JEI aims for “securing stable income” and “steady growth of its portfolio” over the medium to long term by responding to changes in the economic environment and real estate and financial markets, as well as implementing strategies that match the times. On this page, we introduce some of the strategies we are currently focusing on.
Qualitative Improvement of Portfolio Through Asset Replacement
Completed qualitative improvement of portfolio through asset replacement and shift to asset expansion phase. Continued to negotiate property acquisition with sponsors and third parties.(including substitute property)
【Principle】 Aim for “quality growth” that contributes to the growth of distributions per unit and NAV per unit
Continuous Internal Growth through Leasing/Rent Increase Focused on Improving Unit Rents
Tenant wait-and-see attitudes continued, primarily among large spaces, with the occupancy rate at the end of the 30th Period settling at 96.4% (-0.7pt vs. plan)
Occupancy rate is expected to moderately recover after a bottom-out in the 31st Period, assuming a pick-up in office demand
Realized rent increase in the 30th Period with an upward revision rate of 6.0% for 10.5% of the area subject to revision
Conservative plan narrowing down the target of rent increase as well as assuming a certain degree of downward rent revision in consideration of the leasing market environment for the 31st Period and 32nd Period
The rent gap was -5.8%*1. More than 60% of existing contracts (offices) are still below market rent
Promoting fixed interest rates, extended remaining period of interest-bearing debt, diversified repayment dates
Taking advantage of the historically low interest rate environment, we are preparing for a future phase of interest rate hikes by fixing interest rates, extending the remaining period of interest-bearing debt, and diversifying repayment dates while lowering financial costs.
Balance of Reserve for Reduction Entry
|30th Period End||451 million yen|
|32nd Period End(Forecast)||771 million yen|
Japan Excellent, Inc. ("JEI") and Japan Excellent Asset Management Co., Ltd. aim to realize a sustainable society under corporate social responsibility, and focus on the reduction of environmental burden and cooperation/collaboration with stakeholders.
In addition, we recognize ESG initiatives as the most important issue in management and plan to implement them in a forward-looking manner.
For further details of JEI’s ESG initiatives, please click here.
Anticipating change in the movements and needs for a “new way of offices” and pursing “selected offices” while utilizing the features of JEI
Focus on the maximization of unitholder value by immediately responding to the changes in environment and needs and considering and implementing various measures as AM