Mitsubishi Estate's Excess Returns from Portfolio Likely Difficult to Maintain

Dow Jones09-04

0533 GMT - Mitsubishi Estate's excess returns from redeveloping its assets in a certain Tokyo district could be increasingly difficult to maintain, says Morningstar's Xavier Lee in a note. The Japanese real-estate developer is best known for its portfolio in Marunouchi, a district in Tokyo where many of Japan's largest corporations and financial institutions are headquartered, the analyst notes. Part of the value creation from this portfolio is driven by redevelopment gains rather than enduring pricing power. Therefore, maturation of redevelopment opportunities in this segment could pose a headwind to Mitsubishi Estate's portfolio returns, he adds. Morningstar initiates coverage of Mitsubishi Estate at a fair-value estimate of 3,830 yen. Shares are up 0.1% at Y3,707.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment