Stable and Sound Financial Management
SAR seeks to establish a stable and sound financial base with an aim to achieve maintenance/expansion of income over the medium- to long-term as well as growth of the managing asset size.
■ Basic Policy on Financial Management
| Equity finance |
The purpose of issuing new investment units is to achieve growth of the managing asset size and unitholders’ value, and due consideration will be given to dilution of existing unitholders’ rights, trend of the unit price in line with the dilution, etc.
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| Debt finance | Upon making borrowings and issuing investment corporation bonds (including short-term investment corporation bonds), due consideration will be given to the balance between the mobility of fund procurement and financial stability as well as to the distribution level. Specifically, the ratio of long-term loans, ratio of loans with fixed interest rates, diversification of maturity, fund procurement means (loans/investment corporation bonds), lender diversification, setting of commitment lines, etc. will be discussed. |
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| LTV | LTV will be controlled with consideration to available fund capacity mainly for making new property acquisitions. A targeted ceiling for LTV is set at 60% under the asset management guidelines. | ||
| Cash management | Effective and proper cash management will be conducted by accurately understanding demand for funds in the portfolio through constant monitoring. |
■ Pursue Unitholder Return through Acquisition of Treasury Investment Units and Optimization of Capital Cost
| ● | SAR regards the acquisition of treasury investment units by investment corporations, the ban for which was removed in the 2013 revision of the Act on Investment Trusts and Investment Corporations, as an important means in its capital policy. |
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| ● | In the future operation of SAR, the change in investment unit price will be closely watched and in case the level deviates from the level SAR considers appropriate, acquisition of treasury investment units may be considered from the perspective of properly controlling unitholder return and capital cost. |