Financial Strategy

Stable financial base backed by a strong lender formation

Policy on Debt Financing

■Tokaido REIT will adjust the ratio of floating- and fixed-rate borrowings depending on the interest rate environment. In addition, Tokaido REIT will stagger maturities so as to minimize refinancing risks.

■In terms of the LTV ratio, the upper limit is set at 60% while the LTV target is in the 40~50% range on a normalized basis.

Policy on Equity Financing

Same-Boat Investment by Sponsors

By aligning the interests of Tokaido REIT’s unitholders and the interests of each sponsor, management will be performed in a manner that would seek mutual enhancement of earnings and thereby aim for maximization of Tokaido REIT’s unitholder value.

Policy on Capital Increases Through Public Offerings

Tokaido REIT will seek to issue investment units that would be accompanied by external growth with the intention of continuously growing. In addition, upon equity financing, dilution of investment unit prices and distributions will be taken into consideration in light of the financial environment and real estate market conditions.