Eighth Fiscal Period (Ended July 2022)
Investor Presentation Material

IMP Noda and IMP Misato with gold clouds trailing（Arranged in the style of Rakucho-Rakugai-zu）

Ticker Symbol: 3493
Advance Logistics Investment Corporation0

Table of Contents

Merger Effect of Asset Management Company

P.2

Financial Highlights

P.3

Financial Results

P.5

Growth Strategies

P.8

Portfolio

P.20

Market Overview

P.22

Appendix

P.25

Notes on the Statements

P.35

Refer to the notes on page 35 for the statements marked with an asterisk (*) in this document

1

Merger Effect of Asset Management Company
Change management structure to manage multiple funds through mergerof asset management company※ in June 2022. Steadily realizing theeffects of merger to enhance unitholder value.
Aims of Merger
Expansion of investment
opportunities / Acquisition ofproperty information

Specific Merger Effects
1. Strengthen property information collection capabilities
・ Number of acquired property information doubled by sharing existing networks.
・ Information sharing with comprehensive private REITs
・ Enhancement of presence as an asset management company

2. Strengthen operation structure by integrating back-office functions
・ Rationalize financial operations by change fiscal period, reducing management fee.
・ Cost efficiency through sharing and integrating suppliers.
・ Attract visitors and reduce costs by jointly hosting IR events, etc.

Sharing know-how ofeach company

3. Utilize engineering unit functions (first-class registered architect office)・ Expansion of technical support through integration of business partners
・ Effective repair plan and quality/cost management of construction
・ Improve efficiency of building management costs, including utility/electricity cost.

4. Establish department specializing in ESG and reinforcement of initiatives
・ Establish materiality, KPIs & targets based on mid/long-term business continuity.
・ Strengthening decarbonization efforts, external certification, climate change risks

5. Human Resource Development
Strengthen human resource
development & recruitment
capabilities

・ Utilize specialized personnel in legal/risk management, internal audit etc.
・ Mutual utilization/succession of knowledge & expertise of many years experience・ Increase employee motivation, diversity employment opportunities throughmanagement of multiple funds
・ Unified efforts to strengthen corporate culture and investor-oriented awareness.

※Former ITOCHU REIT Management Co.,Ltd. merged with AD Investment Co., Ltd

2

Financial Highlights

3

Highlights
Asset size expanded to 111.4 BN Yen. Achieved growth in DPU, NAV per unit, and unrealized gains
Operational Highlights <as of the End of the 8th Fiscal Period (Jul. 2022) >Appraisal value

Occupancy rate

4.9%
Actual NOI yield 5.0%

99.9%

Appraisal NOI yield(based on acquisition price)

Jul. 2022 143,911 yen(12 properties) (+3.0 bn yen)

Warehouse space occupancy rate
is 100%. Only vacant space of IMP
Noda’s office space is utilized as
emergency storage space

Jan. 2022

Unrealized gains

NAV per unit

130.5 bn Yen

Jul. 2022

Jul. 2022 23.0 bn Yen(unrealized gain ratio 21.5% ) (12 properties)(+4.3%)
Jan. 2022 19.2 bn Yen

Jan. 2022 137,944 yen

127.4 bn Yen(unrealized gain ratio 17.8%) (12 properties)(12 properties)

Change of DPU <as of the End of the 8th Fiscal Period (Jul. 2022) >Annual average growth of DPU: 5.52%(Annual average growth of EPU: 4.15%)※

Unit:Yen

2,311

2,395

2,517

2,425

269

287

543

2,050

2,126

2,138

1,974

2nd FP (Jul. 2019)
第2期(2019/7期)

3rd FP (Jan. 2020)
第3期(2020/1期)

261

2,492

2,755

2,689

399

399

2,356

2,290

＋1.0%

2,715

(+26 yen)

238

399

273

1,729
273

2,254

※

＋1.1%

2,316

(+26 yen)

1,456
1st FP (Jan. 2019)
第1期(2019/1期)■■SCD per unit ■■DPU per unit (excluding SCD)

4th FP (Jul. 2020)
第4期(2020/7期)

5th FP (Jan. 2021)
第5期(2021/1期)

6th FP (Jul. 2021)
第6期(2021/7期)

7th FP (Jan. 2022)
第7期(2022/1期)

8th
FP (Jul. 2022) forecast
第8期(2022/7期)予想

8th FP Actual
第8期実績※Growth % is calculated from 2nd FP to the 8th FP.
※DPU per unit decreased over the previous fiscal period due to a public offering during the period, properties acquired that were non-performing for the full-year, and unexpected cost

Measures Highlights
External
GrowthInternal
Growth Acquired preferential negotiation rights of IMP Kasugai, IMP Kuwana and IMP
Yoshikawa Minami.
 Expected to further improve the stability of cash flow by build-to-suit properties
under a long-term contract that meet customer needs

 Issued 2nd Green Bond of 2 bn yen in February 2022 to promote diversification

Financialof lenders and financing methods
Strategies  Procured 5 bn yen entirely as green loan to be used for refinancing in August 2022.
Improved financial stability by extending the maturity and fixed interest rates

 Renewed contract and concluded new contract for all spaces expiring in
September 2022
 Started negotiation of renewal with tenants expiring in September 2023
 Reduce insurance expenses by reviewing umbrella liability insurance Plan to start new solar panel roof lease at IMP Inzai 2 from February 2023

ESG

4

 Issued initial ESG report Concluded agreement with Noda City to use IMP Noda in the event of a disaster Enhanced internal system, such as setting KPIs & long-term target for materialities ordeveloping strategies for climate changeFinancial Results

5

Financial Results of the 8th Fiscal Period (Jul. 2022)
Reduced repair and other expenses resulted in higher DPU than forecast
DPU

FFO per Unit

8th FP (Jul. 2022) 2,715 yen
vs forecast +26 yen ( + 1.0%)

8th FP (Jul. 2022) 3,648 yenvs forecast + 26 yen ( + 0.7%)

7th FP(Jan. 2022)(MN Yen)

Actual

8th FP(Jul. 2022)
Forecast(announced on
Mar. 17, 2022) (A)Actual(B)

Breakdown of Difference(8th FP forecast vs 8th FP)

Difference(B) − (A)Operating revenues

3,178

3,173

3,182

+8

Operating income

1,550

1,511

1,525

+13

Ordinary income

1,414

1,375

1,390

+15

Net income

1,413

1,374

1,389

+15

2,755 yen

2,689 yen

2,715 yen

+26 yen2,356 yen

2,290 yen

2,316 yen

+26 yen

399 yen

399 yen

399 yen

-

2,213

2,173

2,189

+15

FFO payout ratio※

74.7%

74.2%

74.4%

+0.1 pt

Ratio of SCD to depreciation

30.0%

30.0%

30.0%

0.0 pt3,688 yen

3,621 yen

3,648 yen

+26 yen

2,112

2,155

2,179

+24

74.7%

74.9%

74.8%

-0.1 pt

3,685 yen

3,591 yen

3,631 yen

+40 yen600,127

600,127

600,127-

DPU(including surplus cash distribution(SCD))DPU (excluding SCD)
SCD per unit
FFO

FFO per unit
AFFO※
AFFO payout ratio
AFFO per unit
Total number of investment units
outstanding

6【Operating revenues】
Increase in utility revenues+8【Operating income】
Increase in utility expenses-8
Decrease in repair expenses+6
Increase in asset management
fees-4
Decrease in other expenses+11Forecasts for the 9th FP (Feb. 2023) and the 10th FP (Aug. 2023)
Changed fiscal period and management fees structure (nearly 10% reduction from theprevious period) from the 9th FP
8th FP(Jul. 2022)(MN yen)

Actual(A)

9th FP(Feb. 2023 / 7 months)
Forecast(announced on
Mar. 17, 2022)

Forecast

10th FP(Aug. 2023)(Reference）

reference(6 months)（B）

Difference(B-A)

Forecast

Operating revenues

3,182

3,705

3,735

3,200

+18

3,200

Operating income

1,525

1,848

1,846

1,554

+29

1,544

Ordinary income

1,390

1,665

1,666

1,396

+6

1,395

Net income

1,389

1,664

1,665

1,395

+6

1,394

DPU
(including surplus cash
distribution (SCD))

2,715 yen

3,239 yen

3,239 yen

2,723 yen

+8 yen2,725 yen

DPU (excluding SCD)

2,316 yen

2,774 yen

2,775 yen

2,326 yen

+10 yen2,324 yen

399 yen465 yen464 yen

397 yen-2 yen401 yen

2,189

2,597

2,594

2,191

+2

2,197

FFO payout ratio

74.4%

74.8%

74.9%

74.5%

+0.1 pt

74.4%

Ratio of SCD todepreciation

30.0%

29.9%

30.0%

29.9%

-0.0 pt

30.0%

3,648 yen

4,327 yen

4,323 yen

3,652 yen

+4 yen3,661 yen

2,179

2,564

2,489

2,086

-93

2,191

74.8%

75.8%

78.1%

78.3%

+0.0 pt

74.6%

3,631 yen

4,272 yen

4,147 yen

3,476 yen-155 yen

3,650 yen

600,127

600,127

600,127

600,127-

600,127

Breakdown of Difference(8th FP actual vs 9th FP(6 month) forecast)【Operating revenues】

Increase in utility revenues+18【Operating income】

SCD per unit
FFO

FFO per unit
AFFO※
AFFO payout ratio
AFFO per unit
Total number of investment
units outstanding

7

Increase in utility expenses-21
Increase in repair expenses-3
Increase in commission fees
-1
Decrease in insurance expenses +1
Decrease in asset managementfees+44
Increase in other expenses-9【Ordinary income】
Increase in interest expenses
Increase in borrowing
related expenses
Others-8-12-2Growth Strategies

8Strategic Roadmap
Aim to maximize unitholder value and long-term solid management by implementing steady measures
ActualFuture8th FP(Jul. 2022)

9th FP（2023年2月期/7か月決算）(Feb. 2023 / 7 months)

10th FP(Aug. 2023)

11th FP (Feb. 2024) and future

DPU(Including SCD)

Steady DPU
growthExternal
growthPortfolio forstablemid/longterm
management

Internal
growthPursueTenantstickiness /NOI
improvement

Financialstrategies

Change Distribution Policy (from 7th FP) FFO 70% → SCD 30% of depreciationSoundfinancialmanagement
for stablelong-term
operations

Change of the Upper Limit rate of Management Fee
Forecast
3,239 yen Reference(7 months) 2,723 yen(6 months)

Actual
2,715 yen

Forecast
2,725 yen

4-5% DPU growth throughexternal, internal growthand various measures

Inclusion in FTSE/EPRA Nareit Global Real Estate Index / Disclosure of Annual Report

Current Target:

CRE strategy (3rd-party Properties, Land) / Warehousing by Sponsors & Bridge scheme / M&A works

12 properties
111.4 bn yen

Continuous EPU(DPU) growth byexternal/ internal
growth with
LTV control

・Aiming inclusion in major indices such as MSCI
Flexibly Funding while observing
・Consider acquiring properties using loans
COVID-19 impact / market environment

200 bn yen
Liquidity
improvement(steady growth)

Collaborate with ITOCHU in renewal and retenant aiming longer term & rent increase
Promote renewing contract

Redevelopment study ofolder properties

Maintain high occupancy rates

Install LED lights / Roof rental for solar panels, improvement of tenant satisfaction, reduction in insurance expenses

Long term issuer Rating (JCR) AANew Green Bond
41.1%

Continuous work on
rent/NOI increase andcost reduction

Continuous dialogue with rating agencies aiming further improvement
New Green loans/Refinance 5.0 bn yen

Forecast
41.0%

Consider Commitment line introduction
Forecast
41.3%(Total asset)
LTV

Strengthen lender formation

LTV below 45% for a period

Mid/long-term limit:

50% LTV
Solid cash
management

Focus on external assessment, GRESB etc (DBJGB and BELS acquisition increase)

ESG

Establishment of a department dedicated to ESG at the Asset Management Company, Strengthen Internal System

Initiatives forsustainability

New Green bonds

Initiatives for Green loans / Green bonds
Increase of green lease with tenants (install LED light / reduce electricity cost at BTS facilities)

Introduced cumulative investment for directors/investment program for employees

Introduce investment program for directors

9Continuous
initiatives for ESG
with guide ofRatings

External Growth Strategies (1)Steady Expansion of Asset Size through Selective Investment in Quality Properties
Aim to acquire selective quality properties to maintain/improve profitability of portfolio at
appropriate level of NOI yield in the area.
Aiming to improve portfolio quality by tenants with stable cash flow and competitive location

Properties developed by Sponsor
Backed by sponsor support, continue to acquire properties at appropriate level of NOI yield in each area
Properties owned / developed by the ITOCHU Group: 7 properties with total floor area of about 253,864m 2
Preferential
negotiation rightTokyo
Bay areaCompleted

57,724m2

IMP Ichikawashiohama
Preferential
negotiation right

To be completed in Mar. 2023

Chubu
regionAbout
15,409m2

IMP Kasugai

Preferential
negotiation rightCompleted

Preferential
negotiation rightKanto
region15,572m2

IMP Atsugi 2
Preferential
negotiation right

To be completed in May 2023

To be completed in Sep. 2022

Kanto
regionAbout
11,055m2

IMP Kazo
Preferential
negotiation rightChubu
regionAbout
93,604m2

IMP Kuwana

To be completed in Sep. 2023

Preferential
negotiation right

To be completed in Feb. 2023

KansairegionAbout
42,582m2

IMP Minoh
Kanto
regionAbout
17,918m2

IMP Yoshikawa Minami*red frame is properties of which preferential
negotiation right is newly acquired in 8th FP.

Efforts to acquire Third-party Properties①Organizational Enhancement through Merger②Liquidation Needs of ITOCHU Group Enhancement of property information gathering capability through merger ofasset management companies Strengthen property acquisition team (increase personnel)

 Cross-functional interviews of other business divisions by a team ofexperts from ITOCHU Corporation/Construction and Real Estate divisions
 Regularly identify and follow up on real estate needs within the group

 Expanding information resources and continuously strengthening the network③Create Projects Utilizing Own Network④Bridge and Warehousing scheme Gather/analyze information on general companies‘ assets, financial conditions etc.
 Search for potential properties by utilizing the resources of the ITOCHU Groupand financial institutions, etc.
 Expansion of information resources through the capital and business alliance with
Nishimatsu Construction Co., Ltd, and ITOCHU Corporation in December 2021

 Promote prompt and flexible property acquisition strategy through a variety ofacquisition methods, utilizing the bridge funds and warehousing functions ofsponsors according to the capital market environment and timing of property
acquisitions

10

（Reference）Portfolio Map
Kansai

Kanto

Chubu

伊藤忠グループ開発物件（本投資法人パイプライン物件）
伊藤忠グループの過去
開発・取得実績物件（外部売却済）The "IMP" in the property name is an abbreviation for "i Missions Park," a logistics facility developed by the ITOCHU Group.

11Internal Growth Strategies /Long term Stable Cash Flow based on ITOCHU Corporation’s Leasing Capabilities
Securing long-term stable profitability by exclusive contracts of whole facility with quality
tenants on long-term basis, by timely capturing customers location strategy and facility
needs through ITOCHU Group’s network.
(As of Jul. 31, 2022)
Long-term lease contracts with quality reliable tenants

Implemented Measures for Revenue Increase
✓

✓
✓

✓
✓

Concluded contract with tenants expiring September 2022
Concluded contracts with tenants of IMP Atsugi
Extended contract period and increased rents without downtime and free rent

Tenant industry

Remaining lease term(based on annual rent)(based on annual rent)
7 years or more

Manufacturer 1.8 %Started negotiation with tenants expiring in September 2023
Negotiating with two tenants of IMP Moriya for contract renewal

Retail 5.5 %1 year or moreto less than 3 years

18.3%
3PL*

Cost Reduction
Reduce insurance expenses by reviewing umbrella liability
insuranceLess than 1 year

4.6 % 4.6%

E-commerce+ major 3PL

54.0 %

77.6%(End of the 7th FP)

E-commerce*

38.6 %
5 years or moreto less than 7 year

Effective utilization of only vacant floor
Utilize the only vacant office space at IMP Noda as an emergency
stockpile to provided to tenants in the event of a disaster58.1 %

Major 3PL*

(End of the 7th FP)

4.7 year

77.6 %

New Looptop Leasing
Solar roof lease at IMP Inzai 2 starts from February 2023

Average period
5.2 year

3 years or moreto less than
5 years

14.4%

39.0 %

Timing of Lease Expiration (based on annual rent)
Period of contract expires

60.0%

Re-contracted（As of Jul. 31, 2022）

New contracts concluded

50.0%

49.4%
40.0%

Maintain a stable cash flow
with an occupancy rate ofover 99.9% since IPO

30.0%(3.7％)

20.0%(0.9%)

10.0%

4.6%

9.3%

8.0%

11.3%

3.1%

1.0%

3.7%

5.0%

2.5%

2.1%

0.0%

Jul. Feb.
Feb. Aug.
Feb. Aug.
Feb. Aug.
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug.2月期
Feb. 8月期
Aug.
7月期
2月期 Aug.
8月期 Feb.
2月期 Aug.
8月期 2月期
8月期 2月期
8月期 2月期
8月期 2月期
2022年
2022

2023年
2023

2024年
2024

2025年
2025

2026年
2026

2027年
2027

2028年
2028

2029年
2029

2030年
2030

2031年
2031

2032年
2032

12

2033年
2033

2034年
2034

Financial Strategies /Establishment of strong Financial Base durable to long-term management
Issued 2nd Green Bond and executed refinancing of 5.0 billion yen
Continued stable financial management with no change in lender stanceConsidering capacities while promoting maturity extension and rates fix
Diversified Interest-bearing Debt

Financial Highlights

Sumitomo Mitsui Banking

Borrowing capacity（Total asset）LTV

Average time to maturity

4.0 years

三井住友銀行
Corporation

三井住友信託銀行
Sumitomo Mitsui Trust Bank, Ltd. 18.9%(with LTV at 45%)

41.1%

みずほ銀行
Mizuho Bank, Ltd.

8.1 BN Yen

Interestbearing debt

47.2

BN YenLong-term debt /Average debt cost

0.47%

Long-term issuer rating(JCR)

Fixed interest ratio

AA-（stable）

93.0%（annual basis）

Existing loans（MN Yen）(all loans are unsecured and non-guaranteed)
Investment corporation bonds

12,000

10,57010,000

Risk from changes in
the policy andfinancial environment
is limited as norefinancing for a while,

6,000
4,000

New loans（As of Aug. 31, 2022）

Green bonds

1,500

8,000

Green loans

5,500

5,000

5,020 5,000

Green bonds

4,000

3,500
2,650

2,500

2,000

1,500

2,000

Jul. Feb.
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb. 8月期
Aug. 2月期
Feb.
7月期
2月期 Aug.
8月期 2月期
2023

2024

2025

2026

2027

2028

✓ Feb. 2022

Issue 2nd Green Bond of ¥2bn
Prepay a part of Green loan

✓ Aug. 2022

Prepay a part and refinance ¥5bn
Steadily implement without changing
lender stance
Improve financial stability by extending
the maturity and fixing interest rates✓ Preparing to deal with new banks for next offerings

0

2022

17.2%
15.0%
みずほ信託銀行
Mizuho Trust & Banking Co., Ltd. 5.2%
日本政策投資銀行
Development Bank of Japan Inc.
3.0%
農林中央金庫The Norinchukin Bank
2.5%
福岡銀行
The Bank of Fukuoka
2.5%
新生銀行
Nippon Life Insurance Company
2.1%
日本生命保険Shinsei Bank, Ltd.
2.1%
投資法人債
Investment Corporation bonds
7.4%
三菱UFJ銀行
MUFG Bank, Ltd（As of Jul. 31, 2022）（As of Jul. 31, 2022）

Maturity Ladder

24.1%

2029

2030

13

2031

2032

✓ Continuously considering introduction ofCommitment Line aiming to spread maturity period
in the future

Features and Basic Strategies – Initiatives for ESG –Expressing Strong commitment to ESG with sponsor groups
Published first edition of ESG report of ADL
ITOCHU Group’s
Commitment
Sustainability at the

Sustainability Policyof the Asset Management Company

ITOCHU Group(concept diagram)

1. Legal compliance and the establishment of anorganizational structure
2. Efforts toward achievement of a decarbonized society
3. Resource conservation and waste reduction
4. Employee education
5. Collaboration with internal and external stakeholders
6. Transparent disclosure

The United
Nations Global
Compact

TCFD (Task Force on Climaterelated Financial Disclosures)

Initiatives in Construction
and Real Estate Sectors

Pursuing sustainability
as an organization in a systematic manner

As a business to deal in properties closely related to people’s lives in particular,
ITOCHU emphasizes security and safety of residents and users in promoting businessin order to protect people’s lives and social infrastructure from serious disasters
increasing in recent years＜ Examples ＞

Emergency Power
Generation Equipment
Enables operation continuity at
emergency by supplying power for acertain time. Built in IMP Atsugi 2

Emergency Supplies
Storehouse
Store water, food, portable toilets fortenants. Built in IMP Noda and IMP
Atsugi 2※IMP Atsugi2 is a property developed by sponsor
for which ADL holds preferential negotiation right.

14

Establishment of Materiality, Target and KPI –ESG initiatives
Identify materiality as a key sustainability issue. Set targets and KPIs toachieve medium- to long-term growth.
Category

Long-term Vision

Materiality

Management and reduction ofenergy and water consumption,
CO2 emissions, and waste
generation

Environment

SocialGovernance

Climate Change
Initiatives (Contributing
Acquisition of environmental andto the Realization ofenergy-saving certifications
Decarbonized Society)Targets・KPI
By FY2030 (compared to FY2020)
・Reduce energy consumption by 10% (basic unit)
・CO2 emissions (GHG)
SCOPE 1-3: 10% reduction (basic unit)
SCOPE 3: Identify corresponding categories, determine
scope, and calculate
・Water consumption: No increase per unit
・Waste: No increase per unit

Related SDG's

Specific Approach・Manage and disclose targets and results・Install LED lighting and energy-saving
equipment
・Promote introduction of renewable energy

By FY2030
Ratio of environmental and energy-saving certifications acquisition to be 90% or more(based on total floor area)

・Acquire Green Building Certification and BELS

Cooperation with Stakeholders toPromote Environment Friendly
Operations

・Conduct periodic training and monitoring of suppliers
・Conclusion of contracts with green lease clauses for new tenants
・Conducted periodic training for employees of asset management companies

・Conduct supplier awareness activities andmonitoring
・Conduct employee education on sustainability
improvement and reduce CO2 emission at
asset management company

Improving Tenant’s Satisfaction
through Engagement

・Conduct periodic tenant satisfaction surveys
・Install disaster prevention maps in all properties and expand emergency supplies
・Distributed Sustainability Guide to all tenants
・Conduct education on sustainability at all properties
・Conduct disaster drills and lifesaving drills
・Promote new amenity services

Contribution to Local Communities

・Promote agreements with municipalities for disasters
・Install AED equipment in multiple properties
・Promote installation of donation-type vending machines
・Support employees' volunteer activities / make donations to charitable organizations, etc.
・Consider holding events to promote local employment

・Provide shelter for residents and storage ofsupplies in the event of disasters incooperation with local governments

・Establish system to manage conflicts of interest of multiple funds.
・Implement honest and transparent information disclosure
・Pursuit unitholders' interests by management fee linked to investment performance・same as targets & KPI

Promoting Diversity and Talent
Development

・Average years of service: 5 years or more
・% of female employees: 30% or more
・% of female managers: over 15%
・Training programs & support acquire qualifications for employees.

・Fair employment selection/ equal opportunity
in employment
・Career development support
・Provide employees with skill developmenttraining and support for qualificationacquisition

Creating a rewarding work
environment

・Paid leave utilization rate: over 70%
・Zero turnover due to life events, childcare and nursing care.
・% of employees using child nursing care leave: 50% or more・Frequency of occupational accidents: Zero・Implementation of employee satisfaction survey

・Childcare & nursing care leave, volunteer
leave systems, hourly paid leave system, etc.
・Health management practices
・Conducting employee satisfaction

Creating a rewarding work
environment

・Improvement of governance structure
・Increase number of fund directors / female directors: 25% female directors
・Implement internal compliance training and achieved 100% participation rate
・Maintain / improve the effectiveness of the Board of Directors & Board of Corporate Officers.

Strengthening Resilience・Response to severe disasters (earthquakes, floods, etc.)
・Respond to TCFD (climate change risk/opportunity assessment)
・Conduct BCP training once a year

Climate Change
Initiatives (Contributing Pursuit of Unitholders’ Profit
to the Realization of through Customer-Oriented
Decarbonized Society) Business Conduct

Strengthening
Governance15

・Conduct periodic tenant satisfaction surveys
・Conclude contracts with green lease clauses
・Conduct educational activities onsustainability・Compliance committee and investmentcommittee
・Sustainability Promotion Committee
・Conflict of interest transaction rules
・Identify risks based on PML values, etc.
・Identify climate-related risks/
opportunities/strategies
・Strengthen disaster preparedness and BCP
systems

Initiatives for ESG (E) Environmental Initiatives (1)Steadily implementing various measures to contribute to climate change initiatives and therealization of a decarbonized society. Newly established a department specializing in ESG
and strengthened internal system
Awarded “Green Star” Status with “4-Star” Rating

Response to climate-related risk

Having been highly evaluated by GRESB for its proactive
implementation of environmental initiatives, ADL was awarded"Green Star“ status and granted “4-star” in the GRESB Rating, in
2021 which is a five level rating system (the highest level is “fivestar”)

・Joined the TCFD consortium
・Identify climate change risks /opportunities and Planning ofstrategies

2018(Listed in
September)

2019

2020

2021

★★★

★★★★

★★★★

3-star

4-star

4-starLong-term Targets for Decarbonized Society
Active Promotion of Measures to Improve Evaluation

Promote various measures with an awareness of longer-term initiatives
Item

Long-term target

Total energy consumption

Reduce 10% (per unit) by FY2030 (compared to FY2020)

Total CO₂ emissions

Reduce 10% (per unit) by FY2030 (compared to FY2020)

Total water consumption

No increase (per unit) by FY2030 (compared to FY2020)

Total waste generation

No increase (per unit) by FY2030 (compared to FY2020)

Install rainwater storage tanks to reuserainwater for watering plants andexterior watering

Continuous Acquisition of Environmental Data
Achieved high environmental data acquisition coverage rate and promote
environmental measures with the cooperation of tenant companies

Install sub-meters on automatic sprinklers
and monitor water consumption in moredetail to save water

Initiatives to Green Financing•

Had the framework evaluated by a third-party institution, JCR, and received
the highest “Green 1 (F)” status in the “JCR Green Finance Framework
Evaluation”

100%

•

Issuance of the second green bonds in February 2022.

95%

96%

•

Refinancing with a 5.0 billion yen green loan in August 2022

89%

100%

Categories

FY2018FY2019FY2020

FY2021

Energy consumption

100%

100%

100%

100%

CO2 emissions

100%

100%

100%

Water consumption

92%

95%

Waste amount

44%

80%

16

Initiatives for ESG (E) Environmental Initiatives (2)Active Acquisition of Environmental Certification••

Energy Consumption Reduction and Resource Saving➢ Active Introduction of CO2-free electricity

Set a target to maintain at 90% of properties with certificates of Greenbuilding.
Remain committed to acquisitions of certificates.

・Solar panel at IMP Ichikawashiohama※ isprovided by VPP Japan an investee of
ITOCHU. Entire facility uses CO2-freeelectricity.
・Expand use of CO2-free electricity
provided by ITOCHU mainly in future
development properties.
IMP Ichikawashiohama➢ Renewable Diesel Proposal
Property

Total floor area(㎡)

DBJ assessment(★~★★★★★)

BELS assessment(★~★★★★★)IMP Atsugi

19,297.60 Under consideration Under consideration

IMP Kashiwa

31,976.44

★★★

2021

Under consideration

IMP Noda

62,750.90

★★★

2021

Under consideration

IMP Moriya

18,680.16

★★★★

2021

★★★★★

2019

IMP Misato

22,506.53

★★★★

2021

★★★★

2019

IMP Chiba-Kita

9,841.24 Under consideration

★★★★★

2019

★★★★★

2019

110,022.51★★★★

IMP Moriya 2

6,779.95-

IMP Kashiwa 2

117,435.21

★★★★

2020

★★★★★

2020

IMP Inzai 2

26,938.75

★★★★

2021

★★★★★

2021

IMP Tokyo-Adachi

27,872.43

★★★★

2021

★★★★★

2021

IMP Miyoshi

10,300.66

★★★★

2021

★★★★★

2021

IMP Inzai

Total

464,402.38

Percentage of properties certified

2021<Water consumption reduction> <CO2 emissions reduction> <Energy consumption reduction>-

428,483.59

343,597.49

92.3%

74.0%

※ IMP Ichikawashiohama is a property

developed by sponsor for which ADL holds
Introducing renewable fuel that ITOCHU andpreferential negotiation right.
ITOCHU ENEX Co., Ltd. provide to tenantcompanies as an alternative to conventional diesel
fuel. ITOCHU Group will work to reduce CO2
emissions in the logistics business.

17

Installing water-saving
toilet system

Promoting CO2 emissions
reduction in cooperation among
tenants based on applicable law<Green lease agreements><Greening><Renewable energy generation>

Installing LED based on
green leaseagreements

Greening parking lots

Solar panels

LED lighting

Initiatives for ESG (S) Social Contribution
Logistics Continuity at Emergencies

Coexistence with Local Communities
Signed an Agreement with Noda City to provided IMP Noda
in the event of a disaster

Emergency Supplies
Storehouse

Store water, food, portable toilets for tenants.
Built in IMP Noda (Non-occupied office area)
and IMP Atsugi 2・Signed "Agreement on
Acceptance of Evacuees andRelief Supplies in the Event ofDisaster" with Noda City,
Chiba Prefecture in May 2022

Emergency Power
Generation Equipment

Enables operation continuity at emergency
by supplying power for a certain time.
Built in IMP Atsugi 2※IMP Atsugi 2 is a property developed by sponsor
for which ADL holds preferential negotiation right.

・ Provide IMP Noda as astorage and management
facility for relief supplies and atemporary evacuation site fordisaster victims in the event of
a disaster

ESG Initiatives with Suppliers••

Distribute sustainability guidebooks to major business partners, including
property management companies.
Conduct annual survey to business partners on their sustainability-related
initiatives

Support for education

Helping people with disabilities

Cooperation with Tenant Companies
Tenant satisfaction survey•••

Implemented since 2020. In addition to facility, management questions are newly added.
FY2021 survey was conducted by an outside research organization to gather more fairand straight-forward opinions.
Understand tenants use of current facilities and utilize it for our operation and facility
improvement

Ensuring employee safety
An individual specification was adopted
whereby employees are able to enter thebuilding via elevator access to the second floor
directly from the parking lot. This ensuressafety by creating separate lines of movement
for pedestrians and trucks

Statement of ESG-related clauses in lease agreement (Green lease clause)••

Revision of lease agreement format
Enhancement of the system to pursue ESG initiatives in cooperation with tenants,
such as management and sharing of environmental performance data.
18

The ITOCHUFoundation
Participate in donation campaigns by
ITOCHU Foundation which aims forfostering the healthy development ofchildren

Cleanup Activities

ITOCHU
Uneedus
Utilize the company as a place where
people with handicap such as
disabilities can work

■Participation in blood donation
Asset Management Company’s employees
actively participate in the blood donation event
at ITOCHU Headquarters■ Ecocap Campaign
Collecting plastic bottle caps and donating themto "Vaccines for the World’s Children”■Donate unused stationery to NGOs
Supporting the activities of NPOs and other organizations
through unused stationery

Initiatives for ESG (G) GovernanceManagement Fees

ITOCHU Corporation's same-boat investment

・Fee structure that is linked to unitholders' profit
・Review the current management fee structure to enhanceunitholder value linked with strengthened revenue basethrough asset size expansion and by rationalization effectof account closing operations, etc, reducing total fee bynearly 10% (from 9th FP)

ITOCHU Corporation continues “same-boat investment”
since IPO of ADL

Management Total assets × 0.1% (upper limit)
fee I⇒(From 9th FP) 0.05% (upper limit)
Management
NOI of rental business × 5.0% (upper limit)
fee IIManagement Income before income taxes ×Adjusted EPU × 0.005% (upper limit)
fee III⇒(From 9th FP) 0.004% (upper limit)
Asset
acquisition
feeInterested parties ： Acquisition price×0.5% (upper limit)
Others： Acquisition price×1.0% (upper limit)

Asset
disposition
fee

Disposition price ×0.5% (upper limit)(0% when loss on asset disposition incurred)

M&A feeAppraisal Value of succeeded assets×1.0% (upper limit)

Acquiredadditional units
in the market

After 2nd PO

Current

5.0%

7.0%

5.6%

5.6%

(as of IPO)

(as of the endof Jul. 2019)(as of the endof Jan. 2021)(as of the endof Jul. 2022)

Align interests with unitholders
・Cumulative unit investment program is introduced to full time directors of AssetManagement Company
・Investment unit ownership program has been introduced to non director employee

Facilitate the alignment of interests of unitholders with directors
and employees of Asset Management Company

Expansion of compliance rules• Analyzing the gap with FSA guidelines, and formulating
regulations and manuals, etc to cope with global money
laundering and terrorist financing measures (company-wide
control / business process control) required by the FSA etc.
• In-house training on money laundering and terrorist financing
measures has been completed. Aim for further understanding
and penetration within the company

Publication of ESG Report・ Issue ESG report to further broaden anddeepen understanding of our initiatives
among unitholders and other stakeholders

19

Portfolio

20

Portfolio Characteristics
Further improves the stability of Portfolio through selective investment,
tenant stickiness, and strong sponsor support
Strong Sponsor Support
Realty & Logistics
platform

Competitive Property

Group-wide
Merchant Channel

Competitive
Location(As of Jul. 31, 2022)

Quality Contract

Young Property

Long term

Quality Tenant

Properties developed by sponsor

Location

Remaining lease term(based on acquisition price)(based on acquisition price)(based on annual rent)

Others0.7 %Ken-O EXPWY

4.8 %7 years or more

4.6 % Less than 1 year 4.6 %Around Tokyo
Gaikan EXPWY

15.3 %
99.3 %(End of the 7th FP)

99.3 %

1 year or moreto less than 3 years

National
Route 16 and Tokyo
Gaikan EXPWY

Average period

95.2%( En d o f t h e 7 t h F P)

4.7 年

95.2 %

99.3 %
ITOCHU Group andGroup customer tenant(based on annual rent)

Around National
Route 16

5 years or moreto less than 7 years

80.0 %

58.1 %

Property age(based on annual rent)More than 1 year
to 3 years or less10.9 %

Retail 5.5 %Manufacturer 1.8 %2.1 %30.1 %

E-commerce*

More than 5 years
to 7 years or less19.7 %

69.9 %(End of the 7th FP)

Average

3PL*

4.6year54.0 %

ITOCHU Groupcustomers

5.1 year63.7 %

E-commerce+ major 3PL

38.6 %

77.6%(End of the 7th FP)(End of the 7th FP)

69.9%

14.4 %

Tenant industry(based on acquisition price)
More than 7 years

Others

6.2 %3 years or moreto less than
5 years(End of the 7th FP)

Developed by sponsor

ITOCHUGroup

18.3 %

5.2yearMore than 3 years
to 5 years or less67.3 %

77.6 %
Major 3PL*

39.0 %
21

Market Overview

22Market Overview (1) Supply / Demand Balance of Logistics Facilities
While demand remains strong in the COVID-19, vacancy rates are on a gradual upward trend
due to an increase in supply■While supply and demand remains strong in the Kanto area, further increase of supply is expected to raise
vacancy rate in the future.
Vacancy Rate and Supply and Demand Balance in Kanto Area
(Thousands of m2)(%)
15

Estimate

4,000

Vacancy rate
3,000

10

3.1%
(as of Jul 2022)

2,000
5
1,000

2.5%
(as of Jan 2022)

0
2009

2010

2011

2012

2013

2014

2015

New supply (left axis)
新規供給(左軸)

2016

2017

2018

New demand (left axis)
新規需要(左軸)

2019

2020

2021

2022

0
2023 (year)

Vacancy rate (right axis)
空室率(右軸)■Supply-demand balance in the Kansai area shifted from tight to balanced, the vacancy rate increased three consecutive quarters.
Vacancy Rate and Supply and Demand Balance in Kansai Area
(Thousands of m2)

Estimate

1,500

(%)
15

Vacancy rate
1,000

10

2.2%
(as of Jul 2022)

500

5

1.5%
(as of Jan 2022)
0
2009

2010

2011

2012

2013

2014

2015

New
supply (left axis)
新規供給(左軸)
Source: K.K. Ichigo Real Estate Service※Vacancy Rate for 2022 is as of July end, for other years, as of October end each ear.

2016

2017

New
demand (left axis)
新規需要(左軸)

23

2018

2019

2020

2021

Vacancy rate (right axis)
空室率(右軸)2022

02023 (year)

Market Overview (2) E-commerce・3PL market trend
Expansion of e-commerce and 3PL markets boosts logistics real estate market■COVID-19 accelerated spread of e-commerce which is expected to grow further going forward
E-commerce Market size (Merchandise sector)

Forecast of E-commerce Market (Merchandise &Services)(TN Yen)
16

12

(%)
10

(TN Yen)30

825

Forecast

20

6
8

15
4

4

10

2

0

5

0
2013

2014

2015
2016
2017
Eコマース売上高（物販系）
Sales

2018
2019
2020
E-commerce ratio
EC化率

0
2014

2021
(year)

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Sales
売上高

2025

(year)

Source: Compiled by our company based on data from the 2021 "Market Survey on Electronic Commerce" (Ministry of
Economy, Trade and Industry) and "IT Navigator 2021" by Nomura Research Institute, Ltd.

Source: Outline of the E-Commerce Market Survey (Ministry of Economy, Trade and Industry)■3PL expansion boosts advanced facilities demand ■Older/conventional shift to advanced logistics facilities
Changes of the 3PL Market in Japan(100 MN Yen)

Ratio of Advanced Logistics Facilities(%)

Advanced
Logistics Facilities

25

30,0007.0%

20

38 MN ㎡

Large/Middle
Logistics Facilities

15

20,000

10

Other Logistics
Facilities

5308 MN ㎡

10,0000

36.5%
199 MN ㎡

56.5%

02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(FY)
Year-on-Year
3PL
Market Size
3PL市場規模
前年比
Source: LOGI-BIZ (Rhinos Publications, Inc.)

Source: Compiled by K.K. Ichigo Real Estate Service based on Statistics on Building Starts(Ministry of Land, Infrastructure, Transport and Tourism)
and Summary Report on Prices of Fixed Assets (Ministry of Internal Affairs and Communications)24Appendix

25

Implemented Initiatives and Unit Price Trend(yen)

200,000

本投資法人（左軸）
Unit price of ADL (left axis)

Launched the
1st follow-on offering
at a premium to NAV

Launched the
2nd follow-on offering(second time in 2020)(units)

30,000

物流特化型REIT（左軸）
J-REITs specializing in logistics facilities
180,000(left axis)

25,000109東証REIT指数（左軸）TSE REIT Index (left axis)
160,000

20,000140,000
7

120,000

8
The end of the 5th FP (Jan. 2021)
NAV per unit：126,473 yenPrice / NAV:1.03x

65
3100,000
1

80,000The end of the 3rd FP (Jan. 2020)
NAV per unit:116,026 yen
Price / NAV:1.09x

The end of the 1st FP (Jan. 2019)
NAV per unit:109,848 yen
Price / NAV：0.80x

The end of the 8th FP (Jul. 2022)
NAV per unit：143,911 yen
Price / NAV:1.06x

The end of the 7th FP (Jan. 2022)
NAV per unit：137,944 yen
Price / NAV:1.13x

The end of the 4th FP (Jul. 2020)
NAV per unit:118,511 yen
Price / NAV:1.36x

The end of the 2nd FP (Jul. 2019)
NAV per unit:113,026 yen
Price / NAV:0.91x

10,000The end of the 6th FP (Jul. 2021)
NAV per unit：132,085 yen
Price / NAV:1.21x

4

2

15,0005,000

Volume of ADL (light axis)

60,0002018/91

0
2018/12

2
Announced
acquisition of
two new
properties(March 14, 2019)2019/3

2019/63
Acquiredcredit rating(March 15, 2019)

Announced
secondary
additional acquisitionof investment units by
ITOCHU corporation(March 26, 2019)2019/92019/124

2020/32020/6

5
Analystcoveragestarted(June 14, 2019)2020/92020/12

6

Awarded the“Green Star”(with GRESB rating
being “three stars”)(September 10, 2019)2021/32021/6

7

Issued green
bonds(December 12,
2019)8
Announced
inclusion in
MSCI Japan
Small Cap Index(May 12, 2020)2021/92021/12JCR changed
the outlook of
ADL’s long-term
issuer rating
to A+(positive)
from A+(stable)(February 1, 2021)※

2022/32022/610

9Inclusion in
FTSE EPRA
Nareit Global
Real Estate Index(December 1, 2021)

JCR changed
the outlook of ADL’s
long-term issuer
ratingto AA-(stable)from A+(positive)(December 27, 2021)

Changes in TSE REIT Index and J-REITs specializing in logistics facilities are indexed based on ADL’s initial public offering price, 103,000 yen, with ADL’s listing day as the start date. J-REITs
specializing in logistics facilities are weighted for market capitalization.

26

Income Statement and Balance Sheet
8th Fiscal Period (Jul. 2022)
Income Statement
Operating revenues
Rental revenues
Other rental revenues
Total operating revenue
Operating expenses
Property related expenses
Asset management fees
Asset custody fees / Administrative service
fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distributions payable
Interest on refund
Subsidy income
Total non-operating income
Non-operating expenses
Interest expenses on loans payable
Interest expenses on investment
corporation bonds
Amortization of investment corporationbond issuance costs
Borrowing related expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Accumulated earnings brought forward
Unappropriated retained earnings(undisposed loss)(Thousands of Yen)
8th Fiscal Period
From February 1, 2022
to July 31, 2022

3,142,694
39,581
3,182,276
1,203,747
385,224
14,0052,640
51,5181,657,135
1,525,140
33
1,068
356
1,458
103,772
6,461
2,127
22,542991
135,896
1,390,703
1,390,703
864
-4
859
1,389,843
231
1,390,075

Balance Sheet(Thousands of Yen)
8th Fiscal Period
As of July 31, 2022

(Thousands of Yen)
8th Fiscal Period
As of July 31, 2022

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipmentin trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
SoftwareTrademark Rights
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax asset
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

27

3,181,102
4,137,678
36,541
60,521
7,415,844

60,379,592(4,404,509)
55,975,082
2,214,959(368,403)
1,846,556
1,667,291(202,609)
1,464,681
4,896(1,360)3,535
48,131,041
107,420,897
1,433
495
1,928
10,000172,82112
182,833
107,605,660
22,134
22,134
115,043,638

Liabilities
Current Liabilities
Accounts payable
Short-term loans payable
Accounts payable-otherAccrued expenses
Current portion of long-term loans payable
Income taxes payable
Consumption taxes payable
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment Corporation Bonds
Long-term loans payable
Tenant leasehold and security deposits in trust

35,3783,290,000
473,845
1,750,000
859
85,376
579,022
4,383
6,218,865

3,500,000
38,740,000
1,674,255

Other
Total noncurrent liabilities
Total liabilities

144
43,914,400
50,133,265

Net assets
Unitholders' equity
Unitholders' capital

64,647,572

Deductions from unitholder’s capital
Unitholders’ capital, net
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets(1,127,274)
63,520,297
1,390,075
1,390,075
64,910,372
64,910,372
115,043,638

About the Investment Corporation and the Asset Management Company
Structure
Master Lease andProperty Management Company

Investment Corporation

Custodian / General Administrative Agent

Advance Logistics Investment Corporation(for institutional administration / calculation / accounting)General Unitholders Meeting

Sumitomo Mitsui Trust Bank, Limited

Board of Directors

General Administrative Agent(for tax payment)

ITOCHU Urban Community Ltd.
Executive Director: Junichi Shoji
Supervisory Director: Soichi Toyama
Supervisory Director: Tsuyoshi Dai

Deloitte Tohmatsu Tax Co.

Transfer Agent

Sponsors①

ITOCHU Corporation
ITOCHU Property Development, Ltd.

Mizuho Trust & Banking Co., Ltd.

Accounting Auditor②① Sponsor Support Agreement / Leasing Management
Agreement② Sponsor Support Agreement

PricewaterhouseCoopers Arata LLC

General Administrative Agent(for Investment Corporation Bonds)

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Asset Management Company

ITOCHU REIT Management Co., Ltd.

Overview of the Asset Management Company
Company name
Established
CapitalShareholders

Main business

Licenses andregistrations

As of Jul. 31, 2022

General Shareholders’ Meeting

ITOCHU REIT Management Co., Ltd.
February 2, 2005

Statutory Corporate Auditor※AD Investment Management Co., Ltd. changed its trade name dueto the merger in June 2022.

300 million yen
ITOCHU Corporation
80%
ITOCHU Property Development, Ltd. 20%
Investment management
Financial Instruments Business Registration: Director of Kanto
Local Finance Bureau (Kinsho) No. 309
Building Lots and Building Transactions Business License,
Governor of Tokyo (4) No. 84325
Discretionary Transaction Agent License, Minister of Land,
Infrastructure, Transport and Tourism, Registration No. 37
First-class Registered Architect Office: Registered with theGovernor of Tokyo, No. 58856

Board of Directors
Compliance Committee
Compliance Officer

Representative Director andPresident

Compliance and Risk Management
Department

General Affairs andManagement Division

28

Finance andAccounting
Division

Investment Committee

Internal Auditor

Engineering
Division

Residence
Division

Logistics
Division

Private Capital
Division

Portfolio Information
Continue to build a long-term stable portfolio
Category

PropertyNo.

L-1

Acquired
Properties

Property name

IMP Atsugi

LocationBook value
Acquisition at the end
priceof(MN Yen) the period(MN Yen)（As of Jul 31, 2022)

Appraisalvalue(MN Yen)

Unrealizedgains(MN Yen)

6,480

1,355

Appraisal
NOI yield(%)

Direct cap
Rate
(%)

Total floor
area
(m2)

Propertyage(years)OccupancyRate(%)

A: 3,909.97

Atsugi City,
Kanagawa

5,300

5,124

5.0

4.0

PML
(%)

9.9

100.0

A: 8.9B: 8.2

B: 15,387.63

L-2

IMP Kashiwa

Kashiwa City, Chiba

6,140

5,831

7,320

1,488

5.1

4.2

31,976.44

7.4

100.0

5.4

L-3

IMP Noda

Noda City, Chiba

12,60011,954

15,100

3,145

4.9

4.0

62,750.90

6.5

99.5

1.8

L-4

IMP Moriya

Tsukuba Mirai City,
Ibaraki

3,200

2,995

3,840

844

5.3

4.3

18,680.16

5.3

100.0

5.4

L-5

IMP Misato

Misato City, Saitama

6,100

5,838

7,460

1,621

5.0

4.0

22,506.53

5.0

100.0

4.4

L-6

IMP Chiba-Kita

Chiba City, Chiba

2,600

2,498

3,110

611

5.3

4.3

9,841.24

4.7

100.0

4.9

L-7

IMP Inzai

Inzai City, Chiba

27,81026,26832,600

6,331

5.1

4.2

110,022.51

4.4

100.0

1.5

L-8

IMP Moriya 2

Tsukuba Mirai City,
Ibaraki

750

736

935

198

6.7

4.5

6,779.95

27.6

100.0

7.3

L-9

IMP Kashiwa 2

Kashiwa City, Chiba

28,32027,66333,000

5,336

4.7

3.9

117,435.21

4.0

100.0

2.9

L-10

IMP Inzai 2

Inzai City, Chiba

5,367

5,289

6,090

800

5.0

4.3

26,938.75

3.4

100.0

2.7

L-11

IMP Tokyo-Adachi

Adachi ward, Tokyo

10,915

10,91011,900

989

4.2

3.8

27,872.43

4.2

100.0

5.0

L-12

IMP Miyoshi

Miyoshi Town,
Iruma County,
Saitama

2,320

2,309

2,670

360

5.0

4.2

10,300.66

2.9

100.0

5.6

111,422

107,420

130,505

23,0844.9

4.1

464,402.38

5.1

99.9

2.6

Total / Average (8th fiscal period (Jul. 2022))29

Revenue and Expenditure for Each Properties
8th Fiscal Period (Jul. 2022)(Thousands of Yen)
Property No.

L-1

L-2

L-3

L-4

L-5

L-6

L-7

L-8

L-9

L-10

L-11

L-12

Property nameIMP
AtsugiIMP
Kashiwa

IMP
Noda

IMP
MoriyaIMP
MisatoIMP
Chiba-Kita

IMP
Inzai

IMP
Moriya 2

IMP
Kashiwa 2

IMPInzai 2

IMP
TokyoAdachi

IMP
Miyoshi

Total

Number of operating daysin the 8th fiscal period

181days181days181days181days181days181days181days181days181days181days181days181days-(A) Total revenues
from property leasing

413,933

3,182,276

Rental revenues

395,399

3,142,694

Other rental revenues

18,534

39,581(B) Total property-related
expenses

177,973

1,203,747

Taxes and public dues
Property management
fees

303,961

39,758--20,472

-

-

-

-

-

-

-

-

-

48,315

Utility expenses

17,20835,292

Repair expenses

678

4,740

Insurance expenses

1,252

9,032

Trust fees

250

2,750

Others8270

Depreciation

27,95045,461

98,34429,85039,064

16,554249,282

7,918

202,794

32,50736,03913,615

799,384(C) Income from property
leasing (=(A) - (B))

104,744

106,326

235,960

64,580113,782

52,472

462,413

19,259478,265

104,022

193,124

43,577

1,978,528(D) NOI (= (C) + depreciation)

132,694

151,787

334,304

94,431

152,847

69,027

711,695

27,177

681,060

136,530

229,164

57,192

2,777,912※

For properties other than IMP Noda, items other than depreciation, leasing business gains and losses, and leasing business NOI are undisclosed as ADL was not able to obtain the tenant’s consent.

30

Status of Unitholders
8th Fiscal Period (Jul. 2022)
Number of unitholders and units by type of unitholders

Individuals and others

Unit holders

Ratio

Investment
units (unit)

Ratio

11,576

95.7%

71,132

11.9%

Financial institutions(including securities
companies)

146

Other domestic
entities

207

1.7%

45,903

7.6%

Foreign entities

166

1.4%

101,457

16.9%

Total

12,0951.2%

100.0%Breakdown by number of unitholders
Foreign entities
1.4%
Other domestic
Entities
1.7%
Financial
institutions
1.2%

600,127

Name

63.6%

100.0%

Individuals andothersNo. ofunits held

Percentage
of units
issued andoutstanding

1

Custody Bank of Japan, Ltd. (Trust Account)

127,69421.27%

2

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

83,70913.94%

3

ITOCHU Corporation

33,635

5.60%

4The Nomura Trust and Banking Co., Ltd.
(Investment Trust)

25,282

4.21%

5

The Shinkumi Federation Bank

12,999

2.16%

6

The Hachijuni Bank, Ltd.

10,568

1.76%

7

AICHI BANK, LTD.

9,480

1.57%

8

JP MORGAN CHASE BANK 385771

9,123

1.52%

9

STATE STREET BANK WEST CLIENT- TREATY 505234

8,043

1.34%

10

SSBTC CLIENT OMNIBUS ACCOUNT

7,199

1.19%

Total (Top 10 unitholders)

327,732

54.61%Breakdown by number of units
Foreign entities
16.9%

Individuals
and others
95.7%

381,635

Major unitholders (Top 10 unitholders)

11.9%

Other domestic
Entities
7.6%
Financial
institutions
63.6%

※

31

Percentages are rounded down to the second decimal place.

Basic Strategies – Collaborative Growth Relationships (1) –Build growth spiral based on Collaborative Growth Relationships with ITOCHU GroupBy taking advantage of extensive experience of development & acquisition of logistics facilities andwide network of 100,000 clients of sponsor group.

ITOCHU Corporation/ITOCHU Property Development

Advance Logistics Investment Corporation
Ownership / Management

Development / Leasing

Collaborative
GrowthRelationships

ADL’s growth utilizing the ITOCHU
Group’s business platforms

ADL’s Portfolio

ITOCHU Group’s business platforms
strengthened through ADL

Sponsor’s owned/developed properties

7 Properties/ about 253,864m2

12 Properties / 111.4 bn yen

Continued growth supported by ITOCHU Group’s business platforms
Focus mainly on acquisition of sponsor pipelines to grow
Aiming forcontinuous
growthutilizingsponsor’s
pipeline

2nd Follow on
Offering
Acquisition during the periodusing borrowings
53.8 bn yen
7 Properties

58.8 bn yen
8 Properties

58.8 bn yen
8 Properties

1st FP

2nd FP

3rd FP

1st Follow on
Offering

84.1 bn yen
9 Properties

4th FP

98.1 bn yen
10 Properties

5th FP

32

111.4 bn yen
12 Properties

111.4 bn yen
12 Properties

111.4 bn yen
12 Properties

6th FP

7th FP

8th FP

FutureBasic Strategies – Collaborative Growth Relationships (2) –Two business platforms that provide the foundation for the Collaborative Growth Relationships
Realty and Logistics (R/L) Platform

Group-wide Merchant Channel (M/C) Platform
1 Extensive customer network covering 100,000 companies
2 A wide business domain covering upstream to downstream

1 Strength in land purchase, facility development and leasing

experience since FY2004
2 Experience as a logistics operator
3 Utilization of expertise gained in J-REIT management

merchant channels
3 Strong presence in consumer-related businesses

Real Estate & Logistics function of General Products & Realty Company of
ITOCHU Corporation, which has integrated responsibility for 1 , 2 and 3

General trading company that has transactional relationships at
the management level encompassing 1 , 2 and 3

Land purchases, facility

Merchant channels

1 development and leasing
Utilizing the
viewpoint of alogistics operator,
leveraging the
network ofcustomers

ITOCHU Corporation

Structure for land purchases,
facility development and leasingfrom two closely connectedsponsors

2 Logistics operation

ITOCHU Corporation

ITOCHU Property
Development, Ltd.

Developing facilities
suitable for longterm asset andproperty
management

Logistics
Supplier

ITOCHU REITManagement Co., Ltd.

Metals &MineralsCompany

ITOCHU Urban
Community Ltd.

GeneralProducts& Realty
Company

Food
Company

Energy &Chemicals
Company

TextileCompany

Utilization of asset and property
management expertise of Advance
Residence Investment Corporation

Leveraging theirexpertise as a logistics
operator

Logistics
RetailerGroup Strength of ITOCHU Corporation

3 Asset and property management

ITOCHU LOGISTICS CORP.

Logistics
Manufacturer

The ITOCHU Group
Machinery
Company

Providing logistics
solutions

The 8thCompany33

ICT &FinancialBusiness
Company

ConsumerCase works – Collaborative Growth Relationships (3) –Deal Sourcing and value added works utilizing wide network and group power of Sogo shosha
Deal Sourcing from ITOCHU Group Network
Preferential
negotiation right

IMP Mino

Value Added by ITOCHU Group business◼ Acquired land information from a major
constructor by ITOCHU’s high reputationof past project in the same area.

◼ Currently developing a logistic facility
exclusively for a major home center
operator, Cainz Corporation.

Preferential
negotiation right◼ Acquired land through smoothnegotiation with landowner, Mizuma
Kyuhai, who was a client of an ITOCHU
Group company.

◼ Aiming to provide wide function andsynergies as Sogo shosha by offering
products/materials or logistics services
in addition to development of facilities.

IMP Kuwana◼ Creating CO2-free clean energy byinstalling solar panels provided by VPP
Japan, Inc., an investee of ITOCHU, on
the roof of the facility

Preferential
negotiation rightPreferential
negotiation right

IMP Atsugi2◼ The property is located in the area where
Fujita Corporation, a major constructor
carry redevelopment.
◼ Acquired land from Fujita Corporation,
who had strong relationship with ITOCHU
Corporation built through past joint
development projects.

◼ VPP Japan is also working to clean
IMP Ichikawashiohama

logistics mobility, such as supplying
electric power to EV trucks using solar
power.

Future-oriented Business of ITOCHU

Preferential
negotiation right◼ Acquired land through strong regional
relationship build by Chubu branch of
ITOCHU Corporation.
◼ ITOCHU and Mercuria Investment Co., Ltd. formed a fund "Mercuria
Biztech" to invest in the innovation field in the real estate and logistics fields.
◼ Aiming to provide tenants with solutions by offering advanced and laborsaving services in logistics or logistics facilities born from this fund.

IMP Kasugai

34

Notes to the Statement＊Unless otherwise noted, figures expressed in whole numbers are rounded down to the nearest unit, and figures expressed in decimal
numbers are rounded off to the nearest digit.
＊The "IMP" in the property name is an abbreviation for "i Missions Park," a logistics facility developed by the ITOCHU Group.
＊P24
Calculated as below, as of December 2021
・Logistics facility: All logistics facility in Japan (incl. lease, non-lease)・Large/Middle: Amongst above, gross floor area from 5,000 ㎡ and less 10,000 ㎡
・Advanced: Amongst above, gross floor area 10,000 ㎡ or more, younger than 20yeras, lease only
＊Unless otherwise noted, other words assume the following【3PL】 “3PL” stands for "Third Party Logistics," a form of logistics in which a third party, an external specialist, proposes comprehensive logistics
reforms to the shipper, from ordering and receiving of goods and inventory management to computerization, and undertakes logistics
operations on a collective basis.
【Major 3PL】 “Major 3PLs” refers to 3PLs with consolidated group sales exceeding 100 billion yen.
【E-commerce】 “EC “stands for Electric Commerce and refers to electronic commerce (e.g., online shopping).
【NAV】 “NAV” stands for net asset value. It is calculated as (Appraisal value - Book value of assets held + Net asset value on the balance sheet- Distributions for the each period).

【NAV per unit】 “NAV per unit” is NAV divided by the total number of investment units.
【Price/NAV】 “Price /NAV” is the unit price divided by the NAV per unit.
【Premium to NAV】 ”Premium on NAV” is a situation in which the NAV multiple exceeds 1.0x. (Conversely, a situation below 1.0x is called【Discount to NAV】.)【FFO】 “FFO” is calculated as (net income (excluding gain or loss on the sale of real estate) + depreciation costs + profit and loss carried forwardfrom the previous period).

【AFFO】 AFFO is calculated as (FFO - capital expenditure).
【FFO (AFFO) payout ratio】 ” FFO (AFFO) payout ratio” is calculated as ((total distributions + total surplus cash distributions) ÷ FFO (AFFO))【Occupancy rate】 “Occupancy rate” indicates the ratio of leased area to leasable area
【PML】 “PML” stands for “Probable Maximum Loss”, the expected maximum loss ratio, and the figures are shown in the earthquake risk
assessment report provided by the survey vendor.

35

Disclaimer

This material is for informational purpose only, and is not intended to solicit, or recommend the purchase or sale of specificsecurities, financial instruments, or transactions.

This document is not a disclosure document based on the Financial Instruments and Exchange Act, the Act on Investment Trusts
and Investment Corporations, or the listing rules of the Tokyo Stock Exchange.
This document contains information on Advanced Logistics Investment Corporation (hereinafter referred to as "the Investment
Corporation".), as well as tables and data prepared by ITOCHU REIT MANAGEMENT CORPORATION (hereinafter referred to as"Asset Management Company".) based on data and indicators published by third parties. It also includes statements regarding theAsset Management Company's current analysis, judgment, and other views on these matters.

Given that the content of this document is unaudited, there are no guarantees provided with respect to its accuracy, completeness,fairness or reliability. In addition, anything other than the analysis and judgment of the Asset Management Company and any otherpast or current facts indicates assumptions or judgments based on the information obtained by the Asset Management Company
at the time of preparation of this document, and descriptions of these future projections include known and unknown risks anduncertainties. As a result, the actual results, operating results, and financial position of the Investment Corporation may differ fromthose forecasted by the Investment Corporation and the Asset Management Company.
Figures may not correspond to those of other disclosed information due to differences in rounding.
All efforts have been made to ensure that the information included in this document is accurate, but errors may have occurred andmay be corrected or modified without a prior notice.
The Investment Corporation and the Asset Management Company are not in any way liable for the accuracy or completeness ofany data or indicators used in this document based on disclosures from third parties.
These materials include statements regarding future policies of the Investment Corporation, but provide no guarantees of the
future policies.
For convenience of preparation of charts and data by the Asset Management Company, dates indicated in this document may not
be business days.

36

Ticker Symbol：3493

Advance Logistics Investment Corporation

Asset management company

Contact

ITOCHU REIT Management Co., Ltd.
Logistics Strategy Department

TEL

0120-300-780+81-3-6821-5484

Business hours

Address
37

11:00 - 15:30 (Excluding weekends, national holidays,
and days off at the end and beginning of the year)*11:00 - 15:00 on December 29 and 30 (In the case of business day)
*We are currently adopting staggered working hours to deal with the
COVID-19, so our business hours will be shortened.

1-105 Kanda-Jinbocho, Chiyoda-ku, Tokyo 101-0051,
Japan