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Message from the Management

We, ORIX JREIT Inc., and our asset management company, ORIX Asset Management Corporation, would like to express our sincere gratitude to our unitholders for their continued loyal patronage and support.

The domestic economic environment in which we operate continues to be on a recovery trend while the world economy also continues with improvements as evidenced by gradual expansion of the U.S. economy, despite some national or regional differences.
On the other hand, however, factors of instability in the world economy may be found due to mounting geopolitical tensions in Asia including North Korea, the Middle East and other regions.

Looking at the domestic real estate market, expected yields have remained stable at low levels for all asset types, and thus prime properties continue to be scarce. On the other hand, adjusting to the loosening of the supply-demand balance prior to a mass supply of large-scale offices in central Tokyo had been a concern in the rental real estate market. However, as leasing of newly supplied buildings has been progressing smoothly in general, such concern for the future has eased slightly.

In this environment, we are pushing ahead with various initiatives, including diversification of growth opportunities through property acquisition, promotion of direct property management leasing and reinforcement of financial stability, in order to enhance unitholder value.
In the 31st fiscal period ended August 31, 2017, we leveraged our sponsor pipeline and acquisition capacity to purchase CENTRUM ROPPONGI, a medium-scale office building near Roppongi Station with significant scarcity value for a total of 12.4 billion yen. Furthermore, the occupancy rate at the end of the 31st fiscal period remained at a high of around 98%, while we have also been able to achieve internal growth by implementing higher rents through both tenant replacements and rent renewals. As a result of the above, with regard to distributions, we are able to pay out ¥3,230 per unit, an increase of ¥190 over the ¥3,040 that was forecast at the time of the previous financial results announcement.

We aim to achieve sustainable growth of unitholder value by continuing to leverage our strengths of Diversified REIT, ORIX Synergy and Operating Expertise going forward.
Again, we would like to thank our unitholders, and deeply appreciate your continued understanding and support.

Message from the Management

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