Mitsui Fudosan First-Quarter Profit Gains After Asset Sales

Mitsui Fudosan Co. (8801), Japan’s biggest developer by sales, said first-quarter profit rose 85 percent after the company booked a special gain of 8.8 billion yen from the sale of some assets.

Net income increased to 16.8 billion yen ($173 million) in the three months ended June 30 from 9.1 billion yen a year earlier, the company said in a statement distributed through the Tokyo Stock Exchange today. Sales rose 1.6 percent to 284.5 billion yen from same period a year ago.

Mitsui Fudosan’s competitor, Mitsubishi Estate Co. (8802), last week said profit rose 44 percent for the same period, citing an improvement in profitability of its residential business.

Operating profit for Mitsui Fudosan’s residential business fell to 334 million yen in the quarter from 2.7 billion yen in the same period last year. Operating profit for the leasing business was little changed at 27.4 billion yen, it said.

The Tokyo-based company kept its net income forecast unchanged at 65 billion yen for the year ending March 2014 on sales of 1.53 trillion yen, it said.

Mitsui Fudosan’s shares declined 4.5 percent to 3,090 yen at the close on the Tokyo Stock Exchange. The company announced its results after the market close.

To contact the reporter on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net

To contact the editor responsible for this story: Iain McDonald at imcdonald7@bloomberg.net

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