We, ORIX JREIT Inc. (OJR) and its asset management company, ORIX Asset Management Corporation (OAM), are pleased to report the business performance of OJR to our unitholders.
In our 11th period, which ended in August 2007, we acquired the following buildings: the Nihonbashi Honcho 1-chome Building (acquisition price: ¥10.5 billion), Round-Cross Shinjuku 5-chome (acquisition price: ¥4.5 billion), KN Jiyugaoka Plaza (acquisition price: ¥3.11 billion), and Lunar Sendai (acquisition price: ¥8.5 billion). With the acquisition of these four new properties (total acquisition value: ¥26.61 billion), our real estate portfolio holding at the end of the current period comprises 44 properties and has a total acquisition value of ¥235.625 billion. In addition, while we have tied up with a property management company and aim to improve our relationship with tenants by focusing on quality maintenance of our properties and prompt responsiveness to tenant needs, OJR has worked to improve profitability with upward revisions of rents through an accurate understanding of the conditions of the rental/leasing market. Through these efforts towards internal and external growth, operating revenues were ¥9.161 billion, operating income was ¥4.127 billion, and net income was ¥3.284 billion. Distribution per unit was ¥14,572.
On October 3 and 30, 2007, we issued new investment units and raised ¥16.9 billion in capital. We used these funds to repay borrowings and to reduce our interest-bearing debt ratio, which had increased due to property acquisitions. Since we listed on the stock exchange, we have aimed for external growth while maintaining our interest-bearing debt ratio at an appropriate level. With this issuance of new units , our balance sheet greatly improves, and we have taken one big step forward towards achieving our medium- and long-term objective of having ¥300 billion under management (total acquisition value).
Going forward, our objective is to achieve greater growth by continuing to work on scalability through external growth and improvements in profitability through internal growth. We aim to deliver a stable and satisfactory level of profit distribution and increase the asset value of our portfolio in the medium- and long-term. We thank all our investors and look forward to your continued support and encouragement.
