GLP J-REIT

GLP J-REIT: Has first refusal rights on ¥270b in sponsor properties. With development costs for logistics centers on the rise, CS expect the market to take another look at GLP J-REIT’s potential for external growth regardless of the sponsor’s pace of new development. The current distribution yield of 4.2% (FT2/15E) looks attractive vs. the 3.8% average for the TSE REIT Index. LTV (49.3% at end FT8/14) is also higher than at other logistics REITs, leading house to believe that GLP J-REIT could outperform should additional BoJ easing drive expectations for a rise in asset value. CS believe sponsor GLP is looking to sell ¥30-50b in properties per year to GLP J-REIT.