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Mitsui Fudosan’s First-Half Profit Gains 48% After Asset Sales

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Nov. 7 (Bloomberg) -- Mitsui Fudosan Co., Japan’s biggest developer by sales, said profit rose 48 percent in the fiscal first half after selling some assets.

Net income gained to 39.9 billion yen ($405 million) in the six months ended Sept. 30 from 26.9 billion yen a year earlier, the Tokyo-based company said in a statement to the stock exchange. Sales climbed 3.3 percent to 636.2 billion yen from the same period a year ago.

Mitsui Fudosan booked a one-time profit of 13.2 billion yen after selling some properties, which it didn’t name in the statement. Rental income from leasing, fees from property management and its hotel business also supported earnings, according to the statement.

The developer kept its profit forecast unchanged at 65 billion yen for the year ending March 2014, on sales of 1.53 trillion yen, it said.

Operating profit for the company’s leasing business rose to 55.5 billion yen in the six months from 54.7 billion yen in the same period last year, according to the statement. Operating profit from its property management division increased 35 percent to 24.2 billion yen, while the residential division recorded a 66 percent decline, it said.

Mitsui Fudosan’s results contrast with its smaller competitors that benefited from rising demand for residential businesses. Mitsubishi Estate Co. said last week net income surged 76 percent, while Sumitomo Realty & Development Co. reported a 59 percent increase in profit yesterday, helped by a boost in apartment sales.

Mitsui Fudosan’s shares fell 0.5 percent to 3,210 yen at the close of trading in Tokyo. 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: Andreea Papuc at apapuc1@bloomberg.net

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