14th Fiscal Period(Fiscal Period Ended July 31, 2023)

Securities Code 3471

Investor Presentation
Material
Mitsui Fudosan Logistics Park Inc. (MFLP-REIT)

0

MEMO

1

Table of Contents
1. Highlights

4. Appendix…… P04•Our Portfolio…… P431-1 External Growth…… P05•Individual Property Income Statement…… P45

1-2 Internal Growth…… P08for 14th Fiscal Period

1-3 Initiatives for ESG…… P10

1-4 Financial Strategy…… P11

1-5 DPU Growth…… P13•Appraisal Summary for the End of 14th Fiscal …… P47
Period…… P48•Statement of Income and Balance Sheet

1-6 14th Fiscal Period (Ended July 2023) P/L…… P14•External Evaluation and Certifications…… P49

1-7 Reference…… P16•Investment Unit Price Trends/Status ofUnitholders…… P50• Mitsui Fudosan’s Major Development/
Operation Track Record…… P51

Operating Highlights

2. Growth Strategy of MFLP-REIT
……

P19

……

P21

2-2 Internal Growth Strategy

……

P27

2-3 Initiatives for ESG

……

P29

Notes on Matters Stated in this Document

2-4 Financial Strategy

……

P33

Disclaimer

2-5 DPU Growth

……

P34

Basic Strategy and Four Roadmaps
2-1 External Growth Strategy(Expansion of Asset Size)

3. Market Overview
3-1 Market Overview…… P372

1. Highlights

3

1

Operating Highlights

Continued steady growth through strategic partnership with Mitsui Fudosan
14th Fiscal Period (FP) Financial Summary••••

Financial Summary

Distributions per unit (DPU)*

14th FP: Revenue, Profit, DPU up for 13 consecutive FPs
Operating revenue 11.4 billion yen (+0.51 bn vs 13th FP act.)
Ordinary income
4.2 billion yen (+0.05 bn vs 13th FP act.)
Net income
4.2 billion yen (+0.05 bn vs 13th FP act.)

•
•
•
•

14th FP actual
8,804 yen (+5.4% YoY vs 12th FP act.)
15th FP forecast 8,781 yen
16th FP forecast 9,151 yen
Average annual growth of 7.8% since IPO (including 16th FP)

1-1 External Growth• Acquired MFLP Osaka Katano in Feb. 2023 and completedagreements to acquire 5 MFLP properties in Jul. 2023, for a
total of 6 properties worth 47.5 billion yen. Asset size up to
389.8 billion yen, further improving portfolio stability• Rich pipeline of 7 ROFL* properties (0.92mn ㎡). Continued
prospects for external growth. Expansion of logistics facilities
development continues at Mitsui Fudosan with cumulative
investments of 850.0 billion yen

1-2 Internal Growth• Market firm on continued strong demand for logistics facilities• End-14th FP occupancy rate* remained high at 99.8%, expect
to stay at around 100% in the 15th and 16th FPs• Approximately 87% of floor space up for lease renewal in 15th
FP has been signed (or spoken for)• Majority of utilities expenses are borne by tenants: impact ofrising energy costs on MFLP-REIT is limited

1-3 ESG Initiatives••

Improved ratios for Green Building certification to 96.7％,
ZEB certification to 69.4％. Solid progress on otherenvironmental KPI as well
Established green power supply framework, transitioned togreen power usage in common areas at 12 properties (as ofApril 2023)

1-4 Financial Strategy• End-14th FP (act.), end-15th FP (forecast) and end-16th FP(forecast) LTV* 38.6%, 36.6% and 39.4% respectively. Projectedacquisition capacity* as of end-16th FP (at 50% LTV): 80.0 billion
yen• Near term, spread levels unchanged on recent borrowings.
Impact of rising interest rates on MFLP-REIT limited* For further details, please refer to [Highlights] [ROFL: Properties defined in “Right of first look and preferential negotiation rights agreement”] in the Notes on Matters Stated in this Document on p.52-54

4

1-1. External Growth 1

Further enhancing portfolio quality and stability through the anticipated acquisitions 1 2
Offering summary

Anticipated acquisitions

Offering format

Reg. S only

Launch dateJuly 31, 2023

Pricing dateAugust 3, 2023

Oversubscription ratio

17x(of which overseas
demand:27x)

No. ofproperties

6 properties

Kyushuarea 6.4％
6.40%

5
8

(Anticipated)acquisition price

Offering size

Approximately
15.0 billion yen

Number of units offered(including over-allotment
option)30,470 units(over-allotment option:
1,530 units)

Access (distance) tonearest expressway
interchange

Ratio of geographicaldiversification

Greater
Tokyo
area
58.9％

Greater
Osaka
area
34.7％

1 - 3 km
30.2%
30.2％

34.70%

47.5 billion yen

3 - 5 km8.60%
8.6％
Less than
5 km
100％

Less than
1 km
61.3％

61.30%

Anticipated acquisitions

Asset Size

SG Realty
MFLP Fukuoka Kasuya(50% co-ownership interest)

6th follow-on offering
July 2023

389.8

MFLP Tomei Ayase

Further enhancing
portfolio quality andstability through theanticipated acquisitions(50% co-ownership interest)

MFLP Shinkiba I

MFLP Osaka Katano

MFLP Tokorozawa

MFLP Hiratsuka III

End of 13th
fiscal period（January 31, 2023）

Acquired in 14th FP

Acquired in 15th FP

Anticipated acquisitionin 16th FP

After theanticipated acquisitions

February 2023

August 2023

February 2024

24 properties

30 properties

1 property 16.5 billion yen

2 properties 13.7 billion yen

3 properties 17.3 billion yen

billion yen

342.2
billion yen

51-1. External Growth 1

Further enhancing portfolio quality and stability through the anticipated acquisitions 2 2
Anticipated acquisitions
Average adjusted forecast
NOI yield*

Average Appraisal NOI yield*

Average building age*

Average occupancy rates

Average lease period*/
Average remaining lease
period*Green Building
certifications ratio*1

4.4%

4.3%

1.4 years

100%

10.4 years/9.0 years

100%（after depreciation 2.2%）

Portfolio Overview

End of 13th fiscal period（January 31, 2023）

End of 14th fiscal period（July 31, 2023）

After anticipated acquisitions（Forecast）

No. of properties/Asset size

24 properties/
342.2 billion yen

25 properties/
358.7 billion yen

30 properties/
389.8 billion yen

Average adjusted forecast
NOI yield

4.9%（after depreciation 3.3％）

4.9%（after depreciation 3.2％）

4.8%（after depreciation 3.1％）

Average appraisal NOI yield

4.0％

4.0％

4.0％

Average building age

6.8 years

6.6 years

6.2 years

Average occupancy rates

99.8%

99.8%

99.8%

Average lease period/
Average remaining lease period

9.2 years/3.8 years

9.2 years/4.0 years

9.3 years/4.4 years

Top 5 property ratio*

39.5%

37.8%

34.8%

Top 5 tenant ratio*

31.3%

30.0%

27.9%

* For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.52-54

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1-1. External Growth 3

Solid progress toward medium-term asset size target of 500 billion yen

Plan to reach 1 trillion
yen in fiscal 2023

Construction completionin fiscal 2016

Construction completionin fiscal 2020

Construction completionin fiscal 2024

Construction completionin fiscal 2025

Construction completionin fiscal 2026

MFLP Funabashi I

MFLP Tachikawa
Tachihi

MFLP Sendai Natori I

MFLP Ichinomiya

MFLP Iruma II

Construction completionin fiscal 2019

Construction completionin fiscal 2022

Construction completionin fiscal 2024

Construction completionin fiscal 2025

Construction completionin fiscal 2026

MFIP Haneda

MFLP Ebina I

MFLP Nagoya Iwakura

MFLP Misato

MFIP Ebina

Construction completionin fiscal 2019

Construction completionin fiscal 2023

Construction completionin fiscal 2024

Construction completionin fiscal 2025

Construction completionin fiscal 2026

MFLP Yokohama
KohokuMFLP Shinkiba II

MFLP・LOGIFRONTTokyo Itabashi

MFLP Iruma I

MFLP Funabashi
Minamikaijin

Construction completionin fiscal 2019

Construction completionin fiscal 2023

Construction completionin fiscal 2024

Construction completionin fiscal 2025

MFLP Kawasaki I

MFLP Ebina Minami

MFLP Tsukubamirai

MFLP Amagasaki I

Decided to develop additional
6 new buildings in Japan

Properties
developed/
operatedby Mitsui
FudosanCumulative total investment size

Cumulative total investment size
56 facilities
700.0 billion yen

62 facilities
850.0 billion yen

Cumulative total investment size
22 facilities
300.0 billion yen

Other data center1 property
Overseas
4 properties

Properties covered by
the “Right of first lookand preferential
negotiation rights
agreement”

7 properties
920,000㎡

January 2023

April 2023

Under construction 80,000 ㎡

Construction completed 830,000㎡
LeasedMFLP Hino (75%)

LeasedLeasedMFLP Ichikawa Shiohama II
(60%)

…

March 2016

LeasedMFLP Funabashi II

MFLP Funabashi III

MFLP Yatomi Kisosaki

MFLP・OGUD Osaka
Torishima(50%)

MFLP Zama (41.5%)

Further expansion of properties
covered by the “Right of first lookand preferential negotiation rights
agreement”

Acquisition from properties covered by
the “Right of first look and preferential negotiation rights agreement”

MFLP-REIT’s
asset size
24 properties 25 properties

30 properties
389.8 billion yen
1,600,000㎡

21 properties

9 properties

297.6
billionyen

342.2
billionyen

358.7
billionyen

January 31,
2023

July 31,2023

27 properties
372.4
billionyen

30 properties
389.8
billionyen

75.5
billion yen

January 31,
2017

January 31,
2022

January 31, After Anticipated2024
acquisitions* For further details, please refer to [Major properties developed/operated by Mitsui Fudosan] in the Notes on Matters Stated in this Document on p.52-54.

Medium-term
asset size target
500.0 billion yen

Aim for continuous
external growth
to improve unitholder value

71-2. Internal Growth 1

Steady and stable property management
Status of lease signings and occupancy rates

Impact of rising electricity costs(thousand ㎡)
500

200

100

■ Breakdown of electricity costs by facility type (based on floor area)■Signed ■Spoken for ■Unsigned

449

Majority of electricity costs borne by tenants (MFLP-REIT only bears electricity
costs for common areas in multi-tenant properties). MFLP-REIT’s exposure toelectricity costs is limited.

* Figures in the graph show unsigned floor area (includes spoken for). Figures in brackets
include floor area for signed leases.
186
167
168
160
154
(132)
0
(83)
3

Single-tenant properties*/BTS 9 properties

Multi-tenant properties*
15 properties

83

Dedicated areas/Tenant indirectly responsible(MFLP REIT pays provider on behalf oftenants) about 83%

72
(29)
10
9

Tenant directly
responsible(Tenant pays
provider directly)

0
13th FP(23/1)

14th FP(23/7)

15th FP(24/1)

16th FP(24/7)

17th FP(25/1)

18th FP(25/7)

19th FP(26/1)

20th FP(26/7)

21st FP(27/1)

22nd FP(27/7)

23rd FP(28/1)

After
24th FP

96.7%

Status of occupancy rate as of each FP end
99.8%

99.8%

99.7%(Forecast)

100%(Forecast)Common areas /MFLP REIT bears costs for about 17%*

* For further details, please refer to [Multi-tenant properties/Single-tenant properties/BTS] in the Notes on Matters Stated inthis Document on p.52-54.
* The ratio of electricity costs for common areas to electricity costs for multi-tenant properties (excluding MFLP Osaka
Katano) in the 13th and 14th fiscal periods.

■ Factors depressing utilities expense margin
12th FP

13th FP

14th FP(YoY)

No. of properties

15

15

15

Dedicated tenant area

100

120.0

94.6
(- 5.4%)…①

Common area

100

87.8

89.5
(- 10.5%)…②

Electricity usage■Unsigned■Spoken for■New leases ■Rent unchanged■Re-lease ■Rent raised

Status of Lease Signings
132,361㎡
3.5%

132,361㎡

MFLP REIT’s limited exposure toelectricity costs

27.8%
83,359㎡
4.0% 80,046㎡
5.5%

83,964㎡*The electricity consumption of multi-tenant properties (excluding MFLP Osaka Katano) is indexed based on the 12th fiscal period.

6.8%① Tenant area usage down on energy saving measures

96.5%
72.2%
90.5%

93.2%

12.8%

29,484㎡

100%
25,711㎡

21.3%
66.0%

＋

② Common area usage also reduced but offset by inflation
impact on electricity unit prices

6.1%

93.9%

13th FP

14th FP

15th FP

16th FP(23/1)(23/7)(24/1)(24/7)* The above graph shows figures for leased floor area for MFLP-REIT properties after new acquisitions (excluding MFIPs) based onleases signed as of July 31, 2023.

Utilities expense margin down YoY on factors ① and ②8

1-2. Internal Growth 2

Steady and stable property management
Supply-demand balance and vacancy rate
Greater Tokyo area

Greater Osaka area

Forecast

thousand ㎡

4,000

Greater Nagoya area

Forecast

thousand ㎡

15%

2,000

thousand ㎡

15%

1,000

12%

750

Forecast
15%

3,500
12%

3,000
2,500

1,500

9%

2,000

500

6%

1,000
2.0%

500
0

3%

New supply

New demand

Vacancy rate

500

2.2%

Logistics facilities
less than 40 years old
49.1%

250

3%

3%

0.5%
0
0%
0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 20242015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: CBRE K.K. (including forecast figures) (August 2023)
Vacancy rate
* Survey of rental logistics facilities held by real estate investment companies,(logistics facilities 1 year old or older)
real estate development companies, etc. with total floor area of 5,000 m2 or more.
* Vacancy rate in 2023 is as of the end of June 2023.

Leading-edge
logistics facilities
6.1％

Rising demand on back of growth in e-commercemarket scale
22.7
trillion yen(hundred million yen)
E-commerce ratio(the whole world)

210,000

180,000

Future demand for
replacement ofaging properties

5.3%

0

Stock of logistics facilities in Japan*
Logistics facilities
40 years old or older
44.8%

6%

6%

3.9%
0%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

9%

9%
1,000

6.8%

1,500

12%

Highly scarceleading-edge
logistics facilities（%）

E-commerce ratio(USA)20

E-commerce ratio(Japan)

19.3%

Scale of E-commerce market

15
14.7%
150,000
10
120,000

9.1%
5

90,000(As of December 2021)

Source: CBRE K.K. (February 2023)* This is a calculation of the total floor area of buildings classified as "warehouses" by use and of "steel-frame
construction," "reinforced concrete construction," or "steel-framed reinforced concrete construction" bystructural type.

60,0002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0

Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade and Industry(Announced on August 31, 2023)* Amounts and percentages indicate the scale of B to C market in the e-commerce market.
The basis for the calculation of the e-commerce ratio is limited to merchandise sales.

91-3. Initiatives for ESG

Further strengthening of ESG initiatives
Monitoring of environmental KPIs

Improving the Green Building certification ratio forlogistics facilities
FP ended Jan. 2023
(13th FP)

Latest performance and progress against environmental KPIs generally on
track. Aim to achieve targets by promoting initiatives to reduce environmental
impact in the future.

Afteranticipated acquisitions

Green Building
certification ratio

96.3%

96.7%*1

21/22 properties

27/28 properties

ZEB certification rate

61.6%

69.4%*1

9/22 properties

16/28 properties■ CO2 emissions intensity (t-CO₂/㎡)

2016 (base year)

2022

0.017
Reduction of 30% by 2030

0.014
(17.3% reduction)

Owner-managed portion (Scope1・2)

0.060
Reduction of 100% by 2030

0.028
(52.7% reduction)

Tenant-managed portion (Scope3)

0.014
Reduction of 24% by 2030

0.013
(6.5% reduction)■ Water usage intensity (㎥/㎡)

2016 (base year)

2022

0.07
Not to increase
above base-year level

0.06(9.8% reduction)

Targets2022

70% or more by 2030

68.0%

Whole building (Scope1・2・3)■ ZEB certification properties■ ZEB certification properties
among anticipated acquisitionsin the 14th period
『ZEB』

『ZEB』

Nearly ZEB

ZEB Ready

Logistics facilities

MFLP Osaka Katano

MFLP Hiratsuka III

MFLP Atsugi II

2 other properties

MFLP Hiratsuka II
1 other property■ Waste recycling rate
Logistics facilities

Promoting transition to green power
From April 2023, in addition to the 7 properties that had previously been converted to green power,
5 properties in Greater Tokyo, Greater Nagoya, Greater Osaka and Hiroshima areas have started
converting common areas to green power. In addition, we have established a system for supplying
green power to tenants in dedicated areas as well. As of October 2023, we plan to introduce green
power in common areas of properties in Greater Osaka, and we expect to complete green power* Above data excludes data centers (industrial real estate) as a result of NDAs in place with tenants.
Industrial real estate is excluded from disclosures.
Targets

After anticipatedacquisitions

Logistics facilities

Maintain 95%

96.7％

Portfolio

Maintain 90%

93.4％

Targets

After anticipatedacquisitions

Owner-managed portion

100% by 2023

100％*1*2

Tenant-managed portion

100% by 2030

85.9％*1*2

Targets

After anticipatedacquisitions

75% or more by 2025
90% or more by 2030

31.4%*3■ Green Building certification ratio

transition in common areas at a total of 14 properties.

■ Trend in green power ratio in common areas for multi-tenant■ LED lighting adoption ratio

properties
As of October 2022

As of April 2023

As of October 2023 (expected)

46.7%

75.0%

87.5%

■ Green leases adoption ratio
Portfolio

7/15 properties

12/16properties

14/16 properties

*1
*2
*3

Calculations based on total floor after anticipated acquisitions adjusted to reflect (quasi) co-ownership interests.
Exclude single tenant property from the denominator of properties owned by MFLP-REIT after anticipated acquisitions.
Calculations based on leasable floor area after anticipated acquisitions adjusted to reflect (quasi) co-ownership interests.

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1-4. Financial Strategy 1

LTV management and stable financial operation
Major changes in financial metrics

Total interestbearing debt

Funding base interest rate trends
End of 15th FP

End of 16th FP(July 31, 2023)(January 31, 2024)(forecast)(July 31, 2024)(forecast)135.2 billion yen

131.9 billion yen

147.9 billion yen

End of 13th FP

End of 14th FP(January 31, 2023)

120.7 billion yen

While base rates for funding are rising near term, MFLP-REIT has beenable to keep spread levels unchanged when raising funds, throughdiscussions with financial institutions: impact of rising interest rates islimitedTONA SWAP rate trend
1.5%

LTV

35.9%

38.6%

36.6%

39.4%

LTV-based capacity for
Acquisitions

95.0 billion yen

80.0 billion yen

97.0 billion yen

80.0 billion yen

Average interest
rate

0.39%

0.46%

-

-

Average time tomaturity

8.2 years

8.3 years

-

-

1.0%

(at 50% LTV)

(long-term only)

Fixed interest ratio(long-term only)

98.3%

98.5%

-

120
100

0.0%
2022/1-

Interest-bearing debt maturity ladder and lender formation(bn yen)

0.5%

2022/72023/1

5 years rate

10 years rate

Lender formation（As of July 31, 2023）
Investment■Long-term (fixed interest rate) borrowings and investment corporation bonds■Long-term (floating rate) borrowing ■ Short-term borrowing

Commitment line 10,000 million yen

2023/7

Corporation Bonds
Sumitomo Mitsui Banking
The 77 Bank
Development Bank ofCorporation

othersJapan
Mizuho Bank

Nippon Life

80

Insurance Company

Total lenders: 29
Total borrowings¥135.2 bn

The Chiba Bank

60

Sumitomo Life
Insurance Company

40

The Bank of Fukuoka(Includes Investment
Corporation Bonds)

Mitsui Sumitomo Insurance
SBI Shinsei Bank

Shinkin Central Bank

20

The Yamaguchi Bank
Mizuho Trust & Banking

0

MUFG Bank

The Norinchukin Bank Sumitomo Mitsui
Trust Bank

* The repayment deadline as of July 31, 2023 is indicated.

11

1-4. Financial Strategy 2

Efficient cash management and change to FFO payout policy
MFLP-REIT revised its payout policy, in keeping with its aim to implement efficient cash management
in alignment with phase of growth
Policy of basing distributions on FFO times a payout ratio remains unchanged. Aim to raise the FFO payout ratio in a stepwise function
targeting an increase from 70% to 75% by the 18th FP■ Background to revision of distribution policy•

Since listing, MFLP-REIT has grown its asset size through continuous external growth; following new acquisitions, the portfolio size will rise to 389.8 billion yen•

Average building age of the portfolio after new acquisitions will be 6.2 years. the portfolio will remain focused on young properties with a limited need for capex•

MFLP-REIT has established a sound financial base: the lender formation has expanded to 29 financial institutions andLT issuer credit rating (JCR) remains AA (stable)■ Efficient cash management■ Diagram of cash distribution based on FFO•

Leasingbusiness
expenses,
SG&A,
etc.
FFO

•

Will continue to focus on efficient cash
management
MFLP-REIT will consider using cash on
hand to improve unitholder value
FFO

Capex
Debt repayment

Rentalrevenue

Deprecia-tion

FFO×70%

FFO×72%FFO×73%FFO×75%

Deprecia-tion

Funds for property
acquisition
Increased payout
ratio

Profit
当期(Net
純利益

Distributionsof earnings

Until 14th FP

75%
70%

Distributions
in excess ofearnings

Profit(Net
income)Retainedearnings

Total
distribution
amountincome)15th FP

16th FP

18th FP target

121-5. DPU Growth

Solid Execution on Roadmap to Enhancing Unitholder Value
Continuous DPU Growth
Stable portfolio management and acquisitionof acquired assets in the 14th FP will result in+5.4% growth in DPU

Aim for continuous distribution growth by acquiring assets to be acquiredin the 15th and 16th FPs and continuing to strive for stable management+5.9％（Average annual growth rate）

9,151 yen
+5.4％
8,772 yen

8,353 yen

8,804 yen

8,781 yen
2 properties
13.7bn yen

8,401 yen

MFLP Hiratsuka III

MFLP Shinkiba I

MFLP Tomei Ayase(50% co-ownershipinterest)

1 property
16.5bn yen

MFLP Osaka Katano

3 properties
17.3bn yen

SG Realty MFLP
Fukuoka Kasuya(50% co-ownershipinterest)

MFLP Tokorozawa

Average annual growth rate (Forecast for the 16th FP from listing) ＋7.8％
No. ofproperties
FFO
payout ratio

FP ended Jul. 2022
(12th FP) Actual

FP ended Jan. 2023
(13th FP) Actual

FP ended Jul. 2023
Forecast (14th FP) Actual

FP ended Jan. 2024
(15th FP) Forecast

FP ended Jul. 2024
(16th FP) Forecast

24

24

25

27

30

70％

70％

70％

72％

73％

Growth of NAV per unit*(July 31, 2023)

After theanticipated acquisitions

478,717 yen

481,047 yen

End of 14th FP

NAV per unit

Average annual growth rate of NAV per unit（After this offering from the 1st period） +8.4%* For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.52-54

Aiming for further
stabilization of investment
unit price andimprovement of NAV

13

1

-6.

14th Fiscal Period (Ended July 2023) P/L
13th fiscal
periodActual(a)

14th fiscal
periodForecast(Mar. 14,2023)

14th fiscal
periodActual(b)

Difference(b)-(a)10,960

11,587

11,478

517

2,563

2,759

2,668

104

8,396

8,827

8,810

413

Depreciation

2,707

2,985

2,984

276

Net rental revenues

5,688

5,842

5,825

136

1,181

1,257

1,221

37

Increase due to a property acquired in the 14th FP(MFLP Osaka Katano)

+433

4,504

4,584

4,604

99

Expensing of fixed asset tax and city planning tax forproperties acquired in the 12th FP+131

Non-operating income

3

-

2

-1

(MFLP Yachiyo Katsutadai, Hiratsuka II and Osaka I)

Non-operating expenses

302

350

344

42

Decrease in repair expenses

Ordinary income

4,206

4,234

4,261

55

Decrease in utilities expense

Profit (Net income)

4,205

4,233

4,260

55

FFO

6,913

7,218

7,244

331

70%

70%

70%

-

576,000

576,000

576,000-(Unit: million yen)

Main breakdown of difference
Operating revenue
Increase due to a property acquired in the 14th FP

Operating revenue
Rental expenses (excluding depreciation)
NOI

General and administrative expenses, etc.
Operating income(MFLP Osaka Katano)

Increase in utilities charge+614(excluding a property acquired in the 14th FP)-101

Increase in solar power generation facilities rent revenue(excluding a property acquired in the 14th FP)+56

Decrease in other operating revenue-52

Operating expenses-104(excluding a property acquired in the 14th FP)-59(excluding a property acquired in the 14th FP)

FFO Payout ratio
Total number of investment units(unit)
Distribution per unit (DPU) (yen)

8,401

8,772

8,804

403

Of which,
Distributions of earnings per unit (EPU) (yen)

7,301

7,349

7,396

95

Of which,
Distributions in excess of earnings per unit (yen)

1,100

1,423

1,408

308

Distributions in excess of earnings expressed asa percentage of depreciation

23.4%

27.5%

27.2%

-

＊For further details, please refer to [Method of calculation of cash distribution based on FFO] in the Notes on Matters Stated in this Document on p.52-54

Increase in asset management fees

+32

Decrease in other operating expenses-14

Non-operating expenses
Increase in interest expenses+69

Decrease in other non-operating expenses-26<Reference>
Formula for distribution per unit based on FFO*
FFO＝

Profit (Net income)＋Depreciation, etc.

…①

Source of funds for
distributions

＝

① FFO

×

Upper limit 75%…②

÷

Number of investment
units issued andoutstanding

Distributions per unit ＝②Source of funds for
distributions

14

1

-6.

15th Fiscal Period (Ending January 2024) & 16th Fiscal Period (Ending July 2024) Earnings Forecast
14th fiscal
periodActual(a)

15th fiscal
periodForecast(b)

Difference(b)-(a)11,478

11,869

2,668

2,809

16th fiscal
periodForecast*1(c)Difference(c)-(b)390

12,353

484

141

2,969

159

(Unit: million yen)

Operating revenue

Main breakdown of difference
Operating revenue(b)-(a)(c)-(b)Increase due to properties acquired in the 15th FP

+343

+17

Increase due to properties acquired in the 16th FP

Rental expenses (excluding depreciation)

Increase/decrease in utilities charge

NOI

8,810

9,059

248

9,384

324

Depreciation

2,984

3,116

131

3,295

178

Net rental revenues

5,825

5,942

116

6,088

145

1,221

1,271

49

1,304

32

General and administrative expenses, etc.
Operating income

4,604

4,671

67

4,784

113

Non-operating income

2

-

-2

-

-

Non-operating expenses

344

370

26

456

85

Ordinary income

4,261

4,300

39

4,327

27

Profit (Net income)

4,260

4,299

39

4,326

27

(excluding properties acquired in the 15th & 16th FPs)

+79

-74

Increase/decrease in solar power generation
facilities rent revenue

-48

+48

Increase in other operating revenue

+16

+42

Operating expenses(b)-(a)(c)-(b)Increase due to properties acquired in the 15th FP+164(excluding properties acquired in the 15th & 16th FPs)

Increase due to properties acquired in the 16th FP+191

Expensing of fixed asset tax and city planning tax
for properties acquired in the 14th & 15th FPs+87

Increase in repair expenses(excluding properties acquired in the 15th &16th FPs)

+8

+58

Increase/decrease in utilities expense(excluding properties acquired in the 15th &16th FPs)

+74

-55

Increase in insurance premiums+14(excluding properties acquired in the 15th &16th FPs)

FFO

7,244

7,415

170

7,622

206

Increase in asset management fees

70%

72%

2pt

73%

1pt

Increase in other operating expenses

576,000

608,000

32,000608,000

-

8,804

8,781

-23

9,151

370

Of which,
Distributions of earnings per unit (EPU)
(yen)

7,396

7,071

-325

7,117

46

Of which,
Distributions in excess of earnings perunit (yen)

1,408

1,710

302

2,034

324

Distributions in excess of earnings
expressed as a percentage ofdepreciation

27.2%

33.4%

-

37.5%

-

FFO Payout ratio
Total number of investment units(unit)
Distribution per unit (DPU) (yen)

+450

+29

+61

+59

Non-operating expenses(b)-(a)(c)-(b)Increase in interest expenses

+14

+102

Increase/decrease in expenses related toinvestment unit offering

+13

-13

Increase/decrease in other non-operating
expenses-1-3* A Property acquired in the 14th FP ・・・ MFLP Osaka Katano
Properties acquired in the 15th FP ・・・ MFLP Tomei Ayase, MFLP Tokorozawa
Properties acquired in the 16th FP ・・・ MFLP Hiratsuka III, MFLP Shinkiba I,
SG Realty MFLP Fukuoka Kasuya*1 For further details, please refer to [Earnings Forecast] in the Notes on Matters
Stated in this Document on p.52-54

15

1-7. Reference

Impact of 6 acquisitions in the 6th PO（after adjusting for temporary effects)⚫ As a result of the acquisition of 6 properties through the 6th PO, MFLP-REIT’s total NOI, total FFO and net income increased significantly⚫ After retaining funds on hand (Total FFO－Total distributions) of around 2 billion yen, MFLP-REIT continues to consider measures to enhance unitholder value⚫ MFLP-REIT revised its distribution policy to align it with its growth stage, raising the FFO payout ratio. As a result, DPU growth from the 13th FP is assumed to increase in 6.5%
(average annual growth rate), on the back of an increase of NOI and FFO per unit after the 6th PO and acquisition of 6 properties, and the impact from the rise in payout ratio
from 70% to 73%⚫ Although EPU in the 16th FP is forecasted to decline slightly on dilution resulting from the 6th PO and conservative operating assumptions, MFLP-REIT continues to aim to grow
EPU and enhance unitholder value

Total amount basis（million yen）

16,000

9,000

8,000

+12.8％+6.9％(Annual average
growth rate
+4.5%)

15,000NOI
9,337

14,000NOI
14,367

NOI
15,35813,000NOI
8,275+11.2％

7,000
FFO
6,820

Funds on hand
2,049

Distribution
5,537

FFO ×70％

+4.3％
4,112

4,291

Distribution
4,773

FFO
11,840

9,000
8,000

FFO
×70％

EPU
7,139

6,000

3,0000FFO
12,477+9.9％(Annual average
growth rate
+6.5%)

DPU
8,288

7,000

Net income

Net income

11,00010,000

FFO ×73％
5,000

+5.4％
(Annual average
growth rate
+3.6%)

12,000

FFO
7,586

Funds on hand
2,047

6,000

4,000

Per unit basis（yen）

10,000

DPU
9,108
FFO
×73％

-1.1％
(Annual average
growth rate
-0.8%)

EPU
7,057

5,000013th FP (January 2023)

16th FP (July 2024)

13th FP (January 2023)

16th FP (July 2024)

Figures after adjusting for
temporary effects based on
the 13th FP results

Figures after adjusting for
temporary effects based on
the 16th FP forecasts

Figures after adjusting for
temporary effects based on
the 13th FP results

Figures after adjusting for
temporary effects based on
the 16th FP forecasts

Properties

24

30

24

30

Number of investment
units issued

576,000+5.6％

608,000

576,000+5.6％

608,000

FFO payout ratio

70％

+3pt

73％

70％

+3pt

73％

16

MEMO

17

2. Growth Strategy of MFLP-REIT

18

2

Basic Strategy and Four Roadmaps 1

Maximize unitholder value through a strategic partnership with Mitsui Fudosan

Mitsui Fudosan
Logistics Park Inc.

External Growth

Own

Develop

Strategic
Partnership
Internal Growth

Strong development capabilities as
a comprehensive developer
Superior land sourcing ability
enabled by CRE strategies

Superior leasing capability
leveraging Group’s network

ManageStable Management

Maximize unitholder value

Evolutional solutions-based
asset management

Expansion of logistics
facilities business19Basic Strategy and Four Roadmaps 2

Leveraging Growth in Asset Size as Main Driver of Steady DPU GrowthFiscal 2016 - 2022

Fiscal 2023

1st – 13th fiscal periods

Asset Size

14th fiscal period

5th follow-on offering
January 2022
24 properties

Fiscal 2024 and after

15th fiscal period

6th follow-on offering
July 2023
24 properties

25 properties

27 properties

21 properties

9 properties
75.5

・・・・・

297.6

17th fiscal period and after

16th fiscal period

342.2

342.2

358.7

billion yen

billion yen

billion yen

372.4
billion yen

30 properties
Aim to acquire properties

389.8

in a continuous manner,billion yen

focused on high-quality properties

covered by “Right of first look andpreferential negotiation rights

billion yen

agreement”

Aim for further

500.0 expansion ofbillion yen asset size

Medium-term
asset size target

billion yen

Average annual growth rate since listing +24.5%

LTV
End of 11th FP（January 31, 2022）

End of 12th FP（July 31, 2022）

33.1％

36.5％

End of 13th FP（January 31, 2023）

End of 14th FP（July 31, 2023）

End of 15th FP(forecast)（January 31, 2024）

End of 16th FP(forecast)（July 31, 2024）

End of 1st FP

24.5％

・・・・・

LTV-based capacity for
acquisitions(LTV to 50%)

35.9％

・・・・・

39.4％

100.0

91.0

95.0

80.0

97.0

80.0

billion yen

billion yen

billion yen

billion yen

billion yen

12th FP

13th FP

14th FP

15th FP（Forecast）

16th FP（Forecast）

8,353

8,401
yen

8,804
yen

8,781
yen

9,151
yen

11th FP

5,198
yen

36.6％

billion yen

Distribution per unit (DPU)
1st FP

38.6％

7,895
yen

yen

Fund procurement and LTV
management optimal forsize of acquired assets

Continuous DPU growththrough leverage effects, etc.

40% to 50％
Medium- tolong-term
stabilized LTV level

Aiming for
further DPU
growthForecast annual growth rate (per year) (include 14th-16th fiscal period) +7.8%

Market Cap*
End of 11th FP

End of 12th FP

306.7

301.2

billion yen

423,819 yen

End of 13th FP

After 6th follow-on offering
End of 14th FP(Forecast)Afteranticipatedacquisitions

Expansion of market cap
through public offerings, etc.

End of 1st FP
76.1

・・・・・

291.4

billion yen

261.2

301.2

billion yen

billion yen

billion yen

450,386 yen

463,661 yen

478,717 yen

Inclusion in major indices

Aim forEnhancement ofinvestment
liquidity

billion yen

273,318 yen
NAV per unit

481,047 yen

Average annual growth rate of NAV per unit from January 31, 2017 +8.4%* For further details, please refer to [Basic Strategy and Four Roadmaps] in the Notes on Matters Stated in this Document on p.52-54

20

2-1. External Growth Strategy (Expansion of Asset Size) 1

CRE Strategy: Mitsui Fudosan increasing quality developments in superior locations
Ability to secure development sites through its corporate real estate (CRE) strategy
Propose CRE
strategies

Various CRE needs of client firms
Rebuilding of corporate
logistics capabilities

Utilization ofidle land

Trimming balance
sheet(Asset disposal)

Development ofcorporate
infrastructure

Global development(Establishment ofoverseas sites)

Examples of superior location and high quality of
Mitsui Fudosan developments

Growth image for properties (to be)
developed/operated by Mitsui Fudosan■ MFLP Tomei Ayase (50% co-ownership interest)
Distinctive building design
harmonized with thesurrounding environment

Sale of realestate, etc.

Cumulative total investment size as of April 2023

Conveniently located next
to the IC

62 facilities 850.0 billion yen

Location

Cumulative total investment size as of January 2023
56 facilities 700.0 billion yen

Transition to“Logistics Properties
Business Division”
at Mitsui Fudosan

Heliport: contribute to enhancing emergency
medical capabilities in the region
First domestic logistics facility with an aluminum heliport deck installed on
the roof, based on an agreement with the city of Ayase. through apublic/private/academic collaboration with Ayase City Fire Department andTokai University Hospital's Advanced Medicine Emergency Center, theheliport is used for doctor heli EMS. During disasters, it can be used as abase for disaster response services providing relief support and supplies.

MFLPREIT
IPO

Mitsui
Fudosanestablishedthe Logistics
Properties
Department

Fiscal
2012

Fiscal
2013

Fiscal
2014

Fiscal2015

Fiscal2016

Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

Fiscal2022

Fiscal2023
or after（planned）

21

2-1. External Growth Strategy (Expansion of Asset Size) 2

Stable growth leveraging the growth potential and extensive pipeline of Mitsui Fudosan’s logistics facilities business

Mitsui Fudosan’s major development/operation track record : 62 facilities 850.0 billion yen 5,300,000 m2
Properties held by MFLP-REIT and anticipated acquisitions

Properties covered by “Right of first look andpreferential negotiation rights agreement”

30 properties 1,600,000 m2 389.8 billion yen

7 properties 920,000 m2

Anticipated acquisitionin 16th FP

LeasedMFLP Hiratsuka III

MFLP Hino

Completed

Properties developed/operatedby Mitsui FudosanCompleted

Construction completionin fiscal 2020

Construction completionin fiscal 2024

MFLP Funabashi II

MFLP Tachikawa
Tachihi

MFLP Sendai Natori I

Construction completionin fiscal 2020

Construction completionin fiscal 2024

New

MFLP Tosu

MFLP Nagoya
Iwakura

MFLP Amagasaki I

Construction completionin fiscal 2022

Construction completionin fiscal 2024

New

Tokyo Rail Gate
EAST

MFLP・LOGIFRONTTokyo Itabashi

Construction completionin fiscal 2022

New

LeasedNew

Construction completionin fiscal 2025

75%

MFLP Yokohama
Daikoku

MFLP Kashiwa

MFLP Atsugi II

MFLP Yachiyo
Katsutadai

Anticipated acquisitionin 16th FP

LeasedLeasedCompleted

Completed

MFLP Iruma I
Construction completionin fiscal 2025zz
GLP・MFLP
MFLP Fukuoka I
Ichikawa Shiohama

MFLP Sakai

MFLP Hiratsuka II

MFLP Shinkiba I
Anticipated acquisitionin 16th FP

MFLP Yashio

MFLP Hiratsuka

MFLP Prologis Park
Kawagoe

MFLP Osaka I

SG Realty MFLP
Fukuoka Kasuya

Acquired in 14th FP

60%

MFLP Funabashi III MFLP Ichikawa
Shiohama II
Completed
Construction completionin fiscal 2016

MFLP Yatomi Kisosaki

Construction
completed
830,000 ㎡
New

MFLP Kuki

MFLP Komaki

MFLP Hiroshima I

Construction completionin fiscal 2026

MFLP Funabashi I
Construction completionin fiscal 2019

Construction completionin fiscal 2024

MFLP Iruma II
NewConstruction completionin fiscal 2026

Construction completionin fiscal 2023

MFLP Ebina I

MFLP Tsukubamirai

MFIP Ebina

Construction completionin fiscal 2019

Construction completionin fiscal 2023

Construction completionin fiscal 2025New

MFLP Yokohama
KohokuMFLP Shinkiba II

MFLP Ichinomiya

MFLP Funabashi
Minamikaijin

Construction completionin fiscal 2019

Construction completionin fiscal 2023

Construction completionin fiscal 2025

MFIP Haneda

MFLP Osaka Katano MFIP Inzai
50%

Acquired in 15th FP

Construction completionin fiscal 2026

MFLP・OGUD Osaka
Torishima
New

MFLP Funabashi
Nishiura

MFLP Inazawa

MFLP Ibaraki

Construction completionin fiscal 2023

MFLP Tomei Ayase MFIP Inzai II
Acquired in 15th FP

41.5%

Overseas
4 properties

MFLP Zama

MFLP Tsukuba

MFLP Kawaguchi I MFLP Tokorozawa

MFLP Kawasaki I

MFLP Ebina Minami

MFLP Misato…

MFLP Atsugi

Under
construction
80,000 ㎡

Other Data center1 property

22

2-1. External Growth Strategy (Expansion of Asset Size) Emphasis on location 1

Build a high quality portfolio by taking advantage of geographical diversification
Greater Tokyo Area
LegendLogistics facilities
properties held by
MFLP-REIT and
anticipatedacquisitions
L-XX

Logistics facilities NO.

L-XX

Anticipatedacquisitions NO.
Industrial real estate
properties held by
MFLP-REIT *I-XX

Industrial real estateNO.
Properties covered
by “Right of first lookand preferential
negotiation rights
agreement”
Properties developedby Mitsui Fudosan
Mitsui Fudosan’s
strategic area

* For further details, please refer to [Industrial real estate] in the Notes on Matters Stated in this Document on p.52-54

23

2-1. External Growth Strategy (Expansion of Asset Size) Emphasis on location 2

Build a high quality portfolio by taking advantage of geographical diversification
Greater Nagoya area

Greater Osaka area

Tohoku area

Hiroshima area

Kyushu area

■Geographically diversified portfolio◼ Location offering excellent access totransportation nodes

Investment area

Access (distance) to nearest expressway
interchange
5 km or more

Kyushu area
Hiroshima area
2.3％
Shuto Expressway
4.0％

Wangan Line
10.6％
Tokyo-Gaikan
Expressway
7.8％

Greater
Nagoya area
6.7％

GreaterTokyo area
and Greater
Osaka area National
Greater
Osaka area
31.1％

87.0％

Route 16
18.0％

7.2％

Access (time) to nearest train station
By bus(20-30 minutes)
5.7％

Within walking
distance(20-25 minutes)
3.6％Less than 1 km
26.0％

3 - 5 km32.3％

GreaterTokyo area
55.8％

■Location convenient for commuting workers

By bus(20 minutes
or less)
54.0％

Less than
5 km

92.8％

Ken-O
Expressway
19.4％

Within walking
distance/Within
20 min. by bus

94.3％

Within walking
distance(20 minutes
or less)
36.8％

1 - 3 km
34.4％
* The pie charts above are calculated based on after anticipated acquisitions price basis (excluding MFIP properties).

24

2 -1. External Growth Strategy (Expansion of Asset Size) Emphasis on Quality
MFLP-REIT concentrates investments in leading-edge logistics facilities. Mitsui Fudosan quality
achieved by applying Mitsui Fudosan’s expertise as a comprehensive developer
Mitsui Fudosan quality■ Basic specifications of leading-edge logistics facilities

Large sites[Gross floor area]
Approx. at least
10,000 ㎡

Storage space
Effective ceiling heightAt least 5.5 m

Column spacing
At least 10 m
Floor load tolerance
At least 1.5 tons/m2
MFLP SakaiHigh performance

Disaster prevention[Column span]
At least 10 m
[Effective ceiling height]
At least 5.5 m[Floor load tolerance]

Equipped with• Seismic isolation• Earthquakeresistance• Building Damage
Assessment System,etc.

At least 1.5 tons/㎡■ ＆ Worker
Unmanned store■ ＆ Tenant
Cafeteria

Commuter shuttles

Bicycle sharing

Installation ofseismic isolation

MFLP Sakai

MFLP Kashiwa■ Building age*2Within 1 yearOver
10 years
5.4％

7-10 years
30.3％
MFLP Yachiyo Katsutadai

MFLP Yachiyo Katsutadai

Bench that can be converted
to emergency cooking grill

Solar panels

3.5％
1-3 years
12.1％
Avg.
building age
6.2 years
3-7 years
48.6％

MFLP Hiroshima I■ ＆ Earth■ ＆ Community
Childcare facilities

MFLP Ibaraki

Emergency power
generator

LED lights■ Properties developedby Mitsui Fudosan*2

94.6％

MFLP Hino*1*2

MFLP Kawaguchi I

MFLP Yachiyo Katsutadai

MFLP Osaka I

Photos are for illustrative purposes only. Not all MFLP facilities or portfolio assets are necessarily equipped with all of the abovementioned specifications and features.
Figures are calculated based on the total gross floor area after anticipated acquisitions, considering the (quasi) co-ownership interests.

25

2 -1. External Growth Strategy (Expansion of Asset Size) Emphasis on Balance
Securing growth and stability by building a balanced portfolio through acquisitionof MFLPs/MFIPs which reflect location characteristics and tenant needs
Investment ratio: 80% or more

Investment ratio: 20% or less

Logistics facilities

Industrial real estate

Shipping needs

Storage needs

Multi-tenant type

Single-tenant type

Rampway MFLP
Multi

MFLP Yokohama
Daikoku
Multi

Slope MFLP
Multi

GLP・MFLP
Ichikawa Shiohama

Multi

SingleMFLP Atsugi
Multi

MFLP Kuki
Multi

MFLP Kashiwa

Mainly long-term BTS type

MFIP( Mitsui Fudosan Industrial Park )Box MFLP

SingleData centers, etc.

SingleMFLP Funabashi Nishiura
Other*1

Multi

BTS

MFIP Inzai

BTS

MFIP Inzai II

Multi■ Investment ratio
MFLP Hino
Multi

MFLP Sakai

MFLP Komaki

MFLP Inazawa

Multi

Multi

MFLP Hiratsuka

SingleSingleMFLP Tsukuba

MFLP Fukuoka I

Multi

Other*1by property type*2
Data center
7.0％

Multi

MFLP Atsugi II
MFLP Prologis Park
Kawagoe

MFLP Yashio

MFLP Ibaraki

SingleMFLP Hiroshima I
SingleBox MFLP
20.1％

Rampway
MFLP
34.7％

Slope MFLP
38.2％
MFLP Kawaguchi I
SingleMFLP Osaka I
Other*1

MFLP Hiratsuka II

MFLP Tokorozawa

SingleSingle■ Investment ratio

by tenant type*2
BTS 7.0％

MFLP Yachiyo
Katsutadai
SingleMFLP Tomei Ayase*1*2

MFLP Osaka Katano

MFLP Hiratsuka III

Other*1
7.1％

MFLP Shinkiba I

Single

Multi
57.0％

Single28.9％

SG Realty MFLP Fukuoka
Kasuya“Other” refers to a property for which the classification (multi or single) cannot be disclosed in this material as consent for disclosure has not been obtained from the lessee.
Figures calculated based on an after anticipated acquisition price basis

26

2-2. Internal Growth Strategy 1

Achieve stable management by leveraging Mitsui Fudosan Group’s platform and client network
Effectively leverage the Mitsui
Fudosan Group’s platform and client
network for leasing

Tenant diversification
Nakano Shokai
Other

80

Owner of logistics
facility

Logistics
firm

NTT LOGISCO

MEIKON
Tenants*
e-LogiTBic Camera
MISUMIMITSUI SOKO LOGISTICSKDDI
KOKUBU SHUTOKENDAIWA CORPORATION

Logistics
agencyagreement

Lease
agreement

Major Specialty store retailerof Private label Apparel

About
THIRDWAVEEnd user

Average lease
period *9.3 years

Average remaining
lease period *4.4 years

Japan Logistics Systems

Occupied by many tenants that havea relationship with Mitsui Fudosan
Lease
agreement

Lease agreements

LOGISTEED Metropolitan

MARUBENI LOGISTICS
Sagawa Global Logistics
NIPPON EXPRESSSANGETSU
Sun Toshi Tatemono
SENKO Group Holdings* Number of tenants shown here istotal number of leases; excludes MFIPs.

Staggering of lease expiration dates
End user(thousand ㎡)
500(3PL operator, etc.)449■Signed ■Spoken for ■Unsigned
186

200

167

Can directly approach logistics firms and end users
regardless of contract type

(132)
0
100

(83)
3

168

160

154

83
72

Fully leverage the Mitsui Fudosan Group’s
broad client network

(29)
10
9
0

Office building
businessclient network
Approx. 3,000 firms

Retail facility businessclient network
Approx. 2,400 firms

Strong relationships
with leading 3PL
operators

13th FP(23/1)

14th FP(23/7)

15th FP(24/1)

16th FP(24/7)

17th FP(25/1)

18th FP(25/7)

19th FP(26/1)

20th FP(26/7)

21st FP(27/1)

22nd FP(27/7)

23rd FP(28/1)

After
24th FP

96.7* The above graph shows figures for leased floor area for MFLP-REIT properties after new acquisitions (excluding MFIPs) based on leases signed as% for signedof July 31, 2023. In addition, figures in the graph show unsigned floor area (includes spoken for). Figures in brackets include floor arealeases.

*Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year
ended March 31, 2023

27

2

-2. Internal Growth Strategy 2

Evolution of solutions-based asset management by Mitsui Fudosan Group＆LOGI Solution
We provide a platform that maximizes the use of Mitsui Fudosan's resources and contributes to solving logistics issues for customers and society as a whole.

End user/Logistics company

Cutting edge solutions

Mitsui Fudosan Group General
Consulting Company"MF Logistics Solutions"

Number of facilities

Mitsui Fudosan Management
End User Community"Logistics Innovation Community"

Number of tenants■ MFLP ICT LABO 2.0

State-of-the-art solution
showroom

About 60 bases

State-of-the-art technology at MFLP
Utilization and accumulation of know-how

DX solutions for receiving anddispatching processes
Build a network centered on investees
and companies exhibiting at ICT Labo

Drone utilization(MFLP・LOGIFRONTTokyo Itabashi)

MFLP ICT Labo 2.0(inside MFLP Funabashi & GATE)

About 120 companies

EC specialized
distribution center(MFLP Funabashi III)

■ Improving loading efficiency by promoting joint ■ DX solutions for receiving and dispatching processesdelivery with a focus on EC

Showroom enabled for
ICT equipment demos

EC specialized
distribution center

In-house use

Warehouse＋
Material handling(automated equipment)＋
WMS(warehousemanagement system)＋
Operation

DX solutions for receiving and dispatching processes
Hacobu (berth reservation system) x MFLP (vehicle number authentication, etc.) x Tenant systems

Shipping
company• Fully automated logistics system on
display, using leading-edge ICT
technology encompassing the full processfrom receiving merchandise to dispatch• Provide specialized automation/laborsaving solutions for tenants andprospective tenants to address labor
shortages and other serious challenges forthe logistics industry.

EC automated logistics centerEC x automated warehouse x sharing

TenantEnd user B

Entry

Cargo
handling

Exit

Berth reservation
using system
Advancereservation

At the time of entry
license plate
verifiedDirected todesignated berth

At berth
unloading/loading

License plate
verification on
departure
Update outgoing
information

Linkage between
systems

Shared use
End user A

Before entry

Arrangement plan/
Preparation

Shipment sorting
completion*Slated for future expansion* "MFLP ICT LABO 2.0", "Improving loading efficiency by promoting joint delivery with a focus on EC" and "Carrying in and out DX solution" are not limited to anticipated acquisitions and properties held by MFLP-REIT, but apply to Mitsui Fudosan as a whole.

28

2 -3. Initiatives for ESG 1 / Sharing the Mitsui Fudosan Group Management Principles
Contribute to social and economic development and conserving
the environment, based on Group Vision 「」Mitsui Fudosan Group’s ESG Principles
Under the principles of coexisting in harmony with society, linking diverse
values, and achieving a sustainable society that are represented by the Group
logo “ ” the Mitsui Fudosan Group holds “” as its Group Visionand is committed to make contributions to social and economic development,
and to global environmental preservation.
the “” principle reflects our awareness of the fact that the urban
development by the Mitsui Fudosan Group has to be in tune with the planet,and our vision of a society that enriches both people and the planet.

Sharing of the ESG Principles with Mitsui FudosanGroup
As a member of the Mitsui Fudosan Group, the Asset Management Company
shares the Mitsui Fudosan Group ESG Principles, and by building a highly
energy-efficient portfolio centered on MFLP facilities (leading-edge logistics
facilities with ‘Mitsui Fudosan quality’ ), will promote contributing to ourstakeholders in order to achieve a sustainable society.

Asset Management Co.’s efforts to promote ESG
MFLP-REIT Management Co., Ltd, the asset management company of Mitsui
Fudosan Logistics Park Investment Corporation, has established the "ESG
(Environment, Society, Governance) Policy" in November 2017, and isaddressing on ESG issues in collaboration with Mitsui Fudosan.

■Organizational chart

Sustainability Promotion
Subcommittees

Sustainability Promotion Committee【Members】

Instruct

・Chairperson: President & CEO

Investment Criteria Scrutiny
Subcommittee(chief sustainability officer)

LM Cooperation Subcommittee

・Standing member: Chief Investment Officer
Disclosure Subcommittee(sustainability executive officer)
・Standing member: Chief Finance Officer

Submitagendaitems

・Secretariat

Human Capital Subcommittee■ESG-related policies and rules
ESG (Environment, Society and Governance) Policy

Share
Mitsui FudosanGroup’s ESG
management
principles

Develop a highly
energy efficient
portfolio, focusedon MFLP

Consideration
for stakeholders tobuild a sustainable
society

Consideration andresponse to theenvironment

Consideration andresponse to society

Consideration andresponse togovernance

Climate Change Resilience Policy

Sustainability Promotion Framework Rules

Greenhouse Gas Emissions Reduction Policy

Sustainability Promotion Committee Rules

Energy Efficiency Policy

Operational manual for EMS (Energy
Management System)

Sustainable Procurement Policy

DEI Promotion Policy29

2-3. Initiatives for ESG 2 -for Environment

Environment

Proactively secure green building certifications, conservation efforts
Support for various environmental initiatives
The Asset Management Company declares its support for the recommendations of
the Task Force on Climate-related Financial Disclosures and is a member of the
TCFD Consortium. From FY2022, it has also declared its support for the Japan
Climate Initiative, and is working to create a framework for disclosing financial
information related to climate change. Also became a signatory to the Principles
for Financial Action for the 21st Century in March 2023. By acting on theprinciples, it will undertake its investment management in a responsible manner for
the formation of a sustainable society.

Eco-friendly green buildings

Monitoring of environmental KPIs
Latest performance and progress against environmental KPIs generally on
track. Aim to achieve targets by promoting initiatives to reduce environmental
impact in the future.

■ CO2 emissions intensity (t-CO₂/㎡)

2016 (base year)

2022

0.017
Reduction of 30% by 2030

0.014
(17.3% reduction)

Owner-managed portion (Scope1・2)

0.060
Reduction of 100% by 2030

0.028
(52.7% reduction)

Tenant-managed portion (Scope3)

0.014
Reduction of 24% by 2030

0.013
(6.5% reduction)■ Water usage intensity (㎥/㎡)

2016 (base year)

2022

0.07
Not to increase
above base-year level

0.06(9.8% reduction)

Targets2022

70% or more by 2030

68.0%

Whole building (Scope1・2・3)

Logistics facilities

Proactively securing green building certifications. 96.7%*1 of logistics facilities
had green certifications and 69.4%*1 of logistics facilities had ZEB certifications.

Initiatives for reducing environmental load
MFLP-REIT has implemented efforts to reduce CO₂ emissions throughenergy saving while promoting efficient use of energy at its portfolio assets bymeasures like introducing LED lights and installing roof-top solar panels.

■Installing roof-top solar panels
Annual solar power generation(2022 Actual)18.9 GWh■ Waste recycling rate
Logistics facilities* Above data excludes data centers (industrial real estate) as a result of NDAs in place with tenants.
Industrial real estate is excluded from disclosures.
Targets

After anticipatedacquisitions

Logistics facilities

Maintain 95%

96.7％

Portfolio

Maintain 90%

93.4％

Targets

After anticipatedacquisitions

Owner-managed portion

100% by 2023

100％*1*2

Tenant-managed portion

100% by 2030

85.9％*1*2

Targets

After anticipatedacquisitions

75% or more by 2025
90% or more by 2030

31.4%*3■ Green Building certification ratio■ LED lighting adoption ratio(12 properties)■ Green leases adoption ratio
MFLP Ibaraki
*
*1
*2
*3

For further details, please refer to [Industrial real estate] in the Notes on Matters Stated in this Document on p.52-54
Calculations based on total floor area after anticipated acquisitions adjusted to reflect (quasi) co-ownership interests.
Exclude single tenant property from the denominator of properties owned by MFLP-REIT after anticipated acquisitions.
Calculations based on leasable floor area after anticipated acquisitions adjusted to reflect (quasi) co-ownership interests.

Portfolio

30

2-3. Initiatives for ESG 3 -for Social

SocialOngoing initiatives for our many stakeholders
Initiatives for stakeholders
Utilizing the know-how of Mitsui Fudosan, the sponsor, the properties owned by MFLP-REIT promote initiatives to offer a healthy, pleasant and safe environment outof consideration for stakeholders such as tenants, facility users, the surrounding environment and local communities.
Participating in local community activities

Rest area

Cafeteria

Measures to prevent the spread of
COVID-19

Emergency power generator

By participating in local cleanup activities, the asset management company
is actively working to contribute to the local community and raise
environmental awareness among employees.

Cooperation with support group for the disabled (Group Happy Smile)Group Happy Smile

Hand sanitizer

Contactless buttons

Childcare facilities

Disaster response readiness

An organization that plans and provides a place where people withdisabilities can sell independently produced products, as well as a place
where they can introduce and sell their artwork to society.

Catering food truck

Art Exhibition* Photos are for illustrative purposes only. Not all MFLP facilities or portfolio assets are necessarily equipped withall of the abovementioned specifications and features.

31

2

Governance-3. Initiatives for ESG 4 - for GovernanceInitiatives for governance: Taking unitholders’ interests into consideration
MFLP-REIT and the Asset Management Company are working to establish proper governance through the following measures in order to build a solid relationship oftrust that aligns interests of unitholders with those of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

Rules concerning conflicts of interest in asset
management

Asset management with emphasis placed onrelationship of trust with unitholders

The acquisition and transfer of assets by MFLP-REIT from related parties are
decided by the Asset Management Company via a transparent decision-making
process.

Approval by the Chief Compliance Officer
Deliberation and resolution by the Compliance Committee*2

Examination and approval by the Investment Committee

Instruction to cancel or amend details

Draft by the Investment Team

Approval by MFLP-REIT’s Board of Directors

Deliberation and resolution by the Management
Committee

Instruction to cancel
or amend details

Submission of the acquisition plan by the Chief
Investment Officer to the Management Committee

Reporting to the Board of Directors and MFLP-REIT*1 The above chart shows the decision-making flow when a transaction involves a related party, which requires the approval of MFLPREIT’s Board of Directors under Article 201-2 of the Act on Investment Trusts and Investment Corporations.
*2 If a transaction falls below the threshold prescribed in Article 201-2 of the Act on Investment Trusts and Investment Corporations for
significance defined therein, the approval of MFLP-REIT’s Board of Directors shall be omitted.

■Asset management fee structure consistent with theinterests of unitholders
Our aim is to align the interests of the Asset Management Company withthose of unitholders.
Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

Operating income (before deduction of asset
management fees and depreciation) × 5.5% (maximum)

Asset management fee III

Pre-tax earnings (before deduction of asset managementfees) × Pre-tax EPU (before deduction of asset
management fees) × 0.001% (maximum)■Mitsui Fudosan’s investment in MFLP-REIT
Mitsui Fudosan has a 4.8% stake in MFLP-REIT (as of August 31, 2023) .
Accepting a certain level of capital investment leads to the alignment of theinterests of MFLP-REIT’s unitholders and Mitsui Fudosan, and enables the
pursuit of greater mutual interests in asset management.

■Adoption of cumulative investment unit ownership program
Ownership of the investment units by employees of the Asset Management
Company through the program elevates the motivation of employees toimprove the performance of MFLP-REIT, with the aim of enhancing its
medium- to long-term unitholder value.

Timely and proper information disclosure andensuring transparency
MFLP-REIT strives to make timely and proper disclosure of informationnecessary for unitholders to make investment decisions. With regard to
disclosure, MFLP-REIT focuses on prompt and transparent information
disclosure in a fair and equitable manner, and, in addition to financial information,
also discloses non-financial information related to ESG.
32

2

-4. Financial Strategy

Stable financial management: Progress in diversifying financial institutions and maturities
Interest-bearing debt maturity ladder and lender formation■Long-term (fixed rate) borrowing ■Long-term (floating rate) borrowing ■short-term borrowing ■Unsecured Bonds(million yen)

10,000Commitment line 10,000 million yen

8,000

6,000

3,000
4500
9,400
6,600

2,000

8,300

8,100

4,000
5,900

4,000
3,000

8,500
7,500

8,900

7,600
6,200

5,700

5,600

8,900

7,200

2,000

4,900

3,600
2,100

2,000

1,700

0
FP
ending2024/1

FP
ending2024/7

FP
ending2025/1

FP
ending2025/7

FP
ending2026/1

FP
ending2026/7

FP
ending2027/1

FP
ending2027/7

FP
ending2028/1

FP
ending2028/7

FP
ending2029/1

FP
ending2029/7

FP
ending2030/1

FP
ending2030/7

FP
ending2031/1

FP
ending2031/7

FP
ending2032/1

FP
ending2032/7

FP
ending2033/1

FP
ending2033/7

FP
ending2034/1* Reflects debt maturities after the borrowings on May 31, 2023.

Initiatives for ESG Finance■Trend in ESG Finance■Sustainability Linked Loan
MFLP-REIT has developed a Sustainability Linked Loan Framework, a first for a J-REIT and borrowed 10.0 billion
yen as a Sustainability Linked Loan from syndicate of 21 banks arranged by Sumitomo Mitsui Banking Corporationin February 2023. the Framework has received a “Second Opinion” by R&I, a third-party organization.

End of 12th
fiscal period(July 31, 2022)

End of 14th
fiscal period(July 31, 2023)

3.0

24.0

billion yen

billion yen

LenderGoing forward, willcontinue to use ESG
financing to promote
ESG-friendly asset
management

Syndicate of 21
banks arranged
by Sumitomo
Mitsui Banking
Corporation

AmountBorrowing period

10.0 billionyen
4 - 10 years

Sustainability Performance Target (SPT)

Incentive

Reducing CO2 emissions intensity (Scope 1 and 2) of logistics
facilities from 2016 by the following percent

0.02% / 0.01%
reduction in theapplicable interest
rate for theremaining term
upon achievementof SPT*by 2024

by 202760%

90%

by 2030
100%=Environmental KPI
set by MFLP-REIT

Received opinion from R&I that the SPT is asufficiently ambitious goal
* If the CO2 emission intensity as of the SPT determination year is higher than in 2016, the applicable interest rate for the remaining period will
be increased by 0.01% or 0.02%.

33

2-5. DPU Growth

Continue to achieve high DPU growth through external growth
Aim for continuous external growth, focused on high-quality properties covered by“Right of first look and preferential negotiation rights agreement”

Expansion of Asset Size

MFLP Komaki

MFLP Hino
2 other properties MFLP Tsukuba

1st PO

Debt

MFLP Inazawa
MFLP Sakai
5 other properties 2 other properties

2nd PO

Debt

Fund procurement

MFLP Ibaraki
MFLP Kawaguchi I

MFIP Inzai II

MFLP Yachiyo Katsutadai
2 other properties

4th PODebt

5th PO

3rd PONew investment units and LTV management optimal for size of acquired assets

LTV
18
205.0

16
156.7

9
75.5

10
78.7

12
98.3

30.2%
29.1%
67

21
297.6

20
282.4

27.3%

82

97

91
33.1%

71

7,816

9,151
8,804

8,353

8,401

(7,231)(7,301)

80

97

95

100

109

49

80
35.9%

30
389.8

39.4%

38.6%
36.5%

31.0%

27
372.4

36.6%

33.6%

13
103.5

26.8%

8,781

7,895

23.9%

24.5％

21.6%
42
45

22.5%
52

7,283

44

6,977
6,496

DPU (yen)

6,584(6,842)(7,349)(7,071)(7,117)

FP endingJan. 2024(15th FP)
Forecast

FP endingJul. 2024(16th FP)
Forecast(6,902)(6,604)6,105( ) EPU (yen)(6,200)

5,832
5,563

5,198

25
358.7

24
342.2

LTV-basedcapacity for
acquisitions(bn yen)(LTV at 50%)

MFLP Tomei Ayase MFLP Hiratsuka III
2 other properties
1 other property

6th PO

No. of properties
andasset size(bn yen)

9
75.5

MFLP Osaka
Katano(5,783)

5,346(5,811)(5,905)(5,497)(5,288)(5,142)(4,955)
FP endedJan. 2017(1st FP)FP endedJan. 2018(3rd FP)FP endedJan. 2019(5th FP)FP endedJan. 2020(7th FP)FP endedJan. 2021(9th FP)FP endedJan. 2022(11th FP)FP endedJan. 2023(13th FP)FP ended
Jul. 2023(14th FP)

34

MEMO

35

3. Market Overview

36

3-1. Market Overview

Market Overview 1
Supply-demand balance andvacancy rate 1 3：New supply in 2022 and2023(January-June)：New demand in 2022 and2023(January-June)

Greater Tokyo Area

：Population Density* （people/k㎡） 0~5,000：Vacancy rate 5–10%：Population Density* （people/k㎡） 5,000~10,000：Vacancy rate 10%–

：Population Density* （people/k㎡） 10,001~：人口分布（人/k㎡）10,001人～：Submarket areas*As of June 30, 2023

=100 thousand ㎡

Forecast

thousand ㎡：Vacancy rate 0–5%

4,000

15%

3,500
12%

3,000
2,500

Tohoku/Ken-O
Expwy area

9%

2,000
6%

1,500
1,000

3%

Kan-Etsu/Ken-O
Expwy area500
0National Route16 areaTokyo-Gaikan
Expwy area0%2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Chiba
inland area

（year）

Narita area
thousand ㎡

1,500

18%
Hachioji area

1,200
12%
900
Kanagawa
inland area

6.8%

600

6%
300
2.0%

0

0%
Q3

Q4

Q1

Q2

Q4

2022

2021
New supply

Q3

New demand

Q1

Q2
2023

Vacancy rate

Vacancy rate(logistics facilities 1 year
old or older)

Source: CBRE K.K. (August 2023)* Survey of rental logistics facilities held by real estate investment companies,
real estate development companies, etc. with total floor area of 5,000 m2 or more.

Greater Tokyo
Bay area：Logistics facilities properties heldby MFLP-REIT：Industrial real estate properties heldby MFLP-REIT：Properties developedby Mitsui Fudosan

37

3-1. Market Overview

Market Overview 1
Supply-demand balance andvacancy rate 2 3：New supply in 2022 and2023(January-June)：New demand in 2022 and2023(January-June)

Greater Osaka Area
2,000

：Population Density* （people/k㎡） 0~5,000：Vacancy rate 5–10%：Population Density* （people/k㎡） 5,000~10,000：Vacancy rate 10%–

：Population Density* （people/k㎡） 10,001~：人口分布（人/k㎡）10,001人～：Submarket areas*As of June 30, 2023

=100 thousand ㎡

Forecast

thousand ㎡：Vacancy rate 0–5%

15%
12%

1,500

Other area in
Keihan (between
Kyoto and Osaka)
Osaka inland area

9%
1,000
6%
500

3%

0

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
（year）

thousand ㎡

750

18%

500

12%

250

Osaka Bay/
Kobe area

6%
2.2%

0.5%

0

0%
Q3

Q4

Q1

Q3

Q4

2022

2021

New supply

Q2

New demand

Q1

Q2
2023

Vacancy rate

Source: CBRE K.K. (August 2023)* Survey of rental logistics facilities held by real estate investment companies,
real estate development companies, etc. with total floor area of 5,000 m2 or more.

Vacancy rate(logistics facilities 1 year
old or older)：Logistics facilities properties heldby MFLP-REIT：Properties developedby Mitsui Fudosan

38

3-1. Market Overview

Market Overview 1
Supply-demand balance andvacancy rate 3 3Greater Nagoya Area

New supply

Kyushu Area

Forecast

thousand ㎡

New demand

1,000

15%

*As of June 30, 2023

Chugoku Area

Forecast

thousand ㎡

Forecast

thousand ㎡

400

15%

Mitsui Fudosan’s
strategic areas

Vacancy rate(logistics facilities 1 year
old or older)

Vacancy rate
：Properties developedby Mitsui Fudosan：Logistics facilities properties heldby MFLP-REIT

200

30%

350
12%
750

12%
150

300
9%

500

20%

250

9%
100

200
6%

250

6%

150

10%
50

100
3%

3%
50

0

0%

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

0%2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

（年）

500

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

（year）
thousand ㎡

thousand ㎡

thousand ㎡0（year）

15%

150

15%

10%

100

10%

5%

50

5%

100

15%

400
75
10%

300

50

5.3%
200

0.8%

5%
25

100

3.9%

0

0%
Q3

Q4

Q1

Q2

2021

Q3

2022

Q4

Q1

Q2

2023

0.0%
0

0%
Q3

Q4

2021

Q1

Q2

Q3

2022

Q4

Q1

Q2

2023

0

0%
Q3

Q4

2021

Q1

Q2

Q3

2022

Q4

Q1

Q2

2023

Source: CBRE K.K. (August 2023)* Survey of rental logistics facilities held by real estate investment companies,
real estate development companies, etc. with total floor area of 5,000 m2 or more.

39

3-1. Market Overview

Market Overview 2
Stock of logistics facilities in Japan*
Logistics facilities
40 years old or older
44.8%
Future demand for
replacement ofaging properties

Logistics facilities
less than 40 years old
49.1%(million m2)
700

Leading-edge
logistics facilities
6.1％

Highly scarceleading-edge
logistics facilities(As of December 2021)

50%

600
40%
500
400

30%

300

20%

200
10%
100
0

0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021（year）
Estimate for logistics facilities
築40年以上の推計値
40years old or older

Estimate for logistics facilities
築40年未満の推計値
lessthan 40 years old

Share of logistics facilities
築40年以上のシェア
40
years old or older

Share of leading-edge logistics
先進的物流施設シェア
facilities

Leading-edge(left axis)
先進的物流施設
logistics
facilities(right axis)* Estimates by CBRE K.K. based on “Building Starts” (Ministry of Land, Infrastructure, Transport and Tourism) and “Summary Report on Prices, etc. of Fixed
Assets” (Ministry of Internal Affairs and Communications). Top left pie chart created by Asset Management Company, based on data the above graph.

Long-term data on construction starts of logistics
facilities (nationwide)

Tenant demand to increase floor space in logistics facilities
Survey “Priority/Focus Initiatives for the Next 3 Years (FY2022)”0%Over 40 years old
thousand m2

10%

20%

30%

40%

50%

60%

Open new logistics facilities,
increase floor area, number of facilities

20,000Adopt/upgrade automationequipment/facilities
Working environment for employees,
improving safety features

15,000Enhance transport and delivery network

10,000Consolidate/relocate facilities
Refurbish existing facilities
and equipment

5,000

1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

0

ESG initiatives
Upgrade omni-channel
to reflect ESG issues

Source: CBRE K.K. (May 2023)（year）* Figures calculated as the sum total of the floor area of structures with “warehouse” as the use category and “steel-framed structure,”“reinforced concrete structure” or “steel-framed reinforced concrete structure” as the structure type.

Assessing situation for now
Other

Top priority

2nd priority

3rd priority

Source: CBRE K. K. “ Tenant Survey on use of Logistic Facilities 2022” (as of June 2022)

40

3-1. Market Overview

Market Overview 3
Rising demand on back of growth in e-commerce market scale
Expanding e-commerce Market Scale

210,000
E-commerce ratio(the whole world)
E-commerce ratio(USA)

Trend in percentage of households
engaged in net shopping

Trend in net shopping expenditures

22.7

（yen）

trillion yen（%）(hundred million yen)

180,000

Rise of e-commerce penetration

20
19.3%

FY202226,000FY2019E-commerce ratio(Japan)
Scale of E-commerce market

15

(%)

Related to mail order sales (%)
Leased floor area related to mail order sales(thousand ㎡)

FY201954%

24,000（thousand ㎡）
1,200

FY202256%

e-commerce operators: Increase in leased floor area,
share of leased floor area

30

1,000

52%

22,000

800

50%

14.7%
20,000150,000
10
120,000

20
48%

18,00046%

9.1%
16,00060,0000(year)

400

44%

5

90,000600

14,00042%

12,00040%
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

10200
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade and Industry(Announced on August 31, 2023)* Amounts and percentages indicate the scale of B to C market in the e-commerce market.
the basis for the calculation of the e-commerce ratio is limited to merchandise sales.

Broader demand for leading-edge
logistics facilities

Attracting demand from retailers for delivery
Mounting demand due to 3PL
business and e-commerce market centers (Convenience Stores/Drug Stores)
size expansion
Conventional
3PL Market : Stable Growth

Manufacturing

4.2(hundred million yen)0

Source: Ministry of Internal Affairs and Communications “Survey of Household Economy” “Monthly expenditures per household utilizing the Internet”
nationwide, stratified into districts and urban areas.(as of February 7, 2023)

Source: Japan Logistics Field Institute, Inc.

Expansion of the data center
marketForecast of operational racks at hyperscaledata centers
Avg. annual
growth rate

Store

Wholesaler

0(year)

Consolidation of scattered logistics bases into a delivery center（Units）
120,000(2020-2025 years)

20.5%

trillion yen

45,000Net sales
40,00090,000After
consolidation
Manufacturing

Delivery center

Store

35,00030,00060,000Integrating Logistics Bases of Manufacturers
30,00025,000Conventional

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
（year）
Source: Monthly Logistics Business (September 2023)

Warehouse
Transport
for endproducts

Consolidation of separately locatedwarehouses for parts, assembly plants
and warehouses for end products into
one base

15,00010,000Transport

Assembly plantAfter
consolidation

MFLP

Transport0

Retail stores/ Consumers

20,000Warehouse for Transport
parts

2019
2020
2021
2022
2023
2024
2025
(year)
Source: Fuji Chimera Research Institute , Inc.
‘Overview of Data Center Business Market Research 2021(Market section)’(March 2021)* 2019 is prospective data point; all data points for 2020 and beyond are forecasts)

41

4. Appendix

42

4

Appendix

Our portfolio 1 2 (After the anticipated acquisitions)
Total (anticipated) acquisition price

Adjusted forecast NOI yield

30 properties 389.8 billion yen 4.8 %（ after depreciation 3.1 %）Category

Property no.

L-1

Average building age

Occupancy rate

4.0 %6.2 years

99.8 %

Property nameLocation(Anticipated)acquisition
price(million yen)

GLP/MFLP Ichikawa
Shiohama

Ichikawa,
Chiba

15,50020,000

4.9

4.8

3.7

12,50015,700

5.7

5.1

4.0

(50% quasi co-ownership interest)

Logistics
facilities

Appraisal NOI / Appraisal value

Appraisal
Value*(million yen)

Adjusted
forecast
NOI yield(%)

Appraisal
AppraisalNOI /NOI yield*
Appraisal(%)
value (%)

Gross floor
area*1(㎡)

Total leasable
floor area*2(㎡)

Building
age(years)Occupanc
y rate(%)

105,019（52,509）50,8139.5

100

73,15367,9259.1

100

47,939

14.3

100

L-2

MFLP Kuki

Kuki, Saitama

L-3

MFLP Yokohama Daikoku

Yokohama,
Kanagawa

10,10011,500

5.3

4.8

4.3

L-4

MFLP Yashio

Yashio, Saitama

9,650

12,000

5.4

4.9

4.0

100,530（50,265）
40,72839,692

9.4

100

L-5

MFLP Atsugi

Aiko, Kanagawa

7,810

10,400

5.8

5.5

4.1

40,942

40,958

8.4

100

L-6

MFLP Funabashi Nishiura

Funabashi, Chiba

6,970

8,500

5.3

5.1

4.2

30,94731,034

8.5

100

L-7

MFLP Kashiwa

Kashiwa, Chiba

6,300

8,130

5.6

5.3

4.1

31,242

31,291

7.7

100

L-8

MFLP Sakai

Sakai, Osaka

23,60028,200

5.4

4.9

4.1

125,127

112,148

8.9

100

L-9

MFLP Komaki

Komaki, Aichi

8,260

9,030

4.6

4.6

4.2

38,806

6.5

100

L-10

MFLP Hino

Hino, Tokyo

12,533

14,100

4.7

4.2

3.7

40,597205,200（51,300）

46,801

7.8

100

Hiratsuka,
Kanagawa

7,027

8,410

5.0

4.8

4.0

33,06133,055

6.7

100

Tsukubamirai,
Ibaraki

37,02737,938

13.1

8,781

11,300

5.5

5.7

4.5
25,45725,600

5.3

L-11

L-12

(50% quasi co-ownership interest)(25% quasi co-ownership interest)

MFLP Hiratsuka

MFLP Tsukuba

Existingbuilding
Annexbuilding

100

L-13

MFLP Inazawa

Inazawa,
Aichi

16,20019,300

4.8

4.9

4.1

72,88368,922

6.2

100

L-14

MFLP Atsugi II

Isehara, Kanagawa

13,10015,600

4.7

4.5

3.8

48,97648,032

5.3

100

L-15

MFLP Fukuoka I

Kasuya,Fukuoka

5,263

6,360

5.6

5.1

4.2

32,19932,216

6.8

100

L-16

MFLP Prologis Park
Kawagoe

Kawagoe,
Saitama

14,80017,850

4.4

4.6

3.8

117,337（58,668）

56,723

4.8

94.2

Hiroshima,
Hiroshima

14,48016,500

5.3

5.0

4.4

68,427

66,6653.9

100(50% quasi co-ownership interest)

L-17

MFLP Hiroshima I

43

4

Appendix

Our portfolio 2 2 (After the anticipated acquisitions)Category

Property no.
L-18

MFLP Ibaraki

L-19

MFLP Kawaguchi I

L-20

MFLP Yachiyo Katsutadai

L-21

MFLP Osaka I

L-22

MFLP Hiratsuka II

L-23
Logistics
facilities

Property nameAcquired in 14th FP

MFLP Osaka Katano
Acquired in 15th FP

L-24

MFLP Tomei Ayase(50% co-ownership interest)

L-25
L-26
L-27

Acquired in 15th FP

MFLP Tokorozawa
Anticipated acquisition

MFLP Hiratsuka III
Anticipated acquisition

MFLP Shinkiba I(Anticipated)acquisition
price(million yen)Appraisalvalue(million yen)

Adjusted
forecast
NOI yield(%)

Appraisal
AppraisalNOI /NOI yield
Appraisal(%)
value (%)

58,90068,900

4.6

4.3

18,50020,6004.3

18,00019,10013,900Gross floor
area*1(㎡)

Total leasable
floor area*2(㎡)

Building
age(years)Occupanc
y rate(%)

3.7

230,435

208,811

5.9

100

4.1

3.7

49,838

48,119

3.8

100

4.5

4.2

4.0

74,624

69,8302.9

100

14,700

4.0

4.0

3.8

43,91943,8803.0

100

12,70013,700

4.5

4.2

3.9

48,141

46,5253.8

100

16,50016,500

5.1

4.9

4.9

68,52867,264

1.9

100

9,610

9,610

3.9

3.8

3.8

56,764（28,382）

27,074

1.0

100

4,090

4,090

4.8

4.7

4.7

21,721

21,725

2.2

100

8,410

8,410

4.1

4.1

4.1

29,47428,327

0.4

100

5,940

6,110

3.6

3.6

3.5

9,584

9,585

0.4

100

Kasuya,Fukuoka

3,040

3,040

4.9

4.7

4.7

35,626（17,813）

18,061

0.8

100

-

362,464

417,640

4.8

4.6

4.0

1,897,520（1,535,980）

1,465,771

6.2

99.8

9.4

Not
Disclosed

3.2

100

6.9

Not
Disclosed

6.2

99.8

1,360,997

6.6

99.8

Not
Disclosed

6.6

99.8

Location
Ibaraki,
Osaka
Kawaguchi,
SaitamaYachiyo,
Chiba
Osaka,Osaka
Hiratsuka,
Kanagawa
Katano,Osaka
Ayase,
Kanagawa
Iruma,
Saitama
Hiratsuka,
Kanagawa
Koto,
Tokyo

Anticipated acquisition

L-28

SG Realty MFLP
Fukuoka Kasuya(50% co-ownership interest)

Subtotal or Average
Industrial
real estate

I-1

MFIP Inzai

I-2

MFIP Inzai II

Inzai,
Chiba
Inzai,
Chiba

12,22014,300

5.0

5.0

4.2

40,478Not
Disclosed

15,15017,000

4.8

4.8

4.3

27,26830,906

Subtotal or Average-

27,37031,300

4.9

4.9

4.2

67,746

Total or Average-

389,834

448,940

4.8

4.6

4.0

1,965,267（1,603,727）

subtotal

331,374

386,380

4.9

4.6

4.0

Not
Disclosed
Not
Disclosed

References : As of end of 14th fiscal period
Logistics facilities(Property no. L-1 to L-23)
Total or Average(Property no. L-1 to L-23, I-1,I-2)
*
*1
*2

-

358,744

For further details, please refer to [Our portfolio] in the Notes on Matters Stated in this Document on p.52-54.
“Gross floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
“Total leasable floor area” figures are the figures after taking into consideration the ownership interest.

417,680

4.9

4.7

4.0

1,744,349（1,429,005）
1,812,096（1,496,752）

44

4

Appendix

Appraisal summary for the end of 14th fiscal period

12(Unit: million yen)

Acquisitiondate

Acquisition
price

End of14th
fiscalperiodBook
value

GLP/MFLP Ichikawa
Shiohama (50%)

September 2016

15,50014,56219,8003.7%

20,000MFLP Kuki

August 2016

12,500

11,20915,400

4.0%

MFLP Yokohama
Daikoku (50%)

August 2016

10,100

9,513

11,400MFLP Yashio

August 2016

9,650

8,889

MFLP Atsugi

August 2016

7,810

MFLP Funabashi
Nishiura

August 2016

MFLP Kashiwa

End of 13th fiscal period*(End of Jan. 2023) (a)End of 14th fiscal period*(End of Jul. 2023) (b)Appraisal
value

CR

Appraisal
value

CR

Change(b)-(a)Main factors of change

Appraisal
value

CR

3.6%

200

-0.1

〇

〇

15,700

3.9%

300

- 0.1

〇

〇

4.1%

11,500

4.1%

100

0.0

-

〇

12,000

4.0%

12,000

3.8%

0

-0.2

〇

〇

6,997

10,2004.0%

10,400

3.9%

200

-0.1

〇

〇

6,970

6,316

8,390

4.1%

8,500

4.0%

110

-0.1

〇

〇

August 2016

6,300

5,660

8,000

4.1%

8,130

4.0%

130

-0.1

〇

〇

MFLP Sakai

August 2016*

23,60022,41027,600

4.1%

28,200

4.0%

600

-0.1

〇

〇

MFLP Komaki

August 2017*

8,260

7,364

8,980

4.1%

9,030

4.0%

50

-0.1

〇

〇

MFLP Hino (25%)

February 2018*12,533

11,803

13,9003.8%

14,100

3.7%

200

-0.1

〇

〇

MFLP Hiratsuka

March 2018

7,027

6,550

8,230

4.0%

8,410

3.9%

180

-0.1

〇

〇

MFLP Tsukuba

December 2018*

8,781

8,136

11,200

4.4%

11,300

4.3%

100

-0.1

〇

〇

MFLP Inazawa

February 201916,20014,771

18,9004.1%

19,300

4.0%

400

-0.1

〇

〇

MFLP Atsugi II

February 201913,10012,21715,3003.8%

15,600

3.7%

300

-0.1

〇

〇

MFLP Fukuoka I

February 2019*

5,263

4,818

6,250

4.2%

6,360

4.1%

110

-0.1

〇

〇

MFLP Prologis Park
Kawagoe (50%)

February 2020

14,80014,181

17,4503.8%

17,850

3.7%

400

-0.1

〇

〇

MFLP Hiroshima I

March 2020

14,48013,746

16,3004.4%

16,500

4.3%

200

-0.1

〇

〇

*1

*1

*1

CR

*1

Other

45

4

Appendix

Appraisal summary for the end of 14th fiscal period

22(Unit: million yen)

Acquisitiondate

Acquisition
price

End of14th
fiscalperiodBook
value

MFLP Ibaraki

October 2020

58,90056,817

67,9003.7%

68,900MFLP Kawaguchi I

October 2020

18,50018,07920,2003.7%

MFLP Yachiyo Katsutadai

February 2022

18,00017,73318,600MFLP Osaka I

February 2022

13,90013,752

MFLP Hiratsuka II

February 2022

12,700MFLP Osaka Katano

February 2023

MFIP Inzai

End of 13th fiscal period*(End of Jan. 2023) (a)End of 14th fiscal period*(End of Jul. 2023) (b)Appraisal
value

CR

Appraisal
value

CR

Change(b)-(a)Main factors of change

Appraisal
value

CR

3.6%

1,000

-0.1

〇

〇

20,600

3.6%

400

-0.1

〇

〇

4.0%

19,100

3.9%

500

-0.1

〇

〇

14,2003.8%

14,700

3.7%

500

-0.1

〇

〇

12,56013,4003.9%

13,700

3.8%

300

-0.1

〇

〇

16,50016,415

16,5004.8%

16,500

4.7%

0

-0.1

〇

〇

August 2016*

12,22011,362

14,0004.2%

14,300

4.1%

300

-0.1

〇

-

MFIP Inzai II

March 2021

15,15014,64816,7004.3%

17,000

4.2%

300

-0.1

〇

-

Total/average-

358,744

340,519

410,800

4.0%

417,680

3.9%

6,880

-0.1

-

-

*1

*1

*1

CR

*1

Other

Reference (as of February 1, 2024)*
MFLP Tomei Ayase(50%)

August 2023

9,610

9,610

-

-

9,610

3.7%

-

-

-

-

MFLP Tokorozawa

August 2023

4,090

4,090

-

-

4,090

4.6%

-

-

-

-

MFLP Hiratsuka III

February 2024

8,410

8,410

-

-

8,410

4.0%

-

-

-

-

MFLP Shinkiba I

February 2024

5,940

5,940

-

-

6,110

3.3%

-

-

-

-

SG Realty MFLP Fukuoka
Kasuya (50%)

February 2024

3,040

3,040

-

-

3,040

4.6%

-

-

-

-

Total/average after
acquisition of properties
acquired in the 16th FP-

389,834

371,609--448,940

3.9%

-

-

-

-

Difference＝Unrealized gain*
77,330 million yen* For further details, please refer to [Appraisal Summary for the End of 14th Fiscal Period] in the Notes on Matters Stated in this Document on p.52-54.
*1 CR = Capitalization rate based on direct capitalization method (NCF basis). the average indicates a weighted average based on the appraisal value.

46

4Appendix

Individual property income statement for 14th fiscal period(Unit: million yen)
GLP/
MFLP
MFLP
MFLP Yoko- MFLP
Ichikawa Kuki
hama Yashio
Shiohama
Daikoku

Number of days ofasset management

181

181

460

448

341

783

364

39

42

22

79

Total

499

491

363

Outsourcing
expenses

39

35

Utilities
expenses

26

RepairOperating expenses
expensesfromLand rent
realestatePropertyleasing
relatedtaxes
Otherexpenses
Total

Depreciation
Operating income(loss) from realestate leasing
NOI from real estateleasing[Operating income(loss) from realestate leasing +Depreciation])

181

181

181

181

181

181

181

181

181

181

181

181

181

181

181

181

MFIP
Inzai

MFIP
Inzai II

Total

181

181

-

181

181

407

479

1,709

10,819

33

27

31

125

658

863

398

434

511

1,835

11,478

30

61

29

26

41

98

707

36

Not
Not
Not
Not
disclosed disclosed disclosed disclosed
19
*
*
*
*

Not
disclosed
56
*

Not
Not
Not
Not
Not
disclosed disclosed disclosed disclosed disclosed
30
*
*
*
*
*

24

24

Not
Not
Not
Not
Not
Not
Not
disclosed disclosed disclosed disclosed disclosed disclosed disclosed
99
*
*
*
*
*
*
*

549

17

8

6

31

4

0

3

11

144

-

-

-

-

-

-

-

-

53

40

42

40

81

38

46

59

163

1,062

2

2

1

4

1

1

3

98

150

125

124

99

-

-

-

-

234

-

104

-

-

-

-

-

99

132

472

-

-

-

-

-

-

-

2,668

80

111

90

63

63

49

50

206

89

87

51

94

183

114

56

107

133

426

93

151

91

86

272

96

130

2,984

293

255

174

197

170

136

127

421

80

206

125

157

231

194

68

227

245

936

304

258

185

203

181

210

231

5,825

374

366

264

260

233

186

177

628

169

294

176

252

414

308

125

334

378 1,363

398

409

277

290

453

306

362

8,810

* Not disclosed, because consent has not been obtained from the lessee.

181

MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
MFLP MFLP
MFLP
MFLP
Prologis
MFLP
Yachiyo MFLP
HiratsukAtsugi Fukuoka
HiroKawaHiraOsaka
Komaki Hino
Tsukuba Inazawa
Park
Ibaraki
Katsu- Osaka IaIIIshima I
guchi Itsuka II Katano
Kawagoe
tadai

181

Lease
business
revenue
OperatingOtherrevenue
leasefrom realbusiness
estaterevenueleasing

181

MFLP
MFLP
FunaMFLP MFLP
Atsugi bashi Kashiwa Sakai
Nishiura

47

4

Appendix

Statement of income and Balance sheet
Statement of income
Item
Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative
service fees
Directors’ compensations
Other operating expenses
Operating income

Balance sheet

13th fiscal period(ended Jan. 31, 2023)
Actual(Unit: million yen)
14th fiscal period(ended Jul. 31, 2023)
Actual

10,96011,478

10,245

10,819

714

658

6,455

6,874

Consumption taxes receivable

5,652

Other current assets

5,271
1,067

1,100

37

37

Item
Current assets

6

72

77

4,504

4,604

629

7,685

7,328

-

1,143

Non-current assets
Property, plant and equipment
Deferred assets

18,767

Short-term borrowings

10

15

Current portion of long-term loans payable
Accounts payable
Income taxes payable
Income consumption taxes payable
Advances received

9

Profit before income taxes

4,206

4,261

Income taxes

01Profit (Net income)

4,205

4,260

Unappropriated retained earnings

4,205

4,260

644

14,304

288

4,261

25

Current liabilities

224

21

339,952
104

Operating accounts payable

4,206

326,670

350,0132

Ordinary income

340,596336,551

344

28

211

326,695

Total assets

302

43

90

114

Non-operating expenses

2

9,312

Cash and deposits in trust

3

1

9,741
1,966

Non-operating income
Interest expenses
Interest expenses on investment
corporation bonds
Amortization of investment corporationbonds
Amortization of investment
unit issuance expenses
Other(Unit: million yen)
14th fiscal period(ended Jul. 31, 2023)
ActualCash and deposits

Other non-current assets
6

13th fiscal period(ended Jan. 31, 2023)
ActualOther current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Tenant leasehold and security deposits in trust

791

400

-

4,500

9,600

10,600

1,257

1,321

0

1

789

-

1,851

1,933

14

11

118,015

127,593

5,000

5,000

106,100

115,100

6,915

7,493

Total liabilities

132,320

146,361

Total unitholders’ equity

204,230

203,652

Unitholders’ capital

203,299

203,299

Deduction from unitholders’ capital-3,274-3,907

Unitholders’ capital, net
Surplus
Total net assets

200,025
4,205
204,230

199,391
4,260
203,652

Total liabilities and net assets

336,551

350,01348

4

AppendixExternal evaluation and certifications
DBJ Green Building
certification

Property name

DBJ Green
Building *GLP・MFLP Ichikawa
Shiohama
MFLP Kuki
MFLP Yokohama Daikoku

ZEB Ready★★★★★

DBJ Green
Building *MFLP Prologis Park Kawagoe★★★★

MFLP Hiroshima I★★★★

Rank A*★★★★★

ZEB Ready

MFLP Ibaraki★★★★

Rank A*★★★★★

ZEB Ready

MFLP Kawaguchi I★★★★

Rank S*★★★★★

ZEB Ready★★★★★

Nearly ZEB

BELS

ZEB

★★★★★

Rank A*ZEB Ready

Rank A*

Rank A*
★★★★★

★★★★★

Rank S*MFLP Komaki

ZEB Ready

Rank A*
★★★★

★★★★★

MFLP Hiratsuka

ZEB Ready

Rank A*★★★★

Rank A*

MFLP Atsugi II
MFLP Fukuoka I★★★★★

CASBEECASBEE(New(Real estate) **construction)

Property name

MFLP Yachiyo Katsutadai★★★★*

MFLP Kashiwa

MFLP Inazawa

ZEB

ZEB

Rank A*

Rank A*

MFLP Hino

BELS

★★★★
Rank A*

MFLP Funabashi Nishiura

MFLP Sakai *1

Rank S*

Rank A*★★★★★

MFLP Yashio
MFLP Atsugi

CASBEECASBEE(New(Real estate) **construction)
Rank A*★★★

BELSCASBEE

Rank A*★★★★★

ZEB Ready

Rank A*

★★★★★

『ZEB』

MFLP Osaka I

Rank A*★★★★★

ZEB Ready

MFLP Hiratsuka II

Rank A*★★★★★

ZEB Ready

★★★★★

『ZEB』

★★★★★

Nearly ZEB

★★★★★

『ZEB』

★★★★★

『ZEB』

18

16

Acquired in 14th FP
MFLP Osaka Katano

Rank A

Acquired in 15th FP
MFLP Tomei Ayase

Rank A*

Acquired in 15th FP
MFLP Tokorozawa

Rank B+*

Anticipated acquisition
MFLP Hiratsuka III

Rank A*

Anticipated acquisition
MFLP Shinkiba I

Rank A** For further details, please refer to [Green Building certification] in the Notes on Matters Stated in this Document on p.52-54.
*1 In addition to the above green certifications, MFLP Sakai also won the FY2015 Osaka Environmentally Friendly BuildingAward (Retail and other facilities category).

Anticipated acquisition
SG Realty MFLP Fukuoka
Kasuyacertifications acquired Total

Rank A

10

11

15

49

4

Appendix

Investment Unit Price Trends/Status of Unitholders(yen)

Investment unit price (closing price)

660,000

TSE REIT Index (indexed)

560,000

460,000

360,000

IPO issue price: 270,000 yen
260,000

160,000

2016
8/2

2016
10/31

2017
1/31

2017
4/30

2017
7/31

2017
10/31

2018
1/31

2018
4/30

2018
7/31

2018
10/31

2019
1/31

2019
4/30

2019
7/31

2019
10/31

2020
1/31

2020
4/30

2020
7/31

2020
10/31

2021
1/31

2021
4/30

2021
7/31

2021
10/31

2022
1/31

2022
4/30

2022
7/31

2022
10/31

2023
1/31

2023
4/30

2023
7/31

* the starting point is the price of the first trade at IPO on August 2, 2016.
* the TSE REIT Index is indexed to the August 2, 2016 opening price.

Status of unitholders at the end of 14th fiscal period (end of July 2023)◼ Number of Unitholders and Number of Investment Units
by Type of Unitholder■ Major Unitholders

Number ofunitholders% of total

Number ofinvestment
units% of total

Number ofinvestment
units

Individuals/Other

7,230

91.6%

27,573 units

4.8%

Custody Bank of Japan, Ltd. (trust account)

103,613 units

18.0%

Financial institutions

167

2.1%

308,913 units

53.6%

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

91,467 units

15.9%

Other Japanese
corporations

209

2.6%

37,636 units

6.5%

Mitsui Fudosan Co., Ltd.

28,900 units

5.0%

Non-Japanese

265

3.4%

178,179 units

30.9%

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

26,573 units

4.6%

Securities companies

18

0.2%

23,699 units

4.1%

SMBC Nikko Securities Inc.

16,949 units

2.9%

Total

7,889

100.0%

576,000 units

100.0%

267,502 units

46.4%

Total

% of total

50

4

Appendix

Mitsui Fudosan’s Major Development / Operation Track Record *Fiscal yearofcompletion

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Property developed/operated

Total floor
area

MFLP Yokohama Daikoku

100,530㎡

GLP/MFLP Ichikawa Shiohama

105,019㎡

MFIP Inzai

40,478㎡

MFLP Yashio

40,728㎡

MFLP Kuki

73,153㎡

MFLP Sakai

125,127㎡

MFLP Funabashi Nishiura

30,947㎡

MFLP Atsugi

40,942㎡

MFLP Hino

205,200㎡

MFLP Kashiwa

31,242㎡

MFLP Funabashi I

197,746㎡

MFLP Fukuoka I

32,199㎡

MFLP Hiratsuka

33,061㎡

MFLP Komaki

40,597㎡

MFLP Inazawa

72,883㎡

MFLP Ibaraki

230,435㎡

MFLP Tsukuba

62,484㎡

MFLP Atsugi II

48,976㎡

MFLP Prologis Park Kawagoe

117,337㎡

MFIP Haneda

80,334㎡

MFLP Hiroshima I

68,427㎡

MFLP Funabashi II

227,003㎡

MFLP Kawaguchi I

49,838㎡

MFLP Hiratsuka II

48,141㎡

MFLP Yokohama Kohoku

45,512㎡

MFLP Kawasaki I

49,801㎡

MFIP Inzai II

27,268㎡

MFLP Tachikawa Tachihi

55,094㎡

MFLP Osaka I

43,919㎡

MFLP Yachiyo Katsutadai

74,624㎡

MFLP Tosu

35,248㎡

Acquisition
by MFLPREIT● (50%)● (50%)●●●●●●● (25%)
●
●
●
●
●
●
●
●
● (50%)
●
●
●
●
●
●
-

Properties defined in“Right of first look andpreferential negotiationrightsagreement”/Acquisition
under exclusive
negotiation*● (75%)●-

Fiscal yearofcompletion

Fiscal 2021

Fiscal 2022

Fiscal 2023

Fiscal 2024

Fiscal 2025

Fiscal 2026

TBD

Acquisition
by MFLPREIT

Properties defined in“Right of first look andpreferential negotiationrightsagreement”/Acquisition
under exclusive
negotiation*

Property developed/operated

Total floor area

MFLP Tokorozawa
MFLP Funabashi III
MFLP Osaka Katano
MFLP Ichikawa Shiohama II
MFLP Tomei Ayase
Tokyo Rail Gate EASTMFLP Ebina I
SG Realty MFLP
Fukuoka Kasuya
MFLP Shinkiba I
MFLP Yatomi Kisosaki
MFLP Hiratsuka III
MFLP Shinkiba II
MFLP Zama
MFLP・OGUD Osaka Torishima
MFLP Ebina Minami
MFLP Sendai Natori I
MFLP Nagoya Iwakura
MFLP・LOGIFRONT Tokyo Itabashi
MFLP Tsukubamirai
MFLP Amagasaki I
MFLP Ichinomiya
MFLP Iruma I
MFLP Misato
MFLP Iruma II
MFIP Ebina
MFLP Funabashi Minamikaijinanother data center (1 property)
other overseas properties(4 properties)

21,721㎡
270,321㎡
68,528㎡
166,099㎡
61,441㎡
165,272㎡
121,909㎡●●● (50%)-●● (60%)-

35,626㎡● (50%)●● (41.5%)● (50%)

-

●
●
-

-

-

-

9,584㎡
86,319㎡
29,474㎡
27,078㎡
134,508㎡
59,350㎡
Approx. 37,470㎡
Approx. 44,793㎡
Approx. 58,444㎡
Approx. 256,100㎡
Approx. 96,501㎡
Approx. 35,932㎡
Approx. 66,043㎡
Approx. 90,416㎡
Approx. 38,826㎡
Approx. 65,158㎡
Approx. 40,040㎡
Approx. 20,570㎡

-

-

-

*1 “Acquisition by MFLP-REIT” and “Properties defined in “Right of first look and preferential negotiation rights agreement”/Acquisition
under exclusive negotiation” indicate the status after the acquisition of “MFLP Hiratsuka III”, “MFLP Shinkiba I” and “SG Realty MFLP
Fukuoka Kasuya” which are scheduled to be acquired on February 1, 2024.
*2 MFLP Yokohama Daikoku is listed under the fiscal year in which the property began its operations. the fiscal year of completi on of
the property is fiscal 2009. the fiscal year of completion of the existing building of MFLP Tsukuba is fiscal 2010.
*3 the percentage figures in parentheses is the percentage of (quasi) co-ownership interest in the portfolio asset.

51

Notes on Matters Stated in this Document
Unless otherwise specified, figures indicated in whole numbers are rounded down to the nearest specified unit and figures with a decimal point are rounded to the nearest indicated unit.
Unless otherwise specified, descriptions are made based on the following.
[Highlights] / [Basic Strategy and Four Roadmaps] / [Internal Growth Strategy] / [Our Portfolio]“Distributions per unit (DPU) ”
Includes distributions in excess of earnings. (Number of investment units issued and outstanding: 224,000 units at the end of the 1st/2nd/3rd fiscal periods / 262,774 units at the end of 4th and 5th fiscal periods / 379,000 units at the end of 6th and 7th fiscal periods/ 441,000 units at the end of 8th fiscal period / 542,000 units at the end of 9th/10th/11th fiscal periods / 576,000 units at the end of 12th/13th/14th fiscal periods / 608,000 units at the end of 15th and 16th fiscal periods)“Occupancy rate”
Leased area as a percentage of leasable area. Based on concluded agreements as of July 31, 2023 (end of 14th fiscal period).
Average occupancy rate during the fiscal period is the simple average of the occupancy rate as of the end of each month during the fiscal period. Based on concluded agreements“Green Building certification”
Calculations based on total floor area before considering (quasi) co-ownership interests.
“LTV”
LTV = Balance of interest-bearing debt ÷ Total assets“Acquisition capacity”
Amount of debt that can be additionally financed assuming that LTV is raised to 50%. the amount indicated is rounded to the nearest billion yen.
“Adjusted forecast NOI yield”
Annualized after subtracting the fixed asset tax and city planning tax for the property acquired in the 14th and 15th fiscal period from the NOI assumed in the earnings forecast for the 14th ,15th and 16th fiscal periods as well as adjusting special factors, anddividing it by the total acquisition price.
Subtotal (average) and total (average) for each category indicate the weighted average based on acquisition price.
“Appraisal NOI / Appraisal value”
Ratio of net operating income under direct capitalization method stated in real estate appraisal report (“Appraisal NOI”) divided by appraisal value. the subtotal (average) and total (average) of “Appraisal NOI / Appraisal value” for each category indicate theweighted average based on the appraisal value.
“Building age”
Number of years from the date of construction of the main building of a property acquired in the register to July 31, 2023 (end of 14th fiscal period).
“Average building age” and subtotal (average) and total (average) indicates the weighted average based on the total floor area, considering the (quasi) co-ownership interest of each property.
“Calculation of average lease term”"Average lease term" is calculated using the average of the lease terms stated in concluded lease agreements as of July 31, 2023 weighted by the leasable floor area.
With regard to the lease agreements to be included in the calculation, when a re-contract starting on the day immediately following the expiration date of the respective lease agreement is concluded with the same lessee, the lease term is deemed to be from thestart of the initial lease agreement to the expiration date of the re-contract, and used in the calculation as such.
“Calculation of remaining lease contract period”"Average lease term" is calculated using the average of the remaining period in the lease terms after July 31, 2023, based on the concluded lease agreements as of July 31, 2023.
With regard to the lease agreements to be included in the calculation, when a new lease agreement ("re-contract") is concluded with the same lessee, the remaining period shall be calculated assuming that the lease period continues from the day immediately
following the expiration date of the previous contract to the expiration date of the re-contract.
“Top 5 property ratio”
The sum of the acquisition prices of the five largest properties as a percentage of the total acquisition price.
“Top 5 tenant ratio”
The total leased area of top five tenants as a percentage of the total leased area (excluding MFIPs).
“Multi-tenant properties/Single-tenant properties/BTS”
Multi-tenant properties mean “GLP・MFLP Ichikawa Shiohama”, ”MFLP Kuki”, ”MFLP Yokohama Daikoku”, “MAFLP Yashio”, “MALP Sakai”, “MALP Komaki”, “MFLP Hino”, “MFLP Inazawa”, “MFLP Atsugi II”, “MFLP Prologis Park Kawagoe”, “MFLP Hiroshima I”,“MFLP Ibaraki”, “MFLP Kawaguchi I”, “MFLP Yachiyo Katsutadai”, MFLP Hiratsuka II”. Single-tenant properties mean “MFLP Atsugi”, “MFLP Funabashi Nishiura”, “MFLP Kashiwa”, “MFLP Hiratsuka”, MFLP Tsukuba”, “MFLP Fukuoka I”, and “MFLP Osaka I”.
BTS mean “MFIP Inzai”, “MFIP Inzai II”.
“NAV per unit”“End of FP ended January 2017 (End of 1st FP)”: (Net assets as of the end of FP ended January 2017 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended January 2017) / Number of investment units issued andoutstanding (224,000 units)“After acquisition of Anticipated acquisitions”: (Forecast NAV as of the end of FP ended January 2024 (End of 15th FP) + Unrealized gain on appraisal basis of property acquired in 16th FP (*) + Total issue amount of 6th public offering (15,363,200,000 yen) /Number of investment units issued and outstanding (608,000 units)*“Forecast NAV for FP ending January 2024 (end-15th FP)”: Net assets as of the end of FP ended July 2023 + Unrealized gain on 27 acquired properties (including anticipated acquisitions) as of the end of January 2024 after factoring in depreciation.
*Unrealized gain on appraisal basis of property acquired in 16th FP: Appraisal value of property acquired in 16th FP – Acquisition price of property acquired in 16th FP.
*Calculation of NAV as of the end of each fiscal period based on net assets as of the end of each FP and unrealized gain on appraisal basis less total distribution amount divided by number of investment units issued and outstanding.
“Market cap”
End of FP ended July 2023 (End of 14th FP):
Closing price of the investment unit as of the end of the FP ended July 2023 (506,000 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended July 2023 (576,000 units).
After 6th follow-on offering (As of August 31, 2023):
Closing price of the investment unit as of the end of the FP ended August 2023 (495,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended August 2023 (608,000 units).
Market cap as of end of each FP calculated using closing price at end of FP multiplied by number of investment units issued and outstanding as of the end of each FP.
“Appraisal value”
Appraisal values corresponding to the (quasi) co-ownership interest ratio of each property as the appraisal date are indicated. Appraisal values with July 31, 2023 (End of 14th FP) as the appraisal date are indicated for properties owned as of the end of 14th FP,
and those with May 31, 2023 as the appraisal date are indicated for properties acquired in 15th and 16th FP.
“Appraisal NOI yield”
Ratio of Appraisal NOI to acquisition price. “Average NOI yield” and subtotal (average) and total (average) for each category indicate the weighted average based on acquisition price.
“Total floor area”
Figures based on the record on the register, rounding down to the nearest whole number.
“Leasable area”
The total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable based on the lease agreement or floor plan, etc. for such building as of July 31, 2023 (End of 14th FP).
(not include the leased area indicated in the lease agreements concerning shops, vending machines, solar power generation facilities, parking lots, nursery centers and the like)52

Notes on Matters Stated in this Document[Properties defined in “Right of first look and preferential negotiation rights agreement”]“Properties defined in “Right of first look and preferential negotiation rights agreement” refers to properties on the list of right of first look and preferential negotiation properties pertaining to real estate subject to provision of information, presented based on the Rightof first look and preferential negotiation rights agreement executed between the Asset Management Company and Mitsui Fudosan upon the Asset Management Company managing MFLP-REIT’s assets. “Real estate subject to provision of information” refers to,among real estate, etc. held by Mitsui Fudosan or a real estate fund which accepted investment or monetary contribution of Mitsui Fudosan, those which are judged to have the possibility to be sold to MFLP-REIT at Mitsui Fudosan’s discretion.
the (number of) subject properties and ratio/total floor area indicate figures after considering co-ownership interest (or quasi co-ownership interest).
[Major properties developed/operated by Mitsui Fudosan]
Based on materials released by Mitsui Fudosan on November 5, 2019, April 21, 2022 and financial results materials of Mitsui Fudosan for the fiscal year ended March 31, 2023 indicates the area recorded in the property registry or the certificate of completion forcompleted properties, the area stated on the building confirmation certificate for uncompleted properties that are properties defined in “Right of first look and preferential negotiation rights agreement,” and the area stated in the material published by Mitsui Fudosan
for all other properties. the area for uncompleted properties is the planned area and is subject to change.
“Cumulative total investment size” includes properties under development or scheduled to be developed as of each date of publication and their (planned) investment amount. Properties scheduled to be developed include those targeted or planned by the Mitsui
Fudosan Group as of the date of this document and are subject to change or cancellation.
Furthermore, there are no details concerning the timing of completion of the aforementioned investments that had been finalized as of the date of this document. Nor does MFLP-REIT guarantee or promise that the plans be materialized.
“Tokyo Rail Gate EAST” is included in terms of the number of facilities and total floor area, but not in term of the amount. Mitsui Fudosan has no plans to acquire the property as of the date of this document.
[Method of calculation of cash distribution based on FFO]
(1) Distribution of earnings is determined based on profit (net income) for the applicable operating period.
(2) FFO for the applicable operating period is calculated by adding depreciation to profit (net income) (excluding gain or loss on sale of real estate, etc.) for the applicable operating period.
(3) the amount distributable including distribution in excess of earnings is calculated based on a threshold of at equivalent up to a maximum of 75% of FFO for the applicable operating period.
(4) the amount distributable in excess of earnings is calculated by deducting the amount of distribution of earnings (excluding gain or loss on sale of real estate, etc.) from the amount distributable including distribution in excess of earnings.
(5) the amount of continuous distribution in excess of earnings is determined based on a comprehensive judgment on the basis of the amount distributable in excess of earnings.
(6) the distribution in excess of earnings determined in 5. above is to be continuously made each fiscal period in principle, in addition to the distribution of earnings determined in 1. above.
In addition, in cases where the distribution amount for distributions per unit is expected 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 one-off distribution in excess ofretained earnings may be executed in order to standardize the amount of the distributions per unit.
[Earnings Forecast]
Until the 15th FP (fiscal period ending January 31, 2024), in the case of concluding a lease contract that reduces the rent for a certain period of time because of free rent or the like, revenue is recognized at the reduced rent for the said certain period and in thecase of concluding a lease contract in which the rent fluctuates during the lease period, revenue is recognized at the rent corresponding to each period. From the 16th FP (fiscal period ending July 31, 2024), only when the total amount of rent after February 1, 2024
in the lease contract is fixed, the calculation method will be changed to recognize revenue on a straight-line basis over the contract period after February 1, 2024, including such certain period and fluctuation period. Whether this accounting policy will be changed
has not yet been determined.
[Industrial real estate]
Real estate which is used to provide the framework for industrial activity such as data centers, communications facilities, research facilities, manufacturing plants and supply/treatment facilities.
[ZEB certification]
ZEB (Net Zero Energy Building) is a building that aims to achieve a zero energy balance through substantial reductions in annual primary energy consumption. this is achieved by saving as much energy as possible via better thermal insulation of the building andhighlyefficient equipment, coupled with creating energy by photovoltaic power generation (or other energy generating methods), while maintaining a comfortable environment. In the BELS certification system, the certification of the level of ZEB is presented in four stages:“『ZEB』,” “Nearly ZEB,” “ZEB Ready,” and “ZEB Oriented.” “ ZEB Ready” is awarded to buildings that achieve primary energy reduction of 50% or higher.
[Annual solar power generation]
Actual power generated between January and the end of December 2022 at 12 properties with solar power generation facilities and owned by MFLP-REIT as of July 31, 2023 is indicated.
the total power generation amount of the entire properties is indicated regardless of ownership ratio held by MFLP-REIT.
[About analysis of Japan's logistics facilities stock](1) The "Analysis of Japan's logistics facilities stock" graph is of estimates by CBRE K.K. based on the Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism's "Building Starts" and the Ministry of Internal Affairs and Communications’"Summary Report on Prices, etc. of Fixed Assets."(2) In the "Analysis of Japan's logistics facilities stock" graph, "Leading-edge logistics facilities" is the figure of each year's sum total of the gross floor area of leading-edge logistics facilities (refers to rental logistics facilities that have gross floor area of at least
10,000 m2
and, in principle, ceiling height of at least 5.5 meters, floor load capacity of at least 1.5 tons/m2 and column spacing of at least 10 m).
(3) In the "Analysis of Japan's logistics facilities stock" graph, "Estimate for logistics facilities 40 years old or older" is the figure of each year's overall stock estimate (as covered by note 5; the same shall apply hereinafter) minus the sum total of the floor area of
which
construction was started within the past 40 years.
(4) "Estimate for logistics facilities less than 40 years old" is the figure of the overall stock estimate minus the floor area of "Estimate for logistics facilities 40 years old or older" and "Leading-edge logistics facilities."(5) the overall stock estimate is the sum total of "Estimate for logistics facilities 40 years old or older," "Estimate for logistics facilities less than 40 years old" and "Leading-edge logistics facilities."(6) In the "Analysis of Japan's logistics facilities stock" graph, "Share of leading-edge logistics facilities" is each fiscal year's "Leading-edge logistics facilities" expressed as a percentage of the overall stock estimate (gross floor area basis).
(7) In the "Analysis of Japan's logistics facilities stock" graph, "Share of logistics facilities 40 years old or older" is each fiscal year's "Estimate for logistics facilities 40 years old or older" expressed as a percentage of the overall stock estimate (gross floor area basis).
(8) "Gross floor area" is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed to be completed after one year has elapsed from construction start. Accordingly,
gross floor area may not match the floor area on the building confirmation certificate, construction completion drawing or register.

53

Notes on Matters Stated in this Document[Appraisal Summary for the End of 14th Fiscal Period]
For appraisal values for properties where MFLP holds (quasi) co-ownership interests, the appraisal value reflects the ratio of (quasi) co-ownership interest.
The acquisition periods of “MFLP Sakai”, “MFLP Komaki”, “MFLP Hino”, “MFLP Tsukuba”, “MFLP Fukuoka I” and “MFIP Inzai” are divided into multiple periods, but the initial acquisition dates (Sakai: upon acquisition of 20% quasi co-ownership interest, Komaki: uponacquisition of 40% quasi co-ownership interest, Hino: upon acquisition of 15% quasi co-ownership interest, Tsukuba: upon acquisition of 60% quasi co-ownership interest, Fukuoka I: upon acquisition of 81% quasi co-ownership interest, Inzai: upon acquisition of 20%
quasi co-ownership interest) are indicated.
Book value of “MFLP Tomei Ayase”, “MFLP Tokorozawa”, “MFLP Hiratsuka III”, “MFLP Shinkiba I” and “SG Realty MFLP Fukuoka Kasuya” at the end of 14th fiscal period as of February 1, 2024 indicates acquisition price; and appraisal value and CR at the end of 14th
fiscal period indicates appraisal value with May 31, 2023 as the date of value.
Unrealized gain is a figure obtained by subtracting the period-end book value from appraisal value.
[Green Building certification]
With regard to “DBJ Green Building Certification”, only the certification for MFLP Atsugi has expired.
With regard to “CASBEE New Construction Certification” the certifications for all certified properties except for MFLP Prologis Park Kawagoe have expired.
With regard to “CASBEE Real Estate Certification”, there are 2 types of certification of comprehensive building environment efficiency: an assessment conducted by either an external body or the relevant local government, a system mainly employed byordinance designated cities. With the exception of GLP/MFLP Ichikawa Shiohama, all certifications were based on applications for assessments under CASBEE-based systems established by local governments. the certifications for GLP/MFLP Ichikawa Shiohama
have expired.

Disclaimer
This document is provided solely for informational purpose with regard to Mitsui Fudosan Logistics Park Inc. (MFLP-REIT) and is not intended to serve as an
inducement or solicitation to trade in any product offered by MFLP-REIT.
Purchase, sale and such of MFLP’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 MFLP-REIT’s investment units or investment corporation bonds. this document should not beinterpreted as constituting disclosure documents or asset management report required under Financial Instruments and Exchange Act or the Act on Investment
Trusts and Investment Corporations.
Concerning the information provided in this document, although MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. make every effort toprovide correct information, its accuracy, adequacy or completeness are not guaranteed regardless of the information being prepared by MFLP-REIT and Mitsui
Fudosan Logistics REIT Management Co., Ltd. or being received from third-parties.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking statements presented
by MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co., Ltd. according to assumptions or judgement based on information available on the date of thisdocument (the date if specified otherwise in the document). Forward-looking statements are based on assumptions such as the investment policy of MFLP-REIT,
applicable laws and regulations, market environment, interest rate environment, business practice and other facts as of the preparation date of this document, anddo not reflect or consider changes in situations after the preparation date. Forward-looking statements include, explicit or implied, uncertainties of existing risks,
unknown risks and other factors, and may materially differ from actual performance, business results, financial status and such of MFLP-REIT.
The content of this document is subject to change or repeal without prior notice. MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. are under
no obligation to update or publicly disclose the content of this document (including forward-looking statements).
Duplication or reproduction of any content presented in this document without the prior consent of MFLP-REIT or Mitsui Fudosan Logistics REIT Management
Co., Ltd. is strictly prohibited.

54

55