Investor Presentaiton
Financial Highlights for 43rd FP Ended August 2023
1. Realization of Distributions Significantly
Exceeding Initial Forecast
Realized distributions (*) that exceeded the
initial forecast announced in November
2022 by 297 yen (22.7%) due to internal
growth and various measures
* Excluding temporary factors
1,700
(Unit: yen)
Distribution excluding temporary factors
1,584
2. Promote Initiatives to Improve Profitability
(i) Recovery of Office Occupancy Rate
⚫ Tokyo Shiodome Building (Note 2)
Jul. 2021
Occupancy
rate
50.8%
⚫ Shin-yokohama TECH Building
Jan. 2022
Occupancy
rate
51.3%
3. Recovery of Hotel Performance
Total actual rents of Four Hotels with
Variable Rents (Note 3) recovered to
89% of the same period in 2019
[Trends in MTR's Hotel Business Results (Percent Change Vs. 2019)]
20%
Feb. 2023
(Scheduled)
Oct. 2023
70.8%
99.2%
0%
(Scheduled)
Feb. 2023
Oct. 2023
-20%
-40%
78.0%
100%
-60%
-80%
1,519
1,310
Forecast for
.
1,607
1,367
Forecast for 43rd FP
Actual
43rd FP as of
as of the previous
the merger
financial results
announcement
announcement
(Excluding temporary factors)
Distribution :
+ 297 yen (+ 22.7%)
4. Raise Profit Level by Reducing
Depreciation
• Expanded adoption of economic life
for all assets held, resulting in
longer useful lives and continuous
decline in depreciation
(* Excluding temporary factors)
Effect of Raising the Level
of Distributions (*)
(ii) Replacement of Shinbashi with Sendai
(2 out of 3 Completed)
Improved profitability by selling Shimbashi, where
commercial tenants have vacated, and acquiring Sendai,
an office building with stable occupancy.
• The first (end of Feb. '23) and second (end of Aug. '23)
transactions were completed, with the third (end of Feb.
'24) to follow. All transactions are scheduled to be
completed.
(iii) Additional Acquisition of Kamiyacho
through Merger Effect and Sponsor Support
• Raise the level of distributions by using the acquisition
capacity created by the decrease in LTV due to the merger.
The acquisition of Kamiyacho through sponsor support
demonstrates the strong commitment of the sponsor in
returning to a growth path.
•
5. Dealing with Commercial Tenants
Moving out (in Progress)
The tenant of Kohnan Sagamihara-Nishihashimoto
(Note) moved out when the fixed-term lease contract
expired in Sep. 2023.
Jan-23
Feb-23
Mar-23
Shangri-La [Based on rent (linked to hotel total revenue)]
Hilton Odawara [Based on hotel total revenue]
Courtyard Tokyo [Based on RevPAR]
Courtyard Shin-Osaka [Based on RevPAR]
(Unit million yen)
*excluding minimum
guaranteed rent
Shangri-La
Hilton Odawara
CY Tokyo
CY Shin-Osaka
Total
42nd FP
Actual rent Actual rent
43rd FP
562
935
184
189
148
278
123
296
1,019
1,699
6. Steadily Build Up Internal Reserve Balance
Policy on Use of
Internal Reserves
•
The sale of Shinbashi generated a gain of sale of real estate, of which
a portion was reserved internally.
(mn yen)
Balance of internal reserve
(left axis)
(yen)
• As with other properties and sections, if no new
contracts are signed when the forecast is formulated in
April 2023, it is assumed that, in principle, the property
will remain vacant, and there will be no revision to the
forecast due to this tenant's leaving.
Conversion per unit
(right axis)
4,000
800
697
Plan to use internal
564
3,000
600
459
43rd FP
Actual
Forecast
Vs. Apr. 23
+152 yen
(+11.1%)
2,000
2,482
Revised Forecast
Policy for Future Measures
2,008
Forecast
Vs. Apr. 23
+145 yen
(+10.6%)
The property is being considered for both re-tenanting
and sale given its proximity to the Ken-O Expressway
and Route 16, as well as taking into account the
potential of the area around Hashimoto Station where
the Linear Chuo Shinkansen is scheduled to open.
1,000
1,636
200
0
0
Actual for Actual for
41st FP 42nd FP
Actual for
43rd FP
44th FP
reserves to stabilize
distributions in response to
a temporary decrease in
400 distribution
(Example of utilization)
Temporary decrease in
revenues due to
tenants moving out
O Dilution due to issuance
of new investment
units, etc.
(Note) The name of Kohnan Sagamihara-Nishihashimoto was changed to "Hashimoto MTR Building" on September 28, 2023. The same applies hereinafter.
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