Securities Code 3487

Supplementary material for 5th public offering and new acquisition

LogiSquare Osaka Katano(1)Located in a suitable logistics area in inland Osaka, near the boarder between Osaka and Kyoto Prefectures. Located approximately 0.8
km from the Katano Minami IC on the Daini-Keihan Road with excellent access to major roads. Located in an industrial area and can be
operated 24Copyrighthours a day.
(C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

September 2, 2021
CRE REIT Advisers, Inc.

Disclaimer
This material is for informational purpose only, and is not intended to solicit, or recommend the purchase or sale of specific securities, financial instruments, ortransactions.
This material is not a disclosure material based on the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, or thelisting rules of the Tokyo Stock Exchange.
This material contains information on CRE Logistics REIT, Inc. (hereinafter referred to as the "CRE REIT"), as well as tables and data prepared by CRE REIT
Advisers, Inc. (hereinafter referred to as the "Asset Manager") based on data and indicators published by third parties. It also includes statements regarding the AssetManager's current analysis, judgement, and other views on these matters.
Given that the content of this material is unaudited, there are no guarantees provided with respect to its accuracy, completeness, fairness or reliability. In addition,
anything other than the analysis and judgment of the Asset Manager and any other past or current facts indicates assumptions or judgments based on the information
obtained by the Asset Manager at the time of preparation of this material, and descriptions of these future projections include known and unknown risks anduncertainties. As a result, the actual performance, operating results, and financial position of CRE REIT may differ from those forecasted by CRE REIT and the AssetManager.
Figures may not correspond to those of other disclosed information due to differences in rounding.
All efforts have been made to ensure that the information included in this material is accurate, but errors may have occurred and may be corrected or modified withouta prior notice.
CRE REIT and the Asset Manager are not in any way liable for the accuracy or completeness of any data or indicators used in this material based on disclosed fromthird parties.
This material includes statements regarding future policies of CRE REIT, but provide no guarantees of the future policies.
For convenience of preparation of charts and data by the Asset Manager, dates indicated in this material may not be business days.
The information contained herein may not be reproduced or presented in whole or in part to any other person in any manner, without the prior consent of CRE REIT
and the Asset Manager.

Notes on each page are provided on the relevant page or in the notes section at the end of this document, unless otherwise indicated.

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

1

Offering highlights
１．

・・・ p.5

Continuous improvement of unitholder value•

This public offering qualifies as "green" financing that takes into consideration the environmental impact, with prospectusesdelivered only electronically•

Increased unit price and market capitalization through the past four offerings and accompanying external growth and various
measures, thereby improving liquidity of the investment units and expanding its investor base•Since its listing in February 2018, CRE REIT steadily increases DPU and NAV per unit through the five public offerings

２．

Enhancement of the quality of portfolio through the investments in LogiSquare・・・ p.11•

CRE REIT acquires quality properties that have been developed by CRE and are conveniently close to locations frequented byconsumers•

Enhance portfolio diversification, including with respect to location, through acquisition of an asset in the Kansai area

３．

Clear growth strategy to continuously improve unitholder value

・・・ p.17•

We seek continuous distributions growth by leveraging our rich pipeline while considering acquisitions with cash on hand•

Leases expiring by June 30, 2022 were renewed smoothly•

New lenders, green loans and green bonds diversifies our funding options•

R&I upgraded our rating outlook to A- (positive), and JCR newly assigned us A (stable)•

Diversification of repayment periods and longer-term loans promotes stable financial management•

We have made progress in our ESG efforts. At the general meeting of unitholders in September 2021, the asset management fee
structure will be changed to the more consistent one with the interests of the unitholders

４．

Appendix

・・・ p.28

Please refer to notes on the front cover and page 6 onwards for the definitions of the terms appearing on this page

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

3

Summary of the Fifth Public Offering and the Acquisition of the Property
Acquisition of LogiSquare Osaka Katano, which is new andin a good location

Promote reduction of LTV, borrowing from new lenders andlong-term debt

Anticipated acquisition price

22,370 million yen
LTV

0.5 years

O-4 LogiSquare Osaka Katano

Mileage to an interchange
approx.

Liabilities

Property age

Average remaining term ofinterest-bearing debt

Number of tenants

0.8 ｋｍ5

Number of lenders

Appraisal NOI yield

Implied cap rate (1)(2)

4.4 ％

3.4 ％

Increase in borrowings

Assets

Improve quality of portfolio through investment in LogiSquare
The End of
the 10th FP

Before the AnticipatedBorrowings

After the AnticipatedBorrowings

Forecast for June 30, 2022

Forecast for June 30, 2022

As of September 15, 2021
(anticipated)

As of September 15, 2021
(anticipated)

13

1644.8 %

3.6 years

Realize external growth that contributes to improvement in
distributions per unit and NAV per unit

19 properties

20 properties(Anticipated) acquisition price

112,316 million yen

134,686 million yen

Average appraisal NOI yield

4.8 %

4.7 %

23

28

4.4 years

3.8 years

Number of new investment
units issued

64,550 units

Occupancy rate

100.0 %

100.0 %

Total issue value (estimate)

13,232 million yen

Ratio of properties developed
by CRE

100.0 %

100.0 %

Form of offering

Average property age

Net assets

After acquisition of
anticipated asset

Number of tenants

3.7 years

10,400 million yen(Ended June 30, 2021)

Number of properties

44.3 %

Distributions per unit
(including surplus distribution)

The End of the 10thFP (Ended June 30, 2021)

After the Fifth PO

Forecast on stabilized
level after the Fourth PO

Forecast on stabilized
level after the Fifth PO

3,374 yen

3,547 yen （+ 5.1%）

143,278 yen

150,739 yen （+ 5.2%）

After the Fifth PO
NAV per unit

(12.9% of total issued and outstanding investment units)Reg. S only
(The transaction will be documented by a Japanese language
prospectus. English one will not be prepared.)

1. Please refer to notes on the front cover and page 6 onwards for the definitions of the terms and the calculation for the figure on this page

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

4

1. Continuous improvement of unitholder value

LogiSquare Osaka Katano
A four-story seismic control structure with double rampways and central vehicle flow line on the first to third floors. In order to enhance safety, the vehicle flow line is designed for one-way. And there are
two rampways,
one for (C)goingup andonefor goingREIT,
down. Inc. All Rights Reserved.
Copyright
2021
CRE
Logistics

51. Continuous improvement of unitholder value

Environmentally friendly public offering through green finance, etc.
Green finance for both equity and debt (1)Anticipated asset

Allocate all new investment units to domestic andoverseas institutional investors

Debt

Ratio of ownership of investment units at the end of the 10th fiscal period(ended June 30, 2021)

Green Loan (3)Green qualifying assets (5)LogiSquare Osaka Katano

New Investment Units

Obtained "Green1(F)“(12)rating from JCR for Green
Finance Framework(9)Overseas
investors
16.8%• CASBEE (7) Osaka Pref.
A rankDomestic financial institutions
61.6%

Others21.6%

Investment Unit

Green Equity Offering(2)• BELS (8)★★★★★

• In-house consumption of solar
power• LED lighting• Sandwich Panels

Obtained second party
opinion(16)(17) from DNV(15)for Green Equity Framework(13)Aim to expand the institutional
investor base

Deliver all prospectuses electronically(19) in
consideration of the environment

Deliver all prospectuses electronically andPercentage of green qualifying assets after acquisition of
anticipated asset(18)Green qualifying assets
95.3%

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

reduce the use of paper and ink etc. in order tominimize the impact on the global environment
Other
4.7%

6

1. Continuous improvement of unitholder value

Investment Unit Price Has Increased through the Past Four Offerings andAccompanying External Growth and Other Measures
Trend in investment unit price (closing price) (as of August 20, 2021)
January 4, 2021
Announcement of the 4th PO (1)June 29, 2020
Announcement of the 3rd PO (1)220,000

8.0%

January 7, 2020
Announcement of the 2nd PO (1)200,000
7.0%

February 7, 2018
Listing

180,000

June 27, 2019
Announcement of the 1st PO (1)6.0%
160,000

5.0%

140,000

120,000

4.0%

100,000
3.0%
July 17, 2019
The presidents of the sponsor and the Asset Manager
acquired investment units.

August 2018
Introduced a cumulative investment unit
investment system.

80,000

Number ofunits acquired

Title and nameTadahide Kameyama, President of CRE

60,000Tsuyoshi Ito, President of Asset Manager

40,0002018(Yen) 2/7

5/9

8/2

10/30

NAV per unit (6)

2019
1/31

5/7

March 31, 2020
Newly acquired Arating from R&I (5).

1,000 units

7/31

September 18, 2020
Incorporated into the
FTSE Global Equity
Index Series (3).

April 21, 2021
R&I changed rating
outlook from A- (stable)
to A- (positive) (5).
2.0%

500 units

Tokyo Stock Exchange REIT Index (7)Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

May 29, 2020
Incorporated into
the MSCI Global
Small Cap Index (2).

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

10/30

2020
1/30

4/28

September 8, 2020
Issued a green bond.

7/29

Investment unit price of CRE REIT

February-April, 2021
Three securities
companies started
analyst coverage (4).

10/27

2021
1/26

August 3, 2021
Newly acquiredA(stable) ratingfrom JCR (5).
1.0%

4/22

7/21

Distribution yield (8) (right axis)

71. Continuous improvement of unitholder value

Investor Base Expanded due to Increase in Market Capitalization and Improvementin Liquidity of Investment Units

百万

Market capitalization increases and investment unit liquidity improved
6,000

120,000
Trading turnover (left axis)

5,000

100,000

Market capitalization (right axis)

4,000

80,000

3,000
2,000

60,000122,370

40,000

million yen

108,382million yen
1,000

20,0000

2018(Million yen) 2/7

5/2

7/25

10/17

2019
1/9

4/3

6/26

9/18

12/11

2020
3/4

5/27

8/19

11/13

2021
2/12

0

5/14

8/11 (Million yen)

Aiming to be included in FTSE EPRA Nareit Global Real Estate Index Series (2) in December 2021
Market capitalization standard
relaxed from the regular review
in September 2021
（Released on June 24, 2021）• Although CRE REIT meets the market capitalization standard, an English annual report withaudited financial statements, which is a requirement for inclusion, has not been prepared.
• As our English annual report with audited financial statements for the 10th fiscal period (ended
June 30, 2021) is expected to be prepared by mid-October 2021, CRE REIT will be reviewed forinclusion in December 2021.

Increase in the number and ratio of domestic financial institutions and overseas investors
The end of 5th FP

The end of 10th FP（2021/6）

Difference

No. of investors

34

74

+40

Ratio

41.6 ％

61.6 ％+20.0 %

No. of investors

55

152

+97

Ratio

6.0 ％

16.8 ％+10.7 %

（2018/12）

Domestic financial
institutions
Overseas investors

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

Further expansion of the investor baseMarket capitalization
as of August 20

Estimated market
capitalization after
the 5th PO (1)81. Continuous improvement of unitholder value

Since Listing in February 2018, Steady Growth through Five Public Offerings
Distributions per unit （DPU(1)）

NAV per unit

Annual rate ＋6.1%(2)4,000

3,392 3,398

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

3,504
3,504

3,529

Annual rate ＋8.1%(7)170,000

150,7393,375

143,278
137,499

140,000

2,585

114,936 117,317 118,187
2,000

129,286

110,000

1,000

4th FP(Yen)

5th FP

Result

6th FP

7th FP

8th FP

Forecast dated August 13, 2021 (3)9th FP

10th FP

11th FP
Forecast

80,00012th FP
Forecast(Yen)

4th FP(5)

5th FP(5)

6th FP(5)

7th FP(5)

8th FP(5)

9th FP(5)

Asset size(9)2.8Annual rate ＋34.5%(10)

49.3%

134.6

150

47.7% 47.9% 47.7%

112.3

48%

91.5

100

45.9%
46%

73.6
45.0% 44.8%

44.6% 44.8%

ResultForecast dated August 13, 2021

44.3%

Forecast dated September 2, 2021
42%

4th FP

5th FP

6th FP

7th FP

After 5th PO
(6)

X

-5.1%

44%

10th FP(5)

Forecast dated September 2, 2021 (4)ＬＴＶ(8)

50%

122,212

8th FP

9th FP

10th FP

47.7

47.7

4th FP

5th FP

6th FP

54.1

44.3%

11th FP
Forecast

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

-0.5％

47.7
50

12th FP
Forecast

0(Billion yen)

7th FP

8th FP

9th FP

10th FP

After 5th PO

91. Continuous improvement of unitholder value

Realize External Growth that Contributes to Increases in Distributions per Unit
Increase stabilized DPU by an average annual growth rate of 7.8% through public offering forfive consecutive periods.
Stabilized DPU+20.6％ Annual rate +7.8％

4,000

3,547
3,374

3,500

3,258

3,160
3,000

3,029

2,940
372

326
323

+3.0%

342

+3.6%

338

+5.1%

+3.1%

+4.3%

365

2,500

2,000

2,568

2,837

2,664

3,205

3,036

2,932

Stabilized EPU(1)+24.8％ Annual rate +9.3％

1,500
第７期

(Yen)

At initial

第８期

At stabilized
the 1st PO

At stabilized
level after
the 2nd PO

At stabilized
level after
the 3rd PO

At stabilized
level after
the 4th PO

the 8th FP(ended June 30, 2020)
Forecast at the1st PO(3)Forecast at the 2nd PO
based on the 9th FP(ended December 31, 2020) (4)Forecast at the 3rd PO
based on the 10th FP(ended June 30, 2021) (5)Forecast at the 4th PO
based on the 11th FP(ending December 31, 2021) (6)（2019年12月期）
stabilized（2020年6月期）
level afterlevel
the 7th FP(ended December 31, 2019)
Initial Forecast(2)Earnings per unit (EPU)

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

At stabilized
level after
the 5th PO
Forecast at the 5th PO
based on the 12th FP(ending June 30, 2022) (7)Surplus distribution per unit10

2. Enhancement of the quality of our portfolio throughthe investments in LogiSquare

LogiSquare Osaka Katano
The specifications which allow for a certain level of response to future needs such as the addition of vertical conveyors, cargo elevators, office space, and air conditioning units in the warehouse throughthe first to fourth
floors (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.
Copyright

11

2. Enhancement of the quality of our portfolio through the investments in LogiSquare

Anticipated asset
O-4 LogiSquare Osaka Katano

Access
Structure
Total floor area (2)Total leasable area
Anticipated acquisition priceAppraisal value
Appraisal NOI yield(2)Appraisal NOI yield after
depreciation(3)Completion date
Occupancy rate(2)4-27-1, Hoshidakita, Katano-shi,
Osaka (residence indication)
Approximately 0.8 km from Katano
Minami IC (Daini-Keihan Road)S, 4F, alloy plated steel sheet roof

76,393.17 ㎡
71,018.95 ㎡
22,370 million yen
22,600 million yen
4.4 ％
3.7 ％
January 2021
100.0 ％

Multi

Property Features

Location

Ramp way
Type

KansaiArea(1)

Daini-KeihanRoadIn-house
consumptionof solar power

CASBEE
Osaka pref.
A ranking

BELS
★★★★★

•

The property is located in the western part of Katano-shi, Osaka, an inland Osaka area near theboarder between Osaka and Kyoto Prefectures in a suitable logistics area. The location
approximately 0.8 km from Katano-minami IC (the Daini-Keihan Road) and approximately 2 km
from Neyagawa-kita IC (the Daini-Keihan Road) enables access to main roads easily and makes
it possible to cover not only downtown Osaka but also the wide area of Kansai through Kinki
Expressway, Chugoku Expressway, and Hanshin Expressway.

•

The new highway lanes of Shin-Meishin Expressway between Takatsuki JCT and
Yawatakyotanabe JCT is scheduled to open in 2024, which is expected to make the area evenmore convenient.

•

It is located within walking distance from several railroad stations, approximately 1 km (about a
13-minute walk) from Hoshida Station, one of the rapid train stops of JR Gakkentoshi Line, andapproximately 1.5 km from Kawachimori Station of the Keihan Katano Line. By using buses, it is
a 2-minute walk from Hoshida-kita 5-chome bus stop and thus well-located for securing labor.

•

The specifications allow a certain level of response to future needs such as the addition ofvertical conveyors, cargo elevators, office space, and air conditioning units in the warehousethrough the first to fourth floors. The pillar span of 12 m allows docking of three large trucks inone span simultaneously.
Vacancy rate

Rent market price• The vacancy rate in the Kansai area hasremained at a low level since 2019

• In the moderately tight supply-demand environment,
the rent trend is stable in both coastal and inland
areas in Kansai three prefectures(4)Vacancy rate in Kansai area

Rent market price in Kansai three prefectures

1,000

20%

500

10%

5,000

4,000

3,000

0

0%

Rented area

Vacant area

Vacancy rate (right axis)

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

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

2,000（Yen/Tsubo）

202104202101202010202007202004202001
201910201907
201904
201901
201810201807
201804
201801
201710201707
201704
201701
201610201607202106202103202012202009202006202003
201912
201909201906201903201812
201809201806201803201712
201709201706201703
201612
201609201606(Ten
thousandm2)

Source: Prepared by the Asset Manager based on “Industrial
Market Research April 2021” of K.K. Ichigo Real Estate
Service.

122. Enhancement of the quality of our portfolio through the investments in LogiSquare

Anticipated asset O-4 LogiSquare Osaka Katano
A convenient property located in the vicinity of an IC withexcellent access to public transportation
Katano MinamiICIn-house consumption through solar power
The roof is leased to a solar power generation business operator and thelessee has installed solar panels with a power output of 1,597.50 KW.
Some of the power used in the property is renewable energy generated
through these solar panels
The vehicle traffic isone-way
In order to enhance safety,
the vehicle traffic is oneway. There are two
rampways, one for goingup and one for going down

approx. 0.8km
Hoshidakita 5chome bus stop

2 mins walk

LogiSquare
Osaka Katano

Kawachimori
Sta.

Solar panel
Installed

approx. 1km

Located in anindustrial area
Surrounded mainly byplants and logistics
facilities, the logistics
center can be operated for
24 hours a day

Hoshida Sta.

Dedicated gates forstandard-sized cars
The gates for trucks andstandard-sized cars are
separated

Source: Prepared by the Asset Manager based on “GSI Maps” of Geospatial Information-Authority of Japan.

Two cafeterias and terraces located on east and west sides
Industries of the five tenants(1)(2)

Products handled by the five tenants (1)(2)
Furniture
11.9%

Retail24.7%

Warehouse/transp
ortation-related
11.9%

There are a cafeteria and a terrace with excellent view on the top floor (fourth floor)
on both east and west sides of the facility. They have easy access from anywhere in
the facility

West
Land
transportation
63.3%

Other
12.7%

East

Apparel (EC)
51.0%

Food andbeverage
24.4%

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13

2. Enhancement of the quality of our portfolio through the investments in LogiSquare

Anticipated asset O-4 LogiSquare Osaka Katano
The property is located in inland Osaka covering the two largest areas frequented by consumers, Osaka and Kyoto,
which is suitable logistics areas. Their strength lies in business continuity of tenants.
Areas accessible in 30 minutes and 60 minutes by car (1)••Population of the areas within 30 minutes and 60 minutes by car from the property (1)The areas reachable in 30 minutes by car from the property mainly include the inland
Osaka area, Kyoto in the northeast direction, the center of Osaka (Umeda Station) andother areas in Osaka City in the west direction
The areas reachable in 60 minutes by car from the property include the three largest
Kansai cities, Osaka, Kyoto, and Kobe, which means that the property covers most of
the area frequented by consumers in the Kansai area. In addition to that, the two largest
ports, Osaka Port and Kobe Port, and major logistics bases, Itami Airport and KansaiInternational Airport, are nearly 60 minutes away by car
30 minutes by car
60 minutes by car••

Population of the area within 30 minutes by car from the property is 4.34 million(2015). The population has slightly grown at a rate of 0.5% over the last five
years. The area with a population of over 4 million within 30 minutes by car is
considered to be large for the Kansai area, which proves that the area issufficiently suitable for logistics close to an area frequented by consumers
Population of the area within 60 minutes by car from the property is 14.21 million(2015). The demographic change was flat over the last five years. The area issuitable to logistics with easy access to the two largest areas frequented byconsumers, Osaka and Kyoto

1,421

1,500

1,421

1,200

4.0%

900

3.0%

434

600

432
0.5%

300

2.0%

0.0%

0

LogiSquare
Osaka Katano

5.0%

1.0%
0.0%

30 mitutes（ten thousand
person）

2015

2010

60 mitutes(c) Esri Japan

Rate of population change（5 years）（Right axis）

Source: Prepared by the Asset Manager based on the materials of K.K. Ichigo Real Estate Service.

Location unlikely to be affected by natural disasters(c) Esri Japan

Source: Prepared by the Asset Manager based on the materials of K.K. Ichigo Real Estate Service.

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

Tsunami•Located in inland Osaka, the possible level of the flood due totsunami is not set(2)Liquefaction•

With a low PL value between five and ten, risk of liquefaction islow (3)•The possible level of the flood due to overflow is not set basedon the hazard map of Katano-shi (4)Floods14

2. Enhancement of the quality of our portfolio through the investments in LogiSquare

Achieve Further Portfolio Diversification

Diversification of tenants(1)Tenant industries (1)(3)(4)
Ratio of logistics
industry in end users

Top 5 tenants

37.8%

Products handled by tenants (1)(4)Manufacturing 2.0%
Medical 2.1%

Warehouse/transportation-related
6.0%

72.6%
Home appliances
3.9%
Pharmaceuticals 3.9%

Information andcommunications 2.9%

Other 4.1%

Food andbeverage 20.2%

Retail 3.1%
Packaging material 4.5%
Wholesale 9.0%
Books 4.6%
Entertainment
articles and toys
4.7%

Number oftenants(5)28Real estate (CRE)
16.1%

Land
transportation
58.8%

Daily commodities
12.3%

Furniture 8.5%

Apparel 12.0%

Interior products
9.6%

Machines and parts
11.7%

1. Based on leased area (2) after the anticipated acquisition.
2. “Leased area” refers to the sum of the leased area indicated in the respective lease agreement (in the case of pass-through type master lease agreement has been or is scheduled to be executed, the leased area indicated in the lease agreementwith end tenants) as of July 31,2021.
3. Outer circle shows the industries of end users (end tenants where a pass-through type agreement or a fixed-rent master lease agreement has been or is shceduled to be executed).
4. The classification in each graph is on visual contact or hearing results, and only major items are stated by Asset manager. Therefore, those ratios may differ from actual ratios.
5. Please refer to the note on page 29 for the definition of "number of tenants".

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15

2. Enhancement of the quality of our portfolio through the investments in LogiSquare

Geographic Diversification Progress after Property Acquisition in the Kansai area
Locations of current assets, anticipated asset and pipeline assets(1)Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

16

3. Clear growth strategy to continuously improve the unitholder value

LogiSquare Osaka Katano
Good location to secure employment, within walking distance of Hoshida Station, a rapid train stop on the JR Gakkentoshi Line, which is about 1 km away (about a 13-minute walk), and a 2-minute walkfrom the Hoshidakita
busCRE
stop Logistics REIT, Inc. All Rights Reserved.
Copyright5-chome(C) 202117

3. Clear growth strategy to continuously improve the unitholder value

Rich Pipeline Enabling Future External Growth
Aiming for continuous growth in distributions with a view to acquiring properties using free cash
Pipeline(1)Approach to the use of free cash

11 properties / Total floor area 451,407㎡

Under development

Under development

Ａ
Ｃ

Ｂ

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

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

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

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

Under development

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

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

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

Under development

1. Appropriation of somefunds to acquisition
properties at the time of
capital increase
2. Acquisition of properties(quasi co-ownershipinterests, etc.) with free
cash as source
3. Repayment of borrowings

LogiSquare Atsugi II(1) Around summer 2024
(2) 18,000～20,000㎡(3) Atsugi-shi, Kanagawa

Conduct ongoing cash
surplus distribution
equivalent to 30% ofdepreciation.

LogiSquare Fujimino A,B,C(1) A:August 2023, B:August 2024, C:March 2024
(2) A:114,256㎡, B:115,040㎡, C:43,893㎡(3) Fujimino-shi, Saitama(1)Completion date (planned) (2)Total floor area (planned) (3)Location

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

Depreciation

Under development(2)

Properties with exclusive negotiation right

1. As of September 2, 2021, CRE REIT has not engaged in specific negotiations with the CRE Group companies regarding the pipeline nor does it have any plan to acquire from the pipeline at the present time or guarantee any future acquisition from the pipeline.
Also, as of August 20, 2021, the developments of LogiSquare Shiroi, LogiSquare Hirakata, LogiSquare Atsugi I , LogiSquare Matsudo, LogiSquare Fukuoka Ogori, LogiSquare Atsugi II and LogiSquare Fujimino A,B,C, have not been completed. The picture of them,completion month and year, and total floor area is based on the plans as of August 20, 2021 and may differ from actual condition.
2. The total floor area of ​the pipeline is based on the lower anticipated total floor area for LogiSquare Fukuoka Ogori and LogiSquare Atsugi II, and the quasi-co-ownership ratio (20%) for LogiSquare Sayama Hidaka (20%) .

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

18

3. Clear growth strategy to continuously improve the unitholder value

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

• Achieve flexible external growth, with considertion for investment unit price, including utilizing the bridge function.
CRE REIT acquired three properties from leasing company at IPO and one property from leasing company at first public offering. The timing of property sales by the sponsor andacquisitions by CRE REIT can be adjusted.

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

CRE’s Approach to Property Sales and Development

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

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

Construction
Management
Leasing

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

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

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

Appropriate cost control
Attraction of tenants

Generation of higher profits than budgeted19

3. Clear growth strategy to continuously improve the unitholder value

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

46.2%
Renewed60%

Diversification of lease terms (based on leased area)

40%

Under
discussion withexisting tenants
for contract
renewal100.0%Asking theintentions ofexisting tenant

53.8%

20%

Agreed to start discussion
upward revision of rent (1)

80%

Under
discussion withexisting tenants
for contract
renewalUpward revision ofrent or agreed tostart discussion
upward revision ofrent

No change0%

FP ending in 2022/6

FP ending in 2022/12

FP ending in 2023/6

FP ending in 2024/12

20%

15%

12.6%

12.1%

10%

7.4%

7.2%

5%

7.5%

6.8%

6.7%

5.2%

5.2%
3.8%

3.2%

2.9%

3.1%
2.1%2.5%

1.3%

2.0%

3.5%

3.1%

1.7%

0%

FP 2041/12

FP 2041/6

FP 2040/12

FP 2040/6

FP 2039/12

FP 2039/6

FP 2038/12

FP 2038/6

FP 2037/12

FP 2037/6

FP 2036/12

FP 2036/6

FP 2035/12

FP 2035/6

FP 2034/12

FP 2034/6

FP 2033/12

FP 2033/6

FP 2032/12

FP 2032/6

FP 2031/12

FP 2031/6

FP 2030/12

FP 2030/6

FP 2029/12

FP 2029/6

FP 2028/12

FP 2028/6

FP 2027/12

FP 2027/6

FP 2026/12

FP 2026/6

FP 2025/12

FP 2025/6

FP 2024/12

FP 2024/6

FP 2023/12

FP 2023/6

FP 2022/12

FP 2022/6

FP 2021/12

FP 2021/6

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

20

3. Clear growth strategy to continuously improve the unitholder value

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

R&I changed the rating outlook, andRating A was newly acquired from JCR.

Breakdown(2)(3) before the Anticipated Borrowings(1)Rating and Investment Information, Inc.
(R&I)

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

A- (Positive)
Announced on April 21, 2021

Green bond 3.8%

Japan Credit Rating Agency, Ltd.
(JCR)

A (Stable)
Announced on August 3, 2021

JAPAN POST BANK Co., Ltd. 1.3%
Aozora Bank, Ltd. 1.9%
Sumitomo Mitsui
Banking Corporation
22.6%

Shinsei Bank, Limited 2.5%
The Bank of Fukuoka, Ltd. 2.5%

More than 90% of the portfolio assets are green
qualifying assets.
Going forward, continue to actively promote
procurement with green qualifying debt.

Sumitomo Mitsui Trust Bank,
Limited 6.2%

MUFG Bank, Ltd. 7.2%

160,000
140,000

6,378

The Nishi-Nippon City Bank,
Ltd. 8.3%

Mizuho Bank, Ltd.
19.3%

Raise 7,500 million yen with agreen loan at the time of the
Anticipated Borrowings

120,000
100,000

Resona Bank,
Limited 9.4%

80,000Development Bank ofJapan Inc. 13.6%

60,00040,000New lenders in the Anticipated Borrowings
new!

The Yamaguchi
Bank, Ltd.

20,000new!

The Shizuoka Bank,
Ltd.

new!

The Yamanashi
Chuo Bank, Ltd.

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

0(million yen)Green
qualifying
assets128,308(95.3％)(4)

LTV 44.8％(2021/6 Result)

Room toincrease green
Upper limit ofgreen qualifying qualifying debt(6)debt(5)43,72757,501
13,774Upper limit of green
Room to increase
qualifying debt
green qualifying debt

21

3. Clear growth strategy to continuously improve the unitholder value

Stable Financial Management (2) Promote Diversification of Maturity and
Prolong the Debt Term
Promote diversification of maturity
Green bond

Existing loans

the Anticipated borrowings

10,000

8,000

7,100

6,500

4,000

3,680

3,680

2,900

3,680
2,900

4,500

3,105

4,000

3,400

2,000

2,400
0
(million yen) 2021/12

2022/62023/62023/122024/62024/122025/62025/12Extending the debt term

July 31, 2021

After the AnticipatedBorrowings(1)Average remaining time ofinterest-bearing debt(2)2027/63,500

2027/122028/652,369 million yen

62,769 million yen
44.3 %

Set the LTV level of CRE REIT at around45%, and work to reduce it according to themarket environment.

•

Conduct financial management with focus on
long-term stability by taking out long-termloans at a fixed interest rate.

•

Going forward, continue to actively promote
procurement with green qualifying debt.

+ 10,400 million yen

The end of 12th FP (Forecast)

44.8 %•- 0.5 %

September 15, 2021 (anticipated) September 15, 2021 (anticipated)

Ratio of long-term debt

2026/124,274

Difference

September 15, 2021 (anticipated)

The end of 12th FP (Forecast)

LTV

2026/6

3,500

Approach to interest-bearing debt

Before the AnticipatedBorrowings
Interest-bearing debt

2,550

2,000

2022/12

7,000

5,600

5,300

6,000

6,550

100.0 %
September 15, 2021 (anticipated)

100.0 %―%

September 15, 2021 (anticipated)

3.6 years

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

3.7 years+ 0.1 years223. Clear growth strategy to continuously improve the unitholder value

Promoting ESG Efforts ― Environment (1)(1)

95.3% of portfolio are composed of green qualifying assets(2)BELS(2)

CASBEE(2)Sandwich Panels(2)

None
11.3%

None
14.5%

85.5％

LED Lighting(2)

ALC Panels
4.7%

88.7％

BELS
85.5%

Others
14.5%

95.3％

85.5％

LED Lights
85.5%

Sandwich
Panels
95.3%

CASBEE
88.7%

Solar Power(2)(3)Electricity consumption and Energy production of all properties from April 2020 to March 2021(4)
None
18.6%

Solar Power(In-house
consumption)
40.7%

81.4％

Of the five properties thathave been introduced forin-house consumption,
three were acquired in
January 2021, one is ananticipated asset, so theamount looks small.

（thousand kWh）

13,513

Energy Consumption

Solar Power(Electricity sales
by FIT)
40.7%

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

Renewable Energy
478
Production

9,247

In-house
consumption
Electricity sales

70% of total consumption is covered by renewable energy
Regarding “in-house consumption”, the produced electricity can beused without transmission loss, and provided directly to tenants,
therefore, CRE REIT will actively introduce “In-house consumption” forthe properties acquiring in the future.

23

3. Clear growth strategy to continuously improve the unitholder value

Promoting ESG Efforts ― Environment (2)In-house consumption of solar
power
Ensure a part of the electricity consumed in
facilities from the electricity generated by solar
power.

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

Human sensors
Promote energy saving by installing humansensors in facilities.

Green walls
Green walls has the effect of lowering thesurface temperature of buildings andcontributes to the reduction of CO2 in theatmosphere.

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

Installation of water-saving
sanitation appliances
Promote the reduction of water usage by installinghigh-performance water-saving sanitation
appliances in the reduction of water usage.

Soil contamination
countermeasures
Enbio Holdings, Inc., a CRE group company,
revitalizes old factory sites as the land forlogistics facilities by actively utilizing in-situ
cleaning methods that decompose
underground contaminants without
excavating contaminated soil.

24

3. Clear growth strategy to continuously improve the unitholder value

Promoting ESG Efforts ― Social
The business continuity of tenants and the improvements
in amenities

Efforts for officers and employees• Support for business continuity planning measures• Support for skill development- Logistics facilities located in an inland area where the risk ofliquefaction is low.
- Install power receiving and transforming equipment at elevatedlocations as a flood control measure.
- Introduce earthquake early warning systems.
- Install AEDs.
- Install emergency power supply systems.
- Install short circuit isolators in fire alarms to prevent the spread of fires.

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

- Encourage employees to acquire qualifications by paying for
expenses and bonuses for acquisition of qualifications.
License holders (including those that have passed examinations)
Qualification name

Percentage of staff holding qualificationor having passed exam (1)Real estate broker
ARES (Association for Real Estate
Securitization) Certified Master
CMA (Certified Member Analyst of the Securities
Analysts Association of Japan) holder
Real estate consulting master

75.0%
58.3%
25.0%
16.7%

1. Calculated with the 12 people involved in the operation of CRE REIT (as of June 30, 2021) as
the denominator.

• Improvement of the work environment- Refresh and expand the work space by relocating offices.
- Introduce staggered commuting and working from home as a measureagainst COVID-19.
- The president interviews each employee every quarter.

Active disclosure to investors

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

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

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

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

- The CRE Group has cooperated with a local
government in the excavation of the remainsof 74 pit houses from the Middle Jomon Era(about 5,000 years-old), which werediscovered during the development of LogiSquare Sayama Hidaka, andhas collaborated with the local government in the preservation ofarchaeological records and tours of the site.
- Hold a CRE forum for the purpose of sharing logistics issues faced by companies.

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

25

3. Clear growth strategy to continuously improve the unitholder value

Promoting ESG Efforts ― Governance (1)Planned to revise the asset management fee structure to be more aligned with unitholders’ interests(1)• Planned to amend Articles of Incorporation at the General Meeting of Unitholders to be held on September 29, 2021 with the following revision of fee structure from thefiscal period ending June 30, 2022.
• By reducing management fee 1 based on total assets and unifying management fee 2 and management fee 3, aim to increase the linkage with management fees andearnings per unit.

Before Revision

After Revision

Management fee 1

Total assets  0.325% (Upper limit)

Management fee 2

Income before income taxes  4.0%

Management fee 3

Fee on acquisition

ReduceTotal assets  0.3%

Unify

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

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

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

Comparison based on result in FP ended June 30, 2021
100.0%

80.0%

Management Fee 3
11.5%
Management Fee 2
19.1%

Management Fee 2

36.6%

Ratio of EPU-based fee
will increase

60.0%

40.0%

Management Fee 1
69.4%

Management Fee 1

Before Revision

After Revision (2)

63.4%

20.0%

Ratio of total assets-based
fee will decrease

0.0%

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

26

3. Clear growth strategy to continuously improve the unitholder value

Promoting ESG Efforts ― Governance (2)Holding investment units by officers and employees of the sponsor and the Asset Manager• The sponsor's president holds units of CRE REIT. Many officers and employees of the Asset Manager hold investment units of CRE REIT based on a cumulative
investment system and internal regulations.

Title
CRE

the Asset Manager

Name

Units held (1)722 units

President

Tadahide Kameyama

President

Tsuyoshi Ito

1,139 units

Managing Director

Takeshi Oka

61 units
126 units

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

High Independence of the Asset Manager• The Asset Manager was established as an independent asset management company, and all of its employees are employed by the Asset Manager. CRE is not
involved in their recruitment or personnel evaluation.

Category

Number of persons(1)Full-time directors

2

Employees

13(Of which, employees seconded from CRE)
Total

―

15

1. As of June 30, 2021

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

27

4. Appendix

LogiSquare Osaka Katano
Two cafeterias and terraces on the fourth floor, the top floor, that take advantage of the view and are easily accessible from all areas of the building as a common amenity facility. Free Wi-Fi andbackgroundCopyrightmusic broadcasting
are provided
to contributeto the Reserved.
improvement of the working environment for employees.
(C) 2021facilities
CRE Logistics
REIT,
Inc. All Rights

28

4. Appendix

Portfolio is Composed of Newly Built Properties with High Occupancy Rates
Developed by CRE
No.

Property nameLocation(Anticipated)
Appraisalacquisition pricevalue(million yen)(million yen)Appraisal
NOI yield (1)(%)

Total floorarea(2) (m2)Age(3) Number of Occupancy
Developer(6)(years) tenants(4) ratio(5)(%)

M-1

LogiSquare Kuki

Kuki-shi, Saitama

9,759

10,8004.8

40,907.13

5.2

1

100.0

ＣＲＥ

M-2

LogiSquare Hanyu

Hanyu-shi, Saitama

6,830

7,130

5.0

33,999.61

5.1

1

100.0

ＣＲＥ

M-3

LogiSquare Kuki II

Kuki-shi, Saitama

2,079

2,270

5.1

11,511.22

4.5

1

100.0

ＣＲＥ

M-4

LogiSquare Urawa Misono

Saitama-shi, Saitama

13,06014,600

4.7

48,738.29

4.4

3

100.0

ＣＲＥ

M-5

LogiSquare Niiza

Niiza-shi, Saitama

6,960

7,520

4.9

25,355.82

4.3

1

100.0

ＣＲＥ

M-6

LogiSquare Moriya

Moriya-shi, Ibaraki

6,157

6,930

5.2

32,904.90

4.3

2

100.0

ＣＲＥ

M-7

LogiSquare Kawagoe

Kawagoe-shi, Saitama

1,490

1,620

5.0

7,542.56

3.5

1

100.0

ＣＲＥ

M-8

LogiSquare Kasukabe

Kasukabe-shi, Saitama

4,900

5,480

5.1

21,315.54

3.2

1

100.0

ＣＲＥ

M-9

LogiSquare Soka

Soka-shi, Saitama

8,109

8,890

4.6

28,817.59

8.1

1

100.0

ＣＲＥ

M-10 LogiSquare Yashio

Yashio-shi, Saitama

5,073

5,500

4.6

19,068.60

7.5

1

100.0

ＣＲＥ

M-11 LogiSquare Mizuho A

Mizuho-machi, Tokyo

2,794

3,100

4.9

13,755.16

14.5

1

100.0

ＣＲＥ

M-12 LogiSquare Mizuho B

Mizuho-machi, Tokyo

3,584

3,930

4.8

16,016.37

14.5

1

100.0

ＣＲＥ

M-13 LogiSquare Ageo

Ageo-shi, Saitama

4,908

5,150

4.6

19,142.84

2.3

2

100.0

ＣＲＥ

M-14 LogiSquare Miyoshi

Miyoshi-machi,
Saitama

11,70012,700

4.6

37,931.49

1.2

1

100.0

ＣＲＥ

M-15 LogiSquare Sayama Hidaka

Hanno-shi,
Saitama

14,066

14,6004.4

73,728.44

1.2

1

100.0

ＣＲＥ

M-16 LogiSquare Kawagoe II（7）Kawagoe-shi,
Saitama

3,244

3,380

4.8

14,281.38

2.1

1

100.0

ＣＲＥ

O-1

LogiSquare Tosu

Tosu-shi, Saga

2,823

3,260

5.3

16,739.40

3.5

1

100.0

ＣＲＥ

O-2

LogiSquare Chitose

Chitose-shi, Hokkaido

1,300

1,560

6.6

19,760.00

3.7

1

100.0

ＣＲＥ

O-3

LogiSquare Kobe Nishi

Kobe-shi, Hyogo

3,479

3,620

4.7

16,006.20

1.3

1

100.0

ＣＲＥ

O-4

LogiSquare Osaka Katano

Katano-shi, Osaka

22,37022,6004.4

76,393.17

0.5

5

100.0

ＣＲＥ

134,686

144,640

4.7

573,915.71

3.8

28

100.0

―

20 properties Total/Average
Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

29

4. Appendix

Portfolio Comparison Before and After Acquisition of New Assetthe 10th Fiscal Period

After acquisition of
new asset

New asset(2021/6)

19 properties

1 property

20 properties(Anticipated) acquisitoin price

112,316 million yen

22,370 million yen

134,686 million yen

Appraisal value (Estimated value）

122,040 million yen

22,600 million yen

144,640 million yen(Average) appraisal NOI yield

4.8 %

4.4 %

4.7 %

(Average) appraisal NOI yield
after depreciation(1)

3.8 %

3.7 %

3.8 %

Number of properties+

3.8 years

4.4 years

Occupancy rate

100.0 %

100.0 %

100.0 %

(Average) lease term (2)7.7 years

8.7 years

7.9 years(Average) remaining lease term(3)4.9 years

8.4 years

5.5 years

23

5

28

100.0 %

100.0 %

100.0 %

Number of tenants
Ratio of properties developed by
CRE(4)

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

0.5 years=(Average) property age

30

4. Appendix

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

Tokyo Metropolitan Area
Page 32

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

Kansai area
Page 32

Both supply and demand for new properties are high.

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

Around 30% of logistics facilities in the Tokyo Metropolitan Area are 40 to 50 years old.
Page 33

3PL Market Size

EC Market Size/EC Ratio

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

2020

3.1 trillion yen
1.2 trillion yen
2.5-fold increase

19.3 trillion yen
7.8 trillion yen
2.5-fold increasein 10 years

in 10 years

Page 34(3) Rising Importance of Logistics
Network Strategy

2010

2.8%

8.1%

64% of tenant companies that use logistics facilities have plans to relocate or expand
Page 35

logistics facilities.

Please refer to the notes on each page from 32 to 35 page for the definition of each calculation method of each figure.

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

31

4. Appendix

Market Trends― Tokyo Metropolitan Area and Kansai area (from LogiSquare Market Report)(1)

Tokyo Metropolitan Area
Despite the increase in demand, the vacancy rate increased due to the large supply of properties.

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

Vacancy rate: 1.27％ QoQ: Slightly Deteriorated

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

10%

2,000

8%

1,500

6%

1,000

4%

500

2%

0

0%

(Ten thousand m2)

Rented area

Vacant area

Vacancy rate (right axis)

Kansai area
Both supply and demand for new properties are high.

Vacancy rate: 2.19％ QoQ: Slightly Improved

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

20%
15%

500

10%
5%

0

0%

(Ten thousand m2)

Rented area

Vacant area

Vacancy rate (right axis)

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

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

32

4. Appendix

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

Distribution of locations by the number of facilities

100%

10%

To 1969

80%

18%

60%

23%

1970 - 1979

1980 - 1989
1990 - 1999
From 2000

40%

24%

20%

25%

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

These facilities are
20 to 40 years old andthe demand for theirreplacement is expectedin the future.

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

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

0%

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

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33

4. Appendix

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

• The EC market is expanding year by year. Furthermore, in Japan,
the EC rate is low compared with the U.S. and there is still muchroom for expansion.

3PL (Third-Party Logistics) Market Size

Growth in the BtoC e-commerce market size in Japan

3.5
3.0
2.5

1.78 1.88

2.0
1.5

1.27

2.04

2.25

2.48 2.59

2.85

3.03 3.16

19.4 19.3

20.0

15.0

12.8

1.46

10.0

7.8 8.5
4.4% 4.9%

9.5
5.4%

7.1%
5.8% 6.4%

7.9%

0.0

0.0

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

Source: “The monthly Logistics Business” September 2020 issued by Rhinos Publications, Inc

2.8% 3.2% 3.4%

U.S. 18%
13.6% 16%

8.7%

9.6%

10.7%

12%
10%
8%

8.1%

5.0

0.5

4.8%
3.9% 4.4%(Trillion yen) 2010 2011 2012 2013 2014
E-commerce market size in Japan (left axis)
E-commerce rate in the U.S. (right axis)

20%

14%

11.2

1.0

(Trillion yen)

13.8

15.1

16.5

18.0

5.4%

6.8%
Japan
5.8% 6.2%

6%
4%
2%
0%

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

Source: Prepared by the Asset Manager based on data of the Ministry of Economy, Trade and Industry for the BtoC ecommerce market size and the e-commerce rate in Japan and data of the United States Census Bureau for the ecommerce rate in the U.S.
1.
The ratio of the e-commerce market size to the amount of all commercial transactions (the commercial transaction
market size). The e-commerce rate in BtoC e-commerce refers to the value in the field of product sales.

• In recent years, the floor space of properties where construction commenced has been around half the peak level and there has been a shortageof logistics facilities to meet current logistics needs.
Trends in Floor Space of Properties Where Construction Commenced
20

RetailWarehouses

15

10

5

0
(Million m2)

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

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

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34

4. Appendix

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

No plan29%

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

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

Others7%
Shrink0%

No particular change

Expansion
28%

Others0%

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

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

10%

20%

30%

40%

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

35

4. Appendix - Characteristics of CRE Logistics REIT, Inc.

Characteristics/Advantages of CRE REIT
Character-istics

1. Portfolio focused on LogiSquare

2. Long-term, stable asset management

3. Distinct external growth strategy

High-quality portfolio(1) Stable cash flow

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

Occupancy rate

Ratio of fixed-term leases

Ratio of fixed-rate rents

100.0%

100.0%

100.0%

Average lease contract term

Average remaining lease term

7.9 years

5.5 years

Ratio of single-tenantfacilities

Ratio of Tokyo Metropolitan andKansai area

Average mileage
to interchange

Ratio of properties within 10 mins’ walkof public transportation

96.9%

2.5 km

87.0%

65.5%

The sponsor is real estate company specializing in logistics properties(1)Advantages(1) Leasing capability(2) Property management (PM)capability(3) Development capability

Companies that have concluded
lease contracts with CRE directly

Master lease occupancy rate oflogistics real estate(2)1,075 companies

98.2%

Managed floor area

PM entrusted by other companies(3)1,584 properties 5.7

million m2

Approx.60%

Holding of private viewings, including
for other listed REITs
Ranking of past performance for PM
company focusing on logistics facilities

2nd place• Requests obtained from tenants through day-to-day management and leasing activities are fully reflected in facility
development.
• Has been developing suitable properties for REIT(4) since 2006 when real estate securitization first appeared in Japan.

Capable of flexibly acquiring properties, taking into consideration investment unit price• Can leverage the sponsor’s bridge function. Acquired three properties at the time of the IPO and one property following the first follow-on offering byleveraging the bridge function.
• In position to acquire the properties on the scale of hundreds of millions to billions of yen and quasi-co-ownership interests using free cash.
• Already secured pipeline of 11 properties with total floor area of 450,000 m2.

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36

4. Appendix - Characteristics of CRE Logistics REIT, Inc.

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(2)Property age(3)10 years or more
4.7%
Less than 3 years
44.4%

5 years or more but lessthan 10 years
22.1%

Ratio of fixed-termlease contracts

Ratio of fixed-rate
rents

Average100.0%

100.0%

3.8 years
3 years or more but less than 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.
2. "Ratio of fixed-rate rents" refers to the ratio of fixed-rent lease contracts to all lease contracts for each asset held and asset to be acquired and calculated based on leased area as of the end of July 2021. In cases where a pass-through master
lease agreement has been executed or is scheduled to be executed for each asset held or asset to be acquired, the lease agreement with the end-tenant.
3. Based on (anticipated) acquisition price after the anticipated acquisition.

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37

4. Appendix - Characteristics of CRE Logistics REIT, Inc.

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(1)Average remaining lease term(1)(2)Tenant composition(3)10 years or more
2.5%

Less than 5 years
18.2%

Multi-tenant
34.5%

10 years or more
40.4%

Average

Average

7.9 years

5.5 years

5 years or more andless than 10 years
41.4%

5 years or more andless than 10 years
48.2%

Less than 5 years
49.3%

Single-tenant

65.5%
Single-tenant
65.5%

1. After acquisition of asset to be acquired. The period of the lease contract or the remaining lease period (if there are multiple lease contracts, calculated based on weighted average by the leased area) for each property is calculated byweighted the average by the (anticipated) acquisition price.
2. In some cases, the lessee could have the right to terminate the lease without paying the full amount of rent for the remaining period or shorten the lease term after a certain period or at a certain time, and it is not fully guaranteed in the contractthat the lessee will be able to receive rent for the entire remaining period of the lease.
3. After acquisition of asset to be acquired. "Single-tenant" and "Multi-tenant" indicate the ratios of single-tenant and multi-tenant properties (calculated based on (anticipated) acquisition price) in each asset held and asset to be acquired as ofthe end of July 2021. The properties whose tenant leased on the calculation method described in the note 4 in page 29 is 1, are single tenant, the properties whose tenants based on the calculation method described in the note 4 in page 29 is
2 or more, is multi-tenants.

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38

4. Appendix - Characteristics of CRE Logistics REIT, Inc.

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(1)Distance to an interchange(1)Walking distance from public transportation facilities(1)5 km or more
8.4%

Others3.1%

3 km or more and lessthan 5 km
12.8%

Kansai Area
19.2%

Average

96.9％
Tokyo
Metropolit
an Area
77.7%

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) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

39

4. Appendix - Characteristics of CRE Logistics REIT, Inc.

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

1964

2005

1980

2014

Established in 2009

Established in 1980

Established in 1964

Commercial RE
Tenko Souken

2010:
Businesstransfer
2011:
Absorptiontype merger

2014:
Acquisition

Established in 2006

2020:
Absorption-type merger

Involvement of All Employees in Logistics Properties

Proven Track Record in Providing Services to Other Companies(1)Number of employees on a consolidated basis (as of July 31, 2020)

CRE REIT can draw on the sponsor's knowhow gained through the management of
5.7 million m2 floor area
CRE REIT
9%171

Property management
Logistics investment

9
21
48

Asset management

Master lease

Area managed

27%

1,584 properties
5.7 million m2
Other listed REITs and private

Administration

funds, etc.
64%

Total 249
Source: Prepared by the Asset Manager based on Annual Report for Fiscal Year ended July, 2020 of CRE, Inc.

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

1. As of April 30, 2021. Includes results under the property managements and master lease agreements for theproperties other than logistics-related facilities.

40

4. Appendix - Characteristics of CRE Logistics REIT, Inc.

CRE’s Leasing / Property Management Capability ― Strength in wide tenant networks
Fast grasp of rent trends, including actual rents paid and rent
increases and decreases, by entering into contracts directly witha diverse range of tenants, not just logistics service providers.
••

CRE can gain an understanding of rent levels by entering contracts
with tenants directly under master lease arrangements
CRE builds relationships with tenants from a variety of industries not
only logistics operators.

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

6

5.3
4.6

4.2

4

2

Other
Customer services

0.9

0(Million m2) 日本GLP
GLP

Transportation
services

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

Corporation services

1,075 companies
Whole sale

Real estate and construction

Manufacturing

Around 70% of tenants are
not logistics operators
1. As of July 31, 2020.Figures include tenants of properties other than logistics-related facilities.The classification of tenants ismade by the Assets Manager based on hearing surveys at the execution of lease contracts, considering major items andindustries of each tenants. Therefore, those ratios may differ from actual ratios.

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

Major Customers (2)Total Number ofMaster Lease Tenants (1)Retail• Mitsubishi Estate Logistics REIT Investment
Corporation• Japan Logistics Fund
• Industrial & Infrastructure Fund Investment
Corporation• LaSalle LOGIPORT REIT
• Star Asia Investment Corporation• Kenedix Retail REIT Corporation• United Urban Investment Corporation• Morgan Stanley Capital• Mitsui & Co., Realty Management• Mitsubishi Jisho Investment Advisors• Yamato Home Convenience• TLC REIT Management(No particular order)

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

41

4. Appendix - Characteristics of CRE Logistics REIT, Inc.

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

Location+

Basic
Specification+

Expandability+

Comfort+Tenant’s unique requirements

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

Improvement of convenience/
Reduction of future costs

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

Leasing teamProperty management teamCommunication

Tenant companies and potential tenants

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42

4. Appendix - Characteristics of CRE Logistics REIT, Inc.

CRE’s Development Capability

Cumulative total floor area

―Development Since the Start of Real Estate Securitization in Japan

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

Properties developed by Commercial RE

Properties developed by CRE

Properties jointly developed by Commercial RE and Kenedix

Properties to be developed by CRE (planned)

Properties held by other REITs

Assets owned by CRE REIT

Anticipated asset of CRE REIT

Properties with exclusive negotiation right

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

LogiSquare Chiba Kita II

LogiSquare Kuki II

LogiSquare Chitose

LogiSquare Misato

LogiSquare Urawa Misono

LogiSquare Tosu

LogiSquare Ageo

LogiSquare Niiza

LogiSquare Kawagoe

LogiSquare Kawagoe II

LogiSquare Moriya

LogiSquare Kasukabe

LogiSquare Kobe Nishi

Toyama BTS warehouse

LogiSquare Sayama Hidaka

LogiSquare Miyoshi II

LogiSquare Miyoshi

LogiSquare Osaka Katano

900
LogiSquare Mizuho A

LogiSquare Yachiyo

805

800

703
700

LogiSquare Mizuho B

LogiSquare Kazo II

LogiSquare Tosu II

LogiSquare Kuki

600

576
33

542
LogiSquare Matsuzaki I

LogiSquare Ichikawa-tajiri

LogiSquare Sagamihara

LogiSquare Soka

LogiSquare Yashio

LogiSquare Hidaka

LogiSquare Hanyu

477

500
400

LogiSquare Tosu I

LogiSquare Matsuzaki II

300
Yokohama Fukuura Logistics Center

200

118

100

167
49

220
53

248
29

267
19

128

65

119

358

LogiSquare Tokorozawa

102

283
16

75

FY2015/7

FY2016/7

LogiSquare Kazo I

80

FY2006/3(Thousand m2)

Timing of listingof logistics
REITs

110
FY2007/3

May 2005

FY2008/3

FY2009/3

FY2013/7

Dec. 2012

Listing of first REIT specializing
in logistics facilities

FY2014/7

Feb. 2013

FY2017/7

Feb. 2016 Aug. 2016

FY2018/7

Sep. 2017

FY2019/7

Feb. 2018

Sep. 2018

FY2020/7

FY2021/7

Dec. 2019

CRE REIT listed

The above chart includes assets not in our portfolio, CRE REIT has not engaged in specific negotiations with the CRE Group companies on any of the above assets that are not portfolio assets, nor does it have any plan to acquire them at the present time or
guarantee future acquisition. The above chart also includes the properties that have already been sold to third parties. Furthermore, with respect to properties to be developed by CRE (planned), as of August 20, 2021, the development has not completed
and the pictures, total floor area and development completion timing are based on plans as of August 20, 2021 and may change in the future. The development completion dates of the above assets are stated as the building completi on dates.

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

43

4. Appendix

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

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

Ratio
(%)

Individuals/others
Overseas investors

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

99,633

19.9

Custody Bank of Japan, Ltd. (Trust Account)

98,642

19.7

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

23,027

4.6

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

21,391

4.3

CRE, Inc.

20,390

4.1

The Bank of Yokohama,Ltd.

10,1992.0

Mitsubishi UFJ Trust and Banking Corporation

8,884

1.8

ＪＰ MORGAN CHASE BANK 380684

8th FP(2020/6)

7,455

1.5

2nd
PO

SSBTC CLIENT OMNIBUS ACCOUNT

5,667

1.1

Aozora Bank, Ltd.

5,396

1.1

7th FP(2019/12)

300,684

60.1

1st
PO

Total

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

Ratio
(%)

9,964

95.7

Financial institutions

74

0.7

Other domestic corporations

203

1.9

Overseas investors

152

1.5

Securities companies

24

0.2

10,417

100.0

Total

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

Financial institutions
Securities companies

Other domestic corporations

12.3%
61,305

61.6%
308,166

13.2%
56,071

63.5%
268,753

7.1% 14.3%
29,857 60,435

2.0%
8,384

16.8%
58,252

57.3%
199,135

11.3% 12.5%
39,132 43,419

2.1%
7,312

19.1%
49,506

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

6th FP(2019/6)

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

5th FP(2018/12)

25.2%
58,21426.1%
60,395

6.0% 1.0%
13,984 2,325

4th FP(2018/6)

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

6.2% 16.8%
31,254 83,907

3.1%
15,5184thPO

9th FP(2020/12)
3rd
PO

41.6%
96,232

42.1%
97,21426.4%
61,122

2.7%
6,888

9.7% 0.6%
22,361 1,325

44

NotesUnless otherwise noted, in this material, monetary amounts are rounded down to the nearest indicated unit, and areas, numbers of years and ratios are rounded off to the nearest indicated unit. Therefore, monetary amounts,
areas, numbers of years and ratios may not add up. CRE REIT holds the quasi co-ownership interest (80%) in the trust beneficiary right in LogiSquare Sayama Hidaka as of September 2, 2021. Unless otherwise stated,amounts concerning the area of LogiSquare Sayama Hidaka (including, but not limited to, “leasable area” and “leased area”) are based on the entire asset or the amounts calculated based on the entire asset. For other amounts,
unless otherwise stated, amounts correspond to the quasi co-ownership interest (80%) that CRE REIT holds as of September 2, 2021, or amounts calculated based on such assumption.
Front cover
1. “LogiSquare” refers to a high-quality logistics-related facility* developed by CRE, Inc. (“CRE”) or, prior to the transfer of its business to CRE, Commercial RE Co., Ltd. (in August 2010, CRE succeeded to Commercial RE Co.,
Ltd.’s master lease and lease management businesses for commercial real estate from Commercial RE Co., Ltd.) that meets the needs of tenants.
* (x) A single facility where the buildings are used solely for logistics among businesses and sales logistics involving transporting and delivering goods, storage, stockpiling, cargo handling, packaging, sorting, distribution
processing, and information provision, or a complex facility in which the buildings comprising the real estate is used for logistics facilities use with the largest floor space dedicated to logistics use; or (y) a single facility where
the building is used solely for the storage of goods under a deposit contract with a consumer, or a complex facility with the largest floor space dedicated to storage of goods under a deposit contract with a consumer, in eachcase including incidental equipment and offices.
Page 4
3. “Implied cap rate” refers to the yield expected by investors in real estate calculated based on the price of investment units. Implied cap rate of CRE REIT is calculated using the following formula and rounded to the firstdecimal place, expressed as a percentage.
Implied cap rate ＝ Annual stabilized NOI* ÷ ｛Market capitalization of CRE REIT as of August 20, 2021 ＋ Interest-bearing debt as of the end of the 10th fiscal period (ended June 30, 2021) ＋ Additional interest-bearing debt
based on new loan on July 30, 2021 － Loan repayment on July 30, 2021 ＋ Tenant leasehold deposits as of the end of the 10th fiscal period (ended June 30, 2021) － （Cash and cash equivalents as of the end of the 10th
period (ended June 30, 2021)－ Restricted deposits as of the end of the 10th fiscal period (ended June 30, 2021)）｝* “Annual stabilized NOI” is the sum of the appraisal NOI (or net operating income, which is operating revenue minus operating expenses as stated in the real estate appraisal report, and differs from NCF (Net Cash Flow),which deducts from NOI investment income from interest from security deposits and capital expenditures) stated in each of the real estate appraisal report for the current assets (the assets held by CRE REIT as of
September 2, 2021) as of June 30, 2021 being the valuation date. In addition, in this material, “real estate appraisal report” may include a real estate price research report, and “appraisal value” may include the survey price(survey value) based on such survey report.
Page 6
1. “Green Finance” means a Green Equity Offering (2), Green Loan (3) or Green Bond (4).
2. “Green Equity Offering” refers to financing through issuance of investment units in accordance with the Green Equity Framework (please refer to (13) for the definition of the “Green Equity Framework”) established by CRE
REIT.
3. “Green Loan” generally refers to a loan that complies with the Green Loan Principles. “Green Loan Principals” means guidelines for loans with respect to which use of proceeds is limited to environmental areas and that are
established by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications & Trading Association. A portion of the Anticipated Borrowings (please refer to (1) on page 21 for the definition of the“Anticipated Borrowings”) is a Green Loan.
4. “Green Bond” is a bond issued by entities, such as corporations and local governments, to raise funds to be used for green projects that have a clear environmental improvement effect. The bond is generally issued inaccordance with the “Green Bond Principles” set forth by the International Capital Market Association (“ICMA”). “Green Bond Principles” are a set of guidelines for issuing green bonds established by the Green Bond
Principles Executive Committee, a private organization for which ICMA serves as the secretariat.
5. “Green qualifying assets” means assets that meet certain qualified criteria. The qualified criteria for Green qualifying assets of CRE REIT are as follows, and properties that have acquired or renewed, or will acquire or renew,
any of the relevant certifications apply to the Green qualifying assets.
・DBJ Green Building Certification (6) : 5 stars or 4 stars
・CASBEE Certification (7) : S rank or A rank
・BELS evaluation (8) : 5 stars or 4 stars
6. “DBJ Green Building Certification” means the certification system established by the Development Bank of Japan Inc. in April 2011 to support environmentally and socially conscious management of the real estate (“Green
Buildings”). The system is intended to evaluate and certify the real estate that is required by society and the economy, based on a comprehensive evaluation of not only the environmental performance of the subject property
but also how it addresses the needs of various stakeholders, including disaster prevention and community considerations, and to support such efforts. There are five ranks in this certification (★ to ★★★★★).
7. “CASBEE” stands for Comprehensive Assessment System for Built Environmental Efficiency”. CASBEE is based on a method for evaluating and rating the environmental performance of buildings established by the Institutefor Building Environment and Energy Conservation, and is a system for comprehensively evaluating the quality of buildings, including environmental considerations such as energy conservation and the use of materials andequipment with less environmental burden, as well as indoor comfort and landscape consideration. There are five ranks given in this evaluation, from “S-rank (excellent),” to “A-rank (very good),” “B+-rank (good),” “B-rank(slightly inferior),” and “C-rank (inferior).

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Notes
8. “BELS evaluation” means Building-Housing Energy-efficiency Labeling System. This system was launched to ensure that third-party organizations accurately evaluate and present the energy conservation performance of nonresidential buildings based on the “Guidelines for the Evaluation of Energy Conservation Performance Indication for Non-Housing Buildings (2013)” established by the Ministry of Land, Infrastructure, Transport and Tourism. In
addition, since April 2016, it has become one of the third-party certification systems stipulated in the Guidelines for Indication of Energy Consumption Performance of Buildings (Notification No. 489 of the Ministry of Land,
Infrastructure, Transport and Tourism, 2016 as amended) based on Article 7 of the Act on the Improvement of Energy Consumption Performance of Buildings (Act No. 53 of 2015 as amended), and also houses have been
added to the scope. Under this system, a third-party organization evaluates the energy conservation performance of both new and existing buildings based on various measures, and the evaluation is indicated in five levels(★ to ★★★★★).
9. In June 2020, CRE REIT established a green finance framework in accordance with “Green Bond Principles 2018”, “Green Bond Guidelines 2020” (10), “Green Loan Principles” and “Green Loan and Sustainability Link Loan
Guidelines 2020” (11) for the issuance of green bonds as well as for financing through green loans and green bonds (“Green Qualifying Debt”).
10. “Green Bond Guidelines 2020” are the guidelines established and published by Ministry of the Environment in March 2017, as amended in March 2020, to further promote green bonds in Japan by providing specificexamples of responses and interpretations that are in line with Japan’s unique characteristics that can be used as references by market participants in considering specific actions related to green bonds while maintaining
consistency with the Green Bond Principles.
11. “Green Loan and Sustainability Link Loan Guidelines 2020” are the guidelines established and published by Ministry of the Environment in March 2020. The guidelines, which aim to further promote green loan in Japan,
provides specific examples of responses and interpretations that are in line with Japan’s unique characteristics that can be used as references by lenders, borrowers and other related institutions to consider specific actions
related to green loans while maintaining consistency with the Green Loan Principles
12. Green 1(F) is the highest level of “JCR Green Finance Framework Evaluation” (an evaluation conducted by JCR to confirm compliance with the Green Bond Principles, the Green Loan Principles, or the Green Bond
Guidelines established by the Ministry of the Environment for the issuer’s policies with respect to green bonds or green loans, rather than for any green bond issuance or green loan borrowing; assessment is given in fivelevels (Green 1(F) to Green 5(F))).
13. CRE REIT established a green equity framework (the “Green Equity Framework”) for the purpose of further promoting ESG initiatives in August 2021, with reference to the four core elements set forth in the Green Bond
Principles 2021 (1. use of proceeds, 2. project evaluation and selection process, 3. management of proceeds, and 4. reporting), the Green Bond Guidelines 2020 and the Green Loan and Sustainability Linked Loan
Guidelines 2020 (14). Please refer to “第二部 参照情報 第２ 参照書類の補完情報 １ 投資方針 （１） オファリング・ハイライト ① 継続的な投資主価値向上を実現 （イ） グリーンファイナンスでの資金調達や、目論見書の電子交付により、環境に配慮した公募増資を実施” in Securities Registration Statement for the Issue of New Investment Units dated September 2, 2021 for the Green Equity Framework.
14. CRE REIT appointed SMBC Nikko Securities Inc. as a green equity structuring agent in establishing the Green Equity Framework. A “green equity structuring agent” refers to a party that provides support for financing
through green equity offerings by providing advice related to establishing a green equity framework and obtaining second party opinions.
15. “DNV” is the Japanese office of DNV, a third-party assessment agency, established in 1864, based in Oslo, the Kingdom of Norway. The agency has built a strong track record in providing a number of verification reports
and second-party opinions, through its global activities as a registered issuance supporter (External Review Division) of the Green Bond Issuance Promotion Platform set up by Ministry of Environment of Japan and as averifier certified by Climate Bonds Initiative, an international NGO that promotes a massive investment aiming at low-carbon economy.
16. In the Green Bond Principles, there are four types of external reviews: “second party opinion,” “verification,” “certification” and “rating”. A “second party opinion” means an opinion by a third-party organization with expertiseon the conformity with the Green Bond Principles, etc. A “verification” means that an external assessment body guarantees or certifies the conformity with certain standards related to environmental standards, etc. (includinginternal standards created by the issuer). The term “certification” means that an accredited third party evaluation organization confirms the conformity with generally recognized external greenness assessment standards andgrants certification, and the term “rating” means that a third party organization such as a research or rating organization with expertise evaluates or assesses based on established rating methods.
17. DNV, as an external reviewer, has assessed the eligibility of the Green Equity Framework in reference to the Green Bond Principles and related standards, and by taking into account how the raised funds are managed, aconsideration unique to green equity offerings. However, these various principles and standards are originally not intended for capital-intensive financings such as an issuance of the investment units. DNV does not evaluate
this offering itself. The second-party opinion by DNV does not provide a guarantee as to the financial performance of the investment units to be issued through the Green Equity Offering, the value of the investment or its
long-term environmental benefits. The second-party opinion by DNV is merely an opinion on the Green Equity Framework, and is not an opinion on the investment units of CRE REIT, which are the subject of this offering.
This second-party opinion is different from a credit rating and is not a commitment by DNV to provide or make available a predetermined credit rating.
18. “After acquisition of the anticipated asset” refers to the time following the completion of the acquisition of the anticipated asset. In addition, the following figures for the portfolio after the acquisition of the anticipated asset arecalculated by simply adding up the respective figures for the current assets and the anticipated asset at a certain time under certain assumptions, and actual results may differ.
19. CRE REIT refers to the provision of the information stated in prospectuses by electromagnetic means as electronic delivery of prospectuses. The person providing the prospectus is deemed to have delivered the prospectus,
if such person provides the recipient of such information stated in the prospectus by electromagnetic means after obtaining consent from the recipient (Article 27-30-9, Paragraph 1 of the FIEA; Article 32-2, Paragraph 1 of the
Cabinet Office Order on Disclosure of Information on Regulated Securities (Ministry of Finance Order No. 22 of 1993, as amended) (the “Cabinet Office Order”)). Accordingly, if such consent cannot be obtained or iswithdrawn (Article 32-2, Paragraph 7 of the Cabinet Office Order), prospectuses cannot be delivered electronically, but the Underwriters will sell investment units in this offering only to those investors who have given andhave not withdrawn such consent.
Page 7
1. The “first public offering” or the “1st PO” refers to the first public offering since listing with a payment date of July 16, 2019, the “second public offering” or the “2nd PO” refers to the public offering with a payment date ofJanuary 21, 2020, the “third public offering” or the “3rd PO” refers to the public offering with a payment date of July 13, 2021 and the third-party allocation with a payment date of August 12, 2021, and the “fourth public
offering” or the “4th PO” refers to the public offering with a payment date of January 19, 2021 and the third-party allocation with a payment date of February 10, 2021. In addition, this offering may be referred to as the “fifth
public offering” or the “5th PO” in contrast to the first public offering or the 1st PO, the second public offering or the 2nd PO, the third public offering or the 3rd PO and, the fourth public offering or the 4th PO.
2. “MSCI Global Small Cap Index” is the world’s leading equity investment index provided by MSCI, which has been adopted as a benchmark for global equity investments by domestic and overseas investors including realestate investment funds.
3. “FTSE Global Equity Index Series” is a global equity investment index provided by FTSE, which has been adopted as a benchmark for global equity investments by domestic and foreign investors including real estate
investment funds.

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Notes
4. “Three securities companies” means SMBC Nikko Securities Inc., SBI SECURITIES Co., Ltd. and Mizuho Securities Co., Ltd. Analyst coverage refers to provision of recommendations or reviews regarding the businessresults of CRE REIT. Any information or recommendation, including an analysis, opinion, estimate and forecast, made by the three securities companies regarding the performance or strategies of or any other matters related
to CRE REIT, are based on their own judgment, and neither CRE REIT nor the Asset Manager is involved in the preparation thereof. In addition, analyst coverage does not constitute an offer or a solicitation to purchase or
sell any securities issued by CRE REIT.
5. “R&I” stands for Rating & Investment Information, Inc. and “JCR” stands for Japan Credit Rating Agency, Ltd. In addition, the rating “A- (positive)” from R&I and “A (stable)” from JCR is not the rating for the investment units
but for CRE REIT. There is no credit rating for the investment units of CRE REIT that has been provided or been offered for viewing by a credit rating agency, or is anticipated to be provided or be offered for viewing by acredit rating agency, at the request of CRE REIT.
6. “NAV” refers to Net Asset Value, taking into account the appraisal value of the current assets and the anticipated asset of CRE REIT.
7. Changes in the closing price of the Tokyo Stock Exchange REIT Index on the Tokyo Stock Exchange show the changes in relative figures based on the assumption that the closing price of the Tokyo Stock Exchange REIT
Index (1,664.83 pt) on the listing date of CRE REIT (February 7, 2018) is the same as the issue price of CRE REIT at the time of listing (110,000 yen per unit).
8. The changes in the distribution yields of CRE REIT show the changes in the value obtained as follows: the sum of the forecasted distributions per unit, based on CRE REIT’s forecasts disclosed on the relevant date, for thetwo forecasted fiscal periods (or the two forecasted fiscal periods farthest from the present, in case of three forecasted fiscal periods, divided by the price of investment units (closing price) on the relevant date.
Page 8
1. “Estimated market capitalization after the 5th PO” is calculated based on the assumption that the market value of the investment units is the same as the regular trading closing price of the investment units on the Tokyo
Stock Exchange as of August 20, 2021 (Friday) (216,700 yen) and that the number of investment units outstanding (564,700 units) is the total of the number of investment units outstanding as of the end of the 10th fiscal
period (ended June 30, 2021) (500,150 units) and the number of investment units planned to be issued through this offering (64,550 units). Therefore, if the actual market value of the investment units is lower than the
aforementioned assumed amount, the estimated market capitalization after the 5th PO will be lower than the aforementioned amount. Conversely, if the actual market value of the investment units is higher than the
aforementioned assumed amount, the estimated market capitalization after the 5th PO will be higher than the aforementioned amount. Estimated market capitalization after the 5th PO is the estimated amount as of
September 2, 2021, calculated based on the above assumptions, and may not necessarily match the actual market capitalization after this offering. The same applies below.
2. “FTSE EPRA Nareit Global Real Estate Index Series” is a widely used index as a benchmark for international real estate investment, developed by FTSE in cooperation with the European Property Research Association(EPRA) and the National Association of Real Estate Investment Trusts (NAREIT), two of the world’s leading real estate investment trusts.
Page 9
1. DPU stands for distributions per unit (including distributions in excess of earnings).
2. “Annual rate + 6.1%” is the average annual growth rate for three years from the end of the 6th fiscal period (ended June 30, 2019), calculated using the forecast for the 12th fiscal period (ending June 30, 2022) (compoundedover one year).
3. “Forecast dated August 13, 2021” is based on “CRE Logistics REIT, Inc. Summary of Financial Results (as amended)” dated August 13, 2021.
4. “Forecast dated September 2, 2021” is based on “Notice Concerning Revision of Forecasts of Operating Results for the Period ending December 31, 2021 and the Period ending June 30, 2022” dated September 2, 2021.
5. NAV per unit at the end of each fiscal period is calculated using the following formula.
NAV per unit at the end of each fiscal period = (Net assets on the balance sheet at the end of each fiscal period + Total appraisal value of the current assets as of the end of each fiscal period － Total book value of the current
assets at the end of each fiscal period－ Total amount of cash distribution for each fiscal period) ÷ Total number of investment units outstanding of CRE REIT as of the end of each fiscal period
6. NAV per unit after the 5th PO is calculated by the following formula.
NAV per unit after the 5th PO ＝ （Net assets on the balance sheet as of the end of the 10th fiscal period (ended June 30, 2021) ＋ Total estimated amount of issue price for this offering* ＋ Total appraisal value of current
assets**) － Total book value of current assets ＋ Appraisal value of the anticipated asset** － Anticipated acquisition price of the anticipated asset*** － Total amount of distributions for the 10th fiscal period (ended June 30,2021)）÷ Total number of investment units outstanding of CRE REIT after this offering* The total estimated issue amount for this offering is expected to be 13,232,000,000 yen. Such estimated amount is calculated based on the regular trading closing price of the investment units on the Tokyo Stock Exchange asof August 20, 2021 (Friday) (216,700 yen), and assuming that the issue amount is 204,998 yen per investment unit. Therefore, if the actual issue amount in this offering is lower than the aforementioned assumed amount, thetotal issue amount in this offering will be lower than the aforementioned amount, and the actual NAV per unit after this offering may be lower than the above. Conversely, if the actual issue amount is higher than the
aforementioned assumed amount, the total issue amount will be higher than the aforementioned amount and the actual NAV per unit after this offering may be higher than the above.
** The real estate appraisal for each current asset and the anticipated asset has been entrusted to Japan Real Estate Institute, Tanizawa Sogo Appraisal Co., Ltd. or DAIWA REAL ESTATE APPRAISAL CO., LTD. “Appraisal
value” is calculated based on the real estate appraisal value stated in each real estate appraisal report with the date of valuation being June 30, 2021 for each current assets and the date of valuation being July 31, 2021 foranticipated asset. Please refer to page 29 below for the appraisals for each current asset and the anticipated asset.
*** “Anticipated acquisition price” refers to purchase price of the trust beneficiary interest in the trust beneficiary interest purchase agreement for the anticipated asset. “Acquisition price” refers to purchase price of each trust
beneficiary interest in the trust beneficiary interest purchase agreement for each current asset. “(Anticipated) acquisition price” means the acquisition price or anticipated acquisition price, as the case may be. In addition, CRE
REIT sold a part of the land of LogiSquare Tosu on August 31, 2020. Therefore, unless otherwise stated, the acquisition price of LogiSquare Tosu for the 9th fiscal period (ended December 31, 2020) and thereafter is theamount calculated by the following formula.
The acquisition price of LogiSquare Tosu ＝ Purchase price of the trust beneficiary interest stated in the trust beneficiary interest purchase agreement dated December 27, 2017 for LogiSquare Tosu (as amended) (2,880
million yen) － (Land price as stated in the purchase agreement (820.8 million yen) ÷ Area before sale × Sold area)
In addition, the sale price does not include consumption tax, local consumption tax, sales commission and other expenses.
NAV per unit after the 5th PO is the estimated amount as of September 2, 2021, calculated based on the above assumptions; the actual result may differ.
7. “Annual rate + 8.1%” is the average annual growth rate over 3.5 years from the end of the 4th fiscal period (ended June 30, 2018) (compounded over 1 year), calculated on the assumption that NAV per unit at the end of the
11th fiscal period (ending December 31, 2021) is the same as NAV per unit after the 5th PO.
8. “LTV” refers to the ratio of the balance of borrowings and investment corporation bonds to the total assets of CRE REIT.
9. The amount of “Asset size” is calculated based on the total amount of (anticipated) acquisition price.

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Notes10. “Annual rate + 34.5%” is the average annual growth rate over 3.5 years from the end of the 4th fiscal period (ended June 30, 2018) (compounded over 1 year), calculated on the assumption that there will be no changes(acquisition of new assets, disposition of current assets, etc.) until the 11th fiscal period (through December 31, 2021).

Page 10
1. EPU stands for earnings per unit.
2. “Initial Forecast” is based on “CRE Logistics REIT, Inc. Summary of Financial Results For the 5th Fiscal Period Ended December 31, 2018 (For the Reporting Period from July 1, 2018 to December 31, 2018)” dated February
18, 2019.
3. “Forecast at the 1st PO” is based on “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” dated
June 27, 2019.
4. “Forecast at the 2nd PO” is based on “Notice Concerning Revision of Forecasts of Operating Results for the Period ending June 30, 2020 and Forecasts of Operating Results for the Period ending December 31, 2020” dated
January 7, 2020.
5. “Forecast at the 3rd PO” is based on “Notice Concerning Revision of Forecasts of Operating Results for the Period ending December 31, 2020 and Forecasts of Operating Results for the Period ending June 30, 2021” dated
June 29, 2020.
6. “Forecast at the 4th PO” is based on “Notice Concerning Revision of Forecasts of Operating Results for the Period ending June 30, 2021 and Forecasts of Operating Results for the Period ending December 31, 2021” dated
January 4, 2021.
7. “Forecast at the 5th PO” is based on “Notice Concerning Revision of Forecasts of Operating Results for the Period ending December 31, 2021 and the Period ending June 30, 2022” dated September 2, 2021.
Page 12
1. “Kansai area” includes Osaka, Kyoto, Hyogo, Nara, Mie, Shiga and Wakayama Prefecture.
2. For the definitions of and calculation methods for “Total floor area”, “Appraisal NOI yield” and “Occupancy rate” for the anticipated asset, please refer to the notes on page 29. In addition, total leasable area is sometimes
simply referred to as “leasable area”.
3. “Appraisal NOI yield after depreciation” of the anticipated asset is the ratio of (x) the appraisal NOI of the anticipated asset (appraisal NOI based on the real estate appraisal report with valuation dated as of July 31, 2021)
minus the estimated amount of depreciation to (y) the anticipated acquisition price of the anticipated asset, rounded to the first decimal place, expressed as a percentage. This figure was calculated by the Asset Manager andis not included in the real estate appraisal report. In addition, the actual result after the acquisition by CRE REIT of the anticipated asset may differ.
4. “Kansai three prefectures” includes Kyoto, Osaka and Hyogo Prefecture.
Page 13
1. Based on leased area after the anticipated acquisition. Leased area is the sum of the leased area described on each lease agreement with the end tenant for LogiSquare Osaka Katano as of July 31, 2021.
2. The graph of tenant industries and products handled by tenant is based on the Asset Manager’s judgment as to each tenant’s principal industry and products as a result of interviews conducted by the Asset Manager at
leasing agreement. Therefore, actual results may differ due to changes in products handled.
Page 14
1. The speed settings for automobile driving are as follows. Traffic congestion is not taken into account, and the road improvement plan for the Shin-Meishin Expressway is not included.
National road : 24～47km/h, Large local road : 21～38km/h, Small local road : 10～15km/h, Expressway : 71～76km/h
2. The possible level of the flood due to tsunami means the possible flood area and level the governor of Osaka Prefecture has set assuming a “maximum class tsunami” (L2 tsunami) based on the Act on Regional Development
for Tsunami Disaster Prevention (Act No.123 of 2001, as amended). The possible level of the flood due to tsunami is set for the preparation of disaster prevention (mainly evacuation) and will not determine the disaster area
due to tsunami. Since this is the result of calculations based on certain assumptions, it does not necessarily mean that the other area is safe. The possible level of the flood due to tsunami will be affected by the unevennessof the ground and buildings, and the flood may happen outside the possible area of the flood due to tsunami because of the difference from the assumption of the calculation which will result from change of ground byearthquake and structures etc.
3. Based on the hazard map of Katano City. “PL level” indicates the degree of liquefaction risk at a given location. Estimates are made on a 250-meter mesh basis and using average ground information, which does notnecessarily correspond to the conditions of each housing lot, etc. In addition, there is no guarantee that liquefaction will not occur in areas where risk of liquefaction is considered to be low.
4. Based on the hazard map of Katano City. The rainfall conditions in the flood hazard information in the hazard map of Katano City are based on the assumed maximum rainfall for each river basin, and do not take into accountflooding due to rainfall of a larger scale than assumed or flooding due to inland water. The possible area of the flood due to overflow means the area designated due to assumption of the flood due to overflow along the waterlevel recognized river etc., which may cause the disaster due to overflow in order to secure smooth and prompt evacuation on overflow. In addition, even outside of the possible area of the flood due to overflow, flooding andother damage may occur in this area, and the assumed degree of damage may differ from the actual degree of damage.
Page 16
1. “Pipeline” refers to , excluding the anticipated asset, (i) properties for which CRE REIT has already acquired preferential negotiation rights based on the sponsor support agreement dated September 26, 2017 concluded
between CRE REIT, the Asset Manager and CRE (“Sponsor”, CRE as a sponsor) (as amended) (“Sponsor support agreement”) (“Preferentially negotiated properties”), and (ii) properties that are under development by CRE
and for which preferential negotiation rights will be granted based on the Sponsor support agreement (“Properties under CRE development”). In addition, under the terms of Sponsor support agreement, CRE REIT or the
Asset Manager will be granted preferential negotiation rights for all properties developed and owned by the CRE Group (4) and will be provided with opportunities to acquire such properties (except for properties excluded
under the Sponsor support agreement), but even in the event that such preferential negotiation rights are granted, CRE REIT will not be obliged to acquire the properties for which preferential negotiation rights have been
granted and CRE Group will not be obliged to sell the properties for which preferential negotiation rights have been granted to CRE REIT with the price CRE REIT hopes.
2. “CRE Group” is a collective term for CRE, Inc. and its group companies. The CRE Group consists of CRE and its subsidiaries and affiliates (9 consolidated subsidiaries and 4 affiliates as of July 31, 2020).

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Notes
3. CRE REIT holds the quasi co-ownership interest (80%) in the trust beneficiary right in LogiSquare Sayama Hidaka, and has preferential negotiation rights for the remaining quasi co-ownership interest (20%) as of September
2, 2021. The asset is classified as a current asset on the map on page 16.
4. For roads whose opening year is yet to be determined, there is no guarantee that they will actually be opened.
5. As of September 2, 2021, CRE REIT has not engaged in specific negotiations with the CRE Group companies regarding the pipeline, regardless of whether or not it has a preferential negotiation right on any property, nordoes it have any plan to acquire from the pipeline at the present time or guarantee future acquisition from the pipeline.
Page 20
1. With regard to the lease contract whose lease period will expire in the 17th fiscal period (ending December 31, 2024), as of August 26, 2021, the Asset Manager has concluded a memorandum on the conclusion of a fixedterm building lease reservation contract with the tenant and agreed to start discussions on the conclusion of the lease contract, and the rent in the memorandum is higher than the existing rent. However, there is no guaranteethat a lease contract can be actually concluded at that amount.
Page 21
1. The “Anticipated Borrowings” refers to the borrowings with the drawdown date of September 15, 2021, which are intended to be used for the acquisition of the anticipated asset and fund part of the payment of its incidental
expenses, etc.
2. This is the ratio of principal amount of borrowings from each financial institution and outstanding investment corporation bonds to total interest-bearing debt as of July 31, 2021.
3. Abbreviations are used for company names.
4. After acquisition of the anticipated asset. On an (anticipated) acquisition price basis.
5. The “Upper limit of green qualifying debt” is the amount obtained by multiplying the (anticipated) acquisition price of the properties that apply to Green qualifying assets among the current assets and the anticipated asset by
the LTV as of the end of the 10th fiscal period (ended June 30, 2021).
6. “Capacity to increase green qualifying debt” is calculated by the following formula.
Capacity to increase green qualifying debt = Upper limit of green qualifying debt – the balance of the green qualifying debt as of September 2, 2021 and Green Loans executed.
This amount is not a guarantee or promise that CRE REIT will be able to raise this amount or acquire properties by using the funds to be raised. Please refer to 「第二部 参照情報 第２ 参照書類の補完情報 １ 投資方針 ③
継続的な投資主価値向上に資する明確な成長戦略 (ホ) 返済期限の分散及び借入期間の長期化により安定的な財務運営を推進」 in the Securities Registration Statement for the Issue of New Investment Units dated September 2,2021 for the detail of the Anticipated Borrowings.
Page 22
1. Each of the figures in the “After the Anticipated Borrowings” is not based on the assumption that the CRE REIT will borrow at the maximum amount of the Anticipated Borrowings as of September 2, 2021, but is figure as of
September 15, 2021, based on the amount expected to be borrowed (10,400 million yen) if the issue amount is assumed to be 204,998 yen per unit, based on the regular trading closing price (216,700 yen) of CRE REIT’s
investment units on the Tokyo Stock Exchange as of August 20, 2021 (Friday). The amount and conditions of the Anticipated Borrowings are subject to change by the time of the Anticipated Borrowings, taking into accountthe proceeds from this offering and other circumstances, and all or part of any of the Anticipated Borrowings may not be performed. In addition, there may be cases where the borrowings that are assumed not to be made incalculating the respective figures after the Anticipated Borrowings will be made. Therefore, each figure after the Anticipated Borrowings may not necessarily match the actual figure as of September 15, 2021.
2. Average remaining time of interest-bearing debt is calculated as a weighted average of the remaining period of each interest-bearing debt (the period from September 15, 2021 to the repayment date or reimbursement date ofeach interest-bearing debt) based on the balance of each interest-bearing debt.
Page 23
1. “ESG” means the “Environment”, “Social” and “Governance”.
2. After acquisition of the anticipated asset. On an (anticipated) acquisition price basis.
3. CRE REIT leases the roof and the lessee installs solar panels to generate electricity, thereby creating natural energy.
4. The figures represent the amount of electricity consumption and energy production from the acquisition date to March 2021 for properties acquired after April 2020.
Page 26
1. As special resolution at a general meeting of unitholders is required for partial amendment of the Articles of Incorporation, the proposed revisions contemplated by CRE REIT and the Asset Manager may not be implemented.
Please refer to 「第二部 参照情報 第２ 参照書類の補完情報 ５ 本投資法人の規約の一部変更及び役員の選任に関する議案の提出」 in the Securities Registration Statement for the Issue of New Investment Units dated
September 2, 2021 for the detail of the proposals to be submitted to the general meeting of unitholders of CRE REIT.
2. The figures in “After Revision” are provisional calculation of the ratio of management fee 1 and management fee 2 based on the financial results of CRE REIT for the 10th fiscal period (ended June 30, 2021), assuming thatthe revised asset management fee structure is applied to the 10th fiscal period (ended June 30, 2021) based on the proposed changes to the asset management fee system to be submitted to the general meeting ofunitholders of CRE REIT. Since the proposed changes to the asset management fee structure to be submitted to the general meeting of unitholders of CRE REIT will be applied from the 12th fiscal period (ending June 30,2022), the actual asset management fee for the 10th fiscal period (ended June 30, 2021) will be paid based on the asset management fee structure before such changes.
Page 29
1. “Appraisal NOI yield” is the ratio of the appraisal NOI (based on the relevant real estate appraisal report with valuation dated as of June 30, 2021 for the current assets and as of July 31, 2021 for the anticipated asset) of eachcurrent asset or the anticipated asset to the (anticipated) acquisition price of each current asset or the anticipated asset, rounded to the first decimal place as a percentage. “Average Appraisal NOI Yield” is the ratio of thetotal appraisal NOI of each current asset or the anticipated asset to the total (anticipated) acquisition price of each current asset or the anticipated asset, rounded to the first decimal place as a percentage. (Average) appraisal
NOI yield is the figure calculated by the Asset Manager and is not the figure stated in the real estate appraisal report. In addition, the figure may differ from the actual figure after the acquisition of the anticipated asset by CRE
REIT.

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Notes
2. “Total floor area” is the total floor space indicated in the real estate registry for each property. In addition, “total floor area” includes total floor area of the annex building.
3. “Age” is the number of years from the date of construction in the real estate registry for each property to July 31, 2021, rounded to the first decimal place. “Average age” is the weighted average of the age of the current
assets or to be acquired weighted by the (anticipated) acquisition price, and rounded to the first decimal place.
4. “Number of tenants” is the number of tenants (provided that, in the event that a master lease agreement has been executed or is anticipated to be executed for any current asset or the anticipated asset, the total number ofend tenants is indicated for an asset with a pass-through master lease, and the number of tenants is indicated for an assets with a fixed-rent master lease, with the master lease company as the tenant; provided, further, thateven where an end-tenant has a third party sharing with it or sub-leases a part of the plot to a third party, no such third party is included in the number of tenants) as of July 31, 2021.
5. “Occupancy ratio” is the ratio of the leased area** to the leasable area* of the property as of July 31, 2021, expressed as a percentage and rounded to the first decimal place. “Average occupancy ratio” is the ratio of the totalleased area** to the total leasable area*, expressed as a percentage and rounded to the first decimal place.
* “Leasable area” is the area that is considered to be leasable based on the respective lease agreements or building plans for each property.
** “Leased area” is the sum of the leased area indicated in each lease agreement for each property. In addition, where a pass-through master lease agreement has been concluded or is anticipated to be concluded for a current
asset or the anticipated asset, the total area indicated in the lease agreement with the end-tenant.
6. “CRE” in the “Developer” column includes special purpose companies in which CRE has invested (including, but are not limited to, investments in anonymous associations), and Commercial RE Co., Ltd.
7. LogiSquare Kawagoe II has two buildings, and the total floor area is the sum of total floor areas indicated in the real estate registries of the two buildings. The age is based on the real estate registry of the building with thelarger total floor area of the two buildings.

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1. “Average appraisal NOI yield after depreciation” is the ratio of (x) the sum of the appraisal NOI of each current asset or the anticipated asset minus the estimated amount of depreciation to (y) the total (anticipated) acquisition
price of each current asset or the anticipated asset, rounded to the first decimal place, expressed as a percentage.
Average appraisal NOI yield after depreciation of the anticipated asset is calculated by the Asset Manager and not included in any real estate appraisal report. In addition, the actual amount after the acquisition of the
anticipated asset by CRE REIT may be different.
2. “Average lease term” is calculated by averaging the lease contract terms (the lease contract terms for assets as of July 31, 2021 (weighted by leased area, in the case of multiple lease contracts) stipulated in the lease
contracts of the current assets by CRE REIT or the anticipated asset, weighted by (anticipated) acquisition price, rounded to the first decimal place. Where a pass-through master lease agreement has been concluded or isanticipated to be concluded for any current asset or the anticipated asset, the contract term is the contract term of the lease agreement concluded with the end-tenant. In addition, “lease term” of the anticipated asset is thelease contract term stipulated in the lease contract of the anticipated asset.
3. “Average remaining lease term” is calculated by averaging the remaining lease term (the term from July 31, 2021 to the expiration date of the lease contract stipulated in the respective lease contract for each current asset or
the anticipated asset (or the lease agreement concluded with the end-tenant, where a pass-through master lease agreement has been concluded or is anticipated to be concluded for the current assets or the anticipatedasset) as of July 31, 2021. However, if the start date of the lease contract stipulated in the relevant lease contract is on or after August 1, 2021, the start date of the lease contract is used as the starting point. In addition, incase where there are multiple lease contracts, the period is the weighted average based on lease area) of the current assets of CRE REIT or to be acquired, weighted by (anticipated) acquisition price, rounded to the firstdecimal place. In addition, “remaining lease term” of the anticipated asset is the remaining lease contract term stipulated in the lease contract of the anticipated asset.
4. “Ratio of properties developed by CRE” refers to the ratio of assets developed by CRE, special purpose companies in which CRE has invested (including, but are not limited to, investments in anonymous associations), or
Commercial RE Co., Ltd. to the total assets owned (including the anticipated asset, after the acquisition of the asset to be acquired) as of each indicated point of time.
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1. “Tokyo Metropolitan Area” includes Tokyo, Kanagawa, Chiba, Saitama, Ibaraki, Tochigi, Gunma and Yamanashi Prefecture.
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1. As of July 31, 2020, for companies that have concluded lease contracts with CRE directly and past performance of PM companies focusing on logistics facilities that have concluded lease contracts with CRE directly, and asof April 30, 2021 for the others. Prepared by the Asset Manager based on the material provided by CRE. In addition, each figure includes results under property management and master leases with respect to real estateagreements for properties other than logistics-related facilities.
2. The occupancy rate of a logistics property for which CRE is the master lessee is the ratio of the total leased area** to the total leasable area* as of the April 30, 2021, rounded to the first decimal place, expressed as apercentage.
* “Leasable area” is the area that is considered to be leasable based on the respective lease agreements or building plans for each property as of April 30, 2021.
** “Leased area” is the sum of the leased area indicated in each lease agreement for each property as of April 30, 2021.
3. The figure in “PM entrusted by other companies” is the ratio of the area managed by CRE, excluding the area related to the area entrusted by CRE REIT and the area related to the properties in which CRE is involved as amaster lessee, which means the management area related to the area entrusted by other listed REITs and private funds, etc., to total area managed by CRE.
4. “Suitable properties for REIT” refers to the properties which CRE REIT considers to be suitable for securitization and trust establishment, are versatile, and meet basic specifications.
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1. After acquisition of asset. On an (anticipated) acquisition price basis.

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