[Company analysis] Mitsubishi Estate Co., Ltd. (三菱地所)

「Mitsubishi Estate Co., Ltd. (三菱地所)」is a major Japanese real estate development company that can be compared with「Mitsui Fudosan(三井不動産)」and「Sumitomo Realty & Development(住友不動産)」. This company owns「Mitsubishi Jisho Property Management(三菱地所プロパティマネジメント)」, which manages assets for office buildings such as "Maru Building(丸ビル)" and "Shin Maru Building(新丸ビル)", and owns「Mitsubishi Estate Residence(三菱地所レジデンス)」and the design business「Mitsubishi Jisho Sekkei(三菱地所設計)」. The number of consolidated employees is approximately 9,439.

 

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	Mitsubishi Estate Co., Ltd.
Company name (Japanese)	三菱地所
Date of establishment	Friday, May 7, 1937
Headquarters location	〒100-8133 東京都千代田区大手町一丁目1番1号
Capital	142,147
Consolidated sales	1,263,283
Consolidated operating profit	229,178
Consolidated total assets	5,774,193
Consolidated capital	1,957,105
Capital adequacy ratio	33.9%
Consolidated number of employees	9,439

 

 

 

2. Summary and Features

 
「Mitsubishi Estate」is one of the core companies of the「Mitsubishi Group」. Currently, they have more than 30 buildings in the Marunouchi area around Tokyo Station, where was developed by the former Mitsubishi Zaibatsu. Headquaters of many Mitsubishi related companies such as「Mitsubishi UFJ Financial Group」,「Mitsubishi Corporation」,「 Mitsubishi Electric Corporation」are assembled in this area. So, this Marunouchi area has the nickname of "Mitsubishi Village(三菱村)".

From 1998 to 2017, in order to conduct urban revitalization, they invested a total of 950 billion yen,to rebuild skyscrapers with business, commercial and cultural functions. In the housing business, through「Mitsubishi Estate Residence(三菱地所レジデンス)」, they developed condominium business under the brand name "The Parkhouse(ザ・パークハウス)". Recently, this company started a rental condominium business by utilizing real estate investing.

 

In addition,  they are also focusing on the development and operation of commercial facilities. In case of Marunouchi area, their subsidiary「Mitsubishi Estate Simon」operates "Premium Outlet Business(プレミアムアウトレット事業)". Besides,「Mitsubishi Estate」is also involved in the operation of "Grand Front Osaka" and the luxury hotel chain "Royal Park Hotels" in the northern area of ​​Osaka Station. 

「Mitsubishi Estate」conducts real estate related business based on strong brand power and solid foundation of the Mitsubishi Group. Compared to「Mitsui Fudosan」, this company is inferior in sales volume, but「Mitsubishi Estate」has extremely stable beneficiary source by owning many office buildings in the Marunouchi area. Sales in the Marunouchi are are about 400 billion yen, it accounts for about 40% of total sales. As for the corporate culture, this company has very conservative tendency.

 

 

 

3. Major Business

 

■ Building business

■ Living industry real estate business

■ Housing business

■ Overseas business

■ Investment management business

■ Design business

■ Hotel business

■ Real estate service business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,125,405	1,194,049	1,263,283
Consolidated operating profit		192,495	213,047	229,178
Consolidated total assets		5,484,115	5,803,689	5,774,193
Consolidated net assets		1,767,460	1,879,088	1,957,105
Breakdown of sales	Buildings business	484,238	506,161	529,695
	Living industry real estate business	88,955	105,817	106,182
	Housing business	407,850	410,598	420,405
	Oversea business	66,556	86,925	81,844
	Investment management buisness	21,323	22,665	49,588
	Design business	19,309	21,613	44,171
	Hotel business	33,512	33,138	24,671
	Real estate service business	24,243	25,584	33,586
	Others	4,237	8,541	8,106
	Adjustments	-24,820	-26,996	-34,969