Investor Presentaiton
JPR
Financial Highlights for the 21st Fiscal Period Ended June 2012
Achieved significant period-on-period increase in revenue and profits for the 21st fiscal period, thanks to the acquisition of Otemachi 1-6 Plan
(tentative name) (land with land leasehold), and secured DPU at a level matching forecast at beginning of period
Assume to deliver DPU of JPY 6,000 in the forecast for the 22nd fiscal period, the target level for normal operations without extraordinary
events, despite impact of dilution due to issuance of new investment units via public offering
20th Period
21st Period
(Forecast upon
announcement of the
20th period financial
results)
22nd Period
21st Period (Jan. 1, 2012 – Jun. 30, 2012)
Change from
20th period
Change from
forecast
(Jul. 1, 2012 - Dec. 31, 2012)
Change from
21st period
Operating revenue
Operating income
Ordinary income
Net income
Distribution per unit (DPU)
Total number of investment units outstanding
JPY 11,772 mn
JPY 5,763 mn
JPY 4,201 mn
JPY 4,200 mn
JPY 12,174 mn
JPY 6,224 mn
JPY 12,345 mn
JPY 6,393 mn
4.9%
1.4%
JPY 12,859 mn
4.2%
10.9%
2.7%
JPY 6,624 mn
3.6%
JPY 4,577 mn
JPY 4,597 mn
9.4%
0.4%
JPY 4,951 mn
7.7%
JPY 4,576 mn
JPY 4,596 mn
9.4%
0.4%
JPY 4,950 mn
7.7%
JPY 5,876
715,000
JPY 6,400
715,000
JPY 6,430
715,000
9.4%
%
0.5%
JPY 6,000
-6.7%
%
825,000
15.4%
Properties owned at end of fiscal period
Total acquisition price
Average occupancy rate during period
57 properties
JPY 344,984 mn
95.0%
58 properties
JPY 380,984 mn
94.6%
58 properties
JPY 380,984 mn
94.8%
1 property
10.4%
-0.2%p
properties
%
0.2%p
59 properties
JPY 391,980 mn
93.9%
1 property
2.9%
-0.9%p
(Note) Amounts have been rounded down to the nearest specified unit and percentages have been rounded to the first decimal place.
Financial Results and Forecasts
Internal Growth
Achieved period-on-period increase in DPU for the 21st fiscal period financial results due to such
factors as increase in rent revenue through new property acquisition and the positive impact of
accompanying property taxes being recorded as acquisition costs, and decrease in expenses
related to rent business including depreciation.
Anticipates period-on-period increase in revenue and profits for the 22nd fiscal period due to
new property acquisition in the period, as well as to full-period contribution of property acquired
in the 21st fiscal period, but expects DPU to be JPY 6,000 in the face of dilution caused by the
public offering
External Growth
Acquired beneficiary interest in real estate of Otemachi 1-6 Plan (tentative name) (land with land
leasehold) in March 2012 for JPY 3.6 billion (excluding acquisition costs and other expenses) by
taking advantage of sponsors' pipelines, followed by acquisition of Yakuin Business Garden
(located in Fukuoka) in August 2012 for JPY 10.9 billion (excluding acquisition costs and other
expenses)
For the moment, keep reinforcing collection and investigation of information from sponsors on
property supply, given the still limited availability of excellent properties in the real estate
transaction market
■Continue focused investment in office properties in the greater Tokyo area
Occupancy rate at end of period
End of 21st fiscal period: 94.1% (down 1.5%p from 20th fiscal period, up 1.8%p from forecast)
End of 22nd fiscal period (forecast): 93.7% (down 0.4%p from the 21st fiscal period)
*Occupancy rate at end of 22nd fiscal period is based on confirmed contract status alone,
reflecting newly concluded contracts and already notified cancellations, etc.
■Occupancy at end of 21st fiscal period decreased period-on-period due to the impact of tenant
cancellations at some properties
Tenant relocations is getting activated for the moment, but occupancy rate at end of 22nd fiscal
period is expected to decrease slightly, based on currently confirmed contract status
Financial Strategy
Ratio of interest-bearing debts at end of 21st fiscal period (on a unitholders' capital basis): 53.2%
(Ratio of interest-bearing debts is expected to have decreased to 48.5% after public offering)
■Credit ratings: R&I: AA-; S&P: A; and Moody's: A3
■Reduced borrowing costs for the 22nd fiscal period and after by making partial repayment of
borrowings before maturity (June 2012)
Issued additional investment units via public offering in July 2012
Number of units issued: 110,000 (planned), total procured amount: JPY 20.7 billion (planned)
Japan Prime Realty Investment Corporation
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