Innovative Initiatives

In order to secure faithful and sound asset management, realize stable dividends and maximize unitholder value, GLP J-REIT has considered and implemented various innovative measures and initiatives that are believed to contribute to such causes.

Acquisition of sponsor's flagship assets

GLP J-REIT maintains best-in-class portfolio which is equivalent to the portfolio owned by GLP Group, Japan's largest leasable logistics facilities operator by acquiring flagship properties developed by GLP Group, such as GLP ALFALINK Sagamihara 4 and GLP Tokyo II.

Distributions in excess of retained earnings each fiscal period on a continuous basis

GLP J-REIT implemented periodical optimal payout distribution policy for the first time in J-REIT industry.
Under this policy, it allows GLP J-REIT to distribute based on FFO (Funds From Operations)(Note) and can conduct optimal cash management to improve fund efficiency. This measure has been made possible due to logistics facilities' characteristics where the amount of capital expenditure required is less than the amount of depreciation expense and the amount of capital expenditure can be estimated relatively accurate, as well as by making the most of the property management skills of GLP group which has high degree of expertise and good track record in operations and management of logistics facilities.

1. Indicates the cash flow generated from real estate rental operations, and is generally calculated by “net income + depreciation – gain or loss on sales and retirement of real estate, etc.”

IPO with one of the largest market capitalizations as well as lowest investment unit price

GLP J-REIT secured a certain amount of liquidity immediately after listing by carrying out the second-largest IPO in the history of J-REITs as of December 2012 with approximately JPY 110 billion as the offering amount.
In addition, by offering a smaller lot of investment units (JPY 60,500 at IPO), the smallest for a J-REIT, it sought to expand its investor base and enhance liquidity.

Securing property acquisition opportunities that improve investment efficiency

As part of its bridge scheme to secure opportunities to acquire quality assets, GLP J-REIT adopted a new initiative called the Optimal Takeout Arrangement (OTA) in July 2015.
The OTA is a scheme that enables GLP J-REIT to acquire properties at a time of its designation at a discounted price by having a bridge company temporarily own the properties planned for acquisition in the future.
This scheme is designed to secure flexibility in the acquisition timing and increase investment return.

Performance-linked AM fees and management incentive bonuses at Asset Manager

Two-thirds of the asset management fees that GLP J-REIT's asset management company receives are linked to NOI and EPU.
In addition, bonuses for major executives at the asset management company are directly linked to EPU and relative unit price performance of investment units (vs. TSE REIT Index). (Note)

1. Major executives at the asset management company refer to President & CEO, CFO, and CIO.

Ownership by the sponsor group (same boat investment)

GLP Group’s interests are aligned with other GLP J-REIT’s unitholders’ interests through the same boat ownership of investment units by the sponsor.

Introduction of a strict governance structure for related-party transactions

GLP J-REIT is not allowed to carry out related-party transactions without the approval of outside expert(s) serving on the asset management company’s investment and compliance committees. In addition, the selection of outside expert(s) requires the approval of the J-REIT board.

Introduction of IR measures based on unitholders' perspectives

Since listing, GLP J-REIT has continuously carried out same-day disclosure of Japanese and English versions of press releases and various disclosure material.
Financial results briefing sessions for institutional investors and analysts following the results announcements are held in Japanese as well as in English using a conference call system. Furthermore, from the fiscal period ended February 2015, the conference call system was introduced for financial results briefing sessions in Japanese, too, to establish an environment where investors can participate in the session by telephone without having to come to the session venue.

Leading-edge efforts upon public offerings

Since listing, GLP J-REIT has continuously delivered same-day disclosure of Japanese and English versions of various disclosure materials.
In the public offering conducted in summer 2015, GLP J-REIT, for the first time among J-REITs, held a management call (a group meeting via conference call system) mainly for international institutional investors, where the management of the asset management company explained the overview and significance of the offering directly to investors in an efficient-manner. In addition, all international roadshow meetings were held via conference calls without physically traveling abroad, which was unprecedented for a global offering conducted by a J-REIT, contributing to a reduction of offering-related costs and maximized marketing opportunities.
In June 2021, GLP J-REIT carried out the first Accelerated Global Offering in the J-REIT market to minimize price fluctuation risks during the offering under the circumstance where concerns on market stability due to uncertainty caused by COVID-19 pandemic still remains while strong expectations for external growth were confirmed by investors.