Financial Results Presentation for the 16th Fiscal Period Ended November 2019

	Financial Results Presentation for the 16th Fiscal Period Ended November 2019
	Index
	1. Management Highlights Management Highlights of 16th Period Ended November 2019 ~Outcome of Growth 　Strategy~
	2. Growth Strategy Specific Plans to Approach toward Growth ~From 16th Period ended 　Nov.2019 onwards~
	3. Progress for Early Achievement of Stabilized DPU of ¥10,000 ~Accelerate target 　achievement timing by 　1 year~
	4. Internal Growth in Office Status of Rent Revision and Tenant Replacement in Tokyo Office Properties
	5. Internal Growth in Retail Properties Competitivity of Retail Properties in Prime Location ~Contermeasures after 　leaving of American 　 Eagle Outfitters~ API’s Portfolio advancing Integration of Retail and Office Management Status of Retail Properties
	6. External Growth Strategy not prioritizing Expansion of Asset Size ~Ongoing Asset 　Replacement Strategy~
	7. Financial Strategy LTV Management responding to External Growth Strategy and Continual Reduction of Debt Cost
	８.Results/Forecasts Financial Results: Statement of Income ~16th Period ended 　November 2019~
	９. Initiatives for ESG Governance
	10. Distribution of Unitholders
	Disclaimer

This page explains management status of retail facilities.

First, the trends in sales in Tokyu Plaza Omotesando Harajuku and DECKS Tokyo Beach are explained.

Due to the impact from typhoons, sales decreased in September and October and on Y-on-Y sales resulted in 99.9% for Tokyu Plaza Omotesando Harajuku, and 101.9% for DECKS Tokyo Beach, respectively.
But in November, sales have recovered at both facilities and exceeded over 100% compared to previous year.

Next, please see the bottom left 2, showing rent revision and tenant replacement.
Figures include both cases for rent increase/decrease but overall impact from rent revision/tenant replacement slightly exceeded the previous rent and gradual internal growth has been observed in retail facilities as well.

Particularly in A-FLAG DAIKANAYAMA WEST, first ever since its acquisition in January 2017, we have succeeded to realize rent increase.

On the right, management status of hotels is explained.

We own three properties with hotel zones in Akasaka, Sapporo and Kobe. All of these have adopted sales-linked rent in addition to fixed rent.

Bar charts below show trends in sales-linked rent and for the period ended November 2019, sales-linked rent of ¥257.8 million was recorded from two properties, Akasaka and Sapporo.

Compared to the achievement of the period ended November 2018, sales-linked rent decreased due to the impact from earthquake in Hokkaido in September 2018.
However, for the period ending November 2020, sales-linked rent is forecasted to be of ¥327.5 million, the largest ever and this is already reflected in the forecasts and steady operation is ongoing.