Fiscal Period Ended
August 31, 2022
Securities Code：3481

Asset Management Company
November 1, 2022

Table of Contents
1. Summary of 6th Follow-on Offering

4

2. Financial Results and Forecasts

7

3. Growth strategy

10

4. ESG Initiatives

16

5. Mid-to Long-Term Growth Strategy

19

6. Appendix

21

LOGIPORT Kawasaki Bay

Highlights Since April 2022

Hybrid External Growth⚫ Successfully completed the second global offering in October to acquire 8 properties worth 45.4 bn yen withsponsor-developed and MIJA-sourced properties. Expanded the asset size to 32 properties worth 261.6 bn yen⚫ Achieved stabilized DPU growth after the global offering of 7,832 yen+6.0% (vs Pre-Offering) +13.3% (YoY) (Note 1)

Hybrid Internal Growth⚫ Achieved rent growth for 10 consecutive fiscal periods with steady leasing strategy and maintained theits upward trend(Note 2)Average rent growth
12th FP +5.3%
13th FP +5.0%⚫ Achieved internal growth through MJIA’s unique initiatives including reducing cost by self-consumption ofsolar power

Financial Strategy⚫ Upgraded in JCR credit rating from AA- (Positive) to AA (Stable)⚫ Achieved external growth to increase unitholder value with funding utilizing low LTV

ESG⚫ Attained GRESB Real Estate Assessment 5 Stars (the highest rating) for 3 consecutive years⚫ Promoting ESG finance through Green Loan and Sustainability Linked Loan funding

Note 1: Calculated as of Oct. 14, 2022. when 6th Follow-on offering was resolved.
Note 2: Average rent growth for the leases is expired or will be expired during the relevant period.

2

Management Policy based on “Three Pillars” (Amended in Oct. 2021)
Maximization of Unitholder Value in Mid- to Long-term

Measures continued from the past andto be taken in the future

Alignment

Discipline

HybridAlign interest with unitholders

Achieve disciplined growth

Enhance MEL’s unique strategy
Hybrid Model

ESG

Initiatives to Accomplish
KPIs and Targets

External growth utilizing LTV

Hybrid external growth（Supply of properties fromboth Sponsor and MJIA)

ESG

Promotion of efforts for
low-carbon

Property acquisition with attention to
portfolio NOI yield and implied cap rate

Hybrid internal growth(Utilizing management capability of
MJIA and leasing capability of Sponsor)

Further inclusion in major indicesand improvement in liquidity
New
ESG
ESG
ESG

Measuresexecuted andachieved

ESG
ESG
ESG
ESG

Flexible property acquisition strategy utilizing bridge funds

More in-depth ESG commitment anddiversification of financing methods through green financing
Support from Sponsor
and continued investment

Flexible financing, carefully watching
the market conditions

Expanding pipelines through MJIA’svarious sourcing methods,
such as CRE proposals and PDP
Track record in PM consignmentand built-up knowledge throughutilization of technology at Sponsor Group✓ Continued growth through execution of follow-on offerings based on “Three Pillars” (Oct. 2022, Mar. 2022, Mar. 2021,
Sep. 2020 and Oct. 2019)✓ Acquisition of the highest rating “5 Stars” from GRESB for three consecutive years (Oct. 2022, Oct. 2021 and Nov. 2020)✓ Supported the recommendation by the TCFD and Established KPI and Targets (Dec. 2021)✓ Introduction of cumulative investment for employees of Sponsor and MJIA (Mar. 2021)✓ Inclusion in the FTSE EPRA Nareit Global Real Estate Index Series (Jun. 2020)✓ Introduction of the asset management fee structure fully linked to unit price performance, first among J-REITs (May 2019)3

Summary of the 6th Follow-on OfferingOverview of the 6th Follow-on Offering
Offering Type

Global Offering（Reg.S+144A）

Launch Date

Oct. 14, 2022

Pricing Date

Oct. 19, 2022

Issue Price

394,875 yen

Number of Units

Public Offering: 51,000 units（Including for the sponsor: 2,200 units）

No. of properties

8

Third-party Allotment: 2,550 units (Maximum)
Total Capital Raised 20.4 bn yen (Maximum)

Total (Anticipated)
Acquisition Price

45.4 bn yen

Properties

Average Appraisal
NOI Yield

4.5

Average Occupancy
Rate％

MJIA-sourced only:

5.0%

100.0

％

Total Appraisal
Value

50.6

bn yenAverage Building
Age

2.7

years

Sponsor-developed (Jointly)

Sponsor-developed (Jointly)

Sponsor-developed (Independently)

LOGiSTA･LogicrossIbaraki Saito (A) (45%)

LOGiSTA･LogicrossIbaraki Saito (B) (45%)

Logicross Yokohama Kohoku

MJ Logipark Funabashi 2(Note2)

Acquisition price: 15,150 mn yen
Appraisal NOI yield: 4.2%

Acquisition price: 3,900 mn yen
Appraisal NOI yield: 4.3%

Acquisition price: 7,821 mn yen
Appraisal NOI yield: 4.1%

Anticipated acquisition price: 4,880 mn yen
Appraisal NOI yield: 5.3%

MJIA-sourced (PDP)

MJIA-sourced (PDP)

MJIA-sourced (CRE)

MJIA-sourced (PDP)

MJIA-sourced (CRE)

MJ Logipark Inzai 1

MJ Logipark Takatsuki 1

MJ Logipark Higashi Osaka 1

MJ Industrial Park Kawanishi (Land)

Acquisition price: 4,353 mn yen
Appraisal NOI yield: 5.1%

Acquisition price: 5,500 mn yen
Appraisal NOI yield: 4.8%

Acquisition price: 1,687 mn yen
Appraisal NOI yield: 5.3%

Acquisition price: 2,125 mn yen
Appraisal NOI yield: 4.4%

Note1：Calculated as of Oct. 14, 2022, when the 6th Follow-on offering was resolved. However, Total Capital Raised is calculated based on the Amount to be paid in determined on Oct. 19, 2022.
Note2：To be acquired on Dec. 1, 2022.

5

Effects of the 6th Follow-on Offering
Tax-stabilized DPU

Asset Size（bn yen）（yen）+91.2 bn yen

300

261.6 bn yen+13.3%
7,392 yen

216.2 bn yen
200

7,000

170.4 bnyen

100

6,910 yen

+６.0%

6th
Follow-on
Offering

5th
Follow-on
Offering

7,832 yen

8,000

+ 45.4 bn yen

+7.0%
6,000

+ 45.8 bn yen

0

FP 2022/2

FP 2022/8

Post-6th
Follow-on Offering

NAV per Unit

Pre-5thFollow-on Offering

Pre-6thFollow-on Offering

Post-6th
Follow-on Offering

LTV・Acquisition Capacity（yen）+10.4%

400,000

386,416 yen
375,616 yen

375,000

350,000

5,0000+2.9%

350,110 yen

LTVPre-6th Follow-on Offering

Forecasted LTV
Aug. 2023（14th FP）

35.４%

38.2%

Acquisition
Capacity
with
50%
LTV
●bn
yen

64 bn yen

+7.3%
325,0000
300,000

FP 2022/2

FP 2022/8

FP 2023/2

Note：Calculated as of Oct.14, 2022, when the 6th Follow-on offering was resolved. NAV per unit for FP 2023/2 and Forecasted LTV for the fiscal period ending Aug. 2023 (14th FP) and Acquisition Capacity
are calculated with the forecast based on Nov.1, 2022.

6

Financial Results and Forecasts

Financial Results for the Fiscal Period Ended Aug. 2022
Operating Results (mn yen)

FP Ended
Feb. 2022
Actual(11th FP)(A)FP EndedAug. 2022
Actual(12th FP)(B)

5,028

6,276

Operating Rental Revenues

5,028

Operating Rental Expenses(excluding depreciation)

Difference（B）－（A）

1(As of Apr. 15,2022)(12th FP)

+1,247

6,198

6,276

+1,247

6,198

857

1,125

+267

1,039

4,171

5,151

+980

5,158

Depreciation

886

1,095

+209

1,100

General and Administrative Expense

644

725

+81

725

2,640

3,329

+689

3,332

-99

-349

-250

-373

Ordinary Income

2,541

2,980

+439

2,958

Net Income

2,540

2,979

+439

2,957

Operating Revenues

NOI

Operating Income

Non operating profit and loss

2

3

Distributions Per Unit (yen)Distributions Per Unit
(including SCD)
Distributions Per Unit
(excluding SCD)
Surplus Cash Distributions (SCD)Per Unit
Number of investment units issued andoutstanding (units)

Main Factors of Variance11th FP Actual vs. 12th FP Actual

FP Ended Aug.
2022 Forecast

7,174

7,353

+179

7,307

6,495

6,623

+128

6,574

679

730

+51

733

391,135

449,935+58,800

449,935

1（Contribution to Net Income）

・Increase in revenue from properties
acquired in 12th FP+1,164mn yen

・Rent increase and others from existing
properties+83mn yen

Increase in utility income
Rent increase
Increase in other income+42mn yen
+24mn yen
+15mn yen

2・Increase in Operating Revenue (above①)
・Increase in expenses fromproperties acquired in 12th FP+1,247mn yen

Increase in depreciation
Increase in Operating expenses-318mn yen-205mn yen-113mn yen

・Increase in expenses from exisiting properties
Property tax for properties acquired in 10th FP
Increase in utility cost
Increase in rapair cost

-158mn yen

・Increase in general and administrative expenses-81mn yen

-67mn yen
-50mn yen
-41mn yen

3・Increase in Operating Income (above②)+689mn yen

・Decrease in non-operating profit and loss

-250mn yen

Increase of investment unit issuance expenses-163mn yen

Increase in interest paid

-64mn yen

Properties Acquired in 12th FP

Other Statistics

Total Acquisition Price 45.8 bn yen

AFFO (mn yen)

3,298

3,898

+599

3,776

LOGIPORT Kawasaki Bay

AFFO payout ratio

85.1%

84.9%

-0.2%

87.1％

（45% co-ownership interest)

LTV

32.4%

36.0%

+3.6%

36.0％

NAV per unit (yen)350,110375,616+25,506-

Average Occupancy

99.7%

99.8%

+0.1%

99.7%

Logicross Atsugi Ⅱ

8Forecasts for the Fiscal Periods Ending Feb. 2023 and Aug. 2023
Operating Results (mn yen)

Operating Revenues
Operating Rental Revenues

FP EndedAug. 2022
Actual(12th FP)(A)FP EndingFeb. 2023
Forecast(13th FP)(B)

6,276

7,099

6,276

7,099

Difference（B）－（A）

1(Reference)
FP Ending Aug.
2023 Forecast(14th FP)

+822

7,455

+822

7,455

Operating Rental Expenses(excluding depreciation)

1,125

1,175

+50

1,456

NOI

5,151

5,924

+772

5,999

1,095

1,244

+148

1,318

725

853

+127

928

Depreciation
General and Administrative Expense
Operating Income
Non operating profit and loss
Ordinary Income
Net Income

2

1

Distributions Per Unit
(excluding SCD)

Surplus Cash Distributions (SCD)Per Unit
Number of investment units issued andoutstanding (units)+781mn yen

・Rent increase and others from existing
properties+41mn yen・Increase in Operating Revenue (above①)+822mn yen

・Increase in expenses fromproperties (to be) acquired during 13th FP-169mn yen

2

Increase in depreciation
Increase in operating expenses-143mn yen-25mn yen

-349

-427

-77

-256

Increase in leasing fee-13mn yen

2,980

3,399

+418

3,495

Increase in utility cost

-10mn yen

Increase in depreciation

3

+418

2

3,494

・Increase in expenses from existing properties

・Increase in general and administrative
expenses3

Distributions Per Unit (yen)Distributions Per Unit
(including SCD)

・Increase in revenue from properties(to be) acquired during 13th FP

3,826

3,398

3,751

（Contribution to Net Income）

1

3,329

2,979

+496

Main Factors of Variance12th FP Actual vs. 13th FP Forecast

7,353

7,628

+275

7,832

6,623

6,749

+126

6,939

730

879

+149

893

449,935

503,485+53,550

503,485

Other Statistics
AFFO (mn yen)

3,898

4,487

+589

4,523

AFFO payout ratio

84.9%

85.6%

＋0.7％

87.2％

LTV

36.0%

37.7%

+1.7%

37.3％

Average Occupancy

99.8％

100.0％

+0.1％

99.2%

(Note)

・Increase in operating income(above②)
・Decrease in non-operating profit and loss

1

-29mn yen

-5mn yen-127mn yen+496mn yen-77mn yen

Increase in interest paid

-42mn yen

Increase in investment unit issuance expenses-30mn yen

Main Factors of Variance13th FP Forecast vs. 14th FP Forecast（Contribution to Net Income）

・Full contribution from properties＋356mn yen(to be) acquired during 13th FP
・Increase in expenses such as property tax for-430mn yen
properties (to be) acquired during 12th and 13th

2・Loss of investment unit issuance expenses
for the 13th FP+194mn yen(Note) Forecast LTV is 38.2% as of Nov. 1, 2022 due to a change in the total amount of borrowing.

9Growth Strategy

Strategy for Achieving Hybrid External Growth
Asset Size (Post-Acquisition): 261.6 bn yen
Sponsor-developed：176.8bn yen（67.6%）

MJIA-sourced： 84.7bn yen（32.4%）
Properties (to be) Acquired during 13th FP

Sponsor-developed

MJIA-sourced

Average Appraisal NOI Yield: 4.5%

Average Appraisal NOI Yield: 5.1%

Acquisition of Sponsor-developed modern
and state-of-the-art properties at fair prices

Sponsor’s Independent Development• MEC obtains comprehensive land information

through its customer networks supported bybranches and group-wide information sharing

PDP (Partnership Development Program)Total acquisition price:
71.7 bn yen
Avg. Appraisal NOI Yield: 4.6%

• MEC carries out challenging development projects

Logicross
Yokohama
KohokuLogicross
NagoyaKasadera

Sponsor’s Joint Development
properties with general trading conglomerates,
other real estate developers and foreign-affiliatedfunds, leveraging the MEC Group’s credibility,
abilities in coordination among various
stakeholders and expertise in development

Total acquisition price:105.0 bn yen
Avg. Appraisal NOI Yield: 4.5%

• MEC plans to continue joint development projects

LOGiSTA･
LOGIPORT
Logicross Ibaraki Kawasaki Bay
Saito (A and B)

under win-win relationships with various partners• MJIA leads the project in a manner that balances
the requirements of each partner• MEL can preferentially consider acquisition after
the building is completed and leased up

MJIA arranges entire development
process by matching each partner’s needs

which involve coordination with public administrationand stakeholders and land consolidation of multiple
property owners by leveraging MEC Group’s
advanced development capabilities• MEC engages in joint development of logistics

Acquisition of properties on favorable terms byleveraging MJIA’s well-contemplated strategy

Total (anticipated) acquisition
price: 14.7 bn yen
Avg. Appraisal NOI Yield: 5.1%

MJ Logipark
Takatsuki 1

MJ Logipark
Inzai 1

Seller Broker Tenant Constructor Developer
MJ Logipark Funabashi 2

CRE (Corporate Real Estate)• Properties are acquired based on strategic
proposals tailored to the portfolio of the seller,
leveraging the credibility of MEC Group and the
network of MJIA

Total acquisition price:23.4 bn yen
Avg. Appraisal NOI Yield: 4.8%

• Some properties may be inspected and evaluatedfor their location's suitability for logistics facilities
with consideration for possibilities of future
redevelopment

MJ Logipark
MJ Industrial Park
Higashi Osaka 1 Kawanishi (Land)

Bridge Scheme (Bridge Fund / 3rd Party Bridge)• Optimal Bridge Scheme is chosen taking into account the timing, cost and size of acquisition, and information sources, etc.
• MEL will acquire properties when the conditions for acquisition are optimal. The acquisition price can be adjusted along with reduction in book value at thebridgeNote：Calculated as of Oct. 14, 2022, when the 6th Follow-on offering was resolved.

11

Pipeline to Realize External Growth Strategy
Aim for further external growth leveraging 12 properties (with expected preferential negotiation rights) with total
floor area of 708,000m2 including 7 completed properties with total floor area of 241,000m2
Properties (to be)
Acquired during
13th FP
Sponsor-developed properties
with expected preferential
negotiation rights

until FP2022/8

Logicross Yokohama Kohoku

100%
Occupancy

16,000m2

Completedin 2019

Logicross Hasuda

100%
Occupancy

79,000m2

Completedin 2021

LOGiSTA･Logicross Ibaraki Saito (A)100%
Occupancy

108,000m2

Completedin 2021

LOGiSTA･Logicross Ibaraki Saito (B)100%
Occupancy

31,000m2

Completedin 2021

Logicross Kasukabe100%
Occupancy

39,000m2

Completedin 2021

Logicross Funabashi

100%
Occupancy

23,000m2

Completedin 202144,000m2

Completedin 2022

20,000m2

Development

Logicross Zama Komatsubara

Brand of logistics facilities
MEC develops throughout Japan

NEW
NEW

MJIA-sourced properties withexpected preferential
negotiation rights

MJ Logipark
Brand of logistics facilities which MEL
acquired or intends to acquire fromthird parties*Tentative name100%
Pre-leased

Logicross Osaka Katano

Logicross

Schedule

Total Floor
Area (approx.)

Property Name

Logicross Zama

178,000m2

Logicross Sagamihara

170,000m2

Logicross Misato*

53,000m2

Osaka Suminoe Shibatani Cold Storage Project*

42,000m2

FP2023/2

FP2023/8

FP2024/2

FP2024/8 and after

Included inbridge scheme
Included inbridge scheme

Logicross Hasuda

Completion Planned
November 2022
Completion
PlannedNovember 2023

Development

Logicross Zama

Completion Planned
December 2023

Development

Construction andDevelopment (Planned)

Completion Planned
2025
Completion Planned
January 2025

MJ Logipark Higashi Osaka 1

CRE

100%
Occupancy

10,000m2

Completedin 1991

MJ Logipark Takatsuki 1

PDP

100%
Occupancy

20,000m2

Completedin 2021

MJ Logipark Inzai 1

PDP

100%
Occupancy

20,000m2

Completedin 2021

MJ Logipark Aisai 1*

PDP

100%
Occupancy

10,000m2

Completedin 2022

MJ Logipark Funbashi 2

PDP

100%
Occupancy

19,000m2

Completedin 2022

MJ Industrial Park Kawanishi (Land)

CRE

100%
Occupancy

9,000m2

MJ Logipark Kakogawa 1*

PDP

100%
Occupancy

33,000m2

Completedin 2022

MJ Logipark Daito 1*

PDP

100%
Occupancy

11,000m2

Completedin 2022

Total (Excluding Properties to be Acquired)

708,000㎡

241,000㎡

Included inbridge scheme

Logicross Sagamihara

Included inbridge scheme

MJ Logipark Kakogawa 1*

20,000㎡

0㎡

349,000㎡

95,000㎡

Note: MEC Group-developed properties with expected preferential negotiation rights and MJIA-sourced properties with expected preferential negotiation rights arehighlighted in blue and in green, respectively as of Nov. 1, 2022

12

Internal Growth Strategy
Rent Revision Track Record and Lease Agreement Expiration Schedule (Note 1)

Floor area of tenants whose
warehouse lease agreements are
set to expire

Achieved rent growth for 10 consecutive fiscal periods through FP 2023/2 (13th FP)
with upward trend expected to continue for FP 2023/8 (14th FP)
Upward rent revision (left axis)
Rent unchanged (left axis)

Undecided (left axis)
Average occupancy rate in fiscal period (right axis)

Average Rent Growth（㎡）
120,000

99.9% 99.9% 99.9% 99.9% 99.9% 99.8% 99.8% 99.7% 99.8%

100%
Targeting +5％98%

90,000+0.2%

60,000+6.5% +5.3%

0

96%

+3.1%

94%

+13.9%

30,000+5.0%

Aiming forrent increase+8.7%+2.2% +9.5%+1.8%

Aug. 31,2018(4th FP)

Feb. 28,2019(5th FP)

Aug. 31,2019(6th FP)Feb 29,2020(7th FP)

Aug. 31,2020(8th FP)

92%

Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31,
2021
2021
2022
2022
2023
2023
2024
2024
2025
2025
2026
2026
2027
2027
2028
2028
2029
2029
2030
2030
(9th FP) (10th FP) (11th FP) (12th FP) (13th FP) (14th FP) (15th FP) (16th FP) (17th FP) (18th FP) (19th FP) (20th FP) (21st FP) (22nd FP) (23rd FP) (24th FP) (25th FP) (26th FP) (27th FP) (28th FP)

90%

MJIA’s Unique Initiaves⚫

Reducing costs by reviewing fire insurance
contract
Reduction of insurance costs by adopting insurance which covers
the entire MJIA‘s assets under management

Annual estimatedcost reduction:⚫

⚫

Improvement in profitability through LED installation
LOGIPORT Sagamihara, LOGIPORT Hashimoto
MJ Logipark Fukuoka 1, MJ Logipark Nishinomiya１⚫

Increased revenue from installing solar panels on roofs
MJ Logipark Atsugi 1, MJ Logipark Fukuoka 1⚫

Increase tenant satisfaction and revenue throughadditional parking
LOGIPORT Osaka Taisho, MJ Logipark Sendai 1⚫

Cost reduction by reviewing building and land fixed
asset valuation
Logicross Atsugi, LOGIPORT Sagamihara
LOGIPORT Osaka Taisho, MJ Logipark Funabashi 1
MJ Logipark Kazo 1

Approx.

2.3 mn yen

Reducing costs by introducing
self-consumption of solar panels
LOGIPORT Kawasaki Bay

Annual estimated cost
reduction in electricity
purchase:

Approx.

30 %Fixed-term
Lease Ratio (Note 2)

100%

Average Remaining
Lease Term (Note 2)

6.6 years

Note 1: as of Sept. 1, 2022
Note 2: as of Aug. 31, 2022. However, Properties (to be) Acquired during 13th FP are included.

13

Impacts of Inflation on MEL Profit/Loss
Impact on Operating Rental Revenues

Impact of Rising Energy Costs

Inflation-resistant Portfolio with Long-term Stability

Minimal Impact of Rising Energy Costs on MEL’s P/L

Remaining Lease Term by Property Type (Based on Leased Area)

Classification of Utility Cost Burden by Property Type
（Based on total floor area）（m2）

Multi (excluding whole-building leases): Avg.3.0 years
BTS/Land/Single: Avg. 11.2 years

450,000

BTS/
底地

マルチ

82.8%

300,000(Ratio to the totalleased area)

38%

17.2%

25%

150,000

13%

00%less than

3yrs or more

5yrs or more

7yrs or more

more than

3yrs- less than- less than- less than

10yrs

5yrs

7yrs

10yrs

Multi-tenant (excluding whole-building leases)
Remaining term ofRent increase according to theless than 5 years
rent gap with the market level
80.9%⚫ Reflect the rising trend of market rent by renewing contracts with shorter
contract terms⚫ Minimize impact under the market with the concern for inflation

BTS/Land/Single
Remaining term of
5 years or more
70.7%

Common area

Long-term operation withstability and efforts toaddress inflation⚫ Achieve long-standing stability through longer-term lease contracts which
generate rental income more resistant to downward pressure⚫ Handle inflation impacts by incorporating contract provisions which allow for
rent revision in the middle of the contract period

Tenants bearing cost
including common area

Exclusive area

Tenants bearing
cost on wholebuilding

Multi-tenant(excluding whole-building leases)
61.1%

4.6%

Burdenon MEL

52.8%

Tenant Indirect burden
Paid in advance by MEL

Limitedburden on MEL

Chilled and Frozen

BTS / Single-tenant
38.9%
35.9%

3.6%

3.1%

Tenant direct burden
Tenant pays utilities cost directly

Utility expenses is charged
directly to the tenants

Ratio of Utilities P/L to NOI

0.2％
FP2022/2（Actual）-0.4％
Increase in cost burdenwith energy price rising

FP2023/8(Forecast)Measures to control utilities P/L⚫ Review tenant invoicing prices and practices⚫ Review power purchase agreements and power providers⚫ Reduce use of electricity-Installation of LED lighting-Self-consumption of solar power, etc.

Note：As of Aug. 31, 2022. However, Properties (to be) Acquired during 13th FP are included

14

Financial Strategy
Financial Highlight (As of Dec. 14, 2022)
Long-term Debt Ratio

Average Remaining
Debt Duration

Fixed Interest Rate Ratio(all / excluding short-term)

93.1 ％

91.3 %

Credit Rating (JCR)

Forecasted LTV

5.4 years /5.8 years
Green Finance (Debt) Amount/ LTV-based Green Finance(Debt) Capacity(FP 2023/8 (14thFP))

AA（stable）

38.2 %

Approx.

14.0/72.5 bn yen

0.49 %/ 0.52 %Debt Capacity(LTV up to 50%)
Approx.

64.0 bn yen

Debt Maturity ScheduleLenders
三菱UFJ銀行
MUFG Bank, Ltd.

18.2%

みずほ銀行
Mizuho Bank, Ltd.

14.3%

（mn yen）

Sumitomo Mitsui
三井住友銀行Banking Corporation

10.4%

農林中央金庫The Norinchukin Bank

7.6%

18,000

りそな銀行
The Resona Bank, Ltd.

5.5%

信金中央金庫
Shinkin Central Bank

5.4%

Total Debt

The Bank of Fukuoka, Ltd. 4.9%
福岡銀行

新生銀行
Shinsei Bank, Limited

4.4%

Balance

The Shinkumi Federation
全国信用協同組合連合会
Bank

4.4%

千葉銀行
The Chiba Bank, Ltd.

3.0%

大和ネクスト銀行
Daiwa Next Bank, Ltd.

2.8%

山形銀行
The Yamagata Bank, Ltd. 2.8%

108,374
mn yenBorrowings from new lenders

Resona Bank,Ltd.

Average Debt Cost
(all / excluding short-term)

Daishi Hokuetsu
Bank, Ltd.

山口銀行
The Yamaguchi Bank, Ltd. 2.3%

Development Bank
日本政策投資銀行
of Japan Inc.

2.3%

七十七銀行
The 77 Bank, Ltd.

1.8%

The Yamanashi Chuo
山梨中央銀行

1.4%

The NISHI-NIPPON CITY
西日本シティ銀行
BANK, Ltd.

1.4%

The Hachijuni Bank, Ltd.
八十二銀行

0.9%

群馬銀行
The Gunma Bank, Ltd.

0.9%

関西みらい銀行
Limited0.9%

第四北越銀行
Daishi Hokuetsu Bank, Ltd. 0.9%

Sumitomo Mitsui Trust
三井住友信託銀行
Bank, Limited

0.5%

京葉銀行
The Keiyo Bank, Ltd.

中国銀行
The Chugoku Bank, Ltd.

0.5%

Investment
投資法人債
Corporation Bonds

1.8%

0.5%

The Bank of Toyama, Ltd. 0.3%
富山銀行
Green Finance (Debt)

13.0%

Bank, Ltd.

Kansai Mirai Bank,

Sustainability Linked Loan 5.5%

Long-term borrowings
Investment Corporation Bonds

Short-term borrowings
Green Finance (Debt)
Sustainability Linked Loan

15,00012,000

9,000

6,000

3,000
（Year）

02023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

15

ESG Initiatives

ESG Initiatives
GRESB Real Estate Assessment (2022)

Reduction of Paper Use with Electronic
Prospectus
Paperless offering: No paper-based prospectus aredelivered for the Japanese Offering

Electronification⚫ GRESB Rating: 5 Stars (the highest rating) for
3 consecutive years and Green Star for 4 consecutive
years⚫ GRESB Public Disclosure (5-level rating):
Level A (the highest rating) for 3 consecutive years

Intended to reduce environmental burden by
reducing usage of paper and ink, etc.
Possible to save about 880 thousand sheets ofpaper that might have been used if prospectus waspaper-based
Colorize the contents in the electronic prospectus for
improved readability and visual effects

Participation in Japan Climate Initiative⚫ In 2022, MJIA participated in “Japan Climate Initiative”(JCI), a network of participants including local
governments and non-state actors such as companies,
organizations, and NGOs actively engaged in climate
action17

ESG FinanceInitiatives for Financing Utilizing ESG Assessments by Third-parties
Entities
Sustainability Linked Loan
Green Finance Framework
Green Finance Framework
MEL has obtained a Green 1(F) (highest for JCR
Green Finance Evaluation) rating evaluation forthe competence of its Green Finance Framework
Use of Proceeds
Eligible Assets
Eligible Assets are assets or projects that satisfy eitherof the following requirements⚫ The assets for which MEL has obtained or plans to
obtain the following third-party certificationI.
5-star, 4-star or 3-star DBJ Green Building
Certification
II. S rank, A rank or B+ rank in Certification for
CASBEE for Real Estate
III. 5-star, 4-star or 3-star BELS Evaluation⚫ Renewable energy generation facilities associatedwith buildings (limited to solar power generation
facilities on the premises)⚫ Equipment designed to reduce environmental
impacts (limited to equipment that achieves 30%
or higher energy efficiency before introduction)⚫

Green Loan
Allocated

Total 12,070 million yen
obtained

SPTs achievements⚫

Green Bond
Allocated

Total 2,000 million yen
obtained

Examples for Eligible Assets

LOGiSTA ・LogicrossIbaraki Saito(A)
BELS: ★★★★★
CASBEE: A Rank for Osaka Mirai⚫

MEL conducted its first Sustainability Linked Loan
Agreement with The Norinchukin Bank in March,
2022. This is followed by 2 billion yen in newly
obtained from The Norinchukin Bank in October andto be obtained 2 billion yen from Shinsei Bank in
December based on the same SPTs
KPIs and the FY 2030 target including the following
SPTs will be evaluated accordingly at each definedmonitoring time and the spread incentive will be given
based on the achievement of these targets under thecontract terms and conditions

As a result of our continuous commitment to ESG
initiatives, we have achieved multiple SPTs. The
spread incentive will be given to the Sustainability
Linked Loans acquired on March, 2022

SPTs

Logicross Atsugi II
BELS: ★★★★★
CASBEE: S Rank for real estate

Use of Proceeds
Green Equity Framework

MEL obtained a second-party opinion for theGreen Equity Framework from DNVGreen Equity
Allocated

5th Follow-on Offering
Total 22,042 million yen
obtained

Result①30% reduction in CO2emissions(compared to FY2017)34.7%② Increase in the ratio ofGreen Properties to 100%

84.7% Not achieved③15% reduction in energy
consumption(compared with FY2017)④Continuous attainment of
4 Stars in GRESB Real Estate
Assessment

Achieved

23.3%

Achieved

５StarsAchieved18

Mid-to Long-Term Growth Strategy

Mid-to Long-Term Growth Strategy
Asset size target and transition of key financial figures
Sponsor-Developed

MJIA-Sourced

4th
Follow-on
Offering

Asset Size
LTV

25.0%

DPU

NAV Per

27.0%

216.2 bn yen

142.1 bn yen

113.7 bn yen 113.7 bn yen

27.0%

30.0%

29.4%

31.4%

32.7%

32.4%

36.0%

5,492yen

37.7%

Carefully monitor themarket and acquire
properties throughequity offerings andflexible use of LTV

38.2%

As of
Oct. 25, 2022
207.6 bn yen

5,524yen

5,907yen

6,003yen

292,564yen 297,440yen
268,610yen269,287yen 274,642yen

Aim for Further
Growth in
Asset Size

Stabilized LTV
40%～50%

37.3%

As of
Mar. 1, 201856.9 bn yen

5,292yen

261.6 bn yen

3rd
Follow-on 170.4 bn yen 170.4 bn yen
Offering

2nd
Follow-on
Offering

1st
Follow-on
Offering

83.2 bn yen 83.2 bn yen
70.8 bn yen

Market Cap

5th
Follow-on
Offering

Asset Size
Target
300 bn yen

6thFollow-on
Offering

6,619yen

6,764yen

7,174yen

7,353yen

7,628yen

Aim for further inclusion
in major indices7,832yen

375,616yen
323,072yen 343,144yen 350,110yen

Unit (Note)

Aim to increase DPU
through disciplined
growthAim to steadily grow NAV
per unit and maximize
unitholder value

FP 2018/8 FP 2019/2 FP 2019/8 FP 2020/2 FP 2020/8 FP 2021/2 FP 2021/8 FP 2022/2 FP 2022/8 FP 2023/2 FP 2023/8(4th FP)(5th FP)(6th FP)(7th FP)(8th FP)(9th FP) (10th FP) (11th FP) (12th FP) (13th FP) (14th FP)
Note：NAV Per Unit shows after paying Surplus Cash Distributions NAV

20

Appendix

MEL’s Features
Stable Growth Strategy with Hybrid Model “Developer × Real Estate Asset Manager”

No. of Properties /Asset Size
(Post-Acquisition)

32 properties/
261.6 bn yen

Sponsor-developed
Properties / MJIAsourced Properties

67.6%/
32.4%

AverageOccupancy Rate

Avg. Appraisal NOI
Yield

100.0%

4.7%

Forecasted LTV(14th FP)

38.2%

SponsorAA(Stable)● Dedicated to city development in the Marunouchi area (Tokyo) forover 120 years● Contributing to society through a variety of business activities as

one of the largest comprehensive real estatedevelopers in Japan

Investment /Asset Management● Established in 2001, when real estate securitization was
emerging in Japan
Overview● Ample supply of pipeline properties from Sponsor
through development / operation of advanced logistics facilities● Utilization of Sponsor’s know-how and corporate customer relationsin the leasing activities● Promotion of capital recycling business in domestic
asset business and consistent expansion of AUM and DX

promotion in non-asset business● Track record including structuring and management of various typesof real estate funds, such as the largest private REIT in Japan● Proven track records in a variety of asset types in investment andasset management● Promoting the logistics facility business as a growth area

Support（JCR）

Asset Management Company
Development /Facilities Management

Overview

Credit Rating● Flexible and diverse acquisition strategies, using awide range of schemes, such as bridge funds including valueSupport

up, PDP and CRE● Internal growth leveraging unique know-how other thanrent revision, such as installation of LED lighting and solar
panelsNote: As of Aug. 31, 2022. However, Properties (to be) Acquired during 13th FP are included.

22

Portfolio Summary
No. of Properties/ Total (Anticipated)Acquisition Price

Total Appraisal value

Average Appraisal NOI Yield

Average Occupancy Rate

Average Property Age

100.0％

6.7 years

Ratio of Green Properties

Sponsor-developed Properties /MJIA-sourced Properties（Based on (anticipated)acquisition price）

Logistics facility /Others

4.7％

296.7bn yen

32 property/ 261.6 bn yen

84.7％

Area Diversification（Based on (anticipated)acquisition price）（Based on (anticipated)acquisition price）

5.5％

32.4%

Property Age

Tenant Diversification（Based on (anticipated)acquisition price）(Based on leased area)

7.9%

13.0%
67.6%
94.5%

Sponsor-developed
Properties

32.8%

54.2%

Logistics
facility

60.7%

4.4%
4.2%
4.1%
3.5%
97
3.5%
Companies
3.1%

10.7%

27.4%

2.9%
2.8%

Others

MJIA-sourced Properties

Ratio ofTop 10Tenants
39.3%

7.4%

2.7%
～5 yrs5-10 yrs

10 yrs ～IHI Infrastructure Systems

SANKYU INC.

NIPPON EXPRESS
Not Disclosed
MITSUI-SOKO LOGISTICS Co., Ltd.

LONCO JAPANORIX Auto Corporation.
Kimura-Unity Co., Ltd.

Nihon Realest Co., Lrtd.

MITAKA SOKO Co., Ltd.
Others

54.5%

Tokyo
Metropolitan
Area

Osaka
Metropolitan
Area

NagoyaMetropolitan
Area

OthersNote: As of Aug. 31, 2022. However, Properties (to be) Acquired during 13th FP are included.

23

Portfolio Summary
Sponsor-Developed Properties

MJIA-Sourced PropertiesLOGiSTA･Logicross Ibaraki Saito(A) (45% co-ownership interest)

LOGiSTA･Logicross Ibaraki Saito(B) (45% co-ownership interest)

Logicross Yokohama Kohoku

MJ Logipark Inzai 1

MJ Logipark Takatsuki 1

MJ Logipark Funabashi 2

Logicross Fukuoka Hisayama

Logicross Atsugi

Logicross Kobe Sanda

MJ Logipark Higashi Osaka 1

MJ Industrial Park Kawanishi(Land)

MJ Logipark Funabashi 1

Logicross Osaka

Logicross Nagoya Kasadera

Logicross Narashino

MJ Logipark Atsugi 1

MJ Logipark Kazo 1

MJ Logipark Osaka 1

Logicross AtsugiⅡ

LOGIPORT Sagamihara(49% co-ownership interest)

LOGIPORT Hashimoto(45% co-ownership interest)

MJ Logipark Fukuoka 1

MJ Logipark Tsuchiura 1

MJ Logipark Nishinomiya 1

LOGIPORT Osaka Taisho(37.5% co-ownership interest)

LOGIPORT Kawasaki Bay(45% co-ownership interest)

MJ Logipark Kasugai 1

MJ Logipark Kazo 2

MJ Logipark Sendai 1

MJ Industrial Park Sakai(Land)

MJ Industrial Park Kobe (Land)

MJ Industrial Park Chiba-Kita (Land)

Properties (to be) Acquired during 13th FP

24

Portfolio Map
Properties (to be) Acquired during 13th FP

25

Features of MEC Group’s Logistics Facilities Business (i)Strengths of MEC Group
Diversified business portfolio
Advanced development
capabilities

Strengths as a 4
Comprehensive Corporate customer relations
Developer

Strengths of
the Logistics
Facilities
Business

5

Customer network
supported by branches

6

Numerous joint projectexperiences

7

1

Land Acquisition

Development

Obtaining of a variety of land
information

Management of development cost

2 Consolidation of plots of land from

3 Coordination among stakeholders

multiple landowners

and the administration

Collection of land information utilizing relations and land development

Exploration of tenants’ needs atvarious locations

Experiences of joint projects requiring coordination between stakeholders with different interests
Reflection of tenants’ needsin land acquisition

Collaboration with TRC

Capture of information from tenantsof facilities in operation

Understanding of tenants’ needs forfacility specifications

Efforts to improve operational
efficiency and meet tenants’ needs
Customer network supported bybranches

1 Obtaining a variety of land information

3 Coordination among stakeholders and5● Obtaining a variety of land information through● MEL’s ability to respond to complex● Use of the regional network mainly inthe administration

schemes for ownership interest swaps
were highly rated

Logicross
Hasudathe areas where MEC’s head office andbranches are located to achieve tenantleasing activities

Logicross
Kobe Sanda

2 Consolidation of plots of land from multiple

4 Corporate customer relations

6 Strong Track Record in Joint● Efforts such as acquiring development lands through● Collaborative project making full use of● Joint development of LOGiSTA･Logicrosslandowners

land consolidation of multiple owners

Logicross Kasukabe

Understanding of tenants’usage needs
Utilization of relations with tenants offacilities in operation

8 Logistics solutions throughuse of technologies

Logicross Nagoya
KasaderaGroup-wide leasing

Exploration of land information
on siteStrengthening of value chain
through in-house PMgroup-wide information sharing

Operation & Management

relation with office tenant in Otemachi,
Marunouchi and
Yurakucho area

LOGIPORT
Kawasaki Bay

Development

Ibaraki Saito (A) and (B) with Hankyu
Hanshin Properties in addition to general
trading companies and foreign funds

LOGiSTA･LogicrossIbaraki Saito(A and B)

7

Collaboration with TRC● Promotion of accumulation of know-how
through personnel exchange● Floor area of 1 Mn m2 under PM
consignment

TRC’s Track Record in PM Consignment(#)(10,000m2)

40
92.2

30
20
10

109.9

115.6

150
100

56.9
3.9

50

26.3

0

0
End of End of End of End of End of End of
Mar. Mar. Mar. Mar. Mar. Sep.
2018 2019 2020 2021 2022 2022

No. of properties (left)

Area (right)

26

Features of MEC Group’s Logistics Facilities Business (ii)8

Logistics Solutions through Use of Technologies

Launch of project for first “next-gen core logistics
facility” directly connected to expressway IC in Japan

Solutions for Warehouse Operation Using AI-based Analytics●A development project of a “next-gen coreRenderinglogistics facility” directly connected to an
expressway interchange, the first in Japan, waslaunched in Aodani Advance Maintenance Area
in the hillside area in the east of Joyo, Kyoto●A dedicated rampway directly connected to an
IC will enable the facility to accept trucks
under fully autonomous driving and truck
platooning, which are anticipated to allow
MEC development site (Block A)
next-generation mobility to access the facility
directly from the expressway, without passing
through local roads and eventually addresssocial challenges, including ever-increasing
demand for cargo transportation and serious
shortage of truck drivers●This facility will be able to accept doublecoupled trucks that are already in practical use●MEC is also discussing a development plan for next-gen corelogistics facility in the Kanto region, with a view to automation andmanpower-saving in the logistics network connecting the three
metropolitan areas●AI-based solution for measuring works inside the warehouse
Measurement andanalysis of traffic
flow and idle time
for review oflocation changes
and pick-up
procedures

Arrivalmanagement

Warehousemanagement

Use for daily warehouse
operation including
minimization of waiting time
Minimize waiting time of truck drivers●Solution for entrance control

Prevent
accidents bymeasuringtraffic lines andstagnant
operation

Identify issues to be
improved in daily
operation
Detectpedestrians

Enhancement of safety of trucks,
public vehicles and pedestrians
coming in and out of the facility

Introduction of AI robot cleaner●“TRC LODGE”, a permanent exhibition space
where visitors can learn the latest logistics
tech to help solve problems of all sizes faced
by logistics companies is launched● “Whiz”, an AI robot cleaner was introduced at
Logicross Ebina●“Seminar and Co-working Space” is available
for exhibiting companies to hold seminars, etc.

Shipping
management●AI-based solution for managing truck berths

Launch of a co-working showroom that aims to solve
problems through logistics tech●“Time Share Warehouse” is an experimental
space where companies can rent the entire
latest warehouse for an hour or more to test
and demonstrate new products

Improve job safety

Improve efficiency in in-warehouse works“Whiz”, an AI robot cleaner● Part of the janitorial services that used to be
human labor is covered by the robot“TRC LODGE”, a permanent exhibition space

Time Share
Warehouse

Seminar andCo-working Space● The possibility of introducing the robot to Logicrossproperties to be completed is under review, withan aim to establish a new method or property
management in the era of labor shortage andcontactless mode under the COVID-19 pandemic

27

MJIA Sourcing Progress
Bridge Scheme

PDP (Partnership Development Program)
PDP Scheme

Broker⚫ MJIA leads the project incoordination with partner companies(developer, constructor, broker, etc.)◼ Optimal method is chosen taking into
account the timing and size of acquisition,and information sources, etc.

⚫ MEL can preferentially consider
acquisition after the building iscompleted and leased out◼ MEL will acquire properties when thenecessary conditions are met

MEL

SellerTenant
MJIA arranges wholedevelopment project bymatching each partner’s needs

Constructor
Developer

MJ Logipark Funabashi 2 MJ Logipark Inzai 1

Property to be
AcquiredDuring 13 th FP

Property Acquired
During 13 th FP

MJ Logipark Takatsuki 1

MJ Logipark Aisai 1*

MJ Logipark Daito 1*

MJ Logipark Kakogawa 1*

Adjustment of acquisition timing andimage of the effect of Reduction inBook Value in the Bridge

Property Acquired
During 13 th FP

Book value

CRE
Acquire properties by making strategic proposal tailored to the actual conditions of each company’s real estate holdings byleveraging the high credit rating of the network of MJIA
MJ Logipark Higashi
Osaka 1

Property Acquired
During 13 th FP◼ Direct proposals of sell-and-leaseback
to the seller with the strong network
of MJIA as well as MEC Group’s highcredibility◼ MJIA’s detail-oriented responses andproblem-solving capabilities lead thisto a deal

MJ Industrial Park
Kawanishi (Land)

Property Acquired
During 13 th FP◼ Information about tenants’ highdemand for rent payment during
development collected by MJIA via
intermediary company◼ Formulation of future plans after theend of the lease period with theabundant experiences of land projects
and building redevelopment by the
MEC Group’

Anticipatedacquisition
price

Anticipatedacquisition
price

Anticipatedacquisition
price

Inclusion inbridge scheme

Anticipatedacquisition
price

Anticipatedacquisition
price

Term

LOGIPORT Kawasaki Bay

Value Up
MJ Logipark Kasugai 1

Improved
occupancy rate

◼ MJIA’s leasing capacity
helped the property
achieve early lease-up
Occupancy ratefrom 46% to 100%
(during the bridge fund)

MJ Logipark Sendai 1◼ Installation of the vertical machinery
has improved tenants’ convenience andresulted in rent increase
Increase rate
＋10.7％
Floor area covered Approx. 5,000㎡
Improved(during the bridge fund)earnings*Tentative name28

Role of MJIA in PDP (Partnership Development Program)
MJIA leads entire development process and considers the needs of all parties involved. This approach enables
MEL to obtain preferential negotiation rights after the property is completed and leased up
Flow of PDP and MJIA’s Role

MJIA’s Strengths Shown in the Properties (to be) Acquired during 13th FP

Flow of PDP

Sourcing• Acquire a wide range of property information through strong
relationships with a wide variety of real estate brokers andaccess to information on related/closed deals

Planning• Analysis of the market environment of nearby logistics facilities• Selection of optimal plan specifications based on tenant needs,
site, and surrounding environment• Simulation of estimated costs and project cash flowLand
Acquisition• Search for holders according to return characteristics foreach deal• Planning ability and broad and strong relationships to invite
the most suitable partner for each project

Development
Support• Support for selection of construction companies and conclusion of
construction contracts• Participation in regular on-site meetings and advice on changing plan
• Manage overall project progress• Participation in a variety of inspections after construction completion

MJ Logipark Funabashi 2• Obtained land information from a close broker without bidding• Examined its development plan and cash flow simulation• Developed with a development partner who needs an exit strategy
Functions offered by MJIA(Note)
Sourcing• Support for selection of Property Management and Building
Management• Support for periodic reportings regarding operational
management

Exit
Strategy• Obtain preferential negotiation right on the background of
MEC Group's high credibility• Meeting holders' selling intention by providing exit function

Development
SupportLeasing

Operation
Management

Exit
Strategy• Established a new project through MJIA’s expertise in land information• Advised on development plans and cash flow simulation
to a development partner• MEC Group invited tenants and leased up
Functions offered by MJIA(Note)• Leasing activities by utilizing the MEC Group’s wide tenant
network• Provide advice on determining terms of lease agreementswith tenants

Operation
Management

Land
Acquisition

MJ Logipark Inzai 1

Sourcing

Leasing

Planning

Planning

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

MJ Logipark Takatsuki 1• Obtained land information from a broker with close ties to MJIA
• Identified the tenant’s needs based on MJIA’s familiarity with thesurrounding area
• Promptly selected potential tenant and developers with thepreferential negotiation right, and implemented its development
Functions offered by MJIA(Note)
Sourcing

Planning

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

Note: Functions offered by MJIA are colored same as in the left chart

29

Logistics Market Overview (i): Supply-Demand Trends by Region
Tokyo Metropolitan Area

Osaka Metropolitan Area

New supply (left axis)
Vacancy rate (right axis)

New supply (left axis)
Vacancy rate (right axis)

New demand (left axis)
Forecast new supply (left axis)
Vacancy rate more than one year after completion (right axis)

New demand (left axis)
Forecast new supply (left axis)
Vacancy rate more than one year after completion (right axis)(thousand m2）(%）(thousand m2）

(%）

3,500

14

1,600

16

3,000

12

2,500

10

1,200

12

2,000

8
800

8

1,500

6

1,000

4

400

4

500

2

0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 2023 2024
Q1-Q2 Forecast0

Nagoya Metropolitan Area
New supply (left axis)
Vacancy rate (right axis)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 2023 2024
Q1-Q2 Forecast

0(year)

Kyushu Area

New demand (left axis)
Forecast new supply (left axis)
Vacancy rate more than one year after completion (right axis)(thousand m2）

(%）

600

60

500

50

400

40

300

30

200

20

100

10

0

0

(year)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 2023 2024
Q1-Q2 Forecast

0(year)New supply (left axis)

New demand (left axis)

Vacancy rate (right axis)(thousand m2）

(%）

160

16

120

12

80

8

40

4

0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Q1-Q2

0
(year)

Source: CBRE
(Note 1) “Tokyo Metropolitan Area” refers to Tokyo, Chiba, Saitama, Kanagawa and Ibaraki prefectures. “Osaka Metropolitan Area” refers to Osaka, Hyogo and Kyoto prefectures. “Nagoya Metropolitan Area” refers to Aichi, Mie and Gifu prefectures. “Kyushu Area” refers to Fukuoka and Saga prefectures.
(Note 2) “New supply” refers to the total leasable area of newly constructed logistics facilities for lease. “New demand” refers to an increase or decrease in occupied floor space. An increase or decrease in occupied floor space is newly contracted floor space minus vacated floor space.
(Note 3) “Mid to Large Logistics Facilities” refer to logistics facilities for lease with a total floor area of 5,000 m2 or more, which are owned by real estate investment companies or real estate development companies, etc. The survey does not include logistics facilities forlease owned by logistics companies, etc., and does not cover all logistics facilities for lease with a total floor space of 5,000 m2 or more.

30

Logistics Market Overview (ii): Supply-Demand of Large Logistics Properties
Logistics Tenants’ Expansion Plan Over the Next Three Years

Outlook on 3PL Outsourcing for the Next Three Years(Consignor Firms)
2022

Floor area

41%

34%

21%

2%

50%

（n=62）

2%2021
No. of sites

19%

44%

31%

4%

39%

44%

（n=34）

6% 5%

41%

12%

3%

90%

100%

3%
0%
10%+ growth20%
0–10% growth40%
No change

60%
0–10% reduction

0%

80%
100%
10%+ reduction

Source: CBRE "Japan Logistics Occupier Survey 2022" (June 2022)

BTS facilities for lease (exclusive facilities)

21%
15%

Consolidation of sites/facilities
Rebuilding of own facilities

15%

New development with developer/investor

11%
14%
13%

Purchase of existing facilities for own use

Logistics operators (n=187)

Other

Consignor firms (n=87)

54%

34%

Purchase of land for development of own facility

Sale-and-leaseback

40%

50%

60%

70%

80%

Other/N/A

Decrease

6%
3%
1%
3%

Business expansion

59%

21%

Obsoloescence/ usability of building/ facilities

33%

16%

Increase in volume of goods stored

24%
16%
21%

Installation/ upgrade of facilities/ systems

17%

Increase in volume of cold storage items
Expanding regional network

Increase in volume of home delivery parcels
Decrease in cargo volume handled

7%

Discontinuation/ sale of existing sites
13%

Logistics operators (n=171)

20%

40%

Consignor firms (n=77)

60%

32%

12%
12%
14%
12%
9%
10%
9%
6%
13%
4%
5%
2%
3%
3%
4%
5%

Enhancing aseismic/ BCP qualities of facilities
25%

78%

45%

23%
19%

Reducing rental expenses

10%

0%

35%
35%

Relocating sites to achieve efficient network

Source: CBRE "Japan Logistics Occupier Survey 2022" (June 2022)

Other

0%

20%

40%

60%

80%

Source: CBRE "Japan Logistics Occupier Survey 2022" (June 2022)

Trend in Facility Area Usage per Tenant by Industry（㎡／Tenant）
Logistics (excluding 3PL)
80,00060,00040,00020,000
0
2016
2017

30%
No Change

Source: CBRE "Japan Logistics Occupier Survey 2022" (June 2022)

Existing and new multi-tenant facilities
available for lease

Consignment to 3PL

20%

Reasons for Logistics Network Plans (up to three answers allowed)

Methods for Executing Logistics Network Plans in the Next Three Years(multiple answers allowed)

Discontinuation/ sale of own facilities

10%

Increase

3PL

E-commerce

2018

2019
2020
Building Completion Year

Manufacturer

Share of Advanced Logistics Properties in Japan
Wholesale

2021

Retail Others

All

2022
Average※Estimate

Source: SUMITOMO MITSUI TRUST RESEARCH INSTITUTE CO., LTD.
Note 1: As of end of May, 2022. Only tenants with disclosed estimate values are considered for 2022
Note 2: Tenant information is obtained from public information as well as local information and is not exhaustive. Usage area is for reference only
Note 3: Some tenants may have been replaced since completion as the data used is current information, not at the point of completion

1.9%

March 2012

4.8%

September 2019

5.8%

December 2020

Advanced Logistics Properties remain scarce,
despite the increase in supply of large properties
Source: Cushman and Wakefield “The Role of Asia Pacific in Global Supply Chains” (April 2022)

31

Logistics Market Overview (iii)：Increase in Logistics Demand
Trend in Retail E-Commerce Market Size and Number of Deliveries（100bn yen）
250

E-Commerce Market Size (Retail) (Left Axis)
Number of Deliveries (Right Axis)

3PL Market Size（million）（100bn yen）

8,000

50

3PL Sales

Forecast
200

6,000

150
4,000
100

40

30
20

2,000

50

10
0

0
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026（year）

Source: Actual values of E-commerce market size through 2020: E-commerce Fact Survey by Ministry of Economy, Trade and Industry, Japan,
Forecast values of E-commerce market size and all data of the numbers of deliveries: Created by SUMITOMO MITSUI TRUST RESEARCHINSTITUTE CO.,LTD. Based on Truck Transportation Information etc. by Ministry of Land, Infrastructure, Transport and Tourism, Japan

Japan

USA

UK

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 （FY）

Each fiscal year is the period beginning on April 1 and ending on March 31 of the following year, which does not coincide with thefiscal period of MEL
Source: Compiled by the Asset Management Company based on “Monthly Logistics Business Sep. 2022”

Department StoreSupermarket

Drugstore

E-commerce

Convenience Store

160
25.7

32

120

24
14.5

16

8.5

0

2011

Note:

（100bn yen）

40

8

2010

Retail Market Size

E-commerce Penetration Rate
（%）

0

80

8.8

4.4
2.8
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
2Q

(year)

Source: Data compiled by the Asset Management Company based on “FY2021 Global Economy Survey for Formulating an Integrated Domestic
and External Economic Growth Survey (E-Commerce Market Survey)” by the Ministry of Economy, Trade and Industry (August 2022), as
well as data disclosed by Office for National Statistics (UK) and U.S. Census Bureau. Data disclosed herein are until 2Q 2022 for U.S. andUK, and until 2021 for Japan

40
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 (year)

Source: Data compiled by the Asset Management Company based on “Monthly Report on the Current Survey of Commerce Jun 2022” (August2022), and “FY2021 Global Economy Survey for Formulating an Integrated Domestic Growth Survey (E-Commerce Market Survey)” by
the Ministry of Economy, Trade and Industry (August 2022)

32

ESG Initiatives (Environment)
Environment
Promotion of Green Portfolio

Building-Housing EnergyEfficiency Labeling System(BELS)

Ratio of Green
Properties in
Portfolio

Evaluate and indicate energy conservation Evaluate comprehensively environmental
performance of new and existing buildings performance of buildings, incl. reduction ofenvironmental burden and consideration
for scenery

14

16

properties

properties(Total Floor Area basis)

84.7%

Logicross Fukuoka Hisayama

Comprehensive Assessment
System for Built Environment
Efficiency (CASBEE)-S Rank for real estate★★★★★

S Rank for real estate

Logicross Kobe Sanda★★★★

A Rank for real estate

Logicross Osaka★★★★★

S Rank for real estate

Logicross Nagoya Kasadera★★★★★

S Rank for real estate

Logicross Narashino★★★★★

S Rank for real estate

Logicross Atsugi II★★★★★
(ZEB Ready)

S Rank for real estate-

B- Rank for Yokohama

LOGIPORT Sagamihara★★★★

S Rank for real estate

LOGIPORT Hashimoto★★

S Rank for real estate

LOGIPORT Osaka Taisho★★★★★
(ZEB Ready)

S Rank for real estate

LOGIPORT Kawasaki Bay

★★★★★
(ZEB)

A Rank for new construction

LOGiSTA・LogicrossIbaraki Saito (A)★★★★★

A Rank for Osaka Mirai

LOGiSTA・LogicrossIbaraki Saito (B)★★★★★
(ZEB Ready)A Rank for Osaka Mirai

Logicross Atsugi

Logicross Yokohama Kohoku

MJ Logipark Kasugai １-

S Rank for real estate

MJ Logipark Kazo 1

★★★★★

-

MJ Logipark Fukuoka 1★★★★★
(ZEB Ready)

S Rank for real estate

Issuance of Sustainability Report

We issued the second
Sustainability Report forthe purpose of reporting tostakeholders about our ideas
and efforts toward ESG
URL
https://melreit.co.jp/en/esg/assets/img/disclos
ure/doc_sustainability_202202.pdf
Energy Saving Initiatives and Reduction of Paper Use

Size change
Insulated sandwich
panels for exterior
walls

Reuse of OA floor
panels of officebuildings in
Marunouchi

Renovation with LED
installation
based on Green Lease
Contract

Change of the size of
asset management
reports to reduce
paper use

Use of Renewable Energy for Reducing Carbon
Emissions / BCP Initiatives

Installation of solar panels

Seismic isolators

Installation of
emergency power
generators

Introduction of
RE100(MJ Logipark
Sendai 1)

33

KPI Progress in TCFD
Progress toward Goal Achievements by FY2030
KPI’s track record

KPIs / Targets

CO2 emission
intensity(Note 1)

30% reduction
Energy consumption
intensity(Note 1)

15% reduction
Water consumption
intensity(Note 1)

Not increase
Waste recycling(Note 2)

70%

10.0%
0%
-10.0%-20.0%-30.0%-40.0%

6.5%-21.3%

Installation of LED lighting and motion sensor-30.0%

Renewal of air-conditioning equipment
FY 2018

FY 2019

FY 2020

FY 2021

9.5%

20.0%
10.0%
0%
-10.0%-20.0%-30.0%

-6.8%

-9.7%
-23.3%FY 2017(Base year)

FY 2018

FY 2019

FY 2020

FY 2021

FY 2030(Target year)

Achievementtarget-15.0%

0.0%

Installation of water-saving toilets and soundimitating devices-27.6%

AchievementtargetWater saving with tenants

FY 2021

FY 2030(Target year)-18.9%FY 2018

73.3%

80.0%

FY 2019

66.6%

FY 2020

63.4%

62.3%

54.9%

Installation of smart watering systems

70.0%

Promotion of Recycling
Achievementtarget50.0%
FY 2017(Base year)

Installation of solar panels
Purchase of non-fossil fuel-9.8%

FY 2017(Base year)

Promotion of appropriate temperature settingin air conditioner

FY 2030(Target year)

11.9%

20.0%
10.0%
0%
-10.0%-20.0%-30.0%

60.0%

Achievementtarget-34.7%FY 2017(Base year)

70.0%-15.3%

Initiatives to reduce environmental burden(Examples)

FY 2018

FY 2019

FY 2020

FY 2021

FY 2030(Target year)

Implementation of trash sorting procedures(Note 1) Achievement target: by FY2030, compared with FY2017(Note 2) Achievement target: by FY2030

34

ESG Initiatives (Social)SocialProactive Participation in CSR Activities⚫ Participation in flower bed⚫ Register for Disaster Cooperation Building
maintenance activities ofcommunity near Logicross Atsugi(LOGIPORT Sagamihara, LOGIPORT Hashimoto,
Logicross Nagoya Kasadera, LOGIPORT Osaka
Taisho)LOGIPORT Hashimoto

Tenant Satisfaction Survey⚫ Conducted a tenant satisfaction survey in hardware/software aspects, in collaboration witha third party agency for the purpose of hearing opinions of tenants to improve building
management, meet their potential needs and increase their comfort. During the 10th fiscal
period, improvements implemented as a result of the survey include installation of thermos
cameras and AEDs, and measures to ease bird damages

LOGIPORT Osaka Taisho

Logicross Nagoya Kasadera
Logicross Nagoya
Kasadera⚫ Clean-up activities around
MJIA’s office⚫ Renovation of cafeteria(LOGIPORT Sagamihara)

Logicross Nagoya Kasadera

MJ Logipark Sendai 1

Collaboration with Local Educational Institute andImprovement in Tenant Satisfaction⚫ Conducted a survey to employees and reflected the result on the renovation of theemployee lounge. Also, a wall design contest involving local universities and vocational
schools was held and the design of the winner is used for the lounge’s wall design of
MJ Logipark Fukuoka 1⚫ Free salt candy service for tenants in⚫ Securing reserves in case of

emergency (food, beverage &portable toilet)

properties as a preventive measure forheatstroke(for all properties held as of Aug. 2022)⚫ Donation of 1,900 unused surgical masks

stored to the Chiyoda Ward Health Center⚫ Donation of unused calendars to elementary
schools in developing countries throughsupport organizations as a substitute fornotebooks⚫ Donation of disaster prevention supplies

that are no longer needed to volunteer
firefighters and rescue teams in developing
countries through support organizations

BeforeAfter

Measures for Employees’ Comfort andOffering a Comfortable Working Environment
Various initiatives are implemented in order to maximize asset management performance byimproving productivity, skills and motivation of employees

Examples in MJIA
● Introduction of flexible working hours● Installation of community spaces within office area
● Invitation of personnel from group companies andoutside professionals● Specialized training for capacity building of employees● Annual employee satisfaction survey

Installation of community spaces
within office area

35

ESG Initiatives (Governance)
Governance
Asset Management Fee Structure

Measures to Address Conflict of Interests
in Asset Management⚫ Introduced an asset management fee structure reflecting theperformance of investment unit price for the purpose of aligninginterest with unitholders⚫ Any asset acquisition from or sale to an interested person of MEL
should be determined through a transparent decision-making process
at MJIA

Asset management
fee I (AUM-linked)

Total assets as of the end of the previous period × 0.2% (upper
limit)

Asset management
fee II (Real estate
profit-linked)

Adjusted NOI × 5.0% (upper limit)

Proposal by Logistics REIT Management
Department

Examination by Compliance Department

Adjusted net income before tax × net income before tax per
unit × 0.001% (upper limit)
First among J-REITs(a): Fluctuations in MEL’s investment unit price (incl. dividends)(b): Fluctuations in the TSE REIT Index (incl. dividends)

Investment unit price of MEL

TSE REIT Index (incl. dividends)
X + DPU

Increase fee

Y

If MEL’s growth rate issmaller

X + DPU（As of August 31, 2022）*Needs to be attended by an external expert (legal counsel)

Decrease fee

Reference date (Present period)

Continued Investmentby the Sponsor

Deliberation by Compliance & Risk Management
Committee

Capital Contribution Ratio

Approx. 4.1%

MEL

Reference date (Previous period)

President and Executive Officer Approval(Board of Directors Report)

If MEL’s growth rate is
greaterY

Deliberation by Executive Committee*Needs to be attended by a third party appraiser(If voted down)“Fee linked to Investment Unit Price”
Performance against TSE REIT Index ((a)-(b)) × market cap(for fiscal period of each term) × 0.1% (upper limit)

MJIA

Asset management
fee III (unitholderinterest-linked)

Approval by MEL’s Board of Directors

Cumulative Investment for Employees⚫ Introduced cumulative investment for officers and employees ofSponsor and MJIA with the aim of continuous increase inunitholder’s value and provision of benefits to officers andemployees

36

MEC Group’s Initiatives for ESG
MEC Group 2030 Sustainable Development Goals 2030

Obtaining SBT Recognition
In March 2019, MEC Group establishedgroup-wide medium- to long-term
greenhouse gas emissions reduction targets,
which were approved by the Science Based
Targets (SBT) initiative in April 2019 forbeing founded on scientific evidence.

MEC Group are committed to providing even greater value to a wider
range of stakeholders in the four key themes of “Environment”,“Diversity & Inclusion”, “Innovation” and “Resilience”

1. Environment

2. Diversity & Inclusion

Sustainable urban developmentthat proactively addresses climatechange and environmental issues

Urban development that responds
to lifestyle and human resources
trends and facilitates active
participation for all

3. Innovation

4. Resilience

Innovative urban development that
continuously renews society

Dynamic, flexible urban
development that builds disasterresilient communities andprioritizes safety and security

Introduction of Renewable Energy-derived Electricity
at Office Buildings
To meet the target of RE100, MEC Group is
steadily transitioning the electricity to renewableenergy sources in buildings that it owns andoperates.
<Buildings introducing renewable power in FY2021>●18 buildings in Marunouchi area: approx. 160,000 tons
Shin-Marunouchi Building
Year of introduction:
FY2021(*Equivalent to around 80% of the CO 2 emissions of buildings
owned by the company in the Marunouchi area)●Yokohama Landmark Tower: approx. 20,000 tons

Promotion of Use of Renewable Power in Logistics Facilities
Joining RE100

MEC Group aims to use 100% renewableelectricity for its sustainable urban development
business, and as part of this effort, joined RE100
in January 2020, a collaborative initiative underwhich businesses commit to using 100%
renewable electricity.

LOGIPORT Kawasaki Bay

Logicross Ebina

MEC is working to install solar panels on
the roof space of the Logicross series oflogistics facilities where such installations
are possible. At LOGIPORT Kawasaki Bay,completed in May 2019 and LogicrossEbina, completed in November 2020, theinitiative uses the PPA* model.
PPA: Power Purchase Agreement
A third-party ownership model for selfsufficient solar power generation facilities

37

Properties Acquired during 13th FP:
LOGiSTA･Logicross Ibaraki Saito (A) (45%) / (B) (45%) (i)SponsorMulti-tenanted
CASBEE
BELS■Large size multi-tenant logistics facility equipped with a double rampway
developed
type
and seismic isolation structure (Building A)■Versatile multi-tenant logistics facility with a double-sided berth, and floors that can be divided into up to 4 parts (Building B)<Building A><Building B>

Acquisition Price

15,150 mn yen

Appraisal Value

15,700 mn yen

Appraisal NOI
Yield

4.2%

Location

Ibaraki, Osaka

Year Built

May 2021

Property Characteristics■ A 5-story multi-tenant logistics facility with two
independent rampways for an inbound lane andoutbound lane
■ 40 truck berths per floor from the 1st to 4th floor■ Parking spaces for employees accommodating 185 cars
by utilizing slope space■ Comfortable office spaces with a view of greenery foreach of the 1st to 4th floors

2

Acquisition Price

3,900 mn yen

Appraisal Value

3,980 mn yen

Appraisal NOI
Yield

4.3%

Location

Ibaraki, Osaka

Year Built

April 2021

Total Floor Area

31,139.89m2

Total Floor Area

108,480.05m

Land Area

51,030.30m2

Land Area

15,892.28m2

No. of Tenants

1

No. of Tenants

1

Main Tenant

MITSUI-SOKO LOGISTICS
Co., Ltd.

Main Tenant

LONCO JAPAN

Office Space

Property Characteristics■ Box-type multi-tenant logistics facility, the floor of which
can be divided into up to four parts■ Double-sided berths on the 1st floor enables advanced
operational management■ 11ｍｘ11ｍ column span allows for a highly flexible layout

Warehouse

38Properties Acquired during 13th FP:
LOGiSTA･Logicross Ibaraki Saito (A) (45%) / (B) (45%) (ii)Disaster-resistant Location with Good Accessto Extensive Areas of Western Japan

Pursuing a Comfortable Working Environment and Safety
Environmental measures◼ Acquisition of ★★★★★ in BELS
(Building-Housing Energy-efficiency
Labeling System) (Building A and B)
and ZEB Ready (Building B)◼ Acquisition of CASBEE A Rank for Osaka
Mirai (Building A and B)◼ Installation of LED lights in the entire
building
BCP initiatives◼ Seismic isolation structure ensuring
higher safety (Building A)

East Lounge”Morning Sun Room”

West Lounge”Sunset Room”

East Entrance (Building A)

Office Space (Building B)◼ Emergency generator which can supply
power to common areas and certain
parts of exclusive areas for 48 hours
during electrical outages
Comfortable working environment◼ Automated convenience stores offering
snacks and various items（Building A）◼ Optimal location for risk diversification from BCP (business continuityplan) perspectives, as situated in the hilly district of inland Osaka, withrelatively fewer natural disaster risks◼ Located near the Meishin Expressway, Chugoku Expressway, and Kinki
Expressway covering wide areas of western Japan, the completion of
the Shin-Meishin Expressway (expected to be in FY 2027) will further
expand the accessibility of the properties

Approx. 2.5km

Approx. 6.5km

from Ibaraki IC on
Meishin Expressway

from Ibaraki Sendaiji IC on
Shin-Meishin Expressway

Approx. 26km

Approx. 32km

from Umeda Station on
Osaka Metrofrom JR Kyoto Station◼ Establishment of abundant green inlounge in collaboration with HibiyaKadan (Building A)

MEC Group’s Strong Track Record in Joint Development◼ Development and operation of projects
including the development of Saito◼ Know-how and track record inlogistics property development,
built as a comprehensive developer◼ Major Joint Development
Track Record
Grand Front Osaka

39

Properties Acquired during 13th FP: Logicross Yokohama Kohoku■Multi-tenant logistics facility in Kohoku area of Yokohama where supply is highly scarce■Located close to an interchange with good access to central Tokyo and Yokohama

Sponsordeveloped

Multi-tenanted
type

Bridge fund

CASBEE

Property Characteristics■The facility is a 4-story above ground and multi-tenant type
■The box-type design with truck berths on one side of the 1st
floor provides efficient warehouse space and functionality tomeet various tenant needs (partitions, light bulbs etc.)■Equipped with air-conditioning to meet potential needs fromsemiconductor and machine parts manufacturers who arelocated in the area around the facility■Emergency generators have been installed on the upper floorsof the facility to ensure sufficient space for a warehouse

Truck berth

Logistics Property with Good Access to Tokyo Metropolitan Area,
major-consumption area
Yokohama Station
Shin-Yokohama
StationAcquisition Price

7,821 mn yen

Appraisal Value

8,110 mn yen

Appraisal NOI
Yield

4.1%

Yokohama
Kohoku JCT
Logicross Yokohama Kohoku◼ Easy access to the property via a variety of access routes

Yokohama, Kanagawa

Year Built

May 2019

Total Floor Area

16,371.24m2
7,663.29m

Approx. 450m

Approx. 750m

Approx. 600m
from Kohoku IC on DaisanKeihin Road

Location

Land Area

Daisan-Keihin
Roadfrom Yokohama Kohoku exit on
Metropolitan Expressway
Kanagawa Route No.7

from Midori Sangyo Route(Kanagawa Prefectural Route140)

1Main Tenant

SBS RICOH LOGISTICS
SYSTEM Co., Ltd.

from Loop route No.2

◼ Traffic convenience to areas with the high level of consumer activity
Approx. 9km

Approx. 30km

from JR Yokohama Station

From JR Tokyo Station

Inviting Tenants of Tokyo Ryutsu Center (TRC)2

No. of Tenants

Approx. 3.0km

Managing Properties
Tenants

Information
Invitation

Logicross
Yokohama Kohoku
Tenants◼ Inviting tenants in TRC’s
managing properties◼ MEC and TRC exchange tenant
demand information on aregular basis

40Property to be Acquired during 13th FP: MJ Logipark Funabashi 2■Located in an area with a concentration of logistics facilities in the Funabashi waterfront areawith easy access to central Tokyo■Favorable place to cover major metropolitan areas, and located in close proximity to several National
Routes and highways

MJIA-sourced

Multi-tenanted
type

PDP

Property Characteristics■ A 5-story above ground multi-tenant box type logistics facility■ Corner location enables flexible access from both north and east
entrances; there is sufficient transporting capacity with 2 cargoelevators and 4 vertical conveyors

Main Highway■ Approx. 1.5km from the Yatsu-Funabashi IC on the Higashi-Kanto
Expressway■ Approx. 2.5km from the Hanawa IC on Keiyo Road
■ Approx. 1.5km from National Route 357 (Bayshore Route)

Truck berth

Location Characteristics■ Location in the Chiba waterfront area, surrounded by warehouses andmanufacturing plants■ Access to major expressways and artery roads that meets needs forwide-area delivery coverage■ A 17-minute walk from Minami-Funabashi Station of the JR Keiyo Line
(Approx. 1.3km)

Warehouse

Areas Reached within 30- and 60- minute Drive

AnticipatedAcquisition Price

4,880 mn yen

Appraisal Value

6,500 mn yen

Kasukabe

MJ Logipark
Funabashi 2

Kawagoe
Saitama
Tokorozawa

Appraisal NOI Yield

5.3%

Location

Funabashi, Chiba

Year Built

February 2022

Total Floor Area

19,219.10m2

Land Area

6,314.44m2

No. of Tenants

1

Main Tenant

Oriental EXPRESS Co.,
Ltd.

Tokyo
Metropolitan◼

Tsukuba

Saitama
Pref.

Sōka

Kashiwa

KawaguchiTokyo

Hachioji

Funabashi
Chiba

Sagamihara
Kawasaki
YamatoYokohama

Chiba
Pref.

Kanagawa
Pref.
Chigasaki
Hiratsuka

Yokosuka

Red Zone: 30-minute driveGreen Zone: 60-minute drive◼

The Chiba and Tokyo bay
area, the inland of Chiba, as
well as the population-denseTokyo metropolitan area canbe reached within 30 minutes.
With the Gaikan Expressway
opening from Misatominami
IC to Koya JCT in June 2018,
parts of Saitama are also
located within 30 minutes.
Total population covered
reaches to 4.5 million
In addition to the Chiba inlandarea, The Tokyo wards,
Yokohama city, and Saitama
city which also are majorconsumption areas can bereached within 60 minutes.
Total population covered
reaches to 20 million

41

Properties Acquired during 13th FP:
MJ Logipark Inzai 1 and MJ Logipark Takatsuki 1
MJ Logipark Inzai 1

MJIA-sourced

Multi-tenanted type

PDP

■Logistics facility located in logistics hub in inland Chiba suitable for managing
Eastern Metropolitan area

MJ Logipark Takatsuki 1

Property Characteristics■A 4-story box type logistics facility withfunctionality and convenience for versatile use■Minimum floor area 4,200m2 allowing both
operating and storage efficiency■A 3-story above ground multi-tenant
logistics facility■2 cargo elevators and 4 vertical conveyors
allow for sufficient vertical transport capacity■Employee parking accommodating 53 cars
allowing car commute

Main Highway

Main Highway

Acquisition Price

4,353 mn yen

Appraisal Value

5,180 mn yen

Appraisal NOI Yield

5.1%

Location

Inzai, Chiba

Year Built

July 2021

Total Floor Area

20,993.81m

2Land Area

12,405.04m

2

No. of Tenants

1

Main Tenant

Seino Transportation
Co., Ltd.

Acquisition Price

5,500 mn yen

Appraisal Value

6,510 mn yen

Appraisal NOI Yield

4.8%

Location Characteristics

LocationTakatsuki, Osaka■Inzai area is located inland Chiba, where logistics
properties for consumer goods (foods, generalmerchandise and e-commerce, etc.) are concentrated■Location suitable for regional and wide-area delivery
operation, supported by the artery road National Route16 and network of expressways accessible via Chiba
Kita IC■Located in the industrial area where impacts fromsurrounding environment is limited

Year Built

May 2021

Total Floor Area

20,842.80m2

Land Area

9,915.37m2

No. of Tenants

1

Main Tenant

LONCO JAPANTenants Invitation Utilizing
MEC Group’s Diverse Networks
Leased up before construction completion
utilizing relationship between MEC Groupand tenants
Relationship

TenantMoving in theProperty

Multi-tenanted type

PDP

■Logistics facility with great access to major highways that provides coverage in Osakaand Kyoto

Property Characteristics■Approx. 15km from Chiba Kita IC on the
Higashi-Kanto Expressway■Approx. 26km from Kashiwa IC on the Joban
Expressway■Approx. 3km from National Route 464■Approx. 6km from National Route 16

MJIA-sourced■Approx. 7km from Takatsuki IC on the ShinMeishin Expressway■Approx. 9km from Settsu Kita IC on the Kinki
Expressway■Approx. 9km from Katano Minami IC on the DainiKeihan Road
■Approx. 2.5km from National Route 171

Location Characteristics■Favorable location situated between Osaka and Kyoto,
which enables collection and delivery throughout theKansai region, via expressways and artery roads■Located in Takatsuki area where beverage andcommodity plants gather; there are various
manufacturing bases in the adjacent Ibaraki and
Hirakata cities.
■The location potential will be maximized with theextension of Shin-Meishin Expressway

Swift Property Development Utilizing
Relationship between MJIA and Tenants
Swift property development enabled bycatching demand from tenants leveraging
MJIA's tenant relations

Long-term Grasping
Relationship Demand

TenantMoving intheProperty

Swift Development

42

Properties Acquired during 13th FP:
MJ Logipark Higashi Osaka 1 and MJ Industrial Park Kawanishi (Land)
MJIA-sourced

MJ Logipark Higashi Osaka 1Bridge fund

BTS-type
CRE■Logistics facilities with excellent proximity to Osaka City, the nodule of majorarterial roads

MJ Industrial Park Kawanishi (Land)

Property Characteristics■Used as a roadside sales site for a major used car dealer■With long-term fixed lease contracts with tenants in place,stable and long-term income flow is expected■The Kawanishi area and vicinity have a large population as apopular bedroom suburb of Osaka metropolitan area
■Located close to the station and along National Route 173,
the land is suitable for roadside store■A 5-story above ground BTS logistics
facility (with 3-story storage)■Truck berths located south and east
enabling efficient entry and exit
■2 cargo elevators and 2 vertical conveyors
allow for sufficient transport and storage
capacity■Located in an industrial park, logistics
storage can be operated 24 hours
1,687 mn yen

Appraisal Value

2,050 mn yen

Appraisal NOI Yield

5.3%

Location

Higashiosaka,
Osaka

Year Built

April 1991

Total Floor Area

10,185.04m

Land Area

4,727.69m2

No. of Tenants

1

Main Tenant

Nakajima Express
Co., Ltd.

2Main Highway

Acquisition Price

2,125 mn yen■Approx. 2.5km from the Ikeda Kibe Daini IC on the
Hanshin Expressway No.11 Ikeda Line
■Approx. 6km from the Kawanishi IC on ShinMeishin Expressway

Appraisal Value

2,600 mn yen

Location Characteristics

Appraisal NOI
Yield

4.4%

Location

Kawanishi, Hyogo

Land Area

9,353.48m2

Main Tenant

Not disclosed■A 3-minute walk from Tsuzumigataki Station on the Nose
Electric Railway■Further convenience with expected full opening of the ShinMeishin Expressway (scheduled for FY2027)■Close to the two major consumption areas in Kinki area;
22km from JR Osaka station and 42km from JR Sannomiya
station and covering wider West Japan

Main Highway■Approx. 3km from the Mizuhai IC on the Hanshin
Expressway No. 13 the Higashi Osaka Line
■Approx. 4.5km from the Higashi Osaka JCT on the Kinki
Expressway and Hanshin Expressway■Approx. 750m from National Route 170 (Osaka Outer
Loop Line)

Location Characteristics■Located in Higashi Osaka where Kinki Expressway,
Hanshin Expressway, and Daini-Hanna Toll Road crosses
and provides convenience■Less than 30 minutes access to central Osaka area andalso provides access to Kobe and Kyoto■Competitive location as supply of high-quality logistics
facility is limited yet demand is existent in the area

Property Acquisition
with the CRE Strategy
Acquisition with sellers’ sell-and-leaseback rightSeller/Tenant

Property Acquisition
with the CRE Strategy
Acquiring properties that meet the sellers' need tosell and the tenants' need for new locations

SellerLend and Use
Sell

Sell
Building

Land
Ownership

Lease

CRE

Bridge fund

■CRE project in inland Kinki area that grasps both seller and tenant’s needs

Property Characteristics

Acquisition Price

MJIA-sourced

Building Owner/Tenant

Construction
Ownership

Land Lease

Building

Land
Land Ownership43Overview of Portfolio(1)Property Name

Properties
AcquiredBy 12th FP

Location

AcquisitionPrice(mn yen)

Ratio
(%)

AppraisalValue(mn yen)Appraisal
NOI Yield
(%)

Total
Leasable
Area (㎡)Occupancy
Rate（%）

Property
Age(years)Property
Type

Logicross Fukuoka Hisayama

Kasuya, Fukuoka

5,770

2.2

7,810

6.1

34,878.55

100.0

7.9

Multi

Logicross Atsugi

Atsugi, Kanagawa

8,440

3.2

9,440

4.5

29,895.80

100.0

5.5

Multi

Logicross Kobe Sanda

Kobe, Hyogo

3,900

1.5

4,400

5.1

12,844.35

100.0

5.2

BTS

Logicross Osaka

Osaka, Osaka

9,743

3.7

10,3004.3

35,616.58

100.0

3.9

Multi

Logicross Nagoya Kasadera

Nagoya, Aichi

14,424

5.5

17,3005.0

62,289.08

100.0

3.6

Multi

Logicross Narashino

Narashino, Chiba

11,851

4.5

12,400

4.3

39,132.05

100.0

4.4

Multi

Logicross Atsugi II

Atsugi, Kanagawa

9,838

3.8

10,500

4.4

34,580.85

100.0

3.1

Multi

LOGIPORT Sagamihara(49% co-ownership interest)

Sagamihara, Kanagawa

21,3648.2

24,5004.7

88,609.64

99.7

9.0

Multi

LOGIPORT Hashimoto(45% co-ownership interest)

Sagamihara, Kanagawa

18,2007.0

21,600

4.7

58,487.96

100.0

7.6

Multi

LOGIPORT Osaka Taisho(37.5% co-ownership interest)

Osaka, Osaka

10,4844.0

12,187

4.6

40,081.56

100.0

4.5

Multi

LOGIPORT Kawasaki Bay(45 % co-ownership interest)

Kawasaki, Kanagawa

36,00013.8

40,680

4.4

117,762.91

99.9

3.3

Multi

MJ Logipark Funabashi 1

Funabashi, Chiba

5,400

2.1

6,690

6.6

18,232.07

100.0

32.7

Multi

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

2.5

7,190

4.5

28,002.44

100.0

9.1

Multi

MJ Logipark Kazo 1

Kazo, Saitama

1,272

0.5

1,560

5.7

7,678.10

100.0

16.4

Multi

MJ Logipark Osaka 1

Osaka, Osaka

6,090

2.3

8,120

5.8

39,082.95

100.0

14.9

Multi

MJ Logipark Fukuoka 1

Kasuya, Fukuoka

6,130

2.3

7,230

5.7

38,143.21

100.0

14.9

Multi

Note: As of Aug. 31, 2022 . However, for the Properties (to be) Acquired during 13th FP, appraisal value and appraisal NOI yield are as of Sept. 1, 2022.

44

Overview of Portfolio(2)Property Name

Properties
AcquiredBy 12th FP

Location

Ratio
(%)

AppraisalValue(mn yen)Appraisal
NOI Yield
(%)

Total
Leasable
Area (㎡)Occupancy
Rate（%）

Property
Age(years)PropertyType

MJ Logipark Tsuchiura 1

Tsuchiura, Ibaraki

3,133

1.2

3,570

5.3

15,485.00

100.0

7.8

BTS

MJ Logipark Nishinomiya 1

Nishinomiya, Hyogo

2,483

0.9

2,710

5.7

13,777.07

100.0

31.4

BTS

MJ Logipark Kasugai 1

Kasugai, Aichi

13,6705.2

15,1004.8

57,866.98

100.0

5.6

Multi

MJ Logipark Kazo 2

Kazo, Saitama

1,637

0.6

1,720

5.0

7,349.18

100.0

23.7

BTS

MJ Logipark Sendai 1

Tagajo, Miyagi

7,388

2.8

7,660

5.1

39,098.87

100.0

13.4

Multi

MJ Industrial Park Sakai（Land）

Sakai, Osaka

5,600

2.1

5,780

3.8

87,476.71

100.0

-

Land

MJ Industrial Park Kobe（Land）

Kobe, Hyogo

4,970

1.9

5,720

5.1

31,743.99

100.0

-

Land

MJ Industrial Park Chiba-Kita（Land）

Chiba, Chiba

1,800

0.7

1,980

4.4

14,986.64

100.0

-

Land

216,24282.6

246,147

4.8

953,102.54

100.0

7.5

-

Sub total

Properties(to be)Acquired
during13th FP（Anticipated)
AcquisitionPrice(mn yen)LOGiSTA･Logicross Ibaraki Saito (A)(45% co-ownership interest)

Ibaraki, Osaka

15,1505.8

15,7004.2

45,983.59

100.0

1.3

Multi

LOGiSTA･Logicross Ibaraki Saito (B)(45% co-ownership interest)

Ibaraki, Osaka

3,900

1.5

3,980

4.3

14,012.95

100.0

1.3

Multi

Logicross Yokohama Kohoku

Yokohama, Kanagawa

7,821

3.0

8,110

4.1

16,371.24

100.0

3.2

Multi

MJ Logipark Funabashi 2

Funabashi, Chiba

4,880

1.9

6,500

5.3

19,219.10

100.0

0.5

Multi

MJ Logipark Inzai 1

Inzai, Chiba

4,353

1.7

5,180

5.1

20,980.63

100.0

1.1

Multi

MJ Logipark Takatsuki 1

Takatsuki, Osaka

5,500

2.1

6,510

4.8

20,897.84

100.0

1.3

Multi

MJ Logipark Higashi Osaka 1

Higashiosaka,Osaka

1,687

0.6

2,050

5.3

10,185.04

100.0

31.3

BTS

MJ Industrial Park Kawanishi (Land)

Kawanishi, Hyogo

2,125

0.8

2,600

4.4

9,353.48

100.0

-

Land

Sub total

45,41717.4

50,6304.5

157,003.87

100.0

2.7

-

Total / Average

261,659

100.0

296,777

4.7

1,110,106.41

100.0

6.7

-

Note: As of Aug. 31, 2022 . However, for the Properties (to be) Acquired during 13th FP, appraisal value and appraisal NOI yield are as of Sept. 1, 2022.

45

Summary of Latest Appraisals(1)Property Name

Properties
AcquiredBy 12th FP

Acquisition Date

Acquisition Price（unit：million yen)
Book
Value
at endof12th FP

12th FP (Ended Aug.31,2022) (Note 1)

11th FP (Ended Feb. 28,2022) (Note 2)

Appraisalvalue

Direct cap
rate (%)

Appraisalvalue

Direct cap rate(%)

Difference

Appraisal Direct cap rate
value
(%)

Unrealized
gain

Logicross Fukuoka Hisayama

Sept. 2017

5,770

5,426

7,810

4.4

7,650

4.5

+160

-0.1

2,383

Logicross Atsugi

Sept. 2018

8,440

8,284

9,440

4.0

9,440

4.0

±0

±0

1,155

Logicross Kobe Sanda

Sept. 2018

3,900

3,828

4,400

4.4

4,400

4.4

±0

±0

571

Logicross Osaka (Note 3)① Sept.2020② Mar. 2021

① 5,874② 3,868

9,700

10,3004.0

10,300

4.0

±0

±0

599

Logicross Nagoya Kasadera (Note 3)① Sept.2020② Mar. 2021

① 8,705② 5,719

14,41017,3004.1

16,900

4.2

+400

-0.1

2,889

Logicross Narashino

Mar. 2021

11,851

11,87012,4004.0

12,400

4.0

±0

±0

529

Logicross Atsugi II

Mar. 2022

9,838

9,952

10,5004.0

10,500

4.0

±0

±0

547

LOGIPORT Sagamihara(49% co-ownership interest)

Sept. 2017

21,364

20,53724,5004.0

24,000

4.1

+500

-0.1

3,962

LOGIPORT Hashimoto(45% co-ownership interest)

Sept. 201718,20017,561

21,6003.9

21,600

3.9

±0

±0

4,038

LOGIPORT Osaka Taisho(37.5% co-ownership interest)(Note 4)① Oct. 2019
② Sept.2020① 5,682② 4,802

10,376

12,187

3.9

11,850

4.0

+337

-0.1

1,810

LOGIPORT Kawasaki Bay(45 % co-ownership interest)

Mar. 2022

36,00036,14540,6803.8

40,365

3.8

+315

±0

4,534

MJ Logipark Funabashi 1

Sept. 2016

5,400

5,292

6,690

4.9

6,690

4.9

±0

±0

1,397

MJ Logipark Atsugi 1

Sept. 2017

6,653

6,408

7,190

4.1

7,190

4.1

±0

±0

781

MJ Logipark Kazo 1

Sept. 2017

1,272

1,210

1,560

4.5

1,520

4.6

+40

-0.1

349

MJ Logipark Osaka 1

Sept. 2017

6,090

5,893

8,120

4.2

7,130

4.2

+990

±0

2,226

MJ Logipark Fukuoka 1

Sept. 2017

6,130

5,698

7,230

4.6

6,720

4.7

+510

-0.1

1,531

Sub total:9,743

Sub total:14,424

Sub total:10,484

Note 1: As of Aug. 31, 2022. However, for the Properties（to be) Acquired during 13th FP, appraisal value and direct cap rate are as of Sept. 1, 2022.
Note 2: As of Feb. 28, 2022. However, for Logicross Atsugi Ⅱ and LOGIPORT Kawasaki Bay(45% co-ownership interest), appraisal value and direct cap rate are as of Dec. 20, 2021.
Note 3: "Acquisition Date" and "Acquisition Price" of "Logicross Osaka" and "Logicross Nagoya Kasadera" is 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-ownership interest acquired on Mar. 9, 2021
Note 4: "Acquisition Date" and "Acquisition Price" of "LOGIPORT Osaka Taisho" is shown with the number on the top refers to the 20 % co-ownership interest acquired on Oct. 9, 2019, and the bottom refers to the 17.5% co-ownership interest acquired on Sept. 1, 202046

Summary of Latest Appraisals(2)Property Name

Properties
AcquiredBy 12th FP

Acquisition Date

Acquisition Price

Book
Value
at endof12th FP

12th FP (Ended Aug.31,2022) (Note 1)

11th FP (Ended Feb. 28,2022) (Note 2)

Appraisalvalue

Direct cap
rate (%)

Appraisalvalue

Direct cap rate(%)

Difference
Appraisal Direct cap rate
value
(%)

Unrealizedgain

MJ Logipark Tsuchiura 1

Sept. 2019

3,133

3,095

3,570

4.6

3,490

4.7

+80

-0.1

474

MJ Logipark Nishinomiya 1

Oct. 2019

2,483

2,558

2,710

4.7

2,690

4.7

+20

±0

151

MJ Logipark Kasugai 1

Oct. 201913,67013,43915,1004.2

14,700

4.3

+400

-0.1

1,660

MJ Logipark Kazo 2

Sept.2020

1,637

1,683

1,720

4.3

1,720

4.3

±0

±0

36

MJ Logipark Sendai 1

Sept.2020

7,388

7,298

7,660

4.7

7,670

4.7

-10

±0

361

MJ Industrial Park Sakai（Land）

Oct. 2019

5,600

5,666

5,780

3.7

5,780

3.7

±0

±0

113

MJ Industrial Park Kobe（Land）

Mar. 2021

4,970

5,202

5,720

4.0

5,710

4.0

+10

±0

517

MJ Industrial Park Chiba-Kita（Land）

Mar. 2021

1,800

1,914

1,980

4.3

1,970

4.3

+10

±0

65

216,242

213,459

246,147-

242,385

-

3,762

-

32,688Sub total

Properties(to be)Acquired
during13th FP（Anticipated)（unit：million yen)

LOGiSTA·Logicross Ibaraki Saito(A)(45% co-ownership interest)

Oct. 2022

15,150-15,700

4.0

-

-

-

-

-

LOGiSTA·Logicross Ibaraki Saito(B)(45% co-ownership interest)

Oct. 2022

3,900

-

3,980

4.1

-

-

-

-

-

Logicross Yokohama Kohoku

Oct. 2022

7,821

-

8,110

3.8

-

-

-

-

-

MJ Logipark Funabashi 2

Dec. 2022(planned)

4,880

-

6,500

3.8

-

-

-

-

-

MJ Logipark Inzai 1

Oct. 2022

4,353

-

5,180

4.1

-

-

-

-

-

MJ Logipark Takatsuki 1

Oct. 2022

5,500

-

6,510

3.9

-

-

-

-

-

MJ Logipark Higashi Osaka 1Oct. 2022

1,687

-

2,050

4.2

-

-

-

-

-

MJ Industrial Park Kawanishi (Land)

Oct. 2022

2,125

-

2,600

3.9

-

-

-

-

-

45,417-50,630

-

-

-

-

-

-

296,777

-

-

-

-

-

-

Sub total

Total

261,659-

Note 1: As of Aug. 31, 2022. However, for the Properties（to be) Acquired during 13th FP, appraisal value and direct cap rate are as of Sept. 1, 2022.
Note 2: As of Feb. 28, 2022. However, for Logicross Atsugi Ⅱ and LOGIPORT Kawasaki Bay(45% co-ownership interest), appraisal value and direct cap rate are as of Dec. 20, 2021.
Note 3: "Acquisition Date" and "Acquisition Price" of "Logicross Osaka" and "Logicross Nagoya Kasadera" is 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-ownership interest acquired on Mar. 9, 2021
Note 4: "Acquisition Date" and "Acquisition Price" of "LOGIPORT Osaka Taisho" is shown with the number on the top refers to the 20 % co-ownership interest acquired on Oct. 9, 2019, and the bottom refers to the 17.5% co-ownership interest acquired on Sept. 1, 2020

47

Statement of Income and Balance Sheet
Statement of Income
Item
Operating revenues
Operating rental revenues

Other rental revenues
Operating expenses
Expenses related to property rental business

Asset management fee
Asset custody fee(Unit：Thousands of yen)

(Unit：Thousands of yen)

Item

Actual6,276,799
5,934,447
342,352
2,946,887
2,221,313
527,144
1,690

Administrative service fee

18,860

Director’s compensations

2,400

Commission paid

136,112

Other operating expenses

39,366

Operating income

Balance Sheet

3,329,911

Current assets

Actual
14,661,691

Cash and deposits

4,241,958

Cash and deposits in trust

8,546,883

Other current assets

1,872,849

Total fixed assets
Property and equipment
Intangible assets
Investments and other assets
Total assets

Current liabilities

Operating accounts payable

213,511,916
213,459,256
626
52,033
228,173,608

8,330,104

313,482

Short-term loans

2,700,000

Long-term loans payable due within one year

3,310,000

Non-operating income

587

Accrued expenses

12,075Interest income

58

Advances received

1,107,517

Reversal of distributions payable529

Non-operating expenses

349,807

Interest expenses

175,254

Interest expenses on investment corporation bonds

7,038

Borrowing related expenses

4,328

Reduction entry of tangible fixed assets

163,186

Ordinary income

2,980,692

Net income

2,979,844

Unappropriated retained earnings

2,980,006

Other current liabilities

Non-current liabilities

887,028

80,220,439

Investment Corporation Bonds

2,000,000

Long-term loans payable

74,064,000

Tenant leasehold and security deposits in trust

4,156,439

Total liabilities

88,550,544

Total unitholders’ equity

139,623,063

Unitholders’ capital, net

136,643,057

Surplus2,980,006

Total net assets

139,623,063

Total liabilities and net assets

228,173,608

48

Debt ① (As of Oct. 25, 2022)
Category

Short-term

Lenders

Borrowing Date

Repayment Date

Mar. 1, 2022

Mar. 1, 2023

Sept. 14, 2022

Sept. 14, 2023

2,700

Base rate(JBA 1-month JPY TIBOR)+0.0700%

MUFG Bank

430

Base rate(JBA 1-month JPY TIBOR)+0.1100%

Sumitomo Mitsui Banking Corporation

2,880

Base rate(JBA 1-month JPY TIBOR)+0.1500%

Mizuho Bank

2,900

Base rate(JBA 1-month JPY TIBOR)+0.0700%

Oct, 25, 2022

Oct, 25, 2023

8,910

-

-

-

Floating
rate

Fixed rate

Interest Rate

Mizuho Bank

Sub-total

Long-term

Balance(mn yen)

MUFG Bank

1,760

Mizuho Bank

1,330

0.39130%450

The Bank of Fukuoka

900

0.42880%

MUFG Bank620

0.46750%

MUFG Bank

710

0.50750%

Sept. 14, 2026

MUFG Bank

2,680
0.55000%

Sept. 14, 2027

Sept. 14, 2017-

Sept. 14, 2024

Sept. 14, 2025

Sumitomo Mitsui Banking Corporation

880

Mizuho Bank

880

The Norinchukin Bank

800

0.39500%

Sept. 14, 2025

Shinsei Bank500

0.45380%

Sept. 14, 2026

Mizuho Bank

830

Sept. 14, 2018

The Bank of Fukuoka

807

Shinkin Central Bank

1,256

Sumitomo Mitsui Banking Corporation

3,000

0.25000%

Sept. 2, 2019

Sept. 2, 2023

MUFG Bank

4,000

0.49000%

Sept. 30, 2019

Sept. 30, 2029

The Norinchukin Bank

1,250

The Shinkumi Federation Bank

1,250

0.57500%

Unsecured
Unguaranteed

Sept. 14, 2028

0.18000%

Oct. 9, 2024

MUFG Bank

200

Mizuho Bank

2,400

The 77 Bank400

Shinsei Bank

1,250

0.24000%

Oct. 9, 2027

750

0.42000％

Oct. 10, 2028

The Bank of Fukuoka

Unsecured
Unguaranteed

Sept. 14, 2023

The Bank of Fukuoka

0.21600%
0.26000%

CollateralOct. 9, 2025
Oct. 9, 2019

Oct. 9, 2026

49

Debt ② (As of Oct. 25, 2022)
Category

Lenders

Fixed rate

Interest Rate

Sumitomo Mitsui Banking Corporation

1,150

The Shinkumi Federation Bank

1,500

Borrowing Date

0.20000％

300

The Norinchukin Bank

800

0.26630%

The Norinchukin Bank500

0.31250%

The Bank of Fukuoka

900

The 77 Bank

500

Mizuho Bank

1,750

0.41822%

MUFG Bank

2,000

0.46832%

0.42380%

The Yamanashi Chuo Bank

500

The Yamaguchi Bank

500

Shinkin Central Bank

750

0.24130％

Repayment Date

Sept. 1, 2025

Sept. 1, 2026
Sept. 1, 2020

Sept. 1, 2028
Sept. 1, 2029

Aug. 30, 2030

0.50000%
Oct. 9, 2020

Oct. 9, 2025

1,350

0.21000%

Mar. 9, 2025

Shinkin Central Bank

900

0.36630%

Mar. 9, 2027

The Norinchukin Bank

900

The Chiba Bank800

0.43130%

Mar. 9, 2028

The Bank of Fukuoka

500

The 77 Bank

500

THE NISHI-NIPPON CITY BANK

500

0.50130%

Mar. 9, 2021

1,050

0.55487%

Mar. 9, 2030

MUFG Bank

1,000

0.61761%

Mar. 7, 2031

The Yamaguchi Bank

1,000

0.65000%

Mar. 9, 2033

MUFG Bank

800

0.39630%

MUFG Bank

1,000

0.46630%500

0.25000％720

0.37380%1,491

0.44000%

Mizuho Bank
Development Bank of Japan

Mar. 19, 2021
Sept. 1, 2021
Sept. 14, 2021

Unsecured
Unguaranteed

Mar. 9, 2029

Mizuho Bank

Sumitomo Mitsui Trust Bank

Collateral

Sept. 1, 2024

0.20000%

The Bank of Toyama

Sumitomo Mitsui Banking Corporation
Long-term

Balance(mn yen)Mar. 19, 2028
Mar. 19, 2029
Sept. 1, 2026
Sept. 14, 2028
Sept. 14, 2029

50

Debt ③ (As of Oct. 25, 2022)
Category

Fixed rate

Lenders

Floating
rate

Fixed rate

Interest Rate

Borrowing Date

Repayment Date

Sumitomo Mitsui Banking Corporation

1,000

0.22000%

Mar. 1, 2026

The Shinkumi Federation Bank

2,000

0.25000%

Mar. 1, 2027

THE NISHI-NIPPON CITY BANK

500

0.45750%

Mar.1, 2028

0.52630％

Mar. 1, 2029

MUFG Bank

1,000

The 77 Bank

500

The Chiba Bank

500

The Hachijuni Bank

1,000

Daiwa Next Bank

1,000

The Keiyo Bank

500

The Chugoku Bank

500

The Bank of Fukuoka

1,000

Mizuho Bank

1,000

THE NISHI-NIPPON CITY BANKLongterm

Balance(mn yen)500

0.56615%

Mar. 1, 2022

0.63400%

CollateralMar. 1, 2030
Mar. 1, 2031

Shinkin Central Bank

2,000

Shinsei Bank

1,000

The Yamaguchi Bank

1,000

The Yamagata Bank

1,000

The Gunma Bank

1,000

Kansai Mirai Bank

1,000

The Norinchukin Bank

2,000

0.71250%

The Yamanashi Chuo Bank

1,000

0.50000%

The Resona Bank

2,000

Base rate(JBA 3-month JPY TIBOR)+0.1500%

Oct. 25, 2025

Sumitomo Mitsui Banking Corporation

1,000

0.33000％

Oct. 25, 2026

The Chiba Bank

2,000

Daiwa Next Bank

1,000

The Yamagata Bank

1,000

Daishi Hokuetsu Bank

1,000

Unsecured
Unguaranteed

0.70250％
Mar. 1, 2032

Oct. 25, 2022
0.55625%

Oct. 25, 2027

51

Debt ④ (As of Oct. 25, 2022)
Category

Longterm

Fixed rate

Lenders

Fixed rate

Interest Rate

Borrowing Date

Repayment Date

Collateral

The Yamagata Bank

1,000

0.65750％

Oct. 25, 2028

Daiwa Next Bank

1,000

0.76250%

Oct. 25, 2029

Mizuho Bank

1,000

The Resona Bank

3,000

The Norinchukin Bank

2,000

0.96125%

The Resona Bank

1,000

1.04375%

Sub-total

91,064----

99,974

-

-

-

-

2,000

0.70000％

Apr. 14, 2021

Apr. 14, 2036

Unsecured
Unguaranteed

101,974

-

-

-

-

Sub-total

Investment
Corporation
Bond

Balance(mn yen)

1st Series Unsecured Bonds

Total

0.95125%

Oct. 25, 2022

Oct. 25, 2031

Unsecured
Unguaranteed

Oct. 25, 2032

52

Unitholders Composition
Major Unitholders

Breakdown by Units

Number of
Units

Ratio
(%)

Custody Bank of Japan, Ltd. (Trust Account)

80,907

17.98

The Master Trust Bank of Japan, Ltd. (Trust Account)

79,296

17.62

The Nomura Trust and Banking Company, Ltd.
(Trust Account)

22,6085.02

Mitsubishi Estate Co., Ltd.

18,350

4.07

STATE STREET BANK WEST CLIENT – TREATY 505234

7,010

1.55

The Shinkumi Federation Bank

6,520

1.44

SSBTC CLIENT OMNIBUS ACCOUNT

6,112

1.35

JP MORGAN CHASE BANK 385781

5,744

1.27

SMBC Nikko Securities

5,419

1.20

Mitsubishi UFJ Trust and Banking Corporation

5,413

1.20

237,379

52.75

3.3%

7.4%
22.0%

449,935
units

6.2%

61.0%

Domestic individuals
and others：33,491 units

Financial institutions：274,687 units

Domestic entities：27,916 units

Foreign entities：99,010 units

Securities Companies：14,831 units

Breakdown by Unitholders
2.6%
1.8%

2.0%

0.2%

9,471
unitholders

93.1%

Domestic individuals
and others：8,822 unitholders

Financial institutions：177 unitholders

Domestic entities：255 unitholders

Foreign entities：197 unitholders

Securities Companies：20 unitholders

Total

Same-boat Investment by MEC
Investment in
MEL by MEC

c. 4.1%

Note: As of Aug. 31, 2022

53

MEMO

Disclaimer
This document is provided solely for informational purpose with regard to Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) and is not intended to serve as an inducement or solicitation to trade inany product offered by MEL.

Purchase, sale and such of MEL’s investment units entail the risk of incurring a loss due to fluctuations of the investment unit price.
Please consult with a securities company regarding the purchase of MEL’s investment units or investment corporation bonds. Information presented on this document should not be interpreted, unless otherwise
specified, as constituting disclosure documents or asset management report required under Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.

The information contained in this document is the best available at the time of publication, however, no assurances can be given regarding the accuracy, validity and completeness of this information.
Furthermore, MEL and Mitsubishi Jisho Investment Advisors, Inc. (the “Asset Management Company”) assume no responsibility for the accuracy of the data, indices and other information release by third parties(including data based on real estate appraisal reports).
This document includes forward-looking statements that reflect MEL’s plans and expectations. Any information contained in this document except facts about the past and present is referred to as such forwardlooking statements. These forward-looking statements are based on the current assumptions and beliefs of MEL or the Asset Management Company in light of the information currently available to them, andinvolve known and unknown risks, uncertainties and other factors, and may be affected by such factors. These factors include risks related to MEL’s internal and external growth and risks related to the
profitability per investment unit. Such risks, uncertainties and other factors may cause MEL’s actual results, performance, achievements or financial position expressed or implied by these forward-looking
statements. MEL and the Asset Management Company undertake no obligation to publicly update any forward-looking statements after the date of this document.
The content of this document is subject to change or repeal without prior notice.
Duplication or reproduction of any content presented in this document without the prior consent of MEL or Mitsubishi Jisho Investment Advisors, Inc. is strictly prohibited.
The document is prepared solely for use by residents of Japan and is not intended for use by non-residents of Japan