August 17, 2020

CRE Logistics REIT, Inc.
Summary of Financial Results (Unaudited)
For the 8th Fiscal Period Ended June 30, 2020(For the Reporting Period from January 1, 2020 to June 30, 2020)(Translated from the Japanese original)
Corporate Information
Code: 3487 Listing: Tokyo Stock Exchange(URL: https://cre-reit.co.jp/en/)
Representative: Tsuyoshi Ito, Executive Director
Asset management company:
Representative:
Person of Contact:
Tel:

CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Hirohisa Toda, Head of Corporate Planning+81-3-5575-3600

Scheduled date to file securities report:
Scheduled date to commence payment of distributions:Preparation of supplementary material on financial results:
Financial report presentation meeting:

September 29, 2020
September 18, 2020
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen, except for the basic earnings per unit)
1. 8th Fiscal Period ended June 30, 2020 (January 1, 2020-June 30, 2020)(1) Operating results(Percentages represent changes from corresponding period of previous period)
Operating revenues
Operating income
Ordinary income
Net income
Fiscal period ended

June 30, 2020
December 31, 2019

Million yen%

Million yen%

Million yen%

Million yen

%

2,030
1,580

28.5
11.9

1,151
828

39.0
15.2

970
687

41.2
15.0

969
686

41.3
15.1

Return on
unitholders’ equity

Net income per unit

Ordinary income tototal assets

Ordinary income on
operating revenues

Fiscal period ended

Yen

%

%

%

June 30, 2020
December 31, 2019

2,872
2,670

2.9
2.6

1.5
1.3

47.8
43.5

(Note 1) The Investment Corporation issued 28,100 new investment units on July 16, 2019. Net income per unit for the fiscal period ended December
31,2019 is calculated by dividing net income by the weighted average number of investment units (256,959 units) based on the number of days
during the period.
(Note 2) The Investment Corporation issued 88,000 new investment units on January 21, 2020. Net income per unit for the fiscal period ended June
30,2020 is calculated by dividing net income by the weighted average number of investment units (337,579 units) based on the number of days
during the period.

(2) Distributions
Distributions
per unit(excluding
surplus
distributions)

Total
distributions(excluding
surplus
distributions)Fiscal period ended

Yen

Million yen

Yen

June 30, 2020
December 31, 2019

2,792
2,647

969
686

294
365

Surplus
distributions
per unit

Distributions
per unit(including
surplus
distributions)

Total
distributions(including
surplus
distributions)

Million yen

Yen

Million yen

%

%

102
94

3,086
3,012

1,071
780

100.0
100.0

2.5
2.5

Total surplus
distributions

Payout ratio

Distributions to
net assets ratio(Note 1) The entire amount of total surplus distributions is the return of contributions that falls under the distribution associated with the investment
decrease for tax purposes.
(Note 2) The percentage of decreased surplus as a result of surplus distributions (the return of contributions that falls under the distribution associatedwith the investment decrease for tax purposes) in the fiscal period ended December 31, 2019 and the fiscal period ended June 30, 2020 was
0.004 and 0.003, respectively. The calculation of the percentage of decreased surplus is based on Article 23, Paragraph 1, Item 4 of the Orderfor Enforcement of the Corporation Tax Act.
(Note 3) The payout ratio in the fiscal period ended December 31, 2019 and the fiscal period ended June 30, 2020 is calculated based on the following
formula because the Investment Corporation issued new investment units.
Payout ratio = Total amount of distributions (excluding surplus distributions) ÷ Net income × 100

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1

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(3) Financial position
Total assets
As ofJune 30, 2020
December 31, 2019

Net assets

Unitholders’ equity ratio

Net assets per unit

Million yen

Million yen%

Yen

77,73655,96040,04827,741

51.5
49.6

115,329
107,005(4) Cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the fiscal period

Fiscal period ended

Million yen

Million yen

Million yen

Million yen

June 30, 2020
December 31, 2019

1,297
753

(20,084)(6,437)

20,320
5,396

2,892
1,358

2. Forecast for the 9th Fiscal Period ending December 2020 (July 1, 2020-December 31, 2020) and the 10th Fiscal Period ending June
2021 (January 1, 2021-June 30, 2021)(Percentages represent changes from corresponding period of previous period)
Operatingrevenues

OperatingincomeFiscal period ending

Millionyen

December 31, 2020
June 30, 2021

2,589 27.5
2,591
0.1

%

Millionyen

Ordinary
incomeDistributions
Distributions
per unit (including
per unit
surplus(excluding surplus
distributions)distributions)

Net income%

Millionyen%

1,513 31.4
1,385 (8.5)

1,289
1,182

32.9
(8.3)

Millionyen

Surplus
distributions
per unit

%

Yen

Yen

Yen

1,288 32.9
1,181 (8.3)

3,297
3,205

3,042
2,790

255
415

(Reference) Forecast net income per unit (Forecast net income/ Forecast number of investment units at the end of the fiscal period) for the 9th Fiscal
Period ending December 2020 is 3,042 yen and forecast net income per unit for the 10th Fiscal Period ending June 2021 is 2,789 yen.

* Other(1) Changes in accounting policies, changes in accounting estimates and retrospective restatements
1. Changes in accounting policies associated with revision of accounting standards, etc.: None
2. Changes in accounting policies associated with other than 1: None
3. Changes in accounting estimates: None
4. Restatements: None

(2) Total number of investment units issued and outstanding
1. Total number of investment units issued andoutstanding at the end of the fiscal period(including treasury investment units)

As of June 30,
2020347,250 units

2. Total number of treasury investment units at
the end of the fiscal period

As of June 30,
2020

0 units

As of December 31,
259,250 units
2019
As of December 31,
2019

0 units* Summary of financial results is not inside the scope of audit procedure by certified public accountants or audit corporations.
* Remarks on appropriate use of forecasts of performance and other special notes
Forward-looking statements presented in this financial results, including forecasts of performance, are based on information
currently available to the Investment Corporation and on certain assumptions the Investment Corporation deems to be reasonable.
As such, actual operating and other results may differ materially from these forecasts as a consequence of various factors. Moreover,the forecasts set forth herein should not be construed as a guarantee of distribution amounts.
Refer to the section on “Assumptions for Operating Forecasts for the 9th Fiscal Period ending December 2020 (July 1, 2020December 31, 2020) and the 10th Fiscal Period ending June 2021 (January 1, 2021-June 30, 2021)” for details on the underlying
assumptions for the forecasts above.

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2

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Assumptions for Operating Forecasts for 9th Fiscal Period ending December 2020 (July 1, 2020-December 31, 2020) and the 10th Fiscal
Period ending June 2021 (January 1, 2021-June 30, 2021)
Item
Calculation period

Assumptions- 9th Fiscal Period (Ending December 31, 2020): July 1, 2020-December 31, 2020 (184 days)- 10th Fiscal Period (Ending June 30, 2021): January 1, 2021-June 30, 2021 (181 days)

Assets undermanagement- The investment corporation possesses the trust beneficial interests in real estate in a total of 16 properties(hereinafter referred to as “assets currently held”)—13 properties held as of June 30,2020 (hereinafterreferred to as “acquired assets before the fiscal period ended June 30, 2020”) and three properties acquiredon July 13, 2020 (hereinafter referred to as “acquired assets for the fiscal period ending December 31,
2020”).The operating forecasts herein are based on the assumption that the investment corporation willcontinue to possess these properties until June 30, 2021, as well as the assumption that there will be nofluctuations in the trust beneficial interests in real estate (including newly acquired properties and the disposalof currently-held assets).
- However, there is a possibility that fluctuations in the portfolio will occur due to factors including the newacquisition of properties or the disposal of assets currently held.

Operating revenues- Real estate lease business revenues are calculated based on leasing contracts that are effective as of the dateof submission of this financial results and actual performance in the past. No lease contract will expire during
the fiscal period ending December 31,2020, and all lease contracts will be concluded at a fixed rent. It is
expected that a one month vacancy period will arise because the lease contract will expire in one property
during the fiscal period ending June 30, 2021 and that for subsequent rents, a lease contract will be concluded
with a successor tenant at the same level.
- The forecasts assume there are no delinquencies or default on rental payments by tenants.

Operating expenses- Expenses other than depreciation that fall under the category of real estate leasing expenses, which is theinvestment corporation’s main operating expenses, are actual expenses incurred on acquired assets before thefiscal period ended June 30, 2020. Regarding those acquired assets for the fiscal period ending December 31,
2020, expenses were forecast reflecting variables, including forecast costs (including taxes and public dues,
property management fees, fire insurance expenses, repair expenses) based on information obtained from theprevious owner, or the beneficiary who previously held the trust beneficiary interests.
- Property tax and city planning tax, etc. for acquired assets before the fiscal period ended June 30, 2020 are
expected to total 164 million yen in the fiscal period ending December 31, 2020 and 214 million yen in thefiscal period ending June 30, 2021.
- In addition, when real estate is purchased, property tax and city planning tax, etc. are calculated and divided
up on a pro-rated basis for calendar year with the previous beneficiary of trust interests. The investment
corporation incorporates this amount into the acquisition cost of the property. In light of this, property tax
and city planning tax, etc. on the four properties acquired on February 2020 (hereinafter referred to as“acquired assets for the fiscal period ending June 30, 2020”) and acquired assets for the fiscal period ending
December 31, 2020 are not posted in the 9th Fiscal Period, but will be posted as property tax and city planningtax, etc. in the 10th Fiscal Periods. In the event that the property tax and city planning tax, etc. on acquired
assets for the fiscal period ending June 30, 2020 and acquired assets for the fiscal period ending December
31, 2020 were posted as expense, the amount is estimated at 102 million yen for each six-month period
starting from the 10th Fiscal Period. Note that the total amount of property tax and city planning tax, etc. to
be incorporated into the acquisition cost for the acquired assets for the fiscal period ending December 31,
2020 is estimated at 26 million yen.
- Depreciation is based on the straight-line method. Depreciation is forecast to be 459 million yen in the fiscal
period ending December 31, 2020 and 460 million yen in the fiscal period ending June 30, 2021.
- Property management fees are expected to be 121 million yen in the fiscal period ending December 31, 2020
and 123 million yen in the fiscal period ending June 30, 2021.
- Because one lease contract will expire in the asset currently held during the fiscal period ending June 30,
2021, a 30 million yen as leasing expense is expected for the relevant property in the fiscal period ending
June 30, 2021.

Non-operating
expenses- Non-operating expenses for the 9th Fiscal Period are expected to total 224 million yen. Of this, it is estimatedthat 192 million yen is for interest expenses and other financial related costs, 6 million yen is for depreciationof founding costs, 9 million yen is for costs related to offerings new investment units, and 14 million yen isfor depreciation of investment unit issuance costs.
- Non-operating expenses for the 10th Fiscal Period are expected to total 202 million yen. Of this, it isestimated that 185 million yen is for interest expenses and other financial related expenses, 5 million yen isfor depreciation of founding costs, and 9 million yen is for depreciation of investment unit issuance costs.
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3－

Interest-bearing debt

- The total interest-bearing debt at the end of each fiscal period is as follows: 43,669 million yen as ofDecember 31, 2020, and 43,669 million yen as of June 30, 2021.
- It is assumed that the investment corporation refinance 2,000 million yen to repay 1,750 million yen whichmature on January 29, 2021 and 250 million yen which mature on July 31, 2021 in the fiscal period ending
December 31, 2020.
- The LTV is expected to be around 45.0% as of December 31, 2020, and about 45.0% as of June 30, 2021.
The following equation was used to calculate LTV. The figure is rounded to the second decimal point.
LTV = Interest-bearing debt / Total Assets x 100

Investment units- The assumptions for these forecasts are based on a total number of investment units issued of 423,500, as ofthe submission of these financial results. The forecasts do not factor in any assumption of a change in thenumber of investment units through June 30, 2021 due to factors such as the issuance of new investment
units.
- The distributions per unit (excluding surplus distributions) and the surplus distributions per unit are calculated
based on a total number of investment units issued of 423,500 for the fiscal period ending December 31,
2020 and the fiscal period ending June 30, 2021.

Distributions per unit
(excluding surplus
distributions)- The distributions per unit (excluding surplus distributions) is calculated based on the assumption that
distributions are carried out in accordance with the policies for monetary distributions set forth in theregulations of the investment corporation.
- There is a possibility that the amount of the distributions per unit (excluding surplus distributions) couldchange owing to various factors, including changes in rental income, or unexpected maintenance work due
to a change in assets under management or a change in tenants.

Distributions per unitof surplus profit- The surplus distributions per unit is calculated in accordance with the policy stipulated in the operationalguidelines—the regulations of the investment corporation and the internal regulations of the asset
management company.
- These assumptions do not include any specific possibility of a substantial deterioration in the economic
climate, real estate market or the financial condition of the investment corporation.
- While the investment corporation has a policy of implementing surplus distribution every term with anamount equivalent to 30% of depreciation as a benchmark, the investment corporation has decided to
implement this policy flexibly to equalize distributions within the range equivalent to 30% of depreciation.
In the fiscal period ending December 31, 2020, the investment corporation expects to distribute an amountequivalent to approximately 23.5% of depreciation, instead of 30%, as continuous surplus distributions, toequalize distributions.
- Moreover, in the event that the distributions per unit is expected to temporarily fall below a certain level due
to dilution in the value of the investment unit or a considerable financial burden owing to the procurement of
capital through the issuance of new investment units or other factors, the investment corporation may
continue to distribute surplus profit plus a one-off distribution that exceeds the profit level in the period forthe purpose of maintaining the ordinary level of the distributions per unit. However, this amount, which
includes the ongoing surplus distribution, shall not exceed the equivalent to 60% of total depreciation for the
relevant business period. In the fiscal period ending June 30, 2021, the investment corporation expects todistribute an amount equivalent to approximately 8.2% of depreciation as temporary surplus distributions
after distributing an amount equivalent to 30% of depreciation as continuous surplus distributions, to equalize
distributions, given that one lease contract will expire in the assets currently held.
- In actuality, the amount of distributions exceeding profit (return of contributions) is likely to fluctuate due tochanges in the economic climate, real estate market trends, asset portfolio, and financial position, and there
is a possibility the investment corporation will not implement distributions (return of contributions) in surplus
distributions for the period.

Other- The forecasts were built based on the assumption that there will be no revisions to laws and ordinances, thetax system, accounting standards, listing regulations set forth by the Tokyo Stock Exchange, Inc., and theregulations stipulated by the Investment Trusts Association, Japan, that would have an impact on the forecasts
stated above.
- The forecasts are also based on the assumption that there will be no unexpected major changes to general
economic trends and the real estate market.

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4

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3. Financial Statements(1) Balance Sheet(Thousands of yen)
As of December 31, 2019

As of June 30, 2020

AssetsCurrent assets
Cash and deposits

776,182

2,232,080

1,319,249

1,786,401

Operating accounts receivable

101,808

103,193

Prepaid expenses

94,550107,712

Cash and deposits in trust

Consumption taxes receivable239,756

526,229

2,531,547

4,755,617

32,027,216

37,879,973

Accumulated depreciation(1,429,813)(1,778,799)

Buildings in trust, net

30,597,402

36,101,174

1,568,757

1,952,901(51,995)(66,218)

1,516,762

1,886,682

Tools, furniture and fixtures in trust

682

682

Accumulated depreciation

(183)

(244)

Tools, furniture and fixtures in trust, net

499

438

21,042,131

34,610,101

Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust

Structures in trust
Accumulated depreciation
Structures in trust, net

Land in trust
Construction in progress in trust－

63,35053,156,796

72,661,746

Other

2,466

2,066

Total intangible assets

2,466

2,066

Investment securities

10,50010,500Long-term prepaid expenses

205,913253,258

13

13

Leasehold and guarantee deposits

10,00010,000Total investments and other assets

226,426

273,772

53,385,689

72,937,585

Total property, plant and equipment
Intangible assets

Investments and other assets

Deferred tax assets

Total non-current assets
Deferred assets
Organization expenses

17,161

11,104

Investment unit issuance expenses

26,14732,417

Total deferred assets

43,30843,522

55,960,545

77,736,725

Total assets

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5

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(Thousands of yen)
As of December 31, 2019

As of June 30, 2020

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Advances received
Other
Total current liabilities

98,630184,5153,700,000

3,700,000

121,951

170,751872

890

285,146

383,430

4,600

67,5494,211,201

4,507,138

23,019,000

32,019,000

989,210

1,162,379

24,008,210

33,181,379

28,219,412

37,688,517

27,302,166

39,420,558(247,330)(341,956)

27,054,836

39,078,601

686,297

969,606

686,297

969,606

27,741,133

40,048,208

27,741,133

40,048,208

55,960,545

77,736,725

Non-current liabilities
Long-term borrowings
Leasehold and guarantee deposits received intrust
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Deduction from unitholders' capital
Unitholders' capital, net
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

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6

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(2) Statements of Income(Thousands of yen)
Fiscal period ended
December 31, 2019

Fiscal period ended
June 30, 2020

Operating revenue
Leasing business revenue

1,553,660

2,001,134

26,712

29,4191,580,373

2,030,554

Expenses related to leasing business

570,836

662,830

Asset management fee

140,715

176,310

Other leasing business revenue
Total operating revenue
Operating expenses

Asset custody fee

1,611

1,763

Administrative service fees

12,204

12,230

Remuneration for directors (and other officers)

4,500

4,500

Other operating expenses

22,272

21,552

Total operating expenses

752,140

879,187

828,233

1,151,366

Operating profit
Non-operating income
Interest income

1014Interest on tax refund－

717

Total non-operating income

10

732

Interest expenses

68,442

89,884

Borrowing related expenses

50,38258,741

Amortization of organization expenses

6,056

6,056

Amortization of investment unit issuance expenses

9,483

11,352

Other

6,782

15,627141,147

181,663

Ordinary profit

687,096

970,436

Profit before income taxes

687,096

970,436

Income taxes - current

873

892

Income taxes - deferred

1

0

875

892

686,220

969,5437762686,297

969,606

Non-operating expenses

Total non-operating expenses

Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)

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7

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(3) Statements of Changes in Net Assets
Fiscal period ended December 31, 2019
(Thousands of yen)
Unitholders' equity
Unitholders' capital
Unitholders'
capitalBalance at
beginning of
periodChanges in items
during period
Issuance of
new investment
units
Distributions inexcess ofretainedearnings
Dividends ofsurplus24,106,072

Deduction
fromunitholders'
capital(161,342)

3,196,094(85,987)

Surplus
Unitholders'
capitalUnappropriatedretainedearnings(undisposed
loss)

23,944,729

596,444596,444

Total net
assets24,541,173

24,541,173

3,196,094

3,196,094

3,196,094(85,987)(85,987)(85,987)(596,367)(596,367)(596,367)(596,367)

686,220686,220686,220686,220

ProfitTotal changes in
items during
periodBalance at end of
periodTotalunitholders'
Total surplus
equity3,196,094(85,987)

3,110,106

89,85389,853

3,199,959

3,199,959

27,302,166(247,330)

27,054,836

686,297686,297

27,741,133

27,741,133

Fiscal period ended June 30, 2020
(Thousands of yen)
Unitholders' equity
Unitholders' capital
Unitholders'
capitalBalance at
beginning of
periodChanges in items
during period
Issuance of
new investment
units
Distributions inexcess ofretainedearnings
Dividends ofsurplus27,302,166

Deduction
fromunitholders'
capital(247,330)

12,118,392(94,626)

Surplus
Unitholders'
capitalUnappropriatedretainedearnings(undisposed
loss)

27,054,836

686,297686,297

Total net
assets27,741,133

27,741,133

12,118,392

12,118,392

12,118,392(94,626)(94,626)(94,626)

ProfitTotal changes in
items during
periodBalance at end of
periodTotalunitholders'
Total surplus
equity(686,234)(686,234)(686,234)(686,234

969,543

969,543

969,543

969,543

12,118,392(94,626)

12,023,765

283,309283,30912,307,074

12,307,074

39,420,558(341,956)

39,078,601

969,606

969,606

40,048,208

40,048,208

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8

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(4) Statements of Cash Flows(Thousands of yen)
Fiscal period ended
December 31, 2019

Fiscal period ended
June 30, 2020

Cash flows from operating activities
Profit before income taxes

687,096

970,436

Depreciation

316,507363,669

Amortization of deferred organization expenses

6,056

6,056

Amortization of investment unit issuance expenses

9,483

11,352

Interest income

(10)

(14)

Interest expenses

68,442

89,884

7,919(1,385)(239,756)(286,473)(12,975)(13,162)

Increase (decrease) in operating accounts payable

9,483

85,884

Increase (decrease) in accrued expenses

13,102

39,688

Increase (decrease) in accrued consumption taxes(31,901)－

Increase (decrease) in advances received

33,05998,284

Decrease (increase) in long-term prepaid expenses(48,388)(47,345)

Other, net

2,112

62,253

Subtotal

820,230

1,379,12910

14(66,074)(80,772)

(912)

(874)

753,254

1,297,497(6,453,198)(19,868,220)

115,941

173,168(100,000)(389,110)(6,437,257)(20,084,161)

Proceeds from long-term borrowings

9,579,000

9,000,000

Repayments of long-term borrowings(6,680,000)－

Proceeds from issuance of investment units

3,179,335

12,100,768

Distributions paid

(681,979)(780,165)

Net cash provided by (used in) financing activities

5,396,355

20,320,602

Net increase (decrease) in cash and cash equivalents(287,646)

1,533,938

Cash and cash equivalents at beginning of period

1,645,741

1,358,094

Cash and cash equivalents at end of period

1,358,094

2,892,033

Decrease (increase) in operating accounts
receivable
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in prepaid expenses

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Proceeds from leasehold and guarantee deposits
received in trust
Payments into restricted deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities－

9－