On the 10th, Mitsui Fudosan Co., Ltd. announced its consolidated financial results for the fiscal year ending March 2024.
During the fiscal period from April 23 to March 24, the company achieved record-high figures across the board, with net sales reaching ¥23.832 trillion (a 5.0% increase compared to the previous period), operating profit reaching ¥339.69 billion (an 11.2% increase), ordinary profit reaching ¥267.89 billion (a 1.0% increase), and net income reaching ¥224.67 billion (a 14.0% increase). This marks the 12th consecutive year of increased net sales and the second consecutive year of increased profits in each category.
In the rental business segment, net sales totaled ¥8.1522 trillion (a 7.9% increase) with operating profit of ¥1.6785 trillion (a 12.0% increase). Factors contributing to this growth included increased revenue and profit from the completion of the "50 Hudson Yards" office building in the United States, as well as growth in sales at existing commercial facilities and the effects of new facility openings. The vacancy rate at the end of the period was 3.8% for overall office and commercial facilities, 2.2% for offices in the Tokyo metropolitan area (a decrease of 1.6 percentage points), and 3.2% for offices in regional areas (an increase of 0.4 percentage points).
In the development business segment, net sales totaled ¥6.2761 trillion (a 2.2% decrease) with operating profit of ¥1.3196 trillion (a 9.5% decrease). Domestic residential development saw net sales of ¥3.144 trillion (a 16.2% increase) with operating profit of ¥497.88 billion (a 26.4% increase), driven by increased sales and profits from condominiums. Meanwhile, sales volume for detached houses remained unchanged. The contract volume for condominiums at the end of the period was 4,484 units, with 46 units in completed inventory. The contract achievement rate for the next period's planned units of 3,350 units was 84.4%. However, sales and profits in investor-oriented and overseas residential development declined due to the impact of property sales in the previous period, resulting in an overall decrease in the development business segment.
The management business segment achieved record-high figures with net sales of ¥4.6285 trillion (a 3.8% increase) and operating profit of ¥662.89 billion (a 4.6% increase). Increased revenue and profit were driven by improvements in the utilization rate of rental parking lots (RePark) and an increase in project management fees.
For the next fiscal period, the company expects net sales of ¥26 trillion, operating profit of ¥340 billion, business profit of ¥370 billion, ordinary profit of ¥260 billion, and net income of ¥235 billion, all of which are expected to surpass previous records. In the rental segment, increased profits are anticipated from increased sales at domestic commercial facilities and the contribution of profits from full-year operations. In the development segment, the company anticipates the highest profit margin for domestic residential development (22.9%) due to the inclusion of high-profit properties in central locations with high prices and large-scale developments.
Reprinted from: Real Estate Distribution Research Institute Co., Ltd. “R.E.port”
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