ORIX Jreit Inc. · TSE:8954
ORIX Jreit — 11th Fiscal Period Earnings Presentation
35 slides from ORIX Jreit's earnings presentation, Oct 22, 2007
Slide 1: ORIX JREIT Inc. 11th Fiscal Period Results
ORIX JREIT Inc. 11th Fiscal Period Results (ended August 31, 2007) October 22, 2007 ORIX Asset Management ORIX Corporation JREIT Inc. 0
Slide 2: Summary of Results for 11th Fiscal Period
Summary of Results for 11th Fiscal Period (Ended August 31, 2007) ORIX JREIT Inc. 1
Slide 3: 11th Fiscal Period: Forecast vs. Actual
11th Fiscal Period: Forecast vs. Actual 11th Fiscal Period Income-boosting factors Item (Ended Aug. 31, 2007) Change Revenue from properties acquired in 11th fiscal period Forecast Actual (KN Jiyugaoka Plaza, Lunar Sendai) (+108 million yen) Increase in rental revenue from existing properties Operat
Slide 4: Comparison of 10th and 11th Fiscal Periods
Comparison of 10th and 11th Fiscal Periods 10th Fiscal 11th Fiscal Income-boosting factors Period Period Full revenue from one property acquired in Item (Ended Feb. (Ended Aug. Change 10th fiscal period (+137 million yen) 28, 2007) 31, 2007) Revenue from four properties acquired in 11th fiscal perio
Slide 5: Forecast of Results for 12th and 13th Fiscal Periods
Forecast of Results for 12th and 13th Fiscal Periods Forecast for Forecast for 11th Fiscal Period Change Change Item 12th Fiscal Period 13th Fiscal Period (Ended Aug. 31, 2007) (11th to 12th) (12th to 13th) (Ending Feb. 29, 2008) (Ending Aug. 31, 2008) Operating revenues (million yen) 9,161 9,554 39
Slide 6: Business Results and Growth Strategy
Business Results and Growth Strategy ORIX JREIT Inc. 5
Slide 7: Growth Strategy
Growth Strategy External Growth Strategy Acquire blue chip properties by capitalizing on synergy with ORIX Group Sustained investment emphasis on Greater Tokyo area and office properties Improve portfolio quality through acquisition of blue chip properties Achieve steady growth in assets and secure
Slide 8: External Growth Record (Based on Total Acquisition Price)
External Growth Record (Based on Total Acquisition Price) End of phase for active turnover of properties to improve portfolio quality Moving forward, ORIX JREIT will focus its energies on increasing asset size through acquisition of blue chip properties Total acquisition price of properties acquired
Slide 9: Properties Acquired in 11th Period (1 of 3)
Properties Acquired in 11th Period (Slide 1 of 3) KN Jiyugaoka Plaza Excellent location Three minute walk from Jiyugaoka Station on Tokyu Toyoko Line and Oimachi Line Located in affluent commercial area and anticipated to generate stable tenant demand Valuable property featuring spacious floor plans
Slide 10: Properties Acquired in 11th Period (2 of 3)
Properties Acquired in 11th Period (Slide 2 of 3) Lunar Sendai Situated in the heart of the Sendai business district Situated in the Honcho area in the heart of the Sendai business district, which also features prefectural government offices, city government offices and office buildings Popular area
Slide 11: Properties Acquired in 11th Period (3 of 3)
Properties Acquired in 11th Period (Slide 3 of 3) Nihonbashi Honcho 1-chome Bldg. Round-Cross Shinjuku 5-chome Location 9-13 Nihonbashi Building March 2006 Location 17-5 Shinjuku-5chome, Building October 2006 (address) Honcho-1chome, completion (address) Shinjuku-ku, completion Chuo-ku, Tokyo No. of
Slide 12: Strengths of ORIX Group
Strengths of ORIX Group Results from Real Estate Business of ORIX Group Major Projects of ORIX Real Estate (ORE) Income Before Taxes ORIX Group Total Income Minato Mirai 21 Project from Real Estate Before Taxes (Fiscal Year (Billion yen) Ended March 31, 2007) 60.0 51.2 51.2 billion yen 45.0 15% 30.0
Slide 13: Improving Portfolio Quality Through Acquisition of Blue Chip Properties
Improving Portfolio Quality Through Acquisition of Blue Chip Properties Comparison of Total Acquisition Price (Billion yen) Ratio of Property Acquisi- Ratio of Properties Ratio of Office 250.0 Acquired Through Properties Acquired in tions Featuring New 166.9 Synergy with ORIX Greater Tokyo Area Cons
Slide 14: Investment Emphasis on Office Properties and Greater Tokyo Area
Investment Emphasis on Office Properties and Greater Tokyo Area Building a portfolio that is strongly positioned to capitalize on recent healthy market conditions, through an investment emphasis on office properties and the Greater Tokyo area Office Retail Residential Hotel Logistics facility Greate
Slide 15: Reference: Investment in Non-Office Properties
Reference: Investment in Non-Office Properties Leasing NOI* yield for non-office properties: 6.2% (compared with 5.7% for overall portfolio) Portfolio Distribution (by Acquisition Price) Non-office properties Hotel (As of October 19, 2007) 11.9% Ratio of overall portfolio 6.4 by acquisition price Ac
Slide 16: Occupancy Rate Situation
Occupancy Rate Situation Occupancy Rates Low Occupancy Properties (Under 90%) at End of 11th Fiscal Period Property Name Occupancy Rate, Leasing Status 100% 88.2% occupancy 96% Round-Cross Aoyama Currently engaged in leasing activity 92% 86.8% occupancy Round-Cross Shinjuku Lease already signed with
Slide 17: Rent Situation
Rent Situation Rent Adjustments (by Area) Rent Increases in 11th Fiscal Period Area Covered by Lease Renewals Rent adjustment 121 leases renewed in 11th fiscal period, covering 79,976 m2 During Fiscal Period (monthly base) (116 leases renewed in 10th fiscal period, covering 95,787m2) m2 Rent increas
Slide 18: Reference: Target for Rent Increases for the Next 12 Months
Reference: Target for Rent Increases for the Next 12 Months • The graph shows the target for rent increases, based on renewal periods written into leases as of October 19, 2007. Since lease renewals do not always coincide with the renewal period specified in leases, the graph represents only a proje
Slide 19: 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 32 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 20: Appraisal Value
Appraisal Value Fiscal period 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th (End of (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 Aug 2002) 2003) 2003) 2004) 2004) 2005) 2005) 2006) 2006) 2007) 2007) Number of properties 39 40
Slide 21: Issuance of Additional Investment Units
Issuance of Additional Investment Units Public offering in Japan and sales of issued and outstanding Proceeds of offering used for repayment of debts Offering method units in Japan to provide for over-allotment Significantly improves financial position and secures mobility for external growth No. of
Slide 22: Financial Situation
Financial Situation 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 Debts, Loan-to-Value Ratio Ratio of Long-Term Fixed Interest Rate Loans* and Unsecured Loans Ratio of long-term fixed interest rat
Slide 23: Appendix
Appendix ORIX JREIT Inc. 22
Slide 24: Operating Situation
Operating Situation 9th Fiscal Period 10th Fiscal Period 11th Fiscal Period 12th Fiscal Period *1 Total leasable area (m2) (1) 243,848 246,153 265,574 265,574 YoY(%) 116.7 100.9 107.9 100.0 Area covered by lease cancellation (m2) (2) 9,643 3,599 10,926 4,983 Lease cancellation rate (%) (2)/(1) 3.9 1
Slide 25: Financial Highlights
Financial Highlights 7th period 8th period 9th period 10th period 11th period Operating revenue (million yen) 7,373 8,130 8,894 8,477 9,161 Operating income (million yen) 3,431 4,016 4,271 3,865 4,127 Net income (million yen) 2,882 3,442 3,664 3,346 3,284 Unitholders’ capital (million yen) 85,821 12
Slide 26: Portfolio Summary
Portfolio summary The assets under management are as follows as of Oct 19, 2007. 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 Aoyama Suncrest Bldg. Mina
Slide 27: Portfolio Map
Portfolio Map ORIX JREIT Inc. 26
Slide 28: Diversification of Portfolio (1 of 2)
Diversification of Portfolio (Slide 1 of 2) Average acquisition price of properties Property size * (Billion yen) Under 3,000m2 7.59 Under 3,000m2 Over 15,000m2 8.8% Over 15,000m2 13.6% 40.3% 33.2% Average Average 15,734 23,638 m2 m2 1.82 13,000m2 to 13,000m2 to 15,000m2 15,000m2 46.0% 58.0% Sold af
Slide 29: Diversification of Portfolio (2 of 2)
Diversification of Portfolio (Slide 2 of 2) Area Type Other cities Hotel Residential Hotel Logistics Other cities 15.1 1.7 6.4 1.7 2.1 Greater Tokyo 17.9 Residential Retail Tokyo 4.1 2.1 17.3 central Tokyo central 3 wards Greater Tokyo 3 wards 10.8 34.3 Retail Other Tokyo 45.8 1.5 Other Tokyo 23 war
Slide 30: Major Tenants
Major Tenants Major 10 tenants at the end of the 11th period (Reference: Major 10 tenants at the end of the 10th period) Ratio of all Ratio of all Leased area leased Leased area leased Tenant name Sector Property name 2 (m ) Tenant name areas % (m2) areas (%) 1 Fujita Kanko Co.,Ltd Hotel Cross Gate
Slide 31: 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 Ichi-bancho Bldg. 11 1.60 Beside Shirogane 13 1.06 Round-Cross Aoyama 11 1.05 Round-Cross Akasaka Mitsuke 12 0.41 Niho
Slide 32: Cash Management
Cash Management Depreciation/CAPEX/Cash balance CAPEX/Repairs and maintenance costs Depreciation (Lh) CAPEX CAPEX (Lh) (Billion yen) Repairs and maintenance costs (Billion yen) Cash and cash equivalent (Rh)* (Billion yen) 1.0 2.0 21.0 0.8 1.5 14.0 0.6 1.0 0.4 7.0 0.5 0.2 0 0 7th 8th 9th 10th 11th 0
Slide 33: Investors and Investment Units (1 of 2)
Investors and Investment Units (Slide 1 of 2) Unit price and volume trends Major unit holders (As of August 31, 2007) No. of No. of units Trading volume (Lh) Unit price (Rh) Name units held/units outstanding (Units) (Thousand yen) The Master Trust Bank of Japan, Ltd. (Trust accounts) 19,403 8.60 10,
Slide 34: Investors and Investment Units (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 10th period Total (16,161) 11th period Total (14,228) Breakdown by number of units 10th period Total (225,372) 11th period Tota
Slide 35: Asset Management Company and Disclaimer
The contents of this document, including summary notes, quotes, data and other information, are provided solely for informational purpose and are not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell, any specific products. Please be aware that matters
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