Financial Policy

Equity Finance

INV may issue additional investment units for the purpose of acquiring assets, distribution payments, acquiring operational funding or procuring funds for debt repayment. Prior to conducting such issuances, INV will review the long-term and stable growth prospects of assets, the financial environment, and INV's own financial standing, while giving considerations to dilution of investment units (decline in percentage of equity of investment units due to additional issuance of new investment units and decrease in net asset value per investment unit or distribution).

Debt Finance

INV may borrow or issue investment corporation bonds (including short-term investment corporation bonds, the same applies hereinafter) for the purpose of acquiring assets, repair or distribution payments, acquiring operational funding or procuring funds for debt repayment, which are conducive to the efficient management of investment assets and the stability of management.

Limit
  • The maximum amount of any borrowing and issuance of investment corporation bonds will be JPY 500 billion, and the aggregate amount of all such debt will not exceed JPY 500 billion.
Loan To Value (LTV)
  • The maximum ratio of the total outstanding balance of borrowings and investment corporation bonds to total assets is, in principle, 60%.
Collateral
  • When borrowing funds or issuing investment corporation bonds, INV may provide its investment assets as collateral.
Lender
  • INV is restricted to borrowing from qualified institutional investors (as provided by the Financial Instruments and Exchange Act (1948 Act No. 25, 1948 and subsequent amendments), Article 2, Paragraph 3, Item 1) but limited to the institutional investors as provided by the Act on Special Measures Concerning Taxation (1957 Act No.26 and subsequent amendments), Article 67, Paragraph 15.
  • INV will negotiate various terms such as borrowing period, interest rates, collateral, and fees, with multiple financial institutions and select a lender by comprehensively judging the details of the terms.
  • INV tries to ensure diversification of lenders and repayment terms so as to mitigate refinancing risks.
Risk hedge
  • INV may undertake derivative transactions in order to hedge risk of interest rate fluctuations derived from our debts and other risks.
Investments in overseas properties
  • INV may enter into derivative transactions to hedge foreign currency exchange risk.
  • INV may enter into borrowings denominated in local currency. INV may also enter into borrowings in yen and convert the proceeds into local currency depending on the market environment at the time INV raises the funds.

Policy & Strategy