May 9 (Bloomberg) -- Mitsui Fudosan Co., Japan’s biggest developer, said it expects full-year profit to rise 9.3 percent for the current business year on plans to sell more apartments.
Net income will increase to 65 billion yen ($658.4 million) for the year ending March 2014, the Tokyo-based company said in a statement through the stock exchange today. Revenue will gain 5.8 percent to 1.53 trillion yen, it said.
Mitsui Fudosan joins competitor Mitsubishi Estate Co. in forecasting a recovery in earnings as it plans to sell 29 percent more apartments and homes. Mitsui Fudosan also said it expects refurbishments of shopping centers, including Lazona Kawasaki Plaza and LaLaport Toyosu in the Tokyo metropolitan area, to bring in higher revenue from leasing divisions.
Operating profit for the company’s residential business will rise 34 percent to 31 billion yen for the current business year as it expects home and apartment sales to increase to 7,400 units. The developer’s leasing business, which accounts for 70 percent of operating income, may rise to 105 billion yen in the year, Mitsui Fudosan said.
Net income in the 12 months ended March 31 gained 19 percent to 59.5 billion yen from a year earlier, Mitsui Fudosan said. Sales rose 8 percent to 1.45 trillion yen in the period.
Mitsui Fudosan’s shares fell 3 percent to 3,215 yen at the close of trading in Tokyo. The stock has surged 54 percent this year, outperforming the 37 percent gain by the benchmark Topix index. The company announced results after the market close.
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