Good afternoon, everyone. I am Uchida, Executive Manager of Investor Relations at Mitsui Fudosan. I will explain our results for the Q1 of the fiscal year ending March 2025. As usual, I will use the financial results and business highlights materials dated August 2nd, which are available on our website. Let's get started. As always, I will begin with an overview of the Q1 results. Please turn to page 3 of the presentation materials. As shown in the box at the top of the page, Mitsui Fudosan reported positive growth for operating revenues, operating income, and ordinary income on a year-on-year basis, also hitting new record highs for each.
With regard to the new profit metrics set out in our Group Long-Term Vision & INNOVATION 2030, business income also rose JPY 20.2 billion, or 23.9% year-on-year, on factors such as solid profit growth in the domestic property sales to individuals and facility operations businesses. Owing to a high base for comparison, Q1 profit attributable to owners of parent declined JPY 20.8 billion, or 24.3% year-on-year, reflecting the absence of extraordinary profits from the sale of investment securities in the previous fiscal year, the vast majority of which was recorded in Q1. The progress rates relative to our full-year forecast at all levels of profit exceeded 25%. Overall, we are progressing in line toward achieving our initial full-year forecast. Please turn to page 5 of the presentation materials. I will now cover the individual segments.
In Q1, the key segments of property sales and facility operations achieved substantial year-on-year growth in operating revenues and profits. For the leasing and management segments, operating revenues grew year-on-year, but profits declined slightly. All segments are making steady progress toward achieving the full-year forecast. We highlight the main factors for year-on-year changes in operating revenues and profits for each segment in the box, but I will go into more detail later.
The progress rates versus the full-year business income forecast for the segments of leasing and management, which generate core profits on a stable and continuous basis, are above 25%. We are making solid progress toward our targets. For the property sales segment, we have set a high full-year profit target for the property sales to domestic individuals subsegment of JPY 96 billion. The current progress rate is already at 43%.
For the property sales subsegment of property sales to investors and overseas individuals, which includes gains and losses on tangible assets and equity method investments, our full-year profit target is JPY 74 billion. As the majority of property sales will be reported in the H2 of this fiscal year, the current progress rate is around 10%. We are steadily advancing toward achieving the full-year earnings targets and expect to continue to make good progress on contracts going forward.
The progress rate versus the full-year business income target for the facility operations segment is already over 37%, mainly driven by the strong revenue and profit growth from the hotel and resorts business. This business is doing well, running ahead of our initial plan. I will now discuss the results in more detail. Please turn to page 62 of the presentation. I will start with the consolidated profit and loss statement.
Operating revenue for Q1 fiscal 2024 was JPY 630.3 billion, up JPY 69 billion, or 12.3% year-on-year. Business income, which is the combination of operating income and gains and losses on the disposal of tangible assets and equity method investments, was JPY 104.7 billion, up JPY 20.2 billion, or 23.9% year-on-year. Ordinary profit was JPY 90.1 billion, up JPY 17.2 billion, or 23.7% year-on-year. Profit attributable to owners of parent was JPY 65 billion, down JPY 20.8 billion, or 24.3% year-on-year. On the right, we show the progress rate relative to our forecast.
Please see the box titled "Progress Comparison with Full-Year Forecast." Operating revenue was 24.2%, business income 28.3%, ordinary income was 34.7%, and profit attributable to owners of parent was 27.7%. As you can see, we are making steady progress. Next, before commenting on the segment details, please return to the table on the left.
I will touch upon the major items below the line. First, under non-operating income and expenses, the net interest burden increased JPY 3.2 billion year-on-year. Major factors for the increase include the rise in interest-bearing debt as a result of investments in the previous fiscal year. However, the progress rate versus the full-year target for net interest burden of JPY 79 billion is 24%, in line with our initial forecast. We note that the BOJ decided to raise the policy rate on July 31st, but as the majority of our domestic borrowings are long-term and fixed rate, the impact on earnings is limited.
Equity in net income or loss of affiliated companies fell JPY 0.7 billion year-on-year. This primarily reflects a high year-on-year base for comparison on the back of strong profits in overseas property sales at Asian equity method affiliates in the previous fiscal year.
Factoring in dividends received and net other non-operating income and expenses, overall non-operating income and expenses was a negative JPY 3.5 billion year-on-year. Next, I will discuss extraordinary gains and losses. As shown in the table titled "Extraordinary Gains and Losses" on the upper right, Mitsui Fudosan posted JPY 6.9 billion in gains on sales of investment securities as extraordinary gains. Based on the new policy on investment securities outlined in & INNOVATION 2030, we continued to make disposals of a portion of the equities we hold.
As the vast majority of gains on sales of investment securities in the previous fiscal year were reported in Q1, optically, extraordinary profits appear to have fallen year-on-year. However, this decline is purely a function of the timing. As indicated in our full-year forecast, we plan to generate extraordinary gains of JPY 85 billion, including gains on the sale of tangible assets.
There were no extraordinary losses posted in Q1. I will now cover the segment results in more detail. I will start with the leasing segment. Please turn to page 64 of the presentation materials. As shown at the top of the page, Q1 operating revenue was JPY 207.1 billion, and business income was JPY 44.5 billion. This represents a JPY 9.2 billion increase in operating revenues, with profits largely unchanged year-on-year. In the comment section on the left, we describe recent conditions for the leasing segment.
In Q1, while rent revenues for existing offices and GMV for existing retail facilities grew as a result of an increase in property taxes on overseas properties, the overall segment reported year-on-year growth in operating revenues but a slight decline in profits. We show the office vacancy rate in the box in the middle of the page.
Mitsui Fudosan's non-consolidated metropolitan area office vacancy rate as of the end of June was generally stable at 2.5%, largely unchanged from the 2.2% as of the end of fiscal 2023. Our forecast for the fiscal year-end vacancy rate is around the 2% level, largely unchanged from our initial projection. Next is the property sales segment. Please turn to page 65. As shown at the top of the page, overall Q1 segment operating revenue was JPY 191.7 billion, and business income was JPY 48.6 billion. On a year-on-year basis, this represents increases of JPY 45.6 billion and JPY 15.4 billion, respectively. Looking at the individual subsegments, I will start with property sales to domestic individuals. Please look at the second row from the top. Operating revenue was JPY 165.4 billion, and operating income was JPY 41.4 billion.
This represents year-on-year increases of JPY 49.8 billion and JPY 12.8 billion, respectively. As stated in the comment section on the left, the main driver in Q1 was progress on handovers for Park Tower Kachidoki. Other key reported properties are listed in the box below the comment section on the left for your reference. This fiscal year, we expect a further increase in the proportion of central urban, large-scale, high-end properties relative to the previous fiscal year. Although not shown here, the OPM for the overall domestic housing business as of Q1 was 25%.
This is higher than the full-year OPM forecast of 22.9%, but we expect to make steady progress toward our full-year target. The number of reported units is shown in the middle of the table. The combined units for condominiums and detached housing were 1,768, up 674 year-on-year.
The average unit price for condominiums and detached housing was over JPY 90 million, a high level similar to the JPY 100 million-plus level of the previous fiscal year. This is a reflection of the mix of reported properties. As noted earlier, a high proportion of the properties reported in Q1 were high-end properties, similar to the previous fiscal year. Near-term selling conditions remain strong. Completed inventory for Q1, as shown in the table on the lower part of the page, was 53 units for condominiums and only 19 units for detached housing.
The combined total remains very low at 72 units. The contract rate relative to the full-year target for new domestic condominiums of 3,650 has risen to 92% as of the end of June. Last fiscal year at this time was 87%. The previous fiscal year was 83%.
This should give you a sense for the strong progress we are making this fiscal year. Next, turning to the property sales to investors and overseas individuals, which includes gains and losses on tangible assets and equity method investments. Please return to the top of the page. Operating revenue was JPY 26.3 billion, and business income was JPY 7.1 billion, a combination of JPY 5.1 billion in operating income, JPY 1.8 billion in gains on equity method investments, and JPY 0.1 billion in gains on disposals of tangible assets.
This represents a year-on-year decline of JPY 4.2 billion in revenues, but a JPY 2.6 billion increase in profits. In the property sales to investors business, the timing of disposals is based on negotiations with counterparties for each property. In the previous fiscal year, we reported disposals primarily of domestic rental residential properties.
In this Q1, profits were generated not only on domestic rental residential properties but also included gains on sales of overseas residential properties in New York. As indicated at the outset, the vast majority of handovers for this fiscal year will be in H2. Hence, the Q1 progress rate versus the full-year target of slightly less than 10%. The real estate investment market continues to have a strong appetite for properties that generate stable cash flows, such as offices, logistics facilities, and rental residential properties. Going forward, we will continue to monitor the activities of buyers and sellers and financial and real estate market trends while remaining firmly focused on achieving our full-year business income target of JPY 74 billion by proactively completing contracts and handovers. Next, the management segment. Please turn to page 66.
This segment consists of the property management business, which focuses on managing properties under contract and the car park leasing business, Repark, and the brokerage and asset management business, which includes the corporate and retail brokerage businesses and the asset management business for our sponsored REITs and others. Please look at the top row of the table. The overall management segment reported operating revenue of JPY 115 billion and business income of JPY 15 billion. This represents a year-on-year increase in revenues of JPY 5.1 billion and a JPY 0.2 billion decline in profits. Looking at the conditions for the individual businesses, I will start with property management. Subsegment operating revenue was JPY 87.5 billion, and business income was JPY 8.6 billion. This represents a JPY 3.9 billion increase in revenue but a JPY 0.4 billion drop in profit.
The key factors were a year-on-year improvement in occupancy rates for the Repark car park leasing business, but an increase in expenses related to systems upgrades. Next is the brokerage and asset management subsegment. Operating revenue was JPY 27.5 billion, and business income was JPY 6.4 billion for year-on-year increases of JPY 1.1 billion and JPY 0.1 billion, respectively. The key factors were increases in number of transactions and unit prices in the retail brokerage business. Next is the facility operations segment. Please turn to page 67. Overall, facility operations reported Q1 operating revenue of JPY 55.7 billion and business income of JPY 11.2 billion for year-on-year increases of JPY 9.8 billion and JPY 5.6 billion, respectively.
The key factors, as outlined in the comment section on the left, were the significant further improvement in ADRs for the hotel and resorts business and the increase in spectator numbers at Tokyo Dome. Looking at the individual subsegments, the hotel and resorts business posted operating revenue of JPY 39.9 billion, up JPY 7.5 billion year-on-year, while the sports and entertainment business, consisting primarily of Tokyo Dome City, reported operating revenue of JPY 15.8 billion, up JPY 2.3 billion year-on-year. As you can see, both businesses were able to grow revenues year-on-year. Next is the other segment. Please turn to page 68. This segment mainly consists of the new construction under consignment business of Mitsui Home and interior construction and renovation business for offices and hotels of Mitsui Designtec . Please look at the top row of the table.
Overall, other segment Q1 operating revenue was JPY 60.6 billion, and business income was a loss of JPY 0.5 billion. This is a year-on-year decline in revenues of JPY 0.9 billion but a JPY 0.7 billion improvement in profits. By nature, operating revenues and profits for the new construction under consignment business, which accounts for the majority of the other segment, tend to skew towards the fiscal year-end. As a result, business income as of Q1 was in the red, but we expect profits to rise into the H2. Next, for reference, we show figures for the overseas business. Please turn to page 69. Overall combined overseas profits for Q1 were JPY 12.8 billion, down JPY 0.3 billion year-on-year. Please note there is a three-month lag in reflecting overseas profits.
The figures included in Q1 reflect the results for the overseas business for the period of January to March 2024. Within this, the leasing segment reported an increase in revenues and profits from progress on properties and forex impact, which was offset by an increase in property taxes, resulting in a year-on-year JPY 7.3 billion increase in revenues but a decline of JPY 0.8 billion in profit. In the property sales segment, progress in sales of overseas residences, such as 200 Amsterdam and Cortland, drove a JPY 1.3 billion year-on-year increase in revenues and a JPY 0.3 billion increase in profits. The combination of management and other segments reported a JPY 1.4 billion increase in revenues and a JPY 0.1 billion improvement in profits on the back of improved occupancy rates and ADRs for the Halekulani Hotel in Hawaii.
As a result of the above, Q1 overseas business income margin was 12.3%. Next, I will talk about the balance sheet. Please turn to page 70. At the bottom of the page on the left, total assets as of the end of Q1 were JPY 9,737.4 billion, up JPY 247.9 billion from the end of the previous fiscal year. Of the 247.9 billion increase in outstanding assets, roughly JPY 161.6 billion, or slightly less than 70%, is the result of the impact of foreign exchange rate changes.
I will now discuss the major components of change, such as investment and cost recovery. Please turn to page 71. As shown in the table on the upper left, the total outstanding balance of real property for sale was JPY 2,424.8 billion, up JPY 49.5 billion from the end of the previous fiscal year.
New investments were JPY 144.1 billion, cost recovery was JPY 130.9 billion, and other, which includes elements such as forex impact, was JPY 36.3 billion. As you can see in the breakdown by company, Mitsui Fudosan reported a net increase in investments of JPY 3.2 billion, and Mitsui Fudosan Residential a net increase in cost recovery of JPY 7.6 billion. For the overseas subsidiaries, primarily as a result of foreign exchange impact due to the weak yen, Mitsui Fudosan America reported a net increase of JPY 28.7 billion, and Mitsui Fudosan UK a net increase of JPY 11.8 billion.
Next, looking at the lower left, the outstanding balance of tangible and intangible assets was JPY 4,525.9 billion, up JPY 120.3 billion from the end of the previous fiscal year. The key contributing factors for both investments and cost recovery are shown in the comment section on the lower right.
New investments, including construction investments for Park Well State, a senior residence, and Tokyo Bay Arena, were JPY 92.9 billion, but depreciation was JPY 33.7 billion. Factoring in other, for which the vast majority of JPY 61.8 billion was forex impact, there was a net increase of JPY 120.3 billion versus the end of the previous fiscal year. On the liability side, please see the table on the upper right. The outstanding balance of interest-bearing debt as of Q1 was JPY 4,698 billion, up JPY 267.6 billion compared to the end of the previous fiscal year.
Of this increase, more than 30%, or JPY 91.9 billion, was the impact of changes in foreign exchange rates. Going back to page 70, as a result of the above, the DE ratio as of the end of Q1 was 1.49 times, and the equity ratio was 32.4%.
The group as a whole will continue to monitor domestic and overseas financial and real estate market trends while firmly focusing on achieving the business income and net profit targets for this fiscal year and the achievement of the KPIs set out in & INNOVATION 2030. This completes my presentation.