October 14, 2022

For Immediate Release

Real Estate Investment Trust Securities Issuer
1-6-5 Marunouchi, Chiyoda-ku, Tokyo
Mitsubishi Estate Logistics REIT Investment Corporation
Representative: Ken Takanashi, Executive Director(Securities Code: 3481)
Asset Management Company
Mitsubishi Jisho Investment Advisors, Inc.
Representative: Tetsuya Masuda, President & CEO
Contact:
Ken Takanashi, Executive Officer, General Manager,
Logistics REIT Management Department
TEL: +81-3-3218-0030

Notice Concerning Revisions to Forecast for the Fiscal Period Ending February 28, 2023 (13th Fiscal Period),and Forecast for the Fiscal Period Ending August 31, 2023 (14th Fiscal Period)
Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) announces today revisions to its forecast for the fiscal
period ending February 28, 2023 (September 1, 2022 to February 28, 2023) as noted in “Summary of Financial Results
for the Fiscal Period Ended February 28, 2022 (REIT)” announced on April 15, 2022. In addition, MEL announces today
its new forecast for the fiscal period ending August 31, 2023 (March 1, 2023 to August 31, 2023). The revisions andcalculations are described below.
1.

Reasons for Revision and Announcement
A resolution was passed at MEL’s board of directors meeting held today approving the issuance of new investment
units to appropriate the portion of funds for acquiring the Eight New Properties (as defined in “Assets Under
Management” in Attachment 1, “Forecast Assumptions for the Fiscal Periods Ending February 28, 2023 and August 31,
2023”). The forecast of operating results for the fiscal period ending February 28, 2023, announced on April 15, 2022,
has been revised due to the changes in the assumptions underlying the calculation of estimated operating revenues,
which are expected to change by 10% or more.
In addition, MEL announces today a new forecast of operating results for the fiscal period ending August 31, 2023,
based on the assumptions described below.

2.

Revised Forecast for the Fiscal Period Ending February 28, 2023, and Announcement of Forecast for the Fiscal PeriodEnding August 31, 2023
(1) Details of the Revised Forecast for the Fiscal Period Ending February 28, 2023 (13th fiscal period) (September 1,
2022 to February 28, 2023)

Previously
Announced
Forecast (A)Revised
Forecast (B)Net Change(C)((B)-(A))

Operating
Revenues(Millions ofyen)Operating
Income(Millions ofyen)

Ordinary
Income(Millions of
yen)

Net
Distributions
Distributions
Incomeper Unit
SCD
per Unit(Millions (including SCD)
per Unit(excluding(Yen)of yen)(Yen)SCD) (Yen)

6,224

3,279

3,101

3,100

7,628

6,890

738

7,099

3,826

3,399

3,398

7,628

6,749

879

875

547

298

298

-

(141)

141

Note: This press release has been prepared for the purpose of announcing to the public certain matters relating to the revisions to the forecast
for the fiscal period ending February 28, 2023 (13th Fiscal Period), and forecast for the fiscal period ending August 31, 2023 (14th Fiscal
Period), and has not been prepared for the purpose of soliciting investment. Investors are asked to ensure that they read the prospectus
for the issuance of new investment units, as well as any amendments thereto, prepared by MEL before they invest and that they makedecisions on investment at their own discretion.

1

Rate of
Change(C)/(A)

14.1%

16.7%

9.6%

9.6%

-%

(2.0)%

19.1%

Note: SCD stands for the “surplus cash distributions”. The same shall apply hereinafter.

(2) Details of the Forecast for the Fiscal Period Ending August 31, 2023 (14th fiscal period) (March 1, 2023 to August
31, 2023)
Operating
Revenues(Millions ofyen)Operating
Income(Millions ofyen)

Ordinary
Income(Millions of
yen)

Net
Income(Millionsof yen)Distributions
per Unit(includingSCD) (Yen)Distributions
SCD
per Unit
per Unit(excluding(Yen)SCD) (Yen)

Forecast for
the Fiscal
PeriodEnding
7,455
3,751
3,495
3,494
7,832
6,939
893
August 31,
2023(14th fiscal
period)(Reference)
Fiscal period ending February 28, 2023 : Expected number of investment units outstanding at the end of the period: 503,485 units;
Expected Net income per unit: 6,749 yen
Fiscal period ending August 31, 2023 : Expected number of investment units outstanding at the end of the period: 503,485 units;
Expected Net income per unit: 6,939 yen

Notes:
1. The forecast information is calculated based on the assumptions described in Attachment 1, “Forecast Assumptions for the Fiscal Periods Ending
February 28, 2023 and August 31, 2023”. Actual operating revenues, operating income, ordinary income, net income, distributions per unit
(including surplus cash distributions), distributions per unit (excluding surplus cash distributions) and surplus cash distributions per unit may vary
due to acquisitions or dispositions of properties etc., changes in rent revenues attributable to tenant replacements etc., changes in the property
management environment due to unexpected repairs etc., changes in interest rates, the actual number of new units issued and the issue price ofsuch units, or the issuance of additional investment units etc. These forecasts should not be deemed a commitment or guarantee of the amountof cash distributions and surplus cash distributions.
2. These forecasts may be revised if a substantial variation from the current forecast is anticipated.
3. The figures are rounded down to the nearest million yen or yen, and ratios are rounded to the nearest tenth.

For more information about Mitsubishi Estate Logistics REIT Investment Corporation, please visit:https://mel-reit.co.jp/en/

Note: This press release has been prepared for the purpose of announcing to the public certain matters relating to the revisions to the forecast
for the fiscal period ending February 28, 2023 (13th Fiscal Period), and forecast for the fiscal period ending August 31, 2023 (14th Fiscal
Period), and has not been prepared for the purpose of soliciting investment. Investors are asked to ensure that they read the prospectus
for the issuance of new investment units, as well as any amendments thereto, prepared by MEL before they invest and that they makedecisions on investment at their own discretion.

2

<Attachment 1>
Forecast Assumptions for the Fiscal Periods Ending February 28, 2023 and August 31, 2023
Items

Accounting Period

Assets Under
Management


Operating RevenuesOperating ExpensesAssumptions
Fiscal period ending February 28, 2023 (13th fiscal period): From September 1, 2022
to February 28, 2023 (181 days)
Fiscal period ending August 31, 2023 (14th fiscal period): From March 1, 2023 toAugust 31, 2023 (184 days)
It is assumed that MEL will acquire the real estate trust beneficiary interests in eight
new properties (the “Eight New Properties”) on October 25 and December 1, 2022, in
addition to its 24 properties (the “Current Properties”) it holds as of today.
For details about the Eight New Properties, please refer to the press release “NoticeConcerning Acquisition of Domestic Real Estate Trust Beneficiary Interests and Lease
Contracts with New Tenants” dated today. It is also assumed that there will be nochange in the operational status of the properties held after the scheduledacquisitions on October 25 and December 1, 2022 up until August 31, 2023. Changes
include acquisitions of new properties and dispositions of existing properties.
<Eight New Properties>• To be acquired on October 25, 2022: LOGiSTA･Logicross Ibaraki Saito (A) (45%co-ownership interest), LOGiSTA ･ Logicross Ibaraki Saito (B) (45% coownership interest), Logicross Yokohama Kohoku, MJ Logipark Inzai 1, MJ
Logipark Takatsuki 1, MJ Logipark Higashi Osaka 1, and MJ Industrial Park
Kawanishi (Land) (the “Assets to be Acquired in October”)• To be acquired on December 1, 2022: MJ Logipark Funabashi 2 (the “Asset to
be Acquired in December”)
The actual results may change due to the acquisition of new properties in addition to
the Eight New Properties or the disposition of existing properties, etc.
Operating rental revenues take into account factors such as market trends and thecompetitiveness, etc. of each property based on information provided by the current
owner or the current beneficial owner etc. (the “Current Beneficiary, Etc.”) of the Eight
New Properties and information about the Current Properties held by Mitsubishi Jisho
Investment Advisors, Inc. (the “Asset Management Company”)
It is assumed that tenants will not be delinquent on or withhold rental payments.
It is assumed that there is no gain or loss on sale of real estate.
Main items regarding operating expenses are as follows:(Millions of yen)
Fiscal Period
Fiscal PeriodEnding FebruaryEnding August 31,
28, 2023
2023
Total Operating Rental Expenses
2,419
2,775
Operational Management Fee
302
332
Utilities Cost
242
240
Repair and Maintenance
106118
Property Taxes
475
717
Depreciation
1,244
1,318
Total General and Administrative Expenses
853
928
Asset Management Fee
626
698
Sponsor Support Fee
122131
Of operating rental expenses, which is the main operating expense, expenses except
depreciation are calculated by taking into account various factors based on historical
data provided by the Current Beneficiary, Etc., in the case of the Eight New Properties,
and historical data after acquisition in the case of the Current Properties.
In general, property taxes and city planning taxes are calculated on a pro-rata basis of
the calendar year and settled between the seller and the buyer at the time ofNote: This press release has been prepared for the purpose of announcing to the public certain matters relating to the revisions to the forecast
for the fiscal period ending February 28, 2023 (13th Fiscal Period), and forecast for the fiscal period ending August 31, 2023 (14th Fiscal
Period), and has not been prepared for the purpose of soliciting investment. Investors are asked to ensure that they read the prospectus
for the issuance of new investment units, as well as any amendments thereto, prepared by MEL before they invest and that they makedecisions on investment at their own discretion.

3




Non-operating
Expenses









Interest-bearing Debt










acquisition. However, in the case of the transactions conducted by MEL, the amounts
equivalent to the relevant settlement amounts are included in the purchase price, andaccordingly, with respect to the Eight New Properties and the properties acquired on
March 1, 2022, the property taxes and city planning taxes for the fiscal year 2022 will
not be expensed during the fiscal period ending February 28, 2023 in the case of
settlement at time of property acquisition. Property taxes and city planning taxes for
the Eight New Properties and the properties acquired on March 1, 2022 will be
expensed starting from the fiscal period ending August 31, 2023.
For building repair expenses, the amount assumed to be necessary for each property
is based on the mid-to long-term repair and maintenance plans prepared by the AssetManagement Company. However, due to the possibility that emergency repair
expenses may be incurred as a result of unexpected damage to the building, given thefact that the amount of the repair expenses generally varies greatly from year to year,and given the fact that repair expenses are not regularly incurred, it is possible thatthe amount of the repair expenses for each fiscal period may differ substantially fromthe anticipated amount.
For the fiscal period ending February 28, 2023, it is assumed that 427 million yen will
be incurred as non-operating expenses, which includes 233 million yen for interest
expenses and other debt-related costs and 193 million yen in relation to the offeringsof the new investment units.
For the fiscal period ending August 31, 2023, it is assumed that 257 million yen will be
incurred as non-operating expenses, in which 257 million yen will be used for interest
expenses and other debt-related costs.
The balance of MEL’s interest-bearing debt on an accounting basis as of today is
82,074 million yen.
It is assumed that on October 25, 2022, MEL will obtain a loan of up to 19,900 million
yen and allocate a portion of such funds for acquiring the Assets to be Acquired in
October, and on December 1, 2022, MEL will obtain a loan of up to 5,000 million yen
and allocate a portion of such funds for acquiring the Asset to be Acquired in
December.
It is assumed that MEL will obtain a third-party allotment loan of 1,100 million yen
included the loans to be obtained on October 25, 2022 and allocate a portion of suchfunds to acquire the Assets to be Acquired in October, which it plans to repay in fullusing the proceeds from the third-party allotment or cash reserves during the fiscal
period ending February 28, 2023.
It is assumed that MEL will receive a consumption tax refund for the fiscal period
ended August 31, 2022 during the fiscal period ending February 28, 2023, which will
be used to repay in full 2,000 million yen from a consumption tax loan obtained on
March 1, 2022 during the fiscal period ending February 28, 2023.
It is assumed that MEL will receive a consumption tax refund for the fiscal period
ending February 28, 2023 during the fiscal period ending August 31, 2023, which will
be used to repay in full 1,800 million yen from a consumption tax loan to be obtainedon October 25, 2022 during the fiscal period ending August 31, 2023.
It is assumed that 700 million yen from a short-term loan due on March 1, 2023 will
be refinanced in full.
It is assumed that 430 million yen from a short-term loan due on September 14, 2023
will be repaid in full using cash reserves during the fiscal period ending February 28,2023.
It is assumed that 2,880 million yen from a short-term loan due on September 14, 2023
will be refinanced in full during the fiscal period ending February 28, 2023.
As a result, the total expected amount of interest-bearing debt at the end of the fiscal
periods ending February 28, 2023 and August 31, 2023 is estimated to be 103,444
million yen and 101,644 million yen, respectively.
LTV at the end of the fiscal periods ending February 28, 2023 and August 31, 2023 isNote: This press release has been prepared for the purpose of announcing to the public certain matters relating to the revisions to the forecast
for the fiscal period ending February 28, 2023 (13th Fiscal Period), and forecast for the fiscal period ending August 31, 2023 (14th Fiscal
Period), and has not been prepared for the purpose of soliciting investment. Investors are asked to ensure that they read the prospectus
for the issuance of new investment units, as well as any amendments thereto, prepared by MEL before they invest and that they makedecisions on investment at their own discretion.

4






Investment Units
Distributions Per Unit
(excluding surplus
cash distributions)Surplus CashDistributions Per Unit

estimated to be 37.7% and 37.3%, respectively. For LTV calculation, please refer to thefollowing formula. The ratios are rounded to the nearest tenth:
LTV (%) = interest-bearing debt/total assets ×100 (%)
However, the total expected amount of interest-bearing debt and the actual LTV may
differ considerably from this assumption, depending on the final number ofinvestment units to be issued and the final issue amount.
It is assumed that, in addition to the 449,935 investment units that are issued andoutstanding as of today, all of the 53,550 investment units to be newly issued, which
will comprise 51,000 investment units to be issued through a primary offering basedon a resolution at MEL’s board of directors meeting held today and 2,550 investment
units (maximum) through a third-party allotment (the “Issuance of New Investment
Units”), will be issued.
In addition to the above, it is assumed that there will be no change to the number ofinvestment units through new issuance of investment units by the end of the fiscal
period ending August 31, 2023 or by other means.
Distributions per unit (excluding surplus cash distributions) and surplus cash
distributions per unit for the fiscal periods ending February 28, 2023 and August 31,
2023 are calculated based on 503,485 investment units, which is the total number ofinvestment units expected to be issued and outstanding at the end of the fiscal
periods ending February 28, 2023 and August 31, 2023, including 53,550 investment
units, which is the maximum number of the investment through the Issuance of New
Investment Units.
Distributions per unit (excluding surplus cash distributions) are calculated based on
the assumption that the distributions will be distributed in accordance with the
distribution policy of the Articles of Incorporation of MEL.
Distributions per unit (excluding surplus cash distributions) may change due to various
factors including any additional acquisitions or dispositions of properties, changes inrent revenues attributable to tenant replacements, changes in the property
management environment including unexpected repair etc.
MEL may implement cash distributions in excess of the distributable amount tounitholders based on the financial statements related to cash distribution approved
under the Act on Investment Trusts and Investment Corporations (Act No. 198 of June4, 1951, as amended) if the board of directors of MEL deems such distribution to beappropriate (1) in light of the economic environment, real estate market, leasing
market or other trends; (2) when the amount of income fails to meet the amountequivalent to 90% of distributable income; (3) when the distribution amount fails tomeet the requirements for the Special Provisions for Taxation on Investment
Corporations; or (4) in other ways to maximize the interests of unitholders. When MEL
implements cash distributions in excess of the distributable amount, the distribution
is limited to the total amount of income for the relevant operating period and theamount set forth under laws and ordinances (including the rules of the Investment
Trusts Association, Japan, etc.)
Currently, MEL intends to target a level of surplus cash distributions on an ongoingbasis at an amount equivalent to approximately 30% of the depreciation expense forthe relevant fiscal period. Furthermore, to maintain the stability of MEL’s distributions
per unit in the event that the amount of distributions per unit temporarily decreases
due to a series of financing activities such as an issuance of new investment units orlarge-scale repair and maintenance, MEL may make distributions as one-time surplus
cash distributions. However, MEL may decide not to make any surplus cash
distributions in a fiscal period based on a consideration of factors such as the
economic environment or trends in the real estate market and the leasing market, thestatus of the held properties, and MEL’s financial condition.
In addition, in the event that MEL needs to allocate its cash to emergency capital
expenditures for unexpected damages on MEL’s assets, etc., surplus cash distributions

Note: This press release has been prepared for the purpose of announcing to the public certain matters relating to the revisions to the forecast
for the fiscal period ending February 28, 2023 (13th Fiscal Period), and forecast for the fiscal period ending August 31, 2023 (14th Fiscal
Period), and has not been prepared for the purpose of soliciting investment. Investors are asked to ensure that they read the prospectus
for the issuance of new investment units, as well as any amendments thereto, prepared by MEL before they invest and that they makedecisions on investment at their own discretion.

5






Others

per unit may be reduced. In order to continue stable financial management, MEL does
not plan to pay surplus cash distributions where such payment would cause theAppraisal LTV (Note), as defined below, to exceed 60%.
(Note) Appraisal LTV (%) = A/B (%)
A = Total interest-bearing liabilities on the balance sheet for the relevant fiscal period(excluding consumption tax loan) + Reversal from security deposit reserves(excluding cases where security deposits are refunded according to leasing
agreements with tenants)
B = Total assets on the balance sheet for the relevant fiscal period - Book value after
depreciation of real estate held in the relevant fiscal period + Total appraisal valueof real estate held in the relevant fiscal period - Total cash distributions to be paidin the following operating period - Total surplus cash distributions to be paid in thefollowing operating period.
Surplus cash distributions per unit are calculated based on the assumption that the
cash distributions will be distributed in accordance with the fund distribution policy of
the Articles of Incorporation of MEL. For the fiscal period ending February 28, 2023,
the amount of distributions per unit (excluding surplus cash distributions) is expected
to temporarily decrease due to a dilution in investment units caused by the issuanceof new investment units. It is assumed that surplus cash distributions will be
distributed on a one-time basis, with which a total amount to be distributed will beequivalent to 35.6% of depreciation of the period along with ongoing surplus cash
distributions. For the fiscal period ending August 31, 2023, the amount of distributions
per unit (excluding surplus cash distributions) is expected to temporarily decrease due
to a temporary decline in operating rental revenue and a temporary increase inoperating rental expenses (mainly utilities expenses). It is assumed that surplus cash
distributions will be distributed on a one-time basis, with which a total amount to be
distributed will be equivalent to 34.1% of depreciation of the period along withongoing surplus cash distributions. Therefore, it is assumed that surplus cash
distributions of 442 million yen and 449 million yen will be distributed for the fiscal
periods ending February 28, 2023 and ending August 31, 2023, respectively. These areinvestment refunds categorized as a distribution from unitholders’ capital for tax
purposes and there are no refunds from the distribution of the allowance fortemporary difference adjustments.
The amount of depreciation expenses may change depending on the amount of total
assets under management, ancillary costs, capital expenditure, the allocation methodof purchase price for each asset and depreciable life, etc. Surplus cash distributions,which will be based on the amount of depreciation expenses, may change accordingly.
It is assumed that no revision that will have an impact on the forecast information
above will be made with regard to the laws and regulations, tax system, accounting
standards, listing rules of the Tokyo Stock Exchange and rules of the Investment Trusts
Association, Japan, etc.
It is assumed that no unexpected material change will arise in overall economic trends
and real estate market conditions, etc.

Note: This press release has been prepared for the purpose of announcing to the public certain matters relating to the revisions to the forecast
for the fiscal period ending February 28, 2023 (13th Fiscal Period), and forecast for the fiscal period ending August 31, 2023 (14th Fiscal
Period), and has not been prepared for the purpose of soliciting investment. Investors are asked to ensure that they read the prospectus
for the issuance of new investment units, as well as any amendments thereto, prepared by MEL before they invest and that they makedecisions on investment at their own discretion.

6

<Attachment 2>(Note 1) “Tax-stabilized DPU” is an estimated value of distributions per unit (“DPU”) (including surplus cash
distributions) calculated by adjusting an estimated amount of DPU as needed to reflect temporal fluctuations
in expenses resulting from accounting treatment of taxes and public dues (property taxes and city planningtaxes) in connection with acquisition of the assets. “Tax-stabilized DPU” is neither an indicator specified inaccordance with accounting standards generally accepted as fair and appropriate, nor audited by anaccounting auditor. Such estimated value shall not be considered as an alternative indicator to other indicatorsin accordance with accounting standards generally accepted as fair and appropriate. In addition, “TaxStabilized DPU” is a value estimated by MEL as of today, and does not guarantee any payment of distributionsin the future or amount thereof in any sense.
(Note 2) “Pre-Offering Tax-stabilized DPU (Previous Forecast for fiscal period 2023/2 (13th fiscal period))” is calculated
based on “Notice Concerning Revisions to Forecast for the Fiscal Period Ending August 31, 2022, and Forecast
for the Fiscal Period Ending February 28, 2023” announced February 7, 2022, to reflect temporal fluctuations
in expenses resulting from the accounting treatment of taxes and public dues (property taxes and city planningtaxes) in relation to the properties acquired on March 1, 2022 (Logicross Atsugi II and LOGIPORT Kawasaki Bay(45% co-ownership interest)). This tax-stabilized distributions per unit figure has been prepared based uponand by applying the assumption that MEL would expense in the fiscal period ending February 28, 2023 (13thfiscal period), rather than capitalize, a six-month portion of annual property-related taxes in relation to theacquisition of the assets, and that expensing of such property-related taxes would lead to an increase inproperty-related taxes of 123 million yen and a decrease in asset management fees of 16 million yen from thereduction in operating income from property leasing and net income-based asset management fees
corresponding to the increase in property-related taxes.
(Note 3) “Post-Offering Tax-stabilized DPU (Based on Current Forecast for fiscal period 2023/8 (14th fiscal period))”refers to the “2. Revised Forecast for the Fiscal Period Ending February 28, 2023, and Announcement of
Forecast for the Fiscal Period Ending August 31, 2023” as well as the forecast DPU (including surplus cash
Note: This press release has been prepared for the purpose of announcing to the public certain matters relating to the revisions to the forecast
for the fiscal period ending February 28, 2023 (13th Fiscal Period), and forecast for the fiscal period ending August 31, 2023 (14th Fiscal
Period), and has not been prepared for the purpose of soliciting investment. Investors are asked to ensure that they read the prospectus
for the issuance of new investment units, as well as any amendments thereto, prepared by MEL before they invest and that they makedecisions on investment at their own discretion.

7

distributions) for the fiscal period ending August 31, 2023 (14th fiscal period) disclosed in the Financial Results“Summary of Financial Results for the Fiscal Period Ended August 31, 2022 (REIT)” announced today as there
is no need to assume adjustment of temporary changes in expenses resulting from the accounting treatmentof taxes and public dues (property taxes and city planning taxes) in relation to the acquisition of the assets.

Note: This press release has been prepared for the purpose of announcing to the public certain matters relating to the revisions to the forecast
for the fiscal period ending February 28, 2023 (13th Fiscal Period), and forecast for the fiscal period ending August 31, 2023 (14th Fiscal
Period), and has not been prepared for the purpose of soliciting investment. Investors are asked to ensure that they read the prospectus
for the issuance of new investment units, as well as any amendments thereto, prepared by MEL before they invest and that they makedecisions on investment at their own discretion.

8