other initiativesOther Initiatives

Communication with shareholders and investors (ESG interviews)Dialogues with Shareholders and Investors (ESG Meetings)

In order to help our shareholders and investors understand the direction of our long-term management, we hold ESG-integrated interviews that focus on non-financial aspects centered on ESG.

Opinions, requests, suggestions, etc. received through dialogue are fed back to management through Board of Directors, and by incorporating dialogue into the PDCA cycle of management, we aim to achieve sustainable growth.

Mitsubishi Estate holds integrated ESG meetings that focus on the non-financial aspects of its ESG activities to enable shareholders and investors to gain an understanding of the direction of its management over the long term.

We relay the opinions, requests, proposals, and other feedback that we receive through such dialogues to senior management at meetings of the Board of Directors. By incorporating the results of the dialogues into a plan–do–check–act (PDCA) cycle, we aim to achieve continuous growth.

In addition to the Sustainability Management and Promotion Department, which is in charge of "E: Environment" and "S: Society," and the General Affairs Department, which is in charge of "G: Governance," the Investor Relations Department attends interviews upon request.

The results of ESG interviews conducted in fiscal 2023 and fiscal 2024 are as follows:

In addition to the Sustainability Management and Promotion Department, which is in charge of environmental and social matters, and the General Affairs Department, which oversees corporate governance, the Company holds ESG meetings with the attendance of the Investor Relations Office when requested.

The total number of ESG meetings held by the Company in FY2023 and FY2024 is stated in the table on the right.

TSR rank		Number of companies interviewed (total number of companies)	Composition ratio (number of issued shares)*
Domestic Corporate Shareholders/Institutional Investors	24 companies	Approximately 27.2%
Foreign institutional investors	32 companies	Approximately 18.1%
Total	56 companies	Approximately 45.3%

		Number of companies for which ESG meetings were held in FY2023 and FY2024 (total number of companies)	Distribution ratio (number of shares issued)*
Corporate shareholders and institutional investors in Japan	24	Approximately 27.2%
Overseas institutional investors	32	Approximately 18.1%
Total	56	Approximately 45.3%

* Estimated based on the results of a shareholder identification survey conducted by a third-party research agency to identify beneficial shareholders from the shareholder register (as of the end of March 2025)

* Estimated based on the results of a shareholder identification survey outsourced to a third-party institution inquiring into beneficial owners using the shareholders’ register(as of March 31, 2025)

After the interview, we conduct a survey to gauge the effectiveness of the ESG-focused interview and to identify areas for improvement for the next dialogue, including the level of satisfaction with the dialogue and an evaluation of our initiatives.

In fiscal 2024, many interviewees commented that the opportunity to exchange opinions comprehensively on ESG issues was beneficial and efficient, and approximately 90% of companies responded that they were satisfied or generally satisfied with the dialogue. In addition, approximately 30% of companies responded that the dialogue led to an improvement in their evaluation of our company.

At the close of ESG meetings, we implemented a questionnaire of participants regarding their level of satisfaction with the dialogue and their rating of our ESG initiatives, in order to measure the effectiveness of integrated ESG meetings and ascertain areas of improvement and other matters for incorporation into future dialogues.

In the results of the FY2024 questionnaire, many participants commented that the opportunity to exchange opinions in a comprehensive manner in an integrated ESG meeting was instructive and efficient. In addition, approximately 90% of participants responded that they were “satisfied” or “generally satisfied” with the dialogue, and approximately 30% of the companies that participated responded that the meetings helped improve their rating of Mitsubishi Estate.

Cross-shareholdingsShares Held for Strategic Purposes

1.Policy regarding cross-shareholdings1. Policy on Shares Held for Strategic Purposes

The Company acquires and holds shares for purposes other than pure investment when it determines that such acquisition will be useful for the smooth promotion of our group 's business activities, such as when it contributes to maintaining and strengthening medium- to long-term business relationships or stable fundraising.
With regard to listed shares held as investment shares for purposes other than pure investment, the rationality of holding them is verified from the perspective of whether they are useful for the smooth promotion of our group 's business activities, taking into account the acquisition history, trading performance, the status of cooperative and collaborative relationships, dividend performance, etc., and the details of the holdings, as well as the reduction results and future reduction policy, are reported to Board of Directors at least once a year, and sales are promoted as appropriate.
Meanwhile, since fiscal 2015, Innovation and Business Transformation Group has been continuously investing in venture companies and other organizations with the aim of increasing the added value of existing businesses and expanding business areas through the use of technology and collaboration with external partners.
In order to clearly demonstrate its intention to utilize capital effectively, in May 2025, the Company disclosed a quantitative reduction target to reduce the balance of stocks (listed stocks) held by the Company other than unlisted stocks by more than 50% (compared to the end of fiscal year 2024) by the end of fiscal year 2027, and to continue selling them thereafter, with the aim of not holding them in principle in the future.

The Company acquires and holds shares for other than purely investment purposes if it deems such shareholdings to be useful in facilitating the Group’s business activities smoothly in cases such as when seeking to maintain or reinforce medium- to long-term transactional relationships or in procuring funds on a stable basis.
　In regard to the holding of listed shares as investment shares for other than purely investment purposes, we examine the rationality of such holdings from the perspective of whether they are useful or not in facilitating the Group’s business activities smoothly, focusing on such aspects as the background of the acquisition, record of transactions, status of cooperative and collaborative relationships, and level of dividend payouts. The findings of these examinations, as well as the number of reductions of such shares and the policy on reductions going forward, are reported to the Board of Directors at least once a year, and we are proceeding with sales in an appropriate manner.
 In addition, the Company has been conducting ongoing investments in venture businesses since FY2015. Centered on the Innovation and Business Transformation Group, these efforts are aimed at heightening the value of existing businesses and expanding the Company’s business domains through the utilization of technologies and coordination with external partners.
&emsp In May 2025, to express the Company’s intention to effectively use its capital, the Company disclosed its quantitative reduction target to reduce the balance of shares other than non-listed shares (i.e., listed shares) held by the Company by 50% or more by the end of FY2027 (vs. the end of FY2024), and from thereon, continue to sell them so that the Company will not, in principle, hold such shares in the future.

2. Reduction of cross-shareholdings2. Status of Reduction of Shares held for Strategic Purposes

In fiscal 2024, we sold 11 listed stocks (including partial sales) for a total sale amount of 58.9 billion yen. Including the 40.8 billion yen sold in fiscal 2023, the cumulative sale amount for the past five fiscal years is approximately 118 billion yen.
To achieve our disclosure targets, we will continue to hold dialogue with business partners and reduce our strategic shareholdings.

The Company sold 11 holdings of listed shares (including partial sales) in FY2024, with the sales amount of ¥58.9 billion. The accumulated sales amount over the past five fiscal years reached approximately ¥118.0 billion, including ¥40.8 billion for FY2023. To achieve the disclosed target, we will continue to have a series of dialogues with our business partners to reduce shares held for strategic purposes.

Disclosures in the 2024 securities Report (submitted on June 25, 2025)Details Disclosed in FY2024 Securities Report (Filed on June 25, 2025)

stomach. Criteria and approach to classification of investment stocksa) Criteria for and basic approach to categorizing investment shares

Investment shares held for the purpose of receiving dividends and gains on sale are pure investment shares, and investment shares held for purposes other than pure investment to improve corporate value by maintaining and strengthening the Company's business. It is an investment stock.

The Company categorizes investment shares held for the purpose of receiving dividends or gains on sales as investment shares held purely for investment purposes, and shares held for other purposes, such as to enhance corporate value by maintaining or reinforcing the business of the Company as investment shares held for other than purely investment purposes.

　　

B. Policy for holding investment stocks held for purposes other than pure investment purposes, methods for verifying the rationality of such holdings, and details of verification by Board of Directors, etc. regarding the propriety of holding individual stocks b) Policy on the holding of investment shares for other than purely investment purposes and methods for verifying the rationality of such holdings, and details of verification conducted by the Board of Directors, etc. with regard to the suitability of holding individual issues

The Company acquires and holds shares for purposes other than pure investment when it determines that such acquisition will be useful for the smooth promotion of our group 's business activities, such as when it contributes to maintaining and strengthening medium- to long-term business relationships or stable fundraising.
With regard to listed shares held as investment shares for purposes other than pure investment, we verify the rationality of holding them from the perspective of whether they are useful for the smooth promotion of our group 's business activities, taking into account the acquisition history, trading performance, the status of cooperative and collaborative relationships, dividend performance, etc. We report the details, reduction results, and future reduction policy to Board of Directors at least once a year and proceed with sales as appropriate.
In order to effectively utilize capital, the Company will reduce the balance of listed shares (excluding unlisted shares) held by 50% or more (compared to the end of fiscal year 2024) by the end of fiscal year 2027, and will continue to sell them thereafter, with the aim of not holding them in principle in the future.

The Company acquires and holds shares for other than purely investment purposes if it deems such shareholdings to be useful in facilitating the Group’s business activities in cases such as when the shareholdings contribute to maintaining and reinforcing medium- to long-term transactional relationships or to establishing stable procurement of funds.
In regard to listed shares that the Company holds as investment shares for other than purely investment purposes, it verifies the rationality of shareholdings from the perspective of whether it facilitates the progress of the Group’s business activities by looking at the history of the Company’s acquisition of such shares, the track record of business transactions, the status of cooperative partnerships, dividend performance, and other factors. The Company then reports to its Board of Directors, at least as frequently as once a year, the details of such findings, the reductions in such shareholdings and the guidelines followed by the Company regarding future reductions, and, where necessary, the Company proceeds with the sale of such shares.
To express the Company’s intention to effectively use its capital, the Company disclosed its quantitative reduction target to reduce the balance of shares other than non-listed shares (i.e., listed shares) held by the Company by 50% or more by the end of Fiscal 2027 (vs. the end of Fiscal 2024), and from thereon, continue to sell them so that the Company will not, in principle, hold such shares in the future.

c. Number of investment stocks held for purposes other than pure investment and total amount recorded on the balance sheet c) Number of issues held as investment shares for other than purely investment purposes, and total amount recorded on balance sheet

　

	Number of issues (Issues)	Total amount recorded on balance sheet (Millions of yen)
Unlisted shares	95	9,405
Shares other than unlisted shares	55	292,032

(Note) The Company, primarily through Innovation and Business Transformation Group, continues to invest in venture companies and other entities with the aim of increasing the added value of existing businesses and expanding business areas through the utilization of technology and collaboration with external partners.
The above number of stocks includes 29 new business stocks (27 unlisted stocks and 2 stocks other than unlisted stocks) aimed at New Business Creation.

(Note) Aiming to enhance added value in existing businesses, and expand the scope of business domains by utilizing technology and cooperating with external partners, the Company, mainly through the Innovation and Business Transformation Group, is continuously making investments in start-ups.
In the above number of issues, 29 issues (27 unlisted shares and three shares other than unlisted shares) are new business shares held for the purpose of new business creation.

　

(Issues for which the number of shares increased in the fiscal year ended March 31, 2025)

	Number of issues (Issues)	Total acquisition cost associated with the increase in number of shares (Millions of yen)	Reasons for increase in number of shares
Unlisted shares	2	504	To create synergies with existing businesses
Shares other than unlisted shares	-	-	-

(Issues for which the number of shares decreased in the fiscal year ended March 31, 2025)

	Number of issues (Issues)	Total sales proceeds associated with the decrease in number of shares (Millions of yen)
Unlisted shares	2	50
Shares other than unlisted shares	11	58,939

　　

D. Information on the number of shares for each brand of specified investment stocks and deemed holding stocks, balance sheet amount, etc.d) Information on the number of shares of each issue and amount on balance sheet for specific investment shares and deemed holdings of equity securities

(With regard to the quantitative effects of the holding, for reasons of information management, details of transactions and cooperative partnerships with the other party are not disclosed.)

For more information on corporate governance, please refer to the Corporate Governance Report.

Please refer to our Corporate Governance Report for more information on our corporate governance system.CORPORATE GOVERNANCE REPORT