NIPPON REIT Investment Corporation(TSE code：3296)

Performance Report (October - December 2021)

February 17, 2022

NIPPON VISION

Serious, Steady, Solid.

Occupancy Rate and Free Rent Period Trend

  • Both contract and rent occupancy rate show stable trend
    • Although market vacancy rate is on the rise, the occupancy rate of the portfolio remains stable
    • Rent occupancy remains 1-4% lower than contract occupancy rate due to a leasing promotion of granting longer rent-free period

《 Occupancy rate trend and forecast 》

《Trend of occupancy rate based on rent (office) 》

100.0%

Based on contract (office/actual)

Based on contract(office/forecast)

Based on rent

(office/actual)

Based on rent

(office/forecast)

100.0%

99.3%

98.6%

98.1% 98.7%

100.0%

98.5%

98.1%

95.0%

99.5%

98.9%

95.8%

96.1%

95.3%

95.2%

95.0%

94.4%

90.0%

90.0%

1

15th

7

16th

13

17th

19

18th

25

19th

31

20th

37

21st

period

period

period

period

period

period

period

Dec. 2019

Jun. 2020

Dec. 2020

Jun. 2021

Dec. 2021

Jun. 2022

Dec. 2022

85.0%

Total

(actual)

Total

(forecast)

《Trend of average free rent period(1)》

5month

Office

(actual)

Office

(forecast)

Residence (actual)

Residence (forecast)

4month

Retail

(actual)

Retail

(forecast)

80.0%

2.9month

3month

15th

16th

17th

18th

19th

20th

21st

2.0month

1.5month

period

period

period

period

Period

Period

Period

1.2month

2month

99.4%

98.6%

97.6%

97.8%

98.1％

97.9％

98.1％

Total

0.8month

1month

100.0%

99.3%

98.5%

98.1%

98.6%

98.1％

98.7％

Office

0month

98.6%

97.6%

95.8%

97.1%

97.3％

97.4％

97.0％

Residence

15th period

16th period

16th period

18th period

19th period

(Dec. 2019)

(Jun. 2020)

(Jun. 2020)

(Jun. 2021)

(Dec. 2021)

94.1%

92.2%

95.4%

97.8%

97.7%

97.7%

97.1%

Retail

note

1. "Average free rent period" is calculated by following formula for each space, for new lease contracts conducted during respective period.

(Reduction of rent and common benefit expense due to free rent etc.) ÷ (total amount of monthly rents and common benefit expenses in normal times)

1

Rent Increase/Decrease Upon Tenant Replacement and Status of Rent Renewal

  • The level of office rent change ratio upon tenant replacement is decreasing due to the impact of the COVID-19
    • Move-outratio decreased to the 3% level in the 19th period
    • Rent increase/decrease rate for office at the time of tenant replacement turned negative. COVID-19, rent increase (decrease) upon tenant replacement for both offices and residential properties remained positive. We look forward to the post-pandemic demand recovery.

《 Monthly rent increase (decrease) upon tenant replacement》

《Trend of record of rent renewals ( floor space)(3) 》

●Office

①

Total rent increase

Total rent decrease

Rent change ratio (1)

① ②

②

24.4%

26.2%

25.8%

10,000

28%

18th period

19th period

7,500

21%

④

139 tenants

129 tenants

5,000

9,188

7,015

5,154

14%

13,343 tsubo

11,512 tsubo

2,500

6,388

7%

0

747

0

1.3%

0%

④

0

▲ 4,394

▲ 3,302

▲ 58

▲ 2,500

▲7%

Space (tsubo)

Ratio

Space (tsubo)

Ratio

▲ 5,000

▲ 6.4%

▲14%

15th period 16th period 17th period 18th period 19th period

① Increase

901

6.8%

319

2.8%

Net total

(Dec. 2019)

(Jun. 2020)

(Dec. 2020)

(Jun. 2021)

(Dec. 2021)

② No Change

351

2.6%

1,501

13.0%

6,330

9,188

7,015

759

▲2,554

③ Decrease

0

0.0%

0

0.0%

(¥.000/month)

●Residence(2)

④ Not negotiated

12,091

90.6%

9,691

84.2%

(¥.000/month)

Total rent increase

Total rent decrease

Rent change ratio(1)

《Status of rent increase (decrease) upon contract renewals》(office /monthly rent)

5.8%

(4)

1,500

6%

Total rent increase

Total rent decrease

Rent increase ratio

12,000

12.0%

Rent increase

1,000

2.9%

3.1%

4%

10,500

10.5%

ratio upon

958

500

1,401

676

2%

9,000

6.8%

7.1%

contract renewals

7.5%

9.0%

660

600

0.6%

7,500

6.0%

7.5%

1.2%

5.2%

0

0%

6,000

6.0%

10,940

▲ 155

▲ 34

▲ 151

▲ 765

▲ 371

4,500

4.5%

▲ 500

▲ 2%

3,000

6,497

3.0%

▲ 1,000

15th period 16th period 17th period 18th period 19th period

▲ 4%

1,500

2,082

297

1.5%

0

886

0.0%

(Dec. 2019)

(Jun. 2020)

(Dec. 2020)

(Jun. 2021)

(Dec. 2021)

Net total

504

566

1,250

192

305

▲ 1,500

0

0

0

0

0

▲ 1.5%

(¥.000/month)

15th period

16th period

17th period

18th period

19th period

note

(¥,000/month)

1."Rent change ratio" is calculated in each period as follow, rounded to the first decimal place.

(Dec. 2019)

(Jun. 2020)

(Dec. 2020)

(Jun. 2021)

(Dec. 2021)

((total rent after tenant replace - total rent before tenant replacement )/ total rent before tenant replacement)

2.Residential properties of which rents are not fixed, are stated.

3. In case that tenant categorized "Unchanged" in each period accepted rent increase after the following period, the area subject to rent renewal of the tenant is included the area categorized "Unchanged" and "Increase" in the relevant period.

4. "Rent increase ratio" is calculated in each period as below, rounded to the first decimal place. ((total rent increase after rent renewal - total rent before rent renewal )/ total rent before rent renewal)

2

Status of cancellation notices

Property name

Occupan-

Status of cancellation notice

Assumed

cy rate

occupancy rate(1)

Property name

Occupan-

cy rate

Status of cancellation notice

Assumed

occupancy rate(1)

Itohpia Iwamotocho

100.0%

1 floor

67 tsubo

cancellation notice

100.0%

(Feb. 2022)

ANNEX Building

Kanda Ocean Building

100.0%

2 spaces

29 tsubo

cancellation notice

100.0%

(Mar. 2022)

FORECAST Kameido

92.9%

1 space

66 tsubo

vacant

100.0%

(Mar. 2022)

Hiroo Reeplex B's

100.0%

1 floor

61 tsubo

cancellation notice

100.0%

(Apr. 2022)

Itohpia Iwamotocho

100.0%

2 floors

182 tsubo

cancellation notice

100.0%

(Apr. 2022)

1-chome Building

FORECAST Gotanda

100.0%

1 space

62 tsubo

cancellation notice

100.0%

(Apr. 2022)

WEST

Homat Horizon Building

100.0%

1 floor

248 tsubo

cancellation notice

100.0%

(Apr. 2022)

The Square

94.9%

1 space

23 tsubo

vacant

100.0%

(May. 2022)

BECOME SAKAE

100.0%

1 floor

159 tsubo

vacant

100.0%

(May. 2022)

Nishi-Gotanda8-chome

100.0%

1 floor

92 tsubo

cancellation notice

100.0%

(Jun. 2022)

Building

FORECAST Shinjuku

100.0%

1 space

135 tsubo

cancellation notice

96.8%

(Apr. 2022)

SOUTH

1 space

118 tsubo

NORE Meieki

100.0%

1 space

68 tsubo

cancellation notice

94.7%

(Mar. 2022)

Itohpia Iwamotocho

100.0%

1 space

75 tsubo

cancellation notice

93.0%

(Aug. 2022)

2-chome Building

1 space

73 tsubo

MK Kojimachi Building

91.7%

1 floor

43 tsubo

vacant

91.7%

(Jan. 2022)

Omiya Center Building

100.0%

3 spaces

386 tsubo

cancellation notice

91.1%

(Jun. 2022)

Otakibashi Pacifica

90.1%

1 floor

41 tsubo

vacant

90.1%

(Jan. 2022)

Building

Toranomon Sakura

89.2%

1 space

99 tsubo

vacant

89.2%

(Jan. 2022)

Building

REID-C Iidabashi Building 100.0%

REID-C Gotenyama Building 88.6%

Sannomiya First Building

97.5%

FORECAST Ningyocho

100.0%

PLACE

GreenOak Kayabacho

86.4%

REID-C Megurofudomae

85.7%

FORECAST Shinagawa

84.2%

FORECAST Takadanobaba 100.0%

FORECAST

100.0%

Shin-Tokiwabashi

Nishi-Shinjuku Sanko

83.5%

Building

TK Gotanda Building

100.0%

GreenOak Takanawadai

85.8%

Gotanda Sakura Building

100.0%

FORECAST Mita

100.0%

ANTEX24 Building

100.0%

Hatchobori River Gate

85.2%

1 floor

27 tsubo

cancellation notice

1 floor

27 tsubo

1 floor

37 tsubo

vacant

1 space

27 tsubo

vacant

4 spaces

109 tsubo

cancellation notice

1 floor

72 tsubo

cancellation notice

1 floor

123 tsubo

cancellation notice

1 floor

123 tsubo

vacant

1 floor

39 tsubo

vacant

1 floor

39 tsubo

cancellation notice

1 floor

108 tsubo

vacant

1 floor

277 tsubo

cancellation notice

2 floors

90 tsubo

cancellation notice

1 space

123 tsubo

vacant

2 floors

203 tsubo

cancellation notice

1 floor

58 tsubo

cancellation notice

1 floor

112 tsubo

vacant

2 floors

97 tsubo

cancellation notice

1 floor

116 tsubo

cancellation notice

2 floors

181 tsubo

cancellation notice

2 floors

72 tsubo

vacant

1 floor

38 tsubo

cancellation notice

88.7% (Apr. 2022)

88.6% (Jan. 2022)

87.6% (Aug. 2022)

87.1% (Mar. 2022)

86.4% (May. 2022)

85.8% (Mar. 2022)

84.2% (Jan. 2022)

83.8% (Aug. 2022)

83.6% (Aug. 2022)

83.5% (Jan. 2022)

81.9% (Jul. 2022)

78.5% (Mar. 2022)

78.5% (Apr. 2022)

78.4% (May. 2022)

73.5% (Apr. 2022)

51.9% (Feb. 2022)

Properties of which occupancy rate is expected to be 100% because new lease contracts have been concluded or we have already received tenancy applications for subject area

1.Assumed occupancy rate refers to the occupancy rate after the realization of all tenancy applications and cancellation notices at the end of Jan. 2022.

3

《Major Implementation(from Jul. to Dec. 2021)》
《FORECAST Shinjuku AVENUE and 7 properties》 Increase in revenue by setting share cycle and electric
scooter ports

Implementation Status and Major plans of Engineering Management

  • Planning and carrying out the Engineering Management to boost internal growth

●●

●●

●

  • Approx.¥1.02mn p.a. revenue increase is expected by setting share cycle and electric scooter ports

《Major Plan(from Jan. 2022)》

《NORE Meieki and 4 properties》

Increase in revenue by setting antennas on the rooftop

  • Revenue increase is expected by setting antennas for mobile phone etc. on the rooftop

●●

●

《25 properties》

●●

Switching to new power companies (PPSs)

●●

  • Approx.¥4.12mn p.a. electricity cost is expected to be reduced by switching to PPSs (new type of power producer and supplier)

《Towa Higashi-Gotanda Building》

●●

Put into use an unused space

●●

  • ¥0.72mn p.a. revenue increase is expected by put into use an unused space as a warehouse

《FORECAST Shinjuku SOUTH》

Increase in revenue by replacing parking company

  • Revenue increase is expected by replacing parking company

《Omiya Center Building》

Renting of Conference Rooms to Outside Users

  • Revenue increase is expected through renting of rental conference room to outside users

●●

●●

●●

●

《FORECSAT Kameido, DeLLCSKASAI, LAPUTA KUJO》 Increase in revenue by subleasing of open parking lot

  • Approx.¥4.58mn p.a. revenue increase is expected by subleasing of open parking lot

《Tower Court Kitashinagawa, FORECAST Kameido》

Providing Kitchen Wagons

  • Approx.¥0.47mn p.a. revenue increase is expected by providing Kitchen Wagons to blank space

Measure to increase revenue

Measure to improve tenant satisfaction

Measure to reduce expense

Measure with environmental consideration

《Residential properties》

●●

●●

Introduction of distribution system

●●

• Introduction of distribution system that can be used even if an auto-●

  • lock apartments

《19th period Status of Engineering Management Implementation(1)》

900

●●

600

371

610

735

●●

74

●

300

81

9

56

16

0

Jul.

Aug.

Sep.

Oct.

Nov

Dec.

Total in Budget

(¥mn)

19th period

1. Total amounts of Planned capital investment and Strategic value-enhancing investment are stated. Furthermore, the figures may change when accounting items will be determined.

4

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Nippon REIT Investment Corporation published this content on 17 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 08:53:03 UTC.