-Monthly Report- December 2014

J-REIT Asset Size

Number of Properties:2,823(Last month2,782)
Total assets(acquisition price):¥12,657.0bn (Last month: ¥12,575.4bn)
Total assets(appraised price):¥12,444.5bn(Last month: ¥12,331.7bn)
Investment corporations: 48 investment corporations (Last month 46 investment corporations)(as of November 30, 2014)

The NOI cap rateremained level.

◆On November 28, the Land Price Research Division of the Land Economy and Construction and Engineering Industry Bureau of the Ministry of Land, Infrastructure, Transport and Tourism published a Trend Report of the Value of Intensively Used Land in Major Cities (Land Value LOOK Report). The report says that in the third quarter of 2014 (from July 1 through October 1), of 150 intensively used districts in major cities, land value rose in 124 districts (compared with 120 districts in the previous report). Districts where land value rose accounted for over 80% of all the districts surveyed. According to the analysis of the report, this trend reflected continued increases in land prices both in commercial and residential districts chiefly due to a strong willingness to invest in real estate against a backdrop of monetary easing, among other factors, and demand for condominiums in convenient locations.
◆Tosei Reit Investment Corporation and Sekisui House Reit, Inc. were listed on the Tokyo Stock Exchange on November 27 and December 3, respectively. As a result, the number of investment corporations newly listed on the Tokyo Stock Exchange in 2014 will likely be 6, the same as last year. The number of listed investment corporations at the end of the year is expected to be 49.

1. Trends of REIT stock prices(November 2014)

◆Trends of Japanese stock market
In the first half of the month, the Japanese stock market rose chiefly due to the Bank of Japan’s announcement of additional monetary easing at the end of October. In the latter half, the stock market plunged after the announcement on November 17 of the real GDP growth rate for the July-September quarter, which was far short of expectations and negative growth for the second consecutive quarter. Subsequently, however, the market rose again, reflecting the announcement of the postponement of a consumption tax hike and increasing expectations of economic policy packages. The market stayed at a high price range towards the end of the month. The Nikkei Stock Average at the end of November was 17,459.85, up 6.37% from the end of October.
◆REIT Index
In the first half of the month, the J-REIT index was pulled down by profit taking following the increase in the stock market after the Bank of Japan’s announcement of additional monetary easing at the end of October. From mid-November, the J-REIT was solid, like the stock market, as selling pressure abated. The impact of the announcement of the real GDP growth rate for the July-September quarter on November 17 was limited, and the J-REIT Index rose for the eight consecutive month. The Tokyo Stock Exchange REIT Index was 3,139.72 (including dividends) at the end of November, up 6.71% from the end of October.

The red number shows a rise,the orange numbers show remaining level, andthe green number shows a decline from the previous month.

Report for December 2014 (December 15, 2014)

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Tokyu Land Corporation
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tlcjreits@tokyu-land.co.jp