We would like to begin by thanking our unitholders for their continued support of NIPPON REIT (“NRT”).
We closed the ninth fiscal period (ended December 31, 2016) on a successful note.
This is in part attributable to the ongoing support from our stakeholders, including our unitholders.
We offer you our heartfelt thanks.
I would like to report on our operations and financial performance for the ninth fiscal period.
During the fiscal period under review, we focused in particular on the internal growth of the portfolio, as a result, we recorded the highest occupancy rate of 98.8% ever. Moreover, we succeeded in increasing rents for 31 tenants (equivalent to 30.9% of floor space) out of the 98 tenants that were subject to rent renewals during this fiscal period. The resulting improvement in our profitability significantly exceeded targets, leading to record levels of profit.
As a result, distributions per unit reached ¥7,800, an increase of ¥415 (5.6%) over the ¥7,385 figure that was forecast at the end of the previous fiscal period. This continues the trend of steady growth in normalized distributions per unit that has been in place since the listing.