AD Investment Management (Chiyoda-ku, Tokyo), an asset management company part of the Advance Residence Investment Corporation, which specializes in residential JREIT, held an investment briefing session for individual investors.
The company currently manages 264 properties with an asset scale estimating 448.1 billion JPY. The average occupancy rate from August 2018 to the end of January was 97%, 0.5% higher than the forecast, and the rent increased by 0.38%, indicating steady progress for nine consecutive terms. As for the fluctuating rates in new contracts signed and renewals in Sapporo, Sendai, Tokyo, Nagoya, Kansai, and Fukuoka areas, the capital’s metropolitan area was the most favorable, with a 4% increase for new contracts and 0.8% for renewals. On the other hand, in the Nagoya area, new contracts decreased by 4.1% and if compared to the 3% increase in renewals, it is indeed a significantly large amount. According to the company’s analysis, there is a higher supply of apartments than the stream of the population. Properties outside the metropolitan area amount to around 20% of the whole estimate, but the intention in the future is to reduce this ratio.
President Kousaka Kenji has stated the following in regards to property acquisition: “We will not be actively acquiring new properties but only the carefully selected ones that can guarantee the yield”, and that he also plans on carrying out large-scale repair and renovation works on existing properties in the attempt to increase rent prices.