Growth Strategy
External Growth Strategy
| Priority investment assets | To ensure stable mid-to-long-term earnings and the steady growth of our managed assets, we invest in properties with different risk-return profiles, specifically hotels and residential properties. Our target portfolio allocation is 30% to 70% for hotels and 30% to 70% for residential properties on an acquisition price basis. Within the hotel category, we focus primarily on business and city hotels. |
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| Leveraging the asset management company's proprietary network | We leverage the Asset Management Company’s unique network to conduct selective investments, focusing on regional characteristics, social trends, demand shifts, and convenience, while also evaluating tenant creditworthiness and operational expertise. For hotels, we focus on major tourist destinations and well-recognized business areas across Japan. Investment decisions are based on a comprehensive evaluation of rent affordability, historical and projected KPIs (such as occupancy rates), customer base stability, and the competitive environment. We prioritize securing investment yields that enhance unitholder value in line with our portfolio policy. For residential properties, we target the three major metropolitan areas (Greater Tokyo, Kansai, and Chukyo regions) and ordinance-designated cities. We make investment decisions by evaluating property characteristics—such as location, convenience, and surroundings—and operational performance, focusing on ensuring yields that contribute to increased unitholder value. |
| Leveraging the Sponsor Pipeline | Under the sponsor support agreement with the APA Group, the Investment Corporation has been granted Right of First Negotiation for properties owned or developed by the Group that meet our investment criteria. Furthermore, the Group provides us with preferential access to information regarding third-party property sales. In addition, we can request the APA Group to temporarily hold properties (warehousing function) that align with our investment criteria but are currently owned by third parties. By fully leveraging this sponsor support, we aim to achieve flexible and sustainable external growth by capitalizing on prime investment opportunities. |
Internal Growth Strategy
| Hotels | We will impose reporting obligations on tenants—whose operations significantly impact rental income—for each facility. Additionally, we will conduct consultations with tenants and implement monitoring by the management company, using key performance indicators such as sales and GOP as references, with the aim of maintaining and enhancing revenue and asset value. |
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| Residentials | We aim to maintain and enhance earnings and asset value by effectively attracting tenants, actively pursuing rent adjustments for managed properties with rent gaps at the time of new leases and lease renewals, and optimizing operational and management costs. |