MFLP Mitsui Fudosan Logistics Park Inc. Development / Operation Track Record
1 -4. Financial Strategy 2
Efficient cash management and change to FFO payout policy
MFLP Mitsui Fudosan
Logistics Park Inc.
MFLP-REIT revised its payout policy, in keeping with its aim to implement efficient cash management
in alignment with phase of growth
Policy of basing distributions on FFO times a payout ratio remains unchanged. Aim to raise the FFO payout ratio in a stepwise function
targeting an increase from 70% to 75% by the 18th FP
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Background to revision of distribution policy
Since listing, MFLP-REIT has grown its asset size through continuous external growth; following new acquisitions, the portfolio size will rise to 389.8 billion yen
Average building age of the portfolio after new acquisitions will be 6.2 years. the portfolio will remain focused on young properties with a limited need for capex
MFLP-REIT has established a sound financial base: the lender formation has expanded to 29 financial institutions and
LT issuer credit rating (JCR) remains AA (stable)
Diagram of cash distribution based on FFO
Leasing
business
expenses,
SG&A,
•
.
Efficient cash management
Will continue to focus on efficient cash
management
MFLP-REIT will consider using cash on
hand to improve unitholder value
etc.
FFO
Rental
revenue
Deprecia
-tion
FFO
Capex
FFOX75%
FFOX 72%
FFOX73%
Deprecia
-tion
Debt repayment
Funds for property
acquisition
Retained
earnings
75%
Increased payout
FFOX 70%
ratio
70%
Distributions
in excess of
earnings
Profit
(Net
income)
Distributions
of earnings
Until 14th FP
15th FP
16th FP
18th FP target
Total
distribution
Profit
(Net
income)
amount
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