ORIX Jreit Inc. · TSE:8954
ORIX Jreit — 15th Fiscal Period Earnings Presentation
39 slides from ORIX Jreit's earnings presentation, Oct 19, 2009
Slide 1: 15th Fiscal Period Results (ended August 31, 2009)
ORIX JREIT Inc. 15th Fiscal Period Results (ended August 31, 2009) October 19, 2009 ORIX Asset Management Corporation
Slide 2: Executive Summary (Slide 1 of 2): 15th Fiscal Period Topics
Executive Summary (Slide 1 of 2) 15th Fiscal Period Topics Internal Growth Focused on Maintaining Occupancy Rates Sharp increase in notifications regarding lease agreement cancellation at the end of the 14th fiscal period. Agreements relating to leased space totaling approximately 5,000 tsubo were c
Slide 3: Executive Summary (Slide 2 of 2): Future Policies and Strategies
Executive Summary (Slide 2 of 2) Future Policies and Strategies Maintain and Improve Leasing NOI with the Aim of Ensuring Stable Medium-Term Distribution Operating Environment Future Policies and Strategies External Growth Disparities in the perception of property values between buyer Strict selecti
Slide 4: Reference: Real Estate Market Operating Environment
Reference Real Estate Market Operating Environment Trends in the Tokyo Stock Exchange REIT Index Trends in Average Business District Vacancy Rates and Nikkei Stock Average (Tokyo, Osaka, Nagoya, Sendai) (Yen) (%) Source: Miki Shoji Co., Ltd. Trends in Financial Institution Lending Attitudes (D.I.) T
Slide 5: Summary of Results for the 15th Fiscal Period
Summary of Results for the 15th Fiscal Period (Ended August 31, 2009)
Slide 6: 15th Fiscal Period: Forecast vs. Actual
15th Fiscal Period: Forecast vs. Actual Item 15 period (Aug 2009) Income-Boosting Factors Change (Million Yen) Forecast Actual Disparity in forecast revenue from existing properties + \ 111 mn Increase in cancellation penalty received +\ 31 mn Operating Revenues 11,378 11,465 86 Decrease in interest
Slide 7: Comparison between the 14th and 15th Fiscal Periods
Comparison between the 14th and 15th Fiscal Periods Item 14th period 15th period Income-Boosting Factors Change Two properties acquired during 15th period (Million Yen) (Feb 2009) (Aug 2009) + \ 379 mn Gains from sale of property in 15th period + \ 949 mn Operating Revenues 10,522 11,465 943 Return
Slide 8: Forecast of Results for the 16th and 17th Fiscal Periods
Forecast of Results for the 16th and 17th Fiscal Periods Forecast for the Forecast for the Item 15th period 16th period Change 17th period Change (Million yen) Aug 2009 Feb 2010 15th to 16th Aug 2010 16th to 17th Operating Revenues 11,465 9,767 -1,697 9,815 47 Operating Income 5,838 4,302 -1,535 4,3
Slide 9: Operating Conditions During the 15th Fiscal Period
Operating Conditions During the 15th Fiscal Period (Ended August 31, 2009)
Slide 10: Building a High-Quality Portfolio
Building a High-Quality Portfolio Building a High-Quality Portfolio Focusing Mainly on Greater Tokyo, Relatively New Properties and Offices As of Account Settlement End of the 1st Fiscal Period Announcement Day (August 31, 2002) (October 16, 2009) Asset Scale ¥99.6 billion 2.8 times ¥277.5 billion A
Slide 11: Rent Revision Trends
Rent Revision Trends Rent Revision Status (by Floor Area) Revision-Based Rent Trends Floor area covered Rent increase (existing tenant) New leases by lease renewals Rent increase (new tenant) Rent adjustment (monthly Total and new leases base) during each fiscal No change Lease renewals period * Fig
Slide 12: Initiatives Aimed at Maintaining/Increasing Occupancy Rates (1 of 3)
Initiatives Aimed at Maintaining/Increasing Occupancy Rates (Slide 1 of 3) Steps to Quickly Address Vacancies, Efforts to Maintain High Occupancy Rates OJR Leasing Initiatives Increase personnel in marketing departments Prevent cancellation by fostering strong ties with existing tenants Strengthen c
Slide 13: Initiatives Aimed at Maintaining/Increasing Occupancy Rates (2 of 3)
Initiatives Aimed at Maintaining/Increasing Occupancy Rates (Slide 2 of 3) Akasaka Area ORIX Akasaka 2-chome Building Acquisition Price ¥21,860 million Ratio to the Overall Portfolio by Acquisition Price 7.9 As of October 16, 2009 Period-End Occupancy Rate 69.2 90.4 Quickly filled vacancies Notifica
Slide 14: Initiatives Aimed at Maintaining/Increasing Occupancy Rates (3 of 3)
Initiatives Aimed at Maintaining/Increasing Occupancy Rates (Slide 3 of 3) Shinjuku Area Round Cross Shinjuku Round-Cross Shinjuku 5-chome Round-Cross Shinjuku Increase in lease cancellations from around the summer months of 2009 Acquisition Price ¥8,020 mn Acquisition Price ¥4,500 mn attributable t
Slide 15: Ramifications and Advantages of Portfolio Distribution by Property Types
Ramifications and Advantages of Portfolio Distribution by Property Types Due to high occupancy rates, non-office use contributes greatly to maintaining overall portfolio stability Portfolio Distribution as of the End of the 15th Fiscal Period Trends in Occupancy Rates by Property Type (Acquisition P
Slide 16: Initiatives Aimed at Reducing Costs (Property-related Expenses)
Initiatives Aimed at Reducing Costs (Property-related Expenses) PM BM Expenses Utility Expenses Electricity Charges Investigated potential for a reduction in electricity charges Review of expenses relating to PM and BM operations by means of changing electricity supply company To encompassing re-des
Slide 17: 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 held Leasing NOI yield of newly acquired properties from the end of the 6th fiscal period through to the end in the initial fiscal period of acquisition (based on of the 15th
Slide 18: Appraisal Value
Appraisal Value 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th (End of (End of (End of (End of (End of (End of (End of (End of (End of (End of Feb 2005) Aug 2005) Feb 2006) Aug 2006) Feb 2007) Aug 2007) Feb 2008) Aug 2008) Feb 2009) Aug 2009) Number of properties 46 47 39 41 40 44 43 47 48 49 Apprais
Slide 19: Financial Position (Slide 1 of 2)
Financial Position (Slide 1 of 2) Ratio of Long-Term Debt to Total Debt, Outstanding Interest-Bearing Debt, Loan-to Value Ratio Ratio of Fixed Interest Debt to Total Debt Outstanding interest-bearing debt Loan-to-value ratio Ratio of long –term debt Fixed –interest debt ratio (Billions of Yen) (%) (
Slide 20: 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: Stable R&I Issuer rating: A+ Rating outlook: Positive Commitment Line Commitment line of debt set at ¥27.0 billion provided by four financial institutions Agreed during the 15th f
Slide 21: Investors and Investment Units
Investors and Investment Units Unitholder 14th 15th Change category Units Share(%) Units Share(%) Units Share(%) Individuals,others 39,662 15.76 40,999 16.29 1,337 3.37 Finance 132,334 52.59 126,595 50.31 -5,739 -4.34 Major Banks 3,736 1.48 3,596 1.43 -140 -3.75 Regional Banks 18,607 7.39 16,633 6.6
Slide 22: Appendix
Appendix
Slide 23: Financial Highlights
Financial Highlights 11th period 12th period 13th period 14th period 15th period (Millions of yen) Aug 2007 Feb 2008 Aug 2008 Feb 2009 Aug 2009 Operating revenues 9,161 9,974 10,052 10,522 11,465 Operating income 4,127 4,925 4,713 5,039 5,838 Net income 3,284 4,084 3,818 4,016 4,761 Unitholders' cap
Slide 24: Appraisal Value: Comparison with the 14th Fiscal Period (Slide 1 of 3)
Appraisal Value: Comparison with the 14th Fiscal Period (Slide 1 of 3) Appraisal value of properties at the end of the 15th fiscal period (1) Area symbol: 3 Central Tokyo Wards Remaining Tokyo Wards Other Parts of the Greater Tokyo Area Other Areas End of the 15th Fiscal Period Change from the 14th
Slide 25: Appraisal Value: Comparison with the 14th Fiscal Period (Slide 2 of 3)
Appraisal Value: Comparison with the 14th Fiscal Period (Slide 2 of 3) Appraisal value of properties at the end of the 15th fiscal period (2) End of the 15th Fiscal Period Change from the 14th Period Type Area Property Book value Appraisal CR Gain/loss Change % Change CR Change Chg gain/Loss \millio
Slide 26: Appraisal Value: Comparison with the 14th Fiscal Period (Slide 3 of 3)
Appraisal Value: Comparison with the 14th Fiscal Period (Slide 3 of 3) Comparison of Each Type of Property with the 14th Fiscal Period Change in Type NCF Change CR CR Change Appraisal Offices Others (Residentials) Retail Facilities Hotels Logistics Facilities Total Largest change in appraisal value
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 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 June 30, 2009 Offi
Slide 28: Portfolio Summary
Portfolio Summary List of all real estate held by ORIX JREIT as of October 16, 2009 Acquisition Acquisition GFA Price Ratio GFA Price Ratio Ty pe Area Name of building Address ( ) Year Built (JPY mn) (%) Ty pe Area Name of building Address ( ) Year Built (JPY m n) (%) Aoyama Suncrest Bldg. Minato-ku
Slide 29: Portfolio Map
Portfolio Map ec (Ordo Line OFX Jimencho Busing Round Cres loti bench) LY f Sieacroed Means i JA Che Line, Goby Line A Fibs Dedhon Buasing e . Pare Aus NewtY Azabu Stage FO te ftom Rating e “3 Crop Mrami Agate: Round Cites Mite Minato ward Bewoe Shrogane e ve Chiyoda ward f oe os er 2 rAXS f Ono Sut
Slide 30: Properties Newly Acquired during the 15th Fiscal Period
Properties Newly Acquired during the 15th Fiscal Period ORIX Real Estate Nishi Shinjuku Building Omiya Miyacho Building Location Shinjuku-ku, Tokyo Location Saitama City, Saitama Acquisition March 27, 2009 Acquisition March 27, 2009 Date Date Acquisition ¥13,600 million Acquisition ¥4,400 million Pr
Slide 31: Office Portfolio by Area
Office Portfolio by Area Portfolio as of the End of the 15th Fiscal Period by Area (Acquisition Price Basis) Offices (Remaining Tokyo Wards) Note: Overall Portfolio Leasing NOI Yield Total Carrot Tower 5.4 Acquisition ¥99,090 million Non-office Price properties Offices (Remaining Number of 16.6% Pro
Slide 32: Reference: Key Points for Investment in Logistics Facilities
Reference Key Points for Investment in Logistics Facilities Objectives Location, Scale Design, Tenants To stabilize portfolio cash flow, to Versatile design Good maintain and increase yield Close to transportation infrastructure (Building features include temperature- Close to place of controlled wa
Slide 33: 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 9.8% 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,
Slide 34: 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 35: Major Tenants
Major Tenants Top 10 Tenants as of 15th Period End (Reference) As of 14th Period End Share of Total Share of Total Rented Space Rented Space Name of Tenant Sector Property Name Rented Space Name of Tenant Rented Space ( ) ( ) Ichikawa Logistics 1 SENKO Co., Ltd. Transportation 37,456.96 11.5 1 SENKO
Slide 36: Cash Management
Cash Management 11th Period 12th Period 13th Period 14th Period 15th Period (Million Yen) Aug 2007 Feb 2008 Aug 2008 Feb 2009 Aug 2009 Depreciation 1,583 1,639 1,773 1,874 1,910 Repair and Maintenance Costs 137 130 143 112 124 CAPEX 194 43 159 69 272 Cash and cash equivalents 12,729 20,023 20,843 22
Slide 37: Reference: Government Initiatives Aimed at Supporting J-REITs
Reference Government Initiatives Aimed at Supporting J-REITs, Areas in Need of Improvement Government and Other Initiatives Systems Reform Development Bank of Japan Crisis Respond Lending Handling of Money Delivered due to a Merger To enable the payment of money to unitholders of expiring Implemente
Slide 38: 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 39: 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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