August 15, 2022
CRE Logistics REIT, Inc.
Summary of Financial Results (Unaudited)
For the 12th Fiscal Period Ended June 30, 2022
(For the Reporting Period from January 1, 2022 to June 30, 2022)
(Translated from the Japanese original)
Corporate Information
Code: 3487 Listing: Tokyo Stock Exchange
(URL: https://cre-reit.co.jp/en/)
Representative: Tsuyoshi Ito, Executive Director
Asset management company: | CRE REIT Advisers, Inc. |
Representative: | Tsuyoshi Ito, President |
Person of Contact: | Hirohisa Toda, Executive Officer, Head of Corporate Planning and General Affairs |
Tel: | +81-3-5575-3600 |
Scheduled date to file securities report: | September 22, 2022 | |||||||||||||
Scheduled date to commence payment of distributions: | September 13, 2022 | |||||||||||||
Preparation of supplementary material on financial results: | Yes | |||||||||||||
Financial report presentation meeting: | Yes (for institutional investors and analysts) | |||||||||||||
(Amounts truncated to the nearest million yen, except for the basic earnings per unit) | ||||||||||||||
1. 12th Fiscal Period ended June 30, 2022 (January 1, 2022-June 30, 2022) | ||||||||||||||
(1) Operating results | (Percentages represent changes from corresponding period of previous period) | |||||||||||||
Operating revenues | Operating income | Ordinary income | Net income | |||||||||||
Fiscal period ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||
June 30, 2022 | 3,871 | 7.7 | 2,119 | 1.5 | 1,828 | 1.6 | 1,827 | 1.6 | ||||||
December 31, 2021 | 3,595 | 13.8 | 2,088 | 16.0 | 1,799 | 18.2 | 1,798 | 18.2 | ||||||
Net income per unit | Return on | Ordinary income to | Ordinary income on | |||||||||||
unitholders' equity | total assets | operating revenues | ||||||||||||
Fiscal period ended | Yen | % | % | % | ||||||||||
June 30, 2022 | 3,236 | 2.4 | 1.3 | 47.2 | ||||||||||
December 31, 2021 | 3,343 | 2.6 | 1.4 | 50.1 | ||||||||||
(Note) CRE REIT issued 64,550 new investment units on September 15, 2021. Net income per unit for the fiscal period ended December 31, 2021 is calculated by dividing net income by the weighted average number of investment units (538,038 units) based on the number of days during the period.
(2) Distributions
Distributions | Total | Distributions | Total | |||||
per unit | distributions | Surplus | Total surplus | per unit | distributions | Distributions to | ||
(excluding | (excluding | distributions | (including | (including | Payout ratio | |||
distributions | net assets ratio | |||||||
surplus | surplus | per unit | surplus | surplus | ||||
distributions) | distributions) | distributions) | distributions) | |||||
Fiscal period ended | Yen | Million yen | Yen | Million yen | Yen | Million yen | % | % |
June 30, 2022 | 3,236 | 1,827 | 341 | 192 | 3,577 | 2,019 | 100.0 | 2.4 |
December 31, 2021 | 3,186 | 1,799 | 338 | 190 | 3,524 | 1,990 | 100.0 | 2.5 |
(Note 1) The entire amount of total surplus distributions is the return of contributions that falls under the distribution associated with the investment decrease for tax purposes.
(Note 2) The percentage of decreased surplus as a result of surplus distributions (the return of contributions that falls under the distribution associated with the investment decrease for tax purposes) in the fiscal period ended December 31, 2021 and the fiscal period ended June 30, 2022 was 0.003, respectively. The calculation of the percentage of decreased surplus is based on Article 23, Paragraph 1, Item 4 of the Order for Enforcement of the Corporation Tax Act.
(Note 3) The payout ratio in the fiscal period ended December 31, 2021 is calculated based on the following formula because CRE REIT issued new investment units.
Payout ratio = Total amount of distributions (excluding surplus distributions) ÷ Net income × 100
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(3) Financial position
Total assets | Net assets | Unitholders' equity ratio | Net assets per unit | |
As of | Million yen | Million yen | % | Yen |
June 30, 2022 | 140,960 | 75,172 | 53.3 | 133,118 |
December 31, 2021 | 140,743 | 75,334 | 53.5 | 133,406 |
(4) Cash flows | ||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at end of the fiscal period | |
Fiscal period ended | Million yen | Million yen | Million yen | Million yen |
June 30, 2022 | 3,580 | (9) | (1,989) | 6,922 |
December 31, 2021 | 3,024 | (22,338) | 20,614 | 5,340 |
2. Forecast for the 13th Fiscal Period ending December 2022 (July 1, 2022-December 31, 2022) and the 14th Fiscal Period ending
June 2023 (January 1, 2023-June 30, 2023) | (Percentages represent changes from corresponding period of previous period) | ||||||||||
Operating | Operating | Ordinary | Net income | Distributions | Distributions | Surplus | |||||
per unit (including | per unit | ||||||||||
revenues | income | income | distributions | ||||||||
surplus | (excluding surplus | ||||||||||
per unit | |||||||||||
distributions) | distributions) | ||||||||||
Fiscal period ending | Million | % | Million | % | Million | % | Million | % | Yen | Yen | Yen |
yen | yen | yen | yen | ||||||||
December 31, 2022 | 5,718 | 47.7 | 3,772 | 78.0 | 3,494 | 91.1 | 3,493 | 91.2 | 6,186 | 6,186 | 0 |
June 30, 2023 | 3,952 | (30.9) | 2,126 | (43.6) | 1,851 | (47.0) | 1,850 | (47.0) | 3,626 | 3,277 | 349 |
(Reference) Forecast net income per unit (Forecast net income/ Forecast number of investment units at the end of the fiscal period) for the 13th Fiscal Period ending December 2022 is 6,186 yen and forecast net income per unit for the 14th Fiscal Period ending June 2023 is 3,277 yen.
- Other
- Changes in accounting policies, changes in accounting estimates and retrospective restatements
- Changes in accounting policies associated with revision of accounting standards, etc.: None
- Changes in accounting policies associated with other than 1: None
- Changes in accounting estimates: None
- Restatements: None
- Total number of investment units issued and outstanding
- Total number of investment units issued and outstanding at the end of the fiscal period (including treasury investment units)
- Total number of treasury investment units at the end of the fiscal period
As of June 30, | 564,700 | units | As of December | 564,700 | units |
2022 | 31, 2021 | ||||
As of June 30, | 0 | units | As of December | 0 | units |
2022 | 31, 2021 | ||||
- Summary of financial results is not inside the scope of audit procedure by certified public accountants or audit corporations.
- Remarks on appropriate use of forecasts of performance and other special notes
Forward-looking statements presented in these financial results, including forecasts of performance, are based on information currently available to CRE REIT and on certain assumptions CRE REIT deems to be reasonable. As such, actual operating and other results may differ materially from these forecasts as a consequence of various factors. Moreover, the forecasts set forth herein should not be construed as a guarantee of distribution amounts.
Refer to the section on "Assumptions for Operating Forecasts for the 13th Fiscal Period ending December 2022 (July 1, 2022- December 31, 2022) and the 14th Fiscal Period ending June 2023 (January 1, 2023-June 30, 2023)" for details on the underlying assumptions for the forecasts above.
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Assumptions for Operating Forecasts for the 13th Fiscal Period ending December 2022 (July 1, 2022-December 31, 2022) and the 14th Fiscal Period ending June 2023 (January 1, 2023-June 30, 2023)
Item | Assumptions |
Calculation period | - 13th Fiscal Period (Ending December 31, 2022): July 1, 2022-December 31, 2022 (184 days) |
- 14th Fiscal Period (Ending June 30, 2023): January 1, 2023-June 30, 2023 (181 days) | |
- CRE REIT possesses the real estate trust beneficiary rights in the total of 20 properties as of June 30, 2022 | |
("acquired assets before the fiscal period ended June 30, 2022"). In addition to the acquired assets before the | |
fiscal period ended June 30, 2022, CRE REIT acquired the real estate trust beneficiary right in LogiSquare | |
Assets under | Sayama Hidaka (quasi-co-ownership interest ratio: 20%) on July 22, 2022 ("acquired asset for the fiscal |
period ending December 31, 2022"), and sold the real estate trust beneficiary right in LogiSquare Chitose on | |
management | |
August 3, 2022 ("sold asset for the fiscal period ending December 31, 2022 "). Thereafter, it is assumed that | |
there will be no changes (acquisition of new properties or the disposition of properties held, etc.) in the 19 | |
properties under management through June 30, 2023. | |
- However, there may be changes due to acquisition of new properties or sale of properties held. | |
- The forecasts assume that 1,774 million yen of gain on sale of the sold asset for the fiscal period ending | |
December 31, 2022 will be booked in the fiscal period ending December 31, 2022. | |
- Real estate leasing business revenues are calculated based on lease contracts that are in effect as of the date | |
of submission of these financial results and historical results. Even though one lease contract will expire | |
Operating revenues | during the fiscal period ending December 31, 2022 and two lease contracts will expire during the fiscal period |
ending June 30, 2023, we concluded new lease contracts with the existing tenants. All lease contracts will be | |
concluded at a fixed rent. | |
- The calculations assume that there will be no delinquencies or defaults on rent payments on the part of | |
tenants. | |
- Regarding real estate leasing expenses, which are the main operating expenses, expenses other than | |
depreciation are calculated by taking into consideration variable factors such as expenses assumed to be | |
incurred (taxes and public dues, entrusted property management, property insurance, repairs, etc.) based on | |
the historical results for the acquired assets before the fiscal period ended June 30, 2022, and for the acquired | |
asset for the fiscal period ending December 31, 2022, based on information provided by its previous owner | |
or previous beneficiary. | |
- Property taxes, city planning taxes and other charges are expected to be 377 million yen at the fiscal period | |
ending December 31, 2022 and 385 million yen at the fiscal period ending June 30, 2023. | |
- In general, property taxes, city planning taxes and other charges levied on transacted real estate are settled at | |
the time of acquisition by prorating for the period with the previous owners or the previous beneficiaries, and | |
CRE REIT capitalizes the amounts equivalent to such settled amounts in the acquisition costs for properties. | |
Operating expenses | Therefore, property taxes, city planning taxes and other charges levied on the acquired asset for the fiscal |
period ending December 31, 2022 will not be booked as expenses for the fiscal period ending December 31, | |
2022, and property taxes, city planning taxes and other charges levied on the acquired asset for the fiscal | |
period ending December 31, 2022 for fiscal year 2023 will be booked as expenses from the fiscal period | |
ending June 30, 2023. Property taxes, city planning taxes and other charges levied on the acquired asset for | |
the fiscal period ending December 31, 2022 are expected to be 10 million yen for the fiscal period ending | |
June 30, 2023 and following periods. Property taxes, city planning taxes and other charges levied on the | |
acquired asset for the fiscal period ending December 31, 2022, which will be capitalized in acquisition costs, | |
are expected to be total 9 million yen. | |
- Depreciation is calculated using the straight line method, and it is expected to be 657 million yen in the fiscal | |
period ending December 31, 2022 and 657 million yen in the fiscal period ending June 30, 2023. | |
- Entrusted property management fees are expected to be 210 million yen for the fiscal period ending | |
December 31, 2022 and 220 million yen for the fiscal period ending June 30, 2023. | |
- Non-operating expenses for the fiscal period ending December 31, 2022 are expected to be 278 million yen. | |
This amount will include the payment of 261 million yen for interest and other financing-related expenses | |
Non-operating | and 11 million yen for the amortization of investment unit issuance costs. |
expenses | - Non-operating expenses for the fiscal period ending June 30, 2023 are expected to be 275 million yen. This |
amount will include the payment of 260 million yen for interest and other financing-related expenses and 8 | |
million yen for the amortization of investment unit issuance costs. | |
- It is assumed that total interest-bearing debt will be 60,669 million yen at the end of the fiscal period ending | |
Interest-bearing debt | December 31, 2022 and 60,669 million yen at the end of the fiscal period ending June 30, 2023. |
- In the fiscal period ending December 31, 2022, while long-term borrowings of 2,400 million yen became due | |
on July 29, 2022, of which 1,200 million yen was repaid by using free cash and the remaining 1,200 million | |
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yen was refinanced.
- In the fiscal period ending June 30, 2023, while long-term borrowings of 3,680 million yen will become due on January 31, 2023, it is assumed that the same amount will be refinanced.
- The loan-to-value (LTV) ratio is expected to be around 43.0% at the end of the fiscal period ending December 31, 2022 and around 43.5% at the end of the fiscal period ending June 30, 2023. The following formula is
used to calculate the LTV ratio, with numbers rounded off to the first decimal place. LTV ratio = Total interest-bearing debt ÷ Total assets × 100
- The assumptions for these forecasts are based on a total number of investment units issued of 564,700, as of | |
the date of submission of these financial results. The forecasts do not factor in any assumption of a change | |
in the number of investment units through June 30, 2023 due to factors such as the issuance of new investment | |
Investment units | units. |
- The distributions per unit (excluding surplus distributions) and the surplus distributions per unit are calculated | |
based on a total number of investment units issued of 564,700 for the fiscal period ending December 31, | |
2022 and the fiscal period ending June 30, 2023. | |
- Distributions per unit (excluding surplus distributions) are calculated in accordance with CRE REIT's policy | |
Distributions per unit | on the distribution of cash as stipulated in its Articles of Incorporation. |
(excluding surplus | - Distributions per unit (excluding surplus distributions) may change for a variety of reasons, including |
distributions) | changes in CRE REIT's investment assets, changes in leasing revenues due to tenant movements, etc., and/or |
the occurrence of unforeseen repairs and maintenance, etc. |
- Surplus distributions per unit are calculated in accordance with the policies stipulated in CRE REIT's Articles of Incorporation as well as the asset management guidelines provided in the asset management company's internal rules.
- It is assumed that there will be no specific possibility of significant deterioration in the economic environment, the real estate market conditions or CRE REIT's financial condition.
- While CRE REIT has a policy of continuously implementing surplus distribution for each fiscal period, in principle, with an amount equivalent to 30% of depreciation as a benchmark, CRE REIT has decided to implement this policy flexibly to level distributions within the range equivalent to 30% of depreciation.
- In addition, in cases where distributions per unit are expected to decline temporarily to a certain extent due
Surplus distributions | to the dilution of the investment unit value or a significant financial burden as a result of the procurement of |
per unit | funds through the issuance of new investment units or for other reasons, CRE REIT may implement |
temporary surplus distributions, in addition to the continuous surplus distributions, with a view to | |
standardizing the amount of distributions per unit. However, the total amount of continuous surplus | |
distributions and temporary surplus distributions shall not exceed the amount equivalent to 60% of | |
depreciation for the relevant fiscal period. |
- The amount of surplus distributions (return of contributions) may change due to factors such as the economic environment, trends in the real estate market, the situation surrounding owned assets, and financial conditions, and the surplus distribution (return of contributions) may not be implemented as a result.
- In the fiscal period ending December 31, 2022, considering anticipated levels of increased net income from gain on sale, it is assumed that CRE REIT will not implement continuous surplus distributions.
- It is assumed that there will be no change in legislation, taxation, accounting standards, listing regulations
imposed by the Tokyo Stock Exchange, rules and requirements imposed by The Investment Trusts | |
Other | Association, Japan, etc., that will impact the above forecasts. |
- It is assumed that there will be no unforeseen material changes in general economic trends, real estate market conditions, etc.
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3. Financial Statements
(1) Balance Sheet
(Thousands of yen) | ||||
As of December 31, 2021 | As of June 30, 2022 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 2,738,067 | 4,403,111 | ||
Cash and deposits in trust | 3,930,134 | 3,850,307 | ||
Operating accounts receivable | 145,642 | 128,511 | ||
Prepaid expenses | 153,526 | 155,892 | ||
Consumption taxes receivable | 666,276 | - | ||
Total current assets | 7,633,647 | 8,537,822 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings in trust | 67,620,215 | 67,631,265 | ||
Accumulated depreciation | (3,352,910) | (3,971,689) | ||
Buildings in trust, net | 64,267,304 | 63,659,575 | ||
Structures in trust | 3,163,201 | 3,163,581 | ||
Accumulated depreciation | (129,400) | (152,671) | ||
Structures in trust, net | 3,033,800 | 3,010,909 | ||
Tools, furniture and fixtures in trust | 3,322 | 3,322 | ||
Accumulated depreciation | (740) | (1,027) | ||
Tools, furniture and fixtures in trust, net | 2,582 | 2,295 | ||
Land in trust | 65,374,983 | 65,374,983 | ||
Total property, plant and equipment | 132,678,671 | 132,047,763 | ||
Intangible assets | ||||
Other | 866 | 2,419 | ||
Total intangible assets | 866 | 2,419 | ||
Investments and other assets | ||||
Investment securities | 10,500 | 10,500 | ||
Long-term prepaid expenses | 338,437 | 297,275 | ||
Deferred tax assets | 9 | 13 | ||
Leasehold and guarantee deposits | 10,000 | 10,000 | ||
Total investments and other assets | 358,947 | 317,789 | ||
Total non-current assets | 133,038,485 | 132,367,972 | ||
Deferred assets | ||||
Investment unit issuance expenses | 45,381 | 30,696 | ||
Investment corporation bond issuance costs | 26,049 | 23,865 | ||
Total deferred assets | 71,431 | 54,562 | ||
Total assets | 140,743,564 | 140,960,356 | ||
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CRE Logistics REIT Inc. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 12:12:15 UTC.