ORIX Jreit Inc. · TSE:8954
ORIX Jreit — 13th Fiscal Period Earnings Presentation
37 slides from ORIX Jreit's earnings presentation, Oct 17, 2008
Slide 1: ORIX JREIT Inc. 13th Fiscal Period Results
ORIX JREIT Inc. 13th Fiscal Period Results (ended August 31, 2008) October 17, 2008 ORIX Asset Management Corporation ORIX JREIT Inc. 1
Slide 2: Summary of Results for the 13th Fiscal Period
Summary of Results for the 13th Fiscal Period (Ended August 31, 2008) ORIX JREIT Inc. 2
Slide 3: 13th Fiscal Period: Forecast vs. Actual
13th Fiscal Period: Forecast vs. Actual 13th Fiscal Period Income-boosting factors Item (Ended Aug. 31, 2008) Change Contribution from the property acquired during the 13th fiscal period (ORIX Shinagawa Building) Forecast Actual (+82 million yen) Decrease in repairs and maintenance costs Operating r
Slide 4: Comparison of the 12th and 13th Fiscal Periods
Comparison of the 12th and 13th Fiscal Periods 12th Fiscal Period 13th Fiscal Period Income-boosting factors Item Change Contribution from four properties acquired during the 13th (Ended Feb. 29, 2008) (Ended Aug. 31 , 2008) fiscal period (+327 million yen) Increase in rental revenue from existing p
Slide 5: Forecast of Results for the 14th and 15th Fiscal Periods
Forecast of Results for the 14th and 15th Fiscal Periods 13th Fiscal Period Forecast for the Change Forecast for the Change Item 14th Fiscal Period 15th Fiscal Period (Ended Aug. 31, 2008) (13th to 14th) (Ending Aug. 31, 2009) (14th to 15th) (Ending Feb. 28, 2009) Operating revenues (million yen) 10
Slide 6: Business Results and Growth Strategy
Business Results and Growth Strategy ORIX JREIT Inc. 6
Slide 7: Highlights
Highlights Capitalizing on synergies with the ORIX Group, continued to adopt a selective approach toward investment in blue chip properties focusing on the Greater Tokyo area, office properties and newer construction Maintained and improved profitability through rent increases and sustained high occ
Slide 8: External Growth Record
External Growth Record After procuring funds through the issuance of additional investment units in October 2007, acquired six properties (total acquisition price: 52.1 billion yen) and sold two properties (total acquisition price: 18.1 billion yen) Maintaining sound financial management while impro
Slide 9: Properties Newly Acquired during the 13th Fiscal Period (Slide 1 of 2)
Properties Newly Acquired during the 13th Fiscal Period (Slide 1 of 2) ORIX Suidobashi Building ST WORLD Building Toda Park Logistics Center Location Toda-City, Saitama Location Chiyoda-ku, Tokyo Location Shibuya-ku, Tokyo Acquisition date March 28, 2008 Acquisition date March 28, 2008 Acquisition d
Slide 10: Properties Newly Acquired during the 13th Fiscal Period (Slide 2 of 2)
Properties Newly Acquired during the 13th Fiscal Period (Slide 2 of 2) ORIX Shinagawa Building Ideally situated near Shinagawa Station Extremely popular as an office location, located to the east of Shinagawa Station Shinagawa Station is serviced by six railway lines including the Shinkansen line. T
Slide 11: Properties Newly Acquired during the 14th Fiscal Period (Slide 1 of 2)
Properties Newly Acquired during the 14th Fiscal Period (Slide 1 of 2) ORIX Nagoya Nishiki Building Prime location boasting high profile and outstanding transport convenience Fronts Fushimi-dori in the center of the Fushimi area, a leading business district in the heart of Nagoya City A two-minute w
Slide 12: Properties Newly Acquired during the 14th Fiscal Period (Slide 2 of 2)
Properties Newly Acquired during the 14th Fiscal Period (Slide 2 of 2) Located in the Ichikawa district in close proximity to a Ichikawa Logistics Center major consumption area Located near Tokyo in the Ichikawa district, an area that is expected to benefit from robust large-scale logistics facility
Slide 13: Key Points for Investment in Logistics Facilities
Key Points for Investment in Logistics Facilities Objectives Location, Size Design, Tenant To stabilize portfolio cash flow, to Close to transportation Versatile design Location Good maintain and increase yield infrastructure (Check for building features such as Close to place of consumption (for ju
Slide 14: 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 June 30,
Slide 15: Undertake Property Sale in Response to Changes in Operating Conditions
Undertake Property Sale in Response to Changes in Operating Conditions Overview of the Sale of Round-Cross Round-Cross Shinsaibashi ORIX Nagoya Nishiki Building Shinsaibashi Overview of the Acquisition of Two Properties Ichikawa Sales price 14,500 million yen Logistics Center Total acquisition price
Slide 16: Building a Highly Competitive Portfolio
Building a Highly Competitive Portfolio Building a highly competitive portfolio focusing on newer office properties in the Greater Tokyo area Trends in Property Total Acquisition Price by Average Age and Type (Years) st fiscal period d continuously from th e1 18.2 years 20.0 Average age er ties hel
Slide 17: Rent Situation
Rent Situation Rent Adjustments (by Area) Rent Increases during the 13th Fiscal Period Area Covered by Lease Renewals During the Fiscal Period Rent increase (existing leases) Rent adjustment (monthly base) Existing New Total Rent increase (new leases) Note: Figures are after deducting the Leases Lea
Slide 18: Reference: Future Internal Growth of ORIX JREIT
Reference: Future Internal Growth of ORIX JREIT Target for rent Analysis of Room for Internal Growth increases for Comparison with next 12 months By Area By Use By Lease Type Market Leasing Rates Thousand m2 360Total rentable area Total rentable area 338,966 m2 338,966 m2 Target rent increase Other
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 31 properties continuously NOI yield of newly acquired properties held from the end of the 6th fiscal period through in the initial fiscal period of acquisition Leasing NOI, all prop
Slide 20: Occupancy Rate Situation
Occupancy Rate Situation Occupancy Rates Low Occupancy Properties (below 90%) at the End of the 13th Fiscal Period Property Name Occupancy Rate, Leasing Status 100% 63.1% Currently engaged in leasing 96% Round-Cross activity Nishi Shinjuku Lease already signed with new 92% tenant (improved to 74.5%
Slide 21: Reference: Investment in Non-Office Properties
Reference: Investment in Non-Office Properties Leasing NOI yield for non-office properties: 6.0% (compared with 5.7% for the overall portfolio) Portfolio distribution at the end of the 13th Fiscal Period (by acquisition price, Hotels Non-office properties as of Aug. 31, 2008) 14.4% Ratio to the over
Slide 22: Appraisal Value
Appraisal Value 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th (End of (End of (End of (End of (End of (End of (End of (End of (End of (End of Fiscal period Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug 2004) 2004) 2005) 2005) 2006) 2006) 2007) 2007) 2008) 2008) Number of properties 46 49 46 47 39 41 40 44 4
Slide 23: Financial Situation (Slide 1 of 2)
Financial Situation (Slide 1 of 2) Achieved a ratio of unsecured loans to total interest- interest-bearing debt of 100% Refinanced to long- long-term fixed interest loans, diversifying repayment terms and dates dates to ensure a prudent loan maturity profile Outstanding Interest-Bearing Debt, Loan-t
Slide 24: Financial Situation (Slide 2 of 2)
Financial Situation (Slide 2 of 2) Outlook credit ratings revised upward following positive evaluation of ORIX JREIT’s investment portfolio and sound financial position Transactions newly commenced with Development Bank of Japan Inc. Revised upward on August 8, 2008 Credit Ratings S&P Long-term cred
Slide 25: Investors and Investment Units
Investors and Investment Units Breakdown by number of units Breakdown by number of investors 12th 13th 12th 13th Category Share Share Change Category Investors Share Investors Share Change Change Units (%) Units (%) Change (%) (%) (%) (%) Individuals and others 36,245 14.40 35,337 14.04 -908 -2.51 I
Slide 26: Appendix
Appendix ORIX JREIT Inc. 26
Slide 27: Operating Situation
Operating Situation 11th Fiscal Period 12th Fiscal Period 13th Fiscal Period 14th Fiscal Period1 Total rentable area (at the end of the fiscal period) (m2) (1) 265,574 262,368 307,718 338,966 YoY (%) 107.9 98.8 117.3 110.2 Area covered by lease cancellation (m2) (2) 10,926 10,638 5,617 10,967 Lease
Slide 28: Financial Highlights
Financial Highlights 9th period 10th period 11th period 12th period 13th period Operating revenues (million yen) 8,894 8,477 9,161 9,974 10,052 Operating income (million yen) 4,271 3,865 4,127 4,925 4,713 Net income (million yen) 3,664 3,346 3,284 4,084 3,818 Unitholders’ capital (million yen) 120,8
Slide 29: Portfolio Summary
Portfolio Summary List of all real estate held by ORIX JREIT as of October 16, 2008 Acquisition Acquisition GFA Price Ratio GFA Price Ratio Ty pe Area Nam e of building Address ( ) Year Built (JPY mn) (%) Ty pe Area Nam e of building Address ( ) Year Built (JPY mn) (%) Other Greater Aoyama Suncrest
Slide 30: Portfolio Map
Portfolio Map ORIX JREIT Inc. 30
Slide 31: Portfolio Diversification (Slide 1 of 2)
Portfolio Diversification (Slide 1 of 2) Average acquisition price of properties Property size * (Billion yen) Under 3,000m2 Under 3,000m2 7.83 Over 15,000m2 10.1% Over 15,000m2 13.6% 40.3% 30.6% Average Average 15,734 22,976 m2 m2 2.59 13,000m2 to 13,000m2 to 15,000m2 15,000m2 46.0% 59.3% Sold afte
Slide 32: Portfolio Diversification (Slide 2 of 2)
Portfolio Diversification (Slide 2 of 2) Area Type Other area Others Retail Hotels Others 2.1 Other area Hotels 4.1 Facilities 5.6 1.5 15.3 1.8 Greater Tokyo 15.1 17.3 Tokyo Logistics central Facilities Tokyo central 3 wards Greater Tokyo 3 wards 8.1 35.0 Retail Other Tokyo 45.8 16.1 Facilities 23 w
Slide 33: Major Tenants
Major Tenants Major 10 tenants at the end of the 13th fiscal period (Reference: Major 10 tenants at the end of the 12th fiscal period) Share in Rented Space Total Rented Rented Space Share in Total Rented Name of Tenant Sector Property Name of Tenant (m2) Space % (m2) Space % Keiyo Distribution Toda
Slide 34: Seismic risk Portfolio PML
Seismic risk Portfolio PML Seismic risk analysis Name of building PML Replacement cost % of replacement (billion yen) Aoyama Suncrest Bldg. 11 24.0 Tokyo central Round-Cross Ichiban-cho Bldg. 11 16.0 3 wards Beside Shirogane 13 10.6 Round-Cross Akasaka Mitsuke 12 4.1 Nihonbashi East Bldg. 16 9.0 Rou
Slide 35: 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)* 1.0 (Billion yen) 2.0 25.0 0.8 20.0 1.5 0.6 15.0 1.0 0.4 10.0 0.5 5.0 0.2 0 0 0 9th 10th 11t
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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