September 14, 2023
1-12-1, Dogenzaka, Shibuya-ku, Tokyo 150-0043, JAPAN
FINANCIAL REPORT
FOR THE FISCAL PERIOD ENDED JULY 2023
TOKYU REIT, Inc. is listed on the Tokyo Stock Exchange with the securities code number 8957. URL: https://www.tokyu-reit.co.jp/eng/
Contact: Tokyu Real Estate Investment Management Inc. (Investment Management Company) Yoshitaka Kimura, Representative Director & President, Chief Executive Officer
Tatsumi Yamagami, Representative Director & Executive Vice President, Chief Financial Officer Tel: +81-3-5428-5828
Planned date of filing Securities Report: October 27, 2023
Planned start of dividend payments: October 17, 2023
Supplementary documents for results: YES
Results briefing (for institutional investor and analysts): YES
This financial report has been prepared in accordance with Japanese accounting standards and Japanese law. Figures have been rounded down to eliminate amounts of less than one million yen.
PERFORMANCE FOR THE FISCAL PERIOD ENDED JULY 2023 (February 1, 2023 - July 31, 2023)
(1) Business Results | Percentage change shows the increase and decrease ratio to the previous period. | ||||||
Operating Revenues | Operating Income | Ordinary Income | |||||
(Millions of Yen) | (%) | (Millions of Yen) | (%) | (Millions of Yen) | (%) | ||
Period Ended | 8,924 | -21.2 | 4,682 | -36.1 | 4,261 | -38.1 | |
July 2023 | |||||||
Period Ended | 11,321 | 30.6 | 7,331 | 54.9 | 6,885 | 58.6 | |
January 2023 | |||||||
Return on | Ordinary | Ordinary | |||||
Net Income | Income to | ||||||
Net Income | Unitholders' | Income to | |||||
per Unit | Operating | ||||||
Equity (ROE) | Total Assets | ||||||
Revenues | |||||||
(Millions of Yen) | (%) | (Yen) | (%) | (%) | (%) | ||
Period Ended | 4,260 | -38.1 | 4,357 | 3.5 | 1.8 | 47.7 | |
July 2023 | |||||||
Period Ended | 6,885 | 58.7 | 7,042 | 5.7 | 3.0 | 60.8 | |
January 2023 | |||||||
(2) Distributions | |||||||
Distribution | Total | Distribution | |||||
Distribution | Total | in Excess of | Distributions | Payout | Ratio to | ||
per Unit | Distributions | Earnings per | in Excess of | Ratio | Unitholders' | ||
Unit | Earnings | Equity | |||||
(Yen) | (Millions of Yen) | (Yen) | (Millions of Yen) | (%) | (%) | ||
Period Ended | 3,750 | 3,666 | - | - | 86.1 | 3.0 | |
July 2023 | |||||||
Period Ended | 4,040 | 3,949 | - | - | 57.4 | 3.3 | |
January 2023 | |||||||
Note: The payout ratio is calculated by the following formula. Payout Ratio=Total Distributions/Net Income×100
Distribution per unit for the fiscal period ended July 2023 is calculated by dividing by the total number of units issued and outstanding the amount obtained after adding ¥58 million of reversal of reserve for reduction entry of replaced property to net income and subtracting ¥652 million of provision of reserve for reduction entry of replaced property from unappropriated retained earnings.
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TOKYU REIT, Inc.
Distribution per unit for the fiscal period ended January 2023 is calculated by dividing by the total number of units issued and outstanding the amount obtained after subtracting ¥2,935 million of provision of reserve for reduction entry of replaced property from unappropriated retained earnings.
(3) Financial Position
Total Assets | Net Assets | Unitholders' Capital to | Net Assets | |
Total Assets | per Unit | |||
(Millions of Yen) | (Millions of Yen) | (%) | (Yen) | |
Period Ended | 241,453 | 122,817 | 50.9 | 125,631 |
July 2023 | ||||
Period Ended | 239,993 | 122,507 | 51.0 | 125,314 |
January 2023 | ||||
(4) Cash Flows | ||||
Cash Flows from | Cash Flows from | Cash Flows from | Cash and Cash | |
Equivalents at the end | ||||
Operating Activities | Investing Activities | Financing Activities | ||
of Period | ||||
(Millions of Yen) | (Millions of Yen) | (Millions of Yen) | (Millions of Yen) | |
Period Ended | 7,582 | -359 | -3,948 | 8,050 |
July 2023 | ||||
Period Ended | 11,960 | -19,906 | 7,550 | 4,775 |
January 2023 | ||||
FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING JANUARY 2024 (August 1, 2023 -
January 31, 2024) AND THE FISCAL PERIOD ENDING JULY 2024 (February 1, 2024 - July 31, 2024)
Percentage change shows the increase and decrease ratio to the previous period.
Distribution | |||||||||||
Operating | Operating | Ordinary | Net | Distribution | in Excess of | ||||||
Revenues | Income | Income | Income | per Unit | Earnings | ||||||
per Unit | |||||||||||
(Millions | (%) | (Millions | (%) | (Millions | (%) | (Millions | (%) | (Yen) | (Yen) | ||
of Yen) | of Yen) | of Yen) | of Yen) | ||||||||
Period Ending | 9,011 | 1.0 | 4,740 | 1.2 | 4,303 | 1.0 | 4,302 | 1.0 | 3,750 | - | |
January 2024 | |||||||||||
Period Ending | 9,352 | 3.8 | 4,912 | 3.6 | 4,466 | 3.8 | 4,465 | 3.8 | 3,750 | - | |
July 2024 | |||||||||||
Reference: Estimated net income per unit for the Fiscal Period Ending January 2024: ¥ 4,401 Estimated net income per unit for the Fiscal Period Ending July 2024: ¥ 4,567
Total number of investment units issued and outstanding for the Period Ending January 2024: 977,600 units
Total number of investment units issued and outstanding for the Period Ending July 2024: 977,600 units
Note: | Distribution per unit for the fiscal period ending January 2024 is assumed to be distributed through reversal of |
part of the reserve for reduction entry of replaced property (¥60 million) after subtracting provision of reserve | |
for reduction entry of replaced property (¥696 million) from net income. | |
Distribution per unit for the fiscal period ending July 2024 is assumed to be distributed through reversal of part | |
of the reserve for reduction entry of replaced property (¥62 million) after subtracting provision of reserve for | |
reduction entry of replaced property (¥862 million) from net income. |
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TOKYU REIT, Inc.
OTHERS
-
Changes in Account Policies, changes in accounting estimates, and restatement of accounting errors Changes according to revision of account standard: No
Changes according to another reason: No
Changes in accounting estimates: No
Restatement of accounting errors: No - Total number of investment units issued and outstanding
The total number of investment units issued and outstanding is 977,600 units as of July 31, 2023 and 977,600 units as of January 31, 2023.
No investment unit is held by TOKYU REIT itself as of July 31, 2023 and January 31, 2023.
Note 1: Status of auditing procedure
This summary of financial results is not subject to audit procedures by certified public accountant or audit firm.
Note 2: Forecasts for operating revenues, operating income, ordinary income, net income, distribution per unit and distribution in excess of earnings per unit may differ significantly from actual results due to changes in operating conditions and a variety of factors. Accordingly, TOKYU REIT does not guarantee any distribution amount. Forecasts presented in this document are based on "Assumptions for Forecasts for the Fiscal Period Ending January 2024 and the Fiscal Period Ending July 2024" identified in the separate reference attached.
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TOKYU REIT, Inc.
Assumptions for Forecasts for the Fiscal Period Ending January 2024
and the Fiscal Period Ending July 2024
Forecasts for operating revenues, operating income, ordinary income, net income, distribution per unit and distribution in excess of earnings per unit for the fiscal period ending January 2024 and the fiscal period ending July 2024 are based on the following preconditions and assumptions. If major discrepancies between the following assumptions and initial forecast are found, and if they may cause a certain level of change in forecast figures displayed above, a revised forecast shall be drafted and announced immediately.
Preconditions and Assumptions | |
Property portfolio | ・Regarding the 31 properties owned by TOKYU REIT as of July 31, 2023, it is assumed that 30% |
quasi-co-ownership interest, and 40% quasi-co-ownership interest in Tokyo Nissan Taito Building will be | |
disposed on January 31, 2024, and February 29, 2024, respectively. | |
Operating | ・Revenues from real estate lease business are calculated in consideration of rent level, occupancy rate, etc. |
revenues | fluctuation factors in light of recent real estate market conditions, state of negotiations with tenants, |
presence of competitive properties in the area, etc. In addition, there is assumed to be no payment delay | |
or nonpayment by tenants. | |
・Gain on sale of real estate, etc. of ¥1,297 million in the fiscal period ending January 2024, and gain on sale | |
of real estate, etc. of ¥1,729 million in the fiscal period ending July 2024 resulting from the disposition of | |
Tokyo Nissan Taito Building are projected. | |
・Occupancy Rates as of the end of the fiscal period ending January 2024 and the fiscal period ending July | |
2024 are projected to be 99.9% and 99.3%, respectively. | |
Operating | ・Outsourcing expenses for the fiscal period ending January 2024 and the fiscal period ending July 2024 are |
expenses | projected to be ¥556 million and ¥535 million, respectively. |
・Repair, maintenance and renovation expenses for the fiscal period ending January 2024 and the fiscal | |
period ending July 2024 are projected to be ¥166 million and ¥288 million, respectively. In an aim to | |
improve the competitiveness of properties and the satisfaction of tenants under management, etc., | |
constructions scheduled in the future will be implemented with priority. Actual repair, maintenance and | |
renovation expenses for each fiscal period may, however, differ significantly from estimated amounts due | |
to unforeseen circumstances or emergencies and the others. | |
・Property and other taxes, such as fixed property tax and city planning tax, on real estate TOKYU REIT | |
possesses, are calculated based on the amount expected to be imposed in each fiscal period (Period | |
Ending January 2024: ¥677 million / Period Ending July 2024: ¥755 million). | |
Fixed property tax and other taxes paid as part of the purchase prices to the seller upon the property | |
acquisition were not recorded as expenses but included in the relevant property acquisition costs. | |
・Depreciation and amortization expenses, including associated costs and additional capital expenditure in | |
the future, are calculated based on the straight-line method (Period Ending January 2024: ¥947 million / | |
Period Ending July 2024: ¥953 million). | |
・Expenses from real estate lease business other than those listed above are calculated in consideration of | |
fluctuation factors based on results in past fiscal periods. | |
・Operating expenses other than expenses from real estate lease business (investment management fees and | |
asset custodian fees, etc.) for the fiscal period ending January 2024 and the fiscal period ending July 2024 | |
are expected to be ¥879 million and ¥870 million, respectively. | |
Non-operating | ・Interest expenses for the fiscal period ending January 2024 and the fiscal period ending July 2024 are |
expenses | expected to be ¥407 million and ¥417 million, respectively. Interest expenses include interest expense |
and interest expense on investment corporation bonds. | |
Interest-Bearing | ・The balance of interest-bearing debt as of July 31, 2023, is ¥104,500 million (long-term debt of ¥93,500 |
Debt | million and investment corporation bonds of ¥11,000 million). As for long-term debt of ¥5,500 million |
due for repayment in the fiscal period ending January 2024, it is assumed that it will be entirely | |
refinanced. | |
・As for long-term debt of ¥5,000 million due for repayment in the fiscal period ending July 2024, it is | |
assumed that it will be entirely refinanced. | |
・Balance of interest-bearing debt as of the end of the fiscal period ending January 2024 and the fiscal | |
period ending July 2024 are projected to be ¥104,500 million (long-term debt of ¥93,500 million and | |
investment corporation bonds of ¥11,000 million). | |
・LTVs as of the end of the fiscal period ending January 2024 and the fiscal period ending July 2024 are | |
projected to be 43.3% and 43.2%, respectively. | |
(LTV: Interest-bearing debt (forecast) / total assets (forecast)) |
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TOKYU REIT, Inc.
Total number of | ・It is assumed that there will be no additional issuance of investment units to the 977,600 units issued and |
investment units | outstanding as of September 14, 2023, through the end of the fiscal period ending July 2024. |
issued and | |
outstanding | |
Distribution per | ・Distribution per unit is calculated based on the distribution policy stipulated in the Articles of |
unit | Incorporation. Calculations are based on a 100% distribution of retained earnings. |
・Forecasts are based on the assumption that, as for the capital gain projected from the disposition of | |
Tokyo Nissan Taito Building, ¥696 million of the ¥1,297 million in capital gains projected, which is to | |
be posted in the fiscal period ending January 2024, and ¥862 million of the ¥1,729 million in capital | |
gains projected, which is to be posted in the fiscal period ending July 2024, are retained through | |
application of the "Special Provisions for Taxation in Cases of Repurchase of Specified Assets" (Article | |
65-7 of the Act on Special Measures Concerning Taxation) for provision of reserve for reduction entry | |
of replaced property as stipulated in the "Ordinance on Accountings of Investment Corporations." | |
・Distribution for the fiscal period ending January 2024 is assumed to be distributed through reversal of | |
part of the reserve for reduction entry of replaced property (¥60 million). | |
・Distribution for the fiscal period ending July 2024 is assumed to be distributed through reversal of part of | |
the reserve for reduction entry of replaced property (¥62 million). | |
・It is possible that the distribution per unit could change due to various factors, including changes in assets | |
under management, changes in rental revenue accompanying changes in tenants, etc., and unexpected | |
maintenance and repairs. | |
Distribution in | ・TOKYU REIT does not currently anticipate distribution in excess of earnings per unit. |
excess of earnings | |
per unit | |
Other | ・Forecasts are based on the assumption that any major revisions to regulatory requirements, accounting |
standards and taxation will not impact forecast figures. | |
・Forecasts are based on the assumption that there will be no major unforeseen changes to economic trends | |
and in real estate and other markets. | |
This notice may contain forward-looking statements, such as current plans, strategies, and future performance. These forward-looking statements are based on judgments obtained from currently available information. Please be advised that, for a variety of reasons, actual results may differ materially from those discussed in the forward-looking statements. Events that might affect actual results include, but are not limited to, fluctuations of the real estate market in Japan, general conditions of the Japanese economy, competitive pressures and relevant regulations.
This notice is a translation of the original document in Japanese and is prepared solely for the convenience of non-Japanese speakers. There is no assurance as to the accuracy of the English translation. The original Japanese notice shall prevail in the event of any discrepancies between the translation and the Japanese original.
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Tokyu REIT Inc. published this content on 14 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2023 07:40:08 UTC.