Mitsubishi Estate: F3/26 Results: Plans ROE Improvement to ~9% on Strong Office Momentum, Overseas Profit Progress – Minor Positive

Research evidence excerpt

Mitsubishi Estate: F3/26 Results: Plans ROE Improvement to ~9% on Strong Office Momentum, Overseas Profit Progress – Minor Positive

Update

May 13, 2026 12:00 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MMitsubishi Estate (8802) | Japan Toshiyuki Anegawa

Equity Analyst

F3/26 Results: Plans ROE Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Mitsubishi Estate (8802.T, 8802 JT)

Real Estate | JapanImprovement to ~9% on Strong

Stock Rating Overweight

Industry View In-Line

Price target ¥6,350Office Momentum, Overseas Shr price, close (May 13, 2026) ¥4,483

Mkt cap, curr, basic (bn) ¥5,436.0

Avg daily trading value (bn) ¥13.6Profit Progress – Minor Positive

Reaction to earnings

Unchanged Modest shortfall Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Office rents continued to increase 5-20% for all tenants, and there were more

cases of increases over 20% for large office spaces.

No Middle East impact has emerged as yet. Notifications of a risk of condo

handover delays to some tenants appear to be precautionary.

The firm has received offers on 80% of overseas properties planned for sale in

F3/27 (with contracts already agreed for 70%).

The firm guides for ROE to improve to ~9% in F3/27 (F3/26: 8.5%), backed by

strong office momentum and overseas earnings growth.

In line with its policy, the firm announced a share buyback capped at ¥50bn, and

is considering additional flexible buybacks during the FY.

Results vs. forecasts: F3/26 OP and EPS came in slightly below the consensus due

to gains on the sale of overseas properties slightly lagging the plan.

Surprises: We consider guidance for Marunouchi OP to increase +23% YoY to