Business Overview

Our Business

The Mitsui Fudosan Group’s main business activities are implemented through its leasing business, property sales business, management business, and facility operations business. In line with this structure, we have adopted the five accounting segments of Leasing, Property Sales, Management, Facility Operations, and Other from fiscal 2023.
Furthermore, revenues and profits generated by individual projects are classified into these segments and may be allocated to a single segment or multiple segments.

Note: The categories shown here are to give an idea of the segments for recording revenues and profits, however, the actual details might differ.

Segment Overview

Diverse Asset Classes and Global Expansion

As a Group of leading comprehensive real estate companies in Japan, the Mitsui Fudosan Group is developing a real estate business based on diverse asset classes.
Overseas, we are also expanding our business through the careful selection of asset classes matched to circumstances of the economies, cities, and other factors in the areas into which we expand.

Diverse Asset Classes

*1 Values without a noted time are as of the end of FY2022.
*2 Includes subleased floor space.
*3 Includes existing facilities and facilities under development.
*4 Number of Mitsui Fudosan Realty Group brokered sales prior to eliminations.

Our Globally Expanding Assets

Office
Retail
Logistics
Housing (Homes and Living)
Hotels and Resorts
Tokyo Dome
Dramatically Growing the
Overseas Business

Main Asset Classes

Office

Market Environment
- Risks
- Changes in office demand due to the spread of telework, etc.
- Increase in office supply and intensifying competition to attract tenants in 2023 and 2025
- Opportunities
- Heightened mindset toward productivity improvement among companies and workers
- Diversification of times, places, etc. for working associated with changes in working styles
- Renewed recognition of the value of offices that help realize real communication
- Expansion of corporate initiatives to achieve carbon neutrality
Competitive Advantages
- Medium- to long-term relationships with about
  3,000^*1tenant companies
- WORK STYLING members: Approx. 260,000^*2
  Number of office locations: Approx. 140 (nationwide)*2
- Mixed-use type neighborhood creation know-how that goes beyond offices
- Diverse non-physical services that contribute to solving tenants’ management issues
- Highly competitive property portfolio (locations, product performance, etc.)
- Achievement of integrated safety and security that spans from development to operational administration under Group management, and disaster-resistant neighborhood creation
*1 As of the end of March 2023 *2 As of the end of July 2023

Business Strategy

Creation of new value for improving productivity through the provision of assets and intangible services that meet the needs of diverse working styles (places, times, etc. of work)
Creation of neighborhoods that people want to visit, not for their elements from the perspective of facilities alone, but for people’s activities, including working, playing, and living, and the services provided
Promotion of carbon neutrality through the improvement of environmental performance in office buildings, and the provision of office building services^*2 that contribute to tenants’ decarbonization strategies

*2 Supply of green electricity to tenants, etc.

An Excellent Portfolio

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Retail

Market Environment
- Risks
- Concerns about the impact of such factors as rising energy prices on consumer sentiment and tenant earnings
- Concerns about the impact of EC market growth on real retail facility sales
- Opportunities
- Increasingly established consumer behavior that properly distinguishes between and uses the real and digital
- Re-expansion of inbound demand
Competitive Advantages
- Retail tenants: Approx. 2,500^*1
  Tenant stores: Approx. 9,700^*1
- Mitsui Shopping Park members: Approx. 13.5 million*2
- Over 40 years of expertise in retail facility planning, development, tenant sales, and operations
- Brand power and customer appeal through leading domestic brands including LaLaport and MITSUI OUTLET PARK
- Synergies with the logistics business, which meshes closely with retail facilities
*1 As of April 1, 2023 *2 As of the end of FY2022

Business Strategy

Maximization of the value of visits and experiences by providing unique real-life experiences from the perspectives of sports and entertainment, etc.
Provision of a purchasing experience that combines the real and digital by upgrading and expanding communication not only through & mall, the Company’s official online site, but also diverse channels, including apps and various social networking services
Enhancement of customer loyalty by strengthening links not only with the Company itself, but also various customer bases in a bid to upgrade and expand points of customer contact while further increasing customer convenience
Promotion of our unique tripartite model combining real facilities, EC sites, and logistics to provide consumers with a wide range of purchasing options and to improve the efficiency of tenants’ inventory management

An Excellent Portfolio

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Logistics

Market Environment
- Risks
- Intensification of competition for land acquisition due to entry of new players
- Overheating of leasing competition due to high-volume supply of new properties
- Opportunities
- Increased efficiency and consolidation of the logistics function in response to relocation needs from aging warehouses and growth in the e-commerce market
- Increased labor saving and the growing need for mechanization through DX against the backdrop of labor shortages
Competitive Advantages
- Track record of advanced logistics facility development extending to 64 properties in Japan and overseas*1
- Close tenant relationships that enable provision of CRE solutions and direct sales to cargo owners
  (Office tenants: Approx. 3,000^*2, Retail tenants: Approx. 2,500^*3, etc.)
- Diverse collaboration and business methods including joint ventures with originators
- MFLP quality which realizes industry top class customer satisfaction
- Ability to propose logistics solutions that leverage DX
- Installation of solar power generators on the rooftops of new logistics facilities to the greatest extent possible
*1 As of the end of August 2023
*2 As of the end of FY2022
*3 As of April 1, 2023

Business Strategy

Providing a platform that helps to resolve logistics issues for customers and society as a whole by maximizing the resources of the Mitsui Fudosan Group
Contributing to the resolution of issues in the logistics industry, such as labor shortages, by utilizing DX, and promoting MFLP brand differentiation
Actively developing new products such as data centers, urban warehouses and freezer and refrigerated warehouses to meet diversifying customer needs by utilizing our know-how in the development of logistics facilities

An Excellent Portfolio

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Housing (Homes and Living)

Market Environment
- Risks
- Decline in housing-related demand due to rising interest rates and worsening business sentiment
- Contraction of domestic housing-related market due to population decline
- Opportunities
- Heightened awareness concerning housing associated with diversification of customers’ lifestyles
- Increased use of online business negotiations and electronic contracts by customers
- Focusing on environment-friendly product planning to realize a decarbonized society
- Focusing on the stock market due to a decrease in the number of new properties and aging buildings
Competitive Advantages
- Condominium unit sales: Approx. 240,000^*1
- Mitsui Housing Loop members: Approx. 320,000^*2
- Brand power as No.1 in brokered deals for 37 consecutive years
- A line-up of varied products and services related to housing (Leasing/sales, new/used, condominiums/detached houses, senior residences, management/operation/brokerage, etc.)
- Planning and development capabilities for realizing a product line-up of city center, large-scale, and redevelopment
*1 As of the end of FY2022
*2 As of the end of April 2023

Business Strategy

Enhancing the ability to capture business opportunities through strengthening of cooperation among Group companies and mutual customer referrals, etc.
Provision of proposals and solutions for optimal “Homes and Living” for every life stage of diverse customers
Deepening and expansion of loyal customers through the one-stop provision of diverse products and services
Promoting the introduction of ZEH and ZEH-M to realize a decarbonized society
Promoting business that leverages Group collaboration in such stock businesses as reconstruction and redevelopment

An Excellent Portfolio

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Hotels and Resorts

Market Environment
- Risks
- Incidence of over-tourism owing to the rapid inbound recovery
- Increase in operating costs due to upswings in various commodity prices and utility expenses
- Opportunities
- High evaluation of Japan’s tourism resources from home and abroad
- Rapid recovery in the number of foreign visitors to Japan and expectations for further growth
Competitive Advantages
- Mitsui Garden Hotel members: Over 800,000^*1
- Number of directly managed guest rooms: Approx.13,300 (domestic and overseas)*1
- Development of 14 hotel and resort brands meeting diverse customer needs, from luxury to lodging-focused brands
- Demonstration of synergies through collaboration on products within the Group (collaboration with WORK STYLING shared offices, attraction of restaurant tenants by leveraging retail tenant relations, collaboration with each member organization of the Group, etc.)
*1 As of the end of August 2023

Business Strategy

Capturing new demand for working, living, etc.,^*2 by providing places to stay
Expansion and deepening of loyal customers through the expansion of membership organization^*3 services
Strengthening brand power by developing luxury facilities for high-net-worth individuals in Japan and overseas

*2 Need for telework, short-term residence, hospital treatment stays, stays for accompaniment of hospital patients, etc.
*3 MGH Rewards Club, etc.

An Excellent Portfolio

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Tokyo Dome

To further improve the appeal of Tokyo Dome City, which combines stadiums, retail facilities and hotels with its focus on sports and entertainment, we undertook the largest renovation ever of Tokyo Dome, the core facility.
Starting with the renovation of the stadium, we will work on various measures to improve value, including renovating areas other than the stadium, to transform Tokyo Dome City as a whole into a more attractive neighborhood.
<Reference> Tokyo Dome City business sales

Note: Figures for FY2018 to FY2020 are prior to consolidation and figures for FY2021 are post consolidation in the Group.

Strengths of Tokyo Dome City: Centrally Located, Convenient for Transportation × Collection of Varied Facilities with Customer Appeal

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