Securities Code 3487

Financial Results Briefing for the 8th Period
Ended June 2020 (January 1, 2020 to June 30, 2020)

LogiSquare Miyoshi
Located approximately 0.6 km from Miyoshi Smart Interchange on the Kanetsu Expressway, and access to Route 254 (Kawagoe Kaido) and Route463(UrawaTokorozawa
is also easy.
Copyright (C) 2020 CRE Logistics
REIT,
Inc.
All RightsBypass)
Reserved.

August 17, 2020
CRE REIT Advisers, Inc.

Contents
Contents

GlossaryTerm

1. Third Capital Increase by Public Offering andAsset Acquisitions

2

2. Financial Results and Forecasts

11

3. Growth Strategies

16

4. Characteristics of CRE Logistics REIT, Inc.

Appraisal value

Unrealized gains(Appraisal value) - (Book value) as of the end of the period (Acquisition price in the case of newly
acquired assets)

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 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 appraisal NOI of each asset to the acquisition price (refers to appraisal NOI based on theappraisal report with June 30, 2020 as the date of the value opinion in the case of each asset held
and appraisal NOI based on the appraisal report with May 31, 2020 as the date of the value
opinion in the case of newly acquired assets)

CRE

CRE, INC.

CRE Group

CRE, INC. and its subsidiaries and affiliates

26

5. Market Environment

40

6. Appendix

47

Definition
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)• 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.
• 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, theinvestment 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 that time,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.
• In this material, amounts are rounded off to the unit and ratios are rounded to the nearest one decimal place, unless otherwise noted. Any average or ratio pertaining toassets is the weighted average based on the acquisition price, unless otherwise noted.
Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

11. Third Capital Increase by Public Offering and Asset Acquisitions

LogiSquare Ageo
This property
faces convenientRouteand is expectedthat Allthe Rights
convenience
will be further improved by the plan to extend the metropolitan expressway from Yono IC to close to this LogiSquare Ageo.
Copyright(C) 2020
CRE17Logistics
REIT, Inc.
Reserved.

2

1. Third Capital Increase by Public Offering and Asset Acquisitions

Summary of Third Capital Increase by Public Offering
Promote reduction of LTV, borrowing from new lenders andlong-term debt

Acquisition at appropriate price above implied cap rate
M-13 LogiSquare Ageo

M-14 LogiSquare Miyoshi

O-2 LogiSquare Chitose

End of 8th Period

Liabilities(Ended June 2020)

Number of properties

Average appraisal NOI yield

3 properties

4.8 %Acquisition priceimplied cap rate

(Ended June 2020)

After acquisition ofassetsNumber of properties

13 properties

16 properties

Acquisition price
Average appraisal NOI yield

73,675 million yen

91,583 million yen

4.9 %

4.8 %

16

20

4.8 years

4.0 years

Occupancy rate

100.0 %

100.0 %

Ratio of properties developed
by CRE

100.0 %

100.0 %

Number of tenants
Average property age

Estimate for June 30, 2021

45.0 %

Average duration ofinterest-bearing debt

As of July 30, 2020

As of July 30, 2020

2.8 years

3.7 years

Number of lenders

810

7,950 million yen (including consumption tax loan of 250 million yen)

Realize external growth that contributes to improvement in
distributions per unit and NAV per unit

Improve quality of portfolio through investment in LogiSquareEnd of 8th Period（July 31, 2020）

45.9 %

Increase in borrowing

4.0 %Net assets

Assets17,908 million yen

ＬＴＶ

After the Borrowing

NAV per unit

After second capitalincrease by public
offering

After third capitalincrease by public
offering

June 30, 2020

After third capital increase by
public offering

129,286 yen

133,180 yen （+ 3.0%）

Estimate on normalised level
after second PO

Estimate on normalised level
after third PO(including OPD)

3,160 yen

3,258 yen （+ 3.1%）

Number of new investment
units issued

76,250 units

Total issue value

10,865 million yen

Form of offering

Domestic offering

Distributions per unit

(22.0% of total issued and outstanding investment units)

Note: Please refer to the notes on page 1 or on each page from page 4 for the definition of each term and the calculation method of each figure on this page.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

31. Third Capital Increase by Public Offering and Asset Acquisitions

Flexible Acquisition of Properties in Consideration of the Capital Market
for the Three Consecutive Periods.
Acquired properties at appropriate price above implied cap rate.
Average appraisal NOI yieldof newly acquired assets

Implied cap rate of theInvestment Corporation

4.8%

0.7% Gap

4.0%

Realized flexible financing and property acquisition in consideration of the capital market.
Trends in investment unit price (closing price) since listing (as of August 14, 2020)

January 21, 2020
Second capital increase by public offering
Issue price
142,837 yen
Total issue value
12.5 billion yen

170,000

July 16, 2019
First capital increase by public offering
Issue price
117,975 yen
Total issue value
3.3 billion yen

February 7, 2018 Listing
Issue price
110,000 yen
Total issue value 17.7 billion yen

150,000

July 13, 2020
THird capital increase by public offering
Issue price
147,828 yen
Total issue value
11.2 billion yen

130,000

110,000

90,000July 17, 2019
The presidents of the Sponsor and the AssetManagement Company acquired investment units.

August 2018
Introduced a cumulative investment unit
investment system.

Title and name70,000

Number ofunits acquired

Tadahide Kameyama, Representative
Director and President of CRE

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

500 units

Tsuyoshi Ito, Representative Director andPresident of Asset Management Company

May 29, 2020
Incorporated into the MSCI
Global Small Cap Index.

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

1,000 units

June 5, 2020
Submitted the shelfregistration statement of theInvestment Corporation Bond

50,000

(Yen)

2/7
2018

4/8

6/7

8/6

10/5

NAV per unit

12/4

2/2
2019

4/3

6/2

Tokyo Stock Exchange REIT Index (Note)

8/1

9/30

11/29

1/28
2020

3/28

5/27

7/26

Investment unit price of the Investment Corporation

Note: 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 thelisting of the Investment 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) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

41. Third Capital Increase by Public Offering and Asset Acquisitions

Realize External Growth that Contributes to Increase in Distributions per Unit
and NAV per Unit
Raise normalised DPU by 10.8% within one and a half years by increasing capital for three consecutive periods.
Normalised DPU

Expected DPU

Normalised DPU＋ 10.8％（Annual rate＋ 7.1％）

3,500

3,258

3,160
3,000

3,029

2,940
372

+3.0%

365

+4.3%

323

+3.1%

326

3,297
3,263
323

2,568

2,664

2,837

2,932

2,000

Increase incontinuous
surplus
distributions

255

3,000

Decrease in
asset
Decrease in management
revenue due
fees
to vacancy
Leasing
expense

3,258
326

+71
+85

-77

+49

-72

2,940

3,042

3,205
+89

415

+7
Temporarysurplus
distributions

Expensing of property taxes,
city planning taxes and othercharges on properties
acquired in the Second PO
and the Third PO

2,500

2,000

2,932

Temporary factors that will occur
only in the 10th fiscal period

2,790

1,500

1,500

1,000

1,000
At第７期
initialnormalised
level（2019年12月期）

At normalised
第８期
level after（2020年6月期）
first PO

At normalised
level after
second PO

At normalised
level after
third PO

7th period
8th period
Estimate at second PO（Note 3） Estimate at third PO（Note 4）(ended December 2019)(ended June 2020)
based on the 9th period
based on the 10th period
Initial estimate（Note 1）
Estimate at first PO（Note 2） (ending December 2020)(ending June 2021)
forecast
forecast

Earnings per unit (EPU)
Note 1:
Note 2:
Note 3:Note 4:Full-period
contribution ofproperties acquired in
the Third PO

-244

2,500

(Yen)

3,500

Falls in expenses related
to the issuance ofinvestment units in the
Third PO and financingrelated expenses, etc.

OPD per unit

第9期(Yen) Estimate

Estimate
at second PO at third PO（2020年

At第３回ＰＯ
normalised
level after
巡航
third
PO

第10期
Estimate
at third PO（2021年612月期）
9th period(ending December 2020)月期）
10th period(ending June 2021)

Earnings per unit (EPU)

OPD per unit

“Initial estimate” is based on Summary of Financial Results for the 5th Fiscal Period Ended December 31, 2018 dated February 18, 2019.
“Estimate at first PO” is based on “Notice Concerning Revision of Forecasts of Operating Results for the Period ending December 31, 2019 and Forecasts of Operating Results for the Period ending June 30, 2020” dated June 27, 2019.
“Estimate at second PO” is based on “Notice Concerning Revision of Forecasts of Operating Results for the Period ending June 30, 2020 and Forecasts of Operating Results for the Period ending December 31, 2020” dated January 7, 2020.
“Estimate at third PO” is based on “Notice Concerning Revision of Forecasts of Operating Results for the Period ending December 31, 2020 and Forecasts of Operating Results for the Period ending June 30, 2021” dated June 29, 2020.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

51. Third Capital Increase by Public Offering and Asset Acquisitions

Realize External Growth that Contributes to Increase in Distributions per Unit
and NAV per Unit

Achieved a higher NAV per unit

LTV is going to reduce to 45.0%
NAV per unit
＋ 3.0％

140,000

133,18050%

129,286
122,212120,000

47.9%

118,187

48%

47.7%

LTV

-0.9％
45.9%
100,000

46%

80,000

44%

First
PO

60,000(Yen)

6th period(ended June 2019)

SecondPO

7th period(ended December 2019)

Third
PO

8th period(ended June 2020)

45.9%
45.4%

45.0%

45.0%

9th period estimate(ending December
2020)

10th period estimate(ending June 2021)

42%
After third PO (Note)

6th period

7th period

8th period(ended June 2019)(ended December
2019)(ended June 2020)

ResultThird PO presentation materials dated June 29, 2020
Summary of financial results dated August 17, 2020.
Note: “NAV per unit” after the third PO is calculated by the equation shown below.
NAV per unit after the third PO = (NAV at end of 8th Period (ended June 30, 2020) + Total issue value + Sum total of appraisal values of newly acquired assets - Sum total of acquisition prices of newly acquired assets) / Total issued and outstanding investment units of CRE-REIT after the Issue

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

61. Third Capital Increase by Public Offering and Asset Acquisitions

Achieve Further Portfolio Diversification through Three Times Capital Increaseby Public Offering after Listing

7 properties at listing

16 properties after acquisition of newly acquired assets
Top 5 tenants

Top 5 tenants
42.7%

67.8%
Tenantdiversification(based onleased area)

Number oftenants

Number oftenants

10

20

19.5%

20.0%

At listing

After acquisition of newly acquired assets

18.2%
18.0%
16.2%
16.0%
14.0%
12.1%
12.0%

Diversificationof lease terms(based onleased area)

10.0%
8.1%

7.9% 7.9%
6.5% 7.4%

8.0%
6.0%

10.4%
9.7%
8.7%

9.7%
7.4%

6.2%

5.5%

5.4%

4.7%

4.2% 4.2%

5.0%

4.7%

4.0%

3.0%

2.9%

1.9%

2.5%

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

2041/122041/62040/62040/122039/62039/122038/62038/122037/62037/122036/62036/122035/122035/62034/62034/122033/62033/122032/62032/122031/62031/122030/62030/122029/62029/122028/62028/122027/62027/122026/62026/122025/62025/122024/62024/122023/62023/122022/62022/122021/62021/122020/60.0%

2020/12

2.0%

7

1. Third Capital Increase by Public Offering and Asset Acquisitions

Newly Acquire Two Properties in Tokyo Metropolitan Area and One Property in Other Area
Locations of Assets Held, Newly Acquired Assets and Pipeline

Portfolio
Newly acquired assets
Exclusive Negotiation
Rights Granted

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

Under Development8

1. Third Capital Increase by Public Offering and Asset Acquisitions

Ensure Same High Quality as that of Existing Portfolio

8th period

After acquisition of
newly acquired assets

Newly acquired assets(2020/6)

13 properties

3 properties

16 properties

Acquisition price

73,675 million yen

17,908 million yen

91,583 million yen

Appraisal value (Estimated value)

78,580 million yen

18,550 million yen

97,130 million yen

Average appraisal NOI yield

4.9 %

4.8 %

4.8 %

Average appraisal NOI yield

3.9 %

3.8 %

3.9 %

Number of properties

after depreciation(Note 1)+

4.0 years

4.8 years

Occupancy rate

100.0 %

100.0 %

100.0 %

Average lease term

8.8 years

7.3 years

8.5 years

Average remaining lease term(Note 3)

5.7 years

7.3 years

6.0 years

16

4

20

100.0 %

100.0 %

100.0 %

Number of tenants
Ratio of properties developed by
CRE(Note 4)

0.6 years=

Average property age(Note 2)

Note 1: “Average appraisal NOI yield after depreciation” is the ratio of the sum total of the appraisal NOI of each asset less forecast depreciation to the sum total of the acquisition price of each asset.
Note 2: “Average property age” indicates the weighted average (rounded to one decimal place) of the ages (refers to number of years from date of registration of new construction of each property in real property register to June 30, 2020) of each asset.
Note 3: “Average remaining lease term” indicates the weighted average of the periods from June 30, 2020 to the expiration date of the lease agreement stipulated in the lease agreement of each asset.
Note 4: “Ratio of properties developed by CRE” is ratio of properties developed by CRE or Commercial RE Co., Ltd. before transfer to CRE.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

91. Third Capital Increase by Public Offering and Asset Acquisitions

Ensure Same High Quality as that of Existing Portfolio

Newly acquired assets

No.

Property nameLocation

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

Total floorarea (m2)Age(years)Numberoftenants

BTS(Note)

Occupancy
ratio(%)

Developer

M-1

LogiSquare Kuki

Kuki-shi, Saitama

9,759

10,3004.8

40,907.13

4.1

1

BTS

100.0

CRE

M-2

LogiSquare Hanyu

Hanyu-shi, Saitama

6,830

7,080

5.0

33,999.61

4.0

1

BTS

100.0

CRE

M-3

LogiSquare Kuki II

Kuki-shi, Saitama

2,079

2,180

5.1

11,511.22

3.4

1

BTS

100.0

CRE

M-4

LogiSquare Urawa Misono

Saitama-shi, Saitama

13,06014,300

4.7

48,738.29

3.3

3

―

100.0

CRE

M-5

LogiSquare Niiza

Niiza-shi, Saitama

6,960

7,390

4.9

25,355.82

3.3

1

―

100.0

CRE

M-6

LogiSquare Moriya

Moriya-shi, Ibaraki

6,157

6,640

5.2

32,904.90

3.2

2

―

100.0

CRE

M-7

LogiSquare Kawagoe

Kawagoe-shi, Saitama

1,490

1,580

5.0

7,542.56

2.4

1

―

100.0

CRE

M-8

LogiSquare Kasukabe

Kasukabe-shi, Saitama

4,900

5,330

5.1

21,315.54

2.1

1

BTS

100.0

CRE

M-9

LogiSquare Soka

Soka-shi, Saitama

8,109

8,600

4.6

28,817.59

7.0

1

―

100.0

CRE

M-10 LogiSquare Yashio

Yashio-shi, Saitama

5,073

5,340

4.6

19,068.60

6.4

1

―

100.0

CRE

M-11 LogiSquare Mizuho A

Mizuho-machi, Tokyo

2,794

2,960

4.9

13,755.16

13.4

1

BTS

100.0

CRE

M-12 LogiSquare Mizuho B

Mizuho-machi, Tokyo

3,584

3,760

4.8

16,016.37

13.4

1

BTS

100.0

CRE

M-13 LogiSquare Ageo

Ageo-shi, Saitama

4,908

4,950

4.7

19,142.84

1.2

2

―

100.0

CRE

M-14 LogiSquare Miyoshi

Miyoshi-machi, Saitama

11,70012,100

4.6

37,931.49

0.1

1

―

100.0

CRE

O-1

LogiSquare Tosu

Tosu-shi, Saga

2,880

3,120

5.2

16,739.40

2.4

1

BTS

100.0

CRE

O-2

LogiSquare Chitose

Chitose-shi, Hokkaido

1,300

1,500

6.5

19,760.00

2.6

1

―

100.0

CRE

91,583

97,130

4.8

393,506.52

4.0

20

―

100.0

―

16 properties Total/Average

Note : “BTS” stands for build-to-suit. It is logistics real estate developed by incorporating a specific company’s demands in its specifications.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

102. Financial Results and Forecasts

LogiSquare Ageo
Many ingenuities have been applied with regard to signs on the property including the use of designs creating a sense of intimacy that visualizes warehouse features such as the effective ceiling height,
floor weightCopyrightcapacity and(C)lighting2020 intensity.
CRE Logistics REIT, Inc. All Rights Reserved.

11

2. Financial Results and Forecasts

Highlights on the 8th Period―Achieved better-than-anticipated results due to stable management
Distributions per unit

NAV per unit
3,086 yen(Compared to forecast: Up 46 yen,
Up 1.5%)8th period Results(2020/6)(2020/6)

9th period Forecasts

129,286 yen(up 7,074 yen, up 5.8%
from 7th period)

3,297yen(2020/12)

10th period Forecasts

3,205 yen(2021/6)
Forecasts
Results 3,297 3,351

8th period
Results

Portfolio

114,936 117,317 118,187
3,297
2,9402,952 2,9903,012 3,040

3,086

122,212129,286

3,205

2,5402,585(Yen) 4th period

5th period

6th period

7th period

8th period(Yen) 4th period 5th period 6th period 7th period 8th period

9th period 10th period

Asset

Debt
8th period(2020/6)

Compared to
7th period

Portfolio size

13 properties 73.6billion yen

Occupancy rate

100.0%

Average remaining
lease term

5.7years

Average property age

4.8years

Ratio of fixed-termleases100.0%

Ratio of fixed-rate rents

100.0%

Equity(2020/6)

Compared to
7th period

35,719 million yen+ 9,000 million yen

8th period

8th period(2020/6)

Compared to
7th period

Appraisal value

78,580 million yen +20,700 million yen

Interest-bearing
debt

Unrealized gains

5,918 million yen+ 1,195 million yen

LTV

45.9%

-1.8%

NAV

Unrealized gains ratio

8.1%

-0.7%

LTV based on
appraisal value

42.7%

-1.3%

NAV per unit

129,286 yen+ 7,074 yen

NOI yield

4.7%

-0.2%

Ratio of fixedinterest debt

100.0%―%

Total number ofinvestment units
outstanding

347,250 units+ 88,000 units

NOI yield after
depreciation

3.7%+ 0.0%

Ratio of long-term
debt

100.0%―%

Repair expense

7 million yen+ 5 million yen

Averageborrowing interest
rate

0.532%+ 0.022%

Capital expenditure0 million yen+ 0 million yen

Net assets per unit

115,329 yen+ 8,324 yen

44,894 million yen + 13,211million yen

One characteristic of logistics facilities is that the ratio of building value to landis typically high, and so depreciation expense tends to be higher than for otherasset classes. Since unrealized gains are the difference between appraisal
value at end of period and book value after deduction of depreciation expense,
CRE-REIT, which holds fairly new properties and has minimal capital
expenditure, tends to record increasing unrealized gains because, at the endof each period, the sum of depreciation expense and any increase in appraisal
value at the end of the period is added to unrealized gains at the end of theprevious period.

Note: As of June 30, 2020, before third capital increase by public offering

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

122. Financial Results and Forecasts

Results for the 8th Period (Ended June 2020)
Unit: million yen

Operating revenues
Leasing expenses (excluding
depreciation)

NOI
Depreciation
Net leasing revenues (NOI Dep.)
General and administrative
expenses, etc.

Difference vs.
Difference vs.
Previous
Forecast
period(C) - (B)(C) - (A)

7th period(2019/12)
Results (A)

8th period(2020/6)
Forecasts (B)

8th period(2020/6)
Results (C)

1,580

2,024

2,030

1

+450

5

+5

254

303

299

2

+44

6

-4

1,325

1,721

1,730

+405

+9

316

364

363

+47

-1

1,009

1,356

1,367

+358

+11

2

• Increase due to 4 properties acquired in the 8th fiscal
period +433
• Full-period contribution of 2 properties acquired in 7th
period +14• Occurrence of insurance claim income +3
Leasing expenses (excluding depreciation) +44• Increase due to 4 properties acquired in the 8th fiscal
period +26• Increase due to the expensing of fixed asset taxes and city
planning taxes on 2 properties acquired in the 7th period+18

3 General and administrative expenses, etc. +35• Increase in asset management fees +35• Non-occurrence of expenses for General Meeting ofUnitholders -2

223

216

828

1,133

1,151

+323

+18

Non-operating income

0

―

0

+0

+0

Non-operating expenses

141

185

181

Ordinary income

687

947

970

+283

+22

<Vs. forecast>
5 Operating revenues +5

Net income

686

946

969

+283

+22

6 Leasing expenses (excluding depreciation) -4

Operating income

4

+40

7

8

-7

<Vs. previous period>
1 Operating revenues +450

181

3

+35

Major factors for difference-3

4 Non-operating expenses +40• Increase in loan-related expenses and interest expenses+29• Increase in amortization of expenses related to issue ofinvestment units +1• Non-occurrence of expenses related to issue of investment
units for first PO -3• Occurrence of expenses related to issue of investment
units for second PO +12• Occurrence of insurance claim income +3• Decrease in repair expenses -3

7 General and administrative expenses, etc. -7• Unused reserve fund -7

Distributions per unit (yen)

3,012

3,040

3,086

+74

+46

8 Non-operating expenses -3

Earnings per unit (yen)

2,647

2,726

2,792

+145

+66

9 OPD per unit

365

314

294

-71

OPD per unit (yen)Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

• Decrease in loan-related expenses and interest expenses-3
Please refer to page 15.

9

-20

13

2. Financial Results and Forecasts

Forecasts for the 9th and 10th Periods (Ending December 2020 and June 2021)
Unit: million yen

Operating revenues
Leasing expenses (excluding
depreciation)

NOI
Depreciation

8th period(2020/6)
Results (A)

9th period(2020/12)
Forecasts (B)Difference(B) - (A)10th period(2021/6)
Forecasts (C)Difference(C) - (B)

2,030

2,589

+558

2,591

+2

299

339

+39

471

+132

• Increased due to 3 newly acquired properties +352
• Full-period contribution of 4 properties acquired in 8th
period +75• Non-occurrence of insurance claim income -3

1,730

2,250

+519

2,119

-130

2 General and administrative expenses, etc. +60

363

459

+96

460

4

+0

Major factors for difference<9th period>
1 Net leasing revenues +422

• Increase in asset management fees +50• Increase in asset custody and administrative service fees
+4

3 Non-operating expenses +42

Net leasing revenues (NOI Dep.)

1,367

1,790

1

+422

1,659

216

276

2

+60

274

1,151

1,513

+362

1,385

-128

Non-operating income

0

―

-0

―

―

Non-operating expenses

181

224

+42

202

Ordinary income

970

1,289

+318

1,182

-106

Net income

969

1,288

+318

1,181

-106

General and administrative
expenses, etc.
Operating income

3

-130

5

6

-2

-21

• Increase in loan-related expenses and interest expenses+43• Increase in amortization of expenses related to issue ofinvestment units +3• Non-occurrence of expenses related to issue of investment
units for second PO -12• Occurrence of expenses related to issue of investment
units for third PO +9<10th period>
4 NOI -130

• Full-period contribution of 3 newly acquired properties +34• Decrease in income due to vacancies -32• Expensing of fixed asset taxes and city planning taxes on 4
properties acquired in the 8th period and 3 properties
newly acquired -102
• Occurrence of leasing expenses -30

5 General and administrative expenses, etc. -2• Decrease in asset management fees -4• Increase in asset custody and administrative service fees+2
• Non-occurrence of expenses related to third PO -2

6 Non-operating expenses -21

Distributions per unit (yen)

3,086

3,297

+211

3,205

-92

Earnings per unit (yen)

2,792

3,042

+250

2,790

-252

294

255

-39

415

OPD per unit (yen)Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

7

7

+160

• Decrease in loan-related expenses and interest expenses-6• Decrease in amortization of expenses related to issue ofinvestment units -4• Non-occurrence of expenses related to issue of investment
units for third PO - 9

7 OPD per unit
Please refer to page 15.

14

2. Financial Results and Forecasts

Comparison between Each Period
4,000* Decreasein OPD

3,500* Decreasein OPD

3,040 Increase
3,000

314

Increase DecreaseinDecrease in nonin nonnet leasing in SGA, operating operating
revenues
etc.
income expenses

+31

+20

+2

-20

3,086

2,000

2,726

-30

294

+10

-39

3,297

OPD per unit on theassumption of surplus
distributions equivalent
to 30% of depreciation
313 yen

-6

-2

-308

+6

* Increasein OPD+160

Decrease in
SGA, etc.

-70

Increase in
net leasing
revenues

2,792

Decrease in
non-operating
expenses

255

+288
-19

2,500

Decrease Increasein nonin nonIncrease in operating operating
SGA, etc.
incomeexpenses

3,205
415

+50
+89

Decrease in
net leasing
revenues
OPD per unit on theassumption of surplus
distributions equivalent
to 30% of depreciation
325 yen

3,042

OPD per unit on theassumption of surplus
distributions equivalent
to 30% of depreciation
326 yen

2,790

1,500

1,000
(Yen)

8th第８期periodEnded Jun. 20202020年6

8th第８期periodEnded Jun. 20202020年6

9th第９期periodEnding Dec. 20202020年1210th
period
第10期
Ending Jun. 2021
2021年6

月期

月期

月期

月期

Forecasts
予想

Forecasts

Results

実績per unit (EPU)
Earnings

OPD per unit

予想

Forecasts
予想

Note 1: Calculated on the assumption that the total number of investment units issued and outstanding at the end of the 8th Period is 347,250 units
and the total number of investment units issued and outstanding at the end of the 9th and 10th Periods is 423,500 units.
Note 2: The components do not add up to the difference between each period because the components are rounded off to the nearest one yen.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

15

3. Growth Strategies

LogiSquareCopyright
Kobe nishi (C)(Property
refusal right)
2020 with
CREfirst
Logistics
REIT, Inc. All Rights Reserved.

16

3. Growth Strategies

Rich Pipeline Enabling Future External Growth
Continue to promote property acquisitions at a reasonable price, aiming for continuous growth in distributions, based on cooperation
with the CRE Group companies
Portfolio after acquisition of
newly acquired properties

Pipeline(Note 1)

8 properties / Total floor area 265,132 ㎡ + α (Property in Fujimino-shi, Saitama)

計画中

16 properties / Total floor area 393,506㎡
Total acquisition price 91.5 billion yen

LogiSquare Kawagoe II(1) June 2019(2) 14,786.36 m2(3) Kawagoe-shi, Saitama

LogiSquare Kobe nishi(1) April 2020(2) 16,049.62 m2(3) Kobe-shi, Hyogo

LogiSquare Sayama
Hidaka (Hanno)(1) June 2020(2) 73,728.44m2(3) Hanno-shi, Saitama

LogiSquare Osaka Katano(1) January 2021
(2) 80,661 m2(3) Katano-shi, Osaka

LogiSquare Miyoshi II(1) March 2021
(2) 18,096 m2(3) Miyoshi-machi, Saitama

LogiSquare Hirakata(1) TBD(2) 44,730 m2(3) Hirakata-shi, Osaka

new!

計画中

Name TBD(1) From 2022
(2) TBD (Site: 123,389 m2)(3) Fujimino-shi, Saitama

As a general rule, CRE-REIT is given the opportunity to acquire all
logistics facilities developed and owned by CRE(Note 2)

LogiSquare Kuki

LogiSquare Hanyu

LogiSquare Kuki II

LogiSquare Urawa Misono

LogiSquare Niiza

LogiSquare Moriya

LogiSquare Tosu

LogiSquare Kawagoe

LogiSquare Kasukabe

LogiSquare Soka

LogiSquare Yashio

LogiSquare Mizuho A

LogiSquare Mizuho B

LogiSquare Ageo

LogiSquare Miyoshi(1) Completion month and year
(planned)(2) Total area (planned)(3) Location
Newly acquired assets
Properties with first refusal
right

LogiSquare Chitose

Suminoe Logistics Center(1) January 1992
(2) 17,081.16 m2(3) Osaka-shi, Osaka

Note 1: As of August 17, 2020, CRE-REIT has not engaged in specific negotiations with the CRE Group companies on this pipeline, nor does it have any plan to acquire them at the present time or guarantee future acquisition. This slide shows the pipeline
as of August 17, 2020 but first refusal rights will be granted at any time on other properties besides these properties and CRE Group companies will proceed at any time with the development of other properties besides these properties.
Note 2: Unless the grounds for exclusion from application stipulated in the Sponsor Support Agreement apply.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

17

3. Growth Strategies

The Investment Corporation’s Approach to Property Acquisitions/CRE’s Approach toProperty Sales and Development
The Investment Corporation’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.
All from the first to the third capital increases by public offering, CRE acquired properties at a NOI cap above the implied cap rate and upheld the above prerequisite. CRE-REITplans to maintain this approach moving forward.

• Achieve flexible external growth, taking investment unit price into consideration, including utilizing the bridge function.
CRE-REIT acquired three properties from leasing company at IPO and one property from leasing company at first capital increase by public offering. The timing of the Sponsor’s
property sales and the REIT’s acquisitions can be adjusted.

• Acquisition of medium-sized properties and acquisition of quasi co-ownership interests using funds on hand is also possible.
Available to invest to the properties with total floor area of 5,000m 2 or larger and the acquisition of properties ranging from several hundred million yen to several billion yen ispossible using retained funds on hand from accumulated depreciation.

• Achieve medium-term asset size target of 100 billion yen alongside improvement in unitholder value rather than focusing on early
achievement.
Take investment unit price into consideration when achieving target asset size two or three years after listing stated in materials for Financial Results Briefing for the 4th Period(June 2018), rather than focusing on early achievement as stated above.

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 Management Company is involved from the time ofsite acquisition to implement development with discipline
Leasing
Development• Grow asset management business into second pillar of stockbusiness.
Asset Management• Continuously earn asset management fees and property
management fees by selling properties developed by CRE to CREREIT.

Construction
Management
Leasing

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

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

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

Appropriate cost control
Attraction of tenants

Generation of higher profits than planned18

3. Growth Strategies

Cash Management Aiming to Maximize and Level Distributions

Approach to the use of funds on hand

Effects by acquiring properties only withfunds on hand
Estimate of an increase in distribution per unit (yen)ＮＯＩ yield

4.6%

4.7%

4.8%

4.9%

5.0%

1,200

51

52

53

55

56

1,300

54

56

57

59

60

1,400

59

61

63

64

66

1,500

63

65

67

68

70

1,600

67

69

71

73

74

1,700

72

74

76

78

80

Consider the following choices, in addition to use
for capital expenditure.

1. Appropriation of some funds to acquire
properties at the time of capital increase

460 million
yen per
period

2. Acquisition of properties (quasi coownership interests, etc.) during theperiod, with funds on hand as source
3. Repayment of loans payable

Conduct ongoingsurplus cash
distributions
equivalent to 30%
of depreciation.

Operate OPD within the range
equivalent to 30% of distribution
which is more flexible than previous
30% flat operations to equalize
distributions

Acquisition price (million yen)

Depreciation

Note: Calculated on the assumption that the total number of investment units outstanding is 423,500.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

19

3. Growth Strategies

Promote Reduction of LTV, Borrowing from New Lenders, Long-term Debt andDistribution of Repayment Dates
Promotion of long-term debt and distribution of repayment dates

Borrowing from two new lenders
Bank Formation after the Borrowing

Existing loans

The Borrowing (Note 1)

Refinancing of loans on July 31, 2020

10,000

7,100

8,000

5,600

6,000
4,000

3,700

1,750

2,000

1,150

3,824 3,680
3,680
3,680
3,105
2,900
250
2,400

3,400
2,550

3,574

new!
new!
Shinsei Bank, The Hyakujushi
The Bank ofBank, Ltd.
LimitedFukuoka, Ltd.
1.1%
1.1%
3.0%
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
5.6%
Banking Corporation
MUFG Bank, Ltd.
24.2%
9.6%
The Nishi-Nippon
City Bank, Ltd.
9.9%
Mizuho Bank,
Ltd.
20.4%

600

0
(Million yen) 2020/12

2021/62021/122022/62022/122023/62023/122024/62024/122025/62025/122026/62026/12Reduce LTV to 45.0%

Interest-bearing debt

8th period

After the Borrowing(2020/6)(as of July 31, 2020)

35,719 million yen

43,669 million yen

45.9 %

Ratio of fixed interest debt
Ratio of long-term debt(Note 2)

Note 1:
Note 2:
Note 3:Development Bank ofJapan Inc.
13.7%

Approach to Liabilities

LTV

Average borrowing interest
rate
Average life of interestbearing debt(Note 3)

Resona Bank,
Limited.
11.3%

2027/610th period

Difference+ 7,950 million yen

45.0 %- 0.9 %

100.0 %

95.4 %- 4.6 %

100.0 %

96.0 %- 4.0 %

0.532 %

0.552 %

+ 0.020 %2.8 years

3.7 years+ 0.9 years

estimate•

CRE-REIT’s LTV is set at around 45% andthe upper limit of LTV is 50% in principle.

•

The above level is slightly higher than that ofother logistics REITs but since cash flow is
stable due to long-term contracts, CREREIT has the option to make effective use ofloans.

•

CRE-REIT conducts financial operations
with emphasis on long-term stability bytaking out long-term loans with fixed interest
rates.

“The Borrowing” refers to borrowing executed on July 13, 2020 to finance the acquisition of the newly acquired assets and expenses incidental thereto ,the repayment of a loan that fell due on July 31, 2020 and borrowing executed on July
31, 2020 for such repayment.
Current portion of long-term debt is included in long-term debt.
“Average life of interest-bearing debt” is calculated by finding the weighted average life based on the balance of each interest-bearing debt over the period from July 31, 2020 to the repayment date of each interest-bearing debt.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

20

3. Growth Strategies

Acquired A- Rating from R&I, Enabling the Issuance of Green Bonds.

Acquired A- rating from R&I.
• March 31, 2020 Rating acquired.

More than 90% of the portfolio assets aregreen qualifying assets.(Note)
Percentage of properties that have acquired an environmental certification.

Green qualifying assets

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

A- (Stable)

Have not beencertified
7.0%

14 properties 85.2 billion yen

Key reasons for the rating(1) High-quality portfolio composed of competitive and relatively new
logistics facilities(2) Outlook for the clear expansion of the portfolio size based on thesponsor pipeline(3) Conservative financial operation policy
Source: Prepared by the Asset Management Company based on the R&I news release on March 31, 2020.

Acquired the highest rating in the green finance framework.
• June 5, 2020

Submitted the shelf registration statement of the Investment Corporation.

• June 26, 2020

Acquired Green 1 (F), the highest rating within the JCR Green Finance
Framework Evaluation, an evaluation under the green finance framework
formulated by the Investment Corporation from Japan Credit Rating
Agency, Inc. (JCR).

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

Acquired either or both
BELS and CASBEE.
93.0%

Note: Green qualifying assets are assets that satisfy certain eligibility criteria. The eligibility criteria forthe green qualifying assets of the Investment Corporation are as follows, and properties that haveacquired or updated or will acquire or update any of the relevant certifications are green
qualifying assets.
- DBJ Green Building certification: four or five stars- BELS: four or five stars- CASBEE: rank S or A

21

3. Growth Strategies

Promoting ESG Efforts ― Environment (1)80% of properties have acquired BELS and/or CASBEE certification (based on acquisition price).
Property name

BELS

CASBEE

Installation of Solar Panels

CRE-REIT leases roof top
space and the lessees
contribute to the creation ofrenewable energy throughphotovoltaic power generation.

M-1 LogiSquare Kuki
M-2 LogiSquare Hanyu
M-3 LogiSquare Kuki II

M-4 LogiSquare Urawa MisonoM-5 LogiSquare Niiza
M-6 LogiSquare Moriya
M-7 LogiSquare Kawagoe
M-8 LogiSquare Kasukabe
M-9 LogiSquare Soka
M-10 LogiSquare Yashio
M-11 LogiSquare Mizuho A

Newly acquired
assetsM-12 LogiSquare Mizuho B
M-13 LogiSquare Ageo
M-14 LogiSquare Miyoshi
O-1 LogiSquare Tosu
O-2 LogiSquare ChitoseRate(based on acquisition price)

★★★★★
★★★★★
★★★★★
★★★★★
★★★★★
★★★★★
★★★★
★★★★★
―
―
―
―
★★★★★
★★★★★
★★★★★
★★★★★

All the properties use sandwich
panels with outstanding design
and a high heat insulating effectfor their exterior walls to reduce
the thermal load when
refrigerating and heating
equipment is installed.

The use of LED lights contributes
not only to energy savings and the
reduction of CO2, but also the
reduction of electric bills, which are
to be paid by tenants, along withthe replacement cost of lighting
and an improvement in theworking environment.

―

○
○
○
○
○
○
○
○
○
○
―
―
○
○
○
○

80.1%

72.6%

93.0%

Saitama Prefecture Rank B+
Saitama Prefecture Rank A

Saitama Prefecture Rank A
Saitama Prefecture Rank A――
Saitama Prefecture Rank A
Saitama Prefecture Rank A
Saitama Prefecture Rank A――
Saitama Prefecture Rank A
Saitama Prefecture Rank A

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

LED Lights

○
○
○
―
○
○
―
○
○
○
―
―
○
○
―
―

Saitama Prefecture Rank A

78.6%

Sandwich Panels

―

○
○
○
○
○
○
○
○
―
―
―
―
○
○
○
○

78.6%

22

3. Growth Strategies

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

Installation of human detecting
sensors

Installation of water-saving
sanitation appliances

Ensure a part of the electricity consumed in
facilities from electricity generated by solar
power. This can also be used as emergency
power, contributing to tenant’s BCP measures.

Promote energy saving by installing humandetecting sensors in facilities.

Promote the reduction of water usage by
installing sanitation appliances with highperformance in the reduction of water usage.

Installation of roof watering
equipment
Contribute to the reduction of temperaturesinside warehouses by installing roof watering
equipment using well water.

Wall greening
Wall greening has the effect of lowering thesurface temperature of buildings andcontributes to the reduction of CO2 in theatmosphere.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

Soil contamination
countermeasures
Enbio Holdings, Inc., a CRE group company,
revitalizes old factory sites, etc. as land forthe development of logistics facilities byactively utilizing in-situ cleaning methods that
decompose underground contaminants
without excavating contaminated soil.

23

3. Growth Strategies

Promoting ESG Efforts ― Social
Improving amenities and the business continuity of tenants

Efforts for officers and employees• Support for BCP measures• Support for skill development- Hold logistics facilities in inland areas with low risk of liquefaction.
- 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 disconnectors in automatic fire alarms to prevent the spreadof fires.

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

- Encourage them to acquire qualifications by paying for expenses andgift money for the acquisition of qualifications.
License holders (including those that have passed examinations)
Qualification name

Percentage staff holding the qualificationor having passed the exam (Note)

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

77.8%
77.8%
33.3%
11.1%

Note: Calculated with the 9 people involved in the operation of the Investment Corporation (as ofthe end of June 2020) as the denominator.

• Improvement of the work environment- Refresh and expand the work space with the relocation of offices.
- Introduce staggered commuting and working from home as a measure
to control COVID-19.
- The president has 1 on 1 meeting with all employees quarterly.

Active sharing of information with 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- Promote the same dialogue as in normal times with overseas
investors and regional financial institutions by holding 24 conference
calls from March to May 2020.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

- Create an endowed chair at Sophia University
for the purpose of cultivating human resourcesthat will engage in logistics and supply chain
management in the future.
- Cooperate in government excavation work and record retention and in theholding of study tours and briefings when developing logistics facilities.
- Hold a CRE forum for the purpose of sharing logistics issues faced bycompanies.

• Install fire cisterns able to provide tap water that can be used to fightfires.
• Cooperate with traffic restrictions for the Saitama International
Marathon.

24

3. Growth Strategies

Promoting ESG Efforts ― GovernanceHolding of investment units by officers and employees of theAsset Management Company

Independence of the Asset Management Company• President of sponsor hold units of CRE-REIT. Almost all officers and employees of
the Asset Management Company hold investment units of CRE-REIT based on a
cumulative investment system and internal regulations.

Title
CRE

the Asset
Management
Company

Units held

Name

Category(Note)

Representative Director
Tadahide Kameyama
and President

722 units

Representative Director
Tsuyoshi Ito
and President

1,110 units

Takeshi Oka

59 units

Managing Director• Given that the Asset Management Company was established as anindependent asset management company, all its members are proper
employees and CRE is not involved in their recruitment or personnel evaluation.

Standing directors

2

Employees

10(Of which, employees temporarily transferredfrom CRE)

9 out of 10 employees hold investment units

―

12

Total

Note: As of June 30, 2020. Nine employees of the Asset Management Company hold a total of 118 investment units, as of June 30, 2020.
Also, the number of each holding unit is rounded down to the nearest unit.

Number of
persons

Note: As of June 30, 2020

Revision of asset management fee structure more aligned with unitholder interests
Before Changes

After Changes

Management
fee 1

Total assets  0.4% (Upper limit)

ReduceTotal assets  0.325% (Upper limit)

Management
fee 2Income before income taxes 
5.0% (Upper limit)

ReduceIncome before income taxes 
4.0% (Upper limit)

Management
fee 3

―

Newly
establish

Earnings per unit  10,000

Fee onacquisition

Fee on sale

Acquisition cost  1.0% (Upper limit)

Acquisition cost  1.0% (Upper limit)(0.5% (Upper limit) in case of transactions withinterested party)(0.5% (Upper limit) in case of transactions
with interested party)

Sale price  0.5% (Upper limit)

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

Repeal―• Amend Articles of Incorporation at the General
Meeting of Unitholders held on September 27,
2019 and revise fee structure from the Period
ending June 2020.
• Introduce fee structure more aligned withunitholder interests by decreasing management
fees based on total assets and income before
income taxes and establishing a new
management fee based on earnings per unit toincrease linkage with earnings per unit.
• Repeal fee on sale to prevent fee being charged
even in the case of the sale of property that is
detrimental to the interests of unitholders becausea loss on sale is recognized.

25

4. Characteristics of CRE Logistics REIT, Inc.

LogiSquare Ageo
This property
faces convenientRouteand is expectedthat Allthe Rights
convenience
will be further improved by the plan to extend the metropolitan expressway from Yono IC to close to this LogiSquare Ageo.
Copyright(C) 2020
CRE17Logistics
REIT, Inc.
Reserved.

26

4. Characteristics of CRE Logistics REIT, Inc.

Character-istics

Characteristics/Advantages of CRE-REIT
1. Portfolio focused on LogiSquare

2. Long-term, stable asset management

3. Distinct external growth strategy

High-quality portfolio(1) Stable cash flow

(2) Long-term contracts withdiverse tenants(3) Good location

Occupancy rate

Ratio of fixed-term leases

Ratio of fixed-rate rents

100.0%

100.0%

100.0%

Average lease contract term

Average remaining lease term

8.5 years

6.0 years

Ratio of single-tenantfacilities

Ratio of Tokyo Metropolitan Area

Average mileage
to interchange

Within 10 mins’ walk of
public transportation

3.2 km96.3%

Leasing by CRE on its own

Holding of private viewings, including
for other listed REITs

95.4%

73.7%

Advantages

Sponsor is real estate company specializing in logistics properties(Note 1)(1) Leasing capability(2) Property management (PM)capability(3) Development capability

Companies that have concluded
lease contracts with CRE directly

1,100 companies
Managed floor area

1,581 properties 4,920,000m2

141 properties
PM entrusted by othercompanies(Note 2)
Approx.７0%

PM entrusted by other listed REITs

1,020,000 m2• Tenant requirements obtained 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 consideration into investment unit price• Able to utilize bridge function. Already acquired three properties at IPO and one property at the first capital increase by public offering by utilizing thebridge function.
• Also able to acquire mid-sized properties and quasi-co-ownership interests using cash on hand.
• Already secured pipeline of 8properties with total floor area of 260,000 m2 +α.
Note 1: As of the end of July 2019. 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.
Note 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 other listed logistics REITs and private funds, etc.) as a ratio of the total area managed by CRE.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

27

4. Characteristics of CRE Logistics REIT, Inc.

High-quality Portfolio (1) Stable cash flow
Form of contract that enables stable operation••

Inclusion of relatively new properties

Tenants who cancel early before the end of the contract term are required to pay the equivalent ofrent for the whole remaining lease term as a penalty for breach of contract.
Intention for renewal or termination is ascertained a year before contract expiry.

Ratio of fixed-term lease contracts

Average age

Ratio of fixed-rate rents

Less than
3 years
29.7%

10 years or more
7.0%
5 years or more but
less than 10 years
14.4%

Ratio of fixedterm lease
contracts

Ratio of fixedrate rents

Average age

4.0 years

100.0%

100.0%

3 years or more but
less than 5 years
49.0%

Repair expenses and capital expenditure remain at a low level•

The existing portfolio consists of relatively new properties and, partly thanks to appropriate property management by CRE, which provides property management services foreach property, repair expenses and capital expenditure have remained at a low level until the end of fiscal period ended June 2020.

Repair Expenses

Capital Expenditure
Forecast

Result20,00010,60010,000

2,000

1,412

7,134
2,200
972

2,600
869

2,100
746

3,260
1,151

4th period(2018/6)

5th period(2018/12)

6th period(2019/6)

7th period(2019/12)

682

1,000

―

―

―

―

―

―

―

352

0

0
(Thousand yen)

Ruesult

3,000

15,0005,000

Forecast

8th period(2020/6)

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

(Thousand yen)

4th period(2018/6)

5th period(2018/12)

6th period(2019/6)

7th period(2019/12)

8th period(2020/6)28

4. Characteristics of CRE Logistics REIT, Inc.

High-quality Portfolio (2) Long-term lease contracts

Long-term and single use contracts have conducted as the properties met the tenant’s requirementsof dedicated centers.
Average lease contract term

Average remaining lease termLess than 5 years
7.6%

10 years or more
3.7%

Tenant composition

Multi-tenant
26.3%
Less than
5 years
30.0%

Average

8.5 years
10 years or more
55.8%

5 years or more andless than 10 years
36.6%

5 years or more andless than 10 years
66.3%

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

Average

Exclusive usage

6.0 years

73.7%
Exclusive
usage
73.7%

29

4. Characteristics of CRE Logistics REIT, Inc.

High-quality Portfolio (3) Good location
Properties are mostly in locations suited to logistics facilities where strong demand is expected, withtenants’ need to secure labor also taken into consideration.
Ratio in Tokyo Metropolitan Area
Outside Tokyo
Metropolitan Area
4.6%

Over 5 km
12.3%

Ratio in Tokyo
Metropolitan
Area

95.4%

Time required from public transportation
facilities

Mileage to an interchange

Over 3 km
and less than 5 km
15.3%

Less than 1 km
27.0%

Walk more than 10 mins
3.7%

Walk within
10 mins

Average

3.2 kmTokyo
Metropolitan
Area
95.4%

96.3%
Over 1 km
and less than 3 km
45.4%

Walk
within 10 mins
96.3%

Example: LogiSquare Urawa Misono
The property is located approximately 700 m from Urawa IC (Tohoku Expressway) and approximately 450 m and a six-minute 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 allow a close proximity between work and the home and be a potential
advantage in securing employee.

Urawa IC

700 m

450 m
6 mins walk

Urawa Misono Station

LogiSquare Urawa Misono
Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

30

4. Characteristics of CRE Logistics REIT, Inc.

High-quality Portfolio (4) Competitive Advantage of Mid-sized Facilities
Many enterprises want to share a mid-sized logistic facility with a small number of other tenants and there is strong tenant demand forthe logistics facilities developed by CRE.
Usage area per logistics base in the Tokyo
Metropolitan Area
Approximately 80% of logistics bases used byconsignors or logistics operators in the Tokyo
Metropolitan Area are less than 16,500 m2 in sitearea(Note 1).

1

2

Approximately 75% prefer exclusive usage offacilities with up to 2 other tenants if they are to leaselogistics facilities in the future.
Prefer multi-tenant facility(with over 3 other tenants)
25%

4% 3%
Less than 3,300 m2

11%
41%
21%

20%

3

Desirable tenant mix

Basically prefer
exclusive
usage, but accept
1 or 2 other tenants
51%

Flexibility in terms ofusage and layout

73%

Necessity of enhanced
information management
and security system

39%

Availability of long-termlease contract

38%

75% prefer single tenancy
n＝145 companies
Source: Sumitomo Mitsui Trust Research Institute Co., Ltd.

n = 655 buildings
Source: Sumitomo Mitsui Trust Research Institute Co., Ltd.

4

Respondents who prefer single-tenant facilities quoted
the flexibility in terms of usage and layout, the necessityof enhanced information management and security
system, and the availability of long-term lease contract.

Prefer exclusive usage(single-tenant facility)
24%

Over 3,300 m2 less than
9,900 m2
Over 9,900 m2 less than
16,500 m2
Over 16,500 m2 less than
33,000 m2
Over 33,000 m2 less than
50,000 m2
Over 50,000 m2

Approximately 80% of logistics bases usedhave site area less than 16,500 m2

Reason for selecting single-tenant facilityn = 94 companies
Source: Sumitomo Mitsui Trust Research Institute Co., Ltd.

Vacancy rate per facility size in the Tokyo Metropolitan Area
Generally, logistics facilities with an area of less than 50,000 m2 have lower vacancy rates than multi-tenant logistics facilities with an area over 50,000 m2(Note 2),
suggesting a high level of demand.
20%
Over 50,000 sq.m. multi tenant typeLess than 50,000 sq.m.

15%
10%
5%
0%
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: CBRE K.K
Note 1: Figures calculated based on a survey conducted by Sumitomo Mitsui Trust Research Institute Co., Ltd. from August to September 2017 (hereinafter the “Survey”) are presented. In the Survey, a questionnaire was sent to 3,022 shipping andlogistics companies, and the answers obtained from 199 companies are aggregated. Hereinafter the same applies to statements sourced by the surveys of Sumitomo Mitsui Trust Research Institute Co., Ltd. in this material.
Note 2: “Multi tenant-type” in “Vacancy rate per facility size in the Tokyo Metropolitan Area” refers to logistics facilities that were planned and designed on the premise of being used by multiple tenants at the development stage in principle.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

31

4. 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.

Wooden deck
LogiSquare Urawa Misono

Bicycle parking

0

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.

Rest area with wooden deck

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) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

32

4. 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 reduce 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 mThe facility has an effective
ceiling height of 6.0 m, or
5.5 m if cooling panels are
installed.

10.35 mFloor loading 1.5 t/m2
LogiSquare Urawa MisonoInternal 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.

To help reduce 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.

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) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

33

4. Characteristics of CRE Logistics REIT, Inc.

Sponsor is Real Estate Company Specializing in Logistics Properties
CRE, which sponsors CRE-REIT, 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
Small- and medium-sized warehouse asset utilization proposals / 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

Established in 20062014:
Acquisition

2020:
Absorption-type merger

Involvement of All Employees in Logistics Properties

Proven Track Record in Providing Services to Other Companies(Note)

Number of employees on a consolidated basis (as of July 31, 2019)

CRE-REIT can draw on knowhow gained through management of 4,920,000 m 2

Property Management: 25
Leasing: 24
Construction/Design: 28

159

Management ofproperties held by othercompanies: 3,210,000 m2

Master lease
Area managed
30%
1,581 properties
Property management

11
21
27

CRE-REIT
5%
Other listed REITs
21%

4,920,000 m2

Logistics investment
Asset management
Administration

Private fund, etc.
44%

Total 218
Source: Prepared by the Asset Management Company based on Annual Report for Fiscal 2019 of CRE, Inc.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

Note : As of July 31, 2019. Includes results under property management and master lease agreements forproperties other than logistics-related facilities.

34

4. Characteristics of CRE Logistics REIT, Inc.

CRE’s Leasing Capability―Accumulation of Information Through Many Leasing Opportunities
Instantly understands rent trends, including actual rents paid
and rent increases and decreases, through the conclusion ofcontracts directly with diverse tenants not just logistics service
providers.
•

CRE can gain an understanding of rent levels by entering contracts
with tenants directly as master tenant under a master leasearrangement•

CRE builds relationships with tenants from a variety of industries not
only logistics operators.

Publication of LogiSquare Market Report
Every quarter, CRE publishes a report summarizing market trends in major areas, with afocus on large rental logistics facilities (10,000 m2 or larger). Besides information onlarge logistics facilities, the report also includes information on small and medium-sized
rental logistics facilities (less than 3,300 m 2/only those managed by CRE) based on
CRE’s database of master lease properties.

Total Number of Master Lease Tenants(Note)
Other
Transportation
services

Customer services
Corporation services

Publication of LogiSquare Map (map of large logistics facilities)
Total Number ofMaster Lease Tenants

Retail

Map showing major large rental logistics facilities that have been built over the past 10
years or are planned for development. Published once a year.

1,100 companies
Whole sale
Real estate andconstruction

Manufacturing

Around 70% of tenants are
not logistics operators

Note: As of July 31, 2019. Includes tenants of properties other than logistics-related facilities.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

35

4. Characteristics of CRE Logistics REIT, Inc.

CRE’s Management Capability―Diverse Customers Including Other Listed REITs
Management of Properties for Other Listed REITs, Private Funds, etc.
Major Customers(Note 1)• LaSalle LOGIPORT REIT

• Ichigo Estate• Star Asia Investment Corporation• Yamato Home Convenience Co. Ltd.

• Kenedix Retail REIT Corporation• TAKARA-SANGYO Co., Ltd.

• United Urban Investment Corporation• Tokyu Land Capital Management Inc.

• Japan Logistics Fund, Inc.

• UIG Asset Management Co., Ltd.

• Industrial & Infrastructure Fund Investment
Corporation• UNIVERSE DEVELOPMENT Co., Ltd.

• Mitsubishi Estate Logistics REIT Investment
Corporation• Strategic Partners Co., Ltd..

• Daiwa House REIT Investment Corporation• CRE REIT Advisers, Inc.

Ranks Second Among Logistics Facilities-centered PM
companies(Note 1)

6

5.6

4.9

5

4.3

(No particular order)• CRE Logistics REIT, Inc.

4.0

4

• LaSalle Investment Management• Takara Asset Management Co., Ltd.

3

• Diamond Realty Management Inc.
• ESR LTD.
• Kokyo Asset Management Co., Ltd.

2

• Sumisho Realty Management Co., Ltd.
• Challenger Limited

0.9

1• Morgan Stanley Capital K.K.
• Daiei Real Estate & Development Co., Ltd.
• Real Link International Investment Advisors,Inc.
• Tozai Asset Management Co., Ltd.
• Mitsui & Co., Realty Management Ltd.

0(Million m2)

GLP

Prologis

Daiwa
SG Realty
House
Property
Management• IDERA Capital Management Ltd.
• Mitsubishi Jisho Investment Advisors, Inc• FORTRESS INVESTMENT GROUP JAPANSource:Prepared by the Asset Management Company based on Monthly Property Management magazine (November
2019 edition).
Note 1: “Logistics facilities-centered PM companies” refer to property management companies with 70% or more of their
entrusted areas those of logistics facilities. “Entrusted areas” include the management areas of real estate otherthan logistics facilities.
Note 2:In company names, Co., Ltd., Inc., etc. is omitted.

Source:: CRE Inc.’s Summary of Financial Statements for the First three Quarters of the Fiscal Year Ending July 31, 2020.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

36

4. Characteristics of CRE Logistics REIT, Inc.

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

Location+

Basic
Specification+

Expandability+

Comfort+Tenant’s unique requirements

Improvement of Convenience Through Full Reflection of 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) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

37

4. Characteristics of CRE Logistics REIT, Inc.

CRE’s Development Capability―Development Giving Tenant Convenience Highest Priority
Development based on optimal plan for characteristics of location, giving tenant convenience the highest priority
Low-type

Slope-type

Box-type

For tenants that attach importance to operational
efficiency

For tenants who attach importance to location andoperational efficiency

For tenants who attach importance to storage
function

Facility with one or two floors for more convenient loading
and unloading.
Ideal for both storage and distribution and suited to tenants
who attach importance to operational efficiency.

Facility situated in location with strong tenant demand andhaving three or four floors to utilize the floor-area ratio.
Facility also has a slope, enabling trucks to access thethird floors directly and allowing them to be used in same
way as the first and second floors.
Ideal for both storage and distribution and suited to tenants
who attach importance to both location and operational
efficiency.

Facility in strategic location with strong tenant demand andclose to city center and having three or four floors to utilize
the floor-area ratio.
Ideal for storage, which is standard function for a logistic
facility, and suited to tenants who attach importance tostorage of personal items.

Example: LogiSquare Hanyu

Example: LogiSquare Urawa Misono

Example: LogiSquare Niiza

2 floors
Truck berths on bothsides of first floor

The facility is designed to direct vehicles to move in one direction,with separate entrance and exit gates.

4 floors
Truck berths on one side offirst and third floors

The facility is designed to separate traffic flows and equipped withdedicated gates for the first/second floor tenants and thethird/fourth floor tenants, respectively.

Storage space on three floors
Truck berths on one side of first floor

The facility is designed to direct vehicles to move in one direction,with separate entrance and exit gates.

All facility types are designed to prevent congestion and accidents.
Traffic flow
Truck berths

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

38

4. Characteristics of CRE Logistics REIT, Inc.

CRE’s Development Capability

Cumulative total floor area

―Development Since the Start of Real Estate Securitization in Japan

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

Assets owned by CRE-REIT

Newly acquired assets

Properties with first refusal right

CRE has been developing logistics properties since real estate securitization started in Japan and has built up
knowhow on the development of properties suitable for REITs.
Track record of development of 33 properties and around 700,000 m2
LogiSquare Kobe Nishi

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 Sayama Hidaka (Hanno)

LogiSquare Miyoshi

LogiSquare Miyoshi II

LogiSquare Osaka Katano

900
LogiSquare Mizuho A

LogiSquare Yachiyo

802

800

704
700

LogiSquare Mizuho B

LogiSquare Kazo II

LogiSquare Tosu II

LogiSquare Kuki

600
LogiSquare Matsuzaki I

LogiSquare Ichikawa-tajiri

LogiSquare Sagamihara

LogiSquare Soka

LogiSquare Yashio

LogiSquare Hidaka

LogiSquare Hanyu

477

500
400

LogiSquare Tosu I

LogiSquare Matsuzaki II

300
Yokohama Fukuura Logistics Center

200

118

100

167
49

220
53

248
29

267
19

65

119

358

LogiSquare Tokorozawa

128

283
16

75

FP2015/7

FP2016/7

LogiSquare Kazo I

80

FP2006/3(Thousand m2)

Timing of listingof logistics
REITs

Note:

576
34

542

99

110
FP2007/3

May 2005

FP2008/3

FP2009/3

FP2013/7

Dec. 2012

Listing of first REIT specializing
in logistics facilities

FP2014/7

Feb. 2013

FP2017/7

Feb. 2016 Aug. 2016

FP2018/7

Sep. 2017

FP2019/7

Feb. 2018

Sep. 2018

FP2020/7

FP2021/7(Plan)

Dec. 2019

CRE-REIT listed

While the above also includes other assets besides portfolio assets, 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 also includes properties that have already been sold to third parties. Furthermore, with respect to properties to be developed by CRE (planned), as of August 17, 2020, development is not complete and theconceptional drawing, total floor area and development completion timing are based on plans as of August 17, 2020 and may change in the future. The building completion dates of the above properties are stated as the development completion dates.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

39

5. Market Environment

LogiSquare Ageo
CRE-REIT leases
roof top
lessees contribute
theRights
creationof renewable energy through photovoltaic power generation.
Copyright(C) space2020 and
CREtheLogistics
REIT, Inc.toAll
Reserved.

40

5. Market Environment

Summary of Market Trends
Recent Market Trends

Vacancy rate: 0.43% QoQ: Slightly Deteriorated (+ 0.02pt)

Tokyo Metropolitan Area
Pages 42 and 43

Both of new supplies and demands continue to be high.
Vacancy rate: 3.71% QoQ: Deteriorated (+ 1.65pt)

Osaka Area
Page 42

Activity of both of new supplies and demands significantly increased.

Rising Demand for Rental Logistics Facilities(1) Reconstruction Demand for
Logistics Facilities

Around 30% of logistics facilities in the Tokyo Metropolitan Area are 40 to 50 years old.
Page 44

3PL Market Size

EC Market Size/EC Ratio

2009(2) Expansion of 3PL Market and EC
Market2018

3.0 trillion yen
1.2 trillion yen
2.4-fold increase2010

19.4 trillion yen
7.8 trillion yen
2.5-fold increasein 9 years

Page 46

in 9 years

2.8%

Page 45(3) Rising Importance of Logistics
Network Strategy

2019

6.8%

The most important cost reduction measure to be implemented is a
restructuring of logistics facilities.

Note: Please refer to the notes on each page from 42 to 46 page for the definition of each calculation method of each figure.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

41

5. Market Environment

Market Trends(1) Tokyo Metropolitan Area and Osaka Area (from LogiSquare Market Report)
Tokyo Metropolitan Area
Both of new supplies and demands continue to be high.

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

Vacancy rate: 0.43% QoQ: Slightly Deteriorated

The vacancy rate increased 0.02 points from the previous Q to 0.43%.In 2020CY, both of supplies and demands
remained high despite some decrease in new supplies from 2019CY, when supplies were at a record high since thesurvey started. In 2020CY 2Q, new supplies with approx. 140,000 tsubo and existing approx. 9,000 tsubo were almost all
digested. New supplies with approx. 88,000 tsubo are scheduled for 3Q and approx. 158,000 tsubo is scheduled for 4Q.
While 30,000 tsubo for 3Q are yet to be digested, leasing is in progress and approx. 50% of supplies for 4Q havereportedly been reserved. The low vacancy rate is likely to be maintained for the time being.
Currently, new supplies with approx. 760,000 tsubo are scheduled for 2021CY. Activity in the Tokyo metropolitan area
remains high.
2,000

10%

8%

1,500

6%
1,000
4%
500

2%

0

0%

(Ten thousand m2)

Total area

Vacant area

Vacancy rate

Osaka Area
Activity of both of new supplies and demands significantly increased.

Vacancy rate: 3.71% QoQ: Deteriorated

As mentioned for the previous Q, the vacancy rate was 3.71%, an increase of 1.65 points from the previous Q. New
supplies that decreased continuously began increasing in 2020CY. New supplies with approx. 127,000 tsubo, thelargest since the survey started, were provided in 2Q of 2020CY. New demand was approx. 95,000 tsubo, equivalent tofive times of that in the previous Q.
New supplies of approx. 26,000 tsubo for 3Q and approx. 25,000 tsubo for 4Q are scheduled, all of which havereportedly been reserved. The vacancy rate is expected to be on a decreasing trend for a while. New supplies ofapprox. 230,000 tsubo are scheduled for 2021CY. Reservation trends will be monitored from an early stage.
600

20%

500

15%
400
300

10%

200
5%
100
0

0%

(Ten thousand m2)

Total area

Vacant area

Vacancy rate

Source: Prepared by the Asset Management Company based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2020” of CRE, Inc.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

42

5. Market Environment

Market Trends(2) Individual Areas of Tokyo Metropolitan Area (from LogiSquare Market Report)
Miyoshi

Urawa
MisonoSoka

YashioSaitama Kan-Etsu and Tohoku Expressway Area

Vacancy rate: 1.34％ QoQ: Slightly Improved

Vacancy rate: 0.84％ QoQ: Slightly Improved

The vacancy rate was 1.34%, a decrease of 0.13 points from the previous Q.New supplies ofslightly more than 10,000 tsubo were digested, and there were no changes in existing properties.
New supplies of approx. 25,000 tsubo are scheduled for 4Q of 2020CY, for which leasing isreportedly in progress. There will be no significant impact on the vacancy rate any time soon,
but trends in the reservation of new supply for 4Q will be monitored. New supplies of approx.
83,000 tsubo are scheduled for 2021CY, exceeding the amount supplied in 2020CY.

The vacancy rate was 0.05%, a decrease of 0.40 points from the previous Q. There were no
new supplies and digestion of existing properties continued.
New supplies of approx. 54,000 tsubo are scheduled for 3Q of 2020CY and approx. 73,000
tsubo is scheduled for 4Q of 2020CY. Approx. 30,000 tsubo in the Nagareyama area have notbeen digested in 3Q of 2020CY. While leasing is reportedly in progress, the vacancy rate may
temporarily increase. New supplies of approx. 130,000 tsubo are scheduled for 2021CY.

1,500

15%

1,000

10%

千

千

Southern Saitama Area

Niiza

4,000

15%

3,000
10%
2,000

500

5%

5%
1,000

Total area

Vacant area

Vacancy rate

Total area

Vacant area

202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

2016120%2016090(Thousand m2)

201606202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

2016090%2016060(Thousand m2)

Vacancy rate

Source: Prepared by the Asset Management Company based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2020” of CRE, Inc.

Breakdown: Saitama Kan-Etsu and Tohoku Expressway Area

KawagoeMizuho A

Saitama Kan-Etsu Expressway Area

Mizuho B

Ageo

Saitama Tohoku Expressway Area

Hanyu

Kuki II

Kasukabe

Vacancy rate: 0.29%

Total area

Vacant area

Vacancy rate

Total area

Vacant area

202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

2016120%2016090(Thousand m2)

2016060%

千0(Thousand m2)

2020065%202003500

201912

5%

201909500

20190610%

201903

1,000

20181210%2018091,000

20180615%

2018031,500

20171215%

2017091,500

20170620%

2017032,000

20161220%

2016092,000

201606

千Vacancy rate: 1.39%

Kuki

Vacancy rate

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

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

43

5. Market Environment

Rising Demand for Rental Logistics Facilities(1) Reconstruction Demand for Logistics Facilities• About 30% of logistics facilities in the Tokyo Metropolitan Area(Note 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(Note 2), demand for reconstruction in pursuit of functionality appears to
be increasing.
Percentage of logistics facilities in the Tokyo Metropolitan Area by year of construction

立地件数分布100%

10%

To 1969

80%

18%

60%

23%

1970 - 1979

1980 - 1989
1990 - 1999
From 2000

40%

24%

20%

25%

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

These facilities are
20 to 40 years old andwill reach demand forreconstruction in the
future.

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

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

0%

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

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

44

5. 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 increasingly
companies are tending to comprehensively outsource their logistic
operation.

• The EC market is expanding year by year. However, in Japan, theEC rate is low compared with the U.S. and there is still much roomfor expansion.

3PL (Third-Party Logistics) Market Size

Growth in the BtoC e-commerce market size in Japan

3.0
2.5

1.78 1.88

2.0
1.5

19.4

20.0

3.5

1.27

2.04

2.25

2.48 2.59

2.85

3.03
15.0

12.8
11.2

1.46

10.0

1.0

5.0

7.8

8.5

4.2% 4.6%

9.5
5.2%

0.5
0.0

0.0
(Trillion yen)

2009

2010

2011

2012

2013

13.8

15.1

2014

2015

2016

2017

Source: “The monthly Logistics Business” September 2019 issue

2018(year)(Trillion yen)

2.8% 3.2% 3.4%
2010

2011

2012

5.8% 6.5%

7.3%

8.1%

16.5

18.0

18%

U.S.
8.9% 9.6%

20%

11.0%

16%
14%
12%
10%
8%
6%

4.8%
3.9% 4.4%

5.4%

6.8%
5.8% 6.2%

4%

Japan

2%
0%

2013

2014

E-commerce market size in Japan (left axis)
E-commerce rate in the U.S. (right axis)

2015

2016

2017

2018

2019 (year)

E-commerce rate in Japan (right axis)

Source: Prepared by the Asset Management Company based on data of the Ministry of Economy, Trade and Industry for the
BtoC e-commerce market 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.
Note : 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 new warehouse construction starts is around half the peak level and there is a shortage of logistics facilities tomeet current logistics needs.
Trends in Floor Space of New Construction Starts
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

(year)

Source: Prepared by the Asset Management Company 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) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

45

5. Market Environment

Rising Demand for Rental Logistics Facilities(3) Rising Importance of Logistics Network Strategy• A majority of companies mention a review of logistics bases as animportant cost-cutting measure that needs to be implemented.

Warehouse Rents as Percentage of COGs at Major Logistics Companies (Note )Important Cost-cutting Measures to be Implemented

29

Review of logistics bases
Reduction of inventories

15

Tie-up in transportation and delivery

14

Company A

14

Improvement of loading ratio

12

Review of delivery frequency
Review of transportation anddelivery channels

10Modal shift

10

Review of outsourcing fees

7

Introduction of logistics information
system7(Number of answers)• Warehouse rents account for less than 10% of the cost of goods sold of major
logistics companies, which is a small percentage compared to other costs suchas labor costs.
• There is perhaps much room to reduce and curb costs from the viewpoint of
employment and transportation, even if warehouse rents do rise, by reviewing
logistics bases.

0

20

40

Source: Prepared by the Asset Management Company based on the “Fiscal 2017 Research Report on Logistics
Costs” of JILS

Company B

Warehouse rents
as % of COGs

7.4%

11.9%

Labor cost as % of
COGs

23.5%

11.1%

Source: Created by the Asset Management Company based on the annual reports of each of the above companies for the fiscal year
ended March 31, 2020.
Note : Listed companies that are not affiliated with electric railway companies are excluded from the 20 largest listed companies interms of revenue that belong to the “land transportation industry” (middle classification) among the sectors in the Appendix of
the Sector Classification Handling Guidelines published by the Securities Identification Code Committee and then information isprovided about two listed companies (i) for which details of non-consolidated COGs figures are stated in their annual reportsand (ii) which the Asset Management Company, upon consideration of their non-consolidated and consolidated COGs figures,
judged to be core companies of the Groups to which they belong. The table shows the trend in relation to two specific leading
logistics companies and the same trend does not necessarily apply to other major logistics companies.

Network strategy will become increasingly importantdue to driver shortages, difficulties securing warehouse workers and rising fuel prices.
Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

46

6. Appendix

LogiSquare Miyoshi
The southern part of Saitama, particularly the Tokorozawa and Miyoshi area, has excellent access to central Tokyo, and it is one of the areas where demands for logistics bases are the highest in
Copyright(C) 2020
CRE Logistics
REIT,
All Rights
Reserved.
Saitama.
Surroundedby numerous
warehouses
andInc.
factories,
the property
can operate 24 hours a day.

47

6. Appendix

Overview of Appraisal

100,000

7th period

8th period(2019/12)(2020/6)

Compared toprevious period

25.0%

78,58072,66180,00060,00057,88050,48050,480 53,156
50,13047,59347,30647,01915.0%

40,000Appraisal value

57,880 million yen

10.0%

78,580 million yen + 20,700 million yen
8.9%
20,0005.3%Book value

53,156 million yen

72,661 million yen + 19,504 million yen

4,723 million yen

5,918 million yen

6.7%

7.4%

8.1%

0
(Million yen)

5.0%

0.0%
4th period(2018/6)

Book value

Unrealized gains
and losses

20.0%

5th period(2018/12)

6th period(2019/6)

Appraisal value

7th period(2019/12)

8th period(2020/6)

Ratio of unrealized gains+ 1,195 million yen
150,000

Unrealized gains

8.9 %

8.1 %

114,936

117,317

118,187

122,212

4th period(2018/6)

5th period(2018/12)

6th period(2019/6)

7th period(2019/12)

129,286- 0.7 %
100,000

NAV per unit

122,212 yen

129,286 yen+ 7,074 円

One characteristic of logistics facilities is that the ratio of building value to land is typically high, and so
depreciation expense tends to be higher than for other asset classes. Since unrealized gains are the difference
between appraisal value at end of period and book value after deduction of depreciation expense, CRE-REIT,
which holds fairly new properties and has minimal capital expenditure, tends to record increasing unrealized
gains because, at the end of each period, the sum of depreciation expense and any increase in appraisal value atthe end of the period is added to unrealized gains at the end of the previous period.

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

50,0000(Yen)

8th period(2020/6)

NAV per unit48

6. Appendix

Overview of Appraisal

No.

Property nameAt the end of the
At the end of theBook value
8th period(Note)
7th period
Changes
Unrealized
Ratio of
Acquisition Acquisition at the end of(June 30, 2020)(December 31, 2019)
gains and unrealized
month andprice
the 8thAppraisal
DirectAppraisal
DirectAppraisal
Directlossesgains
year(million yen)periodvalue
capitalization
value
capitalization
value
capitalization (million yen)(%)(million yen)(million yen) rate (%) (million yen) rate (%) (million yen) rate (%)

M-1

LogiSquare Kuki

Jul. 2016

9,759

9,287

10,300

4.5

10,300

4.5

―

―

1,012

10.9

M-2

LogiSquare Hanyu

Jul. 2016

6,830

6,501

7,080

4.7

7,080

4.7

―

―

578

8.9

M-3

LogiSquare Kuki II

Feb. 2018

2,079

2,038

2,180

4.8

2,170

4.8

+ 10

―

141

6.9

M-4

LogiSquare Urawa MisonoFeb. 201813,06012,891

14,3004.3

14,300

4.3

―

―

1,408

10.9

M-5

LogiSquare Niiza

Feb. 2018

6,960

6,850

7,390

4.5

7,390

4.5

―

―

539

7.9

M-6

LogiSquare Moriya

Feb. 2018

6,157

6,050

6,640

4.7

6,640

4.7

―

―

589

9.7

M-7

LogiSquare Kawagoe

Jul. 2019

1,490

1,495

1,580

4.6

1,570

4.6

+ 10

―

84

5.6

M-8

LogiSquare Kasukabe

Jul. 2019

4,900

4,899

5,330

4.5

5,300

4.5

+ 30

―

430

8.8

M-9

LogiSquare Soka

Feb. 2020

8,109

8,211

8,600

4.2

―

―

+ 8,600

―

388

4.7

M-10 LogiSquare Yashio

Feb. 2020

5,073

5,142

5,340

4.2

―

―

+ 5,340

―

197

3.8

M-11 LogiSquare Mizuho A

Feb. 2020

2,794

2,834

2,960

4.4

―

―

+ 2,960

―

125

4.4

M-12 LogiSquare Mizuho B

Feb. 2020

3,584

3,632

3,760

4.4

―

―

+ 3,760

―

127

3.5

O-1

LogiSquare Tosu

Apr. 2018

2,880

2,825

3,120

4.7

3,130

4.7

- 10

―

294

10.4

End of 8th Period Total/Average―

73,67572,661

78,580―57,880―+ 20,700

―

5,918

8.1

Newly acquired
assetsFor Reference: After Acquisition of Newly Acquired Assets (as of July 13, 2020)
M-13 LogiSquare Ageo

Jul. 2020

4,908

―

4,950

4.5

―

―

―

―

42

0.9

M-14 LogiSquare MiyoshiJul. 2020

11,700―12,100

4.4

―

―

―

―

400

3.4

O-2

Jul. 2020

1,300

―

1,500

5.4

―

―

―

―

200

15.4

―

91,583―

97,130

―

―

―

―

―

6,560

7.2

LogiSquare Chitose

After acquisition of newly
acquired assets Total/Average

Note: Based on the appraisal report with May 31, 2020 as the date of the value opinion in the case of newly acquired assets

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

49

6. Appendix

Box-type

Newly Acquired Assets M-13 LogiSquare Ageo
LogiSquare, which is expected to improve in accessibility due tothe extension of the expressway

Semi-multiTokyo
Metropolitan
Area

Ken-O Expressway
Metropolitan Expressway
Omiya Route
Route 17

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

BELS
★★★★★

Location

449-12 Aza Tenjinya, Ooaza
Jitogata, Ageo-shi, Saitama
and others

AccessApproximately 6.9 km from
Okegawa Kitamoto IC on the
Ken-O Expressway
Approximately 8.4 km from
Yono IC on the metropolitan
Expressway Omiya Route

Structure

Alloy plated steel sheet roof
steel structure with threestories

Total floor area

19,142.84 m2

Total leasable area

19,127.67 m2

Planned acquisition
price4,908 million yen

Appraisal value

4,950 million yen

Appraisal NOI yield

4.7%

Appraisal NOI yield
after depreciation

3.8%

Completion date

April 2019

Occupancy rate

100.0%

Property Features• Located approximately 6.9 km from Okegawa Kitamoto IC on
the Ken-O Expressway and approximately 8.4 km from Yono IC on
the metropolitan Expressway Omiya Route and next to Route 17 ShinOmiya Ageo Road (width 57 m) and Prefectural Road 51, all major trunk
roads.
• Accessibility is expected to improve because a project extending an
expressway from Yono IC on the metropolitan Expressway Omiya
Route to near LogiSquare Ageo has begun.
• The property has two gates, on the Route 17 Shin-Omiya Ageo Road
side and on the Prefectural Road 51 side, and this improves truck
access from all quarters.

CASBEE
SaitamaPrefecture
A ranking

Basic specifications
Berth depth
Effective ceilingheight10.25 m + eaves 4.0 m
6.0 m

Pillar span

10.2 m×9.8 m

Floor loading

1.5 t/m2

Sandwich panels

50

6. Appendix

Slope-type

Newly Acquired Assets M-14 LogiSquare Miyoshi

SingleLogiSquare with good access located approximately 600 m from IC andable to operate 24 hours a day

Tokyo
Metropolitan
Area

Kan-etsu Expressway
Route 254
Route 463

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

BELS
★★★★★

Location2291-1 Higashi-Nagakubo,
Kamitome, Miyoshimachi,
Iruma-gun, Saitama

AccessApproximately 0.6 km from
Miyoshi Smart IC on
the Kan-etsu Expressway

Structure

Alloy plated steel sheet roof
steel structure with four stories

Total floor area

37,931.49 m2

Total leasable area

37,931.49 m2

Planned acquisition
price

11,700 million yen

Appraisal value

12,100 million yen

Appraisal NOI yield

4.6%

Appraisal NOI yield
after depreciation

3.7%

Completion date

May 2020

Occupancy rate

100.0%

Property Features• Located approximately 0.6 km from Miyoshi Smart Interchange on the
Kan-etsu Expressway, and access to Route 254 (Kawagoe Kaido) and
Route 463 (Urawa Tokorozawa Bypass) is also easy. Miyoshi Smart
Interchange is expected to become a full-interchange after fiscal 2021.
• The southern part of Saitama, particularly the Tokorozawa and Miyoshi
area, has excellent access to central Tokyo, and it is one of the areas
where demands for logistics bases are the highest in Saitama.
Surrounded by numerous warehouses and factories, the property canoperate 24 hours a day• A total of 44 heavy trucks can park and load at the same time becauseof the slope enabling heavy trucks to go directly to the third floor andtruck berths are placed on the first and the third floors.

CASBEE
SaitamaPrefecture
A ranking

Basic specifications
Berth depth

13.5 mEffective ceilingheight5.5 m

Pillar span

9.5 m  12.0 m

Floor loading

1.5 t/m2

Sandwich panels

51

6. Appendix

Low-Type

Newly Acquired Assets O-02 LogiSquare Chitose
A LogiSquare that is a highly convenient logistics base for air cargo

SingleLocation

1007-281 Izumisawa, Chitoseshi, Hokkaido

AccessApproximately 2.4 km from the
New Chitose Airport IC on the
Do-O Expressway

Structure

Alloy plated steel sheet roof
steel structure with single floor

Total floor area

19,760.00 m2

Total leasable area

19,760.00 m2

Planned acquisition
price1,300 million yen

Appraisal value

1,500 million yen

Appraisal NOI yield

6.5%

Appraisal NOI yield
after depreciation

5.1%

Completion dateNovember 2017

Occupancy rate

100.0%

Property Features• The property has excellent access to the New Chitose Airport and is abalanced strategic base for air, marine and land transportation
because it can be a relay point between Sapporo and Tomakomai Port,a central international port handling the largest volume of marine cargoin Hokkaido, via the Do-O Expressway.
• Because the property is a high-floored single-story building with truck
berths on both the east and west sides, a total of 64 heavy trucks canpark and load at the same time. It has also secured a holding area for
80 heavy vehicles on site.
• As a part of specifications for cold regions, the property includes antifreezing equipment such as road heating and drainpipe duct heaters
using hot-water pipes. It also uses well-insulated sandwich panels andresin window sashes (with argon gas-filled low-e double pane glass).

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

BELS
★★★★★

Do-O Expressway

Basic specifications
Berth depth
Effective ceilingheight13.0 m + eaves 13.0 m
5.5 m

Pillar span

11.0 m  10.0 m

Floor loading

1.5 t/m2

Sandwich panels

52

6. Appendix

Currently, COVID-19 Has not Had an Impact on the Investment Corporation,
and Cash Flows are Stable.

• As of August 17, 2020, there have been no requests fromtenants to delay rent payments or reduce rent due to thedeterioration of their operating status and earnings.

Credit standing of tenants remains the same as before.(Note)
Bankruptcy prediction values of tenants
0.25
0.20
0.15
0.10

• As of August 17, 2020, the Investment Corporation has

0.05

confirmed that tenants have paid the entire amount of

0.00
(%)

contracted rent by the payment dates.

2018/02/10
2018/03/10
2018/04/14
2018/05/12
2018/06/09
2018/07/14
2018/08/11
2018/09/08
2018/10/13
2018/11/10
2018/12/08
2019/01/12
2019/02/09
2019/03/09
2019/04/13
2019/05/11
2019/06/08
2019/07/13
2019/08/10
2019/09/14
2019/10/12
2019/11/09
2019/12/14
2020/01/11
2020/02/08
2020/03/14
2020/04/11
2020/05/09
2020/06/13
2020/07/11
2020/08/08

Tenants have not requested the delay or reduction ofrent payments.

Source: Prepared by the Asset Management Company based on the bankruptcy prediction values of Teikoku
Databank Ltd.
Note: For the credit standing of tenants of the Investment Corporation, the bankruptcy prediction values of Teikoku
Databank Ltd. about tenants of properties held are weight-averaged by their leased area and stated in percent
figures by being rounded to the nearest two decimal places.
* The bankruptcy prediction values are the probability that a company will go bankrupt within a year. It isquantified by Teikoku Databank Ltd., using its own data analysis method based on data accumulated through its
credit research and information gathering network. It is calculated for each company, using a value between 0%
and 100%.

Approx. 70% of tenants are logistics operators.

100.0% occupancy rate has been maintained since the listing.

Type of business of tenants

Trends in occupancy rate

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

50%

Jun. 2020

Apr. 2020Feb. 2020

Dec. 2019

Oct. 2019

Aug. 2019

Jun. 2019

Apr. 2019Feb. 2019

Dec. 2018

Oct. 2018

0%Aug. 2018

Wholesale
12.9%

100%

Jun. 2018Landtransportation
65.4%

Apr. 2018

Real estate
5.0%
Warehouse andtransportation-related
6.5%

Feb. 2018

Pharmaceuticals
3.0%
Information and
Manufacturingcommunications
2.9%
4.2%

53

6. Appendix

Rental Demand for Logistics Facilities Continues to Remain Firm.

The vacancy rate in the Tokyo metropolitan area is 0.43% asof the end of June 2020, the lowest level since June 2016.
New supply of about 140,000 tsubo and existing supply of
about 9,000 tsubo have been nearly digested from April to
June.

Possibility that rental demand for logistics facilities will
increase due to COVID-19.

Medium- to long-term changes and the impact of COVID-19 considered bytenants using logistics facilities

Trends in the vacancy rate in the Tokyo metropolitan area
2,000

9%

1,800

8%

1,600

Building up of inventories to prepare for an
emergency

7%

Acceleration of the automation of warehouse
operations (to reduce dependence on labor)

6%

Increase in demand for the last mile

1,400
1,200
5%
1,000

Increase in demand for refrigerated
warehouses for foods and fresh foods

4%
800
3%

Acceleration of the use of unmanned delivery
robots (to avoid face-to-face delivery)2%

No particular change

600
400

0.43%
200

1%

0
(Ten thousand m2)0%

Others0%

Total area

Vacant area

10%

20%

30%

40%

Vacancy rate (right axis)

Source: Prepared by the Asset Management Company based on CRE, Inc.’s Warehouse and Logistics Property
LogiSquare Market Report June 2020

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

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 Management Company based on the Impact of COVID-19 on Logistics from
CBRE K.K.

54

6. Appendix

Status of Investors
Major investors

Number of investors by type of owner
Name

Number ofinvestment
units(units)Japan Trustee Services Bank, Ltd. (Trust Account)

67,72019.5

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

64,392

18.5

24,390

CRE, Inc.

Other domestic
corporations
145persons 1.7%

Ratio
(%)

8,381
persons

7.0

Individuals/others
8,054persons 96.1%

12,874

3.7

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

12,415

3.6

Mitsubishi UFJ Trust and Banking Corporation

6,164

1.8

The Bank of Yokohama,Ltd.

5,655

1.6 At the end of the

Fukuoka Jisho Co., Ltd.

5,000

1.4

The Kagawa Bank,Ltd.

Total

4,380

1.3

3,525

1.0

206,515

59.5

Securities
companies
27persons 0.3%

Financial institutions
49persons 0.6%

Trust & Custody Services Bank, Ltd. (Securities
Investment Trust Account)

Kinki Sangyo Credit Union

Foreigners
106persons
1.3%

Number of investment units by type of owner
Individuals/others
Foreigners
At the end of the
16.8%
8th period
58,252(June 30, 2020)
7th period(December 31,
2019)

Financial institutions
Securities companies
57.3%
199,135

Other domestic corporations
11.3%
39,132

12.5% 2.1%
43,419 7,312

19.1%
49,506

48.7%
126,15419.1%
49,475

10.5% 2.7%
27,227 6,888

At the end of the
6th period(June 30, 2019)22.0%
50,82142.8%
99,02425.2%
58,3407.7% 2.2%
17,780 5,185

At the end of the
5th period(December 31,
2018)

25.2%
58,21426.1%
60,395

6.0% 1.0%
13,9842,325

At the end of the
4th period(June 30, 2018)21.3%
49,12841.6%
96,232

42.1%
97,21426.4%
61,122

9.7% 0.6%
22,361 1,325

Note: As of June 30, 2020

Copyright (C) 2020 CRE Logistics REIT, Inc. All Rights Reserved.

55