Financial Strategy
Aim for agile and stable financial management to enhance unitholder value
Stance on Equity Financing
SANKEI REAL ESTATE may issue new investment units for the acquisition of assets, repayment of obligations, etc. The basic policy shall be to implement the issuance of new investment units in an agile manner with due consideration to investment unit dilution, while also taking into consideration the ratio of loans and other interest-bearing liabilities in comparison to total assets (hereinafter “LTV ratio”), and market environment.
Stance on Debt Financing
SANKEI REAL ESTATE may borrow funds or issue investment corporation bonds for the purpose of asset acquisition, payment of repair expenses, payment of distributions, attaining funds required for the operation of SANKEI REAL ESTATE, repayment of obligations, etc. The basic policies shall be to establish a bank formation centering around Japan’s leading financial institutions, to consider the balance between the ratio of long-term debt and fixed-rate debt, to stagger maturities, to diversify lenders, etc. so as to strategically borrow funds or issue investment corporation bonds in order to conduct stable and sound financial management.
Basic Policy on LTV Ratio
To secure financial soundness, the basic policy shall be to set the upper limit for the LTV ratio at 60% (however, the LTV ratio may temporarily exceed 60% upon new asset acquisition, etc.). As a rule, SANKEI REAL ESTATE will maintain an approximate range of 40% to 50% during normal operations.