Expanding Growth Investment Through REIT Bridge and Value-Enhancement Projects

「We have decided to transfer seven residential properties totaling ¥9.9 billion to a private fund funded by domestic investors, giving concrete form to the supply of assets to private funds.」

「In the consolidated fiscal year, in addition to asset transfers by Ichigo Office, we transferred assets benefiting unitholder and shareholder value, totaling ¥30.6 billion, through Ichigo Residence Token No. 1 and private funds, and recorded performance-based fees on asset transfers. We also established a new private fund whose assets under management comprise 7 high-quality newly built residences owned by Ichigo Owners, with a total value of ¥9.8 billion」

「In the first six months, performance-based fees on asset transfers were recorded because, in the first quarter, we transferred assets benefiting unitholder and shareholder value, totaling ¥30.6 billion, to Ichigo Office, Ichigo Residence Token No. 1 and private funds, resulting in higher profit than in the same period of the previous year.」

「In addition, as growth support for Ichigo Office REIT Investment Corporation (security code 8975, hereinafter “Ichigo Office”), which we manage, we have provided Ichigo Office with four office buildings located in central Tokyo and central Fukuoka City, for a total sale price of ¥9.1 billion」

「We aim to create products totaling approximately ¥30 billion during the current fiscal year, including the fifth project.」

「Provided four additional office properties to Ichigo Office REIT Investment Corporation (security code 8975, hereinafter “Ichigo Office”) as sponsor support, for a total sale price of ¥9.1 billion.」

「In the second quarter, we provided Ichigo Hotel with 5 hotels, including Ichigo-branded lifestyle hotels, and subscribed for approximately ¥1.5 billion of new investment units through a third-party allotment.」

「As growth support contributing to the maximization of unitholder value, we sold 5 properties, including our branded hotels “THE KNOT SAPPORO” and “HOTEL THE KNOT YOKOHAMA,” to Ichigo Hotel for total consideration of ¥15.0 billion.」

「Going forward, as sponsor, we will actively support the investment corporations through initiatives including the provision of high-quality properties, the use of bridge funds and the enhancement of the value of their owned assets through the value-add business, while managing them from the perspective of unitholders to further enhance unitholder value.」

「Real estate acquisitions and sales are progressing smoothly. During the cumulative third-quarter period, sales totaled ¥48.6 billion, while acquisitions totaled ¥37.3 billion.」

「During the period, we also continued to acquire high-quality properties for the J-REITs we manage. In the first quarter, Ichigo Office acquired an office property for approximately ¥3.84 billion and Ichigo Hotel acquired a hotel for ¥670 million, and Ichigo Hotel also decided to acquire a hotel for ¥2.2 billion.」

「Acquisitions and sales continued to progress steadily in the first quarter. Against this backdrop, real estate sales totaled ¥10.8 billion and acquisitions totaled ¥11.6 billion in the first quarter.」

「In the fourth quarter, to support the growth of Ichigo Office, we established a bridge fund and transferred to it 4 office buildings located in Chiyoda-ku, Tokyo, and Hakata-ku, Fukuoka, for total consideration of ¥12.3 billion.」

「Against this backdrop, real estate sales totaled ¥12.4 billion and acquisitions totaled ¥25.5 billion in the third quarter.」

「In particular, investor demand has continued for rental housing, which offers greater earnings stability, and trading activity has also increased at the Company. Cumulative sales through the third quarter, primarily of rental housing, totaled ¥37.9 billion, while acquisitions totaled ¥28.7 billion.」

「In particular, investor demand has continued for rental housing, which offers greater earnings stability, and trading activity has also increased at the Company. During the first half, sales, primarily of rental housing, totaled ¥20.5 billion, while acquisitions totaled ¥21.0 billion.」

「In the first quarter, sales, primarily of rental housing, generated revenue of ¥16.7 billion, while acquisitions totaled ¥10.3 billion.」

「Amid an active real estate market, we continued to acquire high-quality properties through new initiatives and creative real estate acquisition methods. By the third quarter, cumulative acquisitions totaled ¥54.3 billion and cumulative sales revenue from disposals totaled ¥57.8 billion.」

「We continued to acquire high-quality properties through new initiatives and creative real estate acquisition methods. In the second quarter, acquisitions totaled ¥24.9 billion and sales revenue from disposals totaled ¥13.3 billion.」

「As in the previous period, we continued to acquire high-quality properties through new initiatives and creative real estate acquisition methods. In the first quarter, acquisitions totaled ¥20.4 billion and sales revenue from disposals totaled ¥19.5 billion.」

「Acquisitions during the period totaled ¥50.8 billion, while sales revenue from disposals totaled ¥58.6 billion.」

「Amid an active domestic real estate transaction market, we continued to acquire high-quality properties through new initiatives and creative acquisition methods, as in the previous period. We also continued to sell highly profitable properties after enhancing their value through our strength in value-add real estate.」

「Amid an active domestic real estate transaction market, we continued to acquire high-quality properties through new initiatives and creative acquisition methods, as in the previous period. We also continued to sell highly profitable properties after enhancing their value through our strength in value-add real estate.」

「Specifically, in addition to the M&A of 株式会社セントロ (hereinafter “セントロ”), which operates an income-producing real estate business primarily in central Tokyo, we acquired logistics and self-storage properties as new asset types. Through the steady acquisition of real estate that could become future sources of earnings, cumulative acquisitions for the period totaled ¥54.3 billion and cumulative sales totaled ¥23.6 billion.」

「Amid a heated domestic real estate transaction market, we continued to steadily acquire real estate during the period through creative acquisition methods, including the M&A of 株式会社セントロ (hereinafter “セントロ”), which operates an income-producing real estate business primarily in central Tokyo, and entry into new markets. In selling properties, we recovered capital and generated gains on sales by completing transactions with high profit margins.」

「On 3 July 2017, through the silent partnership of 合同会社カルぺ・ディエム, we acquired all shares of 株式会社セントロ, which operates a value-add business.」

「・ Expansion of growth investment (value-add projects and REIT bridge projects (Note 2))」

「To achieve the medium-term management plan, we sold properties to Ichigo Office REIT Investment Corporation (securities code 8975, hereinafter “Ichigo Office REIT”) and Ichigo Hotel REIT Investment Corporation (securities code 3463, hereinafter “Ichigo Hotel REIT”), and acquired REIT bridge and value-add projects to support their growth.」

「To achieve the medium-term management plan, we sold properties to Ichigo Office REIT Investment Corporation (securities code 8975, hereinafter “Ichigo Office REIT”) and Ichigo Hotel REIT Investment Corporation (securities code 3463, hereinafter “Ichigo Hotel REIT”), and acquired REIT bridge projects (Note 3) and value-add projects (Note 4) to support their growth.」

「To achieve the medium-term management plan, we sold properties to Ichigo Office REIT Investment Corporation (securities code 8975, hereinafter “Ichigo Office REIT”) and Ichigo Hotel REIT Investment Corporation (securities code 3463, hereinafter “Ichigo Hotel REIT”), and acquired REIT bridge projects (Note 1) and value-add projects (Note 2) to support their growth.」

「To achieve the medium-term management plan, we sold properties to Ichigo Office REIT Investment Corporation and acquired REIT bridge and value-add projects to support the growth of Ichigo Hotel REIT Investment Corporation.」