Securing stability is the act of securing stable earnings and dividends (distributions) primarily through the following.

Areas where investment targets are located and risk-return characteristics of properties

TOKYU REIT shall limit investment target areas to areas that are considered relatively low in risk. Based on this assumption, it shall make as its investment targets, properties which have relatively low fluctuations in rental income and occupancy rates and that are expected to generate stable profitability. Thereby, TOKYU REIT shall strive to carry out stable management. Although it is possible that certain properties may generate high capital gains, TOKYU REIT in principle does not intend to make properties with greater fluctuations in profitability its investment targets.

Aversion of development risk

TOKYU REIT, in principle, does not invest in properties that are under construction and not yet in operation. Development risks borne in the development business or as a developer shall be borne by Tokyu Corporation and its subsidiaries or other third parties. TOKYU REIT plans to secure opportunities to acquire properties after making sure that any development risks that may be borne are averted.

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