Property Overview
| Category | Property overview |
|---|---|
| Address | 1950 102nd Ave, St. Petersburg, FL 33716 |
| Land Area | 62.93 Acres |
| Lease Area | 236,976 SF |
| Building Coverage Ratio | 8.65% |
| Parking Spaces | 432 spaces / 61 stalls |
| Tenant | FedEx Ground Package System Inc. |
| Lease Commencement | February 1, 2017 |
| Lease Expiry | January 31, 2032 |
| Extension Options | Two extensions of 5 years each (maximum expiry date of January 31, 2042) |
| Lease Type | NNN (tenant is responsible for property taxes, maintenance fees, and insurance premiums) |
| Rent Increase | Base rent : February 2022 (+2.0%), February 2027 (+2.0%) Extensions : February 2032 (+11%), February 2037 (+5.0%) |
| Early Termination Clause | None |
Regional Analysis (Macro)
Tampa Metro, FL: Investing in regions with high growth potential
Located in the state of Florida, where population and wealth are concentrated due to its mild climate and business-friendly environment
·The third most populous state in the U.S. (approximately 22.61 million as of 2023), Florida experienced a population increase of 15.7% (about 3 million people) over the past ten years since 2013.
·Due to migration from other states, Florida recorded a net inflow of $39 billion in Adjusted Gross Income as of 2023, the largest concentration of wealth among states in North America.
·This influx is attributed to the mild climate, 0% state income tax, business-friendly tax policies, and low cost of living.
The second-largest metropolitan area in Florida, consistently recording a steady population growth rate.
·The Tampa metropolitan area has a population of approximately 3.34 million (as of 2023), making it the second-largest in Florida. Over the past ten years, it has experienced a high population growth rate of 16%, ranking 17th among all MSAs.
·Six Fortune 500 companies have their headquarters in Tampa, including Tech Data, Jabil, and Mosaic.
·With a diversified industrial structure comprising healthcare, finance, tourism, manufacturing, and high-tech industries, Tampa recorded a low unemployment rate of 2.9% at the end of 2019. Following a rapid recovery from COVID-19, the unemployment rate stood at 3.3% as of April 2024.
As one of the preferred destinations among major companies for relocation, attracting investments from US investors:
·Recently, ARK Invest, led by CEO Catherine Wood, announced headquarters relocation to St. Petersburg, joining other global corporations and small to medium-sized tech firms like USAA, Johnson & Johnson, Pfizer, and Amgen in opening and expanding regional offices.
·Based on these diverse growth factors, Tampa has been selected as one of CBRE's Next 10 Tech Markets.
·According to the CBRE Investor Survey targeting major U.S. investment institutions, Tampa, along with cities like Dallas, Phoenix, Denver, and Atlanta, has been identified as one of the Top 15 preferred investment destinations.
Source: CBRE/JLL Research, US Census Bureau, Moody’s Analytics, PWC, etc.
Location Analysis (Micro)
A last-mile logistics asset with excellent transportation accessibility:
·The property is connected to Interstate 275, which links to the terminal highway I-75 in Florida, as well as the cross-country US-92 and US-19, extending to the top of Pennsylvania, ensuring excellent accessibility in the southeastern United States.
·It takes approximately 11 minutes (about 13km) via I-275 to reach downtown St. Petersburg, about 25 minutes (about 25km) via US-19 to reach downtown Clearwater, and approximately 6 minutes (about 6km) to reach St. Pete Clearwater International Airport.
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.
