Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

Aiming for REITs with Lower Downside Risk and Expectations of Higher Shareholder Returns?

Governance Issues Were Not Highlighted and the Win-Win by REIT Sponsors and Investors Continues

Disclosure of Management Strategies with Cost of Capital and Stock Price in Mind Is Still Limited

MBOs Will Rise, Even if Companies and Funds Are Sleeping in the Same Bed but Having Different Dreams

Preparation in Advance for In-Depth Discussions Is Important for Both Investors and Managers

Activist Investors with Increased AUM Will Also Likely Target Larger Companies for Investment

Easier to Raise Listing Criteria, but More Difficult to Encourage Growth of Companies Already Listed

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Since important decisions on REIT management are made by the sponsor companies, governance isn't functioning. That's why REITs have been very careful to strengthen their compliance systems and information disclosure.</li>
<li>For REITs that rely heavily on properties contributed by their sponsors, it is unlikely that other investors would support an activist fund's advocacy for a change of asset manager.</li>
<li>The most annoying thing for the sponsor is the change of asset manager. The tactic of this TOB is to extract shareholder returns by addressing what the sponsor company dislike.</li>
</ul>


Since important decisions on REIT management are made by the sponsor companies, governance isn't functioning. That's why REITs have been very careful to strengthen their compliance systems and information disclosure.
For REITs that rely heavily on properties contributed by their sponsors, it is unlikely that other investors would support an activist fund's advocacy for a change of asset manager.
The most annoying thing for the sponsor is the change of asset manager. The tactic of this TOB is to extract shareholder returns by addressing what the sponsor company dislike.


This TOB Does Not Question the Fundamental Issue of REIT Governance, but Will the Tactic Succeed?

TSE Tokyo Price Index TOPIX

This TOB Does Not Question the Fundamental Issue of REIT Governance, but Will the Tactic Succeed?