NIPPON REIT Investment Corporation (TSE code:3296)
Investor Presentation
for the 20th Period (Ended June 30, 2022) August 16, 2022
NIPPON VISION
Serious, Steady, Solid.
https://www.nippon-reit.com/en/
Contents
1. Summary of Financial Results for the 20th Period (Jun. 2022)
⚫ | Financial Highlights | 3 |
⚫ Summary of Financial Results for the 20th Period (Jun. 2022) | 4 | |
⚫ Summary of Forecast for the 21st Period (Dec. 2022) | 5 | |
and the 22nd Period (Jun. 2023) | ||
⚫ | Track Record of Unitholders' Value | 6 |
2. | Portfolio Summary | |
⚫ | Portfolio Summary (As of the end of the 20th Period) | 8 |
⚫ | Risk Diversification (As of the end of the 20th Period) | 9 |
4. Data Related to Financial Results for the 20th Period (Jun. 2022)
⚫ Financial Results for the 20th Period (Jun. 2022) | 25 |
- Financial Forecast for the 21st Period (Dec. 2022)
and the 22nd Period (June. 2023) | 26 | |
⚫ Financial Forecast for the 21st Period (Dec. 2022) | 27 | |
⚫ | Balance Sheets | 28 |
⚫ | Historical Operating Results | 29 |
⚫ | Property NOI Yield | 30 |
⚫ | Appraisal Value Summary | 34 |
⚫ | Portfolio Appraisal Value | 35 |
⚫ Portfolio Summary (as of the end of the 20th Period) | 39 | |
⚫ | Notes | 43 |
3. Management Status for the 20th Period | Appendix | ||||
⚫ Environment Recognition and Growth Strategies | 11 | ⚫ Nippon REIT's Policy and Asset Management Company | 46 | ||
⚫ Track Record of AUM | 12 | ⚫ Overview of NIPPON REIT | 47 | ||
⚫ Asset Replacement and Pipeline | 13 | ⚫ | Portfolio/Portfolio Diversification/Tenant Diversification | 48 | |
⚫ Occupancy Rate and Rent-free Period Trend | 14 | ⚫ Characteristics of Medium-sized Office | 49 | ||
⚫ Status and Cause of Move-in/out; Rent Change at the Time of | ⚫ Ratio of Tenant (by leased area) (as of the end of the 20th | ||||
Tenant Replacement (Office) | 15 | Period) | 50 | ||
⚫ Track Record of Rent Renewals | ⚫ Residential Tenant Data (as of the end the 20th Period) | 51 | |||
and Rent Increase Upon Contract Renewals (Office) | 16 | ⚫ Track Record of Asset Replacement Based on Tearing | |||
⚫ Track Record of Rent Change Ratio and Rent Gap Trend (Office) | 17 | Projects | 52 | ||
⚫ Status of Tenant Move-in/out, Rent Change and Occupancy | ⚫ Status of Cancellation Notices (Office & Retail) | 53 | |||
Rate by Region (Residential) | 18 | ⚫ | Original Leasing Services | 55 | |
⚫ | Engineering Management | 19 | ⚫ | Sustainability Initiatives | 56 |
⚫ | Financial Management | 21 | ⚫ Overview of Sponsor Support | 60 | |
⚫ | Sustainability Initiatives (Summary) | 23 | ⚫ | Unitholder Status | 61 |
⚫ Historical Unit Price (from IPO to the end of the 20th Period | |||||
(Jun. 30, 2022)) | 62 |
1
1. Summary of Financial Results for the 20th Period (Jun. 2022)
2
Financial Highlights
20th Period DPU: ¥8,825 (+¥239 Change from the Forecast)
Operating Revenue
- 8,534 mm
External Growth
Internal Growth
ESG
Operating Income | Ordinary Income |
¥ 4,599 mm | ¥ 3,971 mm |
AUM | Asset Replacement |
(as of the end of 20th period) | |
(during the 20th period) | |
106 properties ¥254.7bn Transfer 1 property ¥1.4bn
Acquisition 0 property ¥0bn
Occupancy Rate | Monthly Rent Increase |
through Rent Renewal and | |
(as of the end of 20th period) | |
Tenant Replacement | |
98.0% | (Office and Residential) (20th period) |
¥0.82mm/month | |
(office 98.3%) | |
+¥11/fiscal period in DPU | |
- Acquired ZEB Ready Certification at two properties (Nishi-Shinjuku Sanko Building and La Verite AKASAKA)
- Acquired CASBEE for Real Estate certification at FORECAST Sakurabashi
- Switching to Virtually Renewable Energy Derived Electricity at Omiya Center Building
- Released ESG Annal Report 2021 (June 2022 revision)
Net Income
- 3,970 mm
Gain on Sales ¥0.12bn
Pipeline
(as of the end of 20th period)
10 properties ¥9.1bn
Expected NOI Increase through
Engineering Management
(for the 20th period)
¥21.25mm p.a.
+¥23/fiscal period in DPU
Environmental Certification
(as of the end of 20th period)
35.7%
of the total floor area
21st Period | 22nd Period | ||
DPU Forecast | ¥8,259 | DPU Forecast | ¥8,260 |
Operating Revenue | Operating Income | Operating Revenue | Operating Income |
¥8,434mm | ¥4,392mm | ¥8,538mm | ¥4,392mm |
Ordinary Income | Net Income | Ordinary Income | Net Income |
¥3,716mm | ¥3,716mm | ¥3,717mm | ¥3,716mm |
3
Summary of Financial Results for the 20th Period (Jun. 2022)
(¥/mm) | 19th | 20th | 20th | 20th Period | 20th Period |
Period | Period | Period | (Result) | (Result) | |
vs | vs | ||||
(Dec. 2021) | (Jun. 2022) | (Jun. 2022) | |||
19th Period | 20h Period | ||||
Result | Forecast | Result | (Result) | (Forecast) | |
(difference) | (difference) | ||||
a | b | c | c-a | c-b | |
Operating | 10,041 | 8,519 | 8,534 | (1,506) | +15 |
Revenues | |||||
Operating | (3,997) | (4,023) | (3,935) | +62 | +88 |
Expenses | |||||
Operating | 6,043 | 4,495 | 4,599 | (1,444) | +104 |
Income | |||||
Ordinary | 5,390 | 3,863 | 3,971 | (1,419) | +107 |
Income | |||||
Net | 5,335 | 3,863 | 3,970 | (1,365) | +107 |
Income | |||||
DPU | ¥11,665 | ¥8,586 | ¥8,825 | (¥2,840) | +¥239 |
NOI | 6,355 | 6,222 | 6,330 | (25) | +107 |
Days | 184 | 181 | 181 | - | - |
- Comparison against the 19th Period (Dec. 2021) Result (c-a)
《Major fluctuation factor》 | (¥/mm) | |
Decrease in Operating Revenues | (1,506) | |
Decrease in rental revenue | Decrease in revenues resulting from | (18) |
the sale of the Sunworld Building | ||
Decrease in utilities charge | Increase in residential properties | (14) |
revenue | ||
Decrease in gain on sales of real | Absence of gain on the sale of the | (1,477) |
estate properties | Toshin Higashi-Ikebukuro Building and | |
three other properties | ||
Decrease in Operating Expenses | +62 | |
Increase in utility expenses | Rise in electricity charges | (44) |
Decrease in repair expense | +29 | |
Increase in tax | Accrual of fixed asset and city | |
planning taxes on properties acquired | (25) | |
in the 18th and 19th fiscal periods, | ||
etc. | ||
Decrease in other expense | Decrease in other expense | +35 |
Decrease in non-deductible | +34 | |
consumption taxes | ||
Decrease in Non-operating | Decrease in borrowing expenses due | +15 |
Expenses | to fewer business days, etc. | |
- Comparison against the 20th Period (Jun. 2022) Forecast (c-b)
《Major fluctuation factor》 | (¥/mm) | |
Increase in Operating Revenues | +15 | |
Increase in rental revenue | +2 | |
Increase in utilities charge revenue | Increase in invoiced unit price, increase in | +22 |
usage, etc. | ||
Decrease in miscellaneous income | (8) | |
Decrease in Operating Expenses | +88 | |
Decrease in repair expense | +37 | |
Decrease in tax | +13 | |
Decrease in Leasing related | Delay in leasing progress, etc. | +31 |
expense | ||
Increase in AM fee | NOI increase, etc. | (7) |
(¥/mm)
Internal105
Reserves
4
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Nippon REIT Investment Corporation published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 15:53:38 UTC.