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 our unitholders for your continued support and patronage.
We would like to express our deepest condolences for those who have lost their lives and extend our sincere sympathies to everyone who has been affected by the novel coronavirus.
As the novel coronavirus has remained to affect the society and economy widely domestically and abroad, the domestic real estate rental market has been greatly affected mainly in the urban-type retail facilities and hotels due to the restrictions on people's activities. On the other hand, in the real estate trading market, acquiring quality properties remains to be competitive with limited opportunities.
From our external growth strategy perspective under this environment, as part of our asset reshuffling strategy focused on enhancing portfolio quality, we have acquired an office and a residential property where we can leverage our operating expertise and market knowledge without missing out on valuable acquisition opportunities.
Regarding internal growth, we continue to conduct individual and thorough discussions regarding rent reduction requests etc. mainly from our retail and hotel tenants. Meanwhile, as of now we have not been significantly affected by the penetration of remote working in our office properties, and we have continued to achieve rent increase on both rent renewals and turnovers.
In terms of financial aspect, we have continued to place considerable emphasis on financial stability such as fixing the interest rate, lengthening the payment period, maintaining and securing borrowing capacity and cash and deposits while considering to reduce funding costs.
Accordingly, we are pleased to announce that our distribution per unit has increased 56 yen to 3,546 yen per unit compared to3,490 yen that was forecasted during our previous financial announcement.
In addition, we are pleased to announce that we were selected by the Ministry of the Environment to participate in the “Project to support scenario analysis of climate risks and opportunities in line with the TCFD for FY2020“ to conduct a TCFD scenario analysis on the impact of global warming and other climate changes that can eventually affect our portfolio.
ORIX JREIT Inc. and all officers and employees in ORIX Asset Management Corporation are unceasingly fully committed to endeavor to ride out this situation caused by the novel coronavirus closely with our many stakeholders. We also remain positive to seek new growth opportunities under this challenging environment.
Lastly, we again would like to thank all our unitholders, and deeply appreciate your continued understanding and support.