We Raise Mitsui Fudosan’s FVE 4% As Office Leasing Stays Resilient and Other Businesses Recover

We raise our fair value estimate for Mitsui Fudosan to JPY 2,800 from JPY 2,700, which we calculate as being equivalent to 0.60 times net asset value. Net profit for July-September was JPY 52 billion, 32% of Mitsui Fudosan’s guidance for net profit of JPY 160 billion for the fiscal year ending March 2022. Together with the JPY 34 billion Mitsui Fudosan earned in April-June, the company has achieved 54% of guidance halfway through, and we expect the full-year target to be reached rather easily, assuming no major new outbreak of the pandemic or other situation occurs this winter. Our new fair value estimate is 8% above today's closing share price.