| (1) |
Basic Policy |
| ADR strives to achieve external growth through property acquisitions, while maintaining flexible funds procurement and sound financial standing. |
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| (2) |
Policy on Management of Cash and Deposits |
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To be able to respond to repairs, the payment of dividends, the purchase of properties and various other capital needs, ADR constantly sets aside cash and deposits of an amount thought to be appropriate in consideration also of the line of credit and other arrangement conditions. In addition, for the purpose of managing idle funds, ADR may invest into marketable securities or monetary claims while placing importance on security and liquidity. |
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| (3) |
Borrowing of Funds and Floating of Investment Corporation Bonds |
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- Funds will be borrowed and investment corporation bonds (including short-term investment corporation bonds; the same hereafter) floated, while maintaining a balance between short-term and long-term, floating and fixed interest rate, secured and non-secured, etc. and while capitalizing on creditworthiness through the acquisition of credit ratings.
- The balance of loans and investment corporation bonds will be targeted to account for no more than 60% of the total amount of ADR's assets.
- In the selection of lenders, the decision is made based on a comprehensive evaluation that involves negotiating the loan period, interest rate, provision of collateral, fees and various other terms and conditions with several financial institutions and comparing with market rates. Furthermore, lenders are limited to qualified institutional investors as defined in Article 2-3-1 of the Financial Instruments and Exchange Law.
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| (4) |
Issue of Additional Investment Units |
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In pursuit of long-term and stable growth, additional investment units are issued with due consideration to the dilution of investment units. |
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| (5) |
Other |
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ADR ensures the sum total amount of the amount of specified real estate (refers to real estate, leasehold rights to real estate, surface rights, and beneficiary interests in trust that places leasehold rights to real estate and land and surface rights in trust) accounts for 75% or more of the sum total amount of specified assets held by ADR. |
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