Sustainability Bond / Sustainability Bond Programme
External Review Form
Section 1.

Basic Information

Issuer name: Mitsui Fudosan Logistics Park Inc.
Sustainability Bond ISIN or Issuer Sustainability Bond Framework Name, if applicable: The First Unsecured
Investment Corporation Bonds
Independent External Review provider’s name: Japan Credit Rating Agency Co., Ltd.
Completion date of this form: January 12, 2021
Publication date of review publication: January 12, 2021

Section 2.

Review overview

SCOPE OF REVIEWThe following may be used or adapted, where appropriate, to summarise the scope of the review.

The review assessed the following elements and confirmed their alignment with the GBPs and the SBPs:☒☒

Use of Proceeds
Management of Proceeds☒☒

Process for Project Evaluation and Selection
Reporting

ROLE(S) OF INDEPENDENT EXTERNAL REVIEW PROVIDER☐

Second Party Opinion☐

Certification☐

Verification☒

Scoring/Rating☐

Other (please specify):

Note: In case of multiple reviews / different providers, please provide separate forms for each review.

Latest update : June 2020

EXECUTIVE SUMMARY OF REVIEW and/or LINK TO FULL REVIEW (if applicable)
Mitsui Fudosan Logistics Park Inc. (the “Investment Corporation”) was established on March 4, 2016, andlisted on the Tokyo Stock Exchange (real estate investment trust securities market) on August 2, 2016. Thesponsor (100% stake) of Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset ManagementCompany”), an asset management company, is Mitsui Fudosan Co., Ltd. With logistics facilities as the maininvestment target, a system has been established to build a strategic collaborative relationship with Mitsui
Fudosan, a comprehensive developer, to expand the logistics business in conjunction with Mitsui Fudosan,
with the development function being undertaken by Mitsui Fudosan, the management function being
undertaken by the Asset Management Company and Mitsui Fudosan, and the holding function being
undertaken by the Investment Corporation as the core role. This is the first listed investment corporation to
be named "Mitsui Fudosan" as a J-REIT sponsored by Mitsui Fudosan.
Mitsui Fudosan calls advanced logistics facilities with quality that meet the diversification needs of various
entities involved in logistics facilities (tenants, employees working at logistics facilities, and localcommunities) in addition to offering high-efficiency, convenience, and safety MFLP (Mitsui Fudosan Logistics
Park), and the Investment Corporation's policy is to invest heavily in MFLP. The current portfolio is 20properties with an aggregate acquisition price of JPY282.4 billion.
The subject of this evaluation is the first unsecured investment corporation bonds (the “Bonds”) that theInvestment Corporation is planning to issue. The proceeds of the Bonds will be 100% allocated to refinancethe funds to acquire MFLP Kawaguchi I and MFLP Ibaraki, properties that satisfy the eligibility criteria in theSustainability Finance Framework established by the Investment Corporation. Both properties satisfy theGreen Eligibility Criteria, and MFLP Kawaguchi I is expected to contribute to the development of basic
infrastructures and socio-economic advancement and empowerment for local residents. Based on theabove, JCR evaluates that the use of proceeds of the Bonds is projects with environmental improvement
effects and social benefits.
System for addressing environmental and social issues are properly established, and systems are in place for
specialized departments and management teams to be involved in the selection and process of projects
subject to the use of proceeds. Fund management is conducted in a predetermined manner by thedepartment in charge. Information disclosed as reporting has clear environmental improvement effects andsocial benefits. Based on the above, JCR confirmed that the Investment Corporation has a strong
management and operational system and high transparency in implementing sustainability finance.
Based on the JCR Sustainability Finance Evaluation Methodology, JCR assigns “gs1” for the preliminary
evaluation of the "Green Social Evaluation (Use of Proceeds)" and “m1” for the preliminary evaluation of the"Management, Operation and Transparency Evaluation." As a consequence, JCR evaluates “SU 1” for the"JCR Sustainability Bond Preliminary Evaluation." The Bonds are considered to meet the standards for items
required in the Green Bond Principles, the Social Bond Principles, the Sustainability Guidelines, and theGreen Bond Guidelines issued by the Ministry of the Environment.
https://www.jcr.co.jp/en/greenfinance/

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Section 3.

Detailed review

Reviewers are encouraged to provide the information below to the extent possible and use the comment section to explain
the scope of their review.

1. USE OF PROCEEDS
Overall comment on section (if applicable):- The proceeds of the Bonds will be used in full to refinance the funds to acquire MFLP Kawaguchi I and MFLP
Ibaraki.
- The Investment Corporation identifies environmental and social risks appropriately and takes necessary
measures to avoid or mitigate them.

Use of proceeds categories as per GBP:
☐Renewable energy☒

Energy efficiency☐

Pollution prevention and control☐☐Terrestrial and aquatic biodiversity
conservation
Sustainable water and wastewatermanagement
Eco-efficient and/or circular economy
adapted products, production technologies
and processes
Unknown at issuance but currently expected
to conform with GBP categories, or othereligible areas not yet stated in GBPs☐

Environmentally sustainable managementof living natural resources and land use
Clean transportation☐

Climate change adaptation☒

Green buildings☐

Other (please specify):☐☐☐

If applicable please specify the environmental taxonomy, if other than GBPs:

Use of proceeds categories as per SBP:☒

Affordable basic infrastructure☒

Access to essential services☐

Affordable housing☐

Employment generation / programs
designed to prevent and/or alleviate
unemployment stemming fromsocioeconomic crises☐

Food security and sustainable food systems☒

Socioeconomic advancement andempowerment☐

Unknown at issuance but currently expected
to conform with SBP categories, or othereligible areas not yet stated in SBPs☐

Other (please specify):

If applicable please specify the social taxonomy, if other than SBPs:

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Target populations:☐ Living below the poverty line

☐ Excluded and/or marginalised populations and☐ People with disabilities☐ Migrants and /or displaced persons☐ Undereducated☐ Underserved, owing to a lack of quality access☐ Unemployed☐ Women and/or sexual and gender minorities☐ Aging populations and vulnerable youth☒ Other vulnerable groups, including as a result/or communities

to essential goods and servicesof natural disasters☒ Other (please specify):
Local residents

2. PROCESS FOR PROJECT EVALUATION AND SELECTION
Overall comment on section (if applicable):At t\The Investment Corporation , the roles of each organization are clearly divided, and the department andmanagement team with specialized knowledge in the decision-making process are involved.
From this, the JCR evaluates issuer’s selection criteria and selection process as appropriate.

Evaluation and selection☒☒☒

Credentials on the issuer’s social andgreen objectives
Defined and transparent criteria for
projects eligible for Sustainability Bond
proceeds
Summary criteria for project evaluationand selection publicly available☒☒☐

Documented process to determine thatprojects fit within defined categories
Documented process to identify and manage
potential ESG risks associated with the project
Other (please specify):

Information on Responsibilities and Accountability☐☐Evaluation / Selection criteria subject toexternal advice or verification
Other (please specify):☒In-house assessment

3. MANAGEMENT OF PROCEEDS
Overall comment on section (if applicable):Fund management is evaluated as appropriate, given that the funds procured are reliably appropriated tothe target project, the funds procured are managed in an appropriate manner within the Investment
Corporation , the internal control system is established, and there are no particular concerns regarding theoperation of unallocated funds.

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Tracking of proceeds:☒Sustainability Bond proceeds segregated or tracked by the issuer in an appropriate manner☒Disclosure of intended types of temporary investment instruments for unallocated proceeds☐

Other (please specify):

Additional disclosure:☐

Allocations to future investments only☐☒

Allocation to individual disbursements☐

Allocations to both existing and future
investments
Allocation to a portfolio of disbursements☐

Disclosure of portfolio balance of
unallocated proceeds☐

Other (please specify):

4. REPORTING
Overall comment on section (if applicable):a. Reporting on the Status of Appropriation of Funds
The use of proceeds of the Bonds will be disclosed in the Amended Issue Registration Statement. Until theproceeds are used fully, the amount allocated for each category and the unallocated amounts will be
disclosed on the Investment Corporation's website as a report on the allocation of funds. The Investment
Corporation's website will also disclose responses in the event of changes, such as the sale of properties
subject to the use of proceeds.
b. Reporting on Environmental Improvement Effects and Social Benefits
The Investment Corporation plans to disclose the predetermined items as reporting on environmental
improvement effects and social benefits.

Use of proceeds reporting:☒Project-by-project☐

On a project portfolio basis☐

Linkage to individual bond(s)☐Other (please specify):☐

Sustainability Bond financed share of total
investment☐

Semi-annual

Information reported:☒ Allocated amounts☐ Other (please specify):

Frequency:☒ Annual☐ Other (please specify):

Impact reporting:☒

Project-by-project☐

On a project portfolio basis☐

Linkage to individual bond(s)☐Other (please specify):

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Frequency:☒ Annual☐Semi-annual☐ Other (please specify):

Information reported (expected or ex-post):☐ GHG Emissions / Savings☐

Energy Savings☐ Decrease in water use☒

Number of beneficiaries☐ Target populations☒

Other ESG indicators (please specify):
Acquired valid environmental certification

Means of Disclosure☐

Information published in financial report☐

Information published in ad hoc☒ Other (please specify):
documents
Show on the website
Reporting reviewed (if yes, please specify which parts of the reporting are subject to external review):☐☐

Information published in sustainability report

Where appropriate, please specify name and date of publication in the useful links section.

USEFUL LINKS (e.g. to review provider methodology or credentials, to issuer’s documentation, etc.)
Mitsui Fudosan Logistics Park Inc.’s website about sustainability:
https://www.mflp-r.co.jp/en/sustainability/index.html
JCR’s website about green finance evaluation methodology:
https://www.jcr.co.jp/en/greenfinance/

SPECIFY OTHER EXTERNAL REVIEWS AVAILABLE, IF APPROPRIATE
Type(s) of Review provided:☐Second Party Opinion☐

Certification☐Verification☒

Scoring/Rating☐Other (please specify):

Review provider(s): Japan Credit Rating Agency, Ltd.
Date of publication: January 12, 2021

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ABOUT ROLE(S) OF REVIEW PROVIDERS AS DEFINED BY THE GBP AND THE SBP
1. Second Party Opinion: An institution with sustainability expertise that is independent from theissuer may provide a Second Party Opinion. The institution should be independent from the issuer’sadviser for its Sustainability Bond framework, or appropriate procedures such as information barriers
will have been implemented within the institution to ensure the independence of the Second PartyOpinion.
It normally entails an assessment of the alignment with the Principles. In particular, it can include anassessment of the issuer’s overarching objectives, strategy, policy, and/or processes relating tosustainability and an evaluation of the environmental and social features of the type of Projects
intended for the Use of Proceeds.
2. Verification: An issuer can obtain independent verification against a designated set of criteria,
typically pertaining to business processes and/or sustainability criteria. Verification may focus onalignment with internal or external standards or claims made by the issuer. Also, evaluation of theenvironmentally or socially sustainable features of underlying assets may be termed verification andmay reference external criteria. Assurance or attestation regarding an issuer’s internal tracking
method for use of proceeds, allocation of funds from Sustainability Bond proceeds, statement ofenvironmental or social impact or alignment of reporting with the Principles may also be termedverification.
3. Certification: An issuer can have its Sustainability Bond or associated Sustainability Bondframework or Use of Proceeds certified against a recognised external sustainability standard or label.
A standard or label defines specific criteria, and alignment with such criteria is normally tested byqualified, accredited third parties, which may verify consistency with the certification criteria.
4. Green, Social and Sustainability Bond Scoring/Rating: An issuer can have its Sustainability Bond,
associated Sustainability Bond framework or a key feature such as Use of Proceeds evaluated orassessed by qualified third parties, such as specialised research providers or rating agencies, according
to an established scoring/rating methodology. The output may include a focus on environmental
and/or social performance data, process relative to the Principles, or another benchmark, such as a2-degree climate change scenario. Such scoring/rating is distinct from credit ratings, which may
nonetheless reflect material sustainability risks.

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