Japan Logistics Fund to Buy Back Up to 21,000 Units of Its Own Shares

TOKYO, Jul 30 (Pulse News Wire) – Japan Logistics Fund,Inc. (8967.T) announced that its board of directors decided on July 30 to repurchase up to 21,000 units of its own shares, representing a total value of up to ¥2 billion.

The share buyback program will run from August 03, 2026 to December 30, 2026. Additionally, the company plans to cancel all acquired shares by January 29, 2027. The decision to repurchase shares stems from the current situation where the investment trust's per-unit price is below its net asset value (NAV). To address this issue, the company aims to enhance portfolio profitability through rent increases and capital recycling, targeting a per-unit FFO growth rate of over 2.2% percent annually, reaching ¥2,500 per unit by January 2028. Furthermore, the company seeks to increase per-unit distributions to ¥2,300 by the same period.

In conjunction with the share buyback, the company also intends to liquidate all acquired shares during the fiscal year ending January 2027. The buyback strategy involves purchasing shares at prices below their implied cap rates, which are expected to yield returns superior to NOI yields anticipated from property acquisitions. The company’s target implied cap rate for share purchases is set at 4.5% percent. On July 30, the company submitted a temporary report to the Kanto Regional Finance Bureau detailing the plan. As of July 30, the company held 294 units of its own shares, all of which are scheduled to be canceled on July 31, 2026.