Summary of Financial Results for the Fiscal Period Ended July 31, 2019 (REIT)
REIT Securities Issuer
Securities Code
Representative

Mitsui Fudosan Logistics Park Inc.
3471
Masayuki Isobe, Executive Director

Asset Management Company
Representative
Inquiries

Mitsui Fudosan Logistics REIT Management Co., Ltd.
Chishu Zushi, President and Chief Executive Officer
Tatsu Makino, Director & General Manager of Finance Division
Tel. +81-3-6327-5160

September 13, 2019
Tokyo Stock Exchange
https://www.mflp-r.co.jp/en/

Stock Exchange Listing
WebsiteScheduled date of submission of securities report:
Scheduled date of commencement of distribution payout:

October 24, 2019
October 15, 2019

Supplementary materials for financial results:
Holding investor presentation for financial results:

Yes
Yes (for analysts and institutional investors)(Amounts less than ¥1 million have been rounded down)

1. Financial Results for the Fiscal Period Ended July 31, 2019 (February 1, 2019 to July 31, 2019)(1) Results of Operations(% figures denote rate of period-on-period change)
Operating revenues

Operating income

Millions of yen

Fiscal period ended
July 31, 2019
Fiscal period ended
January 31, 2019%

Ordinary income

Millions of yen%

Net income

Millions of yen%

Millions of yen

%

4,969

51.5

2,318

48.6

2,203

44.9

2,202

44.9

3,280

4.2

1,560

4.1

1,520

5.2

1,519

5.2

Net income per unit

Return on unitholders’equityYen

Fiscal period ended
July 31, 2019
Fiscal period ended
January 31, 2019

Ratio of ordinary income Ratio of ordinary income
to total assets
to operating revenues

%

%

%

5,823

2.4

1.7

44.3

5,783

2.1

1.5

46.3

(2) Distributions
Total amount of
Total amount ofDistributions perDistributions per
distributions
Total amount of
distributions
unit (excluding
Distributions inunit (including(excluding
distributions in(including
distributions inexcess of
distributions in
distributions inexcess of
distributions inexcess ofretainedexcess ofexcess ofretainedexcess ofretainedearnings per unit
retainedretainedearnings
retainedearnings)
earnings)
earnings)
earnings)
Yen

Millions of yen

Yen

Millions of yen

Yen

Millions of yen

Payoutratio

Ratio ofdistributions
to net assets%%

Fiscal period ended
5,811
2,202
685
259
6,496
2,461 100.0
2.0
July 31, 2019
Fiscal period ended
5,783
1,519
322
84
6,105
1,604 100.0
2.1January 31, 2019
Notes:
1. Due to the issuance of new investment units, the payout ratio for the fiscal period ended July 31, 2019 is calculated using thefollowing formula and rounded to the first decimal place.
Payout ratio = Total amount of distributions (excluding distributions in excess of retained earnings) ÷ Net income × 100
2. The total amount of distributions in excess of retained earnings for the fiscal period ended July 31, 2019 and the fiscal period ended
January 31, 2019 is entirely return of capital applicable to distribution reducing unitholders’ capital for tax purposes.
3. The ratios of decreasing surplus attributable to distributions in excess of retained earnings (return of capital applicable to distribution
reducing unitholders’ capital for tax purposes) for the fiscal period ended July 31, 2019 and the fiscal period ended January 31,
2019 are 0.003 and 0.001, respectively. This calculation is based on Article 23, Paragraph 1, Item 4 of the Order for Enforcementof the Corporation Tax Act.

(3) Financial Position
Total assets

Ratio of unitholders’equity to total assets

Net assets

Net assets per unit

Millions of yen

Millions of yen

160,681109,28468.0

288,349

104,591

73,39070.2

279,292

Cash flows fromoperating activities

Cash flows frominvesting activities

Fiscal period ended
July 31, 2019
Fiscal period ended
January 31, 2019%

Yen

(4) Cash Flows
Cash flows fromfinancing activities

Cash and cash
equivalents

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,532(52,724)

52,379

4,159

3,119

(5,372)

2,468

2,971

Fiscal period ended
July 31, 2019
Fiscal period ended
January 31, 2019

2. Forecast for the Fiscal Period Ending January 31, 2020 (August 1, 2019 to January 31, 2020) and the Fiscal Period Ending July
31, 2020 (February 1, 2020 to July 31, 2020)(% figures denote rate of period-on-period change)

Operating revenues

Operating income

Ordinary income

Millions ofyenMillions ofyenMillions of
yen

%

%

%

Distributions
Distributions
per unit
Distributions
per unit(excluding
in excess of(including
distributions
retained
distributions
in excess of earnings per in excess ofretained
unit
retainedearnings)
earnings)

Net income

Millions of
yen

%

Yen

Yen

Yen

Fiscal period ending
5,077
2.2
2,298
(0.9)
2,215
0.5
2,214
0.5
5,843
698
6,541
January 31, 2020
Fiscal period ending
5,088
0.2
2,186
(4.9)
2,106
(4.9)
2,105
(4.9)
5,554
792
6,346
July 31, 2020
(Reference) Expected net income per unit (Expected net income/Expected number of investment units at the end of the fiscal period)
For the fiscal period ending January 31, 2020: ¥5,842
For the fiscal period ending July 31, 2020: ¥5,554
 Other(1) Changes in accounting policies, changes in accounting estimates, or retrospective restatements(i) Changes in accounting policies due to revisions to accounting standards, etc.:
None(ii) Changes in accounting policies other than (i) above:None(iii) Changes in accounting estimates:None(iv) Retrospective restatements:
None(2) Total number of investment units issued and outstanding(i) Total number of investment units issued and outstanding at the end of the fiscal period (including treasury units)
Fiscal period ended July 31, 2019
379,000 units
Fiscal period ended January 31, 2019262,774 units(ii) Number of treasury units at the end of the fiscal period
0 units
Fiscal period ended January 31, 2019
0 units
Fiscal period ended July 31, 2019
(Note)
Please refer to “Notes to Per Unit Information” on page 16 for the number of investment units used as the basis forcalculating net income per unit.
 Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
 Special notes
Forecasts of financial results and other forward-looking statements contained in this material are based on information currently
available to and certain assumptions deemed reasonable by Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”). Actual operating
performance, etc. may differ significantly from these forecasts due to a variety of factors. Furthermore, these forecasts do notguarantee the above distribution amounts.
For details of assumptions for the above forecast figures, please refer to “Forecast Assumptions for the Fiscal Period Ending January
31, 2020 (August 1, 2019 to January 31, 2020) and the Fiscal Period Ending July 31, 2020 (February 1, 2020 to July 31, 2020)”
described on page 5.

Table of contents
1. Status of Asset Management ....................................................................................................................... 2(1) Results of Operations ............................................................................................................................. 2(Summary of results for the reporting period) ....................................................................................... 2(Outlook for the fiscal period ending January 31, 2020) ....................................................................... 3
2. Financial Statements .................................................................................................................................... 7(1) Balance Sheets ....................................................................................................................................... 7(2) Statements of Income ............................................................................................................................. 9(3) Statements of Changes in Net Assets ................................................................................................... 10(4) Statements of Cash Distributions ......................................................................................................... 11(5) Statements of Cash Flows .................................................................................................................... 12(6) Notes to Going Concern Assumption ................................................................................................... 13(7) Notes to Significant Accounting Policies ............................................................................................. 13(8) Notes to Financial Statements .............................................................................................................. 14(9) Changes in Total Number of Investment Units Issued and Outstanding.............................................. 18
3. Reference Information ............................................................................................................................... 20(1) Status of Investment ............................................................................................................................. 20(2) Investment Assets................................................................................................................................. 21i)

Major investment securities ......................................................................................................... 21ii)

Investment properties .................................................................................................................. 21iii) Other major investment assets ..................................................................................................... 21
(A)
(B)
(C)
(D)

Summary of the assets held ................................................................................................. 21
Summary of lease ................................................................................................................ 24
Capital expenditures of real estate held............................................................................... 29
Status of individual asset earnings ...................................................................................... 31

-1-

1.

Status of Asset Management(1)

Results of Operations(Summary of results for the reporting period)i) Brief history of the investment corporation
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March
4, 2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including
subsequent amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “AssetManagement Company”) as the organizer, and listed on the Real Estate Investment Trust Securities Market (J-REIT section)of Tokyo Stock Exchange, Inc. (“Tokyo Stock Exchange”) on August 2, 2016 (Securities Code: 3471). MFLP-REIT held
assets totaling 16 properties amounting to a total acquisition price of ¥156.7 billion as at the end of the fiscal period underreview.

ii) Investment environment and management performance
The Japanese economy has been on an expansionary trend against the backdrop of accommodative financial conditions andsupport from government cash injection, while overseas economies have been growing moderately on the whole despite signsof slowdown. In addition, capital investment has increased modestly, amid improvement in corporate profits andaccommodative financial conditions, mainly due to capacity-increase investment in line with the expansionary trend, urban
redevelopment investment, and labor-saving investment to address labor shortage. Private consumption has also been
gradually increasing amid improvement in the employment and income situation. In the logistics market, with the 3PL
business (Note) specializing in outsourced logistics services expanding in market size and the needs of 3PL providers forrental of multifunctional and highly-convenient logistics facilities on the rise, the demand for leading-edge logistics facilities
is expected to continue to increase.
Under such circumstances, MFLP-REIT upholds a basic policy of pursuing maximization of unitholder value by achieving
sustainable growth through formation of a strategic partnership in the logistics facilities business with Mitsui Fudosan Co.,
Ltd. (“Mitsui Fudosan”). During the fiscal period under review (fiscal period ended July 31, 2019), MFLP-REIT acquired
MFLP Hino (additional acquisition of 10% quasi co-ownership interest; acquisition price of ¥5,013 million), MFLP Inazawa(acquisition price of ¥16,200 million), MFLP Atsugi II (acquisition price of ¥13,100 million), MFLP Fukuoka I (acquisitionof 81% quasi co-ownership interest; acquisition price of ¥4,263 million) and MFIP Inzai (additional acquisition of 80% quasi
co-ownership interest; acquisition price of ¥10,040 million) in February 2019, MFLP Tsukuba (additional acquisition of 40%
quasi co-ownership interest; acquisition price of ¥3,512 million) in March 2019, and MFLP Fukuoka I (additional acquisitionof 19% quasi co-ownership interest; acquisition price of ¥1,000 million) in April 2019, in accordance with theaforementioned policy.
Furthermore, MFLP-REIT has conducted steady management of 16 properties held (total acquisition price of ¥156.7 billion)
to maintain an excellent occupancy rate of 100.0% for the entire portfolio as at the end of the fiscal period under review.
(Note)“3PL business” refers to the third-party logistics business (business of providing logistics services to client companies outsourcing part or all of their
supply chain management functions).

iii) Overview of financing
MFLP-REIT procured funds of ¥33,617 million through public offering with a payment date of February 1, 2019, and ¥1,678
million through third-party allotment with a payment date of February 27, 2019. As a result, unitholders’ capital (net) was¥107,081 million at the end of the fiscal period under review. In the fiscal period under review, MFLP-REIT executed debt
financing of ¥17,900 million (short-terms loan payable of ¥2,900 million; long-term loans payable of ¥15,000 million) in
February 2019 to fund the acquisitions of MFLP Hino, MFLP Inazawa, MFLP Atsugi II, MFLP Fukuoka I and MFIP Inzai
and to repay short-term loans payable; ¥1,100 million (short-terms loan payable) in March 2019 to fund the acquisition of
MFLP Tsukuba; ¥3,900 million (short-terms loan payable) in April 2019 to fund the acquisition of MFLP Fukuoka I and to
repay short-term loans payable; ¥1,600 million (short-terms loan payable) in April 2019 and ¥1,100 million (short-terms loan
payable) in May 2019 to pay out distributions and to repay short-term loans payable; and ¥1,100 million (short-term loans
payable) in May 2019, and ¥1,000 million (short-term loans payable) in July 2019 to repay short-term loans payable, andexecuted repayments of a total of ¥8,900 million (short-term loans payable) using funds from part of short-term loans payableprocured in the fiscal period under review and internal reserve arising from depreciation, etc. As a result, at the end of the
fiscal period under review, the balance of interest-bearing debt was ¥46,800 million (short-term loans payable of ¥5,500
million; long-term loans payable of ¥41,300 million) and the ratio of interest-bearing debt to total assets (LTV ratio) was
29.1%.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.
Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Stableiv) Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating
revenues of ¥4,969 million, operating income of ¥2,318 million, ordinary income of ¥2,203 million, and net income of¥2,202 million.
-2-

In accordance with the distribution policy as defined in the Articles of Incorporation of MFLP-REIT, distributions for the
fiscal period under review shall be subject to application of special provisions for taxation of investment corporations (Article
67-15 of the Act on Special Measures Concerning Taxation). Based on this, MFLP-REIT declared the distribution of¥2,202,369,000, which is the integral multiple of the total number of investment units issued and outstanding (379,000 units)of unappropriated retained earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of ¥5,811.
In addition, in accordance with the distribution policy as defined in the Articles of Incorporation, MFLP-REIT shall execute
distributions of cash in excess of retained earnings each fiscal period on a continuous basis in principle (Note 1). Based on
this, MFLP-REIT declared the distribution of ¥259 million, which is the amount almost equivalent to the remaining amountafter subtracting the distribution of earnings of ¥2,202 million from ¥2,462 million or 70% of FFO (Note 2), as return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes. Accordingly, MFLP-REIT declared
distribution in excess of retained earnings per unit of ¥685.
Notes:
1.

In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution per unit isexpected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units,etc., a temporary distribution in excess of retained earnings may be executed in order to standardize the amount of the distribution per unit.
However, from the perspective of continuing to maintain owned assets for a long period of time, in cases where the above distribution of cash is
executed, and where the amount equal to the equivalent of depreciation and amortization for the applicable operating period minus the amount of
the distribution in excess of retained earnings for the applicable operating period falls below the standard amount of capital for building
maintenance (Note 3), the distribution in excess of retained earnings will be decreased by a maximum amount that the distribution amount does
not fall below the total equivalent of the distribution of earnings, and this may lead to cases where distribution in excess of retained earnings will
not be executed. In addition, from the perspective of continuing stable financial management, distributions in excess of retained earnings will not
be executed in cases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.

2.

“FFO” is an acronym for funds from operations and refers to the figure calculated by adding depreciation and amortization of rental properties forthe applicable operating period and loss on retirement of non-current assets to net income (excluding gain (loss) on sales of real estate properties,etc.).

3.

“Standard amount of capital for building maintenance” refers to the “amount equivalent to the capital expenditure amount noted in the Building
Condition Evaluation Report averaged over 12 years,” from which an amount representing six months of capital expenditure is determined andthen multiplied by two.

4.

Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value after depreciation of owned real estateon the applicable accounts settlement date + Appraisal value of owned real estate on the applicable accounts settlement date

(Outlook for the fiscal period ending January 31, 2020)i) Future management policy
MFLP-REIT has established a strategic and collaborative partnership in the logistics facilities business with Mitsui Fudosan,
under which it seeks to maximize unitholder value by focusing investments primarily in logistics facilities as a basic policy.
Based on this policy, in addition to expansion of asset size for the purpose of further stabilizing the revenues base continuing
into future periods, MFLP-REIT will perform stable and efficient financial management by addressing changes in theexternal and internal environment to maximize unitholder value.
(A)

External growth strategy“External growth based on the growth potential and extensive pipeline of Mitsui Fudosan’s logistics facilities business”
MFLP-REIT aims for continuous growth by focusing investments on MFLP facilities (leading-edge logistics facilities
with Mitsui Fudosan quality (Note 1)), utilizing the right of first look and preferential negotiation based on “Right offirst look and preferential negotiation agreement” that was concluded with Mitsui Fudosan, which boasts high growthin the logistics facilities business, and the Asset Management Company.
Notes:(B)

1.

Based on the principles of “harmonious coexistence” and “linking diverse values” set by the Mitsui Fudosan Group (Note 2), Mitsui
Fudosan’s logistics facilities business keeps up efforts aimed at not only providing logistics facilities space but also creating value beyond
conventional boundaries. In order to achieve this, MFLP-REIT incorporates the highly-specialized and advanced management, operational
know-how, etc. accumulated in the office building business, retail properties business, etc., and the know-how, etc. accumulated throughurban development as a comprehensive real estate company. It also captures the diverse needs that change with the times of the various
stakeholders associated with logistics facilities (tenants, people working at the logistics facilities and local community). MFLP-REIT
refers to the quality of logistics facilities realized through these efforts by the name “Mitsui Fudosan quality.”2.

“Mitsui Fudosan Group” refers to a corporate group comprising Mitsui Fudosan, and Mitsui Fudosan’s consolidated subsidiaries and
Mitsui Fudosan’s associates accounted for using the equity method. The same shall apply hereinafter.

Internal growth strategy“Stable management utilizing the Platform (business foundation) and client network of the Mitsui Fudosan Group”
MFLP-REIT aims for stable management by utilizing the Platform (business foundation) and client network that the
Mitsui Fudosan Group has developed over years as a comprehensive real estate company.

(C)

Financial strategy“Financial and cash management with an emphasis on stability and efficiency”-3-

MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units andborrowings, and at the same time it will aim to secure both stable distribution levels and efficient cash management for
distributions through continuous distributions in excess of retained earnings (return of capital) based on cash flow(FFO).
ii) Significant subsequent events
Not applicable.
iii) Forecast for the Fiscal Period
MFLP-REIT’s forecasts for the fiscal period ending January 31, 2020 (August 1, 2019 to January 31, 2020) and the fiscal
period ending July 31, 2020 (February 1, 2020 to July 31, 2020) are as follows:(% figures denote rate of period-on-period change)
Distributions
Distributions
per unit
Distributions
per unit(excluding
in excess of(including
Net income
distributions
retained
distributions
in excess of earnings per in excess ofretained
unit
retainedearnings)
earnings)

Operating revenues

Operating income

Ordinary income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Fiscal period ending
January 31, 2020

5,077

2.2

2,298

(0.9)

2,215

0.5

2,214

0.5

5,843

698

6,541

Fiscal period ending
July 31, 2020

5,088

0.2

2,186

(4.9)

2,106

(4.9)

2,105

(4.9)

5,554

792

6,346

Yen

Yen

Yen

For the assumptions for these forecasts, please refer to “Forecast Assumptions for the Fiscal Period Ending January 31, 2020
(August 1, 2019 to January 31, 2020) and the Fiscal Period Ending July 31, 2020 (February 1, 2020 to July 31, 2020)”
described on page 5.
Notes:
1.

The above forecasts are the current estimations calculated based upon certain assumptions. Future additional acquisitions or sales of real estate,real estate market trends, interest rate fluctuation and other situation surrounding MFLP-REIT may cause differences from the assumptions. As aresult, actual operating revenues, operating income, ordinary income, net income, distributions per unit (excluding distributions in excess ofretained earnings) and distributions in excess of retained earnings per unit may vary from these forecasts. Furthermore, these forecasts are in no
way a guarantee of amounts of distributions or distributions in excess of retained earnings.

2.

Monetary amounts have been rounded down to the display unit, and percentage values have been rounded to the nearest tenth of a percent.

-4-Forecast Assumptions for the Fiscal Period Ending January 31, 2020 (August 1, 2019 to January 31, 2020) and the Fiscal PeriodEnding July 31, 2020 (February 1, 2020 to July 31, 2020)
Item

Assumptions

Calculation period The fiscal period ending January 31, 2020 (the seventh fiscal period): August 1, 2019 to January 31,2020 (184 days) The fiscal period ending July 31, 2020 (the eighth fiscal period): February 1, 2020 to July 31, 2020 (182days)

Investment assets

 It is assumed that (i) MFLP-REIT will not acquire any new properties other than the trust beneficiaryinterests in real estate held by MFLP-REIT as of July 31, 2019 (total of 16 properties) (“Assets Currently
Held”) and (ii) the abovementioned assets will continue to be held as there will be no disposition, etc. of
the assets held by MFLP-REIT until the end of the fiscal period ending July 31, 2020. However, theactual number of the investment assets may change due to the acquisition of new properties other thanthe Assets Currently Held or the disposition, etc. of the Assets Currently Held.

Operating revenues

 Leasing business revenues are calculated based on lease contracts already executed that are in effect as oftoday and other factors, including tenant movements and market trends.
 Calculations assume that there will be no gain or loss on sale of real estate.

Operating expenses

 Leasing business expenses, which are major operating expenses, other than depreciation have been
calculated by taking into consideration changes to expenses, with the historical results used as abenchmark.
 Depreciation is calculated using the straight-line method. Depreciation is expected to be ¥1,327 million
for the fiscal period ending January 31, 2020 and ¥1,331 million for the fiscal period ending July 31,
2020.
 Leasing business income (excluding gain on sale of real estate) after the deduction of leasing business
expenses (including depreciation) is expected to be ¥2,899 million for the fiscal period ending January
31, 2020 and ¥2,752 million for the fiscal period ending July 31, 2020.
 In general, property taxes, city planning taxes and other charges levied on new properties acquired aresettled at the time of acquisition by prorating for the period held with the present owner. However, as
MFLP-REIT includes an amount equivalent to the settled amount in the acquisitions costs for theproperty, the amount is not recorded as expenses during the operating period that includes the day on
which the property is acquired. As such, expenses relating to property taxes, city planning taxes andother charges for the assets acquired during the fiscal period ended July 31, 2019 for fiscal 2020 will bebooked from the fiscal period ending July 31, 2020.
 Repair expenses for buildings are expected to be ¥53 million for the fiscal period ending January 31,2020 and ¥51 million for the fiscal period ending July 31, 2020 based on the medium to long-term repair
plan established by the Asset Management Company. However, given the possibility that repair expenses
may increase or additional expenses may be incurred due to difficult-to-forecast factors, the actual results
may differ significantly from the forecast amount.

Non-operating
expenses Interest expenses and other expenses related to borrowings are expected to be ¥64 million for the fiscal
period ending January 31, 2020 and ¥61 million for the fiscal period ending July 31, 2020. The expenses
for the issuance of new investment units, of which payments were completed on February 1, 2019 andFebruary 27, 2019, shall be amortized on a monthly basis over a three-year period starting from theirmonth of issuance. Amortization of investment unit issuance expenses is expected to be ¥18 million for
the fiscal period ending January 31, 2020 and ¥18 million for the fiscal period ending July 31, 2020.

 It is assumed that total interest-bearing debt will be ¥42,900 million at the end of the fiscal period ending
January 31, 2020 and ¥41,300 million at the end of the fiscal period ending July 31, 2020.
 The loan to value (LTV) ratio is expected to be 27.6% at the end of the fiscal period ending January 31,
Interest-bearing debt
2020 and 26.9% at the end of the fiscal period ending July 31, 2020.
The following formula is used to calculate LTV ratio.
LTV ratio = Total interest-bearing debt ÷ Total assets × 100

Investment units It is assumed that the total number of investment units issued and outstanding is the 379,000 units as ofthe date of this document and there will be no change in the number of investment units by issuing newinvestment units, etc. through to the end of the fiscal period ending July 31, 2020.
 Distributions per unit (excluding distributions in excess of retained earnings) and distributions in excess
of retained earnings per unit are calculated based on the 379,000 units of expected total number ofinvestment units issued and outstanding at the end of the fiscal period ending January 31, 2020 and thefiscal period ending July 31, 2020.

 Distributions per unit (excluding distributions in excess of retained earnings) is calculated in accordanceDistributions per unit
with MFLP-REIT’s policy on distributions of cash described in its Articles of Incorporation and(excluding
assuming that the entire amount of earnings will be distributed.
distributions in However, distributions per unit (excluding distributions in excess of retained earnings) may change for aexcess of retained
variety of reasons, including changes in MFLP-REIT’s investment assets, changes in leasing businessearnings)
revenues due to tenant movements, etc., and/or the occurrence of unforeseen repairs and maintenance,
etc.
-5-

Item

Distributions inexcess of retained
earnings per unit

Assumptions
 Distributions in excess of retained earnings per unit is calculated in accordance with MFLP-REIT’s
policy on distributions of cash described in its Articles of Incorporation and the asset management
guidelines for the asset management company. Total distributions in excess of retained earnings are
expected to be ¥264 million for the fiscal period ending January 31, 2020 and ¥300 million for the fiscal
period ending July 31, 2020.
 MFLP-REIT emphasizes cash flow generated by asset management, such as the leasing of investment
assets, excluding gain or loss on sale of real estate. For the time being, it is MFLP-REIT’s policy to
calculate the amount distributable, including distributions in excess of retained earnings, to be around
70% of FFO up to a maximum of 75% of FFO and continually distribute the amount of this that exceeds
the amount of distributions of earnings, within a scope where financial stability can be secured andowned assets can be maintained for a long duration of time, as distributions in excess of retained
earnings determined based on a comprehensive judgment of the situation (the “continuous distributions
in excess of retained earnings”). However, the continuous distributions in excess of retained earnings
may be terminated given the economic environment, trends in the real estate market or leasing market,
the situation surrounding owned assets, the percentage of distributions in excess of retained earnings
accounted for in depreciation during MFLP-REIT’s applicable operating period (Note 1), and thesituation pertaining to LTV level and retained cash and deposits, among other factors.
 In addition to the continuous distributions in excess of retained earnings, in cases where the distribution
amount for distributions per unit (including distributions in excess of retained earnings) is expected totemporarily decline by a certain degree due to such factors as the procurement of funds through theissuance of new investment units, etc., a temporary distributions in excess of retained earnings may be
executed in order to standardize the amount of the distributions per unit (including distributions in excess
of retained earnings).
 However, from the perspective of continuing to maintain owned assets for a long period of time, in cases
where the above distribution of cash is executed, and where the amount equal to the equivalent ofdepreciation and amortization for the applicable operating period minus the amount of the distribution inexcess of retained earnings for the applicable operating period falls below the standard amount of capitalfor building maintenance (Note 2), the distribution in excess of retained earnings will be decreased by amaximum amount that the distribution amount does not fall below the total equivalent of the distributionof earnings, and this may lead to cases where distribution in excess of retained earnings will not be
executed.
 In addition, from the perspective of continuing stable financial management, distributions in excess ofretained earnings will not be executed in cases where the appraisal LTV ratio (Note 3) exceeds 60% in
the event that the above distribution of cash is executed.
Notes:Other

1.

The maximum will be an amount equivalent to 60% of the depreciation for the applicable operating period.

2.

“Standard amount of capital for building maintenance” refers to the “amount equivalent to the capital expenditure amountnoted in the Building Condition Evaluation Report averaged over 12 years,” from which an amount representing six monthsof capital expenditure is determined and then multiplied by two.

3.

Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value after depreciation of
owned real estate on the applicable accounts settlement date + Appraisal value of owned real estate on the applicableaccounts settlement date

 It is assumed that there will be no change in legislation, taxation, accounting standards, listing
regulations imposed by the Tokyo Stock Exchange, rules and requirements imposed by The Investment
Trusts Association, Japan, etc. that will impact the aforementioned forecasts.
 It is assumed that there will be no unforeseen material changes in general economic trends, real estatemarket conditions, etc.

-6-

2.

Financial Statements(1) Balance Sheets(Thousands of yen)
5th period(As of January 31, 2019)

6th period(As of July 31, 2019)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust

936,079

1,085,379

2,035,779

3,074,601

Operating accounts receivable

35,257284,297

Prepaid expenses

17,47825,701

Consumption taxes receivable

99,7102,261,176

Other
Total current assets

4,977

14,2013,129,283

6,745,357

Non-current assets
Property and equipment
Buildings in trust

52,057,963

82,222,802

Accumulated depreciation(2,613,907)(3,714,286)

Buildings in trust, net

49,444,055

78,508,515

1,738,043

2,847,469

Structures in trust
Accumulated depreciation(276,406)(389,371)

Structures in trust, net

1,461,637

2,458,098

Machinery and equipment in trust

2,202,041

2,984,550

Accumulated depreciation(335,865)(436,905)

Machinery and equipment in trust, net

1,866,176

2,547,645

Vehicles and transport equipment in trust

2,642

2,642

Accumulated depreciation

(110)

(440)

Vehicles and transport equipment in trust, net

2,532

2,201

Tools, furniture and fixtures in trust

2,175

4,222

Accumulated depreciation

(258)

(484)

Tools, furniture and fixtures in trust, net

1,917

3,737

48,548,367

70,241,485

70,985–

101,395,672

153,761,683

Software

5,996

4,876

Total intangible assets

5,996

4,876

Land in trust
Construction in progress in trust
Total property and equipment
Intangible assets

Investments and other assets
Lease and guarantee deposits

10,00010,000Long-term prepaid expenses

49,83365,092

15

16

1,050

1,050

Deferred tax assets
Other
Total investments and other assets

60,89976,159101,462,568

153,842,719

Investment unit issuance expenses–

93,614

Total deferred assets–

93,614

104,591,851

160,681,690

Total non-current assets
Deferred assets

Total assets-7-

(Thousands of yen)
5th period(As of January 31, 2019)

6th period(As of July 31, 2019)

Liabilities
Current liabilities
Operating accounts payable

205,661

228,467

Short-term loans payable

1,700,000

5,500,000

Accounts payable

444,711502,181

Accrued expenses

210

312

Income taxes payable

929

944

570,502849,898

382

114

2,922,397

7,081,918

Long-term loans payable

26,300,000

41,300,000

Tenant leasehold and security deposits in trust

1,978,772

3,015,304

Total non-current liabilities

28,278,772

44,315,304

31,201,169

51,397,223

72,120,699

107,416,211(249,757)(334,370)

71,870,942

107,081,840

1,519,739

2,202,626

Advances received
Other
Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Unitholders’ capital
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’ capital (net)
Retained earnings
Unappropriated retained earnings (undisposed loss)
Total retained earnings

1,519,739

2,202,626

Total unitholders’ equity

73,390,682

109,284,466

73,390,682

109,284,466

104,591,851

160,681,690

Total net assets
Total liabilities and net assets

-8-

(2)

Statements of Income(Thousands of yen)
5th period(From August 1, 2018
to January 31, 2019)

6th period(From February 1, 2019
to July 31, 2019)

Operating revenues
Property-related revenues*1, *23,135,601*1, *2

4,766,132

Other revenues related to property leasing*1, *2

145,331*1, *2

202,987

Total operating revenues

3,280,932

4,969,119

Operating expenses
Property-related expenses*1, *2

Asset management fee

1,338,137*1, *2

2,134,534

310,249

439,926

Asset custody fee

5,012

5,229

Administrative service fees

15,56017,000

Directors’ compensations

5,400

5,400

Audit fee

9,100

9,100

Other operating expenses

37,20938,950Total operating expenses

1,720,669

2,650,140

1,560,262

2,318,979

14

18

Insurance income

35,881

3,010

Interest on refund

866

13

0

0

36,762

3,042

36,02659,004

Amortization of investment unit issuance expenses–

18,722

Offering costs associated with issuance of investment
units

–

32,792

Operating income
Non-operating income
Interest income

Other
Total non-operating income
Non-operating expenses
Interest expenses

Borrowing related expenses
Disaster recovery expenses

4,983
*3

31,030

4,016
*3

2,230

Other

4,332

1,800

Total non-operating expenses

76,372

118,566

Ordinary income

1,520,653

2,203,454

Income before income taxes

1,520,653

2,203,454

Income taxes - current

931

947

Income taxes - deferred

(2)

(0)

Total income taxes

929

946

1,519,723

2,202,508

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

-9-

16

117

1,519,739

2,202,626

(3)Statements of Changes in Net Assets
5th period (From August 1, 2018 to January 31, 2019)(Thousands of yen)
Unitholders’ capital
Unitholders’ capital

Balance at
beginning of
periodUnitholders’capitalDeduction fromunitholders’capital72,120,699

Retained earnings
Unitholders’capital (net)Unappropriatedretained earnings(undisposed loss)

Total retained
earnings(161,728)

71,958,971

1,444,484

1,444,484(88,029)(88,029)

Total unitholders’equityTotal net assets

73,403,456

73,403,456(88,029)(88,029)

Changes of items
during period
Distribution inexcess ofretained earnings
Dividends ofearnings(1,444,468)(1,444,468)(1,444,468)(1,444,468)

Net income

1,519,723

1,519,723

1,519,723

1,519,723

Total changes of
items during
period–(88,029)(88,029)

75,25475,254(12,774)(12,774)

Balance at end of
period72,120,699(249,757)

71,870,942

1,519,739

1,519,739

73,390,682

73,390,682

6th period (From February 1, 2019 to July 31, 2019)(Thousands of yen)
Unitholders’ capital
Unitholders’ capital

Balance at
beginning of
periodUnitholders’capitalDeduction fromunitholders’capital72,120,699(249,757)

Retained earnings
Total unitholders’equityTotal net assets

73,390,682

73,390,682

35,295,511

35,295,511

35,295,511(84,613)(84,613)(84,613)Unitholders’capital (net)Unappropriatedretained earnings(undisposed loss)

Total retained
earnings

71,870,942

1,519,739

1,519,739

Changes of items
during period
Issuance of new
investment units

35,295,511

Distribution inexcess ofretained earnings(84,613)

Dividends ofearnings(1,519,622)(1,519,622)(1,519,622)(1,519,622)

Net income

2,202,508

2,202,508

2,202,508

2,202,508

Total changes of
items during
period35,295,511(84,613)35,210,898

682,886

682,886

35,893,784

35,893,784

Balance at end of
period107,416,211(334,370)

107,081,840

2,202,626

2,202,626

109,284,466

109,284,466- 10 -

(4)Statements of Cash Distributions(Yen)
5th period(From August 1, 2018
to January 31, 2019)I

Unappropriated retained earnings

II

Distributions in excess of retained
earnings

6th period(From February 1, 2019
to July 31, 2019)

1,519,739,902

Deduction from unitholders’ capital
III Distributions(Distribution per unit)

2,202,626,192

84,613,228

259,615,000

1,604,235,270

2,461,984,000(6,105)(6,496)

1,519,622,042

2,202,369,000(5,783)(5,811)

Of which: Distribution in excess ofretained earnings

84,613,228

259,615,000(Of which: Distribution in excess
of retained earnings per unit)

(322)

(685)

117,860

257,192

Of which: Distribution of earnings(Of which: Distribution of
earnings per unit)

IV Retained earnings carried forward

In accordance with the distribution policy
as defined in the Article 35, Paragraph 1of the Articles of Incorporation of MFLPREIT, distributions shall be in excess of
the amount equivalent to 90% of theamount of earnings available for dividends
defined in the Article 67-15 of the Act on
Special Measures Concerning Taxation.
Based on this policy, for the fiscal period
ended January 31, 2019, MFLP-REIT
declared a distribution amount of¥1,519,622,042, which is the maximum
value of the integral multiple of the total
number of investment units issued andoutstanding at the end of the period inamounts not in excess of unappropriatedretained earnings.
Furthermore, based on the distribution
policy as defined in the Article 35,
Method of calculating distribution amount
Paragraph 2 of the Articles ofIncorporation, MFLP-REIT executes the
distribution of cash in excess of retained
earnings (return of capital applicable to
distribution reducing unitholders’ capitalfor tax purposes) each fiscal period on acontinuous basis.
Based on this policy, for the fiscal period
ended January 31, 2019, MFLP-REIT
declared the distribution of ¥84,613,228,
which is calculated as being almost
equivalent to the remaining amount after
subtracting the distribution of earnings of¥1,519,622,042 from ¥1,604,409,211 or
70% of FFO (funds from operation), as
distribution of cash in excess of retained
earnings (return of capital applicable to
distribution reducing unitholders’ capitalfor tax purposes).

In accordance with the distribution policy
as defined in the Article 35, Paragraph 1of the Articles of Incorporation of MFLPREIT, distributions shall be in excess of
the amount equivalent to 90% of theamount of earnings available for dividends
defined in the Article 67-15 of the Act on
Special Measures Concerning Taxation.
Based on this policy, for the fiscal period
ended July 31, 2019, MFLP-REIT
declared a distribution amount of¥2,202,369,000, which is the maximum
value of the integral multiple of the total
number of investment units issued andoutstanding at the end of the period inamounts not in excess of unappropriatedretained earnings.
Furthermore, based on the distribution
policy as defined in the Article 35,
Paragraph 2 of the Articles ofIncorporation, MFLP-REIT executes the
distribution of cash in excess of retained
earnings (return of capital applicable to
distribution reducing unitholders’ capitalfor tax purposes) each fiscal period on acontinuous basis.
Based on this policy, for the fiscal period
ended July 31, 2019, MFLP-REIT
declared the distribution of ¥259,615,000,
which is calculated as being almost
equivalent to the remaining amount after
subtracting the distribution of earnings of¥2,202,369,000 from ¥2,462,214,609 or
70% of FFO (funds from operation), as
distribution of cash in excess of retained
earnings (return of capital applicable to
distribution reducing unitholders’ capitalfor tax purposes).

Note:
MFLP-REIT may execute cash distribution in excess of distributable amount, in an amount it determines within a scope not to exceed the limit stipulated in therules and requirements imposed by the Investment Trusts Association, Japan, when MFLP-REIT considers it appropriate, given such factors as economic
environment, trends in the real estate market or leasing market, the situation surrounding owned assets and the financial condition. In addition, in case that any
cash distribution fails to meet the statutory requirements for special tax treatment for investment corporations, MFLP-REIT may execute cash distribution inexcess of distributable amount, in an amount it determines to meet the statutory requirements.

- 11 -

(5)Statements of Cash Flows(Thousands of yen)
5th period(From August 1, 2018
to January 31, 2019)

6th period(From February 1, 2019
to July 31, 2019)

Cash flows from operating activities
Income before income taxes

1,520,653

2,203,454

Depreciation and amortization

773,409

1,316,061–

18,722

Amortization of investment unit issuance expenses
Interest income

(14)

(18)

Interest expenses

36,02659,004

Decrease (increase) in operating accounts receivable

97,313(249,039)

538(8,222)

Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses(8,278)(15,258)

Decrease (increase) in consumption taxes receivable

513,340(2,161,465)

Increase (decrease) in operating accounts payable

157,601

15,191

Increase (decrease) in accounts payable

33,966

144,133

Increase (decrease) in advances received

32,233279,396

Other, net(502)(9,491)

Subtotal

3,156,287

1,592,466

Interest income received

14

18(36,038)(58,902)

(885)

(932)

3,119,376

1,532,649(5,460,010)(53,760,799)(46,583)(60,770)

134,001

1,097,303(5,372,593)(52,724,267)

Proceeds from short-term loans payable

3,100,000

12,700,000

Repayments of short-term loans payable(2,100,000)(8,900,000)

Proceeds from long-term loans payable

3,000,000

15,000,000

Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property and equipment in trust
Repayments of tenant leasehold and security deposits intrust
Proceeds from tenant leasehold and security deposits intrust
Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from issuance of investment units–

35,183,174(1,443,990)(1,518,873)

Payment of distribution in excess of retained earnings(87,979)(84,562)

Net cash provided by (used in) financing activities

2,468,029

52,379,739

Net increase (decrease) in cash and cash equivalents

214,812

1,188,122

Cash and cash equivalents at beginning of period

2,757,046

2,971,858

Cash and cash equivalents at end of period

2,971,858

4,159,980

Payment of distribution of earnings- 12 -

(6)Notes to Going Concern Assumption
Not applicable.

(7)1.

Notes to Significant Accounting Policies
Method of depreciation andamortization of non-current
assets(1)

Property and equipment (including those in trust)
Amortization of property and equipment is calculated using the straight-line method
over the estimated useful lives. The useful lives of principal property and equipment
are as follows:
Buildings:
Structures:
Machinery and equipment:
Vehicles:Tools, furniture and fixtures:(2)

2 to 59 years
8 to 50 years
14 to 17 years
4 years
5 to 15 years

Intangible assets
Amortization of intangible assets is calculated using the straight-line method over theestimated useful lives.
Amortization of software for internal use is calculated using the straight-line method
over the estimated useful lives of five years at MFLP-REIT.

2.

Accounting method for deferred Investment unit issuance expenses
assetsInvestment unit issuance expenses are amortized using the straight-line method over a threeyear period.

3.

Recognition of revenues andexpenses

Taxes on property and equipment
With respect to property taxes, city planning taxes and depreciable asset taxes imposed onreal estate properties or trust beneficiary interests in real estate, of the tax amount assessedand determined, the amount corresponding to the relevant fiscal period is accounted for as
property-related expenses.
Of the amounts paid for the acquisitions of real estate properties or trust beneficiary interests
in real estate, the amount equivalent to property-related taxes is capitalized as part of theacquisition cost of the relevant property instead of being charged as expenses.
Capitalized property-related taxes amounted to ¥1,526 thousand for the 5th period and¥264,449 thousand for the 6th period.

4.

Scope of cash and cash
equivalents in the statements ofcash flows

5.

Other significant information for (1)preparation of financial
statements

Cash and cash equivalents in the statements of cash flows consist of cash on hand and cashin trust, readily-available bank deposits, readily-available bank deposits in trust and shortterm investments that are readily convertible to cash and realizable with a maturity of threemonths or less when purchased and that are subject to an insignificant risk of changes invalue.
Trust beneficiary interests in real estate
As to trust beneficiary interests in real estate that have real estate properties as assets
in trust, all accounts of assets and liabilities within assets in trust as well as all income
generated and expenses incurred from assets in trust are recorded in the relevantbalance sheet and statement of income account items.
The following material items of the assets in trust recorded in the relevant accountitems are separately presented in the accompanying balance sheets.
i)
ii)
iii)
iv)
(2)

Cash and deposits in trust
Buildings in trust, structures in trust, machinery and equipment in trust, vehicles
and transport equipment in trust, tools, furniture and fixtures in trust and land in
trust
Construction in progress in trust
Tenant leasehold and security deposits in trust

Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive ofconsumption taxes.

- 13 -

(8)Notes to Financial Statements[Notes to Statements of Income]*1.

Components of operating income from property leasing

A. Property leasing business revenues
Property-related revenues
Rental revenues
Common area charges
Other revenues related to property leasing
Utilities charges
Parking lots
Others

5th period(From August 1, 2018
to January 31, 2019)(Thousands of yen)
6th period(From February 1, 2019
to July 31, 2019)

3,026,801
108,799

3,135,601

4,587,276
178,855

4,766,132

145,331

143,571
18,247
41,168202,987

105,030
8,746
31,555

Total property leasing businessrevenues
B. Property leasing business expenses
Property-related expenses
Outsourcing service expenses
Utilities expenses
Repair expenses
Taxes and dues
Depreciation and amortization
Others3,280,932

178,765
96,567
20,247
257,608772,289
12,6594,969,119

284,400
136,92945,700332,697
1,314,941
19,864

Total property leasing business
expenses

1,338,137

2,134,534

C. Operating income from property leasing[A-B]

1,942,794

2,834,585- 14 -

*2.

Transactions with major unitholders
5th period(From August 1, 2018
to January 31, 2019)

Operating transactions:Operating revenues
Operating expenses
Non-operating transactions:Purchase of trust beneficiary interests inreal estate*3.

(Thousands of yen)
6th period(From February 1, 2019
to July 31, 2019)109,537
70,817

167,340
121,31188,42633,786,303

Disaster recovery expenses comprise the recovery expenses corresponding to the insurance received for damage fromnatural disasters as a result of the typhoons, etc. that occurred in 2018.

[Notes to Investment and Rental Properties]
MFLP-REIT owns logistics facilities and industrial properties for the purpose of earning rental income. The carrying amount,net changes in the carrying amount during the periods and fair value of these investment and rental properties are as follows:
5th period(From August 1, 2018
to January 31, 2019)(Thousands of yen)
6th period(From February 1, 2019
to July 31, 2019)

Carrying amount
Balance at beginning of period

96,664,568

101,324,687

Changes during the period

4,660,118

52,436,996

Balance at end of period

101,324,687

153,761,683

112,140,000

167,640,000

Balance at end of period
Notes:
1.

The carrying amount represents acquisition cost less accumulated depreciation.

2.

Changes in the carrying amount during the 5th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests inreal estate for one property (¥5,395,942 thousand), and the decrease mainly attributable to depreciation (¥772,289 thousand). Changes in the
carrying amount during the 6th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests in real estate forsix properties (¥53,665,177 thousand), and the decrease mainly attributable to depreciation (¥1,314,941 thousand).

3.

The fair value at the end of the period represents the appraisal value or surveyed value by external real estate appraisers.

Information about income and loss from investment and rental properties is stated in “Notes to Statements of Income.”- 15 -

[Notes to Segment and Related Information]
1.

Segment Information
Segment information has been omitted as MFLP-REIT engages in a single segment of the real estate leasing business.

2.

Related information
5th period (From August 1, 2018 to January 31, 2019)(1)

Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statements of income.

(2)

Information by geographical areai) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of thetotal operating revenues on the statements of income.

ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheets.
(3)

Information on major tenant
Disclosure of this information has been omitted because there is no tenant whose operating revenues makes up 10%
or more of total operating revenues.

6th period (From February 1, 2019 to July 31, 2019)(1)

Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statements of income.

(2)

Information by geographical areai) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of thetotal operating revenues on the statements of income.

ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheets.
(3)

Information on major tenant
Tenant name

Japan Logistic Systems Corp.

(Thousands of yen)
Related segment

Operating revenues
Not disclosed (Note)

Real estate leasing business(Note)
Not disclosed, because consent regarding disclosure of rent, etc. has not been obtained from the tenant.

[Notes to Per Unit Information]
5th period(From August 1, 2018
to January 31, 2019)

6th period(From February 1, 2019
to July 31, 2019)

Net assets per unit

¥279,292¥288,349

Net income per unit

¥5,783¥5,823

Notes:
1. Net income per unit is calculated by dividing net income by the daily weighted average number of investment units outstanding during the period.
Diluted net income per unit is not stated because there are no dilutive investment units.

- 16 -

2. The basis for calculating net income per unit is as follows:

Net income(thousands of yen)Amount not attributable to common unitholders(thousands of yen)
Net income attributable to common investment units(thousands of yen)
Average number of investment units for the period(unit)

5th period(From August 1, 2018
to January 31, 2019)

6th period(From February 1, 2019
to July 31, 2019)

1,519,723

2,202,508––

1,519,723

2,202,508

262,774

378,206[Notes to Significant Subsequent Events]
Not applicable.
[Omission of disclosure]
The notes to balance sheets, statements of changes in net assets, statements of cash flows, lease transactions, financial
instruments, securities, derivative transactions, transactions with related parties, tax effect accounting, retirement benefits
and asset retirement obligations have been omitted as the necessity to disclose them in the financial results report is deemedslight.

- 17 -

(9)Changes in Total Number of Investment Units Issued and Outstanding
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital, net,
since the establishment of MFLP-REIT.

Date

Description

Total number of investment units
issued and outstanding(units)Increase(Decrease)

Unitholders’ capital, net(Note 1)(millions of yen)

Balance

Increase(Decrease)

Balance

Remarks

March 4, 2016

Establishment throughprivate placement

600

600

300

300

(Note 2)June 15, 2016

Split of investment
units

600

1,200

–

300

(Note 3)

August 1, 2016

Capital increase
through public offering

212,800

214,000

55,44555,745(Note 4)

August 29, 2016

Capital increase
through third-party
allotment

10,000224,000

2,605

58,350(Note 5)

April 21, 2017

Distribution of cash inexcess of retained
earnings (return ofcapital)–224,000(54)

58,296(Note 6)

October 13,
2017

Distribution of cash inexcess of retained
earnings (return ofcapital)–224,000(45)

58,250(Note 7)

February 1, 2018

Capital increase
through public offering

38,000262,000

13,49571,745(Note 8)February 28,
2018

Capital increase
through third-party
allotment

774

262,774274

72,020(Note 9)April 23, 2018

Distribution of cash inexcess of retained
earnings (return ofcapital)–262,774(61)

71,958(Note 10)October 19,
2018

Distribution of cash inexcess of retained
earnings (return ofcapital)–262,774(88)

71,870(Note 11)February 1, 2019

Capital increase
through public offering

110,700

373,474

33,617

105,488(Note 12)February 27,
2019

Capital increase
through third-party
allotment

5,526

379,000

1,678

107,166(Note 13)

April 23, 2019

Distribution of cash inexcess of retained
earnings (return ofcapital)–379,000(84)

107,081(Note 14)

Notes:
1.

“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”

2.

MFLP-REIT was established at an issue price of ¥500,000 per unit.

3.

A two-for-one split of investment units was conducted on June 15, 2016 as the effective date.

4.

New investment units were issued through public offering at an issue price of ¥270,000 (paid-in amount of ¥260,550) per unit mainly for the purpose of
procuring funds for acquisition of new properties.

5.

New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥260,550 per unit.

6.

By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 16, 2017, distribution of cash in excess of retained earnings (return ofcapital) of ¥243 per unit was declared as distribution of cash for the 1st fiscal period (fiscal period ended January 31, 2017), the payout of which
commenced on April 21, 2017.

7.

By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2017, distribution of cash in excess of retained earnings(return of capital) of ¥204 per unit was declared as distribution of cash for the 2nd fiscal period (fiscal period ended July 31, 2017), the payout of which
commenced on October 13, 2017.

- 18 -

8.

New investment units were issued through public offering at an issue price of ¥367,581 (paid-in amount of ¥355,139) per unit mainly for the purpose of
procuring funds for acquisition of new properties.

9.

New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥355,139 per unit.

10. By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2018, distribution of cash in excess of retained earnings (return ofcapital) of ¥275 per unit was declared as distribution of cash for the 3rd fiscal period (fiscal period ended January 31, 2018), the payout of which
commenced on April 23, 2018.
11. By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2018, distribution of cash in excess of retained earnings(return of capital) of ¥335 per unit was declared as distribution of cash for the 4th fiscal period (fiscal period ended July 31, 2018), the payout of which
commenced on October 19, 2018.
12. New investment units were issued through public offering at an issue price of ¥313,986 (paid-in amount of ¥303,680) per unit mainly for the purpose of
procuring funds for acquisition of new properties.
13. New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥303,680 per unit.
14. By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2019, distribution of cash in excess of retained earnings (return ofcapital) of ¥322 per unit was declared as distribution of cash for the 5th fiscal period (fiscal period ended January 31, 2019), the payout of which
commenced on April 23, 2019.

- 19 -

3. Reference Information(1)

Status of Investment
5th period (As of January 31, 2019)

Type of asset

Use

Logistics
facilities
Real estate intrust(Note 4)(Note 5)

Geographic
classification(Note 1)

Total amount held(millions of yen)
(Note 2)

As a percentage
As a percentage
Total amount heldof total assets
of total assets(millions of yen)(%)(%)
(Note 2)
(Note 3)(Note 3)Tokyo
metropolitan area

86,736

82.9

107,851

67.1

Kansai area

4,333

4.1

4,290

2.7

Other areas
Subtotal
Industrial realestate(Note 6)

6th period (As of July 31, 2019)Tokyo
metropolitan area

8,131

7.8

29,48518.4

99,201

94.8

141,627

88.1

2,123

2.0

12,133

7.6

Kansai area–

Other areas––

Subtotal

–

–

–

–

–

2,123

2.0

12,133

7.6

Real estate in trust total

101,324

96.9

153,761

95.7

Deposits and other assets

3,267

3.1

6,920

4.3

104,591

100.0

160,681100.0

Total assets

5th period(As of January 31, 2019)
Amount(millions of yen)

As a percentage
of total assets(%)(Note 3)6th period(As of July 31, 2019)
Amount(millions of yen)

As a percentage
of total assets(%)(Note 3)

Total liabilities

31,20129.8

51,39732.0

Total net assets

73,39070.2

109,284

68.0

Notes:
1.

“Tokyo metropolitan area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture, Saitama Prefecture and Ibaraki Prefecture. “Kansai area” refers to
Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, Nara Prefecture and Shiga Prefecture.

2.

“Total amount held” is based on the carrying amount (for real estate in trust, the book value after depreciation and amortization) as at the end of eachaccounting period, rounded down to the nearest million yen.

3.

“As a percentage of total assets” is rounded to the first decimal place.

4.

“Real estate in trust” refers to real estate of trust beneficiary interests that have mainly real estate in trust.

5.

For real estate in trust, the amount does not include the amount of construction in progress in trust.

6.

“Industrial real estate” refers to data centers, communications facilities, research facilities, factories, supply and treatment facilities, and other real estateserving as corporate bases. The same shall apply hereinafter.

- 20 -

(2)Investment Assetsi) Major investment securities
Not applicable.

ii) Investment properties
Real estate trust beneficiary interests held by MFLP-REIT are included in the below section “iii) Other investment assets.”iii) Other major investment assets(A)

Summary of the assets held
The following summarizes the real estate in trust held by MFLP-REIT.
a.

List of portfolio
The property names, addresses, acquisition dates, acquisition prices, acquisition price ratios, book values andappraisal values of the portfolio assets are as follows.

Category

Logistics
facilities

Acquisition
price
Acquisition date(millions of yen)
(Note 1)

Appraisal value
Book value(millions of yen)(millions of yen)
(Note 3)

Property nameLocation

L-1

GLP/MFLP
Ichikawa
Shiohama(Note 4)

Ichikawa-shi,
Chiba

September 1,
2016

15,5009.9

15,127

17,350

L-2

MFLP Kuki

Kuki-shi,
Saitama

August 2, 2016

12,5008.0

11,94514,000

L-3

MFLP
Yokohama
Daikoku(Note 4)

Yokohama-shi,August 2, 2016
Kanagawa

10,1006.4

9,780

10,600

L-4

MFLP Yashio

Yashio-shi,
Saitama

August 2, 2016

9,650

6.2

9,347

10,900

L-5

MFLP Atsugi

Aiko-gun,Kanagawa

August 2, 2016

7,810

5.0

7,489

8,720

L-6

MFLP
Funabashi
Nishiura

Funabashi-shi,
Chiba

August 2, 2016

6,970

4.4

6,706

7,740

L-7

MFLP Kashiwa

Kashiwa-shi,
Chiba

August 2, 2016

6,300

4.0

6,050

6,960

L-8

MFLP Sakai(Note 4)

Sakai-shi, Osaka August 2, 2016

4,500

2.9

4,290

4,880

L-9

MFLP Komaki(Note 5)

Komaki-shi,
Aichi

August 4, 2017

8,260

5.3

8,042

8,540

L-10

MFLP Hino(Note 4, 6)

Hino-shi, Tokyo

February 2,
201812,5338.0

12,46812,600

L-11

MFLP Hiratsuka

Hiratsuka-shi,
Kanagawa

March 15, 2018

7,027

4.5

6,947

7,150

L-12

MFLP Tsukuba(Note 7)

Tsukubamiraishi, Ibaraki

December 3,
2018

8,781

5.6

8,887

10,100

L-13

MFLP Inazawa

Inazawa-shi,
Aichi

February 4,
201916,20010.3

16,176

16,400

L-14

MFLP Atsugi II

Isehara-shi,
Kanagawa

February 4,
201913,1008.4

13,10013,500

L-15

MFLP Fukuoka
I(Note 8)Sue-machi,
Kasuya-gun,
Fukuoka

February 4,
2019

5,263

3.4

5,265

5,400

144,49492.2

141,627

154,840

I–1

MFIP Inzai(Note 9)12,2207.8

12,13312,800Logistics facilities total
Industrial realestateAcquisition
price ratio(Note 2)

Property no.

Inzai-shi, Chiba August 2, 2016

Industrial real estate total

12,2207.8

12,13312,800

Total

156,714100.0

153,761

167,640

Notes:
1.

“Acquisition price” is the purchase price of each trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiary interest of
the assets held by MFLP-REIT, rounded down to the nearest million yen. The transaction price does not include consumption tax and local consumption
tax or the various costs required in the acquisition.

2.

“Acquisition price ratio” is the portfolio asset acquisition price share of MFLP-REIT of the total acquisition price rounded to the first decimal place.

3.

“Appraisal value” is the value in the real estate appraisal reports as of the valuation date of July 31, 2019. The appraisal of each asset held is entrusted toJapan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. and CBRE K.K.

- 21 -

4.

For GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Sakai and MFLP Hino, acquisition price, book value and appraisal value are theprorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT has acquired (50%, 50%, 20% and 25%, respectively).

5.

40% quasi co-ownership in MFLP Komaki was acquired on August 4, 2017, and 60% quasi co-ownership was additionally acquired on February 2, 2018,
but the acquisition date lists the initial date of acquisition of the property.

6.

15% quasi co-ownership in MFLP Hino was acquired on February 2, 2018, and 10% quasi co-ownership was additionally acquired on February 4, 2019,
but the acquisition date lists the initial date of acquisition of the property.

7.

60% quasi co-ownership in MFLP Tsukuba was acquired on December 3, 2018, and 40% quasi co-ownership was additionally acquired on March 1, 2019,
but the acquisition date lists the initial date of acquisition of the property.

8.

81% quasi co-ownership in MFLP Fukuoka I was acquired on February 4, 2019, and 19% quasi co-ownership was additionally acquired on April 5, 2019,
but the acquisition date lists the initial date of acquisition of the property.

9.

20% quasi co-ownership in MFIP Inzai was acquired on August 2, 2016 and 80% quasi co-ownership was additionally acquired on February 4, 2019, but
the acquisition date lists the initial date of acquisition of the property.

- 22 -

b.

Summary of buildings
The property names, property types, site areas, total floor areas, completion dates and building ages of theportfolio assets are as follows.

Category

Construction
completed(Note 3)

Building age(years)(Note 4)

Property type
(Note 1)

L-1

GLP/MFLP
Ichikawa
Shiohama(Note 5)

Rampway MFLP

52,887105,019(52,509)

January 14, 2014

5.5

MFLP Kuki

Slope MFLP

35,03773,153

July 7, 2014

5.1

47,974

100,530(50,265)

April 14, 2009

10.3

L-3

MFLP Yokohama
Daikoku
Rampway MFLP
(Note 5)

L-4

MFLP Yashio

Box MFLP

23,422

40,728March 24, 2014

5.4

L-5

MFLP Atsugi

Slope MFLP

20,52240,942

March 13, 2015

4.4

L-6

MFLP Funabashi
Nishiura

Box MFLP

15,51830,947

February 6, 2015

4.5

L-7

MFLP Kashiwa

Box MFLP

15,484

31,242

November 30,
2015

3.7

L-8

MFLP Sakai(Note 5)

Rampway MFLP

57,792

125,127(25,025)

September 11,
2014

4.9

L-9

MFLP Komaki

Slope MFLP

23,48440,597January 31, 2017

2.5

L-10

MFLP Hino(Note 5)

Rampway MFLP

97,579205,200(51,300)

October 16, 2015

3.8

L-11

MFLP Hiratsuka

Box MFLP

16,39833,061

November 30,
2016

2.7

L-12

Industrial realestateTotal floor area(m²)
(Note 2)

Property name

L-2

Logistics facilities

Site area(m²)(Note 2)

Property no.

Existing building: Existing building: Existing building:
37,027
June 30, 2010
9.1

MFLP Tsukuba

Box MFLP

45,605

L-13

MFLP Inazawa

Slope MFLP

35,07472,883

May 31, 2017

2.2

L-14

MFLP Atsugi II

Slope MFLP

25,991

48,976

April 27, 2018

1.3

L-15

MFLP Fukuoka I

Box MFLP

20,09332,199October 12, 2016

2.8

Logistics facilities total (average) (Note 5)

532,866

1,043,095(686,318)

–

4.4

I–1

25,00040,478February 28, 2014

5.4

25,00040,478–

5.4

557,866

1,083,574(726,796)–

4.5

MFIP Inzai

Data centerIndustrial real estate total (average) (Note 5)
Total (average) (Note 5)

Annex building:
25,457

Annex building: Annex building:March 30, 2018
1.3

Notes:
1.

Property types are as follows: Rampway MFLPs are properties that are logistics facilities that provide spiral rampways that allow delivery trucks to directly
access each of the upper-floor truck berths (hereinafter “Rampway MFLP”), Slope MFLPs are properties that are logistics facilities that provide slopes thatallow delivery trucks to directly access some of the upper-floor truck berths (hereinafter “Slope MFLP”), and Box MFLPs are properties that are logistics
facilities that allow delivery trucks to access truck berths located on the ground floor and are equipped with vertical conveyors for delivery to upper floors(hereinafter “Box MFLP”). For Industrial real estate, a specific usage is described in the “Property type” of the building.

2.

“Site area” and “Total floor area” are rounded down to the nearest whole number based upon presentations in the registers for the land or buildings in theportfolio assets of MFLP-REIT. “Total floor area” is the total floor area for main buildings and ancillary buildings. If there is more than one main building,“Total floor area” represents the total floor area for each main building. For MFLP Tsukuba, total floor area for existing buildings is in the upper section
and that for added buildings is in the lower section.

3.

“Construction completed” is the date of construction of the main building of each asset held by MFLP-REIT in the register. If there is more than one mainbuilding, the construction completed is the oldest date shown in the register. For MFLP Tsukuba, completion dates for existing buildings are in the upper
section and those for added buildings are in the lower section.

4.

“Building age” is the age from the date of completion in the register for the main building in the portfolio asset of MFLP-REIT to July 31, 2019, rounded
to the first decimal place. Sections for totals (averages) and sections for totals (averages) in each category describe the weighted average values based on
total floor taking into consideration the quasi co-ownership interest in each property. For MFLP Tsukuba, building ages for existing buildings are in theupper section and those for added buildings are in the lower section.

5.

Total floor areas for GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Sakai and MFLP Hino in parentheses are the prorated figuresequivalent to the quasi co-ownership interest in each property that MFLP-REIT holds (50%, 50%, 20% and 25%, respectively). Sections for totals andsections for totals in each category for “Total floor area” contain in parentheses total values or total values in each category under “Total floor area” foreach portfolio asset taking into consideration the quasi co-ownership interest in each property.

- 23 -

c.

Status of portfolio asset collateral
Not applicable.

(B)

Summary of leasea.

Summary of lease
The property names, leasable areas, leased areas, occupancy rates, number of tenants, names of main tenants,
annual rents, tenant leasehold / security deposits, average lease periods and average remaining lease periods of theportfolio assets are as follows.

Category

Name of main
tenant(Note 5)

Average lease
period (Averageremaining lease
period)(years)(Note 8, 9)

Property
name

L-1

GLP/MFLP
Ichikawa
Shiohama(Note 10)50,81350,813100.0

5

Rakuten, Inc.

862

123

6.9
(2.1)

L-2

MFLP Kuki

67,92567,925100.0

3

KOKUBUSHUTOKEN
CORP.

820

310

6.6
(3.0)

L-3

MFLP
Yokohama
Daikoku(Note 10)47,92947,929100.0

5ACROSS
TRANSPORT
Corp.

661

233

6.5
(1.9)

L-4

MFLP
Yashio39,692

39,692100.0

2e-LogiT co., ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-5

MFLP
Atsugi40,95840,958100.0

1

Sun Toshi
Tatemono
Kabusihiki Kaisha

Notdisclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-6

MFLP
Funabashi
Nishiura

31,03431,034

100.0

1

DAIWA
CORPORATION.,
Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-7

MFLP
Kashiwa

31,291

31,291100.0

1Hitachi Transport
SystemMetropolitan Co.,
Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-8

MFLP
Sakai
(Note 10)

22,42922,429100.0

8BIC CAMERA
INC.

295

105

L-9

MFLP
Komaki40,60540,605100.0

1KIMURA UNITY
CO., LTD.

Not
disclosed(Note 11)

Not
disclosed(Note 11)

L-10

MFLP
Hino
(Note 10)46,80146,801100.0

16Celestica Japan
K.K.

692

240

L-11

MFLP
Hiratsuka

33,05533,055100.0

Notdisclosed(Note 11)

Nippon Express
Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Existingbuilding:
37,938

Existingbuilding:
37,938Annexbuilding:
25,600Annex
building:
25,600100.0

1MARUBENILOGISTICS
CORPORATION

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Logistics
facilities

Occupancy
rate (%)(Note 3)Tenantleasehold/security
deposits(millions ofyen)(Note 7)

Propertyno.

Leased area(m²)
(Note 2)

Number oftenants(tenants)(Note 4)

Annual rent
(millions ofyen)(Note 6)

Leasablearea(m²)(Note 1)

7.3
(5.2)
Not disclosed(Note 11)
5.9
(3.1)

L-12

MFLP
Tsukuba

L-13

MFLP
Inazawa

68,922

68,922100.0

2Japan Logistic
Systems Corp.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-14

MFLP
Atsugi II

48,03248,032100.0

2Japan Logistic
Systems Corp.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-15

MFLP
Fukuoka I

32,21632,216100.0

1

Sagawa Global
Logistics Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)665,246665,246

100.0

Notdisclosed(Note 11)–

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Subtotal(average)- 24 -

Category

Industrial
real estate

Name of main
tenant(Note 5)

Average lease
period (Averageremaining lease
period)(years)(Note 8, 9)

Property
name

I–1

MFIP Inzai

Notdisclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)–

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

100.0

Not
disclosed(Note 11)

–

9,357

3,009

Subtotal(average)
Total(average)

Occupancy
rate (%)(Note 3)Tenantleasehold/security
deposits(millions ofyen)(Note 7)

Propertyno.

Leased area(m²)
(Note 2)

Number oftenants(tenants)(Note 4)

Annual rent
(millions ofyen)(Note 6)

Leasablearea(m²)(Note 1)

7.0
(3.8)

Notes:
1.

“Leasable area” is the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable basedon the lease agreement or floor plan, etc. for such building as of July 31, 2019, and does not include the leased area indicated in the lease agreements
concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.

2.

“Leased area” is the total leased area rounded down to the nearest whole number presented in the lease agreements for buildings in the portfolio assets of
MFLP-REIT as of July 31, 2019 (Excluding lease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking
lots. Lease agreements for said buildings hereinafter referred to as “Subject Lease Agreements” in (B)). If a master lease agreement has been executed for
assets held by MFLP-REIT, the total leased area represents the sum total of the area that is actually leased based on the Subject Lease Agreement signedwith end-tenant rounded down to the nearest whole number. Total leased area is calculated based on the assumption that the subject property is actuallyleased if the Subject Lease Agreement has been executed as of July 31, 2019 even if there is no occupancy / delivery relating to the subject property as ofJuly 31, 2019.

3.

“Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for properties as of July 31, 2019, rounded to the first decimal place. Occupancy rates for the subtotal (average) section and total (average)
section are the share of the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.

4.

“Number of tenants” is the total number of Subject Lease Agreements. If a master lease agreement has been signed for the assets held by MFLP-REIT, thetotal number of end-tenants will be indicated. However, if one lessee enters into a multiple number of the Subject Lease Agreements for the same buildingof assets held by MFLP-REIT, the number of tenants is calculated on the assumption that such lessee is one party.

5.

“Name of main tenant” is the name of the tenant with the largest leased floor area in the Subject Lease Agreement.

6.

“Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of lease agreements have been
executed), which is 12 times monthly rent indicated in the Subject Lease Agreement, rounded down to the nearest million yen. However, if there aredifferent provisions for monthly rent depending on the time period in the Subject Lease Agreement, the monthly rent (including common area expenses)
for July 2019 shown in said lease agreement is the basis of the calculation. The rent-free periods and annual rent holiday periods (meaning that the paymentof rents for specific months is exempted) as of the date shall not be included.

7.

“Tenant leasehold/security deposits” represent the sum of the outstanding amounts of tenant leasehold/security deposits (the sum of the outstanding
amounts of tenant leasehold/security deposits if a multiple number of lease agreements have been executed), rounded down to the nearest million yen,shown in the Subject Lease Agreement. However, if there are different provisions for the sum of outstanding leasehold/security deposits depending on thetime period in each Subject Lease Agreement, the sum of the amount of tenant leasehold/security deposits for July 2019 shown in the lease agreement isthe basis of the calculation.

8.

“Average lease period” is calculated by weight averaging the lease periods presented in the Subject Lease Agreements with rents and rounded to the firstdecimal place. Concerning the Subject Lease Agreements, when a new lease agreement (hereinafter, referred to as “re-contract”) starting on the day
immediately following the expiration date (including the case of cancellation, the same applies hereinafter) of the respective lease agreement is concluded
with the same lessee in the Subject Lease Agreements as of July 31, 2019, lease period is deemed to be from the start of the initial lease agreement to the
expiration date of the re-contract, and used in the calculation as such.

9.

“Average remaining lease period” is calculated by weight averaging the lease periods remaining from July 31, 2019 based upon the Subject Lease
Agreements with rents and rounded to the first decimal place. Concerning the Subject Lease Agreements, when the re-contract is concluded with the samelessee as of July 31, 2019, the remaining period shall be calculated assuming that the lease period continues from July 31, 2019 to the expiration date of there-contract.

10. For GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Sakai and MFLP Hino, leasable area, leased area, annual rent and tenantleasehold/security deposits are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT holds (50%, 50%, 20%
and 25%, respectively).
11. Not disclosed, because consent has not been obtained from the lessee.

- 25 -

b.

Occupancy rate trends
Trends in portfolio asset occupancy rates as at the end of each accounting period are as follows.
(%)
Occupancy rate (Note 1)

Category

Logistics
facilities

1st period(From March 4,2016 to January
31, 2017)

2nd period(From February
1, 2017 to July
31, 2017)

3rd period(From August 1,
2017 to January
31, 2018)

4th period(From February
1, 2018 to July
31, 2018)

5th period(From August 1,
2018 to January
31, 2019)

GLP/MFLP
Ichikawa
Shiohama

100.0

100.0

100.0

100.0

100.0

L-2

MFLP Kuki

100.0

100.0

100.0

100.0

100.0

L-3

MFLP Yokohama
Daikoku

100.0

100.0

100.0

100.0

100.0

L-4

MFLP Yashio

100.0

100.0

100.0

100.0

100.0

L-5

MFLP Atsugi

100.0

100.0

100.0

100.0

100.0

L-6

MFLP Funabashi
Nishiura

100.0

100.0

100.0

100.0

100.0

L-7

MFLP Kashiwa

100.0

100.0

100.0

100.0

100.0

L-8

MFLP Sakai

100.0

100.0

100.0

100.0

100.0

L-9

MFLP Komaki

–

–

100.0

100.0

100.0

L-10

MFLP Hino

–

–

–

100.0

100.0

L-11

MFLP Hiratsuka

–

–

–

100.0

100.0

L-12

MFLP Tsukuba

–

–

–

–

100.0

L-13

MFLP Inazawa

–

–

–

–

–

L-14

MFLP Atsugi II

–

–

–

–

–

L-15

MFLP Fukuoka I

–

–

–

–

–

100.0

100.0

100.0

100.0

100.0

Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)

100.0

100.0

100.0

100.0

100.0

Property no.

Property nameL-1

Subtotal(average)
I–1
Industrial realestateMFIP Inzai
Subtotal(average)

Total(average)- 26 -

(%)
Occupancy rate
(Note 1)Category

Logistics
facilities

6th period(From February
1, 2019 to July
31, 2019)

Property no.

Property name

L-1

GLP/MFLP
Ichikawa
Shiohama

100.0

L-2

MFLP Kuki

100.0

L-3

MFLP Yokohama
Daikoku

100.0

L-4

MFLP Yashio

100.0

L-5

MFLP Atsugi

100.0

L-6

MFLP Funabashi
Nishiura

100.0

L-7

MFLP Kashiwa

100.0

L-8

MFLP Sakai

100.0

L-9

MFLP Komaki

100.0

L-10

MFLP Hino

100.0

L-11

MFLP Hiratsuka

100.0

L-12

MFLP Tsukuba

100.0

L-13

MFLP Inazawa

100.0

L-14

MFLP Atsugi II

100.0

L-15

MFLP Fukuoka I

100.0

Subtotal(average)
I–1
Industrial realestateMFIP Inzai
Subtotal(average)

Total(average)

100.0
Not disclosed(Note 2)Not disclosed(Note 2)100.0

Notes:
1.

“Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for properties at the end of each accounting period, rounded to the first decimal place. Occupancy rates for the subtotal (average) section andtotal (average) section are the share of the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.

2.

Not disclosed, because consent has not been obtained from the lessee.

- 27 -

c.

Information on major real estates and other properties
The following is an overview of the real estates held whose annual rent makes up 10% or more of the total annual
rent for the entire portfolio as of July 31, 2019.
Annual rent (millions of yen)
(Note 1)

Property nameRent ratio (%)(Note 2)

MFLP Inazawa

Not disclosed (Note 3)

Not disclosed (Note 3)

Total

Not disclosed (Note 3)

Not disclosed (Note 3)

Notes:
1.

“Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of lease agreements have been
executed), which is 12 times monthly rent (including common service fees) indicated in the Subject Lease Agreements for buildings in the portfolio assets
as of July 31, 2019, rounded down to the nearest million yen. If a master lease agreement has been concluded based upon said portfolio assets, this iscalculated based upon lease agreements with the end-tenants. However, if there are different provisions for monthly rent depending on the time period in
the subject lease agreement, the monthly rent (including common area expenses) for July 2019 shown in the lease agreement is the basis of the calculation.
The rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as of July 31, 2019 shall not be
included.

2.

“Rent ratio” is the ratio of the annual rent of said property to the total of annual rents for the entire portfolio rounded to the first decimal place.

3.

Not disclosed, because consent has not been obtained from the lessee.

d.

Information about main tenant
Status of leasing to tenants of the assets held with a leased area of 10% or more of the total leased area for theentire portfolio as of July 31, 2019 (including end-tenants for assets with a pass-through master lease agreement
concluded or to be concluded, but not including master lease companies concluding or planning to conclude said
master lease agreements) is as follows:

Name of tenant
Japan Logistic Systems Corp.

Industry in which the tenant operates(Note 1)
Special motor truck transportation industry

Leased area (m²)(Note 2)77,028Notes:
1.

“Industry in which the tenant operates” is an industry in which the tenant operates according to research by Tokyo Shoko Research, Ltd., or in accordancewith classification of industry by Japan Standard Industrial Classification of the Ministry of Internal Affairs and Communications.

2.

“Leased area” is the total leased area to respective main tenants as of July 31, 2019, presented in the lease agreements for buildings in the portfolio assets,rounded down to the nearest whole number. The leased area is calculated based on the assumption that the property is actually leased if the said leaseagreement has been executed as of July 31, 2019 even if there is no occupancy/delivery relating to the subject property as of July 31, 2019.

- 28 -

(C)Capital expenditures of real estate helda.

Schedule of capital expenditures
Of the capital expenditures accompanying renovations, etc. currently planned for real estate and real estate in trustof real estate trust beneficiary interests held by MFLP-REIT, the following are the major planned amounts. Theremay be cases where the planned construction amount ends up being in part expensed in accounting instead ofbeing capitalized.

Name of real estate, etc.

Location

PurposeScheduled time

From April 2020
to April 2020

Planned construction amount(millions of yen)
(Note)
Total amountAmount paid
during period

Total amountalready paid

3

–

–

GLP/MFLP Ichikawa
Shiohama

Ichikawa-shi, Chiba

Replacement of electric
power meter

MFLP Kuki

Kuki-shi, Saitama

Replacement of equipment of From September 2019
access management facilities
to January 2020

5

–

–

MFLP Kuki

Kuki-shi, Saitama

Replacement of surveillancecamerasFrom March 2020
to July 2020

11

–

–

MFLP Kuki

Kuki-shi, Saitama

Installation of smoking room
air conditioning equipment

From March 2020
to July 2020

3

–

–

MFLP Kuki

Kuki-shi, Saitama

Installation of bird netting

From April 2020
to July 2020

3

–

–

MFLP Kuki

Kuki-shi, Saitama

Replacement of main verticalconveyor chain (1st stage)

From May 2020
to July 2020

3

–

–

MFLP Kuki

Kuki-shi, Saitama

Replacement of main verticalconveyor chain (2nd stage)

From May 2020
to July 2020

4

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Exterior wall painting(Section 5)

From July 2019
to December 2019

49

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Replacement of heads offoam fire extinguishingsystemFrom September 2019
to November 2019

8

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Installation of additional
security cameras

From October 2019
to November 2019

22

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Exterior wall painting(Section 6)

From January 2020
to June 2020

49

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Replacement of heads offoam fire extinguishingsystemFrom March 2020
to May 2020

8

–

–

MFLP Yashio

Replacement of power
Yashio-shi, Saitama conditioners for photovoltaic
power generation facilities

From March 2020
to March 2020

6

–

–

Note:
For “GLP/MFLP Ichikawa Shiohama” and “MFLP Yokohama Daikoku,” planned construction amount are the prorated figures equivalent to the quasi coownership interest in each property that MFLP-REIT holds (50% and 50%, respectively).

- 29 -

b.

Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the
fiscal period under review for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period underreview amounted to ¥86 million and, other than this, there was ¥45 million in repair expenses categorized as
operating expenses in the fiscal period under review.

Name of real estate, etc.

Location

Purpose

PeriodConstruction amount(millions of yen)
(Note)MFLP Yokohama Daikoku

Yokohama-shi, Kanagawa

Exterior wall painting(Section 4)

From January 2019
to June 201948

MFLP Yokohama Daikoku

Yokohama-shi, Kanagawa

Replacement of heads offoam fire extinguishingsystemFrom May 2019
to June 2019

8

MFLP Yashio

Yashio-shi, Saitama

Replacement of equipment ofaccess management facilities

From July 2019
to July 2019

4

MFLP Yashio

Yashio-shi, Saitama

Replacement of electricity
meter

From July 2019
to July 2019

4

MFLP Hino

Hino-shi, Tokyo

Construction for expansion of
bicycle parking

From June 2019
to July 20194

Other capital expenditures

15
Total

86

Note:
For “MFLP Yokohama Daikoku,” and “MFLP Hino,” construction amount are the prorated figures equivalent to the quasi co-ownership interest in each
property that MFLP-REIT holds (50% and 25%, respectively).

c.

Cash reserves for long-term repair and maintenance plans
Not applicable.

- 30 -

(D)Status of individual asset earnings

Property no.

L–1

L–2

L–3

L–4

(Thousands of yen)
L–5

Name

GLP/MFLP
Ichikawa Shiohama

MFLP Kuki

MFLP Yokohama
Daikoku

MFLP Yashio

MFLP Atsugi

Management period

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

Number of days ofmanagement

181 days

181 days

181 days

181 days

181 days

Not disclosed(Note)

Not disclosed(Note)(A) Property
leasingbusiness
revenues

489,587

479,424

351,161

Real estateleasingbusiness
revenues

456,785444,700

331,517

Other revenues
related toproperty
leasing

32,801

34,723

19,644

95,800115,381

102,909

Outsourcing
serviceexpenses

35,30433,441

28,409

Utilities
expenses

17,60625,173

15,658

Repairexpenses

2,817

11,594

17,927

Taxes and dues

38,442

42,92139,303

Various costs
required

1,630

2,250

1,611

(C) NOI (=A–B)

393,786

364,042

248,252

259,566

226,313(D) Depreciation
andamortization

80,008

107,459

85,05462,69563,668(E) Operating
income fromproperty
leasing (=C–D)

313,777

256,583

163,197

196,871

162,645(B) Property
leasingbusiness
expenses- 31 -

Property no.

L–6

L–7

L–8

L–9

L–10

Name

MFLP Funabashi
Nishiura

MFLP Kashiwa

MFLP Sakai

MFLP Komaki

MFLP Hino

Management period

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

Number of days ofmanagement

181 days

181 days

181 days

181 days

181 days(A) Property
leasingbusiness
revenues

165,058

379,590

Real estateleasingbusiness
revenues

132,598354,366

Other revenues
related toproperty
leasing

32,46025,224(B) Property
leasingbusiness
expenses

Not disclosed(Note)

Not disclosed(Note)

43,513Not disclosed(Note)

75,385

Outsourcing
serviceexpenses

18,601

28,633

Utilities
expenses

4,807

20,058

Repairexpenses

2,674

1,558

Taxes and dues

16,81923,447

Various costs
required

610

1,687

(C) NOI (=A–B)

187,004

173,392

121,544

213,110304,205(D) Depreciation
andamortization

50,30950,07943,902

88,59287,812(E) Operating
income fromproperty
leasing (=C–D)

136,694

123,313

77,642

124,518

216,392- 32 -

Property no.

L–11

L-12

L-13

L-14

L-15

Name

MFLP Hiratsuka

MFLP Tsukuba

MFLP Inazawa

MFLP Atsugi II

MFLP Fukuoka I

Management period

From February 1,
2019 to July 31,
2019

From February 1,
2019 to July 31,
2019

From February 4,
2019 to July 31,
2019

From February 4,
2019 to July 31,
2019

From February 4,
2019 to July 31,
2019

Number of days ofmanagement

181 days

181 days

178 days

178 days

178 days

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)(C) NOI (=A–B)

172,115

259,700

464,374

326,026

110,287(D) Depreciation
andamortization

51,02889,089181,165

113,772

52,659(E) Operating
income fromproperty
leasing (=C–D)

121,086

170,610283,209212,254

57,627(A) Property
leasingbusiness
revenues
Real estateleasingbusiness
revenues
Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses
Outsourcing
serviceexpensesUtilities
expenses
Repairexpenses
Taxes and dues
Various costs
required- 33 -

Property no.

I–1

Name

MFIP Inzai

Management period

From February 1,
2019 to July 31,
2019

Number of days ofmanagement

181 days(A) Property
leasingbusiness
revenues

4,969,119

Real estateleasingbusiness
revenues

4,766,132

Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses

Total

202,987
Not disclosed(Note)

819,592

Outsourcing
serviceexpenses

284,400

Utilities
expenses

136,929

Repairexpenses

45,700

Taxes and dues

332,697

Various costs
required

19,864(C) NOI (=A–B)

325,804

4,149,526(D) Depreciation
andamortization

107,643

1,314,941(E) Operating
income fromproperty
leasing (=C–D)

218,160

2,834,585

Note:
Not disclosed, because consent has not been obtained from the tenants.

- 34 -