Investment Management Policy
Japan Rental Housing Investments, Inc. (“the Investment Corporation”) primarily invests in specified assets such as real estate that are used for residential purposes (rental apartments) which are located nationwide (residential REIT), with a focus on properties located in the 23 wards of Tokyo and the three major metropolitan areas of Japan. The Investment Corporation believes that it is easier to diversify investment areas for rental apartments in comparison to offices and retail facilities, and that residential properties are relatively stable regardless of the upturns and downturns of rent revenue. By investing in residential properties, the Investment Corporation will strive to stabilize portfolio earnings, steadily increase its assets under management and stabilize the earnings for each asset under management over the medium to long-term. Through such activities, the Investment Corporation will strive to realize continued enhancement of unitholder value.
The Investment Corporation recognizes that for rental apartments, the use of the property significantly differs depending on the family structure, income and age of the user. Furthermore, it recognizes that the trends in demand varies according to each user type. In view of these observations, we will consider factors such as changes in family structure, changes in each user type’s views towards residences and characteristics of each local area in order to identify the diversifying needs of users. Based on this awareness, we will make investment decisions. As a rule, the Investment Corporation invests in Japanese real estate that are deemed to produce stable earnings from the two categories, namely Studio Type and Family Type, based on the following investment ratios.
Through this type of investment, the Investment Corporation will be able to make the best of residential assets based upon diversification of tenant types, and will be able to properly control fluctuation risks in cash flow produced by the portfolio.