Mitsui Fudosan : Financial Reporting Document

The Six Months Ended September 30, 2023

Analyst Meeting Presentation

https://www.mitsuifudosan.co.jp/english/

1

1. Environment surrounding the office market

Worker's Perspective

Growing acceptance of remote work;

era of work style diversification

Individuals choosing where and when to work, according to their own productivity and lifestyles

Management's Perspective

Increasing productivity & securing human

resources are becoming increasingly

important management issues

Renewed recognition that real spaces possess value that cannot be replaced by digital models

Update on the Elements Required of an Office

The survival of the fittest nature of the office market is becoming apparent.

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Analyst Meeting Presentation

2. Status of competitive advantage vis-à-vis the market Our offices are a competitive advantage

※

End of FY2023

:to mid-2%

※ Temporary increase following the opening of TOKYO MIDTOWN YAESU

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Analyst Meeting Presentation

2. Status of competitive advantage vis-à-vis the market

Competitive advantage amongst grade office

• Vacancy Rate

	2019.12	・・・	2022.12	2023.6
	（before COVID-19）
CBRE	0.5%	・・・	3.3%	5.7%	worsening
Grade A offices*
Mitsui Fudosan	1.9%	・・・	2.5%	2.3%	almost
Grade A equivalent
leveling off
office properties

• Rent

2019.12	・・・	2022.12 2023.6
（before COVID-19）

CBRE	１	・・・	0.89	0.89	decline
Grade A offices*
Mitsui Fudosan	１	・・・	1.01	1.01	leveling off
Grade A equivalent
office properties

*The vacancy rates of CBRE Grade A offices are reproduced from "MARKETVIEW|JAPAN OFFICE" Q4 2019,Q4 2022,Q2 2023. For rents, we have indexed the assumed contracted rents for December 2019 in CBRE's data as 1.

* CBRE Grade A offices ・・・① Location: five main wards of Tokyo (Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards).

②Size: total rental area of at least 6,500 tsubo, total floor area of at least 10,000 tsubo, standard floor area of at least 500 tsubo.

③Age: generally less than 15 years old.

④Other: In principle, the above criteria shall be met, but selection shall be based on comprehensive consideration of the landmark nature of the building, specifications, etc.

⑤98 buildings as of 2023.6.

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Analyst Meeting Presentation

3. Factors generating competitive advantage over the market.

Strength of

customer base

Office	Various
tenants:
over 3,000	industries
companies

＆

High head	Long-term
office
Use
utilisation

Planning, development and management skills

Favorable located,		Substantial
high-specification,	＋	intangibles services,
newer, mixed-use	Business platform
properties		creation

Chosen by	Workers
× management	want to come

Attracting

external

tenants ＆

High

attendance

rates

Percentage

of head

offices

established

Mitsui Fudosan The Six Months Ended September 30, 2023	5
Analyst Meeting Presentation

3. Factors generating competitive advantage over the market.

Strength of

customer base

Office	Various
tenants:
over 3,000	industries
companies

＆

High head	Long-term
office
Use
utilisation

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Analyst Meeting Presentation

3. Factors generating competitive advantage over the market.

leisure
Media and publishing
1.0%	0.9%	IT・Web
		11.3%

energy entertainment

1.3% 1.1% automobile

1.6%

advertising

1.8%

construction

Apparel and beauty

2.0%

Transport and logistics

2.1%

9.2%

manufacture

2.3%

Other services

2.7%

Office tenants：

Over 3,000 companies

consulting

8.7%

2.9%	Unbiased and Diverse
grocery
Resources and materials	industries
3.5%
		finance
machinery		7.8%
3.6%
Retail and wholesale
3.6%		Trading
	HR
	5.9%
	3.6%
	Medical and welfare	Food and drink
	4.4% Real estate	5.2%
	4.8%

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Analyst Meeting Presentation

3. Factors generating competitive advantage over the market.

Percentage of the area used as headquarters

out of approximately 100 tenants

renting large floor space in our offices.*

Use as head office 80％

Use as other than

head office

20％

Use as head office

80％

Years of continuous use of office space

by tenants with head offices.*

Average: about 23years

Less than Over 30years：

10years：

19％ 21％

Over 20years：

Over 10years：

15％

45％

*Area used as headquarters by approx. 100 tenants who lease large areas

• Leased area of approx. 100 tenants who lease large areas

*Counted as continuous use not only when one of our buildings is continuously used as the head office, but also when the head office is relocated from one of our buildings to another and continuously used as the head office.

*Percentage excluding the eight recent major properties that have opened in the immediate past

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Analyst Meeting Presentation

3. Factors generating competitive advantage over the market.

Strength of

customer base

Office	Various
tenants:
over 3,000	industries
companies

Many industries can be approached

Further expansion of leasing activities

＆

High head	Long-term
office	Use
utilisation	Average:
80%	about 23 years

Long-term use of office buildings to

Stabilisation of occupancy

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Analyst Meeting Presentation

3. Factors generating competitive advantage over the market.

Planning, development and management skills

Favorable located,		Substantial
high-specification,	＋	intangibles services,
newer, mixed-use	Business platform
properties		creation

Chosen by	Workers
management	want to come

Attracting

external

tenants ＆

High

attendance

rates

Percentage

of head

offices

established

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