Sojitz Corporation 32 Highlights of the 5Th Period 4 212-227-245 0-125-198 Cushman & Wakefield Financial Results (Statement of Income) 5 Asset Management K.K
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Logo Color (Header, Footer, Cover Page) 210-35-42 0.75PT 23-70-158 150-150-150 220-221-222 Tint Color Chart Color 252-222-221 237-20-91 212-227-245 0-125-198 254-240-217 250-166-26 218-212-229 162-147-191 Securities Code:3296 197-228-237 109-188-209 Investor Presentation http://www.nippon-reit.com/en/ for the 5th Period (ended December 31,2014) 227-241-229 115-185-123 February 20, 2015 Line Color 243-133-142 96-163-217 251-192-95 239-171-255 138-228-226 255-161-97 166-166-166 Logo Color (Header, Footer, Cover Page) 210-35-42 Table of Contents 0.75PT 23-70-158 Executive Summary 5. Appendix 150-150-150 Summary of Financial Results / Public Offering NIPPON REIT’s Policy 28 220-221-222 Highlights/ Summary of Financial Forecasts / Market Overview 29 Tint Color Chart Color Growth Strategy 2 Investment Policy 30 Overview of Sponsor Support 31 252-222-221 237-20-91 1. Summary of Financial Results Sojitz Corporation 32 Highlights of the 5th Period 4 212-227-245 0-125-198 Cushman & Wakefield Financial Results (Statement of Income) 5 Asset Management K.K. 33 Operation Results 6 254-240-217 250-166-26 Agility Asset Advisers Inc. 34 Financial Status 7-8 Governance Structure 35 218-212-229 162-147-191 2. Public Offering Highlights (February 2015) Portfolio and Tenant Allocation 36 197-228-237 109-188-209 Offering Highlights 11 Portfolio Appraisal Value 37 Outcome of Public Offering 12 List of properties 38-42 227-241-229 115-185-123 Portfolio properties 13 Performance by property 43-44 Portfolio Map 14 Balance Sheet 45 Line Color Reinforcement of portfolio risk tolerance 15 Income Statement 46 243-133-142 Investment centering on office buildings Unitholder Composition in Central 6 wards of Tokyo 16 and Historical Unit Price 47 96-163-217 Asset Management Company 48 3. Financial Forecasts 251-192-95 Financial Forecasts 18 239-171-255 4. Growth Strategies External Growth Strategy 21-22 138-228-226 Internal Growth Strategy 23-24 255-161-97 Financial Strategy 25 Achievement in 5th Period and 166-166-166 Future challenge 26 1 Logo Color (Header, Footer, Cover Page) 210-35-42 Executive Summary 0.75PT 23-70-158 150-150-150 220-221-222 Tint Color Chart Color Summary of 252-222-221 237-20-91 Financial Results Distribution per unit (DPU) ¥7,109 (1) th (a ¥47 increase from the forecast(¥7,062) ) 212-227-245 0-125-198 5 Period (as of December 31, 2014) 254-240-217 250-166-26 Offering size : ¥50.2 billion Public Offering 218-212-229 162-147-191 Total acquisition: 31properties ¥76.8 billion(2) Highlights Achieved above ¥150 billion AUM 197-228-237 109-188-209 (February 2015) and growth in NAV and DPU 227-241-229 115-185-123 Summary of th Line Color 6 Fiscal Period : DPU ¥6,527 Financial Forecasts 7th Fiscal Period : DPU ¥7,234 243-133-142 6th period and 7th period 96-163-217 251-192-95 Next target AUM of ¥200 billion within 1-2 years Growth Strategies Improvement of occupancy rate and further rent growth 239-171-255 138-228-226 255-161-97 Notes 1. Based on “Summary of Financial Results for the 4th Fiscal Period Ended June 2014”, announced on August 14, 2014 2. Including “Otakibashi Pacifica Building” scheduled to be acquired on March 12, 2015. 166-166-166 2 Logo Color (Header, Footer, Cover Page) 210-35-42 0.75PT 23-70-158 150-150-150 220-221-222 Tint Color Chart Color 252-222-221 237-20-91 212-227-245 0-125-198 254-240-217 250-166-26 218-212-229 162-147-191 197-228-237 109-188-209 1. Summary of Financial Results 227-241-229 115-185-123 Line Color 243-133-142 96-163-217 251-192-95 239-171-255 138-228-226 255-161-97 166-166-166 3 Logo Color (Header, Footer, Cover Page) th 210-35-42 Highlights of the 5 Period 0.75PT 23-70-158 150-150-150 220-221-222 Highlights of the 5th period (ended December 31, 2014) Tint Color Chart Color 252-222-221 237-20-91 212-227-245 0-125-198 DPU ¥7,109 (forecast as at August 14, 2014 : ¥7,062) 254-240-217 250-166-26 218-212-229 162-147-191 (1) Office: 5.0% NOI Yield 5.1% Residence: 5.6% 197-228-237 109-188-209 227-241-229 115-185-123 Total: 96.2% (as of Jun. 2014) → 94.1% (as of Dec. 2014) Line Color Occupancy Rate 94.1% Office: 96.3% (as of Jun. 2014) → 92.2% (as of Dec. 2014) Residence: 96.9% (as of Jun. 2014) → 96.9% (as of Dec. 2014) 243-133-142 96-163-217 LTV (2) 49.2% 47.8% (as of Jun. 2014) → 49.2% (as of Dec. 2014) 251-192-95 239-171-255 138-228-226 255-161-97 Notes 1. NOI Yield=Actual NOI/Acquisition Price. Rounded to one decimal place. Actual NOIs are calculated at an annualized rate. 166-166-166 2. LTV=Total Loans Payable / Total Asset. Rounded to one decimal place. 4 Logo Color (Header, Footer, Cover Page) 210-35-42 Financial Results (Statement of Income) 0.75PT 23-70-158 150-150-150 220-221-222 Income statement summary of the 5th period Major changing factors (vs Forecast) Tint Color Chart Color Unit:¥ million Unit:¥million 252-222-221 237-20-91 5th period 5th period Forecast Rental revenue increase (Central Daikanyama, etc.) +6 Actual (as of Aug. 14, (a-b) 212-227-245 0-125-198 Other rental revenue increase (a) 2014) (b) (Utilities and penalty revenue) +21 254-240-217 250-166-26 Rental expense decrease (Leasing expense) +17 Operating Revenue 2,408 2,379 28 Non-operating profit (Consumption tax refund, etc.) +2 218-212-229 162-147-191 Operating Income 1,245 1,200 44 Loan related expense increase (Central Daikanyama) ▲11 197-228-237 109-188-209 Ordinary Income 1,078 1,043 34 227-241-229 115-185-123 Unit:¥million Net Income 1,077 1,042 35 1100 +17 +2 ▲11 Line Color 1075 +21 DPU(1) Non- 243-133-142 ¥7,109 ¥7,062 ¥47 Operating Loan Profit Related +6 Leasing 1050 Expenses NOI 1,849 1,803 - Expense 96-163-217 Decrease Utilities Rental 1025 & Penalty NOI Yield(2) 5.1% 5.1% - Revenue 251-192-95 Actual 1,077 Days 184 184 - 1000 239-171-255 Forecast (3) (14 Aug) NAV per unit ¥265,668 - - 975 138-228-226 1,042 950 255-161-97 Notes 1. Distributions for the 5th period is calculated by drawing down ¥1million retained earnings carried forward whilst the forecast was calculated by drawing down ¥29million. 2. Actual NOIs are calculated at an annualized rate. Rounded to one decimal place. th 166-166-166 3. NAV per unit is calculated using following formula, figures are as of the end of the 5 period. {Net Asset (¥38,027mm) + Total Appraisal Value (¥77,564mm) – Total Book Value(¥75,259mm)} / Investment Units Issued and Outstanding(151,810 units) 5 Logo Color (Header, Footer, Cover Page) 210-35-42 Operation Results 0.75PT 23-70-158 Portfolio Summary (as of December 31, 2014) 150-150-150 Portfolio Allocation 220-221-222 21 ¥73.8bn NOI Yield AUM (Based on 5.0% Office Tint Color Chart Color properties appraisal NOI) 2.1% 24.4% Residence 14.0% Average 252-222-221 237-20-91 Office 14 ¥55.9bn Property 17.7 By properties Age yrs By asset 6 Central wards Location(1) type 212-227-245 0-125-198 3 Metropolitan Areas Occupancy 75.6% 7 ¥17.9bn Ordinance-Designated 83.9% Residence 94.1% Cities etc. properties rate 254-240-217 250-166-26 218-212-229 162-147-191 External Growth Internal Growth Acquisition of “Central Dakianyama” on December 19, 2015 Improvement of portfolio profitability through 197-228-237 109-188-209 rent increase Address Shibuya ward, Tokyo Performance of rent renewal (office)(4) 227-241-229 115-185-123 Structure SRC 8F/B1F Central Daikanyama Line Color Completion August, 1991 Increased Unchanged Decreased Total Acquisition ¥ 3,510 mm price 243-133-142 No. of % 6 25% 18 75% 0 0% 24 100% Use Office, shop Tenants (2) 96-163-217 NOI Yield 4.3% Areas % 883 29% 2,214 71% 0 0% 3,097 100% (Tsubo) Occupancy 251-192-95 rate(2) 81.2% Rent 10.4 − − 3.2 Established 4 bridge funds and be granted first negotiation increase(%) 239-171-255 rights (22properties ¥56.3bn(3)) Agreement #of assets Agreement #of assets Notes 138-228-226 1. Please refer to the notes in P.30 for the definitions of “6 Central Wards”, date (Price) date (Price) “3 Metropolitan Areas” and “Ordinance-Designated Cities, etc.” 2. NOI Yield of “Central Daikanyama” is based on the appraisal value as of the end of Godo kaisha Oct. 28 16 Godo Kaisha Dec.24 4 the 5th period. Furthermore, the occupancy rate is as of the end of the 5th period. 255-161-97 Nicolas Capital1 2014 (¥33.3bn) Nicolas Capital4 2014 (¥9.1bn) 3. Based on the acquisition price. Whilst the acquisition price of “Gotanda Ohashi Investment TMK” is based on the right of first negotiation. Godo Kaisha Sep.10 1 Gotanda Ohashi Dec.16 1 4. “Performance of rent renewal (office)” is the results of rent renewal pertaining to the 166-166-166 Nicolas Capital2 2014 (¥7.3bn) Investment TMK 2014 (¥6.5bn(3)) existing tenants from the date of IPO (April 24, 2014) to December 31, 2014.