Commercial real estate activity set to increase further this year

Japan’s top real estate companies are expanding sales of properties to investors. Mitsui Fudosan is expecting a 42% increase in operating profit for the year ending March 2022, with sales to investors expecting to top 111 billion Yen (approx. US$1 billion), while Mitsubishi Estate is anticipating a 25% profit increase.

Sales have been ramping up amidst a bullish real estate market in Japan. Sale proceeds will go towards new investments and shareholder returns.

Mitsui is planning for total revenues for the year ending March 2022 to increase by 3% from the previous year to 400 billion Yen (approx. US$3.6 billion) through the sale of office buildings to REITs and foreign funds. The developer acquired Tokyo Dome through the purchase of the indoor ballpark operator earlier this year, and has boosted its asset holdings by 44% over the past five years to over 7 trillion Yen (approx. US$70 billion). In this coming financial year they are planning to invest a further 600 billion Yen in real estate.

Mitsubishi is preparing for sales of commercial properties in and outside of Japan to increase by 25% from the previous year to 64 billion Yen (US$580 million) by March 2022. The company is focusing on sales of logistics centers which have seen favorable market conditions with the expansion of online shopping.

Tokyu Fudosan Holdings is anticipating a 14% increase in sales revenue and a 29% increase in gross profit for the year. 

Source: The Nikkei Shimbun, July 7, 2021.

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