20-D-1178

February 5, 2021
Sustainabilit y Bond Evaluation b y Japan Credit Rating Agenc y, Ltd.
Japan Credit Rating Agency, Ltd. (JCR) announces the following Sustainability Bond Evaluation Results.

JCR Assigned SU 1 to the Bonds ofMitsui Fudosan Logistics Park Inc.
Subject:

Mitsui Fudosan Logistics Park Inc.
The First Unsecured Investment Corporation Bonds (Sustainability Bonds)

Type

:

Investment Corporation Bonds

Issue Amount:JPY 3 billion

Interest Rate:

0.500%

Issue Date:

February 12, 2021

Redemption Date:

February 12, 2031

Method of
Repayment:

BulletUse of Proceeds:

Refinancing of funds to acquire assets held

<Sustainability Bond Evaluation Results>
Overall evaluation

SU1

Greenness and Social Beneficial
Impacts Evaluation(Use of proceeds)
Management, Operation andTransparency Evaluation

gs1
m1

Chapter 1: Evaluation Overview
Mitsui Fudosan Logistics Park Inc. (the “Investment Corporation”) was established on March 4, 2016, and listed on
the Tokyo Stock Exchange (real estate investment trust securities market) on August 2, 2016. The sponsor (100%stake) of Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management Company”), an asset
management company, is Mitsui Fudosan Co., Ltd. With logistics facilities as the main investment 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 and1/16
https://www.jcr.co.jp/en/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 local communities) 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 20 properties with an aggregateacquisition price of JPY282.4 billion.
The subject of this evaluation is the first unsecured investment corporation bonds (the “Bonds”) that the Investment
Corporation is planning to issue. The proceeds of the Bonds will be 100% allocated to refinance the funds to acquire
MFLP Kawaguchi I and MFLP Ibaraki, properties that satisfy the eligibility criteria in the Sustainability Finance
Framework established by the Investment Corporation. Both properties satisfy the Green 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 the above, 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 theuse of proceeds. Fund management is conducted in a predetermined manner by the department in charge.
Information disclosed as reporting has clear environmental improvement effects and social benefits. Based on theabove, JCR confirmed that the Investment Corporation has a strong management and operational system and hightransparency in implementing sustainability finance.
Based on the JCR Sustainability Finance Evaluation Methodology, JCR assigns “gs1” for the "Green Social
Evaluation (Use of Proceeds)" and “m1” for the "Management, Operation and Transparency Evaluation." As aconsequence, JCR evaluates “SU 1” for the "JCR Sustainability Bond Evaluation." Evaluation results are discussed
in detail in the next chapter. The Bonds are considered to meet the standards for items required in the Green Bond
Principles, the Social Bond Principles, the Sustainability Guidelines, and the Green Bond Guidelines issued by the
Ministry of the Environment.1234

1

ICMA (International Capital Market Association) Green Bond Principles 2018 Version
https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Green-Bonds-Principles-June-2018-270520.pdf
2Social Bond Principles 2018 https://www.icmagroup.org/green-social-and-sustainability-bonds/social-bond-principles-sbp/
3
ICMA Sustainability Bond Guidelines 2018https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Sustainability-Bonds-Guidelines-June-2018-270520.pdf
4
Green Bond Guidelines 2020 https://www.env.go.jp/press/files/jp/113511.pdf
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https://www.jcr.co.jp/en/Chapter 2: Current Status of the Project on Each Evaluation Factor and JCR's
Evaluation
Evaluation Phase 1: Greenness and Social Beneficial Impacts Evaluation
JCR assigns "gs1", the highest grade, to "Evaluation Phase 1: Greenness and Social Beneficial
Impacts Evaluation
Rationale: 100% use of proceeds of the Framework will be allocated to a green or social project,considering the factors described below.

(1) JCR's Key Consideration in This Factor
In this section, JCR begins by checking whether proceeds are used for projects with clear environmental
improvement effects or projects with social benefits. Next, in cases where the use of proceeds is expected to havea negative impact on the environment and society, the impact is fully examined by an internal specialized
department or an external third-party organization to confirm whether necessary measures for avoidance andmitigation have been taken. Finally, JCR confirms consistency with the Sustainable Development Goals (SDGs).

(2) Current Status of Evaluation Targets and JCR's Evaluation
The Investment Corporation has defined the following uses of proceeds in its Sustainability Finance Framework.
As a result of evaluating the framework, JCR evaluates that eligibility criteria specified in the framework coverproperties with environmental improvement effects or social benefits and assigns SU 1 (F) to the framework.
2.1. Eligible Assets to Be Invested in
Procurement funds from sustainability financing (hereinafter referred to as "procurement funds")
will be appropriated to funds for the new acquisition of specified assets (green finance, which covers
green qualified assets (as defined below), and sustainability finance, which covers green qualified
assets and sustainability qualified assets (as defined below), as well as funds for the refinancing ofloans and investment corporation bonds required for the new acquisition of such assets.
2.2. Eligibility Criteria
Green eligible assets are those that meet the Green Eligibility Criteria described below.
Sustainability eligible assets are those that meet the Green Eligibility Criteria and the Socially
Eligibility Criteria described below (Green eligibility Assets and sustainability eligible assets,collectively, the "Eligible Assets").
2.3. Green Eligibility Criteria
Certified or to be re-certified by one of the following (1) through (5) third-party certification bodies("Green Building Certification") or re-certified in the future.
(1) Three stars or more in DBJ Green Building Certification (from the top to three levels)(2) Three stars or more in BELS Certification (from the top to three levels)(3) B+ or higher in CASBEE Certification (from the top to three levels)(4) Silver, Gold or Platinum in LEED Certification (from the top to three levels)(5) The same evaluation level among third-party certifications other than the above certifications.

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2.4. Social Eligibility Criteria
New and existing properties that meet two or more of the criteria from (1) to (3) below.
(1) Development of Basic Infrastructure for Regional Revitalization
Contributing to "urban development" including surrounding areas through the use of sites, etc.,
such as the provision of green spaces in which people gather in consideration of the needs of
local governments, etc.
(2) Access to essential services to daily life
Disaster prevention measures such as evacuation sites in the event of a disaster and provide ofequipment to local residents.
Contributing to local communities through the establishment of certification child care facilities,etc.
(3) Socioeconomic Improvement and Empowerment
Contributing to local communities and the economy through the creation of jobs by tenantcompanies and the hiring of local companies in construction work

Outline of the use of proceeds
The proceeds of the Bonds will be used in full to refinance the funds to acquire MFLP Kawaguchi I and
MFLP Ibaraki.
MFLP Kawaguchi I
Property Name

MFLP Kawaguchi I

Address
Major
Applications

Ryoke 4-3342-1, Kawaguchi City, Saitama Prefecture
Logistics facilities

Total Floor Area

49,838m2

Area that can berented48,119m2

FloorsFour floors

Completion

October 31, 2019

Environmental
Certification

5 stars in BELS
S-Rank in CASBEE Saitama

Characteristics

・ In addition to better access to expressways, the proximity to Loop Line 7 andLoop Line 8 offers excellent delivery efficiency to central Tokyo. In addition,
there are buses coming out of "Kawaguchi" and "Akabane" stations on the JR
Keihin Tohoku Line, and the bus is convenient to commute about 1 minutefrom the nearest bus stop, and the surrounding area is a bed town in Tokyo, so
it is easy to secure employees.
・ In case of emergency, lighting is backed up in every place, and manhole-type
toilets, kamado benches, emergency generators, and emergency storage
warehouses are set up in open spaces to prepare for disasters.

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MFLP Ibarakia.

Property Name

MFLP Ibaraki

Address
Major
Applications

4 Akane, Saito, Ibaraki City, Osaka

Total floor area

230,435m2

Area that can berented208,699m2

FloorsSix floors

Logistics facilities

Completion

August 26, 2017

Environmental
Certification

A Rank in CASBEE Osaka

Characteristics

・ The largest flagship property in the inland area of Osaka, where tenant
demand is strong
・ In addition to Meishin High Speed, the IC of Shin-Meishin High Speed is inclose proximity, the property is located at a location that is extremely
convenient not only for delivery in the neighborhood areas such as Osaka,
Kyoto, and Kobe, but also for wide-area delivery nationwide. The residential
area is expanding in the area surrounding the property, and further, the use of
shuttle buses from the nearest station can be expected to secure a smooth labor
force.
・ The property has adopted a seismic insulation structure for warehouses andramp ways, and has emergency generators, security systems, cafeterias andretail stores, LED lighting, and sky lounges, which differentiate it fromcompetitors to increase the added value

On the environmental improvement effects and social benefits of the projects

i. The funds will be 100% allocated to projects that meet the Investment Corporation's eligibility criteria,
and high environmental improvement effects and social benefits are expected.

Environmental Improvement Effects of the Use of Proceeds
Among the projects subject to the use of proceeds of the Bonds, MFLP Kawaguchi I got five stars in BELS
and S rank in CASBEE Saitama Prefecture MFLP Ibaraki got A rank in CASBEE Osaka Prefecture. The
facilities meet the Green Eligibility Criteria set forth in the Sustainability Finance Framework.
Accordingly, JCR evaluates the use of proceeds of the Bonds as having a high environmental improvement
effect.

Social Benefits of the Use of Proceeds
Among the projects subject to the use of proceeds of the Bonds, JCR evaluates that MFLP Kawaguchi I
contributes to the development of basic infrastructures and socio-economic advancement and empowerment
among the eligible criteria for social projects stipulated in its Sustainability Finance Framework. The
following is an overview of social characteristics.
MFLP Kawaguchi I is being developed by Mitsui Fudosan being selected from among a number ofcandidates from the selection of the former site of the sewage treatment plant and sanitation center owned
by Kawaguchi City for sale.

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In the Guidelines for Implementation of Proposals for Sale, Kawaguchi City asked the Land Use Plan tomake proposals in consideration of the creation of mid-town areas, plans contributing to the promotion ofindustries in Kawaguchi City, participation and utilization of local enterprises, and consideration andcontribution to the neighborhood. In response to this, Mitsui Fudosan is proposing to contribute to thesurrounding area by utilizing local companies at the time of construction and management of this facility,
creating greenery through tree planting on the premises of this facility, providing supplies to neighboring
residents in the event of a disaster, such as kamado benches, emergency power supplies, and disasterprevention stockpiles, providing a place to rest by setting up open vacant areas, and creating anddistributing leaflets to encourage local companies. JCR evaluates that these are contributing to "urban
development to create an environment for coexistence with residential and industrial facilities with a warmup," which are future urban areas in the Kawaguchi City's "Kawaguchi City Urban Plan Basic Policy"(March 2011), and "increasing the amount of greenery in the city and aiming for a green leap town," which
is a future urban image in Kawaguchi City in the "Basic Green Plan in Kawaguchi City" (September 2008).
In addition, these initiatives include "creating space for local residents," "creating jobs and hiring local
dealers," and "promoting the use of neighboring stores," and these slogans aim at realizing MFLP’s businessstatements "Link Together, Develop Together."
Based on the above, JCR evaluates MFLP Kawaguchi I as having social benefits.
ii. Among the use of proceeds, green projects are applicable to “green buildings which meet regional,
national or internationally recognized standards or certifications” and “energy conservation business”
among the uses of proceeds exemplified under the “Green Bond Principles” and “Green Loan
Principle”, “Green Buildings related business” and “energy efficiency related business” among the usesof proceeds exemplified under the “Green Bond Guideline” and the “Green Loan and Sustainability
linked Loan Guidelines”. Social projects are applicable to "basic infrastructure development" and"socio-economic advancement and empowerment" for local residents among the uses of proceeds
defined under the “Social Bond Principles.”b. Assessment of Possible Negative Impacts on Environment and/or Social Aspects
The Asset Management Company conducts due diligence when acquiring properties subject to the use ofproceeds and decides to acquire them after confirming that there are no problems.
From this, JCR evaluates the properties subject to the use of proceeds of the Bonds as unlikely to have anegative impact on the environment and society.

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c. Consistency with SDGs
i. Consistency with ICMA's SDGs mapping
JCR evaluates projects eligible for funding contribute to the following SDGs goals and targets in light of
ICMA's SDGs mapping.
Goal 5: Gender Equality
Target 5.4. Recognize and value unpaid care and domestic work through the provisionof public services, infrastructure and social protection policies and the promotion ofshared responsibility within the household and the family as nationally appropriate.
Goal 7: Affordable and clean energy
Target 7.3. By 2030, double the global rate of improvement in energy efficiency.

Goal 8: Decent work and economic growthTarget 8.4. Improve progressively, through 2030, global resource efficiency inconsumption and production and endeavor to decouple economic growth fromenvironmental degradation, in accordance with the 10-year framework of programson sustainable consumption and production, with developed countries taking the lead.
Goal 9: Industry, innovation and infrastructure
Target 9.1. Develop quality, reliable, sustainable and resilient infrastructure, including
regional and transborder infrastructure, to support economic development andhuman well-being, with a focus on affordable and equitable access for all.
Target 9.4. By 2030, upgrade infrastructure and retrofit industries to make themsustainable, with increased resource-use efficiency and greater adoption of clean andenvironmentally sound technologies and industrial processes, with all countries taking
action in accordance with their respective capabilities.
Target 11: Sustainable cities and communities
Target 11.3. By 2030, enhance inclusive and sustainable urbanization and capacity forparticipatory, integrated and sustainable human settlement planning and management
in all countries.
Target 11.6. By 2030, reduce the adverse per capita environmental impact of cities,
including by paying special attention to air quality and municipal and other waste
management.
ii. Consistency with measures to achieve Japan SDGs
JCR confirmed that the projects subject to the use of proceeds are consistent with the following items in the"Specific Measures for Achieving SDGs" set forth by the Government of Japan as SDGs goals.5
Implementation Guideline 4. Development of sustainable and tough national land and quality infrastructure5

Sp eci fic meas ur es of t he Sus tai nabl e Devel op me nt Goal s ( SDGs) Impl e ment at i on Gui deli nes est abl is hed b y t he
Susta i nab l e De vel op ment Goals ( SDGs ) P r omot i on Hea dq ua rt ers , whic h is c omp os ed of t he nati ona l mi nis t er s.
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Strategy Overview
1. PromotionofPriority
Plan for Social
Infrastructure
Development

2. Promotionof Basic Plan
for Residents'
LivingTarget1. The 4th Priority Planfor Social Infrastructure
Development(20152020) Promotes theeffective
utilization,
consolidation,
andreorganizationofexisting
stockstorespond to the four
structural challenges ofurgentweather
disasters, accelerating
infrastructure
aging,
rural fatigue due topopulation decline, andintensifying
international
competition.

Indicators
1.
Follow-up
Status Based on
the Fourth Priority
Plan for Social
Infrastructure
Development

2.
Follow-up
Status Based on
the Basic Plan for
HousingandLiving2. Based on the Basic
Plan for Housing and
Living, we will realize
a living environment in
which
young
households,
childrearing households, andthe elderly can livewith peace of mind,
and ensure the stabilityof housing despite theneedforspecialconsiderationinsecuring housing.

(Reference) Certification System for Each Green Building
1. BELS
BELS is English acronym for Building-housing Energy-efficiency Labeling System. BELS is a building
energy efficiency performance indicator system under which third-party assessment bodies evaluate andaccredit the energy efficiency performance of new and existing buildings. The outer skin performance(performance standards and specification standards) and primary energy consumption (performancestandards and specification standards) are subject to evaluation, and the evaluation results are expressedin stars according to the achievement values of the energy efficiency standards. High evaluation requires
excellent energy-efficiency performance. In BELS, the numbers of stars are ranked from one to five,
based on BEIs (Building Energy Index). BEI is a measure of energy efficiency performance that uses
the designed primary energy consumption as the molecular weight and the standard primary energy
consumption as the denominator, and is compared with the standard value. One star is the existingenergy saving standard, two stars is the energy saving standard, and three stars are the guiding standard.

2. CASBEECASBEE is an acronym for the English name of Comprehensive Assessment System for Built
Environment Efficiency.
This is a method for evaluating and rating the environmental performance of buildings. In April 2001,
the Comprehensive Environmental Evaluation Research Committee for buildings was established as a
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joint project with industry, government, and academia with the support of the Housing Bureau of the
Ministry of Land, Infrastructure, Transport and Tourism. Since then, the committee has been
continuously conducting development and maintenance. In addition to CASBEE for Buildings and
CASBEE for Urban Development, assessment tools include CASBEE for Real Estate developed toprovide easy-to-understand environmental performance to the real estate market.
The evaluation results are divided into five grades: Rank S (Excellent), Rank A (Very Good), Rank B+(Good), Rank B- (Slightly Poor), and Rank C (Poor) (CASBEE for real estate scoring has four grades:
Rank S (Excellent), Rank A (Very Good), Rank B+ (Good), and Rank B (Satisfaction of mandatory
items)).

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Evaluation Phase 2: Management, Operation and Transparency Evaluation
JCR assigns "m1", the highest rating on JCR evaluation Phase 2: Evaluation on Management andOperation and Transparency.
Rationale: These projects have allocated the funding and implemented the business as planner
through a firmly equipped management and operation system and high transparency as described
below.

1. Appropriateness and Transparency Concerning Selection Standard and Processesof Use of Proceeds(1) JCR's Key Consideration in This Factor
In this section JCR evaluates the objectives to be achieved through sustainability bonds, the appropriateness ofproject selection criteria and processes, and the appropriateness of the process, and the appropriateness of theprocess to be properly disclosed to investors and others.

(2) Current Status of Evaluation Targets and JCR's Evaluation
a. Goals
The Investment Corporation has set the following goals for the development of the Sustainability Finance
Framework.
1.2. Purpose and Background of the Formulation of the Framework
Mitsui Fudosan Co., Ltd. (hereinafter referred to as "Mitsui Fudosan") is the sponsor of theInvestment Corporation and forms a strategic partnership in the logistics facility business. Mitsui
Fudosan has formulated a statement entitled "Link Together, Develop Together." In addition to
expanding business and enriching society, Mitsui Fudosan is creating new value by contributing toregional and urban development. In addition, the Mitsui Fudosan Group's long-term management
policy, "VISION 2025," aims to "build a sustainable society through urban development." Eachurban development will contribute to the resolution of a wide range of issues facing society,including the declining birthrate and aging population, environmental issues, safety and security inpeople's lives, and the creation of new industries. We believe that this will lead to the creation ofsocial value and, in turn, the enhancement of the corporate value of the Mitsui Fudosan Group. In
recent years, corporate responsibility for sustainability, such as environmental, social, andgovernance (ESG) issues, has grown increasingly interested. With regard to realizing thesephilosophies and objectives, the Investment Corporation has decided to formulate this framework
based on the belief that the formulation of the Sustainability Finance Framework will lead to theenhancement of unitholder value over the medium to long term and the fulfillment of its social
responsibility (CSR) as a corporate citizen.

The targets of the use of proceeds of the Bonds are those for which environmental improvement effects andsocial benefits can be expected, and JCR evaluates that the issuance of the Bonds is consistent with the
purpose of the framework.
b. Eligibility Criteria
The standards for selecting the use of proceeds of the Bonds are as described in Phase 1. JCR evaluates theselection criteria is expected to have high environmental improvement effects and social benefits.
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c.

Process
The Sustainability Promotion Committee of the Asset Management Company (a consultative body withexpertise in sustainability which is chaired by the President and the General Manager of the Investment
Management Division and the General Manager of the Finance Division as full-time members) assesses
whether projects eligible for use of proceeds are eligible for use in green finance or sustainability finance. In
addition, to procure funds for the purpose of using the property determined by the above process isdetermined by the Management Committee chaired by the President of the Asset Management Company. JCR
evaluates that the management is involved in the selection process and that the institutional decision-making
process is clear.

2. Appropriateness and Transparency of Management of the Proceeds(1) JCR's Key Consideration in This Factor
It is usually assumed that the management of proceeds methods vary by issuers. JCR confirms that the proceeds
procured through the issuance of sustainability bonds will be allocated to green and social projects, and that aninternal system are in place to easily track the status of proceeding.
JCR also emphasizes assessing whether the proceeds procured through sustainability bonds are expected to beallocated promptly for projects, as well as how to manage and manage unallocated amounts.

(2) Current Status of Evaluation Targets and JCR's Evaluation
The proceeds by the issuance of the Bonds will be used in full within one month to refinance the proceeds of theacquisitions of MFLP Kawaguchi I and MFLP Ibaraki described in Phase 1, and are not expected to be used forany other purposes.
Tracking management of the Bonds is scheduled to be tracked by a person in charge of the Finance Division of
the Asset Management Company using a special form. Such tracking management is subject to internal andaccounting audits in order to be regularly reviewed by the head of the Finance Division. The internal control
system is also properly established.
The Bonds will be used to refinance the funds for the acquisition of the above two logistics facilities within one
month after the procurement, so there will be no unallocated amounts at the time of the issuance of the Bonds. On
the other hand, the Investment Corporation will shift to portfolio management in the event that unallocatedamount arise for the redemption of sustainability finance due to, for example, the sale of projects subject to theuse of proceeds. Specifically, it will manage the outstanding balance of sustainability finance so that it does notexceed the "Sustainability Eligible Debt Amount" (total Sustainability Eligible Assets multiplied by the ratio ofinterest-bearing debt to total assets).
JCR evaluates the appropriateness and transparency of fund management by the Investment Corporation as high.

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3. Reporting(1) JCR's Key Consideration in This Factor
In this section, JCR evaluates at the time of the issuance of sustainability bonds whether the disclosure system forinvestors before and after the issuance of sustainability bonds is planned in detail and in an effective manner.

(2) Current Status of Evaluation Targets and JCR's Evaluationa.

Reporting on the status of allocation 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 ofproceeds. Based on the above, JCR evaluates that reporting on the allocation of funds is appropriate.

b. Reporting on environmental improvement effects and social benefit
The Investment Corporation plans to disclose the following items as impact reporting for the Bonds.
(1) Environmental improvement effects
Status of Green Building Certification and Certification Levels Included in “2.3. Green Eligibility
Criteria.”(2) Social benefits
Output indicators
Outcome Indicators

Number of Social Eligible Assets(1) Development of Basic Infrastructure for Regional
Revitalization- Outline of the project (target asset)- Number of facilities with seismic isolation structures(2) Access to services essential to daily life
- Number of facilities designated as evacuation sites
in the event of a disaster- Number of facilities installed by disaster vendors- Number of facilities with disaster prevention
stockpiles- Number of facilities installed at Kamado Bench- Number of facilities installed for disaster toilets andnumber of facilities installed for emergency power
supply facilities- Number of certification daycare facilities(3) Socioeconomic Advancement and Empowerment
The following items will lead to the promotion of
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employment by more local residents- Number of local residents' employment facilities inthe subject property- Number of hired facilities of local enterprises inconstruction work
ImpactContribute to communities by supporting local
communities and local economies through active
communication

with

local

residents

andmunicipalities, and by creating a comfortable living
environment for local residents

JCR evaluates that the disclosure items and frequency of disclosure related to the Bonds specified by theInvestment Corporation are appropriate.

4. Organization’s Sustainability Initiatives(1) JCR's Key Consideration in This Factor
In this section JCR evaluates whether the issuer's management positions sustainability issues as a high priority
issue or whether the issuer's policies and processes for issuing sustainability bonds and criteria for selecting
projects are clearly positioned by establishing a department specializing in sustainability issues, including thoserelated to the environment and society, or by collaborating with external organizations.

(2) Current Status of Evaluation Targets and JCR's Evaluation
The Investment Corporation has established a basic philosophy of building strategic collaborative relationships(strategic partnerships) with its sponsor, Mitsui Fudosan, in the logistics facilities business and aiming tomaximize unitholder value with logistics properties as the main investment target. Through the establishment ofstrategic partnerships, it aims to maximize unitholder value by achieving sustainable growth as well as Mitsui
Fudosan's logistics function business. This policy includes development (development of logistics facilities),management (operation and management of logistics facilities), and ownership (ownership of logistics facilities).
Mitsui Fudosan is in charge of development functions, and Mitsui Fudosan and the Asset Management Company
are in charge of management functions and the Investment Company is in charge of holding functions. In its
portfolio construction policy, the Investment Corporation will invest heavily in MFLP (advanced logistics
facilities with Mitsui Fudosan quality) centered on advanced logistics facilities developed by Mitsui Fudosan,
and all logistics properties in the current portfolio are MFLP. With regard to ESG, the Investment Corporationand the Asset Management Company share Mitsui Fudosan's policy and work in cooperation with it.
The group vision which is set forth by Mitsui Fudosan Group,, specializes in ESG and represents

that the urban development by the group is always in step with the Earth and is aiming for a society in which bothpeople and the Earth become more affluent. The group has been considering ESG initiatives as a high-level
management issue, and is actively promoting ESG management. In addition to streamlining logistics, the abovementioned MFLP also implements initiatives to contribute to local communities, such as consulting support for
tenant companies to create jobs and secure personnel, hiring local contractors in construction work, andpromoting the use of neighboring stores by facility employees.
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https://www.jcr.co.jp/en/As Mitsui Fudosan is working to strengthen and improve the ESG of the group as a high-level management issue,
the Investment Corporation and the Asset Management Company share the philosophy with Mitsui Fudosan andare implementing various measures related to ESG with the purpose of improving the value of the Investment
Corporation itself and contributing to society. Specifically, in November 2017, the Asset Management Company
established the "ESG (Environmental, Social and Governance) Policy" and, in collaboration with Mitsui Fudosan,
is implementing initiatives to address ESG issues such as "acquisition of green buildings that take theenvironment into account," "efforts for tenants and local communities," and "efforts for governance that take theinterests of unitholders into consideration." The Investment Corporation, together with the Asset Management
Company, conducts its business in accordance with these policies.
In the measure on ESG, "1. Consideration and Response to the Environment," the Asset Management Company
will always take into account the direct or indirect impact of its investment management operations on theenvironment and take measures to improve environmental efficiency and reduce environmental impact. In
addition, in "2. Consideration and Response to Society," the Asset Management Company aims to fulfill its
required social responsibilities by building good relationships with it, the Investment Corporation, and various
stakeholders surrounding the real estate in which the Investment Corporation invests, and striving to actively
collaborate and cooperate in its business activities. JCR evaluates the Investment Corporation's clear ESG goals
and high transparency.

Mitsui Fudosan Logistics REIT Management ESG Policy (excerpt)
1. Consideration and response to the environment(1)

Energy saving and the reduction of CO2 emissions（2）Conservation of the water resources and promotion of resource saving and waste reduction（3）Utilization of green building certification system, etc.
2. Consideration and Response to Society（1） Respect for human rights（2）Efforts for better amenity and safety and security（3） Consideration to local communities（4） Approach to officers and employees（5） Sustainable procurement

These initiatives that contribute to the environment and society are to be implemented in collaboration with theexpert departments related to the logistics facility business of the Asset Management Company and the sponsor,
Mitsui Fudosan. In addition, in order to obtain GRESB and other environmental-related certifications, theInvestment Corporation has asked external expert companies to provide consulting services, and collaborates
with external specialists to conduct business.
The Asset Management Company established the Sustainability Promotion Committee in 2020. In the past, theESG topics were discussed in the management committee, which was the supreme organization, as there was nocommittee specializing in ESG. However, the Sustainability Promotion Committee was established in an attempt
to visualize ESG-related initiatives based on a high level of awareness by the management of the AssetManagement Company regarding sustainability for the future. At the Asset Management Company, various ESGrelated businesses are executed by the Investment Management Division (Investment Planning Team andInvestment Management Team) and the Finance Division (Financial Planning Team) mainly through thecommittee.
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In the Investment Corporation, the Sustainability Promotion Committee of the Asset Management Company isclearly involved as an organization in the selection of projects, for example, by making decisions on theevaluation and selection of eligibility criteria as a specialized department.
JCR considers sustainability issues of these organizations as high priority. JCR also evaluates that departmentswith expert knowledge are clearly involved as organizations in the procurement policies and processes forsustainability finance and the selection of projects.

■Evaluation Result
Based on JCR Sustainability Finance Evaluation Methodology, JCR assigns “gs1” for the "Greenness and Social
Beneficial Impacts Evaluation (Uses of proceeds)" and “m1” for the "Management, Operation and Transparency
Evaluation." As a result, JCR assigns “SU 1” on the overall "JCR Sustainability Bond Evaluation." In addition, theBonds are considered to meet the standards for the items required in the Green Bond Principles, the Social Bond
Principles, the Sustainability Bond Guidelines, and the Ministry of the Environment's Green Bond Guidelines.

[JCR Sustainability Finance Evaluation Matrix]
Management, Operation and Transparency Evaluation

Greenness and Social Beneficial
Impacts Evaluation

m1

m2

m3

m4

m5

gs1

SU 1

SU 2

SU 3

SU 4

SU 5

gs2

SU 2

SU 2

SU 3

SU 4

SU 5

gs3

SU 3

SU 3

SU 4

SU 5

Not qualified

gs4

SU 4

SU 4

SU 5

Not qualified

Not qualified

gs5

SU 5

SU 5

Not qualified

Not qualified

Not qualified■ Scope of Evaluation
Issuer: Mitsui Fudosan Logistics Park Inc. (Security code: 3471)
Assignment
Issue
AmountSubject

The First Unsecured
Investment Corporation
Bonds(Sustainability
Bonds)

JPY 3
billionIssue Date

February 12, 2021

Redemption Date

February 12, 2031

Interest Rate

Evaluation

0.500%JCR Sustainability Bond Evaluation: SU1
Greenness and Social Beneficial Impacts
Evaluation : gs1
Management, Operation and Transparency
Evaluation : m1

(Responsible analysts for this evaluation) Atsuko Kajiwara, Nobuyasu Matsuda and Rieko Kikuchi

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Important explanation of sustainability bond Evaluation
1. Assumptions, Significance, and Limitations of JCR Sustainability bond Evaluation
JCR Sustainability Bond Evaluation, which is granted and provided by Japan Credit Rating Agency, Ltd. (JCR), is acomprehensive opinion of JCR's current status on the extent to which the proceeds procured through the issuance of the
Sustainability Bond to be evaluated will be appropriated for Green Projects and Social Projects as defined by JCR, as well as
the extent to which management, operation and transparency initiatives related to the use of the proceeds of the Sustainability
Bond are undertaken. JCR Sustainability Bond Evaluation does not fully represent the appropriation of the proceeds procured
through the Sustainability Bond and the extent to which management, operation and transparency efforts are undertaken in
relation to the use of the proceeds.
JCR Sustainability Bond Evaluation evaluates plans and conditions, such as the appropriation of proceeds at the time ofissuance or at the time of issuance of the Sustainability Bond, and does not guarantee the appropriation of proceeds in the future.
In addition, JCR Sustainability Bond Evaluation does not prove the effectiveness of the Sustainability Bond on environmental
and social issues, and does not assume responsibility for its effects on environmental and social issues. In principle, JCR does
not directly measure the impact of proceeds procured through the issuance of sustainability bonds on environmental and social
issues, although JCR confirms that they are quantitatively and qualitatively measured by the issuer or a third party requested by
the issuer.
2. Methods used in the conduct of this evaluation
The methods used in this evaluation are listed on JCR website (Sustainability finance and ESG in https://www.jcr.co.jp/en)) as
JCR Sustainable Finance Evaluation Method.
3. Relationship with Acts Related to Credit Rating Business
JCR Sustainability bond Evaluation is determined and provided by JCR as a related business, which is different from theactivities related to the credit rating business.
4. Relationship with Credit Ratings
The Evaluation differs from the Credit Rating and does not promise to provide or make available for inspection a predetermined
Credit Rating.
5. Third-Party Evaluation of JCR Sustainability bond
There is no capital or personnel relationship between the subject of this evaluation and JCR that may give rise to conflicts ofinterest.
■Disclaimers

The information contained in this document has been obtained by JCR from the Issuer and from accurate and reliable sources. Provided, however, that suchinformation may be erroneous due to human, mechanical or other reasons. Accordingly, JCR makes no representation or warranty, express or implied, as to theaccuracy, results, accuracy, timeliness, completeness, marketability, or fitness for a particular purpose of such information, and JCR assumes no responsibility forany error, omission, or result of using such information. In no event shall JCR be liable for any special, indirect, incidental or consequential damages of any kind,including opportunity loss, monetary loss, which may arise from any use of such information, whether contractual, tort, negligence or other cause of liability, andwhether or not such damages are foreseeable or unforeseeable. JCR Sustainability Bond Evaluation does not express any opinion on the various risks (credit risk,
price volatility risk, market liquidity risk, price volatility risk, etc.) involved in the Sustainability Bond subject to assessment. JCR Sustainability Bond Evaluation is
a comprehensive statement of opinion at the present time of JCR and is not a statement of fact and does not make any recommendations regarding risk judgment or
the decision to purchase, sell or hold individual bonds, commercial paper, etc. JCR Sustainability Bond Evaluations may be changed, suspended, or withdrawn due
to changes in information, lack of information, or other reasons. All rights to this document, including data from the JCR Sustainability Bond Evaluation, are held by
JCR. Reproduction, adaptation, modification or alteration of this document, in whole or in part, including data from the JCR Sustainability Bond Evaluation, without
the permission of JCR is prohibited.

■Glossary

JCR Sustainability Bond Evaluation evaluates the extent to which the proceeds procured from the issuance of the Sustainability Bond are appropriated for Green
Projects or Social Projects as defined by JCR, as well as the level of management, operation, and transparency initiatives related to the use of proceeds for the
relevant Sustainability Bond. Evaluations are performed on a five-point scale, from the top to the top, using SU1, SU2, SU3, SU4, and SU5 valuation symbols.

■Sustainable finance of registration as an external assessor of sustainable finance・ Ministry of the Environment's external green bond reviewer registration
・ ICMA (registered as an observer with the International Capital Markets Association)■Status of registration as a credit rating agency, etc.

・ Credit Rating Agency: the Commissioner of the Financial Services Agency (Rating) No.1
・ EU Certified Credit Rating Agency
・ NRSRO: JCR has registered with the following four of the five credit rating classes of the Securities and Exchange Commission's NRSRO(Nationally RecognizedStatistical Rating Organization. (1)Financial institutions, broker dealers, (2) insurance companies, (3) general business corporations, and (4) government and local
governments. If the disclosure is subject to Section 17g-7(a) of the Securities and Exchange Commission Rule, such disclosure is attached to the news releases
posted on JCR website (https://www.jcr.co.jp/en/).

■ For further information, contact

Information Service Dept. TEL: 03-3544-7013 FAX: 03-3544-7026

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

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