Earnings Presentation for the Fiscal Period 46

Fiscal Period 46 Earnings Presentation

• Financial Summary

P.02

• Residential: Rent Revision Trends

P.18

• Features and Strengths of NUD

P.03

• Residential: Rent Analysis

P.19

• Operational Policies Going Forward

P.04

• Status of Renovation Work and Investment in Value Enhancement, Etc.

P.20

• Medium-Term EPU Growth Target

P.05

• Financial Initiatives (Interest Rate and LTV and Repayment Schedule)

P.21

• Internal Growth Initiatives (Office Rent Increase)

P.06

• Status of Interest-Bearing Liabilities and Maintaining High Credit Rating

P.22

• Internal Growth Initiatives (Residential Rent Increase)

P.07

• Changes in Unrealized Gains or Losses

P.23

• External Growth Initiatives

P.08

• Analysis of Period-end Appraisal Values

P.24

• FP 46 Financial Results

P.09

• ESG Initiatives (Environment)

P.25

• FP 47 and FP 48 Performance Forecasts

P.10

• ESG Initiatives (Environment/Social)

P.26

• Factors Behind Change in Distribution per Unit

P.11

• ESG Initiatives (Governance)

P.27

• Office: Tenant Turnover and Occupancy Rates

P.12

• ESG Initiatives (Materiality)

P.28

• Office: Rent Revision Trends

P.13

• Increase Opportunities for External Growth by Strengthening Ties with NTT UD

P.29

• Office: Rent Analysis

P.14

• NTT UD’s Business Trends

P.30

• Office: Contract Renewal Schedule

P.15

• NTT UD’s Extensive Portfolio of Properties (5 Central Wards of Tokyo)

P.31

• Office: Status of Tenants

P.16

• NTT UD’s Extensive Portfolio of Properties (Nationwide)

P.32

• Residential: Tenant Turnover and Occupancy Rates

P.17

Internal Growth

• Office: With rent gap expanding and high occupancy continuing, transitioned to the phase of rent increasing both at tenant turnover and at contract renewal

• Residential: With the implementation of value enhancement measures in private areas in full swing starting from the fiscal period under review, achieved double digit increase in rent at tenant turnover

• Office rent gap ⚫ Rate of increase or decrease in monthly rent ⚫ Average occupancy rate during FP 46

External Growth

• Steadily executing transfer of properties with issues and seeking careful acquisition of a relatively new residential property using funds from transfers

Financial Strategy Capital Policy

• Maintained a high leverage given the current environment, in which active property acquisition is difficult for the time being

  • Average remaining maturity of interest-bearing liabilities: 3.8 years (- 0.3 years from FP 45)/ Average interest rate on interest-bearing liabilities: 0.84% (+ 0.03 pt from FP 45)

  • LTV (total assets basis): 47.9% (- 0.1 pt from FP 45)

• With unitholder return and improvement of capital efficiency in mind, conducting agile acquisition of own investment units using cash on hand

Cash Distributions

• Expecting to record gain on sale of Landic Shimbashi 2 Building (third transfer) in FP 47, and expecting substantial recovery in EPU in FP 48 with the end of the round of large-scale renovations that are being implemented over FP 45 through FP 47

  • DPU (FP 46 actual): 3,140 yen (+ 36 yen period on period) ⚫ EPU (FP 46 actual): 2,586 yen (- 85 yen period on period)

  • DPU (FP 47 forecast): 3,140 yen (- yen period on period) ⚫ EPU (FP 47 forecast): 2,630 yen (+ 44 yen period on period)

  • DPU (FP 48 forecast): 3,100 yen (- 40 yen period on period) ⚫ EPU (FP 48 forecast): 2,940 yen (+ 310 yen period on period)

FP 45

FP 46

At tenant turnover

At contract renewal

FP 45

FP 46

Change

- 1.1%

- 4.1%

Office

+ 3.9%

+ 4.1%

Office

97.1%

98.3%

+ 1.2 pt

Residential

+ 11.0%

+ 0.7%

Residential

97.0%

96.8%

- 0.2 pt

Entire

portfolio

+ 9.7%

+ 2.3%

Entire

portfolio

97.1%

97.8%

+ 0.7 pt