Real Estate: Apr-Jun Focus: Office Rents, Property Sales, Capital Policy

Research evidence excerpt

Real Estate: Apr-Jun Focus: Office Rents, Property Sales, Capital Policy

IdeaPreviewMto earnings

Focus KPI Focus KPI Surprise Likely impact to consensus EPS*

Mitsui Fudosan 8801.T

Rental business BP In-line Largely unchanged

• Watch progress in growing income from commercial facilities as well as offices.

• Leasing progress and trends in top rents particularly for large Yaesu projects

• Buildup of property sales deals, more than half of which had been agreed informally as of May

• Other factors such as scope to overshoot the initial plan, which looks somewhat conservative

• A buyback announcement seems unlikely as the firm announced up to ¥40bn with F3/26 results in May, so

would be a positive surprise.

Mitsubishi Estate 8802.T

Marunouchi BP In-line Largely unchanged

• Watch Marunouchi & Otemachi rent levels, and the situation with raising rent increases rates (avg. of close to

15% is one milestone).

• Leasing progress for large developments including Torch Tower

• Situation with closing overseas sales deals (over 80% subject to informal agreement as of May)

• Situation with building up domestic property sales deals

• A buyback announcement seems unlikely as the firm announced up to ¥50bn with F3/26 results in May, so

Sumitomo Realty & Dev. 8830.T

Real estate rental OP In-line Largely unchanged

• Besides growth in existing building rents, watch 1Q outcomes for hotel earnings and office cost assumptions,

where the co. plan looks conservative.

• Leasing progress and an update on timing of monetizing India business

• Progress in steps to improve ROE via sales of strategic shareholdings

• Progress in scaling up the asset recycling business

• Progress in share buybacks and improving ROE leveraging capital allocation

Hulic 3003.T