Asset Management Company
Simplex REIT Partners
Sponsor
Mizuho Trust & Banking

japanese

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  2. Characteristics of One REIT
  3. Financial Strategy

Financial Strategy

Stable organizational management through flexible fund procurement

As a REIT whose main sponsor is Mizuho Trust & Banking, we will establish a stable organizational structure by conducting flexible and agile fund procurement.
We will maximize unitholder value by conducting fund procurement at optimal interest rate levels.
We will minimize financial risk by solidifying, extending, and dispersing the maturity dates of borrowings.
We will conduct leverage controls considering the market conditions and financial stability.

Finance Policy

Equity Finance One REIT can issue additional investment units for the purpose of acquiring assets, paying for repair and capital expenditure works, returning lease and guarantee deposits from tenants, covering operational expenses, repaying debt, and so on. One REIT issues additional investment units in a flexible fashion with consideration of, loan to value (LTV) levels, the market environment, and dilution of investment units.
Debt Finance With the aim of steadily growing our assets and promoting efficient and stable asset management, we can take out loans or issue investment corporate bonds for the purposes of acquiring assets, paying for repairs/improvements expenses, paying dividends, working funds required for One REIT, or repaying other debts and so on. We also build solid relationships with financial institutions centered on domestic leading financial institutions including megabanks. Moreover, we engage in stable management in our borrowings, with diversification of maturities and lenders, while taking into account the long-term ratio of interest-bearing debt and the fixed interest rate debt ratio.
Loan to Value (LTV) To maintain our financial health, we will cap our LTV ratio at 60%. However, our LTV ratio may exceed 60% temporarily when, for example, we acquire new assets.
Use of Depreciation Expenses

One REIT aims to maximize the amount of distribution per unit by effectively using internal reserves generated from depreciation to implement our growth strategy, finance policy and so on. Specifically, we consider using these reserves as follows:

(1) As a means of contributing to the implementation of our growth strategy by improving the competitiveness of the facilities we own through capital expenditure on refurbishments, conversions, and so on and securing funds for the acquisition of property
(2) As a means of contributing to the implementation of our finance policy by reducing interest costs through the partial repayment of debt and securing funds for one-time distributions in excess of profits

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