Investor Presentaiton
JPR
Office Transaction Market Conditions
With environment of debt financing from financial institutions favorable, property acquisition by J-REITs from
sponsors driving real estate transactions
Lending Attitude of Japanese Financial Institutions and Amount of New Lending
Financing from Japanese financial institutions is proactive, and the amount of
Changes in Cap Rates of Offices
(JPY trillion)
12.0
new lending is also on gradual recovery trend
Amount of new lending to real estate industry (left axis)
Lending attitude (large enterprises in real estate industry) (right axis)
While office building cap rates in Tokyo remained flat, some areas showed a
slight decrease
(%)
40
6.5
Otemachi/Marunouchi
— Nihonbashi
Nishi-Shinjuku
Shibuya
Osaka
30
10.0
6.0
(Estimate)
8.0
220
20
5.5
10
5.0
6.0
0
5.8
5.8
5.1
5.0
5.0
5.0
4.5
-10
4.7
4.7
4.0
Actual as of
June 2012
-20
4.0
4.2
4.2
2.0
-30
0.0
-40
0.0
2001 2002
2003
2004 2005 2006 2007 2008 2009 2010 2011 2012
(Note) Prepared by Tokyo Realty Investment Management, Inc. based on data by Bank of Japan.
Changes in Amount of Acquisition and Amount of Buying on Balance by Business Sector
Analysis by business sector finds largest is J-REITS in amount of acquisition at 750
billion yen and amount of buying on balance at 600 billion yen in past year
Construction
and real estate
Construction
J-REITs, etc.
J-REITs, etc.
SPCS
SPCs
and real estate
Apr. 2005 Oct. 2005 Apr. 2006 Oct. 2006 Apr. 2007 Oct. 2007 Apr. 2008 Oct. 2008 Apr. 2009 Oct. 2009 Apr. 2010 Oct. 2010 Apr. 2011 Oct. 2011 Apr. 2012
(Note) Prepared by Tokyo Realty Investment Management, Inc. based on the Cap Rate of Average-Sized Class A Office Building
in The Japanese Real Estate Investor Survey published by Japan Real Estate Institute
Changes in Acquisition Results of Office Buildings in Tokyo by J-REITS
Acquisition size on upward trend, led by property acquisition from sponsors
(Acquisition price: JPY bn)
160
Acquisition from sponsor
Other
Other
J-REITs, etc.: 484
140
Acquisition other than from sponsor
Acquisitions
(JPY bn)
Buying/selling
balance
500
400
300
200
100
0
-100
-200
-300
2008 1H
(Note)
120
100
Other: 233
Construction and
80
real estate: 149
SPCs: 93
60
2008 2H 2009 1H
2009 2H
2010 1H
2010 2H
2011 2H
2011 1H
Prepared by Tokyo Realty Investment Management, Inc. based on Survey on Actual Real Estate Transactions by Urban Research Institute
Corporation (Mizuho Trust & Banking Co., Ltd.'s think tank).
40
20
4
3
0
6
1
1
5
6
2
3
4
9
3
9
7
8
2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012
4Q 1Q
3Q 4Q
2Q
1Q
3Q 4Q
2Q
1Q
4Q
2Q 3Q
2Q
1Q
(Note) Prepared by Tokyo Realty Investment Management, Inc. based on press releases by respective J-REITS, with acquisition prices
rounded off to the nearest specified unit. 1Q refers to the period from January to March and subsequent quarters refer to the 3-month
periods thereafter.
Japan Prime Realty Investment Corporation
22View entire presentation