February17, 2022

CRE Logistics REIT, Inc.
Summary of Financial Results (Unaudited)
For the 11th Fiscal Period Ended December 31, 2021
(For the Reporting Period from July1, 2021 to December 31, 2021)(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, Executive Officer, Head of Corporate Planning and General Affairs+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:March 29, 2022
March 22, 2022
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen, except for the basic earnings per unit)
1. 11th Fiscal Period ended December 31, 2021 (July 1, 2021- December 31, 2021)(1) Operating results(Percentages represent changes from corresponding period of previous period)
Operating revenues
Operating income
Ordinary income
Net income
Fiscal period ended

December 31, 2021
June 30, 2021

Million yen%

Million yen%

Million yen%

Million yen

%

3,595
3,159

13.8
21.3

2,088
1,800

16.0
18.2

1,799
1,522

18.2
17.2

1,798
1,521

18.2
17.2

Return on
unitholders’ equity

Net income per unit
Fiscal period ended

Yen

December 31, 2021
June 30, 2021

3,343
3,092

Ordinary income tototal assets

Ordinary income on
operating revenues

%

%

%

2.6
2.7

1.4
1.4

50.1
48.2

(Note 1) The Investment Corporation issued 73,000 new investment units on January 19, 2021 and 3,650 new investment units on February10, 2021. Net
income per unit for the fiscal period ended June 30, 2021 is calculated by dividing net income by the weighted average number of investment
units (492,083 units) based on the number of days during the period.
(Note 2) The Investment Corporation issued 64,550 new investment units on September 15, 2021. Net income per unit for the fiscal period ended
December 31, 2021 is calculated by dividing net income by the weighted average number of investment units (538,038 units) based on the numberof days during the period.

(2) Distributions

Fiscal period ended

December 31, 2021
June 30, 2021

Distributions
per unit(excluding
surplus
distributions)

Total
distributions(excluding
surplus
distributions)

Yen

Million yen

3,186
3,042

1,799
1,521

Total surplus
distributions

Distributions
per unit(including
surplus
distributions)

Total
distributions(including
surplus
distributions)

Yen

Million yen

Yen

Million yen

%

%

338
356

190
178

3,524
3,398

1,990
1,699

100.0
100.0

2.5
2.5

Surplus
distributions
per unit

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 June 30, 2021 and the fiscal period ended December 31, 2021 was
0.003, respectively. The calculation of the percentage of decreased surplus is based on Article 23, Paragraph 1, Item 4 of the Order for
Enforcement of the Corporation Tax Act.
(Note 3) The payout ratio in the fiscal period ended June 30, 2021 and the fiscal period ended December 31, 2021 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

Net assets

Unitholders’ equity ratio

As ofMillion yen

Million yen

December 31, 2021
June 30, 2021

140,743
117,525

75,33462,088

Net assets per unit

%

Yen

53.5
52.8

133,406
124,138(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

December 31, 2021
June 30, 2021

3,024
2,139

(22,338)(20,380)

20,614
18,408

5,340
4,039

2. Forecast for the 12th Fiscal Period ending June 2022 (January 1, 2022-June 30, 2022) and the 13th Fiscal Period ending December
2022 (July 1, 2022-December 31, 2022)(Percentages represent changes from corresponding period of previous period)
Operatingrevenues

Fiscal period ending

June 30, 2022
December 31, 2022

OperatingincomeMillion
yen

%

3,875
3,884

7.8
0.2

Millionyen

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

Net income

Surplus
distributions
per unit%

Millionyen%

Million
yen

%

Yen

Yen

Yen

2,096
0.4
2,092 (0.2)

1,801
1,810

0.1
0.5

1,800
1,809

0.1
0.5

3,529
3,547

3,188
3,205

341
342

(Reference) Forecast net income per unit (Forecast net income/ Forecast number of investment units at the end of the fiscal period) for the 12th Fiscal
Period ending June 2022 is 3,188 yen and forecast net income per unit for the 13th Fiscal Period ending December 2022 is 3,205 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.: Yes
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)
2. Total number of treasury investment units at
the end of the fiscal period

As of December
31, 2021

564,700 units

As of June 30,
2021

500,150 units

As of December
31, 2021

0 units

As of June 30,2021

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 these 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 12th Fiscal Period ending June 2022 (January 1, 2022-June30, 2022) and the 13th Fiscal Period ending December 2022 (July 1, 2022-December 31, 2022)” for details on the underlying
assumptions for the forecasts above.

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2

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Assumptions for Operating Forecasts for the 12th Fiscal Period ending June 2022 (January 1, 2022-June 30, 2022) and the 13th Fiscal
Period ending December 2022 (July 1, 2022-December 31, 2022)
Item
Calculation period

Assumptions- 12th Fiscal Period (Ending June 30, 2022): January 1, 2022-June 30, 2022 (181 days)- 13th Fiscal Period (Ending December 31, 2022): July 1, 2022-December 31, 2022 (184 days)

Assets undermanagement- The investment corporation possesses the trust beneficial interests in real estate in a total of 20 properties(hereinafter referred to as “assets currently held”).The operating forecasts herein are based on the assumptionthat the investment corporation will continue to possess these properties until December 31, 2022, as well as
the assumption that there will be no fluctuations in the trust beneficial interests in real estate (including newly
acquired properties and the disposal of assets currently held).
- 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 these financial results and actual performance in the past. Even though the two lease
contracts will expire during the fiscal period ending June 30, 2022, and one lease contract will expire during
the fiscal period ending December 31, 2022, we concluded new lease contracts with the tenants. All lease
contracts will be concluded at a fixed rent.
- The forecasts assume there are no delinquencies or default on rental payments by tenants.

Operating expenses- Expenses of assets currently held other than depreciation that fall under the category of real estate leasing
expenses, which is the investment corporation’s main operating expenses, are calculated based on actual
expenses., reflecting variables, including forecast costs (including taxes and public dues, property
management fees, insurance expenses, repair expenses).
- Property tax and city planning tax, etc. are estimated 388 million yen in the 12th fiscal period and 388 million
yen in the 13th fiscal period on assets currently held.
- Depreciation is based on the straight-line method. Depreciation is forecast to be 642 million yen in the 12th
fiscal period and 644 million yen in the 13th fiscal period.
- Property management fees are expected to be 202 million yen in the 12th fiscal period and 205 million yen
in the 13th fiscal period.

Non-operating
expenses- Non-operating expenses for the 12th fiscal period are expected to total 294million yen. Of this, it is estimatedthat 271 million yen is for interest expenses and other financial related costs, and 14 million yen is fordepreciation of investment unit issuance costs.
- Non-operating expenses for the 13th fiscal period are expected to total 281 million yen. Of this, it is estimatedthat 266 million yen is for interest expenses and other financial related costs, and 11 million yen is fordepreciation of investment unit issuance costs.

Interest-bearing debt

- The total interest-bearing debt at the end of each fiscal period is as follows: 61,869 million yen as of June 30,
2022 and 61,869 million yen as of December 31, 2022.
- In the fiscal period ending June 30, 2022, while long-term borrowings of 3,680 million yen matured on
January 31, 2022, and the same amount was refinanced.
- In the fiscal period ending December 31, 2022, while long-term borrowings of 2,400 million yen will matureon July 29, 2022, it is assumed that the same amount will be refinanced.
- The LTV is expected to be around 43.9% as of June 30, 2022, and around 44.0% as of December 31, 2022.
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 564,700, as ofthe submission of these financial results. The forecasts do not factor in any assumption of a change in thenumber of investment units through December 31, 2022 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 564,700 for the fiscal period ending June 30, 2022 andthe fiscal period ending December 31, 2022.

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.
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3－

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.
- 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
distribute continuous 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, total amount of thecontinuous surplus distribution and a one-off distribution shall not exceed the equivalent to 60% of total
depreciation for the relevant business period.
- 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 June 30, 2021

As of December 31, 2021

AssetsCurrent assets
Cash and deposits

1,728,060

2,738,067

Cash and deposits in trust

3,356,893

3,930,134

Operating accounts receivable

158,876

145,642

Prepaid expenses

141,856

153,526

Consumption taxes receivable

982,593666,276

6,368,281

7,633,647

58,837,546

67,620,215

Accumulated depreciation(2,760,123)(3,352,910)

Buildings in trust, net

56,077,422

64,267,304

2,922,640

3,163,201

Accumulated depreciation(106,699)(129,400)

Structures in trust, net

2,815,940

3,033,800

Tools, furniture and fixtures in trust

3,322

3,322

Accumulated depreciation

(453)

(740)

Tools, furniture and fixtures in trust, net

2,868

2,582

Land in trust

51,871,682

65,374,983

Total property, plant and equipment

110,767,914

132,678,671

Other

1,266

866

Total intangible assets

1,266

866

Investment securities

10,50010,500Long-term prepaid expenses

314,648

338,437

17

9

Leasehold and guarantee deposits

10,00010,000Total investments and other assets

335,166

358,947

111,104,347

133,038,485

Investment unit issuance expenses

41,23545,381

Investment corporation bond issuance costs

11,422

26,049Total deferred assets

52,65771,431

117,525,286

140,743,564

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

Structures in trust

Intangible assets

Investments and other assets

Deferred tax assets

Total non-current assets
Deferred assets

Total assets

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5

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(Thousands of yen)
As of June 30, 2021

As of December 31, 2021

Liabilities
Current liabilities
Operating accounts payable

170,645

169,205

8,254,000

6,080,000

253,712293,297970

808

584,135

695,158

2,820

155,232

9,266,284

7,393,701

Investment corporation bonds

2,000,000

4,000,000

Long-term borrowings
Leasehold and guarantee deposits received intrust

42,415,000

51,789,000

1,742,256

2,212,960

13,63813,214

46,170,894

58,015,175

55,437,179

65,408,877

61,148,104

74,295,196(581,685)(759,739)

60,566,418

73,535,457

1,521,688

1,799,230

1,521,688

1,799,230

62,088,107

75,334,687

62,088,107

75,334,687

117,525,286

140,743,564

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

Other
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) Statement of Income(Thousands of yen)
Fiscal period ended
December 31, 2021

Fiscal period ended
June 30, 2021
Operating revenue
Leasing business revenue

3,118,710

3,528,515

40,94467,081

3,159,654

3,595,597

1,036,607

1,137,494

269,103

307,071

Asset custody fees

2,750

3,188

Administrative service fees

17,552

20,667

Remuneration for directors (and other officers)

4,500

4,500

Other operating expenses

28,48434,269Total operating expenses

1,358,998

1,507,190

1,800,656

2,088,406

Interest income

23

23

Reversal of distributions payable－

394

Interest on tax refund

185

188

Refund of real estate taxes－

11,139Total non-operating income

208

11,745

137,326

159,440

5,247

6,657

101,346

102,340

Amortization of organization expenses

5,047

－

Amortization of investment unit issuance expenses
Amortization of investment corporation bondissuance costs
Other

12,648

13,694

1,370

1,641

15,263

16,562

Total non-operating expenses

278,250

300,335

Ordinary income

1,522,614

1,799,816

Income before income taxes

1,522,614

1,799,816

Income taxes - current

974

811

Income taxes - deferred(5)

7

Total income taxes

968

819

1,521,645

1,798,997

43

232

1,521,688

1,799,230

Other leasing business revenue
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fees

Operating income
Non-operating income

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses

Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

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7

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(3) Statement of Unitholders' Equity
Fiscal period ended June 30, 2021
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of
periodUnitholders’capitalDeduction
fromunitholders’capital50,285,726(444,048)

Surplus

Unitholders’capital, net

Unappropri
ated
retainedearnings(undisposed
loss)

49,841,677

1,298,917

Total surplus

Totalunitholders’equityTotal net
assets1,298,917

51,140,595

51,140,595

10,862,378

10,862,378

10,862,378(137,637)(137,637)(137,637)

Changes during
periodIssuance of new
investment units

10,862,378

Distributions inexcess of
earnings(137,637)

Dividends ofsurplus(1,298,874)(1,298,874)(1,298,874)(1,298,874)

Net income

1,521,645

1,521,645

1,521,645

1,521,645

Total changes
during period

10,862,378(137,637)

10,724,740

222,771

222,771

10,947,512

10,947,512

Balance at end of
period61,148,104(581,685)

60,566,418

1,521,688

1,521,688

62,088,107

62,088,107

Fiscal period ended December 31, 2021
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of
periodUnitholders’capitalDeduction
fromunitholders’capital61,148,104(581,685)

Surplus

Unitholders’capital, net

Unappropri
ated
retainedearnings(undisposed
loss)

60,566,418

1,521,688

Total surplus

Totalunitholders’equityTotal net
assets1,521,688

62,088,107

62,088,107

13,147,092

13,147,092

13,147,092(178,053)(178,053)(178,053)

Changes during
periodIssuance of new
investment units

13,147,092

Distributions inexcess of
earnings(178,053)

Dividends ofsurplus(1,521,456)(1,521,456)(1,521,456)(1,521,456)

Net income

1,798,997

1,798,997

1,798,997

1,798,997

Total changes
during period

13,147,092(178,053)

12,969,038

277,541

277,541

13,246,579

13,246,579

Balance at end of
period74,295,196(759,739)

73,535,457

1,799,230

1,799,230

75,334,687

75,334,687

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8

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(4) Statement of Cash Flows(Thousands of yen)
Fiscal period ended
June 30, 2021

Fiscal period ended
December 31, 2021

Cash flows from operating activities
1,522,614

1,799,816

562,935

616,173

Amortization of organization expenses

5,047

－

Amortization of investment unit issuance expenses

12,648

13,694

Amortization of investment corporation bond issuance costs

1,370

1,641

Interest income

(23)

(23)

Interest expenses

142,573

166,097

Decrease (increase) in operating accounts receivable(8,261)

13,234

Decrease (increase) in consumption taxes refund receivable(137,372)

316,317

Decrease (increase) in prepaid expenses(15,396)(11,670)

Increase (decrease) in operating accounts payable

40,529(1,439)

Increase (decrease) in accrued expenses

27,96033,967

Increase (decrease) in advances received

110,640

111,022

Decrease (increase) in long-term prepaid expenses

1,932(23,789)

Other, net

10,270151,144

Subtotal

2,277,471

3,186,189

23

23(136,806)(160,480)

(862)

(974)

2,139,825

3,024,757(21,077,406)(22,526,530)

Proceeds from leasehold and guarantee deposits received in trust

270,413

470,704

Proceeds from restricted deposit

696,902－

Payments into restricted deposits(270,413)(282,422)(20,380,504)(22,338,248)

Proceeds from long-term borrowings

9,900,000

13,774,000

Repayments of long-term borrowings(900,000)(6,574,000)－

1,983,730

Proceeds from issuance of investment units

10,844,907

13,129,251

Distributions paid

(1,436,138)(1,698,665)

Net cash provided by (used in) financing activities

18,408,768

20,614,316

Net increase (decrease) in cash and cash equivalents

168,089

1,300,825

Cash and cash equivalents at beginning of period

3,871,510

4,039,600

Cash and cash equivalents at end of period

4,039,600

5,340,425

Income before income taxes
Depreciation

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment in trust

Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from issuance of investment corporation bonds－

9－