as of December 31, 2023

Financial Results for All Fiscal PeriodsXLS13.6KB

	42nd	43rd	44th	45th (Forecast)	46th (Forecast)
	(Dec. 31, 2022)	(Jun. 30, 2023)	(Dec. 31, 2023)	(Jun. 30, 2024)	(Dec. 31, 2024)
Operating revenue (million yen)	18,739	18,173	17,411	17,695	17,916
Ordinary income (million yen)	8,469	8,099	7,357	7,479	7,499
Net income (million yen)	8,469	8,098	7,356	7,479	7,499
Total cash distributions (million yen)	7,728	7,578	7,578	-	-
Total assets (million yen)	507,655	510,069	510,802	-	-
Total unitholders’ equity (million yen)	273,603	273,974	273,752	-	-
Equity ratio (%)	53.9	53.7	53.6	-	-
Unitholder’s equity per unit (yen)	274,378	274,749	274,527	-	-
Distribution per unit (yen)	7,750	7,600	7,600	7,600	7,600

• The forecasted figures in the above table are the current forecasts of operating results, and should not be construed as a guarantee of the amount of distribution per unit.
• Figures in yen have been rounded down to the nearest specified unit.

Market Environment

The Office Property Leasing Market

In the office property leasing market, the needs of tenants to relocate for expansion and expand office spaces in the same buildings are gradually recovering due to strong corporate performance and the increasing attendance rate, and the vacancy rate in central Tokyo is declining moderately. There are also some areas where average rent turned to rise. Similar trends are observed in Greater Tokyo and other cities.

The Retail Property Leasing Market

At urban retail properties which JPR targets for investment, although the impact of rising costs, which are caused by rising general prices, and labor shortages was seen in some areas, sales are on a recovery trend with an increase in the number of customers visiting stores due to the recovery in the flow of people and the increase in demand from inbound foreign tourists.

The For-Sale Real Estate Market

Active real estate transactions continue to take place in Japan against the backdrop of relatively low interest rates among other factors. Close attention must continuously be paid, however, to how interest rate trends and the foreign exchange market may affect the market conditions going forward. For office properties that are major targets of JPR for investment, blue-chip properties are in short supply while investors still show a strong appetite to acquire them. Thus, with low-yield transactions continuing to prevail, the acquisition environment remains harsh. Accordingly, investors continue to look for ways to effectively acquire properties, such as by diversifying the target assets for investment and conducting asset replacement.
In addition, amid the ongoing normalization of socio-economic activities, domestic demand centered on consumer spending as well as demand from inbound foreign tourists are on a recovery trend, and transactions of hotels for which investors have shown a cautious attitude are also becoming active.