Property Overview
| Category | Property overview |
|---|---|
| Address | 2157 Stacie’s Way, Greenwood, IN |
| Land Area | 137.79 acres |
| Lease Area | 955,844 sq.ft |
| Office Area | 38,233 sq.ft |
| Building Coverage Ratio | 13.9% |
| Parking Spaces | 1,409 spaces |
| Tenant | FedEx Ground Package System Inc. |
| Lease term | 15 years |
| Lease Expiry | January 31, 2032 |
| Extension Options | Three times for 10 years each |
| Rent Increase | 5.0% increase every 5 years |
| Expansion option | Possible expansion of 195,000 square feet |
Regional Analysis (Macro)
Indianapolis, IN : Investing in regions emerging as hubs for logistics in the United States.
Indiana, a state with a population and economic concentration growing due to its favorable business environment and central location in transportation:
·The Indianapolis metropolitan area (MSA) has grown by 9.9% over the past decade, adding approximately 210,000 people and currently totaling around 2.14 million.
·Indiana reduced its corporate tax rate from 5.5% to 4.9% in 2021, fostering a favorable business environment. It has been ranked 1st in the Midwest for Business Incentives and Entrepreneur Friendliness.
Based on traditional industries such as finance, insurance, and manufacturing, Indianapolis drives growth in healthcare and IT sectors:
·The Gross Metropolitan Product (GMP) of the Indianapolis area totals $164 billion, ranking it as the 28th largest in the U.S. Industries include finance, insurance, manufacturing, education, healthcare, and retail. Fortune 500 companies like Anthem, Eli Lilly, and Simon Property Group have their headquarters here.
·To foster innovation and entrepreneurship, the state government has invested $1 billion, aiming to expand industries such as IT and healthcare, viewed as promising sectors for the future.
Indiana, located in the heart of the United States, is known as the "Crossroads of America":
·Positioned in the Midwest of the U.S., Indiana serves as a pivotal hub for trade and logistics, boasting extensive highway, railway, and aviation infrastructure.
·Indianapolis International Airport handles approximately 9.7 million passengers and 1 million tons of cargo annually, operating as FedEx's second-largest logistics hub.
·Interstate highways I-65 (connecting north and south) and I-70 (connecting east and west) intersect in Indiana, providing easy accessibility to all regions. Approximately 50% of the U.S. population can be reached within a 24-hour drive.
Source: CBRE, JLL, C&W, US Census Bureau, Statista, FRED Economic Data, etc.
Location Analysis (Micro)
Asset Location:
·From the property to downtown Indianapolis, it's accessible within approximately 20 minutes via Interstate-65 highway (distance: 33km). Utilizing the Interstate-465 beltway, which encircles Indianapolis, access to Indianapolis International Airport can be achieved within about 25 minutes (distance: 38km).
·Particularly noteworthy is the proximity to the FedEx Express Hub Indianapolis located within Indianapolis International Airport, strategically positioning the property as a focal point for FedEx shipments.
Tenant Overview
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·FedEx Corporation is one of the global top three logistics and transportation companies (land, sea, air), serving over 220 countries worldwide.
·It operates through six business units: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, FedEx Office, and FedEx Logistics.
·As of 2023 (end of May), FedEx Corporation reported total assets of KRW 121 trillion, total revenue of KRW 125 trillion, and operating profit of KRW 6.8 trillion.
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·FedEx Ground Package System, Inc. (FXG) is an unlisted subsidiary of FedEx Corporation.
·FXG specializes in ground logistics, particularly serving the Business-to-Business segment across the United States and Canada.
·As of 2023 (end of May), FXG reported total revenue of KRW 46.5 trillion and operating profit of KRW 4.4 trillion, accounting for approximately 37% of FedEx's total revenue.
Proportion of sales by Business division (as of Feb. 29, 2024)
단위 : $ m, %
| Category | Content |
|---|---|
| Company Name | FedEx Corporation |
| Headquarters | Memphis, Tennessee, USA |
| Year Established | 1973 |
| Stock Exchange | NYSE (TICKER : FDX) |
| Total Assets¹ | $87bn |
| Annual Revenue¹ | $90bn |
| Market Capitalization² | $62.4bn |
| Number of Employees | Approximately 529,000 |
| Credit Rating | BBB (S&P) |
| Sales and Proportion by business division | FY 2021 | FY 2022 | FY 2023 | Feb. 29, 2024 |
|---|---|---|---|---|
| FEDEX EXPRESS | 42,078 | 45,814 | 42,743 | 30,440 |
| 50% | 49% | 47% | 46% | |
| FEDEX GROUND | 30,496 | 33,232 | 33,507 | 25,762 |
| 36% | 36% | 37% | 39% | |
| FEDEX FREIGHT | 7,833 | 9,532 | 9,632 | 6,776 |
| 9% | 10% | 11% | 10% | |
| FEDEX SERVICES | 32 | 253 | 301 | 201 |
| 0% | 0% | 0% | 0% | |
| Others | 3,520 | 4,681 | 3,972 | 2,405 |
| 4% | 5% | 4% | 5% | |
| Total | 83,959 | 93,512 | 90,155 | 65,584 |
| 100% | 100% | 100% | 100% |
1) 2024 10-K (as of May 2023) ※ Applied exchange rate: USD/KRW 1,389.7
2) Based on closing price as of June 21, 2024
Souce : FedEx IR, FedEx Annual Report, 10-K
FedEx Ground Hub – Core Function of the Logistics Network
·FedEx Ground is the first North American small package ground transportation company specializing in low-capacity cargo transportation across the United States and parts of Canada.
·With a total of 181,000 employees (out of FedEx's total 530,000 employees) and a fleet of 96,000 vehicles, it manages an extensive logistics network of 40 hubs across the U.S., handling an average of 12 million packages daily.
·"Hub" facilities like this one are critical distribution centers within the FedEx Ground logistics network. They receive all packages from various distribution centers and then redistribute them nationwide.
