Compatibility of "Stable earnings" and "Emphasizing growth"
- Stable earnings
- We invest primarily in rental residences, which generate stable earnings.
Features of rental residences
Rental residences are generally not susceptible to changes in economic conditions and asset value, and there is downward rigidity in rents. The value of rental contracts is small, and there is dispersion in contract periods. Therefore, the risk of a rapid decline in profitability due to a sharp increase in vacancies or sharp falls in rents is relatively low.
- Emphasizing growth
- We invest in rental residences, mainly "in the Tokyo metropolitan area", "for singles and small families". These residences are likely to receive stronger demand as the number of households increases with changes in the social and economic environment.
Number of households
The number of households is expected to increase in the Tokyo area and the Tokyo metropolitan area. Due to changes in the social structure associated with the declining birth rate and the tendency to marry later, the number of singles and small families, which we target, is expected to continue to rise.