Financial Strategy

Stable and Sound Financial Management

Our basic policy is to build a stable and sound financial foundation with the aim of maintaining and increasing income in the medium to long term and achieving growth in the size and value of the managed assets.

Basic policy

Equity finance
  • Issue of new investment units

    Decisions on the issue of new investment units, the aim of which is to achieve growth in the size and the value of the managed assets, are made based on a comprehensive consideration covering the time of acquisition of the new real-estate-related assets, the potential for utilization of the sponsor’s warehousing function, the loan-to-value ratio, the repayment date of interest-bearing debt and maturity dates, economic conditions, and other relevant factors. Account is also taken of the potential for dilution of existing unitholders’ rights and resulting fall in the trading price of the investment units, and other relevant factors.

  • Acquisition and cancellation of own investment units

    In terms of improving unitholder value in the medium and long term, Hulic Reit may acquire or cancel its own investment units with the aim of improving capital efficiency and returning profits to unitholders.
    The decision to acquire own investment units is made after a comprehensive consideration of the price at which the investment units are traded, various capital needs and conditions in economic markets, among other factors.

Debt finance In the case of borrowing of funds or issue of investment corporation bonds (including short-term investment corporation bonds), fund procurement is carried out with attention paid to achieving a balance between flexibility of procurement and financial stability. Specifically, consideration is given to the proportions of long-term and fixed-rate debt, staggering of the repayment dates, procurement method (borrowing or investment corporation bonds), establishment of commitment lines, and other relevant factors.
Loan-to-value ratio In principle the upper limit is set at 60%, with attention paid to the maintenance of reserve funds. However, the amount may temporarily exceed 60% due to factors such as new investments or changes in asset valuation.
Note: The loan-to-value ratio refers to total interest-bearing debt as a proportion of Hulic Reit’s total assets.
Cash management policy The capital requirements of the portfolio are constantly monitored and accurately identified for the purpose of implementing effective and appropriate cash management.
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