Japan Logistics Fund Acquires Additional Stake in Ishikari Logistics Center, Disposes of Kadoma Logistics Center

Japan Logistics Fund, Inc. (JLF) will acquire an additional 45% quasi-co-ownership interest in the Ishikari Logistics Center in Ishikari City, Hokkaido for approximately JPY 1 billion, while disposing of the Kadoma Logistics Center in Osaka Prefecture for approximately JPY 2.7 billion. The transaction forms part of the REIT’s ongoing capital recycling strategy aimed at driving growth in FFO per unit.

The Ishikari Logistics Center, located within an industrial park in the Ishikari Bay New Port international trade zone, comprises three versatile low-rise logistics buildings with a total Gross Floor Area of approx. 6,609 tsubo (approx. 218,600 sq. ft.) and is fully leased. JLF had already acquired a 55% quasi-co-ownership interest in March 2024, and this additional acquisition will bring its ownership to 100%. The acquisition price reflects a 2.6% discount to the appraised value, with an NOI yield of 7.1% based on the purchase price.

The Kadoma Logistics Center has been held since 2007, during which JLF pursued value maximization through asset management initiatives. With the ability to renew tenant leases at the upper end of market rent ranges, the REIT elected to move forward with the sale. The disposition price exceeds the appraised value by 44.4%, and the property is expected to generate an IRR of 9.1% over the holding period.

JLF targets annual FFO-per-unit growth of at least +2.2%. Since March 2024, it has sold four properties whose asset values had peaked and acquired five assets offering higher future income potential. The anticipated gain on the Kadoma asset sale is expected to exceed initial forecasts, and as a result, the January 2026 distribution per unit is projected to rise 7.0%, from the earlier forecast of JPY 2,150 to JPY 2,300.

Key Facts -Acquisition-

• Property Name: Ishikari Logistics Center (45% quasi-co-ownership interest)

• Buyer: Japan Logistics Fund, Inc.

• Seller: Fuyo General Lease Co., Ltd.

• Acquisition Price: JPY 1,042 million

• Appraised Value: JPY 1,070 million

• NOI Yield: 7.1% (based on acquisition price)

• Location: Shinminato Nishi 2-chome 782-6 and others, Ishikari City, Hokkaido

• Access: Approx. 13 km to Sapporo-Kita IC on the Dōō Expressway

• Completion: March 1992 and other years

• Number of Floors: 4F (RC structure) / 3 buildings

• Gross Floor Area: approx. 6,609 tsubo (approx. 218,600 sq. ft.)

• Ceiling Height: 7.0–9.7 m

• Floor Load: 1.0–1.5 t/m²

Key Facts -Disposition-

• Property Name: Kadoma Logistics Center

• Seller: Japan Logistics Fund, Inc.

• Buyer: Taisei-Yuraku Real Estate Co.,Ltd.

• Disposition Price: JPY 2,730 million

• Appraised Value: JPY 1,890 million

• Location: 9-7 Tonoshima-cho, Kadoma City, Osaka Prefecture

• Access: Approx. 7-minute walk to Kadoma-shi Station (Keihan Main Line / Osaka Monorail)

• Completion: March 1993

• Number of Floors: 5F (SRC structure)

• Gross Floor Area: approx. 2,244 tsubo (approx. 74,200 sq. ft.)