Mori Building Co., Ltd. herein announces its interim financial statements for the fiscal year ending March 2009. For more information, please refer to the attached documents.

Highlights of Consolidated Financial Statements
■Consolidated Financial Results Overview (Interim Period)

(Unit: billion yen)
  FY ended Sep. '07 FY ended Sep. '08 Change
Operating revenue 74.9 106.3 31.4(42%)
Operating profit 15.8 34.1 18.3(116%)
Ordinary profit 7.9 24.8 16.8(212%)
Net profit 5.3 9.7 4.4(84%)
  • Operating revenue for this interim period amounted to 106.3 billion yen, up
    31.4 billion yen (42%) compared with the same period of the previous year. Operating profit increased by 18.3 billion yen (116%) to 34.1 billion yen. We achieved the record high earnings for the first half of the year with increases in revenue and profit.
  • The Office Building Business recorded 53.6 billion yen. In this first half, mainly due to the decline in revenue-earning floors resulting from property sales in fiscal year 2007 (ended March 2008), and the suspension of the leased property operations of properties for redevelopment, revenue declined by 2.3 billion yen (-4%) compared with the same period of the previous year. * Refer to the next page for changes in the occupancy rates and unit rents of offices and residences.
  • Revenue in the Asset Development and Management Business substantially increased by 32.4 billion yen to 33.4 billion yen, (3,042%) compared with the same period of the previous year mainly due to the sales of the Akasaka Tameike Tower (the office section) and the Ark Mori Building (0.5 floor) to Mori Hills REIT.
  • The Property Management Business recorded 7.8 billion yen, up by 1.1 billion yen (16%) compared with the same period of the previous year due to the strong expansion of commissions.
  • The Facilities Operating Business was down by 400 million yen (-3%) compared with the same period of the previous year, to 10.3 billion yen, due to a decline in revenue in the Hotel Business.
  • The Overseas Businesses recorded 3.2 billion yen, up by 500 million yen (19%) on a year-over-year basis, mainly due to increased revenue in existing office buildings in Dalian and Shanghai.
  • On the back of such a considerable increase in revenue, ordinary profit was 24.8 billion yen, up by 16.8 billion yen (212%) compared with the same period of the previous year.
  • Net profit for the term was 9.7 billion yen, up by 4.4 billion yen (84%) compared with the same period of the previous year, having absorbed the temporary expenses that arose due to the opening of the Shanghai World Financial Center.

(Reference) Changes in the Occupancy Rates and Unit Rents of Offices and Residences

  End of March '07 End of March '08 End of Sep. '08 Estimate for end of March '09
Office occupancy rate 98% 93% 90% 95%
Office unit rents 30,000 yen 32,000 yen 35,000 yen 36,000 yen
Residence occupancy rate 90% 88% 90% 90%
Residence unit rents 25,000 yen 25,000 yen 25,000 yen 25,000 yen

By the end of the fiscal year 2008 (ending March 2009), as stated above, we plan to maintain such appropriate occupancy rates as 95% in offices and 90% in residences. In addition, we expect a steady rise in office unit rents.

 

■Consolidated Business Forecasts

(Unit: billion yen)
  Year ended
March 2008
Forecast for year
ending March 2009
Change
Operating revenue 169.7 185.0 15.3(9%)
Operating profit 44.0 37.0 -7.0(-16%)
Ordinary profit 23.8 19.0 -4.8(-20%)
Net profit 39.5 7.0 -32.5(-82%)

Regarding consolidated business forecasts in fiscal year 2008 (ending March 2009), we expect an operating revenue of 185.0 billion yen (+9%) mainly due to the increased revenues generated by our robust achievements in the Asset Development and Management Business and the completion of construction of the Shanghai World Financial Center. However, due to temporary expenses arising from opening of the Shanghai World Financial Center, operating profit is expected to be 37.0 billion yen (-16%) and ordinary profit to be 19.0 billion yen (-20%). Net profit is also estimated to decline to 7.0 billion yen (-82%) due to the removal of special factors such as extraordinary profit from the sale of Mori Building real estate in from fiscal year 2007 (ended March 2008).

<Attached Reference>
Interim Financial Report for the Fiscal Year Ending March 2009
* These documents have been distributed to the Ministry of Land, Infrastructure and Transport Press Club and the MLIT Press Club for Construction Publications.

<Disclaimer regarding forward-looking statements>
Business forecasts in this document and the attached document are based on information available at the time this document was released, and a number of assumptions had to be made concerning uncertain factors that could affect future business performance. Actual business results may vary considerably from these forecasts due to various factors.