ORIX Jreit Inc. · TSE:8954
ORIX Jreit — 12th Fiscal Period Earnings Presentation
38 slides from ORIX Jreit's earnings presentation, Apr 16, 2008
Slide 1: ORIX JREIT Inc. 12th Fiscal Period Results
ORIX JREIT Inc. 12th Fiscal Period Results (ended February 29, 2008) April 16, 2008 ORIX Asset Management ORIX Corporation JREIT Inc. 0
Slide 2: Summary of Results for 12th Fiscal Period
Summary of Results for 12th Fiscal Period (Ended February 29, 2008) ORIX JREIT Inc. 1
Slide 3: 12th Fiscal Period: Forecast vs. Actual
12th Fiscal Period: Forecast vs. Actual 12th Fiscal Period Income-boosting factors Item (Ended Feb. 29, 2008) Change Gains from property disposed in 12th fiscal period (Round- Forecast Actual Cross Aoyama) (+439 million yen) Difference from forecast for management expenses Operating revenues (+29 mi
Slide 4: Comparison of 11th and 12th Fiscal Periods
Comparison of 11th and 12th Fiscal Periods 11th Fiscal 12th Fiscal Income-boosting factors Period Period Item (Ended Aug. (Ended Feb. Change Full contribution of income from four properties acquired in 11th fiscal period (+204 million yen) 31, 2007) 29, 2007) Gains from one property disposed in 12th
Slide 5: Forecast of Results for 13th and 14th Fiscal Periods
Forecast of Results for 13th and 14th Fiscal Periods Forecast for Forecast for 12th Fiscal Period Change Change Item (Ended Feb. 29, 2008) 13th Fiscal Period (12th to 13th) 14th Fiscal Period (13th to 14th) (Ending Aug. 31, 2008) (Ending Feb. 28, 2009) Operating revenues (million yen) 9,974 9,877 -9
Slide 6: Business Results and Growth Strategy
Business Results and Growth Strategy ORIX JREIT Inc. 5
Slide 7: Highlights
Highlights Clarify the direction as a diversified REIT focusing on Greater Tokyo area and office properties Capitalize on synergy with ORIX Group to achieve steady external growth Achieve sustained internal growth by capitalizing on the competitive advantages of a portfolio that focuses on office pr
Slide 8: Clarify the Direction as a Diversified REIT Focusing on Greater Tokyo Area and Office Properties
Clarify the Direction as a Diversified REIT Focusing on Greater Tokyo Area and Office Properties Clarify the investment policy by changing operational management rules Specify that new investments are to comprise real estate properties whose main use is other than residential Seek a progressive diss
Slide 9: External Growth Record
External Growth Record Steadily acquire properties based on a stable financial foundation and funds procured through issuance of additional investment units Increase the asset size to 2.5 times the asset size at IPO Public Offering Total acquisition price (Oct. 2007) Three properties to be newly acq
Slide 10: Newly Acquired Properties (Slide 1 of 3)
Newly Acquired Properties (Slide 1 of 3) ST WORLD Building Situated in popular Shibuya area as office district Nine minute walk from Shibuya and Omotesando Stations Area is anticipated to continue generating strong office demand due to factors such as launch of Tokyo Metro Fukutoshin Line in June 20
Slide 11: Newly Acquired Properties (Slide 2 of 3)
Newly Acquired Properties (Slide 2 of 3) ORIX Suidobashi Building Ideally situated near rail and metro stations One minute walk from Suidobashi Station on JR Sobu Line, and three minute walk from Suidobashi Station on Toei Mita Line Area offers excellent transit access and is highly accessible from
Slide 12: Newly Acquired Properties (Slide 3 of 3)
Newly Acquired Properties (Slide 3 of 3) Ideally situated for transport access and access Toda Park Logistics Center to labor pool Excellent location in Toda area Approximately 500 meters from Toda Minami Exit of Metropolitan Expressway, and approximately 2.8 km from Bijogi Junction Also close to re
Slide 13: Key Points for Investment in Logistics Facilities
Key Points for Investment in Logistics Facilities Areas Location, Size Design, Tenant Greater Tokyo area, Versatile design Good Close to transportation Greater Chubu area, infrastructure (Check for building features such as Greater Kinki area Close to place of consumption temperature-controlled ware
Slide 14: Capitalize on Synergy with ORIX Group
Capitalize on Synergy with ORIX Group Sustained acquisition of blue chip properties through strong pipeline of ORIX Group Continue to focus energies on achieving external growth by capitalizing on synergy with ORIX Group Overview of ORIX Group’s Real Estate Business Major Projects of ORIX Real Estat
Slide 15: Building a Highly Competitive Portfolio Focusing on Office Properties in Greater Tokyo Area
Building a Highly Competitive Portfolio Focusing on Office Properties in Greater Tokyo Area Achieved higher ratio of newer office properties in Greater Tokyo area (under 5 years of age), through acquisition of blue chip properties by capitalizing on synergy with ORIX Group and turnover of properties
Slide 16: Rent Situation
Rent Situation Secured monthly rent increase of 21,276 thousand yen through implementation of rent increases for existing leases. Rent Adjustments (by Area) Rent Increases in 12th Fiscal Period Area Covered by Lease Renewals Rent adjustment During Fiscal Period (monthly base) Rent increase (existing
Slide 17: Reference: Future Internal Growth of ORIX JREIT
Reference: Future Internal Growth of ORIX JREIT Target for rent Analysis of Room for Internal Growth increases for next 12 months Comparison with By Area By Use By Lease Type Market Leasing Rates Thousand 320 Total rentable area Total rentable area 302,165 302,165 Target rent increase Area of lease
Slide 18: Leasing NOI and Leasing NOI Yield
Leasing NOI* and Leasing NOI Yield (Based on Acquisition Price) Leasing NOI yield, all properties Leasing NOI yield of 31 properties continuously NOI yield of newly acquired properties held from end of 6th fiscal period through to end in initial fiscal period of acquisition Leasing NOI, all properti
Slide 19: Leasing NOI Yield for Properties Acquired Since 7th Fiscal Period
Leasing NOI Yield for Properties Acquired Since 7th Fiscal Period Achieved steady internal growth and improved profitability for properties acquired since 7th fiscal period NOI Yield in Initial Fiscal Period of Period of Acquisition Leasing NOI Yield in Acquisition Property Name (Based on Discounted
Slide 20: Reference: Investment in Non-Office Properties
Reference: Investment in Non-Office Properties Leasing NOI yield* for non-office properties: 6.3% (compared with 5.9% for overall portfolio) Portfolio Distribution at end of 12th Fiscal Period (by acquisition price, Hotel Non-office properties as of Feb. 29, 2008) 12.1% Ratio of overall portfolio 6.
Slide 21: Occupancy Rate Situation
Occupancy Rate Situation Occupancy Rates Low Occupancy Properties (Under 90%) at End of 12th Fiscal Period Occupancy Rate, Leasing Property Name 100 Status 88.7% occupancy 96 Round-Cross Akasaka Mitsuke Currently engaged in leasing activity 92 88.7% occupancy Round-Cross Lease already signed with Ts
Slide 22: Appraisal Value
Appraisal Value Fiscal period 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th (End of (End of (End of (End of (End of (End of (End of (End of (End of (End of Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb 2003) 2004) 2004) 2005) 2005) 2006) 2006) 2007) 2007) 2008) Number of properties 41 46 49 46 47 39 41 40 44
Slide 23: Financial Situation (Slide 1 of 2)
Financial Situation (Slide 1 of 2) S&P Long-term credit rating: A- Short-term credit rating: A-2 Outlook: Stable Credit ratings R&I Issuer rating: A+ Rating outlook: Stable Outstanding Interest-bearing Debts, Loan-to-Value Ratio Ratio of Long-Term Fixed Interest Rate Loans and Unsecured Loans Ratio
Slide 24: Financial Situation (Slide 2 of 2)
Financial Situation (Slide 2 of 2) Financial Health Loan-to-value ratio controlled to within 40-50% (currently at 43.4% as of April 15, 2008) Financial Stability Commitment line set at 27.0 billion yen in total from four financial institutions List of Lenders (as of April 15, 2008) Outstanding % of
Slide 25: Appendix
Appendix ORIX JREIT Inc. 24
Slide 26: Operating Situation
Operating Situation 10th Fiscal Period 11th Fiscal Period 12th Fiscal Period 13th Fiscal Period *1 Total leasable area (m2) (1) 246,153 265,574 262,368 302,165 YoY(%) 100.9 107.9 98.8 115.2 Area covered by lease cancellation (m2) (2) 3,599 10,926 10,638 6,463 Lease cancellation rate (%) (2)/(1) 1.5
Slide 27: Financial Highlights
Financial Highlights 8th period 9th period 10th period 11th period 12th period Operating revenue (million yen) 8,130 8,894 8,477 9,161 9,974 Operating income (million yen) 4,016 4,271 3,865 4,127 4,925 Net income (million yen) 3,442 3,664 3,346 3,284 4,084 Unitholders’ capital (million yen) 120,860
Slide 28: Portfolio Summary
Portfolio Summary List of all real estate held by ORIX JREIT as of April 15, 2008 Acquisition Acquisition GFA Price Ratio GFA Price Ratio Type Area Name of building Address ( ) Year Built (JPY mn) (%) Type Area Name of building Address ( ) Year Built (JPY mn) (%) Tokyo area Aoy ama Suncrest Bldg. Mi
Slide 29: Portfolio Map
Portfolio Map ORIX JREIT Inc. 28
Slide 30: Diversification of Portfolio (Slide 1 of 2)
Diversification of Portfolio (Slide 1 of 2) Average acquisition price of properties Property size * (Billion yen) Under 3,000m2 Under 3,000m2 7.32 Over 15,000m2 11.0% Over 15,000m2 13.6% 40.3% 35.5% Average Average 15,734 23,908 m2 m2 1.97 13,000m2 to 13,000m2 to 15,000m2 15,000m2 46.0% 53.5% Sold a
Slide 31: Diversification of Portfolio (Slide 2 of 2)
Diversification of Portfolio (Slide 2 of 2) Area Type Other area Other Hotel Other Retail 6.1 1.6 2.1 Other area Hotel 4.1 2.0 Greater Tokyo 17.1 15.1 17.3 Tokyo Logistics Tokyo central central 5.5 3 wards 3 wards Greater Tokyo 32.1 Retail Other Tokyo 45.8 14.1 23 wards 1.5 Other Tokyo Office Office
Slide 32: Major Tenants
Major Tenants Major 10 tenants at the end of the 12th period (Reference: Major 10 tenants at the end of the 11th period) Ratio of all Ratio of all Leased area leased Leased area leased Tenant name Sector Property name 2 Tenant name ( ) areas % (m ) areas % 1 Fujita Kanko Inc. Hotel Cross Gate 19,744
Slide 33: Seismic risk Portfolio PML
Seismic risk Portfolio PML Seismic risk analysis Name of building PML Replacement cost % of replacement (billion yen) Tokyo central Aoyama Suncrest Bldg. 11 2.40 3 wards Round-Cross Ichiban-cho Bldg. 11 1.60 Beside Shirogane 13 1.06 Round-Cross Akasaka Mitsuke 12 0.41 Nihonbashi East Bldg. 16 0.90 R
Slide 34: Cash Management
Cash Management Depreciation/CAPEX/Cash balance CAPEX/Repairs and maintenance costs Depreciation (Lh) CAPEX (Billion yen) CAPEX (Lh) Repairs and maintenance costs 1.0 Cash and cash equivalent (Rh)* (Billion yen) (Billion yen) 2.0 25.0 0.8 20.0 1.5 0.6 15.0 1.0 0.4 10.0 0.5 0.2 5.0 0 0 0 8th 9th 10th
Slide 35: Investors and Investment Units (Slide 1 of 2)
Investors and Investment Units (Slide 1 of 2) Unit price and volume trends Major unitholders Trading volume (Lh) Unit price (Rh) No. of units Name No. of units held/units (Units) (Thousand yen) outstanding 10,000 1,400 The Master Trust Bank of Japan, Ltd. (Trust accounts) 23,531 9.35 9,000 Japan Tru
Slide 36: Investors and Investment Units (Slide 2 of 2)
Investors and Investment Units (Slide 2 of 2) Retail and others Financial institution (incl. securities brokers) Other corporation Overseas Breakdown by number of investors 11th period Total (14,228) 12th period Total (15,436) Breakdown by number of units 11th period Total (225,372) 12th period Tota
Slide 37: Supplementary information disclaimer
This document provides supplementary information intended to be helpful in understanding ORIX JREIT, Inc. (OJR), and was prepared and released solely with the intent of providing information. This document should not be construed as an offer or solicitation of an offer to buy or sell any specific pr
Slide 38: Asset Management Company and investor notices
When an investor purchases investment units made by OJR, or buys or sells investment securities, the investor may be required to pay fees set by the securities dealer in addition to the actual price of the investment units or investment securities (for instance, brokerage commissions when investment
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