Summary of Financial Results for the Fiscal Period Ended August 31, 2021 (REIT)
Name of Issuer:
Stock Exchange Listing:

Mitsubishi Estate Logistics REIT
Investment Corporation (“MEL”)
Tokyo Stock Exchange

Securities Code:3481

Website:https://mel-reit.co.jp/en/

Representative:

Ken Takanashi, Executive Director

Asset Management Company:
Representative:
Inquiries:

Mitsubishi Jisho Investment Advisors, Inc.
Haruhiko Araki, President & CEO
Ken Takanashi, Director, General Manager,
Logistics REIT Management Department
Tel. +81-3-3218-0030

Scheduled Date of Filing of Securities Report:
Scheduled Date of Commencement of Distributions Payments:

Nov. 29, 2021
Nov. 19, 2021

Supplementary Materials for Financial Results:
Investors and Analysts Meeting:

Yes
Yes

October 15, 2021

(Values are rounded down to the nearest million yen)
1. Financial Results for the Fiscal Period Ended August 31, 2021 (10th Fiscal Period) (from Mar. 1, 2021 to Aug. 31, 2021)(1) Operating Results(Percentages indicate change from the previous period)

Operating revenues
Operating income
Ordinary income
Net income% Millions of yen% Millions of yen% Millions of yen%
Fiscal period ended Millions of yen
Aug. 31, 2021
4,953
17.8
2,555
15.9
2,382
14.9
2,381
14.9
Feb. 28, 2021
4,203
25.7
2,204
27.4
2,074
25.3
2,073
25.3

Ratio of ordinary income Ratio of ordinary income
to total assets
to operating revenues
Fiscal period ended
Yen
%
%
%
Aug. 31, 2021
6,108
2.2
1.4
48.1
Feb. 28, 2021
5,958
2.3
1.5
49.3
Note: MEL issued new investment units of 40,500 units and 1,922 units on Sept. 1, 2021 and Sept. 30, 2021, respectively. For the
fiscal period ended Feb. 28, 2021, net income per unit is calculated by dividing net income by the day-weighted average numberof investment units outstanding during the period 347,929 units. In addition, MEL issued new investment units of 41,000 units
and 1,898 units on Mar. 5, 2021 and Apr. 6, 2021, respectively. For the fiscal period ended Aug. 31, 2021, net income per unit iscalculated by dividing net income by the day-weighted average number of investment units outstanding during the period
389,872 units.
Net income per unit

(2) Distributions

Return on unitholders’EquityDistributions Total amount ofDistributions Total amount
per unit
Ratio ofdistributions Surplus cash Total amount of per unit of distributions
Payout(excluding(including
distributions(including(excluding distributions surplus cash
ratio
distributions surplus cash surplus cash
surplus cash surplus cash
per unit
to net assets
distributions) distributions)distributions) distributions)
Yen Millions of yen
Yen Millions of yen
Yen Millions of yen
Fiscal period ended%%
Aug. 31, 2021
6,089
2,381
675
264
6,764
2,645 100.0
2.1
5,953
2,073
666
231
6,619
2,304
Feb. 28, 2021
100.0
2.2
Notes:
1. Total amount of surplus cash distributions are the refund of investment, which falls under the distributions through reduction inunitholders’ capital under taxation law.
2. The ratio of net asset value attributable to a reduction in unitholders’ paid-in capital for the fiscal periods ended Feb. 28, 2021 and Aug.
31, 2021, is 0.003 and 0.003, respectively. The payment of surplus cash distributions is deemed a return of capital. This calculation
methodology is pursuant to Article 23, Paragraph 1, Item 4 of the Act on Special Measures Concerning Taxation.
3. With the issuance of new investment units conducted in the fiscal period ended Feb. 28, 2021 and Aug. 31, 2021, the payout ratio
is calculated using the following formula.
Payout ratio = Total amount of distributions (excluding surplus cash distributions)/Net income ×100

(3) Financial Position
Total assets
Fiscal period ended
Aug. 31, 2021
Feb. 28, 2021

Net assets

Millions of yen
181,206
151,467

Millions of yen
116,410
99,586

Cash flows fromoperating activities
Millions of yen
4,252
1,827

Cash flows frominvesting activities
Millions of yen(28,171)(28,280)

Unitholders’ equity tototal assets

Net assets per unit

%
64.2
65.7

Yen
297,621285,972(4) Cash Flows
Fiscal period ended
Aug. 31, 2021
Feb. 28, 2021

Cash flows from
Cash and cash equivalents
financing activities
Millions of yen
Millions of yen
11,64326,0909,472
28,0302. Forecasts for the Fiscal Periods Ending Feb. 28, 2022 (from Sept. 1, 2021 to Feb. 28, 2022) and Aug. 31, 2022 (fromMar. 1, 2022 to Aug. 31, 2022)(Percentages indicate change from the previous period)
Distribution
Distributions
s per unit
Operating revenues Operating income Ordinary income
Net income
per unit(including(excluding
SCD)
SCD)
% Millions of% Millions of% Millions of
%
Yen
Yen
Fiscal period ending Millions of
yen
yen
yen
yen
Feb. 28, 2022
5,028
2,628
2,509 5.3
2,508
1.5
2.9
5.3
7,099
6,412
Aug. 31, 2022
5,059
0.6
2,551 (2.9)
2,430 (3.2)
2,429 (3.2)
6,910
6,210

SCD

(Reference) Forecasted net income per unit for the fiscal period ending Feb. 28, 2022: 6,412 yen
Forecasted net income per unit for the fiscal period ending Aug. 31, 2022: 6,210 yen*Other(1) Changes in accounting policies, accounting estimates, or restatements(a) Changes in accounting policies due to revisions to accounting standards and other regulations:None(b) Changes in accounting policies due to other reasons:None(c) Changes in accounting estimates:
None(d) Restatements:
None(2) Total number of investment units issued and outstanding(a) Total number of units issued and outstanding at the end of the fiscal period (including treasury units)
As of Aug. 31, 2021
391,135 units
As of Feb. 28, 2021
348,237 units(b) Number of treasury units at the end of the fiscal period
As of Aug. 31, 2021
0 units
As of Feb. 28, 2021
0 units
Note: Please refer to “Notes Concerning Per Unit Information” on page 25 for the based calculation for the forecasted net
income per unit.

*Implementation Status of Statutory Audit
At the time of this financial report, the audit procedures for the financial statements pursuant to the Financial
Instruments and Exchange Act have not been completed.
*Explanation on the Appropriate Use of the Forecast of Financial Results and Other Matters of Special Consideration
The forward-looking statements in this material are based on information currently available to us and on certain
assumptions that we believe are reasonable. Actual operating performance may differ substantially due to various
factors. Furthermore, those statements shall not be deemed a guarantee or any commitment of the amount of
future distributions and surplus cash distributions. Please refer to “Forecast Assumptions for the Fiscal Periods
Ending Feb. 28, 2022 and Aug. 31, 2022” on page 6 for assumptions regarding forward-looking statements.
Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Yen
687
700

Index1. Results of Operations(1) Results of Operations ...................................................................................................................................................................... 2(A)Overview of the Current Fiscal Period …....................................................................................................................................... 2(i) Major Operational Results of MEL ........................................................................................................................................... 2(ii) Investment Environment and Operational Results of the Current Fiscal Period……………………………………….......................... 2(iii) Overview of Financing ............................................................................................................................................................ 3(iv) Overview of Financial Results and Distributions .................................................................................................................... 3(B) Outlook for the Next Fiscal Period .........................................................................................................................................4(i) Future Management Policies ………………................................................................................................................................... 4(ii) Significant Subsequent Events ................................................................................................................................................ 4(iii) Earnings Forecast ................................................................................................................................................................... 5(2) Risk Factors ……..………………….......................................................................................................................................................... 8
2. Financial Statements(1) Balance Sheet .................................................................................................................................................................................. 9(2) Statement of Income and Retained Earnings .................................................................................................................................. 11(3) Statement of Changes in Net Assets................................................................................................................................................ 12(4) Statement of Cash Distributions...................................................................................................................................................... 13(5) Statement of Cash Flows ................................................................................................................................................................. 14(6) Notes Concerning Going Concerns Assumption .............................................................................................................................. 14(7) Notes Concerning Significant Accounting Policies .......................................................................................................................... 15(8) Notes Concerning Financial Statements ......................................................................................................................................... 17(9) Change in Number of Investment Units Issued and Outstanding .................................................................................................. 24
3. Reference Information(1) Composition of MEL’s Assets .......................................................................................................................................................... 26(2) Investment Assets …………................................................................................................................................................................ 26(A) Major Components of Investment Securities…………………………………..…………………………………………………………………………………… 26(B) Investment Properties ………………………………….…………………………………..…………………………………………………………………………………… 26(C) Other Major Investment Assets………………………………………………………..…………………………………………………………………………………… 26(i) Overview of Portfolio ................................................................................................................................................................. 27(ii) Overview of Properties……………………………….……………………………………………………………………………………..................................... 29(iii) Overview of Tenant Agreements ………………..…….…………………………………................................................................................. 31(iv) Overview of Appraisal Reports …….......................................................................................................................................... 33(v) Information Regarding Major Real Estate Properties ………....................................................................................................... 35(vi) Information Regarding Major Tenants…………………………………………………………………………......................................................... 35(vii) Property Distribution ……………………………………………………………………………………………………....................................................... 36(viii) Details of Collateral ……... ……………………………………………………………………………………………....................................................... 38(ix) Capital Expenditure for Owned Properties………..…………………………………………………………......................................................... 38(x) Overview of Property Leasing and Status of Operating Income …..…………………………………....................................................... 39-1-

1. Results of Operations(1) Results of Operations(A)Overview of the Current Fiscal Period(i) Major Operational Results of MEL
Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) was established on July 14, 2016 under the“Act on Investment Trust and Investment Corporation” (“Investment Trust Law”), and was listed on the REIT
Securities Market of the Tokyo Stock Exchange on September 14, 2017 (securities code: 3481).
Mitsubishi Estate Co., Ltd. (“MEC”), one of the largest comprehensive developers in Japan, acting as a sponsor.
MEL focuses on investing in logistics facilities. MEL’s asset management company, Mitsubishi Jisho Investment
Advisors, Inc. (“Asset Management Company” or “MJIA”) has boasting an extensive track record in real estate
fund management since its establishment in 2001. Through “HYBRID” (Note 1) utilization of the strengths ofboth companies, MEL aims for maximization of unitholder value by striving for the building of a high-quality
portfolio and steady and stable asset management as a listed real estate investment corporation investing
mainly in logistics facilities. Focusing on “location”, ”building features” and “stability,” we aim to build a longterm and stable portfolio through selective investments in highly competitive logistics facilities that meet tenantneeds.
Furthermore, MEL announced its management policy based on the “Three Pillars” on April 17, 2019, as amanagement plan designed to maximize unitholder value in the medium- to long-term. The management policy
is intended to gather the entire MEC Group to work together and improve unitholder value of MEL, focusing on
the following three pillars: Alignment (align interest with unitholders), Discipline (disciplined growth) and Hybrid(enhance MEL’s unique strategy, the hybrid model).
As of the end of the reporting fiscal period (Aug. 31, 2021 ), MEL acquired five additional properties, LogicrossNarashino, Logicross Osaka (40% additional co-beneficiary interest) (Note 2), Logicross Nagoya Kasadera (40%additional co-beneficiary interest) (Note 3), MJ Industrial Park Kobe(Land) and MJ Industrial Park ChibaKita(Land) worth aggregate acquisition price of 28,209 million yen, during the reporting fiscal period. As a result,
MEL owned 22 properties (aggregate acquisition price: 170,404 million yen), at the end of the reporting fiscal
period (Aug. 31, 2021).
Note 1: ”HYBRID,” as in the English term “hybrid” meaning a combination of two things, is used in the context of utilization of
the strengths of MEC and MJIA to refer to the strengths of both companies being utilized creatively and at times
combined depending on the situation and thereby making the most of these in the management of MEL.
Note 2: Logicross Osaka (60% initial co-beneficiary interest) refers to the 60% initial co-beneficiary interest of Logicross Osaka,
which was acquired by MEL on Sept. 1, 2020, and Logicross Osaka (40% additional co-beneficiary interest) refers to the
40% additional co-beneficiary interest of Logicross Osaka, which was acquired by MEL on Mar. 9 ,2021.
Note 3: Logicross Nagoya Kasadera (60% initial co-beneficiary interest) refers to the 60% initial co-beneficiary interest of
Logicross Nagoya Kasadera, which was acquired by MEL on Sept. 1, 2020, and Logicross Nagoya Kasadera (40%additional co-beneficiary interest) refers to the 40% additional co-beneficiary interest of Logicross Nagoya Kasadera,
which was acquired by MEL on Mar. 9, 2021.

(ii) Investment Environment and Operational Results of the Current Fiscal Period
During the reporting fiscal period (ended on Aug. 31, 2021, the declaration and cancellation of the state of
emergency was repeated since early spring due to the spread of novel coronavirus, which makes the situation
still remains severe. Although the economy is expected to slowly recover as economic activities are resumingwith the progress in COVID-19 vaccination, economic uncertainties will most likely to continue, and we need toclosely monitor the impacts on the financial and capital markets going forward. The actual GDP (gross domestic
product) for the second quarter of 2021 (from Apr. to Jun.) recorded a positive growth for the first time in twoquarters with 1.9% increase on an annualized basis backed by the increase in housing demand and corporate
capital investment.
Both domestic and foreign investors in the real estate transaction market are still highly motivated to makeinvestments against the backdrop of the global low interest rate environment even under the current COVID-19
pandemic. In addition, as the Federal Reserve is debating when to start tapering its quantitative easing or raiseinterest rates, we will need to closely monitor the interest rate trends. However, investors continue to look forpotential investment opportunities and cap rates of logistics facilities remain low due to stable cash flow.
In the J-REIT market, which continued upward tendency , the Tokyo Stock Exchange REIT Index has
outperformed the TOPIX and trended from latter half of 1,800 points to latter half of 2,000 points from March
to April, and since June 3, it has been maintaining the 2,100 points level. However, it is necessary to closely
monitor the trend of real estate leasing market and the volatility of interest rate environment.
In the logistics facilities market, a rapid increase of e-commerce use has drawn attention and further increasein demand for logistics facilities is expected, driven by the increased online-based consumption and inventories.

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Under these circumstances, the demand for logistics facilities continues to be strong and vacancy rates remain
low, despite a large volume of new supply. Although the trend of new supply is expected to continue, tenantleasing activities for properties under development are proceeding well, and no significant impact is expectedon MEL’s portfolio.
As of the end of the reporting fiscal period (Aug. 31, 2021), MEL owned 22 properties (aggregate acquisition
price: 170,404 million yen) and the occupancy rate remained high, at 99.8%.
(iii) Overview of Financing
MEL issued new investment units through its public follow-on offering (41,000 units) and raised 16,006 million
yen equity capital, with a payment date of Mar. 5, 2021, to procure funds to acquire assets acquired in the 10th
fiscal period. MEL additionally issued units through a third-party allotment (1,898 units) and raised 740 million
yen equity capital, with a payment date of Apr. 6, 2021. As a result of these offerings, the balance of MEL’s
unitholders’ capital was 114,028 million yen and the total number of units issued and outstanding was 391,135
as of the end of the reporting fiscal period (Aug. 31, 2021).
During the reporting fiscal period, MEL borrowed short-term loans of 3,500 million yen and long-term loans of
8,500 million yen on Mar. 9, 2021 and long term loans of 1,800 million yen on Mar. 19, 2021 including ESG loan
for J-REIT from MUFG Bank, Ltd., and SDGs Green Loan from Sumitomo Mitsui Banking Corporation for the
purpose of acquiring five new properties associated with ancillary costs and expenses. Moreover, MEL prepaid
aforementioned portion of short-term loan of 800 million yen with the cash on hand including the proceed fromthird-party allotment on Apr. 9, 2021 and short-term loan of 1,300 million yen with cash on hand including
consumption tax refund for the properties acquired during fiscal period ended Feb. 28, 2021 on Jul. 1, 2021.
Additionally, MEL prepaid short-term loans of 200 million yen and 1,800 million yen on Apr. 15, 2021 with theproceeds from investment corporation bonds (Green Bonds) issuance .
As of the end of the reporting fiscal period (Aug. 31, 2021), the balance of MEL’s interest-bearing debt was
59,274 million yen and MEL’s loan-to-value ratio (the ratio of aggregate balance of interest-bearing debt to
MEL’s total assets, hereinafter “LTV”) was 32.7%.
MEL’s credit rating as of the end of the reporting fiscal period (Aug. 31, 2021) was as follows:
Rating Agency
Rating Object
RatingOutlookJapan Credit Rating Agency, Ltd.
Long-term issuer rating
AAStable(iv) Overview of Financial Results and Distributions
As a result of these investment activities and financings, MEL generated operating revenues of 4,953 million
yen, operating income of 2,555 million yen, ordinary income of 2,382 million yen, net income of 2,381 million
yen and distributions per unit of 6,764 yen for the reporting fiscal period.
MEL’s distributions for the reporting fiscal period were 6,089 yen per unit, which included MEL’s profit
distributions in deductible expenses in accordance with the Section 1 of Article 67-15 of the Act on Special
Taxation Measures Law (a customary practice of J-REITs). The distribution amount was determined to distributeall unappropriated retained earnings for the reporting period, excluding fractions less than one yen. MEL
declared the distribution amount of 2,381,621,015 yen which was the amount equivalent to the maximum
integral multiples of number of investment units issued and outstanding (391,135 investment units) as of thereporting fiscal period.
In addition to the above distributions arising from earnings, MEL intends to regularly distribute cash in excessof the amount of retained earnings (“Regular Surplus Cash Distributions”) in each fiscal period in accordancewith MEL’s distribution policy set forth in its articles of incorporation (Note 1). Furthermore, to maintain thestability of MEL’s distributions per unit in the event that it is expected that an amount of distributions per unit
temporarily decreases by a certain degree due to financing actions or incurrence of large repair andmaintenance, MEL may decide to make distributions as one-time surplus cash distributions (“One-time Surplus
Cash Distributions,” collectively with the Regular Surplus Cash Distributions, “SCD”).
Accordingly, MEL made Regular Surplus Cash Distributions of 264,016,125 yen, equivalent to 30% of MEL’s
depreciation expense for the reporting fiscal period and the total amount of SCD per unit for the reporting fiscal
period was 675 yen.

Notes:
1. However, MEL may decide not to make any surplus cash distributions for a fiscal period based on a consideration offactors such as economic or real estate market conditions and MEL’s, financial condition or the amount of anticipatedprofitability, which includes capital gains arising from property dispositions. In addition, MEL does not plan to pay
surplus cash distributions from the perspective of continuing stable financial management, in case such payment would

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2.

cause the Appraisal LTV (Note 2), as defined below, to exceed 60%.
Appraisal LTV (%) = A /B (%)
A = Total interest bearing liabilities on the balance sheet for the fiscal period related to the operating period in question(excluding tax loan) + Reversal from security deposit reserves (excluding cases where security deposits arerefunded according to leasing agreements with tenants)
B = Total assets on the balance sheet for the fiscal period related to the operating period in question – Book value
after depreciation of real estate held in the fiscal period in question + Total appraisal value of real estate held in
the fiscal period in question – Total cash distributions to be paid in the next operating period – Total surplus cash
distributions to be paid in the next operating period(B) Outlook for the Next Fiscal Period(i) Future Management Policies
MEL aims to build a high-quality portfolio and manage assets in a stable and steady manner, and eventually tomaximize unitholder value, through selective investments in highly competitive logistics facilities that meettenant needs with a focus on “location,” “building features” and “stability,” based on the accumulated expertiseof Mitsubishi Estate Group.
a. External Growth Strategy
MEL takes advantage of the following two unique features in a hybrid manner: pipeline support from MEC
based on the sponsor support agreement and MJIA’s property sourcing capacity based on its capability toassess investment projects. MEL aims to achieve stable external growth by leveraging strengths of both MEC
and MJIA according to market circumstances (hybrid external growth).
b. Internal Growth Strategy
MEL aims to achieve internal growth that maximizes the value of properties and contributes to MEL’s steady
growth by making the most of MEC’s leasing capability based on relationships with a wide variety of corporate
customers fostered as a comprehensive real estate developer and MJIA’s capability to stably manage logistics
facilities backed by its track record of fund management (hybrid internal growth).
c. Financial Strategy
MEL lays the foundation on long-lasting stable financial management leveraging MEC Group’s expertise infinancial strategy and credibility cultivated over the long term, and controls LTV in consideration of growthpotential. In addition, MEL is committed to efficient cash management in order to achieve improvements inunitholder value.
(ii) Significant Subsequent Events
Not applicable-4-

(iii) Earnings Forecast
Forecasts for the fiscal period ending February 28, 2022 (from Sept. 1, 2021 to Feb. 28, 2022) are follows.
Operating revenues Operating income Ordinary income

Distributions
Distributions
per unit
Net income
per unit(including(excluding
SCD)
SCD)
Millions of yen
Yen
Yen
2,508
7,099
6,412

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Feb 28, 2022
5,028
2,628
2,509
(Reference)
Fiscal period ending Feb. 28, 2022: Expected number of investment units outstanding at the end of the period: 391,135 units;
Expected net income per unit: 6,412 yen

SCD
Yen
687

Forecasts for the fiscal period ending August 31, 2022 (from Mar. 1, 2022 to Aug. 31, 2022) are follows.
Operating revenues Operating income Ordinary income

Distributions
Distributions
per unit
Net income
per unit(including(excluding
SCD)
SCD)
Millions of yen
Yen
Yen
2,429
6,910
6,210

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Aug. 31, 2022
5,059
2,551
2,430
(Reference)
Fiscal period ending Aug. 31, 2022: Expected number of investment units outstanding at the end of the period: 391,135 units;
Expected net income per unit: 6,210 yen

SCD
Yen
700

The forecast information is calculated based on the assumptions described in “Forecast Assumptions for the Fiscal
Periods Ending Feb. 28, 2022 and Aug. 31, 2022”.
Note: Forecast calculations are based on the assumptions as of the date hereof. Actual operating revenues, operating
income, ordinary income, net income, distributions per unit (excluding surplus cash distributions), and surplus cash
distributions per unit may vary due to changes in MEL’s operational environment and circumstances. Therefore,
these forecasts should not be deemed a commitment or guarantee of the amount of future cash distributions.

-5-Forecast Assumptions for the Fiscal Periods Ending Feb. 28, 2022 and Aug. 31, 2022

Items
Accounting
PeriodAssumption
 Fiscal period ending Feb. 28, 2022 (11th fiscal period): From Sept. 1, 2021 to Feb. 28, 2022 (181 days)
 Fiscal period ending Aug. 31, 2022 (12th fiscal period): From Mar. 1, 2022 to Aug. 31, 2022 (184 days)
 It is assumed there will be no material change (including acquisition of new properties anddispositions of existing properties) in the operational status of the 22 properties MEL owned as ofAssets Under
Oct. 15, 2021, up until Aug. 31, 2022.
Management
 The actual results may change due to the acquisition of new properties or the disposition of existing
properties, etc.
 Operating rental revenues take into account factors such as market trends and the competitiveness,
etc. of each property based on information held by the Asset Management Company for theProperties Owned as of the End of 10th Fiscal Period.
Operating
It is assumed tenants will pay rents without delinquency or withholding.
Revenues The forecasts of operating revenues are made on the assumption that there will be no profit or loss
from sale of real estate.
 Main items regarding operating expenses are as follows:(Millions of yen)
Fiscal Period Ending
Fiscal Period Ending
Feb. 28, 2022
Aug. 31, 2022
Total Operating Rental Expenses
1,761
1,877
Facility Management Fee
198
218
Utilities Cost
132
123
Repair and Maintenance Expenses
89
114
Property Taxes
407
474
Depreciation
896
912
Total General and Administrative Expenses
637
630
Asset Management Fee
471
453
OperatingSponsorSupportFee
84
85
Expenses Of operating rental expenses, which is the main operating expense, expenses except depreciation arecalculated by taking into account various factors based on historical data.
 Property taxes and city planning taxes are generally included in the purchase price of properties on a
pro-rata basis of the calendar year and will begin to be expensed from the following calendar year.
Accordingly, property taxes and city planning taxes for the Properties Acquired in 10th Fiscal Period
will be expensed starting from the fiscal period ending Aug. 31, 2022.
 For building repair expenses, the amount assumed to be necessary for each property is based on the
repair and maintenance plans of the Asset Management Company. However, repair expenses may
differ substantially from the anticipated amount due to unexpected factors. For building repair
expenses, the amount assumed to be necessary for each property is based on the repair andmaintenance plans of the Asset Management Company. However, repair expenses may differ
substantially from the anticipated amount due to unexpected factors.
 For the fiscal period ending Feb. 28, 2022, it is assumed that 122 million yen will be incurred as nonoperating expenses, which includes 119 million yen for interest expenses and other debt-related
costs.
Non-operating
For the fiscal period ending Aug. 31, 2022, it is assumed that 122 million yen will be incurred as nonExpenses
operating expenses, which includes 119 million yen for interest expenses and other debt-related
costs.
 The balance of MEL’s interest-bearing debt on an accounting basis as of today is 59,274 million yen.
 It is assumed that, MEL will repay the short-term debt of 900 million yen obtained on Mar. 9, 2021
using cash on hand including the proceeds of tax refund during the fiscal period ending Feb. 28, 2022.
Interest The total expected amount of interest-bearing debt at the end of the fiscal periods ending Feb. 28,
bearing Debt
2022 and Aug. 31, 2022 is estimated to be 58,374 million yen and 58,374 million yen, respectively.
 LTV at the end of the fiscal periods ending Feb. 28, 2022 and Aug. 31, 2022 is estimated to be 32.3%
and 32.4%, respectively. For LTV calculation, please refer to the following formula. The ratios are-6-

Investment
Units

Distributions
Per Unit(excluding
surplus cash
distributions)Surplus CashDistributions
Per Unit

rounded to the nearest tenth:
LTV (%) = interest-bearing debt / total assets × 100 (%)
 It is assumed that the number of investment units currently issued and outstanding will not change up
until Aug. 31, 2022. Currently, there are 391,135 units issued and outstanding.
 Distributions per unit (excluding surplus cash distributions) and surplus cash distributions per unit for
the fiscal periods ending Feb. 28, 2022 and Aug. 31, 2022 are calculated based on 391,135 investment
units, which is the total number of investment units expected to be issued and outstanding at the endof the fiscal periods ending Feb. 28, 2022 and Aug. 31, 2022.
 Distributions per unit (excluding surplus cash distributions) are calculated based on the premise of
the distribution policy in 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 in rent revenues
attributable to tenant moves, changes in the property management environment including
unexpected repair etc.
 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. It is assumed that the surplus cash distributions (on an ongoing basis and one-time basis) in thefiscal period ending Feb. 28, 2022 will be 268 million yen. For the fiscal period ending Aug. 31, 2022, It
is assumed that the total amount of surplus cash distributions, ongoing surplus cash distributions andsurplus cash distributions on a one-time basis will be 273 million yen. There is no distribution from
temporally differences adjustment allowance.
 The amount of depreciation expenses may change depending on the amount of total assets undermanagement, ancillary costs, capital expenditure, the allocation method of purchase prices for each
asset and depreciable life, etc. Surplus cash distributions, which will be based on the amount ofdepreciation expenses, may change accordingly.
 There may be cases where MEL implements distribution of cash in surplus of the distributable amountto investors on the basis of financial statements related to cash distribution approved under the Act
on Investment Trusts and Investment Corporations (Act No. 198 of June 4, 1951, as amended) if theboard of directors of MEL deems such distribution to be appropriate (1) in light of the economic
environment, real estate market, lease market or other trends; (2) when the amount of income fails
to meet the amount equivalent to 90% of distributable income; (3) when the distribution amount fails
to meet the requirements for the Special Provisions for Taxation on Investment Corporations; or (4) inother ways to maximize the interest of investors. When MEL implements distribution of cash insurplus of the distributable amount, it limits the amount to the total of the amount of income for theoperating period in question and the amount stipulated under laws and ordinances (inclusive of therules of the Investment Trusts Association, Japan).
 For the time being, MEL intends to target a level of surplus cash distributions on an ongoing basis at
an amount equivalent to approximately 30% of the depreciation expense for the relevant fiscal
period. Furthermore, to maintain the stability of MEL’s distributions per unit in the event that an
amount of distributions per unit temporarily decreases due to a series of financing actions such as
the issuance of new investment units (including investment unit third-party allotment) or large scale
repair and maintenance, which may result in a temporary dilution of investment units or incurrenceof large expenses, MEL may make distributions as one-time surplus cash distributions. However, MEL
may decide not to make any surplus cash distributions for a fiscal period based on a consideration offactors such as economic or real estate market conditions and MEL’s, financial condition or theamount of anticipated profitability, which includes capital gains arising from property dispositions.
 In addition, in the event that MEL needs to allocate its cash to emergency capital expenditures forunexpected damages on MEL’s assets, etc., surplus cash distributions per unit may be reduced. MEL
does not plan to pay surplus cash distributions from the perspective of continuing stable financial
management, in case such payment would cause the Appraisal LTV (Note), as defined below, toexceed 60%.
(Note) Appraisal LTV (%) = A /B (%)
A = Total interest bearing liabilities on the balance sheet for the fiscal period related to the operating
period in question (excluding 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 fiscal period related to the operating period in question– Book value after depreciation of real estate held in the fiscal period in question + Total appraisal
value of real estate held in the fiscal period in question – Total cash distributions to be paid in the-7-Others

next operating period – Total surplus cash distributions to be paid in the next operating period
 It is assumed that no any revision that will have an impact on the forecast information above will bemade with regard to the laws and regulations, tax system, accounting standards, listing rules of theTokyo 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 estatemarket conditions, etc.

(2) Risk Factors
No significant changes have occurred to the risk factors since the most recent Securities Report (filed on May 28,2021); therefore, their descriptions are not stated here.

-8-2. Financial Statements(1) Balance Sheet
Thousands of yen
As ofFebruary 28, 2021
ASSETS
Current assets:
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Total current assets
Fixed assets:
Property and equipment
Buildings in trust
Less: accumulated depreciation*1

Buildings in trust, net

August 31, 2021

3,787,095
5,685,115
28,57921,3501,209,689

4,669,730
6,973,856
43,411
21,978594,077

10,731,829

12,303,054

60,814,082(3,727,731)*1

57,086,350

Structures in trust
Less: accumulated depreciation*1

Structures in trust, net
Machinery and equipment in trust
Less: accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Less: accumulated depreciation
Tools, furniture and fixtures in trust, net

2,132,358(103,076)

69,323,806(4,572,054)
64,751,752*12,413,488(126,726)

2,029,281

2,286,761

197,114(12,939)

202,323(24,328)

184,175

177,994

16,694(2,652)

28,674(4,392)

14,042

24,281

Land in trust

81,361,574

101,608,148

Total property and equipment

140,675,424

168,848,938

Intangible assets
Software
Other intangible assets

2,985
641

2,035
591

Total intangible assets

3,626

2,626

15
42,71410,00011
41,711
10,000Investments and other assets
Deferred tax assets
Long-term prepaid expenses
Security deposit
Total investments and other assets

52,73051,722

140,731,780

168,903,287

Deferred assets:
Organization expenses

4,032

-

Total deferred assets

4,032

-

151,467,642

181,206,341

Total fixed assets

Total assets-9-Thousands of yen
As
February 28, 2021
LIABILITIESOperating accounts payable
Short-term loans payable
Long-term loans payable due within one year
Accounts payable
Distributions payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
OthersTotal current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities

August 31, 2021

257,6992,000,000
2,211,000
21,3506,862
488,817916
715,55696-

306,660
1,400,000
2,211,000
11,1594,808
566,362826
877,391
63,77196

5,702,299

5,442,075

43,363,000
2,816,129

2,000,000
53,663,000
3,691,040

46,179,129

59,354,040

51,881,429

64,796,116

98,444,036(931,072)

115,191,501(1,162,998)

NET ASSETS
Unitholders’ equity
Unitholders’ capital
Unitholders’ capital, gross
Deduction from unitholders’ capital

97,512,964

114,028,503

SurplusRetained earnings

Unitholders’ capital, net

2,073,248

2,381,722

Total surplus

2,073,248

2,381,722

99,586,213

116,410,225

Total unitholders’ equity
Total net assets*2

Total liabilities and net assets

99,586,213
151,467,642

-10-

*2

116,410,225
181,206,341

(2) Statement of Income and Retained Earnings
Thousands of yen
For the fiscal period ended
For the fiscal period from
For the fiscal period from
Sept. 1, 2020 toMar. 1, 2021 toFeb. 28, 2021
Aug. 31, 2021

Operating revenues:
Operating rental revenues
Other rental revenues
Total operating revenues
Operating expenses:
Expenses related to property rental business
Asset management fee
Asset custody fee
Administrative service fee
Directors’ compensation
Commission paid
Other operating expenses
Total operating expenses
Operating income
Non-operating income:Interest income
Interest on refund
Refund of Property taxes
Reversal of distributions payable
Total non-operating income
Non-operating expenses:
Interest expenses on investment corporation bonds
Interest expenses
Borrowing related expenses
Amortization of organization expenses
Investment unit issuance expenses
Investment corporation bond issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

-11-

*1
*1

4,002,266
201,145
4,203,412*1*1

4,720,745
232,341
4,953,086*1

1,497,479
352,247
1,390
19,1562,400
94,81531,182
1,998,671
2,204,740*1

1,801,259
398,037
1,558
21,662
2,400
101,640
70,591
2,397,151
2,555,935

44
726
770

55
829
604
2,284
3,773

87,433
3,290
6,047

5,343
112,251
3,959
4,032

34,68235,343

131,455
2,074,055
2,074,055
923
(3)
919
2,073,136
112
2,073,248

16,411
177,341
2,382,367
2,382,367
834
4
839
2,381,528
193
2,381,722

(3) Statement of Changes in Net Assets
The Previous Period (from Sept. 1, 2020 to Feb. 28, 2021)
Thousands of yen
Unitholders' equity
Unitholders' capital

Total net
assets

Deduction ofunitholders’capitalUnitholders’capital, net

Unappropriat
ed retained
earnings

Total surplus

Totalunitholders'equity80,744,051(750,029)

79,994,021

1,654,877

1,654,877

81,648,898

81,648,898

17,699,985-

17,699,985--

17,699,985

17,699,985-(181,042)(181,042)--(181,042)(181,042)---(1,654,764)(1,654,764)(1,654,764)(1,654,764)

-

-

-

2,073,136

2,073,136

2,073,136

2,073,136

17,699,985(181,042)

17,518,943

418,371

418,371

17,937,314

17,937,314*1 98,444,036(931,072)

97,512,964

2,073,248

2,073,248

99,586,213

99,586,213

Total surplus

Totalunitholders'equityUnitholders’capital, grossBalance as of Sept.
1, 2020
Change during theperiodIssuance of new
investments
Distributions inexcess of retained
earnings
Surplus cash
distributions
Net income
Total change during
the period
Balance as of Feb.
28, 2021

Surplus

The Reporting Period (from Mar. 1, 2021 to Aug. 31, 2021)
Thousands of yen
Unitholders' equity
Unitholders' capital

Balance as of Mar. 1,
2021
Change during theperiodIssuance of new
investments
Distributions inexcess of retained
earnings
Surplus cash
distributions
Net income
Total change during
the period
Balance as of Aug.
31, 2021

Surplus

Total net
assetsUnitholders’capital, gross

Deduction ofunitholders’capitalUnitholders’capital, net

Unappropriat
ed retained
earnings

98,444,036(931,072)

97,512,964

2,073,248

2,073,248

99,586,213

99,586,213

16,747,464-

16,747,464--

16,747,464

16,747,464-(231,925)

-

-

-

-

(231,925)--

2,381,528(2,073,054)

2,381,528(2,073,054)(231,925)-(2,073,054)(231,925)

2,381,528(2,073,054)

16,747,464(231,925)

16,515,539

308,473

308,473

16,824,012

16,824,012*1 115,191,501(1,162,998)

114,028,503

2,381,722

2,381,722

116,410,225

116,410,225

-

-12-

2,381,528

(4) Statement of Cash Distributions
Yen
For the fiscal period from
Sept. 1, 2020 toFeb. 28, 2021
I. Unappropriated retained earnings

2,073,248,856

II. Distributions in excess of retained earnings
Deduction from unitholders’ capital
III. Distributions(Distributions per unit)
Of which, distributions of retained earnings(Of which, distributions in retained
earnings per unit)
Of which, distributions in excess ofretained earnings(Of which, distributions in excess ofretained earnings per unit)
IV. Retained earnings carried forward
Calculation method of distribution amountFor the fiscal period from
Mar. 1, 2021 toAug. 31, 2021
2,381,722,226

231,925,842

264,016,125

2,304,980,703(6,619)2,645,637,140(6,764)

2,073,054,861

2,381,621,015(5,953)(6,089)231,925,842

264,016,125

(666)

(675)

193,995

101,211

Pursuant to the “Policy on theDistribution of Funds” as defined in

Pursuant to the “Policy on theDistribution of Funds” as defined in

Article 35, Paragraph 1 of the Articles ofIncorporation,theamountofArticle 35, Paragraph 1 of the Articles ofIncorporation,theamountofdistributions shall be the amount which
does not exceed the amount of profits

distributions shall be the amount which
does not exceed the amount of profits

but exceeds 90% of the distributableprofit as defined in Article 67-15 of thebut exceeds 90% of the distributableprofit as defined in Article 67-15 of theSpecial Taxation Measures Act. Based on
the policy, MEL declared distribution

Special Taxation Measures Act. Based on
the policy, MEL declared distribution

amount of 2,073,054,861 yen. This
amount was equivalent to the maximum

amount of 2,381,621,015 yen. This
amount was equivalent to the maximum

integral multiples of number ofinvestment units issued and outstanding

integral multiples of number ofinvestment units issued and outstanding(348,237 units) as of the end of fiscal
period. Based on the distribution policy as(391,135 units) as of the end of fiscal
period. Based on the distribution policy as

defined in Article 35, Paragraph 2 of the
Articles of Incorporation, MEL shall makedefined in Article 35, Paragraph 2 of the
Articles of Incorporation, MEL shall make

Surplus Cash Distributions (SCD), defined
as distributions in excess of retained

Surplus Cash Distributions (SCD), defined
as distributions in excess of retained

earnings, as a return of unitholders’capital, each fiscal period on a continuous

earnings, as a return of unitholders’capital, each fiscal period on a continuous

basis. Accordingly, MEL declared SCD of
231,925,842 yen as a return ofbasis. Accordingly, MEL declared SCD of
264,016,125 yen as a return ofunitholders’ capital, which was theamount equivalent to approximately 30%

unitholders’ capital, which was theamount equivalent to approximately 30%

of depreciation expense.
of depreciation expense.
Note: MEL is permitted to distribute cash in excess of the amount of retained earnings if the amount of the accounting income is smaller than
90% of its distributable retained earnings on a tax basis to the extent that such distribution amount does not exceed the amount of
MEL’s depreciation for the same fiscal period, and if MEL determines that such excess distribution amount is appropriate.

-13-(5) Statement of Cash Flows

Cash flows from operating activities:
Income before income taxes
Depreciation
Investment unit issuance expenses
Investment corporation bond issuance expenses
Interest income
Interest expenses on investment corporation bonds
Interest expenses
Reversal of distributions payable
Decrease (Increase) in operating accounts receivable
Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid expenses
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accounts payable
Increase (Decrease) in accrued expenses
Increase (Decrease) in consumption taxes payable
Increase (Decrease) in advances received
OthersSubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchases of property and equipment in trust
Proceeds from tenant leasehold and security deposits intrust
Repayments from tenant leasehold and security deposits
in trust
Net cash provided by investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment corporation bonds
Proceeds from issuance of new investment units
Payment of distributions of retained earnings
Payment of distributions in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period

Thousands of yen
For the period ended
For the fiscal period from
For the fiscal period from
Sept. 1, 2010 toMar. 1, 2021 toFeb. 28, 2021
Aug. 31, 2021

*1(6) Notes Concerning Going Concerns Assumption
Not applicable-14-

2,074,055
774,496
34,682(44)
87,433(1,120)(1,209,689)(6,542)(9,636)
85,211
13,02865,951(204,777)
187,511
21,9901,912,552
44(84,432)(843)
1,827,319

2,382,367
882,10335,343
16,411(55)
5,343
112,251(2,284)(14,832)
615,612(628)
1,003
41,049(10,191)
67,176
161,834
67,8024,360,307
55(107,225)(924)
4,252,212(28,900,804)(29,046,707)

676,278895,083(55,560)(20,172)(28,280,087)(28,171,796)

2,800,000(1,750,000)
11,150,000
17,665,302(1,654,114)(180,847)
28,030,340
1,577,572
7,894,638
9,472,211

3,500,000(4,100,000)
10,300,000
1,983,588
16,712,121(2,072,871)(231,878)
26,090,959
2,171,375
9,472,211
11,643,587*1

(7) Notes Concerning Significant Accounting Policies
1. Method of depreciation of non-current
assets(1) Property and equipment
Property and equipment are stated at cost. Depreciation of property andequipment, including property and equipment in trust, is calculated by thestraight-line method over the estimated useful lives as follows:
Buildings
2-63 years
Structures
Machinery and equipment

10-58 years
8-12 years

Tools, furniture and fixtures(2) Intangible assets

3-15 years

Intangible assets are stated at cost. Amortization of intangible assets, including
intangible assets in trust, is calculated by the straight-line method over theestimated useful lives.
(3) Long-term prepaid expenses
2. Accounting method of deferred charges

Long-term prepaid expenses are amortized by the straight-line method.
(1) Organization expenses
All organization expenses are amortized over five years using straight-line
method.
(2) Investment unit issuance expenses
All investment unit issuance expenses are recorded as expense at the time of
expenditure.
(3) Investment corporation bond issuance expenses
All investment corporation bond issuance expenses are recorded as expense at

3. Revenue and expense recognition

the time of expenditure
Accounting treatment of property taxes and other taxes
With respect to property taxes, city planning taxes and depreciable asset taxes,of the tax amount assessed and determined, the amount corresponding to therelevant fiscal period is accounted for as rental expenses.
Of the amounts paid for the acquisitions of real estate properties or beneficiaryright in trust of real estate, the amount equivalent to property taxes is capitalized
as part of the acquisition cost of the relevant property instead of being charged

4. Cash and cash equivalents as stated in theStatement of Cash Flows
5. Other basic matters for preparing financial
statements

as an expense.
Cash and cash equivalents consist of cash on hand and cash in trust, floating
deposits, deposits in trust and short-term investments that are very liquid andrealizable with a maturity of three months or less when purchased and that are
subject to insignificant risks of changes in value.
(1) Accounting treatment of trust beneficiary interests of real estate
As to trust beneficiary interests of real estate, all accounts of assets andliabilities within assets in trust, as well as all income generated and expenses
incurred from assets in trust, are recorded in the relevant balance sheets andincome statement accounts. Of which, the following significant trust assets areshown separately on the balance sheet.
(a) Cash and deposits in trust(b) Buildings in trust, structures in trust, machinery and equipment in trust,
tools in trust, furniture and fixtures and land in trust(c) Tenant leasehold and security deposits in trust(2) Accounting treatment of consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusiveof consumption taxes.

-15-

(Accounting standards issued but not yet effective)
・“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued
on Mar. 31, 2020)
・“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 issued on Mar. 26,
2020)
・“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on
Mar. 31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the UnitedStates have jointly developed comprehensive accounting standards for revenue recognition and issued “Revenue fromContracts with Customers” (IFRS 15 (IASB) and Topic 606 (FASB)) in May 2014. Given the situation where IFRS 15 will beapplied from fiscal years beginning on or after January 1, 2018 and that Topic 606 will be applied from fiscal years
beginning after December 15, 2017, the ASBJ has developed comprehensive accounting standards for revenue recognition
and issued them together with the implementation guidance. The basic policy of the ASBJ when it developed theaccounting standards for revenue recognition was to specify the accounting standards, incorporating the basic principles
of IFRS 15 as a starting point, from the perspective of comparability between financial statements, which is one of thebenefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which
consideration should be given, such as practices that have been conducted thus far in Japan, alternative treatments will be
added to the extent to which comparability is not impaired.
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending February 28, 2022.
(3) Impact of applying the accounting standards
The impact of applying “Accounting Standard for Revenue Recognition” and its guidance on the financial statements iscurrently under evaluation.
・“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on Jul. 4, 2019)
・”Accounting Standard for Financial Instruments” (ASBJ Statement No.10 issued on Jul. 4, 2019)
・“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued on Jun.
17, 2019)
・“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on
Mar. 31, 2020)(1) Overview
The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13 “Fair Value
Measurement” (IASB) and Topic 820 “Fair Value Measurement” (FASB)). The ASBJ repeatedly considered the guidance
regarding fair value of financial instruments and disclosure in order to improve the comparability with such international
accounting standards, and issued “Accounting Standard for Fair Value Measurement” and “Implementation Guidance on
Accounting Standard for Fair Value Measurement.”(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending February 28, 2022.
(3) Impact of applying the accounting standards
The impact of applying the “Accounting Standard for Fair Value Measurement” and its guidance on the financial
statements is currently under evaluation.

-16-

(8) Notes Concerning Financial Statements(Notes Concerning Balance Sheet)*1 Reduction entry of tangible fixed assets
Feb. 28, 2021

Buildings in trust
Structures in trustThousands of yen
As of31,2207,008

Aug. 31, 2021

31,2207,008*2 Minimum net assets as required by Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
Feb. 28, 2021

Thousands of yen
As of50,000Aug. 31, 2021
50,000(Notes Concerning Statement of Income and Retained Earnings)*1 Operating income from property leasing is as follows:

Thousands of yen
For the fiscal period from
For the fiscal period from
Sept. 1, 2020 toMar. 1, 2021 toFeb. 28, 2021
Aug. 31, 2021

A. Property-related revenues
Operating rental revenues
Rental revenues
Common area charges
Total
Other rental revenues
Received utilities cost
Others
Total
Total property-related revenues
B. Property-related expenses
Rental expenses
Facility management fee
Property and other taxes
Insurance

3,825,893
176,373
4,002,266

4,533,464
187,280
4,720,745

124,108
77,037201,145
4,203,412

144,882
87,458232,341
4,953,086

185,972
313,276
6,412

208,222407,913
7,306

Repair and maintenanceUtilities cost

75,570115,299

142,071
131,715

Depreciation
Custodian fee
Others773,496
3,140
24,312881,103
3,676
19,251

1,497,479

1,801,259

2,705,932

3,151,826

Total rental expenses
C. Operating income from property leasing (A-B)(Notes Concerning Statement of Unitholders’ Equity)

For the fiscal period from
Sept. 1, 2020 toFeb. 28, 2021

For the fiscal period from
Mar. 1, 2021 toAug. 31, 2021

Number of investment units authorized

10,000,000 units

10,000,000 units

Number of investment units issued andoutstanding

348,237 units

391,135 units-17-

(Notes Concerning Statement of Cash Flow)*1. Relationship between cash and cash equivalents in statement of cash flows and accounts and amounts in theaccompanying balance sheet
Thousands of yen
For the fiscal period from
For the fiscal period from
Sept. 1, 2020 toMar. 1, 2021 toFeb. 28, 2021
Aug. 31, 2021

Cash and deposits

3,787,095

4,669,730

Cash and deposits in trust

5,685,115

6,973,856

Cash and cash equivalents

9,472,211

11,643,587(Notes Concerning to Lease Contracts)
Operating lease transactions (as lessor)
Unearned rental revenue

Thousands of yen
For the fiscal period from
For the fiscal period from
Sept. 1, 2020 toMar. 1, 2021 toFeb. 28, 2021
Aug. 31, 2021

Due within one year

8,139,356

8,732,265

Due after one year

39,466,864

58,945,497

Total

47,606,221

67,677,762(Notes Concerning Financial Instruments)
1. Overview(1) Policy for Financial Instruments
MEL procures funds for the acquisition of assets and repayment of debt mainly through bank loans, issuance ofinvestment corporation bonds or the issuance of new investment units.
In borrowing funds or issuance of investment corporation bonds, MEL takes consideration in interest rate trend,
debt cost, floating or fixed interest rate, borrowing or issuance period and repayment or redemption date.
In the case of borrowing, the lender shall be limited to qualified institutional investors as stipulated in Article 2,
Paragraph 3, Item of the Financial Instruments and Exchange Act of Japan (limited to institutional investorsprescribed in Article 67-15 of the Taxation Special Measures Law), with in principle no collateral / no guarantee.
However, MEL may provide assets as collateral in consideration of financing environment and economic
conditions. In addition, in order to flexibly procure the necessary funds related to MEL's operation such as
property acquisition and repayment debt financing, MEL may enter into the overdraft agreements, commitmentline agreements or conclude the reserved agreements.
MEL generally invests surplus funds in bank deposits, considering the safety and liquidity of the investment andalso reflecting the market environment and cash positions of MEL itself. MEL enters into derivative transactions
solely for the purposes of reducing risks of rising interest rates related to financings and other types of risks. MEL
does not use derivative transactions for speculative purposes. Not applicable for the reporting period.
(2) Type of Financial Instruments, related Risks and Risk Management System
Bank loans and investment corporation bonds are mainly made to procure funds for acquisition of properties,
repayment of interest-bearing debt. Although MEL is exposed to liquidity risks upon repayment, by diversifying thematurities and lending institutions, securing liquidity of cash in hand and managing such liquidity risks by
preparing and monitoring cash flows projection, such risks are maintained under control. In addition, some loans
bear floating interest rates and are exposed to potential risks of rising interest rates. MEL attempts to mitigate
such risks on its operations by maintaining a conservative loan to value ratio and increasing the ratio of long-term
fixed interest rate loans.
The security deposits which MEL has received from the tenants are exposed to liquidity risk due to cancelationof lease agreement before the maturity date. In the case of trust beneficiary interest in real estate, MEL securessafety by accumulating a portion in the trust account, and in the case of real estate, leasehold rights of real estate,and superficies, MEL secures safety by accumulating a portion in bank savings account or bank time deposit
account. Moreover, MEL ensures safety by accurately tracking the timing of the tenant move-ins and outs andanticipating the fund demand utilizing historical data.
(3) Supplemental Explanation Regarding the Estimated Fair Values of Financial Instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no-18-

quoted market price available, fair value is based on a price that is reasonably estimated. Since various
assumptions and factors are reflected in estimating the fair value, different assumptions and factors could resultin a different value.
2.

Estimated Fair Value of Financial Instruments
The book value, fair value and differences between the values as of Feb. 28, 2021 are as follows: Financial
instruments for which the fair value is extremely difficult to estimate are excluded from the following table (see Note
2 below).
Thousands of yen
Book value

Fair value (Note 1)

Difference(1) Cash and deposits

3,787,095

3,787,095-(2) Cash and deposits in trust

5,685,115

5,685,115-

9,472,211

9,472,211-

2,000,000

2,000,000-

2,211,000

2,212,967

1,967(6) Long-term loans payable

43,363,000

43,473,011

110,011

Total liabilities

47,574,000

47,685,978111,978

Total assets(3) Short-term loans payable(4) Long-term loans payable due within one
year

The book value, fair value and differences between the values as of Aug. 31, 2021 are as follows: Financial
instruments for which the fair value is extremely difficult to estimate are excluded from the following table (see Note
2 below).
Thousands of yen
Book value

Fair value (Note 1)

Difference(1) Cash and deposits

4,669,730

4,669,730-(2) Cash and deposits in trust

6,973,856

6,973,856-

11,643,587

11,643,587-

1,400,000

1,400,000-

2,211,000

2,211,276

276

Total assets(3) Short-term loans payable(4) Long-term loans payable due within one
year(5) Investment corporation bonds

2,000,000

2,035,749

35,749(6) Long-term loans payable

53,663,000

54,043,474

380,474

Total liabilities
59,274,000(Note 1) Methods to estimate fair values of financial instruments

59,690,500

416,500(1) Cash and deposits, (2) Cash and deposits in trust and (3) Short-term loans payable
Due to the short maturities, the book value of these instruments is deemed a reasonable approximation of thefair value, and therefore, the book value is used as the fair value.
(4) Long-term loans payable due within one year, (5) Investment corporation bonds and (6) Long-term loans payable
The fair value of long-term loans payable is determined based on the present value of contractual cash flows which
would be applicable to new loans payable under the same terms. In terms of floating interest rate loans payable, since it reflects themarket interest rate in a short period of time, the fair value is approximately equal to the book value. Thus, the book value is used.

-19-

(Note 2) Financial instruments for which the fair value is extremely difficult to estimate
Thousands of yen
As ofFeb. 28, 2021
Tenant leasehold and security deposits in trust *Aug. 31, 2021

2,816,129

3,691,040* Because tenant leasehold and security deposits and tenant leasehold and security deposits in trust have no observable andavailable market price and it is impracticable to reasonably estimate their future cash flows, their fair value is not assessedherein.
(Note 3) Redemption schedule for monetary claims after Feb. 28, 2021

Cash and deposits
Cash and deposits in trust
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fourto two years to three years
to five years
years
one yearyears
3,787,095
5,685,115
9,472,211-

Redemption schedule for monetary claims after Aug. 31, 2021

Cash and deposits
Cash and deposits in trust
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fouryears
one yearto two years to three years
to five years
years
4,669,730
6,973,856
11,643,587-(Note 4) Repayment schedule f or debt after Feb. 28, 2021

Short-term loans payable
Long-term loans payable
due within one year
Long-term loans payable
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fouryears
one yearto two years to three years
to five years
years
2,000,000
2,211,000

-

-

-

-

-

4,211,000

3,310,000
3,310,000

6,540,000
6,540,000

4,550,000
4,550,000

4,970,000
4,970,000

23,993,000
23,993,000

Repayment schedule for debt after Aug. 31, 2021

Short-term loans payable
Long-term loans payable
due within one year
Investment corporationbonds
Long-term loans payable
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fourto two years to three years
to five years
years
one year
years
1,400,000
2,211,000

-

-

-

-

-

-

-

-

-

-

2,000,000

3,611,000

3,310,000
3,310,000

6,540,000
6,540,000

5,900,000
5,900,000

4,970,000
4,970,000

32,943,000
34,943,000(Notes Concerning Investment Securities)
For the periods ended Feb. 28, 2021 and Aug. 31, 2021
Not applicable(Notes Concerning Derivative Transactions)
For the periods ended Feb. 28, 2021 and Aug. 31, 2021
Not applicable-20-

(Notes Concerning Retirement Payment)
For the periods ended Feb. 28, 2021 and Aug. 31, 2021
Not applicable(Notes Concerning Deferred Tax Accounting)
1. Primary components of deferred tax assets and deferred tax liabilities

Thousands of yen
As ofFeb. 28, 2021
Enterprise tax payable
Subtotal deferred tax assets
Total deferred tax assets
Net deferred tax assets

Aug. 31, 2021
15
15
15
15

11
11
11
11

2. Reconciliations of major items that caused differences between statutory tax rate and effective tax rate after applying
Deferred tax accounting
For the fiscal period ended
Feb. 28, 2021
Aug. 31, 2021
Statutory tax rate
31.46%
31.46%
Adjustments:
Deductible cash distributions(31.44%)(31.45%)
Other
0.03%
0.03%
Actual effective income tax rate
0.04%
0.04%

(Notes Concerning Equity Earnings of Affiliate Companies)
For the periods from Sept. 1, 2020, to Feb. 28, 2021, and from Mar. 1, 2021, to Aug. 31, 2021
Not applicable(Notes Concerning Related Party Transaction)
1. Transactions with Account Balances with the Parent company and Major Unit Holders
For the periods from Sept. 1, 2020, to Feb. 28, 2021, and from Mar. 1, 2021, to Aug. 31, 2021
Not applicable
2.

Transactions and Account Balances with Affiliates
For the periods from Sept. 1, 2020, to Feb. 28, 2021, and from Mar. 1, 2021, to Aug. 31, 2021
Not applicable

3.

Transactions and Account Balances with Companies under Common Control
For the periods from Sept. 1, 2020, to Feb. 28, 2021, and from Mar. 1, 2021, to Aug. 31, 2021
Not applicable

4.

Transaction and Account Balances with Board of Directors and Individual Unitholders
For the periods from Sept. 1, 2020, to Feb. 28, 2021, and from Mar. 1, 2021, to Aug. 31, 2021
Not applicable(Notes Concerning Asset Retirement Obligations)
For the periods ended Feb. 28, 2021 and Aug. 31, 2021
Not applicable-21-

(Notes Concerning Rental Properties)
MEL owns logistics facilities for leasing for the purpose of earning rental income. The book value, changes during thereporting fiscal period and fair value of the properties are as follows:
Thousands of yen
For the fiscal period from
For the fiscal period from
Sept. 1, 2020 toMar. 1, 2021 toFeb. 28, 2021
Aug. 31, 2021

Book value (Note 1)
Balance at the beginning of the period

112,466,230

140,675,424

Changes during the period (Note 2)

28,209,193

28,173,514

Balance at the end of the period

140,675,424

168,848,938

Fair value at the end of the period (Note 3)
155,900,000
189,300,000(Note 1) Book value is calculated by deducting accumulated depreciation from acquisition cost.
(Note 2) The increase for the fiscal period ended Feb. 28, 2021 was primarily a result of acquiring new properties for a total of
28,865,490 thousand yen. The decrease was primarily a result of the recognition of depreciation, which amounted to773,496 thousand yen. The increase for the fiscal period ended Aug. 31, 2021 was primarily a result of acquiring newproperties for a total of 28,886,168 thousand yen. The decrease was primarily a result of the recognition of depreciation,
which amounted to 881,103 thousand yen.
(Note 3) The fair value at the end of the period is determined based on appraised value provided by independent real estateappraisers.

Income and loss in connection with investment and rental properties are disclosed in “Notes Concerning Statementsof Income and Retained Earnings.”(Notes Concerning Segment and Related Information)
1. Segment Information
Disclosure is omitted because the real estate leasing business is MEL’s sole business and it has no reportablesegment subject to disclosure.
2. Related Information
For the period from Mar. 1, 2020, to Aug. 31, 2020
(1) Information by Products and Services
Description of this information is not stated herein as operating revenues generated from external customers for asingle product and service have exceeded 90% of total operating revenues on the statement of income and retained
earnings.
(2) Information by Geographic Region(a) Operating Revenues
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating
revenues on the statement of income and retained earnings.
(b) Property and Equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of
the amount of property and equipment on the balance sheet.
(3) Information by Each Major Customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating
revenues on the statement of income and retained earnings.
For the period from Sept. 1, 2020, to Feb. 28, 2021
(1) Information by Products and Services
Description of this information is not stated herein as operating revenues generated from external customers for asingle product and service have exceeded 90 % of total operating revenues on the statement of income and retained
earnings.
(2) Information by Geographic Region(a) Operating Revenues
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating
revenues on the statement of income and retained earnings.

-22-

(b) Property and Equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of
the amount of property and equipment on the balance sheet.
(3) Information by Each Major Customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating
revenues on the statement of income and retained earnings.
(Notes Concerning Per Unit Information)
Yen

For the fiscal period from
Sept. 1, 2020 toFeb. 28, 2021
Net assets per unit

285,972

For the fiscal period from
Mar. 1, 2021 toAug. 31, 2021
297,621

Net income per unit
5,958
6,108
(Note 1) Net income per unit is calculated by dividing net income for the period by the weighted average number of investments
units issued and outstanding based on the number of days during the applicable reporting periods. Diluted net income
per unit is not stated as there is no dilutive equity issued and outstanding.
(Note 2) The basis for calculation of the profit per unit is as follows:
For the fiscal period from
For the fiscal period from
Sept. 1, 2020 toMar. 1, 2021 toFeb. 28, 2021
Aug. 31, 2021
Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common unitholders(Thousands of yen)
Average number of investment units during theperiod (Unit)(Notes Concerning Significant Subsequent Events)
Not applicable-23-

2,073,136

2,381,528--

2,073,136

2,381,528

347,929

389,872

(9) Change in Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital for the most recent five
years until Aug. 31, 2021 are as follows:
Unitholders’ Capital(Thousands of yen)(Note 1)
Increase /Total
Decrease

Number of Investment Units
Issued and Outstanding (Units)
Increase /Total
Decrease

Date

Type of Issue

Sept. 28, 2016

Private offering

1,800,000

2,000,000

18,00020,000(Note 2)June 15, 2017

Reverse split ofinvestment units-

2,000,000(12,000)

8,000(Note 3)Public offering

49,678,200

51,678,200

198,000

206,000(Note 4)

2,007,200

53,685,400

8,000

214,000(Note 5)(120,910)

53,564,490-

214,000(Note 6)

7,216,429

60,780,919

30,300244,300(Note 7)360,821

61,141,741

1,515

245,815(Note 8)(129,898)

61,011,843-

245,815(Note 9)(179,199)

60,832,644-

245,815(Note 10)

18,556,033

79,388,677

57,150302,965(Note 11)925,366

80,314,044

2,850

305,815(Note 12)(146,014)

80,168,030-

305,815(Note 13)(174,008)

79,994,021-

305,815(Note 14)

16,898,058

96,892,079

40,500346,315(Note 15)

801,927

97,694,006

1,922

348,237(Note 16)

(181,042)

97,512,964-

348,237(Note 17)

16,006,482

113,519,446

41,000389,237(Note 18)

740,982

114,260,429

1,898

391,135(Note 19)

(231,925)

114,028,503－

391,135(Note 20)

Sept. 13, 2017
Oct. 10, 2017
May 21, 2018
Sept. 10, 2018
Oct. 11, 2018
Nov. 19, 2018
May 21, 2019
Oct. 7, 2019Nov. 7, 2019Nov. 18, 2019
May 20, 2020
Sept. 1, 2020
Sept. 30, 2020
Nov. 20, 2020
Mar. 5, 2021
Apr. 6, 2021
May 20, 2021

Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus CashDistributions(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus CashDistributions(return on capital)

Note

Notes:
1. “Unitholders’ capital” is the amount after deducting the “Deduction from unitholders’ capital.”
2. Investment units were issued at an issue price of 100,000 yen per unit.
3. A 0.4-for-1 reverse split of investment units was conducted, with June 15, 2017 as the effective date.
4. New investment units were issued through public offering at an issue price of 260,000 yen (paid-in amount of 250,900yen) per unit.
5. New investment units were issued through third-party allotment at a paid-in amount of 250,900 yen per unit.
6. Cash distributions for the fiscal period ended Feb. 2018 in the amount of 565 yen per unit as return of capital. It was-24-

decided on Apr. 13, 2018 and started payment on May 21, 2018.
New investment units were issued through public offering at an issue price of 246,772 yen (paid-in amount of 238,166
yen) per unit.
8. New investment units were issued through third-party allotment at a paid-in amount of 238,166 yen per unit.
9. Cash distributions for the fiscal period ended Aug. 2018 in the amount of 607 yen per unit as return of capital. It was
decided on Oct. 15, 2018 and started payment on Nov. 19, 2018.
10. Cash distributions for the fiscal period ended Feb. 2019 in the amount of 729 yen per unit as return of capital. It was
decided on Apr. 15, 2019 and started payment on May 21, 2019.
11. New investment units were issued through public offering at an issue price of 335,887 yen (paid-in amount of 324,690
yen) per unit.
12. New investment units were issued through third-party allotment at a paid-in amount of 324,690 yen per unit.
13. Cash distributions for the fiscal period ended Aug. 2019 in the amount of 594 yen per unit as return of capital. It was
decided on Oct. 17, 2019 and started payment on Nov. 18, 2019.
14. Cash distributions for the fiscal period ended Feb. 2020 in the amount of 569 yen per unit as return of capital. It was
decided on Apr. 17, 2020 and started payment on May 20, 2020.
15. New investment units were issued through public offering at an issue price of 431,701 yen (paid-in amount of 417,236
yen) per unit.
16. New investment units were issued through third-party allotment at a paid-in amount of 417,236 yen per unit.
17. Cash distributions for the fiscal period ended Aug. 2020 in the amount of 592 yen per unit as return of capital. It was
decided on Oct. 15, 2020 and started payment on Nov. 20, 2020.
18. New investment units were issued through public offering at an issue price of 403,650 yen (paid-in amount of 309,402
yen) per unit.
19. New investment units were issued through third-party allotment at a paid-in amount of 309,402 yen per unit.
20. Cash distributions for the fiscal period ended Mar. 2021 in the amount of 666 yen per unit as return of capital. It was
decided on Apr. 15, 2021 and started payment on May. 20, 2021.
7.

-25-

3. Reference Information(1) Composition of MEL’s Assets
Type of assets

Beneficiary right intrust

Category

RegionTokyo metropolitan area (Note 2)
Osaka metropolitan area (Note 3)
Nagoya metropolitan area (Note 4)
OthersOthers
Total
Deposit and other assets
Total assets (Note 5)

Logistics
facilities

Amount(Millions of yen)

10th fiscal period(As of Aug. 31, 2021)
Retained amount
Ratio of total assets(Millions of yen)(%)
(Note 1)
76,66442.3
32,61318.0
28,122
15.5
18,664
10.3
12,783
7.1
168,848
93.2
12,357
6.8
181,206
100.0

10th fiscal period(As of Aug. 31, 2021)

Ratio of total asset(%)

Total liabilities (Note 5)(Note 6)
64,796
35.8
Total net assets (Note 5)
116,41064.2
Total assets (Note 5)
181,206
100.0
Notes:
1.
The retained amount is the amount allocated in the balance sheet (the book value after depreciation) at the end of the reporting
fiscal period (as of Aug. 31, 2021.)
2.
Tokyo metropolitan area refers to Tokyo, Kanagawa, Chiba, Saitama and Ibaraki prefectures.
3.
Osaka metropolitan area refers to Osaka, Hyogo, Kyoto, Nara and Shiga prefectures.
4.
Nagoya metropolitan area refers to Aichi, Mie and Gifu prefectures.
5.
Total liabilities, total net assets and total assets is the amount allocated in the balance sheet at the end of the reporting fiscal
period (as of Aug. 31, 2021).
6.
Total liabilities include the tenant leasehold and security deposits.

(2) Investment Assets(A) Major Components of Investment Securities
Not applicable(B) Investment Properties
Not applicable(C) Other Major Investment Assets
The real estate trust beneficiary interests held by MEL as of the end of Aug. 31, 2021 are as follows.

-26-

(i) Overview of Portfolio
The following summarizes (location, acquisition price, investment ratio, book value, appraisal value, acquisition date) thereal estate or the real estate properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Property nameLocation

Appraisal
Acquisition price Investment Book value value
Acquisition date(Millions of yen) ratio (%) (Millions of (Millions of(Note 4)(Note 1)
(Note 2)yen)
yen)(Note 3)

Logicross Fukuoka Hisayama

Hisayama,
Kasuya, Fukuoka

5,770

3.4

5,508

7,480

Sept. 14, 2017

Logicross Atsugi

Atsugi, Kanagawa

8,440

5.0

8,347

9,420

Sept. 3, 2018

Logicross Kobe Sanda

Kobe, Hyogo

3,900

2.3

3,860

4,310

Sept. 3, 2018

Logicross Osaka (Note 5)

Osaka, Osaka

5.7

9,806

10,100➀Sept. 1, 2020
➁Mar. 9, 2021

Logicross Nagoya Kasadera(Note 5)

Nagoya, Aichi

Logicross Narashino

Narashino, Chiba

LOGIPORT Sagamihara(Note 6)

Sagamihara,

Logistics LOGIPORT Hashimoto
Facilities (Note 7)

Sagamihara,
Kanagawa

8.5

14,546

16,500➀Sept. 1, 2020
➁Mar. 9, 2021

7.0

11,972

12,400Mar. 9, 2021

21,364

12.5

20,752

24,000

Sept. 14, 201718,20010.7

17,73021,060

Sept. 14, 2017

6.2

10,473

11,850➀Oct. 9, 2019
➁Sept. 1, 2020

3.2

5,336

6,590

Sept. 29, 2016

Kanagawa

LOGIPORT Osaka Taisho(Note 8)Osaka, Osaka

MJ Logipark Funabashi 1

Funabashi, Chiba➀5,682➁4,802
Total:10,484
5,400

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

3.9

6,473

7,190

Sept. 14, 2017

MJ Logipark Kazo 1

Kazo, Saitama

1,272

0.7

1,231

1,490

Sept. 14, 2017

MJ Logipark Osaka 1

Osaka, Osaka

6,090

3.6

5,921

7,130

Sept. 14, 2017

6,130

3.6

5,793

6,610

Sept. 14, 2017

3,133

1.8

3,121

3,420

Sept. 2, 2019

MJ Logipark Fukuoka 1

Others➀5,874➁3,868
Total:9,743➀8,705➁5,719Total:14,424
11,851

Umi,
Kasuya, Fukuoka

MJ Logipark Tsuchiura 1

Tsuchiura, Ibaraki

MJ Logipark Nishinomiya 1

Nishinomiya, Hyogo

2,483

1.5

2,550

2,680

Oct. 9, 2019

MJ Logipark Kasugai 1

Kasugai, Aichi

13,6708.0

13,575

14,400Oct. 9, 2019

MJ Logipark Kazo 2

Kazo, Saitama

1,637

1.0

1,698

1,720

Sept. 1 2020

MJ Logipark Sendai 1
MJ Industrial Park Sakai(Land)
MJ Industrial Park Kobe
(Land)
MJ Industrial Park ChibaKita (Land)
Total

Tagajo, Miyagi

7,388

4.3

7,362

7,510

Sept. 1 2020

Sakai, Osaka

5,600

3.3

5,666

5,780

Oct. 9, 2019

Kobe, Hyogo

4,970

2.9

5,202

5,690

Mar. 9, 2021

Chiba, Chiba

1,800

1.1

1,914

1,970

Mar. 19, 2021

170,404
100.0 168,848 189,300
Notes:
1.
“Acquisition price” represents the purchase price of each property or beneficiary right in trust as set forth on the relevantpurchase agreement and does not include expenses such as consumption taxes, and is rounded down to nearest million yen.
2.
“Investment ratio” is calculated by dividing the acquisition price for each property by the total acquisition price and is rounded tosecond decimal place. Thus, the sum of the figures in total may not add up to the figure in the total column.
3.
"Appraisal value” represents the appraisal value as set forth on the relevant study reports by real estate appraisers as of Aug. 31,
2021. Please refer to the below mentioned” (iv) Overview of Appraisal Reports”.
4.
“Acquisition date” represents the acquisition date in the relevant sale and purchase agreement.
5.
“Total Acquisition price” and “Appraisal value” of Logicross Osaka and Logicross Nagoya Kasadera is shown with the values
corresponding to the co-beneficiary interest ratios (100%). “Acquisition price” and “Acquisition date” are shown with the number
on the top refers to the 60 % co-beneficiary interest acquired on Sept. 1, 2020, and the bottom refers to the 40% co-beneficiaryinterest acquired on Mar. 9, 2021.

-27-

6.
7.
8.

“Acquisition price” and “Appraisal value” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiaryinterest ratios (49%).
“Acquisition price” and “Appraisal value” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiaryinterest ratios (45%).
“Total Acquisition price” and “Appraisal value” of LOGIPORT Osaka Taisho is shown with the values corresponding to the cobeneficiary interest ratios (37.5%). “Acquisition price” and “Acquisition date” are shown with the number on the top refers to the
20 % co-beneficiary interest acquired on Oct. 9, 2019, and the bottom refers to the 17.5% co-beneficiary interest acquired on
Sept. 1, 2020.

-28-

(ii) Overview of Properties
The following summarizes (land area, total floor area, total leasable area, total leased area, year built) the real estate or
the real estate properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Property nameLand area(㎡)(Note 1)

Total floor area Total leasable area Total leased area(㎡) (Note 2)(㎡) (Note 3)(㎡) (Note 1)

Year built(Note 4)

Logicross Fukuoka Hisayama

18,136.89

36,082.08

34,878.55

34,878.55

Oct. 2014

Logicross Atsugi

14,782.03

29,895.80

29,895.80

29,895.80

Mar. 2017

Logicross Kobe Sanda

20,000.93

12,879.33

12,844.35

12,844.35

Jun. 2017

Logicross Osaka

18,176.07

36,619.48

35,616.58

35,616.58

Sept. 2018

Logicross Nagoya Kasadera

33,224.00

72,376.03

62,289.08

62,289.08

Jan. 2019

Logicross Narashino

19,386.40

36,437.92

39,132.05

39,132.05

Mar. 2018

LOGIPORT Sagamihara (Note 5)

94,197.27

200,252.53(98,123.73)

88,609.64

88,316.94

Aug. 2013

LOGIPORT Hashimoto (Note 6)

67,746.26

145,809.59(65,614.31)

58,487.96

58,487.96

Jan. 2015

LOGIPORT Osaka Taisho(Note 7)55,929.57

117,045.04(43,891.89)

40,081.57

38,492.07

Feb. 2018

Logistics
MJ Logipark Funabashi 1
Facilities

7,481.00

18,262.08

18,232.07

18,232.07

Nov. 1989

MJ Logipark Atsugi 1

19,780.93

27,836.15

28,002.44

28,002.44

Jul. 2013

MJ Logipark Kazo 1

7,621.09

7,602.06

7,678.10

7,678.10

Mar. 2006

MJ Logipark Osaka 1

13,028.81

39,157.61

39,082.95

39,082.95

Sept. 2007

MJ Logipark Fukuoka 1

20,297.84

39,797.96

38,143.21

38,143.21

Sept. 2007

MJ Logipark Tsuchiura 1

22,914.37

15,485.00

15,485.00

15,485.00

Oct. 2014

MJ Logipark Nishinomiya 1

23,008.83

13,903.42

13,777.07

13,777.07

Mar. 1991

MJ Logipark Kasugai 1

38,972.99

58,236.48

57,866.98

57,866.98

Jan. 2017

MJ Logipark Kazo 2

11,454.21

7,349.18

7,349.18

7,349.18

Dec. 1998

MJ Logipark Sendai 1

19,877.94

36,854.27

39,098.87

39,098.87

Mar. 2009

MJ Industrial Park Sakai (Land)87,476.71-

87,476.71

87,476.71-

MJ Industrial Park Kobe (Land)40,050.71-

31,743.99

31,743.99-

MJ Industrial Park Chiba-Kita(Land)

14,986.64-

14,986.64

14,986.64-

668,531.49

951,882.01(696,404.78)

800,758.79

798,876.59-

Others

Total

Notes:
1.
“Land area” and “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the mainbuilding and annex. If there is more than one main building, the total floor area is the sum of the total floor area for each mainbuilding. Figures in parentheses for LOGIPORT Sagamihara, LOGIPORT Hashimoto and LOGIPORT Osaka Taisho are stated

-29-

2.

3.
4.
5.
6.
7.

corresponding to each co-beneficiary interest (49%, 45% and 37.5%). “Total” are the sum of total floor area of each property
owned taking into account the co-beneficiary interest of each property. Each figure is rounded down to the nearest hundredth“Total leasable area” equals to the gross leasable space in each property or property in trust as of Aug. 31, 2021, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to the nearest
hundredth. It does not include the leased area indicated in the lease agreements concerning shops, vending machines,
photovoltaic power generation facilities and parking lots.
“Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Aug. 31, 2021, basedon the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in thelease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
“Year built” is the date of construction of the building in the register. If there is more than one main building, the oldest dateshown in the register.
“Total leasable area” and “Total leased area” of LOGIPORT Sagamihara is shown with the values corresponding to the cobeneficiary interest ratios (49%).
“Total leasable area” and “Total leased area” of LOGIPORT Hashimoto is shown with the values corresponding to the cobeneficiary interest ratios (45%).
“Total leasable area” and “Total leased area” of LOGIPORT Osaka Taisho is shown with the values corresponding to the cobeneficiary interest ratios (37.5%).

-30-

(iii) Overview of Tenant Agreements
The following summarizes (total leasable area, total leased area, occupancy, number of tenants, name of major tenant,annual rent, security deposit, average lease term and average remaining lease term) the real estate or the real estate
properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Logistics
Facilities

Property nameSecurity
Average lease
Annual rent
deposit term / Average
Name of major(Millions of (Millions of remaining leasetenant (Note 5)yen) (Note 6)
yen)term (Years)(Note 7)(Note 8, 9)
Not
Not
5.0
2 AXions GROUP
disclosed
disclosed(4.5)(Note 10)(Note 10)Not
Not
MITAKA SOKO
10.0
1
disclosed
disclosed
Co., Ltd.
(5.6)(Note 10)(Note 10)
Not
Not
Fresh Creator
30.0
1
disclosed
disclosed
Co., Ltd.
(25.8)(Note 10)(Note 10)
Not
Not
Not
2 e-LogiT co Ltd
disclosed
disclosed
disclosed(Note 10)(Note 10)(Note 10)

NumberTotal leasable Total leased Occupancyof(%)
area (㎡)area (㎡)tenants(Note
3)(Note 1)
(Note 2)
(Note 4)

Logicross Fukuoka
Hisayama

34,878.55

34,878.55

100.0

Logicross Atsugi

29,895.80

29,895.80

100.0

Logicross Kobe Sanda

12,844.35

12,844.35

100.0

Logicross Osaka

35,616.58

35,616.58

100.0

Logicross Nagoya
Kasadera

62,289.08

62,289.08

100.0

10 YAGAMI Co., LTD

Logicross Narashino

39,132.05

39,132.05

100.0

1

LOGIPORT Sagamihara(Note 11)88,609.64

88,316.94

LOGIPORT Hashimoto(Note 12)58,487.96

LOGIPORT Osaka Taisho(Note 13)

939

400

6.7
(4.3)

Nihon Realest.,
Ltd.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

99.7

18 S･V･D Co., Ltd.

1,282

299

7.2
(2.4)

58,487.96

100.0

15

KDDI
Corporation

969

238

6.1
(3.2)

40,081.57

38,492.07

96.0

SBS Toshiba
10 Logistics
Corporation

559

134

5.7
(2.8)

MJ Logipark Funabashi 1

18,232.07

18,232.07

100.0

1 Fuji Echo Co., Ltd.

MJ Logipark Atsugi 1

28,002.44

28,002.44

100.0

1

Sun Toshi
Tatemono K.K.

MJ Logipark Kazo 1

7,678.10

7,678.10

100.0

1Kanda Holdings
Co., Ltd.

MJ Logipark Osaka 1

39,082.95

39,082.95

100.0

1 Sankyu Inc.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

MJ Logipark Fukuoka 1

38,143.21

38,143.21

100.0

4

Fukuoka Logistics
Systems Corp.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)398

179

MJ Logipark Tsuchiura 1

15,485.00

15,485.00

100.0

1

EntreX
Incorporated

MJ Logipark
Nishinomiya 1

13,777.07

13,777.07

100.0

1 F - LINE CO., Ltd

MJ Logipark Kasugai 1

57,866.98

57,866.98

100.0

2

Kimura-Unity Co.,Ltd.

MJ Logipark Kazo 2

7,349.18

7,349.18

100.0

1MS JAPAN
Co.,Ltd.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

100.0

Toho
Transportation
3and Warehouse
Co., Ltd.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)424

188

MJ Logipark Sendai 1

39,098.87

39,098.87

-31-

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)
2.9
(0.8)
20.0
(16.9)
10.0
(7.6)
5.1
(2.2)
10.0
(8.3)
3.5
(1.0)

Category

OthersProperty name

NumberTotal leasable Total leased Occupancyof(%)
area (㎡)area (㎡)tenants(Note 3)(Note 1)
(Note 2)
(Note 4)

MJ Industrial Park Sakai(Land)

87,476.71

87,476.71

100.0

1

MJ Industrial Park Kobe
(Land)

31,743.99

31,743.99

100.0

1

MJ Industrial Park ChibaKita (Land)

14,986.64

14,986.64

100.0

1

Total (Average)

800,758.79

798,876.59

99.8

79

Security
Average lease
Annual rent
deposit term / Average(Millions of (Millions of remaining leaseyen) (Note 6)
yen)term (Years)(Note 7)(Note 8, 9)
Not
Not
Not
IHI Infrastructure
disclosed
disclosed
disclosed
Systems Co., Ltd(Note 10)(Note 10)(Note 10)
Not
Not
Not
ORIX Autodisclosed
disclosed
disclosed
Corporation(Note 10)(Note 10)(Note 10)
Not
Not
Not
Kinugawa Rubber
disclosed
disclosed
disclosed
Industrial Co., Ltd.
(Note 10)(Note 10)(Note 10)
10.5
9,653
3,636
－
(7.0)
Name of major
tenant (Note 5)

Notes:
1. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Aug. 31, 2021, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to the nearest
hundredth. It does not include the leased area indicated in the lease agreements concerning shops, vending machines,
photovoltaic power generation facilities and parking lots.
2. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Aug. 31, 2021, basedon the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in thelease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. “Occupancy” is as of Aug. 31, 2021, calculated by dividing total leased area for each property by the total leasable area. The total
occupancy rate is calculated by dividing the aggregate total leased area for the relevant properties by the aggregate total leasablearea for the relevant properties. Figures are rounded to the nearest tenth.
4. “Number of tenants” is based on the lease agreements with tenants for each property or property in trust as of Aug. 31, 2021.
However, if one lessee enters into a multiple number of lease agreements for the same property, the total number of tenants will
be calculated on the assumption that such lessee is one party.
5. “Name of major tenant” is the name of the tenant with the largest leased floor area in the relevant lease agreement for each
property or property in trust as of Aug. 31, 2021
6. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Aug. 31, 2021. However,if there are different provisions for monthly rent (including common area expenses) depending on the time period in each leaseagreement for each property or property in trust as of Aug. 31, 2021, the annualized amount of rent will be calculated based on
the monthly rent (including common area expenses) for Aug. 2021 shown in said lease agreement. The rent-free periods andannual rent holiday periods (meaning that the payment of rents for specific months is exempted) as of Aug. 31, 2021 shall not be
included.
7. “Security deposit” represent the sum of the outstanding amounts of leasehold/security deposits (the sum of the outstanding
amounts of leasehold/security deposit if a multiple number of lease agreements have been executed), rounded down to thenearest million yen, indicated in the subject lease agreement as of Aug. 31, 2021. However, if there are different provisions for thesum of outstanding leasehold/security deposit depending on the time period in each lease agreement for each property or
property in trust, the amount of tenant leasehold/security deposit for Aug. 2021 shown in said lease agreement is indicated.
8. “Average lease term” is calculated as the weighted average lease term indicated in the relevant lease agreements for each
property or property in trust as of Aug. 31, 2021, by the rent and figures are rounded to the first decimal place.
9. “Average remaining lease term” is calculated as the weighted average remaining lease term indicated in the relevant leaseagreements for each property or property in trust as of Aug. 31, 2021, by the rent and figures are rounded to the first decimal
place.
10. Not disclosed as the tenant’s consent has not been obtained.
11. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Sagamihara is shown with the values
corresponding to the co-beneficiary interest ratios (49%).
12. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Hashimoto is shown with the values
corresponding to the co-beneficiary interest ratios (45%).
13. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Osaka Taisho is shown with thevalues corresponding to the co-beneficiary interest ratios (37.5%).

-32-

(iv) Overview of Appraisal Reports (as of Aug. 31, 2021)
Return priceCategory

Property
nameLogicross
Fukuoka
Hisayama
LogicrossAtsugi
Logicross
Kobe Sanda

Logicross
Osaka
Logicross
NagoyaKasadera

Tanizawa
Sogo
Appraisal
Co., Ltd.
Tanizawa
Sogo
Appraisal
Co., Ltd.
Tanizawa
Sogo
Appraisal
Co., Ltd.
Japan Real
EstateInstitute

Appraisal
value
date

Aug. 31, 2021

7,480

6,980

7,510

4.6

7,470

4.5, 4.7(Note 3)

4.8

350

6.1

Aug. 31, 2021

9,420

9,300

9,540

4.0

9,370

4.0, 4.1(Note 4)

4.2

382

4.5

Aug. 31, 2021

4,310

3,990

4,350

4.5

4,290

4.4, 4.5(Note 5)

4.7

197

5.1

Aug. 31, 2021

10,1009,710

10,200

4.1

9,900

3.9

4.3

421

4.3

Japan Real
EstateAug. 31, 2021
Institute

16,50016,00016,7004.3

16,300

4.1

4.5

719

5.0

12,40012,40012,5004.0

12,200

3.8

4.2

504

4.3

24,00016,80023,900

4.1

24,000

3.9

4.3

998

4.7

21,06020,655

21,3754.0

20,700

3.8

4.2

856

4.7

11,85010,837

12,037

4.0

11,625

3.8

4.2

486

4.6

6,590

3,360

6,610

4.9

6,570

4.1

5.3

352

6.5

7,190

7,470

7,290

4.1

7,080

3.9

4.3

302

4.5

1,490

1,300

1,510

4.7

1,470

4.5

4.9

72

5.7

7,130

5,800

7,180

4.2

7,110

4.1, 4.3(Note9)

4.4

312

5.1

6,610

4,600

6,680

4.7

6,530

4.5

4.9

328

5.4

3,420

2,880

3,460

4.8

3,380

4.6

5.0

165

5.3

2,680

2,850

2,770

4.7

2,640

4.4, 4.7(Note 10)

4.9

141

5.7

14,40012,60014,800

4.4

14,2004.4, 4.5(Note 11)

4.6

660

4.8

1,720

1,610

1,810

4.3

1,680

4.4

4.5

82

5.0

Japan Real
EstateAug. 31, 2021
Institute
DAIWA
LOGIPORT
REAL
Sagamihara ESTATE
Aug. 31, 2021
APPRAISAL(Note 6)
Corporation
LOGIPORT
Japan RealHashimoto
EstateAug. 31, 2021
Institute(Note 7)
LOGIPORT
Japan Real
Osaka Taisho EstateAug. 31, 2021
Institute(Note 8)Japan RealMJ Logipark
EstateAug. 31, 2021
Funabashi 1
InstituteJapan RealMJ Logipark
EstateAug. 31, 2021
Atsugi 1
InstituteJapan RealMJ Logipark
EstateAug. 31, 2021
Kazo 1
InstituteTanizawa
MJ Logipark Sogo
Aug. 31, 2021
Appraisal
Osaka 1
Co., Ltd.
Japan RealMJ Logipark
EstateAug. 31, 2021
Fukuoka 1
InstituteJapan RealMJ Logipark
EstateAug. 31, 2021
Tsuchiura 1
InstituteTanizawa
MJ Logipark Sogo
Aug. 31, 2021
Nishinomiya 1 Appraisal
Co., Ltd.
Tanizawa
MJ Logipark Sogo
Aug. 31, 2021
Appraisal
Kasugai 1
Co., Ltd.
Tanizawa
MJ Logipark Sogo
Aug. 31, 2021
Appraisal
Kazo 2
Co., Ltd.

Logcross
Narashino

Logistics
Facilities

Appraiser

Direct capitalization
Integrated
DCF method
Appraisal
methodAppraisal value based
Appraisal
NOI
Value basedvalue
on costValue based(Millions NOI Yield (%)
on
directDirectTerminal(Millions of method
on DCF(Note 2)of yen)yen)(Millions of capitalization capitalizati method Discount capitaliz(Note 1)
method
on
rate
rate
(%)
ation
yen)
(Millions of(Millions of(%)
rate (%)
yen)
yen)

-33-

Return priceCategory

Logistics
Facilities

OthersProperty
nameAppraiser

Appraisal
value
date

MJ Logipark Japan Real
EstateAug. 31, 2021
Sendai 1
Institute
MJ Industrial Japan RealPark Sakai
EstateAug. 31, 2021
Institute(Land)
MJ Industrial Tanizawa
Sogo
Park Kobe
Aug. 31, 2021
Appraisal(Land)
Co., Ltd.
MJ Industrial Tanizawa
Sogo
Park ChibaAug. 31, 2021
Appraisal
Kita (Land)
Co., Ltd.
Total

Direct capitalization
Integrated
DCF method
Appraisal
methodAppraisal value based
Appraisal
NOI
Value
based
value
on costValue basedon direct
DirectTerminal (Millions NOI Yield (%)(Millions of method
on DCF(Note 2)of yen)yen)(Millions of capitalization capitalizati method Discount capitaliz(Note1)
methodon raterate (%) ation
yen)(Millions of(Millions of(%)
rate (%)
yen)
yen)
7,510

5,210

7,600

4.8

7,410

4.4

4.8

382

5.2

5,780

-

5,840

3.7

5,710

3.5

3.8

214

3.8

5,690

-

5,750

4.0

5,690

3.9, 4.0(Note12)

4.0

254

5.1

1,970

-

2,020

4.3

1,970

4.2, 4.3(Note13)

4.4

79

4.4

189,300

154,352

191,432-

187,295

-

-

8,268

4.9

Notes:
1. “Appraisal NOI” is the net operating income by the direct capitalization method stated in the appraisal report, rounded down to
the nearest million yen.
2. “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of each
property in each real estate appraisal report, rounded to the first decimal place.
3. “Discount rate” for Logicross Fukuoka Hisayama is assessed from first to fifth year as 4.5% and sixth year and thereafter as
4.7%.
4. “Discount rate” for Logicross Atsugi is assessed first to sixth year as 4.0% and seventh and thereafter as 4.1%.
5. “Discount rate” for Logicross Kobe Sanda is assessed first to sixth year as 4.4% and seventh to 11th as 4.5%.
6. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiary interest ratios (49%).
7. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiary interest ratios (45%).
8. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Osaka Taisho is shown with the values corresponding to the co-beneficiary interest ratios (37.5%).
9. “Discount rate” for MJ Logipark Osaka 1 is assessed first year as 4.1% and second to 11th year as 4.3%.
10. “Discount rate” for MJ Logipark Nishinomiya 1 is assessed first to eighth year as 4.4% and ninth and thereafter as 4.7%.
11. “Discount rate” for MJ Logipark Kasugai 1 is assessed first to second year as 4.4% and third and thereafter as 4.5%.
12. “Discount rate” for MJ Industrial Park Kobe (Land) is assessed first to nintf year as 3.9% and 10th and thereafter as 4.0%.
13. “Discount rate” for MJ Industrial Park Chiba-Kita (Land) is assessed first to fourth year as 4.2% and fifth and thereafter as 4.3%.

-34-

(v) Information Regarding Major Real Estate Properties
The following summarizes the properties where “annual rent” represents 10% or more of the total portfolio annual
rent as of Aug. 31, 2021.
Annual rent (Millions of yen)
(Note 1)
1,282
969

Property name
LOGIPORT Sagamihara (Note 3)
LOGIPORT Hashimoto (Note 4)

Percentage of rent(%) (Note 2)
13.3
10.0

Notes:
1. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Aug. 31, 2021.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Aug. 31, 2021, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Aug. 2021 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofAug. 31, 2021 shall not be included.
2. “Percentage of rent” is the ratio of that property’s total annual rent to the total portfolio annual rent, rounded to the nearest
tenth.
3. “Annual rent” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiary interest ratios (49%).
4. “Annual rent” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiary interest ratios (45%).

(vi) Information Regarding Major Tenants
The following summarizes the major tenant where “leased area” represents 10% or more of the total portfolio
leased area as of Aug. 31, 2021.

Tenant Name

IHI
Infrastructure
Systems Co.,Ltd

Annual rent
Leased Percentage
Lease
Percentage
area (㎡) of area (%) expiration(Millions ofof rent (%)yen)(Note 2)
(Note 3)date

Type of industry(Note 1)

Property name

Manufacturing of
metal products forconstruction(excluding steel
frame)

MJ Industrial Park Sakai(Land)

Not
disclosed(Note 4)Not
disclosed(Note 4)87,476.71

10.9

Not
disclosed(Note 4)

Notes:
1. ”Type of industry” refers to the report from the TOKYO SHOKO RESEARCH, LTD.
2. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Aug. 31, 2021,
based on the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicatedin the lease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. “Percentage of area” refers to the floor area leased to end tenant as a proportion of total leased area. Figures are rounded to
the nearest tenth.
4. Not disclosed as the tenant’s consent has not been obtained.

-35-

(vii) Property Distribution
a. Distribution by category
Number ofproperties

Category
Logistics facilities
Others
Total

Acquisition price (Millions of yen)
(Note 1)19
322

Investment Ratio (%)(Note 2)

158,033
12,370170,404

92.7
7.3
100.0

Notes:
1. “Acquisition price” represents the purchase price of each property or beneficiary right in trust as set forth on the relevantpurchase agreement and does not include expenses such as consumption taxes, and is rounded down to nearest million yen.
Same applies below (vii) Property Distribution.
2. “Investment ratio” is calculated by dividing the acquisition price for each property by the total acquisition price and is rounded
to the nearest hundredth. Thus, the sum of the figures in total may not add up to the figure in the total column. Same applies
below (vii) Property Distribution.

b. Distribution by region<Based on total floor area (Note 1)>

9
5
2
3
19

Total floor area(㎡)
(Note 2)488,930.31
219,604.88
130,612.51
112,734.31
915,882.01

10
7
2
3
22

Acquisition price(Millions of yen)
79,75043,27028,094
19,288170,404

Number ofproperties

RegionTokyo metropolitan area (Note 3)
Osaka metropolitan area (Note 4)
Nagoya metropolitan area (Note 5)
Others
Total<Based on acquisition price>

Number ofproperties

RegionTokyo metropolitan area (Note 3)
Osaka metropolitan area (Note 4)
Nagoya metropolitan area (Note 5)
Others
Total

Ratio (%)
51.4
23.1
13.7
11.8
100.0
Investment
ratio (%)
46.8
25.4
16.5
11.3
100.0

Notes:
1. MJ Industrial Park Sakai (Land), MJ Industrial Park Kobe (Land)and MJ Industrial Park Chiba-Kita (Land) are not included in thecalculation.
2. “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the main building andannex. If there is more than one main building, the total floor area is the sum of the total floor area for each main building.
Same applies below (vii) Property Distribution.
3. Tokyo metropolitan area refers to Tokyo, Kanagawa, Chiba, Saitama and Ibaraki prefectures.
4. Osaka metropolitan area refers to Osaka, Hyogo, Kyoto, Nara and Shiga prefectures.
5. Nagoya metropolitan area refers to Aichi, Mie and Gifu prefectures.

c. Distribution by property age (Note 1)
Number of
Property age
properties(Note 2)Less than 5 years
5 years or more andless than 10 years
10 years or more
Total

Total floor area(㎡)

Ratio (%)

Acquisition price(Millions of yen)

Investment
ratio (%)

7363,490.08

38.2

72,51245.9

5425,465.35

44.7

55,12034.9

7
19

162,926.58
951,882.01

17.1
100.0

30,400
158,033

19.2
100.0

Notes:
1. MJ Industrial Park Sakai (Land), MJ Industrial Park Kobe (Land)and MJ Industrial Park Chiba-Kita (Land) are not included in thecalculation.
2. “Property age” is calculated based on the date recorded in the register up to Aug. 31, 2021.

-36-

d. Distribution by total floor area (Note)
Total floor area
Less than 10,000㎡
10,000㎡or more and less than 30,000㎡
30,000㎡ or more
Total

Number ofproperties
2
6
11
19

Total floor area
Acquisition price Investment
Ratio (%)(㎡)
(Millions of yen)ratio (%)
14,951.24
1.6
2,909
1.8
118,261.78
12.4
30,00919.0
818,668.99
86.0
125,11479.2
951,882.01
100.0
158,033
100.0

Note: MJ Industrial Park Sakai (Land), MJ Industrial Park Kobe (Land)and MJ Industrial Park Chiba-Kita (Land) are not included in thecalculation.

e. Distribution by lease term
Lease term
(Note 1)
10 years or more
7 years or more and less than 10 years
5 years or more and less than 7 years
Less than 5 years
Total

Annual rent
(Millions of yen) (Note 2)(Note 3)
4,354
361
3,211
1,725
9,653

Ratio (%)
45.1
3.7
33.3
17.9
100.0

Notes:
1. “Lease term” is calculated as the weighted average lease term indicated in the relevant lease agreements for each property or
property in trust as of Aug. 31, 2021, by the rent and figures are rounded to the first decimal place. It does not include theleased area indicated in the lease agreements concerning shops, vending machines, photovoltaic power generation facilities
and parking lots.
2. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Aug. 31, 2021.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Aug. 31, 2021, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Feb. 2021 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofAug. 31, 2021 shall not be included. Same applies below (vii) Property Distribution.
3. LOGIPORT Sagamihara, LOGIPORT Hashimoto and LOGIPORT Osaka Taisho is shown with the values corresponding to the cobeneficiary interest ratios (49%, 45% and 37.5% respectively). Same applies below (vii) Property Distribution.

f. Distribution by remaining lease term
Remaining lease term
(Note)
7 years or more
5 years or more and less than 7 years
3 years or more and less than 5 years
1 year or more and less than 3 years
Less than 1 year
Total

Annual rent
(Millions of yen)

Ratio (%)
2,125
591
2,187
3,388
1,359
9,653

22.0
6.1
22.7
35.1
14.1
100.0

Note: “Remaining lease term” is calculated as the weighted average remaining lease term indicated in the relevant leaseagreements for each property or property in trust as of Aug. 31, 2021, by the rent and figures are rounded to the firstdecimal place. It does not include the leased area indicated in the lease agreements concerning shops, vending machines,
photovoltaic power generation facilities and parking lots.

-37-

(viii) Details of Collateral
Not applicable(ix) Capital Expenditure for Owned Properties
a. Future plans for capital expenditure
The following summarizes the major capital expenditure plans in connection with scheduled renovations and otherwork for properties owned by MEL. Estimated construction cost includes the amounts to be expensed for accounting
purposes.

Property name
(Location)
MJ Logipark Kazo 1(Kazo, Saitama)PurposePlanned period

Repair work ofelevator

From Nov. 2021
to Feb. 2022

Estimated construction cost
(Millions of yen) (Note)
Total
Paid during the
Total amountamount reporting period
already paid
12

-

-

Note: Figures are rounded down to the nearest million yen.

b. Capital expenditure incurred for the reporting fiscal period
MEL conducted construction work worth 310 million yen in the reporting fiscal period which is a sum of capital
expenditures of 168 million yen and repair and maintenance expenses of 142 million yen.

Property name
(Location)

PurposePlanned period

Construction cost
(Millions of yen)
(Note)

MJ Logipark Funabashi 1(Funabashi, Chiba)

Repair work ofoffice building

From Mar. 2021
to Aug. 2021

59

Note: Figures are rounded down to the nearest million yen.

c. Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans

Reserved balance at the
beginning of the period
Reserved amount during
the period
Reversal of reserved
amount during the period
Reserved balance at theend of the period

Seventh fiscal
periodEighth fiscal
periodMar. 1, 2019 toAug. 31, 2019

Sept. 1, 2019 toFeb. 29, 2020

Mar. 1, 2020 toAug. 31, 2020

238,887

297,841

376,229

448,139554,768

58,95478,38871,910106,629

104,527

-

-

-

-

-

297,841

376,229

448,139554,768

659,295-38-

Ninth fiscal
period(Thousands of yen)
10th fiscal
periodSixth fiscal
periodSept. 1, 2020 to Mar. 1, 2021 toFeb. 28, 2021
Aug. 31, 2021

(x) Overview of Property Leasing and Status of Operating Income
10th fiscal period from Mar. 1, 2021, to Aug. 31, 2021
(Units: Thousands of yen)

Property name

Logicross
Fukuoka
Hisayama

LogicrossAtsugi

Logicross
Kobe Sanda

Logicross
Osaka

Logicross
NagoyaKasadera

Operating days

184 days

184 days

184 days

184 days

184 days(A) Property related revenues

493,647

Property revenues
Other property related
revenues

461,613(B) Property related expenses

179,284

Facility management fee

40,456

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

32,033Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

34,955743
3,021

Utilities cost

21,140

Custodian fee

149

Other expenses

2,298
43,807

34,771

16,21453,00676,517

120,379

155,887

83,948

149,766

314,362

164,186

190,659

100,162

202,773

390,880

Property name

Logicross
Narashino

LOGIPORT
Sagamihara

LOGIPORT
Hashimoto

LOGIPORT
Osaka Taisho

MJ Logipark
Funabashi 1

Operating days

176 days

184 days

184 days

184 days

184 days(C) Depreciation(D) Property related income(=A-B)(E) NOI (=C+D)(A) Property related revenues

692,479

522,003

282,593

Property revenues

641,271

485,134

267,357

Other property related
revenues

51,20836,86815,235(B) Property related expenses

271,206

190,857

108,387

41,96427,98812,56456,95443,297996

726

33,260 Not disclosed(Note)
517

11,487

5,398

1,905

Utilities cost

31,57521,50910,728Custodian fee

61

56

37

10,527823

320

51,786

117,638

91,05649,052

41,746

218,946

421,273

331,145

174,205

123,150

270,733

538,912422,202223,258

164,896

Facility management fee
Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed(Note)

Other expenses(C) Depreciation(D) Property related income(=A-B)(E) NOI (=C+D)

Note: Not disclosed as the tenant’s consent has not been obtained-39-

(Units: Thousands of yen)
Property name

MJ Logipark
Atsugi 1

MJ Logipark
Kazo 1

MJ Logipark
Osaka 1

MJ Logipark
Fukuoka 1

MJ Logipark
Tsuchiura 1

Operating days

184 days

184 days

184 days

184 days

184 days(A) Property related revenues

212,612

Property revenues

198,895

Other property related
revenues

13,716(B) Property related expenses

117,512

Facility management fee

9,040

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed Not disclosed(Note)(Note)

Not disclosed(Note)

13,800 Not disclosed(Note)
402
24,121

Utilities cost

9,047

Custodian fee

240

Other expenses

324(C) Depreciation

33,16010,423

39,10660,534

12,894(D) Property related income(=A-B)

118,771

26,355105,575

95,09970,177(E) NOI (=C+D)

151,932

36,779144,681

155,634

83,071

Property name

MJ Logipark
Nishinomiya 1

MJ Logipark
Kasugai 1

MJ Logipark
Kazo 2

MJ Logipark
Sendai1

MJ Industrial
Park Sakai(Land)

Operating days

184 days

184 days

184 days

184 days

184 days(A) Property related revenues

241,340

Property revenues
Other property related
revenues

212,369(B) Property related expenses

157,953

28,971

Facility management fee
Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

15,159Not disclosed Not disclosed(Note)(Note)

Not disclosed(Note)

20,738 Not disclosed(Note)
412
48,888

Utilities cost

11,924

Custodian fee

290

Other expenses

652(C) Depreciation(D) Property related income(=A-B)(E) NOI (=C+D)

12,096

69,798

7,603

59,887-47,879215,804

27,93583,386

107,328

59,975

285,60335,538143,274

107,328

Note: Not disclosed as the tenant’s consent has not been obtained-40-

(Units: Thousands of yen)
Property nameOperating days

MJ Industrial MJ Industrial
Park Kobe Park Chiba-Kita(Land)(Land)

176 days

166 days

Total(A) Property related revenues

4,953,086

Property revenues

4,720,745

Other property related
revenues

232,341(B) Property related expenses

1,801,259

Facility management fee

208,222

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed(Note)

Not disclosed(Note)

407,913
7,306
142,071

Utilities cost

131,715

Custodian fee

3,676

Other expenses

19,251(C) Depreciation--

881,103(D) Property related income(=A-B)

121,722

38,723

3,151,826(E) NOI (=C+D)

121,722

38,723

4,032,930

Note: Not disclosed as the tenant’s consent has not been obtained-41-