Investor Presentaiton slide image

Investor Presentaiton

Summary of External Growth Strategy Recognition of External Environment Shared Office Hotel • • Information on the sale of high-quality properties from an investment perspective is still limited and a situation in which it is difficult to acquire properties persists While changes are observed in the investment attitude of some overseas investors in the context of the softening U.S. office market, demand for property purchases from domestic investors remains high. The hotel market continues to recover, and with the expectation of possible further growth, hotel transactions by both domestic and foreign investors are being revitalized. • • Future Policy Aiming to expand asset size through methods such as leveraging sponsor support (including not only property provision but also joint investments, etc.) and asset replacement. Future growth may be expected, and we are actively considering hotels that can be expected to have reasonable yields. We are also considering a wide range of projects with which improved revenue can be expected based on a change of operator or the like through leveraging the sponsor's hotel operation and management capabilities. With regard to offices, in addition to regional properties that can be expected to have a reasonable yield and whose occupancy is relatively stable, in central Tokyo, where the deterioration of properties is becoming more evident due to the impact of the large volume of new office supply, we are carefully considering high-grade, competitive properties in favorable locations. Changes in Number and Amount of Real Estate Transactions Situations of Recognition of the Market Cycle among Real Estate Investors 12.6 9.1 8.6 8.7 12.4 11.5 8.0 8.9 5.2 0% 20% 40% 60% 80% 100% 8% 5.4 Apr.2016 Apr.2017 7% Apr.2018 Amount (100 billion yen) number 6% Apr.2019 Apr.2020 5% 389 413 407 326 385 379 356 361 Apr.2021 327 319 Apr.2022 Apr.2023 Q1 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 Q2 2022 2023 Recovery stage Expansion stage Reduction stage 6 Trend in Transaction Yield • Standard Class-A Buildings • Hotels Specializing in Accommodation 8% 0000 7% 6% 5% 4% 4% Central Tokyo Tokyo Osaka Midousuji, Osaka 3% Sapporo 3% Sapporo Sendai Nagoya Fukuoka Okinawa Fukuoka 2% 2% 8 Recession stage 9999 Source Prepared by the company based on Nikkei BP "NIKKEI REAL ESTATE MARKET REPORT May 2020, Aug. 2020, Nov. 2020, Feb. 2021, May 2021, Aug. 2021, Nov. 2021, Feb. 2022, May 2022, Aug. 2022, Nov. 2022, Feb. 2023, Aug. 2023" Source: Prepared by the Company based on Japan Real Estate Institute: The Japanese Real Estate Investor Survey * Recognition of the market cycle (market trends) in relation to Tokyo (Marunouchi/Otemachi districts) Source: Prepared by the Company based on Japan Real Estate Institute: The Japanese Real Estate Investor Survey The figure for Central Tokyo represents the simple mean value of the data obtained in the survey in Marunouchi-Otemachi, Nihonbashi, Toranomon, Nishi-Shinjuku, Shibuya and Osaki. *The data were current as of October of each year. But the data of 2023 was current as of April. 16 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
View entire presentation