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Financial Policy

HRR will aim to establish a stable financial base over the medium- to long-term through forming systematic and efficient financial strategy in order to realize secure revenue and steady growth of the portfolio.

Equity financing

The issuance of new investment units will be conducted flexibly for the purpose of long-term and stable growth of the portfolio. Comprehensive decisions on issuance will be made after fully considering the economic environment, capital market trends, the timing of new asset acquisitions and dilution of investment units (decline in the ratio of the equity interest and decrease in net assets or distribution per unit due to additional issuance of new investment units).

Debt financing

Financial policy focusing on stability

HRR will aim to establish a well-balanced bank formation centering on major financial institutions. HRR will also incorporate financial policy that focuses on stability by making long-term fixed loans and diversifying repayment dates.

LTV level

The upper limit of the LTV level (the ratio of outstanding loans including investment corporation bonds to the HRR’s total assets) is, in principle, 50% in order to retain financial soundness. However, it may temporarily exceed 50% due to new property acquisitions etc.

Amortization policy

Facilities in which HRR invest tend to have relatively larger building ratios due to their locations, and the amount posted in depreciation each operating period sometimes significantly surpasses the amount of capital expenses that are actually needed. HRR may aim to increase return on assets by reducing refinancing risks and the burden of interest expenses through allocating part of the amount to strategic amortization (partial repayment of loans).