Message from Executive Director
To Our Unitholders
We would like to express our sincere gratitude for your continued excellent support.
We are pleased to report on the management status of One REIT for the 10th fiscal period (fiscal period ended August 2018).
In the 10th fiscal period, in order to realize “selective investment” in core investment target areas, One REIT decided to transfer Niigata Higashibori-dori Parking Building (transfer price: 620 million yen) and to acquire Crescendo Building (acquisition price: 2,466 million yen) on July 20, 2018; and completed the transfer on August 30, 2018 and the acquisition on September 3, 2018. Furthermore, One REIT engaged in negotiations for upward rent revisions in line with market trends while working to realize optimum property management costs, taking into account tenant needs and the characteristics of respective properties. As such, One REIT endeavored to maintain and improve the occupancy rate of the portfolio and enhance leasing business revenues.
As a result, One REIT’s assets at the end of the fiscal period ended August 2018 comprised a portfolio totaling 23 properties (total acquisition price: 80,383 million yen), a total leasable area of 127,633.35 m2 and the occupancy rate at the end of the fiscal period ended August 2018 was 99.1%.
Concerning distributions, taking into consideration the generation of gain on sale of real estate, etc., One REIT decided to retain 89 million yen as internal reserves for the purpose of stabilizing dividends in the future. By distributing the entire amount gained after deducting the amount equivalent to internal reserves (including internal reserve in the previous fiscal period) from unappropriated retained earnings at the end of the fiscal period ended August 2018, One REIT declared distribution per investment unit of 6,955 yen.
We will aim to maximize unitholder value by continuing to utilize sponsor support to the fullest extent and pursuing “continuous growth of distributions” and “disciplined external growth while considering the portfolio and financial structure.”
We appreciate your continued support and patronage.