Sekisui House Reit will conduct stable and sound financial operations in order to secure stable earnings over a medium to long term and enhance unitholder value.
Sekisui House Reit is resolved to conduct optimum cash management in order to enhance the efficiency of funds operations.
Specifically, Sekisui House Reit will allocate funds to the following subjects
- New real estate investments
- Appropriate maintenance, management and repairs of properties to enhance their competitiveness
- Reduction of cost of debt through repayment of interest-bearing liabilities
- Payment of distributions in excess of earnings
Furthermore, Sekisui House Reit has established the following three fundamental policies regarding cash management.
- Sekisui House Reit shall always hold what is considered to be an appropriate amount of cash and deposits in order to cover expected funding needs.
- Surplus funds shall be managed carefully by taking into account such factors as safety and liquidity, as well as market conditions and funding conditions of Sekisui House Reit.
- The tenant leasehold and security deposits Sekisui House Reit receives from its tenants may be utilized as working funds.