Mitsui Fudosan Co: Strong Financial Performance and Strategic Global Expansion Drive Buy Rating

DBS analyst Derek Tan has maintained their bullish stance on MTSFF stock, giving a Buy rating on May 12.

Derek Tan has given his Buy rating due to a combination of factors that highlight Mitsui Fudosan Co’s strong financial performance and strategic growth initiatives. The company’s adjusted earnings per share exceeded expectations by 4%, driven by robust domestic leasing and facility operations. Additionally, Mitsui Fudosan achieved record revenue of ¥2.7 trillion, marking a 13% year-over-year increase, which underscores the strength of its leasing and facility operations.
Mitsui Fudosan’s expansive and diversified asset base, along with its over 50 years of operating history, positions it as a leader in real estate development, property management, and investment. The company’s global expansion, particularly into Southeast Asia, Australia, and the US, has been significant, with its overseas footprint growing by 2.4 times since 2017. This expansion is expected to contribute to a 30% increase in overseas income by 2025. Furthermore, the raised guidance for FY2025, with expected revenue growth to JPY 2.6 trillion, reflects the company’s strong development pipeline and potential for long-term profitability and dividend growth.

In another report released on May 12, Nomura also maintained a Buy rating on the stock with a Yen1,830.00 price target.