Japan Logistics Fund sells two properties to boost portfolio value

TOKYO, May 27 (Pulse News Wire) – Japan Logistics Fund,Inc. (8967.T) announced plans to sell two key properties, the Urayasu Chidori Logistics Center III and Kawasaki Logistics Center, to enhance asset value and fund further investments.

The Urayasu property, valued at more than its appraisal price, is set to be sold in June 2026 for approximately ¥2.400 billion, ensuring a yield rate of 3.1%. Meanwhile, the Kawasaki Logistics Center will undergo phased sales across four stages until February 2028, generating total proceeds of ¥12.40 billion. Both transactions aim to achieve an internal rate of return (IRR) of 12.3% and 6.1%, respectively, during their holding periods.

The company also revised its forecast for the fiscal years ending July 2026 and January 2027, targeting continued growth in FFO per share (FFOPU). With a projected average annual growth rate of 2.2% and a FFOPU target of ¥2,500 for the fiscal year ending January 2026, Japan Logistics Fund expects to increase distribution per unit (DPU) while maintaining a focus on capital recycling strategies. The firm's strategy includes enhancing rental increases, optimizing asset efficiency, and making disciplined investments to maximize returns.