Strategic Portfolio
Growth based on a stable portfolio backed by industrial and population clusters
Tokaido REIT seeks stable portfolio building and growth by investing in (i) industrial infrastructure assets, which include logistics facilities, industrial facilities where the tenants are companies utilizing it as their operating bases, and leasehold land suitable for industrial or logistics sites in the greater Tokaido region, particularly the industrial region with Shizuoka at the core, and (ii) community infrastructure assets, which include residential properties and leasehold land in locations suitable for distribution or sale of daily necessities supporting the companies and people in the greater Tokaido region.
*Investment ratio (based on acquisition price)
25% or more*
- Segmentalized and highly stable cash flows
- Given that housing is a necessity of life, rent payments are a priority for tenants which are premised on credit guarantee by joint and several suretyships or guarantee companies
Residential assets generate stable revenue as end-tenants are segmentalized and diversified and, being a particularly high necessity of life, high occupancy rates can be maintained as long as rent levels are at market levels.
25% or more*
- End-tenants are companies utilizing the logistics facilities as their operating bases
- Stable occupancy with an abundant needs for logistics on the back of locational advantage and industrial clusters
Many corporations have logistics bases in the greater Tokaido region given that numerous expressways (e.g. Tomei Expressway) and arterial roads converge and inter-connect with each other in this region.
- End-tenants are companies utilizing the assets as their industrial or business bases
- Extensive business demand on the back of industrial clusters
Industrial or business assets are facilities where the tenants are mainly companies with industrial or business engagement in the greater Tokaido region and utilize the facilities as their operating bases.
Yokkaichi
- Locations suitable for distribution or sale with prime trade areas nearby
- Functions as community infrastructure offering mainly daily necessities
Leasehold land that supports the industries of the nearby region through the distribution or sale of daily necessities to consumers in the greater Tokaido region and other locations with decent catchment.
- Leasehold land assets suitable as industrial or logistics sites
Tokaido REIT defines leasehold land assets (for industrial infrastructure) as leasehold land assets serving industrial or logistics functions.
- For Hamamatsu Plaza (leasehold land), although Tokaido REIT has acquired not only the leasehold land but also some of the buildings, the asset is classified as a leasehold land asset because most of the asset is leasehold land.