2nd Fiscal Period
Asset Management Report

Mitsui Fudosan Logistics Park Inc.
6-8-7 Ginza, Chuo-ku, Tokyo

From: February 1, 2017
To: July 31, 2017

I.
1.

Asset Management Report
Overview of Asset Management(1) Management and other performance highlights of the investment corporation
2nd period(From February 1, 2017
to July 31, 2017)

1st period(From March 4, 2016
to January 31, 2017)(millions of yen)

2,548

2,383

(millions of yen)

2,548

2,383

(millions of yen)

1,367

1,075

(millions of yen)

1,071

801

Operating income(millions of yen)

1,181

1,307

Ordinary income(millions of yen)

1,152

1,111

Net income(millions of yen)

1,151

1,110

Total assets(millions of yen)

78,811

81,698(%)(3.5 )―(millions of yen)

59,44759,460(%)(0.0 )―

Interest-bearing debt

(millions of yen)

17,00020,000Unitholders’ capital, net (Note 4)(millions of yen)

58,29658,350Total number of investment units issued and outstanding(units)224,000

224,000

Net assets (Net asset value (NAV)) per unit

(yen)

265,392

265,449

Net income per unit (Note 5)

(yen)

5,141

9,017

Total amount of distribution(millions of yen)

1,197

1,164

(yen)

5,346

5,198

Of which: Distribution of earnings per unit

(yen)

5,142

4,955

Of which: Distribution in excess of retained earnings per unit

(yen)

204

243

Ratio of ordinary income to total assets (Note 6)

(%)

1.4

1.5

[Annualized] (Note 7)

(%)

2.9

2.9

Return on equity (Note 6)

(%)

1.9

1.9

[Annualized] (Note 7)

(%)

3.9

3.8

Equity ratio at end of period (Note 6)

(%)

75.4

72.8

[Period-on-period change]

(%)

2.7

―

Payout ratio (Note 6)

(%)

100.0

100.0

(days)

181

183(properties)

99

Occupancy rate at end of period (Note 9)

(%)

100.0

100.0

Depreciation and amortization (Note 10)(millions of yen)

560

553

Capital expenditures(millions of yen)

102

Net operating income (NOI) from property leasing (Note 6)(millions of yen)

2,037

2,135

Funds from operations (FFO) (Note 6)(millions of yen)

1,713

1,663

FFO per unit (Note 6)

(yen)

7,651

7,426

Ratio of interest-bearing debt to total assets at end of period(LTV ratio) (Note 6)

(%)

21.6

24.5

Fiscal period
Operating revenues
Of which: Real estate leasing business revenues
Operating expenses
Of which: Real estate leasing business expenses[Period-on-period change]
Net assets[Period-on-period change]

Distribution per unit

Other reference information
Number of days of asset management during period (Note 8)
Number of investment properties at end of period-2-(Note 1) The operating periods of the investment corporation Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”) are six-month periods every year fromFebruary 1 to the last day of July and from August 1 to the last day of January in the following year. However, the first operating period (1stfiscal period) is from MFLP-REIT’s establishment date (March 4, 2016) to the last day of January 2017.
(Note 2) Operating revenues, etc. do not include consumption tax, etc.
(Note 3) Unless otherwise specified, any numerical figures are rounded down to the nearest specified unit and percentage figures are rounded to one
decimal place.
(Note 4) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 5) “Net income per unit” is calculated by dividing net income by the daily weighted average number of investment units. Net income per unit forthe 1st fiscal period using the daily weighted average number of investment units deeming August 2, 2016, the actual starting date of asset
management, as the beginning of the fiscal period (222,525 units) is 4,988 yen.
(Note 6) The following formulas are used in calculations.
Ratio of ordinary income tototal assets

Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
Total assets at beginning of period for the 1st fiscal period is using
total assets as at the starting date of MFLP-REIT’s actual asset management period (August 2, 2016).

Return on equity

Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
Net assets at beginning of period for the 1st fiscal period is using
net assets as at the starting date of MFLP-REIT’s actual asset management period (August 2, 2016).

Equity ratio at end of period

Net assets at end of period ÷ Total assets at end of period × 100

Payout ratio

Distribution per unit (excluding distribution in excess of retained earnings) ÷ Net income per unit × 100(rounded to one decimal place)
Payout ratio for the 1st fiscal period is calculated by the following formula, because new investment units
were issued.
Total amount of distribution (excluding distribution in excess of retained earnings) ÷ Net income × 100

Net operating income (NOI)
from property leasing

Real estate leasing business revenues - Real estate leasing business expenses + Depreciation andamortization

Funds from operations (FFO)

Net income + Depreciation and amortization + Loss on retirement of non-current assets ± Gain (Loss) on
sales of real estate properties

FFO per unit

FFO ÷ Total number of investment units issued and outstanding

Ratio of interest-bearing debt tototal assets at end of period(LTV ratio)

Interest-bearing debt at end of period ÷ Total assets at end of period × 100(Note 7) For the 1st fiscal period, annualized figures are calculated based on the number of days of actual asset management of 183 days (from August 2,
2016 to January 31, 2017).
(Note 8) The calculation period of the fiscal period ended January 31, 2017 of MFLP-REIT is a period of 334 days from March 4, 2016 to January 31,
2017, but the actual asset management period was a period of 183 days from August 2, 2016.
(Note 9) “Occupancy rate at end of period” is leased area of the building expressed as a percentage of leasable area of the building of each real estate intrust on each lease agreement concluded for each property as at the end of the fiscal period, rounded to one decimal place.
(Note 10) “Depreciation and amortization” is depreciation and amortization of investment and rental property.

-3-(2) Developments in management of assets in the fiscal period under review① Brief history of the investment corporation
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March 4,2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer, and listed on the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock
Exchange, Inc. (“Tokyo Stock Exchange”) on August 2, 2016 (Securities Code: 3471). MFLP-REIT held assets totaling nine
properties amounting to a total acquisition price of 75.5 billion yen as at the end of the fiscal period under review.
② Investment environment and management performance
The Japanese economy continues to expand, backed by highly-accommodative financial conditions and the government’s pursuitof large-scale stimulus measures, as growth rates of overseas economies increase moderately. In addition, with improvement incorporate profits and business sentiment and with such improvement being across a wider range of industries, business fixed
investment is on a moderate increasing trend, and with improvement in the employment and income situation, private
consumption, too, is on a moderate increasing trend. In the logistics market, with the 3PL business (Note) specializing inoutsourced logistics services expanding in market size and the needs of 3PL providers for rental of multifunctional and highlyconvenient logistics facilities on the rise, the demand for leading-edge logistics facilities is expected to continue to increase.
Under such circumstances, MFLP-REIT, which has formed a strategic partnership in the logistics facilities business with Mitsui
Fudosan Co., Ltd. (“Mitsui Fudosan”) under which it seeks to maximize unitholder value by achieving sustainable growth as abasic policy, is maintaining favorable occupancy with 100.0% occupancy rate as at the end of the fiscal period under review for
the entire portfolio of nine properties (total acquisition price of 75,510 million yen) held through to the end of the fiscal period
under review under steady management.
(Note)“3PL business” refers to the third-party logistics business (business of providing logistics services to client companies outsourcing part or all of
their supply chain management functions).

③ Summary of fund procurement
In the fiscal period under review, of the loans, 3,000 million yen was repaid using the refund of consumption taxes corresponding
to the 1st fiscal period (fiscal period ended January 31, 2017) and other sources of funds. As a result, at the end of the fiscal
period under review, the balance of interest-bearing debt was 17,000 million yen and the ratio of interest-bearing debt to total
assets (LTV ratio) was 21.6%.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.
Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Stable-4-④ Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating revenuesof 2,548 million yen, operating income of 1,181 million yen, ordinary income of 1,152 million yen, and net income of 1,151
million yen.
In accordance with the distribution policy as defined in the Articles of Incorporation of MFLP-REIT, distributions for the fiscal
period under review shall be subject to application of special provisions for taxation of investment corporations (Article 67-15 of
the Act on Special Measures Concerning Taxation). Based on this, MFLP-REIT declared the distribution of 1,151,808,000 yen,which is the integral multiple of the total number of investment units issued and outstanding (224,000 units) of unappropriatedretained earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of 5,142 yen.
In addition, in accordance with the distribution policy as defined in the Articles of Incorporation, MFLP-REIT shall execute
distributions of cash in excess of retained earnings each fiscal period on a continuous basis in principle (Note 1). Based on this,
MFLP-REIT declared the distribution of 45 million yen, which is the amount almost equivalent to the remaining amount after
subtracting the distribution of earnings of 1,151 million yen and loss on retirement of non-current assets of 2 million yen from
1,199 million yen or 70% of FFO (Note 2), as return of capital applicable to distribution reducing unitholders’ capital for tax
purposes. Accordingly, MFLP-REIT declared distribution in excess of retained earnings per unit of 204 yen.
(Note 1) In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution per unit isexpected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units,etc., a temporary distribution in excess of retained earnings may be executed in order to standardize the amount of the distribution per unit.
However, from the perspective of continuing to maintain owned assets for a long period of time, in cases where the above distribution of cash is
executed, and where the amount equal to the equivalent of depreciation and amortization for the applicable operating period minus the amount of
the distribution in excess of retained earnings for the applicable operating period falls below the standard amount of capital for building
maintenance (Note 3), the distribution in excess of retained earnings will be decreased by a maximum amount that the distribution amount does
not fall below the total equivalent of the distribution of earnings, and this may lead to cases where distribution in excess of retained earnings will
not be executed.
In addition, from the perspective of continuing stable financial management, distributions in excess of retained earnings will not be executed incases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.
(Note 2) “FFO” is an acronym for funds from operations, and refers to the figure calculated by adding depreciation and amortization of rental properties
for the applicable operating period and loss on retirement of non-current assets to net income (excluding gain (loss) on sales of real estate
properties, etc.).
(Note 3) “Standard amount of capital for building maintenance” refers to the “amount equivalent to the capital expenditure amount noted in the Building
Condition Evaluation Report averaged over 12 years,” from which an amount representing six months of capital expenditure is determined andthen multiplied by two.
(Note 4) Appraisal LTV ratio (%) = A/B × 100 (%)
A =Total interest-bearing debt on the applicable accounts settlement date
B =Total assets as at the balance sheet as at the applicable accounts settlement date − Amount of book value after depreciation and amortizationof owned real estate as at the applicable accounts settlement date + Appraisal value of owned real estate as at the applicable accounts
settlement date-5-(3) Status of capital increase, etc.
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital, net, since
the establishment of MFLP-REIT.

Date

Description

Total number of investment units
issued and outstanding(units)Increase(Decrease)

BalanceUnitholders’ capital, net(Note 1)(millions of yen)
Increase(Decrease)

Remarks

Balance

March 4, 2016

Establishment throughprivate placement

600

600

300

300

(Note 2)June 15, 2016

Split of investment units

600

1,200

―

300

(Note 3)

August 1, 2016

Capital increase throughpublic offering

212,800

214,000

55,44555,745(Note 4)

August 29, 2016

Capital increase throughthird-party allotment

10,000224,000

2,605

58,350(Note 5)

April 21, 2017

Distribution of cash
in excess ofretained earnings(return of capital)―

224,000(54)

58,296(Note 6)

October 13, 2017

Distribution of cash
in excess ofretained earnings(return of capital)―

224,000(45)

58,250(Note 7)(Note 1) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 2) MFLP-REIT was established at an issue price of 500,000 yen per unit.
(Note 3) A two-for-one split of investment units was conducted on June 15, 2016 as the effective date.
(Note 4) New investment units were issued through public offering at an issue price of 270,000 yen (paid-in amount of 260,550 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 5) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of 260,550 yen per unit.
(Note 6) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 16, 2017, distribution of cash in excess of retained earnings(return of capital) of 243 yen per unit was declared as distribution of cash for the 1st fiscal period (fiscal period ended January 31, 2017), thepayout of which commenced on April 21, 2017.
(Note 7) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2017, distribution of cash in excess of retained
earnings (return of capital) of 204 yen per unit was declared as distribution of cash for the 2nd fiscal period (fiscal period ended July 31, 2017),
the payout of which commenced on October 13, 2017.

[Historical market price of investment securities]
The following is the high and low (closing price) of the fiscal period under review on the Tokyo Stock Exchange Real Estate
Investment Trust Securities Market on which MFLP-REIT investment securities are listed.

Fiscal period(Note)

2nd period(From February 1, 2017
to July 31, 2017)

1st period(From March 4, 2016
to January 31, 2017)High (yen)339,500

341,500

Low (yen)

303,000

286,300

MFLP-REIT investment securities were listed on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market on August 2, 2016.

-6-

(4) Distribution
The following is the distribution, etc. performance up to the fiscal period under review.
2nd period(From February 1, 2017
to July 31, 2017)

Fiscal period

1st period(From March 4, 2016
to January 31, 2017)

Total amount of unappropriated retained earnings(thousands of yen)

1,151,857

1,110,063

Retained earnings(thousands of yen)

49

143

Total amount of distribution of cash

(thousands of yen)

1,197,504

1,164,352(yen)[5,346][5,198](thousands of yen)

1,151,808

1,109,920(yen)[5,142][4,955](thousands of yen)

45,69654,432

(yen)

[204]

[243]

(thousands of yen)

―

―

(yen)

―

―

Of total amount of return of capital:
Total amount of distribution from distribution
reducing unitholders’ capital for tax purposes(thousands of yen)

45,69654,432[Of return of capital per unit:
Distribution from distribution
reducing unitholders’ capital for tax purposes]

(yen)

[204]

[243]

[Distribution per unit]
Of which: Total amount of distribution of earnings[Distribution of earnings per unit]
Of which: Total amount of return of capital[Return of capital per unit]
Of total amount of return of capital:
Total amount of distribution from allowance fortemporary difference adjustment[Of return of capital per unit:
Distribution from allowance fortemporary difference adjustment per unit](Note)For a summary of MFLP-REIT’s distribution policy and distributions for the fiscal period under review, please refer to “(2) Developments inmanagement of assets in the fiscal period under review; ④ Summary of business performance and distributions” presented earlier in thisdocument.

-7-

(5) Future management policy
MFLP-REIT has established a strategic and collaborative partnership in the logistics facilities business with Mitsui Fudosan,
under which it seeks to maximize unitholder value by focusing investments primarily in logistics facilities as a basic policy.
Based on this policy, in addition to expansion of asset size for the purpose of further stabilizing the revenue base continuing into
future periods, MFLP-REIT will perform stable and efficient financial management by addressing changes in the external andinternal environment to maximize unitholder value.
① External growth strategy
External growth based on the growth potential and extensive pipeline of Mitsui Fudosan’s logistics facilities business
MFLP-REIT aims for continuous growth by focusing on MFLP facilities (leading-edge logistics facilities with Mitsui Fudosan
quality (Note 1)), utilizing the right of first look and preferential negotiation based on “Right of first look and preferential
negotiation agreement” that was concluded with Mitsui Fudosan, which boasts high growth in the logistics facilities business.
(Note 1) Based on the principles of “harmonious coexistence” and “linking diverse values” set by the Mitsui Fudosan Group (Note 2), Mitsui Fudosan’slogistics facilities business keeps up efforts aimed at not only providing logistics facilities space but also creating value beyond conventionalboundaries. In order to achieve this, MFLP-REIT incorporates the highly-specialized and advanced management and operational know-how, etc.
accumulated in the office building business, retail properties business, etc. and the know-how, etc. accumulated through urban development andother innovative precedents as a comprehensive real estate conglomerate. It also captures the diverse needs that change with the times of thevarious bodies associated with logistics facilities (tenants, people working at the logistics facilities, and local community). MFLP-REIT refers to
the quality of logistics facilities realized through these efforts by the name “Mitsui Fudosan quality.”(Note 2) “Mitsui Fudosan Group” refers to a corporate group comprising Mitsui Fudosan, Mitsui Fudosan’s consolidated subsidiaries, and Mitsui
Fudosan’s associates accounted for using the equity method. The same shall apply hereinafter.

② Internal growth strategy
Stable management using the Platform (business foundation) and client network of the Mitsui Fudosan Group
MFLP-REIT aims for stable management by utilizing the Platform (business foundation) and client network that the Mitsui
Fudosan Group has developed over years as a comprehensive real estate conglomerate.
③ Financial strategy
Financial and cash management with an emphasis on stability and efficiency
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units and borrowings,
and at the same time it will aim to secure stable distribution levels and efficient cash management for distributions throughcontinuous distributions in excess of retained earnings (return of capital) based on cash flow (FFO).
(6) Significant subsequent events
Not applicable.
(Reference information)
MFLP-REIT acquired trust beneficiary interests in the following asset on August 4, 2017. “Acquisition price” is the trust
beneficiary interest purchase and sale transaction price stated in the trust beneficiary interest purchase and sale contract for theacquired asset, rounded down to the nearest million yen. The transaction price does not include consumption tax and local
consumption tax or the various costs required in the acquisition. The prorated figure equivalent to the quasi co-ownership interestin the property that MFLP-REIT has acquired (40%) is shown.
Category

Property no.

Property nameLocation

Acquisition price (millions of yen)

Logistics facilities

L-9

MFLP Komaki

Komaki, Aichi

3,249(40% quasi co-ownership interest)-8-2. Overview of the Investment Corporation(1) Status of investments in capital
2nd period(July 31, 2017)

Fiscal period

1st period(January 31, 2017)

Total number of investment units authorized(units)8,000,000

8,000,000

Total number of investment units issued and outstanding(units)224,000

224,000(millions of yen)

58,29658,350(unitholders)

5,698

6,201

Unitholders’ capital, net (Note)
Number of unitholders(Note)“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(2) Major unitholders
Of the unitholders as of July 31, 2017, the following are the top ten unitholders in terms of investment unit-holding ratio.
Number ofinvestment
units
owned
(units)Number of investment units owned
expressed as a percentage of
total number of investment units
issued and outstanding(%)

Japan Trustee Services Bank, Ltd. (trust account)

37,516

16.74

Mitsui Fudosan Co., Ltd.

28,90012.90

The Master Trust Bank of Japan, Ltd. (trust account)

26,885

12.00

Trust & Custody Services Bank, Ltd. (securities investment trust account)

17,537

7.82

The Nomura Trust and Banking Co., Ltd. (investment trust account)

8,574

3.82

JPMorgan Chase Bank 385632

8,027

3.58

Nomura Bank (Luxembourg) S.A.

4,843

2.16

Northern Trust Co. (AVFC)
RE Colonial First State Investments Limited

3,949

1.76

The Bank of Kyoto, Ltd.

3,700

1.65

The Chugoku Bank, Limited

3,696

1.65

143,627

64.11

Name

Total
(Note)“Number of investment units owned expressed as a percentage of total number of investment units issued and outstanding” is rounded down to
two decimal places.

-9-(3) Matters concerning directors, etc.
① Executive director, supervisory directors and independent auditor in the fiscal period under review

Position

Executive director

Name

Key concurrently-held position, etc.

Total amount ofcompensation
by position
for the applicable
operating period(thousands of yen)

―

2,400

Izuru Goto

Attorney, City-Yuwa Partners
Corporate Auditor (part-time), Tobishima Corporation

1,500

Tadao Toyoshima

Audit & Supervisory Board Member (part-time),
Square Enix Holdings Co., Ltd.

1,500

Masayuki Isobe

Supervisory director―

Independent auditor KPMG AZSA LLC

9,100(Note 1) None of the executive director or supervisory directors own MFLP-REIT investment units in their own name or in the name of another.
(Note 2) Supervisory directors may be directors of other corporations other than those stated above, but none of them, including those above, have vested
interest in MFLP-REIT.
(Note 3) The amount for the independent auditor represents the amount payable as compensation for the audit for the fiscal period under review, plus thecompensation for the audit of English financial statements (2,100 thousand yen).

② Policy for deciding on dismissal and refusal of reappointment of the independent auditor
Decisions are made at a meeting of the Board of Directors of MFLP-REIT by taking into account the various circumstances in acomprehensive manner.
(4) Asset management company, custodian, and general administrators
The following are the asset management company, custodian and general administrators as of July 31, 2017.
Entrustment category

Name

Asset management company

Mitsui Fudosan Logistics REIT Management Co., Ltd.

Custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (transfer agent)

Sumitomo Mitsui Trust Bank, Limited

General administrator (institutional)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting)

Heiseikaikeisha Tax Corporation- 10 -

3. Status of Assets under Management of the Investment Corporation(1) Composition of assets of the investment corporation
2nd period(As of July 31, 2017)
Type of asset

Use

Geographic classification(Note 1)

1st period(As of January 31, 2017)

Total amount held(millions of yen)
(Note 2)

As a percentage of
total assets(%)(Note 3)

Total amount held(millions of yen)
(Note 2)

As a percentage of
total assets(%)(Note 3)

Tokyo metropolitan area

68,294

86.7

68,782

84.2

Kansai area

4,447

5.6

4,489

5.5

Other areas

―

―

―

―

Subtotal

72,742

92.3

73,272

89.7

Tokyo metropolitan area

2,179

2.8

2,200

2.7

Kansai area

―

―

―

―

Other areas

―

―

―

―

Subtotal

2,179

2.8

2,200

2.7

Real estate in trust total

74,92195.1

75,472

92.4

Deposits and other assets

3,890

4.9

6,225

7.6

Total assets

78,811

100.0

81,698100.0

Logistics
facilities

Real estatein trust(Note 4)(Note 5)
Industrial
real estate(Note 6)(Note 1) “Tokyo metropolitan area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture, Saitama Prefecture and Ibaraki Prefecture.
“Kansai area” refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, Nara Prefecture and Shiga Prefecture.
(Note 2) “Total amount held” is based on the carrying amount (for real estate in trust, the book value after depreciation and amortization) as of eachaccounts settlement date, rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is rounded to one decimal place.
(Note 4) “Real estate in trust” refers to real estate of trust beneficiary interests that have mainly real estate in trust.
(Note 5) For real estate in trust, the amount does not include the amount of construction in progress in trust.
(Note 6) “Industrial real estate” refers to data centers, communications facilities, research facilities, factories, supply and treatment facilities, and other realestate serving as corporate bases. The same shall apply hereinafter.

- 11 -

(2) Major assets held
The following summarizes the assets held by MFLP-REIT as of July 31, 2017.

Name ofreal estate, etc.

Leasable area
Book value(m²)(millions of yen)
(Note 1)

Leased area(m²)
(Note 2)

As a percentage
of total
Occupancy rate
real estate(%)
leasing business(Note 3)revenues(%)

Main use

GLP/MFLP
Ichikawa Shiohama(Note 4)

15,44350,81350,813

100.0

19.1

Logistics
facilities

MFLP Kuki

12,36367,92567,925

100.0

18.8

Logistics
facilities

MFLP
Yokohama Daikoku(Note 4)10,00547,92947,929

100.0

12.8

Logistics
facilities

MFLP Yashio

9,581

39,692

39,692100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi

7,743

40,95840,958100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP
Funabashi Nishiura

6,908

31,03431,034100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Kashiwa

6,249

31,291

31,291100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Sakai(Note 4)

4,447

22,42922,429100.0

6.6

Logistics
facilities

MFIP Inzai(Note 4)2,179

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Industrial
real estate

Total

74,921

Not disclosed(Note 5)

Not disclosed(Note 5)

100.0

100.0

(Note 1) “Leasable area” is the floor area available for leasing of the building of each real estate in trust as of July 31, 2017 and is the sum total of the floorarea deemed to be leasable based on the lease agreement or building drawing, etc., rounded down to the nearest whole number.
(Note 2) “Leased area” is the sum total of leased area of the building on each lease agreement for each real estate in trust as of July 31, 2017, rounded
down to the nearest whole number. If a pass-through master lease agreement has been concluded for the real estate in trust, it is the sum total of
the floor area actually contracted for leasing and leased to end-tenants, rounded down to the nearest whole number.
(Note 3) “Occupancy rate” is leased area of the building expressed as a percentage of leasable area of the building of each real estate in trust on each leaseagreement concluded for each property as of July 31, 2017, rounded to one decimal place.
(Note 4) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFIP Inzai,” “Leasable area” and “Leased area” arethe prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT has acquired (50%, 50%, 20% and 20%,
respectively).
(Note 5) Not disclosed, because consent has not been obtained from the lessee.

- 12 -

(3) Real estate assets in portfolio
The following summarizes the assets held by MFLP-REIT as of July 31, 2017.

Name ofreal estate, etc.

Location

Form ofownership

Leasable area(m²)
(Note 1)

Appraisal value
Book value
at end of period
at end of(millions of yen)period(Note 2)
(millions of yen)

GLP/MFLP
Ichikawa Shiohama(Note 3)

1-6-3 Shiohama,Ichikawa-shi, Chiba

Real estate
trust beneficiaryinterests

50,813

16,60015,443

MFLP Kuki

1-10 Kiyokucho,
Kuki-shi, Saitama

Real estate
trust beneficiaryinterests

67,925

13,40012,363

MFLP
Yokohama Daikoku(Note 3)43-1 Daikokucho,
Real estate
Tsurumi-ku, Yokohama-shi, trust beneficiary
Kanagawa
interests

47,92910,50010,005MFLP Yashio

99-1 Tsubutakita,
Minamiushiroya,
Yashio-shi, Saitama

Real estate
trust beneficiaryinterests

39,692

10,4009,581

MFLP Atsugi

4021-1 Sakuradai, Nakatsu, Real estate
Aikawamachi, Aiko-gun,trust beneficiary
Kanagawa
interests

40,958

8,350

7,743

MFLP
Funabashi Nishiura

3-10-13 Nishiura,
Funabashi-shi, Chiba

Real estate
trust beneficiaryinterests

31,034

7,490

6,908

MFLP Kashiwa

259-1 Mukaiwari,
Aotashindentobichi,
Kashiwa-shi, Chiba

Real estate
trust beneficiaryinterests

31,291

6,710

6,249

MFLP Sakai(Note 3)

Real estate
1-171 Chikkoyawatamachi,
trust beneficiary
Sakai-ku, Sakai-shi, Osakainterests

22,429

4,930

4,447

Logistics facilities subtotal

332,074

78,38072,742Not disclosed(Note 4)

2,440

2,179

Industrial real estate subtotal

Not disclosed(Note 4)

2,440

2,179

Total

Not disclosed(Note 4)80,82074,921MFIP Inzai(Note 3)2-101-14 Izumino,
Inzai-shi, Chiba

Real estate
trust beneficiaryinterests(Note 1) “Leasable area” is the floor area available for leasing of the building of each real estate in trust as of July 31, 2017 and is the sum total of the floorarea deemed to be leasable based on the lease agreement or building drawing, etc., rounded down to the nearest whole number.
(Note 2) “Appraisal value at end of period” is the appraisal value as of the valuation date of July 31, 2017 by real estate appraisers based on the asset
valuation methods and standards set forth in the Articles of Incorporation of MFLP-REIT and the rules and requirements imposed by The
Investment Trusts Association, Japan. The appraisal of each asset held is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal
Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. and CBRE K.K.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFIP Inzai,” “Leasable area,” “Appraisal value at endof period” and “Book value at end of period” are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLPREIT has acquired (50%, 50%, 20% and 20%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 13 -

The following is the status of leasing of real estate, etc. held by MFLP-REIT.
2nd period(From February 1, 2017 to July 31, 2017)

Name of real estate, etc.

Total
number oftenants[at end of
period](Note 1)

Occupancy
rate[at end of
period](%)(Note 2)

1st period(From March 4, 2016 to January 31, 2017)

Real estate
As aleasing
percentage ofbusinesstotal
revenues
real estate[duringleasing
period]business(millions ofrevenues
yen)
(%)

Total
number oftenants[at end of
period](Note 1)

Occupancy
rate[at end of
period](%)(Note 2)

Real estate
As aleasing
percentage ofbusinesstotal
revenues
real estate[duringleasing
period]business(millions ofrevenuesyen)(%)

GLP/MFLP
Ichikawa Shiohama(Note 3)

5

100.0

487

19.1

5

100.0

383

16.1

MFLP Kuki

3

100.0

478

18.8

3

100.0

462

19.4

MFLP Yokohama Daikoku(Note 3)

5

100.0

327

12.8

5

100.0

322

13.5

MFLP Yashio

2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Atsugi

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Funabashi Nishiura

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Kashiwa

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Sakai(Note 3)

5

100.0

6.6

5

100.0

23

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

23

100.0

Logistics facilities
subtotal
MFIP Inzai(Note 3)

169

164

6.9

Not disclosed Not disclosed(Note 4)(Note 4)Not disclosed(Note 4)Not disclosed Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)(Note 4)Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)

Industrial real estate
subtotal

Not disclosed(Note 4)Not disclosed Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)(Note 4)Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)Total

Not disclosed(Note 4)

100.0

2,548

100.0

Not disclosed(Note 4)

100.0

2,383

100.0

(Note 1) “Total number of tenants” is the number of tenants on each lease agreement concluded for each property as of each accounts settlement date. If apass-through master lease agreement has been concluded for the property, it is the total number of end-tenants.
(Note 2) “Occupancy rate” is leased area of the building expressed as a percentage of leasable area of the building of each real estate in trust on each leaseagreement concluded for each property as of each accounts settlement date, rounded to one decimal place.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFIP Inzai,” “Real estate leasing business revenues”
and “As a percentage of total real estate leasing business revenues” are the prorated figures equivalent to the quasi co-ownership interest in each
property that MFLP-REIT has acquired (50%, 50%, 20% and 20%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 14 -

(4) Schedule of renewable energy power generation facilities
Not applicable.
(5) Schedule of rights to operate public facilities, etc.
Not applicable.
(6) Status of other assets
Trust beneficiary interests that have real estate as the main assets in trust, etc. are listed all at once in “(3) Real estate assets in
portfolio” presented earlier in this document, and there are no main specified assets invested by MFLP-REIT other than thoselisted there in the portfolio as of July 31, 2017.
① Itemization of investment securities portfolio assets
Not applicable.
② Table of status of contract amount, etc. and fair value of specified transactions
Not applicable.
(7) Status of holding of assets by country and region
Not applicable, because there are none in countries and regions other than Japan.

- 15 -

4. Capital Expenditures of Real Estate Held(1) Schedule of capital expenditures
Of the capital expenditures accompanying renovations, etc. currently planned for real estate and real estate in trust of real estate
trust beneficiary interests held by MFLP-REIT, the following are the major planned amounts. There may be cases where theplanned construction amount ends up being in part expensed in accounting instead of being capitalized.

Name ofreal estate, etc.

Planned construction amount(millions of yen)
(Note 1)
Location

PurposeScheduled period
Total amountAmount paid Total amountduring period already paid

MFLP Kuki

Kuki,
SaitamaReplacement ofcatch basin at
From October 2017
west entrance, and repair
to October 2017of surrounding pavement
and steps

MFLP
Yokohama Daikoku

Yokohama,
Kanagawa

Switching to LED incommon areas

From October 2017
to December 2017

8

―

―

MFLP Kuki

Kuki,
SaitamaReplacement of movableramp parts

From May 2018
to May 2018

1

―

―

MFLP
Yokohama Daikoku

Yokohama,
Kanagawa

Replacement ofwater meter

From May 2018
to May 2018

1

―

―

1

―

―

(Note 1) For “MFLP Yokohama Daikoku,” “Planned construction amount” are the prorated figures equivalent to the quasi co-ownership interest in each
property that MFLP-REIT holds (50%).
(Note 2) Rounded down to the nearest million yen.

(2) Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the fiscal period
under review for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period under review amounted to 10
million yen and, other than this, there was 41 million yen in repair expenses categorized as operating expenses in the fiscal period
under review.
Construction amount(millions of yen)
(Note 1)Name ofreal estate, etc.

Location

PurposeMFLP
Yokohama Daikoku

Yokohama, Kanagawa

Switching to LED incommon areas

From May 2017
to July 2017

7

MFLP Kuki

Kuki, Saitama

Replanting of shrubs

From July 2017
to July 2017

1

Other capital expenditures

Period

2
Total

10

(Note 1) For “MFLP Yokohama Daikoku,” “Construction amount” are the prorated figures equivalent to the quasi co-ownership interest in each property
that MFLP-REIT holds (50%).
(Note 2) Rounded down to the nearest million yen.

(3) Cash reserves for long-term repair and maintenance plans
Not applicable.

- 16 -

5. Status of Expenses and Liabilities(1) Details of expenses related to asset management(Thousands of yen)Item

2nd period(From February 1, 2017
to July 31, 2017)

Asset management fee (Note)

1st period(From March 4, 2016
to January 31, 2017)
223,258

219,777

Asset custody fee

4,084

4,979

Administrative service fees

15,1808,958

Directors’ compensation

5,400

9,900

Audit fee

9,100

3,000

Other expenses

38,592

27,668295,617274,285

Total(Note)For the 1st fiscal period, other than the amount shown above for “Asset management fee,” there was a management fee for property acquisitions
included in the book value of real estate, etc. individually (188,775 thousand yen).

- 17 -

Short-term loans

Category(2) Debt financing status
The following is the status of loans as of July 31, 2017.

LenderBorrowingdate

Balance
Balance
Averageat beginningat endinterest rate Maturity date Repaymentof periodof period(%)(Note 2)
method(millions of yen) (millions of yen)
(Note 1)Use

Remarks

Sumitomo Mitsui
Banking Corporation

Aug. 31,
2016

1,000

―

0.1000Feb. 28,
2017

Bulletrepayment(Note 3)

Sumitomo Mitsui Trust
Bank, Limited

Jan. 31,
2017

1,000

―

0.1000Feb. 28,
2017

Bulletrepayment(Note 3)

Mizuho Bank, Ltd.

Jan. 31,
2017

1,000

―

0.1000Feb. 28,
2017

Bulletrepayment(Note 3)3,000―

Sept. 1,
2016

2,000

2,000

0.2713

Sept. 1,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.4213

Sept. 1,
2026

Bulletrepayment(Note 3)

Sept. 1,
2016

2,000

2,000

0.3050

Sept. 1,
2023

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.3813

Sept. 1,
2025

Bulletrepayment(Note 3)

Aug. 2,
2016

400

400

0.1425

Aug. 2,2022

Bulletrepayment(Note 3)

Aug. 2,
2016

1,700

1,700

0.2113

Aug. 2,2024

Bulletrepayment(Note 3)

Unsecured

Sept. 1,
2016

2,200

2,200

0.1826

Mar. 1,
2023

Bulletrepayment(Note 3)

Nonguaranteed

Sept. 1,
2016

600

600

0.3237Mar. 1,
2024

Bulletrepayment(Note 3)

Sept. 1,
2016

700

700

0.3425

Sept. 2,2024

Bulletrepayment(Note 3)Development Bank ofJapan Inc.

Aug. 2,
2016

2,100

2,100

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

The Bank of Fukuoka,
Ltd.

Aug. 2,
2016

1,300

1,300

0.2169Feb. 2,2024

Bulletrepayment(Note 3)

Nippon Life Insurance
Company

Aug. 2,
2016

1,000

1,000

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)17,00017,00020,00017,000Unsecured

Subtotal

Sumitomo Mitsui
Banking Corporation

Sumitomo Mitsui Trust
Bank, Limited

Nonguaranteed

Long-term loans

Mizuho Bank, Ltd.

Mitsubishi UFJ Trustand Banking
Corporation

Mizuho Trust &Banking Co., Ltd.

Subtotal
Total(Note 1) “Average interest rate” is the weighted average interest rate during the period, rounded to four decimal places.
(Note 2) If the “Maturity date” is not a business day, it becomes the following business day.
(Note 3) “Use of funds” is for purchase of real estate or real estate trust beneficiary interests, refinancing of loans, working capital, etc.

(3) Status of investment corporation bonds
Not applicable.
(4) Status of short-term investment corporation bonds
Not applicable.
(5) Status of subscription rights to investment units
Not applicable.

- 18 -

6. Status of Purchase and Sale during Period(1) Status, etc. of purchase and sale of real estate, etc. and asset-backed securities, etc. and infrastructure assets, etc. andinfrastructure-related assets
Not applicable.
(2) Status, etc. of purchases and sales of other assets
Main assets other than the real estate, etc. and asset-backed securities, etc. and infrastructure assets, etc. and infrastructure-related
assets above are generally bank deposits or bank deposits within assets in trust.
(3) Investigation into value, etc. of specified assets① Real estate, etc.
Not applicable.
② Other
Not applicable.
(4) Status of transactions with stakeholders, etc.
① Status of purchase and sale transactions with stakeholders, etc.
Not applicable.
② Amount of commission fee, etc.

Category

Total amount ofcommission fee, etc.
(A)(thousands of yen)

Logistics management fee

62,060

Building management fee

82,672(Note)Breakdown of transactions with stakeholders, etc.
Payee

As a percentage
Amount paidof total amount
(B)
(B/A)
(thousands of yen)

Mitsui Fudosan Co., Ltd.

49,574

79.9%

Mitsui Fudosan Facilities Co., Ltd.

54,49065.9%

Mitsui Fudosan Facilities West Co., Ltd.

6,259

7.6%

“Stakeholders, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26,
Paragraph 1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts
Association, Japan.

(5) Status, etc. of transactions with the asset management company pertaining to operations of concurrent business engaged
in by the asset management company
Not applicable, because the asset management company (Mitsui Fudosan Logistics REIT Management Co., Ltd.) does not engage
in any type I financial instruments business, type II financial instruments business, real estate brokerage or specified joint realestate venture as a concurrent business.

- 19 -

7. Accounting(1) Status, etc. of assets, liabilities, principal, and income and loss
For the status, etc. of assets, liabilities, principal, and income and loss, please refer to “Balance Sheets,” “Statements of Income,”“Statements of Changes in Net Assets,” “Notes to Financial Statements” and “Distributions” presented later in this document.
(2) Change in method of calculation of depreciation and amortization
Not applicable.
(3) Change in method of valuation of real estate, etc. and infrastructure assets, etc.
Not applicable.
(4) Status, etc. of beneficiary certificates, etc. of investment trust established by itself
Not applicable

8.

Other

(1) Notice① General meeting of unitholders
Not applicable.
② Board of directors of the investment corporation
There are no matters concerning major contract conclusions and changes approved at meetings of the Board of Directors of
MFLP-REIT in the fiscal period under review.
(2) Rounding of monetary and percentage figures
Unless otherwise specified, monetary figures are rounded down and percentage figures are rounded to the nearest specified unit inthis document.
(3) Disclosure pertaining to corporation holding overseas real estate
Not applicable.
(4) Disclosure pertaining to real estate of corporation holding overseas real estate
Not applicable.

- 20 -

Mitsui Fudosan Logistics Park Inc.
Balance Sheets
As of July 31, 2017 and January 31, 2017

AssetsCurrent assets
Cash and deposits (Notes 3 and 4)
Cash and deposits in trust (Notes 3 and 4)
Operating accounts receivable (Note 12)
Prepaid expenses
Deferred tax assets (Note 9)
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property and equipment (Note 5)
Buildings in trust
Structures in trust
Machinery and equipment in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Less: accumulated depreciation
Total property and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

2nd period(As of July 31, 2017)(Thousands of yen)
1st period(As of January 31, 2017)

¥

¥

¥

- 21 -

2,365,427
1,415,316
71,023
3,539
10
5,094
3,860,412

1,066,015
2,018,416
35,8117,511
27
3,076,364
317
6,204,464

37,113,032
1,159,225
1,813,671
951
35,948,155
9,205(1,113,463)
74,930,778

37,104,731
1,159,158
1,813,671
640
35,948,155(553,487)
75,472,868

9,356
9,356

10,476
10,476

10,0001,050
11,05074,951,185
78,811,597

10,0001,050
11,05075,494,395
81,698,860¥

Mitsui Fudosan Logistics Park Inc.
Balance Sheets
As of July 31, 2017 and January 31, 2017

Liabilities
Current liabilities
Operating accounts payable (Note 12)
Short-term loans payable (Notes 4 and 7)
Accounts payable (Note 12)
Accrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable (Notes 4 and 7)
Tenant leasehold and security deposits in trust (Note 4)
Total non-current liabilities
Total liabilities
Net assets (Notes 6 and 10)
Unitholders’ equity
Unitholders’ capital
Units authorized: 8,000,000 units as of July 31, 2017 andJanuary 31, 2017
Units issued and outstanding: 224,000 units as of July 31,2017 and January 31, 2017
Deduction from unitholders’ capital
Unitholders’ capital (net)
Retained earnings
Total unitholders’ equity
Total net assets (Notes 6 and 10)
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

- 22 -

2nd period(As of July 31, 2017)(Thousands of yen)
1st period(As of January 31, 2017)

¥

¥

¥

58,706
272,088
133
822
159,248
421,950160
913,110

131,461
3,000,000
262,266
133
1,584
400,97282
3,796,501

17,000,000
1,450,521
18,450,521
19,363,632

17,000,000
1,441,755
18,441,755
22,238,257

58,350,540

58,350,540(54,432)
58,296,108
1,151,857
59,447,965
59,447,965
78,811,597

58,350,540
1,110,063
59,460,603
59,460,603
81,698,860¥

Mitsui Fudosan Logistics Park Inc.
Statements of Income
For the Fiscal Periods Ended July 31, 2017 and January 31, 2017
2nd period(From February 1, 2017
to July 31, 2017)(Thousands of yen)
1st period(From March 4, 2016
to January 31, 2017)¥¥

Operating revenues (Note 12)
Property-related revenues (Note 8)
Other property-related revenues (Note 8)
Total operating revenues
Operating expenses (Note 12)
Property-related expenses (Note 8)
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensation
Audit fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Interest on refund
Other
Total non-operating income
Non-operating expenses
Interest expense
Organization expenses (Note 12)
Investment unit issuance expenses
Offering costs associated with issuance of investment units
Borrowing related expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes (Note 9)
Net income (Note 10)
Retained earnings brought forward
Unappropriated retained earnings (Note 6)¥¥

2,456,809
91,8122,548,622
1,071,529
223,258
4,084
15,1805,400
9,100
38,592
1,367,146
1,181,476

801,073
219,777
4,979
8,958
9,900
3,000
27,6681,075,359
1,307,860

17
1,862
105
1,984

6
0
6

24,823
4,016
2,063
30,904
1,152,556
825
16
841
1,151,714
143
1,151,857

24,01556,34847,58356,331
6,465
5,502
196,246
1,111,620
1,585
(27)
1,557
1,110,063
1,110,063

2nd period(From February 1, 2017
to July 31, 2017)¥
5,141

Net income per unit (Note 10)

The accompanying notes are an integral part of these financial statements.

- 23 -

2,308,592
74,6272,383,220

¥
¥

(Yen)
1st period(From March 4, 2016
to January 31, 2017)¥
9,017

Mitsui Fudosan Logistics Park Inc.
Statements of Changes in Net Assets
For the Fiscal Periods Ended July 31, 2017 and January 31, 2017
Unitholders’ capital (Thousands of yen)
Number ofunits

Balance as of March 4, 2016
Issuance of new units forestablishment as of March
4, 2016
Unit split as of June 15,
2016
Issuance of new units
through public offering asof August 1, 2016
Issuance of new units
through allocation to athird party as of August29, 2016
Net income
Balance as of January 31,
2017
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of July 31, 2017

Unitholders’capital-¥-Deduction fromunitholders’capital¥-Retainedearnings(Thousandsof yen)Unitholders’capital (net)
¥

- ¥

-

Total net assets(Thousands of
yen)
¥

-

600

300,000-

300,000-

300,000

600

-

-

-

-

-

212,800

55,445,040-

55,445,040-

55,445,040

10,0002,605,500-

2,605,500-

2,605,500

-

-

-

-

1,110,063

1,110,063

224,000¥ 58,350,540-¥ 58,350,540 ¥ 1,110,063¥ 59,460,603--(54,432)(54,432)-(54,432)

-

-

-

-

(1,109,920)(1,109,920)--

1,151,714

1,151,714¥ 58,296,108 ¥ 1,151,857¥ 59,447,965--

224,000¥ 58,350,540¥¥(54,432)

The accompanying notes are an integral part of these financial statements.

- 24 -

Mitsui Fudosan Logistics Park Inc.
Statements of Cash Flows
For the Fiscal Periods Ended July 31, 2017 and January 31, 2017

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Loss on retirement of non-current assets
Interest income
Interest expense
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expense paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property and equipment in trust
Purchase of intangible assets
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Payments for lease and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment units
Payment of distribution of earnings
Payment of distribution in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 3)
The accompanying notes are an integral part of these financial statements.

- 25 -

2nd period(From February 1, 2017
to July 31, 2017)(Thousands of yen)
1st period(From March 4, 2016
to January 31, 2017)

¥

¥

¥

1,152,556
561,193
2,063(17)
24,823(35,211)
3,972
3,076,364
159,248
4,051(672)
20,977(4,698)4,964,652
17(24,823)(1,587)
4,938,258

1,111,620
554,211(6)
24,015(35,811)(7,511)(3,076,364)
44,883
262,266
400,972(234)(721,959)
6(23,881)0(745,835)(87,647)
(510)
9,275
(78,882)(75,939,779)(11,200)(11,743)
1,453,499(10,000)(1,050)(74,520,273)

3,000,000(6,000,000)(1,108,705)(54,357)(4,163,062)
696,3133,084,431
3,780,744

13,200,000(10,200,000)
17,000,000
58,350,540
78,350,540
3,084,431
3,084,431¥

Mitsui Fudosan Logistics Park Inc.
Notes to Financial Statements
For the Fiscal Periods Ended July 31, 2017 and January 31, 2017
1.

Organization and Basis of Presentationa. Organization
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March 4,2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer with investments in capital of 300 million yen (600 investment units). Registration with the Kanto
Local Finance Bureau of the Ministry of Finance of Japan was completed on March 25, 2016. The investment units were listed on
the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock Exchange, Inc. on August 2, 2016 (Securities
Code: 3471).
MFLP-REIT started acquisition of properties on August 2, 2016. With Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as a sponsor,
MFLP-REIT invests primarily in logistics facilities with a particular focus on MFLP facilities, that is, leading-edge logistics
facilities with Mitsui Fudosan quality. This focus has been chosen in light of MFLP-REIT’s goal of establishing a portfolio thatemphasizes location, quality and balance.
As of July 31, 2017, MFLP-REIT held nine properties with the total acquisition price of 75,510 million yen.
b. Basis of presentation
The accompanying financial statements of MFLP-REIT have been prepared in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial Instruments and Exchange Act of Japan, theInvestment Trust Act and the related regulations, which are different in certain respects as to application and disclosure
requirements of the International Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of MFLP-REIT, which wereprepared in accordance with Japanese GAAP and were presented in its Asset Management Report published for Japanese
investors. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to thefinancial statements issued domestically in order to present them in a format which is more familiar to readers outside Japan.
MFLP-REIT’s fiscal period is a six month period, which ends at the end of January and July of each year. However, theaccompanying financial statements for the fiscal period ended January 31, 2017 have been prepared and presented for the periodof 334 days from March 4, 2016 (establishment date) to January 31, 2017, as it is the first fiscal period since its establishment.
MFLP-REIT does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying financial
statements and the notes thereto, as permitted by the Financial Instruments and Exchange Act of Japan. As a result, the totals
shown in the financial statements and notes thereto do not necessarily agree with the sum of the individual amounts.

2.

Summary of Significant Accounting Policies
a. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and cash in trust, readily-available bank deposits, readily-available bankdeposits in trust and short-term investments that are readily convertible to cash and realizable with a maturity of three months orless when purchased and that are subject to an insignificant risk of changes in value.

- 26 -

b. Property and equipment
Property and equipment (including those in trust) are stated at cost, which includes the original purchase price and relatedacquisition costs and expenses. Depreciation of property and equipment is calculated using the straight-line method over theestimated useful lives. The useful lives of principal property and equipment are as follows:
Buildings:
Structures:

2 to 59 years
9 to 20 years

Machinery and equipment:
Tools, furniture and fixtures:

14 to 16 years
5 to 15 years

c. Intangible assets
Intangible assets are stated at cost, which includes the original purchase price and related acquisition costs and expenses.
Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives.
d. Organization expenses
Organization expenses are recorded as expenses when incurred.
e. Investment unit issuance expenses
Investment unit issuance expenses are recorded as expenses when incurred.
f. Taxes on property and equipment
With respect to property taxes, city planning taxes and depreciable asset taxes imposed on real estate properties or trust
beneficiary interests in real estate, of the tax amount assessed and determined, the amount corresponding to the relevant fiscal
period is accounted for as property-related expenses.
Of the amounts paid for the acquisitions of real estate properties or trust beneficiary interests in real estate, the amount equivalent
to property-related taxes is capitalized as part of the acquisition cost of the relevant property instead of being charged as expenses.
Capitalized property-related taxes amounted to none and 190,271 thousand yen for the fiscal periods ended July 31, 2017 andJanuary 31, 2017, respectively.
g. Trust beneficiary interests in real estate
As to trust beneficiary interests in real estate that have real estate properties as assets in trust, all accounts of assets and liabilities
within assets in trust as well as all income generated and expenses incurred from assets in trust are recorded in the relevantbalance sheet and statement of income account items.
The following material items of the assets in trust recorded in the relevant account items are separately presented in theaccompanying balance sheets.
(1) Cash and deposits in trust(2) Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust and land intrust(3) Construction in progress in trust(4) Tenant leasehold and security deposits in trusth. Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.
3.

Cash and Cash Equivalents
Reconciliation between cash and cash equivalents and accounts and amounts in the balance sheets is as follows:(Thousands of yen)
2nd period(As of July 31, 2017)

1st period(As of January 31, 2017)¥¥

Cash and deposits
Cash and deposits in trust

2,365,427
1,415,316

Cash and cash equivalents¥- 27 -

3,780,744

1,066,015
2,018,416¥

3,084,431

4.

Financial Instruments
a. Status of financial instruments(1) Policy for financial instruments
MFLP-REIT procures funds for acquisition of assets or repayment of debts mainly through issuance of investment units, loans
or issuance of investment corporation bonds.
MFLP-REIT generally invests surplus funds in deposits considering safety of the investments although surplus funds could be
invested in securities and monetary claims as a matter of policy.
MFLP-REIT enters into derivative transactions to a limited extent for the purpose of avoiding the risk of interest rate
fluctuation and other risks. MFLP-REIT does not engage in speculative transactions.
(2) Financial instruments, their associated risks and risk management system
Deposits are used for investment of MFLP-REIT’s surplus funds, and are exposed to credit risk such as failure of the financial
institutions holding the deposits. MFLP-REIT limits the credit risk by restricting the deposit periods to short terms andselecting financial institutions that have high credit ratings.
Proceeds from loans are used mainly to acquire real estate properties or refinance existing loans. While these loans are
exposed to liquidity risk at the time of repayment, MFLP-REIT mitigates the liquidity risk by diversifying its means of fundprocurement and lending financial institutions, dispersing repayment dates, establishing commitment lines and securingliquidity on hand, and also controls liquidity risk by preparing monthly fund management plans.
In addition, loans with floating interest rates are exposed to the risk of interest rate rising. MFLP-REIT limits the impact ofinterest rate rises on its operations by keeping the ratio of interest-bearing debt to total assets at a low level and maintaining
the ratio of fixed-rate long-term loans at a high level.
Tenant leasehold and security deposits are deposits from tenants, and are exposed to liquidity risk at the time the tenants
vacate the properties. MFLP-REIT controls the liquidity risk by preparing monthly fund management plans.
(3) Supplementary explanation regarding fair values of financial instruments
The fair value of financial instruments is based on their observable market value, if available. When there is no observable
market value available, fair value is based on a price that is reasonably estimated. Since variable factors are also reflected inestimating the fair value, different assumptions and factors could result in a different value.
b. Estimated fair value of financial instruments
The carrying amounts, fair values and their differences as of July 31, 2017 and January 31, 2017 are as follows. Financial
instruments for which it is extremely difficult to determine the fair value are excluded from the following tables (Note 2 below).
(Thousands of yen)
2nd period (As of July 31, 2017)

Carrying amount(1) Cash and deposits¥(2) Cash and deposits in trust

2,365,427

Fair value¥

1,415,316

Total assets¥

3,780,744¥

Difference

2,365,427-

1,415,316-

3,780,744-(4) Long-term loans payable

17,000,000

16,833,863¥ (166,136)

Total liabilities¥ 17,000,000¥ 16,833,863¥ (166,136)(Thousands of yen)

1st period (As of January 31, 2017)

Carrying amount(1) Cash and deposits¥(2) Cash and deposits in trust

1,066,015

Fair value¥

2,018,416

Total assets(3) Short-term loans payable

Difference

1,066,015-

2,018,416-¥

3,084,431¥

3,084,431-¥

3,000,000¥

3,000,000-(4) Long-term loans payable

17,000,000

16,724,027¥ (275,972)

Total liabilities¥ 20,000,000¥ 19,724,027¥ (275,972)- 28 -

(Note 1) Methods to estimate fair values of financial instruments(1) Cash and deposits and (2) Cash and deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(3) Short-term loans payable
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(4) Long-term loans payable
The fair value is determined based on the present value being calculated by discounting the sum of principal and interest by the assumed
interest rate which would be applied if a similar new loan were entered into.
(Note 2) Financial instruments for which it is extremely difficult to determine the fair value(Thousands of yen)
2nd period(As of July 31, 2017)
Tenant leasehold and security deposits in trust

1st period(As of January 31, 2017)¥ 1,450,521¥ 1,441,755

Tenant leasehold and security deposits in trust are not subject to fair value disclosure, because a reasonable estimation of future cash flows isdifficult as no market price is available and the actual deposit period cannot be determined even when a contract period is set in the lease contract
since there is a possibility that the leases may be cancelled, renewed or re-signed.
(Note 3) Redemption schedule for monetary claims(Thousands of yen)
2nd period (As of July 31, 2017)

Due within one year

Cash and deposits¥ 2,365,427

Cash and deposits in trust¥ 1,415,316(Thousands of yen)

1st period (As of January 31, 2017)

Due within one year

Cash and deposits¥ 1,066,015

Cash and deposits in trust¥ 2,018,416(Note 4) Repayment schedule for loans(Thousands of yen)
2nd period(As of July 31,
2017)

Due within
one yearLong-termloans payable

Due after one to
two years-

Due after two to
three years--

Due after three tofour years

Due after four tofive years--

Due after
five years¥ 17,000,000(Thousands of yen)
1st period(As of January 31,
2017)

Due within
one year

Short-termloans payable¥ 3,000,000-

Long-termloans payable--

Due after one to
two years

Due after two to
three years- 29 -

Due after three tofour years

Due after four tofive years

Due after
five years

-

-

-

-

-

-

-

¥ 17,000,0005.

Investment and Rental Properties
MFLP-REIT owns logistics facilities and industrial properties for the purpose of earning rental income. The carrying amount, netchanges in the carrying amount during the periods and fair value of these investment and rental properties are as follows:(Thousands of yen)
2nd period(From February 1, 2017
to July 31, 2017)

1st period(From March 4, 2016
to January 31, 2017)

Carrying amount
Balance at the beginning of the period¥

Changes during the period

75,472,868(551,295)

Balance at the end of the period¥

74,921,573

Fair value at the end of the period¥

80,820,000

75,472,868
75,472,868¥

78,400,000(Note 1) The carrying amount represents acquisition cost less accumulated depreciation.
(Note 2) Changes in the carrying amount during the 1st period consisted of the increase mainly attributable to acquisition of trust beneficiary interests inreal estate totaling nine properties (75,510,000 thousand yen), and the decrease mainly attributable to depreciation (553,488 thousand yen).
Changes in the carrying amount during the 2nd period consisted of the decrease mainly attributable to depreciation (560,073 thousand yen).
(Note 3) The fair value at the end of the period represents the appraisal value or surveyed value by external real estate appraisers.

Information about income and loss from investment and rental properties is stated in Note 8. “Property-related Revenues andExpenses.”- 30 -

6.

Net Assets
a. Stated capital
MFLP-REIT issues only non-par value units in accordance with the Investment Trust Act of Japan and all of the issue prices of
new units are designated as stated capital. MFLP-REIT maintains at least ¥50,000 thousand as the minimum net assets as requiredby the Article 67, Paragraph 4 of the Investment Trust Act of Japan.
b. Distributions
Distributions related to the period but declared after the balance sheet date are summarized as follows:(Yen)
2nd period(From February 1, 2017 to July 31, 2017)
Total
I. Unappropriated retained
earnings

1st period(From March 4, 2016 to January 31, 2017)

Per unit

Total¥ 1,151,857,774¥ 1,110,063,072

45,696,000

54,432,000

Per unit

II. Distributions in excess ofretained earnings
Deduction fromunitholders’ capital
III. Distributions
Distribution of earnings

1,151,808,000

Distribution in excess ofretained earnings

45,696,000

Total distributions
IV. Retained earnings carriedforward¥ 1,197,504,000¥¥¥

49,774

5,142

1,109,920,000

204

54,432,000

5,346¥ 1,164,352,000
¥

¥

4,955
243

¥

5,198

143,072

In accordance with the distribution policy as defined in the Article 35, Paragraph 1 of the Articles of Incorporation of MFLPREIT, distributions shall be in excess of the amount equivalent to 90% of the amount of earnings available for dividends definedin the Article 67-15 of the Act on Special Measures Concerning Taxation.
Based on this policy, for the fiscal periods ended July 31, 2017 and January 31, 2017, MFLP-REIT declared a distribution amountof 1,151,808,000 yen and 1,109,920,000 yen, respectively, which are the maximum value of the integral multiple of the total
number of investment units issued and outstanding at the end of each period in amounts not in excess of unappropriated retained
earnings.
Furthermore, based on the distribution policy as defined in the Article 35, Paragraph 2 of the Articles of Incorporation, MFLPREIT executes the distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing
unitholders’ capital for tax purposes) each fiscal period on a continuous basis.
Based on this policy, for the fiscal period ended July 31, 2017, MFLP-REIT declared the distribution of 45,696,000 yen, which is
calculated as being almost equivalent to the remaining amount after subtracting the distribution of earnings of 1,151,808,000 yen
and loss on retirement of non-current assets of 2,063,838 yen from 1,199,696,467 yen or 70% of FFO (funds from operation), as
distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing unitholders’ capital for tax
purposes). For the fiscal period ended January 31, 2017, MFLP-REIT declared the distribution of 54,432,000 yen, which is
calculated as being almost equivalent to the remaining amount after subtracting the distribution of earnings of 1,109,920,000 yen
from 1,164,485,764 yen or 70% of FFO (funds from operation), as distribution of cash in excess of retained earnings (return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes).
(Note) MFLP-REIT may execute cash distribution in excess of distributable amount, in an amount it determines within a scope not to exceed the limit
stipulated in the rules and requirements imposed by the Investment Trusts Association, Japan, when MFLP-REIT considers it appropriate, givensuch factors as economic environment, trends in the real estate market or leasing market, the situation surrounding owned assets and the financial
condition.
In addition, in case that any cash distribution fails to meet the statutory requirements for special tax treatment for investment corporations, MFLPREIT may execute cash distribution in excess of distributable amount, in an amount it determines to meet the statutory requirements.

- 31 -

7.

Short-term and Long-term Loans Payable
Short-term and long-term loans payable mainly consisted of bank borrowings under loan agreements. The following tablesummarizes the short-term and long-term loans payable as of July 31, 2017 and January 31, 2017.
(Thousands of yen)
2nd period(As of July 31, 2017)

1st period(As of January 31, 2017)0.1000% unsecured short-term loans-

0.1000% unsecured short-term loans
0.1000% unsecured short-term loans-

Total short-term loans payable-¥

3,000,000

2,000,000¥

2,000,000

0.2713% unsecured long-term loans due 2022¥¥

1,000,000
1,000,000
1,000,000

0.4213% unsecured long-term loans due 2026
0.3050% unsecured long-term loans due 2023

1,500,000
2,000,000

1,500,000
2,000,000

0.3813% unsecured long-term loans due 2025
0.1425% unsecured long-term loans due 2022

1,500,000
400,000

1,500,000
400,000

0.2113% unsecured long-term loans due 2024
0.1826% unsecured long-term loans due 2023

1,700,000
2,200,000

1,700,000
2,200,000

0.3237% unsecured long-term loans due 2024
0.3425% unsecured long-term loans due 2024

600,000
700,000

600,000
700,000

0.3125% unsecured long-term loans due 2026
0.2169% unsecured long-term loans due 2024

2,100,000
1,300,000

2,100,000
1,300,000

0.3125% unsecured long-term loans due 2026

1,000,000

Total long-term loans payable(Note)¥

17,000,000

1,000,000¥

17,000,000

The stated interest rates are the weighted average interest rates during the fiscal periods ended July 31, 2017 and January 31, 2017 and rounded to
the fourth decimal place.

The repayment schedule for loans is disclosed in Note 4. “Financial Instruments.”
MFLP-REIT had the commitment line contracts with two banks as of July 31, 2017 and January 31, 2017.
(Thousands of yen)
2nd period(As of July 31, 2017)
Total amount of commitment line contracts¥

Loans executed

1st period(As of January 31, 2017)

6,000,000¥-

Unused line of credit¥- 32 -

6,000,000

6,000,000-¥

6,000,000

8.

Property-related Revenues and Expenses
The following table summarizes the revenues and expenses generated from the real estate leasing business for the fiscal periods
ended July 31, 2017 and January 31, 2017.
(Thousands of yen)
2nd period(From February 1, 2017
to July 31, 2017)

1st period(From March 4, 2016
to January 31, 2017)

A. Real estate leasing business revenues
Property-related revenues
Rental revenues
Common area charges
Total
Other revenues related to property leasing
Utilities charges
Parking lots¥

2,364,624
92,185¥2,221,941
86,650¥2,456,809¥

2,308,592¥

69,332
10,144¥56,616
8,543

Others12,335

Total
Total property-related revenues

9,467

¥

91,812¥

74,627¥2,548,622¥

2,383,220¥

146,503
68,210¥144,243
56,616

B. Real estate leasing business expenses
Property-related expenses
Outsourcing service expenses
Utilities expenses
Repair expenses
Taxes and dues

41,093
245,516

36,308-Depreciation and amortization
Others560,073
10,132

553,488
10,417

Total property-related expenses
C. Operating income from property leasing [A-B]¥

1,071,529¥

801,073¥

1,477,093¥

1,582,146

Transactions with major unitholders for the fiscal periods ended July 31, 2017 and January 31, 2017 are as follows:(Thousands of yen)
2nd period(From February 1, 2017
to July 31, 2017)
Operating transactions:Operating revenues
Operating expenses
Non-operating transactions:¥

127,544¥

80,689¥50,422¥56,756-¥32,089,499

Purchase of trust beneficiary interests in real estate9.

1st period(From March 4, 2016
to January 31, 2017)

Income Taxes
MFLP-REIT is subject to Japanese corporate income taxes on its taxable income. The tax effects of temporary differences thatgive rise to a significant portion of the deferred tax assets and liabilities as of July 31, 2017 and January 31, 2017 are as follows:(Thousands of yen)
2nd period(As of July 31, 2017)
Deferred tax assets:
Non-deductible accrued enterprise tax

1st period(As of January 31, 2017)

¥

10

¥

27

Total deferred tax assets

¥

10

¥

27

Net deferred tax assets

¥

10

¥

27

- 33 -

Reconciliations between the Japanese statutory tax rate and the effective income tax rate with respect to pre-tax income reflectedin the accompanying statements of income for the fiscal periods ended July 31, 2017 and January 31, 2017 are as follows.
2nd period(As of July 31, 2017)

1st period(As of January 31, 2017)

Statutory tax rate

31.74%

32.31%

Adjustments:
Deductible distributions(31.72)(32.26)

0.05

0.09

0.07%

0.14%

Other
Effective income tax rate after application of tax-effectaccounting

10. Per Unit Information
The following table summarizes per unit information for the fiscal periods ended July 31, 2017 and January 31, 2017.
2nd period(From February 1, 2017
to July 31, 2017)

1st period(From March 4, 2016
to January 31, 2017)

Earnings per unit:¥

Net income per unit (yen)Weighted average number of units outstanding (unit)

5,141

¥

224,000

2nd period(As of July 31, 2017)
Net assets per unit (yen)

¥

9,017
(¥ 4,988)
123,102

1st period(As of January 31, 2017)

265,392¥

265,449

Net income per unit is calculated by dividing net income by the daily weighted average number of investment units outstanding
during the period. For the fiscal period ended January 31, 2017, net income per unit, which has been calculated using the daily
weighted average number of investment units deeming August 2, 2016, the actual starting date of asset management, as the
beginning of the fiscal period (222,525 units), is also presented in parentheses. Diluted net income per unit is not stated because
there are no dilutive investment units.
11. Leases
The future minimum rental revenues from tenants subsequent to July 31, 2017 and January 31, 2017 under non-cancelable
operating leases of properties are as follows.
(Thousands of yen)
2nd period(As of July 31, 2017)
Due within one year¥

Due after one year

4,473,267

1st period(As of January 31, 2017)¥

10,431,810

Total

¥

- 34 -

14,905,077

4,365,595
13,458,267¥

17,823,863

12. Transactions with Related Parties
Significant transactions and balances with related parties for the fiscal period ended July 31, 2017 are as follows:

Classification

Major
corporateunitholder

Name ofcompany

Mitsui
Fudosan Co.,
Ltd.

Address

Chuo-ku,Tokyo

Statedcapital(millionsof yen)¥ 339,766

Type ofbusiness

Real estatebusiness% ofvotingBusinessrights relationship(owned)Logistics
12.90% management
outsourcing

Operatingaccounts
payable¥ 8,529

127,439 Operating
accounts
104 receivable

52,355

Transaction
amount(thousandsof yen)Logistics
managementfee¥ 49,574

Repairs andrelated work

165

Other
propertyrelated
expenses
Rent
income, etc.
Other
incomeSubsidiaryof major
corporateunitholder

Account

Balance at
end ofperiod(thousandsof yen)Type oftransaction(Note 2)

683

Mitsui
Fudosan
Logistics
REIT
Management
Co., Ltd.

Chuo-ku,Tokyo

Investment
200 managementbusiness

-

Asset
Asset
management management
outsourcing
fee

223,258

Accounts
payable241,119

Mitsui
Fudosan
Building
Management
Co., Ltd.

Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
Repairs andmanagement
related work
outsourcing

20,186

Operatingaccounts
payable10,9359,727 Operating
accounts
payable11,867

Mitsui
FudosanFacilities Co.,Ltd.

Building
management
fee
Repairs andrelated work
Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
management
outsourcing

Otherpropertyrelated
expenses

54,490942

OtherincomeMitsui
FudosanFacilities
West Co.,
Ltd. (Note 3)

Osaka-shi,
Osaka

Daiichi Engei ShinagawaCo., Ltdku, Tokyo

Property
200 managementbusiness

480

Leasing andotherbusinesses--

Building
management
fee
Building
Repairs andmanagement related work
outsourcing
Otherpropertyrelated
expenses
Repair andmaintenance Repairs andof real estate related work
held

218

(1) Asset management fee is in accordance with terms set forth in the Articles of Incorporation of MFLP-REIT.
(2) Other terms and conditions of these transactions are determined based on the prevailing market price.
(Note 3) First Facilities West Co., Ltd. changed its name to Mitsui Fudosan Facilities West Co., Ltd. as of April 1, 2017.

- 35 --

6,259(Note 1) Consumption taxes are not included in the transaction amounts but included in the balances at the end of the period.
(Note 2) Methods to determine terms and conditions of transactions-

163

Operatingaccounts
payable1,635

Operatingaccounts
payable

490

121

724

Significant transactions and balances with related parties for the fiscal period ended January 31, 2017 are as follows:

Classification

Major
corporateunitholder

Name ofcompany

Address% ofvotingBusinessrights relationship(owned)Type ofbusiness

Mitsui
Fudosan
Logistics
Chuo-ku,
REIT
TokyoManagement
Co., Ltd.

Investment
200 managementbusiness

Mitsui
FudosanChuo-ku,
Building
Tokyo
Management
Co., Ltd.

Property
490 managementbusiness

Mitsui
FudosanFacilities
West Co.,
Ltd.

Inzai Tokutei
Mokuteki
KaishaKuki Tokutei
Mokuteki
KaishaSakai
Chikkoyawata
Tokutei
Mokuteki
KaishaDaikoku
Godo Kaisha

Osaka-shi,
Osaka

Type oftransaction(Note 2)

Transaction
amount(thousandsof yen)Logistics
management
fee
Other
propertyLogistics
related12.90% management
expensesoutsourcing
Rent
income, etc.

MitsuiChuo-ku,Real estate
Fudosan Co.,¥ 339,766
Tokyo
business
Ltd.

Mitsui
FudosanChuo-ku,
Facilities Co., Tokyo
Ltd.
Subsidiaryof major
corporateunitholder

Statedcapital(millionsof yen)Property
490 managementbusiness

Property
200 managementbusiness

-

-

-

-

Asset
management
outsourcing

Building
management
outsourcing

Building
management
outsourcing

Building
management
outsourcing

Account

Balance at
end ofperiod(thousandsof yen)Operatingaccounts
payable¥ 14,856

Operatingaccounts
receivable

26,252¥ 55,762

993

80,689Purchase ofreal estate

32,089,499--

Payment oforganizer
fee

50,000--408,552

Accounts
payable237,360

325 Operating
accounts
payable13,992

999

Assetmanagementfee (Notes 3)
Building
management
fee
Repairs andrelated work
Building
management
fee
Repairs andrelated work
Other
propertyrelated
expenses
Building
management
fee
Repairs andrelated work
Other
propertyrelated
expenses

52,29314,802

Operatingaccounts
payable15,069Operatingaccounts
payable

1,286

7,528

956

7,161
192

118

Chuo-ku,
Tokyo

853

Real estatebusiness--

Purchase ofreal estate

2,303,661

Operatingaccounts
payableChuo-ku,Tokyo

31

Real estatebusiness--

Purchase ofreal estate

13,128,185--

Chuo-ku,
Tokyo

1,661

Real estatebusiness--

Purchase ofreal estate

4,750,582--

Chuo-ku,Tokyo

3

Real estatebusiness--

Purchase ofreal estate

10,585,606--(Note 1) Consumption taxes are not included in the transaction amounts but included in the balances at the end of the period.
(Note 2) Methods to determine terms and conditions of transactions(1) Asset management fee is in accordance with terms set forth in the Articles of Incorporation of MFLP-REIT.
(2) Other terms and conditions of these transactions are determined based on the prevailing market price.
(Note 3) The asset management fee above includes 188,775 thousand yen of a management fee for property acquisitions included in the book value of realestate, etc. individually.

- 36 -

13. Segment and Related Information
For the fiscal periods ended July 31, 2017 and January 31, 2017a. Segment information
Segment information has been omitted as MFLP-REIT engages in a single segment of the real estate leasing business.
b. Related information(1) Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service category
exceed 90% of the total operating revenues on the statements of income.
(2) Information by geographical area(i) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of the total
operating revenues on the statements of income.
(ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds 90% of
the total amount of property and equipment on the balance sheets.
(3) Information on major tenant

Tenant nameOperating revenues

Related segment

Hitachi Transport System, Ltd.

(Note)

Real estate leasing business

Sun Toshi Tatemono Kabushiki Kaisha(Note)

Real estate leasing business

DAIWA CORPORATION, Ltd.

(Note)

Real estate leasing business(Note) Figures are not disclosed as the permission from the tenants has not been granted.

14. Significant Subsequent Events
Not applicable.
***- 37 -**