1. TOP
  2. About JLF
  3. JLF's Strengths
  4. Financial Strategy

Financial Strategy

A Strong Financial Standing

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. 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.

LTV

(%)
* LTV (%) = (Interest-bearing Debt ÷ Total appraisal values of properties held) x 100

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

Issuer's rating

Rating and Investment Information, Inc. (R&I) 
AA-
(Outlook: Stable)
Japan Credit Rating Agency, Ltd. (JCR)
AA
(Outlook: Stable)

Cash Management Policy

The acquisition price of logistics facilities consists of two values; building value and land value. Generally speaking, the buildings tend to have higher value compare to the land for logistics properties.
As a result, depreciation costs of logistics properties tend to be larger compared to the depreciation costs of office or other assets.
Based on the following cash management policy, JLF will strategically deploy our cash on hand equivalent to depreciation costs to provide value to our unitholders.

In our cash management policy, we utilize cash on hand in the following order of priority:

  • ①Maintenance of a solid financial base / Maintenance of the portfolio
  • ②Implementing OBR / Acquiring property
  • ③Unitholder returns (Investment unit buybacks)

Accordingly, if the investment unit price is excessively undervalued and if there is excess cash, we will consider an investment unit buyback continuously during every fiscal period according to the cash management policy above.

Cash Management Strategy

Back to Top