Investor Presentaiton
(pts)Above 0=Good
(%)
•
Market Review ~ Sales Market Real Estate Market Condition⚫ Other~
Expected Cap Rate
10-Year Government Bond Interest Rate and
Expected Cap Rate
10-year government bonds compound interest
Market Condition and
Transaction Volume
Land Price/
Electricity Futures Prices
Proportion of Rise (Decline) in Land Prices in
the Greater Tokyo Area
Real Estate Market Condition
Increase over 6%
(%)
Flat
Increase b/w 3% and 6% Increase b/w 0% and 3%
Decrease
100
5
Expected cap rate of class A office buildings in
Marunouchi and Otemachi
40
80
4.5
60
4
3.5
3
2.5
2
1.5
1
40
20
20
0
0
10Q1
10Q3
11Q1
11Q3
12Q1
12Q3
13Q1:
13Q3
14Q1
14Q3
15Q1
15Q3
16Q1
16Q3
17Q1
17Q3.
18Q1
18Q3
19Q1
19Q3
20Q1
20Q3
21Q1
21Q3
22Q1
-20
Residential and housing lot sales
0.5
Logistics (residential lot)
0
Building leasing
-40
-0.5
'15
'16
'17
'18
'19
'20
'21
'22
'15
'16
'17
'18
'19
'20
'21
'22
Proportion of Rise (Decline) in Land Price in the
Osaka Area
Increase over 6%
(%)
Flat
100
Increase b/w 3% and 6% Increase b/w 0% and 3%
Decrease
50
50
Source: Prepared by NREAM based on data from the Japan Real Estate Institute and the
Ministry of Finance
Note: Figures are as of each quarter. Expected cap rate shows median figures.
Expected Cap Rate by Real Estate
Investor
Bottom
(%)
6.0
Office (Class A office building in Marunouchi, Tokyo)
Residential (studio type in Jonan, Tokyo)
Retail (urban central stores in Ginza, Tokyo)
Logistics (Multi-tenant type in Koto Ward, Tokyo)
Hotel (types specializing in lodging in Tokyo)
5.5
5.0
4.5
4.0
40
3.5
3.0
'15
'16
'17
'18
'19
'20
'21
'22
0
Source: The Land Institute of Japan
10Q1
10Q3
11Q1
SOLL
12Q1
12Q3
13Q1)
13Q3
14Q1
14Q3
15Q1
15Q3
16Q1
16Q3
17Q1
17Q3
18Q1
18Q3
19Q1
19Q3
20Q1
20Q3
21Q1
21Q3
22Q1
Source: Prepared by NREAM based on data from the Ministry of Land, Infrastructure,
Transport and Tourism
Changes in Electricity Futures Prices (as of
Sep. 22, 2022)
Real Estate Transaction Cycle in
Tokyo
Rise
20
15
Number of transactions
YoY change(Y)
Sep.'12
10
Mar. '22
5
40
Sep. '21
Sep.'19
Land price YoY
change (%)
30
10
20
30
-30
-20
Fall
Sep.'08
Sep.'07
-10
Sep. '20
-15
-20
Peak
Source: Prepared by NREAM based on data from the Japan Real Estate
Institute
Note: Expected cap rate shows median figures.
Source: Prepared by NREAM based on data from the Ministry of Justice and the Japan Real Estate
Institute
Note: Land prices are annualized. The year-on-year rate of change of the number of transactions (from
October of the previous year to September of the target year) and the urban land price (as of
September of the target year) are plotted.
-Eastern Japan Base Load
(Yen/KWH)
Western Japan Base Loan
Futures prices for future
contact months
50
20
10
0
'21
'22
'23
'24
Source: Prepared by NREAM based on data from the Tokyo Commodity Exchange
Notes: Eastern Japan is a 50 Hz area and Western Japan is a 60 Hz area. Past values
are average futures prices with the following month as the contract month.
68
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