To All Readers:
Hankyu REIT is pleased to have been able to make progress in all aspects of external growth, internal growth as well as finance over the past year.
First to note is the enhancement of portfolio quality. With transfer of two properties generating low yields and new acquisition of two properties, the average yield improved and depreciated properties decreased. Out of the properties acquired, one had been developed by the sponsor and the other was acquired on a negotiation basis, enabling us to pursue acquisition emphasizing fair value without being fanned by ongoing rather heated real estate market trends.
In terms of internal growth, the occupancy rate of Sphere Tower Tennozu, which had been our concern, has improved to 88.1%. We are also continuing to implement tenant replacement and upward rent revisions for other properties that we own.
In terms of finance, we have realized a more stable financial standing through reduction of fund procurement costs, extension of borrowing periods and diversification of debt repayment dates.
Unpredictable movements, such as BREXIT (the U.K. withdrawal from the EU) and the U.S. presidential election, are seen throughout the world.
We announced the financial results for the 23rd fiscal period (fiscal period ended November 2016) on January 24. Distribution per unit of 2,626 yen (up 0.2% from the forecast) was posted as an actual amount.
We will strive to meet the expectations of our unitholders.