JEI engages in efficient and agile financial operations in order to realize a stable revenue stream and steady growth of investment assets in the medium to long term.
JEI expeditiously issues new investment units by accurately judging financial conditions and considering dilution of investment units (decrease in net assets or distribution per unit by additional issue of investment units), timing of acquisitions of new properties, etc. and ratio of interest-bearing debt to total assets (hereinafter, "LTV").
JEI seeks an optimum balance between short-term and long-term fund raising in an effective way while considering agility and stability. At times, a commitment line may be set up.
JEI pays attention to the following points in undertaking debt financing.
For the latest information on each item, please refer to the relevant pages on this website.
|Fixed and variable interest rates||
For any given capital market situation and interest rate trend, JEI determines various terms and conditions including fixed or floating interest rates. JEI may engage in derivative transactions for the purpose of hedging the risk of interest rate fluctuations in borrowings.
|Spreading repayment date||
JEI tries to spread the date of repayments of borrowings and maturities of corporate bonds.
JEI may issue corporate bonds for the purpose of diversification of means for fund procurements. At the time of issuing corporate bonds, it may obtain a rating (ratings) from a designated rating agency (agencies) to use it (them) as one of the indicators for JEI's financial health.
|The level of LTV||
JEI sets its upper limit for LTV to be 60%, but with such factors as property acquisitions and fluctuations in property appraisal value, the level of LTV may temporarily exceed 60% at times. JEI maintains LTV at around the level of 35% to 50%.
|Limit on amount of fund procurement||
JEI sets the limit for funding to be one trillion yen, which is the sum of issued corporate bonds and the aggregate amount of debt.
JEI borrows funds only from institutional investors (as specified under the Article 67-15 of Act on Special Measures Concerning Taxation, hereafter "Institutional Investors")
In applying for a loan, JEI negotiates debt terms with multiple Institutional Investors and make a decision after comparing their terms. At the same time it considers diversification and enhancement of fund procurement sources to avoid reliance on any specific institutional investor.
|Policy on setting collateral||
JEI may pledge investment assets as collateral in order to ensure stable and efficient fund-raising activities.
JEI may use deposits and guarantee monies received from tenants as a mean for fund procurements. It prudently manages funds by fully reviewing trends of interest rates and fund management situations, while considering such factors as safety and liquidity.