Spring REIT

About Spring REIT
About Spring REIT

Investment Strategy

The key objectives of Spring REIT are to provide Unitholders with stable distributions and the potential for sustainable long-term growth in distributions and to enhance the value of its real estate assets. The REIT Manager intends to accomplish these objectives through investing in high quality income-producing real estate assets primarily in Mainland China, while seeking yield-accretive investment opportunities globally.

The main aspects of the REIT Manager' s strategy are as follows:

Asset Management Strategy

The REIT Manager strives to maintain high occupancy rates and maximize the long-term value of the Properties through a number of initiatives such as increasing the tenants' loyalty, providing world-class professional services to meet the tenants' ongoing needs, exploring effective marketing opportunities to further promote the Properties.

In order to maintain an optimal tenant mix, the REIT Manager will actively manage lease expirations to identify opportunities, and backgrounds of new tenants will be verified before entering into leases, The REIT Manager will focus on maintaining a high quality tenant base to promote the status of the Properties and maximize rental income.

Working closely with the property managers, the REIT Manager intends to continue to increase the value of the Properties and value of Spring REIT through asset enhancement initiatives. Property expenses will also be controlled without compromising the quality of services to tenants through the close monitor of expenses for annual maintenance and renovation plan.

Acquisition Strategy

The REIT Manager intends to capitalize on acquisition opportunities that provide the potential for attractive yields and long-term net asset growth. The geographical scope of Spring REIT’s investment policy was expanded in 2015 to cover global commercial real estates, providing the REIT with additional acquisition opportunities.

In evaluating acquisition opportunities, the REIT Manager will focus on merits in terms of cash flow returns and stability, risk diversification and the potential for long term capital appreciation.

Capital and Risk Management Strategy

The REIT Manager aims to maximize the returns on the portfolio and distributions to Unitholders, while maintaining an appropriate loan-to-value ratio. The REIT Manager will endeavor to optimize the capital structure of Spring REIT, within the requirements of the REIT Code. In relation to the use of debt, the REIT Code limits Spring REIT' s debt to 50% of its total gross asset value. The REIT Manager may use a combination of debt and equity financing to fund future acquisitions and asset enhancements with a prudent financial and capital management policy.