Message to Our Unitholders
On behalf of the Investment Corporation, I would like to express our sincere gratitude for the loyal patronage of our unitholders.
Since its establishment in May 2002, the Investment Corporation has steadily expanded its asset size for approximately 19 years under the corporate name of Premier Investment Corporation while enjoying strong support from our unitholders and stakeholders. Built on this achievement, the Investment Corporation changed its name to NTT UD REIT Investment Corporation (NUD) as of April 1, 2021, and I, Yuichi Kato, assumed the office of Executive Director on the same date.
As for Premier REIT Advisors Co., Ltd., to which the Investment Corporation had consigned its asset management since inception, the company merged with NTT Urban Development Asset Management Corporation (UDAM), an asset management company belonging to the NTT Group, as of April 1, 2021, with UDAM succeeding the asset management agreement with the Investment Corporation.
Please also accept my greetings as I assumed the office of Director of UDAM as of the same date. By concurrently serving for these two organizations, I will work to promote even closer communication between them.
In the 37th fiscal period ended April 2021, the Investment Corporation acquired interests in Shinagawa Season Terrace, a Class S building located in Minato Ward, Tokyo, through a transaction for reshuffling of properties with a third party on the market by utilizing the pipeline support of NTT Urban Development Corporation (NTT UD), the sponsor. With the acquisition, NUD’s owned assets as of April 30, 2021, consist of 59 properties made up of 26 office buildings and 33 residential properties and amount to 261.8 billion yen in total. The period-average occupancy rate of the entire portfolio stood at 95.9%.
The transfer of a property in the transaction also contributed, and NUD posted operating revenues of 11,468 million yen, up 21.1%, and net income of 5,299 million yen, up 37.6%, both on a period-on-period basis, for the 37th fiscal period. As for distribution per unit, NUD secured 4,024 yen, which surpassed the forecast of 3,890 yen for the period announced in “Financial Report for the Fiscal Period Ended October 31, 2020 (May 1, 2020 – October 31, 2020)” dated December 16, 2020.
Given the situation in which there is no telling yet how the COVID-19 pandemic will turn out, we have embarked on something new under the government’s state-of-emergency declaration. Nevertheless, we are determined to overcome this hardship by reinforcing the sponsorship of NTT UD and heightening the efficiency and stability of our management platform as well as strengthening our competitiveness through the merger of the asset management companies with an aim to further enhance unitholder value.
Looking ahead, we at NUD will continue our utmost efforts to meet the expectations of our unitholders by realizing steady growth of assets and stable management over the medium to long term in line with the growth strategy of the NTT Group. We appreciate and request your continued support and encouragement.
June 17, 2021