October 18,2021 | |
Real EstateInvestment TrustSecuritiesIssuer | |
SekisuiHouse Reit,Inc. | |
Representative: | Atsuhiro Kida,Executive Director |
(SecuritiesCode:3309) | |
Asset Management Company | |
SekisuiHouse Asset Management,Ltd. | |
Representative: | Toru Abe, |
President & Representative Director | |
Inquiries: | NobuyoshiSato, |
Director &Investor RelationsDepartment | |
Chief Manager | |
TEL:+81-3-6447-4870(main) |
Notice ConcerningRevisions to the Forecast of OperatingResultsandDistributionsfor theFiscal PeriodEndingApril30,
2022 and the Forecast of OperatingResultsand Distributions for theFiscalPeriod Ending October 31,2022
Sekisui House Reit, Inc. ("SHR") hereby announces the following revisions of the forecast of the operating results and distributions for thefiscal period ending April 30, 2022 (from November 1, 2021 to April 30, 2022) announced in"Notice Concerning Revisions to the Forecast of Operating Results and Distributions for the Fiscal Periods Ending October 31, 2021 and April 30, 2022" dated July 30, 2021. SHR also newly announces the following forecast of the operatingresults and distributionsfor the fiscalperiod ending October 31, 2022 (fromMay1,2022 toOctober 31,2022).
1. Forecast Revisionsand Announcements
- Revisions to the forecast ofoperatingresults and distributions for the fiscal period ending April 30, 2022 (the 15th fiscalperiod)
Distributionsper | Distributionsin | ||||||
Operating | Operating | Ordinary | Net income | unit (excluding | |||
Net income | excess of earnings | ||||||
Revenue | Income | Income | per unit | distributions in | |||
(Million yen) | per unit | ||||||
(Million yen) | (Million yen) | (Million yen) | (yen) | excess of earnings) | |||
(yen) | (yen) | ||||||
Previous | 14,383 | 7,342 | 6,434 | 6,434 | 1,500 | 1,671 | - |
forecast (A) | |||||||
Revised forecast | 14,722 | 7,567 | 6,665 | 6,665 | 1,503 | 1,695 | - |
(B) | |||||||
Difference | 339 | 225 | 231 | 231 | 3 | 24 | - |
(B - A) | |||||||
Change ratio | 2.4 % | 3.1 % | 3.6 % | 3.6 % | 0.2 % | 1.4 % | - |
(Reference)Forecast total number of investment units issued and outstanding at the end of the fiscal period ending April 30, 2022 (the 15th fiscal period): 4,433,041 units(Previous announcement assumed 4,288,666 investment units asof such date)
Disclaimer: This press release is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail. This document is an English translation of a press release for public
announcement concerning revisions to the forecast of operating results and distributions for the fiscal period ending April 30,
2022 and the forecast of operating results and distributions for the fiscal period ending October 31, 2022 of SHR and has not been prepared for the purpose of solicitation or investment. We caution investors to refer to SHR's prospectus and notice of
amendments thereto without fail and to undertake investment at their own decision and responsibility.
In addition, this press release does not constitute an offer of securities in the United States. The securities have not been, and
will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The
securities referred to above will not be offered, publicly or otherwise, in the United States.
1
(2) Forecast of operatingresultsand distributionsfor the fiscal period ending October 31, 2022(the 16th fiscalperiod)
Distributionsper | Distributionsin | ||||||
Operating | Operating | Ordinary | Net income | unit (excluding | |||
Net income | excess of earnings | ||||||
Revenue | Income | Income | per unit | distributions in | |||
(Million yen) | per unit | ||||||
(Million yen) | (Million yen) | (Million yen) | (yen) | excess of earnings) | |||
(yen) | (yen) | ||||||
Forecast | 14,849 | 7,564 | 6,653 | 6,652 | 1,500 | 1,688 | - |
(Reference) Forecast total number of investment units issued and outstanding at the end of the fiscal period ending October 31, 2022 (the 16th fiscal period): 4,433,041units
(Note 1) The above forecasts are calculated as of today, based on the assumptions set forth in the attached exhibit, "Assumptions for Forecast of Operating Results and Distributions for the Fiscal Periods Ending April 30, 2022 and October 31, 2022". The actual operating revenue, operating income, ordinary income, net income, net income per unit, distributions per unit (excluding distributions in excess of earnings) and distributions in excess of earnings per unit may vary due to future acquisition or sale of properties, changes in the real estate market, the number of new investment units and the issue price of new investment units to be issued actually determined and other factors surrounding SHR. The forecast does not guarantee the amount of distributions stated above.
(Note 2) In the forecast, the payment of distributions for the fiscal period ending April 30, 2022 is assumed to be made using the amount of unappropriated retained earnings, adding 191 million yen of reversal of reserve for temporary difference adjustment (the "RTA") and 657 million yen of reversal of reserve for reduction entry. The payment of distributions for the fiscal period ending October 2022, is assumed to be made using the amount of unappropriated retained earnings, adding 207 millionyen of reversal of RTA and 622 million yen of reversal of reserve for reduction entry. As a result, distributions per unit differ from the net income per unit in both periods. For details of the reversal from RTA and reversal of reserve for reduction entry, please refer to the attached exhibit "Distributions per unit (excluding distributions in excess of earnings)" in "Assumptions for Forecast of Operating Results and Distributions for the Fiscal Periods Ending April 30, 2022 and October 31, 2022".
(Note 3) The forecast may be revised when a certain level of discrepancy from the above forecast isexpected.
(Note 4) Figures other than percentages are rounded down tothe nearest specified unit. The same shallapply hereinafter. (Note 5) Change ratio is rounded tothe nearest firstdecimal place.
2. Reasonsfor Revisionand Announcement ofForecast ofOperatingResultsand Distributions
In connection with the decisions to issue new investment units through public offering and to acquire an asset announced today in "Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units" and "Notice ConcerningAcquisition of Trust Beneficiary Interest in Domestic RealEstate (Akasaka Garden City: Additional Acquisition)", SHR hereby announces the revisions to the forecast of the operatingresults and distributions for the fiscal period ending April 30, 2022 (the 15th fiscal period) announced on July 30, 2021 due to the significant change in the assumptions for the forecast of the operating results. SHR also newly announces the forecast of the operatingresultsand distributionsfor the fiscalperiod ending October31,2022(the16thfiscalperiod).
There are no changes as of today to the forecast of operating results and distributions for the fiscal period ending October 31,2021 (the 14thfiscalperiod) announcedon July30,2021.
- SekisuiHouse Reit, Inc.website:https://sekisuihouse-reit.co.jp/en/
Disclaimer: This press release is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail. This document is an English translation of a press release for public
announcement concerning revisions to the forecast of operating results and distributions for the fiscal period ending April 30,
2022 and the forecast of operating results and distributions for the fiscal period ending October 31, 2022 of SHR and has not been prepared for the purpose of solicitation or investment. We caution investors to refer to SHR's prospectus and notice of
amendments thereto without fail and to undertake investment at their own decision and responsibility.
In addition, this press release does not constitute an offer of securities in the United States. The securities have not been, and
will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The
securities referred to above will not be offered, publicly or otherwise, in the United States.
2
[Exhibit]
Assumptionsfor Forecast ofOperatingResultsandDistributions | |||
for the FiscalPeriodsEnding April30, 2022 and October 31, 2022 | |||
Item | Assumptions | ||
⚫ | Fiscal period ending April 30, 2022 (the 15th fiscal period): November 1, 2021 - April 30, | ||
Calculation | 2022 (181 days) | ||
period | ⚫ | Fiscal period ending October 31, 2022 (the 16th fiscal period): May 1, 2022 -October 31, | |
2022 (184 days) | |||
⚫ | It is assumed that in addition to the real estate trust beneficiary interests (for a total of | ||
117 properties) which SHR possesses as of today (the "ExistingAssets"), new real estate | |||
trust beneficiary interests in one office building (Akasaka Garden City (additional | |||
acquisition portion) will be acquired on November 1, 2021 and the acquisitions of new | |||
trust beneficiary interests in two residences (Prime Maison Nakameguro and Prime | |||
Maison Itabashi) will be acquired on February 1, 2022 (collectively, "Assets to be | |||
Acquired"), and that there are no changes in the assets under management (such as | |||
acquisition of new properties or dispositionof existing properties) through the end of the | |||
Assetsunder | fiscal period ending October 31, 2022 (the 16th fiscal period) other than the acquisition | ||
of the Assetsto beAcquired. | |||
Management | |||
For details of the Assets to be Acquired, please refer to the separate press release "Notice | |||
Concerning Acquisition of Trust Beneficiary Interest in Domestic Real Estate | (Akasaka | ||
Garden City: Additional Acquisition)" announced today and "Notice | Concerning | ||
Acquisition and Disposition of Trust Beneficiary Interest in Domestic Real Estate | |||
(Acquisition of Prime Maison Shimokitazawa and Four Other Properties and Disposition | |||
of EstyMaisonTsukamotoand Eight Other Properties)" announcedon July30,2021. | |||
⚫ | The actual number of the assets under management may change due to the acquisitions | ||
of new properties other than the Assets to be Acquired or the dispositions of the Existing | |||
Assetsor the Assetsto be Acquired. | |||
⚫ | SHR anticipates an increase in operating revenue with the acquisition of the Asset to be | ||
Acquired. | |||
⚫ For the property-related operating revenue, revenue of the Existing Assets is calculated | |||
based on lease agreements effective as of today taking into consideration, among other | |||
Operating | matters, market trends and individual tenant trends. Operating revenue of the Assets to | ||
be Acquiredis calculated based oninformation received from the seller of properties, and | |||
Revenue | |||
lease agreements scheduled to be effective upon the acquisition of the Assets to be | |||
Acquired taking into consideration, among other matters, market trends and individual | |||
tenant trends. | |||
⚫ It is assumed that therewillbe no delinquent orunpaidrent bytenants. | |||
⚫ | SHR calculates operating revenue by incorporating a certain amount of reduction from | ||
Disclaimer: This press release is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail. This document is an English translation of a press release for public
announcement concerning revisions to the forecast of operating results and distributions for the fiscal period ending April 30,
2022 and the forecast of operating results and distributions for the fiscal period ending October 31, 2022 of SHR and has not been prepared for the purpose of solicitation or investment. We caution investors to refer to SHR's prospectus and notice of
amendments thereto without fail and to undertake investment at their own decision and responsibility.
In addition, this press release does not constitute an offer of securities in the United States. The securities have not been, and
will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The
securities referred to above will not be offered, publicly or otherwise, in the United States.
3
the lease business, etc.,which isexpected due to thespreadof COVID-19. | |||
⚫ Of property-related operating expenses, which are the main operating | expenses, | ||
expenses other than depreciation of the Existing Assets are calculated by | reflecting | ||
variable factorsin expenses based on past results. Expenses for the Assets to be Acquired | |||
are calculated by reflecting variable factors in expenses based on past results after taking | |||
into consideration information received from the seller of properties and each lease | |||
agreement scheduled to be effective upon the acquisition of the respective Assets to be | |||
Acquired. | |||
⚫ Property and other taxes of 1,023 million yen and 1,095 million yen are expected for the | |||
fiscal period ending April 30, 2022 (the 15th fiscal period) and for the fiscal period | |||
endingOctober31,2022(the16thfiscal period),respectively. | |||
⚫ Although property-related taxes for the acquired assets in the acquisition year are | |||
generally settled at the time of acquisition by prorating for the period held by the seller, | |||
the amount equivalent to the settlement amount is includedin the acquisition cost and, is | |||
therefore not recordedasan expense. | |||
The total amount of property-related taxes included in the acquisition cost of the one | |||
office building to be acquired on November 1, 2021 is expected to be 12 million yen | |||
(corresponding to 61 days) and of the two residences to be acquired on February 1, 2022 | |||
Operating | is expected tobe 30 million yen(correspondingto334 days). | ||
Expenses | Furthermore, the property-related taxes of the Assets to be Acquired are expected to be | ||
recognized as expenses from the fiscal period ending October 31, 2022 (the 16th fiscal | |||
period),and the fiscalperiodending October 2023 (the 18thfiscalperiod), respectively. | |||
⚫ Repair expenses expected to be required for each fiscal period are recorded as expenses | |||
based on the amounts planned by Sekisui House Asset Management, Ltd. (the "Asset | |||
Management Company"), to which SHR entrusts its asset management, upon takinginto | |||
consideration the amounts set forth in building condition inspection reports and the | |||
appraisal reports. However, the actual repair expenses for the relevant fiscal period may | |||
materially differ from the amounts used for the forecast due to potential emergency | |||
repairs arising from building damages from unforeseeable factors, generally varying | |||
materiallyfromyear toyear,andnot being periodicallyarising expenses. | |||
⚫ | Depreciation is calculated using the straight-line method includingincidental expenses, | ||
etc., and is expected to be 2,491 million yen in the fiscal period ending April 30, 2022 (the | |||
15th fiscal period) and 2,541 million yen in the fiscal period ending October 31, 2022 | |||
(the 16th fiscalperiod),respectively. | |||
⚫ Asset management fees are expected to be 914 million yen in the fiscal period ending | |||
April 30, 2022 (the 15th fiscal period) and 937 million yen in the fiscal period ending | |||
October 31,2022 (the 16thfiscalperiod),respectively. | |||
Non-operating | ⚫ | Amortization of investment unit issuance costs including those related to the issuance of | |
expenses | new investmentunits through publicofferingand secondary offeringof investment units, | ||
Disclaimer: This press release is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail. This document is an English translation of a press release for public
announcement concerning revisions to the forecast of operating results and distributions for the fiscal period ending April 30,
2022 and the forecast of operating results and distributions for the fiscal period ending October 31, 2022 of SHR and has not been prepared for the purpose of solicitation or investment. We caution investors to refer to SHR's prospectus and notice of
amendments thereto without fail and to undertake investment at their own decision and responsibility.
In addition, this press release does not constitute an offer of securities in the United States. The securities have not been, and
will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The
securities referred to above will not be offered, publicly or otherwise, in the United States.
4
which were resolved at a meetingof SHR's board of directors held today is expected to be 51million yen in the fiscal period ending April 30, 2022 (the 15th fiscal period) and 16 million yen in the fiscal period ending October 31, 2022 (the 16th fiscal period), premised on amortization of investment unit issuance costs over three years using the straight-line method.
- Interest expenses, interest expenses on investment corporation bonds, and borrowing- related expenses are expected to be 826 million yen in the fiscal period ending April 30, 2022 (the 15th fiscal period) and 867 million yen in the fiscal period ending October 31, 2022 (the 16th fiscal period), but are premised on 34 million yen in the fiscal period ending April 30, 2022 (the 15th fiscal period) and 17 million yen in the fiscal period ending October 31, 2022 (the 16th fiscal period) being deducted from interest expenses as the drawdown amount for deferredincome.
- SHR has an outstanding long-term and short-term loans payable of 215,442 million yen, investment corporation bonds of 34,500 million yen and total interest-bearingliabilities of 249,942 million yen asoftoday.
- It is assumed that SHR will procure a short-term borrowings of 13,500 million yen in February 2022 in order to partially fund the acquisition of two residential properties scheduledto be acquiredon February1, 2022.
- It is assumed that all funds for repayment or redemption of borrowings totaling 26,830
millionyen which become due and payablein the fiscal period ending April 30, 2022 (the | |
15th fiscal period) and borrowings and investment corporation bonds totaling 15,400 | |
Interest-bearing | million yen which become due and payable in the fiscal period ending October 31, 2022 |
(the 16th fiscalperiod)willbe financed byborrowings. | |
liabilities | |
The LTV ratio as of the end of the fiscal period ending April 30, 2022 (the 15th fiscal | |
⚫ | |
period) and the fiscal period ending October 31, 2022 (the 16th fiscal period) is | |
estimated tobe around45.4%. | |
⚫ The following formulaisusedto calculate thetotalassetsLTV ratio. | |
The total assets LTV ratio = (expected) total amount of interest-bearing liabilities ÷ | |
(expected)totalamount ofassets× 100 | |
⚫ | The total assets LTV ratio may vary depending on the finalization of operating results for |
the fiscal period ended October 31, 2021 (the 14th fiscal period) and the issue amount of | |
the new investment units and the number of new investment units to be issued through | |
publicoffering andthird-partyallotment. | |
⚫ It is assumed that, in addition to 4,288,666 units issued and outstanding as of today, all of | |
the investment units scheduled to be newly issued through public offering 137,500 units | |
Investment units | and by way of third-party allotment (maximum of 6,875 units), for which resolution was |
passed at a meeting of SHR's board of directors held today. For details, please refer to | |
"Notice Concerning Issuance of New Investment Units and Secondary Offering of | |
Investment Units"announced separatelytoday. |
Disclaimer: This press release is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail. This document is an English translation of a press release for public
announcement concerning revisions to the forecast of operating results and distributions for the fiscal period ending April 30,
2022 and the forecast of operating results and distributions for the fiscal period ending October 31, 2022 of SHR and has not been prepared for the purpose of solicitation or investment. We caution investors to refer to SHR's prospectus and notice of
amendments thereto without fail and to undertake investment at their own decision and responsibility.
In addition, this press release does not constitute an offer of securities in the United States. The securities have not been, and
will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The
securities referred to above will not be offered, publicly or otherwise, in the United States.
5
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Sekisui House REIT Inc. published this content on 18 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2021 06:31:04 UTC.