代表取締役執行役員社長 柏﨑 和義





Kazuyoshi Kashiwazaki
Executive Director
TOKYU REIT, Inc.
Representative Director & President

 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.
 I hereby report our operating environment and results for the fiscal period ended July 2019.
 In the current fiscal period, by exchanging properties with our sponsor Tokyu Corporation, we sold KALEIDO Shibuya Miyamasuzaka on the one hand and acquired Shibuya Dogenzaka Sky Building and additionally acquired quasi-co-ownership interest of Tokyu Bancho Building on the other hand in March 2019. We posted a gain on the difference from this exchanging of properties of ¥39 million. Also, we acquired UNIZO Shimokitazawa Building in April 2019.
 Revenue increased due to the exchanging of properties and new acquisition and revenue increased due to rising occupancy rate and rent revisions, leading to increase in revenue from property leasing of ¥120 million from the previous fiscal period and increase in NOI from property leasing of ¥74 million from the previous fiscal period. The absence of the gain on sale of TOKYU REIT Kiba Building of ¥316 million that was recorded in the previous fiscal period, however, resulted in operating revenues of ¥3,349 million (decrease of ¥197 million from the previous fiscal period) and net income of ¥2,857 million (decrease of ¥171 million from the previous fiscal period). Distribution per unit will be ¥2,923 (decrease of ¥176 from the previous fiscal period).
 As for subsequent fiscal periods, disposition of TOKYU REIT Akasaka Hinokicho Building and acquisition of KN Jiyugaoka Plaza through property replacement with ORIX JREIT Inc. is planned. In an aim to level off increase in cash distribution due to the gain on sale of real estate from the property disposition and to accumulate reserve for reduction entry, the replacement is to take the form of 49% quasi-co-ownership interest on October 1, 2019 and the remaining 51% on March 4, 2020. As a result, gain on sale of real estate of ¥668 million and provision of reserve for reduction entry of ¥353 million are expected to be posted in the fiscal period ending January 2020, and gain on sale of real estate of ¥687 million and provision of reserve for reduction entry of ¥358 million in the fiscal period ending July 2020. The forecast is distribution per unit of ¥3,250 (increase of ¥327 from the previous fiscal period) for the fiscal period ending January 2020 and ¥3,300 (increase of ¥50 from the previous fiscal period) for the fiscal period ending July 2020.
 TOKYU REIT will continue to 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 2019