Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>This, and the sector, has been a dreadful performer over the last 12 months. We suspect it is now worth looking at this name. There is significant new office supply coming on line in 2018, particularly from the end but this should not materially impact Mitsubishi Estate. The company is making good progress in finding new tenants, including for Marunouchi 3-2 Project which will be completed in October 2018. Mitsubishi Estate has also been able to increase rents by around 10% as contracts come up…</p>

This, and the sector, has been a dreadful performer over the last 12 months. We suspect it is now worth looking at this name. There is significant new office supply coming on line in 2018, particularly from the end but this should not materially impact Mitsubishi Estate. The company is making good progress in finding new tenants, including for Marunouchi 3-2 Project which will be completed in October 2018. Mitsubishi Estate has also been able to increase rents by around 10% as contracts come up…

Mitsubishi Estate (8802) Trades at 60% of Adjusted NAV, a Laggard and Too Cheap.