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~

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

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This page shows DPU forecast summary for the periods ending May 2020 and November 2020.
Please refer to the below graph.

For the period ending May 2020, stabilized DPU is forecasted to be ¥9,880, or up ¥12 from ¥9,793, the previous period result on stabilized basis. Although revenue decreases due to a fluctuation of sales-linked rent at hotels, increase in revenue through internal growth, management fee structure change and cost control measures such as reduction of maintenance expenses will absorb such decreases.

For the period ending November 2020, DPU is forecasted to be ¥9,930, up ¥137 from the previous period forecast on a stabilized basis owning to increase in revenue from sales-linked rent at hotels and asset replacement, covering increase in expenses such as property related taxes to be newly expensed from three properties acquired in 2019 and repair & maintenance expenses, etc.

We will continue management with focus on stable and continuous growth in DPU by 2-3% per year to make early achievement in stabilize DPU at ¥10,000.

Please move on to the next page.