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  • Writer's pictureAdam German

Record breaking financial performance expected by Mori Building

On November 28th, Mori Building held a briefing for its consolidated interim financial results for the fiscal year ending March, 2024.


For the current period (April 1, 2023, to September 30, 2023), the company reported operating revenue of ¥125.2 billion (a decrease of 19.8% compared to the same period last year), operating profit of ¥18.3 billion (a decrease of 53.4%), ordinary profit of ¥17.2 billion (a decrease of 55.9%), and interim net profit of ¥13.7 billion (a decrease of 47.4%). 


Despite maintaining high occupancy and pricing in both office and residential segments, the company experienced a decline in revenue and profit due to plans for residential property sales in the latter half of 2023.


Segment-wise, operating revenue from Mori’s leasing business increased to ¥90.6 billion (up 7.9%) due to rental income from the Toranomon Hills Station Tower which opened in October 2023. 



However, the sales business witnessed a significant decrease to ¥7.9 billion (down 85.6%) due to an emphasis on deliveries in the latter half of the 2023. 


Facility operation business surged to ¥15.1 billion (up 36.0%) owing to the recovery in hotel and tourism demand. 


Overseas operations reached ¥14.5 billion (up 7.4%) due to improved performance at the mixed-use facility Park Hyatt Shanghai.



Currently, approximately 90% of the leasing portion of the Toranomon Hills Station Tower is contracted, and about half of the leasing portion is contracted in Azabudai Hills which opened in November 2023. 



Furthermore, all residential properties that were slated for sale in the latter half of 2023 have been sold. 


Based on these contributions, the full-year performance is expected to reach record highs with operating revenue of ¥353 billion, operating profit of ¥75.5 billion, ordinary profit of ¥65 billion, and an estimated net profit of ¥47 billion, marking the highest in the company's history.


Source: 

R.E. Port News (Japanese only) 


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