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.
Completed a round of elimination of unrealized loss through asset replacement and entered a phase of asset size expansion
Having completed a round of elimination of unrealized loss through a series of asset replacement, JEI has begun full transition to a phase of asset size expansion and is advancing external growth. Included in this is the acquisition of BIZCORE AKASAKA-MITSUKE in October 2019 and Senshin Building in November 2019 in addition to the decision in January 2020 to acquire GRAND FRONT OSAKA through public offering.
Track of “Quality Growth” Contributing to Growth of DPU and NAV per Unit
Continuous Internal Growth through Leasing/Rent Increase Focused on Improving Unit Rents
Rent revenue from existing properties has steadily increased due to upward rent revision and rent increase upon tenant replacement. Furthermore, since approximately 70% of existing contracts’ rents are below the market rent, there still is room for an increase.
・Rent revenue from existing properties continued to increase and is expected to increase by 2% a year going forward.
・Approximately 70% of existing contracts’ rents are below the market rent. The increase in market rent outpaced the rent increase for existing contracts and the rent gap(*) has widened from -5.1% to -5.9%.
・Promoting Reduction of Financial Costs, Extension of Remaining Period of Interest-Bearing Debt and Diversification of Repayment Dates at the Same Time
JEI is preparing for a future phase of increased interest rates by capitalizing on the environment of historically low interest rates to further fix interest rates, extend remaining period of interest-bearing debt and diversify repayment dates while reducing financial costs.
With the growing importance of consideration for the environment, society and governance (ESG), JEI has been proactively working to reduce the environmental burden and cooperate/collaborate with stakeholders with an aim to realize a sustainable society by fulfilling its social responsibility as a company.
As part of environmental initiatives, JEI has been making a proactive effort to acquire green building certifications.
For further details of JEI’s ESG initiatives, please click here.