Stable cash flow through long-term fixed-rent lease agreements
Due to the strong need of operators to enter long-term fixed-rent lease agreements, we consider healthcare facility rent prices to be less susceptible to economic/market fluctuation than other types of real estate. We will secure a stable cash flow by selecting operators with proven track records in operation and, as a rule, enter into long-term fixed-rent lease agreements with them.
As of April 1, 2017
|1||Activa Co., Ltd.||December 28, 2016||–||1||445
|100% subsidiary of Resorttrust Inc. which is listed on the first section of the Tokyo Stock Exchange and Nagoya Stock Exchange|
|2||Nichii Carepalace Company||June 22, 1964||Not Disclosed||70||4,553
|Subsidiary of Nichii Gakkan Company which is listed on the first section of the Tokyo Stock Exchange|
|3||NM LIFE Co., Ltd.||October 5, 1995||894||1||263
|100% subsidiary of Iriscare Inc. which is unlisted|
|4||Hasegawa Care Service Co., Ltd.||November 1, 2006||14,047||114||6,211
|5||Social Welfare Corp. Note Fukushi Kai||June 13, 1983||5,814||41||1,461
|6||Sompo Care Next Inc.||November 11, 1992||35,535||116||8,769
|Consolidated subsidiary of Watami Co., Ltd. which is listed on the first section of the Tokyo Stock Exchange|
|7||Benesse Style Care Co., Ltd.||September 7, 1995||93,601||295||16,381
|Consolidated subsidiary of Benesse Holdings which is listed on the first section of the Tokyo Stock Exchange|
|8||Community.Net Co., Ltd.||June 24, 1998||1,370||9||869
|9||Sawayaka Club Co., Ltd.||December 1, 2004||13,195||66||4,043
|Consolidated subsidiary of UCHIYAMA HOLDINGS Co., Ltd. which is listed on the first section of the Tokyo Stock Exchange|
|10||Excellent Care System T Co., Ltd.||June 2, 2004||2,590||37||1,238
|11||Silver Town Ltd.||February 25, 2003||155||3||188
Our asset manager is primarily made up of members (personnel) with a wealth of experience in healthcare facility investment and lending within the sponsors, allowing us to use their expertise, experience and human networks to achieve cash flow stability in the medium to long term.
Communication with operators is an important element of our internal growth strategy as it is through this monitoring that we can expect stable earnings in the medium to long term.
We have agreed upon or are considering agreeing upon backup operation arrangements with certain sponsors based on sponsor support agreements and certain operators of acquired assets. These allow us to continue operation with a different operator should the management status of one operator deteriorate, etc., preserving the continued stability of our residents.