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Investor Presentaiton

Overview of the Settlement for the FP Ended August 2023 (43rd FP) Distribution per Unit for 43rd FP 1,700 yen (up 116 yen (up 7.3%) vs forecast as of April 2023) Distribution per Unit (excluding temporary factors) 1,607 yen (up 240 yen (up 17.6%) vs forecast as of April 2023) 42nd FP · Operating revenues exceeded the forecast by 202 million yen due to factors such as progress with leasing and recovery in hotel performance. Operating income was 876 million yen higher than the forecast due to a decrease in depreciation resulting from a review of the useful life of the asset, etc. Distribution per unit excluding temporary factors exceeded the forecast by 240 yen to become 1,607 yen. Main factors in change 43rd FP Items (million yen) (Ended Feb.2023) (Ended Aug.2023) Actual Forecast 43rd FP (Ended Aug.2023) Actual (for five months) (as of Apr. 2023) (A) (B) (C) Change from Forecast (C-B) vs. forecast Operating revenues Rental revenues Gain on sale of real estate Operating expenses Property-related expenses 7,258 11,609 11,812 (a) 5,828 10,180 10,374 202 194 <Property-related revenues> 1,430 1,428 1,437 8 Operating revenues Increase in rent due to recovery in hotel performance 3,200 5,297 4,623 - 673 Increase in office rent due to factors such 2,710 4,057 3,382 - 674 Property and other taxes. 879 1,227 1,202 - 24 Overhead expenses Depreciation Selling, general and Profits and losses from real estate rental business Earnings before depreciation and amortization (NOI) Operating income Non-operating expenses Ordinary income Income taxes 916 1,288 1,184 - 104 914 1,541 996 - 544 490 1,240 1,240 0 administrative expenses (d)=(a)-(b) 3,117 6,123 6,992 868 (d)+(c) 4,032 7,664 7,988 324 4,057 6,311 7,188 876 326 664 653 - 10 . 3,731 5,647 6,535 888 as pregress with leasing • Increase in gain on sale of real estate (Shinbashi Ekimae MTR Building) Operating expenses <Property-related expenses> Property and other taxes not yet accrued for the expected (Kamiyacho)(due to unsettled property taxes, etc.) Decrease in utilities expenses • Decrease in repair expenses decrease in depreciation resulting from a review of the useful life of the asset 163 mn yen 30 mn yen 8 mn yen - 23 mn yen - 59 mn yen - 30 mn yen - 544 mn yen current 0 10 10 - 0 Income taxes deferred 116 - 0 - 632 - 631 Income taxes - deferred Profit 3,614 5,637 7,157 1,520 Balance of internal reserves 2,008 2,005 2,482 476 Transfer of deferred tax liabilities due to unification to the reserve for reduction entry 631 mn yen Distribution per unit (yen) 2,545 1,584 1,700 116 Distribution per unit excluding 1,839 temporary factors (yen) (*) 1,367 1,607 240 (Deferred tax liabilities (debt) → Reserve for reduction entry (equity)) Profit Total number of outstanding investment units . 1,320,000 3,560,000 3,560,000 Increase due to upward revision of ordinary income • Increase due to change in income taxes deferred 888 mn yen - 631 mn yen * Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, merger related expenses, etc. * The 42nd fiscal period (ended February 28, 2023) is an irregular length of five months due to the merger with MORI TRUST Hotel Reit, Inc. (dated March 1, 2023). ⚫ (partly) for internal reserves of gain on sale of Shinbashi Balance of internal reserves 476 mn yen 7
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