Financial Strategy / Governance System

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LTV control to maintain stable and sound financial operations and increase investor value

The basic financial strategy is to conduct stable and sound financial operations, with the aim of maintaining and increasing revenue, growing the size of assets under management and increasing investor value over the medium- to long-term. With respect to LTV, we will set 60% as a rough indication of the upper limit (however, LTV may exceed 60% temporarily due to the acquisition of new investment real estate, etc.) and conduct financial operation, with 50% as a rough indication for the upper limit in normal time.

Building a strong financial position

Basic policy on debt finance
Best mix of short-term and long-term loans Diversification of repayment dates Diversification of bank formation

We aim to

  • Mitigation of refinancing risk
  • Reduction funding costs
Status of Loans and Bonds
List of Loans and Bonds

Integrating the interests of investors and sponsors

Same-boat investment by the Mori Trust Group

As of February 28, 2019

Holding 36.8% of the number of investment units outstanding for MORI TRUST Hotel Reit

Countermeasures against conflicts of interest and the adoption of an operation system to secure impartiality

The Asset Management Company appoints outside specialists as members (outside members) of the Investment Committee and the Compliance Committee.
When the acquisition of an asset becomes a transaction with a related party, the approval of the outside committee members within the Compliance Committee and the Investment Committee and the approval of the Board of Directors of MORI TRUST Hotel Reit are required.

Decision-making flow of the Asset Management Company in related party transactions

Decision-making flow of the Asset Management Company in transactions with interested parties

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