Internal Growth Strategy

Management with a Focus on Stable Growth over a Long Term

With regard to the internal growth strategy, which aims to maximize the NOI (net operating income) through such measures as increasing rental income and appropriately controlling the administrative costs, JPR endeavors for management that focuses on stable growth over a long term.
JPR has continuously conducted customer satisfaction (CS) surveys for the tenants housed in its properties, in an endeavor to improve and enhance the quality of the facilities and the administrative operations. While working to improve and rationalize the administrative operations and systems as well as services, JPR conducts facility renovations and value enhancement work that reflect the tenant needs. Such work not only enhances the asset value, but also help improve the leasing ability to attract new tenants and restrain the move-out ratio of existing tenants.
These measures are continuously implemented by the highly specialized organizations of the asset management company, with an aim to achieve stable growth of the portfolio over a long term. The fact that Tokyo Tatemono, a real estate developer, provides support in terms property management and construction management, etc. also contributes significantly to the management that aims to achieve stable growth.

Management Structure of TRIM

Management Structure of TRIM

Description of Major Measures

Quality improvement based on the CS surveys TRIM conducts CS surveys for housed tenants, etc. on a continuous basis.
The satisfaction degree as to the quality and the service levels, etc. of various operations offered to the tenants is surveyed. Based on the results, the parties involved in operations prepares improvement plans after identifying the issues to be treated and discussing countermeasures, and work to improve quality by sharing the issues and implementing the countermeasures, assuming that all issues be solved.
Proprietary leasing system of the asset management company TRIM has assigned staff with experience in leasing to the leasing team.
The leasing team not only gives directions to property management (PM) companies and assesses the PM contract terms and conditions but also directly exchanges information and negotiates with tenant brokerage firms. By doing so, the team has reinforced its proprietary leasing capabilities.
Leasing strategy that focuses on rents In a phase in which rents increases, priority is not necessarily placed on increasing the occupancy rate. Instead, grant of rent-free periods and value enhancement construction work are strategically utilized to promote the leasing strategy that focuses on raising the new contract rents. Although establishing rent-free periods reduces initial rent revenues after concluding the contracts, rent-free periods are used strategically with an intention to raise the unit rent and effectively increase rent revenues later in the contract periods.
Proper cost control The Asset Management Groups of TRIM not only consign operations to building maintenance companies but also endeavor to conduct unified management for such occasions as setting up the most appropriate management specifications, implementing energy-saving initiatives and measuring their effectiveness, and introducing value enhancement work that lead to higher rent levels, in an effort to control costs based on reasonable plans and specifications.
Improvement of asset value through value enhancement measures As a dedicated technology division, the Asset Engineering Group endeavors on value enhancement construction work in order to maintain the competitiveness of properties over a long term and enhance asset value. While coordinating with property management companies, the Group is engaged in a wide variety of operations ranging from on-site inspections of properties and construction site management to proposals of value enhancement arrangements upon negotiating with tenants.

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