Home > Kenedix Realty Investment > Core Strategies > Internal Growth
Kenedix Realty Investment Corporation (KRI) aims to maximize profitability of its current properties through a comprehensive strategy that maintains or increases revenues from its assets. The importance we place on tenant satisfaction is illustrated through our tie-up with J.D. Power, the global consumer market research powerhouse. This focus on tenants ensures stable occupancy rates and cultivates long-term relationships. Intrinsically related to tenant satisfaction, quality maintenance services and renovation projects heighten the attractiveness of properties and raise asset values, in turn drawing higher-tier tenants and enabling rent increases when appropriate. Centralized property management and scale merits as well as our expertise in managing mid-sized office buildings effectively reduce property management and operating costs without sacrificing service quality. The synergies of each facet of our overall internal growth strategy support our overall efforts to strengthen the performance of our current portfolio for investors and each individual property for its tenants.
Tenant Satisfaction
At KRI, we understand the importance of keeping tenants satisfied. Our focus on mid-sized office buildings has enabled us to get to know our customer base and develop quality services that accurately reflect tenant needs and attributes as well as the unique characteristics of the properties they occupy. As tenant satisfaction is a key facet of the primary goal of our property management strategy to increase revenue, we administer detailed tenant surveys periodically to measure satisfaction on a variety of issues including facility quality, renovation projects and rent levels, and we then adjust our property management activities accordingly. Our tie-up with market research specialists J.D. Power will help to improve the quality of these surveys as well as strengthen our efforts to identify and respond to our own tenants' needs as well as anticipate movements industry-wide. We also conduct flexible leasing activities that promptly match shifts in tenant trends and fluctuations in the leasing market to generate maximum rental revenues and increase overall revenue without compromising tenant satisfaction.
Proportion of Responses in Customer Satisfaction Results
(＊ Result of 3rd survey to administrations)
Changes In Occupancy Ratio for Office Portfolio
(As of April 30, 2011)
Annualized Turnover Ratios for Office Buildings (Actual or Forecasted)
Cost-Effective Management
KRI aims to maintain a balance between initiatives that sustain or increase revenues and its efforts to maximize earnings through the reduction of expenses, including overhead and operating costs. In our efforts to cut costs while continuing to provide quality services to our tenants, KRI is also making an effort to consolidate the day-to-day management of its properties among a small number of companies in order to respond more quickly to tenant needs while minimizing costs in building management through a synthesis of services and negotiating scale merit. We also take steps to ensure expenditure based on that property management remains focused on overall performance of our assets by linking part of the property manager's compensation to real estate operating revenues.
KRI has charged Kenedix REIT Management, Inc. with the management of all properties. Kenedix REIT Management, Inc. was chosen as the sole property manager based on a variety of factors including track records, information network and relationships with related companies. Kenedix REIT Management, Inc. is a company well versed in property management, tenant trends, and the specific characteristics of our core focus of mid-size office properties. KRI enjoys high-quality services that satisfy the needs of both our tenants and investors by contracting these services to a company that shares our principles and standards of judgment.
Five-Year Energy Reduction Plan
