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 December 1, 2023 to May 31, 2024. 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, high occupancy levels have been maintained for rental office space amid continued strong demand as companies look for better office locations and seek to expand offices. Next, in retail properties, tenants' appetite to open new stores continued to improve, driven by factors such as the growth of inbound tourism. Progress was made in filling vacancies, and stable occupancy is now expected into the future. Furthermore, in hotels, average room rates continued to recover due to increased accommodation demand from visitors from Japan and overseas.
　During this period, we also made the disposition of A-FLAG KOTTO DORI as of May 31, 2024, and made 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 ¥15,910 million, ¥8,411 million and ¥7,416 million, respectively, for the period ended May 2024. Distributions per investment unit were ¥9,365.
　API’s portfolio at the end of the period under review was 45 properties with the total acquisition price of ¥541.8 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.