June 27, 2019
To All Concerned Parties
Name of REIT Issuer:
CRE Logistics REIT, Inc.
2-10-1, Toranomon, Minato-ku, Tokyo, Japan
Tsuyoshi Ito, Executive Director(TSE Code: 3487)
Asset Management Company
CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Person of Contact:
Hirohisa Toda, Head of Corporate Planning
Tel: +81-3-5575-3600

Notice Concerning Revision of Forecasts of Operating Results for the Period ending
December 31, 2019 and Forecasts of Operating Results for the Period ending June 30, 2020
CRE Logistics REIT, Inc. (hereinafter “CRE REIT”) announces revision of its operating results forecast for
the fiscal period ending December 31, 2019, which CRE REIT announced on February 18, 2019 in the“Summary of Financial Results for the 5th Fiscal Period Ended December 31, 2018,” and a new operating
results forecast for the fiscal period ending in June 2020. The operating results forecast for the fiscal period
ending June 30, 2019 remains unchanged.
1. Revision of operating results forecast for fiscal period ending December 31, 2019: (From July 1, 2019 toDecember 31, 2019)
Operatingrevenue(Millionyen)
Previousforecast (A)Revisedforecast (B)Operatingincome(Millionyen)

Ordinary
income(Millionyen)

Net income Distributions
per unit(Million(including surplusyen)

Distributions
per unit

distributions)(excludingsurplus
distributions)

(Yen)

(Yen)

Surplus
distributions
per unit
(Yen)

1,412

715

594

593

2,940

2,568

372

1,578

823

681

680

2,990

2,625

365

166

107

87

87

50

57

-7

+11.8%+15.0%+14.7%+14.7%

+1.7%

+2.2%

-1.9%

Amountincrease/decrease(B –A)
Rate ofincrease/decrease(Reference) Fiscal period ending December 31, 2019: Expected total number of investment units issued and outstanding at the end of
the period: 259,250 units; Expected net income per unit: 2,625 yen

2. Operating results forecast for fiscal period ending June 30, 2020 (From January 1, 2020 to June 30, 2020)1

Operating
revenue(Millionyen)
Fiscalperiodending June2020

1,591

Operatingincome(Millionyen)

825

Ordinaryincome(Millionyen)

Net income Distributions(Millionper unityen)(including surplus

691

690

Distributions
per unit

distributions)(excludingsurplus
distributions)

(Yen)

(Yen)

3,029

2,664

Surplus
distributions
per unit(Yen)
365(Reference) Fiscal period ending June 30, 2020: Expected total number of investment units issued and outstanding at the end of theperiod: 259,250 units; Expected net income per unit: 2,663 yen(Note 1) The results forecasts above are calculated based on the assumptions outlined in the attached “Assumptions Underlying theOperating Results Forecasts for the Fiscal Period Ending December 31, 2019 and the Fiscal Period En ding June 30, 2020.”
Actual operating revenue, operating income, ordinary income, net income, distribution per unit (including surplus distributions),distribution per unit (excluding surplus distributions) and surplus distributions per unit may vary due to differences fromassumptions as a result of future acquisitions or disposal of real estate, etc., fluctuations in rent income due to changes inlessees, etc., changes in the operating environment such as the occurrence of unexpected repairs, fluctuations in interest rates,
the actual number of issuances and issue value of new investment units to be decided, or the issuance of new investment units.
Moreover, these forecasts do not guarantee the amounts of distributions and surplus distributions.
(Note 2) Forecasts may be modified if there is expected to be a noticeable discrepancy with the above forecasts.
(Note 3) All amounts are rounded down and percentages are calculated to the second decimal place with fractions less than .05 being
rounded down and .05 and more being rounded up. The same applies hereinafter.

3. Reason for the revision
As a result of the issuance of new investment units announced in the “ Notice Concerning Issuance of New
Investment Units and Secondary Offering of Investment Units” and the acquisition of assets announced in“Notice Concerning Acquisition of Domestic Trust Beneficial Interests in Real Estate and Leasing Thereof ”,
both of which were announced on June 27, 2019, the assumptions underlying the operating results forecast for
the fiscal period ending December 31, 2019 announced on February 18, 2019 in the “Summary of Financial
Results for the 5th Fiscal Period Ended December 31, 2018” have been changed, and a difference of more than
10% will occur in terms of the operating revenue forecast. Accordingly, the forecasts for the operating results
and distributions for the fiscal period ending December 31, 2019 have been revised and new forecasts havebeen disclosed for the fiscal period ending June 30, 2020.

* CRE Logistic REIT, Inc. website: https://cre-reit.co.jp/en/2

[Attachment]
Assumptions Underlying the Operating Results Forecasts for the Fiscal Period Ending December 31, 2019
and the Fiscal Period Ending June 30, 2020
Item

Assumptions

Calculation period

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

Assets under・It is assumed that (i) CRE REIT will continue to own real estate trust beneficiary rights inmanagement

the total of two properties to be acquired on July 16, 2019 pursuant to the resolution of ameeting of the Board of Directors held on June 27, 2019 (“Assets to Be Acquired”) until
June 30, 2020, which will be added to the real estate trust beneficiary rights in the total ofseven properties held by CRE REIT as of June 27, 2019 “Assets Currently Held”), and(ii) there will be no changes (acquisition of new properties, disposition of properties held,etc.) until June 30, 2020 except for the acquisition of the Assets to Be Acquired.
・In fact, however, there may be changes mainly due to the acquisition of new properties
other than the Assets to Be Acquired and the disposal of properties held.

Operating revenue

・Real estate leasing business revenues related to the Assets Currently Held are calculated
based on lease contracts that are in effect as of June 27, 2019 and historical results.
・Real estate leasing business revenues related to the Assets to Be Acquired are calculated
based on information on leasing contracts provided by their current owners orbeneficiaries.
・The calculations assume that there will be no delinquencies or defaults on rent paymentson the part of tenants.

Operating expenses

・Expenses other than depreciation, which are considered to be real estate leasing expenses
or main operating expenses, are calculated by taking into consideration change factors
such as expenses assumed to be incurred (taxes and public dues, entrusted property
management, property insurance, repairs, etc.) based on the historical results for theAssets Currently Held, and for the Assets to Be Acquired, based on information provided
by their current owners and lease contracts in effect on June 27, 2019.
・Property taxes, city planning taxes and other charges levied are expected to amount to 146
million yen for the fiscal period ending December 31, 2019 and 146 million yen for thefiscal period ending June 30, 2020.
・In general, property taxes, city planning taxes and other charges levied on transacted realestate are settled at the time of acquisition by prorating for the period with the current
owners. Because CRE REIT capitalizes the amounts equivalent to such settled amounts
on the acquisition costs for properties, property taxes, city planning taxes and othercharges levied on the Assets to Be Acquired are not recorded as expenses for the fiscal
period ending December 31, 2019. As such, property taxes, city planning taxes and othercharges levied on properties for fiscal year 2020 will be booked as expenses from thefiscal period ending June 30, 2020. Property taxes, city planning taxes and other charges
levied on the Assets to Be Acquired are expected to 18 million yen for the fiscal periodending June 30, 2020 and following period. Property taxes, city planning taxes and othercharges levied on the Assets to Be Acquired, which will be capitalized in acquisition costs,
are expected to total 16 million yen.
・Depreciation, which is calculated based on the straight-line method, is expected to be 316
million yen for the fiscal period ending December 31, 2019 and 316 million yen for the3fiscal period ending June 30, 2020.
・Entrusted property management fees are expected to be 75 million yen for the fiscal period
ending December 31, 2019 and 76 million yen for the fiscal period ending June 30, 2020.
Non-operating

・Non-operating expenses for the fiscal period ending December 31, 2019 are expected toexpenses

total 141 million yen. This amount will include the payment of 121 million yen for interest
and other financing-related expenses, 3 million yen for expenses related to the issuanceof investment units, 6 million yen for the depreciation of founding costs, and 9 million
yen for the depreciation of investment unit issuance costs.
・Non-operating expenses for the fiscal period ending June 30, 2020 are expected to be 133
million yen. This amount will include the payment of 118 million yen for interest andother financing-related expenses, 6 million yen for the depreciation of founding costs, and8 million yen for the depreciation of investment unit issuance costs.

Interest-bearing debt

・It is assumed that total interest bearing debt will be 26,986 million yen for the fiscal period
ending December 31, 2019 and 26,719 million yen for the fiscal period ending June 30,2020.
・CRE-REIT assumes that it will take on new borrowings amounting to 3,167 million yen
from qualified institutional investors defined in Article 2, Paragraph 3, Item 1 of theFinancial Instruments and Exchange Act. However, the actual amount of borrowing may
be changed by the time of the implementation of the borrowing, taking into account factors
such as the net proceeds obtained from the new issuance of investment units that wasresolved at a meeting of CRE REIT’s Board of Directors held on June 27, 2019. Other
details about such new borrowings will be announced after they are determined.
・CRE REIT assumes that it will implement the refinancing of 6,679 million yen for thelong-term borrowing of 6,680 million yen whose due date is July 31, 2019 in the fiscal
period ending December 31, 2019.
・The loan-to-value (LTV) ratio is expected to be 48.2% at the end of the fiscal period ending
December 31, 2019 and 47.9% at the end of the fiscal period ending June 30, 2020. The
following formula is used to calculate the LTV ratio, with numbers rounded off to the firstdecimal place.
LTV ratio = Total interest-bearing debt ÷ Total assets × 100
・The LTV may vary depending on the number and value of the investment units to beissued this time.

Investment units

・ It is assumed that in addition to the total of 231,150 investment units issued andoutstanding as of June 27, 2019, 28,100 new investment units will be issued based on aresolution of CRE REIT’s Board of Directors adopted at a meeting held on June 27, 2019,
and there will be no change to the number of investment units through new issues ofinvestment units by the end of the fiscal period ending June 30, 2020 or by other means,excluding the said issuance.
・Distributions per unit (excluding surplus distributions) are calculated based on 259,250
units, or the total of the expected numbers of investment units issued and outstanding at
the end of the fiscal periods ending December 31, 2019 and June 30, 2020, respectively.

Distributions per unit

・Distributions per unit (excluding surplus distributions) are calculated in accordance with(excluding surplus

CRE REIT’s policy on the distribution of cash as stipulated in its Articles ofdistributions)

Incorporation..
・Distributions per unit (excluding surplus distributions) may change for a variety ofreasons, including changes in CRE REIT’s investment assets, changes in leasing
revenues due to tenant movements, etc., and/or the occurrence of unforeseen repairs and4

maintenance, etc.
Surplus distributions

・Surplus distributions per unit are calculated in accordance with the policies stipulated in

per unit

CRE REIT’s regulations as well as the asset management guidelines provided in the asset
management company’s internal regulations. The total amount of surplus distributions isexpected to be 94 million yen for the fiscal period ending December 31, 2019 and 94
million yen for the fiscal period ending June 30, 2020, with an amount equivalent to 30%of depreciation specified as a benchmark.
・It is assumed that there will be no specific possibility of significant deterioration in theeconomic environment, the real estate market condition and CRE REIT’s financialconditions.
・CRE REIT has a policy of continuously implementing surplus distribution every term, inprinciple, with an amount equivalent to 30% of depreciation as a benchmark.
・In addition, in cases where distributions per unit are expected to decline temporarily to acertain extent due to the dilution of the investment unit value or a significant financial
burden as a result of the procurement of funds through the issuance of new investment
units or for other reasons, CRE-REIT may continue to implement a temporary surplus
distribution, in addition to the continuous surplus distributions, with a view tostandardizing the amount of the distributions per unit. However, this amount shall not
exceed the amount equivalent to 60% of depreciation for the relevant business period,
including the continuous surplus distributions.
・In fact, the amount of distributions exceeding earnings (return of contributions) may
change due to factors such as the economic environment, trends in the real estate market,
the situation surrounding owned assets, and financial conditions, and the surplus
distribution of the amount (return of contributions) may not be undertaken as a result.

Other・It is assumed that there will be no change in legislation, taxation, accounting standards,
listing regulations imposed by the Tokyo Stock Exchange, rules and requirements
imposed by The Investment Trusts Association, Japan, etc., that will impact theaforementioned forecasts.
・It is assumed that there will be no unforeseen material changes in general economic
trends, real estate market conditions, etc.

5