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On investment in real estate assets, United Urban endeavors to secure steady earnings over the medium to long term. To this end, United Urban is going to establish and develop an optimal investment portfolio of real estate assets both in use and location in tune with economic conditions and real estate market trends. Also United Urban makes every effort to minimize risks. United Urban would like to build up a comprehensive investment portfolio by investing in real estate assets in various types of use in various areas of locations as described below.
Type of Use of Real Estate Assets
United Urban shall invest primarily in real estates such as retail properties, office buildings, hotels, residential properties and others.
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Revenues obtained from real estate investment and management concentrated on specific property types may be impacted largely when the markets of the property types become stagnant. Accordingly, United Urban aims to secure steady earnings and reduce risks inherent to real estate market conditions of specific types of use by diversification of investment in property types.
⇒For details please refer to "Type of Use" page.
Area of Location
United Urban shall invest in real estates located in the Tokyo Metropolitan Area and other major cities in Japan including government designated cities, and surrounding areas thereof.
Revenues obtained from real estate investment and management concentrated on specific regions may be impacted largely by earthquakes and other natural disasters as well as local economic conditions. Accordingly, United Urban invests in diversified regions in order to secure steady earnings and reduce the risks of natural disasters and other such events in specific regions.
⇒For details please refer to "Investment Area" page.
Advantages of the Portfolio United Urban Aims to Build
United Urban believes that the portfolio structure we aim to build has the following advantages.
| Stability of Earnings | Growth Potential |
|---|---|
| The impact from changes in the market environment for specific property types and regions can be flattened. The relatively stable earnings over the medium to long term can be realized in avoidance of the excessive concentration. In addition, we believe that a certain level of diversification in the location areas makes it possible to reduce risks related to natural disasters and other events. | Investing in real estate on various property types or geographical location areas can lead to plenty of opportunities to acquire profitable properties. As such, we are able to purchase real estate optimal for our portfolio by analyzing and screening of individual candidate properties. |
Capabilities of an Asset Management Company for Building up an Optimal Portfolio
The management and senior staffs of the asset management company, Japan REIT Advisors Co., Ltd. ("JRA"), comprise the following:
- Personnel from the Marubeni Group with extensive expertise in the filed of real estate, including its development, purchase, management and sale
- Personnel with comprehensive investment experience gained in financial institutions
United Urban is confident that, it is able to build up an optimal investment portfolio with these experts who are engaged in the conduct of its asset management activities as core members.
| 50% Rule | United Urban's investment policy of maintaining the ratio (appraisal base) of investment in properties in the Tokyo Metropolitan Area (Note 1) more than 50% of its entire portfolio |
|---|---|
| 60% Rule | United Urban's investment policy of maintaining the ratio (appraisal base) of investment in properties in each type of use less than 60% of its entire portfolio |
| 1/3 Rule | United Urban's investment policy of maintaining the ratio (appraisal base) of any single regional economic zone except Tokyo Metropolitan area (Note 2) less than 1/3 of its entire portfolio |
| (Note 1) | "Properties in the Tokyo Metropolitan Area" refers to properties located in the Tokyo Metropolitan Area, which comprises the eight prefectures of Tokyo, Kanagawa, Chiba, Saitama, Ibaraki, Gunma, Tochigi and Yamanashi. |
| (Note 2) | A "regional economic zone" indicates an economic zone comprising a single major city (or plural major cities) and surrounding cities, where the economic conditions and the real estate market trends of the major city (or cities) having a strong impact on the entire zone |
Restrictions under the Articles of Incorporation of the Investment Corporation
United Urban may not invest in real estates (including real estate etc. other than real estate and real estate-backed securities), which are not located in Japan.