August 13, 2019

CRE Logistics REIT, Inc.
Summary of Financial Results (Unaudited)
For the 6th Fiscal Period Ended June 30, 2019(For the Reporting Period from January 1, 2019 to June 30, 2019)(Translated from the Japanese original)
Corporate Information
Code: 3487 Listing: Tokyo Stock Exchange(URL: https://cre-reit.co.jp/en/)
Representative: Tsuyoshi Ito, Executive Director
Asset management company:
Representative:
Person of Contact:
Tel:

CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Hirohisa Toda, Head of Corporate Planning+81-3-5575-3600

Scheduled date to file securities report:
Scheduled date to commence payment of distributions:Preparation of supplementary material on financial results:
Financial report presentation meeting:

September 24, 2019
September 12, 2019
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen, except for the basic earnings per unit)
1. 6th Fiscal Period ended June 30, 2019 (January 1, 2019-June 30, 2019)(1) Operating results(Percentages represent changes from corresponding period of previous period)
Operating revenues
Operating income
Ordinary income
Net income
Fiscal period ended

June 30, 2019
December 31, 2018

Million yen%

Million yen%

Million yen%

Million yen

%

1,411
1,413

(0.1)
19.1

718
811

(11.4)
21.4

597
689

(13.3)
31.7

596
688

(13.4)
31.8

Return on
unitholders’ equity

Net income per unit

Ordinary income tototal assets

Ordinary income on
operating revenues

Fiscal period ended

Yen

%

%

%

June 30, 2019
December 31, 2018

2,580
2,978

2.4
2.8

1.2
1.4

42.3
48.8

(2) Distributions
Distributions
per unit(excluding
surplus
distributions)

Total
distributions(excluding
surplus
distributions)Fiscal period ended

Yen

Million yen

June 30, 2019
December 31, 2018

2,580
2,979

596
688

Total surplus
distributions

Distributions
per unit(including
surplus
distributions)

Total
distributions(including
surplus
distributions)

Yen

Million yen

Yen

Million yen

%

%

372
372

85
85

2,952
3,351

682
774

100.0
100.0

2.4
2.8

Surplus
distributions
per unit

Payout ratio

Distributions to
net assets ratio(Note 1) The entire amount of total surplus distributions is the return of contributions that falls under the distribution associated with the investment
decrease for tax purposes.
(Note 2) The percentage of decreased surplus as a result of surplus distributions (the return of contributions that falls under the distribution associatedwith the investment decrease for tax purposes) in the fiscal period ended December 31, 2018 and the fiscal period ended June 30, 2019 was
0.004, respectively. The calculation of the percentage of decreased surplus is based on Article 23, Paragraph 1, Item 4 of the Order for
Enforcement of the Corporation Tax Act.

(3) Financial position
Total assets
As ofJune 30, 2019
December 31, 2018

Net assets

Unitholders’ equity ratio

Net assets per unit

Million yen

Million yen%

Yen

49,717
49,951

24,541
24,71949.4
49.5

106,169
106,940(4) Cash flows
Cash flows fromoperating activities
Fiscal period ended

Million yen

June 30, 2019
December 31, 2018

937
2,593

Cash flows frominvesting activities－

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the fiscal period

Million yen

Million yen

Million yen

(145)
(192)

(773)
(2,126)

1,645
1,627

1 －

2. Forecast for the 7th Fiscal Period ending December 2019 (July 1, 2019-December 31, 2019) and the 8th Fiscal Period ending June
2020 (January 1, 2020-June 30, 2020)(Percentages represent changes from corresponding period of previous period)
Operatingrevenues

OperatingincomeFiscal period ending

Millionyen%

December 31, 2019
June 30, 2020

1,578
1,591

11.8
0.8

Millionyen

Ordinary
incomeDistributions
Distributions
per unit (including
per unit
surplus(excluding surplus
distributions)distributions)

Net income%

Millionyen%

823 14.6
825 0.2

681
691

14.1
1.5

Millionyen

Surplus
distributions
per unit

%

Yen

Yen

Yen

680 14.1
690 1.5

2,990
3,029

2,625
2,664

365
365

(Reference) Forecast net income per unit (Forecast net income/ Forecast number of investment units at the end of the fiscal period) for the 7th Fiscal
Period ending December 2019 is 2,625 yen and forecast net income per unit for the 8th Fiscal Period ending June 2020 is 2,663 yen.

* Other(1) Changes in accounting policies, changes in accounting estimates and retrospective restatements
1. Changes in accounting policies associated with revision of accounting standards, etc.: None
2. Changes in accounting policies associated with other than 1: None
3. Changes in accounting estimates: None
4. Restatements: None

(2) Total number of investment units issued and outstanding
1. Total number of investment units issued andoutstanding at the end of the fiscal period As of June 30, 2019 231,150 units As of December 31, 2018 231,150 units(including treasury investment units)
2. Total number of treasury investment units at
As of June 30, 2019
the end of the fiscal period

0 units As of December 31, 2018

0 units* Summary of financial results is not inside the scope of audit procedure by certified public accountants or audit corporations.
* Remarks on appropriate use of forecasts of performance and other special notes
Forward-looking statements presented in this financial results, including forecasts of performance, are based on information
currently available to the Investment Corporation and on certain assumptions the Investment Corporation deems to be reasonable.
As such, actual operating and other results may differ materially from these forecasts as a consequence of various factors. Moreover,the forecasts set forth herein should not be construed as a guarantee of distribution amounts.
Refer to the section on “Assumptions for Operating Forecasts for the 7th Fiscal Period ending December 2019 (July 1, 2019December 31, 2019) and the 8th Fiscal Period ending June 2020 (January 1, 2020-June 30, 2020)” for details on the underlying
assumptions for the forecasts above.

－

2 －Assumptions for Operating Forecasts for the 7th Fiscal Period ending December 2019 (July 1, 2019-December 31, 2019) and the 8th
Fiscal Period ending June 2020 (January 1, 2020-June 30, 2020)
Item
Calculation period

Assumptions- 7th Fiscal Period (Ending December 31, 2019): July 1, 2019-December 31, 2019 (184 days)- 8th Fiscal Period (Ending June 30, 2020): January 1, 2020-June 30, 2020 (182 days)

Assets undermanagement- The investment corporation possesses the trust beneficial interests in real estate in a total of nine properties(hereinafter referred to as “assets currently held”)—seven properties held as of June 30,2019 (hereinafterreferred to as “acquired assets before the fiscal period ended June 30, 2019”) and two properties acquired on
July 16, 2019 (hereinafter referred to as “acquired assets for the fiscal period ending December 31,
2019”).The operating forecasts herein are based on the assumption that the investment corporation willcontinue to possess these properties until June 30, 2020, as well as the assumption that there will be nofluctuations in the trust beneficial interests in real estate (including newly acquired properties and the disposalof currently-held assets).
- However, there is a possibility that fluctuations in the portfolio will occur due to factors including the newacquisition of properties or the disposal of assets currently held.

Operating revenues- Real estate lease business revenues are calculated based on leasing contracts that are effective as of the dateof submission of this financial results and actual performance in the past.
- The forecasts assume there are no delinquencies or default on rental payments by tenants.

Operating expenses- Expenses other than depreciation that fall under the category of real estate leasing expenses, which is theinvestment corporation’s main operating expenses, are actual expenses incurred on acquired assets before thefiscal period ended June 30, 2019. Regarding those acquired assets for the fiscal period ending December 31,
2019, expenses were forecast reflecting variables, including forecast costs (including taxes and public dues,
property management fees, fire insurance expenses, repair expenses) based on information obtained from theprevious owner, or the beneficiary who previously held the trust beneficiary interests.
- Property tax and city planning tax, etc. for acquired assets before the fiscal period ended June 30, 2019 are
expected to total 146 million yen per period.
- In addition, when real estate is purchased, property tax and city planning tax, etc. are calculated and divided
up on a pro-rated basis for calendar year with the current beneficiary of trust interests. The investment
corporation incorporates this amount into the acquisition cost of the property. In light of this, property tax
and city planning tax, etc. on the acquired assets for the fiscal period ending December 31, 2019 are notposted in the 7th Fiscal Period, but will be posted as property tax and city planning tax, etc. in the 8th Fiscal
Periods. In the event that the property tax and city planning tax, etc. on acquired assets for the fiscal period
ending December 31, 2019 were posted as expense, the amount is estimated at 18 million yen for each sixmonth period starting from the 8th Fiscal Period. Note that the total amount of property tax and city planningtax, etc. to be incorporated into the acquisition cost for the acquired assets for the fiscal period ending
December 31, 2019 is estimated at 16 million yen.
- Depreciation is based on the straight-line method. Depreciation is forecast to be 316 million yen in the fiscal
period ending December 31, 2019 and 316 million yen in the fiscal period ending June 30, 2020.
- Property management fees are expected to be 75 million yen in the fiscal period ending December 31, 2019
and 76 million yen in the fiscal period ending June 30, 2020.

Non-operating
expenses- Non-operating expenses for the 7th Fiscal Period are expected to total 141 million yen. Of this, it is estimatedthat 121 million yen is for interest expenses and other financial related costs, 3 million yen is for costs related
to offerings new investment units, 6 million yen is for depreciation of founding costs, and 9 million yen isfor depreciation of investment unit issuance costs.
- Non-operating expenses for the 8th Fiscal Period are expected to total 133 million yen. Of this, it is estimatedthat 118 million yen is for interest expenses and other financial related expenses, 6 million yen is fordepreciation of founding costs, and 8 million yen is for depreciation of investment unit issuance costs.

Interest-bearing debt

- The total interest-bearing debt at the end of each fiscal period is as follows: 26,719 million yen as ofDecember 31, 2019, and 26,719 million yen as of June 30, 2020.
- It is assumed that the investment corporation refinance 6,679 million yen to repay 6,680 million yen whichmature on July 31, 2019 in the fiscal period ending December 31, 2019.
- The LTV is expected to be around 47.7% as of December 31, 2019, and about 47.7% as of June 30, 2020.
The following equation was used to calculate LTV. The figure is rounded to the second decimal point.
LTV = Interest-bearing debt / Total Assets x 100

Investment units- The assumptions for these forecasts are based on a total number of investment units issued of 259,250, as ofthe submission of these financial results. The forecasts do not factor in any assumption of a change in thenumber of investment units through June 30, 2020 due to factors such as the issuance of new investment
units.
- The distributions per unit (excluding surplus distributions) and the surplus distributions per unit are calculated
based on a total number of investment units issued of 259,250 for the fiscal period ending December 31,
2019 and the fiscal period ending June 30, 2020.

Distributions per unit
(excluding surplus
distributions)- The distributions per unit (excluding surplus distributions) is calculated based on the assumption that
distributions are carried out in accordance with the policies for monetary distributions set forth in theregulations of the investment corporation.
- There is a possibility that the amount of the distributions per unit (excluding surplus distributions) couldchange owing to various factors, including changes in rental income, or unexpected maintenance work due－

3 －to a change in assets under management or a change in tenants.

Distributions per unitof surplus profit- The surplus distributions per unit is calculated in accordance with the policy stipulated in the operationalguidelines—the regulations of the investment corporation and the internal regulations of the asset
management company. The payout plan for total surplus distributions for the fiscal period ending December
31, 2019 and the fiscal period ending June 30, 2020 is 94 million yen, respectively, with an amount equivalent
to 30% of depreciation as a benchmark.
- These assumptions do not include any specific possibility of a substantial deterioration in the economic
climate, real estate market or the financial condition of the investment corporation.
- The policy of the investment corporation is to implement the distribution of surplus profit semiannually inprinciple. The amount of the surplus distribution should be equivalent to 30% of total depreciation.
- Moreover, in the event that the distributions per unit is expected to temporarily fall below a certain level due
to dilution in the value of the investment unit or a considerable financial burden owing to the procurement of
capital through the issuance of new investment units or other factors, the investment corporation may
continue to distribute surplus profit plus a one-off distribution that exceeds the profit level in the period forthe purpose of maintaining the ordinary level of the distributions per unit. However, this amount, which
includes the ongoing surplus distribution, shall not exceed the equivalent to 60% of total depreciation for the
relevant business period.
- In actuality, the amount of distributions exceeding profit (return of contributions) is likely to fluctuate due tochanges in the economic climate, real estate market trends, asset portfolio, and financial position, and there
is a possibility the investment corporation will not implement distributions (return of contributions) in surplus
distributions for the period.

Other- The forecasts were built based on the assumption that there will be no revisions to laws and ordinances, thetax system, accounting standards, listing regulations set forth by the Tokyo Stock Exchange, Inc., and theregulations stipulated by the Investment Trusts Association, Japan, that would have an impact on the forecasts
stated above.
- The forecasts are also based on the assumption that there will be no unexpected major changes to general
economic trends and the real estate market.

－

4 －3. Financial Statements(1) Balance Sheet(Thousands of yen)
As of December 31, 2018

As of June 30, 2019

AssetsCurrent assets
Cash and deposits

1,001,457

1,124,800

Cash and deposits in trust

1,163,430

1,158,278

Operating accounts receivable

118,742

109,727

Prepaid expenses

82,27881,574

Total current assets

2,365,909

2,474,381

28,873,918

28,873,918

Accumulated depreciation(848,464)(1,125,429)

Buildings in trust, net

28,025,453

27,748,488

1,341,493

1,341,493

Non-current assets
Property, plant and equipment
Buildings in trust

Structures in trust
Accumulated depreciation(30,261)(40,332)

Structures in trust, net

1,311,231

1,301,160

Tools, furniture and fixtures in trust

682

682

Accumulated depreciation

(61)

(122)

Tools, furniture and fixtures in trust, net

621

560

Land in trust

17,969,495

17,969,495

Total property, plant and equipment

47,306,802

47,019,704

Other

3,266

2,866

Total intangible assets

3,266

2,866

Intangible assets

Investments and other assets
Investment securities

10,50010,500Long-term prepaid expenses

195,088

157,524Deferred tax assets

10

14

Leasehold and guarantee deposits

10,00010,000Total investments and other assets

215,598

178,039

47,525,668

47,200,611

Organization expenses

29,27523,218Investment unit issuance expenses

30,903

18,872

Total deferred assets

60,17842,09049,951,756

49,717,083

Total non-current assets
Deferred assets

Total assets－

5 －(Thousands of yen)
As of December 31, 2018

As of June 30, 2019

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term borrowings
Accrued expenses
Income taxes payable

84,38889,1476,680,000

6,680,000

111,640

106,480815

910

Accrued consumption taxes

88,722

31,901

Advances received

252,245

252,086

1,338

2,113

7,219,151

7,162,640

17,140,000

17,140,000

873,269

873,269

18,013,269

18,013,269

25,232,420

25,175,909

24,106,072

24,106,072

OtherTotal current liabilities
Non-current liabilities
Long-term borrowings
Leasehold and guarantee deposits received intrust
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Deduction from unitholders' capital
Unitholders' capital, net(75,354)(161,342)

24,030,717

23,944,729

688,618

596,444688,618

596,444

24,719,335

24,541,173

24,719,335

24,541,173

49,951,756

49,717,083

Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets－

6 －(2) Statements of Income(Thousands of yen)
Fiscal period ended

Fiscal period ended

December 31, 2018

June 30, 2019

Operating revenue
Leasing business revenue

1,384,615

Other leasing business revenue

1,384,615

28,672

27,232

1,413,287

1,411,847

Expenses related to leasing business

432,972

532,472

Asset management fee

132,326

123,971

Total operating revenue
Operating expenses

Asset custody fee

1,653

1,618

Administrative service fees

11,062

11,338

Remuneration for directors (and other officers)

4,500

4,500

Other operating expenses

19,223

19,110Total operating expenses

601,738

693,011

811,549

718,836

Operating profit
Non-operating income
Interest income

710Interest on tax refund

3,160

－

Total non-operating income

3,167

10

Interest expenses

65,53962,865

Borrowing related expenses

40,801

40,563

Amortization of organization expenses

6,056

6,056

Amortization of investment unit issuance expenses

12,03012,030

Other

1,000

－

Non-operating expenses

125,428

121,517

Ordinary profit

Total non-operating expenses

689,288

597,329

Profit before income taxes

689,288

597,329

Income taxes - current

816

912

Income taxes - deferred

6

(4)

822

907

688,465

596,421152

22688,618

596,444

Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)－

7 －(3) Statements of Changes in Net Assets
Fiscal period ended December 31, 2018
(Thousands of yen)
Unitholders' equity
Unitholders' capital
Unitholders'
capitalBalance at
beginning of
periodChanges in items
during period
Distributions inexcess ofretainedearnings
Dividends ofsurplus

Surplus
Unitholders'
capitalUnappropriatedretainedearnings(undisposed
loss)

-

24,106,072

522,320(75,354)(75,354)

Deduction
fromunitholders'
capital24,106,072

522,320

Total net
assets24,628,392

24,628,392(75,354)(75,354)(522,167)(522,167)(522,167)(522,167)

688,465

688,465

688,465

688,465

ProfitTotal changes in
items during
periodBalance at end of
periodTotalunitholders'
Total surplus
equity-(75,354)(75,354)

166,298

166,298

90,94390,943

24,106,072(75,354)

24,030,717

688,618

688,618

24,719,335

24,719,335

Fiscal period ended June 30, 2019
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of
periodChanges in items
during period
Distributions inexcess ofretainedearnings
Dividends ofsurplus

Surplus

Unitholders'
capitalDeduction
fromunitholders'
capitalUnitholders'
capitalUnappropriatedretainedearnings(undisposed
loss)

24,106,072(75,354)

24,030,717

688,618(85,987)(85,987)

ProfitTotal changes in
items during
periodBalance at end of
periodTotalunitholders'equityTotal surplus

688,618

Total net
assets

24,719,335

24,719,335(85,987)(85,987)(688,595)(688,595)(688,595)(688,595)

596,421596,421596,421596,421-(85,987)(85,987)(92,174)(92,174)(178,161)(178,161)

24,106,072(161,342)

23,944,729

596,444596,444

24,541,173

24,541,173－

8 －(4) Statements of Cash Flows(Thousands of yen)
Fiscal period ended

Fiscal period ended

December 31, 2018

June 30, 2019

Cash flows from operating activities
Profit before income taxes

689,288

597,329

Depreciation

287,497

287,497

Amortization of deferred organization expenses

6,056

6,056

Amortization of investment unit issuance expenses

12,03012,030Interest income

(7)

(10)

Interest expenses

65,53962,865

7,806

9,015

1,472,959－

Decrease (increase) in operating accounts
receivable
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable

(983)

703

374

50,457

Increase (decrease) in accrued expenses

13,938(6,381)

Increase (decrease) in accrued consumption taxes

88,722(56,820)

Increase (decrease) in advances received

(146)

(158)

Decrease (increase) in long-term prepaid expenses

19,32837,563

Other, net(2,646)

87

Subtotal

2,659,759

1,000,238

7

10(65,392)(61,644)

(944)

(817)

2,593,431

937,787(92,081)(45,699)

48－

Payments into restricted deposits(100,048)(100,000)

Net cash provided by (used in) investing activities(192,081)(145,699)

Repayments of short-term borrowings(1,330,000)－

Proceeds from long-term borrowings

3,000,000－

Repayments of long-term borrowings(3,200,000)－

Distributions paid

(596,248)(773,896)Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Proceeds from leasehold and guarantee deposits
received in trust

Cash flows from financing activities

Net cash provided by (used in) financing activities(2,126,248)(773,896)

Net increase (decrease) in cash and cash equivalents

275,101

18,191

Cash and cash equivalents at beginning of period

1,352,449

1,627,550

Cash and cash equivalents at end of period

1,627,550

1,645,741－

9 －