Investor Presentation February

Transcription

1 Investor Presentation February

2 Contents 1.About Mitsui Fudosan 1-1 Highlights Performance Highlights Financial Highlights Mid-Term Business Plan Innovation 2017 Stage Ⅱ 6 2. Core Businesses: Overview & Strengths 2-1 Leasing Analysis of Revenue Mitsui Fudosan s Strengths (Office Buildings) Pipeline (Office Buildings) Create Neighborhoods in Nihonbashi and Yaesu Mitsui Fudosan s Strengths (Retail Facilities) Pipeline (Retail Facilities) Property Sales Mitsui Fudosan s Strengths Mitsui Fudosan s Strengths (Property Sales to Individuals) Pipeline (Property Sales to Individuals) Model for Cooperation with Investors Management Mitsui Fudosan s Strengths Mitsui Fudosan s Strengths (Property Management) Mitsui Fudosan s Strengths (Brokerage, Asset Management, etc.) Logistics facility Business Hotel and Resort Business Global Business Global Business Summary Pipeline (North America and Europe) Pipeline (China and Asia) Summary of Results for the Nine Months Ended December 31, 2017(FY 2017) 3-1 Consolidated Income Summary (Overall) Consolidated Segment Revenue & Operating Income Consolidated Balance Sheet Summary Forecasts for the Year to March 2018 (FY 2017) Summary of Results for the Year Ended March 31, 2017(FY 2016) 5-1 Consolidated Income Summary (Overall) Consolidated Segment Revenue & Operating Income Consolidated Balance Sheet Summary 43 Appendices (Market Trends) Appendix 1 Leasing Business Market Trends (Office Buildings) 46 Appendix 2 Leasing Business Market Trends (Retail Facilities) 49 Appendix 3 Property Sales Business Market Trends (Property Sales to Individuals) 50 Appendix 4 Property Sales Business Market Trends (Property Sales to Investors) 51 Appendix 5 International Visitors to Japan 52 Appendix 6 Shareholder Composition 53 Appendix 7 Operating Income by Segment 54 Disclaimer 55 1

3 1. About Mitsui Fudosan

4 1. About Mitsui Fudosan 1-1 Highlights Mitsui Fudosan Highlights (For the year ended March 31, 2017) Revenue from Operations 1,704 billions of yen 15% 5% 31% 20% 29% 41% Leasing (Office Buildings /Retail Facilities/Others) Retail Facilities Others 3% Sales Ratio Office Buildings 56% Leased Floor Space (Incl. Managed Properties) Office Buildings 2,768 thousand m2 Retail Facilities 2,067 thousand m2 Property Sales (Property Sales to Individuals / Property Sales to Investors) Property Sales to Investors 35% Sales Ratio Property Sales to Individuals 65% Units booked (Condominiums) 5,200 units Management (Property Management / Brokerage Asset Management, etc) Brokerage Asset Management, etc 25% Sales Ratio Property Management 75% AUM 3.61 trillion yen 3

5 1. About Mitsui Fudosan 1-2 Performance Highlights Mid-Term Business Plan (Innovation 2017 StageⅡ) Mid-Term Business Plan (FY2017 Target) (Billions of yen) (30.0) Operating income (Billions of yen) Depreciation (Billions of yen) Cash dividends per share (Yen) Operating income Leasing Profit Attributable to owners of parent (*2) Management Property Sales Other (19.7) (20.8) (13.6) (16.6) (18.6) (22.2) (24.0) (5.0) 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018(E) 3/2018 (T) Payout ratio (%) ROA(%) Approx.5% ROE(%) Approx.7% *1 Other include Mitsui Home, other segments and nonconsolidated general & administrative expenses. *2 Prior to FY2015: Net Income The figures of FY2012 or after reflect the effect of the SPC consolidation. ROA: (Operating income + Non-operating income) /Average total assets over period ROE: Profit Attributable to owners of parent /Average shareholders equity over period 4

6 1. About Mitsui Fudosan 1-3 Financial Highlights The Mid-term Business Plan is on a May 2015 disclosure basis 3, , , , , (Left) (Billions of yen) , ,078.1 Interest-bearing debt Shareholders equity Due to SPC consolidation , , , , , , , , , , Due to the Offering Debt/Equity ratio 2,700.0 (Right) 2, (Times) B/S as of March 31, 2017 Real property for sale (including advances paid for purchases) Tangible and intangible fixed assets (Rental properties) (2,645.0) (Billions of yen) 1,334.1 Interest-bearing debt 2, ,967.7 Other 1,226.3 Net assets 2, /2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 (E) Changes in D/E Ratio (Times) /2018 (T) Mid-term Business Plan /'04 3/'05 3/'06 3/'07 3/'08 3/'09 3/'10 3/'11 3/'12 3/'13 3/'14 3/'15 3/'16 3/' Other 1,268.7 Assets Market value of rental properties At March 31, 2017 (FY2016 Year-end) (Shareholders' equity) 1, ,570.7 Debt and Equity 5,570.7 At March 31, 2016 (FY2015 Year-end) (Billions of yen) Change Market value 4, , Book value 2, ,648.3 (3.2) Unrealized gain 2, ,

7 1. About Mitsui Fudosan Target income levels and other benchmarks FY2014 (Actual) FY2015 (Actual) FY2016 (Actual) FY2017 (Estimates as of May 2017) Operating income billion billion billion billion Profit attributable to owners of parent billion billion billion billion Mid-Term Business Plan FY2017(Target) billion or higher billion or higher Interest-bearing debt 1,976.1 billion 2,226.2 billion 2,287.4 billion 2,700.0 billion Approx. 2,500.0billion D/E Ratio 1.06 times 1.16 times 1.15 times - Approx. 1.3 times ROA *1 4.1% 4.1% 4.6% - Approx. 5% Operating income by segment 1-4 Mid-Term Business Plan Innovation 2017 Stage Ⅱ FY2014 (Actual) FY2015 (Actual) Mid-Term Business Plan FY2016 (Actual) FY2017 (Estimates as of May 2017) Mid-Term Business Plan FY2017(Target) Leasing billion billion billion billion billion Property Sales 45.4 billion 44.5 billion 65.2 billion 82.0 billion 65.0 billion Management 49.3 billion 52.4 billion 53.8 billion 52.0 billion 52.0 billion Other ( 16.6 billion) ( 18.6 billion) ( 22.2 billion) ( 24.0 billion) ( 5.0 billion) (Reference) Overseas Income *2 Overseas Income ratio 12.0 billion 6.4% 14.0 billion 6.8% 15.9 billion 6.8% billion or higher Approx. 12% ROE *3 6.4% 6.2% 6.7% - Approx. 7% *1 ROA=(Operating Income + Non-Operating Income)/ Average Total Assets over period *2 Overseas Income= Overseas operating income + equity in earnings of overseas affiliates *3 ROE= Profit attributable to owners of parent/ Average Shareholders Equity over period 6

8 1. About Mitsui Fudosan Investment Plan 1-4 Mid-Term Business Plan Innovation 2017 Stage Ⅱ Domestic Capital expenditures Overseas Capital expenditures Real Property For Sale (Domestic) FY2015 (Actual) FY2016 (Actual) FY2017 (Estimate) FY totals 170 billion 130 billion 230 billion 530 billion 150 billion 140 billion 280 billion 570 billion 420 billion 440 billion 430 billion 1,290 billion Total Investment 740 billion 710 billion 940 billion 2,390 billion Mid-Term Business Plan (FY ) 550 billion ( ) 550 billion ( 100 billion) 1,300 billion ( 1,250 billion) 2,400 billion ( 1,350 billion) ( ) = Recovery Shareholder return Basic policy for shareholder returns Mitsui Fudosan reinvests earnings to increase shareholder value over the medium-to-long term and returns profits to shareholders based on comprehensive consideration of such factors as the business environment and the Company s performance and finances Dividends Mitsui Fudosan aims to pay approximately 25% of annual profit attributable to owners of parent in dividends on a consolidated basis 7

9 1. About Mitsui Fudosan 1-4 Mid-Term Business Plan Innovation 2017 Stage Ⅱ Vision Be a leader that creates markets and grows continuously in Japan and secure a solid position globally Basic strategies Customer-centered management Create value by executing these three strategies Business model innovation 1 Further strengthen the competitiveness of our domestic business Evolve from a real estate solutions partner to a business and lifestyle solutions partner Full implementation of Group management 2 Dramatic growth in overseas business Combine our strengths with those of partners to build a highly stable portfolio with abundant growth potential 8

10 1. About Mitsui Fudosan 1-4 Mid-Term Business Plan Innovation 2017 Stage Ⅱ Growth strategies 1. Strategies to create stand-out neighborhoods (evolving the Smart City concept) Maximize neighborhood value 2. Create neighborhoods Evolve the Office Building business Be a business partner that helps solve our corporate customers problems 3. Further develop the Retail Facility business Meet changing customer needs Increase profitability through strengths in sales and operations 4. Expand the logistics facility business Scale expansion and establish logistics REIT Flexibly combine leasing business with trading and management businesses Expand the hotel and resort business Aim to operate 10,000 rooms Strengthen the competitiveness of the housing business Grow businesses related to existing homes Merge the Company s residential leasing business with Mitsui Fudosan Residential Implement a model for joint value creation with investors Grow assets in custody to expand management revenue Dramatic growth in the overseas business Grow globally by combining our strengths with those of business partners 9

11 2. Core Businesses: Overview & Strengths

12 2-1. Leasing Business

13 2-1. Leasing Business Analysis of Revenue A well-balanced portfolio between Office Buildings and Retail Facilities Analysis of Leasing Segment Revenue Revenue: bn (FY ended March 2017) Other Retail Facilities 221.2bn 41% 16.5bn 3% 33.5bn 6% Overseas Office Buildings Domestic Office Buildings 265.1bn 49% (Billions of yen) Office buildings Retail facilities /2007 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/

14 2-1. Leasing Business Mitsui Fudosan s Strengths (Office Buildings) A portfolio concentrated in central Tokyo and relationships with quality tenants (approx. 3,000 companies) Office Building Revenue by Area (FY ended March 2017; non-consolidated) Other metropolitan Tokyo Other regions 13% 8% 79% Office Building Lease Contract Duration (FY ended March 2017; non-consolidated) 5.1 years or more 14% 5 Wards of central Tokyo 33% years 54% 2 years or less Average contract duration: 4.0 years Stable, Long-Term Relationships with Approximately 3,000 Tenant Companies 13

15 2-1. Leasing Business Pipeline (Office Buildings) Using our development capabilities to continuously improve our portfolio FY Completed Major Projects (completed in FY2016 FY2017) TOKYO MIDTOWN HIBIYA Project Name ( Jointly owned property) Location Rentable Floor Space (Total Floor Space) Angel Court City, London 28,700 m2 G-BASE Tamachi ( ) Minato-ku, - Tokyo ( 18,200 m2 ) TOKYO MIDTOWN HIBIYA Chiyoda-ku, - (Hibiya Mitsui Tower) Tokyo ( 189,000 m2 ) 2017 Chuo-ku, - Shin-Tokyo Takeda Building ( ) Tokyo ( 45,000 m2 ) White City Place Redevelopment Project Renovated Buildings ( ) Wood Lane, London - ( 143,000 m2 ) Nihonbashi Takashimaya Mitsui Building Nihonbashi Muromachi 3 rd District Project FY Completed 2018 Major New Projects (to be completed in and after FY2018) Project Name ( Jointly owned property) Location Total Floor Space (Site Area) Nihonbashi Takashimaya Mitsui Building ( ) Chuo-ku, Tokyo 148,100 m2 msb Tamachi (Tamachi Station Tower S) ( ) Minato-ku, Tokyo 138,300 m2 55 Hudson Yards Project ( ) New York 117,600 m2 Television Centre Redevelopment Project ( ) Nihonbashi Muromachi 3 rd District Project ( ) Wood Lane, London Chuo-ku, Tokyo 55,000 m2 168,000 m2 (ZONE A) 2019 OH-1 Project ( ) Chiyoda-ku, Tokyo 357,700 m Toyosu 2 nd District 2-1 Project ( ) Koto-ku, Tokyo 259,000 m Hudson Yards Project ( ) New York 260,000 m2 Yaesu 2 nd District North Project ( ) Chuo-ku, Tokyo 293,000 m2 Yaesu 2 nd District Central Project( ) Chuo-ku, Tokyo 418,000 m or later TBD Nihonbashi Muromachi 1 st District Project ( ) Chuo-ku, Tokyo TBD ( 8,000m2 ) Nihonbashi 1 st District 1-2 Project ( ) Chuo-ku, Tokyo TBD ( 7,000m2 ) Nihonbashi 1 st TBD District Central Project ( ) ( 24,600m2 ) Chuo-ku, Tokyo ( 仮称 ) 日本橋二計画 White City Place Redevelopment Project Wood Lane, New Buildings ( ) London 71,000 m2 Each FY completed, rentable floor space, and total floor space may change in the future. Some project names are tentative. OH-1 Project Yaesu 2 nd District North Project 55 Hudson Yards Project White City Place Redevelopment Project Television Centre Redevelopment Project 14

16 2-1. Leasing Business Create Neighborhoods in Nihonbashi and Yaesu Project Map Leasable area classified by use at the date of completion OH-1 Project Nihonbashi Muromachi 3 rd District Project Shin-Nihonbashi Sta. JP Building Project Nihonbashi Area Nihonbashi Mitsui Tower Muromachi Higashi Mitsui Building Muromachi Furukawa Mitsui Building Muromachi Chibagin Mitsui Building Hotel 16.7% Others 1.0% Nihonbashi Retail 11.5% Residential 3.3% Office 67.5% Nihonbashi Sta. Tokyo Midtown Tokyo Sta. Nihonbashi 1 st District Central Project Nihonbashi Takashimaya Mitsui Building Hotel 11.9% Service Apartment 2.2% 日本橋二丁目再開発計画 Others 3.7% Retail 7.8% Yurakucho Sta. New Projects Residential 15.6% Office 58.8% Other Existing Projects 15

17 2-1. Leasing Business Mitsui Fudosan s Strengths (Retail Facilities) Diverse types of facilities and a stable revenue structure Relationships with approx. 2,300 tenant companies Retail Facility Revenue by Category (FY ended March 2017) * Ratio of Fixed & Sales-Linked Rent by Category (FY ended March 2017)* 100% 80% 17% 31% 9% 18% 28% Other 9% 4% 6% 53% 60% 40% 20% 0% (Billions of Yen) % 91% 82% 69% LaLaport Outlet Others All Facilities Fixed rent Sales-linked rent *Includes master-leased properties Sales at Mitsui Fudosan Retail Facilities 40 *Includes master-leased properties /2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 LAZONA Kawasaki LaLaPort TOKYO BAY LaLaPort YOKOHAMA LaLaPort TOYOSU *Revenue from operations derived from LaLaport Tokyo Bay has declined during the fiscal year ended March 31, 2013 owing to the partial closure of facilities. 16

18 2-1. Leasing Business Pipeline (Retail Facilities) Expand profit by new development and large-scale renewal projects FY Opened Project Name ( Jointly owned property) Location Store Floor Space 2016 LaLaport SHONAN HIRATSUKA Hiratsuka, Kanagawa 60,000 m Major Projects (opened in FY2016 FY 2017) SAKAE GLOBE Nagoya, AIchi 3,300 m 2 KICHIJOJI SQUARE Musashino, Tokyo 6,600 m 2 MITSUI OUTLET PARK JAZZ DREAM NAGASHIMA (5 th stage) ( ) MITSUI OUTLET PARK KLIA SEPANG( ) (2 nd stage) Phase 2 LaLaport NAGOYA KOMEI Kuwana, Mie 6,300 m 2 Selangor, Malaysia 9,800 m2 LaLaport NUMAZU Major New Projects (to be opened in and after FY2018) FY Opened Project Name ( Jointly owned property) Location Store Floor Space LaLaport NAGOYA KOMEI Nagoya, Aichi 59,500 m 2 MITSUI OUTLET PARK KISARAZU (3 rd stage) Kisarazu, Chiba TBD Sinsaibashi-suji 1-chome Project ( ) Osaka, Osaka TBD MITSUI OUTLET PARK TAICHUNG PORT Taichung City, Taiwan 35,000 m 2 LaLaport NUMAZU Numazu, Shizuoka TBD MARRONNIER Namiki Yomiuri GINZA Project *managed Chuo-ku, Tokyo TBD 2020 LaLaport SHANGHAI JINQIAO *managed 2021 TBD MITSUI OUTLET PARK KLIA SEPANG( ) (3 rd stage) Phase 3 LaLaport Kuala Lumpur( ) Pudong Jinqiao, Shanghai Selangor, Malaysia Kuala Lumpur, Malaysia 60,000 m 2 10,200 m 2 82,600 m 2 LaLaport NANGANG *managed Taipei City, Taiwan 70,000 m 2 Retail Facility Development Project in Togocho, Aichi Miyashita Park Project Aichigun,Aichi Shibuya-ku, Tokyo TBD TBD Large-scale Renewal Projects Execution Period Facility Name No. of Stores Renewed / Total No. of Stores March April 2018 LAZONA Kawasaki Plaza 100 / 330 Each FY opened and store floor space may change in the future. Some project names are tentative. MITSUI OUTLET PARK TAICHUNG PORT LaLaport Kuala Lumpur 17

19 2-2. Property Sales Business

20 2-2. Property Sales Business Mitsui Fudosan s Strengths Property sales to individuals: Development and sale of condominiums and detached housing to individuals Property sales to investors: Development and sale of income generating properties to institutional investors (Billions of yen) 90.0 Property Sales Segment: Operating Income Property Sales to Individuals (Booked in FY ended March 2017) 80.0 Property sales to individuals Property sales to investors Park Homes Toyosu the Residence Park Tower Shin-Kawasaki Property Sales to Investors (Booked in FY ended March 2017) /2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018(E) Ueno East Tower MFLP Atsugi 19

21 2-2. Property Sales Business Mitsui Fudosan s Strengths (Property Sales to Individuals) Operating margin has recovered and Inventories decreased (Billions of yen) (%) Revenue (Left) OP Margin (Right) Property sales to individuals Sales and Operating Profit Margin /2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 (E) (Units) 7,000 6,000 5,000 4,000 3,000 2,000 1, ,249 5,455 5,206 4,651 4,956 4, Condominium - Units Booked and Year-End Inventories Unit booked Year-end inventories 6,557 5,200 4,858 4, ,900 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 (E) 20

22 2-2. Property Sales Business 3-2-3Pipeline (Property Sales to Individuals) An abundant land bank focusing mainly on redevelopment Sales by Brand Middle-grade condominiums Sales by Region Sales by Brand & Region (FY ended March 2017) 57% Based on Mitsui Fudosan Residential results 9% Other regions Kansai & Chubu 2% 9% 89% 34% Metropolitan Tokyo High-grade condominiums Large-scale developments Land Bank (Condominiums) (As of March 31, 2017) Approximately 25,000 units ( incl. redevelopment project in the planning phase) FY to be Reported or later Major Large-Scale Projects Project Name Park City Musashikosugi The Garden Towers East Location Kawasaki, Kanagawa Total No. of Units Sold * 590 Park City Chuo-Minato The Tower Chuo-ku, Tokyo 270 Park Court Sanbancho Hilltop Residence Chiyoda-ku, Tokyo 90 Park Court Akasaka Hinokicho The Tower Minato-ku, Tokyo 160 Park Court Aoyama The Tower Minato-ku, Tokyo 160 Park City Musashikosugi The Garden Towers West Kawasaki,Kanagawa 610 MAKUHARI BAY-PARK CROSS TOWER & RESIDENCE Chiba, Chiba 500 Park Tower Harumi Chuo-ku, Tokyo 1,100 Park Court Hamarikyu The Tower Minato-ku, Tokyo 360 Park City Musashi-Koyama The Tower The Shibuya Ward Office Rebuilding Project Shinagawa-ku, Tokyo 500 Shibuya-ku, Tokyo 500 The Tower Yokohama Kitanaka Yokohama, Kanagawa 1,100 MID TOWER GRAND Chuo-ku, Tokyo 390 Project for the area around Kasuga Korakuen Station Bunkyo-ku, Tokyo 400 Shirokane 1-chome EAST Northern District Project Minato-ku, Tokyo 900 KACHIDOKI Eastern District Project Chuo-ku, Tokyo 2,250 FY to be reported and total number of units sold may change in the future. Some project names are tentative. Includes joint development projects with codevelopers. 21

23 2-2. Property Sales Business Model for Cooperation with Investors Multiple exit strategies and a model for cooperation with investors Sales to a diverse array of investors Management contracts after sales J-REITs managed by the Mitsui Fudosan Group Inventory of Property for Sales to Investors Total: bn (As of March 31, 2017) AUM: 1,106.5 bn (74 properties) Frontier Real Estate Investment Corporation Private funds structured and managed by the Mitsui Fudosan Group Mitsui Fudosan Investment Advisors, Inc. (Structures and manages private funds) Mitsui Fudosan Private REIT, Inc. AUM: bn (118 properties) AUM: bn (32 properties) AUM: 75.5 bn (9 properties) Institutional investors, corporations, etc. AUM: 1,31.2 bn AUM: bn (44 properties) Total amount of AUM (on an appraised value basis) and properties owned as of March 31, Office buildings in operation Retail facilities in operation 14% Logistics facilities in operation 8% 20% Planned & under development 6% Rental housing properties in operation 8% 45% Overseas Rental Properties in operation 22

24 2-3. Management Business

25 2-3. Management Business Mitsui Fudosan s Strengths Property Management Management and other consignment business relating to office building, retail facility, housing, and Car Park Leasing operations Brokerage, Asset management, etc. Brokerage: Brokerage service for individuals (Mitsui Rehouse), etc. Asset management: Asset management services through four REITs and private funds Management Business Operating Income (Billions of yen) 60.0 Property management Brokerage, Asset management, etc /2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 (E) * Figures for the years ended March 2009 are for reference. Property management is highly stable Office Buildings Retail Facilities Housing Car park leasing 24

26 2-3. Management Business Mitsui Fudosan s Strengths (Property Management) Stable earnings growth on the back of an increase in consigned properties (Thousands of units) (Thousands of units) Car Park Leasing Track Record /2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 Property Management (Sales condominiums) Track Record /2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 Property Management (Leasing condominiums) Track Record (Thousands of units) /2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/

27 2-3. Management Business Mitsui Fudosan s Strengths (Brokerage, Asset Management, etc.) Brokerage Business (Mitsui Rehouse) Boasting No. 1 Transaction Volume Brokerage Market (FY ended March 2017) Number of Stores by Area (As of March 31, 2017) Fee/Revenue Transactions Transaction Volume Number of (Billions of yen) (Units) (Billions of yen) stores 1 Mitsui Fudosan Realty Co., Ltd ,612 1, Sumitomo Real Estate Sales Co., Ltd ,108 1, Tokyu Livable, Inc ,278 1, Nomura Real Estate Group , Sumitomo Mitsui Trust Realty Co., Ltd , Source:Real Estate Economic Institute (As of May 26, 2017) Nagoya 9% Kansai 15% Other 9% Metropolitan Tokyo 67% Stable earnings growth due mainly to an increase in assets under management (Trillions of yen) Assets under Management Track Record Assets under Management (As of March 31, 2017) % Private funds, etc. 34% % 8% Originators 18% (As of March, 31) 2% 26

28 2-4. Logistics facility Business 2-5. Hotel & Resort Business 2-6. Global Business

29 2-4. Logistics facility Business Flexibly combine leasing business with trading and management businesses FY Completed Major New Projects Project Name ( Jointly owned property) Location Total Floor Space MFLP FunabashiⅠ Funabashi, Chiba 198,000 m2 MFLP FukuokaⅠ Kasuya, Fukuoka 32,400 m2 MFLP Hiratsuka Hiratsuka, Kanagawa 33,200 m2 MFLP Komaki Komaki, Aichi 42,500 m2 MFLP Inazawa Inazawa, Aichi 74,300 m2 MFLP Ibaraki Ibaraki, Osaka 241,900 m2 MFLP Tsukuba Tsukubamirai, Ibaraki 25,500 m2 MFLP Atsugi Ⅱ Isehara, Kanagawa 54,000 m2 MFLP Prologis Park Kawagoe( ) Kawagoe, Saitama 131,300 m2 MFLP Kawaguchi Ⅰ Kawaguchi, Saitama 54,100 m2 MFLP Atsugi Ⅲ Hiratsuka, Kanagawa 43,400 m2 MFLP Haneda Ota-ku, Tokyo 84,400 m2 MFLP Kawasaki Ⅰ Kawasaki, Kanagawa 41,500 m2 MFLP Funabashi Ⅱ Funabashi, Chiba 225,000 m MFLP Osaka Ⅰ Osaka, Osaka 48,300 m2 Tokyo Rail Gate EAST 2021 Shinagawa-ku, Tokyo 161,000 m2 (*managed) FY completed and total floor space may change in the future. Convenient location in close proximity to major transportation arteries including outer beltways and inner city expressways MFLP Prologis Park Kawagoe MFLP Kashiwa MFLP Yashio MFLP KawaguchiⅠ MFIP Inzai MFLP Hino MFLP Atsugi MFLP AtsugiⅡ MFLP Kuki MFLP AtsugiⅢ MFLP Hiratsuka MFLP Funabashi Nishiura GLP MFLP MFLP FunabashiⅠ Ichikawa Shiohama Tokyo Rail MFLP FunabashiⅡ Gate EAST MFLP Haneda MFLP KawasakiⅠ MFLP Yokohama Daikoku Metropolitan Tokyo MFLP Tsukuba MFLP Funabashi Ⅰ MFLP Ibaraki KEN-O EXPWY Route 16 GAIKAN EXPWY Completed Under development Map date 2016 Google ZENRIN 28

30 2-5. Hotel and Resort Business Total 23 hotels 5,841 rooms (As of Dec 31, 2017) Kyoto Shinmachi Bettei Kyoto Sanjo Kyoto Shijo Kyoto Gion Nagoya Premier Kyobashi Tokyo Shiba Ginza Mitsui Garden Hotels Occupancy Rate/Average Daily Rate (%) (Yen) ,000 16, , ,000 (%) Mitsui Garden Hotels Ratio of Foreign guests FY2013 FY2014 FY2015 FY Average Occupancy Rate(Left) Average Daily Rate(Right) 10,000 8, FY2012 FY2013 FY2014 FY2015 FY2016 6,000 0 Average Tokyo Osaka, Kyoto Other Area 29

31 2-5.Hotel and Resort Business Expand business area, aiming to operate 10,000 rooms Major New Projects (Rooms) 10,000 8,000 6,000 4,000 2,000 0 Approx. 5,400 rooms To 10,000 rooms Newly secured 5,400 5, FY2015 年度 2020 FY2020 年度 FY Opened Project Name Type Location No. of Rooms Mitsui Garden Hotel Kyobashi Garden Hotel Chuo-ku, Tokyo 230 Mitsui Garden Hotel Nagoya Premier Garden Premier Nagoya, Aichi 300 Hotel The Celestine Kyoto Gion The Celestine Kyoto, Kyoto 160 Hotel The Celestine Ginza The Celestine Chuo-ku, Tokyo 100 Mitsui Garden Hotel Otemachi Garden Hotel Chiyoda-ku, Tokyo 190 Mitsui Garden Hotel Gotanda Garden Hotel Shinagawa-ku,Tokyo 370 Mitsui Garden Hotel Nihonbashi Premier Garden Premier Chuo-ku, Tokyo 260 Mitsui Garden Hotel Kanazawa Garden Hotel Kanazawa, Ishikawa 170 Hakataekimae 2-Chome Hotel Project Garden Hotel Fukuoka, Fukuoka 300 Halekulani Okinawa Resort Hotel Kunigami-gun, Okinawa 360 Ginza 5-Chome Hotel Project Garden Hotel Chuo-ku, Tokyo 340 Four Seasons Hotels and Resorts Luxury Hotel Chiyoda-ku, Tokyo 190 (OH-1 Project) 2020 Toyosu 2 nd District 2-1 Project TBD Koto-ku, Tokyo 230 Taipei Zhongxiao Xinsheng Hotel Project TBD Taipei City, Taiwan 300 FY to be opened and number of rooms may change in the future. Some project names are tentative. Mitsui Garden Hotel Kyobashi Mitsui Garden Hotel Nagoya Premier Hotel The Celestine Kyoto Gion Hotel The Celestine Ginza Mitsui Garden Hotel Nihonbashi Premier Four Seasons Hotels and Resorts (OH-1 Project) 30

32 2-6.Global Business Global Business Summary North America and Europe : Continuously secure excellent business opportunities to build a stable earnings base China and Asia: Aggressively capture rapidly growing demand for quality housing and expanding consumption Income from oversea Existing Properties (Billions of yen) Mid-term Business Plan (As of May, 2015) /2013 3/2014 3/2015 3/2016 3/2017 3/2018 ( T ) Breakdown of Overseas Assets by Country 1251 Avenue of the Americas (New York, Acquired in 1986) 527Madison Avenue (New York, Acquired in 2008) th Street (Washington D.C., 2014) Halekulani Hotel (Honolulu, opened in 1984) Homer Building Waikiki Parc Hotel (Washington D.C., (Honolulu, opened in 1987) Acquired in 2012) Overseas 12.7% Domestic 87.3% China & Asia 17% Europe 22% US 61% Total assets: 5,570.7 billion (as of March 31, 2017) 70 Mark Lane (London, 2014) 8-10 Moorgate (London, 2014) 5 Hanover Square (London, 2012) St. Regis Hotel& Residences (Singapore, opened in 2008) Shanjing Outlet Plaza Ningbo (China, opened in 2011) 31

33 New Projects / North America Type Office Rental Housing 2-6.Global Business Project Name (*Jointly owned property) Pipeline (North America and Europe) Location Expected Completion Rentable Floor Space or Units* 270 Brannan Street(*) San Francisco ,900 m2 Waterfront Corporate Center III(*) New Jersey Acquired in ,500 m2 55 Hudson Yards Project(*) New York ,200 m2 50 Hudson Yards Project(*) New York ,000 m2 O&M(*) San Francisco units 525 West 52 nd Street(*) New York units West Edge Tower(*) Seattle units 22 Texas(*) San Francisco units 4000 North Fairfax Drive(*) Arlington units Walnut Creek Transit Village(*) units Walnut Creek (Block 1) (Block 2) TBD 240 units Condo 200 Amsterdam Avenue Project(*) New York units New Projects / Europe Type Office Mixeduse Project Name (*Jointly owned property) Location Expected Completion Rentable Floor Space 1 Angel Court City, London ,700 m2 White City Place Redevelopment Project(*) Wood Lane, Television Centre London Redevelopment Project(*) 2017~ Each expected completion, rentable floor space and total number of units may change in the future. Some project names are tentative. Includes joint development projects with codevelopers. 1 Angel Court White City Place Redevelopment Project 4000 North Fairfax Drive West Edge Tower 55 Hudson Yards Project 50 Hudson Yards Project 525 West 52 nd Street Television Centre Redevelopment Project 32

34 New Projects [ Retail Facilities/Hotel ] Location Type Store Floor Project Name Expected Space/ (*Jointly owned property) Opening Rooms China Shanghai Retail LaLaport Shanghai Jinqiao(*) ,000 m2 New Taipei MITSUI OUTLET PARK Retail City LINKOU(*) ,000 m2 Taichung MITSUI OUTLET PARK Retail Taiwan City TAICHUNG PORT ,000 m2 Taipei Zhongxiao Xinsheng Hotel Hotel Taipei City Project(*) rooms Retail LaLaport Nangang(*) ,000 m2 MITSUI OUTLET PARK KLIA SEPANG (*) Malaysia Selangor Retail (Phase 1) ,000 m2 (Phase 2) ,800 m2 (Phase 3) ,200 m2 Kuala Lumpur Retail LaLaport Kuala Lumpur(*) ,600 m2 MITSUI OUTLET PARK KLIA SEPANG 2-6.Global Business MAHB Pipeline (China and Asia) MITSUI OUTLET PARK TAICHUNG PORT New Projects [ Condominiums ] Location Project Name (*Jointly owned property) Expected Completion Units* China Shanghai Haoshi Fengxiang Yuan(*) 1,300 units Malaysia Kuala Lumpur THE MEWS(*) units Petaling Jaya GEO RESIDENCES(*) units Kuala Lumpur Conlay Place(*) units Singapore Bartley Ridge(*) units The Brownstone(*) units The Criterion(*) units Forest Woods(*) units Ideo Q Chula-Samyan(*) ,600 units Ideo Thaphra Interchange(*) etc ,190 units Thailand Bangkok Ideo O₂(*) etc ,000 units Elio Del Moss (*) etc ,040 units Ashton Asoke-Rama 9 (*) etc ,400 units CitraGarden City Jakarta Indonesia Citra Lake Suites(*) units Tangerang Citra Raya(*) ,880 units Philippines Quezon City The Arton(*) ,710 units Phase 1:2016 / Phase 2:2017 Each expected completion or opening, store floor space, and total number of units may change in the future. Some project names are tentative. Includes joint development projects with codevelopers. Ideo Q Chula-Samyan LaLaport Kuala Lumpur Taipei Zhongxiao Xinsheng Hotel Project Ashton Asoke-Rama 9 CitraGarden City Citra Lake Suites 33

35 3. Summary of Results for the Nine Months Ended December 31, 2017 (FY2017)

36 3. Summary of Results for the Nine Months Ended December 31, 2017 (FY2017) 3-1 Consolidated Income Summary (Overall) (Billions of yen) FY2017/3Q FY2016/3Q Change Full-Year Forecast (as of May 2017) Actual/ Forecast Revenue from operations 1, ,198.6 (97.0) 1, % Operating income (30.5) % Non-operating income/expenses (14.6) (10.2) (4.3) (18.0) - Equity in net income of affiliates (1.6) - - Interest income/expense (18.7) (17.8) (0.9) (25.0) - Other (1.7) - - Ordinary income (34.8) % Extraordinary gains/losses (7.0) - (7.0) (15.0) - Extraordinary gains Extraordinary losses Income taxes (5.9) Profit (35.9) Profit/Loss attributable to non-controlling interests (0.4) (0.5) Profit attributable to owners of the parent (35.9) % Extraordinary Losses Impairment Loss

37 3. Summary of Results for the Nine Months Ended December 31, 2017 (FY2017) 3-2 Consolidated Segment Revenue & Operating Income Consolidated Segment Revenue & Operating Income FY2017/3Q FY2016/3Q Change Revenues from operations 1, ,198.6 (97.0) (Billions of yen) Full-Year Forecast (as of May 2017) 1,790.0 Leasing Property sales (124.5) Management Mitsui Home (0.1) Other Operating income (30.5) Leasing Property sales (32.2) 82.0 Management (2.7) 52.0 Mitsui Home (1.8) (2.5) Other (0.5) 6.0 Eliminations or corporate (26.3) (24.5) (1.8) (35.1) Vacancy Rate Office Buildings and Retail Facilities *1 Tokyo Metropolitan Area Office Buildings *2 Supplemental Data Property Sales to Individuials and Investors Property Sales to Individuals Property Sales to Investors Management 12/2017 3/2017 3/2016 3/2015 3/2014 3/ % 3.1% 2.2% 3.2% 3.5% 3.3% 1.6% 3.4% 2.6% 3.2% 3.3% 3.8% *1 Consolidated *2 Non-Consolidated (Billions of yen) FY2017/3Q FY2016/3Q Change Revenue (11.0) Operating Income (2.4) Unit 2,412 2,836 (424) Condominiums 2,063 2,424 (361) Detached Housing (63) Revenue (113.5) Operating Income (29.8) (Billions of yen) FY2017/3Q FY2016/3Q Change Property Management Brokerage Asset Management Revenue Operating Income (1.4) Car Park Leasing/ Total Managed Units 223, ,999 16,316 Revenue Operating Income (1.3) Brokerage Units 29,938 29,

38 3. Summary of Results for the Nine Months Ended December 31, 2017 (FY2017) 3-3 Consolidated Balance Sheet Summary (Billions of yen) Dec.31, 2017 Mar.31, 2017 Change Dec.31, 2017 Mar.31, 2017 Change Current assets 1, , Current liabilities Cash & time deposits (11.5) Accounts payable - trade (34.0) Marketable Securities Short-term debt* (40.3) Real property for sale (including advances paid for purchases) 1, , Commercial paper* Equity investments in properties for sale (0.0) Short-term bonds payable* (1.3) Other Other (62.0) Fixed assets 4, , Long-term liabilities 2, , Tangible & intangible fixed assets 3, , Corporate bonds* Investment securities Long-term debt* 1, , Lease deposits Deposits from tenants Other Other Interest-bearing debt* 2, , Total net assets 2, , Common Stock Capital Surplus (3.4) Retained Earnings Other Total assets 6, , Total liabilities & net assets 6, , *Interest-bearing debt: short-term debt + commercial paper + short-term bonds payable + corporate bonds + long-term debt Dec.31, 2017 Mar.31, 2017 Change D/E ratio (Times) Equity ratio (%) 35.4% 35.6% ( 0.2)pt 37

39 4. Forecasts for the Year to March 2018 (FY 2017)

40 4. Forecasts for the Year to March 2018 (FY2017) Consolidated Income Statement (Forecasts ) Revenues from operations 1, , Leasing Property sales Management Mitsui Home Other Operating income Leasing (0.7) Property sales Management (1.8) Mitsui Home Other Eliminations or corporate (35.1) (33.1) (1.9) Non-operating income/expenses (18.0) (13.0) (4.9) Interest income/expense (25.0) (23.5) (1.4) Other (3.4) Ordinary income Extraordinary gains/losses (15.0) (27.3) 12.3 Income before income taxes Income taxes Profit Profit attributable to non-controlling interests 3/2018 Forecast (FY2017) 3/2017 Actual (FY2016) (Billions of yen) Change Property Sales Property Sales to Individuals Revenue from Operations/ Operating Income Unit Property Sales to Investors Financial Position Tangible and Intangible Assets Appendices (Billions of yen) Revenue from Operations (7.6) Condominiums (6.1) Detached Housing (1.4) Operating Income Operating Margin(%) 11.0% 9.7% 1.3pt Condominiums 3,900 5,200 (1,300) Detached Housing (89) Revenue from Operations Operating Income (Billions of yen) New Investments Depreciation (1.3) Real Property for Sales (including Advances Pail or Purchases) 3/2018 Forecast (FY2017) 3/2018 Forecast (FY2017) 3/2017 Actual (FY2016) 3/2017 Actual (FY2016) Change Change New Investments Profit attributable to owners of the parent Cost Recovery Interest-Bearing Debt 2, , Dividends Mitsui Fudosan is expecting to increase its dividend per share for the fiscal year ending March 31, 2018 to per share comprising an interim and period-end dividend of per share. 39

41 5. Summary of Results for the Year Ended March 31, 2017 (FY2016)

42 5. Summary of Results for the Year Ended March 31, 2017 (FY2016) 5-1 Consolidated Income Summary (Overall) FY2016 FY2015 Change Full-Year Forecast (as of May 2016) (Billions of yen) Actual/ Forecast Revenue from operations 1, , , % Operating income % Non-operating income/expenses (13.0) (19.9) 6.8 (22.0) - Equity in net income of affiliates (0.9) - - Interest income/expense (23.5) (24.7) 1.1 (26.0) - Other 5.8 (0.8) Ordinary income % Extraordinary gains/losses (27.3) (1.2) (26.1) (10.0) - Extraordinary gains (2.6) - - Extraordinary losses Income taxes (3.3) Profit Profit/Loss attributable to non-controlling interests Profit attributable to owners of the parent % Extraordinary Losses Impairment Loss 25.5 Loss on Disposal of Fixed Assets Dividends The Company plans to pay a period-end cash dividend of per share (for an annual cash dividend of per share) for the fiscal year ended March 31, 2017, an increase of 2.00 per share compared with the forecast announced at the start of the period. 41

43 5. Summary of Results for the Year Ended March 31, 2017 (FY2016) 5-2 Consolidated Segment Revenue & Operating Income Consolidated Segment Revenue & Operating Income FY2016 FY2015 Change Revenues from operations 1, , (Billions of yen) Full-Year Forecast (as of May 2016) 1,750.0 Leasing Property sales Management Mitsui Home (0.2) Other (0.7) 92.0 Operating income Leasing Property sales Management Mitsui Home Other (1.1) 7.0 Eliminations or corporate (33.1) (30.4) (2.6) (34.2) Vacancy Rate Office Buildings and Retail Facilities *1 Tokyo Metropolitan Area Office Buildings *2 Supplemental Data Property Sales to Individuials and Investors Property Sales to Individuals Property Sales to Investors Management 3/ /2016 9/2016 6/2016 3/2016 3/ % 1.9% 2.4% 2.3% 2.2% 3.2% 3.4% 1.9% 1.9% 2.6% 2.6% 3.2% *1 Consolidated *2 Non-Consolidated (Billions of yen) FY2016 FY2015 Change Revenue Operating Income Unit 5,839 5, Condominiums 5,200 4, Detached Housing (112) Revenue Operating Income (Billions of yen) FY2016 FY2015 Change Property Management Brokerage Asset Management Revenue Operating Income Car Park Leasing/ Total Managed Units 210, ,450 19,099 Revenue Operating Income (1.2) Brokerage Units 38,594 37,

44 5. Summary of Results for the Year Ended March 31, 2017 (FY2016) 5-3 Consolidated Balance Sheet Summary Mar. 31, 2017 Mar.31,2016 Change Mar. 31, 2017 Mar.31,2016 (Billions of yen) Change Current assets 1, , Current liabilities Cash & time deposits Accounts payable - trade Marketable Securities (0.0) Short-term debt* Real property for sale (including advances paid for purchases) 1, , Commercial paper* (27.0) Equity investments in properties for sale (3.4) Short-term bonds payable* (7.1) Other Other Fixed assets 3, ,853.6 (28.2) Long-term liabilities 2, , Tangible & intangible fixed assets 2, ,968.9 (1.1) Corporate bonds* Investment securities (40.0) Long-term debt* 1, , Lease deposits (0.4) Deposits from tenants Other Other (5.0) Interest-bearing debt* 2, , Total net assets 2, , Common Stock Capital Surplus (0.4) Retained Earnings Other (13.8) Total assets 5, , Total liabilities & net assets 5, , *Interest-bearing debt: short-term debt + commercial paper + short-term bonds payable + corporate bonds + long-term debt Mar. 31, 2017 Mar.31,2016 Change D/E ratio (Times) (0.01) Equity ratio (%) 35.6% 35.8% ( 0.2)pt 43

45 5. Summary of Results for the Year Ended March 31, 2017 (FY2016) Real Property for Sale 1,334.1 (including Advances Paid for Purchases) SPC Total % Other % Mitsui Fudosan % 5-3 Consolidated Balance Sheet Summary (Billions of yen) Mitsui Fudosan Residential % Total Assets: 5.57 trillion Current assets 1,745.3 Liabilities 3,513.8 Cash and time deposit Interest-bearing debt 2,287.4 Real property for sale 1,334.1 (Non-recourse debt) (366.0) Other Fixed assets Tangible and intangible fixed assets 3, ,967.7 (Rental properties) (2,645.0) Deposits from tenants Other Net assets (Billions of yen) 2,056.9 (Shareholders' equity) (1,984.6) Interest-Bearing Debt/Long- Short Borrowing Ratio (Contract base excl. nonrecourse debt) over 1 year 92% 1 year and shorter 8% Rental properties 2,645.0 Planned & under development Retail facilities in operation Other % % % (Billions of yen) Office buildings Office in buildings operation Office in operation buildings in operation 1, % Investment securities Other New investments(tangible and intangible fixed assets) * Depreciation 71.3 * New investments include the increase in tangible and intangible fixed assets at subsidiaries in which the Company invested during the period. Market value of rental properties At March 31, 2017 (FY2016 Year-end) At March 31, 2016 (FY2015 Year-end) (Billions of yen) Change Market value 4, , Book value 2, ,648.3 (3.2) Unrealized gain 2, , Interest-Bearing Debt/Direct Finance Ratio (Contract base excl. non-recourse debt) 86% SBs 15% Bank borrowings, CP 44

46 Appendices (Market Trends)

47 (%) Mitsui fudosan(tokyo Metro;non-consolidated) Central Tokyo 5 Wards(Source:Miki Shoji) 0.9% 3.3% % (06/6) 0.9% (14/3) 2.6% 1.6% (15/3) 3.4% (07/6) (16/3) (17/12) (17/3) /3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 (Year/Month) Appendix % (03/6,8) 5.8% (03/9) Leasing Business Market Trends (Office Buildings) (Million m2 ) 2.50 Completed Uncompleted (other 20 wards) Uncompleted (3 wards of central Tokyo) % (07/11) Office Vacancy Rate Trends of Supply Volume of Large-Scale Office Buildings within Tokyo s 23 Wards Past( 86~ 16) supply volume (annual average) 1.03 million m 2 /year (total floor space) % (12/6) 5.3% (12/6) % (13/3) 3.8% (13/3) % (14/03) % (15/3) Forecast supply volume after 17 (annual average) 1.03 million m 2 /year (total floor space) (Calendar years) Source: Miki Shoji 4.34% (16/3) 3.60% (17/3) Source: Mori Building (As of April, 2017) % (17/12)

48 Appendix 1 Leasing Business Market Trends (Office Buildings) Net Absorption Trend (Million m2 ) wards of Central Tokyo Office Building Market Trend (Average Rent and Vacancy Rate) (Calendar years) Source: Sanko Estate (Yen/Tsubo) Average rent(left) Vacancy rate(right) 5 wards of Central Tokyo (%) 25,000 20,000 15,000 10,000 5, : 22,901 Yen/Tsubo 1312:16,207 Yen/Tsubo 1412:16,953 Yen/Tsubo 1512:17,692 Yen/Tsubo 1612:18,540 Yen/Tsubo 1712:19,173 Yen/Tsubo 0 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/03 12/3 13/3 14/3 15/3 16/03 17/03 17/ (Year/Month) Source: Miki Shoji 47

49 Appendix 1 Leasing Business Market Trends (Office Buildings) Reason for Company Relocation To Establish a Department/To Expand Business /To Accommodate an Increase in Employees Better Location More Floorspace per Floor Higher Grade Facilities Anti-seismic Design Lower Rent/Lower-Priced Building Superior Security Disaster Prevention Systems /Backup Systems Location That Enhances Corporate Status To Consolidate Offices To Pursue a New Business Project Current Building is to be Redeveloped Eco-conscious /Environment-Friendly Building Necessary to Establish Annex /Separate Office Building Owner Enjoys a High Degree of Trust (in the case of leasing) As a Temporary Move To Establish a New Branch Office /Business Office Marunouchi Otemachi Yurakucho Uchisaiwaicho Hibiya Kojimachi/Bancho Hirakawacho/Kioicho Iidabashi Akihabara Kanda/Ochanomizu Yaesu Nihonbashi Kyobashi 2017(Total376) Ginza Harumi 2016(Total360) Shiodome Shinbashi Toranomon Kamiyacho Akasaka Roppongi Aoyama Hamamatsucho Tamachi Daiba/Aomi Shinagawa(around station) Desired Areas for Planned Lease of Office Space 3 wards of central Tokyo* 2017(Total426) 2016(Total397) 0% 5% 10% 15% 20% 25% 30% 35% 40% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Source: Mori Building Report of the Result of the 2017 Survey of Office Needs in Tokyo s 23 Wards (As of December 2017) *3 wards means Chiyoda-ku, Chuo-ku, and Minato-ku 48

50 Appendix 2 Leasing Business Market Trends (Retail Facilities) Year-on-Year Change in Sales by Category 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -12.0% 1.6% 0.3% 0.3% 0.5% 0.0% -0.5% 0.3% 0.7% -0.7% -0.8% -0.4% -0.2% -2.0% 0.1% 0.0% -1.1% -0.7% -0.5% 0.3% -0.7% -1.4% -1.3% -0.6% -0.2% -1.5% -4.3% -1.9% -2.6% -2.7% -2.6% -2.0% -4.3% -3.1% -2.9% -6.8% General shopping centers Department stores Chain stores -10.1% (Calendar years) Source: Japan Department Stores Association, Japan Council of Shopping Centers, Japan Chain Stores Association Mitsui Fudosan: Year-on-Year Change in Domestic Sales LaLaport (existing facilities) & Outlet park (existing facilities *Inc. floor expansion) 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% 2012/1Q (12/4-6) 2012/2Q (12/7-9) 2012/3Q 2012/4Q (12/10-12) (13/1-3) 2013/1Q (13/4-6) 2013/2Q (13/7-9) 2013/3Q 2013/4Q (13/10-12) (14/1-3) 2014/1Q (14/4-6) 2014/2Q (14/7-9) 2014/3Q 2014/4Q (14/10-12) (15/1-3) 2015/1Q (15/4-6) 2015/2Q (15/7-9) 2015/3Q 2015/4Q (15/10-12) (16/1-3) 2016/1Q (16/4-6) 2016/2Q (16/7-9) 2016/3Q 2016/4Q (16/10-12) (17/1-3) 2017/1Q (17/4-6) 2017/2Q (17/7-9) 2017/3Q (17/10-12) 49

51 Appendix 3 Property Sales Business Market Trends (Property Sales to Individuals) (Thousand of units) Inventories(Left) Initial month contract rate(right) 0 07/1 07/7 08/1 08/7 09/1 09/7 10/1 10/7 11/1 11/7 12/1 12/7 13/1 13/7 14/1 14/7 15/1 15/7 16/1 16/7 17/1 17/7 (Thousand of units) Metropolitan Tokyo Condominium Market: Initial Month Contract & Unsold Inventory Metropolitan Tokyo Condominium Market: New Units Launched and Average Price per Unit (0.1%) (2.2%) (10.6%) New units launched (Left) 47.7 (2.8%) 45.3 (-5.0%) % (12/3) 47.1 (4.0%) 45.7 (-2.9%) % (13/3) 79.8% (14/3) Average unit price metro Tokyo (Right) (Figures in bracket indicate OY change) 45.4 (-0.8%) (8.6%) (2.7%) % (15/3) 55.1 (9.1%) % (16/3) 66.2% (17/3) (%) 72.5% 90.0 (17/12) (Year/Month) Source: Real Estate Economic Institute 54.9 (-0.5%) 59.0 (7.6%) (E) (Millions of yen) (Calendar years) Source: Real Estate Economic Institute