Growth Strategy Going Forward
Aiming to Achieve Stable Growth over the medium to long term
Faced with the situation in which the government repeatedly declared states of emergency since 2020, the office market has remained on a somewhat sluggish tone for some time. At JPR, while steady progress has been made in newly leasing office properties with relatively small floor spaces, it is taking time to fill vacancies of those with larger floor spaces.
Under such circumstances, JPR posted a period-on-period decrease of 81 million yen in profits for rent business, impacted by such factors as contract cancellations by large tenants and grants of temporary rent reductions in accordance with the repeated declarations of states of emergency by the Japanese government, despite contributions of a property acquired in the previous fiscal period operating throughout the 39th fiscal period. However, as both rents and occupancy rates generally remained higher than what were assumed, JPR achieved distribution per unit of 7,657 yen, securely keeping it at a higher level than the initial forecast.
For the 40th fiscal period ending December 2021 and thereafter, we are likely to see various impacts triggered by COVID-19. To overcome these hardships, we are resolved to accurately respond to social changes and endeavor achieving appropriate asset management to grasp new opportunities for growth.
Change in Distribution per Unit and Medium-term Target
(Note)Distribution per unit as medium-term target is a management target set by TRIM, and there is no guarantee that the figure is achieved.
Factors of stable growth
|Quality of the Portfolio||
|Vigorously Selective Investment in Prime Properties||
|Leasing Focused on Rents||
|Strong Financial Base||