-- Japan's major real estate companies will continue to grow amid a further increase in office rents, especially in major cities, S&P Global Ratings said in a recent release.
A robust domestic market and competitive portfolios will support steady growth for the real estate majors over the next few years, S&P said.
The majors will have slightly better interest coverage compared to peers abroad, given their diversified debt maturity profiles and solid funding bases, the rating agency said.
However, new supply in central Tokyo, a core market, will continue to be relatively narrow within the next few years, S&P said.
The majors' ability to further raise rents to balance increasing interest costs will be crucial for their creditworthiness, the rating agency said.