Securities Code 3487

Financial Results Briefing for the 16th Fiscal Period
Ended June 2024 (January 1, 2024 to June 30, 2024)
Copyright
LogiSquare
Yashio(C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

August 16, 2024
CRE REIT Advisers, Inc.

Contents
Contents

GlossaryTerm

1. Highlights

2. Financial Results and Forecasts

2

15

Definition

Unrealized gains

The appraisal value or an investigated value as of the end of the period is stated based on theCertificate of Incorporation of CRE REIT and the Regulation on Accountings of Investment
Corporations (Cabinet Office Order No.47 of 2006 including subsequent revisions)(Appraisal value) - (Book value) as of the end of the period

LTV(Outstanding balance of interest-bearing debt) / (Total Assets)

LTV based on
appraisal value(Outstanding balance of interest-bearing debt) / (Total assets + Unrealized gains)

Appraisal value

3. Market Environment

19

NAV

Net assets + Unrealized gains - Total amount of distributions

NAV per unit

(Net assets + Unrealized gains - Total amount of distributions) / Total number of investment units
outstanding

4. Characteristics of CRE Logistics REIT, Inc.

28

Acquisition price

The purchase agreement price for each of the trust beneficiary rights stated in the sales agreementand does not include national and local consumption taxes or sales commission and otherexpenses that are incurred in the acquisition

NOI yield

Ratio of actual NOI of the portfolio assets to their acquisition priceAppraisal NOI yield

Ratio of the appraisal NOI of each asset to the acquisition price of each asset (based on therelevant real estate appraisal report with valuation dated as of the end of the period)

Occupancy ratio

The ratio of the leased area to the leasable area

CRE

CRE, INC.

CRE Group

CRE, INC. and its subsidiaries and affiliates

5. Appendix

40●

This material is not a disclosure material under the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations or the
Securities Listing Regulations of the Tokyo Stock Exchange.

●

The purpose of this material is to provide information and not to offer, solicit the purchase of or sell certain products. When you make an investment, please do so
at your own discretion and risk.

●

The market price of investment securities of CRE REIT will be affected by the demand and supply of investors at an exchange and will fluctuate under the influenceof the interest rate environment, economic conditions, the real estate market conditions and other factors surrounding the market. Accordingly, the investment
securities may possibly not be sold at a higher price than the acquisition price, and investors could suffer a loss as a result.

●

The investment securities of CRE REIT need to be purchased and sold through a securities company with which you undertake business. At that time, please readthe contents of the document provided before concluding the contract (or a prospectus) carefully.

●

While this material contains forward-looking statements and results forecasts, these statements do not guarantee the future results and financial conditions of CRE
REIT.

●

Unless otherwise noted, in this material, monetary amounts and energy amounts are rounded down to the nearest indicated unit, and areas, numbers of years andratios are rounded off to the nearest indicated unit. Any average or ratio pertaining to assets is the weighted average based on the acquisition price, unlessotherwise noted.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

11. Highlights
LogiSquare Tosu
Located in Tosu-shi, the largest logistics center in Kyushu. And located within walking distance from Tosu Station on the JR Kagoshima Line and is in close vicinity (approximately 1.5 km) to Tosu
Freight
Terminal Station(JRCRE
Freight).
Copyright(C) 2024
Logistics REIT, Inc. All Rights Reserved.

2

1. Highlights

Summary

1. Sale of LogiSquare Kuki II to realize unrealized gains and secure funds
570 million yen in gains on the sale will be returned over 3 fiscal periods.
Both 1,909 million yen from the book value of sold property and cash in hand accumulated every fiscal
period will be used flexibly for unitholders returns and property acquisitions etc.

2. Clear sponsor commitment
The sponsor acquires additional investment units of CRE REIT.
In addition, the 2 pipeline properties were bridged to ensure 3 years of management period.

3. NOI growth due to recovery of occupancy rate and rent increase
Successful early leasing of LogiSquare Sayama Hidaka.
NOI is on an upward trend due to rent increase and strategic capital expenditure.

LogiSquare
Kuki II(C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.
Copyright3

1. Highlights

DPU Results for FP 2024/6

Net rental revenues-197

Decrease in generaland administrative
expenses, etc.
+30

Decrease in nonoperating expenses+2

vs. previous period

Major factors

3,626
3,820
Averageoccupancy rate
99.5%
(yen)

Assumed vacancy at re-tenanting-56

Expiration of temporary rent increase due toindividual circumstances-20

Increase in repair expenses-13

Increase in leasing costs-11

Start expensing of property taxes and city planningtaxes on 2 properties acquired in the 14FP

-91

Major factors
Decrease in asset
management fees

+33

vs. forecast

3,619
Averageoccupancy rate
99.0%

3,820
3,654
Averageoccupancy rate
99.1%

2023/12Results

2024/6
Results

Net rental revenues
+19

(yen)

Others-1

Decrease in generaland administrative
expenses, etc.
+16

Major factors

Increase in nonoperating expenses-2

Others+2

Increase in occupied area

+3

Increase in asset management fees

Increase in leasing costs-10

Non-use of reserve funds

Decrease in repair expenses+21

2024/6
Forecasts

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

3,654

Major factors-5+20

Averageoccupancy rate
99.1%

2024/6
Results4

1. Highlights

DPU Forecasts for FP 2024/12 and FP 2025/6

Increase in Increase ingeneral andnonGain on the Net rental administrative operating
OPD
property sale revenues expenses, etc. expenses
per unit
+270
+26
-53
-40
-116

Increase in nonGain on the Net rental operating
property sale revenues
expenses
Others
+72
+9
-41
+1

Major factors

3,654

Major factors

Decrease in occupied area

-13

Decrease due to sale

-43

Rent increase+8

Increase in occupied area

+41

Decrease in leasing costs+37

Rent increase+40

Increase in leasing costs-25

Decrease in repair expenses

+6

3,741

Major factors
Increase in asset management fees

-35

General meeting of unitholders-8

Major factors
Increase in loan-related
expenses and interest expenses(yen)

Averageoccupancy
rate

3,782

Major factors
Increase in loan-related
expenses and interest expenses

-44

-41

2024/6
Results

2024/12
Forecasts

2025/6
Forecasts

99.1%

98.9%

99.6%

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

51. Highlights

Realize Unrealized Gains and Secure Funds by Selling the Property
Sell in 3 periods in installments and returned the gain on sale as distributions.
Sale proceeds will be used flexibly along with cash in hand that accumulates every fiscal period.
Image of cash in hand accumulation

3,423 mn yen

Effect on DPU by using cash in hand

+0.7％(2) Acquisition of property with NOI yield of
4.4% 1,000 mn yen+1.0％(1)&(2) (total 2,000 mn yen)

+1.7％

509

2,293 mn yen

Gain on sale

570

429

575

620

429

1,909

1,002 mn yen
429

573

(mn yen)

LogiSquare Kuki II

30.0%
sale

2024/12

32.5%
sale

37.5%
sale

715

715

573

573

2025/62025/12

Sale proceedsBook value

575

Depreciation(CAPEX + surplus distribution)

Distributions tounitholders over
3 periods(1) Buyback of investment units 500 mn yen+ Repayment of borrowings 500 mn yen

1. The effect on DPU of utilizing cash in hand is the percentage increase over the average of the DPU forecasts for the FP 2024/12 and FP 2025/6.
2. The effect of the buyback of investment units is estimated using the closing price of 143,400 yen as of June 28, 2024.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

61. Highlights

Clear Sponsor Commitment
Acquisition of additional investment units by CRE

Bridge two properties to a leasing company
for more flexible acquisition timing considerations
BridgeTotal number

2,500 unit (maximum)

Total acquisition
amount

423 million yen (maximum)

Acquisition period

August 20, 2024 - September 30, 2024

Method ofacquisition

CRE will acquire the investment units of CRE REIT
through market purchases based on entrustmentof purchases to a securities company

market purchases

CapitalmarketGrant exclusive
negotiation rights

Sale

CRE

CRE

Domestic leasing company

Secured 3 years ofmanagement period

LogiSquare Ichinomiya

Reference: as of August 16, 2024
Number ofinvestment units
held by CRE (ratio)

22,550 units (3.6%)

Investment units
issued627,700 units

LogiSquare Narita

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

71. Highlights

Early Leasing and Rent Revisions
Successful early leasing of LogiSquare Sayama Hidaka.
Focus on further improving occupancy andlengthening contracts.
Occupancy rate of LogiSquare Sayama Hidaka

High rent growth except for the FP 2024/6
Lease expiration floor area

Forecast dated February 16, 2024

No change
Under negotiation

60,000Result and forecast dated August 16, 2024

100.0%

99.7%

100%

96.7%

4

90.4%

84.0%

77.9%

80%

2
1

60%
2024/04

2

3

71.7%

40,00090.4%
30,000

1

3

74.8%

70%

96.4%

96.4%
93.5%

4

Tenant moved out due to relocation of-34.4%
additional floor space
New tenant moves in with no downtime +9.2%
Existing tenant increases floor space in+9.2%
the facility in phases
New tenant moves in+9.5%

20,00010,00002024/06

2024/08

Downward revision of rent

Free rent was granted at
the time of retenanting,but contracted rent ismaintained

50,000

96.7%

93.5%
90%

Upward revision of rent
Preparing to re-contract

2024/102024/122025/022025/042025/06(㎡)

2021/6

Rent growth
rate
+5.6%

2021/12-2022/62022/122023/6+4.6% +4.9% +9.8%

1. Lease expiration floor area does not include short-term contracts.
2. The rent growth rate is the average of the growth rate of the actual rent (including common service charges) after taking into account the actual reduction of rent due to the granting free rent, etc.
Short-term contracts and those prior to the conclusion of a contract or agreement are not included.
3. One of the increases in FP 2023/6 was excluded from the calculation of the rent growth rate because the rent was higher than the market rent due to individual circumstances with the tenant.
4. One of the decrease in FP 2024/6 is shown in contrast to the contract prior to the contract in Note 3 to eliminate the effect of the contract in Note 3.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

2023/122024/62024/122025/6--2.1%+9.1% +8.7%

8

1. Highlights

Strategic Capital Expenditures Causing NOI Increase
Increase NOI by installing air conditioning, etc.
at the expense of CRE REIT
Investment amount

94 million yen

Increase in NOI

11 million yen / year

NOI yield

12.6％ (4.9％)

Use of cash in hand
• Ongoing cash surplus distribution(equivalent to 30% of depreciation)• Strategic capital expenditures causing
NOI increase• Repayment of borrowings• Buyback of investment units

Completion of
construction

August 2024

• Acquisition of properties
Breakdown of cash in hand utilization for FP 2024/12
Surplus distribution
153
CAPEX
183
Depreciation
766
Remaining amount429(mn yen)

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

91. Highlights

NOI Growth due to Recovery of Occupancy Rate and Rent Increase
Trend in NOI
3,800

If not sold

3,654

Sold

3,590

3,600

If not sold3,619 3,620

Sold

3,619

3,656

2025/12Full-period
contribution ofrent increase+10 mn yen
NOI stripped by property sales

3,400

3,200

3,000
(mn yen)Averageoccupancy
rate

2023/122023/122024/62024/6

99.5%

99.1%

2024/12
Forecasts

2025/6
Forecasts

98.9%

99.6%

1. As the period ended 2023/12 was before the expensing of property taxes and city planning taxes on 2 properties acquired in the 14FP, the amount of actual NOI minus the amount of property taxes and city planning taxes on 2 properties acquired in
the 14FP is shown.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

101. Highlights

ALM Control Under Inflation
Flexible operations including
introduction of CPI-linked clauses

Diversification of lease expirations (based on leased area, as of July 1, 2024)
Pursue internal growth

16%

15.5%

Average lease
contract term

Average remaining
lease term

7.4 years

3.4 years

Reasons

12.7%
12%

11.1%

10.3%

8.8%
6.9%

8%

4%

6.2%
4.7%

3.7%

• Increase adherence by making the contract
tenant-friendly.

4.1%
1.9% 2.3%

2.9%
0.7%

1.9%

2.8%

1.6%

Distribution of lease start date and lease term
2036/62035/122035/62034/122034/62033/122033/62032/122032/62031/122031/62030/122030/62029/122029/62028/122028/62027/122027/62026/122026/62025/122025/62024/12• Currently, the standard lease contract term is five years, and is expected to gradually
become shorter. CRE REIT aims to lengthen the debt financing term, while controlling theincrease in debt costs.
• The policy is to avoid the risk of rising interest rates while absorbing increased debt costsby rent increase.

Diversification of interest-bearing debt maturities (as of July 31, 2024)
14.3%
10,1309,000

9.2%
7.9% 6,500
5,600

6,000

11.2%
10.9% 10.7%
7,950 10.0%
7,700 7,604
7,100 9.2%
6,550

Average debt
financing term

Average remaining
debt term

5.6 years

2.9 years

8.8%
6,230

3,000

10.0
5.0
0.0
2010

2012

2014

Ended contracts

2016

2018

2020 2022 2024
Lease start date (year)

Within the contract term or before the start

Approach to interest-bearing debt

2036/62035/122035/62034/122034/62033/12• Continue policy of operating LTV at 43-45%.

2033/6• Promote stable funding through mediumterm and long-term borrowing at a fixedinterest rate.
2032/12

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

15.0

2.8%
2,000

2032/62031/62030/122030/62029/122029/62028/122028/62027/122027/62026/122026/62025/122025/62024/120(mn yen)20.0

2031/12

4.9%
3,455

lease term (years)

0%

12,000• Since the contract term has become shorter,
currently, 5 years is the standard.
Opportunities for rent increases are increasing.

11

1. Highlights

Control Debt Costs and Ensure Financial Stability
Promote debt cost control and financial stability
Ratio of long-term
debt

Ratio of fixedinterest debt

Average borrowinginterest rate

100.0%

82.0%

0.711%

Diversify interest-bearing debt sources
Breakdown of interest-bearing debt sources (as of July 31, 2024)

R

LTV based on
appraisal value

Credit ratings (R&I)

Credit ratings (JCR)

K

O
N
M
L

PQ

A

J

37.3%

A (Stable)

A+ (Stable)

Total

I

70,819 mn yen
17 lenders

HG

1. LTV based on appraisal value is as of June 30, 2024, others are as of July 31, 2024.

B

F

Operate LTV at 43-45%

E
47%

45%

44.8%

44.7%
44.0%

44.1%

43.9%

44.2%

44.4%

44.3%

43.0%
43%

Result41%

C

D

2021/62021/12

Dated August 16, 2024
2022/62022/122023/62023/122024/6

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

2024/12
Forecast

2025/6
Forecast

A Sumitomo Mitsui Banking Corporation

20.3%

J The Bank of Fukuoka, Ltd.

2.8%

B Mizuho Bank, Ltd.

17.3%

K The Hyakujushi Bank, Ltd.

1.3%

C Development Bank of Japan Inc.

12.5%

L The Yamaguchi Bank, Ltd.

1.2%

D Resona Bank, Limited

7.6%

M The Shizuoka Bank, Ltd.

1.1%

E MUFG Bank, Ltd.

6.9%

N The Yamanashi Chuo Bank, Ltd.

1.1%

F Sumitomo Mitsui Trust Bank, Limited

6.0%

O JAPAN POST BANK Co., Ltd.

1.0%

G The Nishi-Nippon City Bank, Ltd.

4.4%

P The Chiba Bank, Ltd.

1.0%

H SBI Shinsei Bank, Limited

3.4%

Q The Bank of Toyama, Ltd.

0.7%

I Aozora Bank, Ltd.

3.0%

R Green bond

8.5%

12

1. Highlights

Promoting ESG Efforts – Environment (1)100.0% of portfolio are composed ofGreen Buildings
First in J-REIT

Over 80% of portfolio have installed solar power
None
16.4%

100.0%

Solar Power (In-house
consumption)
46.3%

83.6%

Regarding “In-house consumption”, theproduced electricity can be used withouttransmission loss, and provided directly
to tenants, therefore, CRE REIT will
actively introduce “In-house
consumption” for the properties to beacquired in the future.

Solar Power(Electricity
sales by FIT)
37.3%

Percentage of environmental certifications andinstallation of equipment
100%

12.4%

3.5%

4.8%

7.8%

96.5%

95.2%

92.2%

Generate 70% of thetotal consumption by
renewable energy

Electricity consumption and energy production of held assets

80%

60%

40%

87.6%

None
Equipped

12,710

20%

0%

BELS

CASBEE

Sandwich
Panels

LED lighting

20,985

17,925(thousand kWh)

EnergyConsumption

9,015
252
Renewable

9,852

21,685

11,421

12,024
Electricity sales

1,864

2,908

3,155

EnergyRenewable
EnergyRenewable
EnergyRenewable
EnergyConsumption
EnergyConsumption
EnergyConsumption
EnergyProduction
Production
Production
Production

2020.4-2021.3

2021.4-2022.3

2022.4-2023.3

In-house
consumption

2023.4-2024.3

1. Based on total floor area.
2. CRE REIT leases roof top space and the lessees produce renewable energy by installing solar panels.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

13

1. Highlights

Promoting ESG Efforts – Environment (2)Promote green finance

Disclosed in line with TCFD recommendations
and announced targets and results
Newly disclosed qualitative scenario analysis,
goals, etc. (announced on Aug. 15, 2022)

Percentage of green loans and green bonds
75%

47.6%

50%

25.5%

31.4%

52.6%

Greenhouse gas emissions (intensity)

57.5%
0.01600.012434.0%

0.01120.012025%

0.01290.01270.0105-46% target(Compared with FY2019 level)0.00670.00804.6%

3.8%

2020/122021/60.00400%2021/122022/62022/122023/62023/122024/6

FY2030 (Target)

FY2029FY2028FY2027

FY2026FY2025

FY2024FY2023

FY2022

FY2021

FY2020FY2019Certification and Registration for Eco Action 21

0.0000(t-CO2e/㎡)

Coverage rate for environment-related data

Certified and registered for the “Eco Action 21”
in March 2024.
Target

Maintain 100%
until the FY 2027

FY 2023
Result98%

Awarded 4 Stars at GRESB 2023
Real Estate Assessment

4 Stars

Public Disclosure

A

Percentage of green building certifications acquired (based on total floor area)
TargetAt least 95%
by the FY 2027

FY 2023
Result100%

1.“FY” is the 12 months that begins on April 1 of that year.
2. The eligibility criteria for green buildings in CRE REIT are DBJ Green Building Certification (5 Stars or 4 Stars), CASBEE Certification (S Rank or A Rank), or BELS evaluation (5 Stars or 4 Stars), and properties that have acquired or renewed, or will acquireor renew any of the relevant certifications will fall under the green buildings.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

14

2. Financial Results and Forecasts

LogiSquare Ageo
This property
faces
17 andREIT,
is expected
the convenience
Copyright(C)convenient
2024 CRERouteLogistics
Inc. Allthat
RightsReserved. will be further improved by the plan to extend the metropolitan expressway from Yono IC to close to this LogiSquare Ageo.

15

2. Financial Results and Forecasts

Highlights on the 16th FP
DPU

NAV per unit

Portfolio

16th FP Results

3,654 yen(vs forecast: +35 yen, +1.0%)

17th FP Forecasts

3,741 yenOccupancy rate

18th FP Forecasts

3,782 yen

Average remaining
lease term

3.4 years

Average property age

5.9 years(2024/6)(2024/12)(2025/6)

Asset

16th FP Results(2024/6)

179,045 yen(vs previous FP: +1,173 yen, +0.7%)

Debt
16th FP

Compared to15th FPAppraisal value

184,290 mn yen+230 mn yen

Interest-bearing
debt

Unrealized gains

29,937 mn yen+962 mn yen

19.4%

+0.7%

Repair expense

31 mn yen

Capital expenditure

21 mn yen(2024/6)

Unrealized gains ratio

Portfolio size

21 properties 159 billion yen
End of the Period

Average

97.4%

99.1%

Equity16th FP(2024/6)

Compared to15th FP

16th FP(2024/6)

70,819 mn yen-210 mn yen

LTV

44.2%

+0.1%

NAV

LTV based on
appraisal value

37.3%

-0.1%

+8 mn yen

Ratio of fixedinterest debt

81.5%

-0.3%

-16 mn yen

Ratio of long-term
debt

99.5%

-0.2%

Average borrowinginterest rate

0.660%+0.051%Compared to15th FP

135,004 yen-525 yen

112,386 mn yen+736 mn yen

NAV per unit

179,045 yen+1,173 yen

Total number ofinvestment units
outstanding

627,700 units- units

Net assets per unit

1. As of June 30, 2024

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16

2. Financial Results and Forecasts

Results for the 16th Fiscal Period
Unit: million yen

15th FP(2023/12)
Results (A)16th FP(2024/6)
Forecasts (B)16th FP(2024/6)
Results (C)vs. 15th FP

vs. Forecast(C) - (A)(C) - (B)

4,525

4,478

4,466

-58

-12

813

901

876

+63

-24

3,711

3,577

3,590

-121

+12

Depreciation

751

753

753

+2

+0

Net rental revenues

2,960

2,823

2,836

1

-123

3

+12

471

462

452

2

-19

4

-10

2,488

2,360

2,383

-104

+22

Non-operating income

1

―

0

-1

+0

• Decrease in asset management fees -21

Non-operating expenses

316

313

315

-1

+1

vs. Forecast

Ordinary income

2,173

2,047

2,068

-104

+21

Net income

2,172

2,046

2,067

-104

+21

Distributions per unit (yen)

3,820

3,619

3,654

-166

+35

Earnings per unit (yen)

3,461

3,259

3,294

-167

+35

359

360

360

+1

―

Rental revenues
Rental expenses(excluding depreciation)

NOI(NOI - Dep.)

General and administrative
expenses, etc.

Operating income

OPD per unit (yen)vs. 15th FP
1

Net rental revenues -123
• Assumed vacancy at re-tenanting -35• Expiration of temporary rent increase due
to individual circumstances -12• Increase in repair expenses -8• Increase in leasing costs -7• Start expensing of property taxes and city
planning taxes on 2 properties acquired in
the 14FP -57

2

3

General and administrative expenses,
etc. -19

Net rental revenues +12• Increase in occupied area +2• Increase in leasing costs -6• Decrease in repair expenses +13

4

General and administrative expenses,
etc. -10• Increase in asset management fees +3• Non-use of reserve funds -13

Average occupancy rate

99.5%

99.0%

99.1%

-0.5%

+0.1%

1. "Expiration of temporary rent increase due to individual circumstances" is due to individual circumstances with the current tenant, who is scheduled to move out after the expiration of the contract with a higher-than-market rent, and as a result of concluding a contract with thesuccessor tenant at the same rent level as the market rent.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

17

2. Financial Results and Forecasts

Forecasts for the 17th and 18th Fiscal Periods

Rental revenues
Gain on the property sale
Rental expenses

16th FP(2024/6)
Results (A)17th FP(2024/12)
Forecasts (B)Difference

18th FP(2025/6)
Forecasts (C)Difference

4,466

4,485

+18

4,482

-2

―

169

+169

215

(B) - (A)1

Unit: million yen(C) - (B)6+45

17th FP
1
2

876

866

-10

863

-2

3,590

3,619

+29

3,619

-0

Depreciation

753

766

+12

760

-6

Net rental revenues

2,836

2,853

2

+16

2,858

452

486

3

+33

484

-2

2,383

2,536

+153

2,589

+53

Non-operating income

0

0

-0

―

-0

Non-operating expenses

315

340

+25

366

Ordinary income

2,068

2,196

+127

2,223

+27

Net income

2,067

2,195

+127

2,222

+27

6

Distributions per unit (yen)

3,654

3,741

+87

3,782

+41

7

(excluding depreciation)

NOI(NOI - Dep.)

General and administrative
expenses, etc.

Operating income

Earnings per unit (yen)

3,294

3,497

OPD per unit (yen)

360

244

Average occupancy rate

99.1%

98.9%

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

4

5

7

8

3

4

5

+43

-116

242

-2

-0.2%

99.6%

+0.7%

General and administrative expenses,
etc. +33

Non-operating expenses +25• Increase in loan-related expenses andinterest expenses +28

OPD per unit -116

Change from 30% to 20% of depreciation,
considering the levels of net income fromgain on sale.

+26

3,540

Net rental revenues +16• Decrease in occupied area -8• Rent increase +5• Decrease in leasing costs +23• Increase in asset management fees +22• General meeting of unitholders +5

+5

+203

Gain on the property sale +169

• Sale of LogiSquare Kuki II 30.0% +169

18th FP
Gain on the property sale +45• Increase in percentage of sales (from 30.0%
to 37.5%) +45

Net rental revenues +5• Decrease due to sale -27• Increase in occupied area +26• Rent increase +25• Increase in leasing costs -15• Decrease in repair expenses +48Non-operating expenses +26• Increase in loan-related expenses andinterest expenses +26

18

3. Market Environment
LogiSquare Kobe Nishi
The property is located in Kobe Compound Industrial Park (Kobe Techno Logistic Park). It is located approximately 1.6 km from the Kobe Nishi Interchange on the KobeAwaji-Naruto
Expressway/Sanyo
Expressway.
property
is locatedan industrial
park and is, therefore, surrounded by numerous warehouses and factories and can be operated 24 hours a day.
Copyright (C)2024 CREThe
Logistics
REIT,
Inc. AllonRights
Reserved.

19

3. Market Environment

The Background of Solid Demand for Rental Logistics Facilities (1)1. Market size expansion of convenience storesand drugstores

2. Internet shopping flourishes• Convenience stores and drugstores are open for long hours and• The number of deliveries to individual customers has increased due to thehave small storage capabilities, requiring multiple small-lot
shipments per day.
• The increase in the number of smaller stores and shorter delivery
times led to optimization of distribution channels andstreamlining and efficiency of logistics.

growing popularity of Internet shopping.

• In addition to the traditional storage function, logistics facilities are now
also required to be able to collect and deliver goods for frequent
shipment and distribution processing, such as packaging and wrapping.

Market size of the retail industry

Number of deliveries

20

6,000

15

Supermarket

Department store

Convenience store

10
5

3,000

Drugstore0(tn yen)

0
1980

1985

1990

1995

2000

2005

2010

2015

2020

(Year)(mn)

Source: Prepared by the Asset Manager based on Dynamic Statistics of Commerce by the Ministry of Economy, Tradeand Industry

1985

1990

1995

2000

2005

2010

2015

2020

(FY)

Source: Prepared by the Asset Manager based on Delivery Service Record by the Ministry of Land, Infrastructure,
Transport and Tourism

3. Aging logistics facilities• Construction of new warehouses peaked during the period of high economic growth and the economic bubble, and the facilities built in those periods, which
are now 40-50 years old are considered to have reached the end of their service lives.

• Assuming that the floor area of properties over 50 years old, which is considered the life span of a logistics facility, has been lost, the net floor area of logistics
facilities has turned negative since 2017.

Trends in floor space of properties where construction commenced
20

A: Floor area of newly constructed properties
B: Area assumed to be lost after 50 years of the construction

10

A-B

0
(mn ㎡)

1958

1963

1968

1973

1978

1983

1988

1993

1998

2003

2008

2013

2018

2023

2028

2033

2038

2043

2048

2053

2058

2063

2068

(Year)-10-20

Assuming that the floor area is lost after 50 years of the construction,
the net floor area of logistics facilities is negative.

Source: Prepared by the Asset Manager based on the Japan Construction Starts Report by the Ministry of Land, Infrastructure, Transport and Tourism and the Statistical Yearbook of Construction by the Ministry of Construction

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

20

3. Market Environment

The Background of Solid Demand for Rental Logistics Facilities (2)4. Market size expansion of third-party logistics (3PL)

5. Room for expansion of e-commerce (EC) market size

• The market for 3PL is growing as companies are increasingly• While the EC market is expanding year by year, the EC rate in Japanoutsourcing their logistic operation comprehensively.

is low compared with the U.S. and U.K. and there is still much roomfor expansion.

3PL market size

BtoC EC market size in Japan

5.0

22.7

25.0

4.1

4.0

20.0

3.0

15.0

EC market size in JapanEC rate in Japan (right axis)
EC rate in the U.S. (right axis)
EC rate in the U.K. (right axis)

40%

U.K.

26.6%

2.0
2.0

10.0

1.0

5.0

0.0
(trillion yen)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(FY)

Source: Prepared by the Asset Manager based on “The monthly Logistics Business September 2023” issued by Rhinos
Publications, Inc.

30%

U.S.

20%

14.7%

10%

Japan

9.1%

0.0
(trillion yen)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

0%
(Year)

Source: Prepared by the Asset Manager based on Market Research on E-commerce by the Ministry of Economy, Tradeand Industry, and data of the United States Census Bureau (U.S.) and Office for National Statistics (U.K.).
Note: The ratio of the EC market size to the amount of all commercial transactions (the commercial transaction marketsize). The EC rate in Japan refers to the value in the field of product sales.

6. Increase in business inventories•

50%

Reference: Vacancy rates of listed logistics REITs

Business inventories have increased after the 2011 Great East Japan
Earthquake and the coronavirus pandemic.

•

Vacancy rates of listed logistics REITs have remained stable and low
compared to the overall market.

Business Inventory Trends

Vacancy rate of listed logistics REITs vs. Market vacancy rate
15%

50%

Vacancy rates of listed logistics REITs
40%

Vacancy rate in Tokyo area
10%

30%
20%

Vacancy rate in Kansai area

5%

10%
0%

0%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(FY)

Source: Prepared by the Asset Manager based on “Financial Statements Statistics of Corporations by Industry” issued by
Ministry of Finance, indexed based on FY 2010.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024 (Year)

Source: Prepared by the Asset Manager based on websites of listed logistics REITs and “Industrial Market Research April2024” of K.K. Ichigo Real Estate Service.

21

3. Market Environment

Market Trends (1) Tokyo Metropolitan Area and Kansai Area
Tokyo Metropolitan Area

Vacancy rate: Less than 5%
Vacancy rate: 5% or more and less than 10%
Vacancy rate: 10% or more

Vacancy rate: 8.26% QoQ: Slightly Improved

Demand has increased for two consecutive quarters. Strong demandhas exceeded supply, causing vacancy rates to decrease.
40

20

30

15

20

10

10

5

0

0

202406202403202312202309202306202303202212202209202206202203202112202109202106202103

Vacant area

202012202009202006202003

201912Rented area

201909201906201903201812

201809201806201803201712

201709201706201703

201612

201609201606(mn ㎡)(%)

Vacancy rate (right axis)

Kansai Area

Vacancy rate: 2.59% QoQ: Slightly Improved

Demand has fallen sharply, but supply has also decreased,
resulting in a decline in vacancy rates.
10

20

15

5

10

5

0

(%)

Vacancy rate (right axis)

Source: Prepared by the Asset Manager based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2024” of CRE, Inc.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

202406202403202312202309202306202303202212202209202206202203202112202109202106202103

Vacant area

202012202009202006202003

201912

201909201906201903Rented area

201812

201809201806201803201712

201709201706201703

201612

201609201606(mn ㎡)

022

3. Market Environment

Market Trends (2) Tokyo Metropolitan Area and Kansai Area
Tokyo Metropolitan Area

Kansai Area•

Supply is expected to peak in 2022 and 2023 and decline from
2024.

•

Supply has been suppressed since 2018, but is expected toincrease through 2025.

•

Vacancy rates bottomed out in 2020, but demand increased as
supply grew.

•

Although the market was smaller than in the Tokyo metropolitanarea, the increase in supply in recent years has expanded themarket, and the impact on the stock in 2025 will be smaller thanthe peak in 2017.

5,000

25%

1,500

25%

4,000

20%

1,200

20%

3,000

15%

900

15%

2,000

10%

600

10%

1,000

5%

300

5%

0
(Thousand m2) 2017

2018

2019

2020

2021

2022

2023

2024
Forecast

0%2025 (Year)
Forecast

0(Thousand m2)

2017

2018

2019

2020

2021

2022

2023

2024
Forecast

0%2025 (Year)
Forecast

Total supply (1)Total demand

Total supply (1)Total demand

Vacancy rate (right axis)

Ratio of total supply to stock (right axis)

Vacancy rate (right axis)

Ratio of total supply to stock (right axis)

1. For 2024-2025, the forecast is new supply only, not including supply from existing properties.
2. Prepared by the Asset Manager based on data from CRE, Inc.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

23

3. Market Environment

Market Trends (3) Each Area of Tokyo Metropolitan Area
Saitama Kan-Etsu Expwy Area

Kawagoe

Kawagoe II

Vacancy rate: 9.42% QoQ: Slightly Improved

Saitama Tohoku Expwy Area

Kuki II

Kuki

Hanyu

Ageo

Kasukabe

Vacancy rate: 10.25% QoQ: Slightly Deteriorated

3,000

20

4,000

20

10

2,000

10

2,000

1,000

0

0

Rented area

Vacant area

Tokyo Saitama Ken-O Expwy Area(%)

0
(Thousand m2)

0202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606(Thousand m2)

Vacancy rate (right axis)

SayamaHidakaMizuho A

Rented area

Mizuho B

Vacancy rate: 13.48% QoQ: Deteriorated
2,000Southern Saitama Area

Vacant area

Urawa
MisonoNiiza(%)

Vacancy rate (right axis)

Soka

YashioMiyoshi

Vacancy rate: 6.67% QoQ: Slightly Improved
30

4,000

20

2,000

10

20
1,000
10

0

0

Rented area

Vacant area(%)

0
(Thousand m2)

0202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606(Thousand m2)

Vacancy rate (right axis)

Rented area

Vacant area(%)

Vacancy rate (right axis)

Source: Prepared by the Asset Manager based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2024” of CRE, Inc.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

24

3. Market Environment

Market Trends (4) Each Area of Tokyo Metropolitan Area
Southwestern Ibaraki Area

MoriyaVacancy rate: 17.92% QoQ: Improved

Narita Area
Vacancy rate: 2.51% QoQ: Improved

4,000

40

1,000

30

30

20
2,000

20
10

10
0

0

Rented area

Vacant area(%)

Rented area

Vacancy rate (right axis)

Vacancy rate: 12.74% QoQ: Slightly Improved

6,000

30

4,000

20

2,000

10

0

0
(%)

4,000

20

2,000

10

0
(Thousand m2)

0202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606
Vacant area

Vacant area(%)

Kanagawa Ken-O Expwy Area

Shiroi

Vacancy rate: 3.96% QoQ: Improved

Rented area0

Vacancy rate (right axis)

Chiba Tokatsu Area

(Thousand m2)

0(Thousand m2)

202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606(Thousand m2)

Vacancy rate (right axis)

Rented area

Vacant area(%)

Vacancy rate (right axis)

Source: Prepared by the Asset Manager based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2024” of CRE, Inc.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

25

3. Market Environment

Market Trends (5) Other Each Area
Osaka
KatanoHokusetsu Higashi-Osaka Area

Hirakata

Vacancy rate: 3.30% QoQ: Improved

Tosu Area

Tosu

Vacancy rate: 9.69% QoQ: Improved
1,000

30

6,000

30

4,000

20

20

2,000

10

10

0

0

Rented area

Vacant area(%)

(Thousand m2)

0202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606(Thousand m2)

0

Vacancy rate (right axis)

Rented area

Kobe
Nishi

Inland Kobe Area

Vacancy rate (right axis)

Northern Nagoya Area

Vacancy rate: 7.08% QoQ: Slightly Improved
2,000

Vacant area

Vacancy rate: 8.14% QoQ: Deteriorated
30

2,000

30

20

20
1,000

1,000

10

10

0

0

0

Rented area

Vacant area(%)

(Thousand m2)

0202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606202406202403202312202309202306202303202212202209202206202203202112202109202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606(Thousand m2)(%)

Vacancy rate (right axis)

Rented area

Vacant area(%)

Vacancy rate (right axis)

Source: Prepared by the Asset Manager based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2024” of CRE, Inc.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

26

3. Market Environment

Rising Demand for Rental Logistics Facilities- Rising Importance of Logistics Network Strategy
Priority initiatives of logistics operators and consignor firms for the next three years
Establishing new logistics centres/ expanding locations and floor area
Logistics operators (n=128)

Improving working environment and safety of employees
Improving efficiency of logistics network through consolidation/ relocation of facilities
Strengthen transportation/ distribution network
Improving efficiency of facilities through automation/ digital transformation
Upgrading existing facilities and equipment
Adapting to changes in type/ volume of goods
Handling manufacturing-related goods due to increases in factories/ inventory
Omnichannel/ e-commerce initiatives
ESG initiatives
Other
Establishing new logistics centres/ expanding locations and floor area

Consignor firms (n=68)

Improving working environment and safety of employees
Improving efficiency of logistics network through consolidation/ relocation of facilities
Strengthen transportation/ distribution network
Improving efficiency of facilities through automation/ digital transformation
Upgrading existing facilities and equipment

Adapting to changes in type/ volume of goods
Handling manufacturing-related goods due to increases in factories/ inventory
Omnichannel/ e-commerce initiatives
ESG initiatives
Other
0%

First priority

20%

Second priority

40%

60%

Third priority

Survey period: February 27, 2024 to March 12, 2024
Survey targets: Corporations using logistics facilities in Japan, whether owned or leased
Source:Prepared by the Asset Manager based JAPAN 2024 Logistics Occupier Survey from CBRE, INC.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

27

4. Characteristics of CRE Logistics REIT, Inc.
LogiSquare Niiza

Copyright(C)property
2024 CRE
Logistics
All toRightsReserved.
The area
where thisis locatedhasREIT,
greatInc.
accessthe heartof the city, is in demand as a logistics center location, and is one of the well-known prime areas for logistics services in Saitama.

28

4. Characteristics of CRE Logistics REIT, Inc.

Characteristics/Advantages of CRE REIT
Character-istics

1. Portfolio focused on LogiSquare

2. Long-term, stable asset management

3. Clear external growth strategy

High-quality portfolio
Occupancy rate

Ratio of fixed-term leases

Ratio of fixed rent

Average lease contract term

Average remaining lease term

Ratio of single-tenantfacilities(1) Stable cash flow
(2) Long-term contracts withdiverse tenants(3) Good location

97.4%

7.4 years

99.6%

3.4 years

Ratio of Tokyo Metropolitan andKansai area

Average mileage
to interchange

98.2%

3.1 km100.0%

59.8%

Ratio of properties within 10 mins’ walkof public transportation

87.6%

Our sponsor is real estate company specializing in logistics properties
Advantages(1) Leasing capability(2) Property management (PM)capability(3) Development capability

Companies that have concluded
lease contracts with CRE directly

Master lease occupancy rate oflogistics real estateManaged floor area

PM entrusted by other companies

1,019 companies

1,595 properties 6.1 million ㎡

96.8%
64%

Holding of private viewings, including
for other listed REITs
Ranking for PM company focusing on
logistics facilities

3rd place• Requests obtained from tenants through day-to-day management and leasing activities are fully reflected in facility
development.
• Has been developing suitable properties for REIT since 2006 when real estate securitization first appeared in Japan.

Capable of flexibly acquiring properties, taking into consideration investment unit price• Can leverage the bridge function. Acquired three properties at the time of the IPO and one property following the first follow-on offering by leveraging
the bridge function.
• In position to acquire the properties on the scale of hundreds of millions to billions of yen and quasi-co-ownership interests using cash in hand.
• Rich pipeline of 19 properties with total floor area of 972 thousand ㎡.
1: Data of CRE are as of the end of July 2023. Produced by the Asset Manager based on data provided by CRE. Figures include data relating to property management of other real estate besides logistics facilities and master leases.
2: “PM entrusted by other companies” is area managed by CRE less area relating to PM contracts with CRE REIT and area relating to properties in which CRE is involved as master lessee (area managed under PM contracts with other listed logistics REITs
and private funds, etc.) as a ratio of the total area managed by CRE.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

29

4. Characteristics of CRE Logistics REIT, Inc.

High-Quality Portfolio (1) Stable Cash Flow
Form of contract that enables stable operation

Inclusion of newly built properties• In many cases, tenants who cancel early before the end of the contract term are required to pay
the equivalent of rent for the whole remaining lease term as a penalty for breach of contract.
• Intention for renewal or termination is ascertained a year before the expiry of a contract.

Ratio of fixed-term lease contracts

Ratio of fixed-rate rents

Property age
10 years or more
12.3%

Temporary use lease
contracts
0.4%

Ratio of fixed-termlease contracts

Ratio of fixed-rate
rents

99.6%

Average100.0%

Fixed-term lease
contracts
99.6%

Less than 3 years
14.1%

5.9 years

5 years or more but lessthan 10 years
39.0%

3 years or more but
less than 5 years
34.6%

1. Only "Ratio of fixed-term lease contracts" is based on leased area.

Capital expenditure remains low• As the portfolio is mainly composed of newly built properties, capital expenditure is relatively low.
800

Depreciation
Capital expenditure

600

Ratio of capital expenditures to depreciation (right axis)

400

287

251

363

316

287

15.0%

8.5%

6.0%
3.4%

2018/60.2%

02018/12--2019/6

2019/12

0.1%

38

18

2020/62020/122021/60

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

20.0%

459

200

0
(mn yen)

615

562

753

751

703

657

642

0.9%

1.8%

3.1%

10.0%

5.1%
2.8%

5

11

20

41

2021/122022/62022/122023/638

212023/122024/6

5.0%

0.0%

30

4. Characteristics of CRE Logistics REIT, Inc.

High-Quality Portfolio (2) Long Term Lease Contracts

Contribution to the stability of portfolio based on long-term contracts that take into consideration tenantbusiness plans.
Lease contract term

10 years or more
31.0%

Less than 5 years
30.9%

Remaining lease term

5 years or more andless than 10 years
17.4%

Average

7.4 years
5 years or more and lessthan 10 years
38.0%

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

Tenant composition

Single-tenant
59.8%

Less than 5 years
82.6%

Average

Single-tenant

3.4 years

59.8%

Multi-tenant
40.2%

31

4. Characteristics of CRE Logistics REIT, Inc.

High-Quality Portfolio (3) Good Location
Properties are mostly located in a place suited for logistics where strong demand is expected, meeting
tenants' needs to secure labour.
Ratio in Tokyo Metropolitan and Kansai area
Others 1.8%

Distance to an interchange
5 km or more
11.7%

Tokyo
Metropolitan
Area 72.6%

Kansai Area
25.7%

98.2%

Walking distance from public transportation facilities

3 km or more andless than 5 km
20.3%

Walk more than
10 mins
12.4%

Average

3.1km

Less than
1 km
40.6%

Walk within
10 mins

87.6%

Walk within
10 mins
87.6%

1 km or more andless than 3 km
27.4%

Example: LogiSquare Urawa Misono
The property is located approximately 700 m from Urawa IC (Tohoku Expressway) and approximately 450 m and a 6 minutes walk from Urawa Misono Station on the Saitama
Rapid Railway Line. A large-scale community development project is underway in the surrounding area, which will become a potential advantage in securing employees
because of the convenience in their commutes.

Urawa IC

approx. 700 m

approx. 450 m

Urawa Misono Station

6 mins walk

LogiSquare Urawa Misono
Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

32

4. Characteristics of CRE Logistics REIT, Inc.

Financing Considering Cost of Capital
CRE REIT’s Approach to Public Offerings and Property Acquisitions

1. CRE REIT will acquire properties without dilution of NAV per unit and DPU for the improvement of unitholder value.
NAV per unit and DPU increased in each of the 1st through the 6th public offerings. CRE REIT plans to maintain this approach moving forward.

2. Achieve flexible external growth, with consideration for investment unit price, including utilizing the bridge function andshortening the preparation time for public offerings.
CRE REIT acquired three properties from leasing company at IPO and one property from leasing company at 1st public offering. The timing ofproperty sales by the sponsor and acquisitions by CRE REIT can be adjusted.

3. Acquisition of medium-sized properties and acquisition of quasi-co-ownership interests using cash in hand is also possible.
Availability to invest in properties with a total floor area of 5,000㎡ or larger allows the acquisition of properties that cost several billion yen using
retained cash in hand from accumulated depreciation.

Acquisition of property
without dilution of DPU and NAV per unit

Timely external growthutilizing the bridge function

Acquisition of property
using only cash in hand

Stabilized DPU growth rate at PO

Leasing company

Cash in hand 3,877 mn yen

Average

3.7%

3.0%

4.3%

3.1% 3.6%

5.1%

3.0%

3rd PO

4th PO

5th PO

6th PONAV per unit growth rate at PO
5.7%
Average

1st PO

2nd PO

LogiSquare Urawa Misono

5.1%
3.0%

1.2%

IPO

3rd PO

2.0%
4th PO

LogiSquare Niiza

0.4%
5th PO

6th PO

1st
PO
LogiSquare Kasukabe

CRE REIT

2nd POCRE

1st PO

2.9%

Acquisition of LogiSquare
Sayama Hidaka (20%)

LogiSquare Kuki II

Acquisition price 3,612 mn yen

Sale of LogiSquare Chitose

LogiSquare Sayama Hidaka (20%)

LogiSquare ChitoseBook value 1,290 mn yen

Repayment of borrowings 1,200 mn yen

1. “NAV per unit growth rate at PO” is the ratio of NAV per unit after each PO to NAV per unit as of the end of the most recent fiscal period of each PO.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

33

4. Characteristics of CRE Logistics REIT, Inc.

Features of LogiSquare
LogiSquare is the brand name of high-quality logistics facilities developed by CRE to meet tenant needs.
Semi-flexible pavement is used toinhibit rutting.

Sandwich panels are used on exterior walls to reduceheating and cooling loads and to
give the exterior an attractive appearance.

Facility has roof spraying system that uses well
water to reduce the internal temperature.
The facility has a total of 44 truck berths on
the first and third floors to allow the docking
of up to 44 large trucks simultaneously.

Berth depth 13.5 m

Truck berths are large enough to fit awhole 40ft container truck.

The facility has truck berths on the first and third floors.
To prevent congestion and accidents, the facility is designed to separate traffic flows and equipped withdedicated gates for the first/second floor tenants and the third/fourth floor tenants, respectively.
1. The logistics facility shown above is an example of the features of LogiSquare. Not all facilities held by CRE REIT have the features shown above.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

Wooden deck

Bicycle parking

0

LogiSquare Urawa Misono

Rest area with wooden deck34

4. Characteristics of CRE Logistics REIT, Inc.

Features of LogiSquare
LogiSquare not only improves the efficiency of warehouse operations, creates a pleasant working environment for
tenants but helps minimize costs in the future for CRE REIT.
Fireproof partition walls are
made of fire-resistant heatinsulating panels that haveexcellent insulation
properties, seismic resistanceand an aesthetically pleasing
appearance.

LED lighting throughout helps
save energy.

Openings in fire partitions are
as wide as possible.
6.0 m

Pillar span 10.3 m × 10.35 m

10.3 m10.35 mFloor loading 1.5 t/m2
LogiSquare Urawa Misono

The facility has an effective
ceiling height of 6.0 m, or
5.5 m even if cooling panels
are installed.

Internal signage is designed
to visually communicate
warehouse functions.

Windows

Interior walls between offices and the warehouse
space have windows in them to facilitatecommunication.

The women’s restroom has lockers anddesigned to make female employees feel comfortable.

1. The logistics facility shown above is an example of the features of LogiSquare. Not all facilities held by CRE REIT have the features shown above.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

To help minimize costs in the future, the facility already has windows
and ventilation built in to ensure compliance with laws and regulations
in case it is necessary to expand office areas in the future.

35

4. Characteristics of CRE Logistics REIT, Inc.

Our Sponsor is Real Estate Company Specializing in Logistics Properties
The sponsor has a track record of more than 50 years in the field of logistics real estate in Japan.
Launch of asset management business/Listing of CRE REIT in February 2018
Participation in development business / Management of large-sized facilities
Proposals for small- and medium-sized warehouse asset utilization / Building of relationships with tenants

1964

1980

2005

2014

Established in 2009

Established in 1980
Established in 1964

Commercial RE Co., Ltd.

Tenko Souken Co., Ltd.,2010:
Businesstransfer
2011:
Absorptiontype merger

Established in 20062014:
Acquisition

2020:
Absorption-type merger

Involvement of all employees in logistics properties

Proven track record in providing services to other companies

Number of employees on a consolidated basis (as of July 31, 2023)

CRE REIT can draw on the sponsor's knowhow gained through the management of 6.1
million ㎡ floor area
CRE REIT
10%

Property management

224

16
29
63

Area managed

Logistics investment
Asset management
Administration

Master lease26%

1,595 properties
6.1 million ㎡
Other listed REITs andPrivate fund, etc.
64%

Total 332
Source: Prepared by the Asset Manager based on Annual Report for Fiscal Year ended July, 2023 of CRE, Inc.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

1. As of July 31, 2023. Prepared by the Asset Manager based on information provided by CRE. Includes results under
the property managements and master lease agreements for the properties other than logistics facilities.

36

4. Characteristics of CRE Logistics REIT, Inc.

CRE’s Leasing/Property Management Capability – Strength in Wide Tenant Networks
Fast grasp of rent trends, including actual rents paid and rent
increases and decreases, by entering into contracts directly witha diverse range of tenants, not just logistics service providers.

Ranks Third Among Logistics Facilities-focusing PM
companies
Top 5 based on the entrusted areas• CRE can gain an understanding of rent levels by entering contracts withtenants directly under master lease arrangements

11.0• CRE builds relationships with tenants from a variety of industries not
only logistics operators.

9.8

6.1

5.7
3.0

Other
Customer services

Transportation
services

Corporation services(mn ㎡)

GLP
GLP

Total Number ofMaster Lease Tenants

Whole sale

1,019 companies

RetailManufacturing

Around 70% of tenants are
not logistics operators
1. As of July 31, 2023. Figures include tenants of properties other than logistics facilities.The classification of tenants is made by
the Assets Manager based on hearing surveys at the execution of lease contracts, considering major items and industries ofeach tenants. Therefore, those ratios may differ from actual ratios.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

Major Clients

Real estate andconstruction

•
•
•
•
•
•
•
•
•
•
•

Daiwa
House
Daiwa
House
Property
Management
Property
Management

Prologis
Prologis

ESR
ESR

LaSalle LOGIPORT REIT
Star Asia Investment Corporation
KDX Realty Investment Corporation
United Urban Investment Corporation
Industrial & Infrastructure Fund Investment Corporation
Mitsubishi Estate Logistics REIT Investment Corporation
Mitsubishi Jisho Investment Advisors, Inc.
Morgan Stanley Capital K.K
Mitsui & Co., Realty Management Ltd.
Yamato Transport Co. Ltd.
TLC REIT Management Inc.
(No particular order)

1. Prepared by the Asset Manager based on Monthly Property Management Magazine from SOGO UNICOM Co.,ltd. (November 2023 edition).“Logistics facilities-focusing PM companies” refer to property managementcompanies where 70% or more of their entrusted areas are the areas of logistics facilities. “Entrusted areas”
include the management areas of real estate other than logistics facilities.
2. Prepared by the Asset Manager based on CRE Inc.’s Consolidated Results for the First Quarter of the Fiscal YearEnding July 31, 2024.

37

4. Characteristics of CRE Logistics REIT, Inc.

CRE’s Development Capability– Development Ensuring Versatility and Incorporating Tenant Requirements
Realization of Long-term Contracts and Mitigation of Re-tenant Risk by Ensuring Versatility and Incorporating Tenant
Requirements= High-quality logistics facilities developed by CRE to meet tenant needs
Versatility=

Location+

Basic
Specification+

Expandability+

Comfortability+

Tenant’s unique requirements

Improvement of Convenience by the Full Reflection of the Requirements Learned Through Day-to-Day Management andLeasing Activities in Development Plans

Improvement of convenience/
Reduction of future costs

Development /Construction Management Team
Reflection of requirements and management
status in development plans

Leasing Team

Property Management Team

Communication

Tenant Companies and Potential Tenants

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

38

4. Characteristics of CRE Logistics REIT, Inc.

Cumulative total floor area

Total floor area of properties developed or to be developed during the period
Properties jointly developed by Commercial RE and Kenedix

Properties developed by Commercial RE

CRE’s Development Capability

Properties under development by CRE

Properties developed by CRE
Properties held by other REITs– Development Since the Start of Real Estate Securitization in Japan

Properties jointly developed by CRE and Fukuoka Jisho
Properties with exclusive negotiation rights

Assets owned by CRE REIT

CRE has been developing logistics properties since real estate securitization started in Japan and has
accumulated its knowhow on the development of properties suitable for REITs.
LogiSquare Ichinomiya

Track record of development of 48 properties amounting around 1,216,000 ㎡
LogiSquare Fujimino A

LogiSquare Itami

LogiSquare Kakegawa

LogiSquare Shiroi

LogiSquare Fukuoka Ogori

LogiSquare Osaka Katano

LogiSquare Hirakata

LogiSquare Atsugi II

LogiSquare Kobe Nishi

LogiSquare Miyoshi II

LogiSquare Atsugi I

LogiSquare Narita

LogiSquare Miyoshi

Toyama BTS warehouse

LogiSquare Matsudo

LOGICITY Ogori

LogiSquare Chiba Kita II

LogiSquare Misato

LogiSquare Chitose

LogiSquare Mizuho A

LogiSquare Mizuho B

1,400

LogiSquare Yachiyo

LogiSquare Kuki II

LogiSquare Tosu

LogiSquare
Urawa Misono

LogiSquare Kawagoe

LogiSquare Ageo

1,216
1,200
LogiSquare Matsuzaki I

LogiSquare Kazo II

LogiSquare Tosu II

LogiSquare Kuki

LogiSquare Niiza

LogiSquare Kasukabe

LogiSquare Kawagoe II LogiSquare Sayama Hidaka

940

1,000
LogiSquare Tosu I

800
600

Yokohama Fukuura
Logistics Center

LogiSquare Ichikawa-tajiri LogiSquare Sagamihara

200

118

8

110

FY2006/3

FY2007/3

0(Thousand ㎡)

Timing of listingof logistics REITs

May 2005

LogiSquare Yashio

LogiSquare Hidaka

LogiSquare Hanyu

167
49
FY2008/3

220

248

267

283

29

19

16

FY2013/7

FY2014/7

FY2015/7

53
FY2009/3

LogiSquare Moriya

477

LogiSquare Matsuzaki II LogiSquare Tokorozawa

400
LogiSquare Kazo I

LogiSquare Soka

Dec. 2012

Feb. 2013

Listing of first REIT specializing
in logistics facilities

358

703
542
65

119

576
33

805

805

135

FY2022/7

FY2023/7

276

102

128

75

FY2016/7
Feb. 2016

FY2017/7
Aug. 2016

FY2018/7
Sep. 2017

FY2019/7

Feb. 2018 Sep. 2018

FY2020/7

FY2021/7

FY2024/7

Dec. 2019

CRE REIT listed

The above chart includes assets other than the current assets. CRE REIT is not engaged in any exclusive negotiation with CRE and CRE Subsidiaries, etc. on any of the above assets that are not the current assets, nor does it plan any acquisition of them at the present time or
guarantee future acquisition from them. The above chart also includes the properties that have already been sold to third parties. Furthermore, with respect to properties under development by CRE, as of July 31, 2024, the development has not been completed and thepictures, the total floor area and development completion timing are based on plans as of July 31, 2024 and may change in the future. The development completion dates of the above assets are stated as the building completion dates.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

39

5. Appendix

LogiSquare Sayama Hidaka
The propertyhas (C)
warehouse
space
on floors
1-4 Inc.
and All
offices,a cafeteria
and so forth on the fifth floor.
Copyright
2024 CRE
Logistics
REIT,
RightsReserved.

40

5. Appendix

Promoting ESG Efforts – Environment
In-house consumption of solar power

Human detecting sensors

Installation of water-saving sanitation
appliances

Ensure a part of the electricity consumed in
facilities from the electricity generated by solar
power.

Promote energy saving by installing humandetecting sensors in facilities.

Promote the reduction of water usage by installinghigh-performance water-saving sanitation appliances.

Installation of roof watering
equipment

Green walls

Soil contamination countermeasures

Contribute to the reduction of temperaturesinside warehouses by installing well waterbased roof watering equipment.

Green walls have the effect of lowering thesurface temperature of buildings andcontributes to the reduction of CO2 in theatmosphere.

Enbio Holdings, Inc., a CRE group company,
revitalizes old factory sites as the land for logistics
facilities by actively utilizing in-situ cleaning
methods that decompose undergroundcontaminants without excavating contaminated soil.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

41

5. Appendix

Promoting ESG Efforts – Social (1)Conduct tenant satisfaction surveys

Establish a favorable relation between theemployees and the Asset Manager• Semiannually employee satisfaction survey

Conducts a tenant satisfaction survey every year to improve amenities
and convenience to the tenants and employees of its facilities.
Do you want to stay in LogiSquarein the future?
No
7.7%

Do you have a specific reduction
target for GHG emissions?

No
30.8%

Yes
43.8%

Asset Manager conducts questionnaires on employee
engagement twice a year and confirms that the employees areproactively engaging in their work and are motivated tocontribute to the organization. If problems are identified, theemployees themselves devise and implement improvement
measures.

• The president has 1 on 1 meeting with all employees
quarterly
Yes
92.3%

Not at this time, but weare discussing goal setting
25.4%

1. Based on leased area.
2. The above survey was conducted in January-February 2024 by CRE REIT and the Asset Manager for all tenants of current assets.

The President and the head of department of
the Asset Manager interviews each
employee every quarter.
These interviews are opportunities
to discuss various matters, including
target-setting, progress of work and career building.

Hold educational field trip for nearby elementary
school students
The tenant conducted an educational
field trip for nearby elementary school
students at LogiSquare Osaka Katano.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

FY 2023/7
Times

Rate

1 on 1 meetingwith the President

4

100.0%(all employees)

1 on 1 meetingwith the head of
department4

100.0%(all employees)

42

5. Appendix

Promoting ESG Efforts – Social (2)The business continuity of tenants
and the improvements in amenities• Support for business continuity planning measures- Hold logistics facilities located in an inland area where the risk ofliquefaction is low.
- Install power receiving and transforming equipment at elevatedlocations as a flood control measure.
- Introduce earthquake early warning systems.
- Install AEDs.
- Install emergency power supply systems.
- Install short circuit isolators in fire alarms to prevent the spread of fires.

• Amenity Improvements- Adopt warm-color lighting in entrances
and truck berths, etc.
- Install restrooms for outside drivers.
- Renovate smoking rooms to respondto the revision to the Health Promotion
Act in April 2020.

Efforts for executives and employees• Support for skill development- Encourage employees to acquire qualifications by paying for expenses
and bonuses for acquisition of qualifications.
License holders (including those that have passed examinations)
Qualification name

Percentage of staff holding qualificationor having passed exam (1)Real estate broker
ARES (Association for Real Estate Securitization)
Certified Master
CMA (Certified Member Analyst of the Securities
Analysts Association of Japan) holder
Real estate consulting master

75.0%
66.7%
25.0%
16.7%

1. Calculated with the 12 people involved in the operation of CRE REIT (as of June 30, 2024) as thedenominator.

• Improvement of the work environment- Refresh and expand the work space by relocating offices.
- Introduce staggered commuting and working from home as a measureagainst COVID-19.

Active disclosure to investors

Contribution to regional and social development• Rationalize disclosures by correcting
information gaps among investors.

• CRE Activities- Promote fair disclosure and therationalization of disclosure byenhancing supplementary material.

• IR activities in consideration of COVID-19- Since March 2020, CRE REIT hold conference calls and web
conferences with institutional investors in Japan and overseas to havethe same dialogue as usual.
Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

- The CRE Group has cooperated with a local
government in the excavation of the remainsof 74 pit houses from the Middle Jomon Era(about 5,000 years-old), which werediscovered during the development of LogiSquare Sayama Hidaka, andhas collaborated with the local government in the preservation ofarchaeological records and tours of the site.
- Hold a CRE forum for the purpose of sharing logistics issues faced by companies.

• Install fire cisterns to provide tap water that can be used as a firefighting
irrigation.
• Cooperate for traffic restrictions during the Saitama International Marathon.

43

5. Appendix

Promoting ESG Efforts – GovernanceHolding investment units by executives and employeesof the sponsor and the Asset Manager

High independence of the Asset Manager• The sponsor's president holds units of CRE REIT. Many executives andemployees of the Asset Manager hold investment units of CRE REIT basedon a cumulative investment system and internal regulations.

• The Asset Manager was established as an independent asset managementcompany, and all full-time executives and employees are employed by the
Asset Manager. CRE is not involved in their recruitment or personnel evaluation.

Title
CRE

the Asset
ManagerName

Number of persons

Units held

Category

822 units

Full-time executives

2

Employees

14

President

Tadahide

Kameyama

President

Tsuyoshi Ito

1,277 units

Managing Director

Takeshi Oka

88 units(Of which, employees seconded
from CRE)

135 units

12 out of 14 employees
1. As of June 30, 2024. Also, the number of each held unit is rounded down to the nearest unit.

–

16

Total
1. As of June 30, 2024.

Revise of asset management fee structure to be more aligned with unitholder’s interests• Amended Articles of Incorporation at the General Meeting of Unitholders held on September 28, 2022 with the following revision of fee structurefrom the fiscal period ending June 2023.
• By reducing management fee 1 based on total assets and unifying management fees 2 and 3, aim to increase the linkage with earnings per unit.
Before Revision
Management fee 1

Total assets × 0.325% (Upper limit)

Management fee 2

Income before income taxes × 4.0%

(Upper limit)

Management fee 3

Earnings per unit × 10,000

Fee on acquisition

Acquisition cost × 1.0% (Upper limit)(0.5% (Upper limit) in case of transactions with interested party)

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

After Revision

ReduceTotal assets × 0.3%

Unify

Income before income taxes × Earnings per unit
× 0.0019%
Acquisition cost × 1.0%

(0.5% in case of transactions with interested party)44

5. Appendix

Trend in Investment Unit Price
Trend in investment unit price (closing price) (as of August 13, 2024)
230,000

NAV per unit
Tokyo Stock Exchange REIT Index

210,000

Investment unit price of CRE REIT
190,000

170,000

150,000

130,000

110,000

90,00070,0002018(Yen) 2/6

5/8

8/1

10/29

2019
1/30

4/26

PO,
Feb. 7, 2018
Acquisition Listing
Aug. 2018
Introduced a cumulative
investment unit investment system

7/30

10/29

2020
1/29

4/27

7/28

June 27, 2019
Jan. 7, 2020
Announcement Announcementof the 1st POof the 2nd PO
Credit Rating
(R&I)

10/26

2021
1/25

4/21

June 29, 2020
Announcementof the 3rd PO

Mar. 31, 2020
Newly acquired A- (stable)

7/20

Jan. 4, 2021
Announcementof the 4th PO

Title and nameIncludedin Index

Number ofunits acquired

Tadahide Kameyama, President of CRE

500 units

Tsuyoshi Ito, President of Asset Manager

1,000 units

May 29, 2020
MSCI Global
Small Cap Index

2022
1/18

4/15

7/14

Sep. 2, 2021
Announcementof the 5th PO

Apr. 21, 2021
Changed to A- (positive)

Credit Rating(JCR)
July 17, 2019
The presidents of the sponsor and the Asset Manager
acquired investment units

10/19

GRESB

2023
1/12

4/10

July 20, 2022
Announcement of
Acquisition and Sale

7/6

10/3

12/29

2024
4/2

6/28

Mar. 23, 2023
Announcementof the 6th PO

Mar. 31, 2022
Changed to A (stable)

Aug. 3, 2021
Newly acquired A (stable)

Sep. 18, 2020
FTSE Global Equity
Index Series

10/13

June 2, 2022
Changed to A+ (stable)

Dec. 20, 2021
FTSE EPRA Nareit Global
Real Estate Index Series
Oct. 15, 2021
Participated for the first timeand received 3 Stars

Feb.-Apr., 2021
Three securities companies started
analyst coverage

Oct. 18, 2022
Received 5 Stars

Oct. 3, 2023
Received 4 Stars

Apr. 1, 2022
Win Capital Eye Awards“BEST ISSUER OF 2021”

1. Trends in the closing price of the Tokyo Stock Exchange REIT Index at Tokyo Stock Exchange, Inc. (hereinafter “TSE”) show trends in relativized figures on the assumption that the closing price (1,661.29pt) of the TSE REIT Index on the previous business day of thelisting of CRE REIT (February 7, 2018) is the same as the issue price (110,000 yen per unit) of CRE REIT at the time of listing.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

45

5. Appendix

Realize External Growth that Contributes to Increases in Stabilized DPU
Increase stabilized DPU by an average annual growth rate of 6.3% through six public offerings andacquisition of assets.
Stabilized DPU+27.4% Annual rate +6.3%
4,000

3,547
3,374

3,500

3,000

3,029

2,940
372

+3.0%

365

3,258

3,160
+4.3%

323

+3.1%

326

+3.6%

338

+2.5%

342

+5.1%

3,747

3,637
349

+3.0%

2,500

2,000

2,568

2,664

2,932

2,837

3,288

3,205

3,036

359

3,388

Stabilized EPU+31.9% Annual rate +7.2%
1,500
(Yen)

At initialstabilizedlevel

At stabilized
level after
the 1st PO

At stabilized
level after
the 2nd PO

At stabilized
level after
the 3rd PO

At stabilized
level after
the 4th PO

At stabilized
level after
the 5th PO

At stabilized level
after acquisitionand saleAt stabilized
level after
the 6th PO

the 7th FP(ended 2019/12)
Initial Forecast

the 8th FP(ended 2020/6)
Forecast at the1st PO

Forecast at the 2nd PO
based on the 9th FP(ended 2020/12)

Forecast at the 3rd PO
based on the 10th FP(ended 2021/6)

Forecast at the 4th PO
based on the 11th FP(ended 2021/12)

Forecast at the 5th PO
based on the 12th FP(ended 2022/6)

Forecast dated Aug. 15, 2022
based on the 14th FP(ending 2023/6)

Forecast at the 6th PO
based on the 15th FP(ending 2023/12)

Earnings per unit (EPU)

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

Surplus distribution per unit46

5. Appendix

Trends in each indicator (1) DPU and NAV per unit

DPU
7,000

6,274

6,000

5,000

4,000

3,000

3,351
2,585

2,952

3,012

3,086

2019/6

2019/122020/6

3,392

3,398

3,524

3,577

2020/122021/62021/122022/6

3,820

3,626

3,654 3,741 3,782

2,000

1,000
(Yen)

2018/62018/122022/122023/62023/122024/62024/12
Forecast

2025/6
Forecast

NAV per unit
200,000

158,006
150,000

114,936

117,317

118,187

122,2122018/62018/122019/6

2019/12129,286

137,499

164,201

169,195

176,264

177,871

179,0452023/62023/122024/6143,278

100,000

50,0000(Yen)2020/6

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

2020/122021/62021/122022/62022/1247

5. Appendix

Trends in each indicator (2) LTV and FFO/AFFO per unit

LTV
51%

49.3%
49%

47.7%

47.9%

47.7%

47%

45.9%
45.0%

44.8%

45%

44.0%

44.7%

44.1%

43.9%

44.2% 44.4% 44.3%

43.0%
43%

41%

2018/62018/122019/6

2019/122020/62020/122021/62021/122022/62022/122023/62023/122024/62024/12
Forecast

2025/6
Forecast

FFO/AFFO per unit
5,000

FFO per unit

4,658

AFFO per unit

4,220
4,217

4,000

2,000
(Yen)

3,822

3,822

3,348
3,000

4,151

3,866
3,866

3,838

4,059

4,167
4,129

4,276
4,266

4,373
4,353

4,237
4,201

4,307

4,597

4,495
4,461

4,240

3,837

3,348

2018/62018/122019/6

2019/122020/6

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

2020/122021/62021/122022/62022/122023/62023/122024/648

5. Appendix

Trends in each indicator (3) Asset Size and Occupancy Rate

Asset Size
200,000

150,000

134,686

134,686

136,998

2021/122022/62022/12

159,504

159,504

159,504

2023/62023/122024/6112,316
91,527100,000

73,67550,0000(mn yen)47,72547,72547,725

2018/62018/122019/6

54,115

2019/122020/62020/122021/6

Occupancy rate
100.0%

100.0%

100.0%

99.3%

99.2%
97.4%

100%
99.6%

98.9%

99.2%

97.1%

90%

99.6%

98.9%

80%
70%

Result60%

Forecast50%

2025/06

2025/032024/122024/092024/06

2024/032023/122023/092023/06

2023/032022/122022/092022/06

2022/032021/122021/092021/06

2021/032020/122020/09

2020/06

2020/03

2019/122019/092019/06

2019/032018/122018/092018/06

2018/032017/12

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

49

5. Appendix

Portfolio Centered on Metropolitan Areas (1) Tokyo Metropolitan Area
Locations of portfolio assets and pipeline assets

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

50

5. Appendix

Portfolio Centered on Metropolitan Areas (2) Kansai Area and Other
Locations of portfolio assets and pipeline assets

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

1. "LOGICITY Ogori" is a property jointly developed by CRE and Fukuoka Jisho Co., Ltd.

51

5. Appendix

Rich Pipeline Enabling Future External Growth
Aiming for continuous distributions growth in cooperation with CRE Group19 properties / Total floor area 972,170 ㎡

Pipeline
Properties with
exclusive negotiation rights
BridgeBridgeBridgeLogiSquare Ichinomiya(1) Sep. 2023
(2) 60,641㎡(3) Ichinomiya-shi,
Aichi

Properties under development or developed by CRE
BridgeLogiSquare Narita(1) May 2024
(2) 18,022㎡(3) Narita-shi, Chiba

LogiSquare Kakegawa(1) Jan. 2024
(2) 14,236㎡(3) Kakegawa-shi,
Shizuoka

LogiSquare Atsugi I(1) Mar. 2023
(2) 18,236㎡(3) Aikawa-machi,
Kanagawa

A
C

LogiSquare Matsudo(1) May 2023
(2) 15,642㎡(3) Matsudo-shi, Chiba

BridgeLogiSquare Atsugi II(1) Mar. 2024
(2) 18,422㎡(3) Atsugi-shi, Kanagawa

LogiSquare Fukuoka
Ogori(1) Feb. 2024
(2) 23,913㎡(3) Ogori-shi, Fukuoka

LOGICITY Ogori(1) July 2024
(2) 28,364㎡(3) Ogori-shi, Fukuoka

B

B

A

B
A

LogiSquare Fujimino A,B,C(1) A: Jan. 2024 (2)A:112,340㎡
B: Oct. 2024
B:114,083㎡
C: 2025
C: 43,283㎡(3) Fujimino-shi, Saitama

LogiSquare Kyotanabe A,B(1) A: Feb. 2025 (2)A:155,878㎡
B: 2026
B: 87,534㎡(3) Kyotanabe-shi, Kyoto

LogiSquare Asaka A,B(1) A: 2027
(2)A:112,000㎡
B: 2027
B: 68,000㎡(3) Asaka-shi, Saitama

4 properties
81,576㎡(1)Completion date (planned) (2)Total floor area (planned) (3)Location
1. As of July 31, 2024, CRE REIT has not engaged in specific negotiations with the CRE Group companies regarding the pipeline nor does it have any plan to acquire from the pipeline at the present time or guarantee any future acquisition from the pipeline.
2. "LOGICITY Ogori" is a property jointly developed by CRE and Fukuoka Jisho Co., Ltd.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

52

5. Appendix

Portfolio List
No.

Property nameLocation

Acquisition
price(mn yen)Appraisalvalue(mn yen)Appraisal
NOI yield(%)

Total floor area(㎡)

Age
Number Occupancy(years) of tenants rate(%) Developer

M-1

LogiSquare Kuki

Kuki-shi, Saitama

9,759

11,7004.8

40,907.13

8.1

1

100.0

CRE

M-2

LogiSquare Hanyu

Hanyu-shi, Saitama

6,830

7,670

4.9

33,999.61

8.0

1

100.0

CRE

M-3

LogiSquare Kuki II

Kuki-shi, Saitama

2,079

2,490

5.2

11,511.22

7.4

1

100.0

CRE

M-4

LogiSquare Urawa Misono

Saitama-shi, Saitama

13,06015,9004.8

48,738.29

7.3

3

100.0

CRE

M-5

LogiSquare Niiza

Niiza-shi, Saitama

6,960

8,430

4.9

25,355.82

7.3

1

100.0

CRE

M-6

LogiSquare Moriya

Moriya-shi, Ibaraki

6,157

8,010

5.6

32,904.90

7.2

2

100.0

CRE

M-7

LogiSquare Kawagoe

Kawagoe-shi, Saitama

1,490

1,790

5.1

7,542.56

6.4

1

100.0

CRE

M-8

LogiSquare Kasukabe

Kasukabe-shi, Saitama

4,900

6,000

5.1

21,315.54

6.1

1

100.0

CRE

M-9

LogiSquare Soka

Soka-shi, Saitama

8,109

9,820

4.6

28,817.59

11.0

1

100.0

CRE

M-10

LogiSquare Yashio

Yashio-shi, Saitama

5,073

6,490

4.7

19,068.60

10.4

1

100.0

CRE

M-11

LogiSquare Mizuho A

Mizuho-machi, Tokyo

2,794

3,250

4.9

13,755.16

17.4

1

100.0

CRE

M-12

LogiSquare Mizuho B

Mizuho-machi, Tokyo

3,584

4,110

4.8

16,016.37

17.4

1

100.0

CRE

M-13

LogiSquare Ageo

Ageo-shi, Saitama

4,908

5,860

4.8

19,142.84

5.2

2

100.0

CRE

M-14

LogiSquare Miyoshi

Miyoshi-machi, Saitama

11,70013,700

4.6

37,931.49

4.1

1

100.0

CRE

M-15

LogiSquare Sayama Hidaka

Hanno-shi, Saitama

17,67818,8004.2

73,728.44

4.1

6

77.9

CRE

M-16

LogiSquare Kawagoe II

Kawagoe-shi, Saitama

3,244

3,720

4.8

14,281.38

5.0

1

100.0

CRE

M-17

LogiSquare Shiroi

Shiroi-shi, Chiba

7,415

7,870

4.4

28,503.11

1.6

1

100.0

CRE

K-1

LogiSquare Kobe Nishi

Kobe-shi, Hyogo

3,479

4,040

5.0

16,006.20

4.2

1

100.0

CRE

K-2

LogiSquare Osaka Katano

Katano-shi, Osaka

22,37024,1004.3

76,393.17

3.5

5

100.0

CRE

K-3

LogiSquare Hirakata

Hirakata-shi, Osaka

15,091

16,4004.2

42,875.27

1.5

1

100.0

CRE

O-1

LogiSquare Tosu

Tosu-shi, Saga

2,823

4,140

6.3

16,739.40

6.4

1

100.0

CRE

159,504

184,290

4.6

625,534.09

5.9

34

97.4

–

21 properties Total/Average
1. As of June 30, 2024

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

53

5. Appendix

Portfolio Diversification

More than 70% of the tenants are in the logistics industry and handle a wide variety of products.

Diversification of tenants

Tenant industries

Top 5 tenants

Products handled by tenants

Ratio of logistics industry

31.9%Services 0.7%
Information andcommunications 2.8%
Retail 2.9%
Manufacturing
5.0%

Warehouse/transp
ortation-related
1.4%

75.3%

Other 3.4%

Entertainment articles
and toys 2.8%

Pharmaceuticals 3.6%

Machines and parts
19.0%

Books 4.3%

Building material 5.2%

Wholesale
13.4%

Furniture
6.4%

No. of tenants

Food and beverage
16.8%

34

Land
transportation
73.8%

Home appliances
8.4%

Interior products
8.9%
Daily
commodities
10.1%

Apparel
11.0%

1. Based on leased area.
2. The classification in each graph is on visual contact or hearing results, and only major items are stated by Asset manager. Therefore, those ratios may differ from actual ratios.

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

54

5. Appendix

Overview of Appraisal Value
Appraisal value / Unrealized gains rate
200,000

183,540
148,560

150,000

151,620

155,798

50,48050,00047,59347,3065.3%

6.7%

2018/62018/1247,0197.4%
2019/6

72,661

53,156

8.9%
1st
PO

2019/122ndPO

2020/6

3rd
PO

2020/12

Appraisal value

12.0%

10.2%

9.4%

8.1%

4th
PO

2021/640.0%

154,352

30.0%

133,767
20.0%

90,25357,88050,480132,047

155,085

110,767

78,58050,1300(mn yen)132,678

98,780184,290

156,160

122,040
100,000

184,060

5thPO

2021/12Book value

14.8%

2022/6

17.8%

16.7%

18.7%

19.4%
10.0%

2022/12

6th
PO

0.0%
2023/62023/122024/6

176,264

177,871

179,045

Unrealized gains rate

NAV per unit
200,000

150,000

114,936

117,317

118,187

122,212

10,974

13,727

14,96918,21850,000103,962

103,589

103,217

103,9930(yen)

2018/62018/122019/6

100,000

1stPO

129,286
17,043

2019/12112,243

2nd
PO

2020/6

3rd
PO

20,134

22,537

117,365

120,740

2020/12

4thPO

Net assets after distribution per unit

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

158,006

143,278

137,4992021/65thPO

164,201

169,195

28,12334,65939,65444,194

46,16047,694

129,882

129,541

129,541

132,069

131,710

131,3502021/122022/62022/122023/62023/122024/66th
PO

Unrealized gains per unit55

5. Appendix

Overview of Appraisal ValueNo.

Property nameAcquisition
month andyear

At the end of the
At the end of thevalue
ChangesAcquisition atBook
16th FP
15th FP
Unrealized Unrealized
the
end
of
price
gains
gains rate
Appraisal
DirectAppraisal
DirectAppraisal
Directthe
16thFP(mn yen)
(mn
yen)
(%)
value
capitalization
value
capitalization
value
capitalization(mn yen)(mn yen)rate (%)(mn yen)rate (%)(mn yen)rate (%)

M-1

LogiSquare Kuki

Jul. 2016

9,759

8,770

11,7003.9

11,700

3.9

―

―

2,929

33.4

M-2

LogiSquare Hanyu

Jul. 2016

6,830

6,140

7,670

4.3

7,700

4.3

-30

―

1,529

24.9

M-3

LogiSquare Kuki II

Feb. 2018

2,079

1,925

2,490

4.2

2,490

4.2

―

―

564

29.3

M-4

LogiSquare Urawa MisonoFeb. 201813,06012,363

15,9003.8

15,800

3.8

+100

―

3,536

28.6

M-5

LogiSquare Niiza

Feb. 2018

6,960

6,555

8,430

4.0

8,380

4.0

+50

―

1,874

28.6

M-6

LogiSquare Moriya

Feb. 2018

6,157

5,762

8,010

4.2

8,000

4.2

+10

―

2,247

39.0

M-7

LogiSquare Kawagoe

Jul. 2019

1,490

1,440

1,790

4.0

1,820

4.0

-30

―

349

24.2

M-8

LogiSquare Kasukabe

Jul. 2019

4,900

4,723

6,000

3.9

6,050

3.9

-50

―

1,276

27.0

M-9

LogiSquare Soka

Feb. 2020

8,109

8,050

9,820

3.6

9,830

3.6

-10

―

1,769

22.0

M-10

LogiSquare Yashio

Feb. 2020

5,073

5,040

6,490

3.6

6,460

3.6

+30

―

1,449

28.8

M-11

LogiSquare Mizuho A

Feb. 2020

2,794

2,799

3,250

4.0

3,240

4.0

+10

―

450

16.1

M-12

LogiSquare Mizuho B

Feb. 2020

3,584

3,568

4,110

4.0

4,110

4.0

―

―

541

15.2

M-13

LogiSquare Ageo

Jul. 2020

4,908

4,787

5,860

3.9

5,810

3.9

+50

―

1,072

22.4

M-14

LogiSquare MiyoshiJul. 2020

11,70011,333

13,7003.9

13,700

3.9

―

―

2,366

20.9

Jan. 2021 80%
July 2022 20%

17,67817,32518,8003.7

19,400

3.7

-600

―

1,474

8.5

M-15

LogiSquare Sayama Hidaka

M-16

LogiSquare Kawagoe II

Jan. 2021

3,244

3,180

3,720

4.0

3,720

4.0

―

―

539

17.0

M-17

LogiSquare Shiroi

Apr. 2023

7,415

7,404

7,870

4.1

7,940

4.1

-70

―

465

6.3

K-1

LogiSquare Kobe Nishi

Jan. 2021

3,479

3,425

4,040

4.2

3,850

4.2

+190

―

614

18.0

K-2

LogiSquare Osaka Katano

Sep. 2021

22,37022,07624,1004.0

24,100

4.0

―

―

2,023

9.2

K-3

LogiSquare Hirakata

Apr. 2023

15,091

15,055

16,4003.8

16,100

3.8

+300

―

1,344

8.9

O-1

LogiSquare Tosu

Apr. 2018

2,823

2,622

4,140

4.1

3,860

4.1

+280

―

1,517

57.9

―

159,504

154,352

184,290―184,060

―

+230

―

29,93719.4

End of 16th FP Total / Average

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

56

5. Appendix

Status of Investors
Major investors (as of June 30, 2024)
Name

Number of investment units by type of owner
Number ofinvestment
units(units)

Ratio
(%)

Custody Bank of Japan, Ltd. (Trust Account)

154,493

24.6

The Master Trust Bank of Japan, Ltd. (Trust Account)

133,356

21.2

The Nomura Trust and Banking Co., Ltd. (Investment
Trust Account)

31,703

5.1

CRE, Inc.

22,550

3.6

JP MORGAN CHASE BANK 385771

13,957

2.2

STATE STREET BANK WEST CLIENT - TREATY 505234

10,263

1.6

The Bank of Yokohama, Ltd.

8,220

1.3

Mitsubishi UFJ Trust and Banking Corporation

6,194

1.0

Kinkisangyou Shinkumi Bank

6,050

1.0

STATE STREET BANK AND TRUST COMPANY 505103

5,906

0.9

Total

392,692

62.6

Number of investors by type of owner (as of June 30, 2024)
Number ofinvestors(person)Individuals/others

Ratio
(%)

13,756

96.0

Financial institutions

67

0.5

Other domestic corporations

263

1.8

Overseas investors

228

1.6

Securities companies

18

0.1

14,332

100.0

Total

Copyright (C) 2024 CRE Logistics REIT, Inc. All Rights Reserved.

Individuals/others

Financial institutions

Other domestic corporations

Overseas investors

Securities companies

16th FP(2024/6)

13.6%
85,255

63.1%
395,851

5.6% 17.1%
35,006 107,607

0.6%
3,981

15th FP(2023/12)

10.9%
68,54564.2%
403,2945.6%
18.5%
35,238 115,907

0.8%
4,716

14th FP(2023/6)

9.8%
61,461

64.2%
402,916

5.6%
19.3%
35,239 120,907

1.1%
7,177

13th FP(2022/12)

10.4%
58,85462.2%
351,078

5.8%
32,61919.7%
111,487

1.9%
10,662

12th FP(2022/6)

9.3%
52,65662.6%
353,595

5.7%
32,04020.5%
115,759

1.9%
10,65011th FP(2021/12)

9.4%
53,27510th FP(2021/6)

12.3%
61,305

61.6%
308,166

9th FP(2020/12)

13.2%
56,071

63.5%
268,753

7.1% 14.3%
29,857 60,435

2.0%
8,384

8th FP(2020/6)

16.8%
58,252

57.3%
199,135

11.3%
39,132

12.5%
43,4192.1%
7,312

7th FP(2019/12)

19.1%
49,506

48.7%
126,15419.1%
49,47510.5%
27,227

2.7%
6,888

6th FP(2019/6)

22.0%
50,82142.8%
99,02425.2%
58,3407.7%
17,7802.2%
5,185

5th FP(2018/12)

4th FP(2018/6)

25.2%
58,21421.3%
49,12858.2%
328,640

41.6%
96,232
42.1%
97,214

5.3%
29,714

2.5%
14,242

24.6%
138,829

6.2% 16.8%
31,254 83,907

26.1%
60,395
26.4%
61,122

3.1%
15,518

6.0% 1.0%
13,984 2,325
9.7% 0.6%
22,361 1,325

57