Good afternoon everyone, I am Kijima, Executive Manager of Investor Relations at Mitsui Fudosan. I will present in detail the full-year results for the fiscal year ended March 2026.

Similar to last time, I will use the Financial Results and Business Highlights presentation dated May 13, which is available on our website. As usual, I will begin with the results highlights on slide 3 of the presentation.

As indicated in the blue box on the upper part of the page and the figures in the table, in fiscal 2025 we achieved year-on-year growth for each of: operating revenue, operating income, business income, ordinary income, and profit attributable to owners of the parent, exceeded our forecast for the full year, and also set record highs for all levels of earnings. As shown in the box on the lower right, the resulting full-year EPS was 101 yen for an EPS CAGR of 13.4% from the fiscal 2023 EPS forecast of 78.5 yen.

The ROE for fiscal 2025 was 8.7%. Mitsui Fudosan achieved its fiscal 2026 goals for ROE, business income, and net profit under the group long-term vision & INNOVATION 2030 1 year ahead of plan.

Our forecast for fiscal 2026, as shown in the lower part of the blue box and the figures in the table, are: operating revenue of 2.8 trillion yen, business income of 450 billion yen, and profit attributable to owners of the parent of 285 billion yen. We project record-high earnings in fiscal 2026.

Our forecast represent the 15th consecutive year of record highs for operating revenue, the third consecutive year for business income, and the fifth consecutive year for net profit. Returning to the box on the lower right, as a consequence of these forecasts, we project a 3-year CAGR of 10.3% for growth metric EPS growth.

We are expecting to significantly exceed the fiscal 2026 CAGR target of 8% EPS growth and project an ROE of more than 8.5%. For strategic equity holdings, relative to our target of a 50% reduction over the 3-year period from the end of fiscal 2023, we have achieved a reduction of around 40% as of the end of fiscal 2025.

We now aim to achieve a cumulative reduction of more than 50% as of the end of fiscal 2026. With regard to shareholder returns, please turn to page 4.

Based on the overshoot of our net profit forecast and reflecting the dividend policy set out in & INNOVATION 2030 for a dividend payout ratio of around 35%, we have raised our annual DPS guidance for fiscal 2025 from the 34 yen as announced on November 7 to 35 yen, up 1 yen. This represents a 4 yen increase from the 31 yen of the previous fiscal year.

Combined with the share buyback program of 57 billion yen announced on November 7, this will bring the total payout ratio for fiscal 2025 to 54.9% of profit attributable to owners of parent. The 57 billion yen share buyback program was completed on March 9.

With regard to the treasury shares we acquired, the board of directors has resolved to retire the shares on May 29. Our DPS guidance for fiscal 2026, based on a payout ratio of 35% and our net profit forecast of 285 billion yen, is for an annual dividend of 37 yen, up 2 yen from fiscal 2025.

In addition to this, for shareholder returns in fiscal 2026, we have also decided today to implement a 40 billion yen share buyback program. We note that subject to conditions such as share price, cash, and progress toward achieving our KPIs, we are open to considering further share buybacks over the course of the fiscal year.

I will now explain the results in detail. Please turn to page 65 of the Financial Results and Business Highlights presentation.

I will start with the profit and loss statement. Fiscal 2025 operating revenue was 2 trillion 709.7 billion yen, up 84.3 billion yen or 3.2% year-on-year.

Business income, which is the combination of operating income and gains and losses on equity method investments and the disposal of fixed assets, was 445.1 billion yen, up 46.4 billion yen or 11.6% year-on-year. Ordinary income was 313.3 billion yen, up 23 billion yen or 7.9% year-on-year.

Profit attributable to owners of parent was 278.6 billion yen, up 29.8 billion yen or 12% year-on-year. Progress relative to full-year guidance is shown on the right in the table entitled Achievement Rate.

We revised up our earnings forecast twice in fiscal 2025, but relative to the upwardly revised forecasts, we exceeded our projections at each level from operating revenue down to net profit. Next, before covering the details of the segment results, please return to the table on the left.

I will discuss the major items below the line. I will begin with non-operating income.

We incurred a loss of 4.3 billion yen in equity in net income or loss of affiliated companies, a 1.8 billion yen year-on-year widening of losses. This is mainly the result of increased expenses such as depreciation and other expenses related to US rental properties that were completed in the fiscal year under review or the previous fiscal year.

Net interest expense was 73.4 billion yen, an improvement of 5.8 billion yen versus the previous fiscal year. While there was an increase in net yen-denominated interest expense on the back of rising interest rates in Japan, net foreign currency-denominated interest expense declined, mainly reflecting the impact of rate cuts in the US and other factors.

Other non-operating income was a loss of 6.6 billion yen, a 5.9 billion yen year-on-year widening of losses. This reflects the impact of a decline in dividends received and an increase in losses on the retirement of tangible assets.

As a result, overall non-operating income was a negative 84.4 billion yen, a 1.9 billion yen deterioration year-on-year. Next, for extraordinary gains and losses, please refer to the box on the upper right entitled Extraordinary Income.

We posted 51.7 billion yen in extraordinary gains from the disposal of tangible assets. This is in line with the policy set out in the long-term vision & INNOVATION 2030 of not distinguishing between tangible assets and real property for sale when considering disposals.

We generated profits on the sale of the Otemachi Building, Nagoya Station Front Building, and the former Hibiya U-1 Building. We also generated profits on the sale of investment securities of 51.6 billion yen, in line with the policy set out in & INNOVATION 2030 to reduce holdings of investment securities.

We generated profits on the sale of a portion of our equity holdings. Under extraordinary losses, we incurred 19.7 billion yen in impairment losses.

As explained at the time of second-quarter results, this is related to a loss at Lalaport BBCC, a retail facility in Kuala Lumpur, Malaysia. As previously disclosed, there is a JV partner for Lalaport BBCC.

The partner will bear their share of the loss in line with their stake. As such, the impact on Mitsui Fudosan's net profit will only be for our share, which is around 8 billion yen, or roughly half of the 17 billion yen Lalaport BBCC impairment loss.

Please return to the table on the left. As shown on the fourth line from the bottom, corporate tax was 125.1 billion yen.

Net losses attributable to non-controlling interests, shown in the second row from the bottom of the table, was a positive 6.8 billion yen. The figure is a significant positive, reflecting the portion of impairment losses attributable to non-controlling interests for Lalaport BBCC, as just discussed.

Please turn to the next page. I will now cover the segment results in detail.

First, the leasing segment, as shown on slide 67 of the presentation. Reflecting growth in revenues and profits from offices in Japan and overseas such as Tokyo Midtown Yaesu and 50 Hudson Yards in New York, fiscal 2025 operating revenue was 936.6 billion yen and operating income was 181.5 billion yen, up 64.2 billion yen and 5 billion yen year-on-year respectively.

Equity in net income or loss of affiliated companies was a negative 4.5 billion yen, a year-on-year decline of 4.5 billion yen, reflecting the impact of depreciation expenses on US rental properties which were completed in the fiscal year under review and the previous fiscal year. As a result, business income was 177 billion yen, up 0.5 billion yen year-on-year.

The office vacancy rate is shown in the box in the middle of the page. Mitsui Fudosan's non-consolidated metropolitan area office vacancy rate as of the end of March remains at a low 1.6%.

Next is the property sales segment. Please turn to page 68.

As shown at the very top of the page, fiscal 2025 operating revenue for property sales as a whole was 729.2 billion yen, and business income was 193.1 billion yen. This represents a 28.7 billion yen year-on-year decline in operating revenues, but a 26.1 billion yen year-on-year increase in profits.

Looking at the subsegments, for property sales to domestic individuals, operating revenue was 439.3 billion yen and operating income was 112 billion yen, on the back of handovers for Mita Garden Hills, Park City Takadanobaba, and others. This represents a 25.7 billion yen year-on-year increase in operating revenues and a 15.5 billion yen year-on-year increase in operating income.

We show the number of reported units in the middle of the page. The combined total of condominiums and detached housing units was 3,154, down 956 units year-on-year.

However, the average price per unit for the combination of condominium and detached housing units hit a record high of 139.3 million yen. Near-term selling conditions remain strong and unchanged.

We show completed inventory on the lower part of the page. As you can see, fiscal 2025 completed inventory as of the end of March 2026 was 36 units for condominiums and 10 units for detached housing, for a combination of 46 units.

Inventory remains at historically low levels. Also, while not indicated on the slide, the OPM for domestic residential property sales was 25.5%.

Next is property sales to investors and overseas individuals. Please return to the top of the page.

Operating revenue was 289.9 billion yen, down 54.5 billion yen year-on-year. Business income for the subsegment was 81.1 billion yen, the combination of operating income of 31.4 billion yen and the sum of equity method investment profits and gains on the sale of fixed assets at 49.6 billion yen.

On a year-on-year basis, subsegment operating income for property sales to investors fell 14.9 billion yen year-on-year, but was offset by a 25.4 billion yen year-on-year increase in equity method investment gains and gains on the disposal of fixed assets. In total, business income rose 10.5 billion yen year-on-year.

Next, the management segment. Please turn to page 69.

As shown at the top of the page, the overall management segment reported fiscal 2025 operating revenue of 511.4 billion yen and business income of 80.8 billion yen. This is a 25.1 billion yen increase in operating revenue and a 9.2 billion yen increase in business profits from the previous fiscal year.

I will now discuss conditions for the individual subsegments. Property management operating revenue was 376.3 billion yen, while business income was 44.3 billion yen.

This represents year-on-year increases of 14.9 billion yen and 5.8 billion yen respectively. The key factors were an increase in revenue at the car-sharing business and higher management fees reflecting GMV growth at retail facilities.

Next is the brokerage and asset management subsegment. Operating revenue was 135.1 billion yen, and business income was 36.5 billion yen.

This represents year-on-year increases of 10.2 billion yen and 3.3 billion yen respectively. The main driver was an increase in project management fees.

Next is the facility operations segment. Please turn to page 70.

The overall facilities operations segment reported fiscal 2025 operating revenue of 244.1 billion yen and business income of 46.3 billion yen. This represents year-on-year increases of 20 billion yen and 7.7 billion yen respectively.

We cover the key factors in the comment section on the left. The year-on-year gains are due to rising ADRs and occupancy rates for the hotel and resorts business and usage fee hikes at Tokyo Dome.

Looking at the individual subsegments, the hotel and resorts business reported operating revenue of 177.5 billion yen, up 15.4 billion yen year-on-year. The sports and entertainment business, which consists primarily of Tokyo Dome City, posted operating revenue of 66.5 billion yen, up 4.6 billion yen year-on-year.

As you can see, both subsegments reported year-on-year top-line growth. Next is the other segment.

Please turn to page 71. Overall, the other segment reported fiscal 2025 operating revenue of 288.2 billion yen and business income of 10.1 billion yen.

The improved margin at the new construction under consignment business at Mitsui Home and large-scale orders for the lifestyle business at Mitsui Designtec drove the year-on-year improvements of 3.6 billion yen each to operating revenue and business income. Next, for reference, we show the figures for the overseas business.

Please turn to page 72. Overall combined overseas business income for fiscal 2025 was 31.3 billion yen, up 4 billion yen year-on-year.

Within the overseas business, leasing saw improved profitability from offices as a result of progress on tenants moving into 50 Hudson Yards and other properties. However, this was offset by an increase in expenses such as depreciation on US rental properties which were completed in the period under review and the previous fiscal year.

As a result, while operating revenue grew 16.4 billion yen, business income fell 0.9 billion yen year-on-year. In the property sales segment, we made progress on disposals of US West Coast rental residential properties for an increase of 14.8 billion yen in operating revenues.

However, while we incurred losses of 8.5 billion yen related to the sale of US West Coast rental residential properties and the valuation of US West Coast rental residential properties and residential properties for sale in China at the lower of cost or market, progress in profit recognition for the residential property sales in APAC contributed to narrowing the loss by 4.8 billion yen year-on-year. The combination of management and other segments reported a 0.8 billion yen improvement in revenues and a 0.1 billion yen increase in profits.

Next, I will cover the balance sheet. Please turn to page 73.

At the bottom of the page on the left, total assets as of the end of fiscal 2025 were 10 trillion 103.4 billion yen, up 243.6 billion yen from the end of the previous fiscal year, mainly as a result of factors such as progress on investments and the rise in share prices. As indicated below the table, the impact of moves in foreign currency rates was 39.2 billion yen.

As shown on the lower right of the table, the D/E ratio as of the end of fiscal 2025 was 1.41 times and the equity ratio was 32.4%. I will now discuss the major components of change such as cost recovery.

Please turn to page 74. As shown in the table on the upper left entitled Real Property for Sale, the outstanding balance was 2 trillion 603 billion yen, up 102.3 billion yen from the end of the previous fiscal year.

Looking at the table below, new investments were 644.4 billion yen, cost recovery was 520.3 billion yen, and other, which includes the impact of forex, was a negative 21.8 billion yen. Next, on the lower left, the outstanding balance of tangible and intangible assets was 4 trillion 679.1 billion yen, down 28.3 billion yen from the end of the previous fiscal year.

As shown in the table below, there were new investments of 246.3 billion yen, including construction investments for projects such as the renovation of Lalaport Tokyo-Bay North Wing, while depreciation was 150.9 billion yen, and under other, there was a reduction of 123.7 billion yen related to the sale of the former Hibiya U-1 Building and Otemachi Building, Nagoya Station Front Building, as noted in the comment section on the right, and the impact of forex. Combining all of the above, the total outstanding balance fell a net 28.3 billion yen compared to the end of the previous fiscal year.

On the liability side, please see the table on the upper right. As of the end of fiscal 2025, outstanding interest-bearing debt was 4 trillion 632.5 billion yen, up 216.4 billion yen from the end of the previous fiscal year.

This was primarily due to progress on investments in Japan and overseas and the impact of forex. As it is the end of the fiscal year, we also revalued our rental properties, marking them to market.

Please turn to page 75. As you can see in the table on the upper part of the page, market value as of the end of fiscal 2025 was 7 trillion 714.6 billion yen, making the gap to book value, or the unrealized gains, 3 trillion 985.1 billion yen, up 299.5 billion yen from the end of the previous fiscal year.

The increase was mainly the result of the new inclusion of a number of properties such as the Nihonbashi 1-Chome Central District Project, which has now been renamed Tokyo Midtown Nihonbashi, and Tressa Yokohama, in properties that are marked to market. There was also an impact from increases in rent revenues from existing offices and retail facilities.

Next, I will explain in detail our forecasts for the fiscal year ending March 2027. Please turn to page 78.

Our forecast for fiscal 2026 business income is 450 billion yen, up 4.8 billion yen from fiscal 2025. We also project a 6.3 billion yen year-on-year increase in profit attributable to owners of parent to 285 billion yen.

As indicated in the comment section in the box on the right, we have taken into account factors such as increases in office rents in Japan and overseas, increased leasing profits on the back of higher GMVs at retail facilities in Japan and overseas, and expected growth in property sales, including the impact of an acceleration of total asset turnover, including both tangible assets and real property for sale. Operating revenue, business income, ordinary income, and profit attributable to owners of parent are all expected to hit record highs.

I will now elaborate on the segment breakdown. First, for the leasing segment, while we expect an increase in expenses on the back of the completion of domestic office properties and US rental properties, we have also factored in increases in domestic office rents and growth in leasing profits as a result of GMV growth at domestic and overseas retail facilities.

We guide for operating revenue of 970 billion yen and business income of 180 billion yen, both rising year-on-year. We project Mitsui Fudosan's non-consolidated metropolitan area office vacancy rate as of the end of fiscal 2026 to be in the 1% plus range.

We expect vacancy rates to remain low. For the property sales segment, while there is a high base for comparison in the property sales to domestic individuals subsegment relative to the fiscal 2025's high level of central urban, high-end, large-scale properties, factoring in an acceleration of asset turnover in property sales to investors, including both real property for sale and tangible assets, we project overall property sales operating revenue of 740 billion yen and business income of 210 billion yen, both up year-on-year.

With regard to property sales to domestic individuals, please see the box on the left on page 79. We expect to report 2,700 units, the combined total of condominium and detached housing units, and are guiding for an OPM of 21%, similar to the margins of more than 20% that we generated in fiscal '24 and '25.

While not shown on the page, relative to the 2,350 condominium units we expect to report, the contract rate is already at 75%. In addition, we have 24,600 units in our land bank, mainly focused on central urban, large-scale redevelopment projects.

We believe we can continue to stably generate profits over the medium to long term. Next is the property sales to investors subsegment.

While being mindful of maintaining a favorable balance between stable and sustainable leasing profits and property sales profits, by generating added value through the disposal of real property for sale and tangible assets, we project operating revenue of 430 billion yen and business income of 145 billion yen, with both significantly higher year-on-year. While not indicated on the slide, the progress rate on contracts which underpin this profit forecast is already above 50% as of the beginning of the fiscal year, which should give you a high degree of confidence in our ability to achieve our target.

Next, please turn to page 78 for the management segment. As a result of the absence of the one-off management fees reported in fiscal 2025, we are projecting operating revenues of 510 billion yen and business income of 75 billion yen, both down year-on-year.

However, our stated annual profit target for the management segment under & INNOVATION 2030 is 70 billion yen. Our fiscal 2026 forecast represents the third consecutive year that we expect to exceed this level.

For the facilities operations segment, while we expect further revenue and profit growth in the hotel and resorts business given strong demand, taking into account an increase in expenses on the completion of new large-scale projects, we are guiding for overall segment operating revenue of 260 billion yen and business income of 45 billion yen. This level is unchanged from the fiscal 2025 level.

Next, for the other segment, we project overall segment operating revenue of 320 billion yen and business income largely unchanged year-on-year of 10 billion yen. Next, on the net interest burden, reflecting progress on investments in Japan and overseas and the impact of rising interest rates in yen, we project an increase of 11.5 billion yen versus fiscal 2025 to 85 billion yen.

Finally, on extraordinary income, on the back of expected gains on disposals of tangible assets and investment securities, we project extraordinary income of 105 billion yen, up 21.3 billion yen year-on-year. In summary, we project fiscal 2026 operating revenue of 2.8 trillion yen, up 90.2 billion yen, business income of 450 billion yen, up 4.8 billion yen, ordinary income of 315 billion yen, up 1.6 billion yen, and profit attributable to owners of parent of 285 billion yen, up 6.3 billion yen.

For each of operating revenue, business income, ordinary income, and profit attributable to owners of parent, the projections represent record highs. With regard to the effect of the conflict in the Middle East, we have seen no impact in the near term.

As such, it is not factored into our forecast, but the plan does incorporate a certain level of buffer. Obviously, the magnitude of the impact will depend on how long the conflict persists and its severity, but given we have multiple profit-generating capabilities, we don't feel there is a need to be overly concerned about our ability to achieve our targets.

I will skip a discussion of shareholder returns since I have already touched upon it at the beginning of the call. Next, I would like to return to page 79 to discuss investments and cost recovery again, using the table on the right.

Investments in tangible and intangible assets in fiscal 2026 are projected to be 300 billion yen, primarily focused on domestic development investments. For real property for sale in fiscal 2026, we are guiding for investments of 790 billion yen, but cost recovery of 610 billion yen.

Based on this, we project interest-bearing debt as of the end of fiscal 2026 to be 4.8 trillion yen. Finally, on cash allocation, please turn to page 18.

Our cumulative track record for fiscal 2024 and 2025 is shown on the table on the right. Of the prospective cash inflow, cumulative asset turnover proceeds for the two years of fiscal 2024 and fiscal 2025 were 1 trillion 240 billion yen.

Compared to the cost recovery amount for the 3 years up to fiscal 2023, our target of cumulative cost recovery of 2 trillion yen represents a 1.4 times increase. Relative to the fiscal 2026 target, we are tracking largely in line, having achieved 60% of the target to this point.

In addition to real property for sale, we have also made progress on cost recovery, including disposals of tangible assets and investment securities. Backed by growth in business income in each of the segments, the basic cash flow from operating activities over the last 2 years we have generated is around 1 trillion yen.

Our initial assumption was that this level of basic cash flow from operating activities would be achieved over a 3-year period. With regard to cash outflow, we are making steady progress in winning promising investment projects, with the combined total of growth investments and strategic investments at around 1 trillion 970 billion yen, or 80% of our target.

On shareholder returns, the combined total of dividends and share buybacks is approximately 320 billion yen, roughly 80% of our target. As a result, both cash inflows and outflows stand at around 2.2 trillion yen, for a progress rate of roughly two-thirds versus our plan targets.

Currently, the impact of the Middle East conflict has led to highly volatile financial and economic markets, but the near-term fundamentals for our core business, real estate, particularly the Japanese real estate market, are firm. We believe Mitsui Fudosan is making solid progress on enhancing its ability to generate profits.

The group as a whole remains firmly committed to achieving the forecasts we have disclosed for this fiscal year, while closely monitoring the financial and real estate market conditions in Japan and overseas. This completes my presentation.