Ⅰ．Trends of investing units
Monthly
Report ～ Oct 2008 ～J-REIT Asset Size
Number of Properties：1,844（Last month 1,832※ ）Total Assets（Based on Purchase） ：7,591 Billion Yen（Last month 7,513 Billion Yen）
Total Assets（Based on Appraisal）：8,624 Billion Yen（Last month 8,335 Billion Yen）
J-REIT：42 J-REITs（Last month 42 J-REITs）

As of the end of September.

Marginal rise in Asset Size.
6th straight month of Flat in NOI Cap Rate.
◆Prospect Residential Investment Corporation
To submit a revised plan limiting the number of appraised companies to 5 to the Financial Services
Agency.
◆Re-plus Residential Investment Corporation
To continue with the REIT listing despite the bankruptcy of Re-plus Inc., a major sponsor.
◆First acquisition by Simplex REIT Investment Corporation.

Ⅰ. Trends of investing units◆Trend of Japanese share prices
Declined due to a series of bad news such as the U.S. House of Representatives’rejection of the Emergency Economic Stabilization Act of 2008, and concerns overa meltdown in the world economy due to worsening economic indices in both Japan andthe U.S.

◆Trend of J-REIT interest rates
Rose due to increased concerns of a credit crunch brought about by thefinancial crisis in the U.S.

Ⅱ.NOI Cap Rate：5.2％（Last month 5.2％）

±0.0P

◆Area
Minato・Chuo・Chiyoda：4.7％（Last month4.7％）

Chiho：5.8％（Last month 5.8％）◆Asset type
Office：5.1％（Last month5.1％）

Residential：5.3％（Last month 5.3％）

Ⅲ. Acquisition Trends： 17（Last month 5）+12

Ⅳ. Sales Trends： 5（Last month 2）+3

Cap rate (month to month basis)
Rise in Red, Flat in Yellow, Down in Green.

TOKYU LAND CORPORATION
Oct 2008 Monthly report（15-Oct-08） 1
Unauthorized reproduction forbidden. While the company has adopted thoroughgoing measures when creating the “Tokyu Land Corporation
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Users are advised to exercise discretion in evaluating the accuracy of the information provided in this survey when using it.
Copyright (C) 2008 TOKYU LAND CORPORATION. All rights reserved.

Ⅰ．Trends of investing units◆ Trend of Japanese share prices

NAREIT graphs are enlarged 10 times.
Adapted from Bloomberg
Adapted from Bloomberg◆Trends of expected dividend cap rates of main investment corporations.

Adapted of ARES data
Only “Cap rate of government bonds” is adapted from Bloomberg

TOKYU LAND CORPORATION
Oct 2008 Monthly report（15-Oct-08） 2
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Copyright (C) 2008 TOKYU LAND CORPORATION. All rights reserved.

Ⅱ．ＮＯＩ Cap Rate（Area）
ＮＯＩ Cap Rate
5.2%
4.7%
4.6%
5.2%
5.6%
5.8%
5.8%

Total
Minato・Chiyoda・Chuo
Shibuya・Shinjuku
Other 18ku
Other Tokyo-to
Other Metro
Chiho

Number of Properties
1,326
312
150
321
32
186
325

ＮＯＩ Cap Rate【Area】
10.0%

1,500
1,400
1,300

9.0%

1,200
1,100

8.0%

1,000
900
7.0%
800
700
6.0%
600
500
5.0%

400
300

4.0%

200
100

3.0%

0
2002

2003

2004

2005

2006

2007

2008.02 2008.03 2008.04 2008.05 2008.06 2008.07

Number of Properties in total

24

119

150

302

557

1,085

1,138

1,153

1,179

1,292

1,306

Minato,Chuo,Chiyoda

6

37

48

83

156

270

291

293

296

309

311

312

Shibuya,Shinjuku

3

11

17

47

84

121

129

130

131

147

147

150

Other 18ku

0

16

18

58

114

237

246

249

265

313

316

321

Other Tokyo-to

0

2

2

5

15

28

31

30

30

31

32

32

Other Metro

5

14

19

42

70

153

156

160

164

182

186

186

1,326

Chiho

10

39

46

67

118

276

285

291

293

310

314

325

Average

7.1%

6.9%

6.7%

6.0%

5.4%

5.3%

5.2%

5.2%

5.2%

5.2%

5.2%

5.2%

Minato,Chuo,Chiyoda

6.6%

6.0%

5.9%

5.6%

5.0%

4.7%

4.7%

4.7%

4.7%

4.7%

4.7%

4.7%

Shibuya,Shinjuku

6.0%

6.1%

5.9%

5.1%

4.8%

4.6%

4.5%

4.5%

4.5%

4.5%

4.5%

4.6%

Other 18ku

6.6%

6.7%

5.8%

5.2%

5.1%

5.1%

5.1%

5.1%

5.2%

5.2%

5.2%

Other Tokyo-to

9.1%

8.9%

6.6%

5.8%

5.6%

5.7%

5.6%

5.6%

5.6%

5.6%

5.6%

Other Metro

6.9%

7.7%

7.3%

6.7%

5.8%

5.9%

5.8%

5.8%

5.7%

5.8%

5.8%

5.8%

Chiho

7.8%

7.8%

7.4%

7.1%

6.2%

6.0%

5.8%

5.8%

5.7%

5.7%

5.8%

5.8%

Cap rate of government bonds

0.900%

1.350%

1.435%

1.470%

1.675%

1.550%

1.355%

1.275%

1.575%

1.740%

1.610%

1.530%TOKYU LAND CORPORATION
Oct 2008 Monthly report（15-Oct-08） 3
Unauthorized reproduction forbidden. While the company has adopted thoroughgoing measures when creating the “Tokyu Land Corporation
J-REIT System” (TOREIT) and the contents in this survey, it is however, not responsible for the accuracy and completeness of the date.
Users are advised to exercise discretion in evaluating the accuracy of the information provided in this survey when using it.
Copyright (C) 2008 TOKYU LAND CORPORATION. All rights reserved.

Ⅱ.ＮＯＩ Cap Rate（Asset type）
ＮＯＩ Cap Rate
5.2%
5.1%
5.3%
5.1%
5.5%
5.4%
6.3%
5.8%

Total
OfficeResidential
Commertial
Hotel
Logistics
Sokochi
Parking

Number of Properties
1,326
423
735
117
25
16
6
4

ＮＯＩ Cap Rate【Asset type】
1,500

10.0%

1,400
1,300

9.0%

1,200
1,100

8.0%

1,000
900

7.0%

800
700
6.0%

600
500

5.0%

400
300

4.0%

200
100
0

3.0%
2002

2003

2004

2005

2006

2007

2008.022008.032008.04

2008.05

2008.06

2008.07

Number of Properties in total

24

119

150

302

557

1,085

1,138

1,153

1,179

1,292

1,306

1326

Office

24

108

124

183

240

384

412

406

415

421

427

423

Residential

0

3

9

72

241

570

585

591

608

711

712

735

Commertial

0

7

16

44

72

95

110

111

111

114

117

117

Hotel

0

1

1

2

3

15

10

24

24

24

24

25

Logistics

0

0

0

0

0

17

16

16

16

16

16

16

Sokochi

0

0

0

1

1

4

5

5

5

6

6

6

Parking

0

0

0

0

0

0

0

0

0

0

4

4

Average

7.1%

6.9%

6.7%

6.0%

5.4%

5.3%

5.2%

5.2%

5.2%

5.2%

5.2%

5.2%

Office

7.1%

6.9%

6.7%

6.2%

5.7%

5.3%

5.2%

5.2%

5.2%

5.1%

5.1%

5.1%

Residential

6.0%

5.8%

5.8%

5.1%

5.3%

5.2%

5.2%

5.2%

5.3%

5.3%

5.3%

Commertial

7.7%

6.8%

5.7%

5.3%

5.2%

5.1%

5.0%

5.0%

5.0%

5.1%

5.1%

Hotel

7.4%

6.8%

6.4%

5.8%

5.8%

5.7%

5.6%

5.5%

5.5%

5.5%

5.5%

5.8%

5.4%

5.4%

5.4%

5.4%

5.4%

5.4%

7.8%

7.8%

7.2%

6.4%

6.4%

6.4%

6.3%

6.3%

6.3%

5.8%

5.8%

1.470%

1.675%

1.550%

1.355%

1.275%

1.575%

1.740%

1.610%

1.530%

Logistics
Sokochi
Parking
Cap rate of government bonds 0.900%

1.350%

1.435%TOKYU LAND CORPORATION
Oct 2008 Monthly report（15-Oct-08） 4
Unauthorized reproduction forbidden. While the company has adopted thoroughgoing measures when creating the “Tokyu Land Corporation
J-REIT System” (TOREIT) and the contents in this survey, it is however, not responsible for the accuracy and completeness of the date.
Users are advised to exercise discretion in evaluating the accuracy of the information provided in this survey when using it.
Copyright (C) 2008 TOKYU LAND CORPORATION. All rights reserved.

Ⅲ．Acquisition Trends
Acquired properties in Sep 2008:17,Total acquisition value :106.394 billion yen.
Scheduled acquisition properties announced in Sep are as follows.

【List of scheduled acquisition properties】
Property Name

Nomura Nishihommachi Building

AdressJ-REITsUse

30-Oct-08

Nishi-ku,Osaka City

Nomura Real Estate
Development Co.,Ltd.

3,550,000

Office,Shop,Parking

6,260.16

4.8

MID REIT
ORIX Nagoya Nishiki Building

29-Sep-08
ORIX JREIT
30-Sep-08

Akasaka Tameike Tower
ARK Mori Building
Komaki Logistics Center Ⅱ

MORI HILLS REIT
30-Sep-08
MORI HILLS REIT
26-Sep-08
Japan Logistics Fund
29-Sep-08

Ichikawa Logistics Center
ORIX JREIT

Nomura Shibuya Dogenzaka Building

Nomura Nishi-Umeda Building

26-Sep-08

Naka-ku,
Nagoya City
OfficeMinato-ku
Office、Shop
Residential
Minato-ku
Office,Shops
Komaki City

ORIX Real
Estate Corporation
13,978.93
Mori Building Co.,Ltd.

12,500,000

4.5
37,200,000

3.7Mori Building Co.,Ltd.
177,486.95
Daizen Soko Co.,Ltd.
Warehouse,Office
10,708.41
ORIX Real Estate
Ichikawa City
Corporation
Warehouse,
37,456.96
garbage dump

5,500,000

Shibuya-ku
Office,Parking

26-Sep-08

Kita-ku,Osaka City

26-Sep-08
Shinjuku Square Tower
Japan Prime Realty
30-Sep-08
PEIT Ueno 3-chome 1st
TGR Investment
30-Sep-08
PEIT komagata 1st
TGR Investment
30-Sep-08
PEIT Fukushima Jimbacho 1st
TGR Investment
30-Sep-08
Stop Parking Kurihama 1st
TGR Investment
30-Sep-08
Stop Parking Shin-Tokorozawa 1nd
TGR Investment
30-Sep-08
Stop Parking Shin-Tokorozawa 2nd
TGR Investment
30-Sep-08
PEIT Naka-Gofukumachi 1st
TGR Investment

Total floor space（㎡） Appraised caprate（％）

46,971.43

Nomura Real Estate Office Fund

Nomura Real Estate Office Fund

SellerAcquisition Price（Thousands of yen）

Acquisition date

Parking

5.0

4,463.86

4.1

Nomura Real Estate
Development Co.,Ltd.

5,660,000

Land 163.63

Tokorozawa City Apamanshop Leasing Co.,Ltd

Parking

8,300,000

7,660,000

Tokorozawa City Apamanshop Leasing Co.,Ltd

Hakata-ku,Fukuoka City

5.3

Nomura Real Estate
Development Co.,Ltd.

Office8,036.71
Shinjuku-ku
Individual
Office78,796.00
Apamanshop Leasing Co.,Ltd
Taito-ku
ParkingLand 109.72
Apamanshop Leasing Co.,Ltd
Taito-ku
ParkingLand 97.84
Apamanshop
Leasing
Co.,Ltd
Fukushima City
ParkingLand 481.62
Yokosuka City Apamanshop Leasing Co.,Ltd
ParkingLand 206.27
Parking

3.5
1,800,000

Land 104.62
Apamanshop Leasing Co.,Ltd

Land 78.11

4.4
180,000

4.65
98,000Non-indication
87,000Non-indication
83,000Non-indication
57,000Non-indication
50,000Non-indication
48,000Non-indication
28,000Non-indication

TOKYU LAND CORPORATION
Oct 2008 Monthly report（15-Oct-08） 5
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Users are advised to exercise discretion in evaluating the accuracy of the information provided in this survey when using it.
Copyright (C) 2008 TOKYU LAND CORPORATION. All rights reserved.

Ⅳ．Sales Trends
Properties sold in Sep 2008:5,Total sales value:40.29 billion yen.
Scheduled properties for sales announced in Sep are as follows.
【List of properties scheduled for sales】

Pr ope r ty Nam e

J- R EI Ts

Round-Cross
Shinsaibashi

ORIX JREIT

Moto-Azabu Hills

MORI HILLSREITNew City Residence New City
Residence
Yokohama EastNO I
A： NOIB：
c aprate
du rin g
A- C
Total floor space
Ac qu isitio n
du rin g
Adre ssc qu isitio n dat Ac qu isitio n (T(Thousands（㎡）
P ric e (Th o u s ac qu isitio
h o u san ds o fof yen）
an ds o f ye n )n
ye n )
（A/B)
C:NOI
NO I
c aprate
D:S alec aprate
Use
Bu ye rS e ll datedu rin g
P ric e (Th o u s du rin g
D/ B
se llin g(Th o u s an ds o f ye n ) se llin g
an ds o f ye n )（C/D)
Chuo-ku,Osaka City
23,483.28 1-Mar-05
557,000 13,600,000 4 .1 %900,000
Shinsaibashi
Office,Shop,Parking
25-Sep-08
728,000 14,500,000 5 .0 %107%
Realty,LLC
Minato-ku
54,006.76 22-Mar-06
8,595
211,628 4 .1 %211,372
Residential

Kanagawa-ku,
Yokohama City
Residential

New City Residence New City
Minami Azabu East Residence
New City Residence New City
ResidenceTogoshiginza

Mori Building
Co.,Ltd.

17,433.76
Non-indication

Minato-ku
Residential

1,641.85
Non-indication

Shinagawa-ku
Residential

3,203.64
Non-indication

5th Fiscal
Period(Jan.2009)

8,537

423,000

2 .0 %

200%

15-Dec-04

376,449

6,753,000

5 .6 %-913,000

26-Sep-08

380,037
59,73763,22532,727
115,269

5,840,000
1,260,000
1,150,000
1,960,000
1,800,000

6 .5 %
4 .7 %
5 .5 %
1 .7 %
6 .4 %

86%-110,000
91%-160,00092%

26-Dec-05
26-Sep-08
13-Dec-06
26-Sep-08

TOKYU LAND CORPORATION
Oct 2008 Monthly report（15-Oct-08） 6
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【Survey Overview】
１

About the survey
This survey compiles analyses of the cap rates of actual real estate properties in J–REIT
every quarter.The data in the survey is acquired from “Tokyu Land Corporation J-REIT
System” (TOREIT), a database of the financial information of all J-REIT companies.
The trends of investing units are created by the company based on data from The Association
for Real Estate Securitization (ARES) and Bloomberg.

２

Cap rate index
The following cap rate is created using an index based on simple averaging in this survey.
Operating NOI cap rate = Annual NOI/ end of the term concerned when operating it

３

Annual ＮＯＩ（Net Operating Income)Annual NOI is derived from the combined value of two quarters.
(*excluding Japan Hotel and Resort Inc.)
Annual NOI = current half-yearly NOI + previous half-yearly NOI・ NOI = rental revenue – rental expenses before depreciation
・ NOI = rental profit & loss + depreciation cost
・ NOI sign indicates the NOI for that item（all are actual transaction values）

４

Calculating cap rates（１）J-REIT expected dividend cap rate （Trends of investing units）
Expected dividend per unit/ month-end value of unit
（２）ＮＯＩ Cap Rate・Applicable to transactions which closed their financial year by the end of March 2008 anddisclosed the final accounts by the end of May.
However, only applicable to transactions which have three or more account settlements
after acquisition; transactions with only two account settlements are excluded.
・For transactions carried out under “Additional acquisition” or “Partial sales”, casesthat have no more than two account settlements from the time they are acquired or soldwill also be excluded from the index.
・In order to improve the effectiveness of the data analysis, data which has a cap rate ofless than 3% or more than 13% is also excluded from the index.
（３）Appraised cap rate during acquisition （％） （Acquisition Trends）
・Reduced cap rate derived from the Direct Capitalization of the appraisal report released
during acquisition
・Expected acquired value may be different from appraised value, and the appraised value
may be different from the profit price derived from direct-reduction process

TOKYU LAND CORPORATION
Oct 2008 Monthly report（15-Oct-08） 7
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Users are advised to exercise discretion in evaluating the accuracy of the information provided in this survey when using it.
Copyright (C) 2008 TOKYU LAND CORPORATION. All rights reserved.

（４）NOI cap rate during acquisition, NOI cap rate during sales （Sales Trends）
NOI cap rate during acquisition = (half-yearly converted NOI during acquisition + halfyearly NOI of the period after acquisition) ÷ acquisition priceNOI cap rate during sales = (half-yearly NOI of the period before date of disclosure +half-yearly NOI of two periods before) ÷ sales price（５）Others
・Cap rates of government bonds are the rates at the end of the respective period.
・Information disclosed by corporations differs but the data used here is certified by us
as verifiable and reliable.

５

Continuity of the Index
・Previous indices may be changed whenever an investment company makes additions to orchanges any of the disclosed information.
・Tokyu Land Corporation reserves the right to alter the disclosed information without priornotice. It also reserves the right to suspend or discontinue the provision of information.

６ Points to note
・This survey is not for the purpose of soliciting investment. Users are advised to use
their discretion when making the final decision on whether to invest or not.
・This data is based on the information available at the time of writing and reflects theassessment made on the date of production.
・While our company has adopted thoroughgoing measures when creating the “Tokyu Land
Corporation J-REIT System” (TOREIT) and the contents in this survey, it is however, notresponsible for the accuracy and completeness of the data. The data is based on theinformation available at the time of writing and reflects the assessment made on the dateof production.
・This material is produced by Tokyu Land Corporation and all rights to the contents belong
to the company.
※Survey date is altered following revisions to date of properties below.
・United Urban “Park site IZUMI”

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Oct 2008 Monthly report（15-Oct-08） 8
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