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  2. About JLF
  3. JLF’s Strengths
  4. Financial Strategy

Financial Strategy

A Strong Financial Standing that is Top-Class among J-REITs

JLF was the only J-REIT to launch its IPO solely with equity financing raised from the issuance of its investment units, using no debt financing. Still today, JLF boasts the lowest level LTV among J-REITs and the highest level issuer’s rating. To achieve JLF’s goal of achieving the stable distribution of cash and sustainable growth, financing means are selected to build up a strong financial position.

the lowest level LTV among J-REITs

(%)
*1 LTV (%) = (Interest-bearing Debt ÷ Total appraisal values of properties held) x 100
*2 As of October 31, 2017

Reductions of dividend decrease risk of interest rates riging / Property acquisition utilizing LTV capacity

the highest level issuer’s rating

Rating and Investment Information, Inc. (R&I) 
AA
(Outlook: Negative)
Moody’s Japan K.K. (Moody’s) 
A1
(Outlook: Negative)
Japan Credit Rating Agency, Ltd. (JCR)
AA+
(Outlook: Stable)
※ The World Highest Moody's Credit Rating in Real Estate Sector
The Highest Credit Rating among Real Estate / J-REIT Sector in JCR

Cash Management Strategy

In the logistics facilities that meet JLF’s investment criteria, the building’s value typically accounts for a large proportion of the acquisition price compared to the land value. As a result, compared to office buildings and similar assets, depreciation costs on JLF’s logistics facilities tend to represent large sums. Based on the following cash management strategy, JLF aims to leverage retained earnings equivalent to depreciation costs to provide added value to our unitholders.

Cash Management Strategy

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