ADR will build its portfolio based on the following policy, while also taking the attributes of rental housing into account.
| (1) |
Target Investment Area |
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Investment will be conducted in a diversified manner across Japan. Investment will be made into properties located predominantly in downtown Tokyo, as well as in the Tokyo Metropolitan Area (Note 2) and Major Regional Cities (Note 3), targeting investment to account for the following percentages of the portfolio.
| Target Investment Area |
Percentage of Portfolio (Note 4) |
| Tokyo Central 7 Wards (Note 1) |
40 - 60% |
| Tokyo 23 Wards Exclusive of Central 7 Wards |
20 - 40% |
| Tokyo Metropolitan Area (Note 2) |
10 - 30% |
| Major Regional Cities (Note 3) |
10 - 30% |
| (Note 1) |
Tokyo Central 7 Wards indicates the Minato, Chiyoda, Shibuya, Shinjuku, Meguro, Setagaya and Shinagawa wards of Tokyo |
| (Note 2) |
Tokyo Metropolitan Area indicates Tokyo (excluding the Tokyo 23 wards) and Kanagawa, Saitama and Chiba prefectures. |
| (Note 3) |
Major Regional Cities exclude cities in the Tokyo Metropolitan Area. |
| (Note 3) |
Percentage of portfolio is calculated based on acquisition prices. |
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| (2) |
Residential Unit Type |
| Investment will be conducted in a diversified manner in terms of residential unit types, in accordance with the characteristics of the region, trends in social conditions and changes in rental housing demand among other factors. Investment will be made into properties designed for an array of tenants ranging from single-person households to family households, targeting investment to account for the following percentages of the portfolio.
| Residential Unit Type |
Percentage of
Portfolio (Note) |
Definition / Analysis |
| Single Type |
30 - 50% |
Definition |
Has an exclusive-use floor area of less than 30m2; and are primarily studio and 1DK type residential units designed for single-person households. |
| Analysis |
Presently forms the largest market, due to the demand being active as a result of the abolishment of corporate dormitories for single-person living, people marrying at a later stage in life and other trends, as well as in consideration of the attribute of the needs for temporary residence. |
| Compact Type |
30 - 50% |
Definition |
Has an exclusive-use floor area of 30m2 or more, but less than 60m2; and are primarily 1LDK and 2DK type residential units designed for single-person households and small family households (2 to 3 people). |
| Analysis |
Forms a promising market, in view of the trend to return to the inner city and trend for those aged in their 20s and 30s to seek a unique lifestyle, as well as due to such demand as the latent demand of the elderly. |
| Family Type |
10 - 30% |
Definition |
Has an exclusive-use floor area of 60m2 or more, but less than 100m2; and are primarily 2LDK and 3LDK type residential units designed for family households. |
| Analysis |
In the inner city, although an attractive investment target with a strong demand from mainly the well-to-do Japanese, the size of the market is relatively small.
In areas other than the inner city, as it is generally difficult to find advantages of rental housing in the present circumstances compared to for-sale and especially existing condominiums, properties that are distinct in terms of such features as location and design will be carefully selected. |
| Large Type |
０ - 10% |
Definition |
Has an exclusive-use floor area of 100m2 or more; and are primarily luxury rental residential units designed for foreigners. |
| Analysis |
The market is small and vulnerable to the trends of foreign firms among other trends.
Prime properties maintained and operated by property managers (operators) that are deemed competent will be carefully selected. |
| Dormitory Type |
No more than 20% |
Definition |
Residential properties where neither a bathing room nor laundry space are included in each unit, but rather are provided as common areas of the building. |
| Analysis |
Although versatility is lacking compared to general residential unit types, will be open to investment only when it constitutes operational rental housing as described below. |
| (Note) |
Percentage of portfolio is calculated based on the leasable floor area of each property. |
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| (3) | Incorporate Operational Rental Housing into the Portfolio |
| ADR is open to investing into properties that are operated differently from general rental housing (operational rental housing). Operational rental housing refers to rental housing offering front desk services, and meal provision and other lifestyle support. Examples are serviced apartments (refers to furnished rental housing designed for people on short-term stays; the same hereafter), corporate and school dormitories, and housing designed for the elderly. ADR adopts the policy of making investments based on a comprehensive evaluation of the acquisition, while also taking into account the following matters.
- n evaluation based on the property characteristics (location, convenience, condition of surroundings, etc.) and in light of the operational details of the property (corporate housing, dormitory, etc.) finds that needs from end users can be anticipated in the future.
- A consideration of the credibility of tenants, operational capabilities, track record, etc., premised on renting out the property in its entirety to corporations (tenants) or operators, finds that stable earnings can be secured over the medium to long term.
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