Characteristics & Strategy

Portfolio Structuring Strategy

The investment corporation's basic strategy for portfolio design is to consist of the rental housing sector and the healthcare facility sector in the following percentage and regional ratio.

Rental Housing Sector Strategy

1.The allocation of property types

We focus on the fact that the manner of using a rental apartment differs depending on the user's household structure, income, age and other factors, and that the demand trend also differs by the class of users. Based on that understanding, we arrive upon our investment decisions for responding to the needs of a diversified set of users by considering factors such as changes in household structure, changes in user perception toward housing and regional characteristics. It is our policy to conduct investment by selecting properties that will create a stable income and to combine the properties based on the following investment ratio. The selection is made from two categories - studio type and family type.

2.Diversified investment in rental housing across Japan, with focus on the 23 wards of Tokyo and three major metropolitan areas

Rental apartments are located nationwide based on the population distribution. We make nationwide investments in order to take advantage of steady demand for rental apartments, with a focus on the 23 wards of Tokyo and the three major metropolitan areas, to benefit from existing earning opportunities in other cities and to lower the risk of concentrated investments in any one specific area.

3.Target proportion of investment

1. Investment ratios are based on acquisition prices.
2. The three major metropolitan areas mean the Kanto metropolitan area, excluding 23 wards of Tokyo, the Chukyo metropolitan area, and the Kinki metropolitan area.
3. Other major cities mean Sapporo, Sendai, Niigata, Shizuoka/Hamamatsu, Okayama, Hiroshima, Kitakyushu/Fukuoka and Kumamoto metropolitan areas and cities with a population of 300,000 or more.

Healthcare Facility Sector Strategy

The investment corporation believes that demand for facilities and housing for the elderly will continue to increase as the aging of the population progresses and the number of single-person households for the elderly and married couples for the elderly increases.

For the time being, based on this view, the government will focus on facilities and housing for the elderly among healthcare facilities.

In addition, among the facilities and housings for the elderly, the number of facilities utilizing private funds is expected to increase significantly in the future due to the fact that it can be operated by a joint-stock company. The investment targets will be mainly fee-based nursing homes and housings for the elderly with services, which are considered to have high social demands.

1.The allocation of property types

• “Fee-based homes for the elderly” refers to facilities as defined by Article 29 of the Act on Social Welfare for the Elderly. However, this excludes facilities that fall under the category of elderly housing with supportive services.
• “Elderly housing with supportive services” refers to rental housing registered by prefectures that meet the registration criteria stipulated by the Act on Securement of Stable Supply for Elderly Persons’ Housing.
• “Incorporation ratio” is based on acquisition price (not including taxes and other expenses associated with acquisition).

2.Diversified investment in healthcare facilities nationwide, mainly in the Three Major Metropolitan Areas of the Greater Tokyo area, Chukyo area, and Kinki area

In the healthcare facilities business, we will invest in healthcare facilities nationwide from the perspective of diversifying portfolio risks, focusing on the Three Major Metropolitan Areas of Tokyo, Chukyo, and Kinki, where populations are concentrated and the elderly are expected to be concentrated.

3.Target proportion of investment

• Investment ratios are based on acquisition prices.
• “Three Major Metropolitan Areas” refers to the greater Tokyo area (Tokyo, Kanagawa, Chiba and Saitama prefectures), the Chukyo area (Aichi, Mie and Gifu prefectures) and the Kinki area (Osaka, Kyoto, Hyogo, Nara and Shiga prefectures).
• The “Core City Areas” refers to cities outside the Three Major Metropolitan Areas with populations of 200,000 or more.　
• “Other” refers to cities outside the Three Major Metropolitan Areas and the Core City Areas with populations under 200,000.