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Notice of Financial Results for the Fiscal Year Ended March 31, 2011 and Forecast for the Fiscal Year Ending March 31, 2012

May 11, 2011

NTT Urban Development Corporation
(First Section of the Tokyo Stock Exchange:8933)

NTT Urban Development Corporation (head office: Chiyoda-ku, Tokyo, President: Masaki Mitsumura) announced consolidated financial results for the NTT Urban Development Group for the fiscal year ended March 31, 2011 (referring to the 26th business period from April 1, 2010 to March 31, 2011). For more details, please refer to Presentation Material for the FY 2010 and Summary of Financial Statements for the FY 2010. The Company also announced its results forecast for the fiscal year ending March 31, 2012.

Highlights

  • In the fiscal year ended March 31, 2011, consolidated net sales declined to ¥145.6 billion (down ¥3.5 billion, or 2.4%, year on year). However, profits increased in every line, with operating income of ¥24.3 billion (up ¥8.1 billion, or 50.8%), ordinary income of ¥18.5 billion (up ¥8.3 billion, or 81.6%), and net income of ¥9.3 billion (up ¥3.1 billion, or 52.2%).
  • In the leasing business, net sales declined to ¥92.6 billion (down ¥5.4 billion, or 5.6%, year on year) and operating income fell to ¥29.2 billion (down ¥2.2 billion, or 7.3%), reflecting the adverse effects of a fall in rents from existing properties and the sale of properties in the previous fiscal year and other factors, although revenues increased from new properties including JA Building and Keidanren Kaikan completed by the Otemachi 1-Chome Urban Area Redevelopment Project Type 1.
  • In the residential property sales business, net sales increased to ¥41.7 billion (up ¥80 million, or 0.2%, year on year) and operating income was ¥0.5 billion (compared to an operating loss of ¥10.4 billion in the previous fiscal year), thanks to a rise in the unit sales price, despite a fall in the number of condominiums delivered and other factors.
  • With respect to the full-year results forecast (consolidated) for the fiscal year ending March 31, 2012, the Company anticipates net sales of ¥144 billion (down ¥1.6 billion, or 1.2%, year on year), operating income of ¥24.5 billion (up ¥0.1 billion, or 0.7%), ordinary income of ¥18.7 billion (up ¥0.1 billion, or 0.8%), and net income of ¥9.5 billion (up ¥0.1 billion, or 2.1%). Although the Company forecasts a fall in net sales under the difficult business environment, we expect operating income, ordinary income, and net income to increase.
  • NTT Urban Development Group will continue to make efforts to increase its corporate value by securing stable profits while anticipating changes in the business environment.

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