[Company analysis] Mitsui Fudosan Co.,Ltd (三井不動産)

「Mitsui Fudosan Co.,Ltd (三井不動産)」is the largest comprehensive real estate company in Japan. From the end of the World WarⅡ until today, they have maintained top sales in the Japanese real estate industry. As a real estate developer, it is comparable to「Mitsubishi Estate Co., Ltd.(三菱地所)」and「Sumitomo Realty & Development Co., Ltd.(住友不動産)」. Along with 「Sumitomo Mitsui Financial Group, Inc.(三井住友フィナンシャルグループ)」and「Mitsui & Co., Ltd.(三井物産)」, this company is one of the  three core companies of the「Mitsui Group」. The number of consolidated employees is approximately 18,625.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Mitsui Fudosan Co.,Ltd
Company name (Japanese)	三井不動産
Date of establishment	Tuesday, July 15, 1941
Headquarters location	〒103-0022 東京都中央区日本橋室町二丁目1番1号
Capital	339,766
Consolidated sales	1,861,195
Consolidated operating profit	262,147
Consolidated total assets	6,802,731
Consolidated capital	2,420,804
Capital adequacy ratio	35.6%
Consolidated number of employees	18,625

 

 

 

2. Summary and Features

 
The real estate division of「Mitsui Godo Kaisha(三井合名会社)」is the predecessor of「Mitsui Fudosan」. By the indepence in 1941, this company was established. Before the end of the World WarⅡ, the scale of the buildings business was smaller than that of「Mitsubishi Estate(三菱地所)」. However, following the trend of rapid economic growth, it quickly expanded their business into regional cities. At the same time, as a result of aggressively promoting the skyscraper business in Tokyo, they constructed the「Kasumigaseki Building(霞が関ビルディング)」, Japan's first skyscraper, and their name value was dramatically increased. 

 

Even today, they own office buildings such as "Nihonbashi Mitsui Tower(日本橋三井タワー)", "Kasumigaseki Building(霞が関ビルディング)", "Gate City Osaki(ゲートシティ大崎)", shopping centers such as "LaLaport(ららぽーと)", commercial facilities such as "Mitsui Outlet Park(三井アウトレットパーク)", "Mitsui Garden Hotel(三井ガーデンホテル)" and large-scale logistics facilities such as "MFLP". They carry out real estate development business in a very wide range of fields.

One of the strengths of Mitsui Fudosan is the balance of its business portfolio. As for the operating income in FY2018, it is consisted of Real estate lease(31.9%), Real estate sales(28.5%), management (20.2%), Mitsui Home (14.4%) and others (5.0%), which is fairly stable. This is the result of our continued business diversification, and it is also the reason why they keep their top class position in Japanese real estate industry.

From the latter half of the 1980s,「Mitsui Fudosan」started oversea expansion due to the declining population in Japan. And they acheived several successes in this field such as "Halekulani Hotel", a luxury Hawaii hotel, is also managed and operated by「Mitsui Fudosan」. In 2011, they opened a commercial facility "Sugii Outlet Square Ningbo(杉井アウトレット広場・寧波)" in China, promoted outlets in Malaysia and Taiwan, and promoted the "LaLaport" plan in Shanghai.

 

 

 

3. Major Business

 

■ Real estate lease business

■ Real estate sales business

■ Management business

■ Mitsui Home

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,704,416	1,751,114	1,861,195
Consolidated operating profit		232,698	245,902	262,147
Consolidated total assets		5,570,750	6,301,288	6,802,731
Consolidated net assets		2,056,931	2,287,700	2,420,804
Breakdown of sales	Real estate lease business	536,518	558,165	603,284
	Real estate sales business	488,710	499,607	530,766
	Management business	347,672	353,813	404,346
	Mitsui Home	247,195	252,180	0
	Others	84,320	87,346	322,797