the previous five categories of "Leasing," "Property Sales," "Management," "Mitsui Home," and "Other" Changed to four categories: "Leasing," "Property Sales," "Management," and "Other."
Mitsui Fudosan Co.,Ltd.
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Mitsui Fudosan Co. Ltd. published this content on 12 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2020 06:39:08 UTC