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Support for Electric Fee Budgeting Continues

Sekisui House Asset Management, a leading name in the real estate investment sector, has confirmed that they will continue their collaboration with Japan Electric Procurement Solutions for the electric pricing budgeting support service during the 2025 fiscal year. This service initially commenced in 2024 and has proven immensely beneficial for REITs that struggle with the uncertainties of electric pricing.

Understanding the Electric Pricing Challenge

In the realm of real estate investment trusts (REITs), electricity costs account for a significant portion of operational expenses, ranging from 10% to 15%. However, the volatility introduced by external factors such as fluctuating fuel costs, adjustments in renewable energy surcharges, and the changing dynamics of power suppliers makes it challenging for REITs to forecast these expenses accurately. Traditional budgeting methods require a thorough evaluation every six months, which can be a daunting task. Recognizing this issue, Japan Electric Procurement Solutions has developed this unique service to provide a data-driven approach to formulating electric fee budgets.

Service Features

The electric fee budgeting support service provides a comprehensive analysis of various electricity contracts held by REITs across different regions and power companies. Utilizing metrics like local fuel cost adjustment rates and contract specifics, the service quantitatively projects electric pricing for the following year. Key components of the service include:

• - Interpretation of fuel cost adjustment formulas for individual properties
• - Forecasting fuel cost adjustments and related expenses for the upcoming 12 months based on regional and company-specific data
• - Projections of renewable energy surcharges for the next fiscal year
• - Calculations of fixed and variable electricity pricing
• - Market trend reports for informed decision-making

Additionally, for properties facing comparatively high electricity fees, recommendations for switching to more favorable power suppliers are provided, ensuring cost optimization for clients.

Impact of the Service

The partnership between Sekisui House Asset Management and Japan Electric Procurement Solutions has demonstrated tangible benefits. After implementing the service in 2024, they reported increased accuracy in property-specific electricity pricing forecasts and improved efficiency in internal documentation processes. By continuing to use this service in 2025, they aim to achieve:

• - Enhanced reproducibility of electric fee budgeting
• - More efficient information sharing among stakeholders
• - Better visibility of electricity cost structures to support cost optimization

Future Outlook

As the complexity of electric pricing continues to escalate, Japan Electric Procurement Solutions is committed to expanding its support services, particularly for J-REITs and the broader real estate sector. This strategic focus will aid REITs in navigating the intricate terrain of electricity pricing and ensure they remain competitive in the market.

About Japan Electric Procurement Solutions

• - Company Name: Japan Electric Procurement Solutions Inc.
• - CEO: Yuto Takahashi
• - Headquarters: 2F, 3-9-10 Shimbashi, Minato-ku, Tokyo
• - Capital: 9,000,000 JPY
• - Business Activities: Electricity procurement consulting, renewable energy procurement support, electric fee budgeting assistance, power supplier switching support.
• - Website: Japan Electric Procurement Solutions