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Investor Presentaiton

JPR Internal Growth Strategy Work to achieve recovery in occupancy rate by securing to absorb tenants' demand for relocation, which is becoming more active, and conduct various measures to improve NOI Perspective of Portfolio Occupancy Rates 190 Number of private views of properties Occupancy rates of office properties in the greater Tokyo area still at a low level and there is room for further increase Since better results have been achieved than expected, strive for further lease-up going forward (Views) (%) 300 98 Number of private views significantly increased in the 21st fiscal period, primarily for properties located in central Tokyo ■Number of private views of properties (entire portfolio) Number of private views of properties (only those located in central Tokyo) 281 96.1 249 Results 96 94.1 95.5 238 250 227 94 92 22 93.3 Includes confirmed contracts only Occupancy rate for the 22nd fiscal period includes confirmed contract status alone, including newly concluded contracts and already notified cancellations. 200 157 93.7 Includes confirmed contracts and some assumed contracts 150 Occupancy rate for the 23rd fiscal period assumes some new contracts, etc. on top of the assumptions for the 22nd fiscal period 100 88 50 Average 94.8% ->>> - Average 93.9% - ← Average 95.8% 62 62 131 80 83 76 53 0 0 12.1 2 3 4 5 6 7 8 21st Period 9 10 11 12 22nd Period 13.1 2 3 4 23rd Period 5 6 16th Period 17th Period 18th Period 19th Period 20th Period 21st Period 90 Rent Reduction Rate Due to Downward Revision Worked to address high-level rent reductions during the 21st fiscal period, almost completing rent reductions for tenants who still saw certain rent gaps with the market Number of contracts (left axis) (%) Rent reduction rate (right axis) -3.0 Comparison with assumptions at beginning of 21st period Rent reduction rate: +0.8% (assumption: -2.8%) Reduction cases: +21 contracts (assumption: 38 contracts) -2.0 -2.5 -2.0 (Contracts) 100 90 80 70 64 61 60 50 -1.6 38 35 40 31 -1.3 30 20 -1.0 20 -0.7 10 -0.6 -0.5 0 0.0 15th 16th Period Period 17th Period 18th 19th 20th 21st 22nd 23rd Period Period Period Period Period Period Initiatives to improve NOI ■ Leasing: 59 42 -1.5 -1.1 ☐ -1.0 36 -0.5 -0.5 (Note) Rent reduction rate expresses the amount of rent revised downward as a percentage of gross monthly rent (including common charges) at the end of the respective fiscal period. Newly set up the Leasing Supervising Group at the Asset Manager (TRIM) to further reinforce leasing activities Focused investment in construction work to facilitate leasing and for upgrading: Conduct focused investment in works to renovate highly-demanded spaces and common areas, etc., and to upgrade facility specifications Reduction in energy costs: Place priority on older properties in replacing facilities with energy-saving models ahead of schedule, thereby taking advantage of the effect of energy cost reductions as early as possible ■ Streamlining of operational and administrative systems: Pursue streamlining of administrative systems, management specifications and other factors, primarily for properties in which JPR has co-ownership or sectional ownership, in order to further enhance cost control that should lead to improved NOI Outlook for the 22nd fiscal period and 23rd fiscal period anticipates some assumed rent reductions in addition to the confirmed rent reductions. Japan Prime Realty Investment Corporation 26 26
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