NIPPON REIT Investment Corporation

Securities code:3296

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Growth Strategy

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Portfolio Development Policy

Overview of NIPPON REIT

(Note 1) “Office” properties are office buildings which are primary used as offices.
(Note 2) “Residential” properties are rental residential properties which are primary used as residences.
(Note 3) “Retail” properties are real estate where the primary tenants are retail tenants (stores, restaurants, amusement facilities, etc.).

Growth Strategy

Focusing on supply/demand balance and diversification

Pursuit of Stable and Robust Portfolio

Focusing on medium-sized office properties in Tokyo

Characteristic of Medium-sized office properties in Tokyo
Limited new supply and strong demand in our competitive medium-sized office field
Relatively low rent volatility within the office properties market

■Portfolio distribution by asset type

Office Properties
77.9%
Medium-sized
office properties
100%

■Office portfolio distribution by area

Offices located in six central wards of Tokyo
70.7%
Offices located
in Tokyo economic area(Note 1)
91%
Diversified portfolio

■Office and retail portfolio Tenant diversification

(based on leased area)

Five largest tenants(Note 2)
7.3%

■Portfolio diversification

 

5 largest properties(Note 3)
22.4%

Asset Management Structure that Takes Advantage of Our Portfolio’s Strengths

Tripart Management

Two business divisions and an engineering team work in close cooperation during all phases of asset management
Realize ideal portfolio management on a medium to long term viewpoint under synergistic effect of three functions

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(Note 1) “Tokyo economic area” refers to Tokyo Pref., Kanagawa Pref., Chiba Pref., and Saitama Pref.
(Note 2) “Proportion of the 5 largest tenants” are calculated as follow for end-tenants of office (excluding residence area)and retail properties. leased area of respective tenant as of the end of the April 2018 / total leasable area
(Note 3) “Proportion of the 5 largest properties” are calculated as follow total acquisition price of 5 largest properties/AUM
(Note 4) “Tiering Project” refers to an annual process of developing portfolio management strategy in a qualitative and quantitative manner, including flexible asset replacement, by reviewing the management of all the properties in the portfolio from diversified perspectives (property characteristics, tenant diversification, liquidity in the real estate trading market, competitiveness and profitability in the market area, historical occupancy rates, potential for rent increase, verification of downtime, supply-demand balance in the market area, building conditions, comparison of specifications with comparable properties, renewal of key facilities, prospects for Capex and other factors) for the purpose of managing the portfolio from a mid- and long-term standpoint.

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