An Uphill Battle Awaits for Building Large Asset Risk Ahead of Real Demand, MF’s Shares Overvalued

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Equity Bottom-Up

Mitsui Fudosan's first-quarter revenue rose 8.4% year over year, to JPY 357.7 billion from JPY 330.0 billion, primarily driven by revenue increases in its three core business segments.<ul><li class="p1">Leasing up 8.5%</li><li class="p1">Property sales up 16.8%</li><li class="p1">Management up 5.5% - despite a 3.4% revenue decline in the Mitsui home segment due to lower orders for new construction item.</li></ul>The group's total operating margin rose to 14.6%, compared with 10.3% in the prior-year quarter, with operating margin improvement in the three core business segments mentioned above, all of which showed double-digit operating margin for the first quarter.Consequently, net margin notched 9.9%, a moderate increase from 4.8% a year earlier.

Mitsui Fudosan's first-quarter revenue rose 8.4% year over year, to JPY 357.7 billion from JPY 330.0 billion, primarily driven by revenue increases in its three core business segments.Leasing up 8.5%Property sales up 16.8%Management up 5.5% - despite a 3.4% revenue decline in the Mitsui home segment due to lower orders for new construction item.The group's total operating margin rose to 14.6%, compared with 10.3% in the prior-year quarter, with operating margin improvement in the three core business segments mentioned above, all of which showed double-digit operating margin for the first quarter.Consequently, net margin notched 9.9%, a moderate increase from 4.8% a year earlier.

Mitsui Fudosan Shows Revenue Increase and Margin Improvement in 1Q