Investor Presentaiton
4-5. Financial Strategy [2]
Status of borrowings
End of 7th FP
The Chiba Bank 2.3%
Sumitomo Life Insurance Company 2.3%
Mitsui Sumitomo Insurance 2.8%
The Yamaguchi Bank 2.8%.
Nippon Life Insurance Company 3.5%
The Norinchukin Bank 4.9%
Development Bank of Japan 4.9%
Mizuho Trust & Banking 6.8%
The Bank of Fukuoka 8.6%
Shinkin Central Bank 8.9%
Mizuho Bank
15.4%
Total amount
for all 14 financial
institutions
42.9 billion yen
14.7
%
Sumitomo Mitsui
Banking Corporation
11.7
%
10.5%
Sumitomo Mitsui
Trust Bank
MUFG Bank
MFLP Mitsui Fudosan
Logistics Park Inc.
Shinsei Bank 1.2%
The 77 Bank 1.4%
Nippon Life Insurance Company 2.3%
The Chiba Bank 2.3%
Sumitomo Life
2.8%
Insurance Company
Mitsui Sumitomo Insurance 3.1%
Development Bank of Japan 3.3%
The Yamaguchi Bank 3.3%
The Norinchukin Bank 4.8%
Mizuho Trust & Banking 5.3%
Shinkin Central Bank 8.4%
MUFG Bank 9.5%
After new borrowing associated
with the 3rd follow-on offering
15.1%
Sumitomo Mitsui
Banking Corporation
Total amount
for all 16 financial
institutions
64.2 billion yen
13.2
The Bank of Fukuoka
%
12.1
%
Sumitomo Mitsui
Trust Bank
11.7%
Mizuho Bank
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.
Diagram of cash distribution based on FFO
Rental
revenue
Leasing
business
expenses,
SG&A, etc.
FFO
Depreciation
Pay distributions
based on a threshold of
approx. 70% of FFO
Distributions
in excess of earnings
Profit *
(Net Income)
Distributions
of earnings
Targeted
at 70%
*Gain or loss on sale of real estate, etc. is not included in "Profit (Net income)" in the above chart.
Key points of cash distribution in excess of earnings
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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