ARES Japan Property Index

ARES Japan Property Index ("AJPI") is the index calculated from the universe of income-producing properties owned by core real estate funds mainly for institutional investors. Property index is a weighted-average index calculated by actual NOI data from operating activities and capital appreciation data based on changes in the external appraisal value.

Conceptual diagram of AJPI

• Note) Capital appreciation = The end of market value - The beginning of market value

AJPI is the performance index calculated from weighted average income returns and capital returns which are provided from unlisted private funds' data (undisclosed) and listed REITs' data (disclosed).

Inclusion of listed REITs' data

J-REITs, Japanese Real Estate Investment Trusts, can be classified as "plain core fund" and included in the AJFI, as they are different from REITs in other countries with the following three points;

• J-REITs' activities are regulatory restricted to be rental businesses for the long-term investment
• J-REITs disclose actual NOI and external appraisal value by property twice a year
• J-REITs' loan to value ratio generally remains low.

AJPI Fact Sheet