NIPPON REIT Investment Corporation

Securities code:3296

JAPANESE

Portfolio Development Policy

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NIPPON REIT endeavors to develop a comprehensive portfolio of properties focused on income growth and stability, aiming to maximize unitholder value.

Develop a Comprehensive Portfolio Comprising Office Buildings, Residential Properties and Retail Facilities as Major Investment Targets

Develop a Comprehensive Portfolio Comprising Office Buildings, Residential Properties and Retail Facilities as Major Investment Targets

(Note 1) “Investment ratio by asset type for the entire portfolio” refers to the figure obtained by dividing the total acquisition price of the investment assets of respective types by the total acquisition price of all the investment assets.
(Note 2) “Investment ratio by area for each asset type” refers to the figure obtained by dividing the total acquisition price of the investment assets of respective types in respective areas by the total acquisition price of investment assets of respective types in all areas.
(Note 3) “6 Central Wards of Tokyo” refers to Chiyoda, Chuo, Minato, Shinjuku, Shibuya and Shinagawa Wards.
(Note 4) “3 Major Metropolitan Areas” refers to the Tokyo economic bloc, Osaka economic bloc and Nagoya economic bloc.
(Note 5) “Ordinance-Designated Cities, etc.” refers to the ordinance-designated cities located in areas other than the 3 Major Metropolitan Areas (Sapporo, Sendai, Niigata, Shizuoka, Hamamatsu, Okayama, Hiroshima, Fukuoka, Kitakyushu and Kumamoto) and cities that are prefectural capitals.

Investment Characteristics of Each Asset Type

Office buildings
Centering on the 6
Central Wards of Tokyo
Concentration of companies
Growth potential

NIPPON REIT's understanding of investment characteristics

Income growth is expected in the economic expansion phases, as tenant demand and rent levels are relatively prone to changes in accordance with business cycles
Liquidity is secured at a certain level, as the investment market has a relatively large size
6 Central Wards of Tokyo: solid tenant demand is expected, given the high concentration of companies
Residential properties
Centering on the 3
Metropolitan Areas
Concentration of population
Stability

NIPPON REIT's understanding of investment characteristics

Rental demand and rent levels are expected to remain relatively stable without being influenced by business cycles
3 Major Metropolitan Areas: Demand for rental residential properties at a certain level is anticipated, given the high concentration of population
Retail facilities
Urban retail
Growth potential
Daily necessities/GMS(Note)-anchored retail
Stability

NIPPON REIT's understanding of investment characteristics

Urban retail facilities

Relatively high profitability is expected, as they are located in the center of cities where brisk consumption activities are anticipated against the backdrop of population inflow
More replacement tenants are expected to be available

Daily necessities retail facilities and GMS-anchored retail facilities

Stable income can be expected based on long-term fixed rent contracts with major tenants
Solid tenant demand is anticipated in response to stable needs closely connected to the community lives
(Note) “GMS” is an abbreviation of general merchandising store, and refers to a large-scale general supermarket that sells daily necessities for the general public.

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