As rising real estate prices expand unrealized gains at listed companies, 27 firms with unrealized gains on rental properties exceeding 200 billion yen have been identified, and five companies trading below 0.7 times adjusted price-to-book ratio that are expected to post record profits this fiscal year were highlighted as investment candidates. The average selling price of newly built condominiums in Tokyo's 23 wards surged to 136.13 million yen in 2025, and official land prices in the three major metropolitan areas as of January 1, 2026, rose 4.6 percent year on year for all uses on average. Mitsubishi Estate held unrealized gains of 5.5574 trillion yen as of the end of March 2026, and its adjusted price-to-book ratio, calculated by adding 70 percent of after-tax unrealized gains assuming a 30 percent tax rate to shareholders' equity, stood at 0.67 times as of August 12. Although real estate stocks face resistance due to lessons learned from past property boom collapses, the number of stocks trading far below one times adjusted price-to-book ratio after accounting for unrealized gains is increasing, and selective investment is judged to be effective.
Mitsubishi Estate Company, LimitedHighlighted as undervalued with record profits expected, adjusted PBR 0.67, unrealized gains 5.5574 trillion yen.
