(REIT) Financial Report for Fiscal Period Ended January 31, 2022
March 16, 2022 | |||
REIT Securities Issuer: | Star Asia Investment Corporation (SAR) | Stock Exchange Listing: | Tokyo Stock Exchange |
Securities Code: | 3468 | URL: | http://starasia-reit.com/en/ |
Representative: | Atsushi Kato, Executive Director | ||
Asset Management Company: | Star Asia Investment Management Co., Ltd. | ||
Representative: | Atsushi Kato, President and CEO | ||
Contact: | Akiko Kanno, Director and CFO | ||
TEL: 03-5425-1340 |
Scheduled date of commencement of cash distribution payment: | April 18, 2022 | |||||||||||||||
Scheduled date of submission of securities report: | April 27, 2022 | |||||||||||||||
Preparation of supplementary financial results briefing materials: | Yes | |||||||||||||||
Holding of financial results briefing session: | Yes | |||||||||||||||
(Amounts are rounded down to the nearest million yen) | ||||||||||||||||
1. Status of Management and Assets for Fiscal Period Ended January 31, 2022 (from August 1, 2021 to January 31, 2022) | ||||||||||||||||
(1) Management Status | (% figures are the rate of period-on-period increase (decrease)) | |||||||||||||||
Fiscal period | Operating revenue | Operating income | Ordinary income | Net income | ||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | |||||||||
Ended Jan. 2022 | 5,960 | 7.2 | 3,087 | 8.8 | 2,517 | 4.6 | 2,516 | 4.6 | ||||||||
Ended Jul. 2021 | 5,560 | (16.7) | 2,838 | (15.9) | 2,407 | (17.3) | 2,407 | (79.6) | ||||||||
Fiscal period | Net income | Ratio of net income | Ratio of ordinary income | Ratio of ordinary income | ||||||||||||
per unit | to equity | to total assets | to operating revenue | |||||||||||||
yen | % | % | % | |||||||||||||
Ended Jan. 2022 | 1,414 | 2.7 | 1.4 | 42.2 | ||||||||||||
Ended Jul. 2021 | 1,437 | 2.7 | 1.3 | 43.3 | ||||||||||||
(2) Status of Cash Distribution | ||||||||||||||||
Cash distribution | Total | Cash distribution | Total | Ratio of cash | ||||||||||||
per unit | cash distribution | in excess of | cash distribution | Cash distribution | ||||||||||||
Fiscal period | distribution to | |||||||||||||||
(not including cash | (not including cash | earnings | in excess of | payout ratio | ||||||||||||
distribution in excess of | distribution in excess of | net assets | ||||||||||||||
per unit | earnings | |||||||||||||||
earnings) | earnings) | |||||||||||||||
yen | million yen | yen | million yen | % | % | |||||||||||
Ended Jan. 2022 | 1,478 | 2,644 | - | - | 105.1 | 2.8 | ||||||||||
Ended Jul. 2021 | 1,462 | 2,447 | - | - | 101.7 | 2.7 | ||||||||||
(Note 1) Total cash distribution differs from net income due to the reversal of reserve for temporary difference adjustment and other factors.
(Note 2) For the fiscal period ended Jan. 2022, cash distribution payout ratio is calculated by the following formula due to changes in the number of investment units during the period following issuance of new investment units during the period:
Total cash distribution (not including cash distribution in excess of earnings) ÷ Net income × 100
(3) Financial Position
Fiscal period | Total assets | Net assets | Equity ratio | Net assets per unit |
million yen | million yen | % | yen | |
Ended Jan. 2022 | 193,316 | 95,753 | 49.5 | 53,511 |
Ended Jul. 2021 | 179,170 | 89,179 | 49.8 | 53,260 |
(4) Status of Cash Flows | ||||
Net cash | Net cash | Net cash | Cash and cash equivalents | |
Fiscal period | provided by (used in) | provided by (used in) | provided by (used in) | |
at end of period | ||||
operating activities | investing activities | financing activities | ||
million yen | million yen | million yen | million yen | |
Ended Jan. 2022 | 3,130 | (13,178) | 11,067 | 11,725 |
Ended Jul. 2021 | 2,672 | (242) | (2,805) | 10,706 |
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2. Management Status Forecast for Fiscal Period Ending July 31, 2022 (from February 1, 2022 to July 31, 2022) and Fiscal Period Ending January 31, 2023 (from August 1, 2022 to January 31, 2023)
(% figures are the rate of period-on-period increase (decrease))
Cash distribution | |||||||||||
per unit | Cash distribution | ||||||||||
Fiscal period | Operating revenue | Operating income | Ordinary income | Net income | (not including | in excess of earnings | |||||
cash distribution | per unit | ||||||||||
in excess of earnings) | |||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | yen | ||
Ending Jul. 2022 | 5,923 | (0.6) | 2,992 | (3.1) | 2,500 | (0.7) | 2,499 | (0.7) | 1,476 | - | |
Ending Jan. 2023 | 5,995 | 1.2 | 3,031 | 1.3 | 2,552 | 2.1 | 2,552 | 2.1 | 1,476 | - | |
(Reference) Forecast net income per unit (Expected net income ÷ expected total number of | investment units issued and |
outstanding at end of period) | |
Fiscal period ending July 31, 2022: | |
Expected total number of investment units issued and outstanding at end of period | 1,789,389 units |
Forecast net income per unit 1,397 yen | |
Fiscal period ending January 31, 2023: | |
Expected total number of investment units issued and outstanding at end of period | 1,789,389 units |
Forecast net income per unit 1,426 yen |
(Note 1) Cash distribution per unit calculated using the expected total number of investment units issued and outstanding at end of period above (total number of investment units issued and outstanding as of the date of this report of 1,789,389 units).
(Note 2) Cash distribution per unit (not including cash distribution in excess of earnings) differs from the forecast net income per unit as it is assumed that the amount of reversal of reserve for temporary difference adjustment, etc. will continuously be allocated to distributions.
- Others
- Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement ① Changes in accounting policies accompanying amendments to accounting standards, etc.: Yes
② Changes in accounting policies other than ① | : No |
③ Changes in accounting estimates | : No |
④ Retrospective restatement | : No |
- Total Number of Investment Units Issued and Outstanding
① Total number of investment units issued and outstanding (including own investment units) at end of period
Fiscal period ended Jan. 31, 2022 | 1,789,389 units | Fiscal period ended Jul. 31, 2021 | 1,674,389 units |
- Number of own investment units at end of period
Fiscal period ended Jan. 31, 2022 | 0 units | Fiscal period ended Jul. 31, 2021 | 0 units |
(Note) For the number of investment units serving as the basis for calculation of net income per unit, please see "Notes on Per Unit Information" on page 23.
- Financial reports are exempt from audits by a certified public accounting or accounting firms.
-
Special Note
The management status outlook and other forward-looking statements contained in this document are based on information that are currently available and certain assumptions that are deemed reasonable by SAR. Accordingly, the actual management status, etc. may differ materially due to various factors. In addition, the forecast figures are the current figures calculated under the assumptions described in "Assumptions Underlying Operating Results Forecasts for Fiscal Period Ending July 31, 2022 and Fiscal Period Ending January 31, 2023" on pages 3-4. Accordingly, the actual operating revenue, operating income, ordinary income, net income, cash distribution per unit (not including cash distribution in excess of earnings) and cash distribution in excess of earnings per unit may vary due to acquisition/disposition of real estate, etc., trends of the real estate market, etc., fluctuations in interest rates, or other changes in the circumstances surrounding SAR, etc. in the future. In addition, the forecast is not a guarantee of the amount of cash distribution.
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Assumptions Underlying Operating Results Forecasts for | ||
Fiscal Period Ending July 31, 2022, and Fiscal Period Ending January 31, 2023 | ||
Item | Assumptions | |
Calculation period | ➢ Fiscal period ending July 31, 2022: February 1, 2022 - July 31, 2022 (181 days) | |
➢ Fiscal period ending January 31, 2023: August 1, 2022 - January 31, 2023 (184 days) | ||
➢ It is assumed that, with regard to the assets held by SAR as of the date of this report (60 real estate trust | ||
beneficiary interests, and 2 mezzanine loan debts (collectively, "Currently Held Assets," with those in the | ||
Assets under | form of real estate trust beneficiary interests being referred to as "Currently Held Assets (Real Estate)," | |
and those in the form of mezzanine loan debt being referred to as "Currently Held Assets | ||
management | ||
(Mezzanine)")), there will be no change in assets under management (new property acquisitions, sales | ||
of the existing properties, etc.) through to the end of the fiscal period ending January 31, 2023. | ||
➢ However, in reality assets under management may change. | ||
➢ Rent revenues from Currently Held Assets (Real Estates) are calculated based on the details stated in the | ||
lease agreements effective as of the date of this report, taking into consideration factors such as market | ||
movements. It is also assumed that there will be no arrears or non-payment of rent by tenants. | ||
Operating revenues | ➢ Interest revenues or dividend revenues from Currently Held Assets (Mezzanine) are calculated based on | |
outlines which define the contents of Currently Held Assets (Mezzanine) and loan agreements or trust | ||
agreements that are effective as of the date of this report. It is also assumed that no interest payments | ||
or dividend payments will be unpaid. | ||
➢ Among expenses related to rent business which are the main operating expenses, expenses other than | ||
depreciation are calculated on the basis of historical performance data, by reflecting variable expense | ||
factors. | ||
➢ Fixed property taxes, city planning taxes, and other public charges are expected to be 452 million yen in | ||
the fiscal period ending July 31, 2022, and to be 452 million yen in the fiscal period ending January 31, | ||
2023. | ||
➢ For expenditures for repair and maintenance of buildings, based on the repair and maintenance plan | ||
prepared by Star Asia Investment Management Co., Ltd, the asset manager of SAR (the "Asset | ||
Operating expenses | Manager"), 207 million yen is expected for the fiscal period ending July 31, 2022, and 207 million yen is | |
expected for the fiscal period ending January 31, 2023. However, the actual expenditures for repair and | ||
maintenance for the fiscal periods could differ significantly from the estimated amounts, as urgent | ||
expenditures due to damage to buildings may arise due to unexpected factors, and because such | ||
expenditure amounts generally tend to vary significantly from year to year, and do not arise regularly. | ||
➢ Depreciation is calculated using the straight-line method including for ancillary costs and is expected to | ||
be 699 million yen for the fiscal period ending July 31, 2022, and 715 million yen for the fiscal period | ||
ending January 31, 2023. | ||
➢ Operating expenses other than rent business related expenses are expected to be 543 million yen in the | ||
fiscal period ending July 31, 2022, and 552 million yen in the fiscal period ending January 31, 2023. | ||
NOI | ➢ Total NOI of the entire portfolio is expected to be 4,211 million yen for the fiscal period ending July 31, | |
2022, and 4,275 million yen for the fiscal period ending January 31, 2023. | ||
(Net Operating | ||
➢ NOI is calculated by using the following calculation method. | ||
Income) | ||
NOI = rent revenue - rent expenses (excluding depreciation) | ||
➢ As issuance cost of new investment units, non-operating expenses are expected to be 6 million yen for | ||
the fiscal period ending July 31, 2022 and 6 million yen for the fiscal period ending January 31, 2023. | ||
Non-operating | ➢ The sum of interest expenses and other financing-related expenses is expected to be 480 million yen in | |
the fiscal period ending July 31, 2022, and 466 million yen in the period ending January 31, 2023. | ||
expenses | ||
➢ The sum of interest expenses on investment corporation bonds and other expenses on investment | ||
corporation bond issuance is expected to be 4 million yen in the fiscal period ending July 31, 2022, and 4 | ||
million yen in the period ending January 31, 2023. | ||
➢ | As of the date of this report, SAR has outstanding debt of 88,640 million yen and outstanding | |
investment corporation bonds of 1,000 million yen. | ||
Debt financing and | ➢ | It is assumed that, among the above borrowings, those with repayment dates falling in the fiscal |
investment | period ending July 31, 2022, and the fiscal period ending January 31, 2023, (15,350 million yen) will be | |
fully refinanced. | ||
corporation bonds | ||
➢ | It is assumed that there will be no change to the existing outstanding debt and outstanding | |
investment corporation bonds through to the end of the fiscal period ending January 31, 2023, other | ||
than those described above. |
- It is assumed that the total number of investment units issued and outstanding will be 1,789,389 units,
Investment units | the number as of the date of this report, and that there will be no change in the number due to issuance |
of new investment units, etc. through to the end of the fiscal period ending January 31, 2023. | |
- 3 - |
Item | Assumptions |
➢ SAR calculates its distribution per unit (excluding distributions in excess of earnings) pursuant to its cash | |
distributions policy as set forth in its Articles of Incorporation. | |
➢ As for the reserve for temporary difference adjustment, SAR plans to continuously reverse 1% or more | |
of the initial reserve in each fiscal period and use it mainly to mitigate any negative impact on | |
distributions caused by temporary decrease in income or incurred expenses and to avoid the occurrence | |
of corporate and other tax expenses as a result of any differences between tax and accounting. | |
Cash distributions | ➢ As to cash distribution for the fiscal period ending July 31, 2022, it is assumed that a total of 2,641 |
per unit | million yen (1,476 yen per unit) will be distributed, which is the amount equivalent to the total of |
(not including | estimated net income for the fiscal period of 2,499 million yen, the expected reversal amount from the |
cash distribution | temporary difference adjustment reserve of 88 million yen and a portion of profit carried forward from |
in excess of earnings) | the previous period of 52 million yen. As to cash distribution for the fiscal period ending January 31, |
2023, it is assumed that a total of 2,641 million yen (1,476 yen per unit) will be distributed, which is the | |
amount equivalent to the total of estimated net income for the fiscal period of 2,552 million yen and the | |
expected reversal amount from the temporary difference adjustment reserve of 88 million yen. | |
➢ The distribution per unit may change due to various factors including changes to the assets under | |
management, changes to rent revenues given movements etc. of tenants, or the occurrence of | |
unexpected repairs. | |
Cash distributions | |
in excess of earnings | ➢ SAR has no plans to make distributions in excess of earnings as of the date of this report. |
per unit | |
➢ SAR assumes that no amendments affecting the above forecast numbers will be made to relevant laws | |
and regulations, tax policies, accounting standards, listing rules, rules of investment trusts associations, | |
Others | etc. |
➢ SAR assumes that there will be no unforeseen material change in general economic conditions or real | |
estate market conditions, etc. | |
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3. | Financial Statements | |||
(1) | Balance Sheet | |||
(Unit: thousand yen) | ||||
11th fiscal period | 12th fiscal period | |||
(As of July 31, 2021) | (As of January 31, 2022) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 3,169,688 | 3,774,975 | ||
Cash and deposits in trust | 7,536,399 | 7,950,192 | ||
Operating accounts receivable | 96,187 | 88,581 | ||
Prepaid expenses | 177,085 | 200,093 | ||
Consumption taxes receivable | 83,497 | 155,777 | ||
Other | 7,506 | 14,763 | ||
Total current assets | 11,070,364 | 12,184,385 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Tools, furniture and fixtures | 114 | 114 | ||
Accumulated depreciation | (42) | (71) | ||
Tools, furniture and fixtures, net | 71 | 42 | ||
Buildings in trust | 49,655,872 | 53,053,772 | ||
Accumulated depreciation | (4,084,344) | (4,755,763) | ||
Buildings in trust, net | 45,571,527 | 48,298,008 | ||
Structures in trust | 20,635 | 20,635 | ||
Accumulated depreciation | (4,393) | (5,115) | ||
Structures in trust, net | 16,242 | 15,520 | ||
Machinery and equipment in trust | 97,214 | 99,519 | ||
Accumulated depreciation | (18,872) | (23,762) | ||
Machinery and equipment in trust, net | 78,341 | 75,756 | ||
Tools, furniture and fixtures in trust | 56,654 | 67,545 | ||
Accumulated depreciation | (20,334) | (24,969) | ||
Tools, furniture and fixtures in trust, net | 36,319 | 42,576 | ||
Land in trust | 117,051,893 | 127,283,507 | ||
Construction in progress in trust | 550 | - | ||
Total property, plant and equipment | 162,754,946 | 175,715,413 | ||
Intangible assets | ||||
Leasehold rights in trust | 4,082,300 | 4,082,300 | ||
Total intangible assets | 4,082,300 | 4,082,300 | ||
Investments and other assets | ||||
Investment securities | 692,234 | 922,220 | ||
Long-term loans receivable | 300,000 | - | ||
Long-term prepaid expenses | 260,510 | 351,116 | ||
Lease and guarantee deposits | 10,459 | 10,379 | ||
Other | - | 3,317 | ||
Total investments and other assets | 1,263,203 | 1,287,033 | ||
Total non-current assets | 168,100,450 | 181,084,747 | ||
Deferred assets | ||||
Investment corporation bond issuance costs | - | 13,603 | ||
Investment unit issuance expenses | - | 34,219 | ||
Total deferred assets | - | 47,823 | ||
Total assets | 179,170,815 | 193,316,956 |
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Star Asia Investment Corporation published this content on 16 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2022 06:17:06 UTC.