AEON REIT Investment Corporation is a REIT investing in properties forming local communities' retail business infrastructure.
We intend to invest primarily in retail and related properties that are an integral part of the communities in which they are located. We believe that these properties and facilities form the backbone of the local communities and their retail business infrastructure.
Under our portfolio composition policy below, we aim to ensure stable income in the medium to long term and steady portfolio growth by investing in retail and related properties that contribute to betterment of individual lives and local communities.
Our investment objectives focusing on large-scale retail properties and investment percentage
Of the property types, we invest in large-scale retail properties, which will comprise more than 80% of our portfolio.
While primarily investing in properties in Japan, we also plan to invest overseas.
We plan to maintain a minimum investment percentage of 85% or more for properties in Japan and no more than 15% for overseas properties.
However, these percentages may be revised in response to expansion of the asset size.
(Based on acquisition price)
|85％ or more||No more than 15％|
|Large-scale retail property||Super regional shopping center
|80％ or more|
|Regional shopping center
|Community shopping center
|Other retail property||Neighborhood shopping center
|No more than 20％|
|Logistics facility||No more than 10％|
|Note||For more information on property type, please refer to "Highly stable portfolio formed primarily from Aeon Group's large-scale retail properties."|
Investment in domestic retail properties
We will mainly invest in retail properties operated by Aeon Group within Japan. We will continue to focus on the various retail properties of Aeon Group that have generated stable revenues and steady growth.
We believe that retail property size is positively correlated with customer traffic, and that a large floor space affords the flexibility to divide the retail area into sections to maximize efficiency.
For this reason, among retail and related properties operated by Aeon Group, we plan to mainly invest in large-scale retail properties that are particularly scarce and have a comparative advantage in various locations.
Furthermore, Aeon Group has established an advanced supply chain utilizing its own logistics facilities to support the operation of retail properties and the rest of their retail business. We will also invest in logistics facilities that are closely related to Aeon Group's retail business.
We intend to invest in properties located throughout Japan to achieve a geographically diversified portfolio and avoid concentration in one region.
Investment in overseas retail properties
We intend to be the first J-REIT to invest in properties outside of Japan.
For investments overseas, our focus is to selectively invest in retail properties that are developed in countries and regions where economic growth is expected in the medium to long term. Accordingly, we intend to invest mainly in properties in the ASEAN region, including Malaysia, as well as China and other countries and regions that are expected to achieve economic development in the medium to long term due to population growth or for other reasons.
In order to minimize the investment risks in overseas properties, we execute master lease agreements whereby the entirety of the respective overseas property is leased to Aeon Group. In this way, the target of our investments will be retail and related properties that are managed and operated by Aeon Group, or that we can be assured will be managed and operated by Aeon Group.
In selecting investments, we will first consider factors such as the demographics and economic growth prospects of the country and region in which the property is located. We will then determine the properties to be acquired, upon careful consideration of factors including laws, tax regulations, political systems and cultural compatibility in the relevant country or region. In addition, we will review the risks specific to overseas properties, including (1) country risk, (2) operational risk and (3) currency risk.
Characteristics of large-scale retail properties
Large-scale retail properties are commercial complexes which generally have large parking lots, and are usually comprised of anchor tenants such as general supermarkets and large specialty stores, as well as many specialty shops.
Large-scale retail properties, with a combination of anchor tenants and specialty stores, provide a variety of stores and product choices, allowing the property to meet the needs of a wide range of age groups and customer segments. In addition, malls have pedestrian paths that allow for comparison shopping and increased customer mobility throughout the retail property, enhancing the entire retail property's ability to draw customers.
Recently, people's consumption habits are shifting from "consuming things" to "consuming experiences." With major end tenants like movie theatres and other entertainment venues, cultural learning centers, fitness clubs and other community-oriented facilities, as the anchor tenants, these properties are not merely places to shop, but also places where customers can enjoy spending leisure time or engaging in community-oriented activities.
Large-scale retail properties have the ability to maintain flexibility in floor space management due to their large store space, and we therefore believe that they are well suited to respond to the changing lifestyle needs and other preferences of customers. We believe that, by developing such large-scale retail facilities, we will provide additional value to the retail facilities and increase the competitiveness of the properties.