Kenedix Retail REIT Corporation

Securities Code:3453

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Financial Strategy

Financial Strategy

We seek to adopt a flexible financing strategy to achieve stable medium- to long-term cash flow streams and solid growth of assets under management, and to ensure stable operations.
Equity finance We intend to strategically use equity finance from time to time by issuing new units to raise equity while giving consideration to factors such as our LTV ratio (Note), the timing for additional asset acquisitions and potential dilution to existing unitholders
Debt finance We seek to build strong relationships with major domestic banks, and intend to secure stable and efficient borrowings, taking into careful consideration our balance of short-term and long-term, fixed and floating rate borrowings, as well as the diversification of maturities
LTV ratio We have set an upper limit of 60% as a general rule for the LTV ratio in order to operate with a stable financial condition
(Note) References to “LTV ratio” are to loan-to-value ratio, or the ratio of the total amount of short-term debt, long-term debt, corporate bonds and tenant leasehold and security deposits (net amounts reserved for return of tenant leasehold and security deposits) divided by total assets as of the end of the previous fiscal period minus amounts reserved for return of tenant leasehold and security deposits.

■Tenant leasehold and security deposits

We seek to effectively utilize tenant deposits as a source of financing.

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