Feb. 5 (Bloomberg) -- Mitsubishi Estate Co., Japan’s biggest developer by market value, said nine-month net income rose 73 percent as profit margins of its residential business improved.
Net income gained to 58.5 billion yen ($577 million) for the nine months ended Dec. 31 from 33.9 billion yen a year ago, the Tokyo-based company said in a statement to the stock exchange today. Sales rose 10 percent to 720.3 billion yen.
Profit for its residential business gained 37 percent to 8.3 billion yen during the period from a year ago ahead of the government’s plan to increase sales tax to 8 percent. Mitsubishi Estate’s commercial development business more than doubled its profit after selling some assets, it said.
Mitsubishi Estate maintained its full-year profit forecast of 58 billion yen on sales of 1.07 trillion yen.
The company halted sales of a residential project in Tokyo because of defects in the building, the developer said in an e-mail statement earlier this week. Mitsubishi Estate is seeking compensation from the builder Kajima Corp., it said.
The halt will not affect its full-year earnings, Keisuke Tamaki, a deputy general manager of the developer’s corporate communications department, said at a press conference in Tokyo.
Mitsubishi Estate shares rose 2.8 percent to 2,481 yen at the close of trading in Tokyo. The stock has declined 21 percent this year, compared with the 17 percent decline by the 45-member Topix Real Estate Index.
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