AEON REIT Investment Corporation
5th Fiscal Period Ended July 2015
Materials for Investor Meeting
September 15, 2015
Securities Code: 3292
http://www.aeon-jreit.co.jp/en/
Asset Manager:
AEON Reit Management Co., Ltd.
Table of Contents
IV. AEON REIT’s Investment Strategy
I. Overview of Operations in 5th Fiscal Period Ended July 31, 2015
1.
Summary of Financial Results for
Period Ended July 31, 2015
2.
5th Fiscal
-----
P. 4
1.
Roadmap for Growth
-----
P. 26
Trends of Major Indicators
-----
P. 5
2.
Basic Philosophy and Basic Policy
-----
P. 27
3.
Portfolio Data (5th Fiscal Period)
-----
P. 6
3.
-----
P. 28
4.
Appraisal Value (based on 23 properties as of
the end of 5th Fiscal Period)
-----
P. 7
A Highly Stable Portfolio Centered on the Aeon
Group’s Large-Scale Retail Properties
Sponsor Supports from the AEON Group to
utilize its collective strength
Major Large-Scale Shopping Centers Developed
by the AEON Group（Including Properties It
Plans to Develop）
Strategic Cash Management and a Stable
Financial Position
-----
P. 29
-----
P. 30
-----
P. 31
-----
P. 32
4.
5.
II. Operation Highlights of 5th Fiscal Period
1.
Operation Highlights (1)
-----
P. 9
2.
Operation Highlights (2)
-----
P. 10
3.
Acquisition of Third Party-Owned Properties
(Sponsor-Operated)
-----
P. 11
4.
Performance of 23 Properties in Portfolio (1)
-----
P. 12
5.
Performance of 23 Properties in Portfolio (2)
-----
P. 13
6.
Performance of 23 Properties in Portfolio (3)
-----
P. 14
7.
Summary of Malaysian Economy
-----
P. 15
8.
Maintaining of Stable Financial Base (1)
-----
P. 16
9.
Maintaining of Stable Financial Base (2)
-----
P. 17
-----
P. 18
-----
P. 19
-----
P. 20
-----
P. 22
-----
P. 23
-----
P. 24
10. Portfolio Map (based on 23 properties as of July
31, 2015)
11. Portfolio List (based on 23 properties as of July
31, 2015)
12. Trend of Investment Unit Price
6.
7.
Framework for Maximizing Unitholder Value
Appendix.
III. Forecasts
1.
2.
3.
Forecasts for 6th Fiscal Period Ending January
31, 2016 and 7th Fiscal Period Ending July 31,
2016
Expansion of Asset Size and Capital Investment
Plan
Large-scale Renewal of AEON MALL Morioka
2
I. Overview of Operations in 5th Fiscal Period Ended July 31, 2015
Summary of Financial Results for 5th Fiscal Period Ended July 31, 2015
January 2015
Period
4th Period
Results
(A)
July 2015 Period
5th Period
Results
(B)
Major Reasons for Difference During 5th Period
(vs. Previous Period)
July 2015 Period
vs.
Previous Period
(B-A)
5th Period
Forecast
(C)
 Mainly
due to revenues from property
acquisition in 5th period
vs.
Forecast
 Increase
(B-C)
in operating revenue
in real estate rent revenue［+1,741］
 Difference
Operating Revenue
(millions
of yen)
7,422
9,164
1,741
9,165
△1
Operating Expenses
(millions
of yen)
4,612
5,658
1,046
5,719
△ 60
(millions
of yen)
4,165
5,168
1,002
5,212
△ 43
(Of Which,
Depreciation)
(millions
of yen)
2,245
2,659
414
2,687
△ 27
Operating Income
(millions
of yen)
2,810
3,505
695
3,445
59
Ordinary Income
(millions
of yen)
2,353
2,978
625
2,918
60
Expenses Related
to Rent Business
 Difference
in operating expenses
 Increase in expenses related to rent
business［+1,002］
• Increase in repairs and maintenance
expenses［+163］
• Taxes and dues［-25］
• Increase in land rent paid［+432］
• Increase in depreciation from capital
expenditures［+414］
Major Reasons for Difference During 5th Period
(vs. Forecast)
 Difference
in operating revenue
 Decrease in real estate rent revenue［-3］
 Increase in other real estate rent revenue
［+1］
 Difference
(millions
of yen)
2,349
2,969
619
2,907
61
Distributions per Unit
(yen)
2,473
2,724
251
2,665
59
Number of Investment
Units Issued
(units)
950,000
1,090,200
140,200
1,090,200
-
Net Income
in operating expenses
in expenses related to rent
business［-43］
•
Increase in repairs and maintenance
expenses［+11］
• Taxes and dues［-26］
• Decrease in depreciation［-27］
• Decrease in commission paid [-6]
• Decrease in investor relations expenses［13］
 Decrease
4
Trends of Major Indicators
Asset size (based on acquisition price)
資産規模 （取得価額ベース） （億円）
(billions of yen)
Aggregate market value at end of period
(billions of yen)
NOI from leasing activities (millions of yen)
6,655
194.3
158.3
158.9
158.9
125.6
5,488
162.4
153.1
5,502
128.4
2,445
Jan 2014
July 2014
Jan 2015
July 2015
Period
Period
Period
Period
(2nd Period) (3rd Period) (4th Period) (5th Period)
Distributions per unit
2,461
Jan 2014
July 2014
Period
Period
(2nd Period) (3rd Period)
Jan 2015
Period
(4th Period)
2,724
2,710
Jan 2014
July 2014
Period
Period
(2nd Period) (3rd Period)
(Note)
NAV per unit
1口当たりNAV
（円） （注）
(yen)
2,473
July 2015
Period
(5th Period)
2,530
Jan 2015
Period
(4th Period)
July 2015
Period
(5th Period)
(yen)
110,457
112,635
115,940
Jan 2014 Period
(2nd Period)
July 2014 Period
(3rd Period)
Jan 2015 Period
(4th Period)
122,059
686
Jan 2014 Period July 2014 Period Jan 2015 Period July 2015 Period Jan 2016 Period July 2016 Period
(2nd Period)
(3rd Period)
(4th Period)
(5th Period)
(6th Period
(7th Period
Forecast)
Forecast)
July 2015 Period
(5th Period)
Note: NAV (Net asset value) per unit = (Total unitholders’ capital at end of period + Unrealized profit or loss of the whole portfolio at end of period) / Number of total investment units issued at end of period
5
Portfolio Data (5th Fiscal Period)
Portfolio Highlights
Total acquisition price 2
Portfolio properties
23
¥194.3bn
Average building age 1
11.1
Book value at end of period
¥189.6bn
Average remaining lease term 3
years
18.5
Properties with master lease
contracts
100%
years
Appraisal value 4
¥206.3bn
(+¥0.7bn vs. previous period)
Unrealized profit
(Appraisal value – book value at end of period)
+¥16.6bn
(+¥2.8bn vs. previous period)
Distribution of Portfolio
SRSC 14.4%
RSC 85.6%
Property
type
Hokkaido and Tohoku
12.1%
Kanto
31.7%
Tokai, Hokuriku and Chubu 10.3%
Region
Kinki
14.8%
Chugoku and Shikoku
17.7%
Kyushu
Malaysia
13.0%
0.3%
Investment
11.0%
AEON MALL KYOTO
10.9%
AEON Lake Town mori
9.2%
AEON MALL Kurashiki
AEON MALL Mitouchihara 8.5%
7.2%
AEON MALL Kumamoto
5.8%
AEON MALL Nogata
5.3%
AEON Sagamihara SC
5.0%
AEON MALL Suzuka
4.5%
AEON MALL Ayagawa
4.0%
AEON MALL Hiezu
28.6%
Others
Notes:
1. Calculated as the weighted average age of the building based on the acquisition price as of Juy 31, 2015
2. The acquisition price is the amount (the sale and purchase price, etc., shown on the sale and purchase agreement, etc.) excluding expenses incurred on the acquisition of each property (commission, taxes and dues, etc.).
3. Remaining lease term as of July 31, 2015
4. Appraisal value as of July 31, 2015
6
Appraisal Value (based on 23 properties as of the end of 5th Fiscal Period)
Property
number
Property name
Appraisal agency
Acquisition price
(Millions of yen)
Capitalization Rate based on direct capitalization
method (%)
Appraisal value (Millions of yen) (Note1)
4th Period (note1)
5th Period
Difference
4th Period (note1)
5th Period
Difference
SRSC-1
AEON LakeTown mori (Note2)
The Tanizawa Sōgō Appraisal Co., Ltd.
21,190
23,000
23,000
0
5.0
5.0
0.0
SRSC-2
AEON LakeTown kaze (Note2)
The Tanizawa Sōgō Appraisal Co., Ltd.
6,730
7,290
7,660
370
5.4
5.4
0.0
RSC-1
AEON MALL Morioka
Japan Real Estate Institute
5,340
5,590
5,590
0
6.9
6.9
0.0
RSC-2
AEON MALL Ishinomaki
Japan Real Estate Institute
6,680
7,020
7,020
0
6.3
6.3
0.0
RSC-3
AEON MALL Mitouchihara
Japan Real Estate Institute
16,460
17,300
17,300
0
6.3
6.3
0.0
AEON MALL Mitouchihara (Land)
Japan Real Estate Institute
105
112
112
0
-
-
-
RSC-4
AEON MALL Ota
Japan Real Estate Institute
6,860
7,820
7,820
0
6.6
6.6
0.0
RSC-5
AEON Sagamihara Shopping Center
Japan Real Estate Institute
10,220
10,300
10,500
200
5.5
5.4
▲ 0.1
RSC-6
AEON MALL Ogaki
Japan Real Estate Institute
4,950
5,210
5,160
▲ 50
6.8
6.9
0.1
RSC-7
AEON MALL Suzuka
Japan Real Estate Institute
9,660
10,100
10,100
0
6.3
6.3
0.0
RSC-8
AEON MALL Meiwa
The Tanizawa Sōgō Appraisal Co., Ltd.
3,290
3,610
3,620
10
6.7
6.7
0.0
RSC-9
AEON MALL Kasai-Hojo
Japan Real Estate Institute
7,230
7,610
7,610
0
6.9
6.9
0.0
RSC-10
AEON MALL Hiezu
Japan Real Estate Institute
7,780
8,180
8,320
140
6.9
6.9
0.0
RSC-11
AEON MALL Kurashiki
Japan Real Estate Institute
17,890
18,700
18,700
0
6.2
6.2
0.0
RSC-12
AEON MALL Ayagawa
Japan Real Estate Institute
8,740
9,190
9,190
0
6.5
6.5
0.0
RSC-13
AEON MALL Nogata
Japan Real Estate Institute
11,250
12,800
12,700
▲ 100
6.4
6.5
0.1
RSC-14
AEON MALL Kumamoto
Japan Real Estate Institute
14,060
14,800
14,800
0
6.2
6.2
0.0
RSC-15
AEON MALL KYOTO
Japan Real Estate Institute
21,470
21,700
21,800
100
5.0
5.0
0.0
RSC-16
AEON MALL Sapporo-Hiraoka
The Tanizawa Sōgō Appraisal Co., Ltd.
5,900
6,210
6,230
20
6.3
6.3
0.0
RSC-17
AEON MALL Kushiro-Showa
The Tanizawa Sōgō Appraisal Co., Ltd.
1,780
1,880
1,900
20
6.9
6.9
0.0
RSC-18
AEON MALL Rifu
The Tanizawa Sōgō Appraisal Co., Ltd.
2,560
2,710
2,720
10
6.5
6.5
0.0
RSC-19
AEON MALL Yamagata-Minami
The Tanizawa Sōgō Appraisal Co., Ltd.
1,350
1,430
1,440
10
6.7
6.7
0.0
RSC-20
AEON MALL Yokkaichi-Kita
The Tanizawa Sōgō Appraisal Co., Ltd.
2,210
2,340
2,370
30
6.4
6.4
0.0
658
(20mil RM)
651
(20mil RM)
649
(20mil RM)
▲1
-
-
-
194,363
205,553
206,311
759
-
-
-
M-1
AEON Taman Universiti Shopping Centre
Total
(Note3)
Japan Real Estate Institute
(Note1) Appraisal value represents the appraisal value as of the valuation date of January 31, 2015 for 4th period and July 31, 2015 for 5th period.
The appraisal values and capitalization rate based on direct capitalization method for AEON MALL Mitouchihara(Land) and properties whose property numbers are RSC-15 to RSC-20 are as of the acquisition date.
(Note2) For AEON LakeTown mori and AEON LakeTown kaze, their appraisal values, price based on direct capitalization method, price based on DCF method, and NOI describe the Investment Corporation’s pro-rata portion of the quasi-co-ownership interest (jun kyōyūmochibun) in the beneficiary rights of real estate in trust (40% for each property).
(Note3) Pursuant to the local appraisal methodology, we entrusted the evaluation of the appraisal value of the property to Japan Real Estate Institute. Appraisal value represents the amount equivalent to the Investment Corporation’s pro-rata portion of the rights (18.18%)
similar to the co-ownership right (kyōyū-mochibun) of the trust property pertaining to the trust of the beneficiary rights of real estate in trust, and is based on the appraisal value as indicated on the appraisal report as of the valuation date of January 31, 2015 for 4th
period and July 31, 2015 for 5th period. In addition, the amount in Malaysian Ringgit was converted to Japanese yen based on the exchange rate as of the end of the fi scal period (January 30, 2015; 1 RM = ¥32.57 and July 31, 2015: 1RM=¥32.49; rounded down to the
nearest 100th).
7
II. Operation Highlights of 5th Fiscal Period
Operation Highlights （1）
Shopping Center Renewal
AEON Lake Town kaze
AEON MALL Hiezu
 Implementing large-scale renewal in Phase1 (autumn in 2014 to April 24, 2015) and
in Phase 2 (autumn in 2015)
 Implementing large-scale renewal with rezoning of the mall
 A total of 155 stores including 96 newly opened stores, 26 relocated stores, and 33
renovated stores were renewed in Lake Town kaze in Phase1. 183 stores including
85 newly opened stores, 42 relocated stores, and 56 renovated stores were renewed
in Lake Town mori.
Effect of Revitalization
Time of
implementation of
revitalization
Description of revitalization work
Amount of
Revitalization
(millions of yen)
Increase in rent
（annualized）
(millions of yen)
Effect of
revitalization (note)
AEON MALL Nogata
January 2014
・Rainwater/wastewater counter
measures in underground parking garage
109
812
7.4％
AEON Sagamihara Shopping
Center
October 2014
・Re-covering floor and renovation of rest
rooms
20
131
6.3％
・Installation of LED lights
53
357
6.7％
AEON MALL Kumamoto
November 2014
AEON Lake Town kaze
April 2015
・Large-scale renewal
312
2,126
6.8％
March 2015
・Large-scale renewal
105
804
7.7％
AEON MALL Hiezu
Note: Effect of revitalization = Increase in rent（annualized）/ Amount of revitalization
9
Operation Highlights （2）
External Growth
Taking Inbound Tourism Consumption
AEON MALL Mitouchihara (additional acquisition of land)
Acquisition price
(millions of yen)
AEON MALL KYOTO
AEON MALL Hiezu
105
112
（March 1, 2015）
Appraisal value
（millions of yen ）
April 28, 2015
Acquisition date
Location
1-198, Uchihara, Mito-shi, Ibaraki
Site area
1,999.83㎡
Number of tourists in Kyoto city and tourist consumption per
person

Mito city, Ibaraki Pref.
Seller
 Acquiring land adjacent to AEON MALL Mitouchihara ,

which is an asset already held by AEON REIT from Mito City,
Ibaraki Prefecture by general competitive bidding

Acquiring properties through follow-on offering in February
2015
Property name
Location
AEON MALL KYOTO
Kyoto City,
Kyoto Pref.
Acquisition price
(billions of yen)
Appraisal value
21.4
21.7
Effort for IR Activities for Individual Investors
Holding AEON group IR seminar in AEON Lake Town kaze
AEON MALL
Sapporo-Hiraoka
Sapporo City,
Hokkaido
5.9
6.2
AEON MALL
Kushiro-Showa
Kushiro City,
Hokkaido
1.7
1.8
AEON MALL Rifu
Miyagi County,
Miyagi Pref.
2.5
2.7
AEON MALL
Yamagata-Minami
Yamagata City,
Yamagata Pref.
1.3
1.4
AEON MALL
Yokkaichiita
Yokkaichi City,
Mie Pref.
2.2
2.3
35.2
36.2
Total
“Quantum of the Seas”, one of the world
largest cruise passenger boat with 4,700
Chinese tourists stopped at Sakai-minato
on July 2.
Approximately 100 buses stopped at
AEON MALL Hiezu.
Tourists bought tons of cosmetics and
groceries in AEON MALL Hiezu.
・
Holding AEON group IR
seminar at AEON Hall in
AEON Lake Town kaze,
which is an asset already
held by AEON REIT, on
July 20.
・Approximately 130
people participated in the
seminar.
Overview of IR activities for individual
investors
5th period（February 2015 to July 2015）
A total of 780 people
participated in our IR seminars.
AEON REIT IR seminars arranged by
securities companies （Tokyo, Saitama,
Aichi, Kyoto, Kumamoto, Gifu ）
11 seminars were held.
10
Acquisition of Third Party-Owned Properties (Sponsor-Operated)

Aggressively acquire third-party-owned properties, in addition to the sponsor-owned properties.
Consider acquisition of external properties which are not operated by our Sponsor, by utilizing the Sponsor and the Asset Manager’s
own channel.

Operation
Changes in Portfolio
Seller
Our Portfolio as of July 2015
Third-Party-Owned Properties
Sponsor-Operated Properties
Sponsor-Owned Properties
SRSC
AEON Lake Town mori
AEON MALL
RSC
Morioka
RSC
RSC
AEON
Sagamihara SC
AEON MALL
Meiwa
AEON MALL
RSC
Kurashiki
AEON MALL
RSC
KYOTO
RSC
RSC
RSC
AEON MALL
Ota
AEON MALL
Kushiro-Showa
AEON MALL
SRSC AEON
AEON MALL
RSC
Ishinomaki
AEON MALL
RSC
Mitouchihara
AEON MALL
Ogaki
RSC
RSC
AEON MALL
Kasai-Hojo
RSC
RSC
5th fiscal period
（End of July
2015）
Number of
properties
17
properties
23
properties
Total acquisition
price
158.9
billion yen
194.3
billion yen
Average NOI yield
7.0%
6.9%
Average NOI yield
after depreciation
4.1%
4.1%
Average remaining
lease term
18.8
years
18.5
years
Average building
age
11.0
years
11.1
years
1.70
million ㎡
2.13
million ㎡
100%
100%
Lake Town kaze
RSC
AEON MALL
RSC
Ayagawa
4th fiscal period
（End of January
2015）
AEON MALL
Suzuka
AEON MALL
Hiezu
AEON MALL
RSC
Kumamoto
AEON Taman Universiti
Shopping Centre
RSC
AEON MALL
Nogata
RSC
RSC
AEON MALL
Rifu
RSC
AEON MALL
Sapporo-Hiraoka
AEON MALL
Yamagata-Minami
Yokkaichi-Kita
Total leasable area
Properties with
master lease
contracts
11
Performance of 23 Properties in Portfolio (1)
Slight increase in sales of end tenants and High occupancy rate in actual end-tenant
since fiscal year of 2011
YoY Sales Comparison 1 of End Tenants in 23-property Portfolio
120%
110%
114.0%
100%
98.2%
98.9%
98.0%
100.8%
102.9% 102.0%
99.4%
103.1%
97.6%
97.9%
90%
97.2% 97.2%
80%
Mar–May
2012
Jun–Aug
2012
Sep–Nov Dec 2012– Mar–May
2012
Feb 2013
2013
Jun–Aug
2013
Sep–Nov Dec 2013– Mar–May
2013
Feb 2014
2014
Jun–Aug
2014
Sep–Nov Dec 2014– Mar–May
2014
Feb 2015
2015
Actual End-Tenant Occupancy Rate 2 in 23-property Portfolio
100%
99%
99.6%
99.7%
99.7%
99.8%
99.8%
99.5%
99.7%
99.7%
Nov 2013
Feb 2014
99.7%
99.8%
99.6%
99.7%
99.5%
98%
97%
96%
95%
May 2012
Aug 2012
Nov 2012
Feb 2013
May 2013
Aug 2013
May 2014
Aug 2014
Nov 2014
Feb 2015
May 2015
Notes:
1. The total amount of sales of end tenants of the 23 portfolio properties for the four periods of March–May, June–August, September–November and December–February each year as a percentage of sales for the same
periods of the previous year
2. The percentage of total leased area in the 23 portfolio properties that is actually occupied by end tenants (including area in which end tenants have committed to opening stores)
3. Year-on-year sales comparisons and the actual occupancy rates shown above are data based on interviews of master lease companies. The percentage of properties with master lease contracts is 100%.
4. Year-on-year sales comparisons and the actual occupancy rates shown above have been rounded to the nearest tenth of a percent.
12
Performance of 23 Properties in Portfolio (2)
Rent Revenue at Master Lease Companies1 of 23 Properties in Portfolio
Rent revenue (billions of yen)
(Billions of yen)
20
113.6%
18
120%
103.0%
99.4%
102.7%
107.4%
108.0%108.4%
105.6%
16
14
13.9
12.7
12.7
Indexed YoY comparison
14.7
13.6
13.7
13.4
103.8%
14.1
100.5% 100.6% 100.2%
14.7
13.8
13.5
100.2%
100%
14.2
80%
12.4
12
10
60%
8
40%
6
4
20%
2
0
0%
Mar–May
2012
Jun–Aug
2012
Sep–Nov Dec 2012– Mar–May
2012
Feb 2013
2013
Jun–Aug
2013
Sep–Nov Dec 2013– Mar–May
2013
Feb 2014
2014
Jun–Aug
2014
Sep–Nov Dec 2014– Mar–May
2014
Feb 2015
2015
Mar. 2012–Feb. 2013
Mar. 2013–Feb. 2014
Mar. 2014–Feb. 2015
(12-month period) ¥51.7 billion
(12-month period) ¥55.5 billion
(12-month period) ¥56.2 billion
(YoY) 104.4%
(YoY) 107.3%
(YoY) 101.3%
Notes:
1.Revenue such as rent income and income incidental thereto received by the master lease company from end tenants
2.The rent revenue figures above are data based on interviews of master lease companies.
3.The indexed YoY comparison figures above have been rounded to the nearest tenth of a percent.
4.Rent revenue from AEON Taman Universiti Shopping Centre is converted to Japanese yen based on the exchange rate as of the end of January 2015 (1 RM = ¥32.57; rounded down
to the nearest hundredth).
13
Performance of 23 Properties in Portfolio (3)
Distribution of YoY Indexed Sales Growth for six months of End Tenants by Property 1
Sales Trends of Individual Properties for December 2014 – May 2015
12
Average of 23
Properties in ARI
portfolio
97.2%
5
4
1
1
0
Year-on-year
sales index
<90%
90%–95%
95%–100%
100%–105%
105%–110%
≥110%
% of total
4.3%
17.4%
52.2%
21.7%
4.3%
0.0%
Notes:
1. Sales of each property for June 2014–Nov. 2014 are expressed as a percentage of sales for the same period a year earlier (June 2013–Nov. 2013).
2. The year-on-year sales index above presents data based on interviews of master lease companies.
3. The figures in the year-on-year sales index above have been rounded to the nearest tenth of a percent. As a result, the total amount may not always total 100.0%.
Percentage of properties with
sales index of 100% or higher: 26.1%
(Reference) Consumer Confidence Index (Households of two or more persons, seasonally adjusted series)
55.0
50.0
July 2015
40.3
45.0
40.0
35.0
30.0
25.0
20.0
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
Feb
Dec
Oct
Aug
Jun
Apr
CY 2004
CY 2005
CY 2006
CY 2007
CY 2008
CY 2009
CY 2010
CY 2011
CY 2012
CY 2013
CY 2014
Source: “Consumer Confidence Survey” by Department of Business Statistics, Economic and Social Research Institute, Cabinet Office of Japan
Note:
Changed to the postal survey method starting with the survey for April 2013. Until the survey for March 2013, surveys were carried out by the direct-visit and self-completion questionnaires method
(with telephone surveys at certain times).
CY 2015
14
Summary of Malaysian Economy
 GDP growth rate remain at a high level and CPI remains stable.
 Introduction of GST in April 2015 affects retail market in Malaysia.
 The decline in crude oil prices lead to weak Malaysian Ringgit.
Changes in Malaysian population（Unit：million people）
Changes in GDP growth rate in Malaysia
7.4%
26.5
26.8
27.1
27.6
28.1
28.6
29.1
29.5
29.9
30.3
5.6%
6.3%
5.0%
5.6%
4.8%
6.0%
5.2%
4.7%
-1.5%
2006 2007 2008 2009 2010 2010 2011 2012 2013 2014
（Source） IMF World Economic Outlook Database, April 2015
Changes in Malaysian Ringgit/Yen(Monthly)（Note）
2006
2007
2008
2009
2010
2010
2011
2012
2013
2014
（Source） IMF World Economic Outlook Database, April 2015
Changes in rate of increase in CPI
rate of increase in CPI【Malaysia】
40
rate of increase in CPI【Japan】
5.4%
35
3.0%
3.6%
30
0.3%
25
20
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
（Source） Reuter
（Note） Number of year 2015 is data uo to August.
2.0% 1.4%
2007
1.7%
3.1%
1.7%
2.1%
2.8%
0.6%
0.0%
-0.3%
2006
3.2%
2008
-1.4%
2009
2010
0.0% 0.3%
-0.7% -0.3%
2010
2011
2012
2013
（Source） IMF World Economic Outlook Database, April 2015
Ministry of Internal Affairs and Communications ：Consumer Price Index
15
2014
Maintainｉｎg of Stable Financial Base(1)
Trend in Major Financial Indicators
Short-term loans
payable
Long-term loans payable
Tenant leasehold and
security deposits
Total debt
2nd Period
3rd Period
4th Period
5th Period
(January 31, 2014)
(July 31, 2014)
(January 31, 2015)
(July 31, 2015)
¥4,000 million
¥- million
¥- million
¥2,000 million
¥63,000 million
¥63,000 million
¥63,000 million
¥73,400 million
¥7,411 million
¥7,411 million
¥7,411 million
¥8,111 million
¥74,411 million
¥70,411 million
¥70,411 million
¥83,512 million
LTV (including leasehold
deposits)
43.4％
41.4％
41.5％
41.0％
LTV (excluding leasehold
deposits)
39.0％
37.1％
37.1％
37.0％
Long-term debt ratio
94.0％
100.0％
100.0％
97.3％
Fixed interest rate ratio
80.6％
85.7％
85.7％
84.5％
5.2 years
5.0 years
4.5 years
4.3 years
0.92％
0.95％
0.95％
0.94％
Average remaining
borrowed period
Average interest rate on
borrowings
16
Maintainｉｎg of Stable Financial Base (2)
Debt Snapshot
Syndicate of lenders arranged by Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation
and Sumitomo Mitsui Trust Bank, Limited
Borrowing amount
Breakdown
Short¥2.0bn
term
¥2.0bn
Maturity
Interest rate
Feb. 27,
2015
Oct 20, 2015
Floating
(base rate 1 +0.25%)
Oct. 20, 2016
Floating
(base rate 1 +0.25%)
Oct. 20, 2020
Effective fixed rate 2
1.17250%
Oct. 20, 2023
Effective fixed rate 2
1.76375%
Oct 20, 2017
Floating
(base rate 1 +0.25%)
Oct 21, 2019
Effective fixed rate 2
0.61910%
¥4.0bn
Oct. 20, 2021
Effective fixed rate 2
0.88915%
¥4.5bn
Oct 21, 2024
Effective fixed rate 2
1.40390%
¥5.0bn
¥0.7bn
¥1.2bn
Feb. 27,
2015
Notes:
1. Refers to the Japanese yen TIBOR released by the Japanese Bankers Association; provided, however, that if there is no
corresponding time period, it refers to the interest rate reasonably set by the agent by the straight-line method.
2. While funds are borrowed at floating rates, the interest rates are fixed in effect by entering into interest rate swap
agreements to hedge interest rate fluctuation risk. The figures are the interest rates calculated after taking into consideration
the effect of interest rate swaps.
Credit Rating
Japan Credit Rating Agency, Ltd. (JCR)
AA－（Stable）
22.0
9.0
2
Effective fixed rate
0.78125%
Nov. 25,
2013
¥22.0bn
¥73.4
bn
27.0
Oct. 22, 2018
¥27.0bn
Longterm
（billions of yen)
Borrowing
Date
¥9.0bn
Distribution of Maturities after the new
debt financing
2.0
0.7
1.2
4.0
5.0
4.5
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mix of Lenders (as of July 31, 2015)
17.0%
15.1%
Sumitomo Mitsui Banking Corporation
12.5%
Sumitomo Mitsui Trust Bank
10.7%
Bank of Tokyo-Mitsubishi UFJ
The Norinchukin Bank
7.8%
Mitsubishi UFJ Trust & Banking Corporation 7.7%
Mizuho Trust & Banking Co.
7.3%
Resona Bank
4.6%
Development Bank of Japan
3.3%
AEON BANK
3.1%
The Hyakugo Bank
3.1%
The Mie Bank
3.1%
The 77 Bank
1.7%
Hiroshima Bank
1.7%
The Chiba Bank
1.3%
Mizuho Bank
17
Portfolio Map
(based on 23 properties as of July 31, 2015)
Hokkaido and Tohoku
Kinki, Chugoku and Shikoku
Currently Held Properties
Prefectures Located on
Domestic Properties
AEON MALL Kasai-Hojo
AEON MALL Hiezu
AEON MALL Morioka
AEON MALL Ishinomaki
AEON MALL Ayagawa
AEON MALL Kurashiki
AEON MALL
Sapporo-Hiraoka
AEON MALL
Kushiro-Showa
AEON MALL
Yamagata-Minami
AEON MALL Rifu
Malaysia
AEON MALL KYOTO
Kanto
Tokai, Hokuriku and Chubu
Kyushu
AEON MALL Suzuka
AEON MALL Ogaki
AEON MALL
Yokkaichi-Kita
AEON MALL Meiwa
AEON Lake Town mori
AEON Lake Town kaze
AEON MALL Mitouchihara
AEON MALL Ota
ＡＥＯＮ Ｔａｍａｎ Ｕｎｉｖｅｒｓｉｔｉ
Ｓｈｏｐｐｉｎｇ Centre
AEON MALL Nogata
AEON MALL Kumamoto
AEON Sagamihara Shopping Center
18
Portfolio List
Property
number
Property name
(based on 23 properties as of July 31, 2015)
Location
Acquistion
date
Leasable
area
Acquisition
price
Portfolio
composition
Book value
at end of period
Appraisal
value 1
(m2)
(Millions of yen)
(%)
Unrealized profit Capitalization
rate 3
(loss) 2
NOI 4
PML 5
(Millions of yen)
(Millions of yen)
(Millions of yen)
AEON LakeTown mori
6
Koshigaya City, Saitama
November 2013
160,387.00
21,190
10.9 %
20,628
23,000
2,371
5.0 %
589
Koshigaya City, Saitama
November 2013
127,183.81
6,730
3.5 %
6,754
7,660
905
5.4 %
217
1.7 %
RSC-1
AEON LakeTown kaze
AEON MALL Morioka
6
Morioka City, Iwate
November 2013
98,968.59
5,340
2.7 %
5,121
5,590
468
6.9 %
222
11.1 %
RSC-2
AEON MALL Ishinomaki
Ishinomaki City, Miyagi
November 2013
60,682.20
6,680
3.4 %
6,459
7,020
560
6.3 %
231
3.9 %
November 2013
159,997.49
16,460
8.5 %
15,828
17,300
1,471
6.3 %
549
0.7 %
105
0.1 %
107
112
4
-
1
-
SRSC-1
SRSC-2
RSC-3
AEON MALL Mitouchihara
AEON MALL Mitouchihara (Land)
Mito City, Ibaraki
April 2015
-
(%)
(Millions of yen)
(%)
2.0 %
RSC-4
AEON MALL Ota
Ota City, Gunma
November 2013
93,165.27
6,860
3.5 %
6,610
7,820
1,209
6.6 %
285
4.8 %
RSC-5
AEON Sagamihara Shopping Center
Sagamihara City, Kanagawa
November 2013
75,056.62
10,220
5.3 %
10,195
10,500
304
5.4 %
328
13.4 %
RSC-6
AEON MALL Ogaki
Ogaki City, Gifu
November 2013
64,246.26
4,950
2.5 %
4,603
5,160
556
6.9 %
179
9.2 %
RSC-7
AEON MALL Suzuka
Suzuka City, Mie
November 2013
125,236.10
9,660
5.0 %
9,419
10,100
680
6.3 %
342
7.5 %
RSC-8
AEON MALL Meiwa
Taki County, Mie
November 2013
44,193.80
3,290
1.7 %
3,245
3,620
374
6.7 %
135
4.6 %
RSC-9
AEON MALL Kasai-Hojo
Kasai City, Hyogo
November 2013
48,229.25
7,230
3.7 %
6,930
7,610
679
6.9 %
263
10.7 %
RSC-10
AEON MALL Hiezu
Saihaku County, Tottori
November 2013
102,045.24
7,780
4.0 %
7,481
8,320
838
6.9 %
289
8.0 %
RSC-11
AEON MALL Kurashiki
Kurashiki City, Okayama
November 2013
157,274.78
17,890
9.2 %
17,372
18,700
1,327
6.2 %
589
0.5 %
RSC-12
AEON MALL Ayagawa
Ayauta County, Kagawa
November 2013
113,149.07
8,740
4.5 %
8,290
9,190
899
6.5 %
307
0.6 %
RSC-13
AEON MALL Nogata
Nogata City, Fukuoka
November 2013
151,969.51
11,250
5.8 %
10,794
12,700
1,905
6.5 %
411
0.1 %
RSC-14
AEON MALL Kumamoto
Kamimashiki County, Kumamoto
November 2013
101,132.38
14,060
7.2 %
13,606
14,800
1,193
6.2 %
468
6.2 %
RSC-15
AEON MALL KYOTO
Kyoto City, Kyoto
February 2015
136,468.45
21,470
11.0 %
21,559
21,800
240
5.0 %
574
13.5 %
RSC-16
AEON MALL Sapporo-Hiraoka
Sapporo City, Hokkaido
February 2015
78,360.81
5,900
3.0 %
5,959
6,230
270
6.3 %
234
3.5 %
RSC-17
AEON MALL Kushiro-Showa
Kushiro City, Hokkaido
February 2015
51,763.05
1,780
0.9 %
1,827
1,900
72
6.9 %
107
7.0 %
RSC-18
AEON MALL Rifu
Miyagi Country, Miyagi
February 2015
66,385.29
2,560
1.3 %
2,582
2,720
137
6.5 %
121
6.9 %
RSC-19
AEON MALL Yamagata-Minami
Yamagata City, Yamagata
February 2015
53,487.94
1,350
0.7 %
1,380
1,440
59
6.7 %
65
6.2 %
RSC-20
AEON MALL Yokkaichi-Kita
Yokkaichi City, Mie
February 2015
41,417.23
2,210
1.1 %
2,235
2,370
134
6.4 %
117
6.0 %
2,110,800.14
193,705
99.7%
188,984
205,662
16,667
-
6,633
-
(48)
[ (1 million) RM ]
-
21
0.8 %
(48)
-
21
-
-
6,655
1.2%
Domestic Subtotal
AEON Taman Universiti Shopping
M-1
Centre 7
Overseas Subtotal
Total
-
Johor, Malaysia
June 2014
22,870.45
658
[ 20 million RM ]
0.3 %
697
[ 21 million RM ]
649
[ 20 million RM ]
-
22,870.45
658
0.3 %
697
649
-
2,133,670.59
194,363
100.0 %
189,681
206,311
16,619
Notes: 1.
2.
3.
4.
5.
The valuation date of the Appraisal value is July 31, 2015.
Unrealized profit (loss) = Appraisal value − Book value at end of period
Capitalization rate using the direct capitalization method.
NOI = Real estate leasing business revenue − Real estate leasing business expenses + Depreciation
Each property undergoes a seismic risk analysis to forecast the loss rate related to damage from the recurrence of an earthquake during a 475 year period. The number for Domestic Subtotal is not an average, but rather the PML value for the whole
domestic portfolio.
6. Acquisition price, Book value at end of period, Appraisal value, Unrealized profit (loss), and NOI describe AEON REIT’s pro-rata portion of the quasi-co-ownership interest (jun kyōyū-mochibun) in the trust beneficiary rights (40% for each property).
7. Acquisition price, Book value at end of period, Appraisal value, Unrealized profit (loss), and NOI describe AEON REIT’s portion of the amount equivalent to the rights (18.18%) similar to the co-ownership interest
(kyōyū-mochibun) of the trust property for which the rights were transferred from AEON CO. (M) BHD., which holds the whole property.
19
Trend of Investment Unit Price
AEON REIT Investment Unit Price and Trading Volume
(Yen)
(Units)
Trading Volume (Right axis)
190,000
50,000
AEON REIT Investment Unit Price (Left axis)
180,000
40,000
170,000
160,000
30,000
150,000
140,000
20,000
130,000
120,000
10,000
110,000
100,000
Nov
2013
0
Dec
2013
Jan
2014
Feb
2014
Mar
2014
Apr
2014
May
2014
Jun
2014
Jul
2014
Aug
2014
Sep
2014
Oct
2014
Nov
2014
Dec
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
Jun
2015
Jul
2015
Aug
2015
Comparison between AEON REIT Investment Unit Price, TSE REIT Index and TOPIX
170
AEON REIT
TSE REIT Index
TOPIX
160
150
140
130
120
110
100
90
80
Nov
2013
Dec
2013
Jan
2014
Feb
2014
Mar
2014
Apr
2014
May
2014
Jun
2014
Jul
2014
Aug
2014
Sep
2014
Oct
2014
Nov
2014
Dec
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
Note: The AEON REIT investment unit price, the TSE REIT Index and the TOPIX are compared with the closing price on the AEON REIT’s listing date set at 100.
May
2015
Jun
2015
Jul
2015
Aug
2015
20
III. Forecasts
Forecasts for 6th Fiscal Period Ending January 31, 2016 and 7th Fiscal Period Ending July 31, 2016*
*based on page 6 of the Assumptions for Forecasts of Performance stated in the Financial Report for the Fiscal Period Ended July 31, 2015
July. 2015
Period
January 2016 Period
Major Reasons for Difference During
6th Period (vs.5th period)
July 2016 Period
5th Period Results
6th Period
Forecasts
vs. 5th Period
7th Period
Forecasts
vs. 6th Period
(A)
(B)
(B-A)
(C)
(C-B)
in operating revenue
 Increase in real estate rent revenue [+225]
 Difference
in operating expenses
in expenses related to rent
business [+131]
• Increase in repairs and maintenance
expenses [+56]
• Increase in land rent paid［+49］
• Increase in depreciation［+21］
• Increase in Administrative service fee
［+52］
 Increase
Operating Revenue
(millions of
yen)
9,164
9,387
223
9,403
15
Operating Expenses
(millions of
yen)
5,658
5,875
216
6,088
212
Expenses Related to
Rent Business
(millions of
yen)
5,168
5,300
131
5,533
233
(Of Which,
Depreciation)
(millions of
yen)
2,659
2,681
21
2,713
31
(millions of
yen)
3,505
3,512
6
3,315
△ 196
Operating Income
 Difference
Major Reasons for Difference During
7th Period (vs.6th period)
 Difference
 Increase
Ordinary Income
(millions of
yen)
2,978
2,965
△ 12
2,771
△ 194
in operating revenue
in real estate rent revenue [+15]
 Difference
in operating expenses
in expenses related to rent
business [+233]
• Decrease in repairs and maintenance
expenses [-63]
• Expense of taxes and dues for acquired
properties in 5th period［+263］
• Increase in depreciation［+31］
• Decrease in Administrative service fee
［-14］
 Increase
(millions of
yen)
2,969
2,957
△ 11
2,763
△ 194
Distributions per Unit
(yen)
2,724
2,710
△ 14
2,530
△ 180
Number of Investment
Units Issued
(units)
1,090,200
1,090,200
-
1,090,200
-
Net Income
Note: The above performance is an estimation determined based on certain assumptions as of September 11, 2015. The actual performance may vary due to changes in the circumstances surrounding
AEON REIT including acquisition or disposition of properties, the trend of real estate market, etc. in the future. Furthermore, this estimation does not guarantee the amount of distributions.
22
Expansion of Asset Size and Capital Investment Plan
Asset Size (based on acquisition price)
(billions of yen)
300.0
158.3
158.9
158.9
Jan 2014 Period
(2nd Period)
July 2014 Period
(3rd Period)
Jan 2015 Period
(4th Period)
194.3
July 2015 Period
(5th Period)
Medium Term
Capital Investment Plan
Repairs and Maintenance Expences
Capital Investment Plan
Capital Expenditures
Depreciation
2,659
2,230
2,681
(millions of yen)
2,713
2,245
2,242
1,111
798
935
26
17
289
196
429
182
346
Jan 2014 Period
(2nd Period)
Actual
July 2014 Period
(3rd Period)
Actual
Jan 2015 Period
(4th Period)
Actual
July 2015 Period
(5th Period)
Actual
Jan 2016 Period
(6th Period)
Scheduled
July 2016 Period
(7th Period)
Scheduled
23
Large-scale renewal of AEON MALL Morioka
 Implementing large-scale renewal in Phase1 (this autumn) and Phase2
(next spring)
 46 stores including newly introducing 18 stores will be renewed in Phase1,
and it opens on September 19, 2015.
 Together with renewal in Phase1, a total of 110 stores will be renewed in
Phase2.
 Implementing renewal of exterior of the SC and restaurants
Renewal of facilities
 The first full renewal of exterior and interior of SC since the opening of
SC in August in 2003
Phase2 renewal
 Renovating multi-story car park(approximately 6,000㎡） and expanding
sales area as specialty store zone
 Implementing renewal in existing mall and planning to renewing
approximately 60 stores
Floor map
24
IV. AEON REIT’s Investment Strategy
Roadmap for Growth
Medium- to Long-Term Asset Scale Targets
By realizing a mutually beneficial relationship with our sponsor, we will aim for
assets of ¥300 billion in the medium term and ¥500 billion in the long term (Note).
At time of listing
Medium Term
Long Term
¥500.0 billion
¥300.0 billion
At time of listing
¥158.3 billion
Key Measures
● External growth using the Aeon Group’s pipeline
● Strategic cash management using internal reserves
● Expansion of overseas investment and diversification of types and regions of properties
● Management of leverage with LTV in the 40–50% range
Note: The figures above are targets made as of the date of these materials and there is a possibility that they may not be realized due to future events or the market environment.
26
Basic Philosophy and Basic Policy
Basic Philosophy
AEON REIT invests primarily in retail and related properties(Note) that are an integral part of the communities in
which they are located. We believe that these properties and facilities form the backbone of the local
communities and their retail business infrastructure.
Our mission is to contribute to the betterment of individual lives and local communities through investment in
retail and related properties. In doing so, we seek to generate stable revenues and achieve the steady growth
of our asset portfolio over the medium to long term.
Note:
Refers to retail properties, logistics facilities and related facilities. Retail properties refer to facilities containing retail businesses and other merchandising businesses, entertainment and amusement facilities and other facilities that
attract customers (including parking lots and equipment and systems for logistics). Logistics facilities refer to warehouses and other storage facilities for distribution and transport of merchandise and other goods.
Basic Policy
A growth strategy based on a mutually beneficial relationship
between AEON REIT and Aeon Group(Note)
We will aim to maximize value for unitholders by building a mutually beneficial relationship between AEON REIT and the Aeon Group.
Note: Refers to the group comprising the holding company AEON Co., Ltd. and its 263 consolidated subsidiaries and 31 equity-method associates (as of February 28, 2014).
27
A Highly Stable Portfolio Centered on the Aeon Group’s Large-Scale Retail Properties
Investment Properties Centered on Large-Scale Retail
Properties and Investment Ratios
Investment percentage 1
Type
Domestic
85%
more
or
Overseas
No more than
15%
Retail properties, etc.
SRSC
(Super regional shopping center) 2
Large-scale
RSC
retail
(Regional shopping center) 3
property
Overseas Investment Targets
80% or more
CSC
(Community shopping center) 4
Investment Areas
Investment Targets
ASEAN region7, China and other
countries/regions with good
medium- to long-term economic
growth prospects
In principle, retail properties that
are leased in their entirety under
master lease contracts to the Aeon
Group, which manages and
operates the properties
Note 7:
Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar
and Cambodia
Rent structure diagram
AEON Group
Other retail
property
NSC
(Neighborhood shopping center) 5
Master
Lease
Contract
No more than 20%
SM
(Supermarket) 6
Logistics facility
No more than 10%
AEON
REIT
AEON
Mall
20 years8
AEON
Retail
Fixed-rate
rent
AEON
Sublease
Contract
Tenants
Sublease
Contract
Tenants
Hokkaido
Notes:
1.Calculated based on acquisition price.
2.Larger commercial area than regional shopping centers. A super regional-type shopping center having a number
of anchor tenants and a shopping mall forming a complex of over 200 specialty stores.
3.A regional-type shopping center having a general merchandise or other similar store as the anchor tenant and a
complex of over 50 specialty stores.
4.A retail property having a general merchandise store, a discount store, a large grocery supermarket or another
similar store as the anchor tenant, and a complex of approximately 20–50 specialty stores.
5.A small-scale retail property serving a small commercial area, having a grocery supermarket or another similar
store as the anchor tenant and a complex of approximately 10–30 specialty stores generally selling household
goods.
6.A grocery supermarket mainly selling high purchase frequency commodities such as food and household goods.
Master
Lease
Contract
AEON
Malaysia
Note 8:
The durations of master lease contracts are 20 years, with the exception of AEON Taman
Universiti Shopping Centre, which utilizes a 10 year master lease contract
28
Sponsor Supports from the AEON Group to utilize its collective strength
Utilizing the Aeon Group’s collective strengths,
we expanded the number of companies with which we concluded support agreements
(pipeline support agreements and shopping center management agreements)
to further strengthen external growth
Pipeline Support Agreement
AEON REIT Investment Corporation
AEON Reit Management Co., Ltd.
Major support terms
Stable growth of our portfolio over the medium to long term
Sponsor support agreement
Pipeline support agreement
Trademark license agreement
Shopping center
management agreement
Memorandum of
understanding on
investments in properties in
Malaysia
Provision of information on properties owned
Grant of preferential negotiating rights on the retail properties operated by the
support companies
Provision of information on the potential sale of properties owned by third parties
Consideration for having a store or other as a tenant in any of AEON REIT’s
properties
Provision of warehousing services (temporary possession of properties to be
acquired)
Pipeline support companies
Sponsor
Shopping center
management support companies
Overseas support company
Advice on investment strategy and property acquisition by the support
companies
Co-ownership (kyōyū or jun kyōyū) of any property with AEON REIT
AEON CO., LTD.
AEON Retail Co., Ltd.
AEON Mall Co., Ltd.
AEON Hokkaido Corporation
AEON KYUSHU CO., LTD.
AEON RYUKYU CO., LTD.
AEON TOWN Co., Ltd.
AEON CO. (M) BHD.
Cooperation to ensure the sufficiency of human resources
Shopping Center Management Agreement
Operational provision from the Aeon Group
Research on individual properties
Advice on and backup services for the management of individual properties
Utilize the Aeon Group’s collective strengths
Activation and redevelopment of individual properties in the medium to long term
29
Major Large-Scale Shopping Centers Developed by the AEON Group
（Including Properties It Plans to Develop）
Major Shopping Centers developed by the AEON Group
Major Shopping Centers currently under development by the AEON Group
AEON MALL Around Asahikawa Station
Chugoku and Shikoku
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
AEON
MALL Tottorikita
Matsue Shopping Center
MALL Okayama
MALL Hiroshima Gion
MALL Hiroshima Fuchu
Town Houfu
MALL Takamatsu
MALL Niihama
MALL Kochi
MALL Imabarishintoshi
Tokai and Hokuriku
Tottori City, Tottori
Matsue City, Shimane
Okayama City, Okayama
Hiroshima City, Hiroshima
Aki County, Hiroshima
Houfu City, Yamaguchi
Takamatsu City, Takamatsu
Niihama City, Ehime
Kochi-City, Kochi
Imabari City, Ehime
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
MALL
MALL
MALL
MALL
MALL
MALL
MALL
MALL
MALL
MALL
Takaoka
Tonami
Kahoku
Kakamigahara
Hamamatsuichino
Odaka
Nagoya Chaya
Fuso
Toin
Tokoname
Takaoka City, Toyama
Tonami City, Toyama
Kahoku City, Ishikawa
Kakamigahara City, Gifu
Hamamatsu City, Shizuoka
Nagoya City, Aichi
Nagoya City, Aichi
Niwa County, Aichi
Inabe County, Mie
Tokoname City, Aichi
Kyushu and Okinawa
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
AEON
MALL Fukuokaito
MALL Yahatahigashi
MALL Fukutsu
MALL Sagayamato
Daito Shopping Center
Yatsushiro Shopping Center
MALL Sankoh
MALL Miyazaki
MALL Kagoshima
MALL Okinawa Rycom
Fukuoka City, Fukuoka
Kitakyushu City, Fukuoka
Fuktsu City, Fukuoka
Saga City, Saga
Sasebo City, Nagasaki
Yatsushiro City, Kumamoto
Nakatsu City, Oita
Miyazaki City, Miyazaki
Kagoshima City, Kagoshima
Nakagami County, Okinawa
Hokkaido and Tohoku
AEON MALL Around Asahikawa Station Asahikawa City, Hokkaido
●AEON MALL Tomakomai
Tomakomai City, Hokkaido
●AEON MALL Shimoda
Kamikita County, Aomori
●AEON MALL Moriokaminami
Morioka City, Iwate
●AEON MALL Natori
Natori City, Miyagi
●AEON MALL Akita
Akita City, Akita
●AEON MALL Tendo
Tendo City, Yamagata
●Shopping Mall Festa
Koriyama City, Fukushima
Kanto and Koushinetsu
AEON MALL Tonami
AEON MALL Okayama
AEON MALL Makuhari New City
AEON MALL Okinawa Rycom
Kinki
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
MALL Kusatsu
MALL Kyoto Katsuragawa
MALL Kyotogojo
MALL Osaka Dome City
Kireuriwari
MALL Dainichi
Kusatsu City, Shiga
Kyoto City・Mukou City, Kyoto
Kyoto City,Kyoto
Osaka City. Osaka
Osaka City, Osaka
Moriguchi City, Osaka
Note：Shown in the chart are created by the Asset Manager based on information provided by AEON CO., LTD. and AEON Mall Co., Ltd.
As of July 2015
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
●AEON
MALL Tsukuba
MALL Shimotsuma
MALL Sanoshintoshi
MALL Takasaki
MALL Urawamisono
MALL Hanyu
MALL Kasukabe
MALL Yono
Iruma
MALL Makuhari New City
MALL Kisarazu
MALL Tamadaira Woods
MALL Hinode
Hadano Shopping Center
MALL Nigataminami
MALL Koufushowa
MALL Sakudaira
●AEON MALL Rinkusennan
●AEON MALL Shijonawate
●AEON
●AEON
●AEON
AEON
MALL
MALL
MALL
MALL
Itamikoya
Kashihara
Wakayama
Sakaiteppoucho
Tsukuba City, Ibaraki
Shimotsuuma City, Ibaraki
Sano City, Tochigi
Takasaki City, Gunma
Saitama City, Saitama
Hanyu City, Saitama
Kasukabe City, Saitama
Saitama City, Saitama
Iruma City, Saitama
Chiba City, Chiba
Kisarazu City, Chiba
Hino City, Tokyo
Nishitama County, Tokyo
Hadano City, Kanagawa
Nigata City, Nigata
Nakakoma County, Yamanashi
Saku City, Nagano
Sennan City, Osaka
Shijonawate City・Neyagawa
City, Osaka
Itami City, Osaka
Kashihara City, Nara
Wakayama City, Wakayama
Sakai City, Osaka
30
Strategic Cash Management and a Stable Financial Position
Strategic Cash Management
 In the large-scale retail properties that we target for investment, the depreciation expense accounts for a large percentage of the property value.
 By deploying internal reserves in an amount equal to the depreciation expense, we plan to increase capital efficiency and stabilize cash flow.
(1) Investment contributing to
an increase in income
(2) Measures aimed at
stabilizing financial
position
(3) Capital strategies that
protect unitholder
interests
a. Appropriation of funds to acquire new properties
b. Investing in revitalization of property to boost
revenue and competitiveness
c. Reduction in the cost of our debt by repayment of
interest-bearing debt
Growth
driven by
efficient
use of
capital
d. Distributions in excess of retained earnings
e. Increased capital efficiency through unit buy-backs
Stable Financial Position
Policies
LTV 1
Maintain leverage with an LTV of 40–50% range
Extension of debt maturities &
fixing of interest rates
Set loan terms according to the status of cash flows based on tenant lease terms and content
Mix of lenders
Achieve appropriate diversification of different lender financial institutions, primarily megabanks
Note 1: LTV = Total interest-bearing debt plus tenant leasehold and security deposits (including tenant leasehold and security deposits in trust) / Total assets that AEON REIT holds × 100
31
Framework for Maximizing Unitholder Value
Transparent Decision-Making Process
Dropped or instructions
given to modify content
Drafting of
proposal by the
responsible
department
Approval by the
Compliance Officer
Disapproved
Returned
Deliberation and
resolution by the
Investment
Committee*
Deliberation and
resolution by the
Compliance
Committee*
Approval by
Investment
Corporation
Report to the Asset
Manager’s board
of directors
Dropped or instructions
given to modify content
* An outside expert must attend the meeting and
agree in order for the resolution to pass.
Further Aligning the Interests of Unitholders
and the Aeon Group
• Ownership of investment units by Aeon Group
Ownership interest
19.77% (as of July 31, 2015)
• Co-ownership of properties with Aeon Group
Co-owned properties
3 (as of July 31, 2015)
•
Management Fee
Structure
Management fee
Calculation Method
Manage- Total assets × 0.3% (maximum rate)× {No. of operating days
ment fee I / 365}
Manage- DPU before deducting Management fee II × NOI1× 0.001%
ment fee II (maximum rate)
Acquisition fee
Acquisition price × 0.5% (maximum rate)
[Related party transactions: Acquisition price ×
0.25%(maximum rate) ]
We introduced a program on May 1, 2014, that enables the acquisition of AEON
REIT’s investment units, using the cumulative investment unit purchase program
through securities firms, for directors and employees of AEON REIT and the Asset
Manager.
Disposition fee
Disposition price × 0.5% (maximum rate)
[Related party transactions: no disposition fee paid]
The program will help to further raise awareness towards enhancing the value of
AEON REIT’s investment unit price and improving business performance, and
provide greater financial motivation in line with the interests of the unitholders.
Notes:
1. NOI refers to total real estate leasing revenue for the relevant fiscal period less real estate leasing
expenses (excluding depreciation and loss on retirement of non-current assets).
2. Above fee structure is as of September 15, 2015.
Introduction of Cumulative Investment Unit Purchase Program
•
Introduction of an Asset Management Fee Structure
Linked to Distributions per Unit
32
Appendix.
•
•
•
•
Balance Sheet for 5th Fiscal Period (as of July 31, 2015)
Statement of Income for 4th Fiscal Period (ended July 31, 2015)
Unitholder Information
Aeon Group Profile
Balance Sheet for 5th Fiscal Period (as of July 31, 2015) (Assets)
Assets
I. Current assets
4th Period
5th Period
As of January 31, 2015
As of July 31, 2015
Difference
Amount
Percentage
Amount
Percentage
Amount
(thousands of yen)
(%)
(thousands of yen)
(%)
(thousands of yen)
13,368,514
7.9%
13,054,213
6.4%
Cash and deposits
9,663,330
5.7%
6,795,562
3.3%
Cash and deposits in trust
3,386,152
2.0%
4,668,783
2.3%
317,875
0.2%
318,094
0.2%
26
0.0%
-
-
139
0.0%
493
0.0%
-
-
1,270,899
0.6%
989
0.0%
381
0.0%
156,254,743
92.1%
190,604,782
93.5%
137,334,542
80.9%
166,553,598
81.7%
-
-
107,708
0.1%
85,504,384
50.4%
102,509,551
50.3%
560,228
0.3%
506,244
0.2%
Land in trust
51,269,929
30.2%
63,430,093
31.1%
Intangible assets
18,045,526
10.6%
23,137,757
11.4%
Leasehold rights in trust
18,045,526
10.6%
23,137,757
11.4%
Investments and other assets
874,674
0.5%
913,427
0.4%
Long-term prepaid expenses
864,674
0.5%
903,427
0.4%
10,000
0.0%
10,000
0.0%
123,517
0.1%
136,231
0.1%
123,517
0.1%
136,231
0.1%
169,746,775
100.0%
203,795,228
100.0%
Prepaid expenses
Deferred tax assets
Income taxes receivable
Consumption taxes receivable
Other
II. Non-current assets
Property and equipment
Land
Buildings in trust
Structures in trust
Lease and guarantee deposits
III. Deferred assets
Investment unit issuance expenses
Total assets
(314,301)
vs.
Previous Period
(%)
(2.4)%
34,350,039
22.0%
12,714
10.3%
34,048,453
20.1%
34
Balance Sheet for 5th Fiscal Period (as of July 31, 2015)
(Liabilities and Net Assets)
Liabilities
I. Current liabilities
4th Period
5th Period
As of January 31, 2015
As of July 31, 2015
Difference
Amount
Percentage
Amount
Percentage
Amount
(thousands of yen)
(%)
(thousands of yen)
(%)
(thousands of yen)
vs.
Previous Period
(%)
634,066
0.4%
2,865,975
1.4%
264,248
0.2%
644,234
0.3%
Short-term loans payable
-
-
2,000,000
1.0%
Accounts payable - other
134,039
0.1%
187,737
0.1%
19,589
0.0%
21,472
0.0%
682
0.0%
605
0.0%
205,608
0.1%
-
-
9,899
0.0%
11,925
0.0%
70,411,389
41.5%
81,512,139
40.0%
63,000,000
37.1%
73,400,000
36.0%
-
-
2,628
0.0%
7,411,389
4.4%
8,109,511
4.0%
71,045,456
41.9%
84,378,114
41.4%
13,332,658
18.8%
98,701,319
58.1%
119,417,113
58.6%
20,715,794
21.0%
96,351,350
56.8%
116,447,057
57.1%
2,349,969
1.4%
2,970,056
1.5%
2,349,969
1.4%
2,970,056
1.5%
98,701,319
58.1%
119,417,113
58.6%
20,715,794
21.0%
169,746,775
100.0%
203,795,228
100.0%
34,048,453
20.1%
Operating accounts payable
Accrued expenses
Income taxes payable
Accrued consumption taxes
Other
II. Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total liabilities
2,231,909
352.0%
11,100,750
-
Net Assets
I. Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (unappropriated loss)
Total net assets
Total liabilities and net assets
35
Statement of Income for 5th Fiscal Period (ended July 31, 2015)
4th Period
5th Period
From August 1, 2014
to January 31, 2015
From February 1, 2015
to July 31, 2015
Difference
Amount
Percentage
Amount
Percentage
Amount
(thousands of yen)
(%)
(thousands of yen)
(%)
(thousands of yen)
Operating revenue
7,422,632
100.0%
9,164,250
100.0%
Rent revenue - real estate
7,422,632
100.0%
9,163,638
100.0%
611
0.0%
Gain on sales of real estate properties
-
-
vs.
Previous Period
(%)
1,741,618
23.5%
1,046,468
22.7%
Operating expenses
4,612,522
62.1%
5,658,990
61.8%
Expenses related to rent business
4,165,832
56.1%
5,168,792
56.4%
330,683
4.5%
360,189
3.9%
6,841
0.1%
10,370
0.1%
Administrative service fees
28,572
0.4%
34,440
0.4%
Directors’ compensations
3,600
0.0%
3,600
0.0%
98
0.0%
1,398
0.0%
76,894
1.0%
80,198
0.9%
2,810,110
37.9%
3,505,259
38.2%
695,149
24.7%
Non-operating income
2,917
0.0%
4,758
0.1%
1,841
63.1%
Interest income
2,917
0.0%
2,842
0.0%
71,872
15.6%
Asset management fee
Asset custody fee
Taxes and dues
Other operating expenses
I. Operating income
Compensation income
-
-
1,852
0.0%
Other
-
-
62
0.0%
Non-operating expenses
459,917
6.2%
531,789
5.8%
Interest expenses
301,487
4.1%
345,084
3.8%
35,290
0.5%
44,891
0.5%
122,957
1.7%
139,218
1.5%
182
0.0%
2,595
0.0%
II. Ordinary income
2,353,109
31.7%
2,978,228
32.5%
625,119
26.6%
III. Income before income taxes
2,353,109
31.7%
625,119
26.6%
619,686
26.4%
620,087
26.4%
Amortization of investment unit issuance expenses
Borrowing related expenses
Other
Income taxes - current
Income taxes - deferred
Total Income taxes
IV. Net income
Retained earnings (deficit) brought forward
V. Unappropriated retained earnings (undisposed loss)
2,978,228
32.5%
3,375
0.0%
8,765
0.1%
-17
0.0%
26
0.0%
3,357
2,349,751
0.0%
31.7%
8,791
0.1%
2,969,437
32.4%
217
0.0%
619
0.0%
2,349,969
31.7%
2,970,056
32.4%
36
Unitholder Information
Number of Unitholders and Number of Investment Units by Unitholder Type
Number of Units
Number of Unitholders
4th Period
(January 31, 2015)
Number of
Investment Units
5th Period
(July 31, 2015)
% of total
Number of
Investment Units
4th Period
(January 31, 2015)
% of total
Number of
Unitholders
5th Period
(July 31, 2015)
% of total
Number of
Unitholders
% of total
99,690
10.5%
105,873
9.7%
13,922
96.4%
15,470
96.4%
515,373
54.2%
615,460
56.5%
124
0.9%
129
0.8%
Other domestic corporations
232,267
24.4%
269,805
24.7%
286
2.0%
310
1.9%
Foreign corporations
102,670
10.8%
99,062
9.1%
116
0.8%
131
0.8%
Individuals and others
Financial institutions (including financial
instruments firms)
950,000
Total
100.0%
950,000
100.0%
14,448
100.0%
16,040
Major Unitholders (As of July 31, 2015)
Investment Unit Ownership Ratio
by Unitholder Type
Unitholder Name
Jan. 2014 Period
(2nd Period)
July 2014 Period
(3rd Period)
Individuals
and others
19.8%
Individuals
and others
14.2%
Jan. 2015 Period Individuals
and others
(4th Period)
10.5%
July 2015 Period Individuals
and others
(5th Period)
9.7%
Financial institutions
(including financial
instruments firms)
42.6%
Financial institutions
(including financial
instruments firms)
48.1%
Financial institutions
(including financial
instruments firms)
54.2%
Financial institutions
(including financial
instruments firms)
56.5%
100.0%
Other domestic
Foreign
corporations corporations
25.1%
12.5%
Other domestic
Foreign
corporations corporations
24.6%
13.1%
Other domestic Foreign
corporations corporations
24.4%
10.8%
1
2
3
4
5
6
7
8
9
10
Japan Trustee Services Bank, Ltd. (trust account)
AEON Co., Ltd.
The Master Trust Bank of Japan, Ltd. (trust account)
NOMURA BANK （LUXEMBOURG） S. A.
Trust & Custody Services Bank, Ltd. (securities investment trust account)
The Nomura Trust & Banking Co., Ltd. (trust account)
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
Century Tokyo Leasing Corporation
Daiwa Securities Group Inc.
Total
Number of
% of Total
Units
250,154
215,555
76,035
75,828
40,193
34,275
27,150
20,000
20,000
10,902
770,092
Other domestic Foreign
corporations corporations
24.7%
9.1%
37
22.9%
19.8%
7.0%
7.0%
3.7%
3.1%
2.5%
1.8%
1.8%
1.0%
70.6%
Aeon Group Profile (note)
Business Operations Spanning 13 Countries
Synergy from Multiple Businesses
The Aeon Group has achieved significant success, operating retail properties encompassing
18,740 stores/locations as of February 28, 2015.
Business spanning
13 countries
Laos
1
Myanmar
1
India
3
Thailand
Total
18,740 stores/locations
618
GMS (general merchandise store)
2,030
SM (supermarket)
381
DS (discount store)
121
Home center
4,683
Convenience store
3,932
Specialty store
3,347 ※1
Drugstore
919
Other retail store
207 ※2
RSC
155 ※3
NSC
698
Financial service
1,640
Service business
9
Other business
China
45
18
53
42
30
15
42
80
5
75
219
37
1
Malaysia
29
8
24
18
54
55
1
Cambodia
1
1
6
2
Discount stores
Korea
2,002
Vietnam
2
17
2
4
4
1
Phillipine
454
1
2
Japan
541
1,929
357
121
2,151
3,890
3,347
889
171
155
359
1,460
General merchandise
stores
207 malls in Japan and overseas(*)
Supermarkets
Strategic retail stores
Retail
business
Consolidated
Operating
revenue
¥1,926.1bn
Electronic Money
「WAON」
trading volume
Shopping
center
development
business
Number of
consolidated
subsidiaries: 284
Number of equitymethod associates:
31
Financial
services
business
Australia
1
440,000
3.56
（*）In addition to SC whose name is AEON
MALL, SC whose total floor area is more than
20,000㎡
Synergy
creation
The number of stores and office locations, including consolidated subsidiaries and
equity-method associates
¥7,078.5bn
AEON Town
Drugstores/pharmacies
Indonesia
6
8
※1 includes alliance partners
※2 In addition to SC whose name is AEON MALL, SC whose total floor area is
more than 20,000㎡.
※3 SC whose name is AEON Town
AEON Mall
Service
business
Number of
Group
employees
AEON Card
AEON’s
e-money
(WAON)
AEON Bank
million
AEON Financial
Service
credit card holder
AEON DELIGHT
AEON Fantasy
Note: As of February 28, 2015
38
Disclaimer
―
These materials contain forward-looking statements with respect to the future business results, plans, and management targets and strategies of AEON REIT
Investment Corporation (AEON REIT). These forward-looking statements are based on assumptions made at the present time about future events and the
operating environment. There is no guarantee that these assumptions are correct. Various factors could cause actual future results to differ materially from those
expressed or implied by the forward-looking statements contained herein.
―
While all reasonable measures have been taken to ensure that the information presented herein is correct, AEON REIT makes no assurance or guarantee as to the
accuracy or completeness of that information. The contents of the information may be changed or eliminated without notice.
―
These materials include analyses, judgments and other views based on information currently available to AEON REIT and AEON Reit Management Co., Ltd. As
such, actual operating results may differ from these views. Furthermore, there are other views that differ from these, and AEON REIT and AEON Reit Management
Co., Ltd. may change these views in the future.
―
These materials are provided for the sole purpose of presenting general information and explaining the management strategies of AEON REIT, and are not
intended as a solicitation to purchase AEON REIT’s investment units, nor to enter into any other financial instruments transaction agreement. When making
investments, investors are advised to use their own judgment and discretion.
Disclaimer for Dutch Investors
―
The units of AEON REIT Investment Corporation (“AEON REIT”) are being marketed in the Netherlands under Section 1:13b of the Dutch Financial Supervision Act
(Wet op het financieel toezicht, or the “Wft”). In accordance with this provision, AEON Reit Management Co., Ltd. (the “AIFM”) has notified the Dutch Authority for
the Financial Markets of its intention to offer these units in the Netherlands. The units of AEON REIT will not, directly or indirectly, be offered, sold, transferred or
delivered in the Netherlands, except to or by individuals or entities that are qualified investors (gekwalificeerde beleggers) within the meaning of Article 1:1 of the
Wft, and as a consequence neither the AIFM nor AEON REIT is subject to the license requirement pursuant to the Wft. Consequently, neither the AIFM nor AEON
REIT is subject to supervision of the Dutch Central Bank (De Nederlandsche Bank) or the Netherlands Authority for Financial Markets (Autoriteit Financiële
Markten). The AIFM is therefore solely subject to limited ongoing regulatory requirements as referred to in Article 42 of the European Alternative Investment Fund
Managers Directive (European Directive 2011/61/EU) (the “AIFMD”).
Please visit AEON REIT’s home page (www.aeon-jreit.co.jp/en) to access its latest annual report referred to in Article 22(1) of the AIFMD or information provided
under Article 23 of the AIFMD.
Asset Manager: AEON Reit Management Co., Ltd.
(Registration of financial instruments business: Kanto Local Finance Bureau, Director-General (Financial Instruments), No. 2668)
Contact Information
Please direct inquiries to:
AEON Reit Management Co., Ltd.
Finance and Planning Department
TEL: 03-5283-6360
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