4th Fiscal Period
Asset Management Report

Mitsui Fudosan Logistics Park Inc.
6-8-7 Ginza, Chuo-ku, Tokyo

From: February 1, 2018
To: July 31, 2018

I.

To Our Unitholders
First of all, I would like to convey my sincere appreciation to you, our unitholders, for your continued support of Mitsui Fudosan
Logistics Park Inc. (MFLP-REIT).
The Japanese economy has been continuing to grow at rates exceeding its potential growth rate against the backdrop ofaccommodative financial conditions and support from government cash injection, as overseas economies continue with steady
growth rates. In addition, capital investment has increased with corporate profits and business sentiment both maintaining an
increasing trend and private consumption has also been gradually increasing backed by improvement in the employment and income
situation. In the logistics market, with the 3PL business specializing in outsourced logistics services expanding in market size andthe needs of 3PL providers for rental of multifunctional and highly-convenient logistics facilities on the rise, the demand for leadingedge logistics facilities is expected to continue to increase.
Under such circumstances, MFLP-REIT, which listed on the Tokyo Stock Exchange Real Estate Investment Trust (REIT) Market
on August 2, 2016, has ended its 4th fiscal period in July 2018 with smooth sailing. In addition, in February 2018, MFLP-REIT
carried out its first capital increase through public offering since its listing.
This is entirely due to the support of our unitholders, and for this I would like to express my heartfelt gratitude.
Going forward, I ask our unitholders for their continued support and cooperation, as MFLP-REIT will continue its operation withthe aim of boosting unitholder value.

-2-II. Asset Management Report
1. Overview of Asset Management(1) Management and other performance highlights of the investment corporation
4th period
3rd period
2nd period
1st period(From February 1, (From August 1, (From February 1, (From March 4,
2018
2017
2017
2016
to July 31,
to January 31,
to July 31,
to January 31,
2018)
2018)
2017)
2017)

Fiscal period(millions of yen)

3,148

2,629

2,548

2,383

(millions of yen)

[3,148][2,629][2,548][2,383](millions of yen)

1,650

1,390

1,367

1,075

(millions of yen)

[1,306][1,086][1,071][801]

Operating income(millions of yen)

1,498

1,239

1,181

1,307

Ordinary income(millions of yen)

1,445

1,185

1,152

1,111

Net income(millions of yen)

1,444

1,184

1,151

1,110

Total assets(millions of yen)

100,250

79,86878,811

81,698(%)[25.5][1.3][(3.5)][―](millions of yen)

73,40359,43459,44759,460(%)[23.5][(0.0)][(0.0)][―]

Interest-bearing debt

(millions of yen)

24,00018,00017,00020,000Unitholders’ capital, net (Note 4)

Operating revenues[Of which: Real estate leasing businessrevenues]
Operating expenses[Of which: Real estate leasing business
expenses][Period-on-period change]
Net assets[Period-on-period change](millions of yen)

71,95858,25058,29658,350Total number of investment units issued
and outstanding(units)262,774

224,000

224,000

224,000

Net assets (Net asset value (NAV)) per unit

(yen)279,340

265,334

265,392

265,449

Net income per unit (Note 5)

(yen)

5,499

5,287

5,141

9,017

Total amount of distribution(millions of yen)

1,532

1,246

1,197

1,164

(yen)

5,832

5,563

5,346

5,198

(yen)

[5,497][5,288][5,142][4,955]

(yen)

[335]

[275]

[204]

[243]

(%)

1.6

1.5

1.4

1.5

[Annualized] (Note 7)

(%)

[3.2]

[3.0]

[2.9]

[2.9]

Return on equity (Note 6)

(%)

2.2

2.0

1.9

1.9

[Annualized] (Note 7)

(%)

[4.4]

[4.0]

[3.9]

[3.8]

Equity ratio at end of period (Note 6)

(%)

73.2

74.4

75.4

72.8

[Period-on-period change](%)[(1.2)][(1.0)]

[2.7]

[―]

Payout ratio (Note 6)

(%)

100.0

100.0

100.0

100.0

(days)

181

184

181

183

(properties)

12

10

9

9

Occupancy rate at end of period (Note 9)

(%)

100.0

100.0

100.0

100.0

Depreciation and amortization (Note 10)(millions of yen)

744

595

560

553

Capital expenditures(millions of yen)

46

10

10

2

Net operating income (NOI) from property
leasing (Note 6)(millions of yen)

2,587

2,138

2,037

2,135

Funds from operations (FFO) (Note 6)(millions of yen)

2,189

1,780

1,713

1,663

FFO per unit (Note 6)

(yen)

8,331

7,947

7,651

7,426

Ratio of interest-bearing debt to total assets
at end of period (LTV ratio) (Note 6)

(%)

23.9

22.5

21.6

24.5

Distribution per unit
[Of which: Distribution of earnings perunit][Of which: Distribution in excess ofretained earnings per unit]
Ratio of ordinary income to total assets(Note 6)

Other reference information
Number of days of asset management
during period (Note 8)
Number of investment properties at end of
period-3-

(Note 1) The operating periods of the investment corporation MFLP-REIT are six-month periods every year from February 1 to the last day of July andfrom August 1 to the last day of January in the following year. However, the first operating period (1st fiscal period) is from MFLP-REIT’s
establishment date (March 4, 2016) to the last day of January 2017.
(Note 2) Operating revenues, etc. do not include consumption tax, etc.
(Note 3) Unless otherwise specified, any numerical figures are rounded down to the nearest specified unit and percentage figures are rounded to the firstdecimal place.
(Note 4) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 5) “Net income per unit” is calculated by dividing net income by the daily weighted average number of investment units. Diluted net income perunit is not stated because there are no dilutive investment units.
(Note 6) The following formulas are used in calculations.
Ratio of ordinary income tototal assets

Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
Total assets at beginning of period for the 1st fiscal period is using total assets as at the starting date of
MFLP-REIT’s actual asset management period (August 2, 2016).

Return on equity

Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
Net assets at beginning of period for the 1st fiscal period is using net assets as at the starting date of MFLPREIT’s actual asset management period (August 2, 2016).

Equity ratio at end of period

Net assets at end of period ÷ Total assets at end of period × 100

Payout ratio

Distribution per unit (excluding distribution in excess of retained earnings) ÷ Net income per unit × 100(rounded to the first decimal place)
Payout ratios for the 1st fiscal period and the 4th fiscal period are calculated by the following formula,because new investment units were issued.
Total amount of distribution (excluding distribution in excess of retained earnings) ÷ Net income × 100

Net operating income (NOI)
from property leasing

Real estate leasing business revenues − Real estate leasing business expenses + Depreciation andamortization

Funds from operations (FFO)

Net income + Depreciation and amortization of rental real estate + Loss on retirement of non-current assets± Gain (Loss) on sales of real estate properties

FFO per unit

FFO ÷ Total number of investment units issued and outstanding

Ratio of interest-bearing debt tototal assets at end of period(LTV ratio)

Interest-bearing debt at end of period ÷ Total assets at end of period × 100(Note 7) For the 1st fiscal period (fiscal period ended January 31, 2017), annualized figures are calculated based on the number of days of actual asset
management of 183 days (from August 2, 2016 to January 31, 2017).
(Note 8) The calculation period of the 1st fiscal period (fiscal period ended January 31, 2017) of MFLP-REIT is a period of 334 days from March 4, 2016
to January 31, 2017, but the actual asset management period was a period of 183 days from August 2, 2016.
(Note 9) “Occupancy rate at end of period” is leased area of the building expressed as a percentage of leasable area of the building of each real estate intrust on each lease agreement concluded for each property as at the end of the fiscal period, rounded to the first decimal place.
(Note 10) “Depreciation and amortization” is depreciation and amortization of investment and rental property.

-4-(2) Developments in management of assets in the fiscal period under review① 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 “Asset Management
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 12
properties amounting to a total acquisition price of 98.3 billion yen as at the end of the fiscal period under review.
② Investment environment and management performance
The Japanese economy has been continuing to grow at rates exceeding its potential growth rate against the backdrop ofaccommodative financial conditions and support from government cash injection, as overseas economies continue with steady
growth rates. In addition, capital investment has increased with corporate profits and business sentiment both maintaining an
increasing trend and private consumption has also been gradually increasing backed by 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 for rental 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”). Based on the policy, MFLP-REIT acquired MFLP Komaki (additional acquisition of 60% quasi co-ownershipinterest; acquisition price of 5,011 million yen) and MFLP Hino (15% quasi co-ownership interest; acquisition price of 7,520 million
yen) in February 2018, and MFLP Hiratsuka (acquisition price of 7,027 million yen) in March 2018.
Furthermore, MFLP-REIT has conducted steady management of 12 properties held (total acquisition price of 98.3 billion yen) tomaintain 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).

③ Summary of fund procurement
In the fiscal period under review, MFLP-REIT procured 13,495 million yen from a capital increase through public offering with apayment date of February 1, 2018 and 274 million yen from a capital increase through third-party allotment with a payment dateof February 28, 2018, and at the end of the fiscal period under review, the balance of unitholders’ capital, net was 71,958 million
yen. Furthermore, in the fiscal period under review, MFLP-REIT executed debt financing of 6,700 million yen (short-term loans
payable of 1,400 million yen, long-term loans payable of 5,300 million yen) in March 2018 to fund the acquisition of MFLP
Hiratsuka; and 200 million yen (short-term loans payable) in June 2018 and 500 million yen (short-term loans payable) in July
2018 to repay loans, and executed repayments of a total of 1,400 million yen (short-term loans payable) using funds from part ofloans procured in the 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 24,000 million yen (short-term loans payable of 700 million yen,long-term loans payable of 23,300 million yen) and the ratio of interest-bearing debt to total assets (LTV ratio) was 23.9%.
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-

Stable-5-

④ Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating revenuesof 3,148 million yen, operating income of 1,498 million yen, ordinary income of 1,445 million yen, and net income of 1,444 millionyen.
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 1,444,468,678 yen,which is the integral multiple of the total number of investment units issued and outstanding (262,774 units) of unappropriatedretained earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of 5,497 yen.
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 88 million yen, which is the amount almost equivalent to the remaining amount after
subtracting the distribution of earnings of 1,444 million yen from 1,532 million yen or 70% of FFO (Note 2), as return of capital
applicable to distribution reducing unitholders’ capital for tax purposes. Accordingly, MFLP-REIT declared distribution in excess
of retained earnings per unit of 335 yen.
(Note 1) In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution per unit is expected
to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units, etc., atemporary 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 incases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.
(Note 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.).
(Note 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.
(Note 4) Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets as at the balance sheet as at the applicable accounts settlement date − Amount of book value after depreciation and amortizationof owned real estate as at the applicable accounts settlement date + Appraisal value of owned real estate as at the applicable accounts settlement
date

-6-

(3) Status of capital increase, etc.
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital, net, since theestablishment of MFLP-REIT.

Date

Description

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

BalanceUnitholders’ capital, net(Note 1)(millions of yen)
Increase(Decrease)

Remarks

Balance

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 throughpublic offering

212,800

214,000

55,44555,745(Note 4)

August 29, 2016

Capital increase throughthird-party allotment

10,000224,000

2,605

58,350(Note 5)

April 21, 2017

Distribution of cash
in excess ofretained earnings(return of capital)―

224,000(54)

58,296(Note 6)

October 13, 2017

Distribution of cash
in excess ofretained earnings(return of capital)―

224,000(45)

58,250(Note 7)

February 1, 2018

Capital increase throughpublic offering

38,000262,000

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

Capital increase throughthird-party allotment

774

262,774274

72,020(Note 9)April 23, 2018

Distribution of cash
in excess ofretained earnings(return of capital)―

262,774(61)

71,958 (Note 10)

October 19, 2018

Distribution of cash
in excess ofretained earnings(return of capital)―

262,774(88)

71,870 (Note 11)(Note 1) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 2) MFLP-REIT was established at an issue price of 500,000 yen per unit.
(Note 3) A two-for-one split of investment units was conducted on June 15, 2016 as the effective date.
(Note 4) New investment units were issued through public offering at an issue price of 270,000 yen (paid-in amount of 260,550 yen) per unit for the purposeof procuring funds for acquisition of new properties.
(Note 5) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of 260,550 yen per unit.
(Note 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 of capital) of 243 yen per unit was declared as distribution of cash for the 1st fiscal period (fiscal period ended January 31, 2017), the payoutof which commenced on April 21, 2017.
(Note 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 yen per unit was declared as distribution of cash for the 2nd fiscal period (fiscal period ended July 31, 2017), the payoutof which commenced on October 13, 2017.
(Note 8) New investment units were issued through public offering at an issue price of 367,581 yen (paid-in amount of 355,139 yen) per unit for the purposeof procuring funds for acquisition of new properties.
(Note 9) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of 355,139 yen per unit.
(Note 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 of capital) of 275 yen per unit was declared as distribution of cash for the 3rd fiscal period (fiscal period ended January 31, 2018), the payoutof which commenced on April 23, 2018.

-7-

(Note 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 yen per unit was declared as distribution of cash for the 4th fiscal period (fiscal period ended July 31, 2018), the payoutof which commenced on October 19, 2018.

-8-

[Historical market price of investment securities]
The following are the highest and lowest prices (closing price) by fiscal period on the Tokyo Stock Exchange Real Estate Investment
Trust Securities Market on which MFLP-REIT investment securities are listed.
Fiscal period(Note)

4th period
3rd period(From February 1, 2018 (From August 1, 2017
to July 31, 2018)
to January 31, 2018)

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

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

Highest (yen)377,500

387,500

339,500

341,500

Lowest (yen)320,500

309,500

303,000

286,300

MFLP-REIT investment securities were listed on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market on August 2, 2016.

(4) Distribution
The following is the distribution, etc. performance up to the fiscal period under review.
4th period
3rd period
2nd period
1st period(From February 1, (From August 1, (From February 1, (From March 4,
2018
2017
2017
2016
to July 31,
to January 31,
to July 31,
to January 31,
2018)
2018)
2017)
2017)

Fiscal period
Total amount of unappropriatedretained earnings
Retained earnings
Total amount of distribution of
cash(thousands ofyen)(thousands ofyen)(thousands ofyen)

1,444,484

1,184,529

1,151,857

1,110,063
143

1,532,497

1,246,112

1,197,504

1,164,352(yen)[5,832][5,563][5,346][5,198](thousands ofyen)

1,444,468

1,184,512

1,151,808

1,109,920[Distribution of earnings per unit](yen)[5,497][5,288][5,142][4,955]

Of which: Total amount of returnof capital(thousands ofyen)

88,02961,60045,69654,432

(yen)

[335]

[275]

[204]

[243]

(thousands of
yen)

―

―

―

―

(yen)

―

―

―

―

(thousands ofyen)

88,02961,60045,69654,432

(yen)

[335]

[275]

[204]

[243]

[Distribution per unit]
Of which: Total amount of
distribution of earnings[Return of capital per unit]
Of total amount of return ofcapital:
Total amount of distribution fromallowance for temporary
difference adjustment[Of return of capital per unit:
Distribution from allowance fortemporary difference adjustment
per unit]
Of total amount of return ofcapital:
Total amount of distribution from
distribution reducing unitholders’capital for tax purposes[Of return of capital per unit:
Distribution from distribution
reducing unitholders’ capital fortax purposes](Note)For a summary of MFLP-REIT’s distribution policy and distributions for the fiscal period under review, please refer to “(2) Developments inmanagement of assets in the fiscal period under review; ④ Summary of business performance and distributions” presented earlier in this document.

-9-(5) Future management policy
MFLP-REIT has established a strategic and collaborative partnership in the logistics facilities business with Mitsui Fudosan, underwhich it seeks to maximize unitholder value by focusing investments primarily in logistics facilities as a basic policy. Based on thispolicy, in addition to expansion of asset size for the purpose of further stabilizing the revenue base continuing into future periods,
MFLP-REIT will perform stable and efficient financial management by addressing changes in the external and internal environment
to maximize unitholder value.
① 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 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 of first look and preferential
negotiation agreement” that was concluded with Mitsui Fudosan, which boasts high growth in the logistics facilities business, and
the Asset Management Company.
(Note 1) Based on the principles of “harmonious coexistence” and “linking diverse values” set by the Mitsui Fudosan Group (Note 2), Mitsui Fudosan’slogistics facilities business keeps up efforts aimed at not only providing logistics facilities space but also creating value beyond conventionalboundaries. In order to achieve this, MFLP-REIT incorporates the highly-specialized and advanced management and operational know-how, etc.
accumulated in the office building business, retail properties business, etc. and the know-how, etc. accumulated through urban development as acomprehensive 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.”(Note 2) “Mitsui Fudosan Group” refers to a corporate group comprising Mitsui Fudosan, Mitsui Fudosan’s consolidated subsidiaries, and Mitsui Fudosan’s
associates accounted for using the equity method. The same shall apply hereinafter.

② Internal growth strategy
Stable management using 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 FudosanGroup has developed over years as a comprehensive real estate company.
③ Financial strategy
Financial and cash management with an emphasis on stability and efficiency
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units and borrowings,
and at the same time it will aim to secure stable distribution levels and efficient cash management for distributions throughcontinuous distributions in excess of retained earnings (return of capital) based on cash flow (FFO).
(6) Significant subsequent events
Not applicable.
(Reference information)
MFLP-REIT entered into a sale and purchase agreement to acquire the following asset on September 14, 2018, and plans for thetransfer of ownership to occur on December 3, 2018. “Acquisition price” is the purchase price of trust beneficiary interest as set
forth on the agreement for sale and purchase of trust beneficiary interest for the asset to be acquired, 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 theacquisition. The amount stated is the prorated figure equivalent to the quasi co-ownership interest in this property that MFLP-REIT
will acquire (60%).

Category

Property no.

Property name

Logistics facilities

L-12

MFLP Tsukuba(Note)

Location

Acquisition price(millions of yen)

5,268
Tsukubamirai, Ibaraki (60% quasi co-ownershipinterest)

The aforementioned sale and purchase agreement falls under the definition of “forward commitments, etc.” (as defined as “a postdated sales contract
under which payment and delivery shall be made at least one month after the conclusion of the contract, or any other contract similar thereto” statedin the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.” established by the Financial Services Agency).

- 10 -

2. Overview of the Investment Corporation(1) Status of investments in capital
4th period(July 31, 2018)

3rd period(January 31, 2018)(units)8,000,000

8,000,000

8,000,000

8,000,000

Fiscal period

2nd period(July 31, 2017)

1st period(January 31, 2017)

Total number of investment
units authorized
Total number of investment
units issued and outstanding
Unitholders’ capital, net(Note)(units)262,774

224,000

224,000

224,000(millions ofyen)

71,95858,25058,29658,350

Number of unitholders(unitholders)

7,135

5,073

5,698

6,201

(Note)“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(2) Major unitholders
Of the unitholders as of July 31, 2018, the following are the top ten unitholders in terms of investment unit-holding ratio.
Number ofinvestment
units
owned
(units)Number of investment units owned
expressed as a percentage of
total number of investment units
issued and outstanding(%)

The Master Trust Bank of Japan, Ltd. (trust account)

50,215

19.10

Japan Trustee Services Bank, Ltd. (trust account)

33,401

12.71

Mitsui Fudosan Co., Ltd.

28,900

10.99

The Nomura Trust and Banking Co., Ltd. (investment trust account)

11,987

4.56

Trust & Custody Services Bank, Ltd. (securities investment trust account)

10,545

4.01

JPMorgan Chase Bank 385632

9,450

3.59

The Chugoku Bank, Limited

5,127

1.95

Aozora Bank, Ltd.

5,067

1.92

State Street Bank and Trust Company 505012

4,162

1.58

The Bank of Kyoto, Ltd.

3,700

1.40

162,554

61.86

Name

Total
(Note)“Number of investment units owned expressed as a percentage of total number of investment units issued and outstanding” is rounded down to thesecond decimal places.

- 11 -

(3) Matters concerning directors, etc.
① Executive director, supervisory directors and independent auditor in the fiscal period under review

Position

Executive director

Name

Key concurrently-held position, etc.

Masayuki Isobe

Total amount ofcompensation
by position
for the applicable
operating period(thousands of yen)

―

2,400

Izuru Goto

Attorney, City-Yuwa Partners
Corporate Auditor (part-time), Tobishima Corporation

1,500

Tadao Toyoshima

Director (Audit & Supervisory Committee Member)(part-time), Square Enix Holdings Co., Ltd.

1,500

―

9,100

Supervisory director

Independent auditor KPMG AZSA LLC(Note 1) None of the executive director or supervisory directors own MFLP-REIT investment units in their own name or in the name of another.
(Note 2) Supervisory directors may be directors of other corporations other than those stated above, but none of them, including those above, have any
interest in MFLP-REIT.
(Note 3) The amount for the independent auditor represents the amount payable as compensation for the audit for the fiscal period under review, plus thecompensation for the audit of English financial statements (2,100 thousand yen).

② Policy for deciding on dismissal and refusal of reappointment of the independent auditor
Decisions are made at a meeting of the Board of Directors of MFLP-REIT by taking into account the various circumstances in acomprehensive manner.
(4) Asset management company, custodian, and general administrators
The following are the asset management company, custodian and general administrators as of July 31, 2018.
Entrustment category

Name

Asset management company

Mitsui Fudosan Logistics REIT Management Co., Ltd.

Custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (transfer agent)

Sumitomo Mitsui Trust Bank, Limited

General administrator (institutional)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting)

Heiseikaikeisha Tax Corporation- 12 -

3. Status of Assets under Management of the Investment Corporation(1) Composition of assets of the investment corporation
4th period(As of July 31, 2018)
Type of asset

Use

Geographic classification(Note 1)

3rd period(As of January 31, 2018)

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

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

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

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

Tokyo metropolitan area

81,92881.7

67,805

84.9

Kansai area

4,374

4.4

4,405

5.5

Other areas

8,219

8.2

3,244

4.1

Subtotal

94,522

94.3

75,454

94.5

Tokyo metropolitan area

2,142

2.1

2,160

2.7

Kansai area

―

―

―

―

Other areas

―

―

―

―

Subtotal

2,142

2.1

2,160

2.7

Real estate in trust total

96,66496.4

77,61597.2

Deposits and other assets

3,585

3.6

2,252

2.8

Total assets

100,250

100.0

79,868100.0

Logistics
facilities

Real estatein trust(Note 4)(Note 5)
Industrial
real estate(Note 6)(Note 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.
(Note 2) “Total amount held” is based on the carrying amount (for real estate in trust, the book value after depreciation and amortization) as of each accounts
settlement date, rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is rounded to the first decimal place.
(Note 4) “Real estate in trust” refers to real estate of trust beneficiary interests that have mainly real estate in trust.
(Note 5) For real estate in trust, the amount does not include the amount of construction in progress in trust.
(Note 6) “Industrial real estate” refers to data centers, communications facilities, research facilities, factories, supply and treatment facilities, and other realestate serving as corporate bases. The same shall apply hereinafter.

- 13 -

(2) Major assets held
The following summarizes the assets held by MFLP-REIT as of July 31, 2018.

Name ofreal estate, etc.

Leasable area
Book value(m²)(millions of yen)
(Note 1)

Leased area(m²)
(Note 2)

As a percentage
of total
Occupancy rate
real estate(%)
leasing business(Note 3)revenues(%)

Main use

GLP/MFLP
Ichikawa Shiohama(Note 4)

15,28350,81350,813

100.0

15.5

Logistics
facilities

MFLP Kuki

12,151

67,92567,925

100.0

15.2

Logistics
facilities

MFLP
Yokohama Daikoku(Note 4)

9,871

47,92947,929

100.0

11.1

Logistics
facilities

MFLP Yashio

9,456

39,692

39,692100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi

7,615

40,95840,958100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP
Funabashi Nishiura

6,807

31,03431,034100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Kashiwa

6,149

31,291

31,291100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Sakai(Note 4)

4,374

22,42922,429100.0

5.4

Logistics
facilities

MFLP Komaki

8,219

40,60540,605100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Hino(Note 4)

7,543

28,08028,080100.0

6.9

Logistics
facilities

MFLP Hiratsuka

7,049

33,05533,055100.0

Not disclosed(Note 5)

Logistics
facilities

MFIP Inzai

2,142

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Industrial
real estate

Total

96,664Not disclosed(Note 5)

Not disclosed(Note 5)

100.0

100.0

(Note 1) “Leasable area” is the floor area available for leasing of the building of each real estate in trust as of July 31, 2018 and is the sum total of the floorarea deemed to be leasable based on the lease agreement or building drawing, etc., rounded down to the nearest whole number.
(Note 2) “Leased area” is the sum total of leased area of the building on each lease agreement for each real estate in trust as of July 31, 2018, rounded down
to the nearest whole number. If a pass-through master lease agreement has been concluded for the real estate in trust, it is the sum total of the floorarea actually contracted for leasing and leased to end-tenants, rounded down to the nearest whole number.
(Note 3) “Occupancy rate” is leased area of the building expressed as a percentage of leasable area of the building of each real estate in trust on each leaseagreement concluded for each property as of July 31, 2018, rounded to the first decimal place.
(Note 4) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai,” and “MFLP Hino,” “Leasable area” and “Leased area” arethe prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT has acquired (50%, 50%, 20%, and 15%,
respectively).
(Note 5) Not disclosed, because consent has not been obtained from the lessee.

- 14 -

(3) Real estate assets in portfolio
The following summarizes the assets held by MFLP-REIT as of July 31, 2018.

Name ofreal estate, etc.

Location

Form ofownership

Leasable area(m²)
(Note 1)

Appraisal value
Book value
at end of period
at end of(millions of yen)period(Note 2)
(millions of yen)

GLP/MFLP
Ichikawa Shiohama(Note 3)

1-6-3 Shiohama,Ichikawa-shi, Chiba

Real estate
trust beneficiaryinterests

50,813

16,75015,283

MFLP Kuki

1-10 Kiyokucho,
Kuki-shi, Saitama

Real estate
trust beneficiaryinterests

67,925

13,70012,151MFLP
Yokohama Daikoku(Note 3)43-1 Daikokucho,
Real estate
Tsurumi-ku, Yokohama-shi, trust beneficiary
Kanagawa
interests

47,92910,5009,871

MFLP Yashio

99-1 Tsubutakita,
Minamiushiroya,
Yashio-shi, Saitama

Real estate
trust beneficiaryinterests

39,692

10,6009,456

MFLP Atsugi

4021-1 Sakuradai, Nakatsu, Real estate
Aikawamachi, Aiko-gun,trust beneficiary
Kanagawa
interests

40,958

8,680

7,615

MFLP
Funabashi Nishiura

3-10-13 Nishiura,
Funabashi-shi, Chiba

Real estate
trust beneficiaryinterests

31,034

7,520

6,807

MFLP Kashiwa

259-1 Mukaiwari,
Aotashindentobichi,
Kashiwa-shi, Chiba

Real estate
trust beneficiaryinterests

31,291

6,900

6,149

MFLP Sakai(Note 3)

Real estate
1-171 Chikkoyawatamachi,
trust beneficiary
Sakai-ku, Sakai-shi, Osakainterests

22,429

4,910

4,374

MFLP Komaki

2020-1, Higashimae,
Honjo, Komaki-shi, Aichi

Real estate
trust beneficiaryinterests

40,605

8,520

8,219

MFLP Hino(Note 3)3-1-2 Asahigaoka,
Hino-shi, Tokyo

Real estate
trust beneficiaryinterests

28,080

7,570

7,543

MFLP Hiratsuka

2-1544-5 Nishishindo,
Hiratsuka-shi, Kanagawa

Real estate
trust beneficiaryinterests

33,055

7,090

7,049

433,816

102,740

94,522Not disclosed(Note 4)

2,440

2,142

Industrial real estate subtotal

Not disclosed(Note 4)

2,440

2,142

Total

Not disclosed(Note 4)105,180

96,664

Logistics facilities subtotal
MFIP Inzai(Note 3)2-101-14 Izumino,
Inzai-shi, Chiba

Real estate
trust beneficiaryinterests(Note 1) “Leasable area” is the floor area available for leasing of the building of each real estate in trust as of July 31, 2018 and is the sum total of the floorarea deemed to be leasable based on the lease agreement or building drawing, etc., rounded down to the nearest whole number.
(Note 2) “Appraisal value at end of period” is the appraisal value as of the valuation date of July 31, 2018 by real estate appraisers based on the asset
valuation methods and standards set forth in the Articles of Incorporation of MFLP-REIT and the rules and requirements imposed by The Investment
Trusts Association, Japan. The appraisal of each asset held is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa
Real Estate Appraisal Co., Ltd. and CBRE K.K.

- 15 -

(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai,” “MFLP Hino” and “MFIP Inzai,” “Leasable area,” “Appraisal
value at end of period” and “Book value at end of period” are the prorated figures equivalent to the quasi co-ownership interest in each property
that MFLP-REIT has acquired (50%, 50%, 20%, 15% and 20%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 16 -

The following is the status of leasing of real estate, etc. held by MFLP-REIT.
4th period(From February 1, 2018 to July 31, 2018)

Name of real estate, etc.

Total
number oftenants[at end of
period](Note 1)

Occupancy
rate[at end of
period](%)(Note 2)

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

Real estate
As aleasing
percentage ofbusinesstotal
revenues
real estate[duringleasing
period]business(millions ofrevenues
yen)
(%)

Total
number oftenants[at end of
period](Note 1)

Occupancy
rate[at end of
period](%)(Note 2)

Real estate
As aleasing
percentage ofbusinesstotal
revenues
real estate[duringleasing
period]business(millions ofrevenuesyen)(%)

GLP/MFLP
Ichikawa Shiohama(Note 3)

5

100.0

487

15.5

5

100.0

480

18.3

MFLP Kuki

3

100.0

477

15.2

3

100.0

470

17.9

MFLP Yokohama Daikoku(Note 3)

5

100.0

349

11.1

5

100.0

350

13.3

MFLP Yashio

2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Atsugi

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Funabashi Nishiura

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Kashiwa

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Sakai(Note 3)

5

100.0

5.4

5

100.0

MFLP Komaki

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

MFLP Hino(Note 3)

16

100.0

6.9

―

―

―

―

Not disclosed(Note 4)100.0

Not disclosed Not disclosed(Note 4)(Note 4)

―

―

―

―

Not disclosed(Note 4)100.0

Not disclosed Not disclosed(Note 4)(Note 4)

24

100.0

MFLP Hiratsuka
Logistics facilities
subtotal

169

216

167

6.4

Not disclosed Not disclosed(Note 4)(Note 4)Not disclosed Not disclosed(Note 4)(Note 4)Not disclosed(Note 4)Not disclosed Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)(Note 4)Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)

Industrial real estate
subtotal

Not disclosed(Note 4)Not disclosed Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)(Note 4)Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)Total

Not disclosed(Note 4)MFIP Inzai

100.0

3,148

100.0

Not disclosed(Note 4)

100.0

2,629

100.0

(Note 1) “Total number of tenants” is the number of tenants on each lease agreement concluded for each property as of each accounts settlement date. If apass-through master lease agreement has been concluded for the property, it is the total number of end-tenants.
(Note 2) “Occupancy rate” is leased area of the building expressed as a percentage of leasable area of the building of each real estate in trust on each leaseagreement concluded for each property as of each accounts settlement date, rounded to the first decimal place.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai,” and “MFLP Hino,” “Real estate leasing business revenues”
and “As a percentage of total real estate leasing business revenues” are the prorated figures equivalent to the quasi co-ownership interest in each
property that MFLP-REIT has acquired (50%, 50%, 20%, and 15%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 17 -

(4) Schedule of renewable energy power generation facilities
Not applicable.
(5) Schedule of rights to operate public facilities, etc.
Not applicable.
(6) Status of other assets
Trust beneficiary interests that have real estate as the main assets in trust, etc. are listed all at once in “(3) Real estate assets in
portfolio” presented earlier in this document, and there are no main specified assets invested by MFLP-REIT other than those listed
there in the portfolio as of July 31, 2018.
① Itemization of investment securities portfolio assets
Not applicable.
② Table of status of contract amount, etc. and fair value of specified transactions
Not applicable.
(7) Status of holding of assets by country and region
Not applicable, because there are none in countries and regions other than Japan.

- 18 -

4. Capital Expenditures of Real Estate Held(1) Schedule of capital expenditures
Of the capital expenditures accompanying renovations, etc. currently planned for real estate and real estate in trust of real estate
trust beneficiary interests held by MFLP-REIT, the following are the major planned amounts. There may be cases where the planned
construction amount ends up being in part expensed in accounting instead of being capitalized.
Planned construction amount(millions of yen)
(Note)Name ofreal estate, etc.

MFLP Kuki

Location

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP
Yokohama Daikoku

Yokohama, Kanagawa

MFLP
Yokohama Daikoku

Yokohama, Kanagawa

MFLP
Yokohama Daikoku

Yokohama, Kanagawa

MFLP Sakai

Sakai, Osaka

MFLP Hino

Hino, Tokyo(Note)

PurposeInstallation ofirrigation facilities
Countermeasureconstruction for waterleaking from positive
pressure ventilation
fans
Exterior wall painting(Section 2)Exterior wall painting(Section 4)
Replacement of headsof foam fire
extinguishing system
Switching to LED
lighting in center
drivewayConstruction for
expansion of bicycle
parking

Scheduled timeTotalamountAmountpaid
duringperiodTotalamountalready
paid

From January 2019
to January 2019

4

―

―

From January 2019
to January 2019

4

―

―

From September 2018
to December 2018

21

―

―

From March 2019
to June 2019

46

―

―

From July 2019
to July 2019

12

―

―

From December 2018
to December 2018

3

―

―

From June 2019
to July 2019

3

―

―

For “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFLP Hino,” “Planned construction amount” are the prorated figures equivalent to the quasi
co-ownership interest in each property that MFLP-REIT holds (50%, 20% and 15%, respectively).

(2) Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the fiscal period underreview for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period under review amounted to 46 million yen
and, other than this, there was 32 million yen in repair expenses categorized as operating expenses in the fiscal period under review.
Name ofreal estate, etc.

Location

PurposeMFLP
Yokohama Daikoku

Yokohama, Kanagawa

Exterior wall painting

MFLP
Yokohama Daikoku

Yokohama, Kanagawa

MFLP Sakai

Sakai, Osaka

Switching to LED
lighting in common
areas
Switching to LED
lighting in proprietary
areas

Other capital expenditures

Construction amount(millions of yen)
(Note)

From March 2018
to June 201820

From May 2018
to June 20183

From April 2018
to April 2018

10
12

Total
(Note)

Period46

For “MFLP Yokohama Daikoku” and “MFLP Sakai,” “Construction amount” are the prorated figures equivalent to the quasi co-ownership interestin each property that MFLP-REIT holds (50% and 20%, respectively).

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

- 19 -

5. Status of Expenses and Liabilities(1) Details of expenses related to asset management(Thousands of yen)
4th period(From February 1, 2018
to July 31, 2018)

Item
Asset management fee (Note)

3rd period(From August 1, 2017
to January 31, 2018)278,845

232,942

Asset custody fee

3,993

3,940

Administrative service fees

13,235

14,058

Directors’ compensation

5,400

5,400

Audit fee

9,100

9,100

Other expenses

33,69938,033344,272

303,475

Total(Note) Other than the amount stated above, there is an asset management fee for compensation associated with a property acquisition
factored into the book value of the properties (the 3rd fiscal period: 8,122 thousand yen; the 4th fiscal period: 48,895 thousandyen).

Shor-term loans

Category(2) Debt financing status
The following is the status of loans as of July 31, 2018.
Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse

Remarks

500

0.0982

Sept. 18,
2018

Bulletrepayment(Note 3)

Unsecured―200

0.1036

Sept. 18,
2018

Bulletrepayment(Note 3)

Nonguaranteed―

700

Sept. 1,
2016

2,000

2,000

0.2713

Sept. 1,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.4213

Sept. 1,
2026

Bulletrepayment(Note 3)Mar. 15,
2018

―

800

0.2400Mar. 15,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

2,000

2,000

0.3050

Sept. 1,
2023

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.3813

Sept. 1,
2025

Bulletrepayment(Note 3)

UnsecuredAug. 2,
2016

400

400

0.1425

Aug. 2,2022

Bulletrepayment(Note 3)

Nonguaranteed

Aug. 2,
2016

1,700

1,700

0.2113

Aug. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

―

900

0.4895

Sept. 15,
2027

Bulletrepayment(Note 3)

Sept. 1,
2016

2,200

2,200

0.1826

Mar. 1,
2023

Bulletrepayment(Note 3)Mar. 15,
2018

―

800

0.2400Mar. 31,
2022

Bulletrepayment(Note 3)

Borrowingdate

Sumitomo Mitsui Trust
Bank, Limited

July 17,
2018―

The Bank of Fukuoka,
Ltd.

June 15,2018

Subtotal

Sumitomo Mitsui
Banking Corporation

Long-term loans

Balance
Balanceat beginningat endof periodof period(millions of yen) (millions of yen)

LenderSumitomo Mitsui Trust
Bank, Limited

Mizuho Bank, Ltd.

MUFG Bank, Ltd.
(Note 4)- 20 -

Category

LenderBalance
Balanceat beginningat endof periodof period(millions of yen) (millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse

Sept. 1,
2016

600

600

0.3237Mar. 1,
2024

Bulletrepayment(Note 3)

Sept. 1,
2016

700

700

0.3425

Sept. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

―

300

0.2188Mar. 15,
2022

Bulletrepayment(Note 3)Mar. 15,
2018

―

300

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)

Aug. 2,
2016

2,100

2,100

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

Aug. 2,
2016

1,300

1,300

0.2169Feb. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

―

400

0.3563Mar. 14,2025

Bulletrepayment(Note 3)

Aug. 2,
2016

1,000

1,000

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)Mar. 15,
2018

―

600

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)

The Yamaguchi Bank,
Ltd.

Mar. 15,
2018

―

600

0.3319Sept. 13,2024

Bulletrepayment(Note 3)

Mitsui Sumitomo
Insurance Company,
LimitedMar. 15,
2018

―

600

0.3563Mar. 14,2025

Bulletrepayment(Note 3)18,00023,30018,00024,000Mizuho Trust & Banking
Co., Ltd.

Development Bank ofJapan Inc.

Long-term loans

Borrowingdate

The Bank of Fukuoka,
Ltd.

Nippon Life Insurance
Company

Remarks

Unsecured
Nonguaranteed

The Norinchukin Bank

Subtotal
Total(Note 1) “Average interest rate” is the weighted average interest rate during the period, rounded to the fourth decimal places.
(Note 2) If the “Maturity date” is not a business day, it becomes the following business day.
(Note 3) “Use” of funds is for purchase of real estate or real estate trust beneficiary interests, refinancing of loans, working capital, etc.
(Note 4) Concerning the borrowing from Mitsubishi UFJ Trust and Banking Corporation, the relevant rights and authority etc. have been transferred to MUFG
Bank, Ltd. as of April 16, 2018.

(3) Status of investment corporation bonds
Not applicable.
(4) Status of short-term investment corporation bonds
Not applicable.
(5) Status of subscription rights to investment units
Not applicable.

- 21 -

6. Status of Sale and Purchase during Period(1) Status, etc. of sale and purchase of real estate, etc. and asset-backed securities, etc. and infrastructure assets, etc. andinfrastructure-related assets
Acquisition

Disposition
Disposition date

Disposition
price(millions ofyen)Book value(millions ofyen)

Gain (Loss) on
sale(millions of
yen)

5,011

―

―

―

―

February 2, 2018

7,520

―

―

―

―

March 15, 2018

7,027

―

―

―

―

―

19,558――――Acquisition date

Acquisition
price(millions ofyen) (Note 1)

MFLP Komaki (Note 2)

February 2, 2018

MFLP Hino (Note 3)
MFLP Hiratsuka

Name of real estate, etc.

Total

(Note 1) “Acquisition price” is the purchase price of trust beneficiary interest as set forth on the agreement for sale and purchase of trust beneficiary interest for
the acquired asset, rounded down to the nearest million yen. The transaction price does not include consumption tax and local consumption tax or thevarious costs required in the acquisition.
(Note 2) For “MFLP Komaki,” “Acquisition price” is the prorated figure equivalent to the quasi co-ownership interest in this property that MFLP-REIT acquired
additionally (60%).
(Note 3) For “MFLP Hino,” “Acquisition price” is the prorated figure equivalent to the quasi co-ownership interest in this property that MFLP-REIT acquired(15%).

(2) Status, etc. of sales and purchases of other assets
Other main assets are generally bank deposits or bank deposits within assets in trust.
(3) Investigation into value, etc. of specified assets①
Real estate, etc.
Acquisition
Type of realorestatedisposition
Real estate
trust
beneficiaryinterests
Real estate
trust
Acquisition
beneficiaryinterests
Real estate
trust
beneficiaryinterests

Name of real estate,etc.

Acquisition
price orTransaction disposition
date
price
(millions ofyen) (Note 2)

MFLP Komaki(Note 3)February 2,
2018

MFLP Hino(Note 4)

MFLP Hiratsuka

Appraisalvalue(millions ofyen)

Appraisal company

Date of value

5,011

5,100

The Tanizawa Sōgō
Appraisal Co., Ltd.

November 30,
2017

February 2,
2018

7,520

7,570

The Tanizawa Sōgō
Appraisal Co., Ltd.

November 30,
2017

March 15,
2018

7,027

7,070

Japan Real Estate
Institute

November 30,
2017

19,55819,740

―

―

Total

(Note 1) For transactions requiring appraisal of real estate, etc. of specified assets pursuant to Article 201, Paragraph 1 of the Investment Trust Act, The
Tanizawa Sōgō Appraisal Co., Ltd. and Japan Real Estate Institute have carried out the appraisal pursuant to “Real Estate Appraisal Standards;
Particulars; Chapter 3: Appraisal on Value of Real Estate Subject to Securitization” and MFLP-REIT has been notified of the appraisal findings.
(Note 2) “Acquisition price” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax, consumption tax
and local consumption tax.
(Note 3) For “MFLP Komaki,” “Acquisition price” and “Appraisal value” are the prorated figures equivalent to the quasi co-ownership interest in this property
that MFLP-REIT acquired additionally (60%).
(Note 4) For “MFLP Hino,” “Acquisition price” and “Appraisal value” are the prorated figures equivalent to the quasi co-ownership interest in this property that
MFLP-REIT acquired (15%).

② Other
Not applicable.

- 22 -

(4) Status of interested party transactions, etc.
① Status of sale and purchase transactions with interested parties, etc.
Amount of purchase or sale, etc. (Note 2)
Category

Amount of purchase, etc.
(thousands of yen)

Total amountAmount of sale, etc. (thousands of yen)

19,558,000―

Breakdown of status of transactions with interested parties, etc. (Note 1)
Mitsui Fudosan Co., Ltd.

12,038,000 (61.6%)

― (

%)

Hino Tokutei Mokuteki Kaisha

7,520,000 (38.4%)

― (

%)

19,558,000 (100.0%)

― (

%)

Total

(Note 1) “Interested parties, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26, Paragraph
1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.
(Note 2) “Amount of purchase or sale, etc.” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax,
consumption tax and local consumption tax.

② Amount of commission fee, etc.
Total amount ofcommission fee, etc.
(A)(thousands of yen)

Category

Logistics management fee

82,565

Building management fee

95,404(Note)Breakdown of transactions with interested parties, etc.
Amount paid(B)(thousands of yen)Payee

As a percentage
of total amount(B/A)

Mitsui Fudosan Co., Ltd.

69,283

83.9%

Mitsui Fudosan Facilities Co., Ltd.

66,665

69.9%

Mitsui Fudosan Facilities West Co., Ltd.

6,242

6.5%

“Interested parties, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26, Paragraph
1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.

③ Other payments to interested parties, etc.
Other payments to interested parties, etc. are as follows.
Paid toCategory

Amount(thousands of yen)

Mitsui Fudosan Co., Ltd.

Repairs and related work

1,608

Mitsui Fudosan Building Management Co., Ltd.

Repairs and related work

3,957

Mitsui Fudosan Facilities Co., Ltd.

Repairs and related work

14,154

Mitsui Fudosan Facilities West Co., Ltd.

Repairs and related work

1,367

④ Leasing transaction, etc.
Leasing transactions with interested parties, etc. are as follows.
Name of lessee

Category

Mitsui Fudosan Co., Ltd.

Rent income, etc.

Rental revenues(thousands of yen)
141,756(5) Status, etc. of transactions with the asset management company pertaining to operations of concurrent business engaged
in by the asset management company
Not applicable, because the asset management company (Mitsui Fudosan Logistics REIT Management Co., Ltd.) does not engage
in any type I financial instruments business, type II financial instruments business, real estate brokerage or specified joint real estate
venture as a concurrent business.

- 23 -

7. Accounting(1) Status, etc. of assets, liabilities, principal, and income and loss
For the status, etc. of assets, liabilities, principal, and income and loss, please refer to “Balance Sheets,” “Statements of Income,”“Statements of Changes in Net Assets,” “Notes to Financial Statements” and “Distributions” presented later in this document.
(2) Change in method of calculation of depreciation and amortization
Not applicable.
(3) Change in method of valuation of real estate, etc. and infrastructure assets, etc.
Not applicable.
(4) Status, etc. of beneficiary certificates, etc. of investment trust established by itself
Not applicable.

- 24 -

8. Other(1) Notice① General meeting of unitholders
Not applicable.
② Board of directors of the investment corporation
There were no applicable conclusions or changes in major contracts approved by MFLP-REIT’s Board of Directors during the
fiscal period under review.
(2) Rounding of monetary and percentage figures
Unless otherwise specified, monetary figures are rounded down and percentage figures are rounded to the nearest specified unit inthis document.
(3) Disclosure pertaining to corporation holding overseas real estate
Not applicable.
(4) Disclosure pertaining to real estate of corporation holding overseas real estate
Not applicable.

- 25 -

Mitsui Fudosan Logistics Park Inc.
Balance Sheets
As of July 31, 2018 and January 31, 2018

AssetsCurrent assets
Cash and deposits (Notes 3 and 4)
Cash and deposits in trust (Notes 3 and 4)
Operating accounts receivable (Note 12)
Prepaid expenses
Deferred tax assets (Note 9)
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property and equipment (Note 5)
Buildings in trust
Structures in trust
Machinery and equipment in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Less: accumulated depreciation
Total property and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Total assets

4th period(As of July 31, 2018)(Thousands of yen)
3rd period(As of January 31, 2018)

¥

¥

¥

- 26 -

953,525
1,803,520
132,570
18,017
13
613,050
5,413
3,526,112

344,495
1,670,429
33,267
21,555
13
102,803
3,846
2,176,410

48,397,235
1,637,752
2,202,041
951
46,880,845(2,454,257)
96,664,568

38,941,693
1,243,107
1,933,816
951
37,205,414
17,956(1,709,295)
77,633,644

7,116
7,116

8,236
8,236

10,00041,555
1,050
52,60596,724,291
100,250,403

10,00038,7281,050
49,77877,691,660
79,868,070¥

Mitsui Fudosan Logistics Park Inc.
Balance Sheets
As of July 31, 2018 and January 31, 2018

Liabilities
Current liabilities
Operating accounts payable (Note 12)
Short-term loans payable (Notes 4 and 7)
Accounts payable (Note 12)
Accrued expenses
Income taxes payable
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable (Notes 4 and 7)
Tenant leasehold and security deposits in trust (Note 4)
Total non-current liabilities
Total liabilities
Net assets (Notes 6 and 10)
Unitholders’ equity
Unitholders’ capital
Units authorized: 8,000,000 units as of July 31, 2018 andJanuary 31, 2018
Units issued and outstanding: 262,774 units as of July 31, 2018and 224,000 units as of January 31, 2018
Deduction from unitholders’ capital
Unitholders’ capital (net)
Retained earnings
Total unitholders’ equity
Total net assets (Notes 6 and 10)
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

- 27 -

4th period(As of July 31, 2018)(Thousands of yen)
3rd period(As of January 31, 2018)

¥

¥

¥

92,127700,000
322,767222
883
538,269
1,321
1,655,592

164,346
317,532140
870
404,443
1,166
888,500

23,300,000
1,891,354
25,191,354
26,846,946

18,000,000
1,544,627
19,544,627
20,433,128

72,120,699

58,350,540(161,728)
71,958,971
1,444,484
73,403,456
73,403,456
100,250,403(100,128)
58,250,412
1,184,529
59,434,941
59,434,941
79,868,070¥

Mitsui Fudosan Logistics Park Inc.
Statements of Income
For the Fiscal Periods Ended July 31, 2018 and January 31, 2018

Operating revenues (Note 12)
Property-related revenues (Note 8)
Other property-related revenues (Note 8)
Total operating revenues
Operating expenses (Note 12)
Property-related expenses (Note 8)
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensation
Audit fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Insurance income
Interest on refund
Other
Total non-operating income
Non-operating expenses
Interest expense
Investment unit issuance expenses
Offering costs associated with issuance of investment units
Borrowing related expenses
Other
Total non-operating expenses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes (Note 9)
Net income (Note 10)
Retained earnings brought forward
Unappropriated retained earnings (Note 6)

4th period(From February 1, 2018
to July 31, 2018)(Thousands of yen)
3rd period(From August 1, 2017
to January 31, 2018)

¥

¥

¥
¥

3,037,442
111,226
3,148,668
1,306,126
278,845
3,993
13,2355,400
9,100
33,6991,650,398
1,498,269

1,086,701
232,9423,940
14,0585,400
9,100
38,033
1,390,176
1,239,412

12
373
501
0
887

17
375
0
393

32,396
12,8184,016
4,573
53,804
1,445,352
885
(0)
885
1,444,466
17
1,444,484

26,26023,2104,983
54,454
1,185,350
873
(2)
870
1,184,480
49
1,184,529

4th period(From February 1, 2018
to July 31, 2018)¥
5,499

Net income per unit (Note 10)

The accompanying notes are an integral part of these financial statements.

- 28 -

2,523,141
106,447
2,629,588

¥
¥

(Yen)
3rd period(From August 1, 2017
to January 31, 2018)¥
5,287

Mitsui Fudosan Logistics Park Inc.
Statements of Changes in Net Assets
For the Fiscal Periods Ended July 31, 2018 and January 31, 2018

Number of units

Balance as of August 1, 2017
Distribution in excess ofretained earnings
Dividends of earnings

224,000

Net income
Balance as of January 31,
2018
Issuance of new units
through public offering asof February 1, 2018
Issuance of new units
through allocation to athird party as of February
28, 2018
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of July 31, 2018

Unitholders’ capital
Retained(thousands of yen)
Total net assets
earnings(thousands of
Deduction from
Unitholders’
Unitholders’ (thousands ofyen)unitholders’yen)capitalcapital (net)capital¥ 58,350,540¥ (54,432)¥ 58,296,108 ¥ 1,151,857 ¥ 59,447,965--(45,696)(45,696)

-

-

-

-

(1,151,808)(1,151,808)

-

-

-

-

1,184,480

1,184,480

224,000¥ 58,350,540¥ (100,128)¥ 58,250,412 ¥ 1,184,529¥ 59,434,941

38,00013,495,282-

13,495,282

13,495,282

774

274,877-

274,877

274,877--(61,600)(61,600)(61,600)

-

-

-

-

(1,184,512)-

1,444,466

1,444,466¥ 71,958,971 ¥ 1,444,484¥ 73,403,456

-

-

-

262,774¥ 72,120,699¥ (161,728)

The accompanying notes are an integral part of these financial statements.

- 29 -(45,696)(1,184,512)

Mitsui Fudosan Logistics Park Inc.
Statements of Cash Flows
For the Fiscal Periods Ended July 31, 2018 and January 31, 2018

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Investment unit issuance expenses
Interest income
Interest expense
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expense 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 in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment units
Payment of distribution of earnings
Payment of distribution in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 3)
The accompanying notes are an integral part of these financial statements.

- 30 -

4th period(From February 1, 2018
to July 31, 2018)(Thousands of yen)
3rd period(From August 1, 2017
to January 31, 2018)

¥

¥

¥

1,445,352
746,082(12)
32,396(99,303)
3,538(2,826)(510,247)(105,961)
22,606
133,825(1,412)
1,664,037
12(32,314)(872)
1,630,863

1,185,350
596,951
23,210(17)
26,26037,756(18,016)(38,728)(102,803)(159,248)
107,149
13,050(17,507)
2,253
1,655,661
17(26,253)(825)
1,628,600(19,760,087)(1,941)
348,667(19,413,361)(3,291,455)(440)
94,546(3,197,348)

2,100,000(1,400,000)
5,300,000
13,770,159(1,183,977)(61,562)
18,524,619
742,1212,014,924
2,757,046

2,100,000(2,100,000)
1,000,000(1,151,392)(45,679)(197,071)(1,765,819)
3,780,744
2,014,924¥

Mitsui Fudosan Logistics Park Inc.
Notes to Financial Statements
For the Fiscal Periods Ended July 31, 2018 and January 31, 2018
1.

Organization and Basis of Presentationa. Organization
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 “Asset Management
Company”) as the organizer with investments in capital of 300 million yen (600 investment units). Registration with the Kanto
Local Finance Bureau of the Ministry of Finance of Japan was completed on March 25, 2016. The investment units were listedon the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock Exchange, Inc. on August 2, 2016
(Securities Code: 3471).
MFLP-REIT started acquisition of properties on August 2, 2016. With Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as a sponsor,
MFLP-REIT invests primarily in logistics facilities with a particular focus on MFLP facilities, that is, leading-edge logistics
facilities with Mitsui Fudosan quality. This focus has been chosen in light of MFLP-REIT’s goal of establishing a portfolio thatemphasizes location, quality and balance.
As of July 31, 2018, MFLP-REIT held 12 properties with the total acquisition price of 98.3 billion yen.
b. Basis of presentation
The accompanying financial statements of MFLP-REIT have been prepared in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial Instruments and Exchange Act of Japan,
the Investment Trust Act and the related regulations, which are different in certain respects as to application and disclosure
requirements of the International Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of MFLP-REIT, which wereprepared in accordance with Japanese GAAP and were presented in its Asset Management Report published for Japanese
investors. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to thefinancial statements issued domestically in order to present them in a format which is more familiar to readers outside Japan.
MFLP-REIT’s fiscal period is a six month period, which ends at the end of January and July of each year.
MFLP-REIT does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying financial
statements and the notes thereto, as permitted by the Financial Instruments and Exchange Act of Japan. As a result, the totals
shown in the financial statements and notes thereto do not necessarily agree with the sum of the individual amounts.

2.

Summary of Significant Accounting Policies
a. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and cash in trust, readily-available bank deposits, readily-available bankdeposits in trust and short-term investments that are readily convertible to cash and realizable with a maturity of three months
or less when purchased and that are subject to an insignificant risk of changes in value.

- 31 -

b. Property and equipment
Property and equipment (including those in trust) are stated at cost, which includes the original purchase price and relatedacquisition costs and expenses. Depreciation of property and equipment is calculated using the straight-line method over theestimated useful lives. The useful lives of principal property and equipment are as follows:
Buildings:
Structures:

2 to 59 years
9 to 20 years

Machinery and equipment:
Tools, furniture and fixtures:

14 to 16 years
5 to 15 years

c. Intangible assets
Intangible assets are stated at cost, which includes the original purchase price and related acquisition costs and expenses.
Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives. Amortization ofsoftware for internal use is calculated using the straight-line method over the estimated useful lives of five years at MFLP-REIT.
d. Investment unit issuance expenses
Investment unit issuance expenses are recorded as expenses when incurred.
e. Taxes on property and equipment
With respect to property taxes, city planning taxes and depreciable asset taxes imposed on real estate properties or trust
beneficiary interests in real estate, of the tax amount assessed and 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 the acquisition cost of the relevant property instead of being charged as expenses.
Capitalized property-related taxes amounted to 111,095 thousand yen and 1,107 thousand yen for the fiscal periods ended July
31, 2018 and January 31, 2018, respectively.
f. 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 account items are separately presented in theaccompanying balance sheets.
(1) Cash and deposits in trust(2) Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust and land intrust(3) Construction in progress in trust(4) Tenant leasehold and security deposits in trustg. Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.
3.

Cash and Cash Equivalents
Reconciliation between cash and cash equivalents and accounts and amounts in the balance sheets is as follows:(Thousands of yen)
4th period(As of July 31, 2018)

3rd period(As of January 31, 2018)

Cash and deposits
Cash and deposits in trust¥

953,525
1,803,520¥

344,495
1,670,429

Cash and cash equivalents¥

2,757,046¥

2,014,924- 32 -

4.

Financial Instruments
a. Status of financial instruments(1) Policy for financial instruments
MFLP-REIT procures funds for acquisition of assets or repayment of debts mainly through issuance of investment units,loans or issuance of investment corporation bonds.
MFLP-REIT generally invests surplus funds in deposits considering safety of the investments although surplus funds
could be invested in securities and monetary claims as a matter of policy.
MFLP-REIT enters into derivative transactions to a limited extent for the purpose of avoiding the risk of interest rate
fluctuation and other risks. MFLP-REIT does not engage in speculative transactions.
(2) Financial instruments, their associated risks and risk management system
Deposits are used for investment of MFLP-REIT’s surplus funds, and are exposed to credit risk such as failure of thefinancial institutions holding the deposits. MFLP-REIT limits the credit risk by restricting the deposit periods to shortterms and selecting financial institutions that have high credit ratings.
Proceeds from loans are used mainly to acquire real estate properties or refinance existing loans. While these loans are
exposed to liquidity risk at the time of repayment, MFLP-REIT mitigates the liquidity risk by diversifying its means offund procurement and lending financial institutions, dispersing repayment dates, establishing commitment lines andsecuring liquidity on hand, and also controls liquidity risk by preparing monthly fund management plans.
In addition, loans with floating interest rates are exposed to the risk of interest rate rising. MFLP-REIT limits the impact
of interest rate rises on its operations by keeping the ratio of interest-bearing debt to total assets at a low level andmaintaining the ratio of fixed-rate long-term loans at a high level.
Tenant leasehold and security deposits in trust are deposits from tenants, and are exposed to liquidity risk at the time thetenants vacate the properties. MFLP-REIT controls the liquidity risk by preparing monthly fund management plans.
(3) Supplementary explanation regarding fair values of financial instruments
The fair value of financial instruments is based on their observable market value, if available. When there is no observable
market value available, fair value is based on a price that is reasonably estimated. Since variable factors are also reflectedin estimating the fair value, different assumptions and factors could result in a different value.
b. Estimated fair value of financial instruments
The carrying amounts, fair values and their differences as of July 31, 2018 and January 31, 2018 are as follows. Financial
instruments for which it is extremely difficult to determine the fair value are excluded from the following tables (Note 2 below).
(Thousands of yen)
4th period (As of July 31, 2018)

Carrying amount(1) Cash and deposits¥(2) Cash and deposits in trust

953,525

Fair value¥

1,803,520

Total assets¥

2,757,046¥

Difference

953,525-

1,803,520-

2,757,046-(3) Short-term loans payable

700,000

700,000-(4) Long-term loans payable

23,300,000

23,189,445¥ (110,554)

Total liabilities¥ 24,000,000¥ 23,889,445¥ (110,554)(Thousands of yen)

3rd period (As of January 31, 2018)

Carrying amount(1) Cash and deposits¥(2) Cash and deposits in trust

344,495

Fair value¥

1,670,429

Total assets¥

2,014,924¥

Difference

344,495-

1,670,429-

2,014,924-(3) Long-term loans payable

18,000,000

17,874,337¥ (125,662)

Total liabilities¥ 18,000,000¥ 17,874,337¥ (125,662)- 33 -

(Note 1) Methods to estimate fair values of financial instruments(1) Cash and deposits and (2) Cash and deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(3) Short-term loans payable
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(4) Long-term loans payable
The fair value is determined based on the present value being calculated by discounting the sum of principal and interest by the assumed
interest rate which would be applied if a similar new loan were entered into.
(Note 2) Financial instruments for which it is extremely difficult to determine the fair value(Thousands of yen)
4th period(As of July 31, 2018)
Tenant leasehold and security deposits in trust

3rd period(As of January 31, 2018)¥ 1,891,354¥ 1,544,627

Tenant leasehold and security deposits in trust are not subject to fair value disclosure, because a reasonable estimation of future cash flows isdifficult as no market price is available and the actual deposit period cannot be determined even when a contract period is set in the lease
contract since there is a possibility that the leases may be cancelled, renewed or re-signed.
(Note 3) Redemption schedule for monetary claims(Thousands of yen)
4th period (As of July 31, 2018)

Due within one year

Cash and deposits¥

953,525

Cash and deposits in trust¥

1,803,520(Thousands of yen)
3rd period (As of January 31, 2018)

Due within one year

Cash and deposits¥

344,495

Cash and deposits in trust¥

1,670,429(Note 4) Repayment schedule for loans(Thousands of yen)
4th period(As of July 31,
2018)

Due within
one year

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

Due after
five years

Short-termloans payable¥ 700,000

-

-

-

-

-

Long-termloans payable

-

-

-

¥ 1,900,000¥ 6,500,000¥ 14,900,000(Thousands of yen)
3rd period(As of January 31,
2018)
Long-termloans payable

Due within
one year-

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

-

-

-

¥ 3,400,000- 34 -

Due after
five years¥ 14,600,0005.

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:(Thousands of yen)
4th period(From February 1, 2018
to July 31, 2018)

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

Carrying amount¥

Balance at the beginning of the period

77,615,688¥

74,921,573

Changes during the period

19,048,880

2,694,115

Balance at the end of the period

96,664,568

77,615,688

Fair value at the end of the period¥

105,180,000¥

84,930,000(Note 1) The carrying amount represents acquisition cost less accumulated depreciation.
(Note 2) Changes in the carrying amount during the 3rd period consisted of the increase mainly attributable to acquisition of trust beneficiary interests
in real estate for one property (3,279,898 thousand yen), and the decrease mainly attributable to depreciation (595,831 thousand yen). Changes
in the carrying amount during the 4th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests in realestate for three properties (19,747,009 thousand yen), and the decrease mainly attributable to depreciation (744,962 thousand yen).
(Note 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 Note 8. “Property-related Revenues andExpenses.”- 35 -

6.

Net Assets
a. Stated capital
MFLP-REIT issues only non-par value units in accordance with the Investment Trust Act of Japan and all of the issue prices of
new units are designated as stated capital. MFLP-REIT maintains at least 50,000 thousand yen as the minimum net assets as
required by the Article 67, Paragraph 4 of the Investment Trust Act of Japan.
b. Distributions
Distributions related to the periods but declared after the balance sheet dates are summarized as follows:(Yen)
4th period(From February 1, 2018 to July 31, 2018)
Total

I. Unappropriated retained earnings

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

Per unit

Total¥ 1,444,484,929¥ 1,184,529,947

88,029,290

61,600,000

Per unit

II. Distributions in excess of retained
earnings
Deduction from unitholders’capitalIII. Distributions

1,444,468,678

Distribution of earnings
Distribution in excess of retained

88,029,290

earnings
Total distributions
IV. Retained earnings carried forward¥¥ 1,532,497,968¥¥

16,251

5,497

1,184,512,000

335

61,600,000

5,832¥ 1,246,112,000
¥

¥

5,288
275

¥

5,563

17,947

In accordance with the distribution policy as defined in the Article 35, Paragraph 1 of the Articles of Incorporation of MFLP-REIT,
distributions shall be in excess of the amount equivalent to 90% of the amount 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 periods ended July 31, 2018 and January 31, 2018, MFLP-REIT declared a distribution amount of
1,444,468,678 yen and 1,184,512,000 yen, respectively, which are the maximum value of the integral multiple of the total number ofinvestment units issued and outstanding at the end of each period in amounts not in excess of unappropriated retained earnings.
Furthermore, based on the distribution policy as defined in the Article 35, Paragraph 2 of the Articles of Incorporation, 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 a continuous basis.
Based on this policy, for the fiscal period ended July 31, 2018, MFLP-REIT declared the distribution of 88,029,290 yen, which is
calculated as being almost equivalent to the remaining amount after subtracting the distribution of earnings of 1,444,468,678 yen from1,532,600,608 yen or 70% of FFO (funds from operation), as distribution of cash in excess of retained earnings (return of capital
applicable to distribution reducing unitholders’ capital for tax purposes). For the fiscal period ended January 31, 2018, MFLP-REIT
declared the distribution of 61,600,000 yen, which is calculated as being almost equivalent to the remaining amount after subtracting
the distribution of earnings of 1,184,512,000 yen from 1,246,218,208 yen or 70% of FFO (funds from operation), as distribution of
cash in excess of retained earnings (return of capital applicable to distribution reducing unitholders’ capital for 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 the rules 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 in excess of distributable amount, in an amount it determines to meet the statutory requirements.

- 36 -

7.

Short-term and Long-term Loans Payable
Short-term and long-term loans payable mainly consisted of bank borrowings under loan agreements. The following tablesummarizes the short-term and long-term loans payable as of July 31, 2018 and January 31, 2018.
(Thousands of yen)
4th period(As of July 31, 2018)
0.0982% unsecured short-term loans¥

500,000-

200,000-¥

700,000-¥

2,000,000

0.1036% unsecured short-term loans
Total short-term loans payable
0.2713% unsecured long-term loans due 2022

3rd period(As of January 31, 2018)¥

2,000,000

0.4213% unsecured long-term loans due 2026
0.2400% unsecured long-term loans due 2022

1,500,000
1,600,000

1,500,000-

0.3050% unsecured long-term loans due 2023
0.3813% unsecured long-term loans due 2025

2,000,000
1,500,000

2,000,000
1,500,000

0.1425% unsecured long-term loans due 2022
0.2113% unsecured long-term loans due 2024

400,000
1,700,000

400,000
1,700,000

0.4895% unsecured long-term loans due 2027
0.1826% unsecured long-term loans due 2023

900,000
2,200,000

2,200,000

0.3237% unsecured long-term loans due 2024
0.3425% unsecured long-term loans due 2024

600,000
700,000

600,000
700,000

0.2188% unsecured long-term loans due 2022
0.2613% unsecured long-term loans due 2023

300,000
900,000-

0.3125% unsecured long-term loans due 2026
0.2169% unsecured long-term loans due 2024

3,100,000
1,300,000

3,100,000
1,300,000

0.3563% unsecured long-term loans due 2025
0.2575% unsecured long-term loans due 2022

1,000,000
1,000,000

1,000,000

600,000

0.3319% unsecured long-term loans due 2024
Total long-term loans payable(Note)¥

23,300,000¥

18,000,000

The stated interest rates are the weighted average interest rates during the fiscal periods ended July 31, 2018 and January 31, 2018 androunded to the fourth decimal place.

The repayment schedule for loans is disclosed in Note 4. “Financial Instruments.”
MFLP-REIT had the commitment line contracts with two banks as of July 31, 2018 and January 31, 2018.
(Thousands of yen)
4th period(As of July 31, 2018)
Total amount of commitment line contracts

3rd period(As of January 31, 2018)¥

6,000,000¥

6,000,000

Loans executed¥

6,000,000¥

6,000,000-

Unused line of credit- 37 --

8.

Property-related Revenues and Expenses
The following table summarizes the revenues and expenses generated from the real estate leasing business for the fiscal periods
ended July 31, 2018 and January 31, 2018.
(Thousands of yen)
4th period(From February 1, 2018
to July 31, 2018)

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

A. Real estate leasing business revenues
Property-related revenues
Rental revenues¥

2,928,747¥

108,694

Common area charges
Total
Other revenues related to property leasing
Utilities charges
Parking lots

92,185¥

3,037,442¥

2,523,141¥

85,3109,236¥

83,381
10,882¥111,226¥

106,447¥

3,148,668¥

2,629,588¥

179,549¥

146,800

16,679Others
Total
Total property-related revenues
B. Real estate leasing business expenses
Property-related expenses
Outsourcing service expenses

2,430,956

12,183

Utilities expenses
Repair expenses

78,31732,17375,94012,615

Taxes and dues
Depreciation and amortization

257,614744,962244,523595,831

Others13,508

10,989Total property-related expenses
C. Operating income from property leasing [A-B]¥

1,306,126¥

1,086,701¥

1,842,542¥

1,542,887

Transactions with major unitholders for the fiscal periods ended July 31, 2018 and January 31, 2018 are as follows:(Thousands of yen)
4th period(From February 1, 2018
to July 31, 2018)

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

Operating transactions:Operating revenues
Operating expenses¥¥

141,756
70,891¥¥89,68652,760¥12,106,173¥

3,250,107

Non-operating transactions:Purchase of trust beneficiary interests in realestate9.

Income Taxes
MFLP-REIT is subject to Japanese corporate income taxes on its taxable income. The tax effects of temporary differences thatgive rise to a significant portion of the deferred tax assets and liabilities as of July 31, 2018 and January 31, 2018 as follows:(Thousands of yen)
4th period(As of July 31, 2018)

3rd period(As of January 31, 2018)

Deferred tax assets:
Accrued enterprise tax

¥

13

¥

13

Total deferred tax assets

¥

13

¥

13

Net deferred tax assets

¥

13

¥

13

- 38 -

Reconciliations between the Japanese statutory tax rate and the effective income tax rate with respect to pre-tax income
reflected in the accompanying statements of income for the fiscal periods ended July 31, 2018 and January 31, 2018 are as
follows.
4th period(As of July 31, 2018)

3rd period(As of January 31, 2018)

Statutory tax rate

31.74%

31.74%

Adjustments:
Deductible distributions(31.72)(31.72)

0.04

0.05

0.06%

0.07%

Other
Effective income tax rate after application of tax-effectaccounting

10. Per Unit Information
The following table summarizes per unit information for the fiscal periods ended July 31, 2018 and January 31, 2018.
4th period(From February 1, 2018
to July 31, 2018)

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

Earnings per unit:¥

Net income per unit (yen)Weighted average number of units outstanding (unit)

5,499

¥

5,287

262,659

224,000

4th period(As of July 31, 2018)

3rd period(As of January 31, 2018)

Net assets per unit (yen)¥279,340¥

265,334

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.
11. Leases
The future minimum rental revenues from tenants subsequent to July 31, 2018 and January 31, 2018 under non-cancelable
operating leases of properties are as follows.
(Thousands of yen)
4th period(As of July 31, 2018)
Due within one year¥

Due after one year

5,494,623

3rd period(As of January 31, 2018)¥

10,934,324

Total

¥

- 39 -

16,428,947

4,668,341
9,848,403¥

14,516,744

12. Transactions with Related Parties
Significant transactions and balances with related parties for the fiscal period ended July 31, 2018 are as follows:

Classification

Major
corporateunitholder

Name ofcompany

Mitsui
Fudosan Co.,Ltd.

Mitsui
Fudosan
Logistics
REIT
Management
Co., Ltd.
Mitsui
Fudosan
Building
Management
Co., Ltd.

Subsidiaryof major
corporateunitholder

Mitsui
FudosanFacilities Co.,
Ltd.

Address

Chuo-ku,Tokyo

Statedcapital(millionsof yen)¥ 339,766

Type ofbusiness

Real estatebusiness% ofvotingBusinessrights relationship(owned)Logistics
10.99% management
outsourcing

Type oftransaction(Note 2)

Transaction
amount(thousandsof yen)Logistics
managementfee¥ 69,283

Repairs andrelated work607

¥ 15,341

58,003

1,000

Rent
income, etc.

141,756

Operatingaccounts
receivable

Purchase ofreal estate

12,106,173--

Chuo-ku,Tokyo

Investment
200 managementbusiness

-

Asset
Asset
management management
outsourcing fee (Note 3)

327,740

Accounts
payable302,929

Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
Repairs andmanagement
related work
outsourcing

3,957

Operatingaccounts
payable

1,377

12,494 Operating
accounts
payable12,835

Building
management
fee
Repairs andrelated work
Chuo-ku,Tokyo

Osaka-shi,
Osaka

Daiichi Engei ShinagawaCo., Ltdku, Tokyo
Hino Tokutei
Mokuteki
KaishaOperatingaccounts
payableOther
propertyrelated
expenses

Property
490 managementbusiness-

Building
management
outsourcing

66,665

Other
propertyrelated
expenses

1,660

Other
incomeMitsui
FudosanFacilities
West Co.,Ltd.

Account

Balance at
end ofperiod(thousandsof yen)Chuo-ku,Tokyo

Property
200 managementbusiness-

480

Leasing andotherbusinesses

-

3,311

Real estatebusiness-214

Building
management
fee
Building
Repairs andmanagement related work
outsourcing
Otherpropertyrelated
expenses
Repair andmaintenance Repairs andof real estate related work
held-

Purchase ofreal estate

-

-

6,242
Operatingaccounts
payable

1,443

788

Operatingaccounts
payable527

7,562,921

Operatingaccounts
receivable

53,9871,278
88(Note 1) Consumption taxes are not included in the transaction amounts but included in the balances at the end of the period.
(Note 2) Methods to determine terms and conditions of transactions(1) Asset management fee is in accordance with terms set forth in the Articles of Incorporation of MFLP-REIT.
(2) Other terms and conditions of these transactions are determined based on the prevailing market price.
(Note 3) The asset management fee above includes 48,895 thousand yen of a management fee for property acquisitions included in the book value ofreal estate, etc. individually.

- 40 -

Significant transactions and balances with related parties for the fiscal period ended January 31, 2018 are as follows:

Classification

Major
corporateunitholder

Subsidiaryof major
corporateunitholder

Name ofcompany

Mitsui
Fudosan Co.,
Ltd.

Address

Chuo-ku,Tokyo

Statedcapital(millionsof yen)¥ 339,766

Type ofbusiness

Real estatebusiness% ofvotingBusinessrights relationship(owned)Logistics
12.90% management
outsourcing

Type oftransaction(Note 2)

Transaction
amount(thousandsof yen)Logistics
managementfee¥ 51,794

Repairs andrelated work

139

Account

Balance at
end ofperiod(thousandsof yen)Operatingaccounts
payable¥ 8,767

27,378

Other
propertyrelated
expenses

826

Rent
income, etc.

89,686

Operatingaccounts
receivable

Purchase ofreal estate

3,250,107-

Mitsui
Fudosan
Logistics
REIT
Management
Co., Ltd.

Chuo-ku,Tokyo

Investment
200 managementbusiness

-

Asset
Asset
management management
outsourcing fee (Note 3)

241,065

Accounts
payableMitsui
Fudosan
Building
Management
Co., Ltd.

Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
Repairs andmanagement
related work
outsourcing

1,000

-

Mitsui
FudosanFacilities Co.,Ltd.

Building
management
fee
Repairs andrelated work
Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
management
outsourcing

Otherpropertyrelated
expenses
Other
incomeMitsui
FudosanFacilities
West Co.,Ltd.

Osaka-shi,
Osaka

Property
200 managementbusiness-

Building
management
fee
Building
Repairs andmanagement related work
outsourcing
Otherpropertyrelated
expenses-

251,577-

52,528
11,851 Operating
accounts
payable16,705

1,338

202

-

7,154
504

Operatingaccounts
payable134(Note 1) Consumption taxes are not included in the transaction amounts but included in the balances at the end of the period.
(Note 2) Methods to determine terms and conditions of transactions(1) Asset management fee is in accordance with terms set forth in the Articles of Incorporation of MFLP-REIT.
(2) Other terms and conditions of these transactions are determined based on the prevailing market price.
(Note 3) The asset management fee above includes 8,122 thousand yen of a management fee for property acquisitions included in the book value ofreal estate, etc. individually.

- 41 --

1,520

13. Segment and Related Information
For the fiscal periods ended July 31, 2018 and January 31, 2018
a. Segment information
Segment information has been omitted as MFLP-REIT engages in a single segment of the real estate leasing business.
b. Related information(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 area(i) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of the total
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
For the fiscal period ended July 31, 2018
Tenant nameOperating revenues

Related segment(Note)

Real estate leasing business

Operating revenues

Related segment(Note)

Real estate leasing businessNippon Express Co., Ltd.
For the fiscal period ended January 31, 2018
Tenant name
Hitachi Transport System, Ltd.
(Note) Figures are not disclosed because consent has not been obtained from the tenants.

14. Significant subsequent events
Not applicable.
***- 42 -**