GLP J-REIT Characteristics

Investment Policy

We intend to mainly invest in modern logistics facilities, aiming to produce stable profits in the medium to long term and steadily grow our portfolio.

Target Portfolio Areas

We plan to invest primarily in logistics facilities located near airports, trading ports and other areas where traffic routes meet, and in the logistics hubs of production or consumption areas, taking into account the geographical diversification of the portfolio, based on population distribution, overall regional production and regional logistics dynamics.

Investment Ratio by Location (based on acquisition price)

Location
Share

Tokyo Metropolitan Area・Greater Osaka Area: 70% or higher

Others: 30% or lower

Property Selection

We plan to invest mainly in modern logistics facilities that produce stable profits. We will also invest in real-estate-related assets which are real estate ancillary to or related to logistics facilities or real estate securities backed by land with leasehold interest on which a logistics facility currently exists, or land with leasehold interest on which building a logistics facility in the future is expected to be possible by carrying out redevelopment, from the standpoint of achieving further income and growing the portfolio. We may invest in development projects for which the construction of modern logistics facilities is expected from the standpoint of achieving and expanding stable earnings from the portfolio over the medium to long term. Our specific investment criteria are as follows:

Investment in modern logistics facilities

Occupancy status: We intend to invest only in the properties that, at the time of our decision to purchase such facility, have reached an occupancy rate of at least 93% or is at least one year old from the date when the construction of such facility was completed.

Scale: We intend to invest mainly in leasable large-scale logistics facilities with gross floor area of 10,000 m2 or more.

Functionality: We intend to focus on modern logistics facilities with the following features, among others, which in our view indicate high functionality: Floor-to-ceiling height of 5.5 meters or more and a floor load tolerance of 1.5 tons/m2 or more in more than 50% of the gross floor area.
We will also consider functions such as significant inter-pillar space, advanced truck berths (large truck-loading yards, high-floored truck berths, dock levelers), berths designed for efficient shipping (berths on both sides, berths on each floor, etc.), rampways, office spaces, high-capacity elevators, amenity spaces for employees (locker rooms, lounge, stores, etc.), high-intensity lighting in facilities (suitable for inside work), high quake-resistant structures, 24-hour security, advanced environmentally friendly features.

Investment in land with leasehold interest

Occupancy status: Stable operation is expected after completion.

Risk analysis and management: Risks related to real estate development, such as the following, are appropriately analyzed and managed: development risk, approval risk, completion risk, tenant risk, price (fluctuation) risk, risk of interest rate fluctuation during development, and large-scale natural disaster risk.

Investment method: The investment method is appropriate, based on the nature of redevelopment.

Business progress: Business progress for redevelopment is appropriately monitored.

Impact on the entire portfolio: If redevelopment does not immediately generate cash flows, there will be no significant impact on the overall portfolio.

Probability of acquisition: There is a high probability of acquisition of the logistics facility, such as expectation of obtaining right-of-first-look of said facility.

Investment Criteria (Development Projects)

Occupancy status: Stable operation is expected after completion

Risk analysis and management: Risks related to real estate development, such as the following, are appropriately analyzed and managed: development risk, approval risk, completion risk, tenant risk, price (fluctuation) risk, risk of interest rate fluctuation during development, and large-scale natural disaster risk.

Investment method: The investment method is appropriate, based on the nature of development.

Business progress: Business progress of the development is appropriately monitored

Impact on the entire portfolio: There will be no significant impact on the entire portfolio, considering that the development is unlikely to immediately generate cash flows.