May 6, 2014 2:00 am JST

Mitsubishi Estate's fiscal 2013 profit likely up 30%

TOKYO -- Japan's Mitsubishi Estate Co. is expected to report an operating profit of around 160 billion yen ($1.54 billion) for the year ended March 31, an increase of just over 30%, roughly in line with the forecast.

     Fiscal 2013 sales likely exceeded 1 trillion yen, up from the previous fiscal year's 927.1 billion yen. While the April 1 consumption tax hike kicked in early for condominiums sold in last October and afterward, units nonetheless sold briskly, partly because consumers expect prices to rise.

     The contract balance climbed by more than 40%, boosted by sales of units in high-rise residential buildings and other large properties in the Tokyo Bay area.

     For leased properties, and for office space in particular, rents rose at a moderate pace, but a number of new buildings started generating revenue throughout the fiscal year.

     Mitsubishi Estate sold more properties, many of them overseas, another factor contributing to profit growth.

     For this fiscal year, the company's profit will likely decline owing to fewer property sales and other factors.