Daiwa Securities Living Investment Corporation (8986)

Overview

Daiwa Securities Living Investment Corporation, also referred to as the Investment Corporation, embarked on a journey as a publicly traded entity on the Tokyo Stock Exchange in June 2006, under the stock code: 8986. Predominantly operating within the metropolitan regions and various major cities across Japan, such as Sapporo City, Sendai City, Nagoya City, Osaka City, and Fukuoka City, it specializes in rental apartment real estate investment trusts (REITs). The acquisition of Prospect Reit Investment Corporation in July 2010 marked a significant milestone, enabling the Investment Corporation to actively engage in portfolio management including the acquisition of new properties and the sale of existing ones. This strategic approach, reinforced by the managerial prowess of its asset management company, Daiwa Real Estate Asset Management Co., Ltd., has led to an enhancement in distributions through key initiatives such as property replacement, operation reinforcement to achieve high occupancy rates, and various cost reductions. A notable development in December 2015 saw Daiwa Securities Group Inc. acquiring additional shares of the asset management company, establishing a new sponsorship and promising sustainable, stable growth supported by a sponsor-support agreement with Daiwa Securities Group’s headquarters. The Investment Corporation remains committed to maximizing investor profits, seeking continued support and rewards from its investors.

Products and Services

• Rental Apartments REIT

  As a specialized Real Estate Investment Trust focusing on rental apartments, the Investment Corporation targets key urban and metropolitan areas in Japan. This includes cities like Sapporo, Sendai, Nagoya, Osaka, and Fukuoka among others. The properties within its portfolio are strategically selected and managed to meet the high demand for rental housing in these populous regions, ensuring steady revenue generation and growth potential for the fund and its investors.

• Property Portfolio Management

  Following its merger with Prospect Reit Investment Corporation in 2010, the Investment Corporation has honed its ability to manage its property portfolio through active replacement strategies. This encompasses both the acquisition of new properties that demonstrate potential for high returns and the sale of existing properties to optimize the portfolio's performance. Through such dynamic management, the Investment Corporation aims to maintain a competitive edge in the real estate market, ensuring profitability and sustainability.

• Operation Reinforcement and Cost Reduction

  Operation reinforcement is a crucial aspect of the Investment Corporation’s strategy, aimed at achieving high occupancy rates and thereby maximizing revenue from its rental apartment operations. This is complemented by various cost reduction measures, including but not limited to, efficient property management and streamlined operational practices. Such initiatives are imperative for enhancing distributions to investors and ensuring the financial health and growth of the REIT.

• Sponsor Support from Daiwa Securities Group Inc.

  In 2015, the investment landscape of the Investment Corporation saw a significant shift with Daiwa Securities Group Inc. stepping in as a new sponsor. The reinforcement of this relationship through a sponsor-support agreement ensures that the Investment Corporation has the backing of a robust financial entity. This support not only amplifies the management's ability to execute its strategic initiatives but also positions the REIT for sustainable and stable growth, aligning with its goal of maximizing investor profits with the backing of a solid sponsor.