• Capital recycling activity likely to increase as macro uncertainty fades – Although Q1-3 FY12/25 results show weakening margins, we think the margin dilution is temporary and will recover in the longer-term as the Company monetizes its current real estate portfolio and recycle the capital towards new investments. With more certainty on Japan’s fiscal policy under new Prime Minister Takaichi and signs that the US-Japan trade relationship is on a more positive trajectory, deal activity in the Tokyo CRE market is likely to pick up in the coming quarters. We believe Loadstar Capital is in a strong position to capitalize on the increase in deal activity to monetize its real estate properties and redeploy capital towards its pipeline of acquisition targets.
