Global One Real Estate Investment Corp.
(Code: 8958)
Semiannual Report
For the 38th Period
From 1 April 2022 to 30 September 2022
https://www.go-reit.co.jp/en/
About GOR
The investment theme of GOR is to acquire superior office buildings that have a competitive edge
Global One Real Estate Investment Corp. ("GOR") is a Japanese Real Estate Investment Trust (J-REIT) listed on the Tokyo Stock Exchange (TSE: 8958) that builds upon considerable real estate expertise in pursuit of maximizing unitholders' returns. GOR recognizes the importance on investing in properties that have medium- to long-term competitiveness, and the factors of "closer" (i.e., conveniently situated), "newer" (recently built) and "larger" (large-sized) are taken into consideration accordingly. However, GOR does not strongly adhere to these factors and conducts investments focusing on the unique competitiveness of properties, taking into account area, location and building.
https://www.go-reit.co.jp/en/Address: 4-1Kojimachi, Chiyoda-kuTokyo, Japan 102-0083
Phone: +81-3-3262-1494
Table of Contents | |
Corporate Profile / Milestones -------------------------------------------- | 2 |
Financial Highlights --------------------------------------------------------- | 6 |
Investment Unit Price Performance / Business Structure ---------- | 7 |
Property Map ----------------------------------------------------------------- | 8 |
Portfolio List ------------------------------------------------------------------- | 9 |
Property Overview ---------------------------------------------------------- | 11 |
Portfolio Highlights --------------------------------------------------------- | 15 |
Financial Summary | |
Balance Sheet ------------------------------------------------------------ | 16 |
Statement of Income and Retained Earnings--------------------- | 18 |
Statement of Changes in Net Assets-------------------------------- | 19 |
Statement of Cash Distributions ------------------------------------ | 20 |
Statement of Cash Flows---------------------------------------------- | 21 |
Notes to Financial Statements --------------------------------------- | 22 |
Independent Auditor's Report-------------------------------------------- | 37 |
Disclaimer / Contact --------------------------------------------------------- | 40 |
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Corporate Profile / Milestones
GOR was established in April 2003 under the Act on Investment Trusts and Investment Corporations of Japan ("the Investment Trust Act"). In September 2003, GOR achieved an IPO on the Real Estate Investment Trust Section of the Tokyo Stock Exchange (Securities Code:8958) where an additional 48,000 units were issued and 23,623 million yen in funds were raised.
The investment theme of GOR is to acquire superior office buildings that have a competitive edge
GOR primarily invests in real estate (comprising office buildings and parcels of land on which those buildings are situated), securities backed by that real estate, trust beneficial interests in that real estate, and other types of assets. Target regions include Japan's three major metropolitan areas (the Tokyo Metropolitan Area, the Chubu Area, and the Kinki Area) as well as other major cities with populations of over 500,000 that are identified as government-designated cities. The factors of "closer" (i.e., conveniently situated), "newer" (recently built) and "larger" (large-sized) are taken into consideration accordingly. However, GOR does not strongly adhere to these factors and conducts investments focusing on the unique competitiveness of properties, taking into account area, location and building.
GOR Portfolio includes 11 office buildings with the following features (as of 30 September 2022).
Portfolio occupancy rate | 96.7 % |
Average building age | Approx. 18.5 years |
Total acquisition price | 191,194 million yen |
Average acquisition price | 17.3 billion yen |
Total leasable area | 131,844 sqm |
Average leasable area | 11,986 sqm |
GOR's financing activities
In order to procure funds, GOR may borrow funds and issue investment corporation bonds, as well as issue investment units. With regard to interest-bearing liabilities, GOR makes it a principle to borrow long-term loans payable with fixed interest rates from the perspective of managing assets over the long term and reducing the risk of fluctuating interest rates in the future.
During the period under review, GOR decided on 9 September 2022 to issue fresh bonds, as described below, in order to repay the Series No.10 unsecured bonds (3,000 million yen) that expired 28 September 2022. The payment was completed on 27 September 2022.
Name of bond | Series No. 16 unsecured bonds (with pari passu clause) (Green Bonds) |
Issue amount | 3,000 million yen |
Issuance price | 100 yen per 100 yen face value |
Interest rate | 0.50% per annum |
Payment date | 27 September 2022 |
Collateral/guarantee | The bonds were issued on an unsecured and unguaranteed basis with no |
specific assets reserved. | |
Redemption date and method | The total amount to be redeemed on 27 September 2027. The investment |
corporation bonds may be repurchased and cancelled at any time after the date | |
of payment unless otherwise specified by the transfer agent. | |
Ratings | AA- (Japan Credit Rating Agency, Ltd.) |
In addition, GOR borrowed 5,000 million yen on 30 September 2022 to execute repayment of existing loans of 5,000 million yen due for repayment on 30 September 2022.
As of 30 September 2022, unitholders' capital (net amount) was 92,401 million yen, the total number of units issued and outstanding was 948,996, the unpaid loan balance was 75,500 million yen, and the total balance of investment corporation bonds issued and outstanding was 18,700 million yen.
GOR's credit rating status as of 30 September 2022:
Rating agencies | Rating descriptions | ||
Japan Credit Rating Agency, Ltd. | Long-term Issuer Rating: | AA- | |
Outlook: | Stable | ||
Bonds: | AA- | ||
2 |
Financial results and dividend distributions
GOR recorded operating revenue of 5,691 million yen, operating profit of 2,679 million yen, ordinary profit of 2,293 million yen, and net income of 2,292 million yen for the 38th Period.
Regarding dividends, while anticipating the application of tax exemption (under Article 67-15 of the Act on Special Measures Concerning Taxation) that will allow profit distributions to become tax deductible, GOR decided to distribute 2,302 million yen, which is the amount of unappropriated retained earnings after adding 9 million yen of reversal of reserve for reduction entry. As a result, dividend per unit is 2,426 yen.
Significant Subsequent Events
(a)Issuance of new investment units
GOR resolved at board meetings held on 17 November 2022 and 29 November 2022 to issue new investment units as follows. Payment for the issuance of new investment units through public offering and through third-party allotment was completed on 5 December 2022 and 22 December 2022, respectively. As a result, unitholders' capital (net amount) totaled 100,016,522,540 yen and the total number of investment units issued and outstanding increased to 1,022,826 units as of 22 December 2022.
(1) Issuance of new investment units through public offering (primary offering)
Number of investment units to be offered | 70,330 | units | |
Issue price (offer price) | 106,762 | yen per unit | |
Total issue price (total offer price) | 7,508,571,460 | yen | |
Amount to be paid in (issue value) | 103,148 | yen per unit | |
Total amount to be paid in (total issue value) | 7,254,398,840 | yen | |
Payment date | 5 December 2022 | ||
Use of funds | Application to part of funds for acquisition of | ||
THE PEAK SAPPORO and Tomatsu Building, | |||
described later in the section "(c)Acquisition of | |||
Asset (including scheduled acquisition)." | |||
(2) Issuance of new investment units through third-party allotment | |||
Number of investment units to be offered | 3,500 | units | |
Amount to be paid in (issue value) | 103,148 | yen per unit | |
Total amount to be pain in (total issue value) | 361,018,000 | yen | |
Payment date | 22 December 2022 | ||
Allotee | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | ||
Use of funds | Application to part of funds for future acquisition | ||
of specified assets or repayment of loans |
(b)Borrowings
GOR borrowed funds to be applied to part of the funds for acquisition of THE PEAK SAPPORO and Tomatsu Building, described later in the section "(c) Acquisition of Asset (including scheduled acquisition)".
Short-term loan
Loan | Interest rate | Drawdown date | Maturity date | Collateral/ | ||||
Lenders | amount | Repayment | ||||||
(million yen) | method | |||||||
Bank base rate | Unsecured | |||||||
MUFG | (JBA 1-month | (*2) / | ||||||
2,400 | Japanese Yen TIBOR) | 7 December 2022 | 26 September 2023 | Repayment | ||||
Bank, Ltd. | ||||||||
+0.140%(*1) | in full at | |||||||
(Floating rate) | maturity | |||||||
(*1) | Interest shall be paid on the end of each month, and the first interest payment date is the end of | |||||||
December 2022. (Partial) repayment of the principal is permissible on the interest payment date. | ||||||||
The base interest rate applicable to the calculation period of interest payable on each interest | ||||||||
payment date shall be JBA 1-month Japanese Yen TIBOR as of two business days prior to the | ||||||||
previous interest payment date. JBA 1-month Japanese Yen TIBOR is shown on the website of | ||||||||
General | Incorporated | Association | JBA | TIBOR | Administration | |||
(http://www.jbatibor.or.jp/english/rate/) | ||||||||
(*2) | Under some conditions, the loan may be collateralized by real estate trust beneficial interests etc. | |||||||
owned by GOR. | ||||||||
3 |
(c)Acquisition of Asset (including scheduled acquisition)
- GOR acquired the property on 7 December 2022, as outlined below.
Name of building | THE PEAK SAPPORO | ||
Type of specified assets | Trust beneficial interests in real estate | ||
Location (Indication of registered building) | 3-23-1,Kita-Jujo-Nishi,Kita-ku, Sapporo City, Hokkaido | ||
Land (*1) | Ownership | Ownership (Trust beneficial interests) | |
Land area | 2,549.13 sqm | ||
Building (*1) | Ownership | Ownership (Trust beneficial interests) | |
Use | Office and retail | ||
Floor area | 12,823.15 sqm | ||
Year built | June 2021 | ||
Structure | 9-story plus 1 basement level S with flat roof | ||
Contract date | 24 October 2022 | ||
Acquisition price (*2) | 17,000 million yen | ||
Acquisition date | 7 December 2022 | ||
Seller | Fuyo General Lease Co., Ltd. |
(*1) "Land area", "use", "floor area", "year built", and "structure" are shown based on the registration, unless otherwise stated.
(*2) The acquisition price represents the prices described in the purchase agreement, excluding related expenses, settlement amount of property tax and city planning tax, consumption tax and local consumption tax.
- GOR decided the acquisition of the asset on 17 November 2022 as follows.
Name of building | Tomatsu Building | |
Type of specified assets | Trust beneficial interests in real estate | |
Location (Residence indication) | 1-17-1, Nishiki, Naka-ku,Nagoya-City, Aichi | |
Land (*1) | Ownership | Ownership (Trust beneficial interests) |
Land area | 2,550.37 sqm | |
Building (*1) | Ownership | Ownership (Trust beneficial interests) |
Use | Office and Parking | |
Floor area | 23,161.27 sqm | |
Year built | March 1995 | |
Structure | 12-story plus 2 basement levels S, with a flat | |
roof | ||
Contract date | 17 November 2022 | |
Scheduled acquisition price (*2) | 17,300 million yen | |
Scheduled acquisition date | 28 April 2023 | |
Seller | Fuyo General Lease Co., Ltd. |
(*1) "Land area,""use,""floor area,""year built," and "structure" are shown based on the registration, unless otherwise stated. Floor area shows the total floor area of the primary building and annexes.
(*2) The scheduled acquisition price represents the prices described in the purchase agreement, excluding related expenses, settlement amount of property tax and city planning tax, consumption tax and local consumption tax.
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Global One Real Estate Investment Corporation published this content on 22 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 December 2022 08:42:06 UTC.