Financial Policy

KDR is committed to drafting and executing a flexible and dynamic financial strategy based on the following basic policy with the goal of securing stable revenues in the medium to long term and achieving steady growth of assets under management.

Basic Policy

Financing	Capital is raised to acquire assets, make capital investments, pay cash distributions, prepare working capital for KDR, repay loans and arrange for various other funds. Financing shall be conducted through an efficient combination of stable long-term funds and flexible short-term funds.
Management	Fund management shall prioritize the safety, liquidity and efficiency of funds.

Financing

Equity

Follow-on issuance of additional investment units shall be conducted after considering the ratio of total amount of debt and the investment corporation bonds to the total asset value (ratio of interest - bearing debt to total assets: LTV), the acquisition timing for real estate, etc. after giving consideration to the dilution of unit value.

Debt

As a rule, borrowings will have no collateral or guarantees and shall be conducted while considering the balance between short and long-term borrowing periods, fixed and variable interest formats, etc. and the diversification of maturities and lenders. The issuance of investment corporation bonds shall be conducted with the purpose of achieving long-term, stable financing and diversifying the sources of capital. In addition, as a rule, the LTV shall have a ceiling of 60%.