Semi-Annual Report
Fiscal Period Ended December 31, 2021

from July 1, 2021 to December 31, 2021

We wish to sincerely thank you for the outstanding support you have provided CRE Logistics REIT, Inc. (“CREREIT”).
We listed our shares on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange on
February 7, 2018, and are pleased to have concluded the 11th fiscal period which is the eighth fiscal period sincelisting. We would like to express our sincere gratitude for your support.
During the 11th fiscal period, we added one property acquired through the fifth public offering so that the total
number of properties we held rose to 20, all of which were fully occupied and maintained steady operation.
Consequently, the business results in the 11th fiscal period included operating revenue of 3,595 million yen (up 435
million yen from the previous period), operating income of 2,088 million yen (up 287 million yen from the previous
period), and net income of 1,798 million yen (up 277 million yen from the previous period). Distributions totaled
1,990 million yen (up 290 million yen from the previous period) by adding 190 million yen of distributions in excessof earnings, corresponding to 31.0% of the depreciation of properties held, to net income. As a result, thedistributions per unit amounted to 3,524 yen, exceeding the forecast of 3,504 yen by 20 yen.
While we must be careful of recession not only in the Japanese economy, but the global economy, caused by the
COVID-19 pandemic, inflation caused by high resource prices, the deterioration of consumer confidence andcorporate performance, we expect that the leasing market for logistics real estate will remain strong, based on thefurther growth in home shopping and electronic commerce and inventories accumulated by shippers in preparation
for contingencies such as disruption to supply chains.
Going forward, five lease contracts will expire between the fiscal period ending June 30, 2022 and the fiscal period
ending June 30, 2023, but we have already concluded new lease contracts with existing tenants, four lease contracts
out of five are accompanied by rent increases. Based on this strong leasing market for logistics real estate, we expect
to maintain a 100% occupancy rate for the properties we held until the end of 2023, and we will engage inmanagement that will further grow cash flow and continue to return the outcomes to our investors.
We hope that we can continue to count on your support.

Executive Director, CRE Logistics REIT, Inc.
President, CRE REIT Advisers, Inc.

Tsuyoshi Ito1

1. Operating Results(1) Operating Resultsi. Overview of the Current Fiscal Period
A. Major trends of CRE REIT
CRE REIT was established on May 12, 2016, by CRE REIT Advisers, Inc. (the “Asset Manager”) as the organizer
pursuant to the provisions of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951,
including subsequent amendments) and its shares were listed on the Real Estate Investment Trust Securities Marketof the Tokyo Stock Exchange (“TSE”) on February 7, 2018. (Security Code: 3487) During the current fiscal period,
one property, LogiSquare Osaka Katano was additionally acquired for the acquisition price of 22,370 million yen. Asof the end of the fiscal period, CRE REIT owned 20 properties, with a total acquisition price of 134,686 million yen.
B. Operation environment and results
The Japanese economy during the current fiscal period has been sluggish in response to a decrease in economic
activities primarily due to a fall in consumption as a result of the COVID-19 pandemic which introduced an
emergency declaration in the summer holiday season, and supply constraints caused by the shortage of semiconductor.
Prospects continue to be uncertain due to concerns over employment. In the environment surrounding the J-REIT
market, the TSE REIT index remained unstable as a result of soaring natural resources price including oil and acontinued rise in long-term interest rate.
Meanwhile, demand for logistics real estate is expected to continue to grow, given such trends as the sophisticationof supply chain management (Note 1) and the rapid expansion of stay-at-home consumption such as home shoppingand electronic commerce, an increase in the number of parcels sent by home delivery service, and an increase in theuse of third-party logistics (3PL) (Note 2) companies. Moreover, as a result of the expansion of the range of logistics
real estate users associated with this market growth, demand is growing not only for large facilities, but also for
multi-functional logistics real estate with high specifications and available in various sizes. The increasing difficultyof securing warehouse personnel due to current labor shortages is creating demand for logistics real estate at locations
accessible to more hiring opportunities.
While attention must be paid to recession not only in the Japanese economy, but the global economy, caused bysupply constraints caused by the shortage of semiconductors and the spread of infection in Southeast Asia, inflation
caused by soaring resource prices and deterioration of corporate performance, the lease market for logistics real estateis expected to remain strong given the further expansion of home shopping and e-commerce and inventories
accumulated by shippers in preparation for contingencies such as disruption to supply chains.
Under these circumstances, CRE REIT has been conducting appropriate management and operation of its 20
properties we held as of the end of the current fiscal period in cooperation with CRE, Inc. (“CRE”) and maintained
a high operation status with 100% occupancy of the overall portfolio as of the end of the current fiscal period.
Note 1:
Note 2:

Supply chain management refers to an efficient management technique of seamless supply by regarding the flow from parts manufacturers,
assembled product manufacturers, distributors, and to customers as a chain. The same applies hereafter.
Third-party logistics (3PL) means planning the most efficient logistics strategies, proposing the development of logistics systems, and receiving
comprehensive contracts to implement such strategies and development in lieu of shippers. The same applies hereafter.

C. Overview of financing
CRE REIT raised 13,147million yen through a public offering with a payment date of September 15, 2021, andunitholders’ capital, net, as of the end of the current fiscal period, totaled 73,535 million yen. CRE REIT also raised
9,500 million yen through borrowings on September 15, 2021, for asset acquisition. Moreover, CRE REIT issued
green bond of 2,000 million yen on November 26, 2021 and made a prepayment for borrowings of 2,000 million yen
on November 30, 2021. As a result, the balance of interest-bearing liabilities stood at 61,869 million yen as of theend of the current fiscal period, and the percentage of interest-bearing liabilities in total assets as of the end of thecurrent fiscal period was 44.0%.
The credit ratings received by CRE REIT applicable to both the issuer and bond as of the end of the current fiscal
period are described below.

2

Rating Agency
Rating and Investment
Information, Inc. (R&I)
Japan Credit Rating Agency, Ltd.
(JCR)

Rating Subject
Issuer rating
Bond rating

RatingAA-

Rating Outlook
Positive-

Long-term
Issuer Rating

A

StableNote: These are not the ratings of the investment units of CRE REIT. There are no credit ratings that have been provided or made publicly available bycredit rating agencies or credit ratings that will be provided or made publicly available by credit agencies with respect to the investment units of
CRE REIT at CRE REIT’s request.

D. Overview of business performance and distributions
As a result of the management described above, the results for the current fiscal period included operating revenueof 3,595 million yen, operating income of 2,088 million yen, ordinary income of 1,799 million yen, and net incomeof 1,798 million yen.
CRE REIT decided to distribute all undistributed earnings held at the end of the current fiscal period, excluding
fractions of a yen, assuming that earnings distributions would be added as deductible expenses by applying the special
provisions for the taxation of investment corporations (Article 67-15 (1) of the Act on Special Measures Concerning
Taxation (Act no.26 of 1957, including subsequent revisions)) (“Special Provisions for Taxation of Investment
Corporations”) based on CRE REIT’s distribution policy specified in its certificate of incorporation. As a result,earnings distribution per investment unit came to 3,186 yen. In addition, CRE REIT plans, in principle, tocontinuously distribute amounts in excess of earnings in each fiscal period pursuant to the distribution policy
specified in its certificate of incorporation. Based on this, CRE REIT distributed 190,868,600 yen, an amount nearly
equivalent to 31.0% of depreciation for the current fiscal period, as a return of contribution corresponding to
distributions accompanying the decrease in capital under the tax law. As a result, distributions in excess of earnings
per investment unit amounted to 338yen (Note).
Note: The six-month average of total expenses for emergency repair and medium- to long-term repair indicated in the engineering report for each asset
held is 60 million yen. As a result of examining the current economic environment, trends in the real estate market and lease market, CRE REIT’s
financial condition, and other factors, CRE REIT decided to distribute funds in excess of profit based on the judgment that the distribution would bewithin the range that the value of assets held and that its financial health would be maintained. The distributions in excess of earnings for the current
fiscal period will be deducted from the capitalization at the time of payment.

ii. Outlook for the Next Fiscal Period
A. Future investment policy
CRE REIT focuses on investing in high-quality logistics-related facilities (Note 2) that meet the demand of tenants
generally in the Tokyo metropolitan area (Note 1). Needs of logistics real estate users have been increasingly
diversified in recent years due to changes in the market structure. CRE REIT considers that acquiring, holding, andoperating high-quality logistics-related facilities having the necessary and sufficient functions to meet the needs ofindividual users of logistics real estate represents the originality of its investment strategies.
CRE REIT uses the comprehensive strengths (Note 4) of the CRE Group (Note 3), which has more than 50 years ofexperience in the logistics real estate business, to invest in high-quality logistics-related facilities that meet the needsof tenants, create stable cash flow, and aim to increase value for investors.
Note 1:
Note 2:
Note 3:Note 4:The Tokyo metropolitan area includes Tokyo, Kanagawa, Chiba, Saitama, Ibaraki, Tochigi, Gunma, and Yamanashi. The same applies hereafter.
CRE REIT’s concept of high-quality logistics-related facilities meeting tenant needs are logistics-related facilities that have the location, basic
specifications, expandability, and comfort necessary to satisfy tenant needs. The same applies hereafter.
The CRE Group includes CRE and its affiliates. The CRE Group consists of CRE and its subsidiaries and affiliates. The same applies hereafter.
The CRE Group has its original know-how characterized by total services in logistics real estate covering from the management and operation(proposing effective use of land, master leasing, property management, and leasing) to development (acquisition, planning, construction
management (management of quality, construction periods, costs, etc. in development projects. The same applies hereinafter.), sale), holding, andoperation (investment and external acquisition). This is in some cases referred to as the comprehensive strength of the CRE Group.

3

a. Long-term, stable asset management
CRE REIT believes that CRE is able to prepare locations, basic specifications, expandability, and comfortable
use of properties that meet tenant needs, ensure an appropriate balance with rent levels, and develop logisticsrelated facilities to establish long-term lease contracts, which can be expected to generate stable cash flow.
CRE REIT ensures medium- to long-term stable cash flow by acquiring and operating properties mostly having
long lease terms. CRE REIT also aims to achieve long-term, stable operation using this wide-ranging operationand management know-how of the CRE Group, promoting cost reduction while raising customer satisfaction,and reducing the risk of vacancies after tenant vacation.
b. External growth strategy
CRE REIT believes that it is able to promote strong external growth by receiving opportunities to acquire all
logistics-related facilities developed and held by CRE (Note) through a sponsor support agreement with the CRE
Group, a logistics real estate developer.
CRE REIT aims to achieve external growth by maximizing the use of pipeline support based on know-how built
on extensive achievements and experience in the operation, leasing, development, investment, etc. of the CRE
Group through the sponsor support agreement.
Note: Unless the grounds for exclusion from application stipulated in the Sponsor Support Agreement apply.

c. Financial policy
The basic policy of CRE REIT is to build a sound and stable financial base for the purpose of increasing andmaintaining medium to long-term revenues. CRE REIT flexibly issues new investment units according to thecharacteristics of its portfolio consisting primarily of long-term lease agreements, taking into account the LTVlevel and market environment and paying attention to dilution (decrease in the ratio of voting rights perinvestment unit due to the issuance of new investment units and decrease in net asset value per investment unit
or distribution per unit), and conducts financial operation with a focus on long-term stability by using borrowings
with fixed, long-term interest rates.
While CRE REIT’s LTV level is set to approximately 45% and no more than 50%, in principle, it may
temporarily exceed 50% due to asset acquisition or other factors.
Logistics facilities are characterized by a high ratio of building price to land and building price and depreciation
tends to be comparatively higher than other asset classes. However, the average building age (Note) of CRE
REIT’s portfolio is low at 4.2 years, and large capital expenditures are not very likely to become necessary.
Therefore, CRE REIT has set a policy of distributing funds exceeding profit, in principle, continuously and inevery fiscal period (“continuous distributions in excess of earnings”), taking into consideration other options,
including use for repairs or capital expenditures, repayment of borrowings, and the acquisition of new properties.
For the time being, the level of continuous distributions in excess of earnings will be an amount equivalent to
30% of depreciation for the corresponding fiscal period. If a temporary decrease in distribution per unit isexpected, CRE REIT may distribute continuous distributions in excess of earnings plus a one-off distributionthat exceeds the profit level in the period for the purpose of maintaining the ordinary level of the distributions
per unit. However, total amount of the continuous distributions in excess of earnings and a one-off distribution
shall not exceed the equivalent to 60% of total depreciation for the relevant business period.
Note: The weighted average of the building ages (the number of years from the year of construction indicated in the real estate register to the end of
the current fiscal period) of the 20 properties held at the end of the current fiscal period based on their acquisition prices, which is rounded to
the first decimal place.

4Since Listing in February 2018, Steady Growth through Five Public Offerings
Distributions per unit (DPU)

4,000

3,351
3,000

NAV per unit

Annual rate +7.3%

3,086
2,952 3,012

3,392 3,398

170,000

3,524 3,529 3,547
3,504

(Yen)

158,006

3,529
140,000

2,585

114,936 117,317 118,187

2,000

1,000

Annual rate +9.5%

4th FP

5th FP

6th FP

7th FP

8th FP

Dated September 2, 2021

9th FP

10th FP

11th FP

12th FP
Forecast

80,00013th FP
Forecast(Yen)+10.3%

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

Asset size

x

-3.7%

2.8

134.6

150

47.7% 47.9% 47.7%

112.3
45.9%

46%

45.0% 44.8%

Dated September 2, 2021

44.3% 44.3%-0.2%

5th FP

6th FP

7th FP

73.6
47.7

47.7

47.7

(Billion yen) 4th FP

5th FP

6th FP50

54.1

44.0% 43.9% 44.0%

Dated February 17, 2022

4th FP

91.5

100

Result44%

11th FP

Annual rate +34.5%

49.3%

48%

10th FP

Dated Feburary 17, 2022

LTV

42%

129,286

110,000

Result50%

122,212143,278
137,499

8th FP

9th FP

10th FP

11th FP

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

12th FP
Forecast

13th FP
Forecast

0

7th FP

8th FP

9th FP

10th FP

11th FP

5

Highlights on the 11th FP – Achieved Record High Results through External GrowthDistributions per unit
11th FP Results(2021/12)

NAV per unit
3,524 yen(vs forecast:+20 yen, +0.6%)

11th FP Results(2021/12)

Portfolio
158,006 yen(vs previous FP +14,727 yen, +10.3%)

Portfolio size

20 properties 134 billion yen

12th FP Forecasts

3,529 yenOccupancy rate

100.0%

13th FP Forecasts

3,547 yen

Average remaining
lease term

5.0 years

Average property age

4.2 years(2022/6)(2022/12)

Asset

Debt
11th FP(2021/12)

Compared to10th FP

Equity11th FP(2021/12)

Compared to10th FP

11th FP(2021/12)

Compared to10th FPAppraisal value

148,560 million yen +26,520 million yen

Interest-bearing
debt

Unrealized gains

15,881 million yen+4,609 million yen

LTV

44.0%

-0.9%

NAV

Unrealized gains ratio

12.0%

+1.8%

LTV based on
appraisal value

39.5%

-1.4%

NAV per unit

158,006 yen+14,727 yen

NOI yield

4.6%

-0.2%

Ratio of fixedinterest debt

100.0%+1.9%

Total number ofinvestment units
outstanding

564,700 units+64,550 units

NOI yield after
depreciation

3.7%

-0.1%

Ratio of long-term
debt

100.0%-%

Repair expense

3 million yen-2 million yen

Average borrowinginterest rate

0.577%+0.026%

Capital expenditure

5 million yen-13 million yen

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

61,869 million yen + 9,200 million yen

Net assets per unit

133,406 yen+9,267 yen

89,226 million yen +17,565 million yen

6High-Quality Portfolio (1) Stable Cash Flow

Form of contract that enables stable operation••

In many cases, tenants who cancel early before the end of the contract term are required to
pay the equivalent of rent for the whole remaining lease term as a penalty for breach ofcontract. (1)Intention for renewal or termination is ascertained a year before the expiry of a contract.

Ratio of fixed-term lease contracts

Inclusion of relatively newly built properties•

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

Ratio of fixed-rate rents

Property age

10 years or more
4.7%

Ratio of fixed-termlease contracts

100.0%

Ratio of fixed-rate
rents

Less than 3 years
44.4%

5 years or more but lessthan 10 years
22.1%

Average

4.2 years

100.0%

3 years or more but lessthan 5 years
28.8%

1. 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) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

7

High-Quality Portfolio (2) Long Term Lease Contracts

Contribution to the stability of portfolio based on long-term contracts that take into consideration tenantbusiness plans.
Average lease contract term

Average remaining lease term
10 years or more
2.5%

Less than 5 years
18.2%

10 years or more
40.4%

Multi-tenant
34.5%

Average

Average

7.9 years

5.0 years

5 years or more andless than 10 years
41.4%

Tenant composition

5 years or more andless than 10 years
43.1%

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

Single-tenant
Less than 5 years
54.4%

65.5%

Single-tenant
65.5%

8

High-Quality Portfolio (3) Good Location
Properties are mostly located in a place suited for logistics where strong demand is expected, meeting
tenants' needs to secure labor.
Ratio in Tokyo Metropolitan and Kansai area

Distance to an interchange

Walking distance from public transportation facilities

5 km or more
8.4%

Others3.1%

3 km or more and lessthan 5 km
12.8%

Kansai Area
19.2%

96.9%
Tokyo
Metropolitan Area
77.7%

Average

Walk more than 10 mins
13.0%
Less than 1 km
45.4%

2.5km

Walk within
10 mins

87.0%

1 km or more and lessthan 3 km
33.4%

Walk within 10 mins
87.0%

Example: LogiSquare Urawa Misono
The property is located approximately 700 m from Urawa IC (Tohoku Expressway) and approximately 450 m and a 6 minutes 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 become a potential advantage in securing employees because of theconvenience in their commutes.

Urawa IC

700 m

450 m
6 mins walk

Urawa Misono Station

LogiSquare Urawa Misono
Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

9

Portfolio Centered on Metropolitan Areas
Locations of current assets and pipeline assets

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

10

Portfolio Consisting of Newly Built, High Occupancy Properties Developed by CRE
No.

Property nameLocation

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

Total floor area
(m2)

Age
(years)Number Occupancy
Developerof tenants ratio(%)

M-1

LogiSquare Kuki

Kuki-shi, Saitama

9,759

11,1004.8

40,907.13

5.6

1

100.0

CRE

M-2

LogiSquare Hanyu

Hanyu-shi, Saitama

6,830

7,280

5.0

33,999.61

5.5

1

100.0

CRE

M-3

LogiSquare Kuki II

Kuki-shi, Saitama

2,079

2,340

5.2

11,511.22

4.9

1

100.0

CRE

M-4

LogiSquare Urawa Misono

Saitama-shi, Saitama

13,06014,900

4.7

48,738.29

4.8

3

100.0

CRE

M-5

LogiSquare Niiza

Niiza-shi, Saitama

6,960

7,710

4.9

25,355.82

4.8

1

100.0

CRE

M-6

LogiSquare Moriya

Moriya-shi, Ibaraki

6,157

7,500

5.6

32,904.90

4.7

2

100.0

CRE

M-7

LogiSquare Kawagoe

Kawagoe-shi, Saitama

1,490

1,700

5.1

7,542.56

3.9

1

100.0

CRE

M-8

LogiSquare Kasukabe

Kasukabe-shi, Saitama

4,900

5,620

5.1

21,315.54

3.6

1

100.0

CRE

M-9

LogiSquare Soka

Soka-shi, Saitama

8,109

9,130

4.6

28,817.59

8.5

1

100.0

CRE

M-10

LogiSquare Yashio

Yashio-shi, Saitama

5,073

5,650

4.6

19,068.60

7.9

1

100.0

CRE

M-11

LogiSquare Mizuho A

Mizuho-machi, Tokyo

2,794

3,170

4.9

13,755.16

14.9

1

100.0

CRE

M-12

LogiSquare Mizuho B

Mizuho-machi, Tokyo

3,584

4,010

4.8

16,016.37

14.9

1

100.0

CRE

M-13

LogiSquare Ageo

Ageo-shi, Saitama

4,908

5,280

4.6

19,142.84

2.7

2

100.0

CRE

M-14

LogiSquare Miyoshi

Miyoshi-machi,
Saitama

11,70013,000

4.6

37,931.49

1.6

1

100.0

CRE

M-15

LogiSquare Sayama Hidaka

Hanno-shi,
Saitama

14,066

14,8004.4

73,728.44

1.6

1

100.0

CRE

M-16

LogiSquare Kawagoe II

Kawagoe-shi,
Saitama

3,244

3,440

4.8

14,281.38

2.5

1

100.0

CRE

O-1

LogiSquare Tosu

Tosu-shi, Saga

2,823

3,340

5.3

16,739.40

3.9

1

100.0

CRE

O-2

LogiSquare Chitose

Chitose-shi, Hokkaido

1,300

1,590

6.6

19,760.00

4.1

1

100.0

CRE

O-3

LogiSquare Kobe Nishi

Kobe-shi, Hyogo

3,479

3,700

4.7

16,006.20

1.7

1

100.0

CRE

O-4

LogiSquare Osaka Katano

Katano-shi, Osaka

22,37023,3004.4

76,393.17

1.0

5

100.0

CRE

134,686

148,560

4.7

573,915.71

4.2

28

100.0

–

20 properties Total/Average
Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

11

Overview of Appraisal ValueNo.

Property nameAt the end of the
At the end of thevalue
ChangesAcquisition Acquisition atBook
11th
FP
10th FP
Unrealized Unrealized
the
end
of
month and
price
gains
gains rate
Appraisal
DirectAppraisal
DirectAppraisal
Directthe 11th FP
year(million yen) (million
(%)
value
capitalization
value
capitalization
value
capitalization (million yen)
yen)(million yen) rate (%) (million yen) rate (%) (million yen) rate (%)

M-1

LogiSquare Kuki

Jul. 2016

9,759

9,090

11,1004.2

10,800

4.3

+ 300

- 0.1

2,009

22.1

M-2

LogiSquare Hanyu

Jul. 2016

6,830

6,363

7,280

4.6

7,130

4.7

+ 150

- 0.1

916

14.4

M-3

LogiSquare Kuki II

Feb. 2018

2,079

1,995

2,340

4.5

2,270

4.6

+ 70

- 0.1

344

17.3

M-4

LogiSquare Urawa MisonoFeb. 201813,06012,69014,9004.1

14,600

4.2

+ 300

- 0.1

2,209

17.4

M-5

LogiSquare Niiza

Feb. 2018

6,960

6,738

7,710

4.4

7,520

4.5

+ 190

- 0.1

971

14.4

M-6

LogiSquare Moriya

Feb. 2018

6,157

5,938

7,500

4.5

6,930

4.5

+ 570

–

1,561

26.3

M-7

LogiSquare Kawagoe

Jul. 2019

1,490

1,474

1,700

4.3

1,620

4.4

+ 80

- 0.1

225

15.3

M-8

LogiSquare Kasukabe

Jul. 2019

4,900

4,833

5,620

4.2

5,480

4.3

+ 140

- 0.1

786

16.3

M-9

LogiSquare Soka

Feb. 2020

8,109

8,151

9,130

3.9

8,890

4.0

+ 240

- 0.1

978

12.0

M-10

LogiSquare Yashio

Feb. 2020

5,073

5,109

5,650

3.9

5,500

4.0

+ 150

- 0.1

540

10.6

M-11

LogiSquare Mizuho A

Feb. 2020

2,794

2,834

3,170

4.1

3,100

4.2

+ 70

- 0.1

335

11.8

M-12

LogiSquare Mizuho B

Feb. 2020

3,584

3,612

4,010

4.1

3,930

4.2

+ 80

- 0.1

397

11.0

M-13

LogiSquare Ageo

Jul. 2020

4,908

4,894

5,280

4.2

5,150

4.3

+ 130

- 0.1

385

7.9

M-14

LogiSquare MiyoshiJul. 2020

11,70011,612

13,0004.1

12,700

4.2

+ 300

- 0.1

1,387

11.9

M-15

LogiSquare Sayama Hidaka

Jan. 2021

14,066

14,09814,8004.0

14,600

4.1

+ 200

- 0.1

701

5.0

M-16

LogiSquare Kawagoe II

Jan. 2021

3,244

3,255

3,440

4.3

3,380

4.4

+ 60

- 0.1

184

5.7

O-1

LogiSquare Tosu

Apr. 2018

2,823

2,714

3,340

4.4

3,260

4.5

+ 80

- 0.1

625

23.0

O-2

LogiSquare Chitose

Jul. 2020

1,300

1,302

1,590

5.2

1,560

5.3

+ 30

- 0.1

287

22.1

O-3

LogiSquare Kobe Nishi

Jan. 2021

3,479

3,499

3,700

4.3

3,620

4.4

+ 80

- 0.1

200

5.7

O-4

LogiSquare Osaka Katano

Sep. 2021

22,37022,46823,3004.2––+ 23,300

–

831

3.7

End of 11th FP Total / Average–

134,686

132,678

148,560–

122,040–+ 26,520–

15,881

12.0

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

12

Overview of Appraisal Value(2021/6)(2021/12)

11th FP

Compared to10th FPAppraisal value

122,040 million yen

148,560 million yen+ 26,520 million yen

Book value

110,767 million yen

132,678 million yen+ 21,910 million yen

By the acquisition of assets
acquired in the 11th FP+23,300 million yen

Unrealized gains

11,272 million yen

15,881 million yen+ 4,609 million yen

By appraisal of existing assets+3,220 million yen

10.2 %

12.0 %+ 1.8 %

143,278 yen

158,006 yen+ 14,727 yen

10th FP

Unrealized gains rate
NAV per unit

NAV per unit

Appraisal value / Unrealized gains rate
160,000

148,560

132,678

120,000

50,13040,00047,593
5.3%

50,48047,306
6.7%

1st
PO

5th FP

6th FP

Appraisal value

100,000

90,253

7th FPBook value

3rdPO

8th FP

129,286
17,043

137,499
20,134

28,123

22,53710.0%

50,000117,365 120,740
103,962 103,589 103,217 103,993 112,243

129,882

5.0%
4th
PO

9th FP

12.0%

10.2%

9.4%

8.1%
2nd
PO

122,212
114,936 117,317 118,187
10,974 13,727 14,969 18,218

143,278

15.0%

72,6618.9%

7.4%

150,000

110,767

53,15647,0190(million yen) 4th FP

57,88050,48025.0%

158,006

20.0%

78,58080,000200,000

30.0%

122,040
98,780

35.0%

5th
PO

10th FP 11th FP

Unrealized gains rate

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

0.0%

1st
PO

0
(yen)

4th FP

5th FP

6th FP

7th FP

2nd
PO

3rd
PO

8th FP

Net assets after distribution per unit

9th FP

4th
PO

5th
PO

10th FP 11th FP

Unrealized gains per unit

13

2．Financial Statements(1) Balance Sheet(Thousands of yen)
As of June 30, 2021

As of December 31, 2021

AssetsCurrent assets
Cash and deposits

1,728,060

2,738,067

Cash and deposits in trust

3,356,893

3,930,134

Operating accounts receivable

158,876

145,642

Prepaid expenses

141,856

153,526

Consumption taxes receivable

982,593666,276

6,368,281

7,633,647

58,837,546

67,620,215

Accumulated depreciation(2,760,123)(3,352,910)

Buildings in trust, net

56,077,422

64,267,304

2,922,640

3,163,201

Accumulated depreciation(106,699)(129,400)

Structures in trust, net

2,815,940

3,033,800

Tools, furniture and fixtures in trust

3,322

3,322

Accumulated depreciation

(453)

(740)

Tools, furniture and fixtures in trust, net

2,868

2,582

Land in trust

51,871,682

65,374,983

Total property, plant and equipment

110,767,914

132,678,671

Other

1,266

866

Total intangible assets

1,266

866

Investment securities

10,50010,500Long-term prepaid expenses

314,648

338,437

17

9

Leasehold and guarantee deposits

10,00010,000Total investments and other assets

335,166

358,947

111,104,347

133,038,485

Investment unit issuance expenses

41,23545,381

Investment corporation bond issuance costs

11,422

26,049Total deferred assets

52,65771,431

117,525,286

140,743,564

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

Structures in trust

Intangible assets

Investments and other assets

Deferred tax assets

Total non-current assets
Deferred assets

Total assets

14

(Thousands of yen)
As of June 30, 2021

As of December 31, 2021

Liabilities
Current liabilities
Operating accounts payable

170,645

169,205

8,254,000

6,080,000

253,712293,297970

808

584,135

695,158

2,820

155,232

9,266,284

7,393,701

Investment corporation bonds

2,000,000

4,000,000

Long-term borrowings
Leasehold and guarantee deposits received intrust

42,415,000

51,789,000

1,742,256

2,212,960

13,63813,214

46,170,894

58,015,175

55,437,179

65,408,877

61,148,104

74,295,196(581,685)(759,739)

60,566,418

73,535,457

1,521,688

1,799,230

1,521,688

1,799,230

62,088,107

75,334,687

Total net assets (Note 1)

62,088,107

75,334,687

Total liabilities and net assets

117,525,286

140,743,564

Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Advances received
Other
Total current liabilities
Non-current liabilities

Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders’ equity

The accompanying notes are an integral part of these financial statements.

15

(2) Statement of Income(Thousands of yen)
Fiscal period ended
December 31, 2021

Fiscal period ended
June 30, 2021
Operating revenue
Leasing business revenue (Note 1)

3,118,710

3,528,515

40,94467,081

3,159,654

3,595,597

1,036,607

1,137,494

269,103

307,071

Asset custody fees

2,750

3,188

Administrative service fees

17,552

20,667

Remuneration for directors (and other officers)

4,500

4,500

Other operating expenses

28,48434,269Total operating expenses

1,358,998

1,507,190

1,800,656

2,088,406

Interest income

23

23

Reversal of distributions payable－

394

Interest on tax refund

185

188

Refund of real estate taxes－

11,139Total non-operating income

208

11,745

137,326

159,440

5,247

6,657

101,346

102,340

Amortization of organization expenses

5,047

－

Amortization of investment unit issuance expenses

12,648

13,694

Amortization of investment corporation bondissuance costs

1,370

1,641

Other

15,263

16,562

Total non-operating expenses

278,250

300,335

Ordinary income

1,522,614

1,799,816

Income before income taxes

1,522,614

1,799,816

Income taxes - current

974

811

Income taxes - deferred(5)

7

Total income taxes

968

819

1,521,645

1,798,997

43

232

1,521,688

1,799,230

Other leasing business revenue (Note 1)
Total operating revenue
Operating expenses
Expenses related to leasing business (Note 1)
Asset management fees

Operating income
Non-operating income

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses

Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)
The accompanying notes are an integral part of these financial statements.

16

(3) Statement of Unitholders' Equity
Fiscal period ended June 30, 2021
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of
periodChanges during
periodIssuance of new
investment units

Unitholders’capitalDeduction
fromunitholders’capital50,285,726(444,048)

10,862,378

Distributions inexcess of
earnings(137,637)

Surplus

Unitholders’capital, net

Unappropri
ated
retainedearnings(undisposed
loss)

49,841,677

1,298,917

Total surplus

Totalunitholders’equityTotal net
assets1,298,917

51,140,595

51,140,595

10,862,378

10,862,378

10,862,378(137,637)(137,637)(137,637)

Dividends ofsurplus(1,298,874)(1,298,874)(1,298,874)(1,298,874)

Net income

1,521,645

1,521,645

1,521,645

1,521,645

Total changes
during period

10,862,378(137,637)

10,724,740

222,771

222,771

10,947,512

10,947,512

Balance at end of
period61,148,104(Note 1)(581,685)

60,566,418

1,521,688

1,521,688

62,088,107

62,088,107

Fiscal period ended December 31, 2021
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of
periodSurplus

Unitholders’capitalDeduction
fromunitholders’capitalUnitholders’capital, net

Unappropri
ated
retainedearnings(undisposed
loss)

61,148,104(581,685)

60,566,418

1,521,688

Total surplus

Totalunitholders’equityTotal net
assets1,521,688

62,088,107

62,088,107

13,147,092

13,147,092

13,147,092(178,053)(178,053)(178,053)

Changes during
periodIssuance of new
investment units

13,147,092

Distributions inexcess of
earnings(178,053)

Dividends ofsurplus(1,521,456)(1,521,456)(1,521,456)(1,521,456)

Net income

1,798,997

1,798,997

1,798,997

1,798,997

Total changes
during period

13,147,092(178,053)

12,969,038

277,541

277,541

13,246,579

13,246,579

Balance at end of
period74,295,196(Note 1)(759,739)

73,535,457

1,799,230

1,799,230

75,334,687

75,334,687

The accompanying notes are an integral part of these financial statements.

17(4) Statement of Cash Distribution(Yen)
Fiscal period ended
June 30, 2021
I.

Unappropriated retained earnings

Fiscal period ended
December 31, 2021

1,521,688,980

1,799,230,110

178,053,400

190,868,600

1,699,509,700

1,990,002,800(3,398)(3,524)

1,521,456,300

1,799,134,200(3,042)(3,186)

178,053,400

190,868,600

(356)

(338)

232,680

95,910II. Surplus cash distributions
Deduction from unitholders’ capital
III. Distributions(Distributions per unit)
Of which, earnings distributions(Earnings distributions per unit)
Of which, distributions in excess ofearnings(Distributions in excess of earnings
per unit)
IV. Retained earnings carried forward
Method of calculating distributions

Note:

Under the distribution policy
established in Paragraph 1, Article 39of the certificate of incorporation of
CRE REIT, the distribution amountshall exceed the amount equivalent to
90% the profit available for
distributions provided for in Article 6715 of the Act on Special Measures
Concerning Taxation. Based on thispolicy, CRE REIT decided to distribute
1,521,456,300 yen, the maximum
integral multiple of the total number ofinvestment units outstanding, 500,150,
which does not exceed theunappropriated retained earnings.
Based on the cash distribution policy
established in Paragraph 2, Article 39of the certificate of incorporation of
CRE REIT, CRE REIT continuously
distributes cash in excess of profit(contribution refunds that fall under
distributions accompanying a decreasein capital under tax law) in every
period. Under this policy, CRE REIT
has decided to distribute 178,053,400
yen, approximately 31.7% ofdepreciation, as distributions in excessof earnings (contribution refunds thatfall under distributions accompanying
a decrease in capital under tax law).

Under the distribution policy
established in Paragraph 1, Article 39of the certificate of incorporation of
CRE REIT, the distribution amountshall exceed the amount equivalent to
90% the profit available for
distributions provided for in Article 6715 of the Act on Special Measures
Concerning Taxation. Based on thispolicy, CRE REIT decided to distribute
1,799,134,200 yen, the maximum
integral multiple of the total number ofinvestment units outstanding, 564,700,
which does not exceed theunappropriated retained earnings.
Based on the cash distribution policy
established in Paragraph 2, Article 39of the certificate of incorporation of
CRE REIT, CRE REIT continuously
distributes cash in excess of profit(contribution refunds that fall under
distributions accompanying a decreasein capital under tax law) in every
period. Under this policy, CRE REIT
has decided to distribute 190,868,600
yen, approximately 31.0% ofdepreciation, as distributions in excessof earnings (contribution refunds thatfall under distributions accompanying
a decrease in capital under tax law).

CRE REIT is able to distribute an amount determined by CRE REIT, not exceeding amounts specified in laws and regulations (including
rules set forth by the Investment Trusts Association) as cash in excess of earnings if CRE REIT deems it appropriate for the purpose ofmaintaining stable distribution or reducing the tax payments of CRE REIT.

18

(5) Statement of Cash Flows(Thousands of yen)
Fiscal period ended
June 30, 2021

Fiscal period ended
December 31, 2021

Cash flows from operating activities
1,522,614

1,799,816

562,935

616,173

Amortization of organization expenses

5,047

－

Amortization of investment unit issuance expenses

12,648

13,694

Amortization of investment corporation bond issuance costs

1,370

1,641

Interest income

(23)

(23)

Interest expenses

142,573

166,097

Decrease (increase) in operating accounts receivable(8,261)

13,234

Decrease (increase) in consumption taxes refund receivable(137,372)

316,317

Decrease (increase) in prepaid expenses(15,396)(11,670)

Increase (decrease) in operating accounts payable

40,529(1,439)

Increase (decrease) in accrued expenses

27,96033,967

Increase (decrease) in advances received

110,640

111,022

Decrease (increase) in long-term prepaid expenses

1,932(23,789)

Other, net

10,270151,144

Subtotal

2,277,471

3,186,189

23

23(136,806)(160,480)

(862)

(974)

2,139,825

3,024,757(21,077,406)(22,526,530)

Proceeds from leasehold and guarantee deposits received in trust

270,413

470,704

Proceeds from restricted deposit

696,902－

Payments into restricted deposits(270,413)(282,422)(20,380,504)(22,338,248)

Proceeds from long-term borrowings

9,900,000

13,774,000

Repayments of long-term borrowings(900,000)(6,574,000)－

1,983,730

Proceeds from issuance of investment units

10,844,907

13,129,251

Distributions paid

(1,436,138)(1,698,665)

Net cash provided by (used in) financing activities

18,408,768

20,614,316

Net increase (decrease) in cash and cash equivalents

168,089

1,300,825

Cash and cash equivalents at beginning of period

3,871,510

4,039,600

Cash and cash equivalents at end of period (Note 1)

4,039,600

5,340,425

Income before income taxes
Depreciation

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment in trust

Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from issuance of investment corporation bonds

The accompanying notes are an integral part of these financial statements.

19(6) Notes to Financial Statements[Notes on going concern assumption]
Not applicable.

[Summary of significant accounting policies]
Basis of presentation
The financial statements have been prepared in accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Act and their related accounting regulations. They are also in conformity with accounting
principles generally accepted in Japan (“Japanese GAAP”), which are different in certain aspects as to the application anddisclosure requirements from the International Financial Reporting Standards (“IFRS”).
The financial statements have been reformatted and translated into English from the financial statements of CRE REIT
prepared in accordance with Japanese GAAP. In preparing these financial statements, certain reclassifications andmodifications have been made to the financial statements issued domestically in order to present them in a format which ismore familiar to readers outside Japan.
As permitted by the regulations under the Financial Instruments and Exchange Act of Japan, amounts of less than one
thousand yen have been omitted. As a result, the totals shown in the accompanying financial statements do not necessarily
agree with the sums of the individual amounts.
1. Asset valuation
standards andvaluation method
2. Depreciation method
for non-current assets

3. Accounting fordeferred assets

4. Standards forrecognition ofrevenues and expenses

Securities
Available-for-sale securities
Securities without market prices
Stated at cost determined by the moving average method.
(1) Property, plant and equipment (including assets in trust)The straight-line method is used.
The useful lives of major property, plant and equipment are as stated below.
Buildings:
2 years to 80 years
Structures:
10 years to 80 years
Tools, furniture and fixtures:
3 years to 10 years(2) Intangible assets
The straight-line method is used.
(3) Long-term prepaid expenses
The straight-line method is used.
(1) Organization expenses
Amortized in equal amounts over five years.
(2) Investment unit issuance expenses
Amortized in equal amounts over three years.
(3) Investment corporation bond issuance costs
Amortized in equal amounts over the period until redemption.
(1) Accounting standard for revenue recognition
The contents of major performance obligations concerning revenue arising from contracts withcustomers of CRE REIT and the general timing to satisfy such performance obligations (generaltiming to recognize the revenue) are as follows.
1. Sale of real estate, etc.
With regard to sale of real estate, etc., revenue is recorded when the buyer (customer) obtains
control of the real estate, etc. as a result of CRE REIT fulfilling the delivery obligation set forth in
the contract pertaining to the sale of real estate.
2. Utilities income
With regard to utilities charges, revenue is recorded in accordance with the supply of electricity,water, etc. to the lessee (customer) based on the lease agreement of the real estate, etc. and the
supplementary agreement. As to utilities charges in cases where CRE REIT is acting as an agent,
the net amount derived by deducting the amount to be paid to other parties supplying theelectricity, gas, etc. from the amount received by CRE REIT as utilities charges for the electricity,gas, etc. supplied by those other parties is recognized as revenue.
(2) Accounting for fixed asset taxes, etc.
Of the amount of fixed asset taxes, city planning taxes, depreciable asset taxes, etc. imposed on realestate owned that was assessed and determined, the amount corresponding to the relevant calculation20

5. Hedge accounting
method

6. Scope of cash (cashand cash equivalents)
in a statement of cashflows
7. Other matters that
become the basis ofpreparing financial
statements

period is expensed as Expenses related to leasing business.
The amount corresponding to fixed asset taxes for the first fiscal period that CRE REIT incurred forthe acquisition of real estate or trust beneficiary interests in real estate is not expensed, but is
included in the acquisition cost of the real estate.
The amount corresponding to fixed asset taxes that was included in the acquisition cost of real estate
was113,643 thousand yen in the previous fiscal period and 5,198 thousand yen in the current fiscal
period.
(1) Hedge accounting method
Deferral hedge accounting is used.
Special treatment is used for interest rate swaps meeting the requirements for special treatment.
(2) Hedging methods and hedged transactions
Hedging instruments: Interest rate swap transactions
Hedged items: Interest on loans(3) Hedging policy
CRE REIT conducts derivative transactions to hedge the risks set forth in its certificate ofincorporation based on rules specifying the basic policy for risk management.
(4) Methods of assessing hedge effectivenessThe evaluation of the effectiveness of interest rate swaps is omitted because they meet therequirements for special treatment.
Cash (cash and cash equivalents) in the statement of cash flows consist of cash on hand, cash in trust,deposits held on call with banks, deposits in trust, and other short-term highly liquid investments with amaturity of three months or less from the acquisition date with an insignificant risk of changes in value.
(1) Accounting for trust beneficiary interests in real estate
For trust beneficiary interests in real estate, all trust assets and liabilities as well as all income
generated and expenses incurred for trust properties are recorded in the applicable accounts in thebalance sheet and the statement of income.
The following material items among assets in trust posted in the trust accounts are listed separately
on the balance sheet.
(i) Cash and deposits in trust(ii) Buildings in trust, structures in trust, tools, furniture and fixtures in trust, and land in trust(iii) Leasehold and guarantee deposits received in trust(2) Accounting for consumption taxes
The accounting treatment of the consumption tax and the local consumption tax is based on the tax
exclusion method.

[Notes to change in accounting policy]
1.Application of Accounting Standard for Revenue Recognition, etc.
By applying Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (“ASBJ”) Statement No.
29 issued 31 March 2020; the “Revenue Recognition Accounting Standard”), etc. from the beginning of the current fiscal
period, the amount CRE REIT expects to receive in exchange for promised goods or services will be recognized as revenue
when control of the promised goods or services is transferred to the customer. The impact of the above on the financial
statements for the current fiscal period is minor. Pursuant to the transitional treatment set forth in Paragraph 89-3 of the
Revenue Recognition Accounting Standard, notes on revenue recognition for the previous fiscal period are not stated.
2. Application of Accounting Standard for Fair Value Measurement, etc.
By applying Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30 issued 4 July 2019; the “Fair Value
Measurement Accounting Standard”) etc. from the beginning of the current fiscal period, CRE REIT has decided to apply
the new accounting policy stipulated in the Fair Value Measurement Accounting Standard, etc. into the future pursuant to
the transitional treatment set forth in Paragraph 19 of the Fair Value Measurement Accounting Standard and Paragraph 442 of Accounting Standard for Financial Instruments (ASBJ Statement No. 10 issued 4 July 2019). The impact of the aboveon the financial statements for the current fiscal period is minor.

21

[Notes to the balance sheet]*1. Minimum net asset value specified in Paragraph (4), Article 67 of the Act on Investment Trusts and Investment
Corporations(Thousands of yen)
As of June 30, 2021

As of December 31, 2021
50,00050,000[Notes to the statement of income]*1. Breakdown of net revenue in the real estate leasing business(Thousands of yen)
Fiscal period ended
June 30, 2021

Fiscal period ended
December 31,2021

Rent revenue
Common-area charge income

3,028,184
90,526

3,419,931
108,583

Subtotal
Other leasing business revenue

3,118,710

3,528,515

23,961
16,982

49,233
17,848

A. Revenue in the real estate leasing businessLeasing business revenue

Utilities income
Other revenues
Subtotal

40,94467,081

3,159,654

3,595,597

Management commissions
Utilities expenses

158,238
26,907183,02055,002

Taxes and public dues
Non-life insurance expenses

264,010
10,675

260,345
11,424

Repair expense
Depreciation

6,578
562,535

3,925
615,773

Total revenue in the real estate leasing business
B. Expenses in the real estate leasing business
Expenses related to leasing business

7,661

8,001

Total expenses in the real estate leasing business

Other expenses related to leasing business

1,036,607

1,137,494

C. Net revenue in the real estate leasing business (A-B)

2,123,047

2,458,102[Notes to statement of unitholders' equity]*1. Total number of authorized investment units and total number of investment units issued and outstanding
Fiscal period ended
Fiscal period ended
June 30, 2021
December 31, 2021
Total number of authorized investment units
Total number of investment units issued andoutstanding

22

10,000,000 units

10,000,000 units

500,150 units

564,700 units

[Notes to statement of cash flows]*1. Cash and cash equivalents at end of fiscal period and their relationship with the amounts of items listed in the balance
sheet
Fiscal period ended
June 30, 2021

(Thousands of yen)
Fiscal period ended
December 31, 2021

Cash and deposits

1,728,060

2,738,067

Cash and deposits in trust
Restricted deposits (Note)

3,356,893(1,045,353)

3,930,134(1,327,776)

Cash and cash equivalents

4,039,600

5,340,425

Note: Deposits and deposits in trust withheld to return leasehold and guarantee deposits received from tenants[Notes to lease transactions]Operating lease transactions (lessor side)
Outstanding lease charges
Fiscal period ended
June 30, 2021
Due within 1 year
Due after 1 year
Total

(Thousands of yen)
Fiscal period ended
December 31, 2021

6,243,184

7,466,999

23,531,901

29,798,274

29,775,086

37,265,273[Notes to financial instruments]
1. Matters related to the status of financial instruments(1) Policy for financial instruments
CRE REIT finances the acquisition of new working assets by issuing investment units, borrowing funds from financial
institutions, issuing investment corporation bonds, or using other means.
CRE REIT carefully uses surplus funds, taking into account safety and liquidity and fully considering the market
environment and financing conditions. Derivative trading is used to hedge the risk of interest-rate fluctuations in financing
such as borrowing or other risks while speculative transactions are avoided.
(2) Details of financial instruments, their risks, and risk management system
Deposits are made from CRE REIT’s surplus funds, which are exposed to credit risks such as the bankruptcy of thefinancial institution to which the funds are deposited. CRE REIT controls credit risks by limiting deposit terms to shortterms and depositing funds only at financial institutions with high credit ratings.
Borrowings and investment corporation bonds are used to finance primarily the acquisition of trust beneficiary interests
in real estate and funds required for the operation of CRE REIT. Among them, floating-rate borrowings are exposed to therisk of interest-rate fluctuations, and CRE REIT uses derivative trading as hedging instruments. Derivative trading is aninterest-rate swap, and CRE REIT hedges the risk of interest-rate fluctuations by, in effect, fixing the interest expenses in
the floating-rate financing. Details about the hedge accounting method, hedged items, hedging policy, and the method ofassessing hedge effectiveness are provided in the earlier section, “5. Hedge accounting method,” in the table “Notes onmatters related to significant accounting policies.”
Leasehold and guarantee deposits received from tenants are money deposited by tenants and exposed to liquidity risk
caused by tenants’ vacation before contract expiration. CRE REIT controls liquidity risk by having the Asset Manager
prepare a cash management schedule and control short-term liquidity.
(3) Supplementary explanation about matters related to the fair value of financial instruments
Certain preconditions apply in the calculation of the fair value of financial instruments, which may vary when different
preconditions apply. The amount of derivative trading contracts in the latter section, “Notes to derivative trading.” do notdirectly indicate market risks associated with derivative trading.

23

2. Matters related to fair value of financial instruments
The following table presents the book value, fair value, and differences between them. “cash and deposits” and “cash anddeposits in trust” are omitted as they are cash or they are settled in a short span of time and therefore similar in fair value
to the book value. Also“operating accounts receivable” “consumption taxes receivable” “leasehold and guarantee
deposits” “operating accounts payable” “accrued expenses” “income taxes payable” “leasehold and guarantee deposits
received in trust” are omitted as they are immaterial. The table does not include securities without market prices.
As of June 30, 2021
(Thousands of yen)
Fair Value(Note 1)

Book value

Difference(1) Current portion of long-term borrowings

8,254,000

8,259,266

5,266(2) Investment corporation bonds

2,000,000

2,001,200

1,200(3) Long-term borrowings

42,415,000

42,424,276

9,276

–

–

–

Derivative trading
As of December 31, 2021

(Thousands of yen)
Fair Value(Note 1)

Book value

Difference(1) Current portion of long-term borrowings

6,080,000

6,085,532

5,532(2) Investment corporation bonds

4,000,000

3,998,800(1,200)(3) Long-term borrowings

51,789,000

51,745,312(43,687)–––

Derivative trading

Note 1: Method of calculating fair value of financial instruments and matters related to derivative trading(1) Current portion of long-term borrowings, (3) long-term borrowings
Given that the fair value of these items is close to their book value because interest rates are renewed after certain periods of time,they are recorded at book value. Long-term borrowings with floating rates that are subject to the special accounting treatment forinterest-rate swaps are calculated by discounting the combined total of principal and interest treated as unified with the Interest-rate
swap by a reasonably estimated discount rate applicable to similar borrowings.
(2) Investment corporation bonds
Investment corporation bonds are recorded at reference values published by the Japan Securities Dealers Association.
Derivative trading
See the latter section, “Notes to derivative trading.”
Note 2: Scheduled repayment amounts of investment corporation bonds and borrowings after the closing date
As of June 30, 2021

(Thousands of yen)
Due after 1 year Due after 2 year Due after 3 year Due after 4 year
Due within 1
and within 2
and within 3
and within 4
and within 5
year
years
years
years
years
Investment corporation bonds
Long-term borrowings
Total

Due after 5
years

―

―

―

―

2,000,000―

8,254,000

6,080,000

6,580,000

8,705,000

7,900,000

13,150,000

8,254,000

6,080,000

6,580,000

8,705,000

9,900,000

13,150,000

As of December 31, 2021

(Thousands of yen)
Due after 1 year Due after 2 year Due after 3 year Due after 4 year
Due within 1
and within 2
and within 3
and within 4
and within 5
year
years
years
years
years
Investment corporation bonds
Long-term borrowings
Total

Due after 5
years

―

―

―

2,000,000―

2,000,000

6,080,000

6,580,000

6,785,000

10,100,000

10,500,000

17,824,000

6,080,000

6,580,000

6,785,000

12,100,000

10,500,000

19,824,00024

[Notes to securities]
Not applicable in the previous fiscal period (ended June 30, 2021) and the current fiscal period (ended December 31, 2021).
[Notes to derivative trading]
1. Derivatives not subject to hedge accounting
Not applicable in the previous fiscal period (ended June 30, 2021) and the current fiscal period (ended December 31,2021).
2. Derivatives subject to hedge accounting
The table below shows the value of contract or the equivalent of the principal set forth in the contract at the closing dateusing the hedge accounting method.
As of June 30, 2021
Hedge accounting
methodType of derivative trading

Major hedged
itemInterest-rate swap
Special accounting
transactions floating rate
treatment forreceivable, fixed rateinterest-rate swaps
payableLong-term
borrowings(Thousands of yen)
Method ofFair value calculating fair
Due after a year
value

Contract amount

49,669,000

42,415,000(Note)―

As of December 31, 2021
Hedge accounting
methodType of derivative trading

Major hedged
item(Thousands of yen)
Method ofFair value calculating fair
Due after a year
value

Contract amountInterest-rate swap
Special accounting
transactions floating rateLong-term
treatment for
57,869,000
51,789,000(Note)―
receivable, fixed rateborrowings
interest-rate swaps
payableNote :Because interest-rate swaps subject to special accounting treatment are treated as unified with the long-term borrowings subject to hedging,their fair value is included in the fair value of “current portion of long-term borrowings” and “long-term borrowings” in the earlier section, “2.
Matters related to fair value of financial instruments.” under “Notes to financial instruments.”[Notes to retirement benefits]
Not applicable in the previous fiscal period (ended June 30, 2021) and the current fiscal period (ended December 31, 2021)
due to the absence of retirement benefit plan in CRE REIT.
[Notes to tax effect accounting]
1. Breakdown of deferred tax assets and liabilities by major cause(Thousands of yen)
As of December 31, 2021

As of June 30, 2021
Deferred tax assets
Amount excluded from deductible expenses ofaccrued enterprise taxes
Total deferred tax assets
Net deferred tax assets

17

9

17

9

17

9

2. Breakdown of major items that caused a significant difference between the effective statutory tax rate and the actual
effective income tax rate
As of June 30, 2021
Effective statutory tax rate
(Adjustment)
Inclusion of distribution paid in deductible
expenses
Other
Actual effective income tax rate25

As of December 31, 2021

31.46%

31.46%(31.44)%(31.45)%

0.04%

0.03%

0.06%

0.05%

[Notes to share of profit and loss of entities accounted for using the equity method]
Not applicable in the previous fiscal period (from January 1 to June 30, 2021) and the current fiscal period (from July 1 to
December 31, 2021) due to the absence of a company affiliated with CRE REIT.
[Notes on transactions with related party]
1. Parent company and major corporate unitholders
Not applicable in the previous fiscal period (from January 1 to June 30, 2021) and the current fiscal period (from July 1 to
December 31, 2021)
2. Affiliated companies
Not applicable in the previous fiscal period (from January 1 to June 30, 2021) and the current fiscal period (from July 1 to
December 31, 2021)
3. Companies under common control
Not applicable in the previous fiscal period (from January 1 to June 30, 2021) and the current fiscal period (from July 1 to
December 31, 2021)
4. Directors and major individual unitholders
Fiscal period ended June 30, 2021
Attributes

Companyor other
names

Address

Capital orinvestment(million yen)

Business or occupation

Directors
and their
relatives

TsuyoshiIto––

Executive Director of CRE
REIT and President of theAsset Manager

Amount ofPercentage of Relationships
Description of transaction
voting rights with relatedtransaction(thousand(owned)partiesyen)
Payment of
Asset
asset
–
management
373,048
management
contractor
fees

Item

Balance at
end of period(thousandyen)

Accruedexpenses

195,748

Note 1: The above transaction amounts do not include consumption tax, while the balance at the end of the fiscal period does include consumption
tax.
Note 2. The amount of asset management fees is determined based on the conditions specified in the certificate of incorporation of CRE REIT.
Note 3: The amount of asset management fees includes 103,945 thousand yen, the performance fees for property acquired, added to the book valueof individual investment properties.

Fiscal period ended December 31, 2021
Attributes

Companyor other
names

Address

Capital orinvestment(million yen)

Business or occupation

Directors
and their
relatives

TsuyoshiIto––

Executive Director of CRE
REIT and President of theAsset Manager

Amount ofPercentage of Relationships
Description of transaction
voting rights with relatedtransaction(thousand(owned)partiesyen)
Payment of
Asset
asset
–
management
418,921
management
contractor
fees

Item

Balance at
end of period(thousandyen)

Accruedexpenses

Note 1: The above transaction amounts do not include consumption tax, while the balance at the end of the fiscal period does include consumption
tax.
Note 2. The amount of asset management fees is determined based on the conditions specified in the certificate of incorporation of CRE REIT.
Note 3: The amount of asset management fees includes 111,850 thousand yen, the performance fees for property acquired, added to the book valueof individual investment properties.

[Notes to asset retirement obligations]Not applicable in the previous fiscal period (from January 1 to June 30, 2021) and the current fiscal period (from July 1 to
December 31, 2021)[Notes to segment information]
Segment information
CRE REIT has only one segment, the real estate leasing business, and the section of segment information is therefore omitted.
Related information
Fiscal period ended June 30, 2021
1. Information about products and services
The statement is omitted because operating revenue from external customers in a single product and service category
accounts for more than 90% of operating revenue on the statement of income.
2. Information by geographical area
(1) Operating revenues
The statement is omitted because operating revenue from external customers in Japan accounts for more than 90% of

26

228,371operating revenue in the statement of income.
(2) Property, plant and equipment
The statement is omitted because the amount of property, plant and equipment located in Japan accounts for more than
90% of the amount of property, plant and equipment in the balance sheet.
3. Information about major customers
Counterparty
Nippon Express Co., Ltd.
CRE, Inc.

(Thousands of yen)
Related segments
Real estate leasing
business
Real estate leasing
business

Operating revenues(Note 1)
(Note 2) 933,247

Note 1: Information about rents and other items is not provided due to the absence of tenant approval for the disclosure.
Note 2: The amount includes rents for a certain period in which a fixed amount of monthly rent is received based on a master lease agreement
irrespective of rental agreements with end tenants.

Fiscal period ended December 31, 2021
1. Information about products and services
The statement is omitted because operating revenue from external customers in a single product and service category
accounts for more than 90% of operating revenue on the statement of income.
2. Information by geographical area
(1) Operating revenues
The statement is omitted because operating revenue from external customers in Japan accounts for more than 90% of
operating revenue in the statement of income.
(2) Property, plant and equipment
The statement is omitted because the amount of property, plant and equipment located in Japan accounts for morethan 90% of the amount of property, plant and equipment in the balance sheet.
3. Information about major customers(Thousands of yen)Counterparty
Nippon Express Co., Ltd.
CRE, Inc.

Operating revenues

Related segments
Real estate leasing
business
Real estate leasing
business(Note 1)
(Note 2) 961,747

Note 1: Information about rents and other items is not provided due to the absence of tenant approval for the disclosure.
Note 2: The amount includes rents for a certain period in which a fixed amount of monthly rent is received based on a master lease agreement
irrespective of rental agreements with end tenants.

[Notes to real state such as rental properties]
CRE REIT holds rental logistics facilities principally in the Tokyo metropolitan area for the purpose of generating rental
revenues. The amounts of items related to these rental properties posted on the balance sheet, changes in the amounts during
the period, and fair value of the properties are presented in the table below.
(Thousands of yen)
Fiscal period ended
June 30, 2021

Fiscal period ended
December 31, 2021

Balance sheet amount
Balance at beginning of period

90,253,043

110,767,914

Increase (decrease) during theperiod20,514,870

21,910,756

Balance at end of period

110,767,914

132,678,671

122,040,000

148,560,000

Fair value at the end of period

Note 1: The amounts in the balance sheet represent the results of deducting the accumulated depreciation from the acquisition costs.
Note 2: Of the changes in the amounts in the previous fiscal period, a major increase was attributable to the acquisition of three properties(LogiSquare Sayama Hidaka, LogiSquare Kawagoe II, and LogiSquare Kobe Nishi, totaling 21,058,502 thousand yen), and a major
decrease was due to depreciation (562,535 thousand yen). Of the changes in amounts in the current fiscal period, a major increase wascaused by the acquisition of a property (LogiSquare Osaka Katano 22,521,050 thousand yen), and a major decrease was due to depreciation(615,773 thousand yen).

27

Note 3: Fair value at the end of the period was based on the appraisal value or investigation value estimated by external real-property appraisers.

Profit and loss on operations of rental properties are stated in the earlier section, “Notes to the statement of income.”[Notes to revenue recognition]
Breakdown information on revenue from contracts with customers(Thousands of yen)
Fiscal period ended
December 31, 2021
Revenue arising from contracts with customers
Utilities income

49,233

Other revenues (Note)
Rent revenue

3,419,931

Common-area charge income

108,583

Other

17,848

Sales to external customers
Note:3,595,597“Other revenues” are rental revenues, etc. which are subject to Accounting Standard for Lease Transactions (ASBJ Statement No. 13), andare not applied the Revenue Recognition Accounting Standard.

[Notes to per-unit information](Yen)
Fiscal period ended June 30, 2021

Fiscal period ended December 31, 2021

Net assets per unit

124,138

Net assets per unit

133,406

Net income per unit

3,092

Net income per unit

3,343

Note 1: Net income per unit is calculated by dividing net income by the average number of investment units weighted by the number of days during
the period.
Diluted net income per unit is not stated due to the absence of diluted investment units.
Note 2: The basis of calculating net income per unit is presented below.
Fiscal period ended
June 30, 2021

Net income (thousand yen)Amount not attributable to common
unitholders (thousand yen)
Net income related to common investment
units (thousand yen)
Average number of investment units during
period (units)[Notes to significant subsequent events]
Not applicable.

28

Fiscal period ended
December 31, 2021

1,521,645

1,798,997－－

1,521,645

1,798,997

492,083

538,038(7) Supplementary schedules
1. Schedule of securities(1) Stocks(Thousands of yen)
Name
Kukishobu Industrial Park
Management Center
Total

Acquisition price

Fair value

Number ofsharesUnit priceAmountUnit priceAmountValuation
profit/loss

Remarks

10,5001

10,5001

10,500-(Note)

10,5001

10,5001

10,500--Note: The fair value of the unlisted shares is stated at acquisition cost(2) Securities other than stocks
Not applicable.
2. Schedule of contract amounts and fair value of derivative transactions and forward exchange transactions(Thousands of yen)Classification

OTC transactions

Contract amount (Note 1)

Type

Fair value(Note 2)

Due after a year

Interest-rate swap transactions
floating rate receivable, fixed rate
payableTotal

57,869,000

51,789,000-

57,869,000

51,789,000-

Note 1: Contract amounts of interest-rate swaps are presented based on notional amounts.
Note 2: Fair value statement is omitted for those transactions that meet the criteria for special accounting treatment for interest-rate swaps inaccordance with the Accounting Standard for Financial Instruments.

3. Schedule of property, plant and equipment(Thousands of yen)

Types of assets

Accumulated depreciation
Balance at theBalance at the or accumulated Depreciation
Increase during Decrease during
beginning of theend of theamortizationon
the period
the period
periodperiodfor theNet balanceat the end of
the period

Remarks

periodBuildings in trust

58,837,546

8,782,668-

67,620,215

3,352,910

592,786

64,267,304

Structures in trust

2,922,640

240,561-

3,163,201

129,400

22,7003,033,800

3,322

-

-

3,322

740

286

2,582

Land in trust

51,871,682

13,503,300-

65,374,983--

65,374,983

Total

113,635,191

22,526,530-

136,161,722

3,483,051

615,773

132,678,671

Tools, furniture and fixturesin trust

Note: The main reasons for the increase in buildings in trust, structures in trust, and land in trust were the acquisition of LogiSquare Osaka Katano.

4. Schedule of other specified assets
The beneficial interests in real estate trusts are included in "3. Schedules of property, plant and equipment" above.

29(Note)

5. Schedule of investment corporation bonds(Thousands of yen)Issue
CRE Logistics REIT, Inc.
1st unsecured investment
corporation bond with
supplementary pari passu
clause(Green bond)
CRE Logistics REIT, Inc.
2nd unsecured investment
corporation bond with
supplementary pari passu
clause(Green bond)Issue Date

Balance at the
beginning of
the period

September
8, 2020

2,000,000-

2,000,000

0.530%

September
8, 2025

Repaymentof existing
borrowings

Unsecured/
unguarante
ed

November26, 2021--

2,000,000

0.720%

November26, 2031

Repaymentof existing
borrowings

Unsecured/
unguarante
ed2,000,000-

4,000,000

-

-

-

-

Total

-

Decreaseduring theperiodBalance atthe end of
the period

Interest
rate

Maturitydate

Use

Collateral

Note: The following is the maturity schedule for each year within five years after the balance sheet date.

(Thousands of yen)
Due within 1 year

Due after 1 year
Due after 2 year
Due after 3 year
Due after 4 year
and within 2 years and within 3 years and within 4 years and within 5 years

Investment corporation bonds

-

-

-

2,000,000

-

Total

-

-

-

2,000,000-

6. Schedule of borrowings(Thousands of yen)Classific
ation

Lenders

Balance at theBalance at the Average Repayment
Increase during Decrease during
beginning of theend of the interest rate
the period
the period
periodperiod(Note 2) due date

Sumitomo Mitsui Banking
Corporation

830,000--

830,000

MUFG Bank, Ltd.

650,000--

650,000

Mizuho Bank, Ltd.

650,000--

650,000

Development Bank of Japan Inc.

650,000--

650,000

Resona Bank, Limited

550,000--

550,000

The Nishi-Nippon City Bank, Ltd.

350,000--

350,000

Sumitomo Mitsui Banking
Corporation

830,000--

830,000

MUFG Bank, Ltd.
Longterm Mizuho Bank, Ltd.
borrowings
Development Bank of Japan Inc.
(Note 1)
Resona Bank, Limited

650,000--

650,000

650,000--

650,000

650,000--

650,000

550,000--

550,000

The Nishi-Nippon City Bank, Ltd.

350,000--

350,000

Sumitomo Mitsui Banking
Corporation

830,000--

830,000

MUFG Bank, Ltd.

650,000--

650,000

Mizuho Bank, Ltd.

650,000--

650,000

Development Bank of Japan Inc.

650,000--

650,000

Resona Bank, Limited

550,000--

550,000

The Nishi-Nippon City Bank, Ltd.

350,000--

350,000

30

Use

Remarks

0.536% January 31,(Note 3)2022

Unsecured/
0.635% January 31,(Note 4) unguarante(Note 3)2023
ed

0.731% January 31,(Note 3)2024

Classification

Lenders

Balance at theBalance at the Average Repayment
Increase during Decrease during
beginning of theend of the interest rate
the period
the period
periodperiod(Note 2) due date

Sumitomo Mitsui Banking
Corporation

750,000--

750,000

Mizuho Bank, Ltd.

600,000--

600,000

Development Bank of Japan Inc.

450,000--

450,000

Resona Bank, Limited

400,000--

400,000

The Nishi-Nippon City Bank, Ltd.

200,000--

200,000

Sumitomo Mitsui Banking
Corporation

527,000--

527,000

Mizuho Bank, Ltd.

527,000--

527,000

Development Bank of Japan Inc.

527,000--

527,000

Resona Bank, Limited

265,000--

265,000

The Nishi-Nippon City Bank, Ltd.

527,000--

527,000

Sumitomo Mitsui Trust Bank, Ltd.

527,000--

527,000

Sumitomo Mitsui Banking
Corporation

936,000-

936,000-

Mizuho Bank, Ltd.

785,000-

785,000-

MUFG Bank, Ltd.

785,000-

785,000-

Development Bank of Japan Inc.

250,000-

250,000-

Resona Bank, Limited

499,000-

499,000-

The Nishi-Nippon City Bank, Ltd.

319,000-

319,000-

Sumitomo Mitsui Banking
Corporation

927,000--

927,000

680,000--

680,000

310,000--

310,000

Development Bank of Japan Inc.

325,000--

325,000

Resona Bank, Limited

420,000--

420,000

The Nishi-Nippon City Bank, Ltd.

Longterm
borrowi Mizuho Bank, Ltd.
ngs
(Note 1) MUFG Bank, Ltd.

443,000--

443,000

Sumitomo Mitsui Banking
Corporation

1,100,000--

1,100,000

Mizuho Bank, Ltd.

1,100,000--

1,100,000

Development Bank of Japan Inc.

850,000--

850,000

Sumitomo Mitsui Trust Bank, Ltd.

800,000--

800,000

The Nishi-Nippon City Bank, Ltd.

700,000--

700,000

The Bank of Fukuoka, Ltd.

650,000--

650,000

Resona Bank, Limited

400,000--

400,000

Sumitomo Mitsui Banking
Corporation

800,000--

800,000

Mizuho Bank, Ltd.

700,000--

700,000

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

Development Bank of Japan Inc.

450,000--

450,000

The Bank of Fukuoka, Ltd.

350,000--

350,000

Sumitomo Mitsui Trust Bank, Ltd.

300,000--

300,000

Resona Bank, Limited

300,000--

300,00031

0.569%(Note 3)

July 29,2022

0.402%(Note 3)

July 31,2023

0.308%(Note 3)

July 30,
2021

Use

Remarks

Unsecured/(Note 4) unguarante
ed0.462%(Note 3)

July 31,2024

0.570% January 31,(Note 3)2025

0.639% January 30,(Note 3)2026

Classification

Lenders

Balance at theBalance at the Average Repayment
Increase during Decrease during
beginning of theend of the interest rate
the period
the period
periodperiod(Note 2) due date

Sumitomo Mitsui Banking
Corporation

1,500,000--

1,500,000

Mizuho Bank, Ltd.

1,400,000--

1,400,000

Development Bank of Japan Inc.

1,200,000--

1,200,000

Sumitomo Mitsui Trust Bank, Ltd.

800,000--

800,000

Resona Bank, Limited

500,000--

500,000

Shinsei Bank, Limited

500,000--

500,000

The Hyakujushi Bank, Ltd.

500,000--

500,000

The Nishi-Nippon City Bank, Ltd.

400,000--

400,000

The Bank of Fukuoka, Ltd.

300,000--

300,000

Sumitomo Mitsui Banking
Corporation

1,000,000--

1,000,000

Mizuho Bank, Ltd.

850,000--

850,000

Resona Bank, Limited

500,000--

500,000

The Nishi-Nippon City Bank, Ltd.

200,000--

200,000

Sumitomo Mitsui Banking
Corporation

900,000--

900,000

Mizuho Bank, Ltd.

800,000--

800,000

Development Bank of Japan Inc.

600,000--

600,000

MUFG Bank, Ltd.
Longterm Sumitomo Mitsui Trust Bank, Ltd.
borrowi
Shinsei Bank, Limited
ngs(Note 1)
Aozora Bank, Ltd

700,000--

700,000

400,000--

400,000

400,000--

400,000

400,000--

400,000

The Bank of Toyama, Ltd

300,000--

300,000

Sumitomo Mitsui Banking
Corporation

900,000--

900,000

Mizuho Bank, Ltd.

700,000--

700,000

Development Bank of Japan Inc.

500,000--

500,000

Sumitomo Mitsui Trust Bank, Ltd.

400,000--

400,000

Shinsei Bank Co., Ltd.,

400,000--

400,000

Aozora Bank, Ltd

600,000--

600,000

Sumitomo Mitsui Banking
Corporation

500,000-

500,000-

Mizuho Bank, Ltd.

500,000-

500,000-

Sumitomo Mitsui Banking
Corporation-

936,000-

936,000

Mizuho Bank, Ltd.

-785,000-

785,000

MUFG Bank, Ltd.

-785,000-

785,000

JAPAN POST BANK Co., Ltd.

-

700,000-

700,000

Resona Bank, Limited-

499,000-

499,000

The Nishi-Nippon City Bank, Ltd.

-

319,000-

319,000

Development Bank of Japan Inc.

-

250,000-

250,00032

0.608%(Note 3)Use

Remarks

July 31,2026

0.649% January 29,(Note 3)2027

0.471%(Note 3)

July 31,2025

0.587%(Note 3)

July 30,2027

0.385%

January 31,
2022(Note 5)0.595% January 31,
2028(Note 3)

Unsecured/(Note 4) unguaranteedClassification

Balance at the
Increase during
beginning of
the period
the period

Lenders

Average Repayment
Balance at theinterest rate
end of the(Note 2) due dateperiodDecreaseduring theperiodUse

Sumitomo Mitsui Banking
Corporation-

600,000-

600,000

Mizuho Bank, Ltd.

-

500,000-

500,000

The Shizuoka Bank, Ltd.

-

450,000-

450,000

Development Bank of Japan Inc.

-

350,000-

350,000

MUFG Bank, Ltd.

-

350,000-

350,000

The Bank of Fukuoka, Ltd.

-

250,000-

250,000

The Hyakujushi Bank, Ltd.

-

250,000-

250,000

The Yamaguchi Bank, Ltd.

-

250,000-

250,000

Sumitomo Mitsui Trust Bank, Ltd.

-

200,000-

200,000

Shinsei Bank Co., Ltd.,-

200,000-

200,000

Aozora Bank, Ltd-

200,000-

200,000

The Bank of Toyama, Ltd
Longterm The Yamanashi Chuo Bank, Ltd.
borrowi Sumitomo Mitsui Banking
ngs
Corporation(Note 1)
Mizuho Bank, Ltd.

-

200,000-

200,000-

200,000-

200,000-

650,000-

650,000-

550,000-

550,000

Development Bank of Japan Inc.

-

500,000-

500,000

Shinsei Bank Co., Ltd.,-

400,000-

400,000

Aozora Bank, Ltd-

400,000-

400,000

The Yamaguchi Bank, Ltd.

-

300,000-

300,000

Sumitomo Mitsui Trust Bank, Ltd.

-

250,000-

250,000

The Yamanashi Chuo Bank, Ltd.

-

250,000-

250,000

The Hyakujushi Bank, Ltd.

-

200,000-

200,000

Mizuho Bank, Ltd.

-

1,000,000

1,000,000－

0.377%

Sumitomo Mitsui Banking
Corporation-

1,000,000

1,000,000－

0.377%

50,669,000

13,774,000

6,574,000

57,869,000

-

-

-

50,669,000

13,774,000

6,574,000

57,869,000

-

-

-

Subtotal
Total

0.546%(Note 3)

Remarks

March
31,2027

Unsecured/(Note 4) unguarante
ed0.576%(Note 3)September
30,2027

September
30,2022(Note6)
September
30,2022(Note 7)-Note 1: Current portion of long-term borrowings are included in long-term borrowings.
Note 2: Average interest rate is the weighted average of the number of days and outstanding borrowings during the period, rounded to the fourth
decimal place.
Note 3: Average interest rates on borrowings with interest-rate swaps used to hedge interest rate risk are stated taking into account the effects ofinterest-rate swaps.
Note 4: Long-term borrowings are appropriated to acquire the beneficial interests in real estate trust and to refinance.
Note 5: CRE REIT made a prepayment of the entire amount of 1,000 million yen on July 30, 2021.
Note 6: CRE REIT made a prepayment of the entire amount of 1,000 million yen on November 30, 2021.
Note 7: CRE REIT made a prepayment of the entire amount of 1,000 million yen on November 30, 2021.
Note 8: With respect to the above borrowings, the "Loan Agreement" between CRE REIT and each individual financial institution contains a rider thatthe borrowings from all financial institutions rank pari passu with each other.
Note 9: The following is the maturity schedule for each year within five years after the balance sheet date.

Long-term borrowings

Due within 1 year

Due after 1 year
and within 2 years

Due after 2 year
and within 3 years

Due after 3 year
and within 4 years(Thousands of yen)
Due after 4 year
and within 5 years

6,080,000

6,580,000

6,785,000

10,100,000

10,500,000

33