3. Fund Management

3. Fund Management
(1) Performance
42
Changes in Profit (DPU)
* Have been securing profit (DPU) while considering financial soundness.
LTV transition
(%)
Average LTV
60
LTV/Total Assets
* We sold 2 properties and expanded our cash position.
As a result, average LTV increased.
* Reversal due to appraisal indicating
appreciation of property value.
56.4
50
47.9
40
42.5
48.9
39.6
34.3
30
44.7
37.0
39.8
33.5 35.5
35.4
34.0
33.9
30.9 30.6
38.1
31.7
44.7
44.6
44.5
53.2
51.3
49.7 49.5
43.5
43.5
43.3
49.3
48.5
43.3
42.5 43.1
38.6
35.3
47.9
43.4
48.0
42.9 43.0
* Average LTV = (Average Balance of Interest-Bearing Debt + Average Balance of Securities Deposit without Reserved Cash) / Weighted Average of Appraisal Value at End of Previous Period and Appraisal Value at Acquisition
* LTV / Total Assets = Period End Interest-Bearing Debt / Period End Total Assets
Distribution
(\)
40,000
80,000
Distribution
3.68
Duration
35,000
3.27
30,000
2.82
2.94
25,000
3.26
3.02
3.42
3.07
3.42
2.92 2.96
2.79
3.06
2.96
3.5
3.20
3.0
2.5
22,162
2.09
20,000
15,000
4.0
3.63
3.50
3.20
Average Duration of InterestBearing Debt
(Duration) (Years)
* Contribution from sale of Resona Maruha
Bldg. and Ryoshin Harajuku Bldg.
79,446
* Contribution from sale of Yokohama Yamashita-cho Bldg.
(Barneys New York Yokohama Store)
14,230
14,179
13,045 13,798
12,123
14,182
2.0
16,560 16,284
15,505
14,427 15,364
12,598 12,045 13,239 13,106 11,705
11,100 11,500
1.5
1.0
10,000
0.62
0.5
5,000
0.0
0
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
14th
15th
16th
17th
18th
period
period
period
period
period
period
period
period
period
period
period
period
period
period
period
period
period
period
* Official distribution in the 1st Period was ¥9,488 based on the actual operating period of 144 days, but the recalculated distribution of ¥12,123 based on 184 operating days is used in
the above graph for the sake of comparison with figures from the 2nd Period and thereafter.
Prepared on September 13, 2012
19th
20th
period
period
(Estimate)
(Estimate)
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
43
ROE (Capital Yield) and Adjusted ROE
(Capital Yield after Deduction of Capital Gains/Losses)
*Adjusted ROE of the 18th period was 4.6%.
Adjusted ROE (Capital Yield After Deduction of Capital Gains/Losses)
ROE (Capital Yield)
Yield (%)
ROE = Distribution per Unit / Capital per Unit
Yield (%)
28.0
10.0
10.0
* Dec. 2009: Sold Ryoshin Harajuku Bldg.
Jan. 2010: Sold Resona Maruha Bldg.
9.0
8.0
7.0
7.0
6.0
6.0
5.0
5.0
* April 2006
Sold Yokohama Yamashita-cho Building (Barneys New
York Yokohama Store).
4.0
3.0
Capital per Unit
(¥)
Capital per Unit
4.0
3.0
Total Capital per Unit
(After Deduction of
Capital
Distribution per Unit
Gains/Losses)
(¥)
(¥)
Distribution per Unit
90,000
600,000
* Public
Offering
580,000
* Capital Gains are calculated as repayment of capital.
9.0
8.0
Adjusted ROE = Distribution per Unit (After Deduction of Capital Gains/Losses) / Capital
per Unit (After Deduction of Capital Gains/Losses)
80,000
600,000
Total Capital per Unit (After Deduction
of Capital Gains/Losses)
Distribution per Unit (After Deduction
of Capital Gains/Losses)
Distribution per Unit
(After Deduction of
Capital
Gains/Losses)
90,000
* Deducted capital gain from
Yokohama Yamashita-cho Building
(Barneys New York Yokohama Store).
* Deducted capital gains/losses
from Resona Maruha Bldg. and
Ryoshin Harajuku Bldg.
580,000
80,000
70,000
70,000
560,000
560,000
60,000
60,000
540,000
50,000
520,000
40,000
30,000
500,000
540,000
50,000
520,000
40,000
30,000
500,000
20,000
20,000
480,000
10,000
0
460,000
1st
Period
3rd
Period
5th
Period
7th
Period
9th
Period
Adjusted Capital Yield
(Adjusted ROE)
Prepared on September 13, 2012
11th
Period
13th
Period
15th
Period
18th
17th
Period
Period
19th
20th
19th
Period
Period
Period (Estimate)
(Estimate)
480,000
10,000
460,000
0
1st
Period
3rd
Period
5th
Period
7th
Period
9th
Period
11th
Period
13th
Period
15th
Period
(Estimate)
＝
Distribution Amount After Deduction of Capital Gains/Losses
Total Capital － Accumulated Distribution of Capital Gains/Losses
19th
20th
18th 第19期
17th
Period
（予想） Period
Period Period
(Estimate)(Estimate)
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
44
Performance Against Public Offering Price
* Yields are greater than offering prices in the IPO and 2nd PO, including dividends.
IPO (Initial Public Offering) (Issued Sep. 10, 2003)
Investment unit price at Jul. 31, 2012: ¥380,000
(\)
1,800,000
1,600,000
Investment Unit
Price (Closing Price)
Investment Unit Price with
Accumulated Dividends
(Closing Price)
Offering Price at
IPO (9/10/2003)
* 61% of the IPO offering price was distributed in
around 9 years.
1,400,000
1,200,000
* 46% of the 2nd PO offering price was distributed in
around 8 years.
1,000,000
800,000
Offering Price
\530,000
Accumulated
Dividends
\321363
600,000
Offering Price at IPO: \530,000
400,000
100
200,000
%
* 36% of the 3rd PO offering price was distributed in
around 7 years.
61
%
01
2
IfIfthe
theoffering
offeringprice
priceis
is100,
100,
then
thenaccumulated
accumulated
dividends
dividendswould
wouldequal
equal61
61
31
/2
9/
10
/2
00
3/
3
10
/2
00
9/
4
10
/2
00
3/
10 4
/2
00
9/
5
10
/2
00
3/
10 5
/2
00
9/
6
10
/2
00
3/
6
10
/2
00
9/
7
10
/2
00
3/
7
10
/2
00
9/
8
10
/2
00
3/
10 8
/2
00
9/
9
10
/2
00
3/
9
10
/2
01
9/
0
10
/2
01
3/
0
10
/2
01
9/
1
10
/2
01
3/
10 1
/2
01
7/
2
0
Second Public Offering (Issued Aug. 3, 2004)
Third Public Offering (Issued Aug. 1, 2005)
(\)
(\)
1,800,000
1,600,000
Investment Unit
Price (Closing Price)
Investment Unit Price with
Accumulated Dividends
(Closing Price)
1,800,000
Offering Price at
2nd PO
(8/3/2004)
1,600,000
1,400,000
1,400,000
1,200,000
1,200,000
1,000,000
1,000,000
400,000
8/3/2004
8/3/2004
Offering Price at 2nd PO:
\652,484
100
46%
12
1/
20
9/
10
/2
3/ 003
10
/2
00
9/
10 4
/2
3/ 004
10
/2
00
9/
10 5
/2
3/ 005
10
/2
9/ 006
10
/2
3/ 006
10
/2
9/ 007
10
/2
3/ 007
10
/2
9/ 008
10
/2
3/ 008
10
/2
9/ 009
10
/2
3/ 009
10
/2
9/ 010
10
/2
3/ 010
10
/2
9/ 011
10
/2
3/ 011
10
/2
01
7/
2
3
0
Prepared on September 13, 2012
600,000
Accumulated
Dividends
\297,645
%
200,000
Offering Price at
3rd PO
(8/1/2005)
Offering Price
\761,950
800,000
Offering Price
\652,484
600,000
Investment Unit Price with
Accumulated Dividends
(Closing Price)
400,000
Offering Price at 3rd
PO: \761,950
8/1/
8/1/2005
2005
100
%
200,000
If the offering price is 100,
then accumulated
dividends would equal 46
Accumulated
Dividends
\270,802
36%
0
9/
10
/2
00
3/
10 3
/2
00
9/
10 4
/2
3/ 004
10
/2
00
9/
10 5
/2
00
3/
10 5
/2
00
9/
10 6
/2
00
3/
10 6
/2
00
9/
10 7
/2
00
3/
10 7
/2
00
9/
10 8
/2
00
3/
10 8
/2
00
9/
10 9
/2
00
3/
10 9
/2
01
9/
10 0
/2
01
3/
10 0
/2
01
9/
10 1
/2
01
3/
10 1
/2
01
7/
2
31
/2
01
2
800,000
Investment Unit
Price (Closing Price)
If the offering price is 100,
then accumulated
dividends would equal 36
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
45
Difference Between Dividend Yields of TOKYU REIT
and Equity Stocks
* Spread of around 3% compared to equity stocks.
Difference Between Dividend Yields with TEPCO
(%)
7.0
Difference
Differenceof
ofDividend
DividendYields
Yields(TOKYU
(TOKYUREIT
REIT8957
8957––
Tokyo
TokyoElectric
ElectricPower
PowerCompany
Company(TEPCO)
(TEPCO)9501)
9501)
6.0
4.85%
6.0
3.57%
5.0
Difference Between Dividend Yields with OEPC
(%)
7.0
5.0
2.22%
4.0
4.0
1.34%
3.0
3.0
3.03%
2.0
2.0
1.0
1.0
0.0
9/10/2003
9/10/2004
9/10/2005
9/10/2006
9/10/2007
9/10/2008
9/10/2009
9/10/2010
9/10/2011
7/31/2012
3.47%
Difference
Differenceof
ofDividend
DividendYields
Yields(TOKYU
(TOKYUREIT
REIT8957
8957––Okinawa
Okinawa
Electric
ElectricPower
PowerCompany
Company(OEPC)
(OEPC)9511)
9511)
0.0
9/10/2003
Difference Between Dividend Yields with Tokyo Gas
(%)
9/10/2004
9/10/2005
9/10/2006
9/10/2007
9/10/2008
9/10/2009
9/10/2010
9/10/2011
7/31/2012
Difference Between Dividend Yields with Listed Index Fund Japan High Dividend
(TSE Dividend Focus 100)
7.0
(%)
7.0
Difference
Differenceof
ofDividend
DividendYields
Yields(TOKYU
(TOKYUREIT
REIT8957
8957––Tokyo
TokyoGas
Gas9531)
9531)
Difference
Differenceof
ofDividend
DividendYields
Yields
(TOKYU
(TOKYUREIT
REIT8957
8957––Listed
ListedIndex
IndexFund
FundJapan
JapanHigh
HighDividend
Dividend(TSE
(TSEDividend
DividendFocus
Focus100)
100)1698)
1698)
6.0
5.0
6.0
3.84%
4.0
2.00%
5.0
2010/5/14
3.0
2.0
4.0
1.0
0.0
3.0
9/10/2003
9/10/2004
(%) 5.0
2.0
9/10/2005
9/10/2006
9/10/2007
9/10/2008
9/10/2009
9/10/2010
9/10/2011
7/31/2012
2.24%
4.0
2.72%
1.0
3.0
0.0
9/10/2003
2.0
9/10/2004
9/10/2005
9/10/2006
9/10/2007
9/10/2008
9/10/2009
9/10/2010
9/10/2011
* The yields in the difference between dividend yields with TEPCO, OEPC and Tokyo Gas have
been calculated by using dividend forecasts.
The yields in the difference between dividend yields with the Listed Index Fund Japan High
Dividend (TSE Dividend Focus 100) have been calculated from actual dividends.
Prepared on September 13, 2012
7/31/2012
1.0
0.0
5/14/2010
8/14/2010
11/14/2010
2/14/2011
5/14/2011
8/14/2011
11/14/2011
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
2/14/2012
5/14/2012
7/31/2012
46
*Comments by Tokyu REIM
Comparison of Inflation Hedge Instruments and Unit Price
(Comparison of TOKYU REIT (8957) and Precious Metals)
*REITs are inflation hedge instruments generating dividend income.
350%
TOKYU REIT
東急REIT
Platinum Price Index
プラチナ価格指数
Gold Price Index
金価格指数
2003/9/10 = 100%
* Gold price increased due to buying
being focused on gold, the risk-free
asset.
300%
250%
* REITs recognized as an inflation hedge together
with precious metals, as inflation concerns
increased
200%
150%
100%
* While REIT and platinum prices
dropped, gold prices remained flat.
50%
9/10/2003
9/10/2004
9/10/2005
9/10/2006
9/10/2007
9/10/2008
9/10/2009
9/10/2010
9/10/2011 7/31/2012
*Comments by Tokyu REIM
Prepared on September 13, 2012
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
47
Changes in Asset Value (Adjusted NAV)
* Adjusted NAV per Unit Reflecting Unrealized Gains/Losses was 586,771 yen and Adjusted NAV Multiple was 0.69x.
Adjusted NAV Multiple
1.6
1.4
1.2
1.0
0.8
0.6
1.23
1.21
1.21
1.37
1.20
1.13
1.06
1.04
1.18
0.86
0.79
0.74 0.72 0.75
0.92
0.84
0.70
Adjusted NAV Multiple = Average Price of Investment Unit (Closing) / Adjusted NAV per Unit Reflecting Unrealized Gains/Losses (End of Period)
NAV (¥)
800,000
511,403
501,688
-9,715
600,000
*Adjusted NAV at 18th
Period End
975,158
578,697
396,461
904,709
578,697
326,012
1,000,000
Unrealized
Gains/Losses
(%)
100
68.51%
580,532 586,771
578,697 578,697 80
1,835 8,074
56.34 %
60
400,000
40
200,000
20
0
-200,000
0.69
0.32 % 1.40 %
-1.90 %
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
period period period period period period period period period
10th
11th
12th
13th
14th
15th
16th
17th
18th
period period period period period period period period period
0
-20
1/31/2004 7/31/2004 1/31/2005 7/31/2005 1/31/2006 7/31/2007 1/31/2007 7/31/2007 1/31/2008 7/31/2008 1/31/2009 7/31/2009 1/31/2010 7/31/2010 1/31/2011 7/31/2011 1/31/2012 7/31/2012
NAV per Unit (ex. Retained Earnings)
Average
Investment
Unit Price
¥ 643,097
¥ 530,828
¥ 726,082
¥ 690,705
Adjusted NAV per Unit
¥ 902,435
¥ 766,520
¥ 1,241,537
¥ 958,306
Unrealized Gains/Losses per Unit
¥ 835,903
¥ 1,000,664
¥ 603,570
Unrealized Gain/Losses Percentage
¥ 470,862
¥ 496,772
¥ 478,579
¥ 534,655
¥ 401,664
¥ 406,642
¥ 490,426
*Comments by Tokyu REIM
Prepared on September 13, 2012
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
48
Purchase of Investment Units of Real Estate Investment
Trusts (J-REITs) by the Bank of Japan (BOJ)
* The purchasing conducted by the BOJ has contributed to the recovery of credibility in the J-REIT market.
1. Summary
(1) Eligible for Purchase:
· J-REITs with an AA rating or above and which do not have any credit problems, etc.
(2) Method of Purchase:
· J-REITs for whom dates when a trade is closed exceed 200 days per year and whose annual cumulative
trading value is 20 billion yen or more.
· A trust bank will act as the trustee and J-REITs will be purchased as a trust asset.
· Depending on market conditions, the trustee will proceed with the purchase in accordance with standards
set forth by the BOJ.
(3) Purchasing Price:
(4) Purchasing Period:
(5) Purchasing Limit, etc.:
(6) Exercising of Voting Rights:
(7) Selling:
· Volume weighted average price (VWAP) at a stock exchange.
· From December 2010 to End of 2012 (amended as of August 4, 2011).
· Around 120 billion yen (amended as of April 27, 2012).
· Limited to less than 5% of outstanding units of a single REIT.
· The BOJ will set forth a policy and the trustee shall exercise the rights accordingly.
· The BOJ will set forth a policy and the trustee shall dispose them accordingly.
2. Purchasing Results Up until Now (as of August 31, 2012)
Dec. 2010
Jan. - Mar. 2011
Apr. - Jun. 2011
Jul. - Sep. 2011
¥2.2 billion
¥15.6 billion
¥1.9 billion
¥34.8 billion
Source: Prepared by Tokyu REIM based on information from the BOJ website.
(Note)
(Note)
(Note)
(Note)
Oct. - Dec. 2011
Jan. - Mar. 2012
Apr. - Jun. 2012
Jul. 2012
¥12.0 billion
¥6.7 billion
¥18.5 billion
¥1.6 billion
(Note)
(Note)
(Note)
(Note)
Total
¥93.3 billion
(Note)
(Note) Estimate.
*Comments by Tokyu REIM
Prepared on September 13, 2012
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
49
3. Fund Management
(2) Debt Management and Composition of Unitholders
50
Debt Structure (i) Interest Bearing Debt
* Aim to diversify sources of funds.
Mitsui Sumitomo
Insurance ¥1,000mn
(1.1%)
The Norinchukin
Bank ¥1,000mn
(1.1%)
As of end of 18th Period
Investment
Corporation Bond
¥10,000mn (11.2%)
Category
Shinkin Central
Bank ¥2,000mn
(2.2%)
National Mutual
Insurance
Federation of
Agricultural
Cooperatives
¥3,000mn (3.4%)
Development Bank of
Japan
¥19,000mn (21.3%)
Nippon Life
Insurance
¥4,000mn (4.5%)
Sumitomo Mitsui
Trust Bank
¥16,800mn (18.9%)
Daido Life
Insurance
Company
¥4,000mn (4.5%)
Dai-ichi Life Mutual
Life Insurance
¥5,000mn (5.6%)
Mizuho Corporate Bank
¥6,400mn (7.2%)
Bank of TokyoMitsubishi UFJ
¥8,400mn (9.4%)
Mitsubishi UFJ Trust
Bank ¥8,400mn (9.4%)
Lender
Interest Rate
(¥ million)
(%)
Development Bank of Japan
Dai-ichi Life Mutual Life
Dai-ichi Life Mutual Life
5,000
4,000
1,000
National Mutual Insurance
Federation of Agricultural
Cooperatives
3,000
Daido Life Insurance Company
Mitsubishi UFJ Trust Bank
Development Bank of Japan
Mitsubishi UFJ Trust Bank
Development Bank of Japan
Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Trust Bank
Mitsubishi UFJ Trust Bank
Mitsubishi UFJ Trust Bank
3,000
1,000
5,000
2,000
5,000
2,500
2,500
2,500
2,500
Bank of Tokyo-Mitsubishi UFJ
1,400
Sumitomo Mitsui Trust Bank
Daido Life Insurance Company
Long term Mizuho Corporate Bank
Mitsui Sumitomo Insurance
Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Trust Bank
Shinkin Central Bank
Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Trust Bank
Mizuho Corporate Bank
Nippon Life Insurance
Nippon Life Insurance
Bank of Tokyo-Mitsubishi UFJ
Mizuho Corporate Bank
Mizuho Corporate Bank
Bank of Tokyo-Mitsubishi UFJ
Development Bank of Japan
Sumitomo Mitsui Trust Bank
Mitsubishi UFJ Trust Bank
The Norinchukin Bank
Total Long-Term Borrowings
Bonds
Amount
Total Borrowings
#1 Investment Corporation Bond
400
1,000
1,000
1,000
1,000
1,000
2,000
5,000
2,000
2,000
2,000
2,000
2,000
5,000
1,700
1,700
2,000
4,000
400
400
1,000
79,000
79,000
5,000
Debt Origination
Date
Maturity
Note
Due Date
Period
1.95000
2.21125
1/25/2006
7/31/2006
1/25/2018
7/31/2013
29th
20th
1.92000
1/25/2007
1/25/2014
21st
1.76625
2.10187
2.21100
1.72500
1.79000
1.67500
1.78812
1.67500
1.78812
0.99000
(Floating Rate)
1.66375
1.17125
3/10/2008
3/10/2016
12/25/2013
6/25/2015
11/18/2012
2/25/2014
6/25/2013
12/25/2013
6/25/2013
12/25/2013
26th
21st
24th
19th
22nd
20th
21st
20th
21st
1.31250
6/25/2008
11/18/2008
2/25/2009
6/25/2009
6/29/2009
6/25/2010
8/29/2012
19th
6/29/2013
12/25/2012
20th
19th
6/25/2014
22nd
1.46250
7/26/2010
7/26/2015
24th
1.63250
1.47625
1.47625
1.45375
1.36875
1.49563
1.41375
1.03500
1.48875
1.35232
1.48000
1.32375
1.32375
0.93500
12/27/2010
5/18/2011
5/25/2011
6/27/2011
12/27/2016
5/18/2017
5/25/2017
6/27/2017
1/31/2017
1/31/2018
3/26/2018
11/11/2015
11/11/2018
5/25/2019
6/25/2020
27th
28th
28th
28th
27th
29th
30th
25th
31st
32nd
34th
7/29/2011
9/26/2011
11/11/2011
5/25/2012
6/25/2012
6/29/2012
6/29/2019
32nd
-
7/25/2012
-
7/25/2017
-
28th
-
-
-
10/24/2012
19th
1.65000
Unsecured
Unguaranteed
-
10/24/2014
23th
Unsecured
Unguaranteed
Total Corporate Bonds
10,000
-
-
-
-
-
Total Interest-Bearing Debt
89,000
-
-
-
-
-
#2 Investment Corporation Bond
5,000
1.89000
10/24/2007
**Average
AverageInterest
InterestRate:
Rate:1.71%
1.71%
**Interest-Bearing
Interest-BearingDebt
Debtdoes
doesnot
notinclude
includeSecurities
SecuritiesDeposits
Depositsprovided
providedby
bytenants.
tenants.
*Comments by Tokyu REIM
Prepared on September 13, 2012
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
51
Debt Structure (ii)
Rating (As of End of 18th Period)
Ratio of Long-Term Debt
* Increasing long-term fixed-rate debt in order to strengthen financial position.
R&I
S&P
Issuer Rating: AA- (Rating Outlook: stable)
Short-Term Debt
100,000
Long-Term Corporate Credit Rating: A
(Rating Outlook: negative)
Short-Term Corporate Credit Rating: A-1
Investment Corporation Bonds
Long-Term Debt
(¥ million)
0.0%
58.3%
69.3%
54.3%
77.4%
77.4%
68.9%
68.9%
81.6%
73.2%
84.5%
92.8%
92.8%
Ratio of Long-Term Debt
100.0%
100.0%
100.0%
Issuer Rating: A3 (Rating Outlook: negative)
100.0%
100.0
100.0%
（％）
100
90,000
90
80,000
80
70,000
60,000
70
56, 700
7 9 ,0 0 0 7 9 ,0 0 0
50
40,000
40
30,000
30
20,000
20
1 0 ,0 0 0 8 ,0 0 0
0
3rd
5th
7th
9th
11th
13th
15th
17th
18th
19th
Period
Period
Period
Period
Period
Period
Period
Period
Period
Period
Period
1/31/2013
(Est.)
(Note) 78.9% if excluding long-term debt and investment corporation bonds maturing within a year
Deemed Interest-Bearing Debt
Commitment Line (As of End of 18th Period)
(¥ million)
120,000
Interest-Bearing Debt
Leasehold and Security Deposits without reserved cash
100,000
Development Bank of Japan
¥10.0 bn
Due
7/1/2013
Sumitomo Mitsui Trust Bank
¥3.2 bn
Due
7/11/2013
Sumitomo Mitsui Trust Bank
¥2.0 bn
Due
4/20/2013
Mizuho Corporate Bank
¥1.6bn
Due
7/11/2013
93,867
80,000
60,000
40,000
Bank of Tokyo-Mitsubishi UFJ
¥1.6bn
Due
7/11/2013
Mitsubishi UFJ Trust Bank
¥1.6 bn
Due
7/11/2013
Total ¥20.0 bn
20,000
0
1st Period
3rd Period
5th Period
7th Period
9th Period
11th Period
13th Period
15th Period
17th Period 18th Period
*Comments by Tokyu REIM
Prepared on September 13, 2012
10
0
1st
1/31/2004
* Commitment lines help to respond to changing monetary environment.
60
50,000
10,000
Moody’s
100.0%
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
52
Debt Structure (iii)
Average Duration of Interest-Bearing Debt and Average Interest
(year)
5.0
Distribution
Long-Term Debt Ratio
1.77
1.72
1.71
1.67
3.06
3.20
3.20
3.06
3.423.42
2.79
3.0
100.0% (％）
100
90
22,162
80
1.8
1.6
3.68
100.0%
79,446
（Note 2)
（％）
2.0
4.62
4.0
Average Interest
Average Duration of Total Interest-Bearing Debt
Average Duration of Long-Term Interest Bearing Debt
Distribution and Long-Term Debt Ratio
(yen)
(yen)
(yen)
80,000
25,000
80,000
70
20,000
1.4
60
1.2
50
1.0
40
0.77
2.0
0.8
15,000
0.6
1.0
12,123
0.4
0.62
30
13,106
(Note 1)
20
12,045
11,705
11,100
10
0.2
0.0
0.0
1st
Period
3rd
Period
5th
Period
7th
Period
9th
Period
11th
Period
13th
Period
15th
Period
17th
18th
19th
Period Period Period
(Estimate)
10,000
0
1st Period
3rd Period
5th Period
17th 18th 19th
Period Period Period
(Estimate)
(Note 1)Official distribution in the 1st Period was ¥9,488 based on the actual operating period of 144 days, but the recalculated distribution of
(year)
Revision Term of Rent
9th Period
11th
Period
13th
Period
15th
Period
¥12,123 based on 184 operating days is used in the above graph for the sake of comparison with figures from the 2nd Period and thereafter.
(Note 2) 78.9% if excluding long-term debt maturing within a year and Investment Corporation Bonds
Distribution and LTV / Total Assets
Revision Term of Rent to Average Duration of Interest-Bearing Debt
* Striving to achieve a debt duration longer than the rent revision interval
through active debt management.
7th Period
(yen)
（円）
(yen)
25,000
80,000
80,000
Distribution
LTV / Total Assets
48.9
Average Duration of Interest-Bearing Debt
（％）
60
7 9 ,4 4 6
2 2 ,1 6 2
50
43.4 42.9
4.0
20,000
3.5
3.0
40
3.38
2.96
3.12
3.08
2.94
2.96
30
30.6
3.20
3.06
15,000
2.91
20
2.79
1 3 ,1 0 6
(Note)
1 2 ,1 2 3
10
1 1 ,7 0 5
1 1 ,1 0 0
2.5
14th Period
7/31/2010
15th Period
1/31/2011
16th Period
7/31/2011
17th Period
1/31/2012
18th Period
7/31/2012
10,000
0
1st
Period
**Interest-Bearing
Interest-BearingDebt
Debtininthis
thispresentation
presentationdoes
doesnot
notinclude
includesecurity
securitydeposits
depositsprovided
providedby
bytenants.
tenants.
Prepared on September 13, 2012
3rd
Period
5th
Period
7th
Period
9th
Period
11th
Period
13th
Period
15th
Period
17th
17th
19th
19th
PeriodPeriodPeriod
Period
Period
18th
**LTV
(Estimate)
LTV/ /Total
TotalAssets
Assets==Period
PeriodEnd
EndInterest-Bearing
Interest-BearingDebt
Debt/ /Period
PeriodEnd
EndTotal
TotalAssets
Assets
(Note) Official distribution in the 1st Period was ¥9,488 based on the actual operating period of 144 days, but the recalculated distribution of ¥12,123
based on 184 operating days is used in the above graph for the sake of comparison with figures from the 2nd Period and thereafter.
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
53
*Comments by Tokyu REIM
Composition of Unitholders
Changes in Unitholder Composition (Main Segments)
1st Period
3rd Period
(%)
35
5th Period
7th Period
9th Period
11th Period
2 7 .3 3
15th Period
* Investment trusts hold the largest share among
unitholders.
17th Period 18th Period
3 2 .4 6
Investment Trusts
Foreigners
Banks (ex. Pensions & Trusts)
Individuals
Domestic Corporations
Pensions
30
13th Period
2 8 .6 1
2 6 .4 8
2 6 .2 9
25
2 2 .0 2
1 9 .4 3
20
2 0 .4 3
* Individual ownership percentage (Individuals
and Trusts) exceeds 40% of the total.
1 9 .2 3
1 7 .7 6
1 8 .0 9
15
1 2 .8 3
1 3 .2 4
1 1 .7 5
1 4 .2 6
9 .7 6
10
5 .5 6
8 .8 1
8 .9 9
7 .7 9
5
3 .1 3
4 .9 7
2 .1 6
1 .4 1
* Investment from foreigners
remains flat.
2 .2 7
2 .2 3
0
1/31/2004
1/31/2005
1/31/2006
1/31/2007
1/31/2008
1/31/2009
1/31/2010
1/31/2011
1/31/2012
7/31/2012
Foreign Ownership Percentage / Number of Foreign Investors
Individual Ownership Percentage
1st Period
3rd Period
5th Period
7th Period
9th Period
11th Period
13th Period
15th Period
17th Period 18th Period
（％）
（％）
(No. of People)
200
40
50
Individuals & Trusts
Trusts
Individuals
45
Sold Resona Maruha
Bldg. and Ryoshin
Harajuku Bldg.
Number of Foreign Investors
35
43.84
Foreign Ownership Percentage
41.84
40.75
40
160
30
140
26.29
35
30
32.46
25
120
29.57 29.51
28.61
26.48
25
180
19.43 19.23
20
100
27.33
80
15
20
12.83
60
15
14.26
10
40
13.24
10
5
9.76
5
5.56
20
2.23
0
0
1/31/2004
1/31/2005
Prepared on September 13, 2012
1/31/2006
1/31/2007
1/31/2008
1/31/2009
1/31/2010
1/31/2011
1/31/2012
7/31/2012
0
1st
Period
3rd
Period
5th
Period
7th
Period
9th
Period
11th
Period
13th
Period
15th
Period
17th 18th
Period Period
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
54
List of Major Unitholders
No. of
Units Held
Unitholders
18th Period (Ended Jul. 31, 2012)
17th Period (Ended Jan. 31, 2012)
1st Period (Ended Jan. 31, 2004)
Share
(%)
Unitholders
No. of
Units Held
Share
(%)
1 Tokyu Corporation
5,880
6.00
1 Japan Trustee Services Bank Ltd.
31,601
18.65
2 Kawasaki Gakuen School Corporation
5,000
5.10
2 Trust & Custody Services Bank, Ltd.
13,668
3 Tokyu Land Corporation
3,920
4.00
3 The Nomura Trust and Banking Co., Ltd.
4 Japan Trustee Services Bank
3,084
3.14
5 Shinwa Bank
2,794
6 Aozora Bank
Unitholders
No. of
Units Held
Share
(%)
1 Japan Trustee Services Bank Ltd.
33,036
19.50
8.06
2 Trust & Custody Services Bank, Ltd.
12,612
7.44
11,831
6.98
3 Tokyu Corporation
9,800
5.78
4 Tokyu Corporation
9,800
5.78
4 The Nomura Trust and Banking Co., Ltd.
9,746
5.75
2.85
5 Asahi Fire and Marine Insurance
4,000
2.36
5 Nomura Bank (Luxembourg) S.A.
4,434
2.61
2,766
2.82
6 American Life Insurance Company
GA Company JPY
3,902
2.30
6 State Street Bank and Trust Company 505103
4,127
2.43
7 Hiroshima Bank
2,064
2.10
7 State Street Bank and Trust Company 505103
3,505
2.06
7 Asahi Fire and Marine Insurance
4,000
2.36
8 Resona Bank
2,043
2.08
8 The Momiji Bank
3,419
2.01
8 MetLife Alico GA Company JPY
3,902
2.30
9 Morgan Stanley
2,016
2.05
9 The Hachijuni Bank, Ltd.
3,325
1.96
9 The Momiji Bank
3,419
2.01
10 Bank of Ikeda
1,917
1.95
10 Nomura Bank (Luxembourg) S.A.
2,545
1.50
10 The Hachijuni Bank, Ltd.
2,942
1.73
11 The Gibraltar Life Insurance Company
1.56
11 The Master Trust Bank of Japan, Ltd.
2,272
1.34
11 The Master Trust Bank of Japan, Ltd.
1,534
2,748
1.62
1.30
1.19
1.48
2,215
2,025
1,460
12 The Gibraltar Life Insurance Company
12 The Gibraltar Life Insurance Company
12 The Chase Manhattan Bank London
1.15
1.15
1.42
1,964
1,964
1,394
13 Kansai Urban Banking Corporation
13 Kansai Urban Banking Corporation
13 AIG Star Life Insurance Co., Ltd.
1,500
0.88
1,201
1.22
14 RBC Dexia Investor Services Trust, London Lending
Account
14 SIX SIS Ltd.
14 Trust & Custody Services Bank, Ltd.
1,580
0.93
15 Trust & Custody Services Bank, Ltd.
1,372
0.81
15 The Chase Manhattan Bank London (SL Omnibus
Acct.)
1,090
1.11
15 The Chukyo Bank, Ltd.
1,344
0.79
16 JPMorgan Chase Bank 380055
1,345
0.79
16 The Bank of New York, Treaty JASDEC Account
1,282
0.75
0.71
1,275
0.75
17 RBC Dexia Investor Services Trust, London Lending
Account
1,204
17 SIX SIS Ltd.
18 The Bank of New York Mellon as Agent BNYM AS EA
Dutch Pension Omnibus 140016
1,003
0.59
19 The Iyo Bank, Ltd.
1,000
0.59
945
0.55
Total Units Held by Top 20 Unitholders
103,124
60.88
Outstanding Units
169,380
100.00
16 North Pacific Bank
1,000
16 Bank of Bermuda
1.02
1,000
1.02
18 The Hachijuni Bank, Ltd.
960
0.97
18 The National Mutual Insurance Federation of
Agricultural Cooperatives
1,270
0.74
19 American Life Insurance Company
959
0.97
19 The Senshu Ikeda Bank, Ltd.
1,004
0.59
20 Pictet & Cie
947
0.96
20 The Iyo Bank, Ltd.
1,000
0.59
Total Units Held by Top 20 Unitholders
43,029
43.90
Total Units Held by Top 20 Unitholders
102,802
60.69
Outstanding Units
98,000
100.00
Outstanding Units
169,380
100.00
Prepared on September 13, 2012
20 The Taiko Bank, Ltd．
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
55
3. Fund Management
(3) Portfolio Management and Risk Management
56
External Growth
Rent Outlook by Area (Rent Level at Survey Date = 100)
Portfolio Size and Average Investment
350
取得価額合計
Total Acquisition
取得価額合計
期末算定価額合計
Appraisal Value
期末算定価額合計
12
平均投資額
Average Investment
平均投資額
Total
Acquisition
Value
(¥ billion)
Appropriate Asset Size
¥300 billion or more
10
100
268.6
9.3
250
7.6
206.6
205.4
7.3
8
199.6
190.8
26th Survey (Apr. 2012)
25th Survey (Oct. 2011)
Average
Investment
(¥ billion)
300
200
* Investor outlook remained almost the same as the previous survey in Tokyo.
Next
Year
Area
2
Years
5
Years
10
Years
Next
Year
Area
2
Years
5
Years
10
Years
Marunouchi,
Otemachi area
100
100
103
105
Marunouchi,
Otemachi area
100
101
103
105
Shibuya, Shibuya
Station area
100
100
101
102
Shibuya, Shibuya
Station area
100
100
102
103
Nagoya, Nagoya
Station area
98
98
100
100
Nagoya, Nagoya
Station area
98
99
100
100
Osaka, along the
Midosuji Line
98
98
100
100
Osaka, along the
Midosuji Line
98
98
100
100
Source: Japan Real Estate Institute “Japan Real Estate Investors Survey.”
6
Expected Yield and Transaction Yield of Benchmark Buildings
(Marunouchi / Otemachi)
150
* The cap rate for prime locations has risen to the level of 2005.
(%)
6.0
103.5
103.0
4
100
80.3
5.5
5.2
5.0
5.0
5.0
5.0
4.5
4.5
4.5
2
50
4.5 4.5
4.3
4.0
4.0
4.0 4.0
4.0
3.8
3.8
3.5
3.5
3.5
4.0 4.0
3.8
3.5
4.5 4.5
4.5
4.5 4.5
4.5
4.5
4.2 4.2
4.2
4.2
4.2
4.2
4.2
3.5
Expected Yield
Transaction Yield
3.0
0
IPO
1st
Period
3rd
Period
Prepared on September 13, 2012
5th
Period
7th
Period
9th
Period
11th
Period
13th
Period
15th
Period
18th
17th 18th
Period Period
Period
Estimate
0
Oct.
2003
Oct.
2004
Oct.
2005
Oct.
2006
Oct.
2007
Oct.
2008
Source: Japan Real Estate Institute “Japan Real Estate Investors Survey.”
Oct.
2009
Oct.
2010
Oct.
2011
Apr.
2012
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
57
Lending Attitude of Financial Institutions & TOKYU REIT’s
Acquisition Timing of Properties
* TOKYU REIT slowed the pace of acquisitions in the period of real estate credit ease.
(DI)
Lax
20
Real Estate
Credit Crunch
Acquisition /
Disposition Price
(¥ million)
Real Estate
Credit Crunch
Real Estate
Credit Ease
90,000
Acquisitions at IPO
80,300
80,000
10
70,000
60,000
0
50,000
Lending
Attitude
40,000
-10
29,860
-20
30,000
14,570
14,700
9,800
8,630
7,000
6,810 5,116
-30
Tight
Acquired Resona
Maruha Bldg.
¥23,260 mn
Sold Yokohama Yamashita-cho Bldg.
(Barneys New York
Yokohama Store)
¥6,480 mn (capital gain: ¥1,636 mn)
-6,480
18,296
13,980
18,030
20,000
8,600
1,300
140
Acquired Ryoshin
Harajuku Bldg.
¥14,160 mn
1,196
Sold Ryoshin Harajuku
Bldg. ¥8,400 mn
(Capital loss: ¥7,179 mn)
-8,400
5,010
Sold Resona Maruha Bldg.
¥42,000 mn (Capital gain:
¥18,258 mn)
10,000
0
-10,000
－6,480
－6,480
－42,000
－42,000
.3003 .0603 .90033..1220003.42.300044. .260004.42.90044..12200054..320005.5.2600055. .29050.51. 2200065..3200066..620006. 6.29060.61. 220007r6..3200077..620070..792070.17.220008r7..320080..8620080.89. 280.1028. 0290.038r.0290.069.0290.0999. .2102019.02.0301r9.02.601100. .29001.01. 2201110..321011r.0.6201111..92011.112. 21021.13. 21021.61. 2012. 2012
0
r.32 u0n0.32 e0p0.32 e
a
0 a 2 0Ju2n01Sep2 0De2c0Mar Jun
0
0 ar 2 0Jun2S0ep2 0D0ec 2 0Ma 2 0Jun2S0e2p00Dec2 0Ma2 0Jun2 0S2ep00 De2c0 M2a0 Ju2n0 2S0e0p D2e0c 2M0a 2J0un2 0S1ep 2 D0 ec2 M
0 ar 2J0un 2S0ep2 0D0ec 2M
M
2 J2 S2 2D00c 2M0ar 2J0un 2S0ep2 0D0ec 2M
-40
Acquisition Price
Disposition Price
Lending Attitude
DI
All-Sector
Average
(All Sectors)
Lending
Attitude
DI
All(Real
Industrial
Average
Estate Sector)
* Acquisition price on secondary y-axis, each bar represents the total acquisition price in the respective month and 2 months prior (i.e., June 2008 includes April – June 2008).
Source： BOJ (Tankan Survey).
*Comments by Tokyu REIM
Prepared on September 13, 2012
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
58
Portfolio Overview
(26 Properties; Total acquisition price: 199.6 billion yen)
Retail Properties
Location Map of Properties
Tokyo Central
5 Wards
Shibuya
Ward
Tokyo
Metropolitan
Area
QFRONT
Tokyu Saginuma 2
Bldg.
Lexington
Aoyama
TOKYU REIT
Omotesando Sq.
Tokyu Saginuma Bldg. CONZE Ebisu
Beacon Hill Plaza
(Ito-Yokado
Nokendai Store)
TOKYU REIT
Shibuya
Udagawa-cho Sq.
cocoti
Daikanyama Forum
Office Properties
Approx. 40km
Tokyu Areas
Setagaya
Business Square
Tokyu NampeidaiTokyu
cho Bldg.
Sakuragaoka-cho Bldg.
Tokyo Nissan
Taito Bldg.
TOKYU REIT
Akasaka Hinokicho Bldg.
Portfolio Breakdown
TOKYU REIT
Kamata Bldg.
TOKYU REIT
Toranomon Bldg.
TOKYU REIT Akasaka 4-chome Bldg. Tokyu IkejiriHatchobori Bldg. (Tokyu Agency Inc.
ohashi Building
Head Office Building)
Kojimachi
Square
TOKYU REIT
Shinjuku Building
Akihabara Sanwa
Toyo Building
Tokyo Central 5
Wards + Tokyu
Areas
90.8%*
Shonan Mall Fill (sokochi)
Approx. 40km
* Based on Appraisal Value at End of
18th Fiscal Period.
Kiba Eitai
Building
Total Acquisition Price does not include acquisition-related costs, property tax, city planning tax and consumption tax.
Prepared on September 13, 2012
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
Tokyu Ginza 2chome Building
59
Portfolio Overview (i)
Office / Retail Ratio (Based on Appraisal Values at End of Period)
Weighted Average Property Age
18.0
100%
(years)
17.1
80%
17.0
32.0
32.8
16.6
33.6
16.0
60%
10.2
12.1
12.3
15.0
14.0
40%
13.0
57.8
55.1
54.1
20%
12.6
11.7
12.0
11.0
0%
IPO
1st
Period
3rd
Period
5th
Period
7th
Period
9th
Period
11th
Period
13th
Period
15th
Period
17th 18th
Period Period
10.0
1st Period
3rd Period
5th Period
7th Period
オフィス
商業施設（郊外）
Retail (Urban)
Retail (Suburban)商業施設（都心）
Office
11th Period
13th Period
15th Period
17th Period 18th Period
* Weighted average of the age of buildings at period end multiplied by the acquisition cost
* Not including Shonan Mall Fill (sokochi)
Area (Based on Appraisal Values at End of Period)
NOI Yield
100%
7.0%
58.4
58.8
Tokyu
areas
80%
9th Period
12
13
16
17
17
16
18
18
19
22
22
22
20
22
24
25
25
25
properties properties properties properties properties properties properties properties properties properties properties properties properties properties properties properties properties properties
6.5%
84.0
6.75%
6.74%
* Effect of capitalization of property tax and city
planning tax of properties acquired at IPO.
6.73%
6.0%
37.4
60%
38.0
Shibuya
ward
5.5%
40%
4.86%
4.86%
40.0
5.0%
69.8
20%
70.0
4.63%
Tokyo
Central
5 Wards
9.2
9.2
IPO
80,300
3rd Period
5th Period
7th Period 9th Period 11th Period 13th Period 15th Period 17th Period 18th Period
187,900
174,430
210,120
242,400
190,360
103,050
136,850
171,080
242,920
190,820
191,440
219,580
187,800
224,330
268,680
181,440
155,090
111,740
1st Period
渋谷区
Tokyu東急沿線地域
Areas
Shibuya
Ward
Prepared on September 13, 2012
その他地域
東京都心5区地域
Tokyo Central 5 Wards
Other Areas
4.40%
Other
areas
0%
Appraisal
Value
(¥ million)
4.60%
4.5%
56.0
4.63%
4.0%
1st Period
3rd Period
5th Period
NOI Yield based on Acquisition Price
7th Period
9th Period
11th Period
13th Period
NOI Yield based on Book Value
15th Period
17th Period
NOI Yield based on Appraisal Value
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
18th Period
60
Portfolio Overview (ii)
Changes in NOI Yield (Based on Acquisition Price)
Changes in NOI利廻の推移（期末算定価額ベース）
NOI Yield (Based on Appraisal Value at End of Period)
(%)
(%)
(%)
(%)
9.0%
9.0%
8.22%
8.0%
8.0%
7.20%
8.00%
7.21%
7.0%
7.0% 6.75%
6.08%
6.74%
6.0%
5.66%
6.08%
6.0%
5.76%
5.45%
5.05%
4.44%
5.39%
5.0%
4.63%
4.14%
4.0%
5.0%
4.40%
6.03%
5.26%
4.61%
4.86%
4.60%
4.38%
4.36%
4.59%
4.0%
3.57%
4.07%
3.77%
3.95%
3.0%
3.0%
1st Period
3rd Period
5th Period
7th Period
Urban Retail
Suburban Retail
9th Period 11th Period 13th Period
Total Retail
Total Office
1st
1st Period
Period
15th Period 17th Period 18th Period
Sum Total
3rd
3rdPeriod
Period
5th
5thPeriod
Period
Urban Retail
7th
7thPeriod
Period
Suburban Retail
Changes in NOI Yield (Based on Book Value)
9th
9thPeriod
Period
11th
Period
11th
Period
Total Retail
13th
Period
13th
Period
Total Office
15th
Period
15th
Period
17th
17thPeriod
Period 18th Period
Sum Total
Changes in NOI Yield
(%)
(%)
(%)
(%)
7.0%
9.0%
6.75%
6.74%
8.20%
6.5%
8.0%
6.73%
* Effect of capitalization of property tax and city
planning tax of properties acquired at IPO.
7.19%
7.0%
6.03%
6.0%
6.73%
6.07%
5.89%
5.39%
5.34%
6.0%
4.86%
5.0%
4.29%
4.0%
3.70%
6.02%
5.5%
4.63%
4.63%
4.86%
5.0%
4.86%
4.63%
4.63%
4.62%
4.11%
4.60%
4.5%
4.40%
4.0%
3.0%
1st Period
3rd Period
5th Period
Urban Retail
Prepared on September 13, 2012
7th Period
Suburban Retail
9th Period
11th Period
Total Retail
13th Period
Total Office
15th Period
Sum Total
17th Period
18th Period
1st Period
第1期
3rd Period
第3期
5th 第5期
Period
NOI Yield based on Acquisition Price
7th
Period
第7期
9th Period
第9期
NOI Yield based on Book Value
11th Period
第11期
13th Period 第15期
15th Period
第13期
17th
Period 18th Period
第17期
NOI Yield based on Appraisal Value at End of Period
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
61
Internal Growth
* Occupancy Rate Increased.
Changes in Occupancy of Overall Portfolio
Occupancy
(%)
100
98
Period-on-Period Monthly Leasing Revenue Increase Rate
IPO
99.9
100.0
99.9
99.9
(%)
4.0
100.0
99.3 99.5
99.9
98.3
0.0
98.1
97.3
2.0
4.2
2.7
2.1
1.0
0.3
* Partial tenant moving into
cocoti and Lexington Aoyama.
3.0
0.5
1.0
-0.5
-2.0
96
94.7
94.7
94.0
-4.0
-6.0
94
-7.6
-8.0
92
90
88
Total
Retail
Office
-12.0
* Large tenants moving
out from TOKYU REIT
Toranomon Building and
Kojimachi Square.
88.4
3rd
Period
5th
Period
7th
Period
9th
Period
11th
Period
13th
Period
15th
Period
Retail
-14.0
40,000
17th
18th
Period Period
-15.7
(%)
6.5%
39,965
36,281
* Sale of Resona
Maruha Bldg.
30,000
20,000
10,000
37,611
35,378
6.19%
6.1%
19,675
21,309
21,958
21,217
6.42%
6.30%
6.3%
23,825
18,795
6.27%
6.10%
6.08%
5.94%
5.89%
19,260
18,786
5.7%
10,757
7,184
6.31%
6.05%
5.9%
18,161
15,000
5.88%
5.86%
5.83%
5.72%
7,190
5.5%
5,000
* Due to the differing number of business days,
5.44%
0
第3期末
3rd
Period
第5期末
5th Period
第7期末
7th Period
第9期末
9th Period
第11期末
11th Period
第13期末
13th Period
第15期末
15th Period 第17期末
17th Period 18th Period
* In calculating the above unit price, we haven’t factored vacant spaces in. In addition, Shonan Mall Fill (sokochi) is not included.
* Excludes income from parking, warehouses, etc.
* Retail (Central Tokyo): QFront, TOKYU REIT Omotesando Square, Lexington Aoyama, TOKYU REIT Shibuya Udagawa-cho Square, cocoti, CONZE Ebisu and Daikanyama Forum.
Retail (Suburb): Tokyu Saginuma Building, Tokyu Saginuma 2 Building, Beacon Hill Plaza (Ito-Yokado Noukendai Store), Yokohama Yamashita-cho Building (Barneys New York
Yokohama Store) (sold in 6th Period)
Prepared on September 13, 2012
5.42%
5.46%
odd accounting period returns are 0.1% lower.
1st第1期末
Period
18th Period
NOI Yield of 11 Properties at IPO
(After Deducting Capitalized Property and City Planning Taxes)
42,243
35,000
25,000
Total
6th Period
8th Period
10th Period
12th Period
14th Period
16th Period
*Excludes income from parking and signs.
*Comparison of monthly leasing revenue at the end of each period (based on actual rent charged).
*Effects from property sales and purchases have been eliminated.
Average Rent (Including Common Area Expenses)
Unit Price
(¥/Month/45,000
Tsubo)
Office
-9.5
-16.0
87.1
1st
Period
* Large tenants moving out
from TOKYU REIT Toranomon
Building and Kojimachi Square.
-10.0
* Partial tenant moving out from
Setagaya Business Square.
* Resona Maruha Bldg. acquired.
86
3.5
5.40%
5.3%
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
14th
15th
16th
17th
18th
Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
62
Unrealized Gains/Losses and Total Return
* The Number of Properties with Unrealized Losses is Trending Downward.
Unrealized Gains/Losses and Percentage Against Book Value by Property
Unrealized
Gain/Loss
(¥ million
8 ,0 0 0
80%
Unrealized Gain / Loss
6,789
% to Book Value
60%
1,439
612
2.1%
191
5.7%
265
Kiba Eitai Building
8.9%
568
Kojimachi Square
8.5%
1,379
40%
Tokyu Ikejiri-ohashi Building
243
17.8%
1,564 1,242
TOKYU REIT Hatchobori Bldg.
714
35.3%
TOKYU REIT Toranomon Bldg.
12.5%
Daikanyama Forum
0.72%
2,209
22.5%
20.5%
1,510
CONZaE Ebisu
1,368
36.5%
29.3%
Shonan Mall Fill
(sokochi)
Lexington Aoyama
2 ,0 0 0
33.4%
cocoti
4 ,0 0 0
Beacon Hill Plaza
(Ito Yokado Noukendai Store)
48.1%
Akasaka 4-chome Bldg
. (Tokyu Agency Inc. Head Office Bldg.)
6 ,0 0 0
20%
1.1%
57
-306
-7.6%
Tokyu Ginza 2chome Bldg.
Akihabara Sanwa
Toyo Building
-1,075
- 1-1,274
,274
-12.7%
-1,410 -1,005 -12.2%
-1,630 -17.2%
-18.3%
-23.7%
TOKYU REIT
Shinjuku Bldg.
TOKYU REIT
Kamata Bldg.
TOKYU REIT
Akasaka
Hinokicho Bldg.
Tokyo Nissan
Taito Bldg.
Tokyu
Sakuragaoka-cho
Bldg.
-897
-6,280 -1,426
-1,072
-27.1% -20.3% -18.2% -26.0%
Tokyu Nampeidaicho Bldg.
-300
-3.5%
Setagaya
Business Sq.
TOKYU REIT
Shibuya Udagawa-cho
Sq.
Tokyu
Saginuma 2 Bldg.
-15.6%
Tokyu
Saginuma Bldg.
-739
TOKYU REIT
Omotesando Sq
- 2 ,0 0 0
QFRONT
0%
Total at 18th
Period End
0
-20%
Portfolio Return Performance
* Total return, excluding the one property recently acquired, has outperformed the benchmark by 0.33 points.
＋
5.46%
5.13%
0
－
Prepared on September 13, 2012
Outperformed
benchmark by
0.33pts.
Benchmark Hurdle Rate
||
Appraisal NCF Cap Rate at
Acquisition (Anticipated Yield)
■Based on 28 properties (acquisition price base: ¥238,329 million), which is the sum of 25 properties that have been held for
more than 4 periods, Yokohama Yamashita-cho Building (Barneys New York Yokohama Store), Resona Maruha Building and
Ryoshin Harajuku Building.
* Fiscal period end appraisal values are utilized as the deemed disposal price (sale price) of properties for the calculation of IRR.
* Acquisition price does not include capitalized expenses (such as broker’s fees, first year’s property / city planning tax,
compensation for specialist agents).
* Cash flow from leasehold and security deposits are not included.
* Sale price of Yokohama Yamashita-cho Building (Barneys New York Yokohama Store) is ¥6,480 million (sold in 6th period).
* Sale price of Resona Maruha Building is ¥42,000 million (sold in 13th period).
* Sale price of Ryoshin Harajuku Building is ¥8,400 million (sold in 13th period).
■IRR for the above 25 properties (acquisition price base: ¥194,663 million) is 4.63%
(underperforming the benchmark return of 5.13% by 0.50 points).
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
63
Risk Management (i)
Portfolio PML Trends
* PML decreased due to a change in the property value appraisal
method utilized by E.R.S. Corporation and Oyo RMS
Corporation resulting from the introduction of a new seismic
analysis method.
(%)
8.0
6.1
6.0
4.1
* The source of funds for CapEx is limited to the amount of
depreciation for REITs, as 100% of profits are distributed.
4.1
4.0
Therefore, we manage by focusing on maintaining the proper
balance between long-term repair and maintenance estimates
and accumulated depreciation.
2.0
0.0
IPO
(11)
2nd Period
(12)
(13)
4th Period
(16)
(17)
6th Period
(17)
(16)
8th Period
(18)
(18)
10th Period
(19)
(22)
12th Period
(22)
(22)
14th Period
(20)
(22)
16th Period
(24)
(25)
18th Period
(25)
(25)
* Not including Shonan Mall Fill (sokochi)
Balance of Depreciation and Repair and Maintenance Costs
Weighted Average Property Age and CapEx Ratio
（year）
(¥ billion)
（%）
（%）100
18
30
Weighted Average Property Age
25
23.6
10
Total
Estimated
Depreciation
(15 years)
5
0
17.1
90
16.6
80
Estimated
Internal
Reserve:
¥10.5bn
20
15
CapEx Ratio
17
16
70
15
13.1
14
Accumulated
Internal Reserve:
¥13.0bn
Total
Estimated
Repair and
Maintenance
Costs
(15 years)
15-Year Estimate
(As of the end of the 18th Period)
13
50
40
12.6
30
12
11.7
20
2.7
11
Total Depreciation
Total CapEx
Actual performance figure
(calculated at end of 18th Period)
* Repair and maintenance cost estimates are updated when appropriate.
* Not including Shonan Mall Fill (sokochi).
Prepared on September 13, 2012
60
15.7
10
10
0
1st
Period
3rd
Period
5th
Period
7th
Period
9th
Period
11th
Period
*CapEx Ratio = (Total Estimated Repair and Maintenance Costs per Period) /
(Total Estimated Depreciation per Period)
13th
Period
15th
Period
18th
17th
Period Period
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
64
Risk Management (ii)
Ratio of Tenants with LT Contracts (Based on Leasable Area)
Property Concentration
* Continuously focus on attracting long-term commitments.
* Ratio of each property decreased as number of properties increased.
* The period of rent renewals for all tenants is 3.38 years on average.
TOKYU REIT
Shinjuku Bldg.
4.9%
QFRONT
11.0%
Setagaya
Business Sq.
10.5%
cocoti
8.9%
Long-Term Tenants
52.7%
Long-Term
Tenants
57.5%
TOKYU REIT
Udagawa-cho Sq.
4.6%
26 properties
(as of end of July 2012)
11 Properties at IPO
(as of end of April 2003)
* Definition of long-term contract: Contracts with remaining contract period of 5 years or longer counting from August 1, 2012,
regardless of fix-term lease contract or not (excludes contracts with rents of 500,000 yen or less per month, such as for antennas,
and contracts that have not yet started the contract periods as of July 31, 2012).
Related Parties Tenant Concentration (Based on Leasable Area)
* Lower dependence on Related Parties.
26 properties at the end of 18th Period
Related Parties
Tenant
4１.0%
11
11 Properties
Properties at
at IPO
IPO
(as
of
end
of
April
(as of end of April 2003)
2003)
Prepared on September 13, 2012
Related Parties
Tenant
17.7%
26 properties
(as of end of July 2012)
(appraisal value at end of period)
Setagaya
Top 3 ：30.3%
Top 5 ：39.8%
Business Sq.
Tokyu
Sakuragaoka-cho
Bldg.
8.2%
27.9%
QFRONT
18.8%
11
11 Properties
Properties at
at IPO
IPO
(based
(based on
on appraisal
appraisal value
value as
as of
of end
end of
of April
April 2003)
2003)
Tokyu Saginuma Bldg.
8.6%
TOKYU REIT
Omotesando Sq.
7.2%
Top 3：55.3%
Top 5：70.7%
*Comments by Tokyu REIM
This document is provided for informational purposes only and is not intended as an inducement or invitation to invest or trade in securities issued by TOKYU REIT.
65