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This page explains our track records and strategy for external growth.
Through the last PO and acquisition of Tokyu Plaza Ginza (land) and other two properties, we have enhanced our portfolio grade and secured high stability.
However, given that our unit performance was unattractive, I have thought back that acquisitions in recent two years were inclined to retail properties and also I have been trying to figure out how to balance location, quality and NOI yield etc.
Based on our analysis for business environment surrounding API, we have identified as our issue the slowing DPU growth caused by lowering cap rate and external growth for asset expansion. Given that, we have set a new action plan for external growth which we have described by two points.
The first point is that we won’t define target asset size and expansion of asset size is not a priority.
Though, we continue to seek asset replacement aiming for early achievement of stabilized DPU at ¥10,000.
And for funding, we select most appropriate method considering market environment and strategic use of LTV may be an option.
The second point is enhancement of opportunities for internal growth.
We have been explaining that external growth is a seeding method for future internal growth and we would like to acquire office properties to enjoy internal growth upside, and especially a return to Greater Shibuya area is one of our main themes.
As to Tokyu Plaza Ginza, acquisition of additional share will be considered, only when contribution to growth for API can be anticipated as it is an important factor to enhance growth potential in addition to its stability.
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