GLOBAL LOGISTIC PROPERTIES LTD 29 July 2015
Expand Fund Management Platform
• GLP to acquire US$4.55 billion1 US logistics portfolio ("Acquisition Portfolio") from
Industrial Income Trust
• Portfolio to be acquired at a 5.6%2 cap rate
• GLP expects to own 100% as of closing & pare down to 10% by Apr 2016
- Strong indicative demand from major institutional investors
- Initial equity commitment to be funded by cash on hand and existing credit facilities
• GLP's 10% equity stake expected to generate compelling returns within the first year of investment
- Significant economies of scale; minimal additional G&A to run the portfolio
High Quality Portfolio with Embedded Growth
• GLP consolidates position as 2nd largest logistics property owner and operator in US
within a year of market entry
• 58 million sq ft logistics portfolio is one of the highest quality portfolios in the US
• Portfolio is selectively aggregated through over 100 separate transactions over a period of 5 years
• 20 major markets (largest markets include Los Angeles, Metro D.C. & Pennsylvania)
• Average building age of 15 years
• 93% lease ratio3, with potential to increase to 95%
Note:
1. Subject to transaction costs
2. Year one cash NOI yield based on purchase price
3. As of June 30, 2015
• GLP's 10% equity stake expected to generate compelling returns within the first year of investment
• Significant growth in fees with minimal incremental overhead
• Funding via existing credit facilities and cash, long-term debt facility is already fully committed
Initial Equity Funding
• Balance sheet capacity facilities funding through cash on hand and existing credit facilities
• GLP does not need to issue additional equity to fund this transaction
Loan Details
• ~60% Loan-to-Value
• Committed facilities: 5 -10 year non-recourse, interest only debt
GLP's 10% Equity Investment
US$190 million
Financial Impact
• Assuming GLP's 10% stake, we expect to generate compelling returns within the first year of investment
Note:
1. Includes transaction costs 3
2. Any discrepancy between sum of individual amounts and total is due to rounding
(mm sq ft)
US Competitive Landscape
350
331
300
250
200
173
150
100
121
86 85 85
73 70 63 63
50
0
As of March 31, 2015
Chart represents total operating/in-service industrial presence in the US as presented in latest supplemental materials; office and retail properties are excluded
Note:
1. Subject to transaction costs 4
2. Year one cash NOI yield based on purchase price
3. As of June 30, 2015
Portfolio Strengthens US Market Presence
GLP US
Seattle
4.1 MSF
Acquisition Portfolio
Portland
4.0 MSF
15.0-20 MSF
Reno
12.6 MSF
Chicago
8.9 MSF
Colum
Pennsylvania
12.1 MSF
bus
New Jersey
9.6 MSF
10.0-14.9 MSF
7.5-9.9 MSF
Bay Area
6.4 MSF
Salt Lake City
1.6 MSF Las Vegas
2.7 MSF
Denver
2.5 MSF
Indianapolis
5.4 MSF
3.5 MSF
Cincinnati
3.9 MSF
DC / Baltimore
8.4 MSF Southern Virginia
3.7 MSF
Charlotte
5.0-7.4 MSF
2.5-4.9 MSF
0-2.4 MSF
Southern CA
16.4 MSF
Phoenix
7.2 MSF
El Paso
Austin
Dallas
10.2 MSF
Nashville
3.6 MSF Memphis
3.3 MSF
Atlanta
8.1 MSF
2.5 MSF
Orlando
Portfolio Size
GLP US1
(Pre Acquisition)
Acquisition
Portfolio
Post
Acquisition
3.2 MSF
4.3 MSF Houston
5.1 MSF
San Antonio
2.5 MSF
Tampa
2.0 MSF
3.1 MSF
South Florida
(million sq ft) 115 58 173
Number of Buildings 1,143 287 1,430
Lease Ratio 92% 93% 92% WALE (years) 3.0 5.5 3.8
Average In-Place Rent
(US$ per sq ft per year)2 4.76 4.79 4.77
4.0 MSF
97% of assets are located in markets where we currently operate
Map shows major markets; certain markets have been omitted
Note: 5
1. Data as of March 31, 2015
2. Annualized Base Rent
Chino Distribution Center
Inland Empire West
Hofer Ranch Distribution Center
Inland Empire West
Sorensen Industrial Center
South Bay, Los Angeles
Bolingbrook Commercial Center
Chicago, IL
Agave Distribution Center
Phoenix, AZ
Marina West A
Miami, FL
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Breakdown of Leased Area
Others
35%
Specialty Retail
4%
Transport/3PL
11%
Food & Beverage
8%
Home
Improvement
10%
Electronics
6%
Top Markets (by Leased Area)
Market % of Leased
Area
1 Los Angeles 13.9%
2 Eastern Pennsylvania 9.3%
3 D.C. / Baltimore 8.9%
4 Atlanta 8.0%
5 Phoenix 7.2%
6 Chicago 6.9%
7 Houston 6.6%
8 Dallas 6.3%
Packaging
4%
Apparel
5%
Automotive
6%
Online Retail
5%
Manufacturing
6%
9 Nashville 4.7%
10 New Jersey 4.6%
Total 76.4%
10 Largest Customers by Leased Area
5.0%
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
4.6%
3.6%
2.7% 2.4% 2.4%
1.6% 1.5% 1.4%
1.2% 1.1%
Amazon Home Depot CEVA Logistics HanesBrands Harbor Freight
Tools
Phillips-Van
Heusen
Belkin GlaxoSmithKline Samsung Bunzl Distribution
7
• Transaction deepens relationships with existing customers
• Increases ability to better serve customer needs in multiple locations
• Enhances GLP's "Network Effect" in the US in key markets and opportunities for further collaboration
Top 10 Customers (by Leased Area) | |||
No. | Customer | % of Leased Area | |
No. | Customer | Before Acquisition | After Acquisition |
1 Whirlpool 3.4% 2.3% |
2 Home Depot 1.3% 2.1%
3 Amazon 0.8% 2.1%
4 FedEx 1.6% 1.4%
5 Ozburn-Hessey Logistics (OHL) 1.7% 1.2%
6 CEVA Logistics 0.1% 1.0%
7 HanesBrands 0.0% 0.8%
8 Harbor Freight Tools 0.0% 0.8%
9 Exel 0.9% 0.7%
10 Petco 1.0% 0.6%
Total 10.8% 13.0%
2 Reno 11.1% 7.3%
3 Eastern Pennsylvania 6.2% 7.2%
4 New Jersey 6.5% 5.9%
5 Dallas 5.9% 6.0%
6 Chicago 3.7% 4.8%
7 Atlanta 2.9% 4.6%
8 D.C. / Baltimore 2.3% 4.5%
9 Phoenix 1.8% 3.6%
10 Bay Area 4.4% 3.6%
Total 52.6% 57.6%
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Appendix: Favorable Market Dynamics Expected to Continue
Trade, output and employment levels are all growing, generating rising demand for industrial real estate, highlighted by 5 consecutive years of positive absorption. Despite the unprecedented growth, the room for e-commerce opportunities remains vast. Supply remains well-below historical levels: the supply level in
2014 satisfied only half the demand.
2.5%
2.0%
Strong Demand Outpacing Supply Significant Growth in E-Commerce Activity
Annual E-Commerce Retail Sales ($ billions)
350
300
297
1.5%
1.0%
0.5%
0.0%
250
200
150
142 145
7-year CAGR: 13%
199
169
229
260
-0.5%
100
-1.0%
-1.5%
-2.0%
Completions Net Absorption
50
0
2008 2009 2010 2011 2012 2013 2014
Source: CBRE-EA
Source: US Census Bureau
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The information contained in this presentation (the "Information") is provided by Global Logistic Properties Limited (the "Company") to you solely for your reference and may not be retransmitted or distributed to any other person. The Information has not been independently verified and may not contain, and you may not rely on this presentation as providing, all material information concerning the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of the Company or its subsidiaries. Please refer to our unaudited financial statements for a complete report of our financial performance and position. None of the Company or any of their members, directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) from any use of this presentation or its contents or otherwise arising in connection therewith.
This presentation contains statements that constitute forward-looking statements which involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company with respect to the consolidated results of operations and financial condition, and future events and plans, of the Company. These statements can be recognised by the use of words such as "believes", "expects", "anticipates", "intends", "plans", "foresees", "will", "estimates", "projects", or words of similar meaning. Similarly, statements that describe the Company's objectives, plans or goals also are forward-looking statements. All such forward-looking statements do not guarantee future performance and actual results may differ materially from those in the forward-looking statements as a result of various factors and assumptions. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of the management of the Company on future events. The Company does not undertake to revise forward-looking statements to reflect future events or circumstances. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct.
By accepting and/or viewing the Information, you agree to be bound by the foregoing limitations.
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Investor Relations ContactAmbika Goel, CFA
SVP - Capital Markets and Investor Relations
Tel: +65 6643 6372
Email: agoel@glprop.com
GLP Tianjin Pujia
China
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