marimo Regional Revitalization REIT, Inc.
marimo Regional Revitalization REIT, Inc. (hereinafter, “marimo REIT”) listed on the Tokyo Stock Exchange Real Estate Investment Trust Market as a diversified REIT with a portfolio of residential, retail, hotel and office properties (hereinafter, “diversified mix of income-producing real estate”) on July 29, 2016, thanks to the support of our unitholders. Recently, marimo REIT successfully ended the 4th fiscal period (ended June 2018). This again was thanks to the support of our unitholders and for that we are deeply grateful.
marimo REIT, which aims to establish a structure that serves to create regional societies where nationwide people can live their unique lifestyle pleasantly while having hope for their region’s future and enables anyone to take part in regional revitalization and enjoy the fruits of such revitalization through marimo REIT, commenced management with the acquisition of a diversified mix of income-producing real estate totaling 17 properties amounting to 16,170 million yen on August 1, 2016.
In the 4th fiscal period, marimo REIT conducted a capital increase through public offering, the first since the IPO, and newly acquired 2 residential properties and 5 retail properties (including land with leasehold interest) totaling 7 properties on January 23, 2018. This expanded marimo REIT’s asset size from 16,825 million yen (18 properties) as of the end of the 3rd fiscal period to 24,525 million yen (25 properties) at the end of the 4th fiscal period, realizing steady external growth. As a result, marimo REIT’s portfolio was diversified, leading also to improvement in the stability of revenue base and the liquidity of investment units.
In addition, as for internal growth, marimo REIT worked on raising rent upon tenant replacement, reducing costs switching to LED lighting in common areas, and other efforts to enhance NOI. As a result, marimo REIT managed to post operating revenue of 1,057 million yen, operating income of 472 million yen, ordinary income of 395 million yen and net income of 394 million yen for dividends per unit (including dividends in excess of earnings) of 3,441 yen.
Setting “strengthen Japan from regional areas” as a basic principle, marimo REIT will continue to strive to build a diversified portfolio, centering on regional areas, oriented toward securing both “relatively high investment yield” and “stable earnings” and steady growth of assets under management and thereby enhance unitholder value over the medium to long term.
We look forward to your continued support and encouragement.