Mitsui Fudosan Sees Third Year of Profit Increase on Home Demand

Mitsui Fudosan Co. (8801), Japan’s biggest developer by sales, expects full-year profit to rise 17 percent this fiscal year as its residential business recovers.

Net income will increase to 90 billion yen ($883 million) for the year ending March 2015, the Tokyo-based company said in a statement through the stock exchange today. That compares with a mean estimate of 80 billion yen from 20 analysts surveyed by Bloomberg. Revenue will gain 1.6 percent to 1.54 trillion yen, it said.

Mitsui Fudosan is forecasting a third straight year of increase in net income as it plans to generate 18.9 billion yen of profit from 32.5 billion yen worth of apartment sales to investors and homebuyers. Operating profit for the company’s residential business will rise 70 percent to 46 billion yen for the current business year.

Operating profit for the developer’s leasing business may fall 6.6 percent to 102 billion yen in the year, Mitsui Fudosan said.

For the 12 months ended March 31, net income gained 29 percent to 77 billion yen from a year earlier, Mitsui Fudosan said. Sales rose 4.8 percent to 1.5 trillion yen in the period.

Mitsui Fudosan’s shares fell 0.3 percent to 3,135 yen at the close of trading in Tokyo. The company announced results after the market close.

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

To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net Tomoko Yamazaki, Iain McDonald

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