Mitsubishi Estate Logistics REIT Investment Corporation



Font Size

Financial Strategy

  1. Home
  2. Features and Strategies
  3. Financial Strategy

MEL aims for financial management with emphasis on soundness and LTV control and also efficient cash management.

Financial Management with Emphasis on Soundness and LTV Control

MEL executes a financial strategy with emphasis on agility and soundness, taking into consideration the securing of stable profit over the medium-to-long-term, steady growth in size of assets under management and stability of management.

Debt financing Borrowings shall be made in due consideration of the balance between long-term and short-term borrowing periods, fixed and floating interest rates, etc. and also staggering of maturities, etc. In addition, diversification of fund procurement means through issuance of investment corporation bonds shall be considered while looking ahead to future market conditions, etc.
LTV level In order to secure acquisition capacity of a certain level that would facilitate property acquisition with agility using borrowings, management shall be based on a target LTV of a 40% to 50% range under the basic policy of maintaining the LTV at a conservative level.

Cash Management: Policy on Utilization of Depreciation

Logistics facilities generally tend to have high building ratio and large depreciation on the one hand and low equipment ratio and limited capital expenditures on the other hand in comparison with other assets. In light of such features, MEL strives for maximization of unitholder value by implementing surplus cash distributions under certain rules from the perspective of securing a stable distribution level.

Continually implement surplus cash distributions every fiscal period in principle, with the amount equivalent to 30% of depreciation as the target amount

Related Links
Financial Highlights
Borrowings/Investment Corporation Bonds
Credit Rating