For Immediate Release
REIT Issuer:
ORIX JREIT Inc. (TSE: 8954)
Yukako Oshimi Executive Director
Asset Management Company:
ORIX Asset Management Corporation Ikuya Onda
President and CEO Inquiries: Takayuki Hirasawa General Manager
Financial Planning Department TEL：+81 3 5776 3323
ORIX JREIT Announces Acquisition of "Baysidepark Osaka South Residences" and "Baysidepark Osaka North Residences"
TOKYO, March 31- ORIX JREIT Inc. ("OJR") announced that our asset management company, ORIX Asset Management Corporation ("OAM"), determined to acquire properties (hereafter, the "acquisition"), as described below.
The Acquisition Summary
Property name
Baysidepark Osaka South Residences
Baysidepark Osaka North Residences
Specified asset category
Real estate trust beneficiary interest
Real estate trust beneficiary interest
Type
Residential Property
Residential Property
Location
Osaka-shi, Osaka
Osaka-shi, Osaka
Seller
Japanese limited liability company
(Note 1)
Japanese limited liability company
(Note 1)
Contract date
March 31, 2026
March 31, 2026
Acquisition date
April 28, 2026
April 28, 2026
Acquisition price
3,540 million yen
2,860 million yen
Appraisal NOI yield (Note 2)
4.2%
4.2%
Appraisal yield after depreciation
(Note 3)
3.0%
3.0%
Intermediary
Yes
Yes
Notes:
The seller companies are different Japanese limited liability companies, however, the consents of the sellers could not be obtained, including information on the name of companies.
The "Appraisal NOI yield" of property is calculated by dividing Net Operating Income based on the direct capitalization method indicated in an appraisal report at the time of decision to acquire by the acquisition price. The figure is rounded to the first decimal place.
The "Appraisal yield after depreciation" of property is calculated by dividing Net Operating Income based on the direct capitalization method indicated in the appraisal report at the time of decision to acquire minus depreciation expense estimated by OAM by the acquisition price. The figure is rounded to the first decimal place.
Reason for the acquisition
OJR is acquiring assets focused on improving portfolio quality with the aims of achieving stable growth of unitholder value.
OJR has decided to acquire Baysidepark Osaka South Residences and Baysidepark Osaka North Residences (collectively, the "properties") based on the judgment that they offer meaningful potential for future upside.
Baysidepark Osaka South Residences and Baysidepark Osaka North Residences are adjacent residential buildings comprising primarily of single type units of less than 40 m². The properties are located approximately a 7-minute walk from "Bentencho" Station on the JR Osaka Loop Line and approximately a 9-minute walk from "Bentencho" Station on the Osaka Metro Chuo Line, offering excellent transportation access to major business and commercial districts in Osaka, including Umeda, Namba, and Hommachi. The surrounding area also offers a favorable living environment, with convenient access to supermarkets, convenience stores, drugstores, and restaurants. Accordingly, the properties demonstrate strong competitiveness and are regarded as assets with solid future upside potential.
Summary of Properties to be Acquired
Baysidepark Osaka South Residences
Property name
Baysidepark Osaka South Residences
Specified asset category
Real estate trust beneficiary interest
Trustee (Scheduled)
SMBC Trust Bank Ltd. (Note1)
Address (Note 2)
2-2-43 Namiyoke Minato-ku, Osaka-shi, Osaka
Public transit access
Approx. a 6-minute walk from "Bentencho" station on JR Osaka Loop Line. Approx. a 9-minute walk from "Bentencho" station on Osaka Metro
Chuo Line.
Land
Area
1,358.51 m2
Type of ownership
Full ownership
Building
Usage
Residence
Completion date
May 2024
Type of ownership
Full ownership
Area
4,468.28 m2
Structure
Reinforced concrete with flat roof, 15 floors
Earthquake resistance
PML (Note 3): 5%
*Based on the report by Sompo Risk Management Inc.
Collateral
None
Appraisal value (Date of value)
3,970 million yen (March 1, 2026)
Appraiser
Chuo Real Estate Appraisal Co., Ltd.
Details of tenants as of January 31, 2026
Number of tenants
1 (Pass through-type master lease)
*Pass through-type master lease agreement is scheduled to be executed at the time of acquisition.
Gross rental income
12 million yen per month (Note 4)
Leasehold and security deposit
3 million yen (Note 4)
Total leased space
3,726.80 m2
Total leasable space
4,042.77 m2
Occupancy rate of end tenants during past 5 years
January 2022
January 2023
January 2024
January 2025
January 2026
-(Not
Completed）
-(Not
Completed）
-(Not
Completed）
28.7%
92.2%
Special notes
None
Notes:
"Amendment to Trust Agreement on Property Management and Disposition" will be executed between OJR and Trustee on April 28, 2026.
The "Address" column shows the residence indication if there is, and if there is none, the building address recorded in the registry. Accordingly, the address may differ from the lot number recorded in the registry.
PML (Probable Maximum Loss) expresses the ratio of the assumed potential damage on buildings, which could occur once in 475 years based on probability statistics, against replacement cost. The earthquake risk of a building is evaluated based on the risk curve that shows the relationship of amount of expected loss (horizontal axis) and probability to exceed the year that the seismic motion causes its loss (vertical axis). The risk curve is evaluated based on the damage distribution considering the uncertainty of damage due to earthquake resistance performance of the building and the behavior of the seismic motion, etc. The figure of PML is rounded to the whole number.
The figures are rounded down to the nearest million yen.
Baysidepark Osaka North Residences
Property name
Baysidepark Osaka North Residences
Specified asset category
Real estate trust beneficiary interest
Trustee (Scheduled)
Mitsubishi UFJ Trust and Banking Corporation (Note 1)
Address (Note2)
2-2-42 Namiyoke Minato-ku, Osaka-shi, Osaka
Public transit access
Approx. a 7-minute walk from "Bentencho" station on JR Osaka Loop Line. Approx. a 9-minute walk from "Bentencho" station on Osaka Metro
Chuo Line.
Land
Area
1,094.94 m2
Type of ownership
Full ownership
Building
Usage
Residence
Completion date
February 2024
Type of ownership
Full ownership
Area
3,547.05 m2
Structure
Reinforced concrete with flat roof,12 floors
Earthquake resistance
PML (Note 3): 6%
*Based on the report by Sompo Risk Management Inc.
Collateral
None
Appraisal value (Date of value)
3,180 million yen (March 1, 2026)
Appraiser
Chuo Real Estate Appraisal Co., Ltd.
Details of tenants as of January 31, 2026
Number of tenants
1 (Pass through-type master lease)
*Pass through-type master lease agreement is scheduled to be executed at the time of acquisition.
Gross rental income
10 million yen per month (Note 4)
Leasehold and security deposit
1 million yen (Note 4)
Total leased space
3,100.27 m2
Total leasable space
3,259.76 m2
Occupancy rate of end tenants during past 5 years
January 2022
January 2023
January 2024
January 2025
January 2026
-(Not
Completed）
-(Not
Completed）
-(Not
Completed）
61.8%
95.1%
Special notes
None
Notes:
"Amendment to Trust Agreement on Property Management and Disposition" will be executed between OJR and Trustee on April 28, 2026.
The "Address" column shows the residence indication if there is, and if there is none, the building address recorded in the registry. Accordingly, the address may differ from the lot number recorded in the registry.
PML (Probable Maximum Loss) expresses the ratio of the assumed potential damage on buildings, which could occur once in 475 years based on probability statistics, against replacement cost. The earthquake risk of a building is evaluated based on the risk curve that shows the relationship of amount of expected loss (horizontal axis) and probability to exceed the year that the seismic motion causes its loss (vertical axis). The risk curve is evaluated based on the damage distribution considering the uncertainty of damage due to earthquake resistance performance of the building and the behavior of the seismic motion, etc. The figure of PML is rounded to the whole number. The figure of PML is rounded to the whole number.
The figures are rounded down to the nearest million yen.
Profile of the Seller Company
The seller companies are different Japanese limited liability companies, however, the information including the names of the companies is not disclosed because the consent of the companies could not be obtained. There is no capital, personal or business relationship required for reporting among OJR or OAM and the companies. The companies do not fall under "related party" of OJR nor OAM.
Information of the Seller Company
The acquisition is not from any party having a special interest in OJR nor OAM.
Payment Terms
Settlement terms: 100% on delivery
Funding method: New borrowing (Note) and Cash on hand
Note: The details of the borrowing will be announced as soon as it is determined.
Future Outlook
The acquisition will have no impact on the earnings forecast for the 48th fiscal period from September 1, 2025 through February 28, 2026 as the scheduled acquisition dates are in the 49th fiscal period from March 1, 2026 through August 31, 2026. Furthermore, the earnings and distributions forecast for the 49th fiscal period from March 1, 2026 through August 31, 2026 is currently under review and is scheduled to be announced at the announcement of financial results for February 2026 (48th) fiscal period on April 21, 2026.
Appraisal Summary
1) Baysidepark Osaka South Residences
Name of asset | Baysidepark Osaka South Residences |
Date of value | March 1, 2026 |
Appraisal value (In thousands of yen) | 3,970,000 |
Appraiser | Chuo Real Estate Appraisal Co., Ltd. |
(In thousands of yen)
Item | Content | Grounds | ||||
Income Approach Value | 3,970,000 | Revenue value is determined with emphasis on revenue value by the DCF method, with revenue value using the direct capitalization method also taken into consideration | ||||
Valuation by the Direct Capitalization Method | 4,080,000 | |||||
(1) Gross Operating Revenue [(a)-(g)] | 185,361 | |||||
(a) Effective gross revenue [(b)＋(c)＋(d)＋(e)＋(f)] | 193,261 | |||||
(b) Rental income | 158,115 | Assessed taking factors such as rent under the existing lease agreement and other arrangements and the level of rents at similar properties into consideration | ||||
(c) CAM income | 22,873 | Same as above | ||||
(d) Utility reimbursement | 0 | Not calculated | ||||
(e) Parking Fee income | 6,600 | Assessed taking factors such as the parking fee under the current agreement and the level of parking fees at similar properties into consideration | ||||
(f) Other income | 5,673 | Assessed based mainly on actual data | ||||
(g) Vacancy loss | 7,900 | Medium-to-long-term occupancy rate (vacancy rate), etc. is assessed taking factors such as actual occupancy data of the target real estate and similar properties and future market trend forecasts into consideration | ||||
(2) Operating Expenses | 37,343 | |||||
Maintenance Expense | 3,660 | Assessed based on expected contract conditions, taking factors such as past data and level of expenses of similar properties into consideration | ||||
Utility Expense | 1,863 | Assessed based on actual past data, taking factors such as level of expenses of similar properties into consideration | ||||
Repair Expense | 2,392 | Assessed taking into consideration estimated repair expenses based on the ER and our assessment calculated from a medium-to-long-term stable perspective based on details of the building such as use, year built, structure and management status | ||||
Property Management Fee | 3,724 | Assessed based on expected contract conditions | ||||
Tenant Advertisement Cost | 9,672 | Assessed based on expected contract conditions | ||||
Tax and Public Dues | 12,001 | Assessed based on most recent actual amounts | ||||
Casualty Insurance | 307 | Assessed based mainly on estimates | ||||
Other Expenses | 3,724 | Assessed based on actual past data | ||||
(3) Net Operating Income [(1)-(2)] | 148,018 | |||||
(4)Profit from Managing Security Deposit | 0 | Assessed based on rate of return of 1.0％ | ||||
(5)Capital Expenditure | 5,177 | Assessed taking into consideration estimated upgrading expenses based on the ER and our assessment calculated from a medium-to-long-term stable perspective based on details of the building such as use, year built, structure and management status | ||||
(6)Net Revenue [(3)+(4)-(5)] | 142,841 | |||||
(7)Cap Rate | 3.5% | Assessed with reference to investment yields in transactions involving similar properties and taking into consideration the individual features of the property such as location, building spec and rights and benefits | ||||
Valuation by DCF Method | 3,920,000 | |||||
Discount Rate | 3.3% | Assessed with reference to investment yields in transactions involving similar properties and taking into consideration factors such as the individual features of the property and valuation scenarios | ||||
Terminal Cap Rate | 3.7% | Assessed with reference to investment yields in transactions involving similar properties and taking into consideration factors such as the individual features of the property, valuation scenarios, future market risks and other risk premiums | ||||
Cost Approach Value | 3,430,000 | |||||
Ratio of Land | 66.6% | |||||
Ratio of Building | 33.4% | |||||
Additional considerations made in the reconciliation of evaluation | Since potential buyers of the property are primarily investors who attach important to revenue potential, the appraisal value is determined based on revenue value and the indicated value using the cost approach is merely used for reference. |
Note: The figures are rounded down to the nearest thousand yen.