Further to Global Logistic Properties Limited's (GLP) announcement last Friday on the minimal impact expected on its portfolio in Japan, GLP has further assessed and refined its estimates of damage to just JPY 3.17b or US$38.8m which is less than 0.6% of its total portfolio valuation in Japan. Loss of rental income is expected at JPY 0.89b or US$10.8m. The majority of the repairs to its properties will take place in the next 30 days. The minimal impact and prompt response reflects positively on the quality of its assets as well as the expertise and experience of the management team. Further, as with most real estate assets in earthquake-prone Japan, insurance policies covering the assets are likely to include clauses to cushion potential effects of earthquake shocks. Buildings in Japan are also subjected to one of the strictest building codes in the world, evident from the minimal damage suffered by the nation's buildings despite the world's fifth most powerful earthquake since 1900 at 8.9 magnitude on the Richter scale.
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