In September 2001 NBF became the first Japanese real estate investment corporation to be listed on the J-REIT section of the Tokyo Stock Exchange, and has since then experienced steady growth of its assets, revenues and profits.
At the time NBF commenced operations in May 2001 it had assets of ¥192.1 billion, but assets reached ¥500 billion by October 2005, six months prior to the date for achievement of such goal (i.e. assets in the amount of ¥500 billion (total acquisition price) by March 2006) predicted by NBF at the time its shares were first listed.
NBF's so-called "1st phase", covering its first five years (ten accounting periods), saw the creation of a firm foundation but we have continued to establish a track record of performance (please see the chart below) leading to the 14th period ended in June 2008, thanks to heartfelt support from our shareholders.
NBF's results during the 14th period (January 1 -June 30, 2008) consisted of operating revenues of ¥30,088 million, operating income of ¥14,529, net income of ¥12,222 million and a cash distribution per share of ¥22,549, all of which represent record highs for NBF.
Moreover, as of the end of said period NBF's portfolio included a base of 58 properties owned representing an investment of ¥725.2 billion (based on acquisition price), total rentable area of 750,701 m2 (227,087 tsubo) with an occupancy rate of 97.4% and the total number of tenants standing at 931 as of the end of said period.
NBF also resolved in January 2008 to issue new investment shares thereby procuring new funding in the amount of approximately ¥39.7 billion.
Although it seems that the Japanese economy and personal consumption, as well as results of business performance in general, have been influenced by global financial chaos, inflationary prices of resources and so forth due to sub-prime loan issues since early last year, the real property rental business which is NBF's core business, especially its office rental business mainly in the Tokyo CBDs, remained stable and profitability is improving.
Though difficulties in acquiring properties in the office building resale market still exist, NBF intends to undertake selective investments in excellent properties through maximum utilization of practical acquisition techniques and other know-how accumulated to date. As for the 14th period, NBF was able to acquire six (6) properties (total ¥55.2 billion).
During its second phase, NBF's goal is to achieve "stable growth of cash distributions over a mid-term and long-term basis". Forecasted business results include an expected distribution of ¥21,100 during the 15th period (July 1 – Dec. 31, 2008), and an expected distribution of ¥21,100 during the 16th period (Jan. 1 – June 30, 2009).
NBF believes that it must continue to lead Japan's J-REIT market in terms of both total assets and management structure, and that its mission is to foster pure growth through maximum utilization of the base for expansion it has created to date.
As for the future, NBF expects to maintain its original asset management policy ("to achieve sustainable growth in portfolio value and stable profits on a mid-term and long-term basis") with the goal of maximizing shareholder value.
We are grateful to our shareholders for continuing to guide and support us.
