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Message from the Management

We, ORIX JREIT Inc., together with our asset management company, ORIX Asset Management Corporation, would like to express our sincere gratitude to all of our unitholders for your continued support and patronage.

In the domestic real estate market, expected yields have remained stable at low levels for all asset types, and thus quality properties continue to be scarce. On the other hand, the supply and demand imbalance due to the mass supply of large-scale offices in central Tokyo has been a concern in the real estate rental market. However, as we have observed the leasing of newly supplied buildings has been progressing steadily in general, we believe such concern for the future has eased moderately.

Under this environment, to further enhance unitholder value, we are pushing ahead with various initiatives, such as improving our portfolio quality by replacing properties, promoting leasing with our direct property management expertise and reinforcing financial stability.
During the 32nd fiscal period ended February 28, 2018, we disposed an office building in consideration of deteriorating future competitiveness and to improve portfolio quality. In addition, the occupancy rate at the end of the 32nd fiscal period remained at high levels of 99.4%, while we have also been able to achieve internal growth by implementing higher rents through both tenant replacements and rent renewals. Furthermore, Rating and Investment Information, Inc. (R&I) changed the outlook on our issuer rating from A+ stable to positive view after evaluating our reduced debt to equity leverage level and our continuous effort in improving the quality and diversification of our portfolio.

As a result of the above, we were able to pay out 3,299yen per unit of distribution, which is an increase of 139 yen over the 3,160 yen that was forecasted during our previous financial announcement.

Lastly, we succeeded in issuing new shares by way of public offering in March 2018 and acquired “Hotel Universal Port”, a highly scarce Universal Studios Japan official hotel, in April 2018 from our strong sponsor pipeline.

We aim to achieve sustainable growth of unitholder value by continuing to leverage our strengths as a diversified REIT, utilizing ORIX Synergy and maximizing operating expertise going forward.
Again, we would like to thank all of our unitholders, and deeply appreciate your continued understanding and support.

Message from the Management

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