August 21, 2020
To All Concerned Parties
Name of REIT Issuer:
CRE Logistics REIT, Inc.
2-10-1, Toranomon, Minato-ku, Tokyo, Japan
Tsuyoshi Ito, Executive Director(TSE Code: 3487)
Asset Management Company
CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Person of Contact:
Hirohisa Toda, Head of Corporate Planning
Tel: +81-3-5575-3600

Notice Concerning Submission of Revised Shelf Registration Statement for
Issuance of Green Bonds
CRE Logistics REIT, Inc. (hereinafter “CRE REIT”) hereby announces that it has today
submitted the revised shelf registration statement for the issuance of the (undecided) series ofunsecured bonds of CRE Logistics REIT , Inc. (pari passu conditions among specified investment

corporation bonds) (Green bonds) ( hereinafter the “Green Bonds” ) (also called the "CRE GreenBonds") to the Director-General of the Kanto Local Finance Bureau . Details are as follows.
１．Content of the revised shelf registration statement for issuance of the Green Bonds
Today, CRE REIT submitted the revised shelf registration statement for investment

corporation bonds to the Director-General of the Kanto Local Finance Bureau to enable CREREIT to issue the Green Bonds. For the issuance of the Green Bonds, CRE REIT will appoint
SMBC Nikko Securities Inc. (Green Bond structuring agent), Nomura Securities Co., Ltd., andMizuho Securities Co., Ltd. as the lead managing underwriters to examine whether the issuanceof the Green Bonds is possible and issue terms such as an interest rate.
The entire amount of the proceeds from the Green Bonds is to be appropriated for funds to acquire
specified assets that meet the eligibility criteria (stated in "3. Overview of green finance framework"
below) (hereinafter the " Green Qualifying Assets" ) or repay borrowings required to acquire theGreen Qualifying Assets.
(Note) “Green Bond structuring agent” is one who supports the issuance of green bonds in formulation of a green bondframework and advices on acquiring second-party opinions.

2. Purpose and background of the issuance of the Green Bonds

CRE, Inc. (hereinafter "CRE"), the sponsor of CRE REIT, establishes a management
philosophy of "Ei (Eternal), Toku (Virture) and Kan (Cycle)" for the CRE Group to realize (1)"Ei" that indicates an attitude of constantly contributing to social development, (2) "Toku" to act
for the betterment of others and society, and (3) "Kan" to value connections with society and aim

1to create a circular society of the future. As part of a policy that considers the environment, CRE
acquires the BELS evaluation in the development stage of logistics facilities and develops pro perties
taking into account the environment, for example, by installing solar panels, introducing LED
lighting and using exterior wall panels with high environmental performance in its development
properties. CRE is also able to contribute to local communities by creating jobs through thedevelopment of logistics facilities.
CRE REIT believes that the acquisition of environmentally conscious logistics facilities will leadto the sustainable growth of society and sets a policy of acquiring properties to compose themajority of its portfolio with the Green Qualifying Assets (based on the acquisition value). CRE
REIT will also actively consider the introduction of additional equipment that is deemed tocontribute to environmental improvement, not only to acquire environmentally conscious
logistics facilities.
As one of the measures to enhance its financing methods, CRE REIT is considering financing
through the issuance of green bonds and will submit the revised shelf registration statement for theissuance of the Green Bonds this time to grasp the level of expe ctations for the environment, social,governance (ESG) as a financing method through dialogues with many institutional investors with aninterest in ESG in the process of financing and reflect its content on the asset management.
3. Overview of a green finance framework
To conduct green financing including the issuance of the Green Bonds, CRE REIT has formulated
a green finance framework (hereinafter the "Green Finance Framework") in accordance with theGreen Bond Principles 2018 (Note 1), the Green Bond Guidelines 2020 (Note 2), the Green LoanPrinciples (Note 3) and the Green Loan and Sustainability Linked Loan Guidelines 2020 (Note4).
For the content of the Green Finance Framework, refer to the following.
Content of the Green Finance Framework:(1) Use of the proceeds from green finance
CRE REIT will appropriate the p roceeds from the Green Bonds or green loans for funds toacquire specified assets that will meet the eligibility criteria in (2) below (the Green Qualifying
Assets) or refinance borrowings required for acquiring the Green Qualifying Assets.
(2) Eligibility criteria
Assets that meet the eligibility criteria are assets that have already acquired or updated or will
acquire or update any of the certifications of the following third-party assessment bodies.
(i) Five or four stars in the DBJ Green Building certification(ii) Rank S or A in the CASBEE Certification for Buildings (New Construction) of theCASBEE for Real Estate Certification(iii) Five or four stars in the BELS Certification2(3) Evaluation and selection process of projects
Projects for which the proceeds from green finance will be used are evaluated and selected after
the person in charge in the Corporate Planning Department of CRE REIT Advisers, Inc., the asset

management company of CRE REIT (hereinafter the "Asset Management Company"),
examined the conformity to the eligibility criteria and consulted with the Investment
Management Department that is in charge of the acquisition of properties.
For the implementation of green finance, the person in charge in the Corporate Planning

Department of the Asset Management Company will create a plan, which will be deliberatedand approved by the Investment Committee and resolved by the Board of Directors throughconfirmation by the representative director and president of the Asset Management Companyand approved by the resolution of the Board of Directors of CRE REIT.
(4) Management of proceeds
Proceeds from green finance will be appropriated for funds to acquire the Green Qualifying
Assets or refinance the funds promptly or without delay after the financing.

Until theappropriation of the proceeds is determined, the proceeds will be managed in cash or cash
equivalents.
The portfolio management (management method of ensuring each fiscal period that the total

amount of balances of green finance will not exceed the upper limit of green eligible liabilities(the total amount of assets that meet the eligibility criteria (acquisition value) x Total assets
LTV) will be applied to the management of the balances of green finance until the green financeis redeemed or repaid, and the management of unappropriated funds in cases where theunappropriated funds arise temporarily from the sale or damage of assets for which theproceeds will be used.
(5) Reporting
If there are unappropriated funds at the time of issuing the Green Bonds or borrowing green
loans, CRE REIT will disclose an appropriation plan, etc. on its website once a year. In addition,
if a property for which the proceeds will be used will no longer be a subject of the use of proceeds
due to its sale, etc., CRE REIT will disclose this in its press release, etc.
CRE REIT will also disclose the following items on its website once a year.

・Type and rank of environmental certifications and total floor area of the Green Qualifying
Assets・Specific quantities consumed in the properties meeting the eligibility criteria (limited to those
whose figures can be identified on a portfolio basis by CRE REIT,)
Water consumption

Electricity usage
CO2 emissions (or reductions)3

(Note 1) “Green Bond Principles 2018” is the internationally-recognized guidelines for issuance of green bonds, stipulated
by Green Bond Principles Executive Committee, a private organization administered by the International CapitalMarket Association (ICMA).
(Note 2) “Green Bond Guidelines 2020” is guidelines established and announced by Ministry of the Environmen t in March
2017,and revised in March 2020 in consideration of consistency with Green Bond Principles, provide issuers,
investors and other market participants with illustrative examples of specific approaches and interpretations which
are tailored to Japan’s bond market to aid with decision-making regarding green bonds, for the purpose of further
increase in issuance of green bonds in the domestic market.
(Note 3) "Green Loan Principles" is a guideline for financing that restricts applications to the enviro nmental field establishedby the Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA).
(Note 4) "Green Loan and Sustainability Linked Loan Guidelines 2020" refers to the guidelines formulated and published by
the Ministry of the Environment in March 2020. The guidelines provide examples of concrete responses that can beused by borrowers, lenders, and other officials of relevant organizations when examining concrete responses to green
loans, and interpret them in accordance with the characteristics of Japan, in order to further promote green loans inJapan, while giving consideration to the consistency of green loans with the principles of green loans.

4. Evaluations of external institutions
CRE REIT has been assigned “Green 1 (F),” the highest grade in the JCR Green Finance

Framework Evaluation (Note 1) with respect to eligibility for the Green Finance Framework, byJapan Credit Rating Agency, Ltd. (“JCR”). For more details on the JCR Green Finance
Framework Evaluation, refer to the following website.
JCR Green Finance Framework Evaluation: https://www.jcr.co.jp/greenfinance/
In the course of acquiring a third-party evaluation on the Green Finance Framework, Japan Credit

Rating Agency, Ltd. (JCR), a supporter of the issuance, has received the subsidy decisionnotification from the Green Finance Organization about being subject to the delivery of subsidiesof the Financial Support Programme for Green Bond Issuance (Subsidy Project) (Note 2) of theMinistry of the Environment.
(Note 1) "JCR Green Finance Framework Evaluation" is a third-party evaluation on the policy for the issuance of green bondsor the borrowing of green loans (green finance policy) of an issuer or a borrower based on the Green Bond Principles
formulated by the ICMA, the Green Loan Principles formulated by the LMA and the APLMA and the Green BondGuidelines and the Green Loan and Sustainability Linked Loan Guidelines formulated by the Ministry of theEnvironment. In this evaluation, JCR conducts "Greenness Evaluation" to assess whether the projects stated in thegreen finance policy of the issuer or the borrower fall under green projects, and assess how much the proceeds areallocated to green projects, as well as "Management, Operation and Transparency Evaluation" to assess themanagement and operation system and transparency of the issuer or the borrower. Then, as the overall evaluation
results of these assessments, the "JCR Green Finance Framework Evaluation" is determined. To differentiate theJCR Green Finance Framework Evaluation from the evaluation of individual bonds and borrowings, the JCR Green
Finance Framework Evaluation is indicated by adding (F) to the tail end of the evaluation symbol. The "JCR Green
Finance Framework Evaluation" of CRE REIT is posted on the following website of JCR.
https://www.jcr.co.jp/greenfinance/(Note 2) " Financial Support Programme for Green Bond Issuance (Subsidy Project)" is a project to subsidize expenses forsupport for registered issuance supporters who give an external review and consult on the development of a fr ameworkfor green bonds, etc. for companies and local public entities that try to issue green bonds, etc.
Requirements for green bonds, etc. to be covered are that all proceeds raised in the case of green bonds or 50% ormore of the proceeds raised in the case of sustainability bonds are allocated to green projects and all of the following
conditions are satisfied at the time of issuance.
(1) Any of the following applies at the time of issuance of green bonds, etc.
1. Projects that contribute mainly to decarbonization in Japan (renewable energy, energy saving, etc.)
・Half or more of the amount of the proceeds are used for decarbonization projects in Japan, or half or more of
the number of projects are decarbonization projects in Japan4

2. Projects with a high decarbonization effect and a high regional revitalization effect・Decarbonization effect: Projects for which the amount of subsidy per ton of CO2 reductions in Japan is at or
below a certain level.
・Regional revitalization effect: Projects that are deemed to contribute to regional revitalization in an ordinanceor a plan, etc. of a local public entity or projects in which investment from a local public entity is expected.
(2) It is confirmed by an external review organization by the time of issuance that the framework for green bonds, etc.
conforms to the Green Band Guidelines.
(3) Green bonds, etc. are not green-wash bonds (bonds labeled as green, despite the fact that they have noenvironmental benefits, or their proceeds have not been appropriately allocated to green projects).

* CRE Logistic REIT, Inc. website: https://cre-reit.co.jp/en/

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