Message from the Chairperson of the Board
To achieve our group 's basic mission of "contributing to the realization of a truly valuable society through urban development that satisfy the people who live, work, and relax there," we have positioned the development and promotion of a corporate governance system as one of our most important management priorities.
As a company with Nominating Committee, etc., the role of Board of Directors at our company is to determine the basic management policy and to oversee overall management. In order to fulfill our accountability to shareholders and other stakeholders, we strive to ensure the transparency and objectivity of management, and have implemented ongoing initiatives such as introducing performance-linked executive Remuneration, non-renewal of takeover defense measures, introduction of third-party evaluation of Board of Directors, and disclosure of a skills matrix. In addition, with regard to the composition of Board of Directors and committees, we have replaced all committee chairs with independent outside Director, expanded diversity, reviewed the size of Board of Directors, and increased the ratio of outside Director.
In fiscal 2024, we announced the "Long-Term Management Plan 2030 Review," which we discussed and formulated as Board of Directors based on various changes in the environment and progress in each business since the plan was formulated, regarding the "Long-Term Management Plan 2030," which started in April 2020. remain unchanged, but the approach to achieving these targets has been revised. In addition, the concept that the "Social Value Enhancement Strategy" and the "Shareholder Value Enhancement Strategy" are two wheels of the wheel remains unchanged. In the "Social Value Enhancement Strategy," the key sustainability theme has been redefined as "actions to establish sustainability for both our group and society," and the affinity with urban development, the core business of our group, has been enhanced, and the integration of business and In addition, under the concept of "Return to Basics," the "Shareholder Value Enhancement Strategy" aims to raise the "earning power" of the real estate business in development, operation, sales, fee business, fund management, corporate, etc., based on the concept of "Return to Basics.
At the same time, we announced an update to our shareholder return policy. Specifically, we will introduce a progressive dividend of +3 yen per year as a general rule, and will continue to repurchase treasury shares on an ongoing and flexible basis. Under this policy, we have completed the repurchase of approximately 50 billion yen of treasury shares (acquisition period: May to November 2024). In May 2025, we also resolved to repurchase approximately 100 billion yen of treasury shares (acquisition period: May to November 2025).
Our "Long-Term Management Plan 2030" is now in its sixth year and has reached the halfway point. While we must continue to closely monitor the economic situation, price trends, domestic monetary policy, and overseas financial trends, such as interest rates and foreign exchange rates, resulting from trends in U.S. trade policy and geopolitical trends, we intend to continue investing as necessary for the growth of each business while optimizing the impact of these trends through portfolio diversification and appropriate business promotion, in order to achieve the goals of our "Long-Term Management Plan 2030." We will also strengthen our efforts to create new value, such as by developing workplaces that meet diverse business needs and operating commercial facilities and hotels that capture changes in domestic consumer behavior and inbound demand, and address issues that have become apparent due to changes in social conditions.
Board of Directors recognizes that the value expected of our group will change amid the rapidly changing business environment in recent years. Therefore, we strive to improve effectiveness through the ongoing initiatives mentioned at the beginning of this article, and we are also holding repeated discussions about what is necessary to gain the support of stakeholders and continue to grow in a way that is unique to our group, in promoting our "Social Value Enhancement Strategy" and "Shareholder Value Enhancement Strategy."
As Chairman of Board of Directors, I will utilize my executive experience to encourage and lead lively discussions at Board of Directors, which is made up of members with diverse knowledge and experience, in order to build a management oversight system with a long-term perspective. Based on our group 's fundamental mission, we, Board of Directors, will work hard to promote management that takes into account future changes in society and the environment, and will meet the expectations of shareholders and investors.
Mitsubishi Estate positions the development and promotion of its corporate governance system as one of its most important management tasks in realizing the Mitsubishi Estate Group's basic mission of contributing to the creation of a truly meaningful society by building attractive, environmentally sound communities where people can live, work, and relax with contentment.
Mitsubishi Estate has adopted a company with nominating committee, etc., structure. Under this structure, the role of the Board of Directors is to decide on basic management policies and supervise overall management. The Board of Directors endeavors to ensure the transparency and objectivity of management so that it can fulfill its accountability to shareholders and other stakeholders. To this end, it has implemented initiatives on an ongoing basis, such as adopting performance-based officer remuneration, deciding not to retain its defense strategy efforts against possible hostile takeover attempts, introducing third-party evaluation of the effectiveness of the Board of Directors, and disclosing a skills matrix. In addition, as for the composition of the Board of Directors and committees, it has ensured that independent outside directors serve as the chairpersons of all committees, improved diversity, revised the size of the Board of Directors, and increased the proportions of outside directors on the Board of Directors.
In FY2024, Mitsubishi Estate unveiled Long-Term Management Plan 2030 Review. The review was formulated through discussions by the Board of Directors on Long-Term Management Plan 2030, which commenced in April 2020, and took into account numerous changes in the business environment and the progress of various businesses since the initial formulation of the plan. While no changes were made to the targets for the efficiency indicators of return on assets (ROA), return on equity (ROE), and earnings per share (EPS), the review led to a revision of the approach toward achieving the plan’s targets. Without changing the basic principle of positioning strategies for increasing both social and shareholder value as the plan's drivers, we redefined our key sustainability themes as actions for ensuring the sustainability of both the Mitsubishi Estate Group and of society, enhancing the affinity of the actions with urban development—the Group's core business—with the aim of integrating sustainability into our businesses. Meanwhile, in the strategies for increasing shareholder value, we decided to raise earnings power in various areas of our real estate business, including development, operation, sales, fee businesses, capital management, and corporate, based on the concept of a return to basics.
We also updated our shareholder return policy. Specifically, the updated policy entails increasing the dividend by ¥3 per share every fiscal year, in principle, and conducting continuous and flexible share buybacks. Under this policy, we completed share buybacks of approximately ¥50.0 billion between May 2024 and November 2024. In addition, in May 2025 we approved share buybacks of approximately ¥100.0 billion to be conducted between May 2025 and November 2025.
Entering its sixth year, Long-Term Management Plan 2030 has reached the halfway point. While we must continue to carefully monitor economic conditions and price trends resulting from the trade policies of the United States and geopolitical developments, as well as monetary policy in Japan and financial trends and other indicators, including interest rates and exchange rates overseas, our policy is to optimize the impact of such factors and continue pursuing investments necessary for achieving growth in our businesses through portfolio diversification and sound business promotion to achieve the targets of Long-Term Management Plan 2030. We will also strengthen our creation of new value, including through the development of workplaces suited to diverse business needs and the operation of retail properties and hotels that reflect changes in consumer behavior and inbound demand in Japan, and advance initiatives to address issues that emerge as a result of changing social conditions.
Amid the rapid pace of change in the business environment in recent years, the Board of Directors recognizes that the value demanded of the Group will also change. With this in mind, the Board will endeavor to enhance its effectiveness by continuing to pursue the initiatives I outlined at the beginning of my message while continuously discussing what it must do to earn the support of stakeholders and achieve ongoing growth unique to the Group in promoting strategies for increasing both social and shareholder value.
As chairperson of the Board, I will work to establish a management supervisory structure from a long-term perspective by encouraging and leading active discussions at meetings of the Board of Directors, which comprises members with a diverse range of knowledge and experience, while utilizing my own experience of business execution. Guided by the basic mission of the Group, the Board of Directors will meet the expectations of shareholders and investors through concerted efforts to promote management that anticipates future changes in society and the business environment.
August 2025
August 2025
Board of Directors Mitsubishi Estate Co., Ltd., Ltd.
Chairperson of the Board
Mitsubishi Estate Co., Ltd.
