Securities Code 3487

Financial Results Briefing for the 10th Fiscal Period
Ended June 2021 (January 1, 2021 to June 30, 2021)

LogiSquare Miyoshi
Located approximately 0.6 km from Miyoshi Smart Interchange on the Kanetsu Expressway, and easy access to Route 254 (Kawagoe
Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.
Kaido) and Route 463 (Urawa Tokorozawa Bypass).

August 13, 2021
CRE REIT Advisers, Inc.

Contents
Contents

GlossaryTerm

1. Financial Results and Forecasts
2. Growth Strategies
3. Characteristics of CRE Logistics REIT, Inc.
4. Market Environment
5. Appendix

2
11
23
34
42

Definition

Appraisal value

The appraisal value or an investigated value as of the end of the period is stated based on theCertificate of Incorporation of the Investment Corporation and the Regulation on Accountings ofInvestment Corporations (Cabinet Office Order No.47 of 2006 including subsequent revisions)

Unrealized gains(Appraisal value) - (Book value) as of the end of the period

LTV(Outstanding balance of interest-bearing debt) / (Total Assets)

LTV based on
appraisal value(Outstanding balance of interest-bearing debt) / (Total assets + Unrealized gains)

NAV

Net assets + Unrealized gains - Total amount of distributions

NAV per unit

(Net assets + Unrealized gains - Total amount of distributions) / Total number of investment units
outstanding

Acquisition price

Acquisition price is the purchase agreement price for each of the trust beneficiary rights stated in
the sales agreement and does not include national and local consumption taxes or salescommission and other expenses that are incurred in the acquisition.

NOI yield

Ratio of actual NOI of the portfolio assets to their acquisition priceAppraisal NOI yield

Ratio of appraisal NOI of each asset to the acquisition price (refers to appraisal NOI based on theappraisal report with June 30, 2021 as the date of the value opinion in the case of each asset held)

CRE

CRE, INC.

CRE Group

CRE, INC. and its subsidiaries and affiliates• This material is not a disclosure material under the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations or the
Securities Listing Regulations of the Tokyo Stock Exchange.
• The purpose of this material is to provide information and not to offer, solicit the purchase of or sell certain products. When you make an investment, please do so at
your own discretion and risk.
• The market price of investment securities of the Investment Corporation will be affected by the demand and supply of investors at an exchange and will fluctuate under
the influence of the interest rate environment, economic conditions, the real estate market conditions and other factors surrounding the market. Accordingly, theinvestment securities may possibly not be sold at a higher price than the acquisition price, and investors could suffer a loss as a result.
• The investment securities of the Investment Corporation need to be purchased and sold through a securities company with which you undertake business. At that time,please read the contents of the document provided before concluding the contract (or a prospectus) carefully.
• While this material contains forward-looking statements and results forecasts, these statements do not guarantee the future results and financial conditions of theInvestment Corporation.
• In this material, amounts are rounded off to the unit and areas, years and ratios are rounded to the nearest one decimal place, unless otherwise noted. Any average or
ratio pertaining to assets is the weighted average based on the acquisition price, unless otherwise noted.
Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

11. Financial Results and Forecasts

LogisSquare Hanyu
From the selectionof thetheCRE
facility
was developed
based
the needsof the tenant, which is a leading logistics company, and was designed to offer versatility and to withstand heavy loads.
Copyright(C)land,2021
Logistics
REIT, Inc.
AllonRights
Reserved.

2

1. Financial Results and Forecasts

Summary

External
Growth• Due to the public offering and property acquisition in January 2021, the distribution per unit for the fiscal
period ended June 2021 resulted at 3,398 yen, the highest ever for CRE REIT.
• The tenant whose contract period expired in fiscal period ended June 2021 re-contracted with rent increase.

Internal
Growth• There are no tenants whose contract period will expire in fiscal period ending December 2021. Tenants
whose contract period will expire in fiscal period ending June 2022 have already re-contracted. Therefore, the100.0% of tenants scheduled to expire in the next two fiscal periods, is already re-contract.
• Continuing to reduce each public offering, LTV has reached a lowest ever of 44.8% at CRE REIT.

Financial
Management• Lenders increased from 10 (end of December 2020) to 13 (end of July 2021), and the diversification oflenders has progressed.
• R&I changed rating outlook from “A- (stable)” to “A- (positive)” (April 2021).

• Newly acquired "A (stable)“ rating from JCR (August 2021)• Borrowed with CRE REIT's first green loan (July 2021)• At the general meeting of unitholders in September 2021, we plan to submit an asset management fee
ESG

Other

structure that is more closely linked to earnings per unit.
• Approximately 80% of the properties produce solar power, and 70% of the total consumption iscovered with renewable energy (from April 2020 to March 2021).
• Three securities companies started analyst coverage （February-April ,2021）

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

3

1. Financial Results and Forecasts

Investment Unit Prices Exceed NAV per Unit Due to Continuous Efforts
Trends in investment unit price (closing price) (as of August 12, 2021)
January 4, 2021
Announcement of the Fourth PO
June 29, 2020
Announcement of the Third PO

220,000

8.0%

January 7, 2020
Announcement of the second PO
200,000
7.0%

February 7, 2018
Listing

180,000

June 27, 2019
Announcement of the first PO
6.0%

160,000

5.0%
140,000

120,000

4.0%

100,000
3.0%
August 2018
Introduced a cumulative investment unit
investment system.

80,000July 17, 2019
The presidents of the Sponsor and the AssetManagement Company acquired investment units.
Number ofunits acquired

Title and nameTadahide Kameyama, President of CRE

60,000Tsuyoshi Ito, President of AssetManagement Company

40,0002018(Yen) 2/7

5/9

8/2
NAV per unit

10/30

2019
1/31

September 27, 2019
The revision of asset
management fees was
resolved at the General
Meeting of Unitholders.

7/31

Tokyo Stock Exchange REIT Index (Note2)

September 18, 2020
Incorporated into the
FTSE Global Equity
Index Series.

April 21, 2021
R&I changed rating
outlook from A- (stable)
to A- (positive).
2.0%

500 units
March 31, 2020
Newly acquired Arating from R&I.

1,000 units

5/7

May 29, 2020
Incorporated into
the MSCI Global
Small Cap Index.

10/30

2020
1/30

September 8, 2020
Issued a green bond.

4/28

7/29

Investment unit price of the Investment Corporation

February-April ,2021
Three securities
companies started
analyst coverage.

10/27

2021
1/26

August 3, 2021
Newly acquired A
rating from JCR.
1.0%

4/22

7/21

Distribution yield (right axis)

Note : Trends in the closing price of the Tokyo Stock Exchange REIT Index at Tokyo Stock Exchange, Inc. (hereinafter “TSE”) show trends in relativized figures on the assumption that the closing price (1,664.83pt) of the TSE REIT Index on the date of thelisting of the Investment Corporation (February 7, 2018) is the same as the issue price (110,000 yen per unit) of the Investment Corporation at the time of listing.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

4

1. Financial Results and Forecasts

For inclusion in FTSE EPRA Nareit Global Real Estate Index Series

百万

Aiming to be included in FTSE EPRA Nareit Global Real Estate Index Series in December
7,000

120,000• Although CRE REIT meets the market
capitalization standard, the English annual report(audited), the inclusion requirement, has not been
prepared.

100,000• As the preparations for an English annual report(audited) for the 10th fiscal period (ended June2021) by mid-October have started, CRE REIT
will be included in the regular review in December
2021.

6,000

5,000
80,0004,000

Estimated standardof market capitalization

60,000Market capitalization standard relaxed from the regular review
in September 2021 （Released on June 24, 2021）.

3,000

40,0002,000

20,0001,000

0(Million yen) 2018
2/7

5/2

7/25

10/17

2019
1/9

4/3

6/26

9/18

Trading turnover (left axis)

12/11

2020
3/4

5/27

8/19

11/13

2021
2/12

0

5/14

8/11

(Million yen)

Market capitalization (right axis)

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

51. Financial Results and Forecasts

Highlights on the 10th Fiscal Period- Achieved better-than-anticipated results due to stable management

Distributions per unit
10th FP Results(2021/6)

NAV per unit
3,398 yen(vs forecast:+24 yen, +0.7%)

11th FP Forecasts(2021/12)

12th FP Forecasts(2022/6)

10th FP Results

Portfolio
143,278 yen(vs previous FP +5,778 yen, +4.2%）

Portfolio size

19 properties 112 billion yen

3,504 yenOccupancy rate

100.0%

3,375 yen

Average remaining
lease term

5.0 years

Average property age

4.3 years

Asset(2021/6)

Debt
10th FP(2021/6)

Compared to
9th FP

Equity10th FP(2021/6)

Compared to
9th FP

10th FP(2021/6)

Compared to
9th FP

Appraisal value

122,040 million yen +23,260 million yen

Interest-bearing
debt

Unrealized gains

11,272 million yen+2,745 million yen

LTV

44.8%

- 0.2%

NAV

Unrealized gains ratio

10.2%+ 0.7%

LTV based on
appraisal value

40.9%- 0.4%

NAV per unit

143,278 yen+ 5,778 yen

NOI yield

4.8%- 0.2%

Ratio of fixedinterest debt

98.1%

- 1.9%

Total number ofinvestment units
outstanding

500,150 units+ 76,650 units

NOI yield after
depreciation

3.8%- 0.2%

Ratio of long-term
debt

100.0%―%

Repair expense

6 million yen- 11 million yen

Average borrowinginterest rate

0.551%- 0.009%

Capital expenditure

18 million yen- 20 million yen

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

52,669 million yen + 9,000 million yen

Net assets per unit

124,138 yen+3,381 yen

71,660 million yen +13,429 million yen

61. Financial Results and Forecasts

Since Listing in February 2018, Steadily Growing through Four Public Offerings
Distributions per unit （DPU）

NAV per unit

Annual rate ＋7.3%

Annual rate ＋7.6%

Dated August 13, 2021

3,392

3,351
3,086
2,952 3,012
3,000

3,398 3,504 3,375

137,499

129,286
3,374

2,585

130,000

118,187
114,936 117,317

90,0001,000

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP
Forecast

11th FP
Forecast

12th FP
Forecast

ＬＴＶ

(Yen)

4th FP

5th FP

6th FP

7th FP

Asset size

8th FPX

9th FP

49.3%

2.4

150

112

47.7% 47.9% 47.7%
48%

91

100

45.9%

73
45.0% 44.8% 44.6% 44.8%

46%

50
44%

10th FP

Annual rate ＋33.0%

-4.6%
50%

122,212110,000

2,000

(Yen)

143,278

150,000

4,000

47

47

47

4th FP

5th FP

6th FP

54

ResultDated August 13, 2021

42%
4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP
Forecast

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

12th FP
Forecast

0(Billion yen)

7th FP

8th FP

9th FP

10th FP7

1. Financial Results and Forecasts

Results for the 10th Fiscal Period
Unit: million yen

Operating revenues
Leasing expenses

9th FP(2020/12)
Results (A)10th FP(2021/6)
Forecasts (B)10th FP(2021/6)
Results (C)vs. Previous
fiscal period(C) - (A)vs. Forecast

2,603

3,155

3,159

+ 555

+4

Major factors for difference(C) - (B)

342

481

474

+ 131

2,261

2,673

2,685

+ 424

Depreciation

459

563

562

+ 103

-0

Net leasing revenues

1,801

2,110

2,123

1

+ 321

+ 12

278

320

322

2

+ 44

+1

1,523

1,789

1,800

+ 276

+ 10

Non-operating income

0

―

0

-0

+0

Non-operating expenses

224

278

278

+ 53

-0

Ordinary income

1,299

1,510

1,522

+ 222

+ 11

Net income

1,298

1,509

1,521

+ 222

+ 11

Distributions per unit (yen)

3,392

3,374

3,398

+6

+ 24

(excluding depreciation)

NOI(NOI - Dep.)

General and administrative
expenses, etc.
Operating income

3

-7
5

+ 11

<vs. previous period>
1 Net leasing revenues +321
• Increase due to 3 properties acquired in the10th FP +380
• Full-period contribution of 3 properties
acquired in the 9th FP +34• Upward revision of rents +7• Start expensing of Property taxes and City
planning taxes on 7 properties acquired in the
8th and the 9th FP -101
2

• Increase in asset management fees +38• Increase in asset custody and administrative
service fees +2

3

4

OPD per unit (yen)

3,067

3,018

3,042

325

356

356

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

4

- 25

+ 24

+ 31

―

Non-operating expenses +53• Increase in loan-related expenses andinterest expenses +55

OPD per unit +31
Add 19 yen, which was reduced in the 8th
period, in addition to 337 yen, an amountequivalent to 30% of depreciation.

5

Earnings per unit (yen)General and administrative expenses,
etc. +44<vs. forecast>
NOI +11• Decrease in repair expenses +5• Decrease in Property taxes and City planningtaxes +28

1. Financial Results and Forecasts

Forecasts for the 11th and 12th Fiscal Periods
Unit: million yen

10th FP(2021/6)
Results (A)11th FP(2021/12)
Forecasts (B)Difference

12th FP(2022/6)
Forecasts (C)Difference

Operating revenues

3,159

3,221

+ 62

3,223

+2

Leasing expenses

474

487

+ 13

563

+ 76

2,685

2,734

+ 49

2,660

- 74

Depreciation

562

563

+1

565

+1

Net leasing revenues

2,123

2,170

1

+ 47

2,095

4

- 75

322

343

2

+ 21

333

5

- 10

1,800

1,827

+ 26

1,761

- 65

Non-operating income

0

―

-0

―

―

Non-operating expenses

278

242

- 35

242

-0

Ordinary income

1,522

1,584

+ 61

1,519

- 64

Net income

1,521

1,583

+ 61

1,518

- 64

Distributions per unit (yen)

3,398

3,504

+ 106

3,375

- 129

Earnings per unit (yen)

3,042

3,166

+ 124

3,036

- 130

356

338

- 18

339

+1

(excluding depreciation)

NOI(NOI - Dep.)

General and administrative
expenses, etc.
Operating income

OPD per unit (yen)Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

(B) - (A)3

Major factors for difference(C) - (B)<11th FP>
1 Net leasing revenues +47• Full-period contribution of 3 properties acquiredin the 10th FP +49• Decrease in Property taxes and City planningtaxes +3
• Increase in repair expenses -6

2 General and administrative expenses, etc.
+21
• Increase in asset management fees +9• Increase in asset custody and administrative
service fees +3• Increase in other fees +4

3 Non-operating expenses -35• Decrease in loan-related expenses and interest
expenses -15• Non-occurrence of expenses related to issue ofinvestment units for the 4th PO -11• Decrease in amortization of organization
expenses -5<12th FP>
4 Net leasing revenues -75• Start expensing of Property taxes and City
planning taxes on 3 properties acquired in the10th FP -63• Increase in Property taxes and City planningtaxes on properties other than the above -3• Increase in repair expenses -8

5 General and administrative expenses, etc.
-10
• Decrease in asset management fees -6

91. Financial Results and Forecasts

Comparison between Each Period

4,000

3,500

3,398

3,374
356

Increase in net
leasing revenues

3,504
Increase in net
leasing revenues

3,375

Increase in generaland administrative
Decrease in nonexpenses, etc.
operating expenses

338

Decrease in net
leasing revenues

356

3,000

+95

+24

△42

+71

△150

Decrease in generaland administrative
expenses, etc.

339

+20

2,500

2,000

3,018

3,042

10th FP
第10期
Ended
Jun. 2021
Forecasts
2021年6月期

10th FP
第10期
Ended
Jun. 2021
Results
2021年6月期

予想

実績

3,166

3,036

1,500

1,000

(yen)

Earnings per unit (EPU)

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

11th FP
第11期
EndingDec. 2021
Forecasts
2021年12月期

12th FP
第10期
EndingJune 2022
Forecasts
2022年6月期

予想

予想

OPD per unit

10

2. Growth Strategies

LogiSquare Kuki

Copyright(C) 192021
CRE Logistics
REIT,lease
Inc.their
All Rights
Reserved.
13 of theproperties
in the portfolio
roofs andcontribute to the creation of natural energy as the lessees install solar panels to generate electricity

11

2. Growth Strategies

Rich Pipeline Enabling Future External Growth
Continue to promote property acquisitions at a reasonable price, aiming for continuous growth in distributions, based on cooperation
with the CRE Group companies
Pipeline

Properties under development at CRE(Note 1)

12 properties / Total floor area 527,800㎡（Note2）

LogiSquare Sayama
Hidaka （20％）(1) May 2020(2) 73,728.44㎡（14,745.69㎡）(3) Hanno-shi, Saitama

LogiSquare Osaka Katano(1) January 2021
(2) 76,393.17㎡(3) Katano-shi, Osaka

LogiSquare Miyoshi II(1) March 2021
(2) 18,135 m2(3) Miyoshi-machi, Saitama

LogiSquare Shiroi(1) November 2022
(2) 30,400 ㎡(3) Shiroi-shi, Chiba

Under planning

1,400,000

1,200,000

1,000,000

800,000

Under planning

LogiSquare Hirakata(1) January 2023
(2) 45,083㎡(3) Hirakata-shi, Osaka

Under planning

LogiSquare Atsugi I(1) March 2023
(2) 18,200㎡(3) Aikawa-shi, Kanagawa

basis
600,000

400,000

new!

LogiSquare Matsudo(1) Around spring 2023
(2) 15,654㎡(3) Matsudo-shi, Chiba

Under planning

LogiSquare Fukuoka Ogori(1) Around summer 2023
(2) 18,000~24,000㎡(3) Matsudo-shi, Chiba
new!

Under planning

LogiSquare Atsugi II(1) Around summer 2024
(2) 18,000～20,000㎡(3) Atsugi-shi, Kanagawa(1)Completion month and year (planned) (2)Total area (planned) (3)Location

Ａ
Ｃ

Ｂ

LogiSquare Fujimino A,B,C(1) A:August 2023, B:August 2024,
C:March 2024
(2) A:114,256㎡, B:115,040㎡,
C:43,893㎡(3) Fujimino-shi, Saitama

Projects for which the CRE
Group has alreadyconcluded a contract withland owners or is undernegotiation with landowners on a preferential

LogiSquare Atsugi II
LogiSquare Fukuoka Ogori
LogiSquare Hirakata
LogiSquare Shiroi
LogiSquare Fujimino A,B,C
LogiSquare Matsudo
LogiSquare Atsugi I

Projects expected to
be developed
Already announced

Already worked on

200,000
Completed

0(m2)

LogiSquare Miyoshi II
LogiSquare Osaka Katano
LogiSquare Sayama Hidaka (20%)

In and after…

Source:Prepared by the Asset Management Company based on“Summary of Financial Statements (Unaudited) for theThird Quarter of the Fiscal Year ending July 31,2021”(June 11, 2021) of CRE, Inc.

Properties with first refusal right

Note 1: As of August 13, 2021, CRE REIT has not engaged in specific negotiations with the CRE Group companies on this pipeline, nor does it have any plan to acquire them at the present time or guarantee future acquisition. This slide shows the pipeline as of August
13, 2021 but first refusal rights will be granted at any time on other properties besides these properties and CRE Group companies wil l proceed at any time with the development of other properties besides these properties.
Note 2: The total (planned) total floor area of ​the pipeline is the lower limit for the planned total floor area for LogiSquare Fukuoka Ogori and LogiSquare Atsugi II, and the quasi-co-ownership ratio (20%) for LogiSquare Sayama Hidaka (20%) is used for calculation.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

12

2. Growth Strategies

The Investment Corporation’s Approach to Property Acquisitions/
CRE’s Approach to Property Sales and Development
The Investment Corporation’s Approach to Property Acquisitions• Acquisition of property without dilution of distribution per unit/NAV per unit is a prerequisite for the improvement of unitholder value.
All from the first to the fourth capital increases by public offering, CRE REIT acquired properties at an appraisal NOI yield above the implied cap rate and upheld the above
prerequisite. CRE REIT plans to maintain this approach moving forward.

• Achieve flexible external growth, taking investment unit price into consideration, including utilizing the bridge function.
CRE REIT acquired three properties from leasing company at IPO and one property from leasing company at first capital increase by public offering. The timing of the Sponsor’s
property sales and the REIT’s acquisitions can be adjusted.

• Acquisition of medium-sized properties and acquisition of quasi co-ownership interests using free cash is also possible.
Available to invest to the properties with total floor area of 5,000m2 or larger and the acquisition of properties ranging from several hundred million yen to several billion yen ispossible using retained free cash from accumulated depreciation.

CRE’s Approach to Property Sales and Development

Stable operation of CRE REIT over medium and long term is
CRE’s top priority
CRE’s Positioning of Asset Management Business

The Asset Management Company is involved from the time ofsite acquisition to implement development with discipline
Leasing
Development• Grow asset management business into second pillar of recurring
revenue model.
Asset Management• Continuously earn asset management fees and property
management fees by selling properties developed by CRE to CRE
REIT.

Construction
Management
Leasing

Source: Prepared by the Asset Management Company based on the Long-term Management Policy(September 12, 2016) of CRE, Inc.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

Rent assessment (scoring of location,road access, etc.)
Formulation of plan incorporating
development risks
Sharing of level of cap rates onacquisitions in REIT market

Appropriate cost control
Attraction of tenants

Generation of higher profits than planned

13

2. Growth Strategies

The lease contract, which expires by the fiscal period ending June 2022, has beensuccessfully renewed
The tenants for the expiration of FP 2022/6 have already been renewed
100%

80%

Under
discussion withexisting tenants
for contract
renewal

46.2%

Diversification of lease terms (based on leased area)

40%

Under
discussion withexisting tenants
for contract
renewal100.0%

No change

Checking theintentions ofexisting tenant

53.8%

20%

Agreedrenewed60%

Upwardrevision of rent0%2022/62022/122023/62024/12

20%

15%

14.4%

10%

8.5%
5%

8.3%
8.2%
7.7%
6.9%

7.7%

5.9%

5.9%
4.3%

3.7%

3.3%

4.0%
2.9%
2.4%

1.5%

2.3%

2.0%

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

2041/62041/122040/122040/62039/122039/62038/122038/62037/122037/62036/122036/62035/122035/62034/62034/122033/62033/122032/62032/122031/62031/122030/62030/122029/122029/62028/122028/62027/122027/62026/122026/62025/122025/62024/122024/62023/122023/62022/62022/122021/62021/120%

14

2. Growth Strategies

Cash Management Aiming to Maximize and Level Distributions

Approach to the use of free cash

Effects by acquiring properties only with free cash
Estimate of an increase in distribution per unit (yen)ＮＯＩ yield

4.3％

4.4％

4.5％

4.6％

4.7％

1,300

30

31

33

34

35

1,400

34

36

37

38

40

1,500

38

40

41

43

44

1,600

42

44

45

47

49

1,700

47

48

50

51

53

Consider the following choices, in addition to use
for capital expenditure.

1. Appropriation of some funds to acquire
properties at the time of capital increase562
million yen
per period

2. Acquisition of properties (quasi coownership interests, etc.) during theperiod, with free cash as source
3. Repayment of loans payable

Conduct ongoing surplus cash distributions
equivalent to 30% of depreciation.
If the level of distribution per unit isexpected to decrease temporarily, it will beappropriated flexibly within the range of
30% for distribution leveling.

Acquisition price (million yen)

Depreciation

Note: Calculated on the assumption that the total number of investment issued units is 500,150.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

15

2. Growth Strategies

Stable financial management (1) Diversification of Financing Methods
Diversify interest-bearing debt sources
by inviting new lenders

R&I changed the rating outlook,
and JCR released newly A

Breakdown after refinancing on July 30, 2021

Rating and Investment Information, Inc.
(R&I)

A- (Stable)
The Bank of Toyama, Ltd. 0.6%
The Hyakujushi Bank, Ltd. 1.0%

Japan Credit Rating Agency, Ltd.
(JCR)

A- (Positive)

A (Stable)

Announced on April 21 ,2021

Green bond 3.8%

Announced on August 3 ,2021

new! JAPAN POST BANK Co., Ltd. 1.3%

Aozora Bank, Ltd. 1.9%
Sumitomo Mitsui
Banking Corporation
22.6%

Shinsei Bank, Limited 2.5%
The Bank of Fukuoka, Ltd. 2.5%
Sumitomo Mitsui Trust Bank,
Limited 6.2%

MUFG Bank, Ltd. 7.2%

Total

More than 90% of the portfolio assets are eligible
green assets.
Going forward, we will continue to actively promote
procurement with eligible green debt.
120,000

52,3696,378

million yen

100,000

13 lenders

80,000

The Nishi-Nippon City Bank,
Ltd. 8.3%

Mizuho Bank, Ltd.
19.3%

Resona Bank,
Limited 9.4%

60,00040,000Development Bank ofJapan Inc. 13.6%

20,0000(million yen)

Raised 4,274 million yen
through a green loan whenrefinancing on July 30, 2021

Eligible green
assets
LTV 44.8％
105,938(2021/6
Result)
94.3％

6,274
Upper limit ofRoom toeligible green increase eligible
debt
green debt
47,476
41,202Upper limit of eligible
green debt

Room to increase
eligible green debt

Note：”Room to increase eligible green debt ”=Acquisition price of properties that fall under the category of
eligible green assets x LTV（2021/6 Result）-green bond issued and Green loan amount as of the endof July 2021

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

16

2. Growth Strategies

Stable financial management (2) Promote Diversification of Maturity and Long-term Debt
Promote diversification of Maturity
10,000

Green bond

Existing loans

Refinancing on July 30, 2021

Refinancing through a green loan on July 30, 2021

8,000

7,100
6,500
5,600

6,000

4,274
3,680

1,000

4,000

3,574

4,500

3,500

3,400

3,105

2,900

2,400
2,000

3,680

2,550

3,680
2,000

0
(million yen) 2021/12

2022/62022/122023/62023/122024/62024/122025/62025/122026/6

Prolonging the borrowing period by refinancing

Interest-bearing debt

10th FP

After the refinancing(as of July 30, 2021)

Difference

52,369 million yen- 300 million yen

44.8 %- 0.0 %

LTV

44.8 %

Ratio of fixed interest debt

98.1 %

100.0 %

+ 1.9 %

Ratio of long-term debt

100.0 %

100.0 %―%

Average borrowinginterest rate

0.551 %

0.574 %

+ 0.023 %Average life of interestbearing debt

3.2 years

3.7 years+ 0.5 years

12th FP Forecast

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

2027/62027/122028/6

Approach to interest-bearing debt

(Ended June 2021)

52,669 million yen

2026/12•

Set the LTV level of the Investment
Corporation at around 45%, and work to
reduce it according to the market
environment.

•

Conduct financial management withfocus on long-term stability by taking out
long-term loans at a fixed interest rate.

•

Going forward, we will continue toactively promote procurement witheligible green debt.

17

2. Growth Strategies

Promoting ESG Efforts ― Environment (1)94.3% of assets held are eligible green assets
BELS

CASBEE

Sandwich Panels
ALC
5.7%

None
13.6%

None
17.4%

82.6％

86.4％

BELS
82.6%

LED Lights
Others
17.4%

94.3％

CASBEE
86.4%

82.6％

LED Lights
82.6%

Sandwich
Panels94.3%

Solar Power(Note)
Electricity consumption and Energy production of all properties from April 2020 to March 2021
Solar Power(In-house
consumption)
28.9%

None
22.3%

77.7％

（thousand kWh）
Of the four properties thathave been introduced forin-house consumption,
three have been acquiredin January 2021, so theamount is small.

13,513

Energy Consumption
Renewable Energy
478
Production

9,247

In-house
consumption
Electricity sales

70% of total consumption is covered with renewable energy
Solar Power(Electricity sales
by Fit)48.8%

Regarding “in-house consumption”, there is no transmission loss, theproduced electricity can be used without waste, and renewable energy
can be provided directly to tenants, CRE REIT will actively introduce“In-house consumption” for the properties acquiring in the future .

Note : CRE REIT leases roof top space and the lessees produce renewable energy by installing solar panels.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

18

2. Growth Strategies

Promoting ESG Efforts ― Environment (2)In-house consumption of solar
power

Installation of human detecting
sensors

Installation of water-saving
sanitation appliances

Ensure a part of the electricity consumed in
facilities from electricity generated by solar
power.

Promote energy saving by installing humandetecting sensors in facilities.

Promote the reduction of water usage by
installing sanitation appliances with highperformance in the reduction of water usage.

Installation of roof watering
equipment
Contribute to the reduction of temperaturesinside warehouses by installing roof watering
equipment using well water.

Wall greening
Wall greening has the effect of lowering thesurface temperature of buildings andcontributes to the reduction of CO2 in theatmosphere.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

Soil contamination
countermeasures
Enbio Holdings, Inc., a CRE group company,
revitalizes old factory sites, etc. as land forthe development of logistics facilities byactively utilizing in-situ cleaning methods that
decompose underground contaminants
without excavating contaminated soil.

19

2. Growth Strategies

Promoting ESG Efforts ― Social
Improving amenities and the business continuity of tenants

Efforts for officers and employees• Support for BCP measures• Support for skill development- Hold logistics facilities in inland areas with low risk of liquefaction.
- Install power receiving and transforming equipment at elevatedlocations as a flood control measure.
- Introduce earthquake early warning systems.
- Install AEDs.
- Install emergency power supply systems.
- Install disconnectors in automatic fire alarms to prevent the spreadof fires.

• Amenity Improvements- Adopt warm-color lighting in entrances
and truck berths, etc.
- Install restrooms for outside drivers.
- Renovate smoking rooms to respondto the April 2020 revised Health
Promotion Act.

- Encourage them to acquire qualifications by paying for expenses andgift money for the acquisition of qualifications.
License holders (including those that have passed examinations)
Qualification name

Percentage staff holding the qualificationor having passed the exam (Note)

Real estate broker
ARES (Association for Real Estate
Securitization) Certified Master
CMA (Certified Member Analyst of the Securities
Analysts Association of Japan) holder
Real estate consulting master

75.0%
58.3%
25.0%
16.7%

Note: Calculated with the 12 people involved in the operation of the Investment Corporation (as ofthe end of June 2021) as the denominator.

• Improvement of the work environment- Refresh and expand the work space with the relocation of offices.
- Introduce staggered commuting and working from home as a measure
to control COVID-19.
- The president has 1 on 1 meeting with all employees quarterly.

Active disclosure to investors

Contribution to regional and social development• Rationalize disclosures by correcting
information gaps among investors.

• CRE Activities- Promote fair disclosure and therationalization of disclosure byenhancing supplementary explanationmaterials.

• IR activities in consideration of COVID-19- Since March 2020, we will hold conference calls and web
conferences with institutional investors in Japan and overseas tohave the same dialogue as usual.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

- The remains of 74 pit houses from theMiddle Jomon Era (about 5,000 years ago)
were excavated on the site in the wake ofthe development of LogiSquare Sayama
Hidaka, and we have cooperated with thelocal government in their excavation work,
record retention and observation-tours.
- Hold a CRE forum for the purpose of sharing logistics issues faced by companies.

• Install fire cisterns able to provide tap water that can be used as a
firefighting irrigation.
• Cooperate with traffic restrictions for the Saitama International Marathon.

20

2. Growth Strategies

Promoting ESG Efforts ― Governance (1)Scheduled to revise of asset management fee structure more aligned with unitholder’s interests• Scheduled to amend Articles of Incorporation at the General Meeting of Unitholders to be held on September 29, 2021 and revise fee structure from the fiscal period
ending June 2022.
• By reducing management fee 1 based on total asset and unifying management fees 2 and 3, aim to increase the linkage with earnings per unit.

Before Changes

After Changes

Management fee 1

Total assets  0.325% (Upper limit)

Management fee 2

Income before income taxes  4.0%

Management fee 3

Fee on acquisition

ReduceTotal assets  0.3%

Unify

Income before income taxes  Earnings per unit
 0.0019%(Upper limit)

Earnings per unit  10,000
Acquisition cost  1.0% (Upper limit)

Acquisition cost  1.0% (Upper limit)(0.5% (Upper limit) in case of transactions with interested party)(0.5% (Upper limit) in case of transactions with interested party)

Comparison based on FP ending June 2022 100.0%
80.0%

Fee 3
11.4%
Fee 2
18.9%

Fee 2
36.3%

Ratio of Earnings per unit
based will increase

60.0%

40.0%

Fee 1
69.7%

Fee 1
63.7%

Before Canges

After Changes

20.0%

Ratio of total asset
based will decrease

0.0%

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

21

2. Growth Strategies

Promoting ESG Efforts ― Governance (2)Holding of investment units by officers and employees of the Asset Management Company• President of sponsor hold units of CRE REIT. Many officers and employees of the Asset Management Company hold investment units of CRE REIT based on a
cumulative investment system and internal regulations.

Title
CRE

the Asset Management
CompanyName

Units held
(Note)

722 units

President

Tadahide Kameyama

President

Tsuyoshi Ito

1,139 units

Managing Director

Takeshi Oka

61 units
126 units

12 out of 13 employees
Note: As of June 30, 2021.Also, the number of each holding unit is rounded down to the nearest unit.

Independence of the Asset Management Company• Given that the Asset Management Company was established as an independent asset management company, all its members are employees which CRE is not
involved in their recruitment or personnel evaluation.

Category

Number of persons(Note)

Standing directors

2

Employees

13(Of which, employees temporarily transferred from CRE)
Total

―

15

Note: As of June 30, 2021

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

22

3. Characteristics of CRE Logistics REIT, Inc.

LogiSquare Hanyu
The low-riseCopyrighttwo-story facility
has CRE
dual-sided
berthsREIT,
on theInc.
firstAllfloor
for highly
efficient loading and unloading.
(C) 2021
Logistics
RightsReserved.

23

3. Characteristics of CRE Logistics REIT, Inc.

Character-istics

Characteristics/Advantages of CRE REIT
1. Portfolio focused on LogiSquare

2. Long-term, stable asset management

3. Distinct external growth strategy

High-quality portfolio(1) Stable cash flow

(2) Long-term contracts withdiverse tenants(3) Good location

Occupancy rate

Ratio of fixed-term leases

Ratio of fixed-rate rents

100.0%

100.0%

100.0%

Average lease contract term

Average remaining lease term

7.7 years

5.0 years

Ratio of single-tenantfacilities

Ratio of Tokyo Metropolitan Area

Average mileage
to interchange

Within 10 mins’ walk of
public transportation

2.9 km

84.5%

93.2%

78.5%

Advantages

Sponsor is real estate company specializing in logistics properties(Note 1)(1) Leasing capability(2) Property management (PM)capability(3) Development capability

Companies that have concluded
lease contracts with CRE directly

Master lease occupancy rate oflogistics real estate

1,075 companies

98.4%

Managed floor area

1,590 properties 5,340,000m2

Holding of private viewings, including
for other listed REITs

PM entrusted by othercompanies(Note 2)

PM company management ranking
focusing on logistics facilities

Approx.60%

2nd place• Tenant requirements obtained through day-to-day management and leasing activities are fully reflected in facility
development.
• Has been developing suitable properties for REIT since 2006 when real estate securitization first appeared in Japan.

Capable of flexibly acquiring properties, taking consideration into investment unit price• Able to utilize bridge function. Already acquired three properties at IPO and one property at the first capital increase by public offering by utilizing thebridge function.
• Also possible to acquire properties on the scale of hundreds of millions to billions of yen and quasi-co-ownership interests using free cash.
• Already secured pipeline of 12 properties with total floor area of 520,000 m2.
Note 1: As of the end of July 2020. Produced by the Asset Management Company based on data provided by CRE. Figures include data relating to property management of other real estate besides logistics facilities and master leases.
Note 2: “PM entrusted by other companies” is area managed by CRE less area relating to PM contracts with the Investment Corporation and area relating to properties in which CRE is involved as master lessee (area managed under PM contracts
with other listed logistics REITs and private funds, etc.) as a ratio of the total area managed by CRE.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

24

3. Characteristics of CRE Logistics REIT, Inc.

High-quality Portfolio (1) Stable cash flow

Form of contract that enables stable operation

Inclusion of relatively new properties• Tenants who cancel early before the end of the contract term are required to pay theequivalent of rent for the whole remaining lease term as a penalty for breach of contract. (Note)• Intention for renewal or termination is ascertained a year before contract expiry.

• Mainly composed of newly built properties, andrepair expense and capital expenditure are
relatively low.

Ratio of fixed-term lease contracts

Ratio of fixed-rate rents

Average age

10 years or more
5.7%

Ratio of fixed-termlease contracts

Ratio of fixed-rate
rents

100.0%

100.0%

Less than 3 years
33.3%

5 years or more but lessthan 10 years
20.4%

Averate age

4.3 years
3 years or more but less than 5
years
40.6%

Note：Depending on the amount of the penalty and other circumstances, the court may reduce the penalty in part or deny the effect of such provision.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

25

3. Characteristics of CRE Logistics REIT, Inc.

High-quality Portfolio (2) Long-term lease contracts

Contribution to portfolio stability by concluding long-term contracts in consideration of tenant business plans.

Average lease contract term

Average remaining lease term
10 years or more
3.0%

Multi-tenant
21.5%

Less than 5 years
21.8%

10 years or more
48.4%

Average

Average

7.7 years

5.0 years
5 years or more andless than 10 years
46.6%
5 years or more andless than 10 years
29.8%

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

Tenant composition

Less than 5 years
50.4%

Exclusive usage

78.5%
Exclusive usage
78.5%

26

3. Characteristics of CRE Logistics REIT, Inc.

High-quality Portfolio (3) Good location
Properties are mostly in locations suited to logistics facilities where strong demand is expected, withtenants’ need to secure labor also taken into consideration.
Ratio in Tokyo Metropolitan Area

Mileage to an interchange

Outside Tokyo
Metropolitan Area
6.8%

Time required from public transportation
facilities

Over 5 km
10.1%

Ratio in Tokyo
Metropolitan Area

Over 3 km and lessthan 5 km
15.3%

93.2％
Tokyo Metropolitan
Area
93.2%

Walk more than 10 mins
15.5%
Less than 1 km
34.6%

Average

Walk within
10 mins

2.9km

84.5％

Over 1 km and lessthan 3 km
40.0%

Walk within 10 mins
84.5%

Example: LogiSquare Urawa Misono
The property is located approximately 700 m from Urawa IC (Tohoku Expressway) and approximately 450 m and a six-minute walk from Urawa Misono Station on the Saitama
Rapid Railway Line.
A large-scale community development project is underway in the surrounding area, which will allow a close proximity between work and the home and be a potential
advantage in securing employee.

Urawa IC

700 m

450 m
6 mins walk

Urawa Misono Station

LogiSquare Urawa Misono
Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

27

3. Characteristics of CRE Logistics REIT, Inc.

Features of LogiSquare
LogiSquare is the brand name of high-quality logistics facilities developed by CRE to meet tenant needs.
Semi-flexible pavement is used toinhibit rutting.

Sandwich panels are used on exterior walls to reduceheating and cooling loads and to
give the exterior an attractive appearance.

Facility has roof spraying system that uses well
water to reduce the internal temperature.
The facility has a total of 44 truck berths on
the first and third floors to allow the docking
of up to 44 large trucks simultaneously.

Berth depth 13.5 m

Truck berths are large enough to fit awhole 40ft container truck.

Wooden deck
LogiSquare Urawa Misono

Note: The logistics facility shown above is an example of the features of LogiSquare. Not all facilities held by CRE REIT have the features shown above.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

Bicycle parking

0

The facility has truck berths on the first and third floors.
To prevent congestion and accidents, the facility is designed to separate traffic flows and equipped withdedicated gates for the first/second floor tenants and the third/fourth floor tenants, respectively.

Rest area with wooden deck28

3. Characteristics of CRE Logistics REIT, Inc.

Features of LogiSquare
LogiSquare not only improves the efficiency of warehouse operations, creates a pleasant working environment for tenants
but helps minimize costs in the future for CRE REIT.
Fireproof partition walls are
made of fire-resistant heatinsulating panels that haveexcellent insulation
properties, seismic resistanceand an aesthetically pleasing
appearance.

LED lighting throughout helps
save energy.

Openings in fire partitions are
as wide as possible.
6.0 m

Pillar span 10.3 m  10.35 m

10.3 mThe facility has an effective
ceiling height of 6.0 m, or
5.5 m even if cooling panels
are installed.

10.35 mFloor loading 1.5 t/m2
LogiSquare Urawa MisonoInternal signage is designed
to visually communicate
warehouse functions.

Windows

Interior walls between offices and the warehouse
space have windows in them to facilitatecommunication.

The women’s restroom has lockers anddesigned to make female employees feel comfortable.

Note: The logistics facility shown above is an example of the features of LogiSquare. Not all facilities held by CRE REIT have the features shown above.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

To help minimize costs in the future, the facility already has windows
and ventilation built in to ensure compliance with laws and regulations
in case it is necessary to expand office areas in the future.

29

3. Characteristics of CRE Logistics REIT, Inc.

Sponsor is Real Estate Company Specializing in Logistics Properties
CRE, which sponsors CRE REIT, has a track record of more than 50 years in the field of logistics real estate in Japan.
Launch of asset management business/Listing of CRE REIT in February 2018
Participation in development business / Management of large-sized facilities
Small- and medium-sized warehouse asset utilization proposals / Building of relationships with tenants

1964

2005

1980

2014

Established in 2009

Established in 1980

Established in 1964

Commercial RE
Tenko Souken

2010:
Businesstransfer
2011:
Absorptiontype merger

2014:
Acquisition

Established in 2006

2020:
Absorption-type merger

Involvement of All Employees in Logistics Properties

Proven Track Record in Providing Services to Other Companies(Note)

Number of employees on a consolidated basis (as of July 31, 2020)

CRE REIT can draw on knowhow gained through management of 5,340,000 m 2

CRE-REIT
7%

171

Property management
Logistics investment

9
21
48

Asset management

Master lease

Area managed

29%

1,590 properties
5,340,000 m2
Other listed REITs and Private

Administration

fund, etc.
64%

Total 249
Source: Prepared by the Asset Management Company based on Annual Report for Fiscal 2020 of CRE, Inc.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

Note : As of July 31, 2020. Includes results under property management and master lease agreements forproperties other than logistics-related facilities.

30

3. Characteristics of CRE Logistics REIT, Inc.

CRE’s Leasing / Property Management Capability ― Wide tenant network is a strength
Instantly understands rent trends, including actual rents paid andrent increases and decreases, through the conclusion of contracts
directly with diverse tenants not just logistics service providers.
••

CRE can gain an understanding of rent levels by entering contracts
with tenants directly as master tenant under a master leasearrangement

Ranks Second Among Logistics Facilities-focusing PM
companies(Note 1)
5.6

6

5.3
4.6

4.2

4

CRE builds relationships with tenants from a variety of industries not
only logistics operators.
2

Other
Consumer services

0.9

0(Million m2) 日本GLP
GLP

Transportation
services

大和ハウス
Daiwa
House プロロジス
Prologis SGリアルティ
SG Realty
プロパティ
Property
マネジメントManagement

Corporation services

1,075 companies
Whole sale

Real estate and construction

Manufacturing

Around 70% of tenants are
not logistics operators

Note: As of July 31, 2020. Includes tenants of properties other than logistics-related facilities.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

Major Customers (Note2)

Total Number ofMaster Lease Tenants (Note)

Retail• Mitsubishi Estate Logistics REIT Investment
Corporation• Japan Logistics Fund, Inc.
• Industrial & Infrastructure Fund Investment
Corporation• LaSalle LOGIPORT REIT
• Star Asia Investment Corporation• Kenedix Retail REIT Corporation• United Urban Investment Corporation• Morgan Stanley Capital K.K.
• Mitsui & Co., Realty Management Ltd.
• Mitsubishi Jisho Investment Advisors, Inc• Yamato Home Convenience Co. Ltd.
• TLC REIT Management Inc.
(No particular order)

Note 1: Prepared by the Asset Management Company based on Monthly Property Management magazine (November
2020 edition).“Logistics facilities-focusing PM companies” refer to property management companies with 70% ormore of their entrusted areas those of logistics facilities. “Entrusted areas” include the management areas of realestate other than logistics facilities. In company names, Co., Ltd., Inc., etc. is omitted.
Note2: CRE Inc.’s Summary of Financial Statements for First Three Quarters of Fiscal Year Ending July 31, 2021.

31

3. Characteristics of CRE Logistics REIT, Inc.

Development Capability―Development Incorporating Tenant Requirements While Ensuring Versatility
Realization of Long-term Contracts and Mitigation of Tenant Risk by Incorporating Tenant Requirements
While Ensuring Versatility= High-quality logistics facilities developed by CRE to meet tenant needs
Versatility=

Location+

Basic
Specification+

Expandability+

Comfort+Tenant’s unique requirements

Improvement of Convenience Through Full Reflection of Requirements Learned Through Day-to-Day Management andLeasing Activities in Development Plans

Improvement of convenience/
Reduction of future costs

Development / CM teamReflection of requirements and management
status in development plans

Leasing teamProperty management teamCommunication

Tenant companies and potential tenants

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

32

3. Characteristics of CRE Logistics REIT, Inc.

CRE’s Development Capability

Cumulative total floor area

―Development Since the Start of Real Estate Securitization in Japan

Total floor area of properties developed or to be developed during the period

Properties developed by Commercial RE

Properties developed by CRE

Properties jointly developed by Commercial RE and Kenedix

Properties to be developed by CRE (planned)

Properties held by other REITs

Assets owned by CRE REIT

Newly acquired assets

Properties with first refusal right

CRE has been developing logistics properties since real estate securitization started in Japan and has built up
knowhow on the development of properties suitable for REITs.
Track record of development of 36 properties and around 800,000 m2

LogiSquare Chiba Kita II

LogiSquare Kuki II

LogiSquare Chitose

LogiSquare Misato

LogiSquare Urawa Misono

LogiSquare Tosu

LogiSquare Ageo

LogiSquare Niiza

LogiSquare Kawagoe

LogiSquare Kawagoe II

LogiSquare Moriya

LogiSquare Kasukabe

LogiSquare Kobe Nishi

Toyama BTS

LogiSquare Sayama Hidaka

LogiSquare Miyoshi II

LogiSquare Miyoshi

LogiSquare Osaka Katano

900
LogiSquare Mizuho A

LogiSquare Yachiyo

805

800

703
700

LogiSquare Mizuho B

LogiSquare Kazo II

LogiSquare Tosu II

LogiSquare Kuki

600
LogiSquare Matsuzaki I

LogiSquare Ichikawa-tajiri

LogiSquare Sagamihara

LogiSquare Soka

LogiSquare Yashio

LogiSquare Hidaka

LogiSquare Hanyu

477

500
400

LogiSquare Tosu I

LogiSquare Matsuzaki II

300
Yokohama Fukuura Logistics Center

200

118

100

167
49

220
53

248
29

267
19

65

119

358

LogiSquare Tokorozawa

128

283
16

75

FY2015/7

FY2016/7

LogiSquare Kazo I

80

FY2006/3(Thousand m2)

Timing of listingof logistics
REITs

Note:

576
33

542

102

110
FY2007/3

May 2005

FY2008/3

FY2009/3

FY2013/7

Dec. 2012

Listing of first REIT specializing
in logistics facilities

FY2014/7

Feb. 2013

FY2017/7

Feb. 2016 Aug. 2016

FY2018/7

Sep. 2017

FY2019/7

Feb. 2018

Sep. 2018

FY2020/7

FY2021/7

Dec. 2019

CRE REIT listed

While the above also includes other assets besides portfolio assets, CRE REIT has not engaged in specific negotiations with the CRE Group companies on any of the above assets that are not portfolio assets, nor does it have any plan to acquire them at the present
time or guarantee future acquisition. The above also includes properties that have already been sold to third parties. Furthermore, with respect to properties to be developed by CRE (planned), as of August 13, 2021, development is not complete and theconceptional drawing, total floor area and development completion timing are based on plans as of August 13, 2021 and may change in the future. The building completion dates of the above properties are stated as the development completion dates.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

33

4. Market Environment

LogiSquare Kawagoe II
The property is located approximately 3.6 km from Sakado Interchange on the Ken-O Expressway, approximately 7.0 km from Kawagoe Interchange on the Kan-etsu Expressway, and approximately 7.0
km from theCopyright
Tsurugashimaon the Kanetsu
and also
has excellent access to the National Route 254, which is a main road within the Tokyo metropolitan area.
(C) Interchange
2021 CRE Logistics
REIT,Expressway
Inc. All Rights
Reserved.

34

4. Market Environment

Summary of Market Trends
Recent Market Trends
Vacancy rate: 1.27% QoQ: Slightly Deteriorated (+ 0.72pt)

Tokyo Metropolitan Area
Pages 36-38

Despite the increase in demand, the vacancy rate increased given the large
supply of properties.
Vacancy rate: 2.19% QoQ: Slightly Improved (- 0.38pt)

Osaka Area
Pages 36 and 38

Both supply of and demand for new properties are high.

Rising Demand for Rental Logistics Facilities(1) Reconstruction Demand for
Logistics Facilities

Around 30% of logistics facilities in the Tokyo Metropolitan Area are 40 to 50 years old.
Page 39

3PL Market Size

EC Market Size/EC Ratio

2009(2) Expansion of 3PL Market and EC
Market2019

3.1 trillion yen
1.2 trillion yen
2.5-fold increase2010

19.4 trillion yen
7.8 trillion yen
2.5-fold increasein 10 years(3) Rising Importance of Logistics
Network Strategy

in 9 years

2.8%

Page 40

2019

6.8%

64% of tenant companies that use logistics facilities have plans to relocate or expand
Page 41

logistics facilities.

Note: Please refer to the notes on each page from 36 to 41 page for the definition of each calculation method of each figure.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

35

4. Market Environment

Market Trends(1) Tokyo Metropolitan Area and Osaka Area (from LogiSquare Market Report)
Tokyo Metropolitan Area

Vacancy rate: Less than 5%
Vacancy rate: 5% or more and less than 10%
Vacancy rate: 10% or more

Vacancy rate: 1.27％ QoQ: Slightly Deteriorated

Despite the increase in demand, the vacancy rate increased given the large supply of properties.

The vacancy rate was 1.27%, increasing 0.72 points from the previous Q. Demand for new properties continues to behigh. New supply was approx. 200,000 tsubo, the third largest since the survey started, and the absorption rate was85%. Although the vacant area doubled due to the large number of properties supplied, the vacancy rate remained as
low as 1.27％. Supply of a large number of properties will continue; new supply with approx. 813,000 tsubo, the largest
since the survey started, is scheduled for 2021CY and new supply of approx. 238,000 tsubo and of approx. 200,000
tsubo is scheduled for 3Q and 4Q, respectively. Currently slightly less than 70% have been reserved for 3Q.
Although the vacancy rate is likely to be maintained at 3% or less for the time being, the reservation trends of large
properties to be completed in 4Q will be monitored from an early stage.
2,500

10%

2,000

8%

1,500

6%

1,000

4%

500

2%

0

0%

(Ten thousand m2)

Rented area

Vacant area

Vacancy rate (right axis)

Osaka Area
Both supply of and demand for new properties are high.

Vacancy rate: 2.19％ QoQ: Slightly Improved

The vacancy rate was 2.19%, decreasing 0.38 points from the previous Q. Demand for new properties rose to approx.
90,000 tsubo, the third highest since the survey started. As new properties representing approx. 104,000 tsubo were
supplied, on the other hand, slightly more than 10% of that has yet to be absorbed. The demand for existing properties
exceeded the supply and approx. 20,000 tsubo was absorbed. While the vacancy rates are either remaining low ordecreasing in other areas, only Hokusetsu Higashi-Osaka area continued deteriorating from the previous Q.
New supply with approx. 78,000 tsubo is scheduled for 2021CY3Q, of which slightly more than 90% has been reserved
currently. Demand continues to be high. Although the vacancy rate is unlikely to deteriorate significantly for the time
being, the reservation trends will be monitored.
1,000

20%
15%

500

10%
5%

0

0%

(Ten thousand m2)

Rented area

Vacant area

Vacancy rate (right axis)

Source: Prepared by the Asset Management Company based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2021” of CRE, Inc.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

36

4. Market Environment

Market Trends(2) Saitama Prefecture each area (from LogiSquare Market Report)
Soka

Urawa
MisonoYashioMiyoshi

Saitama Kan-Etsu/ Tohokudo area

Vacancy rate:1.78% QoQ: Slightly Deteriorated

Vacancy rate:1.68% QoQ: Slightly Improved

The vacancy rate was 1.78%, increasing 0.03 points from the previous Q.
New supply with approx. 23,000 tsubo was absorbed. The supply of existing properties
exceeded absorption.
New supply with approx. 40,000 tsubo is scheduled for 4Q in 2021CY, the current reservation
rate of which is reportedly 50%.
Reservation trends will be monitored from an early stage.
New supply with approx. 83,000 tsubo is scheduled for 2022CY.

The vacancy rate was 1.68%, decreasing 0.14 points from the previous Q.
Of new supply with approx. 50,000 tsubo, slightly more than 20% has yet to be absorbed. The
demand for existing properties exceeded the supply and approx. 12,000 tsubo was absorbed.
New supply with approx. 68,000 tsubo is scheduled from 3Q in 2021CY, the current reservation
rate of which is reportedly less than 10%. Approx. 37,000 tsubo of the new supplies in 3Q, inparticular, are reportedly not in progress. Reservation trends will be monitored.

4,000

15%

千

千

Southern Saitama area

Niiza

3,000

4,000

15%

3,000

10%

10%

2,000

2,000
5%

5%

1,000

1,000

Rented area

Vacant area

Vacancy rate (right axis)

Rented area

Vacant area

202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

2016120%2016090(Thousand m2)

201606202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

2016090%2016060(Thousand m2)

Vacancy rate (right axis)

Source: Prepared by the Asset Management Company based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2021” of CRE, Inc.

Breakdown: Saitama Kan-Etsu/ Tohokudo area
Mizuho B

Saitama Kan-Etsudo area

KawagoeMizuho A

Kawagoe II

SayamaHidakaKuki II

Saitama Tohokudo area

Hanyu

Kasukabe

Ageo

Vacancy rate:2.24%
15%

千

千

Vacancy rate:1.08%
2,000

Kuki

2,000

15%

10%
1,000

10%
1,000

5%

Rented area

Vacant area

Vacancy rate (right axis)

Rented area

Vacant area

202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

2016120%2016090(Thousand m2)

201606202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

2016090%2016060(Thousand m2)

5%

Vacancy rate (right axis)

Source: Prepared by the Asset Management Company based on data from CRE, Inc.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

37

4. Market Environment

Market Trends(3) Other each area (from LogiSquare Market Report)
MoriyaTosu

Tosu area

Vacancy rate:1.14% QoQ: Slightly Deteriorated

Vacancy rate:0.00%

The vacancy rate was 1.14%, increasing 0.56 points from the previous Q.
New supply with approx. 13,000 tsubo was absorbed. Slightly less than 2,000 tsubo of existing
properties were supplied.
Approx. 19,000 tsubo are scheduled for 3Q in 2021CY and reportedly all has been reserved.
The vacancy rate is likely to remain low for a while.
New supply with approx. 15,000 tsubo and approx. 41,000 tsubo is scheduled for 2022CY andfor 2023CY, respectively. Reservation trends will be monitored from an early stage.

The vacancy rate was 0.00%, remaining at an extremely low level.
New supplies of approx. 15,000 tsubo were absorbed and there was no change in existing
properties.No new supplies are scheduled from 3Q in 2021CY.
The extremely low vacancy rate is likely to remain for a while.
Approx. 28,000 tsubo are scheduled for 2022CY, and approx. 77,000 tsubo, the largest since
the survey started, are scheduled for 2023CY.
Reservation trends will be monitored from an early stage.

1,000

40%

千

千

Southwestern Ibaraki area

QoQ: Flat

1,000

30%

20%
20%
10%

Rented area

Vacant area

Kobe Nishi

Vacancy rate:3.34%

20%202106202103202012202009202006202003

201912

201909201903

201906

Vacancy rate (right axis)

QoQ: Deteriorated

The vacancy rate was 3.34%, deteriorating 1.60 points from the previous quarter.
Of new supply with approx. 84,000 tsubo, slightly less than 20% has yet to be absorbed. The
demand for existing properties exceeded the supply and the absorption continued.
New supply with approx. 70,000 tsubo is scheduled from 3Q in 2021CY, of which 90% or more
has been reportedly reserved. On the other hand, reservations of slightly less than 7,000 tsubo
are reportedly not in progress. Reservation trends will be monitored.
千30%201812

Vacant area

Hokusetsu Higashi-Osaka area

QoQ: Flat

1,000

201809201806201803201712

201709201706201703Rented area

The vacancy rate was 0.00%, remaining at an extremely low level for seven consecutive Qs.
There were no changes in both new supplies and existing properties.
New supply with approx. 24,000 tsubo is scheduled for 4Q in 2021CY, the current reservation
rate of which is reportedly slightly more than 40%. Although the vacancy rate is likely to remain
low for a while, the reservation trends will be monitored from early stages.
New supplies with approx. 28,000 tsubo are scheduled for 2022CY.
千201612

Vacancy rate (right axis)

Inland Kobe area
Vacancy rate:0.00%

0%2016090(Thousand m2)

201606202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

2016090%2016060(Thousand m2)

4,000

30%

3,000

20%

2,000

Rented area

Vacant area

Vacancy rate (right axis)

Rented area

Vacant area

202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

2017092017062017030%2016120(Thousand m2)

201609202106202103202012202009202006202003

201912

201909201906201903201812

201809201806201803201712

201709201706201703

201612

2016090%2016060(Thousand m2)

10%

1,000

201606

10%

Vacancy rate (right axis)

Source: Prepared by the Asset Management Company based on data from “LogiSquare Market Report on Warehouses and Logistics Properties June 2021” of CRE, Inc.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

38

4. Market Environment

Rising Demand for Rental Logistics Facilities(1) Reconstruction Demand for Logistics Facilities• About 30% of logistics facilities in the Tokyo Metropolitan Area(Note 1) were constructed during the period of high economic growth or the
economic bubble, and they are 40 to 50 years old.
• Given that the useful life of logistics facilities under the tax code is 38 years(Note 2), demand for reconstruction in pursuit of functionality appears to
be increasing.
Percentage of logistics facilities in the Tokyo Metropolitan Area by year of construction

Distribution of locations by the number of facilities

100%

10%

To 1969

80%

18%

60%

23%

1970 - 1979

1980 - 1989
1990 - 1999
From 2000

40%

24%

20%

25%

About 30% of logistics
facilities are more than
40 to 50 years old.

These facilities are
20 to 40 years old andwill reach demand forreconstruction in the
future.

Construction from 2000, when
foreign-affiliated developers
began development in Japanand advanced logistics
facilities began being
constructed.

10-29 facilities
30-59 facilities
60 facilities or more
Expressway, etc.

0%

Source: Prepared by the Asset Management Company based on data from Tokyo Metropolitan Transportation Planning Association
Note 1: Tokyo Metropolitan Area includes Tokyo, Kanagawa, Saitama, Chiba, central and southern Ibaraki, southern Tochigi and southern Gunma
Note 2: Steel-reinforced concrete or reinforced concrete structures

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

39

4. Market Environment

Rising Demand for Rental Logistics Facilities(2) Expansion of 3PL Market and EC Market• The market for third-party logistics (3PL) is growing as increasingly
companies are tending to comprehensively outsource their logistic
operation.

• The EC market is expanding year by year. However, in Japan, theEC rate is low compared with the U.S. and there is still much roomfor expansion.

3PL (Third-Party Logistics) Market Size

Growth in the BtoC e-commerce market size in Japan

3.5
3.0
2.5

1.78 1.88

2.0
1.5

1.27

2.04

2.25

2.48 2.59

2.85

3.03 3.16

19.4

20.0

15.0

12.8

1.46

10.0

9.5

7.8 8.5
4.4% 4.9%

5.4%

7.1%
5.8% 6.4%

0.0

0.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (year)

Source: “The monthly Logistics Business” September 2020 issue

2.8% 3.2% 3.4%

U.S. 18%
13.6% 16%

7.9%

8.7%

9.6%

10.7%

12%
10%
8%
6%

5.0

0.5

20%

14%

11.2

1.0

(Trillion yen)

13.8

15.1

16.5

18.0

3.9%

6.8%
5.8% 6.2%Japan
5.4%
4.4% 4.8%(Trillion yen) 2010 2011 2012 2013 2014
E-commerce market size in Japan (left axis)
E-commerce rate in the U.S. (right axis)

4%
2%
0%

2015 2016 2017 2018 2019 2020 (year)
E-commerce rate in Japan (right axis)

Source: Prepared by the Asset Management Company based on data of the Ministry of Economy, Trade and Industry for the
BtoC e-commerce market size and the e-commerce rate in Japan and data of the United States Census Bureau for the
e-commerce rate in the U.S.
Note : The ratio of the e-commerce market size to the amount of all commercial transactions (the commercial transaction
market size). The e-commerce rate in BtoC e-commerce refers to the value in the field of product sales.

• In recent years, the floor space of new warehouse construction starts is around half the peak level and there is a shortage of logistics facilities tomeet current logistics needs.
Trends in Floor Space of New Construction Starts
20

RetailWarehouses

15

10

5

0
(Million m2)

1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 (year)

Source: Prepared by the Asset Management Company based on the Japan Construction Starts Report by the Ministry of Land, Infrastructure, Transport and Tourism and the Statistical Yearbook of Construction by the Ministry of Construction

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

40

4. Market Environment

Rising Demand for Rental Logistics Facilities(3) Rising Importance of Logistics Network Strategy• 64% of tenant companies that use logistics facilities haveplans to relocate or expand logistics facilities.
Plans for relocation / expansion of logistics facilities

No plan29%

Relocation,
reorganization
36%• Possibility that rental demand for logistics facilities will
increase due to COVID-19.
Medium- to long-term changes and the impact of COVID-19
considered by tenants using logistics facilities

Building up of inventories to prepare for an
emergency
Acceleration of the automation of warehouse
operations (to reduce dependence on labor)
Increase in demand for the last mile
Increase in demand for refrigerated
warehouses for foods and fresh foods
Acceleration of the use of unmanned delivery
robots (to avoid face-to-face delivery)

Others7%
Shrink0%

No particular change

Expansion
28%

Others0%

Number of responses: 336
Survey period: March 4, 2020 to March 19, 2020
Survey targets: Tenant companies using logistics facilities
Source: Prepared by the Asset Management Company based Tenant survey on the use of logistics facilities
2020 from CBRE K.K.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

10%

20%

30%

40%

Number of responses: 361
Survey period: March 4, 2020 to March 19, 2020
Survey targets: Tenant companies using logistics facilities
Source: Prepared by the Asset Management Company based on the Impact of COVID-19 on Logistics from
CBRE K.K.

41

5. Appendix

LogiSquare Urawa MisonoMany ingenuities have been applied with regard to signs on the property including the use of designs creating a sense of intimacy that visualizes warehouse features such as the effective ceiling height,
floor weightCopyrightcapacity and(C)lighting
2021 intensity.
CRE Logistics REIT, Inc. All Rights Reserved.

42

5. Appendix

Tokyo Metropolitan Area-centered Portfolio
Locations of Assets Held and Pipeline

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

43

5. Appendix

Portfolio is Composed of Newly Built and Highly Occupying Properties
Developed by CRE
No.

Property nameLocation

Acquisition
price(million yen)Appraisalvalue(million yen)Appraisal
NOI yield(%)

Total floor area
(m2)

Age
Number of Occupancy
Developer(years)tenants
ratio(%)

M-1

LogiSquare Kuki

Kuki-shi, Saitama

9,759

10,8004.8

40,907.13

5.1

1

100.0

ＣＲＥ

M-2

LogiSquare Hanyu

Hanyu-shi, Saitama

6,830

7,130

5.0

33,999.61

5.0

1

100.0

ＣＲＥ

M-3

LogiSquare Kuki II

Kuki-shi, Saitama

2,079

2,270

5.1

11,511.22

4.4

1

100.0

ＣＲＥ

M-4

LogiSquare Urawa Misono

Saitama-shi, Saitama

13,06014,600

4.7

48,738.29

4.3

3

100.0

ＣＲＥ

M-5

LogiSquare Niiza

Niiza-shi, Saitama

6,960

7,520

4.9

25,355.82

4.3

1

100.0

ＣＲＥ

M-6

LogiSquare Moriya

Moriya-shi, Ibaraki

6,157

6,930

5.2

32,904.90

4.2

2

100.0

ＣＲＥ

M-7

LogiSquare Kawagoe

Kawagoe-shi, Saitama

1,490

1,620

5.0

7,542.56

3.4

1

100.0

ＣＲＥ

M-8

LogiSquare Kasukabe

Kasukabe-shi, Saitama

4,900

5,480

5.1

21,315.54

3.1

1

100.0

ＣＲＥ

M-9

LogiSquare Soka

Soka-shi, Saitama

8,109

8,890

4.6

28,817.59

8.0

1

100.0

ＣＲＥ

M-10 LogiSquare Yashio

Yashio-shi, Saitama

5,073

5,500

4.6

19,068.60

7.4

1

100.0

ＣＲＥ

M-11 LogiSquare Mizuho A

Mizuho-machi, Tokyo

2,794

3,100

4.9

13,755.16

14.4

1

100.0

ＣＲＥ

M-12 LogiSquare Mizuho B

Mizuho-machi, Tokyo

3,584

3,930

4.8

16,016.37

14.4

1

100.0

ＣＲＥ

M-13 LogiSquare Ageo

Ageo-shi, Saitama

4,908

5,150

4.6

19,142.84

2.2

2

100.0

ＣＲＥ

M-14 LogiSquare Miyoshi

Miyoshi-machi,
Saitama

11,70012,700

4.6

37,931.49

1.1

1

100.0

ＣＲＥ

M-15 LogiSquare Sayama Hidaka

Hanno-shi,
Saitama

14,066

14,6004.4

73,728.44

1.1

1

100.0

ＣＲＥ

M-16 LogiSquare Kawagoe II（Note）

Kawagoe-shi,
Saitama

3,244

3,380

4.8

14,281.38

2.0

1

100.0

ＣＲＥ

O-1

LogiSquare Tosu

Tosu-shi, Saga

2,823

3,260

5.3

16,739.40

3.4

1

100.0

ＣＲＥ

O-2

LogiSquare Chitose

Chitose-shi, Hokkaido

1,300

1,560

6.6

19,760.00

3.6

1

100.0

ＣＲＥ

O-3

LogiSquare Kobe Nishi

Kobe-shi, Hyogo

3,479

3,620

4.7

16,006.20

1.2

1

100.0

ＣＲＥ

112,316

122,040

4.8

497,522.54

4.3

23

100.0

―

19 properties Total/Average

Note：LogiSquare Kawagoe II has two buildings, but the total floor area is stated the sum of total floor areas presented in the real estate registries of the two buildings. The age is stated based on the real estate registry of the building with the larger total
floor area of the two buildings.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

44

5. Appendix

Achieve Further Portfolio Diversification

Tenant industries (Note 2)

Diversification of tenants

Top 5 tenants

43.2%

Manufacturing
2.3%
Medical
2.4%
Information andcommunications
3.3%

Warehouse/transportationrelated
5.1%

Cargo handled by tenants (Note 3)

Ratio of logistics
industry in end users

72.2%
Home appliances Other
4.5%
2.8%
Pharmaceuticals
4.5%
Packaging material
5.2%

Wholesale
10.3%

Books
5.3%

Number oftenants

23

Food and beverage
19.5%Entertainment
articles and toys
5.5%
Real estate (CRE)
18.4%

Land
transportation
58.1%

Daily commodities
14.1%

Apparel
6.1%
Furniture
8.0%Interior products
11.0%

Machines and parts
13.4%

Note 1: Based on leased area.
Note 2：Outer circle shows the industries of end users.
Note 3：Parcels handles are counted based on visual contact or hearing results, and only major items are stated.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

45

5. Appendix

Overview of Appraisal Value

9th FP

10th FP(2020/12)(2021/6)

Compared to
9th FP

Appraisal value

98,780 million yen

122,040 million yen+ 23,260 million yen

Book value

90,253 million yen

110,767 million yen+ 20,514 million yen

By the acquisition of assets
acquired in the 10th FP+21,600 million yen

Unrealized gains

8,526 million yen

11,272 million yen+ 2,745 million yen

By appraisal of existing assets+1,660 million yen

9.4 %10.2 %+ 0.7 %

137,499 yen

143,278 yen+ 5,778 yen

Unrealized gains rate
NAV per unit
Appraisal value / Unrealized gains rate

NAV per unit

140,000

35.0%

150,000

137,499

122,040
120,000

129,286
30.0%

98,780110,767 25.0%

100,000

143,278

122,212

114,936

117,317

118,187

10,974

13,727

14,96918,218103,962

103,589

103,217

103,993

22,537

20,134
17,043100,000

78,58080,00060,00040,00047,59320,0005.3%

50,48047,306

6.7%(million yen)Appraisal value

50,00053,1568.9%

7.4%
6th FPBook value

120,740

117,365

3rdPO
8th FP

10.2%

9.4%

8.1%
2nd
PO

7th FP

112,243

10.0%

47,019

1stPO
5th FP

15.0%

50,4800
4th FP

20.0%

72,661

57,88050,13090,253

5.0%
4th
PO

9th FP

Unrealized gains rate

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

0.0%
10th FP

1st
PO

0
(yen)

4th FP

5th FP

6th FP

7th FP

Net assets after distribution per unit

2ndPO
8th FP

3rd
PO

4th
PO
9th FP

10th FP

Unrealized gains per unit46

5. Appendix

Overview of Appraisal ValueNo.

Property nameAt the end of the
At the end of the
ChangesBook value
10th FP
9th FP
Acquisition Acquisition at
Unrealized Unrealized
the end ofmonth and
price
gains
gains rate
the
10th
FP
Appraisal
DirectAppraisal
DirectAppraisal
Directyear(million yen) (million yen)(million
yen)
(%)
value
capitalization
value
capitalization
value
capitalization(million yen) rate (%) (million yen) rate (%) (million yen) rate (%)

M-1

LogiSquare Kuki

Jul. 2016

9,759

9,156

10,8004.3

10,500

4.4

+ 300

- 0.1

1,643

17.9

M-2

LogiSquare Hanyu

Jul. 2016

6,830

6,409

7,130

4.7

7,120

4.7

+ 10

―

720

11.2

M-3

LogiSquare Kuki II

Feb. 2018

2,079

2,009

2,270

4.6

2,220

4.7

+ 50

- 0.1

260

12.9

M-4

LogiSquare Urawa MisonoFeb. 201813,06012,757

14,6004.2

14,600

4.2

―

―

1,842

14.4

M-5

LogiSquare Niiza

Feb. 2018

6,960

6,775

7,520

4.5

7,400

4.5

+ 120

―

744

11.0

M-6

LogiSquare Moriya

Feb. 2018

6,157

5,976

6,930

4.5

6,770

4.6

+ 160

- 0.1

953

16.0

M-7

LogiSquare Kawagoe

Jul. 2019

1,490

1,481

1,620

4.4

1,600

4.5

+ 20

- 0.1

138

9.3

M-8

LogiSquare Kasukabe

Jul. 2019

4,900

4,855

5,480

4.3

5,390

4.4

+ 90

- 0.1

624

12.9

M-9

LogiSquare Soka

Feb. 2020

8,109

8,168

8,890

4.0

8,680

4.1

+ 210

- 0.1

721

8.8

M-10 LogiSquare Yashio

Feb. 2020

5,073

5,123

5,500

4.0

5,380

4.1

+ 120

- 0.1

376

7.3

M-11 LogiSquare Mizuho A

Feb. 2020

2,794

2,844

3,100

4.2

3,010

4.3

+ 90

- 0.1

255

9.0

M-12 LogiSquare Mizuho B

Feb. 2020

3,584

3,624

3,930

4.2

3,840

4.3

+ 90

- 0.1

305

8.4

M-13 LogiSquare Ageo

Jul. 2020

4,908

4,916

5,150

4.3

5,050

4.4

+ 100

- 0.1

233

4.8

M-14 LogiSquare MiyoshiJul. 2020

11,70011,66812,7004.2

12,500

4.3

+ 200

- 0.1

1,031

8.8

M-15 LogiSquare Sayama Hidaka

Jan. 2021

14,066

14,17014,6004.1――+ 14,600

―

429

3.0

M-16 LogiSquare Kawagoe II

Jan. 2021

3,244

3,270

3,380

4.4

―

―

+ 3,380

―

109

3.3

O-1

LogiSquare Tosu

Apr. 2018

2,823

2,733

3,260

4.5

3,190

4.6

+ 70

- 0.1

526

19.3

O-2

LogiSquare Chitose

Jul. 2020

1,300

1,311

1,560

5.3

1,530

5.4

+ 30

- 0.1

248

19.0

O-3

LogiSquare Kobe Nishi

Jan. 2021

3,479

3,514

3,620

4.4

―

―

+ 3,620

―

105

3.0

End of 10th FP Total / Average―

112,316

110,767

122,040―

98,780―+ 23,260―

11,272

10.2

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

47

5. Appendix

Status of Investors
Major investors （as of June 30, 2021）
Name

Number of investment units by type of owner
Number ofinvestment
units(units)

Ratio
(%)

Individuals/others
Foreigners

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

99,633

19.9

Custody Bank of Japan, Ltd. (Trust Account)

98,642

19.7

The Nomura Trust and Banking Co., Ltd. (Investment Trust
Account)

23,027

4.6

Custody Bank of Japan, Ltd. (Securities Investment Trust Account)

21,391

4.3

CRE, Inc.

20,390

4.1

The Bank of Yokohama,Ltd.

10,1992.0

Mitsubishi UFJ Trust and Banking Corporation

8,884

1.8

ＪＰ MORGAN CHASE BANK 380684

8th FP(2020/6)

7,455

1.5

2nd
PO

SSBTC CLIENT OMNIBUS ACCOUNT

5,667

1.1

Aozora Bank, Ltd.

5,396

1.1

7th FP(2019/12)

300,684

60.1

1st
PO

Total

Number of investors by type of owner （as of June 30, 2021）
Number ofinvestors(person)Individuals/others

Ratio
(%)

9,964

95.7

Financial institutions

74

0.7

Other domestic corporations

203

1.9

Foreigners

152

1.5

Securities companies

24

0.2

10,417

100.0

Total

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

Financial institutions
Securities companies

Other domestic corporations

12.3%
61,305

61.6%
308,166

13.2%
56,071

63.5%
268,753

7.1% 14.3%
29,857 60,435

2.0%
8,384

16.8%
58,252

57.3%
199,135

11.3% 12.5%
39,132 43,419

2.1%
7,312

19.1%
49,506

48.7%
126,15419.1%
49,47510.5%
27,227

6th FP(2019/6)

22.0%
50,82142.8%
99,02425.2%
58,3407.7% 2.2%
17,780 5,185

5th FP(2018/12)

25.2%
58,21426.1%
60,395

6.0% 1.0%
13,984 2,325

4th FP(2018/6)

21.3%
49,12810th FP(2021/6)

6.2% 16.8%
31,254 83,907

3.1%
15,5184thPO

9th FP(2020/12)
3rd
PO

41.6%
96,232

42.1%
97,21426.4%
61,122

2.7%
6,888

9.7% 0.6%
22,361 1,325

48