COMFORIA RESIDENTIAL REIT, INC
~Investor Presentation~ 7th Fiscal Period (ended Jan 2014)
As of March 2014 Table of Contents
1. Executive Summary 6. Appendix Executive Summary - 4 - P&L: 7th Period -25- 2. 7th Fiscal Period Results Balance Sheet: 7th Period -26- Financial Results for the 7th Fiscal Period - 6 - 8th ~ 9th Period Performance Forecast -27- Stable Occupancy Rate - 7 - CRR Characteristics -28- Fluctuations in Rent Rate - 8 - “COMFORIA” Series -29- External Growth (7th FP acquisitions) - 9 - Portfolio Policy -30- Internal Growth -10- “COMFORIA” Series Representative Properties -31- Financial Management -11- Portfolio Map (as at Feb’14 end) -32- 3. Offering Highlights Portfolio List -33- Offering Summary -13- Appraisal Value -36- New Acquisitions from Public Offering -14- Occupancy and Rent Rates -39- Offering Results -15- Overview of Portfolio -40-
th 4. Future Strategy Status of Interest-bearing Debt (as at 7 FP end) -42- Unitholders (as at 7th FP end) -43- External Growth Targets -17- Historical Unit Price -44- Growth Strategy -18- # of Households and Housing Starts (rental) External Growth through Proprietary Sources -19- in Tokyo 23 Wards -45- Sponsor Pipeline -20- Governance -46- Financial Strategy -21- Overview of CRR -47- 5. Performance Forecast Overview of Asset Management Company -48- Performance Forecast -23-
2 1. Executive Summary
3 Executive Summary
7th Fiscal Period Exceeded previous period results and projections through stable management and strategic acquisitions
External growth Acquired 2 properties through bank loans
Internal growth Kept occupancy rates at above 95%
Financial strategy Lengthened debt maturity and fixed interest rates
7th FP projected DPU: ¥16,200 7th FP actual DPU: ¥16,813 (+ ¥613)
Offerings and acquisitions Achieved initial post-IPO target of over ¥100Bn asset size from public offering in Feb’14
Asset size ¥111.9Bn (total 77 properties) after acquiring 22 properties (¥37.3Bn)
Ratio of assets in Tokyo 23 Wards Increased to 94.6%
Appraisal LTV Lowered LTV to 49.0%
Future approach Build up a portfolio capable of paying out stable distributions over the medium term
Portfolio target Aim to achieve ¥200Bn asset size comprised of primarily assets in the Tokyo 23 Wards within the next 5 ~ 6 years
Promptly reach ¥130Bn asset size target as the stepping stone for achieving the ¥200Bn target Action plan Make selective investments in other major cities while focusing on purchasing assets in the Tokyo 23 Wards Strengthen financial platform by continuing to extend debt maturity and fixed interest payables.
Allocate dividends exceeding projected levels in the short term mainly attributed to positive results expected from external growth
8th FP projected DPU: ¥16,000 8th FP forecast revision: ¥16,600 (+ ¥600)
4 2. 7th Fiscal Period Results
5 Financial Results for the 7th Fiscal Period
Surpassed initial profit projections through earnings growth and cost reduction measures
Comparable projection (7th FP Sep’13) vs. actual
Profit/loss from Revenue from leasing business Operating income Ordinary income leasing business Operating expenses Current net income Revenue from Other revenue from Leasing business Interest payable, (non-leasing leasing business leasing business expenses etc. business) Projection (Sep'13) ¥2,575Mn ¥72Mn ¥966Mn ¥285Mn ¥302Mn ¥1,091Mn Actual ¥2,581Mn ¥92Mn ¥963Mn ¥282Mn ¥294Mn ¥1,132Mn Differential + ¥6Mn + ¥19Mn △ ¥3Mn △ ¥3Mn △ ¥7Mn + ¥41Mn Basis for change Acquisitions↑ Renewal fees, etc.↑ Leasing fees↓ Mgmt. fees↓ Borrowing costs↓―
Property mgmt. REIT mgmt.
Increased revenue due to new Leasing expenses acquisitions during the interim. Number Borrowing costs were lower than initial were lower than of contract renewals exceeded initial estimates initial estimates expectations.
+ ¥167 + ¥48
+ ¥388 Actual DPU:
¥16,813 Projected DPU (Sep’13):
¥16,200
6 Stable Occupancy Rate
~Actualized stable income characteristic of residential assets~ Occupancy rates surpassed previous FP results on a monthly and yearly basis. Recent occupancy levels exceeded 95%
5th FP 6th FP 7th FP
100.0% Total Portfolio Total Portfolio (same month year ago)
95.0%
90.0%
85.0%
Central Tokyo Sub-central Tokyo 100.0% Tokyo Metropolitan Other Major Cities
95.0%
90.0%
85.0%
5th FP end Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13 Jan'14 Total Portfolio 96.1% 95.3% 96.1% 95.2% 94.8% 95.5% 95.9% 95.4% 95.6% 95.8% 95.8% 95.9% 96.2% Central Tokyo 95.0% 94.7% 94.6% 93.2% 93.6% 94.5% 95.2% 94.1% 93.8% 94.6% 95.2% 95.4% 95.7% Sub-central Tokyo 96.7% 95.6% 97.1% 96.6% 95.6% 96.3% 96.5% 96.4% 97.1% 96.8% 96.6% 96.3% 96.3% Tokyo Metropolitan Area 96.9% 94.9% 95.9% 93.1% 94.3% 94.5% 94.4% 93.3% 93.6% 92.9% 91.1% 94.3% 95.1% Other Major Cities ------93.2% 96.1% 96.2% 97.0% 98.1%
3rd FP end Feb'12 Mar'12 Apr'12 May'12 Jun'12 Jul'12 Aug'12 Sep'12 Oct'12 Nov'12 Dec'12 Jan'13 Total Portfolio 95.5% 94.3% 94.5% 92.1% 91.7% 92.7% 93.1% 93.8% 94.0% 94.3% 94.3% 94.8% 96.1% (same month year ago)
7 Fluctuations in Rent Rate
Portfolio rent rate seems to be bottoming out as the number of leases with higher contract rent have risen
Historical rent rates (7th FP) Rent fluctuation from tenant change and renewals (5th ~ 7th FP)
(yen) 14,000 Portfolio (53 assets) at beginning of period Total Portfolio (incl. 2 interim acquisitions) Change of tenants (# of contracts basis) # of rate 100% MoM* △0.05% + 0.05% △0.09% △0.10% + 0.01% increase # of rate # of rate 18.5% increase increase 13,000 80% No change 27.0% 28.7% 14.6% No change No change 60% 13.8% 15.7% Acquired COMFORIA Acquired COMFORIA SHIN-OSAKA # of rate SUMIDA-TACHIBANA 40% # of rate 12,000 decrease # of rate decrease 67.0% decrease 20% 59.3% 55.5%
0% 11,000 5th Period 6th Period 7th Period
Lease renewals (# of contracts basis) 100%
10,000 80% 6th FP Rent (month/tsubo) Aug’13 Sep’13 Oct’13 Nov’13 Dec’13 Jan’14 end Total Portfolio 60% (incl. 2 interim 12,985 12,977 12,720 12,718 12,706 12,655 12,656 No change No change No change acquisitions) 98.4% 98.5% 99.2% Portfolio (53 assets) at 40% 12,985 12,977 12,970 12,976 12,964 12,951 12,952 beginning of period # of rate # of rate # of rate *Note: MoM or “month-over-month” is an asset comparison of the total portfolio after acquisitions against the portfolio at the 20% beginning of the period. decrease decrease decrease 1.6% 1.5% 0.8% Rent rates continue to plateau albeit a mere 0.3% YoY decrease in 0% all properties except for 2 properties acquired in the 7th FP. 5th Period 6th Period 7th Period
8 External Growth (7th FP acquisitions)
Building up the portfolio while placing consideration on portfolio yield Drive continual external growth utilizing acquisition leads created by the asset management company
COMFORIA SHIN-OSAKA (acquired Sep 4, 2013) COMFORIA SUMIDA-TACHIBANA (acquired Dec 27, 2013)
地図データ@2014 Google. ZENRIN 地図データ@2014 Google. ZENRIN 1-21-24 Higashinakajima, Location Location 5-18-5 Tachibana, Sumida-ku, Tokyo Higashiyodogawa-ku, Osaka-shi, Osaka 3 minute walking distance from Shin-Osaka 6 minute walking distance from Omurai Nearest train station station on the JR Tokaido Honsen & Sanyo Nearest train station station on the Tobu Kameido Line Shinkansen Acquisition price ¥2,400,000,000 Acquisition price ¥938,000,000 Appraisal value ¥2,480,000,000 Appraisal value ¥977,000,000 Appraisal NOI ¥138,476,000 Appraisal NOI ¥52,937,000 Appraisal NOI Yield 5.8% Appraisal NOI Yield 5.6% Rentable units 133 units Rentable units 56 units Occupancy (Jan’14 end) 98.1% Occupancy (Jan’14 end) 90.0% Acquisition date Sep 4, 2013 Acquisition date Dec 27, 2013
9 Internal Growth
Actively pursue incidental revenue from non-core operations while enacting cost-cutting measures to augment internal growth Continued efforts to boost occupancy rate by aligning market demand with lease up activities
Mobile antenna installation for additional income LED installation geared to reduce operating costs
Commenced dialogue with each mobile carrier to install Installed LED light fixtures in the common area of 8 properties antennas at CRR properties as a measure to capture during the 6th FP and another 6 properties during the 7th FP as additional revenue. part of an effort to reduce electricity costs. Supplemented income by roughly ¥5Mn per year by installing antennas at 3 properties during the 7th FP.
【COMFORIA HARAJUKU】 【COMFORIA MACHIYA】 【COMFORIA TOYOSU】 【COMFORIA SHIMOKITAZAWA】
Changed “use class” of properties to maximize lease-up
Converted office space to nursery schools in areas with high demand for such facilities as a joint effort with the asset manager and property manager. Completed lease-up upon changing “use class” of respective property Scheduled to launch certified nursery school in Apr’14
10 Financial Management
Diversification of debt maturity (7th FP end)
Extended debt maturity and diversified repayment dates (million yen) New drawdowns during 7th FP 25,000 Refinanced loans and debt portions with extended maturity Existing loans 20,000 Maturity extension (¥12,495Mn, 3 year extension) Refinancing 15,000 (A. ¥4,650Mn, 4.5 yrs) 12,495 (B. ¥1,350Mn, 6 yrs) 9,925 10,000
6,000 6,300 4,650 5,000 2,000 1,000 1,350 0 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Outstanding debt balance by lender (7th FP end)
Tokyo Tomin Bank Loan amount Financial institution Ratio 1,500 Mitsubishi UFJ Trust and Banking (million) Sumitomo Mitsui Mitsubishi UFJ Trust and Banking ¥9,060 20.7% Banking Corporation Mitsubishi UFJ Trust Sumitomo Mitsui Trust Bank 4,485 and Banking 9,060 Sumitomo Mitsui Trust Bank ¥7,495 17.1% Development Bank of Japan Development Bank of Japan ¥7,060 16.1% The Bank of Tokyo- Mitsubishi UFJ Mizuho Bank ¥7,060 16.1% 7,060 Mizuho Bank Sumitomo Mitsui Trust The Bank of Tokyo-Mitsubishi UFJ ¥7,060 16.1% Bank The Bank of Tokyo-Mitsubishi UFJ 7,495 Sumitomo Mitsui Banking Corporation ¥4,485 10.3% Mizuho Bank Sumitomo Mitsui Banking Corporation Tokyo Tomin Bank ¥1,500 3.4% 7,060 Development Bank of Japan Tokyo Tomin Bank Total ¥43,720 7,060
11 3. Offering Highlights
12 Offering Summary
Launched public offering on Jan 10, 2014 and acquired new assets on Feb 4, 2014
Offering summary Selective investments in mainly Tokyo 23 Wards
Launch date : 10 Jan 2014 (FRI) 7th FP end Acquisitions Post-PO Pricing date : 22 Jan 2014 (WED) Schedule Payment date : 3 Feb 2014 (MON) Total asset size ¥74.5Bn ¥37.3Bn ¥111.9Bn Assets in Tokyo Delivery date : 4 Feb 2014 (TUE) ¥69.5Bn ¥36.3Bn ¥105.8Bn Issue price / offer price ¥712,530 / ¥688,413 23 Wards Ratio of Tokyo Subscription : 31,900 units 93.3% 97.1% 94.6% 23 Ward assets Units offered Overallotment : 1,595 units (OA: 5.0%) Total : 33,495 units Subscription : ¥22.73Bn Offering amount* Overallotment : ¥1.14Bn Total : ¥23.87Bn
*Note: Total offering proceeds amounted to ¥22,925Mn following a third-party allotment of 1,401 units (¥964Mn) on Feb 26, 2014 (yen) Trading volume (units) 770,000 CRR 2,000 Tokyo Stock Exchange REIT Index Tokyo Stock Exchange REIT Residential Index 760,000 Pricing date ¥747,000 750,000 1,500 Launch date ¥735,000 740,000
730,000 1,000
720,000
710,000 500
700,000
690,000 0 1/7 1/8 1/91/101/141/151/161/171/201/211/221/231/241/271/281/291/301/31 *Note: Closing prices of TSE REIT Index and TSE REIT Residential Index on CRR’s launch date (Jan 10, 2014) were normalized to align with CRR’s closing unit price of ¥735,000.
13 New Acquisitions from Public Offering
21 out of 22 assets are located in the Tokyo 23 Wards
56 57 58 59 60 61
COMFORIA NIHONBASHININGYOCHO COMFORIA LIV SHIBAURA CANAL COMFORIA KUDAN NORTH COMFORIA SHINKAWA COMFORIA AKASAKA COMFORIA MITA EAST # of units 36 # of units 36 # of units 59 # of units 40 # of units 111 # of units 95
62 63 64 65 66 67
COMFORIA UENOHIROKOJI COMFORIA KASUGATOMISAKA COMFORIA HONKOMAGOME COMFORIA MORISHITA COMFORIA LIV KIBAKOEN COMFORIA MEGURO CHOJAMARU
# of units 37 # of units 106 # of units 36 # of units 75 # of units 60 # of units 71
68 69 70 71 72 73
COMFORIA NISHIMAGOME COMFORIA KITASANDO COMFORIA YOYOGIUEHARA COMFORIA SASAZUKA COMFORIA SHINJUKUGYOEN II COMFORIA ICHIGAYAYANAGICHO
# of units 52 # of units 144 # of units 51 # of units 89 # of units 65 # of units 69
74 75 76 77
COMFORIA HIGASHIIKEBUKURO COMFORIA HIGASHIIKEBUKURO COMFORIA KAGURAZAKA EAST COMFORIA SHINKOYASU # of units 29 # of units 90 # of units 48 # of units 36
14 Offering Results
Enhanced overall portfolio quality and earning stability by acquiring assets located mainly in the Tokyo 23 Wards
Ratio of Tokyo 23 Earning stability Ward assets Increased ratio of assets located in the Tokyo 23 Wards 7thFP end Expanded asset size through strategic acquisitions 93.3% Increased ratio of single & compact type rooms + 94.6% Portfolio quality After acquisitions 97.1% Shortened average building age Central Tokyo Sub-central Tokyo Tokyo Metropolitan Other Major Cities Shortened average walking distance to the closest station Ratio of assets by avg. walking distance Pre-offering Post-offering Assets acquired (Jan’14 end) (Feb’14 end) 7thFP end 5.2 min # of properties 55 22 77 5.0 min Acquisition ¥74,563Mn ¥37,392Mn ¥111,955Mn + price After acquisitions 4.6 min Appraisal value ¥83,856Mn ¥38,974Mn ¥122,830Mn
Within 5 min Within 5-10 min Over 10 min Unrealized gain ¥9,292Mn ¥1,582Mn ¥10,874Mn Ratio of Single/Compact units to total Avg. appraisal 5.78% 5.31% 5.62% NOI yield 7thFP end Avg. building 82.1% 7.5 years 7.0 years 7.4 years 84.3% age + Issued units 67,361 units ― 100,662 units After acquisitions NAV per unit* 89.5% 625,251 ― 650,120* Single Compact (post-distribution) Family Large Stores *Note: NAV (post-distribution) = Total capital + unrealized gain/loss. Figures following the public offering (Feb’14 end) are estimates.
15 4. Future Strategy
16 External Growth Targets
New growth phase: achieve target milestone of ¥200Bn asset size and stable distributions
3rd Phase Steps towards ¥200Bn asset size target 1st Phase 2nd Phase Portfolio Generally retain 90% ratio of Tokyo 23 Ward assets Advance towards Preliminary phase towards IPO ¥100Bn asset size Internal growth Keep average occupancy above 95% level
Finance policy Maintain LTV between 50%~55%
DPU target (ongoing basis) Over ¥16,000 per unit
Promptly reach initial target of ¥130Bn asset size ¥200Bn
¥130Bn
¥111.9Bn Continue pursuing growth opportunities
712 736 745 612 559
359 366 374
155
Aug'10 1st Period 2nd Period 3rd Period 4th Period 5th Period IPO Date Sep'13 Dec'13 Mar'11 Jul'11 Jan'12 Jul'12 Jan'13 Feb'13 Feb'14 Within 1-2yrs Within 5-6yrs
17 Growth Strategy
Aim to promptly achieve ¥130Bn asset target as stepping stone for ¥200Bn target
Outlook &policy Acquire assets while focusing on portfolio earnings Property market trends Investment policy Prime properties in Tokyo 23 Wards: downward Aim to maintain over 90% ratio of assets in sloping cap rates continue Tokyo 23 Wards Prime properties in other major cities: more Make selective investments in prime competitive yields compared to Tokyo properties properties located in other major cities albeit declining cap rates
Use sponsor pipeline to acquire new sponsor-developed properties and asset External warehousing functions growth Tap proprietary sources for new growth Utilize synergy with TLC Group Internal Maintain over 95% average occupancy rate growth Strategic investments to preserve competitive edge
Financial Keep LTV within 50~55% range strategy Approx. ¥11Bn surplus cash available until 55% LTV threshold (as at Mar’14 end)
Distribution target: Aim to surpass DPU (ongoing basis) levels in the short term primarily from results of external growth measures
18 External Growth through Proprietary Sources
Continue leveraging the asset manager’s proprietary channels to drive external growth while placing consideration on portfolio yield COMFORIA KITAHORIE will be acquired through a lead provided by a sponsor group affiliate, Tokyu Livable, Inc.
Obtained RoFR COMFORIA SHINSAKAE COMFORIA KITAHORIE (ACROSS Itabashi Kuyakusho-mae) (to be acquired Mar 20, 2014) (to be acquired Mar 28, 2014)
地図データ@2014 Google. ZENRIN 地図データ@2014 Google. ZENRIN 地図データ@2014 Google. ZENRIN
2-28-18 Shinsakae, Naka-ku, Nagoya- 3-12-2 Kitahorie, Nishi-ku, Osaka-shi, Godokaisha Ao Akua-Elua (anonymous partnership) Location Location shi, Aichi Osaka 2-minute walk from Nishinagahori Non-recourse loan 7-minute walk from Shinsakae-machi Nearest train Nearest train Station on the Osaka Municipal Real estate TBI ¥2,755Mn Station on the Nagoya Municipal station station Subway Sennichimae Line and ¥3,993Mn Subway Higashiyama Line Nagahori Tsurumiryokuchi Line Anonymous partnership equity Acquisition Acquisition ¥1,238Mn ¥1,653,400,000 ¥1,010,000,000 price price # of properties / units 1 property / 104 units Appraisal value ¥1,730,000,000 Appraisal value ¥1,050,000,000 Appraisal NOI ¥98,257,000 Appraisal NOI ¥57,338,000 Total CRR contribution ¥184.5Mn Appraisal NOI Appraisal NOI 5.9% 5.7% Sign-off date of Silent Yield Yield Nov 27, 2013 Partnership Agmt. Rentable units 144 units Rentable units 73 units Occupancy Occupancy Total appraisal value ¥3,900Mn 98.0% 94.8% (Feb’14 end) (Feb’14 end) Avg. NOI yield (appraisal base) 5.5% Acquisition date Mar 20, 2014 Acquisition date Mar 28, 2014
19 Sponsor Pipeline
Continue relationship management with sponsors in order to capture further opportunities for acquisitions Enhance overall portfolio quality by acquiring sponsor-developed assets Currently, there are 6 on-going developments in the Tokyo 23 Wards
Sponsor-developed properties
Location # of units
Iwatocho, Shinjuku-ku, Tokyo 46
Taihei, Sumida-ku, Tokyo 46
Kamata, Ota-ku, Tokyo 203
Kitashinagawa, Shinagawa-ku, Tokyo 97
Aobadai, Meguro-ku, Tokyo 123
Higashikanda, Chiyoda-ku, Tokyo Under planning phase Nishi-ku, Osaka-shi, Osaka
Sponsor-affiliated properties*
Location # of properties # of units
Tokyo 23 Wards 5 289
Kansai region 2 175 Portfolio property
Sponsor development *Note: “Sponsor’s assets” refers to assets owned or scheduled for purchase by the sponsor as well as any assets owned by SPCs where the asset management is delegated to the sponsor group affiliate. *Note: No commitments have been made by CRR to purchase any of the above properties.
20 Financial Strategy
Major financial indicators
Post- Mar’14 Post- Mar’14 7th FP end 7th FP end offering forecast offering forecast
Fixed-interest debt Appraisal LTV 52.1% 49.0% 50.2% 84.0% 88.4% 84.3% ratio
Total assets-based 54.4% 50.1% 51.3% Avg. maturity 3.5 yrs 3.8 yrs 3.6 yrs LTV*
Long-term debt 97.7% 100.0% 93.8% Avg. interest rate 1.02% 0.91% 0.88% ratio *Note: Calculated by adding up the respective changes in total equity, borrowings and security deposits after the offering and for the Mar’14 forecast to the total assets at 7th FP end. Debt maturity profile (as at Feb’14 end) Outstanding debt balance by lender (as at Feb’14 end) Extended maturity through refinancing during the 7th FP Added 5 new lenders to syndicate (12 total lenders) and new borrowings at the time of public offerings The 77 Bank The Bank of Fukuoka 500 (million yen) 1,000 25,000 The Daishi Bank The Norinchukin Bank Loans procured at the time of offering 500 1,500 Existing loans Mizuho Trust & Banking Mitsubishi UFJ Trust and 2,000 Banking 20,000 11,060 Tokyo Tomin Bank 1,500
15,000 Sumitomo Mitsui Banking Corporation 12,495 4,685
9,925 10,000 Development Bank of Japan Sumitomo Mitsui Trust Bank 9,060 9,495 7,000 7,500 6,300 5,500 5,500 5,000 4,650 Mizuho Bank 9,460 1,350 The Bank of Tokyo-Mitsubishi UFJ 0 9,460 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period
21 5. Performance Forecast
22 Performance Forecast
8th FP DPU forecast (¥16,600) and 9th FP DPU forecast (¥16,400) attributed to new acquisitions, borrowings and impacts from the sales tax hike Comparable performance (7thFP actual, 8thFP forecast, 9thFP forecast)
Profit/loss from Revenue from leasing business Operating income Ordinary income leasing business Operating expenses Current net income Revenue from Other revenue from Leasing business Interest payable, (non-leasing leasing business leasing business expenses etc. business) 7thFP actual ¥2,581Mn ¥92Mn ¥963Mn ¥282Mn ¥294Mn ¥1,132Mn 8thFP forecast ¥3,844Mn ¥161Mn ¥1,546Mn ¥377Mn ¥409Mn ¥1,671Mn 9thFP forecast ¥3,886Mn ¥131Mn ¥1,516Mn ¥447Mn ¥402Mn ¥1,650Mn Differential (7thFP actual vs. 8thFP ¥1,262Mn ¥69Mn ¥583Mn ¥95Mn ¥114Mn ¥538Mn forecast) Mgmt. fees↑ Acquisitions↑ Acquisitions↑ Acquisitions↑ New borrowings↑ Basis for change Sales tax↑ Comparable forecast th th (8thFP initial projection vs. 8thFP forecast) DPU forecast (8 FP ~ 9 FP)
+ ¥220
+ ¥200 ▲ ¥690
+ ¥270 + ¥70
th + ¥330 8 FP 9th FP Revised Revised DPU 8th FP Differential of DPU Lower issuing forecast: Sales tax hike & rent income from Lower leasing Lower borrowing forecast: Initial DPU New acquisitions costs among increased asset newly acquired fees cost projection others manager fees ¥16,600 properties (Jan’14): ¥16,400 ¥16,000
23 6 ．Appendix
24 P&L: 7th Period
6th Fiscal Period 7th Fiscal Period Period-on-period change (period ending Jul 2013) (period ending Jan 2014) Operating revenue 2,586,938 2,673,839 86,901 Income from leasing business 2,486,494 2,581,691 95,197 Other income from leasing business 97,321 85,618 ▲ 11,703 Income from silent partnership 3,122 6,529 3,406 Operating expense 1,185,349 1,246,173 60,823 Leasing business expenses 946,464 963,688 17,223 Asset manager's fee 147,147 169,197 22,049 Other operating expenses 91,737 113,287 21,549 Operating profit 1,401,588 1,427,666 26,077 Non-operating income 319 405 85 Non-operating expense 309,310 294,629 ▲ 14,680 Interest payable 203,349 218,737 15,387 Others 105,960 75,892 ▲ 30,067 Ordinary profit 1,092,597 1,133,442 40,844 EBIT 1,092,597 1,133,442 40,844 Income tax 974 934 ▲ 40 Income tax 976 932 ▲ 44 Income taxes deferred ▲ 224 Net income 1,091,622 1,132,507 40,885 Deferred income at beginning of term 0 38 37 Unappropriated retained earnings 1,091,623 1,132,545 40,922
Rent NOI 2,049,631 2,139,580 89,948
Total distributions 1,091,585 1,132,540 40,955 Issued units 67,361 units 67,361 units － DPU 16,205 yen 16,813 yen 608 yen
25 Balance Sheet: 7th Period
6th Fiscal Period 7th Fiscal Period Period-on-period change (as at Jul 31, 2013) (as at Jan 31, 2014) 《Assets》 (thousand yen) Current assets 4,216,069 3,926,683 ▲ 289,385 Cash and bank deposits 1,644,280 1,241,080 ▲ 403,200 Cash and bank deposits in trust 2,532,542 2,654,711 122,169 Other current assets 39,245 30,891 ▲ 8,353 Non-current assets 72,958,619 76,355,670 3,397,050 Tangible assets 72,342,164 75,474,327 3,132,163 Properties in trust 72,342,164 75,474,327 3,132,163 Intangible assets 265,279 265,279 － Other intangible assets 5,521 4,910 ▲ 610 Investments and other assets 345,654 611,153 265,498 Deferred assets 85,113 72,591 ▲ 12,521 Total assets 77,259,801 80,354,946 3,095,144 《Liabilities and Net Assets》 Current liabilities 6,605,844 1,673,974 ▲ 4,931,870 Short term loans payable 6,000,000 1,000,000 ▲ 5,000,000 Account payables 133,273 117,068 ▲ 16,204 Other account payables 17,825 76,431 58,605 Accrued expenses 55,142 56,398 1,255 Income taxes payable, etc. 700 683 ▲ 17 Advance received 398,509 419,426 20,916 Others 393 3,967 3,573 Non-current liabilities 35,532,208 43,553,916 8,021,708 Long term loans payable 34,720,000 42,720,000 8,000,000 Tenant leasehold and security deposits in trust 812,208 833,916 21,708 Total liabilities 42,138,053 45,227,891 3,089,837 Unitholders' equity 35,067,459 35,108,382 40,922 Unitholders' capital 33,975,836 33,975,836 － Surplus 1,091,623 1,132,545 40,922 Valuation and translation adjustments 54,289 18,672 ▲ 35,616 Total net assets 35,121,748 35,127,054 5,306 Total liabilities and net assets 77,259,801 80,354,946 3,095,144
26 8th ~ 9th Period Performance Forecast
(million yen) 7th Fiscal Period 8th Fiscal Period 9th Fiscal Period (period ending Jan 2014) (period ending Jul 2014) (period ending Jan 2015) Previous period Previous period Current forecast Current forecast Actual results forecast Differential forecast Differential (Mar'14) (Mar'14) (10-Jan-'14) (10-Jan-'14)
# of operating days 184 days 181 days 184 days
Income from leasing business 2,673 3,931 4,005 74 3,922 4,018 96 Income from leasing business 2,581 3,768 3,844 75 3,790 3,886 96 Other income from leasing business 92 162 161 ▲ 1 131 131 0
Leasing business expenses 963 1,506 1,546 40 1,474 1,516 42 Leasing business expenses 421 712 731 19 665 683 17 Taxes and public dues 112 125 125 0 138 138 0 Depreciation expense 429 668 689 20 669 694 24 Profit/loss from leasing business 1,710 2,425 2,459 34 2,448 2,501 53
Other operating expenses 282 376 377 1 435 447 11 Operating profit 1,428 2,048 2,081 32 2,012 2,054 42
Non-operating profit/loss ▲ 294 ▲ 433 ▲ 409 24 ▲ 417 ▲ 402 15 Oridinary profit 1,134 1,614 1,672 57 1,594 1,651 57
Income tax, etc 0 1 1 － 11－ Net income 1,132 1,613 1,671 57 1,593 1,650 57
DPU 16,813 16,000 16,600 600 15,800 16,400 600 Issued units at term end 67,361 units 100,856 units 100,662 units ▲ 194 units 100,856 units 100,662 units ▲ 194 units
# of properties at term end 55 properties 77 properties 79 properties 2 properties 77 properties 79 properties 2 properties Total acquisition price 74,563 111,955 114,618 2,663 111,955 114,618 2,663
27 CRR Characteristics
Main investment target are "COMFORIA" series assets and other investments that utilize the value chain of Tokyu Land Corporation (TLC) Group.
“COMFORIA ” Series Value chain of TLC Group
A high-class rental residence series produced by TLC Group enabling tenants to enjoy urban convenience and smart TOKYU LAND CORPORATION lifestyles <
TOKYU COMMUNITY CORP. Tokyu Livable, Inc.
Comfortable---Key concept of the brand Management of Comprehensive real In principle, TLC Group companies undertake property condominiums and estate marketing management for COMFORIA series properties in buildings intermediary and providing residences that offer comfort Property management brokerage of land and agreements TLC COMFORIA Investment buildings Information on the sale of Management INC. Information on the sale of properties properties Active urban lifestyle Prospective tenant advisory Market information Market information
For tenants to enjoy active urban lifestyles, COMFORIA Tokyu Relocation Co., Ltd. TOKYU E-LIFE DESIGN Inc. series properties are conveniently located primarily in the Tokyo 23 wards Real estate rental Management and operation management, management of senior residence and of long-term-stay hotels nursing homes Smart lifestyle with an emphasis on security Property management Market information agreements COMFORIA series have facilities that enable tenants to Information on the sale of enjoy smart lifestyles with an emphasis on security properties Prospective tenant advisory Market information
28 “COMFORIA” Series
Key concept of the brand
TLC Group companies undertake property management for COMFORIA series properties in providing residences that offer comfort
All images from COMFORIA Ryogoku South
Active urban lifestyle
For tenants to enjoy active urban lifestyles, COMFORIA series properties are conveniently located primarily in the Tokyo 23 wards
COMFORIA Nihonbashi COMFORIA Higashiikebukuro COMFORIA NishiAzabu COMFORIA BunkyoKasuga COMFORIA Misyuku COMFORIA Atago Ningyocho (Chuo-ku, Tokyo) WEST (Toshima-ku, Tokyo) (Minato-ku, Tokyo) (Bunkyo-ku, Tokyo) (Setagaya-ku, Tokyo) (Minato-ku, Tokyo)
Smart lifestyle with an emphasis on security
COMFORIA series have facilities that enable tenants to enjoy smart lifestyles with an emphasis on security
Security camera Dimple key CS antenna
29 Portfolio Policy
Investment Area
Maintain over 80% investment ratio of assets in “Central Tokyo”, “Sub-central Tokyo” and “Tokyo Metropolitan areas”, where there is strong potential demand for rental residences. Investment ratio Category Investment Area (acquisition price base) Chiyoda-ku, Chuo-ku, Minato-ku, Central Tokyo 5 major wards Shinjuku-ku, and Shibuya-ku Rental residences Sub-central Dense residential districts Other Tokyo wards (excluding above) Tokyo outside of the 5 major wards 80%～100% Tokyo Dense residential districts in All other areas within Tokyo Metropolitan all other Tokyo Metropolitan Metropolitan boundaries expecting area areas strong demand Over 80% Other major Dense residential districts in ordinance-designated cities 0%～20% cities
(Note 1): Investment ratio is based on acquisition price. In terms of land with limited property rights, calculations are based on the area where the parcel exists.
Investment Target
Primary target: Maintain over 80% investment ratio of “Rental Residences” generating stable earnings. Sub-target: “Operational Rental Residences” with services likely to attract demand (i.e. senior residences, serviced apartments and student apartments.
Investment Asset Type Investment Targets (acquisition price base) Tokyo area Rental residences 80%～100% Residential properties Operational rental residences 0%～20%
(Note 2): Investment ratio is based on acquisition price. In terms of land with limited property rights, calculations are based on the type of residential Over 80% property built on the parcel.
30 “COMFORIA” Series Representative Properties
41 COMFORIA HIGASHI 26 COMFORIA HARAJYUKU 60 COMFORIA MITA EAST IKEBUKURO WEST
3 Sendagaya, Shibuya-ku, 3 Higashiikebukuro, Location Location Location 4 Shiba, Minato-ku, Tokyo Tokyo Toshima-ku,Tokyo Acquisition Price 3,629,000 (thousand yen) Acquisition Price 3,911,000 (thousand yen) Acquisition Price 3,190,550 (thousand yen)
Land area/GFA 1,476.95 ㎡ / 6,314.63 ㎡ Land area/GFA 1,117.88 ㎡ / 8,296.57 ㎡ Land area/GFA 807.54 ㎡／4,973.31 ㎡
Rentable Units 99 units Rentable Units 155 units Rentable Units 111 units Construction/ Construction/ Construction/ RC/B1-7F RC/13F RC/B1-13F Floors Floors Floors Completion Date February 2005 Completion Date June 2009 Completion Date January 2008
31 Portfolio Map (as at Feb’14 end)
CRR manages assets with superb accessibility located mainly in the Tokyo 23 Wards
Central Tokyo 31 properties
1 COMFORIA NIHONBA SHI NINGY OCHO 18 COMFORIA MINAMIAOYAMA 48 COMFORIA SHIROKANETAKANAWA 61 COMFORIA LIV SHIBAURA CANAL 2 COMFORIA WASEDA 19 COMFORIA MINAMIAOYAMA DEUX 49 COMFORIA NIHONBASHI NINGYOCHO EAST 69 COMFORIA KITASANDO 3 COMFORIA SHIMOOCHIAI 20 COMFORIA NISHIWASEDA 50 COMFORIA ATAGO 70 COMFORIA YOYOGIUEHARA 4 COMFORIA HIGASHINAKANO 24 COMFORIA DAIKANYAMA 56 COMFORIA KUDAN 71 COMFORIA SASAZUKA 14 COMFORIA GINZA EAST 25 COMFORIA HARAJYUKU NORD 57 COMFORIA NIHONBASHININGYOCHO NORTH 72 COMFORIA SHINJUKUGYOENⅡ 15 COMFORIA AZABUDAI 26 COMFORIA HARAJYUKU 58 COMFORIA SHINKAWA 73 COMFORIA ICHIGAYAYANAGICHO 16 COMFORIA SHIBAKOEN 30 COMFORIA MITA NORTH 59 COMFORIA AKASAKA 74 COMFORIA KAGURAZAKA 17 COMFORIA NISHIAZABU 31 COMFORIA SHIBAURA BOWHOUSE 60 COMFORIA MITA EAST
Sub-central Tokyo 40 properties
5 COMFORIA BUNKYOKASUGA 38 COMFORIA MISYUKU 6 COMFORIA ASAKUSAMATSUGAYA 39 COMFORIA GAKUGEIDAIGAKU 7 COMFORIA NISHIOI 40 COMFORIA HIGASHINAKANO DEUX 8 COMFORIA NAKANO 41 COMFORIA HIGASHIIKEBUKURO WEST 9 COMFORIA SHIMOKITAZAWA 43 COMFORIA RYOGOKU DEUX 10 COMFORIA NISHIKAMATA 44 COMFORIA OMORI DEUX 11 COMFORIA OYAMA 45 COMFORIA MACHIYA 12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 51 COMFORIA ASAKUSABASHI 13 COMFORIA KOMAZAWA 52 COMFORIA RYOGOKU SOUTH 21 COMFORIA LIV KOISHIKAWA 53 COMFORIA TOYOSU 22 COMFORIA LIV SENGOKU 55 COMFORIA SUMIDA-TACHIBANA 23 COMFORIA DAIKANYAMAAOBADAI 62 COMFORIA UENOHIROKOJI 27 COMFORIA IKEBUKURO 63 COMFORIA KASUGATOMISAKA 29 COMFORIA LIV RYOGOKUISHIWARA 64 COMFORIA HONKOMAGOME 32 COMFORIA ASAKUSABASHI DEUX 65 COMFORIA MORISHITA 33 COMFORIA OSHIAGE 66 COMFORIA LIV KIBAKOEN 34 COMFORIA HONJOAZUMABASHI 67 COMFORIA MEGURO CHOJAMARU 35 COMFORIA KIYOSUMISHIRAKAWA TROIS 68 COMFORIA NISHIMAGOME 36 COMFORIA MONZENNAKACHO 75 COMFORIA HIGASHIIKEBUKURO EAST 37 COMFORIA HIMONYA 76 COMFORIA HIGASHIIKEBUKURO
Sub-central Tokyo 5 properties
28 COMFORIA LIV KOMAE 42 COMFORIA YOKOHAMAKANNAI 46 COMFORIA LIV ICHIKAWAMYODEN 47 COMFORIA LIV YATSUKA 77 COMFORIA SHINKOYASU
Other major cities 1 property
54 COMFORIA SHIN-OSAKA
Total 77 properties
32 Portfolio List (1)
Nearest Completion Residential Commercial Rentable Gross floor No. Property name Location Transportation Structure/Floors station (walk) date units units units area
Portfolio properties at 7th FP end
1 COMFORIA NIHONBASHI NINGYOCHO Chuo-ku, Tokyo Ningyocho Station on Tokyo Metro Hibiya Line 2 min Feb. 2008 45 - 45 RC/10F 3,021.53㎡
2 COMFORIA WASEDA Shinjuku-ku, Tokyo Ushigome-yanagicho Station on Toei Oedo Line 5 min Apr. 2009 79 - 79 RC/B1-5F 3,080.28㎡
3 COMFORIA SHIMOOCHIAI Shinjuku-ku, Tokyo Shimo-Ochiai Station on Seibu-Shinjuku Line 3 min Mar. 2005 44 - 44 RC/5F 2,726.15㎡
4 COMFORIA HIGASHINAKANO Shinjuku-ku, Tokyo Higashi-Nakano Station on JR Chuo Line Sobu Line 6 min Mar. 2008 37 - 37 RC/7F 1,058.75㎡
5 COMFORIA BUNKYOKASUGA Bunkyo-ku, Tokyo Kasuga Station on Toei Mita Line/Toei Oedo Line 1 min Nov. 2009 80 - 80 SRC/B1-14F 3,198.54㎡
6 COMFORIA ASAKUSAMATSUGAYA Taito-ku, Tokyo Tawaramachi Station on Tokyo Metro Ginza Line 7 min Sep. 2009 62 - 62 SRC/14F 2,264.84㎡
7 COMFORIA NISHIOI Shinagawa-ku, Tokyo Nishi-Oi Station on JR Yokosuka Line 3 min Jan. 2007 59 - 59 RC/4F 1,542.53㎡
8 COMFORIA NAKANO Nakano-ku, Tokyo Araiyakushi-mae Station on Seibu-Shinjuku Line 10 min Jun. 2007 35 - 35 RC/B1-6F 1,935.39㎡
9 COMFORIA SHIMOKITAZAWA Setagaya-ku, Tokyo Shindaita Station on Keio Inokashira Line 5 min Feb. 2005 116 - 116 RC/B1-11F 5,287.18㎡
10 COMFORIA NISHIKAMATA Ota-ku, Tokyo Kamata Station on JR Keihin-Tohoku Line 4 min Feb. 2009 103 - 103 RC/15F 3,358.99㎡
11 COMFORIA OYAMA Itabashi-ku, Tokyo Oyama Station on Tobu Tojo Line 1 min Oct. 2000 94 3 stores 97 SRC・RC/B1-14F 4,793.28㎡
12 COMFORIA KIYOSUMISHIRAKAWA SOUTH Koto-ku, Tokyo Kiyosumi-shirakawa Station on Tokyo Metro Hanzomon Line 7 min Nov. 2006 45 - 45 RC/10F 1,317.22㎡
13 COMFORIA KOMAZAWA Setagaya-ku, Tokyo Komazawa-daigaku Station on Tokyu Den-en-toshi Line 1 min Apr. 2007 37 2 stores 39 SRC/15F 1,695.46㎡
14 COMFORIA GINZA EAST Chuo-ku, Tokyo Hatchobori Station on Tokyo Metro Hibiya Line 2 min Mar. 2005 132 1 store 133 SRC/B1-14F 5,773.48㎡
15 COMFORIA AZABUDAI Minato-ku, Tokyo Roppongi-itchome Station on Tokyo Metro Namboku Line 6 min Feb. 2005 23 1 office 24 RC/B1-4F 1,028.94㎡
16 COMFORIA SHIBAKOEN Minato-ku, Tokyo Shibakoen Station on Toei Mita Line 3 min Dec. 2004 54 - 54 SRC/13F 1,914.13㎡
17 COMFORIA NISHIAZABU Minato-ku, Tokyo Hiro-o Station on Tokyo Metro Hibiya Line 9 min Sep. 2003 21 1 store 22 RC/9F 1,069.77㎡
18 COMFORIA MINAMIAOYAMA Minato-ku, Tokyo Gaiemmae Station on Tokyo Metro Ginza Line 5 min Oct. 2003 23 1 store 24 RC・S/B1-9F 1,763.88㎡
19 COMFORIA MINAMIAOYAMA DEUX Minato-ku, Tokyo Gaiemmae Station on Tokyo Metro Ginza Line 6 min Feb. 2003 6 - 6 RC/8F 487.97㎡
20 COMFORIA NISHIWASEDA Shinjuku-ku, Tokyo Takadanobaba Station on Tokyo Metro Tozai Line 3 min Feb. 2005 60 - 60 SRC・RC/B1-13F 2,971.10㎡
21 COMFORIA LIV KOISHIKAWA Bunkyo-ku, Tokyo Kasuga Station on Toei Mita Line 5 min Nov. 2004 37 - 37 RC/B1-7F 1,015.71㎡
22 COMFORIA LIV SENGOKU Bunkyo-ku, Tokyo Sengoku Station on Toei Mita Line 6 min May. 1989 44 - 44 RC/5F 3,514.75㎡
23 COMFORIA DAIKANYAMAAOBADAI Meguro-ku, Tokyo Shinsen Station on Keio Inokashira Line 8 min Dec. 2005 26 - 26 RC/B1-10F 1,533.95㎡ (Terrace)RC/B1-5F (Terrace) 634.79㎡ 24 COMFORIA DAIKANYAMA Shibuya-ku, Tokyo Ebisu Station on Tokyo Metro Hibiya Line 2 min Jan. 2005 40 1 store 41 (Tower)S・SRC/B1-14F (Tower) 1,632.82 25 COMFORIA HARAJYUKU NORD Shibuya-ku, Tokyo Kita-sando Station on Tokyo Metro Fukutoshin Line 4 min Jul. 2003 8 - 8 RC/B1-6F 1,227.15㎡
26 COMFORIA HARAJYUKU Shibuya-ku, Tokyo Harajuku Station on JR Yamanote Line 4 min Feb. 2005 99 - 99 RC/B1-7F 6,314.63㎡
27 COMFORIA IKEBUKURO Toshima-ku, Tokyo Ikebukuro Station on JR Yamanote Line 5 min Jan. 2005 28 - 28 RC/11F 1,171.21㎡
28 COMFORIA LIV KOMAE Komae-shi, Tokyo Kitami Station on Odakyu Line 7 min Mar. 1990 24 - 24 RC/4F 1,468.30㎡
29 COMFORIA LIV RYOGOKUISHIWARA Sumida-ku, Tokyo Ryogoku Station on Toei Oedo Line 5 min Mar. 2007 47 - 47 RC/11F 1,151.47㎡
30 COMFORIA MITA NORTH Minato-ku, Tokyo Akabanebashi Station on Toei Oedo Line 5 min Feb. 2003 30 - 30 SRC・RC/11F 1,257.94㎡
33 Portfolio List (2)
Nearest Completion Residential Commercial Rentable Gross floor No. Property name Location Transportation Structure/Floors station (walk) date units units units area
Portfolio properties at 7th FP end (continued) Shibaura-futo Station on New Transit Yurikamome 6 min 31 COMFORIA SHIBAURA BOWHOUSE Minato-ku, Tokyo Mar. 2006 75 - 75 RC/15F 4,862.18㎡ Tamachi Station on JR Yamanote Line 11 min 32 COMFORIA ASAKUSABASHI DEUX Taito-ku, Tokyo Asakusabashi Station on JR Chuo Line Sobu Line 8 min Dec. 2007 46 - 46 SRC/13F 1,596.33㎡
33 COMFORIA OSHIAGE Sumida-ku, Tokyo Oshiage Station on Tokyo Metro Hanzomon Line 2 min Oct. 2007 47 - 47 RC/11F 1,369.26㎡
34 COMFORIA HONJOAZUMABASHI Sumida-ku, Tokyo Honjo-azumabashi Station on Toei Asakusa Line 8 min Jan. 2008 48 - 48 RC/9F 1,434.29㎡
35 COMFORIA KIYOSUMISHIRAKAWA TROIS Koto-ku, Tokyo Kiyosumi-shirakawa Station on Tokyo Metro Hanzomon Line 4 min Apr. 2008 50 - 50 RC/9F 1,553.45㎡
36 COMFORIA MONZENNAKACHO Koto-ku, Tokyo Monzen-nakacho Station on Tokyo Metro Tozai Line 7 min Apr. 2008 144 - 144 RC/13F 4,916.04㎡
37 COMFORIA HIMONYA Meguro-ku, Tokyo Gakugei-daigaku Station on Tokyu Toyoko Line 12 min Mar. 2003 28 - 28 RC/6F 2,302.53㎡
38 COMFORIA MISYUKU Setagaya-ku, Tokyo Ikejiri-ohashi Station on Tokyu Den-en-toshi Line 6 min Feb. 2004 56 3 stores 59 RC/14F 2,842.56㎡
39 COMFORIA GAKUGEIDAIGAKU Setagaya-ku, Tokyo Gakugei-daigaku Station on Tokyu Toyoko Line 8 min Apr. 2005 38 - 38 RC/4F 1,919.59㎡
40 COMFORIA HIGASHINAKANO DEUX Nakano-ku, Tokyo Higashi-Nakano Station on JR Chuo Line Sobu Line 2 min Dec. 2009 40 - 40 RC/B1-9F 1,419.08㎡
41 COMFORIA HIGASHIIKEBUKURO WEST Toshima-ku, Tokyo Higashi-ikebukuro Station on Tokyo Metro Yurakucho Line 9 min Jun. 2009 154 1 store 155 RC/13F 8,296.57㎡ Naka-ku, Yokohamashi, COMFORIA YOKOHAMAKANNAI Kannai Station on JR Keihin-Tohoku Line 5 min Jul. 2009 60 - 60 RC/10F 2,377.62㎡ 42 Kanagawa 43 COMFORIA RYOGOKU DEUX Sumida-ku, Tokyo Ryogoku Station on JR Chuo Line Sobu Line 9 min Aug. 2006 66 - 66 RC/9F 2,010.27㎡
44 COMFORIA OMORI DEUX Ota-ku, Tokyo Omori Station on JR Keihin-Tohoku Line 8 min Feb. 2007 64 - 64 RC/12F 2,180.52㎡
45 COMFORIA MACHIYA Arakawa-ku, Tokyo Machiya Station on Tokyo Metro Chiyoda Line 7 min Apr. 2007 29 1 store 30 RC/11F 1,361.92㎡
46 COMFORIA LIV ICHIKAWAMYODEN Ichikawa-shi, Chiba Myoden Station on Tokyo Metro Tozai Line 9 min Apr. 2007 48 - 48 RC/5F 1,533.11㎡
47 COMFORIA LIV YATSUKA Soka-shi, Saitama Yatsuka Station on TOBU SKYTREE Line 7 min Mar. 2007 62 - 62 SRC/13F 1,710.09㎡
48 COMFORIA SHIROKANETAKANAWA Minato-ku, Tokyo Shirokane-takanawa Station on Tokyo Metro Namboku Line 4 min Oct. 2007 36 1 store 37 RC/13F 1,932.57㎡
49 COMFORIA NIHONBA SHI NINGY OCHO EA ST Chuo-ku, Tokyo Ningyocho Station on Tokyo Metro Hibiya Line 2 min Oct. 2007 81 1 store 82 RC/10F 2,912.38㎡
50 COMFORIA ATAGO Minato-ku, Tokyo Kamiyacho Station on Tokyo Metro Hibiya Line 3 min Apr. 2004 38 - 38 SRC/11F 1,147.20㎡
51 COMFORIA ASAKUSABASHI Taito-ku, Tokyo Asakusabashi Station on JR Chuo Line Sobu Line 5 min Nov. 2011 140 1 store 141 RC/B1-14F 5,273.67㎡
52 COMFORIA RYOGOKU SOUTH Sumida-ku, Tokyo Ryogoku Station on JR Chuo Line Sobu Line 8 min Nov. 2011 61 - 61 RC/9F 2,404.23㎡
53 COMFORIA TOYOSU Koto-ku, Tokyo Toyosu Station on Tokyo Metro Yurakucho Line 9 min Mar. 2009 160 1 store 161 RC/9F 4,513.10㎡ Higashi Yodogawa-ku, Shin-osaka station on JR Tokaido & Sanyo Shinkansen, 3 min 54 COMFORIA SHIN-OSAKA Oct. 2006 132 1 store 133 RC/15F 6,530.63㎡ Osaka-shi, Osaka Tokaido Line / Osaka-shi Shiei Midosuji Line 8 min 55 COMFORIA SUMIDA-TACHIBANA Sumida-ku, Tokyo Omurai station on the Tobu Kameido Line 6 min Sep. 2007 56 - 56 RC/8F 1,888.25㎡
Total portfolio properties at 7th FP end 3,297 3,317 141,499.57㎡
34 Portfolio List (3)
Nearest Completion Residential Commercial Rentable Gross floor No. Property name Location Transportation Structure/Floors station (walk) date units units units area
Properties acquired during 8th FP*
56 COMFORIA KUDAN Chiyoda-ku, Tokyo Kudanshita Station on the Tokyo Metro Tozai Line 7 Feb. 2007 36 - 36 RC/13F 1,787.89㎡
57 COMFORIA NIHONBA SHININGY OCHO NORTH Chuo-ku, Tokyo Ningyocho Station on the Tokyo Metro Hibiya Line 4 Jan. 2005 36 - 36 RC/10F 1,717.58㎡
58 COMFORIA SHINKAWA Chuo-ku, Tokyo Hatchobori Station on the JR Keiyo Line 5 Mar. 2008 59 - 59 RC/12F 2,866.08㎡
59 COMFORIA AKASAKA Minato-ku, Tokyo Akasaka Station on the Tokyo Metro Chiyoda Line 4 Apr. 2013 40 - 40 RC/B1-11F 2,956.70㎡
60 COMFORIA MITA EAST Minato-ku, Tokyo Mita Station on the Toei Mita Line 5 Jan. 2008 111 - 111 RC/B1-13F 4,973.31㎡ Hinode Station on New Transit Yurikamome 7 min 61 COMFORIA LIV SHIBAURA CANAL Minato-ku, Tokyo Dec. 2004 95 - 95 RC/10F 2,703.41㎡ Tamachi Station on the JR Keihin-Tohoku Line 13 min 62 COMFORIA UENOHIROKOJI Taito-ku, Tokyo Ueno-hirokoji Station on the Tokyo Metro Ginza Line 3 Nov. 2007 36 1 store 37 RC/B1-14F 1,935.60㎡
63 COMFORIA KASUGATOMISAKA Bunkyo-ku, Tokyo Korakuen Station on the Tokyo Metro Marunouchi Line 6 Feb. 2008 105 1 store 106 RC/B1-12F 4,479.23㎡
64 COMFORIA HONKOMAGOME Bunkyo-ku, Tokyo Sengoku Station on the Toei Mita Line 1 Jan. 2005 36 - 36 SRC/13F 2,623.37㎡
65 COMFORIA MORISHITA Koto-ku, Tokyo Morishita Station on the Toei Shinjuku Line 1 Sep. 2007 74 1 store 75 RC/14F 2,159.39㎡
66 COMFORIA LIV KIBAKOEN Koto-ku, Tokyo Kiba Station on the Tokyo Metro Tozai Line 4 Sep. 2007 60 - 60 RC/9F 1,753.85㎡
67 COMFORIA MEGURO CHOJAMARU Shinagawa-ku, Tokyo Meguro Station on the JR Yamanote Line 8 Mar. 2005 71 - 71 RC/B2-3F 3,720.52㎡
68 COMFORIA NISHIMAGOME Ota-ku, Tokyo Nishimagome Station on the Toei Asakusa Line 6 Aug. 2005 52 - 52 RC/5F 1,797.93㎡
69 COMFORIA KITASANDO Shibuya-ku, Tokyo Kitasando Station on the Tokyo Metro Fukutoshin Line 3 Feb. 2005 144 - 144 RC/B1-14F 7,667.04㎡
70 COMFORIA YOYOGIUEHARA Shibuya-ku, Tokyo Yoyogi-uehara Station on the Tokyo Metro Chiyoda Line 9 Feb. 2003 51 - 51 RC/10F 2,344.24㎡
71 COMFORIA SASAZUKA Shibuya-ku, Tokyo Sasazuka Station on the Keio Line 2 Nov. 2006 89 - 89 RC/14F 3,440.91㎡
72 COMFORIA SHINJUKUGYOENⅡ Shinjuku-ku, Tokyo Shinjukugyoen-mae Station on the Tokyo Metro Marunouchi Line 2 Nov. 2005 65 - 65 RC/15F 2,312.79㎡
73 COMFORIA ICHIGAYAYANAGICHO Shinjuku-ku, Tokyo Ushigome-yanagicho Station on the Toei Oedo Line 3 Oct. 2007 68 1 store 69 RC/13F 2,416.85㎡
74 COMFORIA KAGURAZAKA Shinjuku-ku, Tokyo Ushigome-kagurazaka Station on the Toei Oedo Line 2 Sep. 2007 29 - 29 RC/B1-5F 1,161.31㎡
75 COMFORIA HIGASHIIKEBUKURO EAST Toshima-ku, Tokyo Otsuka Station on the JR Yamanote Line 8 Nov. 2009 90 - 90 RC/11F 3,156.84㎡
76 COMFORIA HIGASHIIKEBUKURO Toshima-ku, Tokyo Higahi-ikebukuro Station on the Tokyo Metro Yurakucho Line 2 Oct. 2006 48 - 48 SRC/15F 1,798.18㎡ Kanagaw a-ku, COMFORIA SHINKOYASU Shinkoyasu Station on the JR Keihin-Tohoku Line 6 Jan. 2007 36 - 36 RC/10F 2,622.19 77 Yokohama-shi, Kanagaw a ㎡ Shinsakae-machi Station on the Nagoya Municipal Subway 78 COMFORIA SHINSAKAE* Naka-ku, Nagoya-shi, Aichi 7 May. 2009 144 - 144 RC/13F 4,098.97㎡ Higashiyama Line Nishinagahori Station on the Osaka Municipal Subway 79 COMFORIA KITAHORIE* Nishi-ku, Osaka-shi, Osaka 2 Feb. 2007 72 1 store 73 RC/13F 1,910.01㎡ Sennichimae Line & Nagahori Tsurumiryokuchi Line Total properties acquired during 8th FP* 1,647 1,652 68,404.19㎡
Total assets under management* 4,944 4,969 209,903.76㎡
* Note: As of this writing, COMFORIA SHINSAKAE and COMFORIA KITAHORIE are yet to be acquired, but are included in figures for “Properties acquired during 8th FP”, “Total properties acquired during 8th FP” and “Total assets under management”.
35 Appraisal Value (1)
At acquisition 6th FP end 7th FP end Appraisal - Acquisition price Acquisition Appraisal-book No. Property name price (million Appraisal valueAppraisal value Appraisal value Book value At acquisition 6th FP 7th FP Appraisal company val ue yen) (million yen) Cap Rate (million yen) Cap Rate (million yen) Cap Rate (million yen) (million yen) (million yen) (million yen) (million yen)
Portfolio properties at 7th FP end
1 COMFORIA NIHONBASHI NINGYOCHO 1,586 1,610 5.3% 1,760 4.9% 1,800 4.8% 1,627 172 24 173 213 Japan Real Estate Institute
2 COMFORIA WASEDA 1,900 1,940 5.3% 2,160 4.9% 2,200 4.8% 1,958 241 40 260 300 Japan Real Estate Institute
3 COMFORIA SHIMOOCHIAI 1,181 1,280 5.7% 1,400 5.1% 1,410 5.0% 1,168 241 99 219 229 Japan Real Estate Institute
4 COMFORIA HIGASHINAKANO 552 556 5.4% 599 5.0% 603 4.9% 574 28 4 46 50 Japan Real Estate Institute
5 COMFORIA BUNKYOKASUGA 1,470 1,550 5.3% 1,730 4.9% 1,770 4.8% 1,463 306 80 260 300 DAIWA REAL ESTATE APPRAISAL CO.,LTD
6 COMFORIA ASAKUSAMATSUGAYA 910 926 5.8% 1,060 5.4% 1,080 5.3% 903 176 16 150 170 DAIWA REAL ESTATE APPRAISAL CO.,LTD
7 COMFORIA NISHIOI 902 913 5.5% 942 5.2% 954 5.1% 928 25 11 39 51 Japan Real Estate Institute
8 COMFORIA NAKANO 881 896 5.4% 941 5.0% 942 4.9% 907 34 15 59 60 Japan Real Estate Institute
9 COMFORIA SHIMOKITAZAWA 2,587 2,640 5.4% 2,910 4.9% 2,960 4.8% 2,552 407 53 323 373 Japan Real Estate Institute
10 COMFORIA NISHIKAMATA 1,550 1,650 5.6% 1,870 5.2% 1,900 5.1% 1,540 359 100 320 350 DAIWA REAL ESTATE APPRAISAL CO.,LTD
11 COMFORIA OYAMA 1,987 2,120 5.9% 2,070 5.4% 2,100 5.3% 1,978 121 133 83 113 Japan Real Estate Institute
12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 740 772 5.5% 838 5.0% 855 4.9% 742 112 32 98 115 Japan Real Estate Institute
13 COMFORIA KOMAZAWA 1,290 1,360 5.3% 1,460 4.9% 1,500 4.8% 1,294 205 70 170 210 Japan Real Estate Institute
14 COMFORIA GINZA EAST 3,059 3,300 5.4% 3,530 5.0% 3,540 4.9% 3,057 482 241 471 481 Japan Real Estate Institute
15 COMFORIA AZABUDAI 574 677 5.1% 701 4.8% 702 4.7% 576 125 103 127 128 Japan Real Estate Institute
16 COMFORIA SHIBAKOEN 1,398 1,480 5.2% 1,570 4.8% 1,590 4.7% 1,396 193 82 172 192 Morii Appraisal & Investment Consulting,Inc.
17 COMFORIA NISHIAZABU 755 842 5.1% 833 4.9% 834 4.8% 757 76 87 78 79 Japan Real Estate Institute
18 COMFORIA MINAMIAOYAMA 1,041 1,250 5.2% 1,290 4.8% 1,310 4.7% 1,050 259 209 249 269 The Tanizawa Sogo Appraisal Co.,Ltd.
19 COMFORIA MINAMIAOYAMA DEUX 248 321 5.2% 346 4.9% 349 4.8% 252 96 73 98 101 The Tanizawa Sogo Appraisal Co.,Ltd.
20 COMFORIA NISHIWASEDA 1,685 1,830 5.2% 1,900 4.8% 1,930 4.7% 1,683 246 145 215 245 Morii Appraisal & Investment Consulting,Inc.
21 COMFORIA LIV KOISHIKAWA 552 579 5.4% 606 5.0% 617 4.9% 553 63 27 54 65 DAIWA REAL ESTATE APPRAISAL CO.,LTD
22 COMFORIA LIV SENGOKU 1,219 1,390 5.6% 1,460 5.3% 1,470 5.2% 1,225 244 171 241 251 Japan Real Estate Institute
23 COMFORIA DAIKANYAMAAOBADAI 926 1,110 4.8% 1,130 4.6% 1,130 4.7% 929 200 184 204 204 Japan Valuers Co.,Ltd.
24 COMFORIA DAIKANYAMA 1,807 2,020 5.1% 2,050 4.8% 2,050 4.8% 1,813 236 213 243 243 Japan Real Estate Institute
25 COMFORIA HARAJYUKU NORD 533 592 5.2% 632 4.9% 642 4.8% 538 103 59 99 109 The Tanizawa Sogo Appraisal Co.,Ltd.
26 COMFORIA HARAJYUKU 3,629 4,230 5.1% 4,060 4.8% 4,120 4.7% 3,632 487 601 431 491 Japan Real Estate Institute
27 COMFORIA IKEBUKURO 602 638 5.5% 642 5.1% 642 5.0% 600 41 36 40 40 DAIWA REAL ESTATE APPRAISAL CO.,LTD
28 COMFORIA LIV KOMAE 399 490 6.2% 502 5.8% 502 5.7% 410 91 91 103 103 Japan Real Estate Institute
29 COMFORIA LIV RYOGOKUISHIWARA 651 679 5.6% 731 5.1% 739 5.0% 653 85 28 80 88 Morii Appraisal & Investment Consulting,Inc.
30 COMFORIA MITA NORTH 850 887 4.8% 904 4.7% 922 4.8% 862 59 37 54 72 Japan Valuers Co.,Ltd.
36 Appraisal Value (2)
At acquisition 6th FP end 7th FP end Appraisal - Acquisition price Acquisition Appraisal-book No. Property name price (million Appraisal valueAppraisal value Appraisal value Book value At acquisition 6th FP 7th FP val ue Appraisal company yen) (million yen) Cap Rate (million yen) Cap Rate (million yen) Cap Rate (million yen) (million yen) (million yen) (million yen) (million yen)
Portfolio properties at 7th FP end (continued)
31 COMFORIA SHIBAURA BOWHOUSE 2,650 2,890 5.2% 2,920 5.0% 2,980 4.9% 2,697 282 240 270 330 Japan Real Estate Institute
32 COMFORIA ASAKUSABASHI DEUX 874 886 5.1% 902 5.0% 919 4.9% 906 12 12 28 45 Japan Real Estate Institute
33 COMFORIA OSHIAGE 714 733 5.2% 746 5.1% 756 5.0% 741 14 19 32 42 Japan Real Estate Institute
34 COMFORIA HONJOAZUMABASHI 762 775 5.2% 793 5.1% 806 5.0% 790 15 13 31 44 Japan Real Estate Institute
35 COMFORIA KIYOSUMISHIRAKAWA TROIS 873 932 5.1% 943 5.0% 948 4.9% 885 62 59 70 75 Japan Real Estate Institute
36 COMFORIA MONZENNAKACHO 2,658 2,730 5.1% 2,780 5.0% 2,800 4.9% 2,697 102 72 122 142 Japan Real Estate Institute
37 COMFORIA HIMONYA 1,189 1,280 4.9% 1,310 4.8% 1,350 4.9% 1,202 147 91 121 161 Japan Valuers Co.,Ltd.
38 COMFORIA MISYUKU 1,874 2,040 4.8% 2,080 4.7% 2,140 4.8% 1,887 252 166 206 266 Japan Valuers Co.,Ltd.
39 COMFORIA GAKUGEIDAIGAKU 1,138 1,220 5.0% 1,270 4.8% 1,330 4.7% 1,160 169 82 132 192 Japan Real Estate Institute
40 COMFORIA HIGASHINAKANO DEUX 833 903 5.2% 917 5.0% 924 4.9% 845 78 70 84 91 Japan Real Estate Institute
41 COMFORIA HIGASHIIKEBUKURO WEST 3,911 4,260 5.4% 4,520 5.2% 4,600 5.1% 3,945 654 349 609 689 DAIWA REAL ESTATE APPRAISAL CO.,LTD
42 COMFORIA YOKOHAMAKANNAI 972 1,080 5.7% 1,130 5.4% 1,140 5.3% 986 153 108 158 168 Japan Real Estate Institute
43 COMFORIA RYOGOKU DEUX 1,014 1,070 5.1% 1,090 5.0% 1,110 4.9% 1,070 39 56 75 95 Japan Real Estate Institute
44 COMFORIA OMORI DEUX 1,188 1,240 5.1% 1,260 5.0% 1,270 4.9% 1,251 18 52 72 82 Japan Real Estate Institute
45 COMFORIA MACHIYA 594 644 5.3% 681 5.2% 724 5.1% 628 95 50 87 130 Japan Real Estate Institute
46 COMFORIA LIV ICHIKAWAMYODEN 606 666 5.6% 681 5.5% 686 5.4% 641 44 60 75 80 Japan Real Estate Institute
47 COMFORIA LIV YATSUKA 626 673 6.0% 677 5.9% 677 5.9% 663 13 47 51 51 Japan Real Estate Institute
48 COMFORIA SHIROKANETAKANAWA 1,300 1,350 4.9% 1,410 4.7% 1,420 4.6% 1,366 53 50 110 120 Morii Appraisal & Investment Consulting,Inc.
49 COMFORIA NIHONBA SHI NINGY OCHO EA ST 2,139 2,160 5.0% 2,190 4.9% 2,240 4.8% 2,176 63 20 50 100 Japan Real Estate Institute
50 COMFORIA ATAGO 826 843 4.9% 852 4.8% 866 4.7% 844 21 17 26 40 Morii Appraisal & Investment Consulting,Inc.
51 COMFORIA ASAKUSABASHI 2,680 2,750 5.2% 2,850 5.1% 2,920 5.0% 2,752 167 70 170 240 DAIWA REAL ESTATE APPRAISAL CO.,LTD
52 COMFORIA RYOGOKU SOUTH 1,240 1,290 5.2% 1,330 5.1% 1,360 5.0% 1,273 86 50 90 120 DAIWA REAL ESTATE APPRAISAL CO.,LTD
53 COMFORIA TOYOSU 3,096 3,230 5.1% 3,250 5.0% 3,270 4.9% 3,162 107 133 153 173 Japan Real Estate Institute
54 COMFORIA SHIN-OSAKA 2,400 2,450 5.4% - - 2,480 5.3% 2,495 -15 50 - 80 Morii Appraisal & Investment Consulting,Inc.
55 COMFORIA SUMIDA-TACHIBANA 938 977 5.2% - - 977 5.2% 1,003 -26 39 - 39 DAIWA REAL ESTATE APPRAISAL CO.,LTD
Total portfolio properties at 7th FP end 74,563 79,600 - 79,209 - 83,856 - 75,714 8,141 5,039 7,983 9,292
37 Appraisal Value (3)
At acquisition 6th FP end 7th FP end Appraisal - Acquisition price Acquisition Appraisal-book No. Property name price (million Appraisal valueAppraisal value Appraisal value Book value At acquisition 6th FP 7th FP val ue Appraisal company yen) (million yen) Cap Rate (million yen) Cap Rate (million yen) Cap Rate (million yen) (million yen) (million yen) (million yen) (million yen)
Total portfolio properties at 7th FP end 74,563 79,600 - 79,209 - 83,856 - 75,714 8,141 5,039 7,983 9,292
Properties acquired during 8th FP*
56 COMFORIA KUDAN 1,280 1,370 4.7% ------89 - - Morii Appraisal & Investment Consulting,Inc.
57 COMFORIA NIHONBA SHININGY OCHO NORTH 1,108 1,140 4.9% ------32 - - Japan Real Estate Institute
58 COMFORIA SHINKAWA 1,840 1,920 4.8% ------79 - - Morii Appraisal & Investment Consulting,Inc.
59 COMFORIA AKASAKA 1,945 2,000 4.8% ------55 - - Japan Real Estate Institute
60 COMFORIA MITA EAST 3,190 3,300 4.8% ------109 - - Morii Appraisal & Investment Consulting,Inc.
61 COMFORIA LIV SHIBAURA CANAL 1,570 1,650 5.1% ------80 - - Japan Real Estate Institute
62 COMFORIA UENOHIROKOJI 1,050 1,110 4.8% ------60 - - Morii Appraisal & Investment Consulting,Inc.
63 COMFORIA KASUGATOMISAKA 2,912 3,050 4.7% ------137 - - Morii Appraisal & Investment Consulting,Inc.
64 COMFORIA HONKOMAGOME 1,344 1,420 4.9% ------76 - - Japan Real Estate Institute
65 COMFORIA MORISHITA 1,530 1,560 5.0% ------30 - - Morii Appraisal & Investment Consulting,Inc.
66 COMFORIA LIV KIBAKOEN 956 996 5.0% ------40 - - Morii Appraisal & Investment Consulting,Inc.
67 COMFORIA MEGURO CHOJAMARU 1,972 2,050 5.0% ------78 - - DAIWA REAL ESTATE APPRAISAL CO.,LTD
68 COMFORIA NISHIMAGOME 990 1,040 5.2% ------50 - - Japan Real Estate Institute
69 COMFORIA KITASANDO 4,268 4,490 4.9% ------222 - - Japan Real Estate Institute
70 COMFORIA YOYOGIUEHARA 1,560 1,620 4.9% ------60 - - Japan Real Estate Institute
71 COMFORIA SASAZUKA 1,789 1,860 5.0% ------71 - - DAIWA REAL ESTATE APPRAISAL CO.,LTD
72 COMFORIA SHINJUKUGYOENⅡ 1,806 1,850 4.7% ------44 - - Japan Valuers Co.,Ltd.
73 COMFORIA ICHIGAYAYANAGICHO 1,623 1,700 4.8% ------77 - - Morii Appraisal & Investment Consulting,Inc.
74 COMFORIA KAGURAZAKA 736 758 4.7% ------22 - - Morii Appraisal & Investment Consulting,Inc.
75 COMFORIA HIGASHIIKEBUKURO EAST 1,712 1,790 5.0% ------78 - - Japan Real Estate Institute
76 COMFORIA HIGASHIIKEBUKURO 1,132 1,170 4.9% ------38 - - Japan Real Estate Institute
77 COMFORIA SHINKOYASU 1,077 1,130 5.3% ------53 - - Japan Real Estate Institute
78 COMFORIA SHINSAKAE* 1,653 1,730 5.4% ------76 - - DAIWA REAL ESTATE APPRAISAL CO.,LTD
79 COMFORIA KITAHORIE* 1,010 1,050 5.2% ------40 - - DAIWA REAL ESTATE APPRAISAL CO.,LTD
Total properties acquired during 8th FP* 40,055 41,754 ------1,698--
Total assets under management* 114,618 121,354 - - - 125,610 ------
* Note: As of this writing, COMFORIA SHINSAKAE and COMFORIA KITAHORIE are yet to be acquired, but are included in figures for “Properties acquired during 8th FP”, “Total properties acquired during 8th FP” and “Total assets under management”.
38 Occupancy and Rent Rates
5th FP 6th FP 7th FP Invested area Items Aug. 2012 Sep. 2012 Oct. 2012 Nov. 2012 Dec. 2012 Jan. 2013 Feb. 2013 Mar. 2013 Apr. 2012 May. 2013 Jun. 2013 July. 2013 Aug. 2013 Sep. 2013 Oct. 2013 Nov. 2013 Dec. 2013 Jan. 2014
# of properties 42 47 47 48 48 48 53 53 53 53 53 53 53 54 54 54 55 55
Rentable units 2,338 2,608 2,608 2,645 2,645 2,645 3,128 3,128 3,128 3,128 3,128 3,128 3,128 3,261 3,261 3,261 3,317 3,317 Total portfolio Rent: Yen/Tsubo 12,901 12,744 12,736 12,770 12,762 12,750 12,829 12,817 12,822 12,817 12,811 12,801 12,794 12,546 12,543 12,531 12,482 12,483 (residential units)
Occupancy rate 93.8% 94.0% 94.3% 94.3% 94.8% 96.1% 95.3% 96.1% 95.2% 94.8% 95.5% 95.9% 95.4% 95.6% 95.8% 95.8% 95.9% 96.2%
5th FP 6th FP 7th FP Invested area Items Aug. 2012 Sep. 2012 Oct. 2012 Nov. 2012 Dec. 2012 Jan. 2013 Feb. 2013 Mar. 2013 Apr. 2012 May. 2013 Jun. 2013 July. 2013 Aug. 2013 Sep. 2013 Oct. 2013 Nov. 2013 Dec. 2013 Jan. 2014
# of properties 16 16 16 17 17 17 19 19 19 19 19 19 19 19 19 19 19 19
Rentable units 781 781 781 818 818 818 938 938 938 938 938 938 938 938 938 938 938 938 Central Tokyo Rent: Yen/Tsubo 13,486 13,455 13,460 13,513 13,496 13,475 13,602 13,581 13,598 13,607 13,605 13,575 13,561 13,557 13,552 13,511 13,509 13,509 (residential units)
Occupancy rate 92.2% 91.9% 92.5% 93.0% 93.8% 95.0% 94.7% 94.6% 93.2% 93.6% 94.5% 95.2% 94.1% 93.8% 94.6% 95.2% 95.4% 95.7%
# of properties 24 27 27 27 27 27 30 30 30 30 30 30 30 30 30 30 31 31
Rentable units 1,473 1,633 1,633 1,633 1,633 1,633 1,996 1,996 1,996 1,996 1,996 1,996 1,996 1,996 1,996 1,996 2,052 2,052 Sub-Central Tokyo Rent: Yen/Tsubo 12,678 12,647 12,627 12,637 12,635 12,629 12,660 12,664 12,659 12,647 12,639 12,637 12,629 12,627 12,630 12,622 12,556 12,563 (residential units)
Occupancy rate 94.9% 95.3% 95.5% 95.2% 95.2% 96.7% 95.6% 97.1% 96.6% 95.6% 96.3% 96.5% 96.4% 97.1% 96.8% 96.6% 96.3% 96.3%
# of properties 2 4 4444444444444444
Tokyo Rentable units 84 194 194 194 194 194 194 194 194 194 194 194 194 194 194 194 194 194 Metropolitan Rent: Yen/Tsubo area 10,281 9,846 9,834 9,812 9,814 9,789 9,803 9,748 9,747 9,734 9,699 9,701 9,766 9,722 9,743 9,761 9,646 9,654 (residential units)
Occupancy rate 92.1% 94.2% 93.5% 94.4% 96.3% 96.9% 94.9% 95.9% 93.1% 94.3% 94.5% 94.4% 93.3% 93.6% 92.9% 91.1% 94.3% 95.1%
# of properties 11111
Rentable units 133 133 133 133 133 Other Major Cities Rent: Yen/Tsubo 8,018 8,014 8,015 7,998 7,999 (residential units)
Occupancy rate 93.2% 96.1% 96.2% 97.0% 98.1%
39 Overview of Portfolio (1)
Investment area Nearest train station (on foot)
6th FP Tokyo 23 Wards: 96.3%7th FP Tokyo 23 Wards: 93.3% 6th FP Avg. distance: 5.2 min 7th FP Avg. distance: 5.2 min
3.5% 1.7% 1.6% 3.7% 3.2%
38.9% 37.2% Minutes to Minutes to Investment Investment nearest train nearest train area area 41.3% station (on 40.7% station (on foot) foot) 57.4% 57.0% 57.7%
56.1%
Central Tokyo Sub-central Tokyo Under 5 mins 5 to 10 mins Over 10 mins Tokyo Metropolitan area Other Major Cities *Note-3: Graph data based on acquisition price. *Note-1: Graph data based on acquisition price. *Note-4: Refer to “References (*1) for calculation method of “Minutes to nearest train *Note-2: Refer to “References (*1) for calculation method of “Investment area”. station (on foot)” and “Avg. distance”. Average building age Residential units per property
6th FP Avg. age: 7.1 years 7th FP Avg. age: 7.5 years 6th FP Avg. units/property: 58.77th FP Avg. units/property: 60
9.0% 11.0% 13.2% 14.5% 18.9% 18.2% 26.1% 24.9% Residential Residential Average Average units per units per building age building age 32.1% property 32.7% property
35.8% 34.5%
64.9% 64.1% Under 30 units Over 30 less than 50 units Under 5 years 5 to 10 years Over 10 years Over 50 less than 100 units Over 100 units *Note-5: Graph data based on build year of each asset under management (acquisition price *Note-7: Graph data represents ratio of residential units (excluding retail and office space) basis) at the end of each fiscal period. at each asset under management in the portfolio. *Note-6: Refer to “References (*1) for calculation method of “Average building age”.
40 Overview of Portfolio (2)
Acquisition price per unit Area per unit (㎡)
6th FP Price per unit: ¥1.34Bn7th FP Price per unit: ¥1.35Bn 6th FP Area per unit: 34.6㎡ 7th FP Area per unit: 34.9㎡
7.1% 6.3% 7.8% 24.9% 25.1% 5.9% 37.1% 38.6% 13.4% 13.0% Acquisition Acquisition Area per unit Area per unit 53.6% 51.7% price per unit price per unit (㎡) (㎡)
20.6% 19.7% 19.6% 21.7% 17.4% 16.6%
Less than 1 Bil JPY Over 1 Bil JPY less than 1.5 Bil JPY Over 1.5 Bil JPY less than 2 Bil JPY Over 2 Bil JPY Less than 30㎡ Over 30㎡ less than 40㎡ Over 40㎡ less than 50㎡ Over 50㎡ less than 60㎡ * Note-1: Graph data based on acquisition price. Rounded to the nearest tenths. Over 60㎡ * Note-2: Graph data represents ratio of floor area (excluding retail and office space) to total rentable space. Unit type
6th FP Single/Compact: 83.3%7th FP Single/Compact: 82.1% *Room types
Under 30㎡~ 40㎡~ 50㎡~ 60㎡~ 70㎡~ Over 80㎡ 2.4% 2.3% 30㎡ 40㎡ 50㎡ 60㎡ 70㎡ 80㎡ 12.6% 13.6% STUDIO SSCCFFF 1.8% 2.0% 43.7% 41.7% 1BED SCCCFFF Room type Room type 2BED CCCL L L 3BED LLLLL
39.6% 40.4% 4BED LLL STUDIO: 1K, one room Single（S） Compact（C） Family（F） 1BED: 1DK,1LDK,1LDK+service room and/or closet space, etc. Large（L） Stores 2BED: 2DK,2LDK,2LDK+service room and/or closet space, etc. 3BED: 3DK,3LDK,3LDK+service room and/or closet space, etc. * Note-3: Graph data represents ratio of rentable space by room type. * Note-4: Refer to the right chart with regards to room type. 4BED: 4DK,4LDK,4LDK+service room and/or closet space, etc.
41 Status of Interest-bearing Debt (as at 7th FP end)
Interest-bearing debt status Loan status
Loan amount Fixed/ Interest Type Lender Drawdown date Maturity date Interest-bearing (million yen) Variable (%) ¥43,720Mn Long term loans 30-Jan-15 debt balance Sumitomo Mitsui Banking Corporation 1,000 Variable 0.35229 27-Dec-13 maturing less than (*1) 1 year Sub-total 1,000 Avg. maturity 3.5 years Development Bank of Japan 3,570 1.34500 Mitsubishi UFJ Trust and Banking 3,570Fixed 1.33500 23-Mar-11 23-Mar-16 Sumitomo Mitsui Trust Bank 1,785 (*2) 1.03715 Weighted avg. Tokyo Tomin Bank 1,000 1.02% Mizuho Bank 3,570 interest rate The Bank of Tokyo-Mitsubishi UFJ 3,570 Fixed 1.03715 23-Mar-11 23-Mar-19 Sumitomo Mitsui Trust Bank 3,570 (*2) Ratio of fixed Sumitomo Mitsui Banking Corporation 1,785 84.0% Development Bank of Japan 1,050 interest debt Mizuho Bank 1,050 Sumitomo Mitsui Trust Bank 1,050 The Bank of Tokyo-Mitsubishi UFJ 1,050 Variable 0.64818 3-Feb-12 30-Apr-15 Appraisal LTV 52.1% Mitsubishi UFJ Trust and Banking 1,050 Sumitomo Mitsui Banking Corporation 550 Long term loans Tokyo Tomin Bank 200 *Note: Refer to “References (*3)” for calculation method Development Bank of Japan 1,090 of “Interest-bearing debt status”. Mizuho Bank 1,090 Sumitomo Mitsui Trust Bank 1,090 The Bank of Tokyo-Mitsubishi UFJ 1,090 Fixed 1.41200 3-Feb-12 29-Sep-17 Mitsubishi UFJ Trust and Banking 1,090 Sumitomo Mitsui Banking Corporation 550 Tokyo Tomin Bank 300 Fixed Mitsubishi UFJ Trust and Banking 2,000 0.79500 4-Sep-13 31-Aug-18 (*2) Mizuho Bank 1,350 The Bank of Tokyo-Mitsubishi UFJ 1,350 Fixed 0.67075 30-Sep-13 30-Mar-18 Mitsubishi UFJ Trust and Banking 1,350 (*2) Sumitomo Mitsui Banking Corporation 600 Development Bank of Japan 1,350 Fixed 0.90487 30-Sep-13 30-Sep-19 Sub-total 42,720 Total 43,720 Credit rating *Note-1: Repaid before maturity as of Feb. 4, 2014 *Note-2: Interest rate shown above is fixed interest rate as per interest swap agreements.
Rating agency Type Grade Outlook
Japan Credit Rating Agency Long-term issuer rating A＋ Stable
42 Unitholders (as at 7th FP end)
Unitholder by issues held Major unitholders (Top 10)
Foreign entities 4,338 units Unitholders Units held Holding ratio 6.4% Individuals / others 10,580 units 1 Japan Trustee Services Bank, Ltd. (trust account) 19,344 28.71 15.7% 2 Tokyu Land Corporation 6,736 9.99 Financial institutions Other domestic entities 38,802 units 3 The Nomura Trust & Banking Co., Ltd. (trust account) 2,879 4.27 12,676 units 57.6% 18.8% Trust & Custody Services Bank, Ltd. (securities trust investment 4 2,805 4.16 account) Fina ncia l Instrume nts Busine ss Operators 5 Master Trust Bank of Japan, Ltd. (trust account) 2,552 3.78 965 units 1.4% 6 Asahi Fire & Marine Insurance 2,400 3.56
Trust & Custody Services Bank, Ltd. (taxable trust money 7 2,396 3.55 Unitholder by ratio account) Nomura Bank (Luxembourg) S.A. 8 2,120 3.14 Financial institutions Financial Instruments Business (Standing Proxy: Sumitomo Mitsui Banking Corporation) 51 entities Operators 1.5% 21 entities 9 The Yamato Shinkin Bank 1,000 1.48 Foreign entities 0.6% 68 entities Other domestic entities 10 Credit Saison 1,000 1.48 2.0% 120 entities 3.6% Total 43,232 64.17
*Note-1: Figures shown above are rounded down to the nearest hundredths. *Note-2: All data based on the unitholder registry as at Jan. 31, 2014.
Individuals / others 2,984 entities 91.9%
43 Historical Unit Price
Historical unit price and trading (7th FP)
(JPY) (Unit)
800,000 1,200 Volume Unit Price (Right Axis) 700,000 1,000 600,000 800 500,000
400,000 Record high : ¥754,000 600 Record low : ¥584,000 300,000 1-day avg. trading : 211.2 units 400 200,000 200 100,000
0 0 8/1 8/15 8/29 9/12 9/30 10/15 10/29 11/13 11/27 12/11 12/26 1/16 1/30 *Note: As at Jan. 31, 2014 Comparable unit price (7th FP)
120.0 Unit Price TSE REIT Index TSE Residential REIT Index
115.0
110.0
105.0
100.0 Unit price : ¥714,000 (+ 12.3%) TSE REIT Index : 1504.90pt (+ 10.9%) 95.0 TSE REIT Residential Index : 1847.82pt (+ 7.1%) 90.0 8/1 8/15 8/29 9/12 9/26 10/10 10/24 11/7 11/21 12/5 12/19 1/2 1/16 1/30
*Note: As at Jan. 31, 2014. Price as at Aug. 1, 2013 (beginning of 7th FP) is benchmarked at 100%.
44 # of Households and Housing Starts (rental) in Tokyo 23 Wards
CRR invests in rental residences located primarily in the Tokyo area for “singles and small families”. Such residences are likely to receive stronger demand as the aggregate number of households increase.
Housing market ① Number of households are expected to increase in the Tokyo metropolitan area and Tokyo. and demographic ② Due to demographic changes associated with declining birth rate and late marriages, the trends number of singles and small families are expected to continue increasing.
① Housing starts (rental units) in the Tokyo 23 Wards are stagnant at 50% below peak level. Housing starts ② Against such backdrop, ongoing sponsor development projects present good opportunities to acquire prime properties.
Estimated number of Number of households in Tokyo Housing starts (rental units) in households in Tokyo by type Tokyo 23 Wards
16,000 10,000 50,000 15,415 15,415 7 000 15,254 14,918 6 000 14,232 40,000 5 000 14,000 8,000
4 000 30,000
6,224 6,308 6,332 6,069 3 000 12,000 5,747 6,000 20,000 2 000
1 000 10,000
10,000 4,000 0 2005 2010 2015 2020 2025 2005 2010 2015 2020 2025 0 Single Married couple '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 Tokyo Metropolitan Area Tokyo Married couple with children Single parent with children Others
Source: National Institute of Population and Social Security Research's "Household Source: National Institute of Population and Social Security Research's "Household Projections for Japan (by prefecture) Dec. 2009”. statistical projection for Japan (by prefecture) Dec. 2009“. *Note: Refer to References (*4) for more information. *Note: Refer to References (*4) for more information.
45 Governance
Governance Structure
Decision-making flowchart in relation to asset acquisition The Asset Management Company ensures impartiality in decision-making by inviting outside real-estate appraisers to the Investment Committee.
Proposal by the Investment Operation Department Selecting candidates for assets to be acquired / Conducting detailed due diligence / Proposing acquisition plans
Approval by the Compliance Officer Examine compliance issues, considering laws, regulations, the Articles of incorporation, and the bylaws
Deliberation and resolution The committee members are inhouse participants of the Asset by the Investment Committee Management Company and an outside real-estate appraiser The resolution shall be adopted unanimously by all committee members
Deliberation and resolution by the Compliance Committee Committee meetings shall be held to discuss transactions with interested parties The committee members are inhouse participants of the Asset Deliberation and resolution by the Board of Directors Management Company and outside experts conversant with compliance (lawyers or certified public accountants) The resolution shall be adopted by a two-thirds majority of the members present, including outside experts and Compliance Officer Report to the Investment Corporation
Aligning interests of unitholders with those of TLC To serve the interests of both the Investment Corporation and TLC, the Asset Management Company has received notice outlining TLC’s intentions as follows: ①TLC will hold Approx. 10% of the investment units issued before the listing by the Investment Corporation for five years after the listing. (Note) : Holdings via affiliates of TLC are included. ② In the event of a subsequent offering following the listing, TLC will seriously consider purchasing a portion of the additional issuance.
Hold approx. 10% of the issued investment units during listing process.
46 Overview of CRR
Company Profile Overview of Organization
Name: Comforia Residential REIT, Inc (CRR) Asset Custodian Asset Management General Administration CRR (operation of the administrative Fund type: Closed-end Company instrument) Transfer agent Asset management company: TLC Comforia Investment Management INC. Mitsubishi UFJ Trsut and Banking Address: 1-16-3 Dogenzaka, Shibuya-ku, Tokyo Asset custody Officers: Hiroyuki Tohmata, Executive Director Administrative service Investors’ Meeting (President and CEO of TLC Comforia Transfer agency Investment Management INC.) Asset management Yoshihiro Kataoka, Supervising Director (lawyer) Koji Yamamoto, Supervising Director Board of Directors Accounting Sponsor support (CPA / tax accountant) service
History: June 2010 Registration of incorporation Auditor Registration by the prime Sponsor General administration (accounting, etc.) minister Ernst & Young ShinNihon LLC (registration number: Director of Heiseikaikeisha Tax Kanto Finance Bureau No. 71) Corporation August 2010 Commenced business February 2013 Listed on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange
47 Overview of Asset Management Company
Company Profile Overview of Organization
Name: TLC Comforia Investment Management INC. Shareholder’s meeting Established: October 2009
Capital: 200 million yen Corporate Auditor
Address: 1-16-3 Dogenzaka, Shibuya-ku, Tokyo Board of Shareholder: Tokyu Land Corporation100% Directors
# of directors and employees: Investment Compliance 25 (full time: as of Jan 31, 2014) Committee Committee
Business description: President & CEO Investment management Compliance Officer Registrations/Licenses Internal Audit Compliance Office Financial Instruments Business Firm, granted by the Director of the Kanto Regional Finance Bureau (Financial Instruments) Registration No. 2370 Discretionary Transaction Agent granted by the Investment Finance & Strategic Minister of Land, Infrastructure, Transport and Operation Accounting Planning Tourism, Registration No. 65 Department Department Department Building Lots and Building Transactions Business License, granted by the Governor of Tokyo (1) No. 91139
48 References
(*1) Specific investment areas defined as “Investment area” by the Investment Corporation are as follows:
Category Investment Area Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, Central Tokyo 5 major wards and Shibuya-ku Dense residential districts outside of Sub-central Tokyo Other Tokyo wards (excluding above) the 5 major wards Tokyo Metropolitan Dense residential districts in all other All other areas within Tokyo Metropolitan area Tokyo Metropolitan areas boundaries expecting strong demand
Other major cities Dense residential districts in ordinance-designated cities
Time required to arrive at the property on foot in “Minutes to Nearest Train Station,” is calculated on the assumption that it takes one minute to walk 80 meters. “Average Walk Minutes” is derived from a weighted average based on the acquisition price. “Average Building Age” is derived from a weighted average of building age of each property and acquisition price.
(*2) With regard to the properties developed by Tokyu Land Corporation and those related to the Tokyu Land Corporation Group at or before the completion, the time of supply shall be the time of completion for those in which the offering coincided with the completion, and the start of offering for those offered subsequent to completion, respectively. In the case of occupied properties acquired from an entity other than Tokyu Land Corporation, the time of supply shall be the time of property acquisition. However, in the case where the name of a property has been changedto “COMFORIA” brand or “COMFORIA LIV” brand after two months have passed since property acquisition, the time of supply shall be the time of change in property name. Total units supplied includes those sold to entities other than the Tokyu Land Corporation Group after supply and not managed as COMFORIA series at present. Total units supplied includes offices and retail establishments.
49 References
(*3) “Average maturity,” ”Weighted average rate”, “Long-term debt ratio”, “Ratio of fixed interest debt”, “Term-end interest-bearing debt ratio” and “Appraisal LTV” are calculated as follows:
“Average maturity” is derived from a weighted average based on each borrowings amount for the period until the repayment date described in the contract on borrowings, etc. “Weighted average rate” is derived from a weighted average of interest rate as of January 31, 2014 (If interest rate is significantly fixed under an interest rate swap agreement, etc., based on such fixed interest rate) in accordance with borrowings amount. “Ratio of fixed interest debt” ＝ Amount of borrowings with fixed interest rate (including those significantly fixed by interest rate swap transaction) / Borrowings (Short-term ＋ Long-term) amount “Appraisal LTV” is calculated based on the following formula as at the end of the period: LTV as at the end of the 7th fiscal period (¥43,720 million) / Total real estate appraisal value (¥83,856 million)
(*4) Based on statistics from National Institute of Population and Social Security Research's "Household statistical projection for Japan (by prefecture) Dec. 2009 compiled from a survey conducted in 2005. Post-2010 figures are projections. Areas in “Tokyo Metropolitan area” are Tokyo-to, Saitama- ken, Kanagawa-ken and Chiba-ken.
50 Disclaimer
All content presented in this document is provided solely for informational purposes with regard to CRR and is not intended to serve as an inducement or solicitation to trade in any product offered by CRR.
Information provided in this document contains forward-looking statements such as business forecasts, which should not be construed as CRR’s commitment to or guarantee of future performance.
COMFORIA Residential Investment Corporation and TLC COMFORIA Investment Management do not guarantee or warrant the accuracy and safety of the information provided in this document, and shall not be liable for updating the information provided.
Please be advised that forward-looking statements provided herein may be subject to change or deletion without prior notice.
Duplication or reproduction of any item presented as information herein without the prior consent of CRR or its authorized representative is strictly prohibited.
51