Investor Presentaiton
Strategic Cash Management and a Stable Financial Position
Strategic Cash Management
/EON
イオンリート
In the large-scale retail properties that we target for investment, the depreciation expense accounts for a large percentage of the property value.
By deploying internal reserves in an amount equal to the depreciation expense, we plan to increase capital efficiency and stabilize cash flow.
(1) Investment contributing to
an increase in income
a. Appropriation of funds to acquire new properties
b. Investing in revitalization of property to boost
revenues and competitiveness
(2) Measures aimed at
stabilizing financial
position
c. Reduction in the cost of our debt by repayment of
interest-bearing debt
Growth
driven by
efficient
use of
capital
(3) Capital strategies that
protect unitholder
interests
d. Distributions in excess of earnings
e. Increased capital efficiency through unit buy-backs
Stable Financial Position
LTV (Note)
Extension of debt maturities &
fixing of interest rates
Mix of lenders
Policies
Maintain leverage with an LTV of 40-50% range
Set loan terms according to the status of cash flows based on tenant lease terms and content
Achieve appropriate diversification of different lender financial institutions, primarily megabanks
(Note) LTV Total remaining interest-bearing debt plus tenant leasehold and security deposits (including tenant leasehold and security deposits in trust) for the assets held by AEON REIT Investment Corporation.
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