MFLP Mitsui Fudosan Financial Strategy and Property Overview
2-7 Financial Strategy [2]
Financial management with an emphasis on stability
Interest-bearing debt maturity ladder
In consideration of future financing risk, expand total commitment line to 8,000 million yen, diversify maturities for interest-bearing debt
Commitment line 8,000 million yen
(million yen)
ช,บบบ
Existing borrowing New borrowing Investment corporation bonds
6,000
4,000
2,000
3,500
0
FP
FP
1,900
FP
3,400
FP
5,600
FP
4,000
FP
6,600
FP
3,000
FP
2,200
500
3,000
2,000
3,300
7,500
7,800
6,700
5,600
5,100
5,700
3,600
4,400
4,500
3,100
3,200
2,100
1,800
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
800
FP
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Jul. 2021 Jan. 2022 Jul. 2022 Jan. 2023 Jul. 2023 Jan. 2024 Jul. 2024 Jan. 2025 Jul. 2025 Jan. 2026 Jul. 2026 Jan. 2027 Jul. 2027 Jan. 2028 Jul. 2028 Jan. 2029 Jul. 2029 Jan. 2030 Jul. 2030 Jan. 2031 Jul. 2031 Jan. 2032 Jul. 2032
N.B. Debt maturity ladder after reflecting borrowings associated with the acquisition of MFIP Inzai II on Mar. 16, 2021
Efficient cash
management
Based on the characteristics of logistics facilities, such as the ratio of building value to land value being typically high, MFLP-REIT intends to make
cash distributions, including distributions in excess of earnings, on an ongoing basis each fiscal period from a perspective of securing stable
distribution levels while managing cash efficiently. In addition, in cases where the distribution amount for distributions per unit is expected to
temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units, etc., a one-
off distributions in excess of retained earnings may be executed in order to standardize the amount of the distributions per unit.
Key points of cash distribution in excess of earnings
Diagram of cash distribution based on FFO
Leasing
business
expenses,
SG&A, etc.
Pay distributions based on a
threshold of approx. 70% of FFO
FFO
Rental
revenue
Depreciation
Distributions in
excess of earnings
Distributions
of earnings
Profit
(Net income)*
Targeted
at 70%
* Gain or loss on sale of real estate, etc. is not included in "Profit (Net income)" in the above chart.
Level of distribution
For the time being, we intend to pay distributions (including distributions in excess of earnings) calculated at
an amount equivalent to approximately 70% of FFO (excluding gain or loss on sale of real estate, etc.) for
the relevant fiscal period on an ongoing basis, in principle.
Securing long-term building maintenance funds
Distributions in excess of earnings will be paid to the extent that an amount can be retained that is more than
double the six-month average of capital expenditures stated in the engineering report for each operating
period.
Securing financial stability
Distributions in excess of earnings will not be made if appraisal LTV ratio * exceeds 60% for each operating
period.
Appraisal LTV ratio = Interest-bearing debt ÷ (Total assets - Book value of portfolio real estate, etc. + Appraisal value)
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