Activia Properties Inc.Executive DirectorNobuhide Kashiwagi

　Thank you very much for your continued support of Activia Properties Inc (API).
　Recently we closed all accounts for the period from June 1, 2023 to November 30, 2023. We owe this achievement to your understanding and continued support for which we wish to extend our deep appreciation.

　In terms of management performance of assets owned by API during the fiscal period under review, leasing progressed steadily for rental office space, and stable occupancy is now expected. In retail properties, tenants' appetite to open new stores improved driven by the recovery of the market, and progress was made in filling vacancies. In hotels, occupancy rates and average room rates continued to recover due to increased accommodation demand from visitors from Japan and overseas.
　In addition, based on our asset replacement strategy, we made the disposition of Luogo Shiodome (51% co-ownership interest) with a disposition price of 4,646 million yen as of June 1, 2023, and announced the disposition of A-FLAG KOTTO DORI with an anticipated disposition price of 5,000 million yen, which is scheduled to be implemented as of May 31, 2024, as well as a third round of repurchase of our own investment units as a measure to increase unitholders' value.
　As a result of the above-mentioned management, operating revenue, operating profit, and profit for the period under review were ¥17,344 million, ¥9,588 million and ¥8,621 million, respectively, for the period ended November 2023. Distributions per investment unit were ¥9,611.
　API’s portfolio at the end of the period under review was 46 properties with the total acquisition price of ¥546.1 billion.
　We will make a continuous effort in our operation for medium- to long-term growth of our investment corporation.

　API has included ESG (environment, social, and governance) perspectives into the long-term management strategy to realize a sustainable society. In accordance with our policy for addressing materiality (core issues), we have announced numerical targets for a wider range of environmental performance, clarified more practical management policies to achieve these targets, and are promoting day-to-day initiatives. In the GRESB Real Estate Assessment 2023, API was selected as the Global Sector Leader and Asia Sector Leader in recognition of the environmental and other efforts we have made to date.
　We will continue to promote our ESG initiatives to enhance trustworthy relationships with all our stakeholders including unitholders.

　Eleven years have passed since our listing, and we intend to continue to manage our properties with the aim of achieving medium- to long-term growth.

　We would be most grateful for your continued support and encouragement. Thank you.