9th Fiscal Period
Asset Management Report

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

From: August 1, 2020
To: January 31, 2021

I.

To Our Unitholders
Mitsui Fudosan Logistics Park Inc. (MFLP-REIT), which listed on the Tokyo Stock Exchange Real Estate Investment Trust (REIT)
Market on August 2, 2016, has ended its 9th fiscal period in January 2021 with smooth sailing, increasing revenue, income, anddistributions for a eighth consecutive period.
I would like to convey my sincere appreciation to you, our unitholders, for your continued support of MFLP-REIT.
In Japan, the economy continues to face extremely challenging conditions due to the continued effects of the novel coronavirus
disease (COVID-19) inside and outside Japan; nevertheless, the undertone of the economy is one of recovery. For now, economic
activity remains at low level compared with before the pandemic, mainly in the face-to-face service sector. However, as the domestic
and overseas impact of COVID-19 gradually lessens, economic activity is expected to recover even further, supported by an increasein external demand and an accommodative financial environment, as well as the government’s economic policies.
In the logistics market, demand for advanced logistics facilities will remain extremely stable. The continued expansion of the 3PL
business, which specializes in outsourced logistics services, is occurring in tandem with an acceleration in the growth of the ecommerce market scale driven by consumption related to staying at home, as well as expansion in needs for consolidating delivery
and logistics bases in the retail and manufacturing industries. We will carefully monitor the impact of COVID-19, including
economic and social trends, and financial and real estate market trends.
Going forward, I ask our unitholders for their continued support and cooperation, as MFLP-REIT will continue its operation withthe aim of boosting unitholder value.

-2-II. Asset Management Report
1. Overview of Asset Management(1) Management and other performance highlights of the investment corporation
9th period
7th period
5th period
8th period
6th period(From August 1,(From August 1,(From August 1,(From February(From February
2020
2019
2018
1, 2020
1, 2019
to January 31,
to January 31,
to January 31,
to July 31, 2020)
to July 31, 2019)
2021)
2020)
2019)

Fiscal period(millions of yen)

8,139

6,363

5,064

4,969

3,280

(millions of yen)

[8,139][6,363][5,064][4,969][3,280](millions of yen)

4,353

3,482

2,748

2,650

1,720

(millions of yen)

[3,471][2,816][2,175][2,134][1,338]Operating income(millions of yen)

3,786

2,881

2,315

2,318

1,560

Ordinary income(millions of yen)

3,580

2,735

2,238

2,203

1,520

Net income(millions of yen)

3,579

2,734

2,237

2,202

1,519

Total assets(millions of yen)

285,205

208,243

157,023

160,681

104,591(%)[37.0][32.6][(2.3)][53.6][4.3](millions of yen)

187,747

139,026

109,060

109,284

73,390(%)[35.0][27.5][(0.2)][48.9][(0.0)](millions of yen)

88,30062,90042,90046,80028,000(millions of yen)

184,168

136,292

106,822

107,081

71,870(units)542,000

441,000

379,000

379,000

262,774(yen)

346,398

315,253

287,758

288,349

279,292

Net income per unit (Note 4)

(yen)

7,074

6,215

5,904

5,823

5,783

Total amount of distributions(millions of yen)

3,947

3,076

2,495

2,461

1,604

(yen)

7,283

6,977

6,584

6,496

6,105

(yen)

[6,604][6,200][5,905][5,811][5,783]

(yen)

[679]

[777]

[679]

[685]

[322]

(%)

1.5

1.5

1.4

1.7

1.5

[Annualized]

(%)

[2.9]

[3.0]

[2.8]

[3.4]

[2.9]

Return on equity (Note 5)

(%)

2.2

2.2

2.0

2.4

2.1

[Annualized]

(%)

[4.3]

[4.4]

[4.1]

[4.9]

[4.1]

Equity ratio at end of period(Note 5)

(%)

65.8

66.8

69.5

68.0

70.2

[Period-on-period change](%)[(0.9)][(2.7)][1.4][(2.2)][(3.1)]

Payout ratio (Note 5)

(%)

100.0

100.0

100.0

100.0

100.0

(days)

184

182

184

181

184

(properties)

20

18

16

16

13

(%)

100.0

100.0

99.1

100.0

100.0

(millions of yen)

2,059

1,661

1,326

1,314

772

(millions of yen)

178

77

91

86

36

(millions of yen)

6,727

5,208

4,215

4,149

2,715

(millions of yen)

5,639

4,395

3,564

3,517

2,292

(yen)

10,404

9,967

9,405

9,280

8,722

Operating revenues[Of which: Property leasing
business revenues]
Operating expenses[Of which: Property leasing
business expenses][Period-on-period change]
Net assets[Period-on-period change]
Interest-bearing debt
Unitholders’ capital, net(Note 3)
Total number of investment
units issued and outstanding
Net assets (Net asset value(NAV)) per unit

Distribution per unit
[Of which: Distribution of
earnings per unit][Of which: Distribution inexcess of retained earnings
per unit]
Ratio of ordinary income tototal assets (Note 5)

Other reference information
Number of days of asset
management during period
Numberofinvestment
properties at end of period
Occupancy rate at end of period(Note 6)
Depreciation and amortization(Note 7)
Capital expenditures
Net operating income (NOI)
from property leasing (Note 5)
Funds from operations (FFO)(Note 5)
FFO per unit (Note 5)-3-

Ratio of interest-bearing debt tototal assets at end of period(LTV ratio) (Note 5)

(%)

31.0

30.2

27.3

29.1

26.8

(Note 1) Operating revenues, etc. do not include consumption taxes.
(Note 2) Unless otherwise specified, any numerical figures are rounded down to the nearest specified unit and percentage figures are rounded to the firstdecimal place.
(Note 3) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 4) “Net income per unit” is calculated by dividing net income by the daily weighted average number of investment units. Diluted net income perunit is not stated because there are no dilutive investment units.
(Note 5) The following formulas are used in calculations.
Ratio of ordinary income tototal assets

Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100

Return on equity

Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100

Equity ratio at end of period

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

Payout ratio

Distribution per unit (excluding distribution in excess of retained earnings) ÷ Net income per unit × 100(rounded to the first decimal place)
Payout ratios for the 6th fiscal period, the 8th fiscal period and the 9th fiscal period are calculated by thefollowing formula, because new investment units were issued.
Total amount of distribution (excluding distribution in excess of retained earnings) ÷ Net income × 100

Net operating income (NOI)
from property leasing

Property leasing business revenues − Property leasing business expenses + Depreciation and amortization

Funds from operations (FFO)

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

FFO per unit

FFO ÷ Total number of investment units issued and outstanding

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

Interest-bearing debt at end of period ÷ Total assets at end of period × 100(Note 6) “Occupancy rate at end of period” is leased area of the building expressed as a percentage of leasable area of the building of each real estate intrust on each lease agreement concluded for each property as at the end of the fiscal period, rounded to the first decimal place.
(Note 7) “Depreciation and amortization” is depreciation and amortization of investment and rental property.

-4-(2) Developments in management of assets in the fiscal period under reviewi) Brief history of the investment corporation
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March 4,2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer, and listed on the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock
Exchange, Inc. (“Tokyo Stock Exchange”) on August 2, 2016 (Securities Code: 3471). MFLP-REIT held assets totaling 20
properties amounting to a total acquisition price of ¥282.4 billion as at the end of the fiscal period under review.
ii) Investment environment and management performance
In Japan, while the economy continues to face challenging conditions due to the effects of the novel coronavirus disease (COVID19) inside and outside Japan, the underlying trend is that of a recovery. The trend in capital investment varied between industries,
but as a whole has leveled off after falling. As the effects of COVID-19 continue, weak trends persisted in the employment andincome environments. Private consumption is gradually recovering, but downward pressure on service consumption such as bar
and restaurant and lodging services is now increasing. In the logistics market, with the 3PL business (Note) specializing inoutsourced logistics services expanding in market size and the needs of 3PL providers for rental of multifunctional and highlyconvenient logistics facilities on the rise, while it cannot be denied that the spread of COVID-19 may have a negative effect on the
future logistics market, the demand for leading-edge logistics facilities is expected to continue to increase.
Under such circumstances, upholding a basic policy of pursuing maximization of unitholder value by achieving sustainable growththrough formation of a strategic partnership in the logistics facilities business with Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”),
MFLP-REIT has conducted steady management of the 20 properties held as at the end of the fiscal period under review (totalacquisition price of ¥282.4 billion) to maintain an excellent occupancy rate of 100.0% for the entire portfolio as at the end of the
fiscal period under review.
(Note)“3PL business” refers to the third-party logistics business (business of providing logistics services to client companies outsourcing part or all of
their supply chain management functions).

iii) Overview of financing
MFLP-REIT procured funds of ¥45,922 million through public offering with a payment date of October 5, 2020, and ¥2,296 million
through third-party allotment with a payment date of October 19, 2020. As a result, unitholders’ capital, net was ¥184,168 million
at the end of the fiscal period under review. In the fiscal period under review, MFLP-REIT executed debt financing of ¥31,000
million (short-term loans payable of ¥6,500 million; long-term loans payable of ¥24,500 million) in October 2020 to fund theacquisitions of MFLP Ibaraki and MFLP Kawaguchi I; and ¥2,000 million (short-term loans payable) in September 2020, ¥3,000
million (short-term loans payable) in November 2020, ¥2,700 million (short-term loans payable) in December 2020 and ¥5,900
million (short-term loans payable) in January 2021 to repay short-term loans payable, and executed repayments of a total of ¥19,200
million (short-term loans payable) using funds from part of short-term loans payable procured in the fiscal period under review andinternal reserve arising from depreciation, etc. As a result, at the end of the fiscal period under review, the balance of interestbearing debt was ¥88,300 million (short-term loans payable of ¥5,900 million; long-term loans payable of ¥82,400 million) and theratio of interest-bearing debt to total assets (LTV ratio) was 31.0%.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.
Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Positive-5-iv) Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating revenuesof ¥8,139 million, operating income of ¥3,786 million, ordinary income of ¥3,580 million, and net income of ¥3,579 million.
In accordance with the distribution policy as defined in the Articles of Incorporation of MFLP-REIT, distributions for the fiscal
period under review shall be subject to application of special provisions for taxation of investment corporations (Article 67-15 of
the Act on Special Measures Concerning Taxation). Based on this, MFLP-REIT declared the distribution of ¥3,579,368,000, whichis the integral multiple of the total number of investment units issued and outstanding (542,000 units) of unappropriated retained
earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of ¥6,604.
In addition, in accordance with the distribution policy as defined in the Articles of Incorporation, MFLP-REIT shall execute
distributions of cash in excess of retained earnings each fiscal period on a continuous basis in principle (Note 1). Based on this,
MFLP-REIT declared the distribution of ¥368 million, which is the amount almost equivalent to the remaining amount after
subtracting the distribution of earnings of ¥3,579 million from ¥3,947 million or 70% of FFO (Note 2), as return of capital applicable
to distribution reducing unitholders’ capital for tax purposes. Accordingly, MFLP-REIT declared distribution in excess of retained
earnings per unit of ¥679.
(Note 1) In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution 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., atemporary distribution in excess of retained earnings may be executed in order to standardize the amount of the distribution per unit.
However, from the perspective of continuing to maintain owned assets for a long period of time, in cases where the above distribution of cash is
executed, and where the amount equal to the equivalent of depreciation and amortization for the applicable operating period minus the amount of
the distribution in excess of retained earnings for the applicable operating period falls below the standard amount of capital for building maintenance(Note 3), the distribution in excess of retained earnings will be decreased by a maximum amount that the distribution amount does not fall below
the total equivalent of the distribution of earnings, and this may lead to cases where distribution in excess of retained earnings will not be executed.
In addition, from the perspective of continuing stable financial management, distributions in excess of retained earnings will not be executed incases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.
(Note 2) “FFO” is an acronym for funds from operation and refers to the figure calculated by adding depreciation and amortization of rental properties forthe applicable operating period and loss on retirement of non-current assets to net income (excluding gain (loss) on sales of real estate properties,etc.).
(Note 3) “Standard amount of capital for building maintenance” refers to the amount that results by multiplying the six-month-equivalent amount of the 12year-average amount of the amount equivalent to the capital expenditure amount noted in the Building Condition Evaluation Report by two.
(Note 4) Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value after depreciation of owned real estate on
the applicable accounts settlement date + Appraisal value of owned real estate on the applicable accounts settlement date-6-

(3) Status of capital increase, etc.
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital, net, since theestablishment of MFLP-REIT.

Date

Description

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

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

Remarks

Balance

March 4, 2016

Establishment throughprivate placement

600

600

300

300

(Note 2)June 15, 2016

Split of investment units

600

1,200

―

300

(Note 3)

August 1, 2016

Capital increase throughpublic offering

212,800

214,000

55,44555,745(Note 4)

August 29, 2016

Capital increase throughthird-party allotment

10,000224,000

2,605

58,350(Note 5)―224,000(54)

58,296(Note 6)―224,000(45)

58,250(Note 7)38,000262,000

13,49571,745(Note 8)(Note 9)April 21, 2017

Distribution of cash inexcess of retained earnings(return of capital)

Distribution of cash in
October 13, 2017 excess of retained earnings(return of capital)

February 1, 2018

Capital increase throughpublic offering

February 28, 2018

Capital increase throughthird-party allotment

774

262,774274

72,020April 23, 2018

Distribution of cash inexcess of retained earnings(return of capital)―

262,774(61)

71,958 (Note 10)

Distribution of cash in
October 19, 2018 excess of retained earnings(return of capital)―

262,774(88)

71,870 (Note 11)

February 1, 2019

Capital increase throughpublic offering

110,700

373,474

33,617

105,488 (Note 12)

February 27, 2019

Capital increase throughthird-party allotment

5,526

379,000

1,678

107,166 (Note 13)―

379,000(84)

107,081 (Note 14)

Distribution of cash in
October 15, 2019 excess of retained earnings(return of capital)―

379,000(259)

106,822 (Note 15)

February 3, 2020

Capital increase throughpublic offering

59,000438,000

28,289135,111 (Note 16)

February 27, 2020

Capital increase throughthird-party allotment

3,000

441,000

1,438

136,549 (Note 17)

Distribution of cash in
April 23, 2019

excess of retained earnings(return of capital)

-7-

Date

Description

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

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

Remarks

Balance

Distribution of cash in
April 23, 2020

excess of retained earnings(return of capital)―

441,000(257)

136,292 (Note 18)

October 5, 2020

Capital increase throughpublic offering

96,190537,190

45,922

182,214 (Note 19)

October 19, 2020

Capital increase throughthird-party allotment

4,810

542,000

2,296

184,510 (Note 20)―

542,000(342)

184,168 (Note 21)―542,000(368)

183,800 (Note 22)

Distribution of cash in
October 21, 2020 excess of retained earnings(return of capital)
April 22, 2021

Distribution of cash inexcess of retained earnings(return of capital)(Note 1) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 2) MFLP-REIT was established at an issue price of ¥500,000 per unit.
(Note 3) A two-for-one split of investment units was conducted on June 15, 2016 as the effective date.
(Note 4) New investment units were issued through public offering at an issue price of ¥270,000 (paid-in amount of ¥260,550) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 5) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥260,550 per unit.
(Note 6) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 16, 2017, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥243 per unit was declared as distribution of cash forthe 1st fiscal period (fiscal period ended January 31, 2017), the payout of which commenced on April 21, 2017.
(Note 7) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2017, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥204 per unit was declared as distribution of cash forthe 2nd fiscal period (fiscal period ended July 31, 2017), the payout of which commenced on October 13, 2017.
(Note 8) New investment units were issued through public offering at an issue price of ¥367,581 (paid-in amount of ¥355,139) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 9) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥355,139 per unit.
(Note 10) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2018, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥275 per unit was declared as distribution of cash forthe 3rd fiscal period (fiscal period ended January 31, 2018), the payout of which commenced on April 23, 2018.
(Note 11) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2018, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥335 per unit was declared as distribution of cash forthe 4th fiscal period (fiscal period ended July 31, 2018), the payout of which commenced on October 19, 2018.
(Note 12) New investment units were issued through public offering at an issue price of ¥313,986 (paid-in amount of ¥303,680) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 13) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥303,680 per unit.
(Note 14) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2019, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥322 per unit was declared as distribution of cash forthe 5th fiscal period (fiscal period ended January 31, 2019), the payout of which commenced on April 23, 2019.
(Note 15) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2019, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥685 per unit was declared as distribution of cash forthe 6th fiscal period (fiscal period ended July 31, 2019), the payout of which commenced on October 15, 2019.
(Note 16) New investment units were issued through public offering at an issue price of ¥495,747 (paid-in amount of ¥479,476) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 17) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥479,476 per unit.
(Note 18) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 13, 2020, distribution of cash in excess of retained earnings-8-(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥679 per unit was declared as distribution of cash forthe 7th fiscal period (fiscal period ended January 31, 2020), the payout of which commenced on April 23, 2020.
(Note 19) New investment units were issued through public offering at an issue price of ¥493,350 (paid-in amount of ¥477,411) per unit mainly for the purposeof procuring funds for acquisition of new properties.
(Note 20) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥477,411 per unit.
(Note 21) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 16, 2020, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥777 per unit was declared as distribution of cash forthe 8th fiscal period (fiscal period ended July 31, 2020), the payout of which commenced on October 21, 2020.
(Note 22) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 12, 2021, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥679 per unit was declared as distribution of cash forthe 9th fiscal period (fiscal period ended January 31, 2021), the payout of which commenced on April 22, 2021.

-9-

[Historical market price of investment securities]
The following are the highest and lowest prices (closing price) by fiscal period on the Tokyo Stock Exchange Real Estate Investment
Trust Securities Market on which MFLP-REIT investment securities are listed.

Fiscal period

9th period(From August 1,
2020
to January 31,
2021)

8th period(From February 1,
2020
to July 31, 2020)

7th period(From August 1,
2019
to January 31,
2020)

6th period(From February 1,
2019
to July 31, 2019)

5th period(From August 1,
2018
to January 31,
2019)Highest (yen)596,000

577,000

534,000

396,000

358,000

Lowest (yen)478,500

336,000

395,500

325,500

300,500(4) Distribution
The following is the distribution, etc. performance up to the fiscal period under review.
9th period
8th period
7th period
6th period
5th period(From August 1, (From February (From August 1, (From February (From August 1,
2020
1, 2020
2019
1, 20192018
to January 31,
to July 31,
to January 31,
to July 31,
to January 31,
2021)
2020)
2020)
2019)
2019)

Fiscal period
Total amount of
unappropriated retained
earnings
Retained earnings
Total amount of distributionof cash[Distribution per unit]
Of which: Total amount of
distribution of earnings[Distribution of earnings perunit]
Of which: Total amount ofreturn of capital[Return of capital per unit]
Of total amount of return ofcapital: Total amount of
distribution from allowancefor temporary difference
adjustment[Of return of capital per unit:
Distribution from allowancefor temporary difference
adjustment per unit]
Of total amount of return ofcapital: Total amount of
distribution from distribution
reducing unitholders’ capitalfor tax purposes[Of return of capital per unit:
Distribution from distribution
reducing unitholders’ capitalfor tax purposes](Note)(thousandsof yen)3,579,722

2,734,419

2,238,074

2,202,626

1,519,739

354

219

79

257

117

3,947,386

3,076,857

2,495,336

2,461,984

1,604,235(yen)[7,283][6,977][6,584][6,496][6,105](thousandsof yen)3,579,368

2,734,200

2,237,995

2,202,369

1,519,622(yen)[6,604][6,200][5,905][5,811][5,783](thousandsof yen)368,018

342,657

257,341

259,615

84,613

(yen)

[679]

[777]

[679]

[685]

[322]

(thousandsof yen)

―

―

―

―

―

(yen)

―

―

―

―

―

(thousandsof yen)368,018

342,657

257,341

259,615

84,613

(yen)

[679]

[777]

[679]

[685]

[322]

(thousandsof yen)(thousandsof yen)For a summary of MFLP-REIT’s distribution policy and distributions for the fiscal period under review, please refer to “(2) Developments inmanagement of assets in the fiscal period under review; iv) Summary of business performance and distributions” presented earlier in this document.

- 10 -

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

ii) Internal growth strategy“Stable management using the Platform (business foundation) and client network of the Mitsui Fudosan Group”
MFLP-REIT aims for stable management by utilizing the Platform (business foundation) and client network that the Mitsui FudosanGroup has developed over years as a comprehensive real estate company.
iii) Financial strategy“Financial and cash management with an emphasis on stability and efficiency”
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units and borrowings,
and at the same time it will aim to secure both stable distribution levels and efficient cash management for distributions throughcontinuous distributions in excess of retained earnings (return of capital) based on cash flow (FFO).

- 11 -

(6) Significant subsequent eventsi) Acquisitions of properties
MFLP-REIT acquired the trust beneficiary interests for the following asset on March 16, 2021.
Acquisition priceCategory
Property no.
Property nameLocation(Note)(millions of yen)
Industrial real estate(Note)

I-2

MFIP Inzai II

Inzai-shi, Chiba

Acquisition date
March 16, 2021

15,150“Acquisition price” is the purchase price of trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiary interestfor the asset acquired (excluding consumption tax, local consumption tax and the various costs required in the acquisition), rounded down to thenearest million yen.

ii) Borrowing of funds
MFLP-REIT has borrowed the following funds to apply to part of the acquisition funds and related expenses for the real estate trust
beneficiary interests in the above “i) Acquisitions of properties.”
BorrowingamountRepayment
LenderInterest rate Drawdown date Repayment date
Collateral(millions ofmethodyen)
Base rate (JBA
1-month yen
Sumitomo Mitsui Trust
March 16,
BulletUnsecured
2,000
TIBOR)
April 16, 2021
2021
Bank, Limited
repayment Non-guaranteed+0.05%(Note 1)
Base rate (JBA
1-month yen
The Bank of Fukuoka,
March 16,
May 20, 2021
BulletUnsecured
1,500
TIBOR)
2021
Ltd.
repayment Non-guaranteed+0.05%(Note 2)
Sumitomo Mitsui Trust
Bank, Limited

2,000

0.1950%March 16,2021

March 16,2026

Bulletrepayment

UnsecuredNon-guaranteed

Sumitomo Mitsui
Banking Corporation

800

0.3743%

March 16,2021

March 16,
2028

Bulletrepayment

UnsecuredNon-guaranteed

Sumitomo Mitsui
Banking Corporation

800

0.6325%

March 16,2021

March 16,2031

Bulletrepayment

UnsecuredNon-guaranteed

Mizuho Bank, Ltd.

1,600

0.6325%

March 16,2021

March 17,
2031

Bulletrepayment

UnsecuredNon-guaranteed

Shinkin Central Bank

1,200

0.5937%

March 16,
2021

September 17,
2030

Bulletrepayment

UnsecuredNon-guaranteed

MUFG Bank, Ltd.

500

0.3743%

March 16,2021

March 16,
2028

Bulletrepayment

UnsecuredNon-guaranteed

MUFG Bank, Ltd.

5000.4408%March 16,2021

March 16,
2029

Bulletrepayment

UnsecuredNon-guaranteed

The Norinchukin Bank

1,000

0.3464%

March 16,2021

March 16,
2028

Bulletrepayment

UnsecuredNon-guaranteed

The Chiba Bank, Ltd.

1,000

0.3464%

March 16,2021

March 16,
2028

Bulletrepayment

UnsecuredNon-guaranteed

Shinsei Bank, Limited

1,000

0.5937%

March 16,
2021

September 17,
2030

Bulletrepayment

UnsecuredNon-guaranteed

The Yamaguchi Bank,
Ltd.

800

0.7140%March 16,2021

March 16,2032

Bulletrepayment

UnsecuredNon-guaranteed

The 77 Bank, Ltd.

800

0.6325%

March 16,2021

March 17,
2031

Bulletrepayment

UnsecuredNon-guaranteed

―

―

―

―

―

Total

15,500(Note 1) The interest payment date is the repayment date. The base rate is JBA yen TIBOR published by JBA TIBOR Administration as of two business- 12 -

days prior to the drawdown date.
(Note 2) The first interest payment date is April 16, 2021, and thereafter the interest payment date will be May 16, 2021 and the repayment date. The baserate is JBA 1-month yen TIBOR published by JBA TIBOR Administration as of two business days prior to the previous payment date (however,drawdown date for the first time) of each payment date. However, in the case that interest calculation period is less than one month, it will be thebase rate corresponding to the applicable period calculated based on the method set forth in the contract. Please refer to the JBA TIBOR
Administration website (http://www.jbatibor.or.jp/rate/) for JBA yen TIBOR.

iii) Issuance of investment corporation bonds
On February 5, 2021, MFLP-REIT determined the issuance of investment corporation bonds under the following conditions, basedon a resolution on issuance of investment corporation bonds passed at its Board of Directors meeting held on January 12, 2021 andthe shelf registration statement dated January 12, 2021 (including the subsequent amendment). The investment corporation bonds
were issued on February 12, 2021.
Mitsui Fudosan Logistics Park Inc. 1st Unsecured Bonds
Name(Special pari passu conditions among specified investment corporation bonds) (Sustainability
Bonds)
Total issue amount¥3,000 million

Payment dateFebruary 12, 2021

Issue price¥100 per ¥100 of each bondInterest rate

0.500% per annum

Collateral, guarantee

Neither collateral nor guarantee is provided for the investment corporation bonds, and no asset has
been particularly secured for the investment corporation bonds.

Redemption method anddateInterest payment date

Use of proceeds

The total amount of the investment corporation bonds will be redeemed on February 12, 2031.
Redemption by purchase will be available any time on and after the following days of the payment
dates except for the case separately determined by the depository.
February 12 and August 12 of each year, or if such date falls on a bank holiday, the immediately
preceding bank business day
Under the Sustainability Finance Framework, MFLP-REIT allocated the full amount of net
proceeds to refinancing funds for its loan that was due on February 15, 2021, borrowed for
acquisition of MFLP Ibaraki and MFLP Kawaguchi I, which are specified assets subject tosustainability finance.

- 13 -

2. Overview of the Investment Corporation(1) Status of investments in capital
9th period(January 31,
2021)

8th period(July 31, 2020)

7th period(January 31,
2020)

6th period(July 31, 2019)

5th period(January 31,
2019)(units)8,000,000

8,000,000

8,000,000

8,000,000

8,000,000

Fiscal period
Total number ofinvestment units
authorized
Total number ofinvestment units issued
and outstanding
Unitholders’ capital, net(Note)(units)542,000

441,000

379,000

379,000

262,774(millions ofyen)

184,168

136,292

106,822

107,081

71,870

Number of unitholders(unitholders)

8,253

7,402

6,680

8,122

6,570

(Note)“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(2) Major unitholders
Of the unitholders as of January 31, 2021, the following are the top ten unitholders in terms of investment unit-holding ratio.
Number ofinvestment
units owned(units)Number of investment units owned
expressed as a percentage of total
number of investment units issued
and outstanding (%)(Note)The Master Trust Bank of Japan, Ltd. (trust account)

101,325

18.69

Custody Bank of Japan, Ltd. (trust account)

67,96012.53

Mitsui Fudosan Co., Ltd.

28,9005.33

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

26,237

4.84

Custody Bank of Japan, Ltd. (securities investment trust account)

24,305

4.48

SSBTC Client Omnibus Account11,4692.11

Stichting PGGM Depositary PGGM Listed Real Estate PF Fund

10,332

1.90

The Bank of New York Mellon 140044

8,229

1.51

BNYM as AGT/CLTS 10 Percent

7,740

1.42

State Street Bank West Client - Treaty 505234

6,508

1.20

293,005

54.05

Name

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

- 14 -

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

Position

Executive director

Name

Key concurrently-held position, etc.

Masayuki Isobe
Izuru Goto

Supervisory director
Tadao Toyoshima

Total amount ofcompensation byposition for theapplicable operating
period(thousands of yen)

―

2,400

Attorney, City-Yuwa Partners
Manager of Legal Division (part-time), Japan Virtualand Crypto assets Exchange Association
Director (Audit & Supervisory Committee Member),
Square Enix Holdings Co., Ltd.

Independent auditor KPMG AZSA LLC

―

1,500
1,500
10,000(Note 1) None of the executive director or supervisory directors own MFLP-REIT investment units in their own name or in the name of others.
(Note 2) Supervisory directors may be directors of other corporations other than those stated above, but none of them, including those above, have any
interest in MFLP-REIT.
(Note 3) The amount for the independent auditor represents the amount payable as compensation for the audit for the fiscal period under review, plus thecompensation for the audit of English financial statements (¥2,200 thousand).

ii) Policy for deciding on dismissal and refusal of reappointment of the independent auditor
Decisions are made at a meeting of the Board of Directors of MFLP-REIT by taking into account the various circumstances in acomprehensive manner.
(4) Asset management company, custodian, and general administrators
The following are the asset management company, custodian and general administrators as of January 31, 2021.
Entrustment category

Name

Asset management company

Mitsui Fudosan Logistics REIT Management Co., Ltd.

Custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (transfer agent)

Sumitomo Mitsui Trust Bank, Limited

General administrator (institutional)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting)Reiwa Accounting Holdings Co., Ltd.

General administrator (tax payment)

Reiwakaikeisha Tax Corporation- 15 -

3. Status of Assets under Management of the Investment Corporation(1) Composition of assets of the investment corporation
9th period(As of January 31, 2021)
Type of asset

Use

Geographic classification(Note 1)

8th period(As of July 31, 2020)

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

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

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

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

Tokyo metropolitan area

138,84948.7

121,119

58.2

Kansai area

82,02028.8

23,352

11.2

Other areas

42,92415.1

43,37020.8

Subtotal

263,795

92.5

187,842

90.2

Tokyo metropolitan area

11,850

4.2

11,948

5.7

Kansai area

―

―

―

―

Other areas

―

―

―

―

Subtotal

11,850

4.2

11,948

5.7

Real estate in trust total

275,64596.6

199,790

95.9

Deposits and other assets

9,559

3.4

8,452

4.1

Total assets

285,205

100.0

208,243

100.0

Logistics
facilities

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

- 16 -

(2) Major assets held
The following summarizes the assets held by MFLP-REIT as of January 31, 2021.

Book value
Name of real estate, etc.
(millions of yen)

As a percentage
Leasable area
Occupancy rate
Leased area (m²)
of total property(m²)(%)(Note 2)leasing business(Note 1)
(Note 3)revenues (%)

Main use

GLP/MFLP Ichikawa
Shiohama(Note 4)

14,89150,81350,813100.0

6.0

Logistics
facilities

MFLP Kuki

11,64467,92567,925100.0

5.8

Logistics
facilities

MFLP Yokohama
Daikoku(Note 4)

9,735

47,94447,944100.0

4.2

Logistics
facilities

MFLP Yashio

9,171

39,692

39,692100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi

7,302

40,95840,958100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Funabashi
Nishiura

6,561

31,03431,034100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Kashiwa

5,908

31,291

31,291100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Sakai

23,162

112,148

112,148

100.0

10.0

Logistics
facilities

MFLP Komaki

7,781

40,60540,605100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Hino(Note 4)

12,21746,801

46,741

99.9

4.7

Logistics
facilities

MFLP Hiratsuka

6,796

33,05533,055100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Tsukuba

Existing
Existingbuilding: 37,938 building: 37,938
8,605
Annex building: Annex building:
25,60025,600100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Inazawa

15,63868,922

68,922100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi II

12,76248,03248,032100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Fukuoka I

5,099

32,21632,216100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Prologis Park
Kawagoe(Note 4)

14,71656,72356,723100.0

5.5

Logistics
facilities- 17 -

Book value
Name of real estate, etc.
(millions of yen)

As a percentage
Leasable area
Occupancy rate
Leased area (m²)
of total property(m²)(%)(Note 2)leasing business(Note 1)
(Note 3)revenues (%)

Main use

MFLP Hiroshima I

14,40566,66566,665100.0

6.0

Logistics
facilities

MFLP Ibaraki

58,857

208,811

208,811

100.0

13.9

Logistics
facilities

MFLP Kawaguchi I

18,536

48,11948,119100.0

Not disclosed(Note 5)

Logistics
facilities

MFIP Inzai

11,850Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Industrial realestateTotal

275,645

Not disclosed(Note 5)

Not disclosed(Note 5)

100.0

100.0

(Note 1) “Leasable area” is 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 January 31, 2021, and does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.
(Note 2) “Leased area” is the total leased area rounded down to the nearest whole number presented in each lease agreement for buildings in each portfolio
asset of MFLP-REIT as of January 31, 2021 (Excluding lease agreements concerning shops, vending machines, photovoltaic power generation
facilities and parking lots. Lease agreements for said buildings hereinafter referred to as “Subject Lease Agreements” in (2)). If a master leaseagreement has been executed for each portfolio asset held by MFLP-REIT as of January 31, 2021, the total leased area represents the sum total of
the area that is actually leased based on the lease agreement signed with end-tenant rounded down to the nearest whole number. Total leased area
is calculated based on the assumption that the subject property is actually leased if the Subject Lease Agreement has been executed as of January
31, 2021 even if there is no occupancy / delivery relating to the subject property as of January 31, 2021.
(Note 3) “Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for each property held by MFLP-REIT as of January 31, 2021, rounded to the first decimal place. Occupancy rates for the total section
are the share of the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.
(Note 4) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Hino” and “MFLP Prologis Park Kawagoe,” leasable area and leased
area are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT holds as of January 31, 2021 (50%,50%, 25% and 50%, respectively).
(Note 5) Not disclosed, because consent has not been obtained from the lessee.

- 18 -

(3) Real estate assets in portfolio
The following summarizes the assets held by MFLP-REIT as of January 31, 2021.

Name of real estate,
etc.

Location

Form of ownership

Leasable area(m²)
(Note 1)

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

GLP/MFLP Ichikawa
Real estate trust
1-6-3 Shiohama, Ichikawabeneficiary
Shiohamashi, Chibainterests(Note 3)50,81318,35014,891MFLP Kuki

1-10 Kiyokucho, Kuki-shi,
SaitamaReal estate trust
beneficiaryinterests

67,925

14,50011,644

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

47,944

11,0009,735

MFLP Yashio

99-1 Tsubutakita,
Minamiushiroya, Yashioshi, Saitama

Real estate trust
beneficiaryinterests

39,692

11,5009,171

MFLP Atsugi

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

40,958

9,250

7,302

MFLP Funabashi
Nishiura

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

Real estate trust
beneficiaryinterests

31,034

7,990

6,561

MFLP Kashiwa

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

Real estate trust
beneficiaryinterests

31,291

7,180

5,908

MFLP Sakai

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

112,148

24,70023,162

MFLP Komaki

Real estate trust
2020-1 Higashimae, Honjo,
beneficiary
Komaki-shi, Aichi
interests

40,605

8,730

7,781

MFLP Hino(Note 3)3-1-2 Asahigaoka, Hinoshi, Tokyo

Real estate trust
beneficiaryinterests

46,801

12,90012,217MFLP Hiratsuka

2-1544-5 Nishishindo,
Hiratsuka-shi, Kanagawa

Real estate trust
beneficiaryinterests

33,055

7,580

6,796

MFLP Tsukuba

3-35-2 and 3-35-3,
Real estate trust
Shihogaoka, Tsukubamirai- beneficiaryshi, Ibaraki
interests

Existing building:
37,938Annex building:
25,60010,3008,605

MFLP Inazawa

2-1 Okudaosawa-cho,Inazawa-shi, Aichi

Real estate trust
beneficiaryinterests

68,922

17,00015,638MFLP Atsugi II

84-1 Happongi, Ishida,
Real estate trust
Isehara-shi, Kanagawa, and beneficiary
other 3 lots of landinterests

48,032

13,90012,762

MFLP Fukuoka I

16-10 Butsudo, Shinbaru,
Sue-machi, Kasuya-gun,
Fukuoka, and other 4 lotsof land

Real estate trust
beneficiaryinterests

32,216

5,600

5,099

MFLP Prologis Park
Kawagoe(Note 3)

1-9-3 Minamidai,
Kawagoe-shi, Saitama

Real estate trust
beneficiaryinterests

56,723

15,60014,716- 19 -Name of real estate,
etc.

Location

Form of ownership

Leasable area(m²)
(Note 1)

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

MFLP Hiroshima I

4-2876-26
Real estate trust
Kanonshinmachi, Nishi-ku, beneficiary
Hiroshima-shi, Hiroshima interests

66,665

15,10014,405MFLP Ibaraki

4 Saito Akane, Ibaraki-shi,
Osaka

Real estate trust
beneficiaryinterests

208,811

60,10058,857MFLP Kawaguchi I

4-3342-1 Ryoke,
Kawaguchi-shi, Saitama,
and other 4 lots of land

Real estate trust
beneficiaryinterests

48,11919,00018,536

1,135,300

290,280

263,795

Not disclosed(Note 4)

12,80011,850Industrial real estate subtotal

Not disclosed(Note 4)

12,80011,850Total

Not disclosed(Note 4)

303,080

275,645

Logistics facilities subtotal

MFIP Inzai

2-101-14 Izumino, Inzaishi, Chiba

Real estate trust
beneficiaryinterests(Note 1) “Leasable area” is 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 January 31, 2021, and does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.
(Note 2) “Appraisal value at end of period” is the appraisal value as of the valuation date of January 31, 2021 by real estate appraisers based on the asset
valuation methods and standards set forth in the Articles of Incorporation of MFLP-REIT and the rules and requirements imposed by The Investment
Trusts Association, Japan. The appraisal of each asset held is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa
Real Estate Appraisal Co., Ltd. and CBRE K.K.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Hino” and “MFLP Prologis Park Kawagoe,” leasable area, appraisal
value at end of period, and book value at end of period are the prorated figures equivalent to the quasi co-ownership interest in each property that
MFLP-REIT holds as of January 31, 2021 (50%, 50%, 25% and 50%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 20 -

The following is the status of leasing of real estate, etc. held by MFLP-REIT.
9th period(From August 1, 2020 to January 31, 2021)

Name of real estate, etc.

Total number of Occupancy ratetenants[at end of[at end of
period]period](%)(Note 1)
(Note 2)

8th period(From February 1, 2020 to July 31, 2020)

Property
Property
As a
As aleasingleasing
percentage of Total number of Occupancy rate
percentage ofbusinessbusiness
total property
tenants[at end of
total property
revenues
revenues
leasing[at end of
period]leasing[during[duringbusiness
period](%)
business
period]period]revenues(Note 1)
(Note 2)revenues(millions of(millions of
(%)
(%)
yen)
yen)

GLP/MFLP Ichikawa
Shiohama (Note 3)

5

100.0

488

6.0

5

100.0

462

7.3

MFLP Kuki

3

100.0

472

5.8

3

100.0

476

7.5

MFLP Yokohama Daikoku(Note 3)

4

100.0

337

4.2

5

100.0

352

5.5

MFLP Yashio

2

100.0

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

100.0

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

MFLP Atsugi

1

100.0

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

100.0

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

MFLP Funabashi Nishiura

1

100.0

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

100.0

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

MFLP Kashiwa

1

100.0

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

100.0

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

MFLP Sakai

8

100.0

10.0

8

100.0

MFLP Komaki

1

100.0

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

100.0

MFLP Hino(Note 3)

15

99.9

16

100.0

MFLP Hiratsuka

Not disclosed(Note 4)100.0

Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)100.0

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

MFLP Tsukuba

1

100.0

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

100.0

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

MFLP Inazawa

2

100.0

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

100.0

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

MFLP Atsugi II

2

100.0

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

100.0

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

MFLP Fukuoka I

1

100.0

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

100.0

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

MFLP Prologis Park
Kawagoe (Note 3)

10

100.0

449

5.5

10

100.0

398

6.3

MFLP Hiroshima I

4

100.0

486

6.0

4

100.0

290

4.6

MFLP Ibaraki

9

100.0

1,130

13.9

―

―

―

―

MFLP Kawaguchi I

1

100.0

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

―

―

―

―

Not disclosed(Note 4)100.0

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

100.0

Logistics facilities subtotal

813

382

- 21 -

4.7

752

11.8

Not disclosed Not disclosed(Note 4)(Note 4)382

6.0

Not disclosed Not disclosed(Note 4)(Note 4)9th period(From August 1, 2020 to January 31, 2021)

Name of real estate, etc.

Total number of Occupancy ratetenants[at end of[at end of
period]period](%)(Note 1)
(Note 2)

8th period(From February 1, 2020 to July 31, 2020)

Property
Property
As a
As aleasingleasing
percentage of Total number of Occupancy rate
percentage ofbusinessbusiness
total property
tenants[at end of
total property
revenues
revenues
leasing[at end of
period]leasing[during[duringbusiness
period](%)
business
period]period]revenues(Note 1)
(Note 2)revenues(millions of(millions of
(%)
(%)
yen)
yen)

MFIP Inzai

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

Industrial real estate subtotal

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

Not disclosed(Note 4)

100.0

8,139

100.0

Not disclosed(Note 4)

100.0

6,363

100.0

(Note 1) “Total number of tenants” is the total number of the lease agreements for buildings in the portfolio assets held by MFLP-REIT as of each accounts
settlement date. If a master lease agreement has been executed for each portfolio asset held by MFLP-REIT as of each accounts settlement date, itis the total number of the end-tenants. However, if one lessee enters into a multiple number of the Subject Lease Agreements for the same buildingof assets held by MFLP-REIT as of each accounts settlement date, the number of tenants is calculated on the assumption that such lessee is one
party.
(Note 2) “Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for each property held by MFLP-REIT at the end of each accounting period, rounded to the first decimal place. Occupancy rates for the
total section are the share of the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Hino” and “MFLP Prologis Park Kawagoe,” property leasing
business revenues and figures expressed as a percentage of total property leasing business revenues are the prorated figures equivalent to the quasi
co-ownership interest in each property that MFLP-REIT holds as of each accounts settlement date (50%, 50%, 25% and 50%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

(4) Schedule of renewable energy power generation facilities
Not applicable.
(5) Schedule of rights to operate public facilities, etc.
Not applicable.
(6) Status of other assets
Trust beneficiary interests that have real estate as the main assets in trust, etc. are listed all at once in “(3) Real estate assets in
portfolio” presented earlier in this document, and there are no main specified assets invested by MFLP-REIT other than those listed
there in the portfolio as of January 31, 2021.
i) Itemization of investment securities portfolio assets
Not applicable.
ii) Table of status of contract amount, etc. and fair value of specified transactions
Not applicable.
(7) Status of holding of assets by country and region
Not applicable, because there are none in countries and regions other than Japan.

- 22 -

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

Name of real estate,etc.

MFLP Kuki

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

Kuki, Saitama

PurposeReplacement of billingmetersReplacement ofcontrol system formain vertical conveyor
chain (Section 2)
Replacement ofcontrol panel for main
vertical conveyor
chain (Section 1)
Installation ofdriveway LED lighting

Scheduled timeTotalamountAmountpaid
duringperiodTotalamountalreadypaid

In February 2021

6

―

―

From March 2021
to June 2021

4

―

―

From March 2021
to June 2021

5

―

―

From June 2021
to December 2021

11

―

―

In June 2021

3

―

―

From September 2021
to December 2021

5

―

―

From September 2021
to December 2021

4

―

―

From February 2021
to June 2021

26

―

―

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Repair work in public
open space (1st stage)

From May 2021
to June 2021

5

―

―

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Updating of security
systems (1st stage)

In May 2021

4

―

―

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Repair work in public
open space (2nd stage)

From November 2021
to December 2021

6

―

―

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Updating of security
systems (2nd stage)

In December 2021

14

―

―

MFLP Sakai

Sakai, Osaka

Installation of LED
lighting

From May 2021
to July 2021

6

―

―

MFLP Ibaraki

Ibaraki, Osaka

Grounding resistance
improvement work

In February 2021

4

―

―

MFLP Kawaguchi I

Kawaguchi, Saitama

Installation of guard
poles

From May 2021
to June 2021

4

―

―

(Note)

Installation of air
conditioners
Replacement ofcontrol system formain vertical conveyor
chain (Section 1)
Replacement ofcontrol panel for main
vertical conveyor
chain (Section 2)Exterior wall painting(Section 8)

For “MFLP Yokohama Daikoku,” planned construction amount is the prorated figure equivalent to the quasi co-ownership interest in the property
that MFLP-REIT holds (50%).

- 23 -

(2) Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the fiscal period underreview for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period under review amounted to ¥178 million
and, other than this, there was ¥65 million in repair expenses categorized as operating expenses in the fiscal period under review.
Construction amount(millions of yen)
(Note)Name of real estate,
etc.

Location

Purpose

PeriodMFLP Yokohama
Daikoku

Yokohama, Kanagawa

Exterior wall painting(Section 6)

From January 2020
to August 2020

48

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Exterior wall painting(Section 7)

From July 2020
to December 2020

29

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Installation of
additional security
cameras (3rd stage)

From August 2020
to November 2020

5

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Installation of shutterresistant posts

From October 2020
to November 2020

12

MFLP Yashio

Yashio, Saitama

In December 2020

3

MFLP Kashiwa

Kashiwa, Chiba

From December 2020
to January 2021

5

MFLP Sakai

Sakai, Osaka

In August 2020

6

MFLP Hino

Hino, Tokyo

From December 2020
to January 2021

4

MFLP Tsukuba

Tsukubamirai, Ibaraki

In October 2020

3

Removal of the truck
berth entrance
gradation
Replacement ofequipment of accessmanagement facilities
Replacement ofelectric power meter
Replacement ofequipment of accessmanagement facilities
Installation of disasterlevel determination
systemOther capital expenditures

58
Total

(Note)

178

For “MFLP Yokohama Daikoku” and “MFLP Hino,” construction amounts are the prorated figures equivalent to the quasi co-ownership interest ineach property that MFLP-REIT held (50% and 25%, respectively) at the respective times the work was conducted.

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

- 24 -

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

9th period(From August 1, 2020
to January 31, 2021)

8th period(From February 1, 2020
to July 31, 2020)

Asset management fee (Note)

788,967

584,568

Asset custody fee

10,412

7,851

Administrative service fees

19,38817,453

Directors’ compensations

5,400

5,400

Audit fee

10,00010,000

Other expenses

47,48740,914

881,656

666,186

Total(Note) Other than the amount stated above, there is an asset management fee associated with a property acquisition factored into the bookvalue of the properties (the 8th period: ¥120,950 thousand; the 9th period: ¥193,500 thousand).

- 25 -

Category(2) Debt financing status
The following is the status of loans as of January 31, 2021.

LenderShort-term loans

Sumitomo Mitsui Trust
Bank, Limited

Mizuho Bank, Ltd.

The Bank of Fukuoka,
Ltd.

BorrowingdateLong-term loans
Sumitomo Mitsui Trust
Bank, Limited

Mizuho Bank, Ltd.

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse

June 2,
2020

2,000

―

0.1041

Dec. 2,2020

Bulletrepayment(Note 3)Jan. 7,
2021

―

2,400

0.1203Feb. 8,2021

Bulletrepayment(Note 3)Jan. 6,
2021

―

3,500

0.1139Feb. 8,2021

Bulletrepayment(Note 3)Mar. 2,
2020

2,500

―

0.0951

Nov. 30,
2020

Bulletrepayment(Note 3)

July 21,
2020

500

―

0.0852

Oct. 21,2020

Bulletrepayment(Note 3)

5,000

5,900

Sept. 1,
2016

2,000

2,000

0.2713

Sept. 1,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.4213

Sept. 1,
2026

Bulletrepayment(Note 3)Mar. 15,
2018

800

800

0.2400Mar. 15,
2022

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2500Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)Mar. 2,
2020

1,700

1,700

0.2000Mar. 4,2024

Bulletrepayment(Note 3)Mar. 2,
2020

1,700

1,700

0.3723Mar. 4,2030

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,500

0.2829Oct. 6,2027

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,500

0.4168Oct. 6,2029

Bulletrepayment(Note 3)

Sept. 1,
2016

2,000

2,000

0.3050

Sept. 1,
2023

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.3813

Sept. 1,
2025

Bulletrepayment(Note 3)Feb. 4,
2019

1,500

1,500

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)Mar. 2,
2020

800

800

0.1059Mar. 3,2025

Bulletrepayment(Note 3)

Aug. 2,
2016

400

400

0.1425

Aug. 2,2022

Bulletrepayment(Note 3)

Aug. 2,
2016

1,700

1,700

0.2113

Aug. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

900

900

0.4895

Sept. 15,
2027

Bulletrepayment(Note 3)

Subtotal

Sumitomo Mitsui
Banking Corporation

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

- 26 -

Remarks

Unsecured
Nonguaranteed

Unsecured
NonguaranteedCategory

LenderMizuho Bank, Ltd.

Borrowingdate

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse

Feb. 4,
2019

2,000

2,000

0.3687

Aug. 4,2028

Bulletrepayment(Note 3)Apr. 6,
2020

1,200

1,200

0.4942

Apr. 8,2030

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,000

0.4707

Oct. 7,2030

Bulletrepayment(Note 3)

Sept. 1,
2016

2,200

2,200

0.1826

Mar. 1,
2023

Bulletrepayment(Note 3)Mar. 15,
2018

800

800

0.2400Mar. 31,
2022

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2500Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Feb. 5,
2020

800

800

0.2385

Feb. 5,2027

Bulletrepayment(Note 3)Feb. 5,
2020

800

800

0.4272Feb. 5,2030

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,300

0.2829Oct. 6,2027

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,200

0.4168Oct. 9,2029

Bulletrepayment(Note 3)

Sept. 1,
2016

600

600

0.3237Mar. 1,
2024

Bulletrepayment(Note 3)

Sept. 1,
2016

700

700

0.3425

Sept. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

300

300

0.2188Mar. 15,
2022

Bulletrepayment(Note 3)Mar. 15,
2018

300

300

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.1163Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)Apr. 6,
2020

500

500

0.4942

Apr. 8,2030

Bulletrepayment(Note 3)Oct. 6,
2020

―

2,000

0.3255Oct. 6,2028

Bulletrepayment(Note 3)

Aug. 2,
2016

2,100

2,100

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,000

0.4851

Oct. 9,2029

Bulletrepayment(Note 3)

Aug. 2,
2016

1,300

1,300

0.2169Feb. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

400

400

0.3563Mar. 14,2025

Bulletrepayment(Note 3)

Remarks

Long-term loans

MUFG Bank, Ltd.

Mizuho Trust & Banking
Co., Ltd.

Development Bank ofJapan Inc.

The Bank of Fukuoka,Ltd.

- 27 -

Unsecured
NonguaranteedCategory

LenderThe Bank of Fukuoka,
Ltd.

Nippon Life Insurance
CompanyLong-term loans

The Norinchukin BankThe Yamaguchi Bank,Ltd.

Mitsui Sumitomo
Insurance Company,
Limited

Borrowingdate

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse

Feb. 4,
2019

2,000

2,000

0.3988Feb. 5,2029

Bulletrepayment(Note 3)Apr. 6,
2020

1,800

1,800

0.4942

Apr. 8,2030

Bulletrepayment(Note 3)Oct. 6,
2020

―

2,000

0.3255Oct. 6,2028

Bulletrepayment(Note 3)

Aug. 2,
2016

1,000

1,000

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Feb. 5,
2020

1,000

1,000

0.3360Feb. 7,2028

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,500

0.3255Oct. 6,2028

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.3319Sept. 13,2024

Bulletrepayment(Note 3)Feb. 4,
2019

600

600

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Mar. 2,
2020

900

900

0.3723Mar. 4,2030

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,000

0.5377

Oct. 7,2030

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.3563Mar. 14,2025

Bulletrepayment(Note 3)Feb. 4,
2019

600

600

0.2087

Aug. 4,2025

Bulletrepayment(Note 3)Mar. 2,
2020

800

800

0.1836

Mar. 2,2027

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,000

0.2629Apr. 6,2027

Bulletrepayment(Note 3)

Dec. 3,
2018

2,000

2,000

0.2375

Dec. 1,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,800

1,800

0.1863Feb. 4,2025

Bulletrepayment(Note 3)Feb. 5,
2020

1,600

1,600

0.3809Feb. 5,2029

Bulletrepayment(Note 3)Oct. 6,
2020

―

2,000

0.4168Oct. 9,2029

Bulletrepayment(Note 3)

Dec. 3,
2018

1,000

1,000

0.3975

Dec. 3,2026

Bulletrepayment(Note 3)

Shinkin Central Bank

Sumitomo Life
Insurance Company- 28 -

Remarks

Unsecured
NonguaranteedCategory

LenderSumitomo Life
Insurance Company

Borrowingdate

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUseMar. 2,
2020

800

800

0.2182Mar. 2,2028

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Mar. 2,
2020

500

500

0.1836

Mar. 2,2027

Bulletrepayment(Note 3)Feb. 5,
2020

800

800

0.3809Feb. 5,2029

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,000

0.4168Oct. 9,2029

Bulletrepayment(Note 3)Mar. 2,
2020

900

900

0.3723Mar. 4,2030

Bulletrepayment(Note 3)Oct. 6,
2020

―

1,000

0.5377

Oct. 7,2030

Bulletrepayment(Note 3)

The Yamanashi Chuo
Bank, Ltd.

Oct. 6,
2020

―

1,000

0.5377

Oct. 7,2030

Bulletrepayment(Note 3)

The Chugoku Bank,
Limited

Oct. 6,
2020

―

1,000

0.2829Oct. 6,2027

Bulletrepayment(Note 3)The Joyo Bank, Ltd.

Oct. 6,
2020

―

1,000

0.2829Oct. 6,2027

Bulletrepayment(Note 3)

The Hyakugo Bank, Ltd.

Oct. 6,
2020

―

1,000

0.3305

Apr. 6,2027

Bulletrepayment(Note 3)

Daishi Hokuetsu Bank,
Ltd. (Note 4)

Oct. 6,
2020

―

1,000

0.3305

Apr. 6,2027

Bulletrepayment(Note 3)

The Bank of Kyoto, Ltd.

Oct. 6,
2020

―

500

0.4707

Oct. 7,2030

Bulletrepayment(Note 3)57,90082,40062,90088,300Remarks

The Chiba Bank, Ltd.

Long-term loans

Shinsei Bank, Limited

The 77 Bank, Ltd.

Subtotal
Total

Unsecured
Nonguaranteed(Note 1) “Average interest rate” is the weighted average interest rate during the period, rounded to the fourth decimal places.
(Note 2) If the “Maturity date” is not a business day, it becomes the following business day.
(Note 3) “Use” of funds is for purchase of real estate or real estate trust beneficiary interests, refinancing of loans, working capital, etc.
(Note 4) The Daishi Bank, Ltd. merged with The Hokuetsu Bank, Ltd. on January 1, 2021, and changed its name to Daishi Hokuetsu Bank, Ltd.

(3) Status of investment corporation bonds
There are no investment corporation bonds issued by MFLP-REIT as of January 31, 2021.
For investment corporation bonds issued later than January 31, 2021, please refer to “1. Overview of Asset Management; (6)Significant subsequent events; iii) Issuance of investment corporation bonds” presented earlier in this document.
(4) Status of short-term investment corporation bonds
Not applicable.
(5) Status of investment unit acquisition rights
Not applicable.

- 29 -

6. Status of Sale and Purchase during Period(1) Status, etc. of sale and purchase of real estate, etc. and asset-backed securities, etc. and infrastructure assets, etc. andinfrastructure-related assets
Acquisition

Disposition

Acquisition date

Acquisition
price(millions ofyen)(Note)MFLP Ibaraki

October 6, 2020

MFLP Kawaguchi I

Name of real estate, etc.

Disposition date

Disposition
price(millions ofyen)Book value(millions ofyen)

Gain (Loss) on
sale(millions ofyen)

58,900――――

October 6, 2020

18,500

―

―

―

―

―

77,400

―

―

―

―

Total
(Note)“Acquisition price” is the purchase price of trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiary interest for
the acquired asset, rounded down to the nearest million yen. The transaction price does not include consumption tax and local consumption tax or thevarious costs required in the acquisition.

(2) Status, etc. of sales and purchases of other assets
Other main assets are generally bank deposits or bank deposits within assets in trust.
(3) Investigation into value, etc. of specified assetsi) Real estate, etc.

TransactiondateAcquisition
price or
disposition
price(millions ofyen)(Note 2)

Appraisalvalue(millions ofyen)

Appraisal company

Date ofvaluation

MFLP Ibaraki

October 6,
2020

58,90059,200The Tanizawa Sōgō
Appraisal Co., Ltd.

July 31, 2020

MFLP Kawaguchi I

October 6,
2020

18,50018,600Japan Real Estate
Institute

July 31, 2020

77,40077,800――Acquisition
Name of real estate,orType of asset
etc.
disposition

Real estate
trust
beneficiaryinterests
Acquisition
Real estate
trust
beneficiaryinterests

Total(Note 1) For transactions requiring appraisal of real estate, etc. of specified assets pursuant to Article 201, Paragraph 1 of the Investment Trust Act, The
Tanizawa Sōgō Appraisal Co., Ltd. and Japan Real Estate Institute have carried out the appraisal pursuant to “Real Estate Appraisal Standards;
Particulars; Chapter 3: Appraisal on Value of Real Estate Subject to Securitization” and MFLP-REIT has been notified of the appraisal findings.
(Note 2) “Acquisition price” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax, consumption tax
and local consumption tax.

ii) Other
Not applicable.

- 30 -

(4) Status of interested party transactions, etc.
i) Status of sale and purchase transactions with interested parties, etc.
Amount of purchase or sale, etc. (Note 2)
Category

Amount of purchase, etc.
(thousands of yen)

Total amountAmount of sale, etc.
(thousands of yen)

77,400,000―

Breakdown of status of transactions with interested parties, etc. (Note 1)
Saito Tokutei Mokuteki Kaisha

58,900,000(76.1%)―(― %)Mitsui Fudosan Co., Ltd.

18,500,000(23.9%)―(― %)77,400,000 (100.0%)

―

(― %)

Total

(Note 1) “Interested parties, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26,
Paragraph 1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts
Association, Japan.
(Note 2) “Amount of purchase or sale, etc.” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax,
consumption tax and local consumption tax.

ii)

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

Logistics management fee

200,702

Building management fee

272,982(Note)Breakdown of transactions with interested parties, etc.
Paid toAmount paid (B)(thousands of yen)

As a percentage
of total amount(B/A)

Mitsui Fudosan Co., Ltd.

182,573

91.0%

Mitsui Fudosan Facilities Co., Ltd.

115,538

42.3%

Mitsui Fudosan Facilities West Co., Ltd.

97,71635.8%“Interested parties, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26, Paragraph
1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.

iii) Other payments to interested parties, etc.
Other payments to interested parties, etc. are as follows:
Paid toCategory

Amount(thousands of yen)

Mitsui Fudosan Co., Ltd.

Repairs and related work, etc.

8,102

Mitsui Fudosan Building Management Co., Ltd.

Repairs and related work, etc.

12,315

Mitsui Fudosan Facilities Co., Ltd.

Repairs and related work, etc.

37,673

Mitsui Fudosan Facilities West Co., Ltd.

Repairs and related work, etc.

25,722

Daiichi Engei Co., Ltd.

Repairs and related work, etc.

76iv) Leasing transaction, etc.
Leasing transactions with interested parties, etc. are as follows:
Name of lessee

Category

Mitsui Fudosan Co., Ltd.

Rent income, etc.

Rental revenues(thousands of yen)
174,760(5) Status, etc. of transactions with the asset management company pertaining to operations of concurrent business engaged
in by the asset management company
Not applicable, because the asset management company (Mitsui Fudosan Logistics REIT Management Co., Ltd.) does not engage
in any type I financial instruments business, type II financial instruments business, real estate brokerage or specified joint real estate
venture as a concurrent business.

- 31 -

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

- 32 -

8. Other(1) Noticei) General meeting of unitholders
Not applicable.
ii) Board of Directors of the investment corporation
The following summarizes the key items of the major contract conclusions and changes approved at meetings of the Board of
Directors of MFLP-REIT in the fiscal period under review.
Approval date

Item

Summary
Concerning the issuance of new investment
units and secondary offering of investment units

September 16, 2020

Conclusion of new investment units
underwriting agreement, etc.

approved at a meeting of the Board of Directors
held on the same date, general administrative
services concerning new investment units
underwriting, etc. related to domestic offeringand overseas offering were entrusted tounderwriters (Note).
The Board of Directors made a comprehensive
resolution relating to the issuance of investment
corporation bonds with a total issue amount tobe within ¥100.0 billion and an issuance period
from January 20, 2021 to January 19, 2022. The
Board of Directors approved candidate
companies for consignment of the preparationand keeping of the investment corporation bondregister and other administrative duties relating
thereto as well as administrative duties relating
to receiving requests regarding exercise ofJanuary 12, 2021

Comprehensive resolution on issuance ofrights of investment corporation bonds andother applications from investment corporation

investment corporation bonds and associatedconsignment of general administrative duties

bondholders, operations during the term of theinvestment corporation bonds, and payment ofinterest or redemption to investment
corporation bondholders (including duties ofthe fiscal agent, issuing agent and paying
agent). The Board of Directors delegatedselection of the consignee for generaladministrative duties relating to the investment
corporation bonds and decision making on thescope and the specific consignment conditionsof consignment of general administrative duties,
and all the necessary matters related to theconsignment of administrative operations to the
executive director.

(Note)The underwriters for domestic offering are Daiwa Securities Co. Ltd., Nomura Securities Co., Ltd., SMBC Nikko Securities Inc. Mizuho Securities Co.,
Ltd. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Okasan Securities Co., Ltd. For overseas offering, the underwriters are Daiwa CapitalMarkets Europe Limited, Nomura International plc, SMBC Nikko Capital Markets Limited, Mizuho International plc, Morgan Stanley & Co. Internationalplc, and Merrill Lynch International.

(2) Rounding of monetary and percentage figures
Unless otherwise specified, monetary figures are rounded down and percentage figures are rounded to the nearest specified unit inthis document.

- 33 -

(3) Disclosure pertaining to corporation holding overseas real estate
Not applicable.
(4) Disclosure pertaining to real estate of corporation holding overseas real estate
Not applicable.

- 34 -

Mitsui Fudosan Logistics Park Inc.
Balance Sheets

AssetsCurrent assets
Cash and deposits (Notes 3 and 4)
Cash and deposits in trust (Notes 3 and 4)
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property and equipment (Note 5)
Buildings in trust
Structures in trust
Machinery and equipment in trust
Vehicles and transport equipment in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Less: accumulated depreciation
Total property and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax assets (Note 9)
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses (Note 2)
Total deferred assets
Total assets

9th period(As of January 31, 2021)(Thousands of yen)
8th period(As of July 31, 2020)

¥

¥

¥

- 35 -

619,466
5,923,159
59,55746,0282,655,451
2,957
9,306,620

1,460,869
4,089,821
120,874
33,9202,540,809
3,312
8,249,607

139,789,196
4,600,765
4,084,066
2,642
61,229136,697,026
4,655(9,589,497)
275,650,085

108,942,727
3,620,188
3,401,671
2,642
21,137
91,332,292(7,529,825)
199,790,833

3,204
3,204

2,636
2,636

10,00058,20116
1,050
69,268
275,722,558

10,00058,64116
1,050
69,707
199,863,178

175,926
175,926
285,205,105

131,029
131,029
208,243,815¥

Mitsui Fudosan Logistics Park Inc.
Balance Sheets

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable (Notes 4 and 7)
Accounts payable
Accrued expenses
Income taxes payable
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable (Notes 4 and 7)
Tenant leasehold and security deposits in trust (Note 4)
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Units authorized: 8,000,000 units as of January 31, 2021 andJuly 31, 2020
Units issued and outstanding: 542,000 units as of January 31,
2021 and 441,000 units as of July 31, 2020
Deduction from unitholders’ capital
Unitholders’ capital (net)
Retained earnings
Total unitholders’ equity
Total net assets (Notes 6 and 10)
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

- 36 -

9th period(As of January 31, 2021)(Thousands of yen)
8th period(As of July 31, 2020)

¥

¥

¥

422,3435,900,000
947,4104,302
940
1,516,126
114
8,791,237

220,088
5,000,000
675,351467
950
1,116,254
114
7,013,227

82,400,000
6,265,894
88,665,894
97,457,132

57,900,000
4,303,772
62,203,772
69,216,999

185,362,234

137,143,723(1,193,983)
184,168,250
3,579,722
187,747,973
187,747,973
285,205,105(851,326)
136,292,396
2,734,419
139,026,815
139,026,815
208,243,815¥

Mitsui Fudosan Logistics Park Inc.
Statements of Income

9th period(From August 1, 2020
to January 31, 2021)(Thousands of yen)
8th period(From February 1, 2020
to July 31, 2020)¥¥

Operating revenues
Property-related revenues (Note 8)
Other property-related revenues (Note 8)
Total operating revenues
Operating expenses
Property-related expenses (Note 8)
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Audit fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Insurance income
Compensation income for damage
Interest on refund
Other
Total non-operating income
Non-operating expenses
Interest expense
Amortization of investment unit issuance expenses
Offering costs associated with issuance of investment units
Borrowing related expenses
Disaster recovery expenses (Note 2)
Other
Total non-operating expenses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes (Note 9)
Net income (Note 10)
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss) (Note 6)¥

Net income per unit (Note 10)

9th period(From August 1, 2020
to January 31, 2021)¥
7,074

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

- 37 -¥

7,757,788
381,8028,139,590

6,110,460
253,457
6,363,918

3,471,784
788,967
10,412
19,3885,400
10,00047,487
4,353,440
3,786,150

2,816,648
584,568
7,851
17,4535,400
10,00040,914
3,482,835
2,881,083

22
5,973
5,845
342
12,184

23
40,124544
40,692

119,875
43,51944,776
4,983
4,732
217,887
3,580,447
943
0944
3,579,503
219
3,579,722

81,802
33,69527,6184,038
35,717
3,617
186,489
2,735,286
953
(7)
946
2,734,339
79
2,734,419

¥
¥

(Yen)
8th period(From February 1, 2020
to July 31, 2020)¥
6,215

Mitsui Fudosan Logistics Park Inc.
Statements of Changes in Net Assets

Number of units
Balance as of February 1,
2020
Issuance of new units
through public offering asof February 3, 2020
Issuance of new units
through allocation to athird party as of February
27, 2020
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of July 31, 2020
Issuance of new units
through public offering asof October 5, 2020
Issuance of new units
through allocation to athird party as of October
19, 2020
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of January 31,
2021

Unitholders’ capital(thousands of yen)
Deduction from
Unitholders’
Unitholders’unitholders’capitalcapital (net)capitalRetained
Total net assets
earnings(thousands of(thousands of
yen)
yen)

379,000¥ 107,416,211¥ (593,985)¥106,822,225 ¥ 2,238,074¥109,060,299

59,00028,289,084-

28,289,084-

28,289,084

3,000

1,438,428-

1,438,428-

1,438,428--(257,341)(257,341)-(257,341)

-

-

-

-

(2,237,995)(2,237,995)-

2,734,339

2,734,339¥136,292,396 ¥ 2,734,419¥139,026,815

-

-

-

441,000¥137,143,723¥ (851,326)

96,19045,922,164-

45,922,164-

45,922,164

4,810

2,296,346-

2,296,346-

2,296,346--(342,657)(342,657)-(342,657)

-

-

-

-

(2,734,200)(2,734,200)

-

-

-

-

3,579,503

3,579,503

542,000¥185,362,234¥(1,193,983)¥184,168,250 ¥ 3,579,722¥187,747,973

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

- 38 -

Mitsui Fudosan Logistics Park Inc.
Statements of Cash Flows

9th period(From August 1, 2020
to January 31, 2021)
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Amortization of investment unit issuance expenses
Interest income
Interest expense
Insurance income
Disaster recovery expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expense paid
Insurance income received
Disaster recovery expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property and equipment in trust
Purchase of intangible assets
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment units
Payment of distribution of earnings
Payment of distribution in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 3)
The accompanying notes are an integral part of these financial statements.

- 39 -¥¥

3,580,447
2,060,850
43,519(22)
119,875
61,317(12,108)
439(114,641)
265,006
230,727
399,872354
6,635,638
22(116,040)(953)
6,518,666(Thousands of yen)
8th period(From February 1, 2020
to July 31, 2020)¥

2,735,286
1,662,460
33,695(23)
81,802(40,124)
35,717(1,124)(7,192)(4,466)(2,540,809)(340,592)(163,963)
114,418
264,699(1,425)
1,828,356
23(81,647)
65,533(41,217)(794)
1,770,253(77,960,576)(1,746)(2,633)
1,964,755(76,000,201)(48,802,159)(50,311)1,331,259(47,521,211)

20,100,000(19,200,000)
24,500,000
48,150,149(2,734,089)(342,589)
70,473,469
991,935
5,550,690
6,542,625

8,800,000(5,400,000)
16,600,000
29,638,124(2,237,850)(257,271)
47,143,002
1,392,045
4,158,645
5,550,690¥

Mitsui Fudosan Logistics Park Inc.
Notes to Financial Statements
1.

Organization and Basis of Presentationa. Organization
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March
4, 2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer with investments in capital of ¥300 million (600 investment units). Registration with the Kanto
Local Finance Bureau of the Ministry of Finance of Japan was completed on March 25, 2016. The investment units were listedon the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock Exchange, Inc. on August 2, 2016
(Securities Code: 3471).
MFLP-REIT started acquisition of properties on August 2, 2016. With Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as a sponsor,
MFLP-REIT invests primarily in logistics facilities with a particular focus on MFLP facilities, that is, leading-edge logistics
facilities with Mitsui Fudosan quality. This focus has been chosen in light of MFLP-REIT’s goal of establishing a portfolio thatemphasizes location, quality and balance.
As of January 31, 2021, MFLP-REIT held 20 properties with the total acquisition price of ¥282.4 billion.
b. Basis of presentation
The accompanying financial statements of MFLP-REIT have been prepared in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial Instruments and Exchange Act of Japan,
the Investment Trust Act and the related regulations, which are different in certain respects as to application and disclosure
requirements of the International Financial Reporting Standards.
The accompanying financial statements are based on the financial statements of MFLP-REIT, which were prepared in accordancewith Japanese GAAP and were presented in its Asset Management Report published for Japanese investors. In preparing theaccompanying financial statements, certain reclassifications and modifications have been made to the financial statements issued
domestically in order to present them in a format which is more familiar to readers outside Japan.
MFLP-REIT’s fiscal period is a six-month period, which ends at the end of January and July of each year.
MFLP-REIT does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying financial
statements and the notes thereto, as permitted by the Financial Instruments and Exchange Act of Japan. As a result, the totals
shown in the financial statements and notes thereto do not necessarily agree with the sum of the individual amounts.

2.

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

- 40 -

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

2 to 59 years
8 to 50 years

Machinery and equipment:
Vehicles:

14 to 17 years
4 years

Tools, furniture and fixtures:

3 to 15 years

c. Intangible assets
Intangible assets are stated at cost, which includes the original purchase price and related acquisition costs and expenses.
Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives. Amortization ofsoftware for internal use is calculated using the straight-line method over the estimated useful lives of five years at MFLP-REIT.
d. Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method over a three-year period.
e. Disaster recovery expenses
Disaster recovery expenses comprise the recovery expenses corresponding to the insurance received for damage from natural
disasters as a result of the typhoons, etc. that occurred in 2019.
f. Taxes on property and equipment
With respect to property taxes, city planning taxes and depreciable asset taxes imposed on real estate properties or trust
beneficiary interests in real estate, of the tax amount assessed and determined, the amount corresponding to the relevant fiscal
period is accounted for as property-related expenses.
Of the amounts paid for the acquisitions of real estate properties or trust beneficiary interests in real estate, the amount equivalent
to property-related taxes is capitalized as part of the acquisition cost of the relevant property instead of being charged as expenses.
Capitalized property-related taxes amounted to ¥299,016 thousand for the 8th period and ¥102,324 thousand for the 9th period.
g. Trust beneficiary interests in real estate
As to trust beneficiary interests in real estate that have real estate properties as assets in trust, all accounts of assets and liabilities
within assets in trust as well as all income generated and expenses incurred from assets in trust are recorded in the relevantbalance sheet and statement of income account items.
The following material items of the assets in trust recorded in the relevant account items are separately presented in theaccompanying balance sheets.
(1) Cash and deposits in trust(2) Buildings in trust, structures in trust, machinery and equipment in trust, vehicles and transport equipment in trust, tools,
furniture and fixtures in trust and land in trust(3) Construction in progress in trust(4) Tenant leasehold and security deposits in trusth. Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.

- 41 -

3.

Cash and Cash Equivalents
Reconciliation between cash and cash equivalents and accounts and amounts in the balance sheets is as follows:(Thousands of yen)

Cash and deposits

9th period(As of January 31, 2021)

8th period(As of July 31, 2020)¥¥

Cash and deposits in trust

5,923,159

Cash and cash equivalents
4.

619,466¥

6,542,625

1,460,869
4,089,821¥

5,550,690

Financial Instruments
a. Status of financial instruments(1) Policy for financial instruments
MFLP-REIT procures funds for acquisition of assets or repayment of debts mainly through issuance of investment units,loans or issuance of investment corporation bonds.
MFLP-REIT generally invests surplus funds in deposits considering safety of the investments although surplus funds
could be invested in securities and monetary claims as a matter of policy.
MFLP-REIT enters into derivative transactions to a limited extent for the purpose of avoiding the risk of interest rate
fluctuation and other risks. MFLP-REIT does not engage in speculative transactions.
(2) Financial instruments, their associated risks and risk management system
Deposits are used for investment of MFLP-REIT’s surplus funds, and are exposed to credit risk such as failure of thefinancial institutions holding the deposits. MFLP-REIT limits the credit risk by restricting the deposit periods to shortterms and selecting financial institutions that have high credit ratings.
Proceeds from loans are used mainly to acquire real estate properties or refinance existing loans. While these loans are
exposed to liquidity risk at the time of repayment, MFLP-REIT mitigates the liquidity risk by diversifying its means offund procurement and lending financial institutions, dispersing repayment dates, establishing commitment lines andsecuring liquidity on hand, and also controls the liquidity risk by preparing monthly fund management plans.
In addition, loans with floating interest rates are exposed to the risk of interest rate rising. MFLP-REIT limits the impact
of interest rate rises on its operations by keeping the ratio of interest-bearing debt to total assets at a low level andmaintaining the ratio of fixed-rate long-term loans at a high level.
Tenant leasehold and security deposits in trust are deposits from tenants, and are exposed to liquidity risk at the time thetenants vacate the properties. MFLP-REIT controls the liquidity risk by preparing monthly fund management plans.
(3) Supplementary explanation regarding fair values of financial instruments
The fair value of financial instruments is based on their observable market value, if available. When there is no observable
market value available, fair value is based on a price that is reasonably estimated. Since variable factors are also reflectedin estimating the fair value, different assumptions and factors could result in a different value.

- 42 -

b. Estimated fair value of financial instruments
The carrying amounts, fair values and their differences as of January 31, 2021 and July 31, 2020 are as follows. Financial
instruments for which it is extremely difficult to determine the fair value are excluded from the following tables (Note 2 below):(Thousands of yen)
Carrying amount

9th period (As of January 31, 2021)(1) Cash and deposits¥(2) Cash and deposits in trust

619,466

Fair value¥

5,923,159

Total assets¥(3) Short-term loans payable

6,542,625¥

5,900,000

Difference

619,466-

5,923,159-

6,542,625-

5,900,000-(4) Long-term loans payable

82,400,000

82,215,635¥ (184,364)

Total liabilities¥ 88,300,000¥ 88,115,635¥ (184,364)(Thousands of yen)

8th period (As of July 31, 2020)

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

1,460,869

Fair value¥

4,089,821

Total assets¥

5,550,690¥

Difference

1,460,869-

4,089,821-

5,550,690-(3) Short-term loans payable

5,000,000

5,000,000-(4) Long-term loans payable

57,900,000

57,830,630¥ (69,369)

Total liabilities¥ 62,900,000¥ 62,830,630¥ (69,369)(Note 1) Methods to estimate fair values of financial instruments(1) Cash and deposits and (2) Cash and deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(3) Short-term loans payable
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(4) Long-term loans payable
The fair value is determined based on the present value being calculated by discounting the sum of principal and interest by the assumed
interest rate which would be applied if a similar new loan were entered into.
(Note 2) Financial instruments for which it is extremely difficult to determine the fair value(Thousands of yen)

9th period(As of January 31,
2021)
Tenant leasehold and security deposits in trust¥

8th period(As of July 31, 2020)

6,265,894¥

4,303,772

Tenant leasehold and security deposits in trust are not subject to fair value disclosure, because a reasonable estimation of future cash flows isdifficult as no market price is available and the actual deposit period cannot be determined even when a contract period is set in the lease
contract since there is a possibility that the leases may be cancelled, renewed or re-signed.
(Note 3) Redemption schedule for monetary claims(Thousands of yen)
9th period (As of January 31, 2021)

Due within one year

Cash and deposits¥

619,466

Cash and deposits in trust¥

5,923,159(Thousands of yen)
8th period (As of July 31, 2020)

Due within one year

Cash and deposits
Cash and deposits in trust- 43 -¥

1,460,869¥

4,089,821

(Note 4) Repayment schedule for loans(Thousands of yen)
9th period(As of January 31,
2021)

Due within
one year

Short-termloans payable¥

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

-

-

-

-

5,900,000

Long-termloans payable-¥

5,300,000¥

9,600,000¥

9,600,000¥

5,700,000

Due after
five years¥

52,200,000(Thousands of yen)
8th period(As of July 31,
2020)
Short-termloans payable

Due within
one year¥

Due after two to
three years

Due after three tofour years

Due after four tofive years

-

-

-

-

5,000,000

Long-termloans payable5.

Due after one to
two years-¥

1,900,000¥

9,000,000¥

10,600,000¥

6,600,000

Due after
five years¥

29,800,000

Investment and Rental Properties
MFLP-REIT owns logistics facilities and industrial properties for the purpose of earning rental income. The carrying amount,net changes in the carrying amount during the periods and fair value of these investment and rental properties are as follows:(Thousands of yen)
9th period(From August 1, 2020
to January 31, 2021)

8th period(From February 1, 2020
to July 31, 2020)

Carrying amount¥

Balance at beginning of period

199,790,833¥

152,526,403

Changes during the period

75,854,596

47,264,430

Balance at end of period

275,645,430

199,790,833

Fair value at the end of the period¥

303,080,000¥

219,250,000(Note 1) The carrying amount represents acquisition cost less accumulated depreciation.
(Note 2) Changes in the carrying amount during the 8th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests
in real estate for three properties (¥48,848,618 thousand), and the decrease mainly attributable to depreciation (¥1,661,340 thousand). Changes
in the carrying amount during the 9th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests in realestate for two properties (¥77,736,022 thousand), and the decrease mainly attributable to depreciation (¥2,059,671 thousand).
(Note 3) The fair value at the end of the period represents the appraisal value or surveyed value by external real estate appraisers.

Information about income and loss from investment and rental properties is stated in Note 8. “Property Leasing Business
Revenues and Expenses.”- 44 -

6.

Net Assets
a. Stated capital
MFLP-REIT issues only non-par value units in accordance with the Investment Trust Act of Japan and all of the issue prices of
new units are designated as stated capital. MFLP-REIT maintains at least ¥50,000 thousand as the minimum net assets as requiredby the Article 67, Paragraph 4 of the Investment Trust Act of Japan.
b. Distributions
Distributions related to the periods but declared after the balance sheet dates are summarized as follows:(Yen)
9th period(From August 1, 2020 to January 31, 2021)
Total

I. Unappropriated retained earnings

8th period(From February 1, 2020 to July 31, 2020)

Per unit

Total¥ 3,579,722,644¥ 2,734,419,030

368,018,000

342,657,000

Per unit

II. Distributions in excess of retained
earnings
Deduction from unitholders’capitalIII. Distributions

3,579,368,000

Distribution of earnings
Distribution in excess of retained

368,018,000

earnings
Total distributions
IV. Retained earnings carried forward¥¥ 3,947,386,000¥¥

354,6446,604

2,734,200,000

679

342,657,000

7,283¥ 3,076,857,000
¥

¥

6,200
777

¥

6,977

219,030

In accordance with the distribution policy as defined in the Article 35, Paragraph 1 of the Articles of Incorporation of MFLP-REIT,
distributions shall be in excess of the amount equivalent to 90% of the amount of earnings available for dividends defined in the
Article 67-15 of the Act on Special Measures Concerning Taxation.
Based on this policy, for the fiscal periods ended January 31, 2021 and July 31, 2020, MFLP-REIT declared a distribution amount of¥3,579,368,000 and ¥2,734,200,000, respectively, which are the maximum value of the integral multiple of the total number ofinvestment units issued and outstanding at the end of each period in amounts not in excess of unappropriated retained earnings.
Furthermore, based on the distribution policy as defined in the Article 35, Paragraph 2 of the Articles of Incorporation, MFLP-REIT
executes the distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing unitholders’ capitalfor tax purposes) each fiscal period on a continuous basis.
Based on this policy, for the fiscal period ended January 31, 2021, MFLP-REIT declared the distribution of ¥368,018,000, which is
calculated as being almost equivalent to the remaining amount after subtracting the distribution of earnings of ¥3,579,368,000 from¥3,947,422,915 or 70% of FFO (funds from operation), as distribution of cash in excess of retained earnings (return of capital
applicable to distribution reducing unitholders’ capital for tax purposes).
For the fiscal period ended July 31, 2020, MFLP-REIT declared the distribution of ¥342,657,000, which is calculated as being almost
equivalent to the remaining amount after subtracting the distribution of earnings of ¥2,734,200,000 from ¥3,076,976,591 or 70% of
FFO (funds from operation), as distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing
unitholders’ capital for tax purposes).
(Note)

MFLP-REIT may execute cash distribution in excess of distributable amount, in an amount it determines within a scope not to exceed the limit stipulated
in the rules and requirements imposed by The Investment Trusts Association, Japan, when MFLP-REIT considers it appropriate, given such factors as
economic environment, trends in the real estate market or leasing market, the situation surrounding owned assets and the financial condition.
In addition, in case that any cash distribution fails to meet the statutory requirements for special tax treatment for investment corporations, MFLP-REIT
may execute cash distribution in excess of distributable amount, in an amount it determines to meet the statutory requirements.

- 45 -

7.

Short-term and Long-term Loans Payable
Short-term and long-term loans payable mainly consisted of bank borrowings under loan agreements. The following tablesummarizes the short-term and long-term loans payable as of January 31, 2021 and July 31, 2020.
(Thousands of yen)
9th period(As of January 31, 2021)
0.1041% unsecured short-term loans-

0.1203% unsecured short-term loans
0.1139% unsecured short-term loans¥

0.0951% unsecured short-term loans
0.0852% unsecured short-term loans
Total short-term loans payable
0.2713% unsecured long-term loans due 2022
0.4213% unsecured long-term loans due 2026

8th period(As of July 31, 2020)¥

2,000,000

2,400,000
3,500,000--

2,500,000
500,000¥

5,900,000¥

5,000,000¥

2,000,000
1,500,000¥

2,000,000
1,500,000

0.2400% unsecured long-term loans due 2022
0.2500% unsecured long-term loans due 2023

1,600,000
2,000,000

1,600,000
2,000,000

0.1475% unsecured long-term loans due 2024
0.2000% unsecured long-term loans due 2024

3,000,000
1,700,000

3,000,000
1,700,000

0.3723% unsecured long-term loans due 2030
0.2829% unsecured long-term loans due 2027

3,500,000
4,800,000

3,500,000-

0.4168% unsecured long-term loans due 2029
0.3050% unsecured long-term loans due 2023

5,700,000
2,000,000

2,000,000

0.3813% unsecured long-term loans due 2025
0.1059% unsecured long-term loans due 2025

1,500,000
800,000

1,500,000
800,000

0.1425% unsecured long-term loans due 2022
0.2113% unsecured long-term loans due 2024

400,000
1,700,000

400,000
1,700,000

0.4895% unsecured long-term loans due 2027
0.3687% unsecured long-term loans due 2028

900,000
2,000,000

900,000
2,000,000

0.4942% unsecured long-term loans due 2030
0.4707% unsecured long-term loans due 2030

3,500,000
1,500,000

3,500,000-

0.1826% unsecured long-term loans due 2023
0.2313% unsecured long-term loans due 2026

2,200,000
3,100,000

2,200,000
3,100,000

0.2385% unsecured long-term loans due 2027
0.4272% unsecured long-term loans due 2030

800,000
800,000

800,000
800,000

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

600,000
700,000

600,000
700,000

0.2188% unsecured long-term loans due 2022
0.2613% unsecured long-term loans due 2023

300,000
900,000

300,000
900,000

0.1163% unsecured long-term loans due 2023
0.3255% unsecured long-term loans due 2028

500,000
5,500,000

500,000-

0.3125% unsecured long-term loans due 2026
0.4851% unsecured long-term loans due 2029

3,100,000
1,000,000

3,100,000-

0.2169% unsecured long-term loans due 2024
0.3563% unsecured long-term loans due 2025

1,300,000
1,000,000

1,300,000
1,000,000

0.3988% unsecured long-term loans due 2029
0.2575% unsecured long-term loans due 2022

2,000,000
1,000,000

2,000,000
1,000,000

0.3360% unsecured long-term loans due 2028
0.3319% unsecured long-term loans due 2024

1,000,000
600,000

1,000,000
600,000

0.5377% unsecured long-term loans due 2030
0.2087% unsecured long-term loans due 2025

3,000,000
600,000

600,000

0.1836% unsecured long-term loans due 2027
0.2629% unsecured long-term loans due 2027

1,300,000
1,000,000

1,300,000-- 46 -

9th period(As of January 31, 2021)

8th period(As of July 31, 2020)

0.2375% unsecured long-term loans due 2023
0.1863% unsecured long-term loans due 2025

2,000,000
1,800,000

2,000,000
1,800,000

0.3809% unsecured long-term loans due 2029
0.3975% unsecured long-term loans due 2026

2,400,000
1,000,000

2,400,000
1,000,000

0.2182% unsecured long-term loans due 2028
0.3305% unsecured long-term loans due 2027

800,000
2,000,000

800,000-

Total long-term loans payable(Note)¥

82,400,000¥

57,900,000

The stated interest rates are the weighted average interest rates during the fiscal periods ended January 31, 2021 and July 31, 2020 androunded to the fourth decimal place.

The repayment schedule for loans is disclosed in Note 4. “Financial Instruments.”
MFLP-REIT had the commitment line contracts with two banks as of January 31, 2021 and July 31, 2020.
(Thousands of yen)
9th period(As of January 31, 2021)
Total amount of commitment line contracts¥

6,000,000

Loans executed¥¥

Unused line of credit
8.

8th period(As of July 31, 2020)
6,000,000-

6,000,000¥

6,000,000

Property Leasing Business Revenues and Expenses
The following table summarizes the revenues and expenses generated from the property leasing business for the fiscal periods
ended January 31, 2021 and July 31, 2020.
(Thousands of yen)
9th period(From August 31, 2020
to January 31, 2021)

8th period(From February 1, 2020
to July 31, 2020)

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

7,362,647
395,141¥

5,818,379
292,081¥7,757,788¥

6,110,460¥

321,660
39,997¥

206,969
30,242

20,145

Others
Total
Total property leasing business revenues

16,245¥

381,802¥

253,457¥

8,139,590¥

6,363,918¥

477,558
271,374¥

382,417
187,574

B. Property leasing business expenses
Property-related expenses
Outsourcing service expenses
Utilities expenses
Repair expenses
Taxes and dues
Depreciation and amortization
Others65,708489,342

65,922
489,4132,059,671
108,127

1,661,340
29,978

Total property leasing business expenses¥

3,471,784¥

2,816,648

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

4,667,806¥

3,547,270- 47 -

9.

Income Taxes
MFLP-REIT is subject to Japanese corporate income taxes on its taxable income. The tax effects of temporary differences thatgive rise to a significant portion of the deferred tax assets and liabilities as of January 31, 2021 and July 31, 2020 are as
follows:(Thousands of yen)
9th period(As of January 31, 2021)

8th period(As of July 31, 2020)

Deferred tax assets:
Accrued enterprise tax

¥

16

¥

16

Total deferred tax assets

¥

16

¥

16

Net deferred tax assets

¥

16

¥

16

Reconciliations between the Japanese statutory tax rate and the effective income tax rate with respect to pre-tax income
reflected in the accompanying statements of income for the fiscal periods ended January 31, 2021 and July 31, 2020 are as
follows:
9th period(As of January 31, 2021)
Statutory tax rate
Adjustments:
Deductible distributions
Other
Effective income tax rate after application of tax-effectaccounting

8th period(As of July 31, 2020)

31.46%

31.46%(31.45)0.02(31.45)
0.02

0.03%

0.03%

10. Per Unit Information
The following table summarizes per unit information for the fiscal periods ended January 31, 2021 and July 31, 2020.
9th period(From August 1, 2020
to January 31, 2021)

8th period(From February 1, 2020
to July 31, 2020)

Earnings per unit:¥

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

Net assets per unit (yen)

7,074

¥

6,215

505,955

439,923

9th period(As of January 31, 2021)

8th period(As of July 31, 2020)¥

346,398¥

315,253

Net income per unit is calculated by dividing net income by the daily weighted average number of investment units outstanding
during the period. Diluted net income per unit is not stated because there are no dilutive investment units.

- 48 -

11. Leases
The future minimum rental revenues from tenants subsequent to January 31, 2021 and July 31, 2020 under non-cancelable
operating leases of properties are as follows:(Thousands of yen)

Due within one year

9th period(As of January 31, 2021)

8th period(As of July 31, 2020)¥¥

Due after one year

15,249,505
33,041,536

Total

¥

48,291,042

11,642,773
25,383,593¥

37,026,366

12. Transactions with Related Parties
There are no significant transactions and balances with related parties for the fiscal periods ended January 31, 2021 and July
31, 2020.
13. Segment and Related Information
For the fiscal periods ended January 31, 2021 and July 31, 2020
a. Segment information
Segment information has been omitted as MFLP-REIT engages in a single segment of the property leasing business.
b. Related information(1) Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statements of income.
(2) Information by geographical area(i) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of the total
operating revenues on the statements of income.
(ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheets.
(3) Information on major tenant
Disclosure of this information has been omitted because there is no tenant whose operating revenues make up 10% ormore of total operating revenues.
14. Significant Subsequent Events
1. Acquisitions of properties
MFLP-REIT acquired the trust beneficiary interests for the following asset on March 16, 2021.

Category

Property no.

Property nameLocation

Acquisition price(Note)(millions of yen)

Acquisition date

Industrial real estate

I-2

MFIP Inzai II

Inzai-shi, Chiba

15,150March 16, 2021

(Note)“Acquisition price” is the purchase price of trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiary interestfor the asset acquired (excluding consumption tax, local consumption tax and the various costs required in the acquisition), rounded down to thenearest million yen.

- 49 -

2. Borrowing of funds
MFLP-REIT has borrowed the following funds to apply to part of the acquisition funds and related expenses for the real estate
trust beneficiary interests in the above “1. Acquisitions of properties.”

LenderBorrowingamount(millions of yen)

Sumitomo
Mitsui Trust
Bank,
Limited2,000

The Bank ofFukuoka,
Ltd.

1,500

Sumitomo
Mitsui Trust
Bank,
LimitedSumitomo
Mitsui
Banking
Corporation
Sumitomo
Mitsui
Banking
Corporation
MizuhoBank, Ltd.
ShinkinCentral BankMUFG Bank,Ltd.
MUFG Bank,
Ltd.
The
Norinchukin
Bank
The Chiba
Bank, Ltd.
Shinsei Bank,
LimitedThe
Yamaguchi
Bank, Ltd.
The 77 Bank,
Ltd.
Total

Interest rate
Base rate (JBA 1month yen TIBOR)+0.05%(Note 1)
Base rate (JBA 1month yen TIBOR)+0.05%(Note 2)

Drawdown date Repayment date

Repayment
methodCollateral

March 16,
2021

April 16,
2021

Bulletrepayment

UnsecuredNon-guaranteed

March 16,2021

May 20,2021

Bulletrepayment

UnsecuredNon-guaranteed

2,000

0.1950%March 16,2021

March 16,2026

Bulletrepayment

UnsecuredNon-guaranteed

800

0.3743%

March 16,2021

March 16,
2028

Bulletrepayment

UnsecuredNon-guaranteed

800

0.6325%

March 16,2021

March 16,2031

Bulletrepayment

UnsecuredNon-guaranteed

1,600

0.6325%1,200

0.5937%500

0.3743%5000.4408%March 16,2021
March 16,2021
March 16,2021
March 16,2021

March 17,
2031
September 17,
2030
March 16,2028
March 16,
2029

Bulletrepayment
Bulletrepayment
Bulletrepayment
Bulletrepayment

UnsecuredNon-guaranteed
UnsecuredNon-guaranteed
UnsecuredNon-guaranteed
UnsecuredNon-guaranteed

1,000

0.3464%

March 16,2021

March 16,
2028

Bulletrepayment

UnsecuredNon-guaranteed

1,000

0.3464%1,000

0.5937%

March 16,2021
March 16,2021

March 16,2028
September 17,
2030

Bulletrepayment
Bulletrepayment

UnsecuredNon-guaranteed
UnsecuredNon-guaranteed

800

0.7140%March 16,2021

March 16,2032

Bulletrepayment

UnsecuredNon-guaranteed

800

0.6325%

March 16,2021

March 17,
2031

Bulletrepayment

UnsecuredNon-guaranteed

15,500

―

―

―

―

―

(Note 1) The interest payment date is the repayment date. The base rate is JBA yen TIBOR published by JBA TIBOR
Administration as of two business days prior to the drawdown date.
(Note 2) The first interest payment date is April 16, 2021, and thereafter the interest payment date will be May 16, 2021 and therepayment date. The base rate is JBA 1-month yen TIBOR published by JBA TIBOR Administration as of two businessdays prior to the previous payment date (however, drawdown date for the first time) of each payment date. However, inthe case that interest calculation period is less than one month, it will be the base rate corresponding to the applicable
period calculated based on the method set forth in the contract.
Please refer to the JBA TIBOR Administration website (http://www.jbatibor.or.jp/rate/) for JBA yen TIBOR.

- 50 -

3. Issuance of investment corporation bonds
On February 5, 2021, MFLP-REIT determined the issuance of investment corporation bonds under the following conditions,based on a resolution on issuance of investment corporation bonds passed at its Board of Directors meeting held on January 12,2021 and the shelf registration statement dated January 12, 2021 (including the subsequent amendment). The investment
corporation bonds were issued on February 12, 2021.
Name

Mitsui Fudosan Logistics Park Inc. 1st Unsecured Bonds(Special pari passu conditions among specified investment
corporation bonds) (Sustainability Bonds)

Total issue amount¥3,000 million

Payment dateFebruary 12, 2021

Issue price¥100 per ¥100 of each bondInterest rate

0.500% per annum

Collateral, guarantee

Neither collateral nor guarantee is provided for the investment corporation bonds, and no
asset has been particularly secured for the investment corporation bonds.

Redemption method and date

The total amount of the investment corporation bonds will be redeemed on February 12,2031. Redemption by purchase will be available any time on and after the following daysof the payment dates except for the case separately determined by the depository.

Interest payment dateFebruary 12 and August 12 of each year, or if such date falls on a bank holiday, theimmediately preceding bank business day

Use of proceeds

Under the Sustainability Finance Framework, MFLP-REIT allocated the full amount of
net proceeds to refinancing funds for its loan that was due on February 15, 2021, borrowed
for acquisition of MFLP Ibaraki and MFLP Kawaguchi I, which are specified assets
subject to sustainability finance.

*

*

*

- 51 -**