Orix Jreit Inc. · TSE:8954
Orix Jreit — 14th Fiscal Period Earnings Presentation
37 slides from Orix Jreit's earnings presentation, Apr 16, 2009
Slide 1: ORIX JREIT Inc. 14th Fiscal Period Results
ORIX JREIT Inc. 14th Fiscal Period Results (ended February 28, 2009) April 16, 2009 ORIX Asset Management Corporation
Slide 2: Summary of Results for the 14th Fiscal Period
Summary of Results for the 14th Fiscal Period (Ended February 28, 2009)
Slide 3: 14th Fiscal Period: Forecast vs. Actual
14th Fiscal Period: Forecast vs. Actual Item 14th Fiscal Period (Feb. 28, 2009) Income-boosting factors Change (¥ million) Forecast Actual Increase in rental revenue from existing properties (+22 million yen) Operating Decrease in repairs and maintenance costs revenues 10,525 10,522 -3 (+36 million
Slide 4: Comparison of the 13th and 14th Fiscal Periods
Comparison of the 13th and 14th Fiscal Periods Item 13th Fiscal Period 14th Fiscal Period Income-boosting factors (¥ million) Change Aug. 31, 2008 Feb. 28, 2009 Full contribution of income from the four properties acquired during the 13th fiscal period (+242 million yen) Operating 10,052 10,522 469
Slide 5: Forecast of Results for the 15th and 16th Fiscal Periods
Forecast of Results for the 15th and 16th Fiscal Periods Item Forecast for the Forecast for the 14th Fiscal Period 15th Period Change 16th Period Change (¥ million) (Feb. 28, 2009) (Aug. 31, 2009) (14th to 15th) (Feb. 28, 2010) (15th to 16th) Note 1: ORIX JREIT is considering property Operating sale
Slide 6: Business Results and Growth Strategy
Business Results and Growth Strategy
Slide 7: Operating Environment and OJR Initiatives
Operating Environment and OJR Initiatives External Growth Internal Growth Finance Strategy Buying and Selling Market Leasing Market Finance Markets Deterioration in the environment Drop in corporate sector earnings. Tight credit conditions attributable for procuring funds. Drop in leasing Increased
Slide 8: External Growth Record
External Growth Record Continued focus on property turnover. Acquired four properties (total acquisition price: 38.8 billion yen) and sold two properties (total acquisition price: 23.6 billion yen) since the 14th fiscal period. Realized improvements in the overall quality of the investment portfolio
Slide 9: Portfolio Focus: Greater Tokyo and Offices
Portfolio Focus: Greater Tokyo and Offices Offices Logistics facilities Greater Tokyo: Retail facilities 45 properties, ¥246.4 billion Hotels Others Greater Tokyo Area (Tokyo, Kanagawa, Saitama, Chiba) Other Areas Sendai: 1 property, ¥8.5 billion Nagoya: 2 properties, ¥17.0billion Osaka: 1 property,
Slide 10: Properties Newly Acquired during the 14th Fiscal Period
Properties Newly Acquired during the 14th Fiscal Period ORIX Nagoya Nishiki Building Ichikawa Logistics Center Location Naka-ku, Nagoya- Ichikawa City, City, Aichi Location Chiba Acquisition date Sep. 29, 2008 Acquisition date Sep. 29, 2008 Acquisition ¥12,500 million Acquisition price ¥8,300 millio
Slide 11: Properties Newly Acquired during the 15th Fiscal Period (1 of 2)
Properties Newly Acquired during the 15th Fiscal Period (Slide 1 of 2) ORIX Real Estate Nishi Shinjuku Building Ideally situated near Shinjuku Station Located in the Nishi Shinjuku area, a leading commercial business district in Tokyo Located about two minutes’ walk from the municipal Toei Subway Sh
Slide 12: Properties Newly Acquired during the 15th Fiscal Period (2 of 2)
Properties Newly Acquired during the 15th Fiscal Period (Slide 2 of 2) Omiya Miyacho Building Located in Omiya, an area that enjoys high demand for office space Located in the high-demand Omiya area. As one of Tokyo’s major satellite cities, serves as the gateway to the northern Kanto, Joshinetsu an
Slide 13: Property Turnover: Sale of the ORE Nagoya Fushimi Building
Property Turnover: Sale of the ORE Nagoya Fushimi Building Sale Summary Properties Acquired ORIX Real Estate Sale price (1) ¥10,680 million ORE Nagoya Fushimi Building Omiya Miyacho Building Nishi Shinjuku Building Book value (2) Note 1 ¥9,469 million Difference (1)–(2) ¥1,210 million Delivery date
Slide 14: Improve Portfolio Quality through Property Turnover
Improve Portfolio Quality through Property Turnover Since IPO, OJR has acquired 30 relatively new properties, and sold 20 properties which were built many years ago or were smaller in size. Trends in Average Property Age the 1st fiscal pe ri od 18.7 yr end of hel d con tinu ously from the erties Ass
Slide 15: Rent Situation
Rent Situation Rent Adjustments (by Area) Rent Increases during the 14th Fiscal Period Rent increase (existing leases) Existing Leases New Leases Total Area covered by Rent increase (new leases) Rent adjustment (monthly lease renewals base) No. of leases 15 10 25 during each fiscal No change * Figur
Slide 16: Floor Space with Cancelled Lease and Occupancy Rates
Floor Space with Cancelled Lease and Occupancy Rates Occupancy Rates Overall OJR portfolio OJR office buildings 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th Leasing situation (As of April 7, 2009) Cancelled lease space Ongoing Lease efforts to confirmed Note 1: Figures for “canceled lease sp
Slide 17: Trends in Occupancy Rates
Trends in Occupancy Rates 16 Low Occupancy Properties (below 90%) Occupancy Rates at the End of the 14th Fiscal Period 101% Occupancy 100% Property Name Rate 99% Round-Cross Akasaka 80.7% 98% 97% Round-Cross Shinjuku 5-chome 81.1% 96% 95% Round-Cross Nishi Shinjuku 83.0% Sep. 08 Oct. 08 Nov. 08 Dec.
Slide 18: Trends in Leasing NOI and Leasing NOI Yield
Trends in Leasing NOI and Leasing NOI Yield Leasing NOI yield, all properties Leasing NOI yield of 31 properties continuously NOI yield of newly acquired properties in the held from the end of the 6th fiscal period through initial fiscal period of acquisition (based on the to the end of the 14th fis
Slide 19: Appraisal Value
Appraisal Value 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th (End of (End of (End of (End of (End of (End of (End of (End of (End of (End of Aug 2004) Feb 2005) Aug 2005) Feb 2006) Aug 2006) Feb 2007) Aug 2007) Feb 2008) Aug 2008) Feb 2009) Number of properties 49 46 47 39 41 40 44 43 47 48 Appraisa
Slide 20: Financial Position (Slide 1 of 2)
Financial Position (Slide 1 of 2) Outstanding Interest-Bearing Debt, Loan-to-Value Ratio Ratio of Long-Term Fixed Interest Rate Loans and Unsecured Loans Ratio of long-term fixed Outstanding interest-bearing debt Loan-to-value ratio interest rate loans (excluding Ratio of unsecured loans scheduled r
Slide 21: Financial Position (Slide 2 of 2)
Financial Position (Slide 2 of 2) Credit Ratings S&P Long-term credit rating: A- Short-term credit rating: A-2 Outlook: Positive R&I Issuer rating: A+ Rating outlook: Positive Commitment Line Commitment line set at 27.0 billion yen in total from four financial institutions List of Lenders (as of Apr
Slide 22: Investors and Investment Units
Investors and Investment Units Unitholder 13th 14th Change category Units Share(%) Units Share(%) Units Share(%) Individuals,others 35,337 14.04 39,662 15.76 4,325 12.24 Individual, others Finance Securities Finance 141,676 56.31 132,334 52.59 -9,342 -6.59 Other corp. Overseas Major Banks 3,738 1.49
Slide 23: Appendix
Appendix
Slide 24: Financial Highlights
Financial Highlights 10th period 11th period 12th period 13th period 14th period (¥ million) Feb. 2007 Aug. 2007 Feb. 2008 Aug. 2008 Feb. 2009 Operating revenues 8,477 9,161 9,974 10,052 10,522 Operating income 3,865 4,127 4,925 4,713 5,039 Net income 3,346 3,284 4,084 3,818 4,016 Unitholders' capit
Slide 25: Appraisal Value: Comparison with the 13th Fiscal Period (1)
Appraisal Value: Comparison with the 13th Fiscal Period (1) Appraisal value of properties at the end of the 14th fiscal period (1) Area symbol: 3 Central Tokyo Wards Remaining Tokyo Wards Other Parts of the Greater Tokyo Area Other Areas End of the 14th Fiscal Period Change from the 13th Period Type
Slide 26: Appraisal Value: Comparison with the 13th Fiscal Period (2)
Appraisal Value: Comparison with the 13th Fiscal Period (2) Appraisal value of properties at the end of the 14th fiscal period (2) End of the 14th Fiscal Period Change from the 13th Period Type Area Property Book value Appraisal CR Gain/loss Change % Change CR Change Chg gain/loss \ \ \ \ \ Koshigay
Slide 27: Capitalize on Synergies with the ORIX Group
Capitalize on Synergies with the ORIX Group Utilizing the strong pipeline of the ORIX Group, continue to focus energies on achieving external growth by acquiring blue chip properties Asset Balance of the ORIX Group’s Real Estate Business Major projects of ORIX Real Estate Corporation As of December
Slide 28: Key Points for Investment in Logistics Facilities
Key Points for Investment in Logistics Facilities Objectives Location, Size Design, Tenants To stabilize portfolio cash flow, to Versatile design Close to transportation maintain and increase yield infrastructure (Building features includes temperature- Close to place of controlled warehouse, column
Slide 29: Investment in Non-Office Properties
Investment in Non-Office Properties - Leasing NOI yield for non-office properties: 5.9% (compared with 5.7% for the overall portfolio) Portfolio Distribution at the End of the 14th Fiscal Period (By acquisition price as of Non-office properties 17.1% Logistics Facilities Feb. 28, 2009) Ratio to the
Slide 30: Portfolio Summary
Portfolio Summary List of all real estate held by ORIX JREIT as of April 15, 2009 Acquisition Acquisition GFA Price Ratio GFA Price Ratio Ty pe Area Name of building Address ( ) Year Built (JPY mn) (%) Ty pe Area Nam e of building Address ( ) Year Built (JPY m n) (%) Aoyama Suncrest Bldg. Minato-ku,
Slide 31: Portfolio Map
Portfolio Map PORTFOLIO MAP Crave Mtyacto Chain Tip te acoured mw 15th perieg) Pass em tos hare Chuo ward Cnpnte Une Pee 1 Nea Ns Pea Nara Susaees te tore isoeis tomas TH DMOI oemeiotre partes = . oye te er Minato ward Newae Dieceany
Slide 32: Portfolio Data (Slide 1 of 2)
Portfolio Data (Slide 1 of 2) Average Acquisition Price of Properties Property Size (Floor Area) Under Under 3,000 m2 3,000 m2 Over 15,000 m2 Over 15,000 m2 7.9 13.6% 40.3% 26.1% Billion yen Average Average Average Average 15,734 15,734 22,289 3,000 m2 to m2 3,000 m to 22,289 2 15,000 m2 m2 15,000 m
Slide 33: Portfolio Data (Slide 2 of 2)
Portfolio Data (Slide 2 of 2) Area Type Other Area 2.1% Other Area Others Retail Hotels Others Hotels 4.1% facilities 5.4% 1.5% Other Parts of the 11.2% 15.1% 1.8% Greater Tokyo Area 3 Central 17.3% Other Parts of the Retail facilities Logistics 3 Central Greater Tokyo Area Tokyo 1.5% facilities Tok
Slide 34: Major Tenants
Major Tenants (Reference: Top 10 Tenants as of the End of Top 10 Tenants as of the End of the 14th Fiscal Period the 13th Fiscal Period) Rented Space Share of Total Rentable Area Rented Space Share of Total Name of Tenant Sector Property (m2) Name of Tenant (m2) Rentable Area (%) (%) Transpor- Ichik
Slide 35: Cash Management
Cash Management 10th Period 11th Period 12th Period 13th Period 14th Period ¥ million) (Feb. 28, 2007) (Aug. 31, 2007) (Feb. 29, 2008) (Aug. 31, 2008) (Feb. 28, 2009) Depreciation 1,420 1,583 1,639 1,773 1,874 Repairs and maintenance costs 167 137 130 143 112 CAPEX 124 194 43 159 69 Cash and cash eq
Slide 36: 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 37: Asset Management Company: ORIX Asset Management Corporation
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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