Securities Code 3487

Financial Results Briefing for the 11th Fiscal Period
Ended December 2021 (July 1, 2021 to December 31, 2021)

LogiSquare Osaka Katano
Located Copyrightin a suitable(C)logistics
in inland Osaka,
near
the Rights
boarder between Osaka and Kyoto Prefectures. Located approximately 0.8 km from the Katano
2022 area
CRE
REIT, accessInc. All
Minami IC on the Daini-Keihan
RoadLogistics
with excellent
to major Reserved.
roads. Located in an industrial area and can be operated 24 hours a day.

February 17, 2022
CRE REIT Advisers, Inc.

Contents
Contents

GlossaryTerm

1. Financial Results and Forecasts
2. Growth Strategies
3. Characteristics of CRE Logistics REIT, Inc.

4. Market Environment
5. Appendix

2
12
25

36
44

Definition

Appraisal value

The appraisal value or an investigated value as of the end of the period is stated based on theCertificate of Incorporation of the Investment Corporation and the Regulation on Accountings ofInvestment Corporations (Cabinet Office Order No.47 of 2006 including subsequent revisions)

Unrealized gains(Appraisal value) - (Book value) as of the end of the period

LTV(Outstanding balance of interest-bearing debt) / (Total Assets)

LTV based on
appraisal value(Outstanding balance of interest-bearing debt) / (Total assets + Unrealized gains)

NAV

Net assets + Unrealized gains - Total amount of distributions

NAV per unit

(Net assets + Unrealized gains - Total amount of distributions) / Total number of investment units
outstanding

Acquisition price

Acquisition price is the purchase agreement price for each of the trust beneficiary rights stated in
the sales agreement and does not include national and local consumption taxes or salescommission and other expenses that are incurred in the acquisition.

NOI yield

Ratio of actual NOI of the portfolio assets to their acquisition priceAppraisal NOI yield

Ratio of the appraisal NOI of each current asset (based on the relevant real estate appraisal reportwith valuation dated as of December 31, 2021) to the acquisition price of each current asset

CRE

CRE, INC.

CRE Group

CRE, INC. and its subsidiaries and affiliates●

This material is not a disclosure material under the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations or the
Securities Listing Regulations of the Tokyo Stock Exchange.

●

As of the date of this material, the auditing procedures for financial statements pursuant to the Financial Instruments and Exchange Act have not been completed.

●

The purpose of this material is to provide information and not to offer, solicit the purchase of or sell certain products. When you make an investment, please do so
at your own discretion and risk.

●

The market price of investment securities of the Investment Corporation will be affected by the demand and supply of investors at an exchange and will fluctuate
under the influence of the interest rate environment, economic conditions, the real estate market conditions and other factors surrounding the market.
Accordingly, the investment securities may possibly not be sold at a higher price than the acquisition price, and investors could suffer a loss as a result.

●

The investment securities of the Investment Corporation need to be purchased and sold through a securities company with which you undertake business. At thattime, please read the contents of the document provided before concluding the contract (or a prospectus) carefully.

●

While this material contains forward-looking statements and results forecasts, these statements do not guarantee the future results and financial conditions of theInvestment Corporation.

●

Unless otherwise noted, in this material, monetary amounts are rounded down to the nearest indicated unit, and areas, numbers of years and ratios are rounded
off to the nearest indicated unit. Any average or ratio pertaining to assets is the weighted average based on the acquisition price, unless otherwise noted.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

11. Financial Results and Forecasts

LogiSquare Osaka Katano
Good location to secure employment, within walking distance of Hoshida Station, a rapid train stop on the JR Gakkentoshi Line, which is about 1 km away (about a 13-minute walk), and a 2-minute walkfrom the Hoshidakita
stop
Copyright5-chome(C) 2022bus
CRE
Logistics REIT, Inc. All Rights Reserved.

2

1. Financial Results and Forecasts

Summary

External
GrowthInternal
Growth• Due to the 5th public offering in September 2021, the distribution per unit for the fiscal period ended
December 2021 resulted at 3,524 yen, the highest ever for CRE REIT.

• All tenant whose contract expire in the fiscal period ending December 2022 and June 2023 renewedwith rent increase.

• All tenants whose contracts expire by December 2023 have been renewed.
• Continuing to reduce through each public offering, LTV has reached to 44.0%, the lowest ever for CRE REIT.

Financial
Management• Lenders increased from 12 (end of June 2021) to 16 (end of January 2022), and the diversification of lenders
has progressed.

• Newly issued 10-year Green bond. (November 2021)• Newly acquired A (stable) rating from JCR. (August 2021)• Received 3 Stars and Green Star in the GRESB Real Estate Assessment, and the highest A Level for the
GRESB Public Disclosure.

ESG• Over 80% of the properties produce solar power, and 80% of the total consumption is covered

with renewable energy (from April to September 2021).
• Green finance for both equity and debt in the 5th public offering.
Delivered all prospectuses electronically.

Other• Included in the FTSE EPRA Nareit Global Real Estate Index Series (December 2021)

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

3

1. Financial Results and Forecasts

Summary of the Fifth Public Offering in September 2021
• Financed through green equity offerings and green loans.
• Allocated all new investment units only to domestic and overseas institutional investors.
• Delivered all prospectuses electronically in consideration of the environment.

New Initiatives

Increase in the ratio of institutional investors
9.4%
5.3%
2.5%

12.3%
6.2%
3.1%

16.8%

58.2%

8,000

Trading turnover (left axis)

150,000

Payment

Market capitalization (right axis)

5th PO
Other domestic
corporations

Ratio ofinstitutional investors
82.8%

Ratio ofinstitutional investors
78.4%

61.6%

Individuals/others

Market capitalization increase and investment
unit liquidity improve

Securities companies

120,000

6,000

90,0004,000
60,000Financial institutions
2,000

24.6%

10th FP(2021/6)

30,000Overseas investors

11th FP(2021/12)

0

2020(Million yen) 1/1

7/1

2021
1/6

0

7/16

2022
1/28 (Million yen)

Summary of the fifth public offering and the acquisition of the property

64,550 units

Number of new
investment
units issued(12.9% of total issued and outstanding
investment units)

Total issue value

13,147 million yen

Increase inborrowings

9,500 million yen
Reg. S only

Form of offering(The transaction will be documented by aJapanese language prospectus. English one will
not be prepared.)

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

O‐4 LogiSquare Osaka Katano

Acquisition price

22,370 million yen

Appraisal NOI yield

4.4 %Property age

1.0 years

Distance to aninterchange

0.8 km4

1. Financial Results and Forecasts

Since Listing in February 2018, Steady Growth through Five Public Offerings
Distributions per unit (DPU)

4,000

3,351
3,000

NAV per unit

Annual rate +7.3%

3,086
2,952 3,012

3,392 3,398

170,000

3,524 3,529 3,547
3,504

(Yen)

158,006

3,529
140,000

2,585

114,936 117,317 118,187

2,000

1,000

Annual rate +9.5%

4th FP

5th FP

6th FP

7th FP

8th FP

Dated September 2, 2021

9th FP

10th FP

11th FP

12th FP
Forecast

80,00013th FP
Forecast(Yen)+10.3%

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

Asset size

x

-3.7%

2.8

134.6

150

47.7% 47.9% 47.7%

112.3
45.9%

46%

45.0% 44.8%

Dated September 2, 2021

44.3% 44.3%-0.2%

5th FP

6th FP

7th FP

73.6
47.7

47.7

47.7

(Billion yen) 4th FP

5th FP

6th FP50

54.1

44.0% 43.9% 44.0%

Dated February 17, 2022

4th FP

91.5

100

Result44%

11th FP

Annual rate +34.5%

49.3%

48%

10th FP

Dated Feburary 17, 2022

LTV

42%

129,286

110,000

Result50%

122,212143,278
137,499

8th FP

9th FP

10th FP

11th FP

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

12th FP
Forecast

13th FP
Forecast

0

7th FP

8th FP

9th FP

10th FP

11th FP5

1. Financial Results and Forecasts

Realize External Growth that Contributes to Increases in DPU
Increase stabilized DPU by an average annual growth rate of 7.8% through public offering
for five consecutive periods.
Stabilized DPU+20.6% Annual rate +7.8%

4,000

3,547
3,500

3,000

372

3,160

3,029

2,940
+3.0%

323

+4.3%

365

3,374

3,258
+3.1%

326

+3.6%

338

342

+5.1%

2,500

2,000

2,568

2,837

2,664

3,036

2,932

3,205

Stabilized EPU+24.8% Annual rate +9.3%

1,500

(Yen)

7th FP

8th FPAt initialstabilizedlevel

At stabilized
level after
the 1st PO

At stabilized
level after
the 2nd PO

At stabilized
level after
the 3rd PO

At stabilized
level after
the 4th PO

the 7th FP(ended December 31, 2019)
Initial Forecast

the 8th FP(ended June 30, 2020)
Forecast at the1st PO

Forecast at the 2nd PO
based on the 9th FP(ended December 31, 2020)

Forecast at the 3rd PO
based on the 10th FP(ended June 30, 2021)

Forecast at the 4th PO
based on the 11th FP(ending December 31, 2021)

Earnings per unit (EPU)

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

At stabilized
level after
the 5th PO
Forecast at the 5th PO
based on the 12th FP(ending June 30, 2022)

Surplus distribution per unit

6

1. Financial Results and Forecasts

Investment Unit Price has Increased through the Past Five External Growth etc.
Trend in investment unit price (closing price) (as of February 15, 2022)
230,000

9.0%

NAV per unit
Tokyo Stock Exchange REIT Index (1)Investment unit price of CRE REIT
Distribution yield (right axis)

210,000

190,000

8.0%

7.0%

170,000

6.0%

150,000

5.0%

130,000

4.0%

110,000

3.0%

90,0002.0%

70,0002018(Yen) 2/7

5/9

8/2

10/30

2019
1/31

5/7

7/31

10/30

June 27, 2019
Announcementof the 1st PO

February 7, 2018
Listing
August 2018 Introduced a cumulative investment unit investment system.

Number ofunits acquired

Tadahide Kameyama, President of CRE

500 units

Tsuyoshi Ito, President of Asset Manager

1,000 units

4/28

January 7, 2020
Announcementof the 2nd PO

7/29

10/27

June 29, 2020
Announcementof the 3rd PO

2021
1/26

4/22

7/21

January 4, 2021
Announcementof the 4th PO

10/20

2022
1/19

1.0%

September 2, 2021
Announcement of
the 5th PO

March 31, 2020 Newly acquired A- rating from R&I

July 17, 2019 The presidents of the sponsor and the Asset Manager acquired investment units.
Title and name

2020
1/30

May 29, 2020 Included in the MSCI Global Small Cap Index .
September 8, 2020 Issued the 1st green bond.
September 18, 2020 Included in the FTSE Global Equity Index Series.

February-April, 2021 Three securities companies started analyst coverage.
April 21, 2021 R&I changed rating outlook from A- (stable) to A- (positive) .
August 3, 2021 Newly acquired A(stable) rating from JCR .

September 27, 2019 The revision of asset management fees was resolved
at the General Meeting of Unitholders.

October 15, 2021 Participated in GRESB for the first time and received 3 Stars.
December 20, 2021 Included in FTSE EPRA Nareit Global Real Estate Index Series.

1 : Trends in the closing price of the Tokyo Stock Exchange REIT Index at Tokyo Stock Exchange, Inc. (hereinafter “TSE”) show trends in relativized figures on the assumption that the closing price (1,664.83pt) of the TSE REIT Index on the date of the listing of theInvestment Corporation (February 7, 2018) is the same as the issue price (110,000 yen per unit) of the Investment Corporation at the time of listing.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

7

1. Financial Results and Forecasts

Highlights on the 11th FP – Achieved Record High Results through External GrowthDistributions per unit
11th FP Results(2021/12)

NAV per unit
3,524 yen(vs forecast:+20 yen, +0.6%)

11th FP Results(2021/12)

Portfolio
158,006 yen(vs previous FP +14,727 yen, +10.3%)

Portfolio size

20 properties 134 billion yen

12th FP Forecasts

3,529 yenOccupancy rate

100.0%

13th FP Forecasts

3,547 yen

Average remaining
lease term

5.0 years

Average property age

4.2 years(2022/6)(2022/12)

Asset

Debt
11th FP(2021/12)

Compared to10th FP

Equity11th FP(2021/12)

Compared to10th FP

11th FP(2021/12)

Compared to10th FPAppraisal value

148,560 million yen +26,520 million yen

Interest-bearing
debt

Unrealized gains

15,881 million yen+4,609 million yen

LTV

44.0%

-0.9%

NAV

Unrealized gains ratio

12.0%

+1.8%

LTV based on
appraisal value

39.5%

-1.4%

NAV per unit

158,006 yen+14,727 yen

NOI yield

4.6%

-0.2%

Ratio of fixedinterest debt

100.0%+1.9%

Total number ofinvestment units
outstanding

564,700 units+64,550 units

NOI yield after
depreciation

3.7%

-0.1%

Ratio of long-term
debt

100.0%-%

Repair expense

3 million yen-2 million yen

Average borrowinginterest rate

0.577%+0.026%

Capital expenditure

5 million yen-13 million yen

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

61,869 million yen + 9,200 million yen

Net assets per unit

133,406 yen+9,267 yen

89,226 million yen +17,565 million yen

81. Financial Results and Forecasts

Results for the 11th Fiscal Period
Unit: million yen

10th FP(2021/6)
Results (A)11th FP(2021/12)
Forecasts (B)11th FP(2021/12)
Results (C)Operating revenues

3,159

3,573

3,595

+ 435

+ 21

Leasing expenses

474

508

521

+ 47

+ 13

2,685

3,065

3,073

+ 388

Depreciation

562

616

615

+ 53

-0

Net leasing revenues

2,123

2,449

2,458

1

+ 335

+8

322

371

369

2

+ 47

-1

2 General and administrative expenses, etc.

+ 287

+ 10

• Increase in asset management fees +37• Increase in asset custody and administrative
service fees +3• Increase in other fees +5(excluding depreciation)

NOI(NOI - Dep.)

General and administrative
expenses, etc.
Operating income

vs. Previous FP vs. Forecast(C) - (A)

5

+8

1,800

2,077

2,088

Non-operating income

0

11

11

3

+ 11

+0

Non-operating expenses

278

300

300

4

+ 22

+0

Ordinary income

1,522

1,788

1,799

+ 277

+ 11

Net income

1,521

1,787

1,798

+ 277

+ 11

Distributions per unit (yen)

3,398

3,504

3,524

+ 126

+ 20

Earnings per unit (yen)

3,042

3,166

3,186

+ 144

+ 20

356

338

338

- 18

-

OPD per unit (yen)Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Major factors for difference(C) - (B)<vs. previous period>
1 Net leasing revenues +335
• Increase due to 1 property acquired in the
11th FP +274
• Full-period contribution of 3 properties
acquired in the 10th FP +51• Upward revision of rents +3• Decrease in Property taxes and City planningtaxes +3+47

3 Non-operating income +11• Refund of Property taxes and City planningtaxes +11
4 Non-operating expenses +22• Increase in loan-related expenses and interest
expenses +24• Decrease in amortization of organization
expenses -5<vs. forecast>
5 NOI +8
• Decrease in repair expenses +591. Financial Results and Forecasts

Forecasts for the 12th and 13th Fiscal Periods
Unit: million yen

11th FP(2021/12)
Results (A)12th FP(2022/6)
Forecasts (B)Difference

13th FP(2022/12)
Forecasts (C)Difference

Operating revenues

3,595

3,875

+ 280

3,884

+9

Leasing expenses

521

724

+ 202

725

+1

3,073

3,151

+ 77

3,159

+8

Depreciation

615

642

+ 27

644

+1

Net leasing revenues

2,458

2,508

1

+ 50

369

412

2

2,088

2,096

Non-operating income

11-

Non-operating expenses

300

294

Ordinary income

1,799

Net income

1,798(excluding depreciation)

NOI(NOI - Dep.)

General and administrative
expenses, etc.

Operating income(B) - (A)(C) - (B)

2,514

5

+6

+ 42

422

6

+ 10

+7

2,092

-3

3

- 11

-

-

4

-5

281

1,801

+1

1,810

+9

1,800

+1

1,809

+9

7

- 13

Distributions per unit (yen)

3,524

3,529

+5

3,547

+ 18

Earnings per unit (yen)

3,186

3,188

+2

3,205

+ 17

338

341

+3

342

+1

OPD per unit (yen)Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Major factors for difference<12th FP>
1 Net leasing revenues +50• Full-period contribution of 1 property acquiredin the 11th FP +201
• Start expensing of Property taxes and City
planning taxes on 4 properties acquired in the10th and the 11th FP -126
• Increase in repair expenses -22

2 General and administrative expenses, etc.
+42
• Increase in asset management fees +28• Increase in other fees +10

3 Non-operating income -11• Non-occurrence of refund of Property taxes andCity planning taxes -11

4 Non-operating expenses -5• Non-occurrence of expenses related to issue ofinvestment units for the 5th PO -15• Increase in costs for acquisition ofenvironmental certification, etc. +4• Increase in loan-related expenses and interest
expenses +3<13th FP>
5 Net leasing revenues +6• Decrease in repair expenses +5

6 General and administrative expenses, etc.
+10
• Increase in asset management fees +4

7 Non-operating expenses -13• Decrease in loan-related expenses and interest
expenses -5• Decrease in costs for acquisition ofenvironmental certification, etc. -4

101. Financial Results and Forecasts

Comparison between Each Period

4,000

3,524

3,504
3,500

338

Decrease in repair
expenses, non-useof reserve funds

338

Increase in net
leasingrevenues

3,547

3,529
Decrease in
non-operating
incomeDecrease in
non-operating
expenses

-20

+10

-75

+88

+20

3,000

Increase ingeneral andadministrative
expenses, etc.

341

Increase in net
leasingrevenues

Increase ingeneral andadministrative
expenses, etc.

Decrease in
non-operating
expenses

+11

-18

+23

342

2,500

2,000

3,166

3,186

3,188

3,205

11th FP

11th FPFP
11th
Ended Dec. 2021
Results
Results

12th
12th FPFP
Ending June 2022
Forecasts
Forecasts

13th
13th FPFP
Ending Dec. 2022
Forecasts
Forecasts

1,500

1,000

11th FP(yen) Ended
Dec. 2021
Forecasts
Forecasts

Earnings per unit (EPU)

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

OPD per unit11

2. Growth Strategies

LogiSquare Osaka Katano
A four-story seismic control structure with double rampways and central vehicle flow line on the first to third floors. In order to enhance safety, the vehicle flow line is designed for one-way. And there are
two rampways,
one for (C)goingup andfor going
down.
Copyright
2022
CREoneLogistics
REIT,
Inc. All Rights Reserved.

12

2. Growth Strategies

Rich Pipeline Enabling Future External Growth
Aiming for continuous growth in distributions with a view to acquiring properties using free cash

11 properties / Total floor area 497,439 m2

Pipeline(1)(2)

LogiSquare Sayama
Hidaka (20%)(1) May 2020(2) 73,728.44 m2(14,745.69 m2)(3) Hanno-shi, Saitama

LogiSquare Shiroi(1) December 2022
(2) 30,808 m2(3) Shiroi-shi, Chiba

LogiSquare Hirakata(1) January 2023
(2) 45,842 m2(3) Hirakata-shi, Osaka

LogiSquare Atsugi I(1) March 2023
(2) 18,200 m2(3) Aikawa-machi,
Kanagawa

LogiSquare Matsudo(1) Around spring 2023
(2) 15,654 m2(3) Matsudo-shi, Chiba

LogiSquare Fukuoka Ogori(1) Around summer 2023
(2) 18,000-24,000 m2(3) Ogori-shi, Fukuoka

new!

LogiSquare Ichinomiya(1) Around autumn 2023
(2) 63,000 m2(3) Ichinomiya-shi, Aichi

Under development

LogiSquare Atsugi II(1) Around summer 2024
(2) 18,000-20,000 m2(3) Atsugi-shi, Kanagawa

Under development

AC

B(1)Completion date (planned) (2)Total floor area (planned) (3)Location

LogiSquare Fujimino A,B,C(1) A: 2023 (2) A:114,256 m2
B: 2024
B:115,040 m2
C: 2024
C: 43,893 m2(3) Fujimino-shi, Saitama

Properties with exclusive negotiation right

1. As of February 17, 2022, CRE REIT has not engaged in specific negotiations with the CRE Group companies regarding the pipeline nor does it have any plan to acquire from the pipeline at the present time or guarantee any future acquisition from the pipeline.
2. The total floor area of ​the pipeline is based on the lower anticipated total floor area for LogiSquare Fukuoka Ogori and LogiSquare Atsugi II, and the quasi-co-ownership ratio (20%) for LogiSquare Sayama Hidaka (20%) .

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

13

2. Growth Strategies

Maximize Distributions by Using Free Cash
Approach to the use of free cash

Effects by acquiring properties only with free cash
Estimate of an increase in distribution per unit (yen)NOI yield

Consider the following choices, in addition touse for capital expenditure.

1. Appropriation of some funds toacquisition properties at the time of
capital increase
Depreciation
million yen
per period(1)

3. Repayment of borrowings

Conduct ongoing cash surplus distribution
equivalent to 30% of depreciation.

1. 12th FP (2022/6) Forecasts.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Acquisition price (million yen)642

2. Acquisition of properties (quasi coownership interests, etc.) with free
cash as source

4.3%

4.4%

4.5%

2,500

70

72

74

3,000

88

90

93

3,500

106

109

111

1. Calculated on the assumption that the total number of investment issued units is 564,700.

14

2. Growth Strategies

CRE REIT’s Approach to Property Acquisitions/CRE’s Approach to Property Sales and Development
CRE REIT’s Approach to Property Acquisitions• Acquisition of property without dilution of distribution per unit/NAV per unit is a prerequisite for the improvement of unitholder value.
During all from the first to the fifth public offering, CRE REIT acquired and will acquire properties at an appraisal NOI yield above the implied cap rate and upheld the above
prerequisite. CRE REIT plans to maintain this approach moving forward.

• Achieve flexible external growth, with considertion for investment unit price, including utilizing the bridge function.

CRE REIT acquired three properties from leasing company at IPO and one property from leasing company at first public offering. The timing of property sales by the sponsor andacquisitions by CRE REIT can be adjusted.

• Acquisition of medium-sized properties and acquisition of quasi co-ownership interests using free cash is also possible.

Availability to investment in the properties with total floor area of 5,000m2 or larger allows the acquisition of properties ranging from several hundred million yen to several billion
yen is using retained free cash from accumulated depreciation.

CRE’s Approach to Property Sales and Development

Stable operation of CRE REIT over medium and long term is
CRE’s top priority
CRE’s Positioning of Asset Management Business

The Asset Manager is involved from the time ofproperty acquisition to implement the development with discipline
Leasing
Development• Grow asset management business into second pillar of recurring
revenue model.
Asset Management• Continuously earn asset management fees and property
management fees by selling properties developed by CRE to CRE
REIT.

Construction
Management
Leasing

Source: Prepared by the Asset Manager based on the Long-term Management Policy (September 12,2016) of CRE, Inc.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Rent assessment (scoring of location, roadaccess, etc.)
Formulation of plan incorporating
development risks
Sharing of the level of cap rates onacquisitions in REIT market

Appropriate cost control
Attraction of tenants

Generation of higher profits than budgeted15

2. Growth Strategies

Occupancy Rate is Expected to Remain at 100% until FP 2023/12
The lease contracts for the expiration of FP ending in 2023/6 have already been renewed
Renewed
100%

60.5%

60%

Diversification of lease terms (based on leased area)

Fixed master
lease
contractwith CRE

100.0%FP ending in 2024/6

FP ending in 2024/12

100.0%

40%

53.8%

20%

reservation contract

46.2%

80%

39.5%

Upward revisionof rent
No change0%

FP ending in 2022/6

FP ending in 2022/12

FP ending in 2023/6

20%

15%

12.6%

12.1%

10%

7.4%

5%

7.2%

5.2%

7.5%

6.8%

6.7%

5.2%
3.8%
1.3%

3.2%

2.9%
0%

3.1%

2.0%

3.5%

3.1%

1.7%

FP 2041/12

FP 2041/6

FP 2040/12

FP 2040/6

FP 2039/12

FP 2039/6

FP 2038/12

FP 2038/6

FP 2037/12

FP 2037/6

FP 2036/12

FP 2036/6

FP 2035/12

FP 2035/6

FP 2034/12

FP 2034/6

FP 2033/12

FP 2033/6

FP 2032/12

FP 2032/6

FP 2031/12

FP 2031/6

FP 2030/12

FP 2030/6

FP 2029/12

FP 2029/6

FP 2028/12

FP 2028/6

FP 2027/12

FP 2027/6

FP 2026/12

FP 2026/6

FP 2025/12

FP 2025/6

FP 2024/12

FP 2024/6

FP 2023/12

FP 2023/6

FP 2022/12

FP 2022/6

FP 2021/12

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

2.1% 2.5%

16

2. Growth Strategies

Stable Financial Management(1) Diversification of Financing Methods
Newly issued 10-year bond to prolong the debt term

Diversify interest-bearing debt sources
by inviting new lenders
new!

The Yamanashi Chuo Bank, Ltd.
0.7%
new!
The Shizuoka Bank, Ltd. 0.7%
The Bank of Toyama, Ltd. 0.8%
new! The Yamaguchi Bank, Ltd. 0.9%
JAPAN POST BANK Co., Ltd. 1.1%
The Hyakujushi Bank, Ltd. 1.5%
The Bank of Fukuoka, Ltd. 2.5%

Green bond 6.5%
Sumitomo Mitsui
Banking
Corporation
21.1%

Aozora Bank, Ltd. 2.6%
Shinsei Bank, Limited
3.1%
Sumitomo Mitsui
Trust Bank, Limited
5.9%

Total

Amount ofissueInterest rate Date of issue(million yen)

Duration

1st investment
corporation bond(Green bond)

2,000

0.530%

September
8, 2020

5 years

2nd investment
corporation bond(Green bond)

2,000

0.720%

November26, 2021

10 years

61,869million yen

16 lenders

MUFG Bank,
Ltd. 6.6%

Credit rating
Mizuho Bank,
Ltd. 18.0%

The Nishi-Nippon
City Bank, Ltd. 7.0%
Resona Bank,
Limited 8.0%

Development
Bank of Japan Inc.
12.9%

Note: As of January 31, 2022

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Rating and Investment
Information, Inc.
(R&I)

A- (Positive)

Japan Credit Rating Agency, Ltd.
(JCR)

A (Stable)

Announced on April 21, 2021

Announced on August 3, 2021

17

2. Growth Strategies

Stable Financial Management(2) Promote Diversification of Maturity and Prolong the Debt Term
Promote diversification of maturity (as of January 31, 2022)
Green bond

10,000Existing loans

Refinancing on January 31, 2022

Green loan

Refinanced on January 31, 2022
8,000

7,100

6,500

6,550

7,000

5,600

6,000

3,500

3,680

4,000

2,400
2,000

3,680

2,900

4,500

3,105

4,000

3,400

4,274

3,680
2,000

3,680

2,550

2,000

3,500

0
(million yen) 2022/6

2022/122023/62023/122024/62024/122025/62025/122026/62026/122027/62027/122028/6

Prolong the debt term

2029/62029/122030/62030/122031/62031/12

Approach to interest-bearing debt

11th FP(2021/12)

Interest-bearing debt

2028/1261,869 million yen

After the refinance(January 31, 2022)

Difference

61,869 million yen― million yen

44.0 %―%

LTV

44.0 %

Ratio of fixed interest
debt

100.0 %

94.1 %- 5.9 %

Ratio of long-term debt

100.0 %

100.0 %―%

Average interest rate

0.577 %

0.581 %

+ 0.003 %Average remaining timeof interest-bearing debt

3.8 years

4.1 years+ 0.3 years

13th FP
Forecast

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

• Set the LTV level of CRE REIT at around 45%,
and work to reduce it according to themarket environment.
• Conduct financial management with focus
on long-term stability by taking out longterm loans at a fixed interest rate.

• Going forward, continue to actively
promote procurement with green qualifying
debt.

18

2. Growth Strategies

Promoting ESG Efforts
Participate in GRESB for the first time

Promote green financeStatus of green loans and green bonds (as of January 31, 2022)

GRESB Real Estate Assessment

160,000
140,000

Green Star

3 Stars

6,378

120,000
100,000GRESB Public DisclosureA

80,000

Green qualifying
assets60,000128,308(95.3%)

40,000

LTV 44.0%(2021/12 Result)

20,000Aiming to raise the rating in GRESB in 2022

Upper limit ofgreen qualifying
debt

56,402

Room toincrease green
qualifying debt

36,948Financed green
qualifying debt

19,4540(million yen)

Upper limit of green Room to increase
qualifying debt
green qualifying debt

Note: ”Room to increase green qualifying debt ”=Acquisition price of properties that fall under the category of green
qualifying assets x LTV (2021/12 Result) -green bond issued and Green loan amount as of the end of January 2022

Supported the TCFD recommendations andpromoting company-wide initiatives

Aiming to disclose qualitative scenario analysis, etc.
by the end of 2022.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Status of green equity offerings

5th public offering

Payment dateAmount ofraised funds(million yen)

September 15,
2021

13,14719

2. Growth Strategies

Promoting ESG Efforts – Environment (1)95.3% of portfolio are composed of green qualifying assets
Others
4.7%

100%

14.5%

11.3%

4.7%

85.5%

88.7%

95.3%

BELS

CASBEE

Sandwich
panelsInclude green lease clauses in allcontracts re-signed in 2021
14.5%

80%

95.3%

60%

40%

None

85.5%

100.0%

Equiped

20%

Green qualifying assets
95.3%

0%

LED lighting

Over 80% have installed solar power
None
18.6%

Solar Power (Inhouse consumption)
40.7%

81.4%

Electricity consumption and Energy production of all properties from April to September 2021
Of the five properties thathave been introduced forin-house consumption, one
was acquired in September
2021, so the amount looks
small.

(thousand kWh)

7,890

Energy Consumption

Solar Power(Electricity sales
by FIT)
40.7%

Renewable Energy
Production

680

5,788

In-house consumption
Electricity sales

80% of total consumption is covered by renewable energy
Regarding “in-house consumption”, the produced electricity can beused without transmission loss, and provided directly to tenants,
therefore, CRE REIT will actively introduce “In-house consumption” forthe properties acquiring in the future.

Note: CRE REIT leases roof top space and the lessees produce renewable energy by installing solar panels.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

20

2. Growth Strategies

Promoting ESG Efforts – Environment (2)In-house consumption of solar power

Human sensors

Installation of water-saving sanitation
appliances

Ensure a part of the electricity consumed in
facilities from the electricity generated by solar
power.

Promote energy saving by installing humansensors in facilities.

Promote the reduction of water usage by installinghigh-performance water-saving sanitation
appliances in the reduction of water usage.

Installation of roof watering
equipment

Green walls

Soil contamination countermeasures

Contribute to the reduction of temperaturesinside warehouses by installing well waterbased roof watering equipment.

Green walls has the effect of lowering thesurface temperature of buildings andcontributes to the reduction of CO2 in theatmosphere.

Enbio Holdings, Inc., a CRE group company,
revitalizes old factory sites as the land for logistics
facilities by actively utilizing in-situ cleaning
methods that decompose undergroundcontaminants without excavating contaminated soil.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

21

2. Growth Strategies

Promoting ESG Efforts – Social (1)Conduct tenant satisfaction surveys• We will continue to consider improvement measures to increase tenantsatisfaction and property value.

• We have confirmed that tenants are becoming more aware of ESG andenvironmental issues.
Do you want to stay in LogiSquare in the future?
Yes
100.0%

100.0%

Do you feel the need to incorporate agreenhouse gas reduction perspective into
your business?
I don't feel much.
11.3%

I feel very much
34.3%

• Quarterly Employee satisfaction survey
Asset Management Company conducts
questionnaires on employee engagement fourtimes a year and confirms that respondents areproactively engaging in their work and are
motivated to contribute to the organizations towhich they belong. If problems are identified,the employees themselves devise andimplement improvement measures.

• The president has 1 on 1 meeting with all
employees quarterly

Do you feel the need to incorporate ESG
perspectives into your business?
I don't feel much.
11.3%

I feel54.4%

Establish a favorable relation between
the employees and the Company

I feel61.3%

I feel very much
27.4%

The President of the AssetManagement Company
interviews each employee
every quarter. These interviews
are opportunities to discuss various matters,
including target-setting, progress of work andcareer building.

• Turnover rate remains low
FY 2021/7

FY 2020/7

7.7%(1 employee)

0.0%(- employee)

1. Based on leased area.
2. The above survey was conducted in October and November 2021 for all tenants.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

22

2. Growth Strategies

Promoting ESG Efforts – Social (2)The business continuity of tenants and theimprovements in amenities

Efforts for officers and employees• Support for business continuity planning measures• Support for skill development- Logistics facilities located in an inland area where the risk ofliquefaction is low.
- Install power receiving and transforming equipment at elevatedlocations as a flood control measure.
- Introduce earthquake early warning systems.
- Install AEDs.
- Install emergency power supply systems.
- Install short circuit isolators in fire alarms to prevent the spread of fires.

• Amenity Improvements- Adopt warm-color lighting in entrances
and truck berths, etc.
- Install restrooms for outside drivers.
- Renovate smoking rooms to respondto the revision to the Health Promotion
Act in April 2020.

- Encourage employees to acquire qualifications by paying for expenses
and bonuses for acquisition of qualifications.
License holders (including those that have passed examinations)
Qualification name

Percentage of staff holding qualificationor having passed exam (1)Real estate broker
ARES (Association for Real Estate Securitization)
Certified Master
CMA (Certified Member Analyst of the Securities
Analysts Association of Japan) holder
Real estate consulting master

84.6%
53.8%
23.1%
15.4%

1. Calculated with the 13 people involved in the operation of CRE REIT (as of December 31, 2021) as
the denominator.

• Improvement of the work environment- Refresh and expand the work space by relocating offices.
- Introduce staggered commuting and working from home as a measureagainst COVID-19.

Active disclosure to investors

Contribution to regional and social development• Rationalize disclosures by correcting
information gaps among investors.

• CRE Activities- Promote fair disclosure and therationalization of disclosure byenhancing supplementary explanationmaterials.

• IR activities in consideration of COVID-19- Since March 2020, we hold conference calls and web conferenceswith institutional investors in Japan and overseas to have the same
dialogue as usual.
Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

- The CRE Group has cooperated with a local
government in the excavation of the remainsof 74 pit houses from the Middle Jomon Era(about 5,000 years-old), which werediscovered during the development of LogiSquare Sayama Hidaka, andhas collaborated with the local government in the preservation ofarchaeological records and tours of the site.
- Hold a CRE forum for the purpose of sharing logistics issues faced by companies.

• Install fire cisterns to provide tap water that can be used as a firefighting
irrigation.
• Cooperate for traffic restrictions during the Saitama International Marathon.

23

2. Growth Strategies

Promoting ESG Efforts – GovernanceHolding investment units by officers and employeesof the sponsor and the Asset Manager

High independence of the asset manager• The sponsor's president holds units of CRE REIT. Many officers andemployees of the Asset Manager hold investment units of CRE REIT basedon a cumulative investment system and internal regulations.

• The Asset Manager was established as an independent asset
management company, and all of its employees are employed by the
Asset Manager. CRE is not involved in their recruitment or personnel
evaluation.
Number ofCategory
persons (1)

Title

Name

Units held (1)President

Tadahide Kameyama

722 units

President

Tsuyoshi Ito

1,150 units

Managing Director

Takeshi Oka

61 units

CRE

the Asset
Manager

135 units

11 out of 14 employees
1. As of December 31, 2021. Also, the number of each held unit is rounded down to the nearest unit.

Full-time directors

2

Employees

14(Of which, employees seconded from CRE)
Total

–

16

1. As of December 31, 2021

Asset management fee structure aligned with unitholder interests
Management
fee 1

Total assets × 0.325% (Upper limit)

Management
fee 2Income before income taxes × 4.0% (Upper limit)

Management
fee 3Earnings per unit × 10,000

Fee onacquisition
Fee on sale

Acquisition cost × 1.0% (Upper limit)

In preparation for the next general meeting of unitholders,
we are considering a new asset management fee structurethat is more closely linked to earnings per unit .

(0.5% (Upper limit) in case of transactions with interested party)–

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

24

3. Characteristics of CRE Logistics REIT, Inc.

LogiSquare Osaka Katano
Two cafeterias
and terraceson theCRE
fourthfloor, thetop Inc.
floor,All
that
take advantage
Copyright(C) 2022
Logistics
REIT,
RightsReserved. of the view and are easily accessible from all areas of the building as a common amenity facility.

25

3. Characteristics of CRE Logistics REIT, Inc.

Characteristics/Advantages of CRE REIT
Character-istics

1. Portfolio focused on LogiSquare

2. Long-term, stable asset management

3. Distinct external growth strategy

High-quality portfolio
Occupancy rate

Ratio of fixed-term leases

Ratio of fixed-rate rents

Average lease contract term

Average remaining lease term

Ratio of single-tenantfacilities(1) Stable cash flow
(2) Long-term contracts withdiverse tenants(3) Good location

100.0%

7.9 years

100.0%

5.0 years

Ratio of Tokyo Metropolitan andKansai area

Average mileage
to interchange

96.9%

2.5 km100.0%

65.5%

Ratio of properties within 10 mins’ walkof public transportation

87.0%

The sponsor is real estate company specializing in logistics properties(1)Advantages(1) Leasing capability(2) Property management (PM)capability(3) Development capability

Companies that have concluded
lease contracts with CRE directly

Master lease occupancy rate oflogistics real estateManaged floor area

PM entrusted by other companies(2)1,165 companies

1,578 properties 5.7

98.3%

million m2

Approx.60%

Holding of private viewings, including
for other listed REITs
Ranking of past performance for PM
company focusing on logistics facilities

3rd place• Requests obtained from tenants through day-to-day management and leasing activities are fully reflected in facility
development.
• Has been developing suitable properties for REIT since 2006 when real estate securitization first appeared in Japan.

Capable of flexibly acquiring properties, taking into consideration investment unit price• Can leverage the sponsor’s bridge function. Acquired three properties at the time of the IPO and one property following the first follow-on offering byleveraging the bridge function.
• In position to acquire the properties on the scale of hundreds of millions to billions of yen and quasi-co-ownership interests using free cash.
• Already secured pipeline of 11 properties with total floor area of 497 thousand m2.
1: As of the end of July 2021. Produced by the Asset Management Company based on data provided by CRE. Figures include data relating to property management of other real estate besides logistics facilities and master leases.
2: “PM entrusted by other companies” is area managed by CRE less area relating to PM contracts with the Investment Corporation and area relating to properties in which CRE is involved as master lessee (area managed under PM contracts with otherlisted logistics REITs and private funds, etc.) as a ratio of the total area managed by CRE.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

26

3. Characteristics of CRE Logistics REIT, Inc.

High-Quality Portfolio (1) Stable Cash Flow

Form of contract that enables stable operation••

In many cases, tenants who cancel early before the end of the contract term are required to
pay the equivalent of rent for the whole remaining lease term as a penalty for breach ofcontract. (1)Intention for renewal or termination is ascertained a year before the expiry of a contract.

Ratio of fixed-term lease contracts

Inclusion of relatively newly built properties•

Mainly composed of newly built properties, andrepair expense and capital expenditure are
relatively low.

Ratio of fixed-rate rents

Property age

10 years or more
4.7%

Ratio of fixed-termlease contracts

100.0%

Ratio of fixed-rate
rents

Less than 3 years
44.4%

5 years or more but lessthan 10 years
22.1%

Average

4.2 years

100.0%

3 years or more but lessthan 5 years
28.8%

1. Depending on the amount of the penalty and other circumstances, the court may reduce the penalty in part or deny the effect of such provision.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

27

3. Characteristics of CRE Logistics REIT, Inc.

High-Quality Portfolio (2) Long Term Lease Contracts

Contribution to the stability of portfolio based on long-term contracts that take into consideration tenantbusiness plans.
Average lease contract term

Average remaining lease term
10 years or more
2.5%

Less than 5 years
18.2%

10 years or more
40.4%

Multi-tenant
34.5%

Average

Average

7.9 years

5.0 years

5 years or more andless than 10 years
41.4%

Tenant composition

5 years or more andless than 10 years
43.1%

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Single-tenant
Less than 5 years
54.4%

65.5%

Single-tenant
65.5%

28

3. Characteristics of CRE Logistics REIT, Inc.

High-Quality Portfolio (3) Good Location
Properties are mostly located in a place suited for logistics where strong demand is expected, meeting
tenants' needs to secure labor.
Ratio in Tokyo Metropolitan and Kansai area

Distance to an interchange

Walking distance from public transportation facilities

5 km or more
8.4%

Others3.1%

3 km or more and lessthan 5 km
12.8%

Kansai Area
19.2%

96.9%
Tokyo
Metropolitan Area
77.7%

Average

Walk more than 10 mins
13.0%
Less than 1 km
45.4%

2.5km

Walk within
10 mins

87.0%

1 km or more and lessthan 3 km
33.4%

Walk within 10 mins
87.0%

Example: LogiSquare Urawa Misono
The property is located approximately 700 m from Urawa IC (Tohoku Expressway) and approximately 450 m and a 6 minutes walk from Urawa Misono Station on the Saitama
Rapid Railway Line.
A large-scale community development project is underway in the surrounding area, which will become a potential advantage in securing employees because of theconvenience in their commutes.

Urawa IC

700 m

450 m
6 mins walk

Urawa Misono Station

LogiSquare Urawa Misono
Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

29

3. Characteristics of CRE Logistics REIT, Inc.

Features of LogiSquare
LogiSquare is the brand name of high-quality logistics facilities developed by CRE to meet tenant needs.
Semi-flexible pavement is used toinhibit rutting.

Sandwich panels are used on exterior walls to reduceheating and cooling loads and to
give the exterior an attractive appearance.

Facility has roof spraying system that uses well
water to reduce the internal temperature.
The facility has a total of 44 truck berths on
the first and third floors to allow the docking
of up to 44 large trucks simultaneously.

Berth depth 13.5 m

Truck berths are large enough to fit awhole 40ft container truck.

The facility has truck berths on the first and third floors.
To prevent congestion and accidents, the facility is designed to separate traffic flows and equipped withdedicated gates for the first/second floor tenants and the third/fourth floor tenants, respectively.
Note: The logistics facility shown above is an example of the features of LogiSquare. Not all facilities held by CRE REIT have the features shown above.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Wooden deck

Bicycle parking

0

LogiSquare Urawa Misono

Rest area with wooden deck30

3. Characteristics of CRE Logistics REIT, Inc.

Features of LogiSquare
LogiSquare not only improves the efficiency of warehouse operations, creates a pleasant working environment for
tenants but helps minimize costs in the future for CRE REIT.
Fireproof partition walls are
made of fire-resistant heatinsulating panels that haveexcellent insulation
properties, seismic resistanceand an aesthetically pleasing
appearance.

LED lighting throughout helps
save energy.

Openings in fire partitions are
as wide as possible.
6.0 m

Pillar span 10.3 m × 10.35 m

10.3 m10.35 mFloor loading 1.5 t/m2
LogiSquare Urawa Misono

The facility has an effective
ceiling height of 6.0 m, or
5.5 m even if cooling panels
are installed.

Internal signage is designed
to visually communicate
warehouse functions.

Windows

Interior walls between offices and the warehouse
space have windows in them to facilitatecommunication.

The women’s restroom has lockers anddesigned to make female employees feel comfortable.

Note: The logistics facility shown above is an example of the features of LogiSquare. Not all facilities held by CRE REIT have the features shown above.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

To help minimize costs in the future, the facility already has windows
and ventilation built in to ensure compliance with laws and regulations
in case it is necessary to expand office areas in the future.

31

3. Characteristics of CRE Logistics REIT, Inc.

Sponsor is Real Estate Company Specializing in Logistics Properties
The sponsor has a track record of more than 50 years in the field of logistics real estate in Japan.
Launch of asset management business/Listing of CRE REIT in February 2018
Participation in development business / Management of large-sized facilities
Proposals for small- and medium-sized warehouse asset utilization / Building of relationships with tenants

1964

2005

1980

2014

Established in 2009

Established in 1980

Commercial RE

Established in 1964

Tenko Souken

2010:
Businesstransfer
2011:
Absorptiontype merger

2014:
Acquisition

Established in 2006

2020:
Absorption-type merger

Involvement of all employees in logistics properties

Proven track record in providing services to other companies(1)Number of employees on a consolidated basis (as of July 31, 2021)

CRE REIT can draw on the sponsor's knowhow gained through the management of 5.7
million m2 floor area
CRE REIT
9%

Property management

237
Logistics investment

Master lease27%

Asset management

12
20
49

Area managed

1,578 properties
5.7 million m2
Other listed REITs and Private

Administration

Total 318
Source: Prepared by the Asset Manager based on Annual Report for Fiscal Year ended July, 2021 of CRE, Inc.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

fund, etc.
64%
1. As of July 31, 2021. Includes results under the property managements and master lease agreements for theproperties other than logistics-related facilities.

32

3. Characteristics of CRE Logistics REIT, Inc.

CRE’s Leasing/Property Management Capability – Strength in Wide Tenant Networks
Fast grasp of rent trends, including actual rents paid and rent
increases and decreases, by entering into contracts directly witha diverse range of tenants, not just logistics service providers.
• CRE can gain an understanding of rent levels by entering contracts withtenants directly under master lease arrangements• CRE builds relationships with tenants from a variety of industries not
only logistics operators.

Ranks Third Among Logistics Facilities-focusing PM
companies(1)
12

10.0

10

6.4

8
6

5.7

4.8

4

1.8

2

Other
Customer services

0(Million m2)

Transportation
services

GLP

GLP

Daiwa House

Daiwa
House…
Property

Prologis

Prologis

ESR

ESR

Management

Corporation services

Whole sale

Total Number ofMaster Lease Tenants (1)RetailReal estate andconstruction

Manufacturing

Around 70% of tenants are
not logistics operators
1. As of July 31, 2021. Figures include tenants of properties other than logistics-related facilities.The classification of tenants ismade by the Assets Manager based on hearing surveys at the execution of lease contracts, considering major items andindustries of each tenants. Therefore, those ratios may differ from actual ratios.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Major Customers (2)1,165 companies

•
•
•
•
•
•
•
•
•
•
•
•

LaSalle LOGIPORT REIT
Star Asia Investment Corporation
Kenedix Retail REIT Corporation
United Urban Investment Corporation
Japan Logistics Fund
Industrial & Infrastructure Fund Investment Corporation
Mitsubishi Estate Logistics REIT Investment Corporation
Mitsubishi Jisho Investment Advisors
Morgan Stanley Capital
Mitsui & Co., Realty Management
Yamato Home Convenience
TLC REIT Management(No particular order)

1. Prepared by the Asset Manager based on Monthly Property Management magazine (November 2021
edition).“Logistics facilities-focusing PM companies” refer to property management companies where 70% ormore of their entrusted areas are the areas of logistics facilities. “Entrusted areas” include the management areasof real estate other than logistics facilities. In company names, Co., Ltd., Inc., etc. is omitted.
2. Prepared by the Asset Manager based on CRE Inc.’s Summary of Financial Statements for Fiscal Year Ending July
31, 2021.

33

3. Characteristics of CRE Logistics REIT, Inc.

CRE’s Development Capability– Development Ensuring Versatility and Incorporating Tenant Requirements
Realization of Long-term Contracts and Mitigation of Re-tenant Risk by Ensuring Versatility and Incorporating Tenant
Requirements= High-quality logistics facilities developed by CRE to meet tenant needs
Versatility=

Location+

Basic
Specification+

Expandability+

Comfort+Tenant’s unique requirements

Improvement of Convenience by the Full Reflection of the Requirements Learned Through Day-to-Day Management andLeasing Activities in Development Plans

Improvement of convenience/
Reduction of future costs

Development / CM teamReflection of requirements and management
status in development plans

Leasing teamProperty management teamCommunication

Tenant companies and potential tenants

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

34

3. Characteristics of CRE Logistics REIT, Inc.

Cumulative total floor area

CRE’s Development Capability

Total floor area of properties developed or to be developed during the period

Properties developed by Commercial RE

Properties developed by CRE

Properties jointly developed by Commercial RE and Kenedix

Properties to be developed by CRE (planned)

Properties held by other REITs– Development Since the Start of Real Estate Securitization in Japan

Properties with exclusive negotiation rightAssets owned by CRE REIT

CRE has been developing logistics properties since real estate securitization started in Japan and has
accumulated its knowhow on the development of properties suitable for REITs.
Track record of development of 36 properties amounting around 805,000 m2

LogiSquare Chiba Kita II

LogiSquare Kuki II

LogiSquare Chitose

LogiSquare Misato

LogiSquare Urawa Misono

LogiSquare Tosu

LogiSquare Ageo

LogiSquare Niiza

LogiSquare Kawagoe

LogiSquare Kawagoe II

LogiSquare Moriya

LogiSquare Kasukabe

LogiSquare Kobe Nishi

Toyama BTS warehouse

LogiSquare Sayama Hidaka

LogiSquare Miyoshi II

LogiSquare Miyoshi

LogiSquare Osaka Katano

900
LogiSquare Mizuho A

LogiSquare Yachiyo

800

805
703

700

LogiSquare Mizuho B

LogiSquare Kazo II

LogiSquare Tosu II

LogiSquare Kuki

600
LogiSquare Matsuzaki I

LogiSquare Ichikawa-tajiri

LogiSquare Sagamihara

LogiSquare Tosu I

LogiSquare Matsuzaki II

LogiSquare Tokorozawa

LogiSquare Soka

LogiSquare Yashio

LogiSquare Hidaka

477

LogiSquare Hanyu

500
400
300
Yokohama Fukuura Logistics Center

200

118

100

LogiSquare Kazo I

80

FY2006/3(Thousand m2)

Timing of listingof logistics REITs

167
49

220
53

267
19

283
16

65

576
33

128

FY2019/7

FY2020/7

119

358
248
29

542

102

75

110
FY2007/3

May 2005

FY2008/3

FY2009/3

FY2013/7
Dec. 2012

Listing of first REIT specializing
in logistics facilities

FY2014/7
Feb. 2013

FY2015/7

FY2016/7

FY2017/7

Feb. 2016 Aug. 2016

FY2018/7
Sep. 2017

Feb. 2018

Sep. 2018

FY2021/7

Dec. 2019

CRE REIT listed

The above chart includes assets not in our portfolio, CRE REIT has not engaged in specific negotiations with the CRE Group companies on any of the above assets that are not portfolio assets, nor does it have any plan to acquire them at the present time or
guarantee future acquisition. The above chart also includes the properties that have already been sold to third parties. Furthermore, with respect to properties to be developed by CRE (planned), as of February 17, 2022, the development has not completed andthe pictures, total floor area and development completion timing are based on plans as of February 17, 2022 and may change in the future. The development completion dates of the above assets are stated as the building completion dates.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

35

4. Market Environment

LogiSquare Osaka Katano
Free Wi-Fi andbackgroundmusicCRE
broadcasting
areAllprovided
the cafeteria to contribute to the improvement of the working environment for employees.
Copyright(C) 2022
Logisticsfacilities
REIT, Inc.
RightsinReserved.

36

4. Market Environment

Summary of Market Trends
Recent market trends
Vacancy rate: 2.03% QoQ: Slightly Improved (-0.24pt)

Tokyo metropolitan area
Page 38-40

The vacancy rate improved for the first time in a 4Q.
Supply for the 2022CY is the largest.
Vacancy rate: 1.00% QoQ: Slightly Improved (-0.59pt)

Kansai area
Page 38 and 40

Annual demand was the strongest since the survey started.

Rising demand for rental logistics facilities(1) Replacement demand for logistics
facilities

Around 30% of logistics facilities in the Tokyo Metropolitan Area are 40 to 50 years old.

Page 41

3PL Market Size

EC Market Size/EC Ratio

2010(2) Expansion of 3PL market and EC
market2020

3.3 trillion yen
1.4 trillion yen
2.3-fold increasein 10 years

2020

19.2 trillion yen
7.7 trillion yen
2.5-fold increasein 10 years

2.8%

Page 42(3) Rising importance of logistics
network strategy

2010

8.1%

64% of tenant companies that use logistics facilities have plans to relocate or expand
Page 43

logistics facilities.

Please refer to the notes on each page from 38 to 43 page for the definition of each calculation method of each figure.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

37

4. Market Environment

Market Trends(1) Tokyo Metropolitan Area and Kansai Area (from LogiSquare Market Report)
Tokyo metropolitan area

The vacancy rate improved for the first time in a 4Q. Supply for the 2022CY is the largest.

Vacancy rate: Less than 5%
Vacancy rate: 5% or more and less than 10%
Vacancy rate: 10% or more

Vacancy rate: 2.03% QoQ: Slightly Improved

The vacancy rate decreased for the first time in a 4Q. It was 2.03%, decreasing 0.24 points from the previous Q. Of new
supply with approx. 240,000 tsubo yet to be absorbed. On the other hand, the existing properties were significantly
absorbed. As a result, vacant properties of approx. 20,000 tsubo were absorbed and the vacancy rate decreased. New
supply for 2021CY was more than 760,000 tsubo, the largest since the survey started. The vacancy rate increased 1.85
points throughout the year. New supply for 2022CY is approx. 980,000 tsubo, an increase of slightly less than 30% from2021CY. It is equivalent to 14% of stock. New supply in the Western Tokyo and Kanagawa area, which has the thirdlargest stock in the Tokyo metropolitan area, are approx. 310,000 tsubo, an increase of slightly more than 70% from2021CY. It is equivalent to slightly more than 25% of stock. The reservation rate is reportedly slightly more than 30%.
There is a concern over the possible impact on the vacancy rate mainly in the large supply area.

(Million m2)

25

10%

20

8%

15

6%

10

4%

5

2%

0

0%

Kansai area

Rented area

Vacant area

Vacancy rate (right axis)

Vacancy rate: 1.00% QoQ: Slightly Improved

Annual demand was the strongest since the survey started.
The vacancy rate was 1.00%, decreasing 0.59 points from the previous Q. New supply of approx. 15,000 tsubo wasabsorbed and approx. 10,000 tsubo of existing properties was absorbed. New supply for 2021CY was approx. 267,000
tsubo, the second largest since the survey started. Demand is also approx. 344,000 tsubo, the strongest since the survey
started. The vacancy rate decreased for four consecutive Qs, remaining robust throughout the year.
Supply scheduled for 2022CY is approx. 122,000 tsubo, the smallest since the survey started. It accounts for less thanhalf of that of the 2021CY. Except for the Inland Kobe area, no supply or decreased supply is expected. The current
reservation rate is reportedly slightly less than 40%. As there are properties that have not been reserved in 1Q, thevacancy rate may increase slightly in a short time. However, it is expected to remain robust throughout the year.
10

20%
15%

5

10%
5%

(Million m2)00%

Rented area

Vacant area

Vacancy rate (right axis)

Source: Prepared by the Asset Manager based on data from “LogiSquare Market Report on Warehouses and Logistics Properties December 2021” of CRE, Inc.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

38

4. Market Environment

Market Trends(2) Saitama Prefecture Each Area (from LogiSquare Market Report)
Southern Saitama area

Soka

Niiza

Urawa
MisonoYashioMiyoshi

Saitama Kan-Etsu/ Tohokudo area

Vacancy rate: 2.22% QoQ: Slightly Deteriorated

Vacancy rate: 2.33% QoQ: Slightly Deteriorated

As presumed in the previous Q, the vacancy rate was 2.22%, increasing 0.75 points from theprevious Q. Of new supply with approx. 39,000 tsubo, approx. 12,000 tsubo has yet to beabsorbed. Slightly less than 8,000 tsubo of existing properties was absorbed.
New supply for 2021CY was approx. 83,000 tsubo, decreasing for the first time in 2CYs. The
vacancy rate increased 2.20 points throughout the year. New supply for 2022CY is approx. 83,000
tsubo, remaining at the same level. The reservation rate is reportedly approx. 80%. No significant
deterioration is likely to occur in the vacancy rate for a while.

As presumed in the previous Q, the vacancy rate was 2.33%, increasing 0.19 points from theprevious Q. Of new supply with approx. 28,000 tsubo, approx. 15,000 tsubo has yet to be absorbed.
Approx. 11,000 tsubo of existing properties was absorbed. New supply for 2021CY was approx.
164,000 tsubo, the second largest since the survey started. The vacancy rate increased 1.73 points
throughout the year. New supply for 2022CY is approx. 168,000 tsubo, remaining at the samelevel. The reservation rate is reportedly approx. 40%. No significant deterioration is likely to occur
in the vacancy rate for a while.

Rented area

Vacant area

Vacancy rate (right axis)

Rented area

Vacant area

202112202109202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

201609(Thousand m2)

2016062021122021092021062021032020122020092020062020030%20191202019090%2019060(Thousand m2)

2019035%2018122,000

2018095%2018061,000

20180310%2017124,000

20170910%2017062,000

20170315%201612

6,000

20160915%201606

3,000

Vacancy rate (right axis)

Source: Prepared by the Asset Management Company based on data from “LogiSquare Market Report on Warehouses and Logistics Properties December 2021” of CRE, Inc.

Breakdown: Saitama Kan-Etsu/ Tohokudo area
Mizuho B

Saitama Kan-Etsudo area

KawagoeMizuho A

Kawagoe II

SayamaHidakaKuki II

Saitama Tohokudo area

Vacancy rate: 0.32%

Kuki

Hanyu

Kasukabe

Ageo

Vacancy rate: 4.04%

Rented area

Vacant area

Vacancy rate (right axis)

Rented area

Vacant area

202112202109202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

201609(Thousand m2)

2016062021122021092021062021032020122020092020062020030%20191202019090%2019060(Thousand m2)

2019035%201812

1,000

2018095%2018061,000

20180310%2017122,000

20170910%2017062,000

20170315%201612

3,000

20160915%201606

3,000

Vacancy rate (right axis)

Source: Prepared by the Asset Management Company based on data from CRE, Inc.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

39

4. Market Environment

Market Trends(3) Other Each Area (from LogiSquare Market Report)
Southwestern Ibaraki area

Tosu area

MoriyaTosu

Vacancy rate: 0.58% QoQ: Flat

Vacancy rate: 0.00% QoQ: Flat

The vacancy rate was 0.58%, remaining flat from the previous Q. There were no changes in bothnew supplies and existing properties. New supplies of approx. 47,000 tsubo for 2021CY wereabsorbed. The vacancy rate increased 0.58 points throughout the year.
New supply for 2022CY is approx. 25,000 tsubo, decreasing almost by half. The reservation rate isreportedly slightly less than 60%. The vacancy rate is likely to remain low for a while.

The vacancy rate was 0.00%, remaining at an extremely low level. There were no changes in bothnew supplies and existing properties.
New supply for 2021CY was approx. 25,000 tsubo, the largest since the survey started. It isequivalent to approx. 28% of stock.
New supply for 2022CY is approx. 30,000 tsubo, the largest since the survey started. The
reservation rate is reportedly less than approx. 30%. The vacancy rate is likely to remain low for awhile.

2,000

40%

1,000

30%

30%
1,000

20%

20%
10%

10%

Rented area

Vacant area

Vacancy rate (right axis)

Inland Kobe area

Rented area

Kobe Nishi

Vacant area

202112202109202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

2016120%2016090(Thousand m2)

201606202112202109202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

2016090%2016060(Thousand m2)

Vacancy rate (right axis)

Osaka
KatanoHokusetsu Higashi-Osaka area

Vacancy rate: 0.00% QoQ: Flat

Vacancy rate: 1.74% QoQ: Improved

The vacancy rate was 0.00%, remaining at an extremely low level for nine consecutive Qs.
New supplies of approx. 15,000 tsubo for 2021CY4Q were absorbed. New supply of approx.
29,000 tsubo in all of 2021CY was absorbed.
The vacancy rate is remaining at an extremely low level. New supply for 2022CY is approx. 36,000
tsubo, increasing approx. 25%. The reservation rate is reportedly slightly more than 30%. As there
are properties that have not been reserved in 1Q, the vacancy rate may slightly increase.

As presumed in the previous Q, the vacancy rate was 1.74%, decreasing 1.72 points from theprevious Q.
There was no new supply and approx. 11,000 tsubo of existing properties was absorbed.
New supply for 2021CY is approx. 178,000 tsubo, equivalent to slightly more than 25% of stock.
The vacancy rate increased 1.41 points throughout the year. New supply for 2022CY is approx.
77,000 tsubo, decreasing significantly. The reservation rate is reportedly less than 50%. As there
are properties that have not been reserved in 1Q, the vacancy rate may slightly increase.

Vacant area

Vacancy rate (right axis)

Rented area

Vacant area

202112202109202106202103202012202009202006202003

201912

201909201906201903202112202109202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

201609Rented area

2018120%2018090(Thousand m2)

20180610%

2018031,000

20171210%20170920%

2017062,000

20170320%

20161230%

2016093,000

0%2016060(Thousand m2)

30%

201606

1,000

Vacancy rate (right axis)

Source: Prepared by the Asset Management Company based on data from “LogiSquare Market Report on Warehouses and Logistics Properties December 2021” of CRE, Inc.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

40

4. Market Environment

Rising Demand for Rental Logistics Facilities(1) Replacement Demand for Logistics Facilities• About 30% of logistics facilities in the Tokyo Metropolitan Area(1) were constructed during the period of high economic growth or the
economic bubble, and they are 40 to 50 years old.
• Given that the useful life of logistics facilities under the tax code is 38 years(2), demand for replacement in pursuit of functionality appears to
be increasing.
Percentage of logistics facilities in the Tokyo Metropolitan Area by year of construction

Distribution of locations by the number of facilities

100%

10%

To 1969

80%

18%

60%

23%

1970 - 1979
1980 - 1989
1990 - 1999
From 2000

40%

24%

20%

25%
0%

About 30% of logistics
facilities are more than
40 to 50 years old.

These facilities are
20 to 40 years old andthe demand for theirreplacement is
expected in the future.

Construction from 2000, whenoverseas affiliated developers
began development in Japanand advanced logistics
facilities began being
constructed.

10-29 facilities
30-59 facilities
60 facilities or more
Expressway, etc.

Source: Prepared by the Asset Manager based on data from Tokyo Metropolitan Transportation Planning Association
1. Tokyo Metropolitan Area includes Tokyo, Kanagawa, Saitama, Chiba, central and southern Ibaraki, southern Tochigi and southern Gunma
2. Steel-reinforced concrete or reinforced concrete structures

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

41

4. Market Environment

Rising Demand for Rental Logistics Facilities(2) Expansion of 3PL Market and EC Market• The market for third-party logistics (3PL) is growing as companies
are increasingly outsourcing their logistic operation
comprehensively.

• The EC market is expanding year by year. Furthermore, in Japan,
the EC rate is low compared with the U.S. and there is still muchroom for expansion.

3PL (Third-Party Logistics) Market Size

Growth in the BtoC e-commerce market size in Japan

3.5
3.0
2.5
2.0

1.5

1.4

1.7

1.8

2.0

2.2

2.4

2.5

2.8

3.0

3.1

3.3

20.0

E-commerce rate in Japan (right axis)

18.0

E-commerce rate in the U.S. (right axis)

16.0
14.0

12.0
10.0
8.0
6.0

1.0

7.7

8.4

4.4% 4.9%

9.5
5.4%

11.1

12.7

2.0
0.0

0.0

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source: “The monthly Logistics Business” September 2021 issued by Rhinos Publications, Inc

2019

2020

(year)(Trillion yen)

2.8% 3.2% 3.4%
2010

2011

2012

13.7

7.1%
5.8% 6.4%

4.0

0.5

(Trillion yen)

E-commerce market size in Japan (left axis)

3.9% 4.4%

15.1

7.9%

16.5

8.7%

5.8%
4.8% 5.4%

17.9

9.6%

19.3 19.2

20%

U.S.
13.6% 15%
10.7%
10%

8.1%
6.8%
6.2%
Japan

5%

0%

2013

2014

2015

2016

2017

2018

2019

2020

(year)

Source: Prepared by the Asset Manager based on data of the Ministry of Economy, Trade and Industry for the BtoC e-commercemarket size and the e-commerce rate in Japan and data of the United States Census Bureau for the e-commerce rate in
the U.S.
1.
The ratio of the e-commerce market size to the amount of all commercial transactions (the commercial transaction
market size). The e-commerce rate in BtoC e-commerce refers to the value in the field of product sales.

• In recent years, the floor space of properties where construction commenced has been around half the peak level and there has been ashortage of logistics facilities to meet current logistics needs.
Trends in Floor Space of Properties Where Construction Commenced
20
RetailWarehouses

15
10
5
0
(Million m2)

1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 (year)

Source: Prepared by the Asset Manager based on the Japan Construction Starts Report by the Ministry of Land, Infrastructure, Transport and Tourism and the Statistical Yearbook of Construction by the Ministry of Construction

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

42

4. Market Environment

Rising Demand for Rental Logistics Facilities(3) Rising Importance of Logistics Network Strategy• 64% of tenant companies that use logistics facilities haveplans to relocate or expand logistics facilities.
Plans for relocation / expansion of logistics facilities

No plan29%

Relocation,
reorganization
36%• Possibility that demand for the rental of logistics
facilities will increase due to COVID-19.
Medium- to long-term changes and the impact of COVID-19
considered by tenants using logistics facilities

Greater inventories to prepare for an
emergency
Acceleration of the automation of warehouse
operations (to reduce dependence on labor)
Increase in demand for the last mile
Increase in demand for refrigerated
warehouses for foods and fresh foods

Others7%
Shrink0%

Acceleration of the use of unmanned delivery
robots (to avoid face-to-face delivery)
No particular change

Expansion
28%

Others0%

Number of responses: 336
Survey period: March 4, 2020 to March 19, 2020
Survey targets: Tenant companies using logistics facilities
Source: Prepared by the Asset Manager based Tenant survey on the use of logistics facilities 2020 from CBRE K.K.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

10%

20%

30%

40%

Number of responses: 361
Survey period: March 4, 2020 to March 19, 2020
Survey targets: Tenant companies using logistics facilities
Source: Prepared by the Asset Manager based on the Impact of COVID-19 on Logistics from CBRE K.K.

43

5. Appendix

LogiSquare Osaka Katano
The specifications which allow for a certain level of response to future needs such as the addition of vertical conveyors, cargo elevators, office space, and air conditioning units in the warehouse throughthe first to fourth
floors(C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.
Copyright

44

5. Appendix

Portfolio Centered on Metropolitan Areas
Locations of current assets and pipeline assets

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

45

5. Appendix

Portfolio Consisting of Newly Built, High Occupancy Properties Developed by CRE
No.

Property nameLocation

Acquisition
price(million yen)Appraisalvalue(million yen)Appraisal
NOI yield(%)

Total floor area
(m2)

Age
(years)Number Occupancy
Developerof tenants ratio(%)

M-1

LogiSquare Kuki

Kuki-shi, Saitama

9,759

11,1004.8

40,907.13

5.6

1

100.0

CRE

M-2

LogiSquare Hanyu

Hanyu-shi, Saitama

6,830

7,280

5.0

33,999.61

5.5

1

100.0

CRE

M-3

LogiSquare Kuki II

Kuki-shi, Saitama

2,079

2,340

5.2

11,511.22

4.9

1

100.0

CRE

M-4

LogiSquare Urawa Misono

Saitama-shi, Saitama

13,06014,900

4.7

48,738.29

4.8

3

100.0

CRE

M-5

LogiSquare Niiza

Niiza-shi, Saitama

6,960

7,710

4.9

25,355.82

4.8

1

100.0

CRE

M-6

LogiSquare Moriya

Moriya-shi, Ibaraki

6,157

7,500

5.6

32,904.90

4.7

2

100.0

CRE

M-7

LogiSquare Kawagoe

Kawagoe-shi, Saitama

1,490

1,700

5.1

7,542.56

3.9

1

100.0

CRE

M-8

LogiSquare Kasukabe

Kasukabe-shi, Saitama

4,900

5,620

5.1

21,315.54

3.6

1

100.0

CRE

M-9

LogiSquare Soka

Soka-shi, Saitama

8,109

9,130

4.6

28,817.59

8.5

1

100.0

CRE

M-10

LogiSquare Yashio

Yashio-shi, Saitama

5,073

5,650

4.6

19,068.60

7.9

1

100.0

CRE

M-11

LogiSquare Mizuho A

Mizuho-machi, Tokyo

2,794

3,170

4.9

13,755.16

14.9

1

100.0

CRE

M-12

LogiSquare Mizuho B

Mizuho-machi, Tokyo

3,584

4,010

4.8

16,016.37

14.9

1

100.0

CRE

M-13

LogiSquare Ageo

Ageo-shi, Saitama

4,908

5,280

4.6

19,142.84

2.7

2

100.0

CRE

M-14

LogiSquare Miyoshi

Miyoshi-machi,
Saitama

11,70013,000

4.6

37,931.49

1.6

1

100.0

CRE

M-15

LogiSquare Sayama Hidaka

Hanno-shi,
Saitama

14,066

14,8004.4

73,728.44

1.6

1

100.0

CRE

M-16

LogiSquare Kawagoe II

Kawagoe-shi,
Saitama

3,244

3,440

4.8

14,281.38

2.5

1

100.0

CRE

O-1

LogiSquare Tosu

Tosu-shi, Saga

2,823

3,340

5.3

16,739.40

3.9

1

100.0

CRE

O-2

LogiSquare Chitose

Chitose-shi, Hokkaido

1,300

1,590

6.6

19,760.00

4.1

1

100.0

CRE

O-3

LogiSquare Kobe Nishi

Kobe-shi, Hyogo

3,479

3,700

4.7

16,006.20

1.7

1

100.0

CRE

O-4

LogiSquare Osaka Katano

Katano-shi, Osaka

22,37023,3004.4

76,393.17

1.0

5

100.0

CRE

134,686

148,560

4.7

573,915.71

4.2

28

100.0

–

20 properties Total/Average
Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

46

5. Appendix

Portfolio Diversification

Diversification of tenants

Tenant industries (3)Ratio of logistics
industry in end users

Top 5 tenants

37.8%

Products handled by tenants (3)Manufacturing 2.0%
Medical 2.1%

Warehouse/transportation-related
6.0%

74.7%

Home appliances
3.8%
Pharmaceuticals 3.9%

Information andcommunications 2.9%

Other 4.0%

Retail 3.1%
Wholesale 9.0%

Books 4.5%

Number oftenants

28

Food and beverage 18.2%

Packaging material 4.4%

Entertainment articles
and toys 4.6%

Real estate (CRE)
16.1%

Daily commodities
15.1%

Furniture 6.8%Landtransportation
58.8%

Interior products
9.4%

Machines and parts 13.1%
Apparel 12.3%

1. Based on leased area.
2. Outer circle shows the industries of end users (end tenants where a pass-through type agreement or a fixed-rent master lease agreement has been or is shceduled to be executed).
3. The classification in each graph is on visual contact or hearing results, and only major items are stated by Asset manager. Therefore, those ratios may differ from actual ratios.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

47

5. Appendix

Overview of Appraisal Value(2021/6)(2021/12)

11th FP

Compared to10th FPAppraisal value

122,040 million yen

148,560 million yen+ 26,520 million yen

Book value

110,767 million yen

132,678 million yen+ 21,910 million yen

By the acquisition of assets
acquired in the 11th FP+23,300 million yen

Unrealized gains

11,272 million yen

15,881 million yen+ 4,609 million yen

By appraisal of existing assets+3,220 million yen

10.2 %

12.0 %+ 1.8 %

143,278 yen

158,006 yen+ 14,727 yen

10th FP

Unrealized gains rate
NAV per unit

NAV per unit

Appraisal value / Unrealized gains rate
160,000

148,560

132,678

120,000

50,13040,00047,593
5.3%

50,48047,306
6.7%

1st
PO

5th FP

6th FP

Appraisal value

100,000

90,253

7th FPBook value

3rdPO

8th FP

129,286
17,043

137,499
20,134

28,123

22,53710.0%

50,000117,365 120,740
103,962 103,589 103,217 103,993 112,243

129,882

5.0%
4th
PO

9th FP

12.0%

10.2%

9.4%

8.1%
2nd
PO

122,212
114,936 117,317 118,187
10,974 13,727 14,969 18,218

143,278

15.0%

72,6618.9%

7.4%

150,000

110,767

53,15647,0190(million yen) 4th FP

57,88050,48025.0%

158,006

20.0%

78,58080,000200,000

30.0%

122,040
98,780

35.0%

5th
PO

10th FP 11th FP

Unrealized gains rate

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

0.0%

1st
PO

0
(yen)

4th FP

5th FP

6th FP

7th FP

2nd
PO

3rd
PO

8th FP

Net assets after distribution per unit

9th FP

4th
PO

5th
PO

10th FP 11th FP

Unrealized gains per unit48

5. Appendix

Overview of Appraisal ValueNo.

Property nameAt the end of the
At the end of thevalue
ChangesAcquisition Acquisition atBook
11th
FP
10th FP
Unrealized Unrealized
the
end
of
month and
price
gains
gains rate
Appraisal
DirectAppraisal
DirectAppraisal
Directthe 11th FP
year(million yen) (million
(%)
value
capitalization
value
capitalization
value
capitalization (million yen)
yen)(million yen) rate (%) (million yen) rate (%) (million yen) rate (%)

M-1

LogiSquare Kuki

Jul. 2016

9,759

9,090

11,1004.2

10,800

4.3

+ 300

- 0.1

2,009

22.1

M-2

LogiSquare Hanyu

Jul. 2016

6,830

6,363

7,280

4.6

7,130

4.7

+ 150

- 0.1

916

14.4

M-3

LogiSquare Kuki II

Feb. 2018

2,079

1,995

2,340

4.5

2,270

4.6

+ 70

- 0.1

344

17.3

M-4

LogiSquare Urawa MisonoFeb. 201813,06012,69014,9004.1

14,600

4.2

+ 300

- 0.1

2,209

17.4

M-5

LogiSquare Niiza

Feb. 2018

6,960

6,738

7,710

4.4

7,520

4.5

+ 190

- 0.1

971

14.4

M-6

LogiSquare Moriya

Feb. 2018

6,157

5,938

7,500

4.5

6,930

4.5

+ 570

–

1,561

26.3

M-7

LogiSquare Kawagoe

Jul. 2019

1,490

1,474

1,700

4.3

1,620

4.4

+ 80

- 0.1

225

15.3

M-8

LogiSquare Kasukabe

Jul. 2019

4,900

4,833

5,620

4.2

5,480

4.3

+ 140

- 0.1

786

16.3

M-9

LogiSquare Soka

Feb. 2020

8,109

8,151

9,130

3.9

8,890

4.0

+ 240

- 0.1

978

12.0

M-10

LogiSquare Yashio

Feb. 2020

5,073

5,109

5,650

3.9

5,500

4.0

+ 150

- 0.1

540

10.6

M-11

LogiSquare Mizuho A

Feb. 2020

2,794

2,834

3,170

4.1

3,100

4.2

+ 70

- 0.1

335

11.8

M-12

LogiSquare Mizuho B

Feb. 2020

3,584

3,612

4,010

4.1

3,930

4.2

+ 80

- 0.1

397

11.0

M-13

LogiSquare Ageo

Jul. 2020

4,908

4,894

5,280

4.2

5,150

4.3

+ 130

- 0.1

385

7.9

M-14

LogiSquare MiyoshiJul. 2020

11,70011,612

13,0004.1

12,700

4.2

+ 300

- 0.1

1,387

11.9

M-15

LogiSquare Sayama Hidaka

Jan. 2021

14,066

14,09814,8004.0

14,600

4.1

+ 200

- 0.1

701

5.0

M-16

LogiSquare Kawagoe II

Jan. 2021

3,244

3,255

3,440

4.3

3,380

4.4

+ 60

- 0.1

184

5.7

O-1

LogiSquare Tosu

Apr. 2018

2,823

2,714

3,340

4.4

3,260

4.5

+ 80

- 0.1

625

23.0

O-2

LogiSquare Chitose

Jul. 2020

1,300

1,302

1,590

5.2

1,560

5.3

+ 30

- 0.1

287

22.1

O-3

LogiSquare Kobe Nishi

Jan. 2021

3,479

3,499

3,700

4.3

3,620

4.4

+ 80

- 0.1

200

5.7

O-4

LogiSquare Osaka Katano

Sep. 2021

22,37022,46823,3004.2––+ 23,300

–

831

3.7

End of 11th FP Total / Average–

134,686

132,678

148,560–

122,040–+ 26,520–

15,881

12.0

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

49

5. Appendix

Status of Investors
Major investors (as of December 31, 2021)

Number of investment units by type of owner

Name

Number ofinvestment
units(units)

The Master Trust Bank of Japan ,Ltd. (Trust Account)

108,085

19.1

Custody Bank of Japan, Ltd. (Trust Account)

95,231

16.9

The Nomura Trust and Banking Co., Ltd. (Investment
Trust Account)
Custody Bank of Japan, Ltd. (Securities Investment
Trust Account)

27,001

4.8

25,293

4.5

10th FP(2021/6)

CRE, Inc.

20,390

3.6

4th
PO

The Bank of Yokohama,Ltd.

10,1991.8

Mitsubishi UFJ Trust and Banking Corporation

8,884

1.6

9th FP(2020/12)

JP MORGAN CHASE BANK 380684

8,364

1.5

STATE STREET BANK WEST CLIENT - TREATY 505234

7,431

1.3

8th FP(2020/6)

SSBTC CLIENT OMNIBUS ACCOUNT

6,896

1.2

2nd
PO

317,774

56.3

Total

Ratio
(%)

Number of investors by type of owner (as of December 31, 2021)
Number ofinvestors(person)

Ratio
(%)

8,943

95.1

Financial institutions

75

0.8

Other domestic corporations

173

1.8

Overseas investors

193

2.1

Securities companies

21

0.2

9,405

100.0

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

11th FP(2021/12)

9.4%
53,275

Financial institutions
Securities companies
58.2%
328,640

Other domestic corporations

5.3%
29,714

2.5%
14,242

24.6%
138,829

5th
PO

12.3%
61,305

61.6%
308,166

6.2% 16.8%
31,254 83,907

3.1%
15,51813.2%
56,071

63.5%
268,753

7.1% 14.3%
29,857 60,435

2.0%
8,384

16.8%
58,252

57.3%
199,135

11.3%
39,132

12.5%
43,419

2.1%
7,312

19.1%
49,506

48.7%
126,15419.1%
49,47510.5%
27,227

2.7%
6,888

6th FP(2019/6)

22.0%
50,82142.8%
99,02425.2%
58,3407.7% 2.2%
17,780 5,185

5th FP(2018/12)

25.2%
58,21426.1%
60,395

6.0% 1.0%
13,984 2,325

4th FP(2018/6)

21.3%
49,128

3rdPO

7th FP(2019/12)
1stPO

Individuals/others

Total

Individuals/others
Overseas investors

41.6%
96,232

42.1%
97,21426.4%
61,122

9.7% 0.6%
22,361 1,325

50