Message from Executive Director

On behalf of TOKYU REIT, I would like to express my sincere appreciation to all of you, our unitholders, for your continued support and patronage to us.

This page provides an overview of our operating environment and results for the 26th fiscal period February 1, 2016 to July 31, 2016.

Kazuyoshi Kashiwazaki
Executive Director
TOKYU REIT, Inc.
Representative Director & President, Chief Executive Officer
Tokyu Real Estate Investment Management Inc.

Kazuyoshi Kashiwazaki

In the fiscal period under review, in addition to the acquisition of Tokyu Bancho Building and the disposition of Tokyu Saginuma Building in March 2016 through reciprocal sale and purchase with the sponsor, TOKYU REIT conducted disposition of TOKYU REIT Hatchobori Building in May 2016.
As a result, the number of properties within the portfolio of TOKYU REIT as of the end of July 2016 became 29 with total appraisal value of ¥244.5 billion (unrealized gains of ¥32.7 billion) and the overall portfolio occupancy rate was 97.0%.
As for performance of the fiscal period under review, TOKYU REIT posted ¥9,500 million in operating revenues (up ¥2,211 million from the previous fiscal period) and ¥2,926 million in net income (up ¥354 million from the previous fiscal period and up ¥69 million from the performance forecast). This is due to the gain and loss on sales of properties (gain on sales of properties of ¥2,349 million, loss on sales of properties of ¥1,841 million and difference of + ¥508 million) accompanied by the disposition of the above two properties, factors for income decrease due to move-out of a large tenant from Setagaya Business Square (SBS) in May 2016 and other factors.
As a result of retaining a portion of gain on sales of properties above as provision of reserve for reduction entry, we decided to declare a cash distribution per unit of ¥2,695 (up ¥64 from the previous fiscal period and up ¥65 from the performance forecast).
TOKYU REIT will strive to maximize unitholder value through “investment in highly competitive properties in areas with strong growth potential.”
TOKYU REIT greatly appreciates your continued support.

September 2016

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