Japan Senior Living Investment Corporation

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Characteristics & Strategy

Internal Growth Strategy

Stable Cash Flow through Long-Term Fixed-Rent Lease Agreements

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 February 28, 2017

Lease Agreement Period (by acquisition price)
Average leasing period
23.8 years
Lease Agreement Period
Remaining (by acquisition price)
Average remaining period of lease
16.7 years
Fixed-Rent Ratio (by acquisition price)
Fixed-rent ratio
100.0%
*
In cases where multiple tenants occupy an acquired asset, calculations will be based on the lease agreement with the operator of the main tenant.

Will realize steady revenues based on systematic monitoring, and will maintain property competitiveness based on appropriate maintenance

Portfolio Management Performance

*1
“Actual occupancy rate (Based on end-tenants),” “Revenue,” “Moving in,” and “Moving out” are based on data from materials submitted by the operators. However, the data of “Granda Mondo Yakujin” were not disclosed because the operator did not authorize such disclosure, and accordingly were not included in the respective data items. “Revenue” represents the value of the total revenue of senior living facilities, excluding “Granda Mondo Yakujin.
*2
“Actual occupancy rate (Based on end-tenants)” = “Total no. of tenants in portfolio” divided by “Total no. of rooms” (rounded to the first decimal place)
*3
A simple average of the actual occupancy rates (Based on end-tenants) during the six months from Jul. to Dec. 2016 is presented.
*4
Total “Moving in” and total “Moving out” were divided by the total capacity (during the six months from Jul. to Dec. 2016), and then annualized for presentation.
*5
“Average nursing level” and “Average age” are as of the end of Jun. 2016 based on data from materials submitted by the operators.
No Operator Established Sales
(million
yen)*1
Facilities
operated*2
Capacity
(No. of
rooms)*2
Listed/unlisted
1 Activa Co., Ltd. December 28, 2016 –*3 1 445
(384)
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
*4
75 4,870
(4,741)
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 882 1 263
(232)
Unlisted
4 Hasegawa Care Service Co., Ltd. November 1, 2006 19,139 119 6,547
(6,524)
Unlisted
5 Social Welfare Corp. Note Fukushi Kai June 13, 1983 5,814 41 1,501
(803)
Unlisted
6 Sompo Care Next Inc. November 11, 1992 35,535 116 8,769
(8,507)
Subsidiary of Sompo Japan Nipponkoa Holdings, Inc., which is listed on the first section of the Tokyo Stock Exchange
7 Benesse Style Care Co., Ltd. September 7, 1995 93,601 305 17,037
(16,385)
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 10 925
(508)
Unlisted
9 Sawayaka Club Co., Ltd. December 1, 2004 13,195 66 4,183
(4,156)
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. August 2, 2004 3,036 42 1,642
(1,220)
Unlisted
11 Silver Town Ltd. February 25, 2002 153 3 188
(178)
Unlisted
*1
The figures for "sales" are based on the information obtained by JSL as of March 31, 2016. However, NM LIFE Co., Ltd. is as of December 31,2016, Hasegawa Care Service Co., Ltd. is as of September 30, 2016, Excellent Care System T Co., Ltd. is as of July 31, 2016 and Silver Town Ltd. is as of August 31, 2016.
*2
The figures for "facilities operated" and "no. of room (capacity)" are as of December 31, 2016. However, BenesseStyle Care Co., Ltd.is as of January31, 2017.
*3
Since Activa Co., Ltd. started its business on February 28, 2017, the figure for sales is indicated as "-".
*4
The sales figurefor Nichii Carepalace Company is not disclosed because the company did not authorize such disclosure.
*5
Activa Biwa was succeeded to the status of operator from UNIMAT Retirement Community Co., Ltd. to Activa Co., Ltd. on April 1, 2017. (100% subsidiary of Resorttrust Inc.)

The Highly-Specialized, Abundantly Experienced Members of
Our Asset Manager

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.

Stable Earnings through Appropriate Monitoring

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.

Monitoring Operators/Suggesting Improvements

Backup Operation Functions

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.

*
Trust Garden is an affiliated company of Activa Co., Ltd. and 100% subsidiary of Resorttrust, Inc.