Financial Strategy

Concerning financial activities, which is key in management for increasing unitholder value, NAF conducts strategic and conservative financial management in order to realize efficient and low-cost financing and maintain high issuer ratings.

Procurement of Funds

Issuance of Investment Units

NAF may flexibly issue additional units with the objective of financing acquisition of assets, renovation, and other capital requirements for operation, or to repay debt, including lease deposits, security deposits, loans, and bonds that NAF may have issued.

Debt Financing

In light of the conditions outlined below, NAF may procure loans from financial institutions. Moreover, investment corporation bonds may be issued for the same purpose.

Loans Investment corporation bonds
Use Acquisition of assets, renovation, and other capital requirements for operation, payment of distributions, or repayment of debt
Maximum amount To not exceed 1 trillion yen in total
Lender Qualified institutional investor as defined in the Special Taxation Measures Law
Collateral Assets under management may be used as collateral

Procurement Policy

Conservative Management

The target upper limit of NAF’s interest-bearing debt against total assets (LTV) is 60%. The LTV may, however, exceed 60% temporarily due to acquisition of assets. Conservative management will be implemented, and past LTV performance is as shown below.

Change in LTV


Agile Procurement

NAF will consider appropriate procurement methods and exercise agile procurement of funds in accordance with the need for funds for acquisition of assets or repayment of loans. We will aim to procure funds with the most advantageous conditions backed by the highest-level credit rating for residential J-REITs.

Risk Preparedness

As a countermeasure against the future risk of rising interest rates, NAF actively acquires long-term, fixed-rate loans as well as diversifies repayment dates in procuring interest-bearing debt. We also have commitment line agreements of a certain amount in preparation for when a temporary need for funds arises.