Security Code：3481

Fiscal Period Ended August 31, 2020

Asset Management Company:

October 15, 2020

https://mel-reit.co.jp/en/

Table of Contents
1.

Overview of 3rd Follow-on Offering and
New Acquisition

4

2. Financial Results and Forecasts

8

3. Growth Strategy

11

4. ESG Initiatives

19

5. Logistics Market Overview

23

6.

Mitsubishi Estate’s Logistic Facilities
Business

7. Appendix

26
30

1

Highlights after April 2020

HYBRID External Growth●Acquired 5 properties (3 sponsor-developed properties and 2 Asset Management Company-sourced
properties) through 3rd follow-on offering and expanded asset size to 19 properties of 142.1 bn yen●Achieved stabilized DPU growth by +8.3% and NAV per unit growth by +6.8%

HYBRID Internal Growth●Maintained high occupancy and achieved rent growth for 5 consecutive periods despite the COVID-19
pandemic. Upward trend is expected to continue
Average rent growth(Note 1)

8th period +9.5%

9th period (forecast)(Note 2)

+7.1%

Financial Strategy●Extended debt duration and maintained low debt cost through new debt. LTV still remains low at 30.9%●Achieved further diversification through adding 4 new lenders, Sumitomo Mitsui Trust Bank,The Yamanashi Chuo Bank, The Yamaguchi Bank and The Bank of Toyama

Financial Results●Achieved stable DPU of 6,003 yenvs 7th period +96yen (+1.6%) vs forecast +56yen (+0.9%)(Note 3)

Note 1: Average rent growth for the leases that expired or will expire during the relevant period
Note 2: Lease contracts that are not yet contracted are assumed to be unchanged for the calculation
Note 3: The forecast announced on Apr. 17, 20202

Management Policy Designed to Maximize Unitholders’ Value in Mid-to Long-term
Progress of Management Policy based on “Three Pillars”
Execution of Growth Strategy based on “Three Pillars”(Since April 2019)

Alignment
Align interest
withunitholders

Assetmanagement
fee fully linked
to unit priceperformance

Support from
Sponsor’s
announcementof its long-term
management
plan andcontinued
same-boat
investment

Discipline
Achievedisciplined
growthExternal growthutilizing LTV

Flexible property
acquisition
strategy utilizing
bridge funds

HybridEnhance MEL’s
uniquestrategyHybrid Model

Enhancedcollaboration
with Tokyo
Ryutsu Center(TRC)

ESG initiatives
and greening of
the portfolio

Inclusion in the
FTSE EPRA
NareitGlobal Real
Estate IndexSeriesExternal growthwith attention
to portfolio yieldand implied
cap rate

Flexiblefinancingcarefully
watching
the market
conditions

Internal growthutilizing
management
capability of
AssetManagement
Company andleasing capacityof the Sponsor

Expandingpipelines fromboth the Sponsor
and Asset
Management
Company

Measures for the Future Aim for further inclusion in major indicesand improve liquidity by steadily
increasing market capitalization
 Introduce cumulative investment for
employees

 Maximize unitholder value throughdisciplined acquisitions and utilizing low
LTV Consider issuance of bonds including
green bonds aiming for diversification offinancing method (shelf registration
already filed)

The entire Mitsubishi
Estate Group will
collaborate to maximize
unitholder value

 Continue “Hybrid” external and internal
growth Secure pipelines continuously from theSponsor Secure pipelines through utilizing AssetManagement Company’s various sourcing
methods, such as CRE proposals

Note： Executed measures after Apr. 2020 are highlighted in red

3Overview of 3rd Follow-on Offering and
New Acquisition

Overview of 3rd Follow-on Offering
Offering format

Domestic Public Offering(with Extraordinary Report)

Offering Background and Outcome

Launch dateAug. 13, 2020 (Thursday)

Pricing dateAug. 24, 2020 (Monday)●Flexible offering after confirming the stable unit performance,
driven by the strong tailwind towards logistics sector, as solid
demand are expected post COVID-19

Issue price431,701 yen per unit

Total number ofissued units●Achieved stabilized DPU growth of +8.3% and NAV per unit growthof +6.8%, contributing to increase unitholder value

Units issued：40,500 units(Designated Purchaser 1,750 units)●Received high evaluation from investors for the continued executionof growth strategy based on “Three Pillars”

Overallotment：1,922 units●Orderbook oversubscribed by 18 times as a result of receiving solid
investor demand from both domestic and overseas investors

Total amount issued 18.3 bn yen
Aug. 13, 2020
Launched 3rd follow-on offering

（%）
120
110
100

MEL's Unit Price
TSE REIT Index
RetailHotel
Diversified / Complex

Logistics
Residence
OfficeHealth care（yen）
520,000
480,000

June 4, 2020 Announcement of the Inclusion
FTSE EPRA Nareit Global Real Estate Index Series
MEL’s Volume (right axis)
MEL’s Unit Price (left axis)
TSE REIT Index (left axis)（units）
14,00022,00012,000440,000
10,000400,00090

360,000

8,000

320,000

80

6,000

280,00070

240,000

4,000

60
200,000
50

120,000

40
2020/2/20

2,000

160,000

2020/4/4

2020/5/19

2020/7/2

2020/8/16

2020/9/30

2020/2/20

02020/4/4

2020/5/19

2020/7/2

2020/8/16

2020/9/30

5Summary of 5 New Properties
No. of Properties /Total Acquisition Price

５

28.4

properties/

bn yenAverage Property Age

5.3

years

Total Appraisal value

29.9

bn yenAverage Occupancy

100.0

%

Average Appraisal
NOI Yield

4.8

Sponsor-developed property/
Asset Management Companysourced property％

Average Lease Term

5.8

years

3 properties /2 properties
WALE

4.5

years

Logicross Nagoya Kasadera (60％ co-beneficiary interest)(Nagoya, Aichi)
Acquisition price

8,705 mn yen

Appraisal value

9,540 mn yen

Appraisal NOI yield 4.9%
Total floor area

72,376m2

Main tenants

YAGAMI Co., LTD., others

Logicross Osaka (60% co-beneficiary interest)(Osaka, Osaka)
Acquisition price

5,874 mn yen

Appraisal value

6,000 mn yen

Appraisal NOI yield 4.3%
Total floor area

36,619m2

Main tenants

e-LogiT co., ltd., others

LOGIPORT Osaka Taisho (17.5% additional co-beneficiary interest)(Osaka, Osaka)
Acquisition price

4,802 mn yen

Appraisal value

5,267 mn yen

Appraisal NOI yield 4.7%
Total floor area

117,045m2

Main tenants

Toshiba Logistics
Corporation, others

MJ Logipark Kazo 2 (Kazo, Saitama)
Acquisition price

1,637 mn yen

Appraisal value

1,710 mn yen

CREAppraisal NOI yield 5.0%
Total floor area

7,349m2

Main tenants

MS-JAPAN Co.,Ltd.

MJ Logipark Sendai 1 (Tagajo, Miyagi)
Acquisition price

7,388 mn yen

Appraisal value

7,410 mn yen

Improved
Profitability

Appraisal NOI yield 5.2%
Total floor area

36,854m2

Main tenants

Toho Transportation andWarehouse Co., Ltd.,othersNote： Data at the time of 3rd follow-on offering

6Effect through 3rd Follow-on Offering
Stabilized DPU

Asset size
CAGR from post-listing stabilized period(FP 2018/8（4th FP))：+32.1%(bn yen)

142.1

150
130

113.7

110

CAGR from post-listing stabilized period(FP 2018/8(4th FP))：+8.2%

(yen)
7,000
6,500

+25.0%

6,000

5,947

+8.3%

6,438

Property tax
expensed

5,500
90

5,000

70

50
0

4,500
0
4,000
FP 2020/2 (7th FP)
2020年2月期（第7期）

Post-Offering
取得予定資産取得後

NAV per unit

320,000

300,000

Post-Offering
新規取得予定資産取得後
Forecasted
2021/8 (10th FP)（2020年8月期予想）

LTV・Debt Capacity

(yen)

+6.8%

310,000

FP 2020/8(8th FP) Forecast
2020年2月期（第7期）(As of Apr. 17, 2020)

312,982

293,133

LTV
FP 2020/8 (8th FP)

Forecasted LTV
post-offering
FP 2021/8

29.4%

30.9%

Debt capacity(up to 40%)

Debt capacity(up to 50%)

22 bn yen

57 bn yen

290,000
280,000
270,000
260,000
250,0000

FP 2020/2 (7th FP)
2020年2月期（第7期）

Post-Offering
新規取得予定資産取得後(Forecasted)（予想）

Note： Data at the time of the 3rd follow-on offering. LTV・Debt capacity are as of Oct. 1, 20207

Financial Results and Forecasts

Financial Results for the Fiscal Period Ended Aug. 2020
FP Ended Aug.
2020 Forecast(As of Apr. 17,
2020)(8th FP)

FP Ended Feb.
2020 Actual(7th FP)(A)FP Ended Aug.
2020 Actual(8th FP)(B)

3,200

3,342

+142

3,346

Operating Rental Revenues

3,200

3,342

+142

3,346

Operating Rental Expenses(excluding depreciation)

493

580

+87

597

2,705

2,759

+55

2,749

Depreciation

580

604

+24

605

Operating Income

1,749

1,729

(20)

1,715

1,633

1,655

+22

1,638

1,632

1,654

+22

1,637

Operating Results (mn yen)

Operating Revenues

NOI

Ordinary Income
Net Income

Difference(B)－(A)

Distributions Per Unit
(excluding SCD)
Surplus Cash Distributions (SCD)Per Unit
Number of investment units issued
and outstanding (units)

5,907

6,003

+96

5,947

5,338

5,411

+73

5,353

569

592

+23

594

305,815305,815±0305,815③Increase in expenses from properties acquired in 7th FP(182) mn yen
Property tax expensed(99) mn yen
Full contribution to depreciation, facility management fee, others (33) mn yen
Increase in G&A expense such as asset management fee(51) mn yen

Decrease in leasing fee
Increase in repair and maintenance expense
Decrease in utility cost

+36mn yen(21) mn yen+4 mn yen

⑤No temporary increase in expenses from offering in
Sept. 2019+47mn yen

⑥No repair cost and no insurance payment fromtyphoon damages in 2019±0mn yen

AFFO (mn yen)

2,175

2,214

+39

2,135

AFFO payout ratio

83.0％

82.9％

(0.1)％

85.2％

LTV

30.0％

29.4％

(0.7)％

29.4%

293,133

298,032+4,899

-

99.9%

99.9%

±0％

99.9%

Average Occupancy+10mn yen

④Decrease in expenses from existing properties+21mn yen

Other Statistics

NAV per unit

①Full contribution from properties acquired in 7th FP+132mn yen②Rent increase from existing properties

Distributions Per Unit (yen)Distributions Per Unit
(including SCD)

Main Factors of Variance
7th FP Actual vs. 8th FP Actual

No loss on reduction of fixed assets
No insurance payment＋15mn yen(15) mn yen

9Forecasts for the Fiscal Periods Ending Feb. and Aug. 2021
Operating Results (mn yen)

Operating Revenues

FP EndedAug. 2020
Actual(8th FP)(B)FP EndingFeb. 2021
Forecast(9th FP)(B)

Difference(B)－(A)(Reference)
FP Ending Aug.
2021 Forecast(10th FP)

3,342

4,222

+880

4,215

Operating Rental Revenues

3,342

4,222

+880

4,215

Operating Rental Expenses(excluding depreciation)

580

778

+198

833

2,759

3,440

+681

3,379

Depreciation

604

770

+166

780

Operating Income

1,729

2,177

+447

2,074

1,655

2,040

+385

1,978

1,654

2,039

+385

1,977

NOI

Ordinary Income
Net Income

Distributions Per Unit
(excluding SCD)
Surplus Cash Distributions (SCD)Per Unit

Number of investment units issued
and outstanding (units)①Increase in revenue from properties acquired in
9th FP+865mn yen② Rent increase from existing properties+15mn yen

③Increase in expenses from properties acquired in
9th FP(371) mn yen
Depreciation, increase in facility management fee, etc.
Increase in G&A expense(303) mn yen(68) mn yen④Increase in expenses from existing properties (61) mn yen
Increase in leasing fee
Increase in G&A expense such as asset management fee
Increase in repair and maintenance expense(33) mn yen(11) mn yen(10) mn yen⑤Increase in interest expenses from new borrowings(21) mn yen⑥Temporary increase in expense from offering in Aug. 2020(37) mn yen

Distributions Per Unit (yen)Distributions Per Unit
(including SCD)

Main Factors of Variance
8th FP Actual vs. 9th FP Forecast

6,003

6,520

+517

6,438

5,411

5,857

+446

5,677

Main Factors of Variance
9th FP Forecast vs. 10th FP Forecast

592

663

+71

761

①Increase in expenses from properties acquired in 9th FP(135) mn yen

305,815

348,237＋42,422348,237

Property tax expensed
Increase in G&A(105) mn yen(30) mn yen②Decrease in repair and maintenance expense forexisting properties+38mn yen

Other Statistics
AFFO (mn yen)

2,214

2,618

+404

2,613

AFFO payout ratio

82.9％

86.7％

+3.8％

85.8％

LTV

29.4％

31.5％

+2.1％

30.9％

Average Occupancy

99.9%

99.8%

(0.1)％

99.9%③No temporary increase in expenses from offering in
Aug. 2020+37mn yen

10

Growth Strategy

Features of Mitsubishi Estate Logistics REIT Investment Corporation
Stable Growth Strategy with Hybrid Model “Developer × Real Estate Asset Manager”

No. of Properties /Asset Size

19 properties /1,421bn yen

Sponsor-developed
Properties / AssetManagement
Average Occupancy
Company-sourced
Properties
%
%/

58.2
41.8%

99.9

Appraisal
NOI Yield

Forecasted LTV(2021/8)

Credit Rating
(JCR)

4.8%

30.9%

AA(Stable)

Asset Management Company

SponsorDevelopment/
Facilities Management

Overview

 Dedicated to city development in the Marunouchi area (Tokyo) for over 120 years
 Contributing to the society through a variety of business activities as one of thelargest comprehensive real estate developers
 Promoting the logistics facility business as a growth area
Support Constant supply of pipeline properties from sponsor through development /operation of advanced logistics facilities
 Utilization of Sponsor’s know-how and corporate customer relations in the leasing
activities
 Formulation of capital market-oriented long-term management plan to promote
recycling business in domestic asset business and to expand AUM consistently
in non-asset businesses

Investment/
Asset Management

Overview

 Established in 2001, when the scheme of real estate securitization was
emerging in Japan
 Its track record includes structuring and managing various types of real estate
funds, such as the larger private REIT in Japan
 Proven track records in a variety of asset types in investment and asset
management
Support Unique property sourcing capacity with discerning judgment
 Flexible and diverse acquisition strategies, using a wide range of schemes,
including bridge funds
 Competitive real estate fund management capability backed by a diverse deal
track record

Note: Excluding short-term debt.

12External Growth Strategy
 Capability to develop logistics facilities independently
based on extensive land information
 Capability to co-develop facilities backed by MEC’s ability
and credibility for development
Sponsor-developed properties
with expected preferential negotiation right Capability to assess properties backed by experience incontinuous acquisitions of properties since 2001
 Flexible and diversified property acquisition strategy byleveraging the capability to manage real estate funds
Logicross

MJ Logipark

Brand of logistics facilities that MEC
develops throughout Japan

Properties which MEL acquired
or intends to acquire from 3rd parties

Mitsubishi Estate

Occupancy
100%

Occupancy
100%

MJIA-sourced properties
with expected preferential negotiation rightBridge Fund・3rd Party Bridge

Pre-leased
100%

Logicross Yokohama Kohoku

Logicross Atsugi II

Logista・Logicross Ibaraki Saito (B)(16,000㎡)
Completed in 2019
(Independently)(35,000㎡)
Completed in 2019
(Independently)(31,000㎡)
To be completed in 2021

Occupancy
100%

Occupancy
100%

Logicross Narashino

Logicross Osaka(39,000㎡)
Completed in 2018
(Independently)(36,000㎡)
Completed in 2018
(Jointly)

Pre-leased
100%

Occupancy
100%

Occupancy
100%

Logista・Logicross Ibaraki Saito (A)(115,000㎡)
To be completed in 2021

Logicross Hasuda(tentative name)(79,000㎡)
To be completed in 2021

Logicross Kasukabe(tentative name)(39,000㎡)
To be completed in 2021

Logicross Nagoya Kasadera

LOGIPORT Kawasaki Bay(72,000㎡)
Completed in 2019
(Independently)(296,000㎡)
Completed in 2019
(Jointly)

Other multiple
projects

Logicross Funabashi(tentative name)(23,000㎡)
To be completed in 2021

Logicross Zama
(tentative name)(183,000㎡)
To be completed in 2023

13 properties/1,001,000㎡

No Picture
MJ Industrial Park Kobe (Land)(tentative name)
Land: 31,000㎡
Building: Completed in 2020

Other multiple
projects

Note: Oct. 15, 202013

Portfolio Map(Note2)(Note2)* Tentative nameNote 1：As of Oct. 15, 2020
Note 2: For Logicross Osaka and Logicross Nagoya Kasadera, remaining 40% co-beneficiary interest are left in the pipeline

14Internal Growth Strategy Ⅰ
Rent Revision (Based on leased area of the warehouse portion)
賃料増額
Upward rent revision

FP 2018/8

2018年8月期
(4th
FP)
(第4期)

FP 2019/2

2019年2月期
(5th
FP)
(第5期)

57%

43%

96%

2019年8月期
(6th
FP)
(第6期)

40%

FP 2020/2

88%

2020年2月期
(7th
FP)
(第7期)
2020年8月期
(8th
FP)
第8期

FP 2020/8

93%

FP 2021/2

80％

2021年2月期
(9th
FP)
第9期
(Forecast)
(見込み)

0

未定
Undecided

11,000㎡

4%

FP 2019/8

賃料据置
Rent unchanged

60%

12%

7%

62,000㎡

40,000㎡

19,000㎡

21,000㎡

40,00030,000

Average Rent Growthof Increased Portion

+1.8%

+3.0%

+0.2%

+3.4%

+3.1%

+6.8%

+2.2%

+2.5%

+9.5%

+10.4%+7.1% (Note 2)

6% 14%22,000㎡

15,00015,000

Average Rent Growth

40,00045,000+8.9%

65,00060,00065,000 (㎡)

86% contracted

Unique initiatives other than rent revision
Installation of LED lighting based on green lease contract(MJ Logipark Fukuoka1)■■Installed lighting at MEL’s cost
Received part of the reduction in electricity bills and maintenance costs to beborne by tenant as Green Lease fee

Improved tenant satisfaction by increasing parking space(LOGIPORT Osaka Taisho) Increased rent by installing solar panels on the rooftop(MJ Logipark Fukuoka1)

Total revenue from these initiatives:
Approx. 2 mn yen /annually
Impact for DPU: 3.1 yen

Impact to revenue from internal growth(mn yen)Rent revision

50

Refund of property tax due to review in asset valuation

Initiatives other than rent revision

40
30
20

10
0
2019年2月
FP 2018/2(5th FP)（第5期）

2019年8月
FP 2019/8(6th FP)（第6期）

2020年2月
FP 2020/2(7th FP)（第7期）

2020年8月
FP 2020/8(8th FP)（第8期）

2021年2月
FP
2021/2(9th FP)（第9期）(Forecast)

Note 1：As of Sept. 30, 2020
Note 2: Lease contracts that are not yet contracted are assumed to be unchanged for the calculation

15

Internal Growth Strategy Ⅱ
Tenant Data
Type of Cargo

Tenant Diversification

Cargo for EC(Based on leased area)

BtoC

Sankyu
山九株式会社
5.8%

Kimura Unity
キムラユニティー株式会社
MITAKA SOKO
株式会社三鷹倉庫

4.7%
49.3%

83.1%

4.1%
4.1%
4.0%
3.9%
3.5%

福岡ロジテム株式会社
Fukuoka Logistics System
KDDI株式会社
KDDI

75.8%

東邦運輸倉庫株式会社
Toho Transportation and Warehouse
その他
OthersMore than 99%

3PL

Daily necessities

1.3%

62.1%

6.0%

65.1%

14.3%

8.9%
30.6%

5.5%
日用品 Goods
Household
Food
and
Drink
5.8%
食品・飲料
Pharmaceuticals and医薬品・医療用機器
Medical
DevicesPC/ Communications
パソコン・通信機器
9.3%
Equipment
カジュアル衣料
CasualClothing
Home
家電等Appliance andPrecision equipment
原材料・部材Furnitureand Home Goods
家具・雑貨
Raw
/ Component Materials

Daily necessities+
Honda Logicom
ホンダロジコム株式会社
cargo expected to 6.0%
三菱地所株式会社
Mitsubishi Estateincrease in demand

Average Occupancy and Lease Agreements
Average occupancy
since IPO

(Based on leased area)(Note 2)

8.0%

Sun City Building
サン都市建物株式会社

4.4%

3.2%

23.8%

IHI Infrastructure Systems
株式会社IHIインフラシステム

13.0%

Delivery Destination(Based on leased area)(Note 2)

7.7%
4.4%

27.0%

3PL
65.1%

卸売
Wholesale
Manufacture
製造
Retail小売
Others
その他

その他
OthersLease Agreement Expiration Schedule (Note2)(㎡)

Lease agreements 契約満了予定面積
that expired

契約済み面積Contracted
lease agreements

賃料比

Rent ratio

120,000(%)

20

100,000
15
80,000

Fixed-termlease ratio

100.0%

60,00010

40,0005
20,000Weighted averageremaining expiry

5.7 years

002021/22022/22021/82023/22022/82024/22023/82025/22024/82026/22025/82027/22026/82028/22027/82029/22028/82030/22038/82047/82029/8Note 1：As of Aug. 31, 2020. Includes the 5 properties acquired in 9th FP
Note 2：Excludes land

16

Financial Strategy
Green Loan

Financial HighlightLong-term debt ratio

95.8

Fixed interest rate ratio

95.8

%

Credit rating(JCR)

Average remaining
debt duration(all/excluding short-term)%

5.4

Forecasted LTV(FP 2021/8)

AA-(Stable)

30.9

%

years

/5.6 years

Average debt cost(all/excluding short-term)

0.37 /0.38%

Debt capacity(up to 40%)
Approx.

Lenders

22%

MEL actively promotes
financing with ESG assessment
by external agencies.
MUFG ESG Evaluation for JREIT and SMBC Funding topromote SDGs are the firstcases in J-REIT.

Debt capacity(up to 50%)bn yenApprox.

57

bn yenDebt Maturity Schedule

1.1%
1.9%
3.1%

1.1%
1.1%
0.6%

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation(mn yen)
10,000■ Existing borrowings■ New borrowings

The Bank of Fukuoka, Ltd.
The Norinchukin Bank
3.7%
4.2%

26.5%

5.8%

Total Debt
Balance

7.0%

47,574

8.0%

The Shinkumi Federation Bank
Shinkin Central Bank

6,000

Shinsei Bank, Limited
Development Bank of JapanThe 77 Bank, Ltd.

mn yen
19.4%
16.6%

8,000

4,000

New Lenders

Sumitomo Mitsui Trust Bank, Limited

2,000

The Yamanashi Chuo Bank, Ltd.

The Yamaguchi Bank, Ltd.
The Bank of Toyama, Ltd.

0
2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

(year)

Note：As of Oct. 9, 202017

Mid-to Long-Term Growth Strategy
Asset size target and transition of key financial figures
Sponsor-developed properties
Asset Management Company-sourced properties

Asset Size

1st follow-on
offering

2nd follow-on
offering

Mid-to-long term
Asset size target asset size target
300 bn yen
200 bn yen

3rd follow-on
offering
142.1 bn yen
28.4 bn yen

113.7 bn yen 113.7 bn yen
83.2 bn yen
70.8 bn yen 83.2 bn yen

Achieved
AUM of142.1 bn yen in
3 years since listing Aim for further inclusion
in major indices

LTV

DPU

25.0%

5,292 yen

27.0%

5,492 yen

30.0%

27.0%

5,907 yen

5,524 yen

29.4%

6,003 yen

31.5%

6,520 yen

30.9%

6,438 yen

Stabilized LTV
40%～50%

Aim for continued
growth Continue to carefully
monitor the market andacquire properties
through equity offerings
and flexible use of LTV,
which is the lowest level
among all J-REITs
 Aim to increase DPU
through disciplined
growth Aim to steadily grow NAV
per unit and maximize
unitholder value

NAV Per
Unit

Aim for continued
growth293,133 yen 298,032 yen
269,217 yen 270,016 yen 275,236 yen

FP 2018/8 FP 2019/2 FP 2019/8 FP 2020/2 FP 2020/8(4th FP)(5th FP)(6th FP)(7th FP)(8th FP)FP 2021/2 FP 2021/8(9th FP)(10th FP)

Note：As of Sept. 1, 2020

18

ESG Initiatives

Initiatives for ESG
Sustainability Policy

MEL promotes initiatives for ESG, in collaboration with the AssetManagement Company and the Sponsor, following the basic policies as
below:
1. Pursue energy efficiency
and low carbon

2. Improve water resource
management and waste
management
3. Enhance tenant safety,
security and satisfaction

4. Empower our people
5. Collaborate with external
stakeholders
6. Disclose ESG informationand obtain environmental
certifications
7. Ensure compliance and risk
management

Signing of PRI
Asset Management Company became asignatory of PRI, the Principles for
Reasonable Investment in March 2020.

Mitsubishi Estate Group’s Initiatives for ESG
Mitsubishi Estate Group’s Sustainable Development
Goals 2030 (Long-term Business Plan)
1. Environment
Sustainable urban developmentthat proactively addresses climatechange and environmental issues
2. Diversity & Inclusion
Urban development that responds tolifestyle and human resources trends andfacilitates active participation for all
3. Innovation
Innovative urban development that
continuously renew society
4. Resilience
Dynamic, flexible urban development thatbuilds disaster-resilient communities andprioritizes safety and security

External Evaluation on Mitsubishi Estate GroupGRESB assessment
MEL participated in the 2019 GRESB Real
Estate Assessment for the first time andwas awarded the prestigious “Green Star”
rating and received “4 Star” rating.

Participate in United Nations Global Compact (UNGC)
Mitsubishi Estate became a signatory of
the UNGC and Mitsubishi Estate Group was
registered as participants in April 2018.
Along with this, the Asset Management
Company has participated in this initiative
as a member of Mitsubishi Estate Group.

20

Initiatives for ESG (Environment)
Environment
Promotion of Green Portfolio
Ratio of Green Properties in Portfolio (GFA basis)
Certification System# of Properties

Building-Housing Energy-Efficiency
Labeling System (BELS)

Comprehensive Assessment System for
Built Environment Efficiency (CASBEE)
for Real Estate

DBJ Green Building Certification

4
7
1

74.3%

Property Name

Logicross Atsugi

Evaluation
BELS: ★★★★★
CASBEE S Rank for Real Estate

Logicross Kobe Sanda

BELS: ★★★★
CASBEE A Rank for Real Estate

Logicross Nagoya Kasadera

CASBEE S Rank for New Construction Nagoya

Logicross Fukuoka Hisayama

DBJ Green Building Certification: ★★★★

LOGIPORT Sagamihara

CASBEE S Rank for Real Estate

LOGIPORT Hashimoto

BELS: ★★
CASBEE S Rank for Real Estate

LOGIPORT Osaka Taisho

CASBEE S Rank for Real Estate

MJ Logipark Kasugai 1

CASBEE A Rank for New Construction Aichi

MJ Logipark Kazo１

BELS: ★★★★★

ExamplesEnergy saving initiatives

Insulated sandwich panels
for exterior walls

Installation of motion
detection sensors

Insulated solar panels

Seismic isolators

Reuse of OA floor panels of Renovation with LED installed based
office buildings in Marunouchi
on Green Lease contract

Use of renewable energy /BCP initiatives
Installation of private power
generators

Measures against infectious
diseases (with hand sanitizers)

21

Initiatives for ESG (Social & Governance)
SocialProactive participation in CSR activities
Clean up volunteer activity after
Atsugi Ayu Firework Festival
near MJ Logipark Atsugi 1

Donate stockpile
from LOGIPORT Hashimoto

Collaboration with Local Educational Institute andImprovement in Tenant Satisfaction
Local universities and vocation schools in the region were involved as part of theredesigning of the employee lounge at MJ Logipark Fukuoka 1

BeforeLawn-mowing at greenery areas
in MJ Logipark Atsugi 1

 Secure reserves in case of emergency(Food, beverage & portable toilet)
 Free salt candy service for tenants in our
properties (for all properties held as of Aug. 2020)
 We donated the 1,900 unused surge masks wehave stored to the Chiyoda Ward Health Center As a substitute for notebooks, we donated unused
calendars to elementary schools in developing
countries to support children in the future

Governance
Asset Management Structure●MEL introduced an asset management fee structure reflecting theperformance of DPU and investment unit price for the purpose of aligningwith unitholders’ interest
Asset management fee Ⅰ(AUM-linked)
Asset management fee Ⅱ(Real estate profit-linked)

Offering Comfortable Working Environment
Examples●Introduction of flextime working system●Installation of community spaces within the office area
●Invitation of personnel from group companies andoutside professionals●Specialized training for skill improvement●Employee satisfaction survey

These initiatives are intended to maximize
asset management performance by improving
productivity, skills and motivation of employees

After

Asset management fee Ⅲ(Unitholder interestlinked)

Total assets as of the end of previous period × 0.2%
(upper limit)
Adjusted NOI × 5.0% (upper limit)
Adjusted net income before tax × net income before tax
per unit × 0.001% (upper limit)
1st in J-REIT“Fee linked to Investment Unit Price”
Performance against TSE REIT Index ((a)-(b)) × market
capitalization (for fiscal period of each term) × 0.1%
(upper limit)(a): Fluctuations in MEL’s investment unit price (incl.
dividends)(b): Fluctuations in the TSE REIT Index (incl. dividends)

Same-boat investment by
Mitsubishi Estate(as of Oct. 15, 2020)c. 4.1%22

Logistic Market Overview

Logistics Market Overview Ⅰ
Expansion of E-commerce Market(100 bn yen)

３PL Market Size(100 bn yen)

Sales of E-commerce

200
150

30

100

20

50

10
0

0
Note：

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019 (CY)“Sales of E-commerce" in the chart above is an estimate of the value of transactions on the Internet between companies andconsumers (BtoC). The figures are for all goods and services consumed by individuals and are divided into three main categories:
goods sales, services, and digital. Market estimates are calculated and totaled for each of these sectors.
Source： Data compiled by the Asset Management Company based on data from "FY2019 International Economic Research Project for
Establishing a Domestic and Foreign Economic Growth Strategy" (July 2020) by the Ministry of Economy, Trade and Industry

E-commerce Penetration Rate
日本
Japan
32
28
24
20
16
12
8
4
0

米国
U.S.

英国
UK

31.4

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Note：

2019 (FY)

Each fiscal year is the period beginning on April 1 and ending on March 31 of the following year. It does not coincide with the fiscal
period of MEL.
Source：Data compiled by the Asset Management Company based on "Monthly Logistics Business Sept. 2019“

Retail Market Size(100
bn yen)
(千億円)
200

百貨店
Department store

スーパーマーケット
Super market

Drug Store
ドラッグストア

インターネット通販
Online shop

コンビニエンスストア
Convenience store

150

16.1
6.2
4.0
2.1
2009

100
50

6.8
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

0

Growth rate of the amount of small-lot cargo handled
by three major shipping companies (YoY)(%)

Small-lot cargo (YoY)

20

300,000

100,000

1.4%

0Mar. 2020

Apr. 2020

May. 2020

2013

2014

368,025
324,159

2015

2016

2017

2018

2019 (CY)Jun. 2020

Source： Data compiled by the Asset Management Company based on data from the amount of small-lot announced by each of three major
shipping companies

0

YoY(right axis)
前年同月比（右軸）377,206

10.6%
5.4%

1.3%
Jan. 20202020年1月

381,322399,727(%)

20

315,034

200,000

3.1%

Feb. 20202012

400,000

7.3%

Jan. 2020

2011

Cargo
delivery (left axis)
宅配貨物取扱個数（左軸）

18.5%

11.3%

10

2010

Source： Data compiled by the Asset Management Company based on data from “Monthly Report on the Current Survey of Commerce April2020” (June 2020) by the Ministry of Economy, Trade and Industry and "FY2019 International Economic Research Project for
Establishing a Domestic and Foreign Economic Growth Strategy" (July 2020) by the Ministry of Economy, Trade and Industry

Monthly Trends in Cargo delivery(Ministry of Land, Infrastructure, Transport and Tourism)

15.5%

15

2009

(CY)

Source： Data compiled by the Asset Management Company based on data from “Monthly Report on the Current Survey of Commerce April2020” (June 2020) by the Ministry of Economy, Trade and Industry (Japan), Office for National Statistics(UK)and U.S. Census Bureau(USA). Refer to press release disclosed information until 1Q 2020 for U.S. and UK, while until 2019 for Japan5

3PL market size

40

17.6%
14.3%

10

2.9%

Feb.
2020
2020年2月

Mar. 20202020年3月

Apr. 20202020年4月

May.
2020
2020年5月

Jun.
2020
2020年6月

0Source： Data compiled by the Asset Management Company based on data from “Transportation by truck" (May 2020) by the Ministry ofLand, Infrastructure, Transport and Tourism

24

Logistics Market Overview Ⅱ
Tokyo Metropolitan Area
New supply(left axis)
New demand(left axis)(Thousand ㎡)
3,000

Forecast new demand(left axis)

Osaka Metropolitan Area
Vacancy rate(right axis)
Vacancy rate after 1 year
after completion(right axis)
10%

2,500

8%

2,000

6%

1,500
4%

1,000

2%

500
0

New supply(left axis)
New demand(left axis)(Thousand ㎡)
1,400

Forecast new demand(left axis)

1,200

12%

1,000

10%

800

8%

600

6%

400

4%

200

2%

0

0%

0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2021 (year)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2021 (year)
Q1-Q2 Forecast

Q1-Q2 Forecast

Nagoya Metropolitan Area
New supply(left axis)
New demand(left axis)(Thousand ㎡)
350

Forecast new demand(left axis)

Vacancy rate(right axis)
Vacancy rate after 1 year
after completion(right axis)
14%

Kyushu Area
Vacancy rate(right axis)
Vacancy rate after 1 year
after completion(right axis)
35%

300

30%

New supply(left axis)

Forecast new supply(left axis)

Vacancy rate(right axis)(Thousand ㎡)
160

16%

140

14%

120

12%

100

10%

80

8%

250

25%

200

20%

150

15%

60

6%

100

10%

40

4%

50

5%

20

2%

0

0%

0

(50)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2021 (year)
Q1-Q2 Forecast

-5%

0%
2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020 (year)
Q1-Q2

Source： CBRE K.K
Note1：“Tokyo Metropolitan Area” refers to Tokyo, Chiba, Saitama, Kanagawa and Ibaraki prefectures, “Osaka Metropolitan Area” refers to Osaka, Hyogo and Kyoto prefectures, “Nagoya Metropolitan Area” refers to Aichi, Mie and Gifu
prefecture and “Kyushu Area” refers to Fukuoka and Saga prefectures.
Note2：“New Supply” refers to total leasable floor area of newly constructed leasable logistics facilities and “New Demand” refers to change in occupied floor area. Change in occupied floor area is calculated by subtracting tenant
withdrawal floor area from floor area under new agreements.
Note3：Based on data for leasable logistics facilities with 5,000㎡or more of gross floor area owned by real estate investment company, real estate developer, etc. Excluding leasable logistics facilities owned by logistics company.

25

Mitsubishi Estate’s Logistic Facilities BusinessFeatures of MEC Group’s Logistic Facilities Business Ⅰ
History of Logistics Facility Business of Mitsubishi Estate Group●MEC Group has developed safe and secure logistics facilities proactively and consistently, since the commencement of the business in 1967, and strengthened capacity with the establishment of
Logistics Facilities Development Office within Urban Project Development Department in 2012
●MEC Group aims to enhance social infrastructure and quality of life through this high-growth business, leveraging expertise and relations cultivated as a comprehensive real estate developer
Completed LOGIPORT
Sagamihara

Investment inTokyo Ryutsu
Center (TRC)

1967

Completed LogicrossFukuoka Hisayama

Completed Tatsumi
Logistics Center(Formerly Nakano
Shokai Tatsumi
Center)2012

Established Tokyo Ryutsu Center Inc.
in 1967～Built track record as a pioneer in theJapanese logistics facilities sector～●Has received investment from MEC since
its establishment●Has built a track record in operating
logistics facilities in prime locations in Tokyo

Completed
Logicross Narashino

Completed four properties incl.
Logicross Nagoya Kasadera
Scheduledcompletion of
Logicross series
properties

MEC made TRC a
consolidated
subsidiary

2013

2014

2015

2016

2017

2018

2019

2021 and

2020

after

Strengthened Efforts in Logistics Facilities Development at MEC●Restructured Facilities Development Department in 2013 to enhanceefforts to the relevant business

Completed Logicross
Kobe Sanda●Achieved further growth through not only joint development but also
its own brand Logicross series launched on a stand-alone basis in
2014● Made TRC a consolidated subsidiary in 2016

Taken from “Medium-term Management Plan from2018/3 to 2020/3”
Value Chain of Capital Recycling Investment
Land acquisition
and Development

Platform ofLogistics Facilities
Business

Facility
Management

Completed
Logicross Atsugi

Completed LOGIPORT
HashimotoCompleted LOGIPORTOsaka Taisho

LOGIPORT
Kawasaki Bay

Announced
Medium-termManagement
Plan

Announced
Long-termManagement
Plan

Taken from “Mitsubishi Estate Group Long-Term Management Plan 2030”

Domestic AssetBusiness●Advance and commercialize redevelopment PJ,
including Marunouchi●Promote capital recycling business in response to realestate market conditions

International
Asset Business
AssetManagement●Increase AUM to 5 trillion yen by the mid-2020s

Non-asset
Business●Utilization of the latest technologies such as AI andRobotics

27

Features of MEC Group‘s Logistic Facilities Business Ⅱ
Strengths of MEC group
Diversified business portfolio
Advanced development
capabilities

Strengths4
as acomprehensive Corporate customer relations
developer

5

Customer network
supported by branches
Numerous joint projectexperiences

Strengths of
the Logistics
Facilities
Business

1
2

Land Acquisition

Development

Obtain a variety ofland information

Manage development cost

Consolidate plots of land frommultiple landowners

Experiences of joint projects requiring coordination between stakeholders with different interests

Collaboration with TRC

Capture information from tenants ofmanaged facilities

Obtaining a variety of land information throughgroup-wide information sharing
Logicross
Nagoya KasaderaGroup-wide leasing

Explore tenants’ needs
at various locations

Explore land information on site

Reflect tenants’ needs in landacquisition

1 Diversified business portfolio

Coordination among stakeholders andthe administration

Land information and development utilizing relations

Strengthening of value chain
through in-house PM
63

Operation & Management

among stakeholders and3 Coordination
the administration

Understand tenants’ needs for facility
specifications

Understand tenants’ usage needs
Utilize relations with tenants ofmanaged facilities

4 Corporate customer relations

network supported by
5 Customer
branches

MEL’s ability to respond to complex
schemes for ownership interest
swaps were highly rated

Collaborative project making fulluse of relation with office tenant in
Daimaru area

Use the regional network mainly inthe areas where MEC’s head officeand branches are located toachieve tenant leasing activities

Logicross Hasuda (tentative)

LOGIPORT Kawasaki Bay

Logicross Kobe Sanda

2 Consolidate plots of land from multiple landowners
Efforts such as acquiring development lands
through land consolidation of multiple
owners
Logicross Kasukabe (tentative)28

6Partnership with TRC
Overview of Tokyo Ryutsu Center (TRC)●Established in 1967 to operate large distribution facilities thattake a critical role for streamlining logistics in the Tokyo
Metropolitan area, and became a consolidated subsidiary of
MEC since 2016
●Rebuilt Logistics Building, B-wing as the first in-premise redevelopment project (completed in June, 2017, with floorarea of 171,300m2) . MEC entered “Project Management
Support consignment contract” associated with rebuilding

Launch of a co-working showroom that aims to solve problems
through logistics tech
●Launched the "TRC LODGE", a permanent
exhibition space where visitors can learn the latest
logistics tech to help solve problems of all sizes
faced by logistics companies●A “Seminar and Co-working Space” is available for
exhibiting companies to hold seminars, etc.
●The "Time Share Warehouse" is an experimental
space where companies can rent the entire latest
warehouse for an hour or more to test anddemonstrate new products. It can be used not
only for the display of existing products, but also
for new product development and demonstration"TRC LODGE", a permanent exhibition space」"Time Share Warehouse"“Seminar and Co-working Space”●Supporting the tenants of logistics facilities
developed and operated by the MEC Groupthrough this facility to enhance the efficiency andsophistication of logistics operations, both in termsof software and hardware

Personnel Exchange with TRC(As of Apr. 1, 2020)

Operation management by TRC

6 seconded●Started the joint development of an advanced
and efficient operation/management method,
utilizing TRC’s operational/management knowhow

3 accepted●The MEC Group promotes digital transformation
unbound by the traditional Real Estate business,through the fusion of Real Estate Assets anddigital technology

Approx.

50years ofexperience

Logicross Nagoya Kasadera

Logicross Atsugi Ⅱ●Operation & management of 11 properties held andpipeline assets are outsourced to TRC●Promoting in-house operation & management by
utilizing TRC’s know-how

Development of Facility Management Service
Utilizing Drones●Five employees are seconded from MEC
to TRC, while two employees from TRC
to MEC●One employee is seconded from MJIA to
TRC, while one from TRC to MJIA

●Promoting the accumulation of knowhow through personnel exchange

29Appendix

Portfolio Overview
No. of Properties/
Asset Size

19properties/
1,421bn yen

Average Occupancy

99.9

％

Average Appraisal
NOI Yield

4.8

Average Property Age

7.6

58.2％/41.8％％

Sponsor-developed Properties

Sponsor-developed
Properties/AssetManagement Companysourced Properties

years

Asset Management Company-sourced Properties

Logicross Fukuoka Hisayama

Logicross Nagoya Kasadera(60% co-beneficiary interest)

MJ Logipark Funabashi 1

MJ Logipark Fukuoka 1

MJ Logipark Kazo 2

Acquisition Price: 5,770mn yen
Appraisal NOI Yield: 5.2％

Acquisition Price: 8,705mn yen
Appraisal NOI Yield: 4.9％

Acquisition Price: 5,400mn yen
Appraisal NOI Yield: 6.5％

Acquisition Price: 6,130mn yen
Appraisal NOI Yield: 5.3％

Acquisition Price: 1,637mn yen
Appraisal NOI Yield: 5.0％

Logicross Atsugi

LOGIPORT Sagamihara(49% co-beneficiary interest)

MJ Logipark Atsugi 1

MJ Logipark Tsuchiura 1

MJ Logipark Sendai 1

Acquisition Price: 8,440mn yen
Appraisal NOI Yield: 4.5％

Acquisition Price: 21,364mn yen
Appraisal NOI Yield: 4.7％

Acquisition Price: 6,653mn yen
Appraisal NOI Yield: 4.5％

Acquisition Price: 3,133mn yen
Appraisal NOI Yield: 5.3％

Acquisition Price: 7,388mn yen
Appraisal NOI Yield: 5.2％

Logicross Kobe Sanda

LOGIPORT Hashimoto(45% co-beneficiary interest)

MJ Logipark Kazo 1

MJ Logipark Nishinomiya 1

MJ Industrial Park Sakai (Land)

Acquisition Price: 3,900mn yen
Appraisal NOI Yield: 5.1％

Acquisition Price: 18,200mn yen
Appraisal NOI Yield: 4.5％

Acquisition Price: 1,272mn yen
Appraisal NOI Yield: 5.7％

Acquisition Price: 2,483mn yen
Appraisal NOI Yield: 5.7％

Acquisition Price: 5,600mn yen
Appraisal NOI Yield: 3.8％

Logicross Osaka(60% co-beneficiary interest)

LOGIPORT Osaka Taisho(37.5% co-beneficiary interest)

MJ Logipark Osaka 1

MJ Logipark Kasugai 1

Acquisition Price: 5,874mn yen
Appraisal NOI Yield: 4.3％

Acquisition Price:①5,682mn yen ②4,802mn yen
Appraisal NOI Yield: ①4.6％ ②4.7％

Acquisition Price: 6,090mn yen
Appraisal NOI Yield: 5.0％

Acquisition Price: 13,670mn yen
Appraisal NOI Yield: 4.8％

Note: As of Aug. 31, 2020. However, the Appraisal NOI Yield for the 5 properties acquired on Sept. 1, 2020, the figures are as of June 30, 202031

Portfolio Details
Location

AcquisitionPrice(mn yen)AppraisalValue(mn yen)Appraisal
NOI Yield
(%)

Total
Leasable
Area (㎡)

Ratio
(%)

Occupancy
Rate(%)

Logicross Fukuoka Hisayama

Kasuya, Fukuoka

5,770

6,150

5.2

34,878

4.1

100.0

5.9

Multi

Logicross Atsugi

Atsugi, Kanagawa

8,440

9,200

4.5

29,895

5.9

100.0

3.5

Multi

Logicross Kobe Sanda

Kobe, Hyogo

3,900

4,230

5.1

12,844

2.7

100.0

3.2

BTS

LOGIPORT Sagamihara (49% co-beneficiary interest)

Sagamihara, Kanagawa

21,36423,5004.7

88,609

15.0

99.7

7.0

Multi

LOGIPORT Hashimoto (45% co-beneficiary interest)

Sagamihara, Kanagawa

18,20020,295

4.5

58,487

12.8

99.9

5.6

Multi

LOGIPORT Osaka Taisho (Initial 20% co-beneficiary interest)

Osaka, Osaka

5,682

6,020

4.6

21,376

4.0

99.9

2.5

Multi

MJ Logipark Funabashi 1

Funabashi, Chiba

5,400

6,560

6.5

18,232

3.8

100.0

30.8

Multi

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

7,020

4.5

28,002

4.7

100.0

7.1

Multi

MJ Logipark Kazo 1

Kazo, Saitama

1,272

1,430

5.7

7,678

0.9

100.0

14.5

Multi

MJ Logipark Osaka 1

Osaka, Osaka

6,090

6,830

5.0

39,082

4.3

100.0

12.9

Multi

MJ Logipark Fukuoka 1

Kasuya, Fukuoka

6,130

6,440

5.3

38,143

4.3

100.0

12.9

Multi

MJ Logipark Tsuchiura 1

Tsuchiura, Ibaraki

3,133

3,420

5.3

15,485

2.2

100.0

5.8

BTS

MJ Logipark Nishinomiya 1

Nishinomiya, Hyogo

2,483

2,640

5.7

13,777

1.7

100.0

29.5

BTS

MJ Logipark Kasugai 1

Kasugai, Aichi

13,67014,1004.8

57,866

9.6

100.0

3.6

Multi

MJ Industrial Park Sakai (Land)

Sakai, Osaka

5,600

5,780

3.8

87,476

3.9

100.0

-

Land

113,787

123,6154.8

551,837

80.0

99.9

8.1

-

Property Name

Properties
Held as ofthe end of
8th FP

Subtotal / Average

Properties
Acquired
during 9th
FP

Property
Property
Age
Type(years)

Logicross Osaka (60% co-beneficiary interest)

Osaka, Osaka

5,874

6,000

4.3

21,369

4.1

100.0

1.9

Multi

Logicross Nagoya Kasadera (60% co-beneficiary interest)

Nagoya, Aichi

8,705

9,540

4.9

37,353

6.1

100.0

1.6

Multi

LOGIPORT Osaka Taisho (Additional 17.5% co-beneficiary interest)

Osaka, Osaka

4,802

5,267

4.7

18,704

3.4

99.9

2.5

Multi

MJ Logipark Kazo 2

Kazo, Saitama

1,637

1,710

5.0

7,349

1.2

100.0

21.7

BTS

MJ Logipark Sendai 1

Tagajo, Miyagi

7,388

7,410

5.2

39,098

5.2

100.0

11.4

Multi

Subtotal / Average

28,40729,927

4.8

123,876

20.0

100.0

5.6

-

Total / Average

142,194

153,5424.8

675,713

100.0

99.9

7.6

-

Note: As of Aug. 31, 2020. However, the Appraisal Value and Appraisal NOI Yield for the 5 properties acquired on Sept. 1, 2020, the figures are as of June 30, 202032

Summary of Latest Appraisals(Units: Millions of yen)

Acquisition
Date

Acquisition
Price

Book
Value atend of
8th FP

Logicross Fukuoka Hisayama

Sept. 2017

5,770

Logicross Atsugi

Sept. 2018

Logicross Kobe Sanda

Property Name

Properties
Held as ofthe end of
8th FP

7th FP(Ended Feb. 29,
2020) (Note 2)

Difference

Direct cap Appraisal Direct cap
rate (%)
value
rate (%)

Unrealized
gain

Appraisalvalue

Direct cap
rate (%)

Appraisal
value

5,596

6,150

4.8

6,150

4.8

±0

±0.0

553

8,440

8,416

9,200

4.1

9,000

4.2

+200

(0.1)

783

Sept. 2018

3,900

3,891

4,230

4.6

4,140

4.7

+90

(0.1)

338

LOGIPORT Sagamihara (49% co-beneficiary interest)

Sept. 2017

21,36420,94923,5004.2

23,300

4.2

+200

±0.0

2,550

LOGIPORT Hashimoto (45% co-beneficiary interest)

Sept. 201718,20017,897

20,2954.0

19,800

4.0

+495

±0.0

2,397

LOGIPORT Osaka Taisho (Initial 20% co-beneficiary interest)

Oct. 2019

5,682

5,706

6,020

4.2

6,020

4.2

±0

±0.0

313

MJ Logipark Funabashi 1

Sept. 2016

5,400

5,239

6,560

4.9

6,560

4.9

±0

±0.0

1,320

MJ Logipark Atsugi 1

Sept. 2017

6,653

6,540

7,020

4.2

7,020

4.2

±0

±0.0

479

MJ Logipark Kazo 1

Sept. 2017

1,272

1,252

1,430

4.9

1,400

5.0

+30

(0.1)

177

MJ Logipark Osaka 1

Sept. 2017

6,090

5,978

6,830

4.3

6,830

4.3

±0

±0.0

851

MJ Logipark Fukuoka 1

Sept. 2017

6,130

5,899

6,440

4.8

6,440

4.8

±0

±0.0

540

MJ Logipark Tsuchiura 1

Sept. 2019

3,133

3,147

3,420

4.8

3,420

4.8

±0

±0.0

272

MJ Logipark Nishinomiya 1

Oct. 2019

2,483

2,571

2,640

4.8

2,640

4.8

±0

±0.0

68

MJ Logipark Kasugai 1

Oct. 201913,67013,712

14,1004.5

14,000

4.5

+100

±0.0

387

MJ Industrial Park Sakai (Land)

Oct. 2019

5,600

5,666

5,780

3.7

5,780

3.7

±0

±0.0

113

113,787

112,466

123,615-

122,500-+1,115-

11,148Subtotal / Average

Properties
Acquired
during 9thFP

8 FP(Ended Aug. 31, 2020)(Note 1)

Logicross Osaka (60% co-beneficiary interest)

Sept. 2020

5,874

-

6,000

4.1

-

-

-

-

-

Logicross Nagoya Kasadera (60% co-beneficiary interest)

Sept. 2020

8,705

-

9,540

4.4

-

-

-

-

-

LOGIPORT Osaka Taisho (Additional 17.5% co-beneficiary interest)

Sept. 2020

4,802

-

5,267

4.2

-

-

-

-

-

MJ Logipark Kazo 2

Sept. 2020

1,637

-

1,710

4.3

-

-

-

-

-

MJ Logipark Sendai 1

Sept. 2020

7,388

-

7,410

4.9

-

-

-

-

-

Subtotal / Average

28,407-29,927

-

-

-

-

-

-

Total

142,194-

153,542

-

-

-

-

-

-

Note 1: As of Aug. 31, 2020. As of June 30, 2020 for the properties acquired on Sept. 1, 2020
Note 2: As of Feb. 29, 2020

33

Statement of Income and Balance Sheet
Statement of Income
Item
Operating revenues
Operating rental revenues
Other rental revenues
Operating expenses
Expenses related to property rental business
Asset management fee(Unit：Thousands of yen)

Balance Sheet

Actual
3,342,769
3,179,904
162,864
1,612,790
1,187,243
307,446

Current assets

Cash and deposits in trust

4,389,936

Other current assets
Total fixed assets

Property and equipment

43,090Total assets

Director’s compensations

2,400

Commission paid

66,880Interest income

2,211
36

Interest on refund

2,174

Non-operating expenses

76,651

Interest expenses

68,880Borrowing related expenses

1,723

Amortization of organization expenses

6,047

Ordinary income

1,655,538

Net income

1,654,690

Unappropriated retained earnings

1,654,877

112,466,230

Investments and other assets

16,784Non-operating income

112,513,946

4,626

Administrative service fee

1,729,97858,112Intangible assets

Deferred assets

Operating income

7,952,750
3,504,701

1,150

30,886

ActualCash and deposits

Asset custody fee

Other operating expenses(Unit：Thousands of yen)

Item

Current liabilities

10,079120,476,777

2,208,467

Operating accounts payable

90,602

Short-term loans payable

950,000

Accrued expenses

419,864

Advances received

528,045

Consumption taxes payable

204,777

Other current liabilities

15,177

Non-current liabilities

36,619,412

Long-term loans payable

34,424,000

Tenant leasehold and security deposits in trust

2,195,412

Total liabilities

38,827,879

Total unitholders’ equity

81,648,898

Unitholders’ capital, net

79,994,021

Surplus1,654,877

Total net assets

81,648,898

Total liabilities and net assets

120,476,777

34

Debt ① (As of Oct. 9, 2020)
Category

Lenders

Mizuho Bank
Shortterm

Floating
rate

Borrowing Date

Repayment Date

Base rate(JBA 1-month JPY
TIBOR)+0.07000%

Sept. 1, 2020

Sept. 1, 2021

Oct. 9, 2020

Oct. 9, 2021

-

-

500

MUFG Bank

200

Base rate(JBA 1-month JPY
TIBOR)+0.09000%

2,000

-

Mizuho Bank
Development Bank of Japan
MUFG Bank

Fixed
rate

1,300

Interest Rate

Sumitomo Mitsui Trust Bank

SubtotalLongterm

Balance(mn yen)

720
1,491
430

Sumitomo Mitsui Banking Corporation

2,050

MUFG Bank

1,760

Mizuho Bank

1,330

0.32630%

Sept. 14, 2021

0.35750%

Sept. 14, 2022

0.39130%

Sept. 14, 2023

The Bank of Fukuoka

450

The Bank of Fukuoka

900

0.42880%

Sept. 14, 2024

MUFG Bank620

0.46750%

Sept. 14, 2025

MUFG Bank

710

0.50750%

Sept. 14, 2026

MUFG Bank

2,680
0.55000%

Sept. 14, 2027

Sept. 14, 2017

Sumitomo Mitsui Banking Corporation

880

Mizuho Bank

880

Sumitomo Mitsui Banking Corporation

830

0.24000%

Sept. 14, 2022

The Norinchukin Bank

800

0.39500%

Sept. 14, 2025

Shinsei Bank500

0.45380%

Mizuho Bank

830

The Bank of Fukuoka

807

Shinkin Central Bank

1,256

0.57500%

Sept. 14, 2018

Collateral

Unsecured,
Unguaranteed

Sept. 14, 2026

Sept. 14, 2028

35

Debt ② (As of Oct. 9, 2020)
Category

Lenders

Longterm

Interest Rate

Borrowing Date

Repayment Date

Sumitomo Mitsui Banking Corporation

3,000

0.25000%

Sept. 2, 2019

Sept. 2, 2023

MUFG Bank

4,000

0.49000%

Sept. 30, 2019

Sept. 30, 2029

The Norinchukin Bank

1,250

The Shinkumi Federation Bank

1,250

0.18000%

Oct. 9, 2024

0.21600%

Oct. 9, 2025

MUFG Bank

200

Mizuho Bank

2,400

The 77 Bank400

Shinsei Bank

1,250

0.24000%

Oct. 9, 2027

750

0.42000％

Oct. 10, 2028

Sumitomo Mitsui Banking Corporation

1,150

0.20000％

Sept. 1, 2024

The Shinkumi Federation Bank

1,500

The Bank of Fukuoka

Fixed
Rate

Balance(mn yen)0.26000%

300

The Norinchukin Bank

800

0.26630%

The Norinchukin Bank500

0.31250%

The Bank of Fukuoka

900

The 77 Bank

500

Mizuho Bank

1,750

0.41822%

MUFG Bank

2,000

0.46832%

500

The Yamaguchi Bank

500

Shinkin Central Bank

750

Subtotal
Total

0.42380%

Oct. 9, 2026

Unsecured,
Unguaranteed

0.20000％

The Bank of Toyama

The Yamanashi Chuo Bank

Oct. 9, 2019

Collateral

Sept. 1, 2025

Sept. 1, 2026
Sept. 1, 2020

Sept. 1, 2028
Sept. 1, 2029

Aug. 30, 2030

0.50000%
0.24130％

Oct. 9, 2020

Oct. 9, 2025

45,574----47,574

-

-

-

-

36

Unitholders Composition
Major Unitholders

Breakdown by Units

Number of
Units

2.8%
Domestic individuals ：30,567units
10.0%

and others
Financial institutions ：175,192units

21.7%

305,815
8.2%

Domestic entities：25,023units

Foreign entities：66,507units

units
57.3%

Securities Companies ：8,526units

Breakdown by Unitholders
1.5%

2.0%

2.6%

0.2%

Domestic individuals ：8,256unitholders
and others
Financial institutions ：134unitholders

8,806

Domestic entities：227unitholders

Foreign entities：172unitholders

unitholders

93.8%

Securities Companies ：17unitholders

Ratio

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

45,63714.92%

Custody Bank of Japan, Ltd. (Trust Account)

41,416

13.54%

Mitsubishi Estate Co., Ltd.

12,450

4.07%

The Nomura Trust and Banking Company, Ltd.
(Trust Account)

11,471

3.75%

Custody Bank of Japan, Ltd.
(Securities Investment Trust Account)

11,402

3.72%

The Chugoku Bank, Limited

5,986

1.95%

The Shinkumi Federation Bank

5,748

1.87%

Tokyo Century Corporation

5,619

1.83%

GOLDMAN SACHS INTERNATIONAL

5,040

1.64%

JP MORGAN CHASE BANK 385771

4,047

1.32%

148,81648.66％

Total

Same-boat Investment by MEC (as of Oct. 15, 2020)
Investment in
MEL by MEC

4.1%

Note: As of Aug. 31, 2020

37

MEMO

Disclaimer
This document is provided solely for informational purpose with regard to Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) and is not intended to serve as an inducement orsolicitation to trade in any product offered by MEL.
Purchase, sale and such of MEL’s investment units entail the risk of incurring a loss due to fluctuations of the investment unit price.
Please consult with a securities company regarding the purchase of MEL’s investment units or investment corporation bonds. Information presented on this document should not be interpreted,
unless otherwise specified, as constituting disclosure documents or asset management report required under Financial Instruments and Exchange Act or the Act on Investment Trusts andInvestment Corporations.
The information contained in this document is the best available at the time of publication, however, no assurances can be given regarding the accuracy, validity and completeness of thisinformation. Furthermore, MEL and Mitsubishi Jisho Investment Advisors, Inc. (the “Asset Management Company”) assume no responsibility for the accuracy of the data, indices and otherinformation release by third parties (including data based on real estate appraisal reports).
This document includes forward-looking statements that reflect MEL’s plans and expectations. Any information contained in this document except facts about the past and present is referred to as
such forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of MEL or the Asset Management Company in light of the information currently
available to them, and involve known and unknown risks, uncertainties and other factors, and may be affected by such factors. These factors include risks related to MEL’s internal and external
growth and risks related to the profitability per investment unit. Such risks, uncertainties and other factors may cause MEL’s actual results, performance, achievements or financial position expressedor implied by these forward-looking statements. MEL and the Asset Management Company undertake no obligation to publicly update any forward-looking statements after the date of this document.
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