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Let’s start with Highlights of the 10th Fiscal Period and Onwards.
I would like to highlight the three points, and the first point is external growth.
During the 10th period, we acquired three office properties located in front of station and in prime area. Combined with the acquisitions associated with the 4th public offering implemented in the 11th period, our portfolio has expanded to the number of properties to 38 and the asset size to ¥389.1 billion as of January 17, 2017.
The second point I would like to mention is internal growth. In the Tokyo Office Properties, we succeeded in upward rent revision with approximately 67% of the tenants at lease renewals during the 10th period, backed by the competitiveness of our properties and our property management. The average increase rate is 10.7%. In the Urban Retail Properties, hotels continued to show a strong performance during the 10th period: sales-linked rents at hotels stood at approximately ¥200 million, and the average RevPAR of the three hotels grew into 131.4% in comparison to that for the 5th period, two and half years ago.
The third point is Financial Strategies. In the 10th period, we received an upgraded long-term issuer rating of AA, as the rating agency JCR evaluated our stable asset management performance since the listing. Since the 9th period, we have continued to both decline the average interest rate and make the borrowing terms longer. While the overall average term was extended from 3.5 years as of the end of the 9th period to 4.1 years as of the end of the 10th period, extended by 0.6 years, the average interest rate was brought down from 0.77% to 0.67% during the same period.
As a result of our efforts focusing on the above three points, the distributions per unit for the 10th period reached to ¥9,021, increase by ¥355 from the previous period and exceeding the forecast by ¥211. Besides, we achieved a substantial increase to exceed the mid- and long-term target of ¥9,000. NAV per unit was ¥385,750, also attaining 3.3% growth in comparison to the previous period. In this way, we achieved an improvement in unitholders’ value on a continuous basis.
Please turn to the next page.
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