marimo Regional Revitalization REIT, Inc.
We hope this message finds you well. We would like to express our sincere gratitude for your continued support.
marimo Regional Revitalization REIT, Inc. (hereinafter, “marimo REIT”) was 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. Recently, marimo REIT successfully ended the 5th fiscal period (ended December 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. marimo REIT’s asset size expanded to 24,525 million yen (25 properties) at the end of the 5th fiscal period, leading to further improvement in the stability of revenue base and the liquidity of investment units.
In the 5th fiscal period, marimo REIT conducted major repair work at ArtizA Sobudai and strived to reduce maintenance costs and improve customer satisfaction. In addition, marimo REIT also reexamined other properties it owns, increasing parking income, switching electric power distributors, raising rent upon tenant replacement, reducing costs by switching to LED lighting in common areas, as well as working on other efforts to enhance NOI. As a result, marimo REIT managed to post operating revenue of 1,093 million yen, operating income of 471 million yen, ordinary income of 395 million yen and net income of 395 million yen for dividends per unit (including dividends in excess of earnings) of 3,445 yen.
marimo REIT’s asset size expanded to 25,225 million yen (26 properties) with the acquisition of ArtizA Higashi-Shimada, a relatively new residence developed by the sponsor Marimo Co., Ltd., at the beginning of the 6th fiscal period (ending June 2019).
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.