Daiwa House REIT

TSE code : 8984

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  2. Features of DHR
  3. Financial Strategies

Financial Strategies

Lengthens and diversifies debt maturities and fixes interest rates
Controls LTV within a range from 40% to 50% to maintain stable financial operation
Builds solid lender formation

Financial Policy

Basic Policy DHR’s main policy is to design and implement well-planned and flexible financial strategies in order to ensure consistent revenue, steady growth of assets, and efficient and stable asset management in the mid-to-long term.

■Equity Financing

DHR may issue new investment units after taking into consideration the capital market trends and the possible dilution of investment units.

■Debt Financing

(1) Stable financing operations
  DHR aims to structure solid lender formation.
DHR seeks to lengthen and diversify the repayment terms to achieve stability.
(2) LTV standard
  DHR has set an upper limit of 60% as a general rule for the LTV ratio (percentage of outstanding loans and investment corporation bonds to total assets)
(3) Limits and lenders of the loans
  In general, DHR intends to obtain unsecured and unguaranteed financing.
The maximum amount of each loan and investment corporation bond is \1 trillion. The sum of such debt shall not exceed \1 trillion. DHR will select lenders capable of continuous and stable transactions.
(4) Commitment lines
  DHR may enter into commitment line agreements to ensure borrowing in advance or enter into reservation agreements to procure funds.
(5) Investment corporation bonds

DHR may issue investment corporation bonds after taking extensive consideration for interest rates and financing costs, etc.

■Derivative Transactions

DHR may enter derivative transactions for the purpose of hedging interest rate fluctuation risks and other risks.

■Cash Management

DHR will hold an amount of cash and cash equivalents deemed appropriate to meet its expected financial needs at all times. DHR may also use tenant leasehold and security deposits.

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