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
  • Portfolio centering on office properties in Tokyo, featuring both growth potential and stability
  • Quality of individual properties exerting competitiveness
Vigorously Selective Investment in Prime Properties
  • Vigorously selective investment that focuses on location and price
  • Dynamic investment utilizing acquisition capacity
  • Continuous endeavors to reinforce the pipelines
Leasing Focused on Rents
  • Strategic utilization of rent-free periods and value enhancement measures
  • Reinforcement of endeavors to raise new contract rents and upward revision of rents upon contract renewal
Strong Financial Base
  • Financial strategy based on lengthening of loan periods, diversifying repayment dates and borrowing funds at fixed interest rates
  • Appropriate control of debt costs

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