2. Features of Daiwa Office
  3. Asset Management Strategy

Asset Management Strategy

Internal Growth Strategies

Continuous Internal Growth and Maximization of Asset Value Through “Bonji-Tettei”

The Investment Corporation aims to maintain occupancy rates, secure appropriate rent levels, and ultimately maximize asset value by strengthening relationship with tenants through accurate monitoring of the leasing market and appropriate management in accordance with the trend of tenants and property features.

Reduce Operational Management Costs

The Asset Manager will make efforts to reduce operational management costs by seeking economies of scale in maintenance, equipment purchases, etc. by leveraging the characteristic of the Investment Corporation’s portfolio, which is that most of the properties are located in the Tokyo area.

External Growth Strategies

Acquisition Policy

  • Make focused investment in the five central wards of Tokyo and equivalent areas.
  • Carefully select properties in view of demand for location (distance to stations, attractiveness of the stations, ability to attract customers, surrounding environment, etc.), building specifications, etc.
  • Acquire properties that improve growth potential and profitability of the existing portfolio.
  • Invest in buildings with a building age of 25 years or less.
  • Consider replacement when necessary in consideration of future competitiveness, profitability, etc. of properties.
  • Also consider properties premised on development.

Financial Strategies

Interest-Bearing Liabilities Ratio (LTV)

In principle, the ratio of interest-bearing debt to total assets is subject to leverage control in a range of up to 40% to 50%, taking into account the interest-bearing debt ratio based on the appraisal value and other factors.

Diversification of Maturity Dates

In principle, diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing liabilities that shall become due during any single fiscal period.

Long-Term Borrowings Liabilities Ratio

In principle, aim to have long-term loans account for at least 70% of total loans.

Diversification of Lenders

Achieve diversification of lenders, which shall mainly be Japanese financial institutions.

Fund Management

Pursuant to its fund management rules, maintain stability in its financial standing by managing necessary funds, such as the amount distributions paid, separately from working capital.