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 January 2020.
 In the fiscal period ended January 2020, we entered into an agreement for disposition of TOKYU REIT Akasaka Hinokicho Building and acquisition of KN Jiyugaoka Plaza through property replacement with ORIX JREIT Inc., based on which the replacement was implemented in 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 ¥664 million and provision of reserve for reduction entry of ¥356 million, which are the amounts for the 49% quasi-co-ownership interest portion, were posted in the fiscal period ended January 2020.
 In addition to the full-period contribution of the revenue increase due to the exchanging of properties with our sponsor Tokyu Corporation and new acquisition that were implemented in the fiscal period ended July 2019, revenue increased due to rent revisions in the fiscal period ended January 2020, leading to increase in revenue from property leasing of ¥131 million from the previous fiscal period and increase in NOI from property leasing of ¥95 million from the previous fiscal period.
 The above resulted in operating income of ¥4,049 million (increase of ¥699 million from the previous fiscal period), net income of ¥3,580 million (increase of ¥723 million from the previous fiscal period) and net income per unit of ¥3,662 (increase of ¥739 from the previous fiscal period). After retaining a portion as provision of reserve for reduction entry, distribution per unit will be ¥3,298 (increase of ¥375 from the previous fiscal period).
 As for subsequent fiscal periods, we expect performance of increase in revenue and increase in income due to high occupancy rate exceeding 99% being maintained with the contribution of the December 2019 rent revisions at QFRONT and other rent revisions at properties in the property leasing business.
 Gain on sale of real estate of ¥701 million and provision of reserve for reduction entry of ¥375 million, which are the amounts for the 51% quasi-co-ownership interest in TOKYU REIT Akasaka Hinokicho Building, are expected to be posted in the fiscal period ending July 2020. Gain on sale of real estate is forecast to decrease in the fiscal period ending January 2021 as we have no property dispositions planned. The forecast is distribution per unit of ¥3,460 (increase of ¥162 from the previous fiscal period) for the fiscal period ending July 2020 and ¥3,240 (descrease of ¥220 from the previous fiscal period) for the fiscal period ending January 2021.
 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.

March 2020