August 16, 2024

CRE Logistics REIT, Inc.
Summary of Financial Results (Unaudited)
For the 16th Fiscal Period Ended June 30, 2024
(For the Reporting Period from January 1, 2024 to June 30, 2024)(Translated from the Japanese original)
Corporate Information
Code: 3487 Listing: Tokyo Stock Exchange(URL: https://cre-reit.co.jp/en/)
Representative: Tsuyoshi Ito, Executive Director
Asset management company:
Representative:
Person of Contact:
Tel:

CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Hirohisa Toda, Executive Officer, Head of Corporate Planning and General Affairs+81-3-5575-3600

Scheduled date to file securities report:
Scheduled date to commence payment of distributions:Preparation of supplementary material on financial results:
Financial report presentation meeting:

September 24, 2024
September 17, 2024
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen, except for the basic earnings per unit)
1. 16th Fiscal Period ended June 30, 2024 (January 1, 2024-June 30, 2024)(1) Operating results(Percentages represent changes from corresponding period of previous period)
Operating revenues
Operating income
Ordinary income
Net income
Fiscal period ended

June 30, 2024
December 31, 2023

Million yen%

Million yen%

Million yen%

Million yen

%

4,466
4,525

(1.3)
6.7

2,383
2,488

(4.2)
6.8

2,068
2,173

(4.8)
8.6

2,067
2,172

(4.8)
8.6

Return on
unitholders’ equity

Net income per unit
Fiscal period ended

Yen

June 30, 2024
December 31, 2023

3,294
3,460

Ordinary income tototal assets

Ordinary income on
operating revenues

%

%

%

2.4
2.6

1.3
1.3

46.3
48.0

(2) Distributions

Fiscal period ended

June 30, 2024
December 31, 2023

Distributions
per unit(excluding
surplus
distributions)

Total
distributions(excluding
surplus
distributions)

Yen

Million yen

Yen

3,294
3,461

2,067
2,172

360
359

Surplus
distributions
per unit

Distributions
per unit(including
surplus
distributions)

Total
distributions(including
surplus
distributions)

Million yen

Yen

Million yen

%

%

225
225

3,654
3,820

2,293
2,397

100.0
100.0

2.4
2.6

Total surplus
distributions

Payout ratio

Distributions to
net assets ratio(Note 1) The entire amount of total surplus distributions is the return of contributions that falls under the distribution associated with the investment
decrease for tax purposes.
(Note 2) The percentage of decreased surplus as a result of surplus distributions (the return of contributions that falls under the distribution associatedwith the investment decrease for tax purposes) in the fiscal period ended December 31, 2023 and the fiscal period ended June 30, 2024 was
0.003, in both periods. The calculation of the percentage of decreased surplus is based on Article 23, Paragraph 1, Item 4 of the Order for
Enforcement of the Corporation Tax Act.

(3) Financial position
Total assets

Net assets

Unitholders’ equity ratio

As ofMillion yen

Million yen

June 30, 2024
December 31, 2023

160,064
161,00984,74285,072

－

1

－

%

52.9
52.8

Net assets per unit
Yen

135,004
135,530

(4) Cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Fiscal period ended

Million yen

June 30, 2024
December 31, 2023

2,450
4,296

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the fiscal period

Million yen

Million yen

Million yen

104
(160)

(2,608)(3,759)

3,627
3,680

2. Forecast for the 17th Fiscal Period ending December 2024 (July 1, 2024-December 31, 2024) and the 18th Fiscal Period ending June
2025 (January 1, 2025-June 30, 2025)(Percentages represent changes from corresponding period of previous period)
Operatingrevenues

OperatingincomeOrdinary
incomeDistributions
Distributions
per unit (including
per unit
surplus(excluding surplus
distributions)distributions)

Net income

Surplus
distributions
per unit

Fiscal period ending

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

Yen

Yen

December 31, 2024
June 30, 2025

4,655
4,698

4.2
0.9

2,536
2,589

6.4
2.1

2,196
2,223

6.2
1.2

2,195
2,222

6.2
1.2

3,741
3,782

3,497
3,540

244
242

(Reference) Forecast net income per unit (Forecast net income/ Forecast number of investment units at the end of the fiscal period) for the 17th Fiscal
Period ending December 2024 is 3,496 yen and forecast net income per unit for 18th Fiscal Period ending June 2025 is 3,539 yen.

* Other(1) Changes in accounting policies, changes in accounting estimates and retrospective restatements
1. Changes in accounting policies associated with revision of accounting standards, etc.: None
2. Changes in accounting policies associated with other than 1: None
3. Changes in accounting estimates: None
4. Restatements: None

(2) Total number of investment units issued and outstanding
1. Total number of investment units issued andoutstanding at the end of the fiscal period(including treasury investment units)

As of June 30,
2024

627,700 units

As of December
31, 2023

627,700 units

2. Total number of treasury investment units at
the end of the fiscal period

As of June 30,2024

0 units

As of December
31, 2023

0 units* Summary of financial results is not inside the scope of audit procedure by certified public accountants or audit corporations.
* Remarks on appropriate use of forecasts of performance and other special notes
Forward-looking statements presented in these financial results, including forecasts of performance, are based on information
currently available to CRE REIT and on certain assumptions CRE REIT deems to be reasonable. As such, actual operating andother results may differ materially from these forecasts as a consequence of various factors. Moreover, the forecasts set forth hereinshould not be construed as a guarantee of distribution amounts.
Refer to the section on “Assumptions for Operating Forecasts for the 17th Fiscal Period ending December 2024 (July 1, 2024December 31, 2024) and the 18th Fiscal Period ending June 2025 (January 1, 2025-June 30, 2025)” for details on the underlying
assumptions for the forecasts above.

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2

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Assumptions for Operating Forecasts for the 17th Fiscal Period ending December 2024 (July 1, 2024-December 31, 2024) and the 18th
Fiscal Period ending June 2025 (January 1, 2025-June 30, 2025)
Item
Calculation period

Assumptions- 17th Fiscal Period (Ending December 31, 2024): July 1, 2024-December 31, 2024 (184 days)- 18th Fiscal Period (Ending June 30, 2025): January 1, 2025-June 30, 2025 (181 days)

Assets undermanagement- CRE REIT possesses the real estate trust beneficiary rights in the total of 21 properties as of June 30, 2024.
Thereafter, it is assumed that there will be no changes (acquisition of new properties or the disposition ofproperties held, etc.) in the 21 properties under management through June 30, 2025, except for the following.
- It is assumed that 30.0% of the quasi-co-ownership interest in LogiSquare Kuki II (the “Asset for Sale”) will
be sold on December 26, 2024 and 37.5% of the quasi co-ownership interest will be sold on January 31,
2025.
- However, there may be changes due to acquisition of new properties or sale of properties held.

Operating revenues- Real estate leasing business revenues are calculated based on lease contracts that are in effect as of the dateof submission of these financial results, historical results, tenant and market trends, and the competitivenessof the property.
- The calculations assume that there will be no delinquencies or defaults on rent payments on the part oftenants.
- As a result of the sale of the Asset for Sale, gain on the property sale are expected to be 169 million yen for
the fiscal period ending December 31, 2024 and 215 million yen for the fiscal period ending June 30, 2025.

Operating expenses- Regarding real estate leasing expenses, which are the main operating expenses, expenses other thandepreciation are calculated by taking into consideration variable factors such as expenses assumed to be
incurred (taxes and public dues, entrusted property management, property insurance, repairs, etc.) based on
the historical results.
- Property taxes, city planning taxes and other charges are expected to be 443 million yen at the fiscal period
ending December 31, 2024 and 439 million yen at the fiscal period ending June 30, 2025.
- Depreciation is calculated using the straight line method, and it is expected to be 766 million yen in the fiscal
period ending December 31, 2024 and 760 million yen in the fiscal period ending June 30, 2025.
- Entrusted property management fees are expected to be 237 million yen for the fiscal period ending
December 31, 2024 and 261 million yen for the fiscal period ending June 30, 2025.

Non-operating
expenses- Non-operating expenses for the fiscal period ending December 31, 2024 are expected to be 340 million yen.
This amount will include the payment of 328 million yen for interest and other financing-related expenses
and 5 million yen for the amortization of investment unit issuance costs.
- Non-operating expenses for the fiscal period ending June 30, 2025 are expected to be 366 million yen. This
amount will include the payment of 354 million yen for interest and other financing-related expenses and 4
million yen for the amortization of investment unit issuance costs.

Interest-bearing debt

- It is assumed that total interest-bearing debt will be 70,819 million yen at the end of the fiscal period ending
December 31, 2024 and 70,819 million yen at the end of the fiscal period ending June 30, 2025.
- In the fiscal period ending December 31, 2024, long-term borrowings of 3,105 million yen which becamedue on July 31, 2024 and short-term borrowings of 350 million yen which will become due on January 31,
2025 were repaid on July 31, 2024, refinancing a total of 3,455 million yen.
- In the fiscal period ending June 30, 2025, while long-term borrowings of 5,600 million yen will become due
on January 31, 2025, it is assumed that the same amount will be refinanced.
- The loan-to-value (LTV) ratio is expected to be around 44.4% at the end of the fiscal period ending December
31, 2024 and around 44.3% at the end of the fiscal period ending June 30, 2025. The following formula isused to calculate the LTV ratio, with numbers rounded off to the first decimal place.
LTV ratio = Total interest-bearing debt ÷ Total assets × 100

－

3

－

Item

Assumptions

Investment units- The assumptions for these forecasts are based on a total number of investment units issued of 627,700, as ofthe date of submission of these financial results. The forecasts do not factor in any assumption of a change
in the number of investment units through June 30, 2025 due to factors such as the issuance of new investment
units.
- The distributions per unit (excluding surplus distributions) and the surplus distributions per unit are calculated
based on a total number of investment units issued of 627,700 for the fiscal period ending December 31,
2024 and the fiscal period ending June 30, 2025.

Distributions per unit
(excluding surplus
distributions)- Distributions per unit (excluding surplus distributions) are calculated in accordance with CRE REIT’s policyon the distribution of cash as stipulated in its Articles of Incorporation.
- Distributions per unit (excluding surplus distributions) may change for a variety of reasons, includingchanges in CRE REIT’s investment assets, changes in leasing revenues due to tenant movements, etc., and/or
the occurrence of unforeseen repairs and maintenance, etc.

Surplus distributions
per unit- Surplus distributions per unit are calculated in accordance with the policies stipulated in CRE REIT’s Articles
of Incorporation as well as the asset management guidelines provided in the asset management company’s
internal rules.
- It is assumed that there will be no specific possibility of significant deterioration in the economic
environment, the real estate market conditions or CRE REIT’s financial condition.
- While CRE REIT has a policy of continuously implementing surplus distribution for each fiscal period, inprinciple, with an amount equivalent to 30% of depreciation as a benchmark, CRE REIT has decided to
implement this policy flexibly to level distributions within the range equivalent to 30% of depreciation. In
the fiscal period ending December 31, 2024 and the fiscal period ending June 30, 2025, it is assumed thatsurplus distributions will be made in an amount equivalent to 20% of depreciation, taking into account thelevel of earnings including gain on the property sale.
- In addition, in cases where distributions per unit are expected to decline temporarily to a certain extent due
to the dilution of the investment unit value or a significant financial burden as a result of the procurement offunds through the issuance of new investment units or for other reasons, CRE REIT may implement
temporary surplus distributions, in addition to the continuous surplus distributions, with a view tostandardizing the amount of distributions per unit. However, the total amount of continuous surplus
distributions and temporary surplus distributions shall not exceed the amount equivalent to 60% ofdepreciation for the relevant fiscal period.
- The amount of surplus distributions (return of contributions) may change due to factors such as the economic
environment, trends in the real estate market, the situation surrounding owned assets, and financial
conditions, and the surplus distribution (return of contributions) may not be implemented as a result.

Other- It is assumed that there will be no change in legislation, taxation, accounting standards, listing regulations
imposed by the Tokyo Stock Exchange, rules and requirements imposed by The Investment Trusts
Association, Japan, etc., that will impact the above forecasts.
- It is assumed that there will be no unforeseen material changes in general economic trends, real estate market
conditions, etc.

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4

－

3. Financial Statements(1) Balance Sheet(Thousands of yen)
As of December 31, 2023

As of June 30, 2024

AssetsCurrent assets
Cash and deposits

1,193,356

1,356,978Cash and deposits in trust

4,266,788

3,742,341

Operating accounts receivable

75,167

164,334

Prepaid expenses

114,231

136,08814－

5,649,558

5,399,742

79,165,328

79,183,305

Accumulated depreciation(5,972,396)(6,698,385)

Buildings in trust, net

73,192,932

72,484,920

3,470,377

3,470,377

Accumulated depreciation(222,165)(247,856)

Structures in trust, net

3,248,211

3,222,521

Tools, furniture and fixtures in trust

21,452

24,585

Accumulated depreciation(4,442)(6,677)

Tools, furniture and fixtures in trust, net

17,00917,907

Land in trust

78,626,947

78,626,947

Total property, plant and equipment

155,085,101

154,352,296

Other

1,346

1,144

Total intangible assets

1,346

1,144

Investment securities

10,50010,500Long-term prepaid expenses

200,263248,713

6

15

Leasehold and guarantee deposits

10,00010,000Total investments and other assets

220,770

269,228

155,307,218

154,622,669

Investment unit issuance expenses

22,424

15,348Investment corporation bond issuance costs

30,50026,903

Total deferred assets

52,92442,252

161,009,701

160,064,664

Income taxes receivable
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust

Structures in trust

Intangible assets

Investments and other assets

Deferred tax assets

Total non-current assets
Deferred assets

Total assets

－

5

－

(Thousands of yen)
As of December 31, 2023

As of June 30, 2024

Liabilities
Current liabilities
Operating accounts payable

245,809

304,988

Short-term borrowings

210,000

350,000

6,785,000

8,705,000

387,658

370,521645

917

Consumption taxes payable

324,616

109,613

Advances received

809,667

755,086

Other

161,606

7,063

8,925,004

10,603,190

Investment corporation bonds

6,000,000

6,000,000

Long-term borrowings
Leasehold and guarantee deposits received in
trust
Other

58,034,000

55,764,000

2,966,591

2,943,888

11,532

11,115

Total non-current liabilities

67,012,123

64,719,004

75,937,128

75,322,195

84,318,685

84,318,685

Deduction from unitholders’ capital(1,418,730)(1,644,075)

Unitholders’ capital, net

82,899,954

82,674,610

2,172,618

2,067,859

2,172,618

2,067,859

85,072,573

84,742,469

85,072,573

84,742,469

161,009,701

160,064,664

Current portion of long-term borrowings
Accrued expenses
Income taxes payable

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital

Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

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6

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(2) Statement of Income(Thousands of yen)
Fiscal period ended
December 31, 2023

Fiscal period ended
June 30, 2024

Operating revenue
Leasing business revenue

4,387,346

4,326,886

137,665

140,028

4,525,011

4,466,915

1,564,907

1,630,799

410,889

389,660

Asset custody fees

2,683

2,665

Administrative service fees

19,346

19,324

Remuneration for directors (and other officers)

4,500

4,500

Other operating expenses

34,27736,475

Total operating expenses

2,036,604

2,083,425

2,488,406

2,383,490

Interest income

25

24

Dividend income

525－

Reversal of distributions payable

312

280

Interest on tax refund

664

－

1,527

304

Interest expenses

199,239

204,010

Interest expenses on investment corporation bonds

16,78920,390Borrowing related expenses

85,30876,418

Amortization of investment unit issuance expenses

9,987

7,075

Amortization of investment corporation bondissuance costs

3,126

3,597

Other

2,425

3,681

316,876

315,172

Ordinary income

2,173,057

2,068,622

Income before income taxes

2,173,057

2,068,622

Income taxes - current

742

920

Income taxes - deferred

13

(8)

Total income taxes

756

912

2,172,300

2,067,710

317

149

2,172,618

2,067,859

Other leasing business revenue
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fees

Operating income
Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses

Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

－

7

－

(3) Statement of Unitholders' Equity
Fiscal period ended December 31, 2023
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of period

Surplus

Unitholders’capitalDeduction fromunitholders’capitalUnitholders’capital, net

Unappropriatedretainedearnings(undisposed
loss)

84,318,685(1,143,170)

83,175,514

2,000,797(275,560)(275,560)

Total net assets

Total surplus

Totalunitholders’equity2,000,797

85,176,312

85,176,312(275,560)(275,560)

Changes during
periodDistributions inexcess of
earnings
Dividends ofsurplus(2,000,479)(2,000,479)(2,000,479)(2,000,479)

Net income

2,172,300

2,172,300

2,172,300

2,172,300

Total changes during
periodBalance at end of
period－(275,560)(275,560)

171,820

171,820(103,739)(103,739)

84,318,685(1,418,730)

82,899,954

2,172,618

2,172,618

85,072,573

85,072,573

Fiscal period ended June 30, 2024
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of period

Surplus

Unitholders’capitalDeduction fromunitholders’capitalUnitholders’capital, net

Unappropriatedretainedearnings(undisposed
loss)

84,318,685(1,418,730)

82,899,954

2,172,618(225,344)(225,344)

Total net assets

Total surplus

Totalunitholders’equity2,172,618

85,072,573

85,072,573(225,344)(225,344)

Changes during
periodDistributions inexcess of
earnings
Dividends ofsurplus(2,172,469)(2,172,469)(2,172,469)(2,172,469)

Net income

2,067,710

2,067,710

2,067,710

2,067,710

Total changes during
periodBalance at end of
period－(225,344)(225,344)(104,759)(104,759)(330,103)(330,103)

84,318,685(1,644,075)

82,674,610

2,067,859

2,067,859

84,742,469

84,742,469

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8

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(4) Statement of Cash Flows(Thousands of yen)
Fiscal period ended
December 31, 2023

Fiscal period ended
June 30, 2024

Cash flows from operating activities
2,173,057

2,068,622

752,046754,116

Amortization of investment unit issuance expenses

9,987

7,075

Amortization of investment corporation bond issuance costs

3,126

3,597

Interest income

(25)

(24)

Interest expenses

216,029

224,400

Decrease (increase) in operating accounts receivable

11,578(89,167)

Decrease (increase) in consumption taxes receivable

929,030－

Decrease (increase) in prepaid expenses

42,757(21,856)

Increase (decrease) in operating accounts payable(25,198)

67,040

Increase (decrease) in accrued expenses

31,460(20,945)

Increase (decrease) in consumption taxes payable

324,616(215,003)

Increase (decrease) in advances received

2,016(54,581)

Decrease (increase) in long-term prepaid expenses

34,926(48,449)

Other, net

2,270(3,116)

Subtotal

4,507,681

2,671,707

25

24(210,325)(220,592)(1,120)(649)

4,296,261

2,450,490

Acquisition of property, plant and equipment in trust(38,334)(28,971)

Repayments from leasehold and guarantee deposits received in trust(7,580)(214,186)

32

39,934

Proceeds from restricted deposits

4,548

403,752

Payments into restricted deposits(119,534)(95,742)

Net cash provided by (used in) investing activities(160,869)

104,786

Proceeds from short-term borrowings－

350,000

Repayments of short-term borrowings(1,470,000)(210,000)

Proceeds from long-term borrowings

2,900,000

3,330,000

Repayments of long-term borrowings(4,900,000)(3,680,000)

Proceeds from issuance of investment corporation bonds

1,985,870－

Distributions paid

(2,275,735)(2,398,092)

Net cash provided by (used in) financing activities(3,759,864)(2,608,092)

Net increase (decrease) in cash and cash equivalents

375,527(52,814)

Cash and cash equivalents at beginning of period

3,304,662

3,680,190

Cash and cash equivalents at end of period

3,680,190

3,627,375

Income before income taxes
Depreciation

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Proceeds from leasehold and guarantee deposits received in trust

Cash flows from financing activities－

9－