November 16, 2021
FOR IMMEDIATE RELEASE
Issuer of REIT Securities
1-17-10, Kyobashi, Chuo-ku, Tokyo
SOSiLA Logistics REIT, Inc.
Representative | Nobuhiko Matsumoto, |
Executive Director | |
(Securities Code: 2979) | |
Asset Management Company | |
Sumisho Realty Management Co., Ltd. | |
Representative | Hideki Yano, President & CEO |
Inquiries | Tomoaki Sato, |
General Manager, REIT Management | |
Department |
TEL: +81-3-4346-0579
Notice Concerning Revisions to Forecasts of Investment Results for
the Fiscal Period Ending May 31, 2022 and Disclosure of Forecasts of Investment Results for
the Fiscal Period Ending November 30, 2022
SOSiLA Logistics REIT, Inc. ("SLR") hereby announces revisions to its forecasts of investment results for the fiscal period ending May 31, 2022 (from December 1, 2021 to May 31, 2022), which were previously announced in the "Summary of Financial Results for the Fiscal Period Ended May 31, 2021 (REIT)" dated July 16, 2021.
In addition, SLR announces its forecasts of investment results for the fiscal period ending November 30, 2022 (from June 1, 2022 to November 30, 2022). Details are as follows.
1. Rationale for the Revisions to and the Announcement of the Forecasts of Investment Results
We expect the assumptions for the forecasts of the fiscal period ending May 31, 2022 which were previously announced in the "Summary of Financial Results for the Fiscal Period Ended May 31, 2021 (REIT)" dated July 16, 2021 to change, resulting in a difference of 10% or more in the forecasts of the operating revenues, as a result of the acquisition of the Properties to Be Acquired (as defined in the attached "Assumptions for the Forecasts of Investment Results for the Fiscal Periods Ending May 31, 2022 and November 30, 2022") and the debt financing, which were announced today and the issuance of new investment units and other financings resolved at the meeting of the board of directors held today. Therefore, SLR has revised its forecasts of investment results for the fiscal period ending May 31, 2022 and also newly announces its forecasts of investment results for the fiscal period ending November 30, 2022 as follows.
Disclaimer: This press release is an announcement of revisions to the forecasts of investment results at SLR for the fiscal period ending May 31, 2022 and forecasts of investment results at SLR for the fiscal period ending November 30, 2022, and is not an offer to sell or a solicitation of any offer to buy the securities of SLR in the United States or elsewhere. Any investment decision should be made based upon your own judgement.
This press release does not constitute an offer of securities in the United States. The investment units have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"). The investment units may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The investment units referred to above will not be offered, publicly or otherwise, in the United States.
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2. The Revisions to the Forecasts of Investment Results for the Fiscal Period Ending May 31, 2022 (from December 1, 2021 to May 31, 2022)
Distributions | ||||||||
Operating | Operating | Ordinary | Distributions | |||||
revenues | income | income | Profit | per unit (yen) | per unit (yen) | Surplus cash | ||
(including | ||||||||
(million yen) | (million yen) | (million yen) | (million yen) | surplus cash | (excluding | distributions | ||
distributions) | surplus cash | per unit (yen) | ||||||
distributions) | ||||||||
Previous forecast | 3,072 | 1,510 | 1,383 | 1,382 | 2,522 | 2,261 | 261 | |
(A) | ||||||||
Revised forecast | 3,541 | 1,754 | 1,546 | 1,545 | 2,550 | 2,266 | 284 | |
(B) | ||||||||
Difference (C) | 468 | 243 | 162 | 162 | 28 | 5 | 23 | |
((B) - (A)) | ||||||||
Percentage | ||||||||
difference | 15.3% | 16.1% | 11.7% | 11.7% | 1.1% | 0.2% | 8.8% | |
(C) / (A) | ||||||||
(For reference) | Period ending May 31, 2022: Expected number of investment units issued and outstanding at the end of the period: 681,615 units |
3. Forecasts of Investment Results for the Fiscal Period Ending November 30, 2022 (from June 1, 2022 to November 30, 2022)
Distributions | |||||||
Operating | Operating | Ordinary | Distributions | ||||
revenues | income | income | Profit | per unit (yen) | per unit (yen) | Surplus cash | |
(including | |||||||
(million yen) | (million yen) | (million yen) | (million yen) | surplus cash | (excluding | distributions | |
distributions) | surplus cash | per unit (yen) | |||||
distributions) | |||||||
Period ending | 3,712 | 1,756 | 1,590 | 1,589 | 2,654 | 2,332 | 322 |
November 30, 2022 | |||||||
(For reference) Period ending November 30, 2022: Expected | number of investment units issued and outstanding at | the end of the period: 681,615 units |
(Note 1) The above-mentioned forecasts are calculated based on the assumptions described in the attachment "Assumptions for the Forecasts of Investment Results for the Fiscal Periods Ending May 31, 2022 and November 30, 2022." Actual operating revenues, operating income, ordinary income, profit, distributions per unit (excluding surplus cash distributions) and surplus cash distributions per unit may change due to adjustments in the assumptions due to additional acquisitions or sales of properties, etc., changes in rent income as a result of changes in tenants, etc., changes in the property management environment, such as unexpected repairs, changes in interest rates, the number of new investment units to be issued and the offer price or the issuance of additional new investment units, among other factors. The forecasts do not guarantee any amounts of distributions or surplus cash distributions.
(Note 2) The forecasts may be revised if a certain level of difference is expected between the forecasts and actual results.
(Note 3) The amounts are rounded down to the nearest million yen or the nearest yen and the percentages are rounded to the first decimal place.
* For more information about SLR, please visit: https://sosila-reit.co.jp/en/
Disclaimer: This press release is an announcement of revisions to the forecasts of investment results at SLR for the fiscal period ending May 31, 2022 and forecasts of investment results at SLR for the fiscal period ending November 30, 2022, and is not an offer to sell or a solicitation of any offer to buy the securities of SLR in the United States or elsewhere. Any investment decision should be made based upon your own judgement.
This press release does not constitute an offer of securities in the United States. The investment units have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"). The investment units may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The investment units referred to above will not be offered, publicly or otherwise, in the United States.
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Attachment:
Assumptions for the Forecasts of Investment Results for the Fiscal Periods Ending May 31, 2022 and November 30, 2022
Item | Assumption | |
Accounting period | | Period ending May 31, 2022: December 1, 2021 to May 31, 2022 (182 days) |
| Period ending November 30, 2022: June 1, 2022 to November 30, 2022 (183 days) | |
| It is assumed that SLR will hold 13 properties as a result of acquisition of real estate trust | |
beneficiary interests in "SOSiLA Ebina" (38% quasi-co-ownership interest) scheduled to be | ||
acquired on December 6, 2021 and real estate trust beneficiary interests in each of "SOSiLA | ||
Itabashi" and "SOSiLA Amagasaki" (10% quasi-co-ownership interest) scheduled to be acquired | ||
on April 1, 2022, both after issuing new investment units resolved at the meeting of the board of | ||
Assets under | directors of SLR held today (individually, "Property to Be Acquired", or collectively, the | |
management | "Properties to Be Acquired"), in addition to the real estate trust beneficiary interests in properties | |
owned by SLR as of today (11 properties in total) ("Existing Properties"), and that there will be | ||
no other changes in assets under management (acquisition of new properties or disposal of owned | ||
properties, etc.) until the end of the fiscal period ending November 30, 2022. | ||
| There may be changes in the assets under management, including acquisition of new properties | |
other than the Properties to Be Acquired or the disposal of owned properties, etc. | ||
| Rent revenues from the Existing Properties are calculated based on the lease agreements effective | |
as of today, trends in tenants and the market in the past, and in consideration of expected occupancy | ||
rates based on forecasts of changes in tenants and rent levels, and forecasts of changes in rents. | ||
| Rent revenues from the Properties to Be Acquired are calculated primarily based on lease | |
Operating revenues | agreements provided by the existing beneficiaries, trends in tenants and the market in the past, and | |
the lease agreements effective as of today, and in consideration of expected occupancy rates based | ||
on forecasts of changes in tenants and rent level after acquisitions, and forecasts of changes in | ||
rent. | ||
| It is assumed that tenants will pay rents without delinquency or withholding. | |
| It is assumed that there will be no gains or losses on the sale of properties. | |
| With respect to operating rental expenses, which are major operating expenses, expenses other | |
than depreciation are calculated based on past results as for the Existing Properties, and based on | ||
the information provided by the existing beneficiaries as for the Properties to Be Acquired. | ||
| Rent revenues minus operating rental expenses (including depreciation), namely operating rental | |
profits (excluding gains on the sale of properties), are expected to be 2,193 million yen in the fiscal | ||
period ending May 31, 2022 and 2,234 million yen in the fiscal period ending November 30, 2022. | ||
| In general, if real estate is sold, property taxes and city planning taxes for the first fiscal year of | |
acquisition are prorated between the existing beneficiary and the purchaser so that the purchaser | ||
shall pay taxes in accordance with the period when the real estate is held and will be settled at the | ||
time of acquisition. SLR also includes the entire amount settled in the acquisition cost. | ||
Accordingly, property taxes and city planning taxes in FY2021 with respect to LiCS Narita | ||
acquired on October 20, 2021 and SOSiLA Ebina (38% quasi-co-ownership interest) to be | ||
acquired on December 6, 2021 will be recorded as expenses from the fiscal period ending May | ||
Operating expenses | 31, 2022. Property taxes and city planning taxes with respect to LiCS Narita and SOSiLA Ebina | |
(38% quasi-co-ownership interest) are expected to be 15 million yen for the fiscal period ending | ||
May 31, 2022, and 31 million yen for the fiscal period ending November 30, 2022. In addition, | ||
property taxes and city planning taxes with respect to SOSiLA Itabashi and SOSiLA Amagasaki | ||
(10% quasi-co-ownership interest) to be acquired on April 1, 2022, which will be recorded as | ||
expenses from the fiscal period ending May 31, 2023, are expected to be approximately 18 million | ||
yen (for six months). The total amount of property taxes and city planning taxes in the acquisition | ||
cost thereof is expected to be 34 million yen for the 4 properties. | ||
| Building repair expenses, which are calculated based on the medium- to long-term repair and | |
maintenance plans of Sumisho Realty Management Co., Ltd. ("SRM"), are anticipated to be 31 | ||
million yen for the fiscal period ending May 31, 2022, and 32 million yen for the fiscal period | ||
ending November 30, 2022. Repair expenses in each accounting period may differ substantially | ||
from the expected amounts because repair expenses may be incurred suddenly due to damage to | ||
buildings and other unforeseeable factors, the expected amounts vary significantly from year to | ||
year in general, and repair expenses are not incurred regularly, among other factors. |
Disclaimer: This press release is an announcement of revisions to the forecasts of investment results at SLR for the fiscal period ending May 31, 2022 and forecasts of investment results at SLR for the fiscal period ending November 30, 2022, and is not an offer to sell or a solicitation of any offer to buy the securities of SLR in the United States or elsewhere. Any investment decision should be made based upon your own judgement.
This press release does not constitute an offer of securities in the United States. The investment units have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"). The investment units may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The investment units referred to above will not be offered, publicly or otherwise, in the United States.
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| Depreciation expenses, including ancillary costs, are calculated using the straight-line method. | |
They are expected to be 625 million yen for the fiscal period ending May 31, 2022 and 662 million | ||
yen for the fiscal period ending November 30, 2022. | ||
| For the fiscal period ending May 31, 2022, non-operating expenses are expected to stand at 207 | |
million yen. Interest expenses and other debt-related costs are anticipated to be 164 million yen. | ||
Non-operating | Expenses related to the issuance of new investment units are assumed to come to 43 million yen. | |
Of those expenses, those that can be posted as a lump sum for accounting and tax purposes are | ||
expenses | ||
assumed to be posted as a lump sum for the fiscal period ending May 31, 2022. | ||
| For the fiscal period ending November 30, 2022, interest expenses and other debt-related costs are | |
expected to be 166 million yen. | ||
| Total interest-bearing debt is assumed to be 50,260 million yen as of May 31, 2022 and 49,590 | |
million yen as of November 30, 2022. | ||
| It is assumed that SLR will newly borrow 7,640 million yen in total in November 2021, December | |
2021 and March 2022 from Qualified Institutional Investors as defined under Subparagraph 1, | ||
Paragraph 3, Article 2 of the Financial Instruments and Exchange Act for the purpose of the | ||
acquisition of the Properties to Be Acquired and the repayment of the existing borrowings. | ||
However, the actual amount of such borrowing may be changed prior to the time of borrowing, | ||
taking into consideration the amount of proceeds, etc. from the issuance of new investment units | ||
Interest-bearing debt | as resolved at the meeting of the board of directors of SLR held today. Any other details with | |
respect to such new borrowing, please refer to "Notice Concerning Debt Financing" released | ||
today. | ||
| LTV is expected to be approximately 39.2% as of May 31, 2022 and approximately 38.9% as of | |
November 30, 2022. | ||
LTV is calculated using the formula below and rounded to the first decimal place. | ||
LTV = Total interest-bearing debt / Total assets × 100 | ||
| LTV may change due to the issuance of new investment units through the third-party allotment, | |
which is described below in the "Investment units" section. | ||
| It is assumed that all of 66,600 new investment units planned to be issued through public offering | |
and a maximum of 3,330 new investment units planned to be issued through the third-party | ||
allotment under the resolutions passed at the meeting of the board of directors held today, totaling | ||
69,930 investment units, will be issued and added to 611,685 investment units issued and | ||
outstanding as of today. | ||
| It is assumed that there will be no change in the number of investment units issued and outstanding, | |
Investment units | except for the new investment units planned to be issued through public offering and the third- | |
party allotment above, until November 30, 2022. | ||
| Distributions per unit (excluding surplus cash distributions) and surplus cash distributions per unit | |
for the fiscal period ending May 31, 2022 and for the fiscal period ending November 30, 2022 are | ||
calculated using the expected number of investment units issued and outstanding as of May 31, | ||
2022 and November 30, 2022 (681,615 investment units), including 69,930 investment units, | ||
which is the maximum number of new investment units planned to be issued as mentioned above. | ||
| Distributions per unit (excluding surplus cash distributions) are calculated based on the | |
Distributions per unit | assumption that cash will be distributed in accordance with the cash distribution policy set out in | |
the Articles of Incorporation of SLR. | ||
(excluding surplus cash | ||
| Distributions per unit (excluding surplus cash distributions) may change as a result of changes in | |
distributions) | rent income due to changes in assets under management and tenants, and unexpected repairs, | |
among other factors. |
Disclaimer: This press release is an announcement of revisions to the forecasts of investment results at SLR for the fiscal period ending May 31, 2022 and forecasts of investment results at SLR for the fiscal period ending November 30, 2022, and is not an offer to sell or a solicitation of any offer to buy the securities of SLR in the United States or elsewhere. Any investment decision should be made based upon your own judgement.
This press release does not constitute an offer of securities in the United States. The investment units have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"). The investment units may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The investment units referred to above will not be offered, publicly or otherwise, in the United States.
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Surplus cash distributions per unit are calculated in accordance with the Articles of Incorporation | |
of SLR and the policy set out in the asset management guidelines, which are the internal rules of | |
SRM. | |
Total surplus cash distributions for the fiscal period ending May 31, 2022 are calculated as the | |
total of 30% of the expected depreciation (excluding amortization of leasehold rights in trust, etc.) | |
and allowance for temporary difference adjustment for the relevant calculation period, and are | |
expected to be 193 million yen. | |
Total surplus cash distributions for the fiscal period ending November 30, 2022 are calculated as | |
the sum of 30% of the expected depreciation (excluding amortization of leasehold rights in trust, | |
etc.), one-time surplus cash distributions, intended to level out distributions per unit (including | |
surplus cash distributions), and allowance for temporary difference adjustment, which is expected | |
to be 219 million yen. | |
It is assumed that there is no risk as of today that the external economic environment, the real | |
estate market and the financial position of SLR will deteriorate significantly. | |
SLR aims to pay surplus cash distributions in amounts equal to 30% of the depreciation (excluding | |
Surplus cash | amortization of leasehold rights in trust, etc.). In general, SLR will regularly pay surplus cash |
distributions each fiscal period. | |
distributions per unit | |
SLR may not distribute more cash than the distributable amount if it believes that distributing that | |
much cash is inappropriate, considering the economic environment, trends in the real estate market | |
and rental market, assets owned and the financial position. | |
In addition to regular surplus cash distributions, SLR may pay one-time surplus cash distributions | |
to maintain the stability of distributions per unit if distributions per unit are expected to fall | |
temporarily to a certain degree due to financing including the issuance of new investment units, | |
among other factors. In addition, in the event of any tax discrepancy (including, but not limited to, | |
tax discrepancies resulting from asset retirement obligations (including interest expenses), | |
amortization of fixed-term leaseholds, etc.), distributions of the allowance for temporary | |
difference adjustments or any other treatment shall be made with the aim of avoiding the | |
generation of taxable income, taking into account the impact of such tax discrepancy on | |
distributions. | |
Maximum surplus cash distributions (regular surplus cash distributions, one-time surplus cash | |
distributions and distributions of the allowance for temporary difference adjustments), shall be | |
60% of the accumulated depreciation at the end of the fiscal period minus accumulated | |
depreciation at the end of the immediately preceding fiscal period. | |
It is assumed that no revision that will impact the forecasts above will be made to laws and | |
regulations, the tax system, accounting standards, the listing rules of the Tokyo Stock Exchange, | |
Other | Inc. and the rules of the Investment Trusts Association, Japan, etc. |
It is assumed that no unexpected material change will arise in overall economic trends and real | |
estate market conditions. |
Disclaimer: This press release is an announcement of revisions to the forecasts of investment results at SLR for the fiscal period ending May 31, 2022 and forecasts of investment results at SLR for the fiscal period ending November 30, 2022, and is not an offer to sell or a solicitation of any offer to buy the securities of SLR in the United States or elsewhere. Any investment decision should be made based upon your own judgement.
This press release does not constitute an offer of securities in the United States. The investment units have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"). The investment units may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The investment units referred to above will not be offered, publicly or otherwise, in the United States.
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