Mitsubishi Estate's First-Half Profit Rises 44% as Vacancy Rates Improve
Mitsubishi Estate Co., Japan’s second-biggest developer, said first-half net income rose 44 percent as office vacancy rates improved, helping boost revenue at its leasing business.
Net income rose to 28.7 billion yen ($356 million) in the six months ended Sept. 30 from 19.9 billion yen in the same period a year earlier, the company said in a statement distributed through the Tokyo Stock Exchange today. Sales gained 0.2 percent to 430.9 billion yen.
The owner of about 30 office buildings in Tokyo’s central business district is seeing a recovery in its occupancy rate, supporting profit growth. The vacancy rate at the firm fell to 4.02 percent in September from 4.46 percent in June, a five-year high, according to Mitsubishi Estate.
Mitsubishi Estate reiterated its full-year profit forecast of 63 billion yen on sales of 975 billion yen. Leasing revenue rose 8.2 percent to 201.7 billion yen in the fiscal first half, it said.
Shares of Mitsubishi Estate fell 3.4 percent to 1,410 yen at the 3 p.m. close on the Tokyo Stock Exchange, extending its year-to-date decline to 4.6 percent.
To contact the reporters on this story: Kathleen Chu in Tokyo at Kchu2@bloomberg.net; Katsuyo Kuwako in Tokyo at kkuwako@bloomberg.net
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
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