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
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