5th Fiscal Period(Fiscal Period Ended January 31, 2019)

Investor Presentation Material

Securities CodeMarch 18, 2019

Mitsui Fudosan Logistics Park Inc.
(MFLP-REIT)

3471

Disclaimer
This document is provided solely for informational purpose with regard to Mitsui Fudosan Logistics Park Inc. (MFLP-REIT) and is not intended to serve as an
inducement or solicitation to trade in any product offered by MFLP-REIT.
Purchase, sale and such of MFLP’s investment units entail the risk of incurring a loss due to fluctuations of the investment unit price.
Please consult with a securities company regarding the purchase of MFLP-REIT’s investment units or investment corporation bonds. Information presented on
this document should not be interpreted, unless otherwise specified, as constituting disclosure documents or asset management report required under Financial
Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
Concerning the information provided in this document, although MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. make every effort toprovide correct information, its accuracy, adequacy or completeness are not guaranteed regardless of the information being prepared by MFLP-REIT and Mitsui
Fudosan Logistics REIT Management Co., Ltd. or being received from third-parties.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking statements presented
by MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co., Ltd. according to assumptions or judgement based on information available on the date of thisdocument (the date if specified otherwise in the document). Forward-looking statements are based on assumptions such as the investment policy of MFLP-REIT,
applicable laws and regulations, market environment, interest rate environment, business practice and other facts as of the preparation date of this document, anddo not reflect or consider changes in situations after the preparation date. Forward-looking statements include, explicit or implied, uncertainties of existing risks,
unknown risks and other factors, and may materially differ from actual performance, business results, financial status and such of MFLP-REIT.
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no obligation to update or publicly disclose the content of this document (including forward-looking statements).
Duplication or reproduction of any content presented in this document without the prior consent of MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co.,
Ltd. is strictly prohibited.
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Table of Contents
1. Basic Strategy of MFLP-REIT
1-1 Basic Strategy of MFLP-REIT
1-2 Trajectory of Growth of Mitsui Fudosan’s Logistics
Facilities Business and 2nd Follow-on Offering
1-3 Four Roadmaps to Stable Growth andTrajectory of Growth
1-4 Steady Implementation of Four Roadmaps

4. Market Overview
…… P3
…… P4

4-1 Market Overview…… P5

5. Appendix…… P6

2. Financial Summary
2-1 Financial Highlights
2-2 5th Fiscal Period (Ended January 2019) P/L
2-3 6th Fiscal Period (Ending July 2019) Earnings
Forecast…… P9…… P10…… P113. Management Status of MFLP-REIT
3-1 Management Status Highlights
3-2 Our Portfolio
3-2-1 Location
3-2-2 Quality
3-2-3 Balance

3-3 External Growth
3-4 Internal Growth
3-5 Financial Strategy
3-6 Unitholder Relations• Statement of Income and Balance Sheet• Individual Property Income Statementfor 5th Fiscal Period• Appraisal Summary for the End of 5th
Fiscal Period• Initiatives for ESG• Status of Unitholders and Status of Interest-Bearing
Debt• Mitsui Fudosan’s
Major Development/Operation Track Record…… P28…… P33…… P34…… P35…… P36…… P38…… P39…… P13…… P14…… P16…… P18…… P19…… P20…… P22…… P24…… P261

1. Basic Strategy of MFLP-REIT

2

1-1. Basic Strategy of MFLP-REIT
MFLP-REIT aims to maximize unitholder value through a strategic partnership with
Mitsui Fudosan, a major property developer that leverages the comprehensive
strengths of its corporate group to create value in its logistics facilities
Value creation process by
Mitsui Fudosan’s logistics
facilities business

Gaining ofbusiness
opportunities

Propertyacquisition

Mitsui Fudosan Logistics Park Inc.
Enhancement ofasset value

Maximization ofunitholder value

Holding

Development

Strategic
partnership

Development

Logistics Properties Business Division

Creation of value by utilizing
the comprehensive strengthsof the GroupManagement

Holding and asset
management

Property
management

Leasing3

1-2. Trajectory of Growth of Mitsui Fudosan’s Logistics Facilities
Business and 2nd Follow-on Offering
Image of growth of properties (to be) developed/operated *by Mitsui Fudosan

Cumulative total investment size as of May 2018

32 facilities 480.0 billion yen *Cumulative total investment size as of July 201728 facilities 400.0 billion yen

Transition from Logistics
Properties Department to“Logistics Properties
Business Division”
at Mitsui Fudosan

MFLPREIT IPO

Establishment of“Logistics Properties
Department”
in Retail Properties Divisionat Mitsui Fudosan

Fiscal2012
平成24年度Fiscal2013
平成25年度Fiscal2014
平成26年度Fiscal2015
平成27年度Properties (to be) acquired in 5th and 6th fiscal periods

MFLP Hino (10%) MFLP Tsukuba

MFLP Inazawa

Acquisition
price58.3 billion yen
MFLP Atsugi II

Fiscal 2016平成28年度（予定）

Number of investment units issued and outstanding after follow-on offering: 379,000 units

Fiscal 2018
(planned)

Fiscal 2019(planned)

平成30年度（予定）平成31年度（予定）

Fiscal 2020
(planned)

平成32年度（予定）Properties defined in “Right of first look and preferential negotiation rights agreement” *9 properties 1,000,000 m2

Construction completed:
550,000 m2

Construction not completed
450,000 m2
NEW

MFLP Sakai (80%)

MFLP Hino (75%)

MFLP Fukuoka I MFIP Inzai (80%)[2nd follow-on offering] Number of newly issued investment units: 116,226 units (35.2 billion yen)

Fiscal 2017平成29年度（予定）

MFLP Kawaguchi I
NEW

MFLP Ibaraki

MFLP Prologis Park
Kawagoe (50%)

MFLP Hiroshima I

NEW

MFLP Funabashi II
NEW

NEW

MFLP Yokohama
KohokuExpansion ofproperties defined in“Right of first lookand preferential
negotiation rights
agreement”

MFLP Hiratsuka II

For further details on *, please refer to “Major properties developed/operated by Mitsui Fudosan” and “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 40.

4

1-3. Four Roadmaps to Stable Growth and Trajectory of
GrowthFiscal 2016 - Fiscal 2018
1st – 4th fiscal periods

August 2017

Acquisition withborrowed funds, etc.

755億円75.5

billion yen

billion yen

98.3

billion yen

End of 1st
fiscal period

103.5

Improvement of
portfolio quality andstability

billion yen

24.5%

End of 3rd
fiscal period

21.6%

22.5%

End of 4th
fiscal period

End of 5th
fiscal period

23.9%

26.8%

2nd fiscal
period5,198 yen

5,346 yen

3rd fiscal
period5,563 yen

4th fiscal
periodLTV management andexpansion of
acquisition capacity

5th fiscal
period76.1

billion yen

End of 2nd
fiscal period

71.5

billion yen

January 31, 2020
(End of 7th fiscal
period reference)

29.4%

27.6%

6th fiscal
period(Forecast)

7th fiscal
period(Reference)

6,415 yen

6,105 yen

Fiscal 2020
target asset
size

Fund procurement andLTV management optimalfor the expansion of
acquired asset size

Medium- tolong-term
stabilized LTV level

40 % to 50 % range
Continuous DPU
growththrough leverage
effects

6,492 yen

Growthpotential

After 2nd
follow-on
offering

Market cap *End of 1st
fiscal period

July 31, 2019(End of 6th fiscal
period forecast)Continuous
DPU growth5,832 yen

Aim for further
expansion of
200.0 asset size
billion yen

MFLP Fukuoka I
MFLP Atsugi II
MFLP Tsukuba (40%) MFLP Hino (10%)
MFLP Inazawa
MFIP Inzai (80%)

Distribution per unit
(DPU) *
1st fiscal
period156.7

billion yen(60%)

End of 2nd
fiscal period

8th fiscal period or after

Aim to continuously acquire
properties, focused onhigh-quality properties
covered by “Right of first lookand preferential
negotiation rights agreement”

16 properties

MFLPTsukuba

LTV *7th fiscal period

January 2019

December 201812 properties 13 properties
10 properties

78.7

6th fiscal period

Fiscal 2020 or after

2nd follow-on offering

January 2018

Acquisition withborrowed funds, etc.

9 properties

5th fiscal period

1st follow-on offering

Asset size

Fiscal 2019

End of 3rd
fiscal period

84.4

billion yen

End of 4th
fiscal period

84.7

billion yen

End of 5th
fiscal period

90.7

billion yen

Enhancement ofstability of investment
unit price and liquidity
through expansion ofmarket capitalization(As of February
28, 2019)

Expansion of market
cap through public
offerings, etc.

124.8

billion yen

For further details on *, please refer to “Four Roadmaps to Stable Growth and Trajectory of Growth” on p. 40.

5

1-4. Steady Implementation of Four Roadmaps [1 of 2]
Expansion of asset size Improvement of portfolio quality and stability
Portfolio as of end of
4th fiscal period (July 31, 2018)

Properties (to be) acquired in
5th and 6th fiscal periods

Portfolio after (planned)
property acquisition

No. of properties/Total floor area *12 properties / 450,000 m2

6 properties / 260,000 m2

16 properties / 720,000 m2

Asset size

98.3 billion yen

58.3 billion yen

156.7 billion yen

Adjusted forecast NOI yield *

5.2%

5.1%

5.2%

Average NOI yield *

5.0%

4.8%

4.9%

Average building age *4.7 years

3.1 years

4.1 years

Top 5 property ratio *57.0%

Top 5 tenant ratio (logistics facilities only) *46.4%

Further diversification

44.6%
40.8%

LTV management Expansion of acquisition capacity
End of 4th fiscal period(July 31, 2018)

End of 5th fiscal period(January 31, 2019)

End of 6th fiscal period(July 31, 2019)(Forecast)End of 7th fiscal period(January 31, 2020)(Reference)

LTV *

23.9%

26.8%

29.4%

27.6%

Acquisition capacity*(with LTV at 50%)

billion yen

52.0

49.0

billion yen

65.0

billion yen

70.0

billion yen

6

1-4. Steady Implementation of Four Roadmaps [2 of 2]
Continuous DPU * growth
6,492

6,415
DPU (yen)

6,200

Property acquisition
considering portfolio
5,700
yield
Issuance of new
investment units(Equity)

5,200

LTV management(Debt)

4,200

4,700

3,700

( ) EPU (yen)

5,832
5,563
5,346

5,198

6,417

6,375

6,105

6,200

5,963
(5,783)

5,745(5,762)(5,683)(5,497)

5,493

5,200

(5,288)5,190 (5,142)

5,700(4,955)

4,923

4,700
4,200

Forecast *1

ActualForecast *2

ActualFP ended Jan. 2017
(1st FP)FP ended Jul. 2017
(2nd FP)*1 Announced
on Sep. 13, 2016

*2 Announced
on Mar. 16, 2017

Forecast *3

ActualForecast *4

ActualForecast *5

ActualFP ended Jan. 2018
(3rd FP)FP ended Jul. 2018
(4th FP)FP ended Jan. 2019
(5th FP)*3 Announced
on Sep. 13, 2017

*4 Announced
on Mar. 15, 2018

*5 Announced
on Sep. 14, 2018

Forecast *6 Forecast *7

Reference *6 Reference *7

FP ending Jul. 2019
(6th FP)FP ending Jan. 2020
(7th FP)*6 Announced
on Jan. 9, 2019

3,700

*7 Announced
on Mar. 15, 2019

Expansion of market capitalization Enhancement of stability of investment unit price and liquidity
Early inclusion in indexes
Expansion of the investor baseMarket cap *End of FP ended Jul. 2018(End of 4th FP)

After 2nd follow-on offering

84.7 billion yen

124.8 billion yen* As of February 28, 2019

Increase in trading of investment
units (trading volume)

NAV per unit *305,914 yen

313,848 yen* After (planned) property acquisition in 6th fiscal period

For further details on *, please refer to “Steady Implementation of Four Roadmaps” on p. 40.

72. Financial Summary(5th fiscal period: from August 1, 2018 to January 31, 2019)8

2-1. Financial Highlights
Asset size

After (planned) property
acquisition in 6th fiscal period

13 properties

16 properties

103.5(total amount ofacquisition price)Asset

End of 5th fiscal period(Actual)Appraisal value *billion yen

13 properties

112.1
10.8
100%

billion yen

Unrealized gain*

Occupancy rate*billion yen

End of 5th fiscal period(Actual)Debt

Balance of interestbearing debt
LTV ratio

*

156.7

billion yen

16 properties

166.3
11.8
100%

billion yen

Appraisal value (billion yen)

28.0 billion yen

46.7 billion yen

26.8%

29.4%

166.3

140
1,400
120
1,200

12 properties

100
1,000
80
80
800
60
60
600
40
40
400

billion yen

End of 6th fiscal period(Forecast)

16 properties

160
1,600

9 properties

9 properties

9 properties 10 properties

75.5

78.4

80.8

IPO
Appraisalvalue as ofMarch 15,2016

End of 1st
fiscal period

End of 2nd
fiscal period

105.1

112.1

84.9

End of 3rd
fiscal period

End of 4th
fiscal period

LTV ratio

End of 5th
fiscal period

End of 6th
fiscal period(After(planned)
propertyacquisition)

29.4%
27.6%

26.8%

28%

23.9%

24.5%
21.6%

20%

13 properties

22.5%

End of 1st End of 2nd End of 3rd End of 4th End of 5th End of 6th End of 7th
fiscal period fiscal period fiscal period fiscal period fiscal period fiscal period fiscal period(Forecast) (Reference)

Distribution per unit (yen)Distribution per*
unit

EquityNAV per unit*

5th fiscal period(Actual)6,105 yen

6th fiscal period(Forecast)

6,415 yen

End of 5th fiscal period(Actual)After (planned) property
acquisition in 6th fiscal period

314,345 yen

313,848 yen

6,500
6,415

6,000
5,832

5,500
5,000

6,492

6,105

5,198

5,346

5,563

4,500
4,000

1st fiscal
period2nd fiscal
period3rd fiscal
period4th fiscal
period5th fiscal
period6th fiscal
period(Forecast)

For further details on *, please refer to “Financial Highlights” on p. 40.

7th fiscal
period(Reference)92-2. 5th Fiscal Period (Ended January 2019) P/L
4th period
Actual(a)

5th period
Forecast(Sep. 14,2018)

5th period
Actual(b)

Difference(b)-(a)Operating revenue

3,148

3,262

3,280

132

Operating expenses

1,650

1,753

1,720

70

744

772

772

27

1,498

1,508

1,560

61

(Unit: million yen)

Of which, Depreciation
Operating income

Main breakdown of difference
Operating revenue
Increase due to newly-acquired MFLP Tsukuba (60%) +58
Increase due to full-period operation of MFLP Hiratsuka +57
Decrease in photovoltaic power generation facilities rent
revenue-41
Increase in other operating revenue+57

Operating expenses
Increase due to newly-acquired MFLP Tsukuba (60%)+21

Increase due to full-period operation of MFLP Hiratsuka+10

Increase in other operating expenses+39

Non-operating income

0

-

36

35

Non-operating expenses

53

41

76

22

Ordinary income

1,445

1,467

1,520

75

Insurance income

Profit (Net income)

1,444

1,466

1,519

75

Non-operating expenses

Non-operating income+35

Disaster restoration expenses+33

Absence of investment unit issuance related expenses -15

Distribution per unit (DPU) (yen)

5,832

5,963

6,105

273

Of which,
Distribution of earnings per unit (EPU) (yen)

5,497

5,580

5,783

286

335

383

322

Of which,
Distribution in excess of earnings per unit (yen)Distribution in excess of earnings
expressed as a percentage of depreciation

11.8%

13.0%

For further details on *, please refer to “Method of calculation of cash distribution based on FFO” on p. 41.

11.0%<Reference>
Formula for distribution per unit based on FFO *FFO=Profit(Net income)-13

Source offunds for
distribution

=

① FFO

-

Distribution
per unit=② Source offunds for
distribution+ Depreciation, etc. …①
×

70%

…②

Number ofunits÷ investment
issued andoutstanding10

2-3. 6th Fiscal Period (Ending July 2019) Earnings Forecast(Unit: million yen)

5th period 6th period
ActualForecast Difference(b)-(a)(a)(b)

Operating revenue

3,280

4,958

1,677

Operating expenses

1,720

2,690

969

772

1,319

547

1,560

2,267

707

36

-

-36

Of which, Depreciation
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Profit (Net income)

76
1,520
1,519

113
2,154
2,153

36
634
634

Main breakdown of difference
Operating revenue
Increase due to newly acquired properties(MFLP Hino (10%), Tsukuba (40%), Inazawa,
Atsugi II, Fukuoka I/MFIP Inzai (80%))
Increase due to full-period operation of
MFLP Tsukuba (60%)
Increase in photovoltaic power
generation facilities rent revenue(excluding newly acquired properties)
Decrease in other operating revenue

5,044+1,528
+122
+42
-15

Operating expenses
Increase due to newly acquired properties(MFLP Hino (10%), Tsukuba (40%),
Inazawa, Atsugi II, Fukuoka I/MFIP Inzai(80%))
Increase due to full-period operation of
MFLP Tsukuba (60%) (excluding fixed
asset tax and city planning tax)
Expensing of fixed asset tax and city
planning tax for properties acquired in the
4th and 5th FPs (MFLP Hiratsuka, Hino
(15%), Komaki (60%), Tsukuba (60%))
Increase in other operating expenses<Reference>
7th period
Forecast

2,775*
1,331
2,268

+644

+42

2,184
+80
+202

2,184

-35

6,492

Non-operating income
Distribution per unit (DPU) (yen)

6,105

6,415

310

Of which,
Distribution of earnings per unit (EPU) (yen)

5,783

5,683

-100

322

732

410

11.0%

21.0%

-

Of which,
Distribution in excess of earnings per unit (yen)Distribution in excess of earnings
expressed as a percentage of depreciation

Absence of insurance income

Non-operating expenses
Interest expenses
Investment unit issuance related
expenses
Absence of disaster restoration
expenses

5,762
+19
+52
-33

* Fixed asset tax and city planning tax for properties (to be)acquired in 6th FP (MFLP Hino (10%), Tsukuba (40%), Inazawa,
Atsugi II, Fukuoka I/MFIP Inzai (80%)) (approximately 166 million
yen) are not included, and will be recorded in 8th FP and after.

730
20.8%

11

3. Management Status of MFLP-REIT
3-1. Management Status Highlights
3-2. Our Portfolio
3-2-1. Location
3-2-2. Quality
3-2-3. Balance

3-3. External Growth3-4. Internal Growth
3-5. Financial Strategy
3-6. Unitholder Relations123-1. Management Status Highlights
1. Our Portfolio

2. External Growth
Stable growth utilizing the nationwide high quality portfolio andextensive pipeline of Mitsui Fudosan’s logistics facilities business

Portfolio focusing on location, quality and balance
Focus on Location
Access (time) to nearest train station *1

Access (distance) to nearest
expressway interchange *1

By bus(20-30 minutes)
5.4%

5 km or more
Less than 1 km
5.7%
12.3%

3 km or more
but less than
5 km
37.5%

Less than 5 km
94.3%

By bus(20 minutes
or less)
33.7%

Many tenants have a relationshipwith Mitsui Fudosan
Withinwalking distance(20 minutes or less)
54.8%

Focus on Balance

Box
MFLP
28.1%

87.3%

End of 5th fiscal period
LTV

Medium- to long-term
stabilized LTV

Average time to maturity(long-term only) *Average interest rate *26.8%

40~50%

7.2 years

0.28%* As of January 31, 2019

5. Unitholder Relations
Mitsui
Fudosan
87.3%

Slope MFLP
36.9%

Pie charts above indicate figures for the portfolio properties excluding MFIP properties after (planned) property acquisition in
6th fiscal period (except the pie chart for property type).
*1 Percentages calculated based on (planned) acquisition prices are indicated.
*2 Percentages calculated based on total floor area considering quasi co-ownership interest are indicated.
** Occupancy rate on the basis of contracts entered as of March 15, 2019. (After (planned) property acquisition in 6th fiscal period)

Financial management with an emphasis on stability

Data center (MFIP)
7.8%
Rampway
MFLP
27.2%

100% occupancy rate throughsolution-based asset management *4. Financial Strategy

Property type *1

Other
12.7%

Properties
developed by
Mitsui Fudosan

For further details on *, please refer to Properties defined in “Right of first look and preferential negotiation rights agreement” on p. 40.

Stable management leveraging Mitsui Fudosan Group’s
comprehensive strengths and steady internal growth

94.6%

Focus on Quality

9 properties 1,000,000 m2

3. Internal GrowthWithin walking
distance/
Within 20 min.
by bus1 km or more but
less than 3 km
44.5%

Properties developed by Mitsui
Fudosan *2

Withinwalking distance(20-25 minutes)
6.1%

Properties defined in “Right offirst look and preferential
negotiation rights agreement” *Maximization of unitholder value through establishment of strong
relationship of trust with unitholders
Mitsui Fudosan’s investment in MFLP-REIT(As of March 15, 2019)

7.6%

13

3-2. Our Portfolio [1 of 2](After (planned) property acquisition in 6th fiscal period)

Stable portfolio with investment focused on MFLPs—leading-edge logistics facilities
developed by Mitsui Fudosan—of relatively young building age
Total acquired assets

Adjusted forecast NOI yield *Average appraisal NOI yield *Average building age *Average occupancy rate *16 properties / 156.7 billion yen

5.2% (after depreciation: 3.5%)

4.6%

4.1 years

100%

Category

Logistics
facilities

Location

Acquisition price(million yen)Appraisal value *(million yen)

Adjusted
forecast
NOI yield *(%)

NOI yield *(%)

Appraisal
NOI yield *(%)

Total floor area *1(m2)

Building age *(years)Occupancy
rate *(%)

GLP/MFLP Ichikawa Shiohama(50% quasi co-ownership interest)

Ichikawa,
Chiba

15,50017,250

5.0

4.7

4.2

105,019(52,509)

5.2

100

L-2

MFLP Kuki

Kuki,
Saitama

12,50013,700

5.8

5.3

4.8

73,153

4.7

100

L-3

MFLP Yokohama Daikoku(50% quasi co-ownership interest)

Yokohama,
Kanagawa

10,10010,500

4.9

5.0

4.8

100,530(50,265)

9.9

100

L-4

MFLP Yashio

Yashio,Saitama

9,650

10,900

5.3

5.1

4.6

40,728

5.0

100

L-5

MFLP Atsugi

Aiko,
Kanagawa

7,810

8,700

5.8

5.3

4.8

40,942

4.0

100

L-6

MFLP Funabashi Nishiura

Funabashi,
Chiba

6,970

7,680

5.4

5.2

4.7

30,947

4.1

100

L-7

MFLP Kashiwa

Kashiwa,
Chiba

6,300

6,900

5.5

5.1

4.7

31,242

3.3

100

L-8

MFLP Sakai(20% quasi co-ownership interest)

Sakai,
Osaka

4,500

4,880

5.5

5.3

4.8

125,127(25,025)

4.5

100

L-9

MFLP Komaki

Komaki,
Aichi

8,260

8,530

5.1

4.9

4.7

40,5972.1

100Propertyno.

Property name

L-1

14

3-2. Our Portfolio (List) [2 of 2](After (planned) property acquisition in 6th fiscal period)

Category

Propertyno.

Location

Acquisition price(million yen)Appraisal value *(million yen)

Adjusted
forecast
NOI yield *(%)

NOI yield *(%)

Appraisal
NOI yield *(%)

Total floor area *1(m2)

Building age *(years)Occupancy
rate *
(%)

Hino,
Tokyo

12,533

12,610

4.6

4.3

4.3

205,200(51,300)

3.4

100

Hiratsuka,
Kanagawa

7,027

7,090

4.8

4.6

4.6

33,061

2.3

100

Tsukubamirai,
Ibaraki

8,781

10,0006.1 *3
(5.8)

5.7

5.0

37,0278.7

25,4571.0

Inazawa,
Aichi

16,20016,300

5.1

4.7

4.7

72,8831.8

100Isehara,Kanagawa

13,10013,200

4.7

4.4

4.4

48,9760.9

100

Kasuya,Fukuoka

5,263

5,280

5.6

5.1

5.1

32,199

2.4

100

-

144,494

153,520

5.2

4.9

4.6

1,043,095(686,318)

4.0

100

MFIP Inzai

Inzai,
Chiba

12,22012,800

5.0

5.0

4.7

40,4785.0

Not disclosed

Total or Average-

156,714

166,320

5.2

4.9

4.6

1,083,574(726,796)

4.1

100

Subtotal

101,405

109,700

5.3

5.0

4.6

4.7

100

103,585

112,140

5.3

5.0

4.6

4.7

100

Property nameAcquired in 6th FP(10% quasi co-ownership interest)

L-10

MFLP Hino(25% quasi co-ownership interest)

L-11

MFLP Hiratsuka
Acquired in 5th/6th FPs

L-12
Logistics
facilities
L-13

MFLP Tsukuba

Existingbuilding
Annexbuilding

Acquired in 6th FP

MFLP Inazawa
Acquired in 6th FP

L-14

L-15

MFLP Atsugi II(To be) acquired in 6th FP

MFLP Fukuoka I

Subtotal or Average

Industrial realestateI-1

Acquired in 6th FP(80% quasi co-ownership interest)

100

Reference: As of end of 5th fiscal period
Logistics facilities (Property no. L-1 to L-12) *2
Total (Property no. L-1 to L-12, and I-1) *2

889,036(486,745)
929,514(494,840)

For further details on *, please refer to “Our Portfolio” on p. 40.
*1: “Total floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*2: MFLP-REIT’s quasi co-ownership interests as of the end of 5th FP are L-10 MFLP Hino (15%), L-12 MFLP Tsukuba (60%) and I-1 MFIP Inzai (20%).
*3: The annex building at MFLP Tsukuba qualifies for partial reduction or exemption of fixed asset tax and city planning tax until 2021. The adjusted forecast NOI yield after the end of this tax reduction or exemption treatment is expected to be 5.8%.

15

3-2-1. Location [1]Acquired assets
Rampway MFLP Facilities
Slope MFLP Facilities
Box MFLP Facilities
MFIP Facilities
Properties defined in “Right of firstlook and preferential negotiationrights agreement”
Rampway MFLP Facilities
Slope MFLP Facilities
Box MFLP Facilities
Properties developed by
Mitsui Fudosan
Rampway MFLP Facilities
Slope MFLP Facilities
Box MFLP Facilities
MFIP

Isehara JCT
AtsugiMinami IC

Mitsui Fudosan’s strategicarea* After (planned) property acquisition in 6th fiscal period163-2-1. Location [2]Geographically diversified portfolio
Location offering excellent access to transportation nodes
Location taking into consideration convenience in terms of commuting to work for employees
Investment area

Greater
Nagoya area

Tokyo
Kyushu area
metropolitan
3.6%
area

76.3%

16.9%

Access (time) tonearest train station

Access (distance) tonearest expressway interchange
5 km or more
3 km or more but 5.7%
less than 5 km
37.5%

By bus(20-30 minutes)

5.4%Less than 1 km
12.3%

Within walking
distance(20-25 minutes)

6.1%

Shuto
Expressway
Wangan Line

Kansai
area

22.5%

Tokyo
metropolitan
Tokyo-Gaikan
area andExpressway
Kansai area
6.7%

3.1%

Ken-O
Expressway

34.1%

79.5

%

Within walking
distance/
Within 20 min.
by busLess than 5 km

94.3%

94.6%

National
Route 16

13.0%

By bus(20 minutes
or less)

33.7%

1 km or more but lessthan 3 km
44.5%

Withinwalking distance(20 minutes or less)

54.8%* The pie graphs above indicate figures for the portfolio after (planned) property
acquisition in 6th fiscal period, calculated on an (planned) acquisition price basis(not including MFIP).

17

3-2-2. Quality
MFLP-REIT focuses investment in “leading-edge logistics facilities with Mitsui Fudosan quality”
realized by applying Mitsui Fudosan’s know-how as a comprehensive developer
Mitsui Fudosan quality
Basic specifications of leading-edge logistics facilities
Storage space

Large-sized
Largesite
sized site

[Total floor area]High
performance
高機能

Effective ceiling heightAt least 5.5 m

At least 10,000 m2
Column spacing
At least 10 m
Floor load capacity
At least 1.5 tons/m2＆ Worker

Cafeteria, shops＆ Community

Parcel pickup
lockers

MFLP Sakai[Column spacing]
At least 10 m
[Effective ceiling height]
At least 5.5 m[Floor load capacity]
At least 1.5 tons/m2

Bicycle rentals

Employees
working
at MFLP

Community space

LaLaport
discount tickets

Disasterprevention
防災

Adoption of seismic isolation

Emergency power generator

MFLP Sakai

MFLP Kashiwa

Equipped with• Seismic isolation• Quake-resistance• Emergency
power generation…etc.

＆ Tenant

Commuter shuttles

Car sharing

BCP measures

ICT LABO＆ EarthPromotionof useNeighborhood
storesDiscount
service etc.

Childcare facilities Promotion of use of nearby stores

Solar panels

LED lights* Photos are for illustrative purposes only. An MFLP facility or each portfolio asset is not necessarily equipped with all of the abovementioned standard specifications and features.
Some of the specific examples include also those of properties not held by MFLP-REIT.

18

3-2-3. Balance
Securing growth and stability by building a balanced portfolio through acquisitionof MFLPs developed in consideration of land characteristics and tenant needs
Investment ratio: 80% or more

Investment ratio: 20% or less

Logistics facilities

Industrial real estate

Logistics
needs

Shipping needs

Storage needs

Tenant typeMulti-tenant type

Single tenant type

Rampway MFLP

Slope MFLP

MFLP Hino

MFLP Atsugi II

Multi

Multi

MFLP Fukuoka I
SingleData center, etc.
Mainly long-term BTS type

MFIP

Box MFLP

Investment ratio
by property type *2
Rampway
27.2%

Data center
7.8%
Box
28.1%

(Mitsui Fudosan Industrial Park)

MFLP Tsukuba
SingleBTS

MFIP Inzai

Slope

GLP/MFLP
Ichikawa Shiohama
Multi

MFLP Sakai
Multi

36.9%
MFLP Inazawa
Multi

MFLP Komaki
SingleMFLP Funabashi NishiuraSingleMFLP Yashio
Multi

MFLP Kashiwa

Investment ratio
by tenant type *2
BTS Other
7.8% 4.5%

Single

Multi
60.0%

MFLP
Yokohama Daikoku
Multi

MFLP Hiratsuka
Other *1

MFLP Kuki
Multi

MFLP Atsugi

Single27.7%

Single*1“Other” refers to a property for which the classification (multi or single) cannot be disclosed in this material as consent for disclosure has notbeen obtained from the lessee.
*2 Figures for the portfolio after (planned) property acquisition in 6th fiscal period, calculated on a (planned) acquisition price basis are indicated.

19

3-3. External Growth [1]Stable growth utilizing the growth potential and extensive pipeline of
Mitsui Fudosan’s logistics facilities business
Proposal of
CRE strategies

Various CRE needs of client firms
Re-establishment ofcorporate logistics

Utilization of idle land

Sale ofreal estate, etc.

Global development(Establishment of overseas sites)

Development ofcorporate infrastructure

Further development of
Mitsui Fudosan’s logistics
facilities business

Trimming down of balance sheet(Off-balancing)

Mitsui Fudosan’s major development/operation track record *: 32 facilities 480.0 billion yen 2,700,000 m2 in total floor area
Properties held by MFLP-REIT and properties (to be) acquiredin the 6th fiscal period

Properties defined in “Right of first look andpreferential negotiation rights agreement” *
NEW

MFLP
Yokohama Daikoku

MFLP
Funabashi Nishiura

MFLP Komaki(To be) acquired in 6th FP

GLP/MFLP
Ichikawa Shiohama

MFLP Atsugi

MFLP Fukuoka I
Acquired in 6th FP

MFLP
Sakai

80%

MFLP Ibaraki

NEW

Additionally acquired in 6th FP

MFLP Hino

75%

Acquired in 6th FP

MFLP Kawaguchi I

50%

MFLP Prologis Park
Kawagoe

MFLP Hiratsuka II

NEW

NEW

MFLP Hiroshima I

MFLP Yokohama
KohokuProperties developed/operatedby Mitsui Fudosan
Construction completionin fiscal 2016

Construction completionin fiscal 2020

MFLP Funabashi I

MFLP Osaka I

Construction completionin fiscal 2019

Construction completionin fiscal 2021 or after

MFIP Haneda

Tokyo Rail Gate
EAST

Construction completionin fiscal 2019

MFLP Kawasaki I
MFLP Yashio

MFLP Kashiwa

MFLP Inazawa

Additionally acquired in 6th FP

MFLP Funabashi III

Construction completionin fiscal 2019

NEW…

Acquired in 5th/6th FPs

MFLP Atsugi II

Construction completionin fiscal 2021 or after

MFLP
Tachikawa Tachihi
MFLP Kuki

MFLP Hiratsuka

MFLP Tsukuba

MFIP Inzai

MFLP Funabashi II

Other data centers (2 properties)

For further details on *, please refer to “Major properties developed/operated by Mitsui Fudosan” and “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 40.

20

3-3. External Growth [2]Building a high-quality portfolio capitalizing on diversification of areas
Tokyo metropolitan area

Kansai area

MFLP Kuki
MFLP Ibaraki

Saitama Prefecture
Osaka Prefecture
MFLP Osaka I

MFLP Kashiwa

MFLP Prologis
Park Kawagoe

MFLP Sakai

MFLP Tsukuba

MFLP Yashio
MFLP Kawaguchi I

Tokyo Prefecture

MFLP Funabashi Nishiura MFLP Funabashi II

MFLP Tachikawa Tachihi
MFLP Hino

Greater Nagoya area
Hiroshima area
Kyushu area

MFLP Hiroshima I
MFLP Fukuoka I

MFIP Inzai

MFLP Komaki

MFLP Atsugi

MFLP Inazawa: Properties held by MFLP-REIT: Properties defined in “Right of first look andpreferential negotiation rights agreement”: Properties developed by Mitsui Fudosan

Kanagawa
Prefecture

MFLP Funabashi III

GLP•MFLP Ichikawa Shiohama MFLP Funabashi I
MFLP Kawasaki I

MFLP Rall Gate East
MFIP Haneda

Chiba
Prefecture

MFLP Yokohama Kohoku
MFLP Yokohama Daikoku

MFLP Atsugi II
MFLP Hiratsuka II
MFLP Hiratsuka

After (planned) property acquisition in 6th fiscal
periodProperties defined in “Right of first look and preferential negotiation rights agreement” *9 properties 1,000,000 m2 (Total floor area)

MFLP-REIT’s asset size
16 properties 720,000 m2 (Total floor area) 156.7 billion yen
For further details on *, please refer to “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 40

Further expansion of properties defined in “Right of firstlook and preferential negotiation rights agreement”

Continuous external growth21

3-4. Internal Growth [1]Achieve stable management by leveraging Mitsui Fudosan Group’s platform andclient network
Effectively leverage the Mitsui Fudosan Group’s platform and client network in leasing
MFLP-REIT believes that it can stably manage its portfolio by utilizing the strong platform and broad client network that the Mitsui Fudosan Group has developed.

Occupied by many tenants that have a relationshipwith Mitsui Fudosan
Lease
agreement

Value creation process by Mitsui Fudosan’slogistics facilities business

Gaining of business
opportunities

End user

Development
Creation of optimal concept

Based on proposal of CRE
strategies, not relying on bidding

Owner oflogistics facility

Lease
agreement

Logistics
firm

Logistics
agencyagreement

End user

Logistics Properties Business
Division(3PL operator, etc.)

Property management

Can directly approach logistics
firms and end users regardless ofcontract typeHigh quality facility operation
skills under the Group
collaboration

Strong relationships
with leading 3PL
operators* Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year ended
March 31, 2018

Leasing
Strong leasing capability
capitalizing on broad client
network

Occupied by anumber of tenants
that share a
relationship with
Mitsui Fudosan

Logistics Properties Business
Division of Mitsui Fudosan

Fully leverage the Mitsui Fudosan Group’s broad client network
Office building
Retail facility businessbusiness
Client network:
Client network:
Approx. 2,300 firms *Approx. 3,000 firms *Maximization ofvalue by utilizing thecomprehensive
strengths of theGroup

Strategy Planning and
Administration Department

Logistics Properties Project
Planning Department

Acquisition ofdevelopment sites

Logistics Properties Development
Department

Planning/construction ofbuildings
Facility management

Logistics Properties Leasing andMarketing Department

Solicitation of tenants

223-4. Internal Growth [2]
Steady internal growth through provision of solutions-based asset management andmaintaining relationships with tenants over the medium to long term
Tenant diversification

Key points of future asset management plans

Japan Logistic
Systems

Other
Suzue Corporation
Lindt

Challenges facing logistics firms

MARUBENILOGISTICS

Domestic 3PL②
Domestic 3PL①
Hitachi Transport
System Kanto

Tenantdiversification

RakutenLabor shortage

NIPPONEXPRESS

E-LogiT

Sagawa Global Logistics

Hitachi Transport
System Metropolitan

Sun Toshi
Tatemono

MISUMI

Lease agreements

Anticipation of
future rises indelivery costs

Occupancy rates(%)

Average lease
period *Remaining lease
contract period

End user
Responding toautomation

100

6.9 years

98

Averageoccupancy rate

96

Average 4.1 years

94

90
Aug. 31,2016

Staggering of contract
expiration periods

Specific examples ofsolutions-based asset managementby Mitsui Fudosan Group

100%

92

Jan. 31,2017

Mar 15,
2019

29.8%

22.1%
12.3%

5.5%

6.1%

6.6%

7th FP
ending2020/01

8th FP
ending2020/07

9th FP
ending2021/01

1.4%

8.1%
0.7%
10th FP
ending2021/07

11th FP
ending2022/01

12th FP
ending2022/07

13th FP
ending2023/01

14th FP
ending2023/07

 Consulting service for leading-edge
ICT-related products for improving
efficiency, labor-saving, etc.
 Consulting support to help tenantcompanies secure staff
 Matching of 3PL operators and end
users

7.2%

～
～

6th FP
ending
2019/07

Logistics firm

(3PL operator, etc.)

DAIWA Co.

Increasing
the efficiency
of operations

End user
MFLP-REIT

Kimura Unity

KOKUBU

Addressing
BCP, etc.

16th FP orafter Establishment of comfortable working
environment for employees※ The graphs and tables above show figures based on contracted leased areas stated in lease agreements concluded as of March 15, 2019 after (planned) property acquisition in 6th fiscal period. Tenant
diversification excludes MFIP.
* For details of calculation of “Average lease period,” please refer to “Calculation of average lease period” on p. 41.

ICT LABO

23

3-5. Financial Strategy [1]Financial management with an emphasis on stability
Debt financing

MFLP-REIT aims to establish stable banking relationships centered on funding from major domestic financial institutions.
In addition, we plan to engage in debt financing with due consideration of several factors such as lengthening borrowing periods
and staggering of maturity dates.

Total interest-bearing debt

Average time to maturity(long-term only)

Average interest rate

28.0 billion yen

7.2 years

0.28%

Status of borrowings

Sumitomo Life
Insurance Company
The Norinchukin Bank

6,000

5.4%

5,600

Total amount
Sumitomo
for all 13 financial 15.4 Mitsui Banking
Corporation%
Mizuho Trust & 6.8%
institutions
Banking28.0 billion yen

2,000

4,000
3,100

3,000
1,900

1,900

1,700

1,000

0

6th FP
ending
2019/07～～

1,000
12th FP
ending2022/07

13th FP
ending2023/01

14th FP
ending2023/07

15th FP
ending2024/01

16th FP
ending2024/07

17th FP
ending2025/01

18th FP
ending2025/07

Status of LTV and balance of interest-bearing debt
End of 5th fiscal period(Actual)26.8％
28.0 billion yen

End of 6th fiscal period(Forecast)

29.4％
46.7billion yen

Shinkin Central
Bank

1,500

19th FP
ending2026/01

End of 7th FP reference

27.6％
42.8 billion yen

900

20th FP
ending2026/07

21st FP
ending2027/01

16.8%

The Bank of Fukuoka 6.1%

5,000

3,000

2.1%

Mizuho Bank

Nippon Life Insurance
Company(million yen)

3,400

3.6%

3.9%

Interest-bearing debt maturity ladder

4,000

The Yamaguchi
Bank
Mitsui Sumitomo
2.1% Insurance

22nd FP
ending2027/07

7.1%

7.5%

Development
Bank of Japan

12.5%
10.7%
MUFG Bank, Ltd.

Sumitomo
Mitsui TrustBank

23rd FP
ending2028/01

Medium- to long-term
stabilized level

40% to 50% range

Credit rating assignment
Credit rating agency

Rating details

Remarks

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Rating outlook: Stable* The graphs, tables and rating above are as of January 31, 2019.

24

3-5. Financial Strategy [2]Efficient cash management
Based on the characteristics of logistics facilities, such as the ratio of building value to land value being typically high, MFLP-REIT intends to makecash distributions, including distributions in excess of earnings, on an ongoing basis each fiscal period from a perspective of securing stable
distribution levels while managing cash efficiently.

Diagram of cash distribution based on FFO
Leasingbusiness
expenses,
SG&A, etc.

Pay distributions
based on a threshold ofapprox. 70% of FFO

Key points of cash distribution in excess of earnings
Level of distribution
For the time being, we intend to pay distributions (including distributions in excess ofearnings) calculated at an amount equivalent to approximately 70% of FFO (excluding
gain or loss on sale of real estate, etc.) for the relevant fiscal period on an ongoing basis,in principle.

FFO

Securing long-term building maintenance funds
Rentalrevenue

Depreciation

Distributions in excess of earnings will be paid to the extent that an amount can beretained that is more than double the six-month average of capital expenditures statedin the engineering report for each operating period.

Distributions
in excessof earnings

Profit *(Net Income)Distributionsof earnings

Targeted at
70%* Gain or loss on sale of real estate, etc. is not included in “Profit (Net income)” in the above chart.

Securing financial stability
Distributions in excess of earnings will not be made if appraisal LTV ratio * exceeds 60%
for each operating period.

* Appraisal LTV ratio =Interest-bearing debt ÷ (Total assets - Book value of portfolio real estate, etc. + Appraisal value)25

3-6. Unitholder Relations
Maximization of unitholder value through establishment of strong relationship oftrust with unitholders
Asset management fee structure consistent with the interests of unitholders
Our aim is to align the interests of the Asset Manager with those of the unitholders.

Assetmanagement
fee I

Total assets × 0.1% (maximum)

Asset
management
fee II

Operating income (before deduction of asset management fees and depreciation) × 5.5% (maximum)

Asset
management
fee III

Pre-tax earnings (before deduction of asset management fees) × Pre-tax EPU(before deduction of asset management fees) × 0.001% (maximum)

Same-boat investment in MFLP-REIT by Mitsui Fudosan
MFLP-REIT receives 7.6% investment in capital from Mitsui Fudosan. (As of March 15, 2019)
Receiving certain investment in capital leads to alignment of the interests of MFLP-REIT’s unitholders and Mitsui Fudosan and asset management that
pursues mutually greater interests.

7.6%
26

4. Market Overview

27

4-1. Market Overview [1]Supply-demand balance and vacancy rate [1 of 2]: New supply in 2017 and 2018
: Net absorption in 2017 and 2018

Greater Tokyo metropolitan area

: Submarket areas: Vacancy rate 5–10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–= 100 thousand m2

Forecast(thousand m2): Vacancy rate 0–5%

* As of December 31, 2018

15%

2,500

13%

2,000

11%

Tohoku/Ken-O
Expwy area

9%

1,500

7%
1,000

5%
3%

500
0

National Route16 area

Kan-Etsu/Ken-O
Expwy area

1%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-1%(year)

Tokyo-Gaikan
Expwy area

Narita area

(thousand m2)

6%

900

3.7%

600

Hachioji area

4%
Chiba inland area

2.2%
2%

300

0

Q1

Q2

Q3

Q4

2017

New
supply

Q1

Q3
Q32

Q2

Q4
Q42

0%

Kanagawa
inland area

Greater Tokyobay area

2018

Net
absorption

Vacancyrate

Vacancy rate(logistics facilities
1 year old or older)* Source: CBRE K.K. (including forecast figures), as of December 31, 2018
* The survey is of rental logistics facilities that are held by real estate investment companies, real estate development companies, etc. and have total floor area of 5,000 m2 or more.

28

4-1. Market Overview [1]Supply-demand balance and vacancy rate [2 of 2]
Greater Nagoya area

Greater Osaka area

Forecast(thousand m2)
2,000

Greater Kyushu area
Forecast(thousand m2)
15%

2,000

Forecast(thousand m2)
15%

400

15%

350
1,500

10%

1,000

1,500

10%

500

10%

250
200

1,000
5%

300

5%

500

150

5%

100
50

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

0%0(year)(thousand m2)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

18%

500

9.4%

18%
16%

14%

14%
12%

500

10%

8.0%

6%

4.4%

250

4%

Q1

Q2

Q32
Q3

Q42
Q4

Q1

Q2

2017

Q3

Q4

2018

MFLP Ibaraki
Osakainland area

Other area

Q4

0

Q1

MFLP Osaka I

16%
14%
12%

100

10%

Q2

Q32
Q3

Q42
Q4

Q1

Q2

2017

MFLP
Inazawa

Q3

8%

8%
6%

6%

50

2.8% 4%
2%

2%

Q4

2018

0%

0

Q1

Q2

Q32
Q3

Q42
Q4

2017

Q1

Q2

Q3

Q4

0%

2018

MFLP
Komaki
MFLP
Fukuoka I

Osaka Prefecture
Osaka bay /Kobe area0%(year)

18%

4%

2.6%

2%
0%

150

10%

8%
250

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

(thousand m2)

750

16%
12%

0

(year)(thousand m2)

750

0

0%

Fukuoka
Prefecture

Aichi
Prefecture

MFLP Sakai

29

4-1. Market Overview [2]Logistics facilities
40 years old or older
31.9%
Future demand for
replacement ofaging properties

Logistics facilities
less than 40 years
old 64.1%

Leading-edge
logistics facilities
4.0%
Highly scarceleading-edge
logistics facilities

600

35%

500

30%
25%

400

20%

300

15%

200

(As of December 2017)

10%

100

5%

0

0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (year)
Estimate for logistics facilities
築40年未満の推計値
less than 40 years old

Share of logistics facilities
築40年以上のシェア
40 years old or older

Share of leading-edge logistics facilities
先進的物流施設シェア

Tenants / End users of logistics facilities
Other

Other

Over 40 years old

Manufacturing

8%

4%

3%

20,000

9%

5%

27%

Share bytenantbusiness type10,000Logistics

Manufacturing

Wholesale

15,000Share byend userbusiness type

Retail40%

Retail5,000

13%Logistics

1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

0

Leading-edge
先進的物流施設
logistics facilities

Estimate for logistics facilities
築40年以上の推計値
40 years old or older* Estimates by CBRE K.K. based on “Building Starts” (Ministry of Land, Infrastructure, Transport and Tourism) and“Summary Report on Prices, etc. of Fixed Assets” (Ministry of Internal Affairs and Communications).
For details, please refer to “About analysis of Japan’s logistics facilities stock” on p. 41 of this presentation material.

Long-term data on construction starts of logistics facilities(nationwide)(thousand m2)(million m2)

Stock of logistics facilities in Japan

Source: CBRE K.K.

(year)* Figures calculated as the sum total of the floor area of structures with “warehouse” as the use category and “steelframed structure,” “reinforced concrete structure” or “steel-framed reinforced concrete structure” as the structure type.

71%

Wholesale

20%

Source: CBRE K.K.
* Figures are rounded to the whole number.
* The survey is of rental logistics facilities that are held by real estate investment companies, real estate development
companies, etc. and have total floor area of 5,000 m2 or more as of the end of December 2018.

30

4-1. Market Overview [3]Mounting demand due to 3PL business ande-commerce market size expansion

Broader demand for leading-edge logistics
facilities

3PL market with stable growth

Growth of convenience stores/drug stores

2.8(100 million yen)
30,000

trillion yen
Net sales

18,000

Number of convenient stores (left axis)

16,00010,000

2010

2011

2012

2013

2014

2015

2016

2017 (year)* Figures compiled by CBRE K.K. based on the data of “Monthly Logistics
Business (LOGI-BIZ)” (As of August 2018)

Expanding e-commerce market scale

15,000~~180,000

Scale of E-commerce market

2014

2015

2016

2017

(year)

12,00000
2017(Estimated)

Attracting delivery bases of retail stores(convenience stores/drug stores)

16.5

Manufacturer

6

E-commerce ratio

Afterconsolidation

150,000

3Store

Wholesaler(year)

Expanding cloud services market (in Japan)(100 million yen)
60,0004.9

trillion yen

50,000
Manufacturer

2022(Forecast)

Source: “Comprehensive Survey of Data Center Business Market 2018: Vol. 1
Market Edition” by Fuji Chimera Research Institute, Inc. (February 21,
2018)

Consolidation of scattered logistics bases
into a delivery center(%)

10,0005,000

Conventional

5.8%

120,000~~

Source: “Current Survey of Commerce” by the Ministry of Economy, Trade and Industry(Announced on March 14, 2018)

trillion yen(100 million yen)

25,00014,00048,0000

15,0002.7

trillion yen

20,00052,00050,000(100 million yen)
30,000

Number of drug stores (right axis)

54,00020,000

Data center market with significant growth(in Japan)(stores)(stores)
58,00056,00025,000

Expansion of the data center market

Store

Delivery center

40,00030,000Integration of manufacturers’ logistics bases

20,00090,0000
2017(year)
Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade andIndustry (Announced on April 25, 2018)
2010

2011

2012

2013

2014

2015

2016

* Amounts and percentages indicate the scale of B to C market in the e-commercemarket.

Afterconsolidation

Warehouse for Transport
parts

Assembly plant

Transport Warehouse for Transport

Consolidation of separately located warehousefor parts, assembly plant and warehousefor end products into one base
MFLP

10,000end products

Transport

Retail stores /Consumers

60,000Conventional0
2017(Estimated)

2021(Forecast)

Source: “Reality and Future Prospective of Cloud
Computing 2018: Vol.1 Users’ Questionnaire
Analysis and Cloud Market Edition” by Fuji
Chimera Research Institute, Inc. (February 28,
2018)(year)

31

5. Appendix

32

Statement of Income and Balance Sheet
Statement of income

Balance sheet(Unit: million yen)

Item

Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses
Expenses related to rent business4th fiscal period

5th fiscal period(ended Jul. 31, 2018)(ended Jan. 31, 2019)

3,148

3,280

3,037

3,135

111

145

1,650

1,720

ActualActual

1,306

1,338

Asset management fee

278

310

Asset custody and administrative service fees

17

20

Directors’ compensations

5

5

Other operating expenses

42

46

1,498
0
53

1,560
36
76

32

36

12

-

8

40

1,445
1,445
0
1,444
1,444

1,520
1,520
0
1,519
1,519

Operating income
Non-operating income
Non-operating expenses
Interest expenses
Other offering costs associated withissuance of investment units
Other
Ordinary income
Profit before income taxes
Income taxes
Profit (Net Income)Unappropriated retained earnings(Unit: million yen)

Item
Current assets
Cash and deposits
Cash and deposits in trust
Consumption taxes receivable
Other current assets
Non-current assets
Property, plant and equipment
Other non-current assets
Total assets
Current liabilities
Operating accounts payable
Short-term borrowings
Accounts payable – other
Income taxes payable
Advances received
Other current liabilities
Non-current liabilities
Long-term borrowings
Tenant leasehold and security
deposits in trust
Total liabilities
Total unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Total net assets
Total liabilities and net assets

4th fiscal period

5th fiscal period(ended Jul. 31, 2018)(ended Jan. 31, 2019)

3,526

3,129

96,724

101,462

100,250

104,591

1,655

2,922

25,191

28,278

1,891

1,978

26,84673,40331,20173,39073,403
100,250

73,390104,591

Actual

953
1,803
613
156

96,664
59

92
700
322
0
538
1

23,30072,120-161
71,9581,444Actual

936
2,035
99
57

101,395
66

205
1700
444
0
570
0

26,30072,120-249
71,8701,519

33

Individual Property Income Statement for 5th Fiscal Period(Unit: million yen)
GLP/MFLP
Ichikawa
Shiohama

MFLP
Kuki

MFLP
Yokohama
Daikoku

MFLP
YashioMFLP
Atsugi

MFLP
Funabashi
Nishiura

MFLP
Kashiwa

MFLP
Sakai

MFLP
Komaki

MFLP
Hino

MFLP
Hiratsuka

MFLP
Tsukuba

MFIP
Inzai

Portfolio
total

184 days

184 days

184 days

184 days

184 days

184 days

184 days

184 days

184 days

184 days

184 days

60 days

184 days-

Lease businessrevenue

450

436

331

138

213

3,135

Other
lease businessrevenue

31

39

19

23

16

145

Total

481

476

351

162

230

3,280

Outsourcing
expenses

35

30

25

Utilityexpenses

19

28

16

Repairexpenses

0

5

8

3

0

20

Propertyrelated taxes

37

43

39

17

-

257

Other expenses

1

2

1

0

0

12

Total

95

110

91

-

-

-

-

36

-

34

-

-

-

565

Depreciation

79

107

84

62

63

50

50

43

88

52

51

19

18

772

Operating income (loss)
from real estate leasing

306

258

175

198

159

134

122

82

141

143

140

37

42

1,942

NOI from real estate leasing[Operating income (loss) fromreal estate leasing +Depreciation])

386

365

259

260

223

185

172

125

229

195

192

56

61

2,715

Number of days ofasset management

Operatingrevenuefromreal estateleasing

Operatingexpensesfromreal estateleasingNot
disclosed *Notdisclosed *Notdisclosed *Notdisclosed *

11
4

Not
disclosed *

18
13

Not
disclosed *Notdisclosed *Notdisclosed *178
96* Not disclosed, because consent has not been obtained from the lessee.

34

Appraisal Summary for the End of 5th Fiscal Period(Unit: million yen)
Acquisitiondate

Acquisition
priceBook value at
end of 5th
fiscal period

End of
4th fiscal period(End of Jul. 2018 (a)Appraisal
value

CR

End of
5th fiscal period(End of Jan. 2019) (b)Appraisal
value

*1

CR

*1

Change(b)-(a)Appraisalvalue

Main factors of change
CR

*1

CR

*1

Other

GLP/MFLP Ichikawa Shiohama (50%)

2016/0915,50015,204

16,7504.2%

17,250

4.1%

+500

-0.1

○

-

MFLP Kuki

2016/08

12,50012,04813,7004.7%

13,700

4.7%

+0

0

-

-

MFLP Yokohama Daikoku (50%)

2016/08

10,1009,808

10,500

4.6%

10,500

4.6%

+0

0

-

-

MFLP Yashio

2016/08

9,650

9,396

10,600

4.5%

10,900

4.4%

+300

-0.1

○

-

MFLP Atsugi

2016/08

7,810

7,552

8,680

4.6%

8,700

4.6%

+20

0

-

○

MFLP Funabashi Nishiura

2016/08

6,970

6,757

7,520

4.6%

7,680

4.5%

+160

-0.1

○

-

MFLP Kashiwa

2016/08

6,300

6,100

6,900

4.6%

6,900

4.6%

+0

0

-

-

MFLP Sakai (20%)

2016/08

4,500

4,333

4,910

4.7%

4,880

4.7%

-30

0

-

○

MFLP Komaki

2017/08

8,260

8,131

8,520

4.6%

8,530

4.6%

+10

0

-

○

MFLP Hino (15%)

2018/02

7,520

7,493

7,570

4.2%

7,570

4.2%

+0

0

-

-

MFLP Hiratsuka

2018/03

7,027

6,998

7,090

4.5%

7,090

4.5%

+0

0

-

-

MFLP Tsukuba (60%)

2018/12

5,268

5,376

-

-

6,000

4.9%

+0

0

-

-

MFIP Inzai (20%)

2016/08

2,180

2,123

2,440

4.8%

2,440

4.8%

+0

0

-

-

Total or Average as of the end of 5th fiscal
period-103,585

101,324

105,180

4.5%

112,140

4.5%

+960

0

-

-

Reference (As of March 15, 2019)*2

MFLP Hino (10%)

2019/02

5,013

5,013

-

-

5,040

4.2%

-

-

-

-

MFLP Tsukuba (40%)

2019/03

3,512

3,512

-

-

4,000

4.9%

-

-

-

-

MFLP Inazawa

2019/02

16,20016,200--16,300

4.6%

-

-

-

-

MFLP Atsugi II

2019/02

13,10013,100--13,200

4.3%

-

-

-

-

MFLP Fukuoka I

2019/02
2019/04(planned)

4,263
1,000

4,263
1,000

4,276
1,003

4.9%

-

-

-

-

MFIP Inzai (80%)

2019/02

10,04010,040--10,360*3

4.7%

-

-

-

-

Total or Average for 6th fiscal period(After acquisition of properties (to be)acquired)-

156,714

154,453--

166,320

4.5%

-

-

-

-

Amount of difference= Unrealized gain
11,866 million yen*1 CR = Capitalization rate based on direct capitalization method (NCF basis). The average indicates a weighted average based on the appraisal value.
*2 Book value at the end of 5th fiscal period as of March 15, 2019 indicates (planned) acquisition price; and appraisal value at the end of 5th fiscal period indicates appraisal value with November 30, 2018 as the date ofvalue.
*3 Concerning value increased (390 million yen) along with owning 100% of MFIP Inzai, the entire amount including that for the 20% already owned is added. The CR of the appraisal value for the entire property (100%) is
4.6%.

35

Initiatives for ESG– Environmental Principles and Initiatives for Environment/Society
Environmental policies of Mitsui Fudosan Group
Mitsui Fudosan Group seeks reduction of environmental load, diversified
collaboration/cooperation with various entities, improvement of peace of mind,
safety and comfort as well as securement of sustainability.
Cooperation
Cooperation

A wide range ofcollaboration/cooperation
with various entities Reduction of CO2(including supporting use of low-carbon
transportation) Aquatic conservation
 Reduction of harmful substances Resource saving and reduction of waste material

Loadreduction

Reduction ofenvironmentalload

Quality

improvement

 Co-existence with local communities
 Proactive action towards tenants and owners
 Collaboration/cooperation with design,
construction, energy, manufacturing firms, etc.
 Further collaboration/cooperation with local
communities, government, and research
institutes including universities

Improvement of  Improvement of peace of mind and safetypeace of mind  Conservation and utilization of naturaland safety andenvironment (conservation of biodiversity)
securement of  Conservation and utilization of landscape andsustainability
townscape Improvement of health and comfort

Initiatives for tenants and local communities
Utilizing the know-how of Mitsui Fudosan, the sponsor, the properties owned by
MFLP-REIT promote initiatives to offer healthy, pleasant and safe environment bygiving consideration to stakeholders such as occupying tenants, facility users,
surrounding environment and local communities.

Cafeteria, shops

Commuter shuttle

Implemented beautification
activities (cleaning)

Designated as a tsunami
evacuation building(MFLP Sakai)

Initiatives for reducing environmental load
MFLP-REIT has put forth efforts
on reducing CO2 emissions
through energy saving while
promoting efficient use of energy
at its portfolio assets byintroducing LED lights, installing
solar panels on the roof and such.

Solar panels

MFLP Inazawa

LED lights

MFLP Atsugi II

Eco-friendly green buildings
MFLP-REIT has a track record of acquiring CASBEE and DBJ
Green Building Certification for the following properties.
Furthermore, MFLP Sakai has received the Osaka Eco-friendly
Construction Award. As such, MFLP-REIT proactively
incorporates environmentally conscious green buildings.
Property nameEvaluation/Award history, etc.

GLP/MFLP Ichikawa Shiohama

CASBEE (Real estate) Rank S
CASBEE (New construction) Rank A

MFLP Kuki

CASBEE (New construction) Rank A

MFLP Yokohama Daikoku

DBJ Green Building Certification 5 Stars

MFLP Yashio

CASBEE (New construction) Rank A

MFLP Atsugi

CASBEE Kanagawa Rank A *DBJ Green Building Certification 4 Stars

MFLP Funabashi Nishiura

CASBEE (New construction) Rank A

MFLP Kashiwa

CASBEE (New construction) Rank A

MFLP Sakai

CASBEE (New construction) Rank S
FY2015 Osaka Eco-friendly Construction Award(Commerce, other category)

MFLP Komaki

CASBEE Aichi Rank A *MFLP Hiratsuka

CASBEE Kanagawa Rank A *MFLP Inazawa

CASBEE Aichi Rank A *MFLP Atsugi II

CASBEE Kanagawa Rank A *MFLP Fukuoka I

CASBEE (New construction) Rank A* CASBEE Kanagawa and Aichi is not certified by a third-party but an assessment based on self-reporting.

36

Initiatives for ESG– Initiatives for Governance with Consideration for Unitholders’ Interests
MFLP-REIT and the Asset Management Company are working to establish proper governance through the following measures in order to build a solid relationship oftrust that aligns interests of unitholders and interests of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

Rules concerning conflicts of interestin asset management
The acquisition and transfer of assets by MFLP-REIT from related partiesare decided by the Asset Management Company via a transparent
decision-making process.

*2

Asset management with emphasis placed onrelationship of trust with unitholders
Asset management fee structure
consistent with the interests of unitholders
The aim is to keep the interests of MFLP-REIT’s unitholders consistent with
the interests of the Asset Management Company.
Asset
management
fee I

Total assets × 0.1% (maximum)

Asset
management
fee II

Operating income (before deduction of asset management feesand depreciation) × 5.5% (maximum)

Asset
management
fee III

Pre-tax earnings (before deduction of asset management fees)
× Pre-tax EPU (before deduction of asset management fees)
× 0.001% (maximum)

Same-boat investment in MFLP-REIT by Mitsui Fudosan
MFLP-REIT receives 7.6% investment in capital from Mitsui Fudosan.
(As of March 15, 2019)
Receiving certain investment in capital leads to alignment of the interests of
MFLP-REIT’s unitholders and Mitsui Fudosan and asset management that
pursues mutually greater interests.

Timely and proper information disclosure andsecurement of transparency*1: The above chart shows the decision-making flow when a transaction involves a
related party, which requires the approval of MFLP-REIT’s Board of Directors
under Article 201-2 of the Act on Investment Trusts and Investment Corporations.
*2: If a transaction prescribed in Article 201-2 of the Act on Investment Trusts andInvestment Corporations falls under the criteria for insignificance, the approval of
MFLP-REIT’s Board of Directors shall be omitted.

MFLP-REIT strives to make timely and proper disclosure of informationnecessary for unitholders to make investment decisions. Upon disclosure,
MFLP-REIT promotes prompt and transparent information disclosure tosecure fairness and equality, and also promotes disclosure of not only
financial information but also non-financial information concerning ESG.

37

Status of Unitholders and Status of Interest-Bearing Debt
Status of unitholders at end of 5th fiscal period(end of January 2019)

Borrowings

Number of unitholders and number of investment units
by type of unitholder
Number ofunitholders% of total

Number ofinvestment units% of total

Individuals/Other

6,086

92.6%

21,474

8.2％

Financial
institutions

142

2.2％

154,788

58.9%

Other Japanese
corporations

175

2.7％

33,996

12.9%

Non-Japanese

149

2.3％

46,405

17.7％

Securities
companies

18

0.3％

6,111

2.3%

Total

6,570

100.0%

262,774

100.0%

Sumitomo Mitsui Trust
Bank, Limited

Mizuho Bank, Ltd.

% of
total

44,642

17.0％

Japan Trustee Services Bank, Ltd. (trust account)

35,753

13.6％

Mitsui Fudosan Co., Ltd.

28,900

11.0％

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

12,045

4.6％

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

6,482

2.5％

127,822

48.6%

Total

Amount(million yen)

3,000

3,000

Mizuho Trust & Banking
Co., Ltd.

Development Bank ofJapan Inc.
The Bank of Fukuoka, Ltd.
Nippon Life Insurance
Company
The Norinchukin Bank

Commitment lines

Sumitomo Mitsui
Trust Bank, Limited

Total short-termborrowings
Sumitomo Mitsui Banking
Corporation

Long-term borrowings

Number of investment
units

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

Sumitomo Mitsui
Banking Corporation

Mizuho Bank, Ltd.

MUFG Bank, Ltd.

Major unitholders

LenderShort-termborrowings

Lender(As of January 31, 2019)
Balance ofborrowings(million yen)00Contract
start date

Contract
deadline

Remarks

2016/8/2

2021/8/2

Unsecured
Nonguaranteed

2021/8/31

Unsecured
Nonguaranteed

2016/9/1

THE YAMAGUCHIBANK, Ltd.
Mitsui Sumitomo
Insurance Company,
LimitedShinkin Central Bank
Sumitomo Life Insurance
Company
Total long-termborrowings(As of January 31, 2019)
Amount(million
yen)
1,700

Interest rate

*1

Repayment
date *2

Borrowing
periodRemarks

2 months

UnsecuredNon-guaranteed

0.08318%

2019/2/4

2,000

0.2713%2022/9/1

6 years

1,500

0.4213%2026/9/1

10 years

800

0.24%

2022/3/15

4 years

2,000

0.3050%2023/9/1

7 years

1,500

0.3813%2025/9/1

9 years400

0.1425%2022/8/2

6 years

1,700

0.2113%2024/8/2

8 years

900

0.48949%2027/9/15

9.5 years

2,200

0.1826%2023/3/1

6.5 years

1,700

800

0.24%

2022/3/31

4 years

600

0.3237%2024/3/1

7.5 years

700

0.3425%2024/9/2

8 years300

0.2188%2022/3/15

4 years300

0.2613%2023/3/15

5 years

2,100

0.3125%2026/8/3

10 years

1,300

0.2169%2024/2/2

7.5 years

400

0.3563%2025/3/14

7 years

1,000

0.3125%2026/8/3

10 years

500

0.2575%2022/8/4

5 years500

0.2575%2022/8/4

5 years

600

0.2613%2023/3/15

5 years600

0.3319%2024/9/13

6.5 years

600

0.3563%2025/3/14

7 years

2,000

0.2375%2023/12/1

5 years

1,000

0.3975%2026/12/3

8 years

UnsecuredNon-guaranteed

26,300*1: All borrowings are with fixed interest rates.
*2: Repayment methods are all bullet repayments.

38

Mitsui Fudosan’s Major Development/Operation Track Record *Fiscal year of*1completion

FY2013

FY2014FY2016FY2017FY2018FY2020
FY2021
or after
TBD

Total floor area

Acquisition by MFLP-REIT(planned) *2

Properties defined in “Right of firstlook and preferential negotiationrights agreement” *MFLP Yokohama Daikoku

Yokohama, Kanagawa

100,530 m2● (50%)－

GLP/MFLP Ichikawa Shiohama

Ichikawa, Chiba

105,019 m2● (50%)－MFLP Yashio

Yashio, Saitama

40,728 m2●－

MFLP Kuki

Kuki, Saitama

73,153 m2●－

MFLP Sakai

Sakai, Osaka

125,127 m2● (20%)● (80%)MFLP Funabashi Nishiura

Funabashi, Chiba

30,947 m2●－

MFLP Atsugi

Aiko, Kanagawa

40,942 m2●－

MFIP Inzai

Inzai, Chiba

40,478 m2●－

MFLP Hino

Hino, Tokyo

205,200 m2● (25%)● (75%)MFLP Kashiwa

Kashiwa, Chiba

31,242 m2●－

MFLP Funabashi I

Funabashi, Chiba

197,746 m2－－

MFLP Fukuoka I

Kasuya, Fukuoka

32,199 m2●－

MFLP Hiratsuka

Hiratsuka, Kanagawa

33,061 m2●－

MFLP Komaki

Komaki, Aichi

40,597 m2●－

MFLP Inazawa

Inazawa, Aichi

72,883 m2●－

Ibaraki, Osaka

230,435 m2－●

Existing building:
37,027 m2
Annex building:
25,457 m2●－

MFLP Ibaraki
MFLP Tsukuba

Tsukubamirai, Ibaraki

MFLP Atsugi II

Isehara, Kanagawa

48,976 m2●－

131,272 m2－● (50%)

Approx. 80,900 m2－－

Propertydeveloped/operatedby Mitsui Fudosan

Presentation of list of
properties defined in“Right of first look andpreferential negotiationrights agreement”

Prioritized provision of
information upon sale

MFLP Prologis Park Kawagoe

Kawagoe, Saitama

MFIP Haneda

Ota, Tokyo

MFLP Hiroshima I

Hiroshima, Hiroshima

71,861 m2

－

●

NEW

MFLP Funabashi II

Funabashi, Chiba

228,884 m2

－

●

NEW

MFLP Kawaguchi I

Kawaguchi, Saitama

54,791 m2

－

●

NEW

MFLP Hiratsuka II

Hiratsuka, Kanagawa

50,027 m2

MFLP Yokohama Kohoku

Yokohama, Kanagawa

50,665 m2

●

NEW

－

●

NEW

B: Approx.16,000 m2－－

A: Approx.34,000 m2

MFLP Kawasaki I

Kawasaki, Kanagawa

MFLP Tachikawa Tachihi

Tachikawa, Tokyo

Approx. 67,000 m2－－

MFLP Osaka I

Osaka, Osaka

Approx. 48,300 m2－－

Tokyo Rail Gate EAST

Shinagawa, Tokyo

Approx. 161,400 m2－－

MFLP Funabashi III

Funabashi, Chiba

Approx. 270,000 m2－－(Tentative) Ichikawa Shiohama Logistics
Facility Development Project *3

Ichikawa, Chiba

Approx. 183,800 m2－－

Other data centers (2 properties)

－

－

－

－

Flow regarding provision ofright of first look information

For further details on *, please refer to “Major properties developed/operated by Mitsui Fudosan” and “Property defined in “Right of first look and preferential negotiation rights agreement”” on p. 40.
*1: In the case of MFLP Yokohama Daikoku, it is the fiscal year in which the property began to be under its operation. The fiscal year of completion of the property is fiscal 2009.
The fiscal year of completion of the existing building of MFLP Tsukuba is fiscal 2010.
*2: The percentage figure in parentheses is the percentage of quasi co-ownership interest in the portfolio asset. MFLP-REIT plans to acquire MFLP Fukuoka I (19%) on April 5, 2019.
*3: Based on materials released by Mitsui Fudosan on August 6, 2018.

Preferential negotiation
periodAcquisition of property
by MFLP-REIT

MFLP-REIT

FY2019Location

Mitsui Fudosan

FY2015

Propertydeveloped/operated

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Notes on Matters Stated in this Document＊Unless otherwise specified, figures indicated in whole number are rounded down to the nearest specified unit and figures with a decimal point are rounded to the nearest indicated unit.
＊Unless otherwise specified, descriptions are made based on the following.
[Major properties developed/operated by Mitsui Fudosan]
Descriptions are based on materials released on May 21, 2018 by Mitsui Fudosan. Uncompleted properties are those planned, and thus are subject to change without prior notice.
“32 facilities 480.0 billion yen 2,700,000 m2” includes properties under development or scheduled to be developed as of the date and their (planned) investment amounts. Properties scheduled to be developed include those targeted or planned by the
Mitsui Fudosan Group as of the date of this document, and are subject to change or cancellation. Furthermore, there are no details concerning the timing of completion of the aforementioned investments that had been finalized as of the date of thisdocument. Nor does MFLP-REIT guarantee or promise that the plans be materialized. “Tokyo Rail Gate EAST” is included in “32 facilities 480.0 billion yen 2,700,000 m2” in terms of the number of facilities and total floor area, but not in term of the amount.
Mitsui Fudosan has no plans to acquire the property as of the date of this document.
[Properties defined in “Right of first look and preferential negotiation rights agreement”]“Properties defined in ‘Right of first look and preferential negotiation rights agreement’” refers to properties on the list of right of first look and preferential negotiation properties pertaining to real estate subject to provision of information, presented basedon the right of first look and preferential negotiation rights agreement executed between the Asset Management Company and Mitsui Fudosan upon the Asset Management Company managing MFLP-REIT’s assets. “Real estate subject to provision of
information” refers to, among real estate, etc. held by Mitsui Fudosan or a real estate fund which accepted investment or monetary contribution of Mitsui Fudosan, those which are judged to have the possibility to be sold to MFLP-REIT at Mitsui Fudosan’s
discretion. The (number of) subject properties and ratio/total floor area indicate figures excluding the properties (to be) acquired in the 5th and 6th fiscal periods, after considering co-ownership interest (or quasi co-ownership interest).
[Four Roadmaps to Stable Growth and Trajectory of Growth][Steady Implementation of Four Roadmaps][Financial Highlights][Our Portfolio (After (planned) property acquisition in 6th fiscal period)]“LTV”
LTV = Balance of interest-bearing debt ÷ Total assets“Distribution per unit (DPU)“
Includes distribution in excess of earnings. (Number of investment units issued and outstanding: 262,774 units at the end of 5th fiscal period / 379,000 units at the end of 6th and 7th fiscal periods)“Market cap”
FP ended July 2018 (End of 4th FP): Closing price of the investment unit as of the end of the FP ended July 2018 (322,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended July 2018
(262,774 units)
FP ended January 2019 (End of 5th FP): Closing price of the investment unit as of the end of the FP ended January 2019 (345,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended January
2019 (262,774 units)
After the 2nd follow-on offering: Closing price of the investment unit in regular trading as of February 28, 2019 (329,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of February 28, 2019 (379,000 units)“Total floor area"
Figures based on the record on the register, rounding down to the nearest whole number.
“Appraisal value”
Appraisal value indicates figures corresponding to the quasi co-ownership interest ratio of each property. Appraisal values with January 31, 2019 (end of 5th FP) as the appraisal date are indicated for properties owned as of the end of 5th FP, andthose with November 30, 2018 as the appraisal date are indicated for properties (to be) acquired in 6th FP. For MFLP Hino and MFLP Tsukuba, the total of appraisal value of each quasi co-ownership acquired is indicated. As for MFIP Inzai, thevalue increased (with November 30, 2018 as the appraisal date) along with owning 100% interest is added.
However, such is not included in the appraisal value as of the end of 5th FP.
“Adjusted forecast NOI yield”
Figure arrived at when the NOI assumed in the earnings forecast for the 6th and 7th fiscal periods, less the amount of fixed asset tax and city planning tax not expensed in the said earnings forecast (MFLP Hino 10%・Tsukuba 40%・Inazawa・Atsugi
II・Fukuoka I・Inzai 80%), while being adjusted for the number of days of asset management to full-year operation, is divided by (planned) acquisition price. Subtotal (average) and total (average) for each category indicate the weighted averagebased on (planned) acquisition price.
“NOI yield”
Ratio of net operating income under direct capitalization method stated in real estate appraisal report (“Appraisal NOI”) to (planned) acquisition price. “Average NOI yield” and subtotal (average) and total (average) for each category indicate theweighted average based on (planned) acquisition price. As for MFLP Hino and MFLP Tsukuba, figures obtained by dividing the sum total of appraisal NOI of each co-ownership acquired by the total (planned) acquisition price are indicated.
“Appraisal NOI yield”
Appraisal NOI as a percentage of appraisal value. “Average appraisal NOI yield” and subtotal (average) and total (average) for each category indicate the weighted average based on the appraisal value.
“Building age”
Number of years from the date of construction of the main building of a property (to be) acquired in the register to March 15, 2019. “Average building age” and subtotal (average) and total (average) indicate the weighted average based on the total
floor area, considering the quasi co-ownership interest of each property.
“Top 5 property ratio”
The sum of the acquisition prices of the five largest properties as a percentage of the total acquisition price.
“Top 5 tenant ratio (logistics facilities only)”
The total leased area of top five tenants as a percentage of the total leased area.
“Acquisition capacity”
Amount of debt that can be additionally financed supposing that LTV is raised to 50%. The amount indicated is rounded to the nearest billion yen.
“NAV per unit”
End of FP ended July 2018 (End of 4th FP): (Net assets as of the end of FP ended July 2018 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended July 2018) / Number of investment units issued andoutstanding (262,774 units)
End of FP ended January 2019 (End of 5th FP): (Net assets as of the end of FP ended January 2019 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended January 2019) / Number of investment units
issued and outstanding (262,774 units)
After the 2nd follow-on offering and after (planned) property acquisition in 6th fiscal period: (NAV as of the end of FP ended January 2019 (End of 5th FP) + Unrealized gain on appraisal basis of properties (to be) acquired in 6th FP(※) + Total issue
amount of the 2nd follow-on offering (35,295,511,680 yen) / Number of MFLP-REIT’s investment units issued and outstanding after the 2nd follow-on offering (379,000 units)※ Unrealized gain on appraisal basis of properties (to be) acquired in 6th FP: (total) Appraisal value of properties (to be) acquired in 6th FP (*)– (total) Acquisition price of properties (to be) acquired in 6th FP* Concerning value increased along with owning 100% of MFIP Inzai, the entire amount including that for the 20% already owned is added.
“Unrealized gain”
A period-end book value is indicated for properties held by MFLP-REIT as of the end of 5th FP, and a figure obtained by subtracting the total of acquisition prices from appraisal value is indicated for properties (to be) acquired in the 6th FP.
“Occupancy rate”
Leased area as a percentage of leasable area. Based on concluded agreements as of March 15, 2019.

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Notes on Matters Stated in this Document[Calculation of average lease term]"Average lease term" is calculated using the weighted average of the lease terms stated in concluded lease agreements as of November 30, 2018 with leased areas. Concerning the subject lease agreements, when a newlease agreement ("re-contract") starting on the day immediately following the expiration date of the respective lease agreement is concluded with the same lessee, lease term is deemed to be from the start of the initial leaseagreement to the expiration date of the re-contract, and used in the calculation as such.
[Method of calculation of cash distribution based on FFO]
(1) Distribution of earnings is determined based on profit (net income) for the applicable operating period.
(2) FFO for the applicable operating period is calculated by adding depreciation to profit (net income) (excluding gain or loss on sale of real estate, etc.) for the applicable operating period.
(3) The amount distributable including distribution in excess of earnings is calculated based on a threshold of an amount equivalent to 70% of FFO for the applicable operating period.
(4) The amount distributable in excess of earnings is calculated by deducting the amount of distribution of earnings (excluding gain or loss on sale of real estate, etc.) from the amount distributable including distribution inexcess of earnings.
(5) The amount of continuous distribution in excess of earnings is determined based on a comprehensive judgment on the basis of the amount distributable in excess of earnings.
(6) The distribution in excess of earnings determined in 5. above is to be continuously made each fiscal period in principle, in addition to the distribution of earnings determined in 1. above.
[About analysis of Japan's logistics facilities stock](1) The "Analysis of Japan's logistics facilities stock" graph is of estimates by CBRE K.K. based on the Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism's "Building Starts" and the Ministry ofInternal Affairs and Communications' "Summary Report on Prices, etc. of Fixed Assets."(2) In the "Analysis of Japan's logistics facilities stock" graph, "Leading-edge logistics facilities" is the figure of each year's sum total of the gross floor area of leading-edge logistics facilities (refers to rental logistics facilities
that have gross floor area of at least 10,000 m2 and, in principle, ceiling height of at least 5.5 m, floor load capacity of at least 1.5 tons/m2 and column spacing of at least 10 m).
(3) In the "Analysis of Japan's logistics facilities stock" graph, "Estimate for logistics facilities 40 years old or older" is the figure of each year's overall stock estimate (as covered by note 5; the same shall apply hereinafter)
minus the sum total of the floor area of which construction was started within the past 40 years.
(4) "Estimate for logistics facilities less than 40 years old" is the figure of the overall stock estimate minus the floor area of "Estimate for logistics facilities 40 years old or older" and "Leading-edge logistics facilities."(5) The overall stock estimate is the sum total of "Estimate for logistics facilities 40 years old or older," "Estimate for logistics facilities less than 40 years old" and "Leading-edge logistics facilities."(6) In the "Analysis of Japan's logistics facilities stock" graph, "Share of leading-edge logistics facilities" is each fiscal year's "Leading-edge logistics facilities" expressed as a percentage of the overall stock estimate (grossfloor area basis).
(7) In the "Analysis of Japan's logistics facilities stock" graph, "Share of logistics facilities 40 years old or older" is each fiscal year's "Estimate for logistics facilities 40 years old or older" expressed as a percentage of theoverall stock estimate (gross floor area basis).
(8) "Gross floor area" is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed to be completed after one year has
elapsed from construction start. Accordingly, gross floor area may not match the floor area on the building confirmation certificate, construction completion drawing or register.

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