NIPPON REIT Investment Corporation(TSE code:3296)
Performance Report (October - December 2021)
February 17, 2022
NIPPON VISION
Serious, Steady, Solid.
Occupancy Rate and Free Rent Period Trend
- Both contract and rent occupancy rate show stable trend
- Although market vacancy rate is on the rise, the occupancy rate of the portfolio remains stable
- Rent occupancy remains 1-4% lower than contract occupancy rate due to a leasing promotion of granting longer rent-free period
《 Occupancy rate trend and forecast 》 | 《Trend of occupancy rate based on rent (office) 》 |
100.0% | Based on contract (office/actual) | Based on contract(office/forecast) | |||||||||||||||||||||
Based on rent | (office/actual) | Based on rent | (office/forecast) | ||||||||||||||||||||
100.0% | |||||||||||||||||||||||
99.3% | 98.6% | 98.1% 98.7% | 100.0% | ||||||||||||||||||||
98.5% | 98.1% | ||||||||||||||||||||||
95.0% | 99.5% | 98.9% | |||||||||||||||||||||
95.8% | |||||||||||||||||||||||
96.1% | 95.3% | 95.2% | 95.0% | ||||||||||||||||||||
94.4% | |||||||||||||||||||||||
90.0% | |||||||||||||||||||||||
90.0% | |||||||||||||||||||||||
1 | 15th | 7 | 16th | 13 | 17th | 19 | 18th | 25 | 19th | 31 | 20th | 37 | 21st | ||||||||||
period | period | period | period | period | period | period | |||||||||||||||||
Dec. 2019 | Jun. 2020 | Dec. 2020 | Jun. 2021 | Dec. 2021 | Jun. 2022 | Dec. 2022 | |||||||||||||||||
85.0% | |||||||||||||||||||||||
Total | (actual) | Total | (forecast) | 《Trend of average free rent period(1)》 | 5month | ||||||||||||||||||
Office | (actual) | Office | (forecast) | ||||||||||||||||||||
Residence (actual) | Residence (forecast) | 4month | |||||||||||||||||||||
Retail | (actual) | Retail | (forecast) | ||||||||||||||||||||
80.0% | 2.9month | ||||||||||||||||||||||
3month | |||||||||||||||||||||||
15th | 16th | 17th | 18th | 19th | 20th | 21st | 2.0month | ||||||||||||||||
1.5month | |||||||||||||||||||||||
period | period | period | period | Period | Period | Period | 1.2month | 2month | |||||||||||||||
99.4% | 98.6% | 97.6% | 97.8% | 98.1% | 97.9% | 98.1% | Total | 0.8month | 1month | ||||||||||||||
100.0% | 99.3% | 98.5% | 98.1% | 98.6% | 98.1% | 98.7% | Office | 0month | |||||||||||||||
98.6% | 97.6% | 95.8% | 97.1% | 97.3% | 97.4% | 97.0% | Residence | 15th period | 16th period | 16th period | 18th period | 19th period | |||||||||||
(Dec. 2019) | (Jun. 2020) | (Jun. 2020) | (Jun. 2021) | (Dec. 2021) | |||||||||||||||||||
94.1% | 92.2% | 95.4% | 97.8% | 97.7% | 97.7% | 97.1% | Retail | ||||||||||||||||
note |
1. "Average free rent period" is calculated by following formula for each space, for new lease contracts conducted during respective period.
(Reduction of rent and common benefit expense due to free rent etc.) ÷ (total amount of monthly rents and common benefit expenses in normal times) | 1 |
Rent Increase/Decrease Upon Tenant Replacement and Status of Rent Renewal
- The level of office rent change ratio upon tenant replacement is decreasing due to the impact of the COVID-19
- Move-outratio decreased to the 3% level in the 19th period
- Rent increase/decrease rate for office at the time of tenant replacement turned negative. COVID-19, rent increase (decrease) upon tenant replacement for both offices and residential properties remained positive. We look forward to the post-pandemic demand recovery.
《 Monthly rent increase (decrease) upon tenant replacement》 | 《Trend of record of rent renewals ( floor space)(3) 》 | ||||||||||||||
●Office | ① | ||||||||||||||
Total rent increase | Total rent decrease | Rent change ratio (1) | ① ② | ||||||||||||
② | |||||||||||||||
24.4% | 26.2% | 25.8% | |||||||||||||
10,000 | 28% | ||||||||||||||
18th period | 19th period | ||||||||||||||
7,500 | 21% | ||||||||||||||
④ | 139 tenants | 129 tenants | |||||||||||||
5,000 | 9,188 | 7,015 | 5,154 | 14% | 13,343 tsubo | 11,512 tsubo | |||||||||
2,500 | 6,388 | 7% | |||||||||||||
0 | 747 | ||||||||||||||
0 | 1.3% | 0% | ④ | ||||||||||||
0 | ▲ 4,394 | ▲ 3,302 | |||||||||||||
▲ 58 | |||||||||||||||
▲ 2,500 | ▲7% | ||||||||||||||
Space (tsubo) | Ratio | Space (tsubo) | Ratio | ||||||||||||
▲ 5,000 | ▲ 6.4% | ▲14% | |||||||||||||
15th period 16th period 17th period 18th period 19th period | ① Increase | 901 | 6.8% | 319 | 2.8% | ||||||||||
Net total | (Dec. 2019) | (Jun. 2020) | (Dec. 2020) | (Jun. 2021) | (Dec. 2021) | ② No Change | 351 | 2.6% | 1,501 | 13.0% | |||||
6,330 | 9,188 | 7,015 | 759 | ▲2,554 | ③ Decrease | 0 | 0.0% | 0 | 0.0% | ||||||
(¥.000/month) | |||||||||||||||
●Residence(2) | ④ Not negotiated | 12,091 | 90.6% | 9,691 | 84.2% | ||||||||||
(¥.000/month) | Total rent increase | Total rent decrease | Rent change ratio(1) | 《Status of rent increase (decrease) upon contract renewals》(office /monthly rent) | |||||||||||
5.8% | (4) | ||||||||||||||
1,500 | 6% | Total rent increase | Total rent decrease | Rent increase ratio | |||||||||||
12,000 | 12.0% | ||||||||||||||
Rent increase | |||||||||||||||
1,000 | 2.9% | 3.1% | 4% | 10,500 | 10.5% | ||||||||||
ratio upon | |||||||||||||||
958 | |||||||||||||||
500 | 1,401 | 676 | 2% | 9,000 | 6.8% | 7.1% | contract renewals | 7.5% | 9.0% | ||||||
660 | 600 | 0.6% | 7,500 | 6.0% | 7.5% | ||||||||||
1.2% | 5.2% | ||||||||||||||
0 | 0% | 6,000 | 6.0% | ||||||||||||
10,940 | |||||||||||||||
▲ 155 | ▲ 34 | ▲ 151 | ▲ 765 | ▲ 371 | 4,500 | 4.5% | |||||||||
▲ 500 | ▲ 2% | ||||||||||||||
3,000 | 6,497 | 3.0% | |||||||||||||
▲ 1,000 | 15th period 16th period 17th period 18th period 19th period | ▲ 4% | 1,500 | 2,082 | 297 | 1.5% | |||||||||
0 | 886 | 0.0% | |||||||||||||
(Dec. 2019) | (Jun. 2020) | (Dec. 2020) | (Jun. 2021) | (Dec. 2021) | |||||||||||
Net total | |||||||||||||||
504 | 566 | 1,250 | 192 | 305 | ▲ 1,500 | 0 | 0 | 0 | 0 | 0 | ▲ 1.5% | ||||
(¥.000/month) | |||||||||||||||
15th period | 16th period | 17th period | 18th period | 19th period | |||||||||||
note | (¥,000/month) | ||||||||||||||
1."Rent change ratio" is calculated in each period as follow, rounded to the first decimal place. | (Dec. 2019) | (Jun. 2020) | (Dec. 2020) | (Jun. 2021) | (Dec. 2021) | ||||||||||
((total rent after tenant replace - total rent before tenant replacement )/ total rent before tenant replacement) | |||||||||||||||
2.Residential properties of which rents are not fixed, are stated. | |||||||||||||||
3. In case that tenant categorized "Unchanged" in each period accepted rent increase after the following period, the area subject to rent renewal of the tenant is included the area categorized "Unchanged" and "Increase" in the relevant period. | |||||||||||||||
4. "Rent increase ratio" is calculated in each period as below, rounded to the first decimal place. ((total rent increase after rent renewal - total rent before rent renewal )/ total rent before rent renewal) | 2 | ||||||||||||||
Status of cancellation notices
Property name | Occupan- | Status of cancellation notice | Assumed |
cy rate | occupancy rate(1) | ||
Property name | Occupan- |
cy rate | |
Status of cancellation notice | Assumed |
occupancy rate(1) | |
Itohpia Iwamotocho | 100.0% | 1 floor | 67 tsubo | cancellation notice | 100.0% | (Feb. 2022) |
ANNEX Building | ||||||
Kanda Ocean Building | 100.0% | 2 spaces | 29 tsubo | cancellation notice | 100.0% | (Mar. 2022) |
FORECAST Kameido | 92.9% | 1 space | 66 tsubo | vacant | 100.0% | (Mar. 2022) |
Hiroo Reeplex B's | 100.0% | 1 floor | 61 tsubo | cancellation notice | 100.0% | (Apr. 2022) |
Itohpia Iwamotocho | 100.0% | 2 floors | 182 tsubo | cancellation notice | 100.0% | (Apr. 2022) |
1-chome Building | ||||||
FORECAST Gotanda | 100.0% | 1 space | 62 tsubo | cancellation notice | 100.0% | (Apr. 2022) |
WEST | ||||||
Homat Horizon Building | 100.0% | 1 floor | 248 tsubo | cancellation notice | 100.0% | (Apr. 2022) |
The Square | 94.9% | 1 space | 23 tsubo | vacant | 100.0% | (May. 2022) |
BECOME SAKAE | 100.0% | 1 floor | 159 tsubo | vacant | 100.0% | (May. 2022) |
Nishi-Gotanda8-chome | 100.0% | 1 floor | 92 tsubo | cancellation notice | 100.0% | (Jun. 2022) |
Building | ||||||
FORECAST Shinjuku | 100.0% | 1 space | 135 tsubo | cancellation notice | 96.8% | (Apr. 2022) |
SOUTH | 1 space | 118 tsubo | ||||
NORE Meieki | 100.0% | 1 space | 68 tsubo | cancellation notice | 94.7% | (Mar. 2022) |
Itohpia Iwamotocho | 100.0% | 1 space | 75 tsubo | cancellation notice | 93.0% | (Aug. 2022) |
2-chome Building | 1 space | 73 tsubo | ||||
MK Kojimachi Building | 91.7% | 1 floor | 43 tsubo | vacant | 91.7% | (Jan. 2022) |
Omiya Center Building | 100.0% | 3 spaces | 386 tsubo | cancellation notice | 91.1% | (Jun. 2022) |
Otakibashi Pacifica | 90.1% | 1 floor | 41 tsubo | vacant | 90.1% | (Jan. 2022) |
Building | ||||||
Toranomon Sakura | 89.2% | 1 space | 99 tsubo | vacant | 89.2% | (Jan. 2022) |
Building | ||||||
REID-C Iidabashi Building 100.0%
REID-C Gotenyama Building 88.6%
Sannomiya First Building | 97.5% |
FORECAST Ningyocho | 100.0% |
PLACE | |
GreenOak Kayabacho | 86.4% |
REID-C Megurofudomae | 85.7% |
FORECAST Shinagawa | 84.2% |
FORECAST Takadanobaba 100.0% | |
FORECAST | 100.0% |
Shin-Tokiwabashi | |
Nishi-Shinjuku Sanko | 83.5% |
Building | |
TK Gotanda Building | 100.0% |
GreenOak Takanawadai | 85.8% |
Gotanda Sakura Building | 100.0% |
FORECAST Mita | 100.0% |
ANTEX24 Building | 100.0% |
Hatchobori River Gate | 85.2% |
1 floor | 27 tsubo | cancellation notice |
1 floor | 27 tsubo | |
1 floor | 37 tsubo | vacant |
1 space | 27 tsubo | vacant |
4 spaces | 109 tsubo | cancellation notice |
1 floor | 72 tsubo | cancellation notice |
1 floor | 123 tsubo | cancellation notice |
1 floor | 123 tsubo | vacant |
1 floor | 39 tsubo | vacant |
1 floor | 39 tsubo | cancellation notice |
1 floor | 108 tsubo | vacant |
1 floor | 277 tsubo | cancellation notice |
2 floors | 90 tsubo | cancellation notice |
1 space | 123 tsubo | vacant |
2 floors | 203 tsubo | cancellation notice |
1 floor | 58 tsubo | cancellation notice |
1 floor | 112 tsubo | vacant |
2 floors | 97 tsubo | cancellation notice |
1 floor | 116 tsubo | cancellation notice |
2 floors | 181 tsubo | cancellation notice |
2 floors | 72 tsubo | vacant |
1 floor | 38 tsubo | cancellation notice |
88.7% (Apr. 2022)
88.6% (Jan. 2022)
87.6% (Aug. 2022)
87.1% (Mar. 2022)
86.4% (May. 2022)
85.8% (Mar. 2022)
84.2% (Jan. 2022)
83.8% (Aug. 2022)
83.6% (Aug. 2022)
83.5% (Jan. 2022)
81.9% (Jul. 2022)
78.5% (Mar. 2022)
78.5% (Apr. 2022)
78.4% (May. 2022)
73.5% (Apr. 2022)
51.9% (Feb. 2022)
Properties of which occupancy rate is expected to be 100% because new lease contracts have been concluded or we have already received tenancy applications for subject area | |
1.Assumed occupancy rate refers to the occupancy rate after the realization of all tenancy applications and cancellation notices at the end of Jan. 2022. | 3 |
Implementation Status and Major plans of Engineering Management
- Planning and carrying out the Engineering Management to boost internal growth
●●
●●
●
- Approx.¥1.02mn p.a. revenue increase is expected by setting share cycle and electric scooter ports
《Major Plan(from Jan. 2022)》
《NORE Meieki and 4 properties》
Increase in revenue by setting antennas on the rooftop
- Revenue increase is expected by setting antennas for mobile phone etc. on the rooftop
●●
●
《25 properties》 | ●● |
Switching to new power companies (PPSs) | ●● |
- Approx.¥4.12mn p.a. electricity cost is expected to be reduced by switching to PPSs (new type of power producer and supplier)
《Towa Higashi-Gotanda Building》 | ●● |
Put into use an unused space | ●● |
- ¥0.72mn p.a. revenue increase is expected by put into use an unused space as a warehouse
《FORECAST Shinjuku SOUTH》
Increase in revenue by replacing parking company
- Revenue increase is expected by replacing parking company
《Omiya Center Building》
Renting of Conference Rooms to Outside Users
- Revenue increase is expected through renting of rental conference room to outside users
●●
●●
●●
●
《FORECSAT Kameido, DeLLCSKASAI, LAPUTA KUJO》 Increase in revenue by subleasing of open parking lot
- Approx.¥4.58mn p.a. revenue increase is expected by subleasing of open parking lot
《Tower Court Kitashinagawa, FORECAST Kameido》
Providing Kitchen Wagons
- Approx.¥0.47mn p.a. revenue increase is expected by providing Kitchen Wagons to blank space
Measure to increase revenue | Measure to improve tenant satisfaction |
Measure to reduce expense | Measure with environmental consideration |
《Residential properties》 | ●● | |
●● | Introduction of distribution system | ●● |
• Introduction of distribution system that can be used even if an auto-● |
- lock apartments
《19th period Status of Engineering Management Implementation(1)》
900
●● | 600 | 371 | 610 | |||||||||||||||
735 | ||||||||||||||||||
●● | ||||||||||||||||||
74 | ||||||||||||||||||
● | 300 | 81 | ||||||||||||||||
9 | 56 | 16 | ||||||||||||||||
0 | ||||||||||||||||||
Jul. | Aug. | Sep. | Oct. | Nov | Dec. | Total in Budget | ||||||||||||
(¥mn) | ||||||||||||||||||
19th period | ||||||||||||||||||
1. Total amounts of Planned capital investment and Strategic value-enhancing investment are stated. Furthermore, the figures may change when accounting items will be determined.
4
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Nippon REIT Investment Corporation published this content on 17 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 08:53:03 UTC.