Mitsubishi Estate Co., Japan's second-biggest developer, said Monday it expects profit to drop 14 percent this business year as apartment sales slow following a record earthquake.
Net income will decline to ¥55 billion in the year ending March 2012 from ¥64.2 billion last fiscal year.
The developer joins bigger rival Mitsui Fudosan Co. in forecasting lower net income this year as demand for office space and new homes weakens after Japan was struck by a magnitude 9 earthquake on March 11. Mitsubishi Estate said apartment sales are likely to drop 16 percent to ¥311 billion.
Net income climbed to ¥64.2 billion in the 12 months ended March 31 from ¥11.9 billion a year earlier, the company said. Profit for the period ended March 2010 was the lowest in eight years because of losses from equity investments and declining land values.
Sales will decline 1.2 percent to ¥977 billion in the current fiscal year, according to the company. They dropped 2.5 percent to ¥988.4 billion last year.
Mitsui Fudosan on April 28 forecast net income will decrease 5.8 percent to ¥47 billion in the year through March 2012. It expects sales to be little changed at ¥1.4 trillion.