Daiwa House REIT

TSE code : 8984

Font Size
S
L

JAPANESE

  1. HOME
  2. Features of DHR
  3. Portfolio Management Policy

Portfolio Management Policy

Investment Target

DHR’s investments focus on logistics properties, residential properties, retail properties, and hotels (the “Core Assets”). DHR is also able to invest in other real estate asset types such as offices and healthcare properties (“Other Assets”).

■ Core Assets

Core Assets

■ Other Assets

Other Assets

Investment Area

Investments are mainly focused in the three major metropolitan areas.

Area Location Investment ratio
Three metropolitan areas The greater Tokyo area:
Tokyo, Kanagawa, Saitama and Chiba prefectures
70% or more
The greater Nagoya area:
Aichi, Gifu and Mie prefectures
The greater Osaka area:
Osaka, Kyoto, Hyogo, Nara and Shiga prefectures

Investment Area

Investment amount per property

Minimum investment amount per property JPY 1 billion or more in principle
Maximum ratio of investment in any one property to the portfolio as a whole 30% or below in principle

Investment standards for each asset type

Logistics properties

1. Categories

DHR invests in logistics properties in the following two categories.

Type BTS (Build-to-suit) type Multi-tenant type
Outline Logistics properties customized to tenant needs, while maintaining general versatility to accommodate successor tenants in the future Logistics properties located on sites suitable to the logistics needs of various businesses with optimal scale, grade and facilities for their respective site
2. Evaluation criteria and selection standards

DHR assesses properties on their location and other features, including whether they allow for efficient logistics and rapid adoption to market trends within the supply chain of procurement and production to sale and consumption, and invests in properties with a high level of competitiveness and stable income over the medium to long term.
DHR mainly invests in high-performance logistics properties (logistics properties located in areas DHR considers especially suited to logistics, and with facilities and specifications that meet DHR’s competitiveness criteria).

Type BTS (Build-to-suit) type Multi-tenant type
Location
Accessibility to production and consumption areas
Accessibility to transportation such as airports, harbors, highways, etc.
Ease in securing workforce and convenience in commuting for employees
Location’s natural and other surrounding environment
Size
Gross floor area of 6,000 ㎡ or more
Contract terms
Rental rate
Rental term and remaining term in the current lease
Security deposit amount
Provisions for early termination
Tenants
Business category
Tenant composition
Required leased area
Stability of rental revenues
Creditworthiness
Competitiveness
Facilities and other specifications
Connected car berth
Floor weight capacity (1.5 t/m2 or more)
Floor height
Ceiling height (5.0 m or more)
Pillar interval spacing (8.0 m or more)
Air conditioning equipment and lighting
Elevators and vertical carrier machines
Presence of offices and lounges
Working environment
Parking lot
Overall versatility of the facilities

Residential properties

1. Categories

DHR invests in residential properties in the following two categories.

Type Compact (C) Family (F)
Outline Residences designed for single- and two-person households to suit their lifestyles, etc. Residences designed for families to suit their life styles, etc.
2. Evaluation criteria and selection standards

DHR invests in properties that will provide stable income and growth potential. DHR determines such properties by comprehensively assessing, among other things, the demand for rental property in the local area, the properties’ competitiveness and the sustainability of competitiveness in the future, the competitiveness of the property in the market area, adequacy of the contracted rent, and the status of nearby competing properties.

Type Compact (C) Family (F)
Location
Proximity to the nearest train station
Wide variety of options available regarding life style (i.e. proximity to business districts, parks, cultural facilities, broad commercial center, amusement areas, etc.)
Located in a quiet residential area
A full array of cultural facilities
Lifestyle convenience (proximity to neighboring retail properties, cultural facilities, sports facilities, etc.)
Dedicated area
60 ㎡ or less
More than 60 ㎡
Size
Gross floor area of 660 ㎡ or more
Contract terms
Rental rate, market rent, occupancy rate
Rental term in the current lease
Security deposit amount
Tenants
Creditworthiness and rent payment status
(Individual) joint guarantors or guarantor company
Purpose of use
Checks on tenants belonging to anti-social forces
Facilities and other specifications
Floor plan and composition ratio by type
Ceiling height
Interior specifications (ceiling, wall, floor, etc.)
Exterior specifications (exterior wall, rooftop, stairs, corridor, etc.)
Sanitary equipment
Air conditioning equipment
Electronic equipment
Security equipment
Common facilities (Elevators, corridors, car parking lot, bicycle parking lot, garbage collecting points, etc.)
Broadcast receiving equipment
Administration office

Retail properties

1. Categories

DHR invests in retail properties in the following three categories.

Type Mall type (Note) Roadside type Urban type
Outline Enclosed or open malls located along a main highway or residential road Single retail properties or retail complexes consisting of independent stores located along a main highway or residential road Retail properties located near terminal stations or in popular urban districts
Note: Enclosed malls are shopping malls that contain all stores in a single building around an air-conditioned mall center, while open malls are open-air shopping malls, including malls covered by a canopy top, that connect stores outside of a building.
2. Evaluation criteria and selection standards

DHR invests in properties that will provide stable income and growth potential. DHR determines such properties by comprehensively assessing, among other things, the properties’ competitiveness and the sustainability of competitiveness in the future, stability and growth of the market area, competitiveness of the property in the market area, creditworthiness of tenants, adequacy of the contracted rent and the potential for opening a store near competing properties.
DHR mainly invests in specialty retail complexes (commercial properties which DHR believes are in a favorable location as a market area, with specialty store as core tenants whose products and services are broadly recognized by consumers in the relevant region, and with tenant businesses of categories and sizes well suited to the consumer characteristics and purchasing power of the region. Such properties house relevant specialty stores and may be a part of larger retail complexes that are integrated with multiple commercial facilities in the surrounding area.).

Type Mall type Roadside type Urban type
Location
Accessibility from main highways or residential roads
Visibility of the entire building
Superiority in scale within the market area
Accessibility from main highways or residential roads
Visibility of the entire building
Number of passengers passing through the nearest station
Congestion and continuity of the neighboring urban area
Size Gross floor area of 8,000 ㎡ or more Gross floor area of 3,000 ㎡ or more Gross floor area of
500 ㎡ or more
Contract terms
Rental rate
Rental term and remaining term in the current lease
Security deposit amount
Provisions for early termination
Tenants
Business category
Tenant composition
Required leased area
Stability of rental revenues
Creditworthiness
Competitiveness
Strength of brand name
Ability to attract customers
Facilities and other specifications
Floor shape, customer pathway
Capacity for utilities such as electricity, water and gas
Air conditioning equipment and lighting
Interior and exterior appearance
Elevators and escalators
Parking lot
Overall versatility of facilities

Hotels

1. Categories

DHR does not categorize the hotels in which it invests.

2. Evaluation criteria and selection standards

DHR invests in properties that will provide stable income and growth potential. DHR determines such properties by comprehensively assessing, among other things, the properties’ competitiveness and the sustainability of competitiveness in the future, stability and growth of the location area, creditworthiness of tenants, and adequacy of the contracted rent.

Location
Accessibility to airport terminals, train stations, and other means of transportation
Placement and proximity of business districts, amusement areas, tourist facilities, leisure facilities, etc.
Visibility of the building
Size Gross floor area of 3,000 m2 or more
Contract terms
Rental rate
Rental term and remaining term in the current lease
Security deposit amount
Provisions for early termination
Tenants
Level of main operational indices (ADR (see note below), sales and occupancy rate, etc.)
Stability of rental revenues
Creditworthiness
Competitiveness
Strength of brand name
Ability to attract customers
Facilities and other specifications
Number and area of guestrooms
Guestroom types and composition ratio by type
Floor shape, customer pathway
Capacity for utilities such as electricity, water and gas
Air conditioning equipment and lighting
Interior and exterior appearance
Elevators and escalators
Parking lot
Overall versatility of facilities
Note: “ADR” is the average daily rate per guestroom, which is calculated by dividing total guestroom revenue by the number of guestrooms sold.

Other Assets (office buildings, healthcare properties, etc.)

Considering the fact that Other Assets have various types and that investment criteria and standards will vary in accordance with the different types of Other Assets, specific evaluation criteria and selection standards are not set for each type; investments to each of those properties will be decided upon comprehensive consideration of the regional characteristics arising from location-specific features, ease of securing alternative tenants, overall versatility of facilities, etc.

Back to Top