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Message from the Management

We, ORIX JREIT Inc., together with our asset management company, ORIX Asset Management Corporation, would like to express our sincere gratitude to all of our unitholders for your continued support and patronage.

Firstly, OJR would like to express our heartfelt sympathy to everyone affected by the recent natural disasters including earthquakes, heavy rains and typhoons.

In the domestic real estate market, expected yields have remained stable at low levels for all asset types, and thus quality properties continue to be scarce. On the other hand, the supply and demand imbalance due to the mass supply of large-scale offices in central Tokyo has been a concern in the real estate rental market. However, we have observed leasing of newly supplied buildings has been progressing steadily in general and thus we believe such concern for the future has eased.

Under this environment, we successfully issued new investment units by way of public offering in March 2018 and acquired “Hotel Universal Port”, a highly scarce Universal Studios Japan® official hotel, in April 2018 from our strong sponsor pipeline. In addition, the occupancy rate at the end of the 33rd fiscal period ended August 31, 2018 remained at high levels of 99.4%, while we have also been able to achieve internal growth by implementing higher rents through both tenant turnover and rent renewals. In terms of financial aspects, we diversified funding methods through issuance of investment corporation bonds in July 2018. OJR is promoting the lengthening of repayment periods and diversification of repayment dates while maintaining a high level of the fixed-rate debt ratio.

As a result of the above, we were able to pay out 3,489 yen distribution per unit, which is an increase of 189 yen over the 3,300 yen that was forecasted during our previous financial announcement.

We aim to achieve sustainable growth of unitholder value by continuing to leverage on our strengths as a diversified REIT, utilizing ORIX Synergy and maximizing operating expertise going forward.

Again, we would like to thank all of our unitholders, and deeply appreciate your continued understanding and support.


Message from the Management

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