Home > Asset Manager > Policy Statement
The unique structure of Japanese real estate investment trusts (J-REITs) in Japan requires that an investment corporation be established as a fund vehicle and a separate asset manager be established and entrusted with managing the portfolio's assets and developing a financial strategy. This is known as external management and in this structure Kenedix REIT Management, Inc. (KRM) is the asset manager for Kenedix Realty Investment Corporation (KRI), which is the legal owner of the assets.
KRM was established through the sponsorship of Kenedix, Inc., one of the first companies to securitize real estate and provide real estate services in Japan. As one of a limited number of professional teams that boast specialized know-how in both real estate and finance, Kenedix, Inc. and its partners have earned the confidence of domestic and overseas investors based on their established track record in both the real estate and REIT markets in Japan. KRM provides asset management services from the investor's perspective and has significantly contributed to increased liquidity in the Japanese real estate market.
The role of J-REITs as managers of mutual funds of securitized real estate in contrast to the emphasis of many overseas REITs as property developers places more importance on a J-REIT's ability to maintain an effective portfolio of assets through an accurate and flexible investment strategy, prudent financial policy, practical experience and trusted recognition in the real estate market. KRM pursues a policy of optimal portfolio management for securing medium- and long-term profits with a suitable risk and return balance. This is achieved by effectively applying the resources and strengths of the Kenedix Group and KRM's asset and property management expertise in office buildings.
KRI focuses on mid-sized office buildings in the Tokyo Metropolitan Area because of numerous benefits in this promising sub-sector, including an abundance of acquisition opportunities in the Tokyo Metropolitan Area, strong tenant demand, unparalleled tenant diversity as well as the Kenedix Group's expertise and track record in this sector. This core focus has also enabled the consolidation of asset management services, property management and leasing management, resulting in significantly lower overall expenditures, as well as efficiency and economy of scale from a large portfolio.
KRM possesses a unique ability to accurately identify highly competitive mid-sized office buildings through the proven expertise of our Group staff in this sub-sector. The company further pursues stable financial management through diversified financing methods and debt repayment periods, prudent long-term debt ratios and extending the average life of its debt, and is constantly working to establish a strong banking formation with megabanks, trust banks and the Development Bank of Japan Inc.
Accurate and reliable information disclosure through active communication among investors and management remains a priority so that investors can be properly informed. KRM has also long considered proper corporate governance to be important, and a dedicated Compliance Officer manages all compliance procedures including creation of the compliance program as well as verification that all internal rules and regulations as well as general business laws and regulations are being strictly observed.
KRM is confident in its strategy and dedicated to strengthening KRI's portfolio as a leader among J-REITs in the mid-sized office real estate market.
Naokatsu Uchida
CEO and President
Kenedix REIT Management, Inc.
Management Philosophy
