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
Occupancy rate for the 29th Period was 98.0%, almost the same as the assumed rate
Conservatively incorporated the extension of downtime and free-rent periods as well as tenant departure for the 30th Period and 31st Period
Realized rent increase in the 29th Period with an upward revision rate of 3.5% for 41.7% 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 30th Period and 31st Period.
Over 50% of existing contracts are below the market rent.
Due to initiatives to increase rent, the rent gap(*1) has shrunk to -2.3%.
Accumulated internal reserve by utilizing gain on sale while 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. In addition, we accumulated internal reserve to provide resources for stabilizing distributions in the future.
Balance of Reserve for Reduction Entry
|28th Period End||219 million yen|
|29th Period End||451 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