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Mori Trust Group Financial Report for the Year Ending March 2025

The Mori Trust Group, which includes Mori Trust Co., Ltd., Mori Trust Building Management Co., Ltd., and Mori Trust Hotels & Resorts Co., Ltd., recently disclosed its consolidated financial results for the fiscal year ending March 2025. This year, the group achieved record-breaking performance across several key metrics.

Key Financial Highlights

For the fiscal year 2025, Mori Trust Group reported total revenues of JPY 281.6 billion, marking an increase of 7.1% compared to the previous fiscal year. Operating profit stood at JPY 54 billion, showing a modest rise of 0.3%. Several factors contributed to this success, including strong office rental demands and increased hotel occupancy rates, driven by a surge in inbound tourism. Thus, both rental and hotel revenue segments reached new peak figures.

Operating profit reached JPY 60.1 billion, indicating a 2.0% increase year-on-year. However, net profit attributable to shareholders of the parent company fell to JPY 36.7 billion, down 11.2% from the previous year, due to the absence of real estate sales recorded in the prior year.

Looking ahead, the company estimates robust growth for the fiscal year ending March 2026, projecting revenues of JPY 300 billion, a 6.5% increase, and an operating profit of JPY 59 billion, which represents a 9.2% growth. Nonetheless, net profit attributable to shareholders is expected to decrease slightly to JPY 35 billion, reflecting a 4.7% decline.

Business Segment Performance

Rental Business

The rental segment achieved remarkable success with revenues of JPY 96.5 billion, reflecting a 4.9% increase and maintaining record highs for three consecutive years, due to the high occupancy rates in existing office buildings.

Hotel Operations

Mori Trust's hotel segment also performed exceptionally well, recording revenues of JPY 79.7 billion, a staggering 20.1% increase from the previous fiscal year. This growth was fueled by high occupancy rates in both city hotels and resort hotels, alongside significant contributions from the newly renovated Manpei Hotel, which reopened in October 2024 after a major refurbishment.

Real Estate Sales

Conversely, the real estate sales segment recorded revenues of JPY 85.6 billion, slightly down by 0.9% due to the lack of revenue from office buildings sold in the previous term. However, the 'Other Business' segment saw growth, reaching JPY 19.7 billion, an increase of 8.7%.

Overall, total revenues hit a record JPY 281.6 billion, with operating profit at JPY 54 billion and net profit at JPY 36.7 billion.

Future Outlook

For the fiscal year ending March 2026, the rental business forecasts an increase in revenue to JPY 96 billion, benefiting from new office projects and persistent high occupancy rates, despite the expected downturn caused by the termination of several existing office projects. The hotel business projects revenues of JPY 85 billion, buoyed by the anticipated contribution from properties previously opened and ongoing strong demand.

Total revenue is projected to reach an all-time high of JPY 300 billion, while operating profit is expected to rise to JPY 59 billion. The group aims to adapt its strategy as prescribed in its 'Advance2030' initiative, aiming for investment goals of JPY 1.2 trillion, with revenue target set for JPY 330 billion by fiscal year 2030. This plan underscores the group's commitment to sustainable growth and development in the hospitality and real estate sectors, while also enhancing their operational efficiencies and market competitiveness.

Summary

Mori Trust Group's dynamic financial landscape for fiscal year 2025 illustrates a resilient business model emphasizing growth in the rental sector and hotel operations. As the company navigates towards its ambitious goals for the coming years, it remains focused on enhancing its portfolio and maximizing shareholder value. This proactive approach, coupled with strategic investments, ensures the group's robust position in the highly competitive real estate and hospitality markets.