For Translation Purposes Only
FINANCIAL REPORT
FOR THE THIRTIETH FISCAL PERIOD ENDED JULY 31, 2021
September 14, 2021
Name of issuer:
Stock exchange listing: Securities code: Website:
Representative of the investment corporation: Name of asset manager:
Representative of the asset manager: Contact:
Scheduled date for filing of securities report: Scheduled date for dividends payment: Supplementary materials for financial results: Analyst meeting:
Mori Hills REIT Investment Corporation Tokyo Stock Exchange
3234https://www.mori-hills-reit.co.jp/enHideyuki Isobe, Executive Director
Mori Building Investment Management Co., Ltd. Hideyuki Isobe, President & CEO
Akira Nemoto, General Manager of Financial Department
TEL: +81-3-6234-3234 October 27, 2021 October 15, 2021 Otherwise prepared Scheduled
1. PERFORMANCE FOR THE THIRTIETH FISCAL PERIOD ENDED JULY 31, 2021 (February 1, 2021 - July 31, 2021)
(1) Business Results
(Percentage change represents a period-on-period comparison)
Operating Revenue | Operating Income | Ordinary Income | Net Income | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
Thirtieth | 9,841 | 0.2 | 6,157 | (0.3) | 5,583 | 0.1 | 5,582 | 0.1 | ||||
Fiscal Period | ||||||||||||
Twenty-ninth | 9,820 | 2.3 | 6,173 | 2.4 | 5,576 | 2.6 | 5,575 | 2.6 | ||||
Fiscal Period | ||||||||||||
Net Income | Net Income to | Ordinary Income to | Ordinary Income to | |||||||||
per Unit | Total Net Assets | Total Assets | Operating Revenue | |||||||||
Yen | % | % | % | |||||||||
Thirtieth | 2,913 | 2.8 | 1.4 | 56.7 | ||||||||
Fiscal Period | ||||||||||||
Twenty-ninth | 2,919 | 2.8 | 1.4 | 56.8 | ||||||||
Fiscal Period | ||||||||||||
(2) Dividends
Dividends | Total | Dividends | Total | Dividends | Total | |||
per Unit | Dividends | in Excess | Dividends | per Unit | Dividends | Dividend | Dividend | |
(excluding | (excluding | of | in Excess | (including | (including | Payout | Ratio to | |
dividends in | dividends in | Earnings | of | dividends in | dividends in | Ratio | Net Assets | |
excess of | excess of | excess of | excess of | |||||
earnings) | earnings) | per Unit | Earnings | earnings) | earnings) | |||
Yen | Millions of yen | Yen | Millions of yen | Yen | Millions of yen | % | % | |
Thirtieth | 2,913 | 5,582 | - | - | 2,913 | 5,582 | 99.9 | 2.8 |
Fiscal Period | ||||||||
Twenty-ninth | 2,838 | 5,438 | 71 | 136 | 2,909 | 5,574 | 97.5 | 2.7 |
Fiscal Period | ||||||||
(Note 1) Total Dividends in Excess of Earnings is entirely the amount attributable to allowance for temporary difference adjustments.
(Note 2) Dividend Payout Ratio is calculated by using the formula below and is rounded down to one decimal place. Dividend Payout Ratio = [Total Dividends (excluding dividends in excess of earnings) ÷ Net Income] × 100
Dividend Payout Ratio when calculated by using the formula below is 99.9% for the twenty-ninth fiscal period. Dividend Payout Ratio = [Total Dividends (including dividends in excess of earnings) ÷ Net Income] × 100
(Note 3) Dividend Ratio to Net Assets is calculated by using the formula below.
Dividend Ratio to Net Assets = Dividends per Unit (excluding dividends in excess of earnings) ÷ [(Net Assets per Unit at Beginning of the Period + Net Assets per Unit at End of the Period) ÷ 2] × 100
(3) Financial Position
Total Assets | Net Assets | Net Assets to | Net Assets per Unit | |
Total Assets | ||||
Millions of yen | Millions of yen | % | Yen | |
Thirtieth | 404,953 | 200,818 | 49.6 | 104,793 |
Fiscal Period | ||||
Twenty-ninth | 402,887 | 200,763 | 49.8 | 104,764 |
Fiscal Period | ||||
(4) Cash Flows
Net Cash | Net Cash | Net Cash | Cash and | |
Provided by (Used in) | Provided by (Used in) | Provided by (Used in) | Cash Equivalents | |
Operating Activities | Investing Activities | Financing Activities | at End of the Period | |
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
Thirtieth | 7,120 | (1,019) | (3,805) | 13,116 |
Fiscal Period | ||||
Twenty-ninth | 6,672 | (12,383) | 4,971 | 10,820 |
Fiscal Period | ||||
2. FORECAST OF RESULTS FOR THE THIRTY-FIRST FISCAL PERIOD ENDING JANUARY 31, 2022 (August 1, 2021 - January 31, 2022) AND THE THIRTY-SECOND FISCAL PERIOD ENDING JULY 31, 2022 (February 1, 2022 - July 31, 2022)
(Percentage change represents a period-on-period comparison)
Operating Revenue | Operating Income | Ordinary Income | Net Income | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
Thirty-First | 9,818 | (0.2) | 6,053 | (1.7) | 5,481 | (1.8) | 5,480 | (1.8) | ||||
Fiscal Period | ||||||||||||
Thirty-Second | 9,799 | (0.2) | 6,033 | (0.3) | 5,481 | 0.0 | 5,480 | 0.0 | ||||
Fiscal Period | ||||||||||||
Dividends per Unit | Dividends in Excess of Earnings | |||||||||||
(excluding dividends in excess of earnings) | per Unit | |||||||||||
Yen | Yen | |||||||||||
Thirty-First | 2,860 | 50 | ||||||||||
Fiscal Period | ||||||||||||
Thirty-Second | 2,860 | - | ||||||||||
Fiscal Period | ||||||||||||
(Reference) Estimated net income per unit = [Estimated net income ÷ Estimated number of units issued and outstanding at the | ||||||||||||
end of the period] | : ¥2,860 | |||||||||||
Thirty-First fiscal period | ||||||||||||
Thirty-Second fiscal period | : ¥2,860 |
(Note 1) Concerning dividends for the Thirty-First Fiscal Period, the Company assumes that part of reserve for reduction entry (95 million yen) will be reversed for cash distribution.
(Note 2) Dividends in Excess of Earnings per Unit is entirely the amount attributable to allowance for temporary difference adjustments.
*OTHER
- Changes in Accounting Policies, Changes in Accounting Estimates and Corrections of Errors
- Changes in accounting policies in accordance with amendments to accounting standards, etc.: None
- Changes in accounting policies other than (a): None
- Changes in accounting estimates: None
- Corrections of errors: None
- Number of Units Issued and Outstanding
- Number of units issued and outstanding at end of the period (including own units)
Thirtieth fiscal period: | 1,916,330 units | Twenty-ninth fiscal period: 1,916,330 units | |
(b) Number of own units at end of the period | |||
Thirtieth fiscal period: | 0 units | Twenty-ninth fiscal period: | 0 units |
(Note) For the number of investment units used as the basis for calculating net income per unit, please refer to "Per unit Information" on page 33
- This financial report is not subject to audit procedures by certified public accountants or accounting firms.
- Special note
The forecast of results and other forward-looking statements contained in this document are based on information currently available to and certain assumptions deemed reasonable by Mori Hills REIT Investment Corporation (the "Company"). Accordingly, actual results, etc. may differ materially due to a variety of factors. Furthermore, these forecasts shall not be construed as a guarantee of dividends. For the assumptions underlying the forecasts of results, please refer to "Assumptions of Forecasts of Results for the Thirty-First Fiscal Period Ending January 31, 2022 (August 1, 2021 - January 31, 2022) and the Thirty- Second Fiscal Period Ending July 31, 2022 (February 1, 2022 - July 31, 2022)" presented on pages 9 to 11.
Mori Hills REIT Investment Corporation (3234)
Financial Report for the Thirtieth Fiscal Period Ended July 31, 2021
- INDEX
1. MANAGEMENT STATUS ................................................................................................................ | 2 | |
(1) | Management Status................................................................................................................................... | 2 |
(a)Overview of the Fiscal Period................................................................................................................ | 2 | |
(b)Outlook for the Next Fiscal Period ...................................................................................................... | 5 | |
2. FINANCIAL STATEMENTS ......................................................................................................................... | 12 | |
(1) | Balance sheet ............................................................................................................................................ | 12 |
(2) | Statement of income and retained earnings............................................................................................ | 14 |
(3) | Statement of changes in net assets.......................................................................................................... | 15 |
(4) | Statement of cash distributions ............................................................................................................... | 17 |
(5) | Statement of cash flows ............................................................................................................................ | 18 |
(6) | Notes to assumption of going concern...................................................................................................... | 19 |
(7) | Summary of significant accounting policies ............................................................................................ | 19 |
(8) | Notes to Financial Statements ............................................................................................................... | 21 |
(9) | Changes in unit issued and outstanding ................................................................................................. | 33 |
3. REFERENCE INFORMATION ..................................................................................................................... | 34 |
1
Mori Hills REIT Investment Corporation (3234)
Financial Report for the Thirtieth Fiscal Period Ended July 31, 2021
1. MANAGEMENT STATUS
- Management Status
- Overview of the Fiscal Period
- Brief Background of the Investment Corporation
The Company was incorporated by Mori Building Investment Management Co., Ltd. (the Company's Asset Manager) on February 2, 2006 under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended) (the "Investment Trust Act"), and was listed on the Real Estate Investment Trust Section of Tokyo Stock Exchange, Inc. (the "Tokyo Stock Exchange") on November 30, 2006 (Securities Code: 3234).
In the fiscal period under review (thirtieth fiscal period: February 1, 2021 to July 31, 2021), as of the end of the thirtieth fiscal period, the total number of investment units issued and outstanding was 1,916,330.
- Investment Environment and Business Performance
- Investment Environment
In the thirtieth fiscal period, the Japanese economy saw ongoing weakness in consumer spending as the impact of COVID-19 continued, but improvements were seen centering on the manufacturing sector as exports to places with high vaccination rates, such as Europe, the US and China, grew.
In such an economic environment, the vacancy rate in the rental office building market continued to rise against the backdrop of the spread of remote work triggered by the pandemic, as well as by the strengthened cost-cutting trend of companies, and these conditions also resulted in stagnant growth in rent levels. As for the luxury rental housing market, occupancy rates and rent levels remained solid, driven by the ongoing stable demand for quality housing in central Tokyo amid new supply remaining at a certain level. In terms of the real estate trading market, transaction prices continued to be high and the transaction amount continued to stay at a high level backed by the ongoing favorable fund-raising environment and investors inside and outside of Japan showing no change in their investment appetite.
(ii) Business Performance
In the thirtieth fiscal period, the Company strove to maintain and enhance tenant satisfaction through measures such as efficient and systematic operational management and maintenance and repair of properties in its portfolio by better understanding tenant needs. Moreover, the Company maintained and enhanced occupancy rates and rents by proactively launching leasing activities targeting new and existing tenants while foreseeing trends in rental market conditions.
The Company's real estate portfolio, as of the end of the thirtieth fiscal period, was comprised of 11 properties (Note 1) under management with a total leasable area of 178,832.97m2. The Company has already invested 402,910 million yen (based on the acquisition price) into this portfolio. The occupancy rate at the end of the thirtieth fiscal period (Note 2) was 97.6 %.
2
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Mori Hills REIT Investment Corporation published this content on 14 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2021 07:31:08 UTC.