Samty Residential Investment Corporation

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  2. About Samty Residential Investment Corporation
  3. Financial Strategy

Financial Strategy

Samty Residential Investment Corporation will raise asset management efficiencies and ensure a sound financial base, while increasing equity capital and achieving long-term stability in the management of its assets. Borrowings and surplus funds will be managed in a way that maintains the soundness of the debt ratio and fixed ratio.

Basic Policy

Equity finance The issuance of new units will be authorized based on the financial environment and with consideration given to dilution of unitholder value, following a comprehensive review of the profitability of the managed asset, timing of the acquisition, LTV level, and repayment plan for interest-bearing debt, among other factors.
Debt finance The execution of borrowings and issuance of investment corporation bonds (including short-term investment corporation bonds) will be carried out with consideration given to the balance between financing flexibility and financial stability.
LTV LTV will be authorized with close consideration given to financial capacity. While the ceiling will be set at 60%, LTV will generally be kept between 45% and 55%.

Cash Management Policy

Cash Management Policy

Note: The above figure is intended to illustrate Samty Residential Investment Corporation’s cash management policy. It does not guarantee or warrant that actual cash flow usage will be exactly the same as in the graphic illustration above.

Utilization of cash flow

Distributions in Excess of Earnings

Samty Residential may decide the amount of each fiscal period's cash distributions in excess of earnings, based on the payout ratio as our management result. However, when deciding distribution in excess of earnings, the following requirements are to be fulfilled, taking into account Samty Residential?s financial conditions, amount of future capital expenditures, etc., in order to avoid undermining unitholder value.

Flowchart for the authorization of distributions and amount (for each fiscal period)

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