Maximize Unitholder Value
by Making Full Use of the Characteristics as a Diversified REIT
NIPPON REIT Investment Corporation focuses on income growth and stability by making full use of the characteristics as a diversified REIT, and endeavors to maximize unitholder value through conducting dynamic and timely investments and acting in the best interests of unitholders.
Develop a Portfolio of Properties Focused on Income Growth and Stability
Develop a comprehensive portfolio of properties investing mainly in office, while also including residential and real estates used for other purposes, in order to diversify risks by combining assets that have different return characteristics, while securing more appropriate investment opportunities in consideration of the future trends of the Japanese economy and the real estate market.
In developing the portfolio, endeavor to maximize unitholder value by making investments that are reckoned to be most appropriate in consideration of such factors as the investment characteristics of respective asset types, their market trends at each point of time and other external environments
| (Note 1) | “Investment ratio by asset type for the entire portfolio” refers to the figure obtained by dividing the total acquisition price of the investment assets of respective types by the total acquisition price of all the investment assets. |
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| (Note 2) | “Investment ratio by area for each asset type” refers to the figure obtained by dividing the total acquisition price of the investment assets of respective types in respective areas by the total acquisition price of investment assets of respective types in all areas. |
| (Note 3) | "Tokyo Economic Area" refers to Tokyo Metropolis, Kanagawa Prefecture, Chiba Prefecture, and Saitama Prefecture. |
| (Note 4) | “3 Major Metropolitan Areas" refers to the Tokyo economic area, the Osaka economic area ( Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture ), and the Nagoya economic area ( Aichi Prefecture, Gifu Prefecture, Mie Prefecture ). |
Investment Characteristics of Each Asset Type
- Office
- Centered on the Tokyo
Economic Area - Concentration of companies
- Growth potential
- ● Income growth is expected in the economic expansion phases, as tenant demand and rent levels are relatively prone to changes in accordance with business cycles
- ● Liquidity is secured at a certain level, as the investment market has a relatively large size
- ● Tokyo Economic Area: solid tenant demand is expected, given the high concentration of companies
- Residential
- Centering on the 3
Metropolitan Areas - Concentration of population
- Stability
- ● Rental demand and rent levels are expected to remain relatively stable without being influenced by business cycles
- ● 3 Major Metropolitan Areas: Demand for rental residential properties at a certain level is anticipated, given the high concentration of population
- Others
- Securing diverse investment opportunities in light of changes in the social environment
- Growth potential / Stability
- ● Have a revenue structure that differs from offices and residences, enabling portfolio risk diversification and expansion of income opportunities.
- ● By investing in hotels with variable rent structures, it is expected to benefit from increased hotel revenues driven by growing demand for accommodations.
- ● Relatively high profitability is expected, as they are located in the center of cities where brisk consumption activities are anticipated against the backdrop of population inflow
- ● More replacement tenants are expected to be available
- ● Stable income can be expected based on long-term fixed rent contracts with major tenants
- ● Solid tenant demand is anticipated in response to stable needs closely connected to the community lives