TOKYO -- Real estate developer Mitsui Fudosan apparently logged a group operating profit of just over 46 billion yen ($455 million) for the three months through June, 10% lower than a year earlier, on a plunge in profit from the sale of condominiums and properties.
The Japanese company had posted a 20.4 billion yen profit in its property sales segment a year earlier from selling a number of offices and commercial properties, but such profits decreased in the April-June quarter.
Mitsui Fudosan did not complete any new major high-rise condos over the quarter. It did finish several luxury buildings in the heart of Tokyo, helping to make up for higher construction costs and apparently improving the profitability of these operations.
Newly developed properties, including the fully occupied Osaki Bright Tower office building in Tokyo's Shinagawa Ward, also lifted earnings in the leasing segment.
The company's office buildings have a vacancy rate of only 3% or so, and rents are on the rise. Businesses are hiring more personnel and adding to office space, especially in the staffing and technology industries.
Mitsui Fudosan is eyeing a profit of 15 billion yen to 18 billion yen from selling nine distribution facilities to Mitsui Fudosan Logistics Park, a real estate investment trust that listed Tuesday, among other deals in the July-September quarter. It sees operating profit increasing 9% to a record 220 billion yen for the full year ending March 2017.