Financial Results for the Fiscal Period Ended July 31, 2024 (REIT)

September 17, 2024
Tokyo Stock Exchange
https://www.mflp-r.co.jp/en/

REIT Securities Issuer
Securities Code
Representative

Mitsui Fudosan Logistics Park Inc.
3471
Hiroshi Asai, Executive Director

Stock Exchange Listing
WebsiteAsset Management Company
Representative
Inquiries

Mitsui Fudosan Logistics REIT Management Co., Ltd.
Shinobu Sakanoshita, President and Chief Executive Officer
Kenji Yamamoto, Director & General Manager of Finance DivisionTel.
+81-3-6327-5160

Scheduled date of submission of securities report:
Scheduled date of commencement of distribution payout:

October 24, 2024
October 18, 2024

Supplementary materials for financial results:
Holding investor presentation for financial results:

Yes
None
(Amounts less than ¥1 million have been rounded down)

1. Financial Results for the Fiscal Period Ended July 31, 2024 (February 1, 2024 to July 31, 2024)(1) Results of Operations(% figures denote rate of period-on-period change)
Operating revenues

Operating income

Millions of yen%

Ordinary income

Millions of yen%

Net income

Millions of yen%

Millions of yen%

Fiscal period ended
July 31, 2024

12,413

4.8

4,821

1.7

4,360

(1.1)

4,359

(1.1)

Fiscal period ended
January 31, 2024

11,845

3.2

4,738

2.9

4,407

3.4

4,405

3.4

Net income per unit

Return on unitholders’ equity

Ratio of ordinary income tototal assets

Ratio of ordinary income tooperating revenues

%

%

%

Yen
Fiscal period ended
July 31, 2024

7,170

2.0

1.2

35.1

Fiscal period ended
January 31, 2024

7,264

2.1

1.2

37.2

(2) Distributions
Total amount of
Total amount ofDistributions perDistributions per
distributions
Total amount of
distributions
unit (excluding
Distributions inunit (including(excluding
distributions in(including
distributions inexcess of
distributions in
distributions inexcess of
distributions inexcess ofretainedexcess ofexcess ofretainedexcess ofretainedearnings per unit
retainedretainedearnings
retainedearnings)
earnings)
earnings)
earnings)
Yen

Millions of yen

Yen

Millions of yen

Yen

Payoutratio

Ratio ofdistributions
to net assets%%

Millions of yen

Fiscal period ended
July 31, 2024

7,170

4,359

2,044

1,242

9,214

5,602

100.0

2.0

Fiscal period ended
January 31, 2024

7,247

4,406

1,651

1,003

8,898

5,409

100.0

2.0

Notes:
1. Due to the issuance of new investment units, the payout ratio for the fiscal period ended January 31, 2024 is calculated using thefollowing formula and rounded to the first decimal place.
Payout ratio = Total amount of distributions (excluding distributions in excess of retained earnings) ÷ Net income × 100
2. Of distributions in excess of retained earnings for the fiscal period ended January 31, 2024, allowance for temporary difference
adjustments is ¥22 million, and return of capital applicable to distribution reducing unitholders’ capital for tax purposes is ¥981
million.
Of distributions in excess of retained earnings for the fiscal period ended July 31, 2024, allowance for temporary difference
adjustments is ¥28 million, and return of capital applicable to distribution reducing unitholders’ capital for tax purposes is ¥1,214
million.
3. The ratio of decreasing surplus attributable to distributions in excess of retained earnings (return of capital applicable to distribution
reducing unitholders’ capital for tax purposes) for the fiscal period ended July 31, 2024 and the fiscal period ended January 31,
2024 is 0.006 and 0.005, respectively. This calculation is based on Article 23, Paragraph 1, Item 4 of the Order for Enforcement of
the Corporation Tax Act.

(3) Financial Position
Total assets

Ratio of unitholders’ equity tototal assets

Net assets

Net assets per unit

Millions of yen

Millions of yen

Fiscal period ended
July 31, 2024%

Yen

386,162

216,730

56.1

356,465

Fiscal period ended
January 31, 2024

361,107

217,78160.3

358,192

Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents(4) Cash Flows
Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal period ended
July 31, 2024

6,651

(27,096)

19,9898,619

Fiscal period ended
January 31, 2024

9,110

(13,790)

5,797

9,075

2. Forecast for the Fiscal Period Ending October 31, 2024 (August 1, 2024 to October 31, 2024)(% figures denote rate of period-on-period change)

Fiscal period ending
October 31, 2024

Operating revenues

Operating income

Ordinary income

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

6,408

–

2,311

–

2,065

–

2,064

Distributions
Distributions
per unit
Distributions
per unit(excluding
in excess of(including
distributions
retained
distributions
in excess of earnings per in excess ofretained
unit
retainedearnings)
earnings)

Net income

%
–

Yen
3,396

Yen
1,261

Yen
4,657

(Reference) Expected net income per unit (Expected net income/Expected number of investment units at the end of the fiscal period)
For the fiscal period ending October 31, 2024: ¥3,396
Notes:
1. Each of Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”) and Advance Logistics Investment Corporation (“ADL”; MFLP-REIT
and ADL are collectively referred to as “Each REIT”), has resolved at Each REIT’s Board of Directors’ Meeting held on August 5,2024, to undertake an absorption-type merger, with November 1, 2024 as the effective date, whereby MFLP-REIT will be thesurviving corporation and ADL will be the dissolving corporation in the merger (the “Merger”), and have also executed a merger
agreement (the “Merger Agreement”) on August 5, 2024. For the operating results forecast for the fiscal period ending July 31, 2025
(November 1, 2024 to July 31, 2025) and the fiscal period ending January 31, 2026 (August 1, 2025 to January 31, 2026) after the
Merger, please refer to the press release “Notice Concerning Disclosure of Operating Results Forecasts for the Fiscal Period Ending
July 31, 2025 and the Fiscal Period Ending January 31, 2026, Following the Merger of Mitsui Fudosan Logistics Park Inc. andAdvance Logistics Investment Corporation” dated August 5, 2024 by Each REIT. For an overview of the Merger, please refer to “1.
Results of Operations (1) Results of Operations (Outlook for the fiscal period ending October 31, 2024) ii) Significant subsequent
events Execution of the merger agreement between MFLP-REIT and ADL” on page 4.
2. Subject to the condition that the Merger takes effect, MFLP-REIT plans to submit a proposal at its general meeting of unitholders
to be held on September 30, 2024, to amend the Articles of Incorporation to change the current 17th fiscal period from August 1,
2024 to January 31, 2025 to the period from August 1, 2024 to October 31, 2024, and to change the current 18th fiscal period to theperiod from November 1, 2024 to July 31, 2025. If the proposal for the aforementioned change is approved in the general meetingof unitholders, the last fiscal period of MFLP-REIT before the effective date of the Merger is expected to be a three-month period
from August 1, 2024 to October 31, 2024 as the 17th fiscal period and the first period of MFLP-REIT after the effective date of the
Merger is expected to be a nine-month period from November 1, 2024 to July 31, 2025 as the 18th fiscal period. The 19th fiscal
period and subsequent fiscal periods will be from February 1 to July 31 and from August 1 to January 31 of the following year,
respectively. Therefore, the above shows the operating results forecast for the 17th fiscal period after the aforementioned change(fiscal period ending October 31, 2024: August 1, 2024 to October 31, 2024).
3. As described in (Note 2), the above shows the operating results forecast for the fiscal period ending October 31, 2024 (three months),
which is the fiscal period after the amendments to the Articles of Incorporation that are subject to the condition that the Merger takes
effect. Since the number of calendar months in the fiscal period is different from that in the previous period, the fiscal period ended
July 31, 2024 (February 1, 2024 to July 31, 2024; six months), the period-on-period change is not stated.
 Other(1) Changes in accounting policies, changes in accounting estimates, or retrospective restatements(i) Changes in accounting policies due to revisions to accounting standards, etc.:
None(ii) Changes in accounting policies other than (i) above:None(iii) Changes in accounting estimates:None(iv) Retrospective restatements:
None(2) Total number of investment units issued and outstanding(i) Total number of investment units issued and outstanding at the end of the fiscal period (including treasury units)
Fiscal period ended July 31, 2024
608,000 units
Fiscal period ended January 31, 2024
608,000 units(ii) Number of treasury units at the end of the fiscal period
Fiscal period ended July 31, 2024
0 units
Fiscal period ended January 31, 2024
0 units
Note:
Please refer to “Notes to Per Unit Information” on page 30 for the number of investment units used as the basis forcalculating net income per unit.
 Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
 Special notes
Forecasts of financial results and other forward-looking statements contained in this material are based on information currently
available to and certain assumptions deemed reasonable by Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”). Actual operating
performance, etc. may differ significantly from these forecasts due to a variety of factors. Furthermore, these forecasts do notguarantee the above distribution amounts.
For details of assumptions for the above forecast figures, please refer to “Forecast Assumptions for the Fiscal Period Ending
October 31, 2024 (August 1, 2024 to October 31, 2024)” described on page 11.

Table of contents
1. Results of Operations ................................................................................................................................... 2(1) Results of Operations ............................................................................................................................. 2(Summary of results for the reporting period) ....................................................................................... 2(Outlook for the fiscal period ending October 31, 2024) ....................................................................... 3(2) Investment Risk .................................................................................................................................... 13
2. Financial Statements .................................................................................................................................. 14(1) Balance Sheets ..................................................................................................................................... 14(2) Statements of Income ........................................................................................................................... 16(3) Statements of Changes in Net Assets ................................................................................................... 17(4) Statements of Cash Distributions ......................................................................................................... 19(5) Statements of Cash Flows .................................................................................................................... 22(6) Notes to Going Concern Assumption ................................................................................................... 24(7) Notes to Significant Accounting Policies ............................................................................................. 24(8) Notes to Financial Statements .............................................................................................................. 25(9) Changes in Total Number of Investment Units Issued and Outstanding.............................................. 37
3. Reference Information ............................................................................................................................... 39(1) Status of Investment ............................................................................................................................. 39(2) Investment Assets................................................................................................................................. 39i)

Major investment securities ......................................................................................................... 39ii)

Investment properties .................................................................................................................. 39iii) Other major investment assets ..................................................................................................... 40
(A)
(B)
(C)
(D)

Summary of the assets held ................................................................................................. 40
Summary of lease ................................................................................................................ 44
Capital expenditures of real estate held............................................................................... 50
Status of individual asset earnings ...................................................................................... 52

- 1 -

1.

Results of Operations(1)

Results of Operations(Summary of results for the reporting period)i) Brief history of the investment corporation
MFLP-REIT, a Japanese real estate investment corporation, was established on March 4, 2016 under the Act on Investment
Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent amendments; the “Investment TrustAct”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management Company”) as the organizer, andlisted on the Real Estate Investment Trust Securities Market (“J-REIT section”) of Tokyo Stock Exchange, Inc. (“Tokyo
Stock Exchange”) on August 2, 2016 (Securities Code: 3471). MFLP-REIT held assets totaling 30 properties amounting to a
total acquisition price of ¥399.7 billion as at the end of the fiscal period under review.

ii) Investment environment and management performance
Looking at the Japanese economy, despite slightly weak private consumption partly impacted by rising prices, a modest
recovery trend continued on the whole, with growing corporate activity, a gradual upward trend of capital investment, and amild recovery in the employment and income environments partly due to a continued increase in wages. On the other hand,as there are also uncertainties in trends of the financial and foreign exchange markets, overseas economic and price trends,
resource price trends, companies’ behavior of setting wages and prices, etc., these developments deserve careful attention.
As for the logistics market, in the environment surrounding the leasing market for logistics facilities, the development oflogistics facilities continued to expand until last year, with the supply of facilities in the Tokyo metropolitan area reaching arecord high. However, due mainly to intensified competition for land for development, soaring material prices caused byrecent inflation, and increased labor costs, the development cost of logistics facilities has increased significantly, which
seems to put a brake on supply. On the other hand, solid demand continued with the expansion of the 3PL business (Note)
specializing in outsourced logistics services, and the e-commerce market. In addition, as retailers such as convenience storesand drugstores seek to improve the efficiency of their logistics operations, demand for advanced logistics facilities isincreasing. As a result, demand is expected to continue to show an expanding trend.
Under such circumstances, upholding a basic policy of pursuing maximization of unitholder value by achieving sustainablegrowth through formation of a strategic partnership in the logistics facilities business with Mitsui Fudosan Co., Ltd. (“Mitsui
Fudosan”), MFLP-REIT has conducted steady management of the 30 properties held as at the end of the fiscal period underreview (total acquisition price of ¥399.7 billion) to maintain an excellent occupancy rate of 100.0% for the entire portfolio asat the end of the fiscal period under review.
MFLP-REIT is promoting initiatives for ESG. In line with the “ESG (Environment, Society, Governance) Policy” of theAsset Management Company, MFLP-REIT is promoting initiatives for ESG. These include efforts to reduce environmental
burden through its operations, such as operations of logistics facilities and efforts to contribute to local communities,
employees and other stakeholders.
Note:“3PL business” refers to the third-party logistics business (business of providing logistics services to client companies outsourcing part or all of their
supply chain management functions).

iii) Overview of financing
In the fiscal period under review, to repay ¥6,600 million of long-term loans payable which became due during the period,
MFLP-REIT executed debt financing of the same amount. Furthermore, upon the acquisition of MFLP Hiratsuka III, MFLP
Shinkiba I, SG Realty MFLP Fukuoka Kasuya and MFLP Tomei Ayase, etc., MFLP-REIT newly executed debt financing of
long-term loans payable of ¥24,000 million and short-term loans payable of ¥9,000 million, and executed repayments ofshort-term loans payable of ¥7,600 million during the period. As a result, at the end of the fiscal period under review, thebalance of interest-bearing debt was ¥156,700 million (short-term loans payable of ¥2,000 million; current portion of longterm loans payable of ¥6,600 million; investment corporation bonds of ¥5,000 million; long-term loans payable of ¥143,100
million) and the ratio of interest-bearing debt to total assets (LTV ratio) was 40.6%.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.
Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA

Stableiv) Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating
revenues of ¥12,413 million, operating income of ¥4,821 million, ordinary income of ¥4,360 million, and net income of¥4,359 million.
In accordance with the distribution policy as defined in the Articles of Incorporation of MFLP-REIT, distributions for the
fiscal period under review shall be subject to application of special provisions for taxation of investment corporations (Article
67-15 of the Act on Special Measures Concerning Taxation). Based on this, MFLP-REIT declared the distribution of¥4,359,360,000, which is the integral multiple of the total number of investment units issued and outstanding (608,000 units)of unappropriated retained earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of ¥7,170.

- 2 -In addition, in accordance with the distribution policy as defined in the Articles of Incorporation, MFLP-REIT shall execute
distributions of cash in excess of retained earnings each fiscal period on a continuous basis in principle (Note 1). Based on
this, MFLP-REIT declared the distribution of ¥1,229 million, which is the amount almost equivalent to the remaining amountafter subtracting the distribution of earnings of ¥4,359 million from ¥5,589 million or 73% of FFO (Note 2), as return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes and allowance for temporary difference
adjustments. In addition, due to a temporary decrease in distribution per unit resulting from expenditures of merger-related
expenses during the fiscal period under review, MFLP-REIT decided to distribute ¥13 million as a temporary distribution of
cash in excess of retained earnings (return of capital applicable to distribution reducing unitholders’ capital for tax purposes).
As a result, MFLP-REIT declared distribution in excess of retained earnings per unit of ¥2,044.
Notes:
1.

In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution per unit isexpected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units,etc., a temporary distribution in excess of retained earnings may be executed by MFLP-REIT in order to standardize the amount of the
distribution per unit.
However, from the perspective of continuing to maintain owned assets for a long period of time, in cases where the above distribution of cash is
executed, and where the amount equal to the equivalent of depreciation and amortization for the applicable operating period minus the amount of
the distribution in excess of retained earnings for the applicable operating period falls below the standard amount of capital for building
maintenance (Note 3), the distribution in excess of retained earnings will be decreased by a maximum amount that the distribution amount does
not fall below the total equivalent of the distribution of earnings, and this may lead to cases where distribution in excess of retained earnings will
not be executed.
In addition, from the perspective of continuing stable financial management, distributions in excess of retained earnings will not be executed incases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.

2.

“FFO” is an acronym for funds from operations and refers to the figure calculated by adding depreciation and amortization of rental properties forthe applicable operating period and loss on retirement of non-current assets to net income (excluding gain (loss) on sales of real estate properties,etc.).

3.

“Standard amount of capital for building maintenance” refers to the amount that results by multiplying the six-month-equivalent amount of the
12-year-average amount of the amount equivalent to the capital expenditure amount noted in the Building Condition Evaluation Report by two.

4.

Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value after depreciation of owned real estateon the applicable accounts settlement date + Appraisal value of owned real estate on the applicable accounts settlement date

(Outlook for the fiscal period ending October 31, 2024)
i) Future management policy and issues to be addressed
MFLP-REIT has established a strategic and collaborative partnership in the logistics facilities business with Mitsui Fudosan,
under which it seeks to maximize unitholder value by focusing investments primarily in logistics facilities as a basic policy.
Based on this policy, in addition to expansion of asset size for the purpose of further stabilizing the revenues base continuing
into future periods, MFLP-REIT will perform stable and efficient financial management by addressing changes in theexternal and internal environment to maximize unitholder value.
(A)

External growth strategy“External growth based on the growth potential and extensive pipeline of Mitsui Fudosan’s logistics facilities business”
MFLP-REIT aims for continuous growth by focusing investments on MFLP facilities (leading-edge logistics facilities
with Mitsui Fudosan quality (Note 1)), utilizing the right of first look and preferential negotiation based on “Right offirst look and preferential negotiation agreement” that was concluded with Mitsui Fudosan, which boasts high growthin the logistics facilities business, and the Asset Management Company.
Notes:(B)

1.

Based on the principles of “harmonious coexistence” and “linking diverse values” set by the Mitsui Fudosan Group (Note 2), Mitsui
Fudosan’s logistics facilities business keeps up efforts aimed at not only providing logistics facilities space but also creating value beyond
conventional boundaries. In order to achieve this, MFLP-REIT incorporates the highly-specialized and advanced management, operational
know-how, etc. accumulated in the office building business, retail properties business, etc. and the know-how, etc. accumulated throughurban development as a comprehensive real estate company. It also captures the diverse needs that change with the times of the various
stakeholders associated with logistics facilities (tenants, people working at the logistics facilities, and local community). MFLP-REIT
refers to the quality of logistics facilities realized through these efforts by the name “Mitsui Fudosan quality.”2.

“Mitsui Fudosan Group” refers to a corporate group comprising Mitsui Fudosan, and Mitsui Fudosan’s consolidated subsidiaries and
Mitsui Fudosan’s associates accounted for using the equity method. The same shall apply hereinafter.

Internal growth strategy“Stable management utilizing the Platform (business foundation) and client network of the Mitsui Fudosan Group”
MFLP-REIT aims for stable management by utilizing the Platform (business foundation) and client network that the
Mitsui Fudosan Group has developed over years as a comprehensive real estate company.

(C)

Financial strategy“Financial and cash management with an emphasis on stability and efficiency”
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units andborrowings, and at the same time it will aim to secure both stable distribution levels and efficient cash management for- 3 -distributions through continuous distributions in excess of retained earnings (return of capital) based on cash flow(FFO).
ii) Significant subsequent events
Execution of the merger agreement between MFLP-REIT and ADL
Each REIT decided to conduct the Merger at their respective Board of Directors’ Meeting held on August 5, 2024, as
described below, and executed the Merger Agreement as of August 5, 2024.
(A) Purpose of the Merger
Looking at the Japanese economy, while being impacted by the sluggish pace of recovery of the global economy, its
growth in exports and corporate activity has contributed to a gentle recovery trend since the convergence of the novel
coronavirus disease (COVID-19). On the other hand, although the Bank of Japan has been normalizing its monetary
policy as economic and social activities recover, in the foreign exchange market, the yen has been weakening against the
backdrop of widening real interest rate differentials, and the current market environment remains uncertain due to
inflation, currency depreciation, and concerns about rising interest rates. In such environment, the current J-REIT marketof Tokyo Stock Exchange continues to be unstable, due to concerns about the ability to cope with inflation, such as rent
increases, and rising long-term interest rates.
Each REIT has managed their properties by taking advantage of their respective characteristics, aiming to secure stableearnings and steady growth of assets under management over the medium to long term. At the same time, however, they
are aware of common challenges. In other words, Each REIT recognizes the issues that expected yields on advanced
logistics facilities, the main investment targets, remain low due to their scarcity and high liquidity, and that opportunities
for large-scale property acquisitions through public offerings are limited, coupled with deteriorating J-REIT market
conditions against a backdrop of concerns over rising interest rates due to changes in the Bank of Japan’s monetary
policy.
Under these circumstances, MFLP-REIT and ADL have agreed to begin discussions regarding the Merger in March
2024, and have carefully considered the Merger, as a measure to address these issues and to contribute to the continuous
growth of unitholder value in respect of each of MFLP-REIT and ADL. As a results, Each REIT reached the common
understanding that the Merger is the best measure to contribute to the growth of unitholder value in respect of each of
MFLP-REIT and ADL and entered into the Merger Agreement on August 5, 2024. Each REIT considers that the Merger
has the following rationale:(i) Expanded asset size to elevate market presence
As a result of the Merger, the asset size after the Merger (Note) will increase to 49 properties and ¥576.5 billion((anticipated) acquisition price basis), and its presence in the J-REIT market will be enhanced. Furthermore,investment unit liquidity will be improved due to the expansion of asset size. While the J-REIT market is currently
in a slump, making external growth difficult, the Merger will realize rapid expansion of the asset size and achieve
MFLP’s medium-term asset size target of ¥500 billion. We will continue to aim for continuous external growth that
contributes to the enhancement of unitholder value and aim for sustainable growth as a representative of dedicatedlogistics J-REIT.
Note:
MFLP is scheduled to acquire three properties (total anticipated acquisition price: ¥10,763 million) on November 1, 2024, the effective
date of the Merger, subject to the Merger taking effect. The above asset size is the figure after the acquisition of the said assets.

(ii) Better stability resulting from advances in portfolio diversification
With the expansion of the number of properties through the Merger, portfolio diversification will progress, andincome stability will improve. After the Merger, the top 5 property ratio ((anticipated) acquisition price basis) will
decrease from MFLP-REIT 34.7% and ADL 72.9% to 30.3% and the top 5 tenant ratio (leased area basis) will also
remain low from MFLP-REIT 27.4% and ADL 70.7% to 29.8% due to the Merger, thus improving the stability ofincome.
(iii) Dual sponsorship structure with comprehensive developer and general trading company
Sponsor support will be strengthened by the dual sponsorship structure consisting of Mitsui Fudosan, acomprehensive developer, and ITOCHU Group, a general trading company. We will maintain our focus on quality
by incorporating, through the Merger, the dual brands of Mitsui Fudosan Logistics Park and i Missions Park, which
denote advanced logistics facilities, and aim to enhance unitholder value by external and internal growth throughfurther strengthening of property pipeline supply capability and leasing capability by maximally leveraging bothsponsors’ platforms and networks.

- 4 -(B) Effective date of the Merger
November 1, 2024 (scheduled)(C) Form of the Merger
MFLP-REIT will be the surviving corporation under an absorption-type merger (kyushu gappei) and ADL will bedissolved in the Merger.
(D) Allocation of investment units under the Merger
MFLP-REIT(Surviving corporation in the absorption-typemerger)ADL(Dissolving corporation in the absorptiontype merger)

1(Reference)
Before the Split of Investment Units
0.292

1.168
Allocation of investment units under the
MergerNotes:
1.

The number of new MFLP-REIT investment units to be issued as a result of the Merger: 787,699 units (planned)

2.

MFLP-REIT plans to split one investment unit into four investment units with October 31, 2024 as the record date for the split ofinvestment units and November 1, 2024 as the effective date of the split (the “Split of Investment Units”); the merger ratio shown
above and the number of the new Investment units MFLP-REIT will allocate and deliver are subject to the Split of Investment Units
taking effect. The merger ratio before considering the Split of Investment Units would be MFLP-REIT 1: ADL 0.292.

3.

Fractions of less than one unit will be generated for the number of investment units to be allotted to the unitholders of ADL throughthe allotment of 1.168 units of MFLP-REIT per unit of ADL. These fractional units will be sold through a market transaction inaccordance with statutory provisions, and the proceeds from the sale will be delivered to the unitholders who hold fractions, in
proportion to the size of their fractional holding.

(E) Split of investment units
MFLP-REIT plans to split one investment unit into four investment units with October 31, 2024 as the record date forthe split of investment units and November 1, 2024 as the effective date of the split; the merger ratio shown above andthe number of the new investment units MFLP-REIT will allocate and deliver are subject to the Split of Investment Units
taking effect.
The Merger will be performed by way of an absorption-type merger with MFLP-REIT as the surviving corporation, andthe merger ratio before considering the Split of Investment Units would be MFLP-REIT 1: ADL 0.292. However, withthis merger ratio, 0.292 MFLP-REIT investment units will be allotted to every ADL investment unit, resulting in a large
number of ADL unitholders that will receive MFLP-REIT investment units of less than one unit. For this reason, in orderto enable the ADL unitholders to continue to hold MFLP-REIT investment units after the Merger, we decided to split
MFLP-REIT investment units at a ratio of four investment units per one investment unit, for the purpose of providing atleast one MFLP-REIT investment unit to all ADL unitholders. As a result of the Split of Investment Units, ADL
unitholders will be allotted 1.168 MFLP-REIT investment units after the Split of Investment Units for each ADL
investment unit as described in (D) above.
Number of investment units to be increased by the Split of Investment Units is as follows:(i) Total number of outstanding investment units before the Split of
608,000 units
Investment Units(ii) Number of investment units to be increased by the Split of Investment 1,824,000 units
Units(iii) Total number of outstanding investment units after the Split of
2,432,000 units
Investment Units(iv) Total number of outstanding MFLP-REIT investment units after the 3,219,699 units (Note 1)
Merger(v) Total number of authorized investment units after the Split of
32,000,000 units (Note 2)
Investment Units and the Merger
Notes:
1.

The number under the assumption that, in connection with the Merger, 1.168 MFLP-REIT investment units following theSplit of Investment Unit would be allocated to every ADL investment unit with respect to all outstanding ADL investment
units (674,400 units) as of the date of this document.

2.

The current total number of authorized MFLP-REIT investment units is 8,000,000 units. However, in connection with theSplit of Investment Units, the Articles of Incorporation of MFLP-REIT will be partially amended, and the total number ofauthorized investment units will be changed as of the effective date of the Merger.

- 5 -(F) Impact on per unit information for MFLP-REIT
The per-unit information for the fiscal period under review, assuming that the split of investment units had been
implemented at the beginning of the fiscal period under review, is as follows:(i) Net assets per unit:(ii) Net income per unit:¥89,116¥1,792(G) Payment upon the Merger
Instead of cash distributions to the unitholders of ADL for ADL’s final fiscal period ending on the day immediately prior
to the effective date of the Merger, MFLP-REIT will, within a reasonable period after the effective date of the Merger,
make a cash distribution to the unitholders listed or recorded on the final unitholders register of ADL as of the day
immediately prior to the effective date of the Merger (excluding the unitholders of ADL who have demanded thepurchase of their investment units pursuant to the provisions of Article 149-3 of the Investment Trust Act (excluding
unitholders who have withdrawn such demand for purchase)) (the “Allotted Unitholders”), in an amount equivalent tothe cash distributions for the fiscal period (the payment will be the amount of distributable profit of ADL as of the day
immediately prior to the effective date of the Merger divided by the number of investment units that is obtained bydeducting (a) the number of investment units held by the unitholders other than the Allotted Unitholders from (b) the
number of investment units issued and outstanding of ADL, as of the day immediately prior to the effective date of the
Merger (such calculated amount being rounded down to the nearest whole yen)).
(H) Summary of the immediately preceding fiscal period (ended February 2024) of the dissolving corporation in theabsorption-type merger (ADL)
Description of business
Operating revenues
Net income
AssetsLiabilities
Net assets

To invest assets mainly in the specified assets as defined in the Investment Trust Act¥3,728 million¥1,661 million¥135,180 million¥60,873 million¥74,307 million

Reference Information(A) Execution of an absorption-type company split agreement by the Asset Management Company
Concurrently with the Merger, the Asset Management Company and ITOCHU REIT Management Co., Ltd.
(“IRM”), the asset management company to which ADL entrusts its asset management, at the Board of Directors’Meeting held on August 5, 2024, respectively resolved to undertake an absorption-type company split, with
November 1, 2024 as the effective date of the absorption-type company split, whereby the Asset Management
Company that is to be the successor company in the absorption-type company split will take over the asset
management business related to logistics facilities etc., which is entrusted to IRM by ADL, from IRM that is to be
the splitting company in the absorption-type company split (the “Company Split”), and the Asset Management
Company and IRM entered into an absorption-type company split agreement on August 5, 2024.
As a result of the Merger and the Company Split, IRM will become a shareholder of the Asset Management
Company (holding 23% of the voting rights), the Asset Management Company will be entrusted by MFLP-REIT(MFLP-REIT after the Merger between MFLP-REIT and ADL) to manage assets.
(B) Partial amendments to the Articles of Incorporation of MFLP-REIT
MFLP-REIT plans to propose partial amendments to the Articles of Incorporation at the general meeting ofunitholders scheduled to be held on September 30, 2024 (the “General Meeting of Unitholders”).
<Planned partial amendments to the Articles of Incorporation>(The underlined sections indicate amendments.)
Current Articles of Incorporation
Article 6

Proposed Amendments(Total Number of Issuable Investment Units)

1. The total number of issuable investment units of MFLPREIT shall be 8 million units.
2 - 3.
Article 29(Omitted)

Article 6

1. The total number of issuable investment units of MFLPREIT shall be 32 million units.
2 - 3.

(Types, Purposes, and Scope of Assets Targeted for
Asset Management)(Total Number of Issuable Investment Units)

Article 29(Unchanged)(Types, Purposes, and Scope of Assets Targeted for
Asset Management)

1 - 2.

(Omitted)

1 - 2.

(Unchanged)

3.

(Omitted)

3.

(Unchanged)(1) - (11)(Omitted)(1) - (11)(New)(12) Investments set forth under the Shinkin Bank Act- 6 -(Unchanged)

Current Articles of Incorporation

Proposed Amendments(12) Other rights that may be necessary or useful to acquire inconnection with investments in real estate-related assets.

(13) Other rights that may be necessary or useful to acquire inconnection with investments in real estate-related assets.

4 - 5.

(Omitted)

Article 34

4 - 5.

(Settlement Date)

The operating period of MFLP-REIT shall be from February 1 toJuly 31 of each year, and from August 1 to January 31 of thefollowing year (the last day of each operating period shall bereferred to as “Settlement Date”).

Article 37
1.

(Standards for Payment of Asset Management Fees
to the Asset Management Company)(Omitted)(1)

Article 37
1.

Asset Management Fee Ⅰ(2)Asset Management Fee III- 7 -Asset Management Fee II
For each operating period of MFLP-REIT, AssetManagement Fee II shall be the amount equivalent to therate (rounded down to the nearest one yen, and zero yen
in case of negative value) which is separately agreed
upon between MFLP-REIT and the Asset Management
Company, which shall not exceed 5.5% of the operating
income (provided, the amount after adding amortizationof goodwill) before deducting Asset Management Fees I,
II and III, and nondeductible consumption taxes anddepreciation on these Management Fees, calculated ateach Settlement Date of such operating period of MFLPREIT (“relevant Settlement Date”).

(3)

For each operating period of MFLP-REIT, Asset

Asset Management Fee Ⅰ
For each operating period of MFLP-REIT, AssetManagement Fee Ⅰ shall be the amount of total assets(less an amount equal to unamortized goodwill) stated in
the balance sheet (limited to that approved by the Boardof Directors pursuant to the provisions of the Investment
Trusts Act) as at the Settlement Date of the immediately
preceding operating period of MFLP-REIT (“Last
Settlement Date”), multiplied by a rate separately agreed
upon between MFLP-REIT and the Asset Management
Company, which shall not exceed an annual rate of 0.1%
(calculated on a daily basis based on the actual numberof days in the relevant calculation period with 365 days
per year; rounded down to the nearest one yen). If
MFLP-REIT holds shares of or equity in a corporation
holding overseas real estate (hereinafter, “equity related
to a corporation holding overseas real estate”) as at theLast Settlement Date, and only if the amount equivalent
to MFLP-REIT’s interest in the overseas real estate, etc.
pertaining to such corporation holding overseas realestate (as defined below) has been finalized, the amountof total assets in the above calculation shall be theamount calculated by deducting the amounts of equity
related to the corporation holding overseas real estate,monetary claims that MFLP-REIT holds against said
corporation holding overseas real estate and bondsecurities issued by said corporation holding overseas
real estate (if any), and adding the amount equivalent tointerest in the overseas real estate, etc. as at the Last
Settlement Date. The “amount equivalent to interest in
the overseas real estate, etc.” refers to the amountcalculated by taking the amount of total assets of said
corporation holding overseas real estate (provided thatthe amount must be disclosed in MFLP-REIT’s financial
documents or asset management report as at the Last
Settlement Date), which shall be determined based on the
figures stated in the latest financial statements of said
corporation holding overseas real estate which areavailable to MFLP-REIT on or before the Settlement
Date of the said operating period (provided that suchfinancial statements must be dated before the Last
Settlement Date), and converted into Japanese currency
equivalent (calculated based on the foreign exchange rate
as at the settlement date of the operating period of said
financial statements of the corporation holding overseas
real estate), then multiplied by percentage of MFLPREIT’s equity interest in the corporation holding
overseas real estate as at the last settlement date of said
corporation holding overseas real estate.

For each operating period of MFLP-REIT, AssetManagement Fee II shall be the amount equivalent to therate (rounded down to the nearest one yen, and zero yen
in case of negative value) which is separately agreed
upon between MFLP-REIT and the Asset Management
Company, which shall not exceed 5.5% of the operating
income before deducting Asset Management Fees I, II
and III, and non-deductible consumption taxes anddepreciation on these Management Fees, calculated ateach Settlement Date of such operating period of MFLPREIT (“relevant Settlement Date”).
(3)(Standards for Payment of Asset Management Fees
to the Asset Management Company)(Unchanged)(1)

Asset Management Fee II(Settlement Date)

The operating period of MFLP-REIT shall be from February 1 toJuly 31 of each year, and from August 1 to January 31 of thefollowing year (the last day of each operating period shall bereferred to as “Settlement Date”). However, the operating period
for the 17th fiscal period shall be from August 1, 2024 toOctober 31, 2024, and the operating period for the 18th fiscal
period shall be from November 1, 2024 to July 31, 2025.

For each operating period of MFLP-REIT, AssetManagement Fee Ⅰ shall be the amount of total assets
stated in the balance sheet (limited to that approved by
the Board of Directors pursuant to the provisions of theInvestment Trusts Act) as at the Settlement Date of theimmediately preceding operating period of MFLP-REIT(“Last Settlement Date”), multiplied by a rate separately
agreed upon between MFLP-REIT and the AssetManagement Company, which shall not exceed anannual rate of 0.1% (calculated on a daily basis based on
the actual number of days in the relevant calculation
period with 365 days per year; rounded down to thenearest one yen). If MFLP-REIT holds shares of or
equity in a corporation holding overseas real estate(hereinafter, “equity related to a corporation holding
overseas real estate”) as at the Last Settlement Date, andonly if the amount equivalent to MFLP-REIT’s interestin the overseas real estate, etc. pertaining to suchcorporation holding overseas real estate (as defined
below) has been finalized, the amount of total assets inthe above calculation shall be the amount calculated bydeducting the amounts of equity related to thecorporation holding overseas real estate, monetary claims
that MFLP-REIT holds against said corporation holding
overseas real estate and bond securities issued by said
corporation holding overseas real estate (if any), andadding the amount equivalent to interest in the overseas
real estate, etc. as at the Last Settlement Date. The“amount equivalent to interest in the overseas real estate,etc.” refers to the amount calculated by taking theamount of total assets of said corporation holding
overseas real estate (provided that the amount must be
disclosed in MFLP-REIT’s financial documents or asset
management report as at the Last Settlement Date),
which shall be determined based on the figures stated in
the latest financial statements of said corporation holding
overseas real estate which are available to MFLP-REIT
on or before the Settlement Date of the said operating
period (provided that such financial statements must be
dated before the Last Settlement Date), and converted
into Japanese currency equivalent (calculated based on
the foreign exchange rate as at the settlement date of theoperating period of said financial statements of thecorporation holding overseas real estate), then multipliedby percentage of MFLP-REIT’s equity interest in thecorporation holding overseas real estate as at the last
settlement date of said corporation holding overseas realestate.
(2)(Unchanged)

Article 34

Asset Management Fee III
For each operating period of MFLP-REIT, AssetCurrent Articles of Incorporation

Proposed Amendments

Management Fee III shall be the amount calculated inaccordance with the following formula (rounded down to
the nearest one yen).

- 8 -Management Fee III shall be the amount calculated inaccordance with the following formula (rounded down to
the nearest one yen).

Current Articles of Incorporation

Proposed Amendments<Formula>[Pre-tax earnings (provided, the amount after
compensating the full amount of losses carried forward,
if any) before deducting Asset Management Fees I, II
and III, and non-deductible consumption taxes on theseManagement Fees, calculated at each Settlement Date ofsuch operating period of MFLP-REIT] x EPU x a rate
separately agreed upon between MFLP-REIT and theAsset Management Company, which shall not exceed
0.001%, whereas:
EPU=A/B
A: Pre-tax earnings (provided, the amount after
compensating the full amount of losses carriedforward, if any) before deducting Asset Management
Fees I, II and III, and non-deductible consumption
taxes on these Management Fees, calculated at each
Settlement Date of such operating period of MFLPREIT
B: Number of issued investment units at the relevant
Settlement Date(4) - (7)2.

<Formula>[Pre-tax earnings (provided, the amount after adding
amortization of goodwill and deducting gain on negative
goodwill, and compensating the full amount of losses
carried forward, if any) before deducting AssetManagement Fees I, II and III, and nondeductible
consumption taxes on these Management Fees,
calculated at each Settlement Date of such operating
period of MFLP-REIT] x EPU x a rate separately agreed
upon between MFLP-REIT and the Asset Management
Company, which shall not exceed 0.001% (provided,
however, that if a relevant operating period falls short ofsix months or exceeds six months, the rate shall be
adjusted by multiplying 0.001% by “183 divided by theactual number of days in the relevant operating period”),
whereas:EPU=A/B
A: Pre-tax earnings (provided, the amount after adding
amortization of goodwill and deducting gain on
negative goodwill, and compensating the full amountof losses carried forward, if any) before deducting
Asset Management Fees I, II and III, and nondeductible consumption taxes on these Management
Fees, calculated at each Settlement Date of suchoperating period of MFLP-REIT
B: Number of issued investment units at the relevant
Settlement DateIf, during the relevant operating period, a split orconsolidation of investment units comes into effectand the number of investment units issued increases
or decreases as a result, the amount of AssetManagement Fee III shall be adjusted by method
stipulated below.
i If the investment units of MFLP-REIT are split at aratio of 1: X, the amount of the Asset Management
Fee III for the relevant operating period and each
operating period thereafter shall be X times thecalculated value of Asset Management Fee III(rounded down to the nearest one yen) according to
the above formula (or after adjustments if adjusted as
per this adjustment clause).
ii If the investment units of the MFLP-REIT are
consolidated at a ratio of Y: 1, the amount of AssetManagement Fee III for the relevant operating period
and each operating period thereafter shall be 1 timesof Y the calculated value of Asset Management Fee
III (rounded down to the nearest one yen) according
to the above formula (or after adjustments if adjusted
as per this adjustment clause).

(Omitted)(4) - (7)(Omitted)

2.

(New)

(Unchanged)(Unchanged)
CHAPTER 9
Supplementary Provisions

Article 42(Effectuation of Amendments)

1. The amendments to the provisions of Article 6, Paragraph 1,
Article 29, Paragraph 3, Article 34, and Article 37,
Paragraph 1 of the Articles of Incorporation shall take effectsubject to an absorption-type merger taking effect, which isbased on the merger agreement dated August 5, 2024
executed between MFLP-REIT and Advance Logistics
Investment Corporation, whereby MFLP-REIT will be thesurviving corporation and Advance Logistics Investment
Corporation will be the dissolving corporation in the merger(the “Merger”). These amendments shall come into effect on
the effective date of the Merger. Of the amendments to theprovisions of Article 37, Paragraph 1, Item 3 of the Articles
of Incorporation, the revision of adding the wording“(provided, however, that if a relevant operating period falls
short of six months or exceeds six months, the rate shall be
adjusted by multiplying 0.001% by “183 divided by theactual number of days in the relevant operating period”)”
shall be applicable starting from the calculation of AssetManagement Fee III for the operating period for the 17th
fiscal period after Article 34 has been amended.
2. The provisions of this Chapter shall be eliminated as of theeffective date of the Merger and after the amendments
become effective in accordance with the preceding
paragraph.

- 9 -iii) Forecast for the fiscal period
MFLP-REIT’s forecasts for the fiscal period ending October 31, 2024 (August 1, 2024 to October 31, 2024) are as follows:

Fiscal period ending
October 31, 2024

Operating revenues

Operating income

Ordinary income

Millions ofyenMillions ofyenMillions of
yen

6,408

%
–

2,311

%
–

2,065

(% figures denote rate of period-on-period change)
Distributions
Distributions
per unit
Distributions
per unit(excluding
in excess of(including
Net income
distributions
retained
distributions
in excess of earnings per in excess ofretained
unit
retainedearnings)
earnings)%–

Millions of
yen
2,064

%
–

Yen
3,396

Yen
1,261

Yen
4,657

For the assumptions for these forecasts, please refer to “Forecast Assumptions for the Fiscal Period Ending October 31, 2024
(August 1, 2024 to October 31, 2024)” described on page 11.
Notes:
1.

The above forecasts are the current estimations calculated based upon certain assumptions. Future additional acquisitions or sales of real estate,real estate market trends, interest rate fluctuation and other situation surrounding MFLP-REIT may cause differences from the assumptions. As aresult, actual operating revenues, operating income, ordinary income, net income, distributions per unit (excluding distributions in excess ofretained earnings) and distributions in excess of retained earnings per unit may vary from these forecasts. Furthermore, these forecasts are in no
way a guarantee of amounts of distributions or distributions in excess of retained earnings.

2.

Monetary amounts have been rounded down to the display unit.

3.

The above shows the operating results forecast for the fiscal period ending October 31, 2024 (three months), which is the fiscal period after theamendments to the Articles of Incorporation that are subject to the condition that the Merger takes effect. Since the number of calendar months in
the fiscal period is different from that in the previous period, the fiscal period ended July 31, 2024 (February 1, 2024 to July 31, 2024; sixmonths), the period-on-period change is not stated.

- 10 -

Forecast Assumptions for the Fiscal Period Ending October 31, 2024 (August 1, 2024 to October 31, 2024)
Item

Assumptions

Calculation period
and effect of themerger Fiscal Period Ending October 31, 2024 (August 1, 2024 to October 31, 2024) (92 days)
 It is assumed that the proposal to amend the Articles of Incorporation to change the operating period will
be approved at the general meeting of unitholders of MFLP-REIT to be held on September 30, 2024, andthat the Merger will become effective as of November 1, 2024.

Investment assets

 It is assumed that the 30 properties held by MFLP-REIT as of the date of this document (individually orcollectively, “Our Current Property(ies)”) will not be changed (as there will be no disposition, etc. of Our
Current Properties and there will be no acquisition of new properties) until the end of the fiscal period
ending October 31, 2024. However, the actual number of investment assets may change due to theacquisition of new properties or the disposition, etc. of Our Current Properties.

Operating revenues

 Leasing business revenues related to Our Current Properties are calculated based on lease contracts
already executed that are in effect as of July 31, 2024 and other factors, including tenant movements,
market trends and other factors.
 Calculations assume that there will be no gain or loss on sale of real estate, etc.

Operating expenses

 Leasing business expenses, which are major operating expenses, other than depreciation have been
calculated by taking into consideration changes to expenses, with the historical results used as abenchmark.
 Depreciation expenses are calculated using the straight-line method. Depreciation is expected to be ¥1,574
million for the fiscal period ending October 31, 2024.
 Leasing business income (excluding gain on sale of real estate) after the deduction of leasing business
expenses (including depreciation) is expected to be ¥3,195 million for the fiscal period ending October 31,
2024.
 In general, municipal property taxes, city planning taxes and other charges levied on real estate transactions
are settled at the time of acquisition by prorating for the period held with the present owner. However,
MFLP-REIT includes an amount equivalent to the settled amount in the acquisition costs for the property.
 Repair expenses for buildings are expected to be ¥145 million for the fiscal period ending October 31,
2024 based on the medium- to long-term repair plan established by the Asset Management Company.
However, given the possibility that repair expenses may increase or additional expenses may be incurred
due to difficult-to-forecast factors, the actual results may differ significantly from the forecast amount.
 In connection with the Merger, it is assumed that one-time merger related expenses of ¥187 million for the
fiscal period ending October 31, 2024.

Non-operating
expenses Interest expenses, interest expenses on investment corporation bonds and other expenses related toborrowings are expected to be ¥235 million for the fiscal period ending October 31, 2024.
 Investment corporation bond issuance expenses shall be amortized on a monthly basis over the period
starting from the month of issuance to redemption. Amortization of investment corporation bond issuance
expenses is expected to be ¥1 million for the fiscal period ending October 31, 2024.
 Investment unit issuance expenses for the new issue of investment units shall be amortized monthly for athree-year period starting from the month of issuance. Amortization of investment unit issuance expenses
is expected to be ¥9 million for the fiscal period ending October 31, 2024.

 It is assumed that total interest-bearing debt will be ¥159,200 million at the end of the fiscal period ending
October 31, 2024.
Interest-bearing debt  The loan-to-value (LTV) ratio is expected to be 41.4% at the end of the fiscal period ending October 31,
2024. The following formula is used to calculate the LTV ratio.
LTV ratio = Total interest-bearing debt ÷ Total assets × 100

Investment units It is assumed that the number of investment units issued and outstanding is 608,000 investment units as ofthe date of this document and there will be no change to the number of investment units by issuing newinvestment units, etc. through to the end of the fiscal period ending October 31, 2024.
 Distributions per unit (excluding distributions in excess of retained earnings) and distributions in excess
of retained earnings per unit are calculated based on the 608,000 units of the expected total number ofinvestment units issued and outstanding at the end of the fiscal period ending October 31, 2024.

 Distributions per unit (excluding distributions in excess of retained earnings) is calculated in accordanceDistributions per unit
with MFLP-REIT’s policy on distribution of cash described in its Articles of Incorporation and assuming(excludingthat all profits will be distributed.
distributions in However, distributions per unit (excluding distributions in excess of retained earnings) may change for aexcess of retained
variety of reasons, including changes in MFLP-REIT’s investment assets, changes in leasing revenues due
earnings)
to tenant movements, etc. and/or the occurrence of unforeseen repairs and maintenance, etc.

- 11 -

Item

Distributions inexcess of retained
earnings per unit

Assumptions
 Distributions in excess of retained earnings per unit is calculated in accordance with MFLP-REIT’s policy
on distribution of cash described in its Articles of Incorporation and the asset management guidelines forthe asset management company.
 MFLP-REIT emphasizes cash flow generated by asset management, such as the leasing of investment
assets, excluding gain or loss on sale of real estate. It is MFLP-REIT’s policy to calculate the amount
distributable, including distributions in excess of retained earnings, up to a maximum of 75% of FFO(*1)
in principle, and continually distribute the amount that exceeds the amount of distribution of earnings,
within a scope where financial stability can be secured and owned assets can be maintained for a long
duration of time, as distributions in excess of retained earnings determined based on a comprehensive
judgment of the situation (the “continuous distributions in excess of retained earnings”). The amount
distributable will be 74% of FFO for the fiscal period ending October 31, 2024. However, the continuous
distributions in excess of retained earnings may be terminated given the economic environment, trends inthe real estate market or leasing market, the situation surrounding owned assets, the percentage ofdistributions in excess of retained earnings accounted for in depreciation during MFLP-REIT’s applicable
operating period(*2), and the situation pertaining to LTV level and retained cash and deposits, among otherfactors.
 In addition to the continuous distributions in excess of retained earnings, in cases where the distribution
amount for distributions per unit (including distributions in excess of retained earnings) is expected totemporarily decline by a certain degree due to such factors as the procurement of funds through theissuance of new investment units, etc., a temporary distribution in excess of retained earnings may be
executed in order to standardize the amount of the distributions per unit (including distributions in excess
of retained earnings). In the fiscal period ending October 31, 2024, a temporary distribution in excess ofretained earnings of ¥139 million is assumed due to temporary expenses incurred as a result of the Merger.
 However, from the perspective of continuing to maintain owned assets for a long period of time, in cases
where the above distribution of cash is executed, and where the amount equal to the equivalent ofdepreciation and amortization for the applicable operating period minus the amount of the distribution inexcess of retained earnings for the applicable operating period falls below the standard amount of capitalfor building maintenance(*3), the distribution in excess of retained earnings will be decreased by amaximum amount that the distribution amount does not fall below the total equivalent of the distributionof earnings, and this may lead to cases where distribution in excess of retained earnings will not be
executed.
 In addition, from the perspective of continuing stable financial management, distributions in excess ofretained earnings will not be executed in cases where the appraisal LTV ratio(*4) exceeds 60% in the eventthat the above distribution of cash is executed.
 The total amount of distributions in excess of retained earnings is expected to be ¥766 million for the
fiscal period ending October 31, 2024 based on the above calculation. In addition, we expect to make a
distribution in excess of retained earnings of ¥14 million for the fiscal period ending October 31, 2024 asallowance for temporary difference adjustments, which takes into account the impact on distributions of
the tax discrepancy in excess of income, but this amount is included in the above ¥766 million.
(*1) FFO is an acronym that stands for funds from operation. It is calculated by adding depreciation for the applicable operating
period to net income (excluding profit or loss from the sale of real estate, etc.).
(*2) The maximum will be an amount equivalent to 60% of the depreciation for the applicable operating period.
(*3) “Standard amount of capital for building maintenance” refers to the amount that results by multiplying the six-monthequivalent amount of the 12-year-average amount of the amount equivalent to the capital expenditure amount noted in the
Building Condition Evaluation Report by two.
(*4) Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value after depreciation of
owned real estate on the applicable accounts settlement date + Appraisal value of owned real estate on the applicableaccounts settlement date

Other

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

- 12 -

(2)Investment Risk
The following risk is added to “Investment risk” in the latest securities report (submitted on April 25, 2024).
Risk associated to the merger with ADL, etc.
MFLP-REIT and ADL resolved to conduct the Merger with November 1, 2024 as the effective date, at their respective Board of
Directors’ Meeting held on August 5, 2024, and executed the Merger Agreement as of August 5, 2024. However, in order for the
Merger to take effect, the requirement of approval at the general meeting of unitholders of Each REIT and other conditions need
to be satisfied. If the Merger is not executed for any reason whatsoever, the unit price of MFLP-REIT may decline, or this may
have an adverse impact on MFLP-REIT’s revenues and others, and as a result, unitholders may receive damage.
Even if the Merger is executed, there is no guarantee that synergistic effects expected from the Merger will be realized, andassumed profit may not be obtained, and MFLP-REIT’s financial position and others may be adversely affected in association
with assets under management and liabilities succeeded through the Merger. Consequently, unitholders may receive damage.

- 13 -

2.

(1)

Financial Statements
Balance Sheets(Thousands of yen)
15th period(As of January 31, 2024)

16th period(As of July 31, 2024)

AssetsCurrent assets
Cash and deposits

703,770

381,786

8,371,276

8,238,051

Operating accounts receivable

58,740331,060

Prepaid expenses

102,536

108,434

Cash and deposits in trust

Consumption taxes receivable
Other
Total current assets–

474,920

9,138

3,521

9,245,462

9,537,774

192,609,798

204,927,088

Non-current assets
Property and equipment
Buildings in trust
Accumulated depreciation(22,016,098)(24,882,025)

Buildings in trust, net

170,593,699

180,045,062

6,108,246

6,456,763

Accumulated depreciation(2,079,269)(2,328,612)

Structures in trust, net

4,028,976

4,128,151

Machinery and equipment in trust

4,244,208

4,318,951

Accumulated depreciation(1,641,757)(1,788,826)

Machinery and equipment in trust, net

2,602,450

2,530,125

Vehicles and transport equipment in trust

4,274

4,274

(3,107)(3,224)Structures in trust

Accumulated depreciation

1,167

1,049

Tools, furniture and fixtures in trust

Vehicles and transport equipment in trust, net

127,868

136,629

Accumulated depreciation(46,102)(55,145)

Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property and equipment

81,765

81,484

172,021,268

187,125,473

39,794

8,540

349,369,123

373,919,887

2,061,878

2,303,362

Intangible assets
Land leasehold rights in trust
SoftwareTotal intangible assets

640

465

2,062,518

2,303,827

Investments and other assets
Lease and guarantee deposits

50,51868,468Long-term prepaid expenses

294,620

267,904

Deferred tax assets

20

17

1,050

1,050

346,209337,440

351,777,850

376,561,155

Investment unit issuance expenses

50,11731,617

Investment corporation bond issuance costs

33,96031,779

Other
Total investments and other assets
Total non-current assets
Deferred assets

Total deferred assets
Total assets- 14 -

84,07763,397361,107,391

386,162,327

(Thousands of yen)
15th period(As of January 31, 2024)

16th period(As of July 31, 2024)

Liabilities
Current liabilities
Operating accounts payable

704,817604,645

Short-term loans payable

600,000

2,000,000

Current portion of long-term loans payable

9,600,000

6,600,000

Accounts payable

1,313,427

1,423,997

Accrued expenses

11,79812,664

Income taxes payable

1,023

973

227,504–

2,006,290

2,098,674

358

1,237

14,465,221

12,742,192

Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

5,000,000

5,000,000

116,100,000

143,100,000

7,754,113

8,425,098–

158,717

6,795

5,523

128,860,909

156,689,339

143,326,131

169,431,531

218,093,898

218,093,898

Net assets
Unitholders’ capital
Unitholders’ capital
Deduction from unitholders’ capital
Allowance for temporary difference
adjustments*2(6,336)*2(28,832)

Other deduction from unitholders’ capital(4,712,659)(5,693,971)

Total deduction from unitholders’ capital(4,718,995)(5,722,803)

213,374,902

212,371,094

Unappropriated retained earnings (undisposed
loss)

4,406,357

4,359,700

Total retained earnings

4,406,357

4,359,700

217,781,260

216,730,795

Unitholders’ capital, net
Retained earnings

Total unitholders’ equity
Total net assets*3

217,781,260
361,107,391

Total liabilities and net assets- 15 -*3

216,730,795
386,162,327

(2)Statements of Income(Thousands of yen)
15th period(From August 1, 2023
to January 31, 2024)

16th period(From February 1, 2024
to July 31, 2024)

Property-related revenues*1

11,138,167*1

11,820,017

Other revenues related to property leasing*1

707,350*1

593,392

Operating revenues

11,845,517

Total operating revenues

12,413,410

Operating expenses
Property-related expenses*1

5,849,502*1

6,202,441

1,129,442

1,140,767

Asset custody fee

17,50018,055Administrative service fees

24,01423,998

Directors’ compensations

6,600

6,600

Audit fee

11,00011,000–118,164

Other operating expenses

68,623

71,206

Total operating expenses

7,106,683

7,592,234

4,738,834

4,821,176

Interest income

36

41

Insurance income

5,922

–

25,095

–

2,140

–

606

784

–

466

Asset management fee

Merger expenses

Operating income
Non-operating income

Compensation income*2Interest on refund
Reversal of distributions payable
Refund of property taxes

0033,801

1,292

Interest expenses

299,187

411,599

Interest expenses on investment corporation bonds

15,82915,570

Amortization of investment corporation bond issuance
costs

2,205

2,181

Amortization of investment unit issuance expenses

23,411

18,499Offering costs associated with issuance of investment
units

13,737–

Borrowing related expenses

7,561

6,415

Other

3,672

7,701

365,604

461,967

Ordinary income

4,407,031

4,360,501

Income before income taxes

4,407,031

4,360,501

Income taxes - current

1,028

979

Income taxes - deferred

5

2

1,034

982

4,405,997

4,359,519

Other
Total non-operating income
Non-operating expenses

Total non-operating expenses

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 16 -

359

181

4,406,357

4,359,700

(3)Statements of Changes in Net Assets
15th period (From August 1, 2023 to January 31, 2024)(Thousands of yen)

Unitholders’ capital
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalBalance at
beginning of
periodAllowance fortemporarydifference
adjustments

203,299,818–

Other deduction
Total deduction
from unitholders’ from unitholders’capitalcapital(3,907,987)(3,907,987)

Unitholders’capital, net

199,391,830

Changes of items
during period
Issuance of new
investment units

14,794,080

14,794,080

Distributions inexcess of
earnings fromallowance fortemporarydifference
adjustments(6,336)

Other
distribution inexcess of
earnings(6,336)(6,336)(804,672)(804,672)(804,672)

Dividends ofearnings
Net income
Total changes of
items during
period14,794,080(6,336)(804,672)(811,008)

13,983,072

Balance at end of
period218,093,898(6,336)(4,712,659)(4,718,995)

213,374,902(Thousands of yen)
Unitholders’ capital
Retained earnings
Total unitholders’equityTotal net assets

203,652,286

203,652,286

Issuance of new
investment units

14,794,080

14,794,080

Distributions inexcess of
earnings fromallowance fortemporarydifference
adjustments(6,336)(6,336)

Other
distribution inexcess of
earnings(804,672)(804,672)

Balance at
beginning of
periodUnappropriatedretained earnings(undisposed loss)

Total retained
earnings

4,260,455

4,260,455

Changes of items
during period

Dividends ofearnings(4,260,096)(4,260,096)(4,260,096)(4,260,096)

Net income

4,405,997

4,405,997

4,405,997

4,405,997

Total changes of
items during
period145,901

145,901

14,128,973

14,128,973

Balance at end of
period4,406,357

4,406,357

217,781,260

217,781,260- 17 -

16th period (From February 1, 2024 to July 31, 2024)(Thousands of yen)

Unitholders’ capital
Unitholders’ capital
Deduction from unitholders’ capital
Allowance fortemporarydifference
adjustments

Unitholders’capitalBalance at
beginning of
period218,093,898(6,336)

Other deduction
Total deduction
from unitholders’ from unitholders’capitalcapital(4,712,659)

Unitholders’capital, net(4,718,995)

213,374,902(22,496)(22,496)(981,312)(981,312)(981,312)

Changes of items
during period
Distributions inexcess of
earnings fromallowance fortemporarydifference
adjustments(22,496)

Other
distribution inexcess of
earnings
Dividends ofearnings
Net income
Total changes of
items during
period–(22,496)(981,312)(1,003,808)(1,003,808)

Balance at end of
period218,093,898(28,832)(5,693,971)(5,722,803)

212,371,094(Thousands of yen)
Unitholders’ capital
Retained earnings
Total unitholders’equityTotal net assets

217,781,260

217,781,260

Distributions inexcess of
earnings fromallowance fortemporarydifference
adjustments(22,496)(22,496)

Other
distribution inexcess of
earnings(981,312)(981,312)

Balance at
beginning of
periodUnappropriatedretained earnings(undisposed loss)

Total retained
earnings

4,406,357

4,406,357

Changes of items
during period

Dividends ofearnings(4,406,176)(4,406,176)(4,406,176)(4,406,176)

Net income

4,359,519

4,359,519

4,359,519

4,359,519

Total changes of
items during
period(46,656)(46,656)(1,050,464)(1,050,464)

Balance at end of
period4,359,700

4,359,700

216,730,795

216,730,795- 18 -

(4)Statements of Cash Distributions(Yen)
15th period(From August 1, 2023
to January 31, 2024)

16th period(From February 1, 2024
to July 31, 2024)

I

Unappropriated retained earnings

4,406,357,351

4,359,700,791

II

Distributions in excess of retained
earnings

1,003,808,000

1,242,752,000

Of which: Allowance for temporary
difference adjustments

22,496,000

28,576,000

Of which: Other deduction fromunitholders’ capital

981,312,000

1,214,176,000

5,409,984,000

5,602,112,000(8,898)(9,214)

III Distributions(Distribution per unit)

4,406,176,000

4,359,360,000(Of which: Distribution of earnings
per unit)

Of which: Distribution of earnings(7,247)(7,170)Of which: Allowance fortemporary difference adjustments

22,496,000

28,576,000(Of which: Distribution in excess ofretained earnings per unit (related toallowance for temporary difference
adjustments))

(37)

(47)

981,312,000

1,214,176,000(1,614)(1,997)

181,351

340,791

Of which: Other distribution inexcess of retained earnings(Of which: Distribution in excess ofretained earnings per unit (related toother distributions in excess ofretained earnings))
IV Retained earnings carried forward- 19 -

In accordance with the distribution policy In accordance with the distribution policy
as defined in the Article 35, Paragraph 1
as defined in the Article 35, Paragraph 1of the Articles of Incorporation of MFLP- of the Articles of Incorporation of MFLPREIT, distributions shall be in excess of
REIT, distributions shall be in excess of
the amount equivalent to 90% of thethe amount equivalent to 90% of theamount of earnings available for dividends amount of earnings available for dividends
defined in the Article 67-15 of the Act on defined in the Article 67-15 of the Act on
Special Measures Concerning Taxation.
Special Measures Concerning Taxation.
Based on this policy, for the fiscal period Based on this policy, for the fiscal period
ended January 31, 2024, MFLP-REIT
ended July 31, 2024, MFLP-REIT
declared a distribution amount of
declared a distribution amount of¥4,406,176,000, which is the maximum¥4,359,360,000, which is the maximum
value of the integral multiple of the total
value of the integral multiple of the total
number of investment units issued andnumber of investment units issued andoutstanding at the end of the period in
outstanding at the end of the period inamounts not in excess of unappropriatedamounts not in excess of unappropriatedretained earnings.
retained earnings.
Furthermore, based on the distribution
Furthermore, based on the distribution
policy as defined in the Article 35,
policy as defined in the Article 35,
Paragraph 2 of the Articles ofParagraph 2 of the Articles ofIncorporation, MFLP-REIT executes the
Incorporation, MFLP-REIT executes the
distribution of cash in excess of retained
distribution of cash in excess of retained
earnings (return of capital applicable toearnings (return of capital applicable to
distribution reducing unitholders’ capital distribution reducing unitholders’ capitalfor tax purposes) each fiscal period on afor tax purposes) each fiscal period on acontinuous basis. Distribution ofcontinuous basis. Distribution ofallowance for temporary difference
allowance for temporary difference
adjustments is also made, taking into
adjustments is also made, taking into
account the impact of the tax discrepancy account the impact of the tax discrepancy
in excess of income associated with thein excess of income associated with theamortization of fixed-term land leasehold expenses related to asset retirement
rights in trust on distributions.
obligations and the amortization of fixedBased on this policy, for the fiscal period term land leasehold rights in trust on
distributions. In addition, in cases where
Method of calculating distribution amount ended January 31, 2024, ofthe distribution amount for distributions¥1,003,808,000, which is calculated as
being almost equivalent to the remaining per unit is expected to temporarily decline
amount after subtracting the distribution of by a certain degree, a temporary
distribution of cash in excess of retained
earnings of ¥4,406,176,000 from
earnings may be executed for the purpose¥5,410,452,502 or 72% of FFO (funds
from operation), MFLP-REIT declared the of maintaining the stability of the
distribution level.
distribution of ¥981,312,000 as
distribution of cash in excess of retained
Based on this policy, for the fiscal period
earnings (return of capital applicable toended July 31, 2024, of ¥1,229,376,000,
distribution reducing unitholders’ capital which is calculated as being almost
for tax purposes), and the distribution ofequivalent to the remaining amount after¥22,496,000, which is almost equivalent
subtracting the distribution of earnings ofto the amortization of fixed-term land
¥4,359,360,000 from ¥5,589,191,958 orleasehold rights in trust for the fiscal
73% of FFO (funds from operation),
period under review, as the tax
MFLP-REIT declared the distribution of
discrepancy in excess of income¥1,200,800,000 as distribution of cash in(allowance for temporary difference
excess of retained earnings (return ofadjustments).
capital applicable to distribution reducing
unitholders’ capital for tax purposes), andthe distribution of ¥28,576,000, which isalmost equivalent to the expenses related
to asset retirement obligations and theamortization of fixed-term land leasehold
rights in trust for the fiscal period underreview, as the tax discrepancy in excess of
income (allowance for temporary
difference adjustments). In addition, due
to a temporary decrease in distribution perunit resulting from expenditures ofmerger-related expenses during the fiscal
period under review, MFLP-REIT decided
to distribute ¥13,376,000 as a temporary
distribution of cash in excess of retained
earnings (return of capital applicable to- 20 -

15th period(From August 1, 2023
to January 31, 2024)

16th period(From February 1, 2024
to July 31, 2024)
distribution reducing unitholders’ capitalfor tax purposes).

Note:
MFLP-REIT may execute cash distribution in excess of distributable amount, in an amount it determines within a scope not to exceed the limit stipulated in therules and requirements imposed by the Investment Trusts Association, Japan, when MFLP-REIT considers it appropriate, given such factors as economic
environment, trends in the real estate market or leasing market, the situation surrounding owned assets and the financial condition.
In addition, in case that any cash distribution fails to meet the statutory requirements for special tax treatment for investment corporations, MFLP-REIT may
execute cash distribution in excess of distributable amount, in an amount it determines to meet the statutory requirements.

- 21 -

(5)Statements of Cash Flows(Thousands of yen)
15th period(From August 1, 2023
to January 31, 2024)

16th period(From February 1, 2024
to July 31, 2024)

Cash flows from operating activities
Income before income taxes

4,407,031

4,360,501

Depreciation and amortization

3,108,694

3,297,082

Amortization of investment corporation bond issuance
costs

2,205

2,181

Amortization of investment unit issuance expenses

23,411

18,499Interest income

(36)

(41)

Interest expenses

315,016

427,170

Insurance income(5,922)–Compensation income(25,095)–

Decrease (increase) in operating accounts receivable

135,262(272,320)

Decrease (increase) in prepaid expenses(87,538)(5,897)

Decrease (increase) in long-term prepaid expenses(283,096)

26,716

Decrease (increase) in consumption taxes receivable

1,143,742(474,920)

Increase (decrease) in accrued consumption taxes

227,504(227,504)

Increase (decrease) in operating accounts payable

338,911(241,153)

Increase (decrease) in accounts payable

29,66070,929

Increase (decrease) in advances received

73,07992,383

Other, net(2,235)(281)

Subtotal

9,400,594

7,073,345

36

41(314,825)(426,305)

417

5,504

Compensation income received

25,095–

Income taxes paid

(1,140)(1,029)9,110,178

6,651,557

Purchase of property and equipment in trust(12,554,431)(27,482,726)

Purchase of intangible assets in trust(1,490,553)(266,892)(44,692)(52,159)

313,010723,145(13,576)(17,950)(13,790,243)(27,096,583)

Interest income received
Interest expenses paid
Insurance income received

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

Repayments of tenant leasehold and security deposits
in trust
Proceeds from tenant leasehold and security deposits intrust
Payments for lease and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term loans payable

11,100,000

15,600,000

Repayments of short-term loans payable(15,000,000)(14,200,000)

Proceeds from long-term loans payable

4,000,000

30,600,000

Repayments of long-term loans payable(4,000,000)(6,600,000)

(104)

–

Proceeds from issuance of investment units

14,768,846(1,003)

Payment of distribution of earnings(4,260,283)(4,405,645)

Payment of distribution in excess of retained earnings(810,970)(1,003,534)

Net cash provided by (used in) financing activities

5,797,487

19,989,816

Payments for investment corporation bond issuancecosts- 22 -

(Thousands of yen)
15th period(From August 1, 2023
to January 31, 2024)

16th period(From February 1, 2024
to July 31, 2024)

Net increase (decrease) in cash and cash equivalents

1,117,423(455,209)

Cash and cash equivalents at beginning of period

7,957,623

9,075,047

Cash and cash equivalents at end of period

9,075,047

8,619,837- 23 -

(6)Notes to Going Concern Assumption
Not applicable.

(7)1.

Notes to Significant Accounting Policies
Method of depreciation andamortization of non-current
assets(1)

Property and equipment (including those in trust)
Depreciation of property and equipment is calculated using the straight-line method
over the estimated useful lives. The useful lives of principal property and equipment
are as follows:
Buildings:
Structures:
Machinery and equipment:
Vehicles:Tools, furniture and fixtures:(2)

2 to 59 years
8 to 50 years
8 to 17 years
4 to 7 years
3 to 15 years

Intangible assets (including those in trust)
Amortization of intangible assets is calculated using the straight-line method over theestimated useful lives.
Amortization of software for internal use is calculated using the straight-line method
over the estimated useful lives of five years at MFLP-REIT.
In addition, amortization of land leasehold rights in trust is calculated using thestraight-line method over the remaining period of the fixed-term land lease agreement.

2.

Accounting method for deferred (1)assets(2)

Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method over athree-year period.
Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized using the straight-line
method over the period until maturity.

3.

Recognition of revenues andexpenses(1)

Recognition standard for revenues
Details of the main performance obligations related to MFLP-REIT’s revenues fromcontracts with customers and the usual time at which the performance obligations are
fulfilled (the usual time at which revenues are recognized) are as follows.
(i)
Utilities charges
For utilities charges, revenues are recognized based on the supply of electricity, water,and so forth to the lessee, who is the customer, in accordance with the lease contract
for the real estate, etc. and the appended agreement details. Utilities charges arepresented under “other revenues related to property leasing” in the statements ofincome, and in the breakdown of “other revenues related to property leasing”
provided in [Notes to Statements of Income] they are presented as “utilities charges.”(2)

Taxes on property and equipment
With respect to property taxes, city planning taxes and depreciable asset taxes
imposed on real estate properties or trust beneficiary interests in real estate, of the tax
amount assessed and determined, the amount corresponding to the relevant fiscal
period is accounted for as property-related expenses.
Of the amounts paid for the acquisitions of real estate properties or trust beneficiaryinterests in real estate, the amount equivalent to property-related taxes in the initial
year borne by the investment corporation is capitalized as part of the acquisition costof the relevant property instead of being charged as expenses.
The amount equivalent to property-related taxes capitalized as the acquisition cost forreal estate, etc. for the 15th period was ¥28,073 thousand, and the amount equivalent
to property-related taxes capitalized as the acquisition cost for real estate, etc. for the
16th period was ¥127,772 thousand.

4.

Scope of cash and cash
equivalents in the statements ofcash flows

Cash and cash equivalents in the statements of cash flows consist of cash on hand and cashin trust, readily-available bank deposits, readily-available bank deposits in trust and shortterm investments that are readily convertible to cash and realizable with a maturity of threemonths or less when purchased and that are subject to an insignificant risk of changes invalue.
- 24 -

5.

Other information for
preparation of financial
statements

Trust beneficiary interests in real estate
As to trust beneficiary interests in real estate that have real estate properties as assets intrust, all accounts of assets and liabilities within assets in trust as well as all income
generated and expenses incurred from assets in trust are recorded in the relevant balance
sheet and statement of income account items.
The following material items of the assets in trust recorded in the relevant account items are
separately presented in the accompanying balance sheets.
i)
ii)
iii)

Cash and deposits in trust
Buildings in trust, structures in trust, machinery and equipment in trust, vehicles andtransport equipment in trust, tools, furniture and fixtures in trust, land in trust,construction in progress in trust and land leasehold rights in trust
Tenant leasehold and security deposits in trust(Additional Information)[Notes to Provision and Reversal of Allowance for Temporary Difference Adjustments]
15th period (From August 1, 2023 to January 31, 2024)
1.

Reason for provision, related assets, etc., and amount provided
Related assets, etc.

Fixed-term land leasehold rights in trust

2.

Reason for provision of allowance(Thousands of yen)
Allowance for temporary difference
adjustments

Occurrence of amortization of land leasehold
rights22,496

Specific method of reversal
Item

Fixed-term land leasehold rights in trust

Method of reversal
The amount to be treated will be reversed at the time of sale, etc.

16th period (From February 1, 2024 to July 31, 2024)
1.

Reason for provision, related assets, etc., and amount provided
Related assets, etc.

Buildings in trust and fixed-term landleasehold rights in trust

2.

Reason for provision of allowance
Occurrence of the expenses related to asset
retirement obligations and amortization of landleasehold rights

28,576

Specific method of reversal
Item

Buildings in trust and fixed-term landleasehold rights in trust(8)(Thousands of yen)
Allowance for temporary difference
adjustments

Method of reversal
The amount to be treated will be reversed at the time of sale, etc.

Notes to Financial Statements[Notes to Balance Sheets]
1.

Commitment line contracts
MFLP-REIT had the commitment line contracts with two banks.
15th period(As of January 31, 2024)(Thousands of yen)
16th period(As of July 31, 2024)

Total amount of commitment line contracts
Loans executed

10,000,000–

8,000,000–

Unused line of credit

10,000,000

8,000,000- 25 -

*2.

Allowance for temporary difference adjustments
15th period (From August 1, 2023 to January 31, 2024)
1.

Reason for provision, related assets, etc., and amount provided(Thousands of yen)

Related assets, Reason for provision
Initial amountetc.
of allowance
Fixed-term
Occurrence ofland leasehold amortization of land
rights in trust leasehold rights
2.

6,336

Balance at
beginning of
periodAmount ofprovision forthe period

–

6,336

Amount ofBalance at end
reversal for theof period
period–Reason forreversal of
allowance

6,336

–

Specific method of reversal
Item

Method of reversal

Fixed-term land leasehold rights in trust

The amount to be treated will be reversed at the time of sale, etc.

16th period (From February 1, 2024 to July 31, 2024)
1.

Reason for provision, related assets, etc., and amount provided(Thousands of yen)

Related assets, Reason for provision
Initial amountetc.
of allowance
Fixed-term
Occurrence ofland leasehold amortization of land
rights in trust leasehold rights
2.

28,832

Balance at
beginning of
periodAmount ofprovision forthe period

6,336

22,496–

Reason forreversal of
allowance

28,832–

Specific method of reversal
Item

Fixed-term land leasehold rights in trust*3.

Amount ofBalance at end
reversal for theof period
periodMethod of reversal
The amount to be treated will be reversed at the time of sale, etc.

Minimum net assets as required by the Article 67, Paragraph 4 of the Investment Trust Act
15th period(As of January 31, 2024)
50,000- 26 -(Thousands of yen)
16th period(As of July 31, 2024)
50,000[Notes to Statements of Income]*1.

Components of operating income from property leasing
15th period(From August 1, 2023
to January 31, 2024)

A. Property leasing business revenues
Property-related revenues
Rental revenues
Common area charges
Other revenues related to property leasing
Utilities charges
Parking lots
Others

10,587,529
550,637
594,09054,12059,139Total property leasing businessrevenues
B. Property leasing business expenses
Property-related expenses
Outsourcing service expenses
Utilities expenses
Repair expenses
Land rent
Taxes and dues
Depreciation and amortization
Others(Thousands of yen)
16th period(From February 1, 2024
to July 31, 2024)

11,138,167

11,253,769
566,247

11,820,017

707,350478,280
55,16959,943593,392

11,845,517

737,278
558,039
153,745
79,817
1,052,941
3,108,519
159,161

12,413,410

789,220
480,688
180,438
99,081
1,167,132
3,296,907
188,971

Total property leasing business
expenses

5,849,502

6,202,441

C. Operating income from property leasing[A-B]

5,996,015

6,210,968*2.

Compensation income
15th period (From August 1, 2023 to January 31, 2024)
MFLP-REIT recorded compensation income of ¥25,095 thousand that was received in relation to the correction of
deficiencies found at some logistics facilities.
16th period (From February 1, 2024 to July 31, 2024)
Not applicable.

[Notes to Investment and Rental Properties]
MFLP-REIT owns logistics facilities and industrial properties for the purpose of earning rental income. The carrying amount,net changes in the carrying amount during the periods and fair value of these investment and rental properties are as follows:
15th period(From August 1, 2023
to January 31, 2024)(Thousands of yen)
16th period(From February 1, 2024
to July 31, 2024)

Carrying amount
Balance at beginning of period

340,519,995

351,391,206

Changes during the period

10,871,211

24,823,502

Balance at end of period

351,391,206

376,214,708

432,010,000

461,810,000

Balance at end of period
Notes:
1.

The carrying amount represents acquisition cost less accumulated depreciation.

2.

Changes in the carrying amount during the 15th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests inreal estate for two properties (¥13,811,192 thousand), and the decrease mainly attributable to depreciation and amortization (¥3,108,519 thousand).
Changes in the carrying amount during the 16th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests inreal estate for four properties (¥27,767,868 thousand), and the decrease mainly attributable to depreciation and amortization (¥3,296,907 thousand).

- 27 -

3.

The fair value at the end of the period represents the appraisal value or surveyed value by external real estate appraisers.

Information about income and loss from investment and rental properties is stated in [Notes to Statements of Income].
[Notes to Revenue Recognition]
15th period (From August 1, 2023 to January 31, 2024)
Information on disaggregation of revenues from contracts with customers
For information on disaggregation of revenues from contracts with customers, please refer to “*1. Components of operating
income from property leasing” under [Notes to Statements of Income].
Note that revenues based on ASBJ Statement No. 13 “Accounting Standard for Lease Transactions” are included in “*1.
Components of operating income from property leasing.” Revenues from contracts with customers are primarily “utilities
charges.”
16th period (From February 1, 2024 to July 31, 2024)
Information on disaggregation of revenues from contracts with customers
For information on disaggregation of revenues from contracts with customers, please refer to “*1. Components of operating
income from property leasing” under [Notes to Statements of Income].
Note that revenues based on ASBJ Statement No. 13 “Accounting Standard for Lease Transactions” are included in “*1.
Components of operating income from property leasing.” Revenues from contracts with customers are primarily “utilities
charges.”- 28 -

[Notes to Segment and Related Information]
1.

Segment Information
Segment information has been omitted as MFLP-REIT engages in a single segment of the real estate leasing business.

2.

Related information
15th period (From August 1, 2023 to January 31, 2024)(1)

Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statements of income.

(2)

Information by geographical areai) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of thetotal operating revenues on the statements of income.

ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheets.
(3)

Information on major tenant
Disclosure of this information has been omitted because there is no tenant from which revenue makes up 10% ormore of the total operating revenues.

16th period (From February 1, 2024 to July 31, 2024)(1)

Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statements of income.

(2)

Information by geographical areai) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of thetotal operating revenues on the statements of income.

ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheets.
(3)

Information on major tenant
Disclosure of this information has been omitted because there is no tenant from which revenue makes up 10% ormore of the total operating revenues.

- 29 -

[Notes to Per Unit Information]
15th period(From August 1, 2023
to January 31, 2024)

16th period(From February 1, 2024
to July 31, 2024)

Net assets per unit

¥358,192¥356,465

Net income per unit

¥7,264¥7,170Notes:
1. Net income per unit is calculated by dividing net income by the daily weighted average number of investment units outstanding during the period.
Diluted net income per unit is not stated because there are no dilutive investment units.
2. The basis for calculating net income per unit is as follows:

Net income(thousands of yen)Amount not attributable to common unitholders(thousands of yen)
Net income attributable to common investment units(thousands of yen)
Average number of investment units for the period(units)- 30 -

15th period(From August 1, 2023
to January 31, 2024)

16th period(From February 1, 2024
to July 31, 2024)

4,405,997

4,359,519––

4,405,997

4,359,519

606,492

608,000

[Notes to Significant Subsequent Events]
Execution of the merger agreement between MFLP-REIT and ADL
Each REIT decided to conduct the Merger at their respective Board of Directors’ Meeting held on August 5, 2024, as
described below, and executed the Merger Agreement as of August 5, 2024.
(A) Purpose of the Merger
Looking at the Japanese economy, while being impacted by the sluggish pace of recovery of the global economy, its
growth in exports and corporate activity has contributed to a gentle recovery trend since the convergence of the novel
coronavirus disease (COVID-19). On the other hand, although the Bank of Japan has been normalizing its monetary
policy as economic and social activities recover, in the foreign exchange market, the yen has been weakening against the
backdrop of widening real interest rate differentials, and the current market environment remains uncertain due to
inflation, currency depreciation, and concerns about rising interest rates. In such environment, the current J-REIT marketof Tokyo Stock Exchange continues to be unstable, due to concerns about the ability to cope with inflation, such as rent
increases, and rising long-term interest rates.
Each REIT has managed their properties by taking advantage of their respective characteristics, aiming to secure stableearnings and steady growth of assets under management over the medium to long term. At the same time, however, they
are aware of common challenges. In other words, Each REIT recognizes the issues that expected yields on advanced
logistics facilities, the main investment targets, remain low due to their scarcity and high liquidity, and that opportunities
for large-scale property acquisitions through public offerings are limited, coupled with deteriorating J-REIT market
conditions against a backdrop of concerns over rising interest rates due to changes in the Bank of Japan’s monetary
policy.
Under these circumstances, MFLP-REIT and ADL have agreed to begin discussions regarding the Merger in March
2024, and have carefully considered the Merger, as a measure to address these issues and to contribute to the continuous
growth of unitholder value in respect of each of MFLP-REIT and ADL. As a results, Each REIT reached the common
understanding that the Merger is the best measure to contribute to the growth of unitholder value in respect of each of
MFLP-REIT and ADL and entered into the Merger Agreement on August 5, 2024. Each REIT considers that the Merger
has the following rationale:(i) Expanded asset size to elevate market presence
As a result of the Merger, the asset size after the Merger (Note) will increase to 49 properties and ¥576.5 billion((anticipated) acquisition price basis), and its presence in the J-REIT market will be enhanced. Furthermore,investment unit liquidity will be improved due to the expansion of asset size. While the J-REIT market is currently
in a slump, making external growth difficult, the Merger will realize rapid expansion of the asset size and achieve
MFLP’s medium-term asset size target of ¥500 billion. We will continue to aim for continuous external growth that
contributes to the enhancement of unitholder value and aim for sustainable growth as a representative of dedicatedlogistics J-REIT.
Note:
MFLP is scheduled to acquire three properties (total anticipated acquisition price: ¥10,763 million) on November 1, 2024, the effective
date of the Merger, subject to the Merger taking effect. The above asset size is the figure after the acquisition of the said assets.

(ii) Better stability resulting from advances in portfolio diversification
With the expansion of the number of properties through the Merger, portfolio diversification will progress, andincome stability will improve. After the Merger, the top 5 property ratio ((anticipated) acquisition price basis) will
decrease from MFLP-REIT 34.7% and ADL 72.9% to 30.3% and the top 5 tenant ratio (leased area basis) will also
remain low from MFLP-REIT 27.4% and ADL 70.7% to 29.8% due to the Merger, thus improving the stability ofincome.
(iii) Dual sponsorship structure with comprehensive developer and general trading company
Sponsor support will be strengthened by the dual sponsorship structure consisting of Mitsui Fudosan, acomprehensive developer, and ITOCHU Group, a general trading company. We will maintain our focus on quality
by incorporating, through the Merger, the dual brands of Mitsui Fudosan Logistics Park and i Missions Park, which
denote advanced logistics facilities, and aim to enhance unitholder value by external and internal growth throughfurther strengthening of property pipeline supply capability and leasing capability by maximally leveraging bothsponsors’ platforms and networks.
(B) Effective date of the Merger
November 1, 2024 (scheduled)- 31 -

(C) Form of the Merger
MFLP-REIT will be the surviving corporation under an absorption-type merger (kyushu gappei) and ADL will bedissolved in the Merger.
(D) Allocation of investment units under the Merger
MFLP-REIT (Surviving corporation in theabsorption-type merger)

ADL (Dissolving corporation in theabsorption-type merger)

1(Reference)
Before the Split of Investment Units
0.292

1.168
Allocation of investment units under the
MergerNote:
1.

The number of new MFLP-REIT investment units to be issued as a result of the Merger: 787,699 units (planned)

2. MFLP-REIT plans to split one investment unit into four investment units with October 31, 2024 as the record date for the split ofinvestment units and November 1, 2024 as the effective date of the split (the “Split of Investment Units”); the merger ratio shown
above and the number of the new investment units MFLP-REIT will allocate and deliver are subject to the Split of Investment Units
taking effect. The merger ratio before considering the Split of Investment Units would be MFLP-REIT 1: ADL 0.292.

3.

Fractions of less than one unit will be generated for the number of investment units to be allotted to the unitholders of ADL throughthe allotment of 1.168 units of MFLP-REIT per unit of ADL. These fractional units will be sold through a market transaction inaccordance with statutory provisions, and the proceeds from the sale will be delivered to the unitholders who hold fractions, in
proportion to the size of their fractional holding.

(E) Split of investment units
MFLP-REIT plans to split one investment unit into four investment units with October 31, 2024 as the record date forthe split of investment units and November 1, 2024 as the effective date of the split; the merger ratio shown above andthe number of the new investment units MFLP-REIT will allocate and deliver are subject to the Split of Investment Units
taking effect.
The Merger will be performed by way of an absorption-type merger with MFLP-REIT as the surviving corporation, andthe merger ratio before considering the Split of Investment Units would be MFLP-REIT 1: ADL 0.292. However, withthis merger ratio, 0.292 MFLP-REIT investment units will be allotted to every ADL investment unit, resulting in a large
number of ADL unitholders that will receive MFLP-REIT investment units of less than one unit. For this reason, in orderto enable the ADL unitholders to continue to hold MFLP-REIT investment units after the Merger, we decided to split
MFLP-REIT investment units at a ratio of four investment units per one investment unit, for the purpose of providing atleast one MFLP-REIT investment unit to all ADL unitholders. As a result of the Split of Investment Units, ADL
unitholders will be allotted 1.168 MFLP-REIT investment units after the Split of Investment Units for each ADL
investment unit as described in (D) above.
Number of Investment Units to be Increased by the Split of Investment Units is as follows:(i) Total number of outstanding investment units before the Split of
608,000 units
Investment Units(ii) Number of investment units to be increased by the Split of Investment 1,824,000 units
Units(iii) Total number of outstanding investment units after the Split of
2,432,000 units
Investment Units(iv) Total number of outstanding MFLP-REIT investment units after the 3,219,699 units (Note 1)
Merger(v) Total number of authorized investment units after the Split of
32,000,000 units (Note 2)
Investment Units and the Merger
Notes:
1.

The number under the assumption that, in connection with the Merger, 1.168 MFLP-REIT investment units following theSplit of Investment Unit would be allocated to every ADL investment unit with respect to all outstanding ADL investment
units (674,400 units) as of the date of this document

2.

The current total number of authorized MFLP-REIT investment units is 8,000,000 units. However, in connection with theSplit of Investment Units, the Articles of Incorporation of MFLP-REIT will be partially amended, and the total number ofauthorized investment units will be changed as of the effective date of the Merger.

(F) Impact on per unit information for MFLP-REIT
The per-unit information for the fiscal period under review, assuming that the split of investment units had been
implemented at the beginning of the fiscal period under review, is as follows:(i) Net assets per unit:(ii) Net income per unit:¥89,116¥1,792- 32 -

(G) Payment upon the Merger
Instead of cash distributions to the unitholders of ADL for ADL’s final fiscal period ending on the day immediately prior
to the effective date of the Merger, MFLP-REIT will, within a reasonable period after the effective date of the Merger,
make a cash distribution to the unitholders listed or recorded on the final unitholders register of ADL as of the day
immediately prior to the effective date of the Merger (excluding the unitholders of ADL who have demanded thepurchase of their investment units pursuant to the provisions of Article 149-3 of the Investment Trust Act (excluding
unitholders who have withdrawn such demand for purchase)) (the “Allotted Unitholders”), in an amount equivalent tothe cash distributions for the fiscal period (the payment will be the amount of distributable profit of ADL as of the day
immediately prior to the effective date of the Merger divided by the number of investment units that is obtained bydeducting (a) the number of investment units held by the unitholders other than the Allotted Unitholders from (b) the
number of investment units issued and outstanding of ADL, as of the day immediately prior to the effective date of the
Merger (such calculated amount being rounded down to the nearest whole yen)).
(H) Summary of the immediately preceding fiscal period (ended February 2024) of the dissolving corporation in theabsorption-type merger (ADL)
Description of business
Operating revenues
Net income
AssetsLiabilities
Net assets

To invest assets mainly in the specified assets as defined in the Investment Trust Act¥3,728 million¥1,661 million¥135,180 million¥60,873 million¥74,307 million

Reference Information(A) Execution of an absorption-type company split agreement by the Asset Management Company
Concurrently with the Merger, the Asset Management Company and ITOCHU REIT Management Co., Ltd.
(“IRM”), the asset management company to which ADL entrusts its asset management, at the Board of Directors’Meeting held on August 5, 2024, respectively resolved to undertake an absorption-type company split, with
November 1, 2024 as the effective date of the absorption-type company split, whereby the Asset Management
Company that is to be the successor company in the absorption-type company split will take over the asset
management business related to logistics facilities etc., which is entrusted to IRM by ADL, from IRM that is to be
the splitting company in the absorption-type company split (the “Company Split”), and the Asset Management
Company and IRM entered into an absorption-type company split agreement on August 5, 2024.
As a result of the Merger and the Company Split, IRM will become a shareholder of the Asset Management
Company (holding 23% of the voting rights), the Asset Management Company will be entrusted by MFLP-REIT(MFLP-REIT after the Merger between MFLP-REIT and ADL) to manage assets.
(B) Partial amendments to the Articles of Incorporation of MFLP-REIT
MFLP-REIT plans to propose partial amendments to the Articles of Incorporation at the general meeting ofunitholders scheduled to be held on September 30, 2024 (the “General Meeting of Unitholders”).
<Planned partial amendments to the Articles of Incorporation>(The underlined sections indicate amendments.)
Current Articles of Incorporation
Article 6

Proposed Amendments(Total Number of Issuable Investment Units)

1. The total number of issuable investment units of MFLPREIT shall be 8 million units.
2 - 3.
Article 29(Omitted)

Article 6

1. The total number of issuable investment units of MFLPREIT shall be 32 million units.
2 - 3.

(Types, Purposes, and Scope of Assets Targeted for
Asset Management)(Total Number of Issuable Investment Units)

Article 29(Unchanged)(Types, Purposes, and Scope of Assets Targeted for
Asset Management)

1 - 2.

(Omitted)

1 - 2.

(Unchanged)

3.

(Omitted)

3.

(Unchanged)(1) - (11)(Omitted)(1) - (11)(New)(12) Investments set forth under the Shinkin Bank Act(12) Other rights that may be necessary or useful to acquire inconnection with investments in real estate-related assets.
4 - 5.

(Omitted)(13) Other rights that may be necessary or useful to acquire inconnection with investments in real estate-related assets.
4 - 5.

- 33 -(Unchanged)(Unchanged)

Current Articles of Incorporation
Article 34

Proposed Amendments(Settlement Date)

Article 34

The operating period of MFLP-REIT shall be from February 1 toJuly 31 of each year, and from August 1 to January 31 of thefollowing year (the last day of each operating period shall bereferred to as “Settlement Date”).

Article 37
1.

(Standards for Payment of Asset Management Fees
to the Asset Management Company)(Omitted)(1)

The operating period of MFLP-REIT shall be from February 1 toJuly 31 of each year, and from August 1 to January 31 of thefollowing year (the last day of each operating period shall bereferred to as “Settlement Date”). However, the operating period
for the 17th fiscal period shall be from August 1, 2024 toOctober 31, 2024, and the operating period for the 18th fiscal
period shall be from November 1, 2024 to July 31, 2025.
Article 37
1.

Asset Management Fee Ⅰ

Asset Management Fee II(2)Asset Management Fee III- 34 -

Asset Management Fee II
For each operating period of MFLP-REIT, AssetManagement Fee II shall be the amount equivalent to therate (rounded down to the nearest one yen, and zero yen
in case of negative value) which is separately agreed
upon between MFLP-REIT and the Asset Management
Company, which shall not exceed 5.5% of the operating
income (provided, the amount after adding amortizationof goodwill) before deducting Asset Management Fees I,
II and III, and nondeductible consumption taxes anddepreciation on these Management Fees, calculated ateach Settlement Date of such operating period of MFLPREIT (“relevant Settlement Date”).

(3)

For each operating period of MFLP-REIT, AssetManagement Fee III shall be the amount calculated inaccordance with the following formula (rounded down to
the nearest one yen).

Asset Management Fee Ⅰ
For each operating period of MFLP-REIT, AssetManagement Fee Ⅰ shall be the amount of total assets(less an amount equal to unamortized goodwill) stated in
the balance sheet (limited to that approved by the Boardof Directors pursuant to the provisions of the Investment
Trusts Act) as at the Settlement Date of the immediately
preceding operating period of MFLP-REIT (“Last
Settlement Date”), multiplied by a rate separately agreed
upon between MFLP-REIT and the Asset Management
Company, which shall not exceed an annual rate of 0.1%
(calculated on a daily basis based on the actual numberof days in the relevant calculation period with 365 days
per year; rounded down to the nearest one yen). If
MFLP-REIT holds shares of or equity in a corporation
holding overseas real estate (hereinafter, “equity related
to a corporation holding overseas real estate”) as at theLast Settlement Date, and only if the amount equivalent
to MFLP-REIT’s interest in the overseas real estate, etc.
pertaining to such corporation holding overseas realestate (as defined below) has been finalized, the amountof total assets in the above calculation shall be theamount calculated by deducting the amounts of equity
related to the corporation holding overseas real estate,monetary claims that MFLP-REIT holds against said
corporation holding overseas real estate and bondsecurities issued by said corporation holding overseas
real estate (if any), and adding the amount equivalent tointerest in the overseas real estate, etc. as at the Last
Settlement Date. The “amount equivalent to interest in
the overseas real estate, etc.” refers to the amountcalculated by taking the amount of total assets of said
corporation holding overseas real estate (provided thatthe amount must be disclosed in MFLP-REIT’s financial
documents or asset management report as at the Last
Settlement Date), which shall be determined based on the
figures stated in the latest financial statements of said
corporation holding overseas real estate which areavailable to MFLP-REIT on or before the Settlement
Date of the said operating period (provided that suchfinancial statements must be dated before the Last
Settlement Date), and converted into Japanese currency
equivalent (calculated based on the foreign exchange rate
as at the settlement date of the operating period of said
financial statements of the corporation holding overseas
real estate), then multiplied by percentage of MFLPREIT’s equity interest in the corporation holding
overseas real estate as at the last settlement date of said
corporation holding overseas real estate.

For each operating period of MFLP-REIT, AssetManagement Fee II shall be the amount equivalent to therate (rounded down to the nearest one yen, and zero yen
in case of negative value) which is separately agreed
upon between MFLP-REIT and the Asset Management
Company, which shall not exceed 5.5% of the operating
income before deducting Asset Management Fees I, II
and III, and non-deductible consumption taxes anddepreciation on these Management Fees, calculated ateach Settlement Date of such operating period of MFLPREIT (“relevant Settlement Date”).
(3)(Standards for Payment of Asset Management Fees
to the Asset Management Company)(Unchanged)(1)

For each operating period of MFLP-REIT, AssetManagement Fee Ⅰ shall be the amount of total assets
stated in the balance sheet (limited to that approved by
the Board of Directors pursuant to the provisions of theInvestment Trusts Act) as at the Settlement Date of theimmediately preceding operating period of MFLP-REIT(“Last Settlement Date”), multiplied by a rate separately
agreed upon between MFLP-REIT and the AssetManagement Company, which shall not exceed anannual rate of 0.1% (calculated on a daily basis based on
the actual number of days in the relevant calculation
period with 365 days per year; rounded down to thenearest one yen). If MFLP-REIT holds shares of or
equity in a corporation holding overseas real estate(hereinafter, “equity related to a corporation holding
overseas real estate”) as at the Last Settlement Date, andonly if the amount equivalent to MFLP-REIT’s interestin the overseas real estate, etc. pertaining to suchcorporation holding overseas real estate (as defined
below) has been finalized, the amount of total assets inthe above calculation shall be the amount calculated bydeducting the amounts of equity related to thecorporation holding overseas real estate, monetary claims
that MFLP-REIT holds against said corporation holding
overseas real estate and bond securities issued by said
corporation holding overseas real estate (if any), andadding the amount equivalent to interest in the overseas
real estate, etc. as at the Last Settlement Date. The“amount equivalent to interest in the overseas real estate,etc.” refers to the amount calculated by taking theamount of total assets of said corporation holding
overseas real estate (provided that the amount must be
disclosed in MFLP-REIT’s financial documents or asset
management report as at the Last Settlement Date),
which shall be determined based on the figures stated in
the latest financial statements of said corporation holding
overseas real estate which are available to MFLP-REIT
on or before the Settlement Date of the said operating
period (provided that such financial statements must be
dated before the Last Settlement Date), and converted
into Japanese currency equivalent (calculated based on
the foreign exchange rate as at the settlement date of theoperating period of said financial statements of thecorporation holding overseas real estate), then multipliedby percentage of MFLP-REIT’s equity interest in thecorporation holding overseas real estate as at the last
settlement date of said corporation holding overseas realestate.
(2)(Settlement Date)

Asset Management Fee III
For each operating period of MFLP-REIT, AssetManagement Fee III shall be the amount calculated inaccordance with the following formula (rounded down to
the nearest one yen).

Current Articles of Incorporation

Proposed Amendments<Formula>[Pre-tax earnings (provided, the amount after
compensating the full amount of losses carried forward,
if any) before deducting Asset Management Fees I, II
and III, and non-deductible consumption taxes on theseManagement Fees, calculated at each Settlement Date ofsuch operating period of MFLP-REIT] x EPU x a rate
separately agreed upon between MFLP-REIT and theAsset Management Company, which shall not exceed
0.001%, whereas:
EPU=A/B
A: Pre-tax earnings (provided, the amount after
compensating the full amount of losses carriedforward, if any) before deducting Asset Management
Fees I, II and III, and non-deductible consumption
taxes on these Management Fees, calculated at each
Settlement Date of such operating period of MFLPREIT
B: Number of issued investment units at the relevant
Settlement Date(4) - (7)2.

<Formula>[Pre-tax earnings (provided, the amount after adding
amortization of goodwill and deducting gain on negative
goodwill, and compensating the full amount of losses
carried forward, if any) before deducting AssetManagement Fees I, II and III, and nondeductible
consumption taxes on these Management Fees,
calculated at each Settlement Date of such operating
period of MFLP-REIT] x EPU x a rate separately agreed
upon between MFLP-REIT and the Asset Management
Company, which shall not exceed 0.001% (provided,
however, that if a relevant operating period falls short ofsix months or exceeds six months, the rate shall be
adjusted by multiplying 0.001% by “183 divided by theactual number of days in the relevant operating period”),
whereas:EPU=A/B
A: Pre-tax earnings (provided, the amount after adding
amortization of goodwill and deducting gain on
negative goodwill, and compensating the full amountof losses carried forward, if any) before deducting
Asset Management Fees I, II and III, and nondeductible consumption taxes on these Management
Fees, calculated at each Settlement Date of suchoperating period of MFLP-REIT
B: Number of issued investment units at the relevant
Settlement DateIf, during the relevant operating period, a split orconsolidation of investment units comes into effectand the number of investment units issued increases
or decreases as a result, the amount of AssetManagement Fee III shall be adjusted by method
stipulated below.
i If the investment units of MFLP-REIT are split at aratio of 1: X, the amount of the Asset Management
Fee III for the relevant operating period and each
operating period thereafter shall be X times thecalculated value of Asset Management Fee III(rounded down to the nearest one yen) according to
the above formula (or after adjustments if adjusted as
per this adjustment clause).
ii If the investment units of the MFLP-REIT are
consolidated at a ratio of Y: 1, the amount of AssetManagement Fee III for the relevant operating period
and each operating period thereafter shall be 1 timesof Y the calculated value of Asset Management Fee
III (rounded down to the nearest one yen) according
to the above formula (or after adjustments if adjusted
as per this adjustment clause).

(Omitted)(4) - (7)(Omitted)

2.

(New)

(Unchanged)(Unchanged)
CHAPTER 9
Supplementary Provisions

Article 42(Effectuation of Amendments)

1. The amendments to the provisions of Article 6, Paragraph 1,
Article 29, Paragraph 3, Article 34, and Article 37,
Paragraph 1 of the Articles of Incorporation shall take effectsubject to an absorption-type merger taking effect, which isbased on the merger agreement dated August 5, 2024
executed between MFLP-REIT and Advance Logistics
Investment Corporation, whereby MFLP-REIT will be thesurviving corporation and Advance Logistics Investment
Corporation will be the dissolving corporation in the merger(the “Merger”). These amendments shall come into effect on
the effective date of the Merger. Of the amendments to theprovisions of Article 37, Paragraph 1, Item 3 of the Articles
of Incorporation, the revision of adding the wording“(provided, however, that if a relevant operating period falls
short of six months or exceeds six months, the rate shall be
adjusted by multiplying 0.001% by “183 divided by theactual number of days in the relevant operating period”)”
shall be applicable starting from the calculation of AssetManagement Fee III for the operating period for the 17th
fiscal period after Article 34 has been amended.
2. The provisions of this Chapter shall be eliminated as of theeffective date of the Merger and after the amendments
become effective in accordance with the preceding
paragraph.

- 35 -

[Omission of Disclosure]
The notes to statements of changes in net assets, statements of cash flows, lease transactions, financial instruments,
securities, derivative transactions, retirement benefits, tax effect accounting, transactions with related parties and asset
retirement obligations have been omitted as the necessity to disclose them in the financial results report is deemed slight.

- 36 -

(9)Changes in Total Number of Investment Units Issued and Outstanding
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital, net of
MFLP-REIT for the most recent five years until July 31, 2024.

Date

Description

Total number of investment units
issued and outstanding(units)Increase(Decrease)

Unitholders’ capital, net(millions of yen)
(Note 1)

Balance

Increase(Decrease)

Balance

Remarks

October 15,
2019

Distribution of cash inexcess of retained
earnings (return ofcapital)–379,000(259)

106,822(Note 2)February 3, 2020

Capital increase
through public offering

59,000438,000

28,289135,111(Note 3)February 27,
2020

Capital increase
through third-party
allotment

3,000

441,000

1,438

136,549(Note 4)

April 23, 2020

Distribution of cash inexcess of retained
earnings (return ofcapital)–

441,000(257)

136,292(Note 5)October 5, 2020

Capital increase
through public offering

96,190537,190

45,922

182,214(Note 6)

October 19,
2020

Capital increase
through third-party
allotment

4,810

542,000

2,296

184,510(Note 7)

October 21,
2020

Distribution of cash inexcess of retained
earnings (return ofcapital)–542,000(342)

184,168(Note 8)

April 22, 2021

Distribution of cash inexcess of retained
earnings (return ofcapital)–542,000(368)

183,800(Note 9)October 12,
2021

Distribution of cash inexcess of retained
earnings (return ofcapital)–542,000(527)

183,272(Note 10)February 1, 2022

Capital increase
through public offering

32,380574,380

17,082200,355(Note 11)February 24,
2022

Capital increase
through third-party
allotment

1,620

576,000854

201,209(Note 12)April 22, 2022

Distribution of cash inexcess of retained
earnings (return ofcapital)–576,000(538)

200,671(Note 13)

October 21,
2022

Distribution of cash inexcess of retained
earnings (return ofcapital)–576,000(646)

200,025(Note 14)

April 21, 2023

Distribution of cash inexcess of retained
earnings (return ofcapital)–576,000(633)

199,391(Note 15)

August 9, 2023

Capital increase
through public offering

30,470606,470

14,086

213,478(Note 16)

August 23, 2023

Capital increase
through third-party
allotment

1,530

608,000

707

214,185(Note 17)

- 37 -

Date

Description

Total number of investment units
issued and outstanding(units)Increase(Decrease)

Unitholders’ capital, net(millions of yen)
(Note 1)

Balance

Increase(Decrease)

Balance

Remarks

October 12,
2023

Distribution of cash inexcess of retained
earnings (return ofcapital)–608,000(804)

213,381(Note 18)

April 19, 2024

Distribution of cash inexcess of retained
earnings (return ofcapital)–608,000(981)

212,399(Note 19)

Notes:
1.

“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.” This, however, does not take into account theamount deducted from unitholders’ capital arising from the implementation of distributions in excess of retained earnings from allowance for temporary
difference adjustments.

2.

By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2019, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥685 per unit was declared as distribution of cash for the 6th
fiscal period (fiscal period ended July 31, 2019), the payout of which commenced on October 15, 2019.

3.

New investment units were issued through public offering at an issue price of ¥495,747 (paid-in amount of ¥479,476) per unit mainly for the purpose of
procuring funds for acquisition of new properties.

4.

Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥479,476 per unit.

5.

By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 13, 2020, distribution of cash in excess of retained earnings (return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥679 per unit was declared as distribution of cash for the 7th fiscal
period (fiscal period ended January 31, 2020), the payout of which commenced on April 23, 2020.

6.

New investment units were issued through public offering at an issue price of ¥493,350 (paid-in amount of ¥477,411) per unit mainly for the purpose of
procuring funds for acquisition of new properties.

7.

Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥477,411 per unit.

8.

By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 16, 2020, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥777 per unit was declared as distribution of cash for the 8th
fiscal period (fiscal period ended July 31, 2020), the payout of which commenced on October 21, 2020.

9.

By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 12, 2021, distribution of cash in excess of retained earnings (return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥679 per unit was declared as distribution of cash for the 9th fiscal
period (fiscal period ended January 31, 2021), the payout of which commenced on April 22, 2021.

10. By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2021, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥974 per unit was declared as distribution of cash for the 10th
fiscal period (fiscal period ended July 31, 2021), the payout of which commenced on October 12, 2021.
11. New investment units were issued through public offering at an issue price of ¥545,190 (paid-in amount of ¥527,576) per unit mainly for the purpose of
procuring funds for acquisition of new properties.
12. Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥527,576 per unit.
13. By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2022, distribution of cash in excess of retained earnings (return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥993 per unit was declared as distribution of cash for the 11th fiscal
period (fiscal period ended January 31, 2022), the payout of which commenced on April 22, 2022.
14. By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2022, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥1,122 per unit was declared as distribution of cash for the
12th fiscal period (fiscal period ended July 31, 2022), the payout of which commenced on October 21, 2022.
15. By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 14, 2023, distribution of cash in excess of retained earnings (return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥1,100 per unit was declared as distribution of cash for the 13th fiscal
period (fiscal period ended January 31, 2023), the payout of which commenced on April 21, 2023.
16. New investment units were issued through public offering at an issue price of ¥477,750 (paid-in amount of ¥462,315) per unit mainly for the purpose of
procuring funds for acquisition of new properties.
17. Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥462,315 per unit.
18. By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2023, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥1,397 per unit was declared as distribution of cash for the
14th fiscal period (fiscal period ended July 31, 2023), the payout of which commenced on October 12, 2023.
19. By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 14, 2024, distribution of cash in excess of retained earnings (return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥1,614 per unit was declared as distribution of cash for the 15th fiscal
period (fiscal period ended January 31, 2024), the payout of which commenced on April 19, 2024.

- 38 -

3.

Reference Information(1)

Status of Investment

Type of asset

Geographic
classification(Note 1)

Use

Logistics
facilities
Real estate intrust(Note 4)(Note 5)15th period(As of January 31, 2024)
Total amount held(millions of yen)
(Note 2)

As a percentage
As a percentage
Total amount heldof total assets
of total assets(millions of yen)(%)(%)
(Note 2)
(Note 3)(Note 3)Tokyo
metropolitan area

176,90949.0

200,173

51.8

Kansai area

108,44430.0

107,490

27.8

Other areas

40,252

11.1

42,993

11.1

325,60790.2

350,657

90.8

25,783

7.1

25,557

6.6

–

–

–

–

SubtotalTokyo
metropolitan area

Industrial realestate(Note 6)16th period(As of July 31, 2024)

Kansai area
Other areas
Subtotal

Real estate in trust total
Deposits and other assets
Total assets

–

–

–

–

25,783

7.1

25,557

6.6

351,39197.3

376,214

97.4

9,716

2.7

9,947

2.6

361,107

100.0

386,162

100.0

15th period(As of January 31, 2024)
Amount(millions of yen)

As a percentage
of total assets(%)(Note 3)16th period(As of July 31, 2024)
Amount(millions of yen)

As a percentage
of total assets(%)(Note 3)

Total liabilities

143,32639.7

169,431

43.9

Total net assets

217,78160.3

216,730

56.1

Notes:
1.

“Tokyo metropolitan area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture, Saitama Prefecture and Ibaraki Prefecture. “Kansai area” refers to
Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, Nara Prefecture and Shiga Prefecture.

2.

“Total amount held” is based on the carrying amount (for real estate in trust, the book value after depreciation and amortization) as at the end of eachaccounting period, rounded down to the nearest million yen.

3.

“As a percentage of total assets” is rounded to the first decimal place.

4.

“Real estate in trust” refers to real estate of trust beneficiary interests that have mainly real estate in trust.

5.

For real estate in trust, the amount does not include the amount of construction in progress in trust.

6.

“Industrial real estate” refers to data centers, communications facilities, research facilities, factories, supply and treatment facilities, and other real estateserving as corporate bases. The same shall apply hereinafter.

(2)

Investment Assetsi) Major investment securities
Not applicable.

ii) Investment properties
Real estate trust beneficiary interests held by MFLP-REIT are included in the below section “iii) Other major investment
assets.”- 39 -

iii) Other major investment assets(A)

Summary of the assets held
The following summarizes the real estate in trust held by MFLP-REIT.
a.

List of portfolio
The property names, addresses, acquisition dates, acquisition prices, acquisition price ratios, book values andappraisal values of the portfolio assets are as follows.

Category

Logistics
facilities

Acquisition
price(millions of yen)
(Note 1)

Acquisition
price ratio(Note 2)

Appraisal value
Book value(millions of yen) (millions of yen)
(Note 3)(Note 4)

Property no.

Property nameLocation

Acquisition date

L-1

GLP/MFLP
Ichikawa
Shiohama(Note 5)

Ichikawa-shi,
Chiba

September 1,
2016

15,5003.9

14,412

20,650

L-2

MFLP Kuki

Kuki-shi,
Saitama

August 2, 2016

12,5003.1

11,01815,700

L-3

MFLP
Yokohama
Daikoku(Note 5)

Yokohama-shi,August 2, 2016
Kanagawa

10,1002.5

9,418

11,300

L-4

MFLP Yashio

Yashio-shi,
Saitama

August 2, 2016

9,650

2.4

8,770

12,400

L-5

MFLP Atsugi

Aiko-gun,Kanagawa

August 2, 2016

7,810

2.0

6,894

10,400

L-6

MFLP
Funabashi
Nishiura

Funabashi-shi,
Chiba

August 2, 2016

6,970

1.7

6,269

8,490

L-7

MFLP Kashiwa

Kashiwa-shi,
Chiba

August 2, 2016

6,300

1.6

5,566

8,120

L-8

MFLP Sakai(Note 6)

Sakai-shi, Osaka August 2, 2016

23,6005.9

22,011

28,200

L-9

MFLP Komaki(Note 7)

Komaki-shi,
Aichi

August 4, 2017

8,260

2.1

7,187

9,080

L-10

MFLP Hino(Note 5, 8)

Hino-shi, Tokyo

February 2,
201812,533

3.1

11,638

14,100

L-11

MFLP Hiratsuka

Hiratsuka-shi,
Kanagawa

March 15, 2018

7,027

1.8

6,449

8,380

L-12

MFLP Tsukuba(Note 9)Tsukubamiraishi, Ibaraki

December 3,
2018

8,781

2.2

8,092

11,300

L-13

MFLP Inazawa

Inazawa-shi,
Aichi

February 4,
201916,2004.1

14,40919,100

L-14

MFLP Atsugi II

Isehara-shi,
Kanagawa

February 4,
201913,1003.3

11,994

15,600

L-15

MFLP Fukuoka
I(Note 10)

Sue-machi,
Kasuya-gun,
Fukuoka

February 4,
2019

5,263

1.3

4,725

6,710

L-16

MFLP Prologis
Park Kawagoe(Note 5)

Kawagoe-shi,
SaitamaFebruary 5,
2020

14,8003.7

13,971

17,850

L-17

MFLP
Hiroshima I

Hiroshima-shi,
Hiroshima

March 2, 2020

14,480

3.6

13,481

16,800

L-18

MFLP Ibaraki

Ibaraki-shi,
Osaka

October 6, 2020

58,90014.7

56,03068,900

L-19

MFLP
Kawaguchi I

Kawaguchi-shi,
October 6, 2020
Saitama

18,5004.6

17,893

20,600

L-20

MFLP Yachiyo
Katsutadai

Yachiyo-shi,
Chiba

February 2,
2022

18,0004.5

17,42919,200

L-21

MFLP Osaka I

Osaka-shi,OsakaFebruary 2,
2022

13,9003.5

13,57014,700

L-22

MFLP Hiratsuka Hiratsuka-shi,II
Kanagawa

February 2,
2022

12,7003.2

12,38913,700

L-23

MFLP Osaka
Katano(Note 11)

Katano-shi,OsakaFebruary 1,
2023

16,5004.1

15,877

16,400

L-24

MFLP Tomei
Ayase(Note 12)

Ayase-shi,
Kanagawa

August 10, 2023

19,5304.9

19,53619,800- 40 -

Category

Property no.

Property name

L-25

MFLP
Tokorozawa(Note 11)

Location

Acquisition dateMiyoshi-machi,
Iruma-gun,August 10, 2023
Saitama

L-26

MFLP Hiratsuka Hiratsuka-shi,
III
Kanagawa

February 1,

L-27

MFLP Shinkiba
Koto-ku, TokyoI

February 1,

2024
2024

Acquisition
price(millions of yen)
(Note 1)

Acquisition
price ratio(Note 2)

Appraisal value
Book value(millions of yen) (millions of yen)
(Note 3)(Note 4)

4,090

1.0

4,009

4,090

8,410

2.1

8,445

8,460

5,940

1.5

5,973

6,140

3,040

0.8

3,190

3,040

372,38493.2

350,657

429,210

SG Realty
L-28

MFLP
FukuokaKasuya(Note 5, 11)

Kasuya-machi,
Kasuya-gun,
Fukuoka

February 1,
2024

Logistics facilities total
Industrial realestate

I-1

MFIP Inzai(Note 13)

Inzai-shi, Chiba August 2, 2016

12,2203.1

11,17014,700

I-2

MFIP Inzai II

Inzai-shi, Chiba March 16, 2021

17,90015,1503.8

14,387

Industrial real estate total

27,3706.8

25,55732,600

Total

399,754100.0

376,214461,810Notes:
1.

“Acquisition price” is the purchase price of each trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiary interest of
the assets held by MFLP-REIT, rounded down to the nearest million yen. The transaction price does not include the various costs required in theacquisition.

2.

“Acquisition price ratio” is the portfolio asset acquisition price share of MFLP-REIT of the total acquisition price rounded to the first decimal place.

3.

For “Book value,” the amount does not include the amount of construction in progress in trust.

4.

“Appraisal value” is the value in the real estate appraisal reports as of the valuation date of July 31, 2024. The appraisal of each asset held is entrusted toJapan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. and CBRE K.K.

5.

For GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Hino, MFLP Prologis Park Kawagoe and SG Realty MFLP Fukuoka Kasuya,acquisition price, book value and appraisal value are the prorated figures equivalent to the co-ownership interest (quasi co-ownership interest) in each
property that MFLP-REIT has acquired (50%, 50%, 25%, 50% and 50%, respectively).

6.

20% quasi co-ownership in MFLP Sakai was acquired on August 2, 2016, and 70% quasi co-ownership and 10% quasi co-ownership were additionallyacquired on February 5, 2020 and April 6, 2020, respectively, but the acquisition date lists the initial date of acquisition of the property.

7.

40% quasi co-ownership in MFLP Komaki was acquired on August 4, 2017, and 60% quasi co-ownership was additionally acquired on February 2, 2018,
but the acquisition date lists the initial date of acquisition of the property.

8.

15% quasi co-ownership in MFLP Hino was acquired on February 2, 2018, and 10% quasi co-ownership was additionally acquired on February 4, 2019,
but the acquisition date lists the initial date of acquisition of the property.

9.

60% quasi co-ownership in MFLP Tsukuba was acquired on December 3, 2018, and 40% quasi co-ownership was additionally acquired on March 1, 2019,
but the acquisition date lists the initial date of acquisition of the property.

10. 81% quasi co-ownership in MFLP Fukuoka I was acquired on February 4, 2019, and 19% quasi co-ownership was additionally acquired on April 5, 2019,
but the acquisition date lists the initial date of acquisition of the property.
11. The acquisition price, book value and appraisal value for MFLP Osaka Katano, MFLP Tokorozawa and SG Realty MFLP Fukuoka Kasuya include landleasehold rights in trust.
12. 50% co-ownership in MFLP Tomei Ayase was acquired on August 10, 2023, and 50% co-ownership was additionally acquired on March 15, 2024, but theacquisition date lists the initial date of acquisition of the property.
13. 20% quasi co-ownership in MFIP Inzai was acquired on August 2, 2016 and 80% quasi co-ownership was additionally acquired on February 4, 2019, but
the acquisition date lists the initial date of acquisition of the property.

- 41 -

b.

Summary of buildings
The property names, property types, site areas, total floor areas, completion dates and building ages of theportfolio assets are as follows.

Category

Total floor area(m²)
(Note 2)

Rampway-type
Logistics facilities

52,887105,019(52,509)

January 14, 2014

10.5

Slope-type
Logistics facilities

35,03773,153

July 7, 2014

10.1

MFLP Yokohama
Rampway-type
Daikoku
Logistics facilities(Note 5)47,974

100,530(50,265)

April 14, 2009

15.3

Property name

Property type
(Note 1)

L-1

GLP/MFLP
Ichikawa
Shiohama(Note 5)

L-2

MFLP Kuki

L-3

Logistics facilities

Site area (m²)(Note 2)

Property no.

Construction
completed(Note 3)

Building age(years)(Note 4)L-4MFLP Yashio

Box-type Logistics
facilities

23,422

40,728March 24, 2014

10.4

L-5

MFLP Atsugi

Slope-type
Logistics facilities

20,52240,942

March 13, 2015

9.4

L-6

MFLP Funabashi Box-type Logistics
Nishiura
facilities

15,51830,947

February 6, 2015

9.5

L-7

MFLP Kashiwa

Box-type Logistics
facilities

15,484

31,242

November 30,
2015

8.7

L-8

MFLP Sakai

Rampway-type
Logistics facilities

57,792

125,127

September 11,
2014

9.9

L-9

MFLP Komaki

Slope-type
Logistics facilities

23,48440,597January 31, 2017

7.5

L-10

MFLP Hino(Note 5)

Rampway-type
Logistics facilities

97,579205,200(51,300)

October 16, 2015

8.8

L-11

MFLP Hiratsuka

Box-type Logistics
facilities

16,39833,061

November 30,
2016

7.7

L-12

MFLP Tsukuba

Box-type Logistics
facilities

45,605

L-13

MFLP Inazawa

Slope-type
Logistics facilities

35,07472,883

May 31, 2017

7.2

L-14

MFLP Atsugi II

Slope-type
Logistics facilities

25,991

48,976

April 27, 2018

6.3

L-15

MFLP Fukuoka I

Box-type Logistics
facilities

20,09332,199October 12, 2016

7.8

L-16

MFLP Prologis
Park Kawagoe(Note 5)

Rampway-type
Logistics facilities

58,749117,337(58,668)

October 16, 2018

5.8

L-17

MFLP Hiroshima
Slope-type
I
Logistics facilities

33,78868,427

August 30, 2019

4.9

L-18

MFLP Ibaraki

Rampway-type
Logistics facilities

108,671

230,435

August 26, 2017

6.9

L-19

MFLP Kawaguchi
Slope-type
I
Logistics facilities

28,194

49,838October 31, 2019

4.8

L-20

MFLP Yachiyo
Katsutadai

Slope-type
Logistics facilities

35,75474,624

August 31, 2020

3.9

L-21

MFLP Osaka I

Slope-type
Logistics facilities

23,233

43,919July 16, 2020

4.0

L-22

MFLP Hiratsuka
Box-type Logistics
IIfacilities(Note 6)25,191

48,141

October 31, 2019

4.8

L-23

MFLP Osaka
Katano(Note 7, 8)

Slope-type
Logistics facilities

33,877

68,528September 10,
2021

2.9

L-24

MFLP Tomei
Ayase

Slope-type
Logistics facilities

27,052

56,764

July 25, 2022

2.0

L-25

MFLP
Tokorozawa(Note 8)

Box-type Logistics
facilities

10,70021,721

May 31, 2021

3.2

L-26

MFLP Hiratsuka Box-type Logistics
IIIfacilities

15,022

29,474

February 28, 2023

1.4

L-27

MFLP Shinkiba I

Box-type Logistics
facilities

4,695

9,584

February 28, 2023

1.4

L-28

SG Realty MFLP Box-type Logistics

17,981

35,626

September 30,

1.8- 42 -

Existing building:
37,027

Existing building: Existing building:June 30, 2010
14.1

Annex building:
25,457

Annex building: Annex building:March 30, 2018
6.3

Category

Property no.

Industrial realestateProperty name

Property type
(Note 1)

Fukuoka Kasuya(Note 5, 8)

facilities

Site area (m²)(Note 2)

Total floor area(m²)
(Note 2)

Construction
completed(Note 3)

(17,813)2022

Building age(years)(Note 4)

Logistics facilities total (average) (Note 5)

955,778

1,897,520(1,564,363)

–

7.1

I-1

MFIP Inzai

Data center

25,00040,478February 28, 2014

10.4

I-2

MFIP Inzai II

Data center

18,27427,268

May 31, 2020

4.2

43,27467,746–7.9

999,052

1,965,267(1,632,110)–

7.1

Industrial real estate total (average) (Note 5)
Total (average) (Note 5)
Notes:
1.

Property types are as follows: Rampway Logistics facilities are properties that are logistics facilities that provide spiral rampways that allow delivery trucks
to directly access truck berths located on multiple floors of the upper floors (hereinafter “Rampway-type Logistics facilities”), Slope Logistics facilities areproperties that are logistics facilities that provide slopes that allow delivery trucks to directly access some of the upper-floor truck berths (hereinafter“Slope-type Logistics facilities”), and Box Logistics facilities are properties that are logistics facilities that allow delivery trucks to access truck berths
located on the ground floor and are equipped with vertical conveyors for delivery to upper floors (hereinafter “Box-type Logistics facilities”). For
Industrial real estate, a specific usage is described in the “Property type” of the building.

2.

“Site area” and “Total floor area” are rounded down to the nearest whole number based upon presentations in the registers for the land or buildings in theportfolio assets of MFLP-REIT. “Total floor area” is the total floor area for main buildings and ancillary buildings. If there is more than one main building,“Total floor area” represents the total floor area for each main building. For MFLP Tsukuba, total floor area for existing buildings is in the upper section
and that for added buildings is in the lower section.

3.

“Construction completed” is the date of construction of the main building of each asset held by MFLP-REIT in the register. If there is more than one mainbuilding, the construction completed is the oldest date shown in the register. For MFLP Tsukuba, the completion date for existing buildings is in the upper
section and that for added buildings is in the lower section.

4.

“Building age” is the age from the date of completion in the register for the main building in the portfolio asset of MFLP-REIT to July 31, 2024, rounded
to the first decimal place. Sections for totals (averages) and sections for totals (averages) in each category describe the weighted average values based on
total floor taking into consideration the co-ownership interest (quasi co-ownership interest) in each property. For MFLP Tsukuba, the building age forexisting buildings is in the upper section and that for added buildings is in the lower section.

5.

Total floor areas for GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Hino, MFLP Prologis Park Kawagoe and SG Realty MFLP
Fukuoka Kasuya in parentheses are the prorated figures equivalent to the co-ownership interest (quasi co-ownership interest) in each property that MFLPREIT holds (50%, 50%, 25%, 50% and 50%, respectively). The values given for “Total floor area” in the sections for “Logistics facilities total (average)”and “Total (average)” express in parentheses either the total value in logistics facilities or the total value under “Total floor area” for each portfolio asset
taking into consideration the co-ownership interest (quasi co-ownership interest) in each property.

6.

Land for MFLP Hiratsuka II is a provisional replotting area located in the construction section for the Twin City Okami district land readjustment projectin the Hiratsuka City urban planning project. The site area represents the area of the provisional replotting area stated in the provisional replotting area
certificate.

7.

Land for MFLP Osaka Katano is a provisional replotting area located in the construction section for the Hoshidakita land readjustment project in theeastern Osaka urban planning project. The site area represents the total area of the provisional replotting area stated in the provisional replotting area
certificate.

8.

The site area for MFLP Osaka Katano, MFLP Tokorozawa and SG Realty MFLP Fukuoka Kasuya includes land leasehold rights in trust.

c.

Status of portfolio asset collateral
Not applicable.

- 43 -

(B)Summary of leasea.

Summary of lease
The property names, leasable areas, leased areas, occupancy rates, number of tenants, names of main tenants,
annual rents, tenant leasehold / security deposits, average lease periods and average remaining lease periods of theportfolio assets held by MFLP-REIT as at the end of the fiscal period under review are as follows.

Category

Logistics
facilities

Propertyno.

Property
nameLeasablearea (m²)(Note 1)

Leased area(m²)
(Note 2)

Occupancy
rate (%)(Note 3)

Number oftenants(tenants)(Note 4)

Name of main
tenant(Note 5)

Annual rent
(millions ofyen)(Note 6)

Tenantleasehold/security
deposits(millions ofyen)(Note 7)

L-1

GLP/MFLP
Ichikawa
Shiohama(Note 10)50,81350,813100.0

5

Rakuten, Inc.

868

150

13.1
(5.0)

L-2

MFLP Kuki

67,92567,925100.0

3

KOKUBUSHUTOKEN
CORP.

831

313

9.6
(0.5)

L-3

MFLP
Yokohama
Daikoku(Note 10)47,93947,939100.0

5Not disclosed(Note 11)

693

242

9.4
(2.1)

L-4

MFLP
Yashio39,692

39,692100.0

3e-LogiT co., ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-5

MFLP
Atsugi40,95840,958100.0

1

Sun Toshi
Tatemono
Kabushiki Kaisha

Notdisclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-6

MFLP
Funabashi
Nishiura

31,03431,034

100.0

1

DAIWA
CORPORATION,
Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-7

MFLP
Kashiwa

31,291

31,291100.0

1LOGISTEED
EastJapan, Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-8

MFLP Sakai

112,148

112,148100.0

7

BIC CAMERA
INC.

1,485

559

L-9

MFLP
Komaki38,80638,806

100.0

2

MEIKON CO.,
LTD.

Not
disclosed(Note 11)

Not
disclosed(Note 11)

L-10

MFLP Hino(Note 10)46,80146,801100.0

17Celestica Japan
K.K.

720

276

L-11

MFLP
Hiratsuka

33,05533,055100.0

Notdisclosed(Note 11)

Nippon Express
Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Existingbuilding:
37,938

Existingbuilding:
37,938Annexbuilding:
25,600Annex
building:
25,600100.0

1MARUBENILOGISTICS
CORPORATION

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Average lease
period (Averageremaining lease
period) (years)(Note 8, 9)

11.1
(4.8)
Not disclosed(Note 11)
7.9
(2.6)

L-12

MFLP
Tsukuba

L-13

MFLP
Inazawa

68,922

68,922100.0

2Japan Logistic
Systems Corp.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-14

MFLP
Atsugi II

48,03248,032100.0

2Japan Logistic
Systems Corp.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

- 44 -

Category

Logistics
facilities

Tenantleasehold/security
deposits(millions ofyen)(Note 7)

Average lease
period (Averageremaining lease
period) (years)(Note 8, 9)

Notdisclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Propertyno.

Property
nameLeasablearea (m²)(Note 1)

Leased area(m²)
(Note 2)

Occupancy
rate (%)(Note 3)

L-15

MFLP
Fukuoka I

32,21632,216100.0

1

Sagawa Global
Logistics Co., Ltd.

L-16

MFLP
Prologis Park
Kawagoe(Note 10)56,72356,723100.0

10Not disclosed(Note 11)

869

357

7.4
(3.7)

L-17

MFLP
Hiroshima I

66,66566,665100.0

4Sagawa Global
Logistics Co., Ltd.

958

454

8.7
(4.7)

L-18

MFLP
Ibaraki

208,811

208,811100.0

10

UNIQLO CO.,
LTD.

3,433

1,271

7.0
(1.4)

L-19

MFLP
Kawaguchi I

48,11948,119100.0

1Nakano Shokaico., ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-20

MFLP
YachiyoKatsutadai

69,83069,830100.0

1

LOGISTEED
EastJapan, Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-21

MFLP OsakaI

43,88043,880100.0

1Sangetsu
Corporation

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-22

MFLP
Hiratsuka II

46,52546,525100.0

2

Higashi Nihon
Kyuko Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-23

MFLP Osaka
Katano67,264

67,264100.0

Notdisclosed(Note 11)

NTT LOGISCO
Inc.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-24

MFLP Tomei
Ayase

54,14854,148

100.0

1

SENKO Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-25

MFLP
Tokorozawa

21,72521,725100.0

Notdisclosed(Note 11)

Dai Nippon
Printing Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-26

MFLP
Hiratsuka III

28,32728,327100.0

1

THIRD WAVECORPORATION

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-27

MFLP
Shinkiba I

9,585

9,585

100.0

1

Fit Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-28

SG Realty
MFLP
FukuokaKasuya(Note 10)

18,061

18,061100.0

1LOGISTEED
Kyusyu, Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

1,492,845

1,492,845

100.0

Not
disclosed(Note 11)–

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Subtotal(average)

Industrial
real estate

Name of main
tenant(Note 5)

Annual rent
(millions ofyen)(Note 6)

Number oftenants(tenants)(Note 4)

I-1

MFIP Inzai

Notdisclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

I-2

MFIP Inzai
II

30,90630,906100.0

1

Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)–

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

100.0

Not
disclosed(Note 11)–

23,163

8,378

Subtotal(average)
Total(average)

9.4
(3.9)

Notes:
1.

“Leasable area” is the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable basedon the lease agreement (Excluding lease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots. Leaseagreements for said buildings hereinafter referred to as “Subject Lease Agreements” in (B). Note that if the Subject Lease Agreements have been executed
as of July 31, 2024, the buildings or rooms for lease that are vacant as of the said date are included in the Subject Lease Agreements as being under leaseeven if the move-in or handover date has not occurred on the said date.) or floor plan, etc. for such building as of July 31, 2024, and does not include theleased area indicated in the lease agreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers
and the like. The same shall apply hereinafter in (B).

- 45 -

2.

“Leased area” is the total leased area rounded down to the nearest whole number presented in each Subject Lease Agreement for buildings in each portfolio
asset of MFLP-REIT as of July 31, 2024. If a master lease agreement has been executed for each portfolio asset held by MFLP-REIT as of July 31, 2024,
the total leased area represents the sum total of the area that is actually leased based on the Subject Lease Agreement signed with end-tenant rounded down
to the nearest whole number. The same shall apply hereinafter in (B).

3.

“Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings for each property held by MFLP-REIT as of July 31,
2024, rounded to the first decimal place. Occupancy rates for the subtotal (average) section and total (average) section are the share of the total leased areaof the properties of the total leasable area of said properties, rounded to the first decimal place.

4.

“Number of tenants” is the total number of Subject Lease Agreements for buildings in each portfolio asset of MFLP-REIT as of July 31, 2024. If a master
lease agreement has been executed for each portfolio asset held by MFLP-REIT as of July 31, 2024, it is the total number of the end-tenants. However, if
one lessee enters into a multiple number of the Subject Lease Agreements for the same building of assets held by MFLP-REIT as of July 31, 2024, thenumber of tenants is calculated on the assumption that such lessee is one party.

5.

“Names of main tenant” are the names of the tenants with the largest leased area presented in the Subject Lease Agreements for buildings in each portfolio
asset of MFLP-REIT as of July 31, 2024.

6.

“Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of lease agreements have been
executed), which is 12 times monthly rent indicated in the Subject Lease Agreements for buildings in each portfolio asset of MFLP-REIT as of July 31,
2024, rounded down to the nearest million yen. However, if there are different provisions for monthly rent depending on the time period in each Subject
Lease Agreement, the monthly rent (including common area charges) for July 2024 shown in said lease agreement is the basis of the calculation. The rentfree periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as of July 31, 2024 shall not be included.

7.

“Tenant leasehold/security deposits” represent the sum of the outstanding amounts of tenant leasehold/security deposits (the sum of the outstanding
amounts of tenant leasehold/security deposits if a multiple number of lease agreements have been executed), rounded down to the nearest million yen,shown in the Subject Lease Agreement for buildings in each portfolio asset of MFLP-REIT as of July 31, 2024. However, if there are different provisions
for the sum of outstanding leasehold/security deposits depending on the time period in each Subject Lease Agreement, the sum of the amount of tenantleasehold/security deposits for July 2024 shown in the lease agreement is the basis of the calculation.

8.

“Average lease period” is calculated by weight averaging the lease periods presented in the Subject Lease Agreements for buildings in each portfolio assetof MFLP-REIT as of July 31, 2024, with rents and rounded to the first decimal place. Concerning the Subject Lease Agreements, when a new leaseagreement (hereinafter, referred to as “re-contract”) starting on the day immediately following the expiration date (including the case of cancellation, thesame applies hereinafter) of the respective lease agreement is concluded with the same lessee in the Subject Lease Agreements as of July 31, 2024, lease
period is deemed to be from the start of the initial lease agreement to the expiration date of the re-contract, and used in the calculation as such.

9.

“Average remaining lease period” is calculated by weight averaging the remaining period of the lease periods after July 31, 2024, based on the Subject
Lease Agreements for buildings in each portfolio asset of MFLP-REIT as of July 31, 2024, with rents and rounded to the first decimal place. Concerning
the Subject Lease Agreements, when the re-contract is concluded with the same lessee as of July 31, 2024, the remaining period shall be calculated
assuming that the lease period continues from July 31, 2024 to the expiration date of the re-contract.

10. For GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Hino, MFLP Prologis Park Kawagoe and SG Realty MFLP Fukuoka Kasuya,leasable area, leased area, annual rent and tenant leasehold/security deposits are the prorated figures equivalent to the co-ownership interest (quasi coownership interest) in each property that MFLP-REIT holds (50%, 50%, 25%, 50% and 50%, respectively) as of July 31, 2024.
11. Not disclosed, because consent has not been obtained from the lessee.

- 46 -

b.

Occupancy rate trends
Trends in portfolio asset occupancy rates as at the end of each accounting period are as follows.
(%)
Occupancy rate (Note 1)

Category

Logistics
facilities

7th period(From August 1,
2019 to January
31, 2020)

8th period(From February
1, 2020 to July
31, 2020)

9th period(From August 1,
2020 to January
31, 2021)

10th period(From February
1, 2021 to July
31, 2021)

11th period(From August 1,
2021 to January
31, 2022)

GLP/MFLP
Ichikawa
Shiohama

87.6

100.0

100.0

100.0

100.0

L-2

MFLP Kuki

100.0

100.0

100.0

100.0

100.0

L-3

MFLP Yokohama
Daikoku

100.0

100.0

100.0

100.0

100.0

L-4

MFLP Yashio

100.0

100.0

100.0

100.0

100.0

L-5

MFLP Atsugi

100.0

100.0

100.0

100.0

100.0

L-6

MFLP Funabashi
Nishiura

100.0

100.0

100.0

100.0

100.0

L-7

MFLP Kashiwa

100.0

100.0

100.0

100.0

100.0

L-8

MFLP Sakai

100.0

100.0

100.0

100.0

100.0

L-9

MFLP Komaki

100.0

100.0

100.0

100.0

100.0

L-10

MFLP Hino

100.0

100.0

99.9

99.9

100.0

L-11

MFLP Hiratsuka

100.0

100.0

100.0

100.0

100.0

L-12

MFLP Tsukuba

100.0

100.0

100.0

100.0

100.0

L-13

MFLP Inazawa

100.0

100.0

100.0

100.0

100.0

L-14

MFLP Atsugi II

100.0

100.0

100.0

100.0

100.0

L-15

MFLP Fukuoka I

100.0

100.0

100.0

100.0

100.0

L-16

MFLP Prologis
Park Kawagoe

–

100.0

100.0

100.0

100.0

L-17

MFLP Hiroshima
I

–

100.0

100.0

100.0

100.0

L-18

MFLP Ibaraki

–

–

100.0

100.0

100.0

L-19

MFLP
Kawaguchi I

–

–

100.0

100.0

100.0

L-20

MFLP Yachiyo
Katsutadai

–

–

–

–

–

L-21

MFLP Osaka I

–

–

–

–

–

L-22

MFLP Hiratsuka
II

–

–

–

–

–

L-23

MFLP Osaka
Katano

–

–

–

–

–

L-24

MFLP Tomei
Ayase

–

–

–

–

–

L-25

MFLP
Tokorozawa

–

–

–

–

–

L-26

MFLP Hiratsuka
III

–

–

–

–

–

L-27

MFLP Shinkiba I

–

–

–

–

–

L-28

SG Realty MFLP
Fukuoka Kasuya

–

–

–

–

–

99.1

100.0

100.0

100.0

100.0

Property no.

Property nameL-1

Subtotal(average)

Industrial realestate

I-1

MFIP Inzai

Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)

I-2

MFIP Inzai II

–

–

–

100.0

100.0

Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)

99.1

100.0

100.0

100.0

100.0

Subtotal(average)
Total(average)- 47 -

(%)
Occupancy rate (Note 1)
Category

Logistics
facilities

12th period(From February
1, 2022 to July
31, 2022)

13th period(From August 1,
2022 to January
31, 2023)

14th period(From February
1, 2023 to July
31, 2023)

15th period(From August 1,
2023 to January
31, 2024)

16th period(From February
1, 2024 to July
31, 2024)

GLP/MFLP
Ichikawa
Shiohama

100.0

100.0

100.0

100.0

100.0

L-2

MFLP Kuki

100.0

100.0

100.0

100.0

100.0

L-3

MFLP Yokohama
Daikoku

100.0

100.0

100.0

100.0

100.0

L-4

MFLP Yashio

100.0

100.0

100.0

100.0

100.0

L-5

MFLP Atsugi

100.0

100.0

100.0

100.0

100.0

L-6

MFLP Funabashi
Nishiura

100.0

100.0

100.0

100.0

100.0

L-7

MFLP Kashiwa

100.0

100.0

100.0

100.0

100.0

L-8

MFLP Sakai

100.0

100.0

100.0

100.0

100.0

L-9

MFLP Komaki

100.0

100.0

100.0

100.0

100.0

L-10

MFLP Hino

96.8

100.0

100.0

100.0

100.0

L-11

MFLP Hiratsuka

100.0

100.0

100.0

100.0

100.0

L-12

MFLP Tsukuba

100.0

100.0

100.0

100.0

100.0

L-13

MFLP Inazawa

100.0

100.0

100.0

100.0

100.0

L-14

MFLP Atsugi II

100.0

100.0

100.0

100.0

100.0

L-15

MFLP Fukuoka I

100.0

100.0

100.0

100.0

100.0

L-16

MFLP Prologis
Park Kawagoe

100.0

94.2

94.2

94.2

100.0

L-17

MFLP Hiroshima
I

100.0

100.0

100.0

100.0

100.0

L-18

MFLP Ibaraki

100.0

100.0

100.0

100.0

100.0

L-19

MFLP
Kawaguchi I

100.0

100.0

100.0

100.0

100.0

L-20

MFLP Yachiyo
Katsutadai

100.0

100.0

100.0

100.0

100.0

L-21

MFLP Osaka I

100.0

100.0

100.0

100.0

100.0

L-22

MFLP Hiratsuka
II

100.0

100.0

100.0

100.0

100.0

L-23

MFLP Osaka
Katano

–

–

100.0

100.0

100.0

L-24

MFLP Tomei
Ayase

–

–

–

100.0

100.0

L-25

MFLP
Tokorozawa

–

–

–

100.0

100.0

L-26

MFLP Hiratsuka
III

–

–

–

–

100.0

L-27

MFLP Shinkiba I

–

–

–

–

100.0

L-28

SG Realty MFLP
Fukuoka Kasuya

–

–

–

–

100.0

99.9

99.7

99.8

99.8

100.0

Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)

Property no.

Property nameL-1

Subtotal(average)
I-1
Industrial realestate

I-2

MFIP Inzai
MFIP Inzai II
Subtotal(average)

Total(average)

100.0

100.0

100.0

100.0

100.0

Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)Not disclosed(Note 2)

99.9

99.8

99.8

99.8

100.0

Notes:
1.

“Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings for each property at the end of each accounting
period, rounded to the first decimal place. Occupancy rates for the subtotal (average) section and total (average) section are the share of the total leased
area of the properties of the total leasable area of said properties, rounded to the first decimal place.

2.

Not disclosed, because consent has not been obtained from the lessee.

- 48 -

c.

Information on major real estates and other properties
The following is an overview of the real estates held by MFLP-REIT whose annual rent makes up 10% or more of
the total annual rent for the entire portfolio as of July 31, 2024.

Property name

Annual rent (millions of yen)
(Note 1)

Rent ratio (%)(Note 2)

MFLP Ibaraki

3,433

14.8

Total

3,433

14.8

Notes:
1.

“Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of lease agreements have been
executed), which is 12 times monthly rent (including common area charges) indicated in the Subject Lease Agreements for buildings in each portfolio assetof MFLP-REIT as of July 31, 2024, rounded down to the nearest million yen. If a master lease agreement has been concluded based upon said portfolio
asset, this is calculated based upon lease agreements with the end-tenants. However, if there are different provisions for monthly rent depending on thetime period in the Subject Lease Agreement, the monthly rent (including common area charges) for July 2024 shown in said lease agreement is the basis of
the calculation. The rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as of July 31,
2024 shall not be included.

2.

“Rent ratio” is the ratio of the annual rent of said property to the total of annual rents for the entire portfolio rounded to the first decimal place.

d.

Information about main tenant
Disclosure of this information has been omitted as there were no tenants of the assets held by MFLP-REIT with aleased area of 10% or more of the total leased area of the entire portfolio as of July 31, 2024 (including endtenants for assets with a pass-through master lease agreement concluded or to be concluded, but not including
master lease companies concluding or planning to conclude said master lease agreements).

- 49 -

(C)Capital expenditures of real estate helda.

Schedule of capital expenditures
Of the capital expenditures accompanying renovations, etc. currently planned for real estate and real estate in trustof real estate trust beneficiary interests held by MFLP-REIT, the following are the major planned amounts. Theremay be cases where the planned construction amount ends up being in part expensed in accounting instead ofbeing capitalized.

Name of real estate, etc.

Location

PurposeScheduled time

Planned construction amount(millions of yen)
(Note)
Total amountAmount paid
during period

Total amountalready paid

MFLP Kuki

Kuki-shi, Saitama

Installation of LED lighting

From February 2025
to July 2025

75

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Exterior wall painting, etc.
(Section 13)

From July 2024
to December 2024

49

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Replacement of sensors

From August 2024
to June 2025

25

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Replacement of air
conditioning equipment andtotal heat exchanger

From February 2025
to June 2025

52

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Exterior wall painting, etc.
(Section 14)

From February 2025
to June 2025

51

–

–

MFLP Sakai

Sakai-shi, Osaka

Replacement of air
conditioning equipment

From October 2024
to January 2025

17

–

–

MFLP Sakai

Sakai-shi, Osaka

Replacement of mechanicalsecurity equipment

From December 2024
to July 2025

37

–

–

MFLP Sakai

Sakai-shi, Osaka

Replacement of ITV
equipment

From January 2025
to July 2025

74

–

–

MFLP Hino

Hino-shi, Tokyo

Full-scale replacement ofemergency and guidance
lighting fixtures

From September 2024
to January 2025

20

–

–

MFLP Tsukuba

Tsukubamirai-shi,
IbarakiExterior wall work (Section
2)

From August 2024
to October 2024

44

–

–

Note:
For “MFLP Yokohama Daikoku” and “MFLP Hino,” each planned construction amount is the prorated figures equivalent to the quasi co-ownership interest ineach property that MFLP-REIT holds (50% and 25%, respectively).

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b.

Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the
fiscal period under review for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period underreview amounted to ¥352 million and, other than this, there was ¥180 million in repair expenses categorized as
operating expenses in the fiscal period under review.

Name of real estate, etc.

Location

Purpose

PeriodConstruction amount(millions of yen)
(Note)MFLP Yokohama Daikoku

Yokohama-shi, Kanagawa

Exterior wall painting, etc.
(Section 12)

From March 2024
to June 2024

15

MFLP Funabashi Nishiura

Funabashi-shi, Chiba

Installation of LED lighting

From May 2023
to March 2024

40

MFLP Tsukuba

Tsukubamirai-shi, Ibaraki

Exterior wall work (Section
1)

From December 2023
to July 2024

144

MFLP Fukuoka I

Sue-machi, Kasuya-gun,
Fukuoka

Renewal of industrial
television server

From June 2024
to July 2024

11

MFLP Ibaraki

Ibaraki-shi, Osaka

Upgrade of electricity meters

From December 2023
to February 2024

32

Other capital expenditures

108
Total

352

Note:
For “MFLP Yokohama Daikoku,” the construction amount is the prorated figure equivalent to the quasi co-ownership interest in the property that MFLP-REIT
holds (50%).

c.

Cash reserves for long-term repair and maintenance plans
Not applicable.

- 51 -

(D)Status of individual asset earnings

Property no.

L-1

L-2

L-3

L-4

(Thousands of yen)
L-5

Name

GLP/MFLP
Ichikawa Shiohama

MFLP Kuki

MFLP Yokohama
Daikoku

MFLP Yashio

MFLP Atsugi

Management period

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

Number of days ofmanagement

182 days

182 days

182 days

182 days

182 days

Not disclosed(Note)

Not disclosed(Note)(A) Property
leasingbusiness
revenues

498,879

483,739

369,558

Real estateleasingbusiness
revenues

463,513450,233

350,803

Other revenues
related toproperty
leasing

35,36533,50518,754

121,422

123,738

100,607

Outsourcing
serviceexpenses

38,24035,64332,101

Utilities
expenses

23,932

29,721

15,403

Repairexpenses

4,809

12,846

8,962

Land rent–––

Taxes and dues

51,82642,232

41,640

Various costs
required

2,614

3,295

2,499

Other leasing
expenses–––(C) NOI (=A–B)

377,457

360,000

268,950

247,793

232,581(D) Depreciation
andamortization

80,259111,736

91,804

63,95663,864(E) Operating
income fromproperty
leasing (=C–D)

297,197248,263

177,145

183,836

168,716(B) Property
leasingbusiness
expenses- 52 -

Property no.

L-6

L-7

L-8

L-9

L-10

Name

MFLP Funabashi
Nishiura

MFLP Kashiwa

MFLP Sakai

MFLP Komaki

MFLP Hino

Management period

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

Number of days ofmanagement

182 days

182 days

182 days

182 days

182 days(A) Property
leasingbusiness
revenues

854,125

397,370

Real estateleasingbusiness
revenues

784,948

370,902

Other revenues
related toproperty
leasing

69,177

26,468(B) Property
leasingbusiness
expenses

Not disclosed(Note)

225,843

Not disclosed(Note)

Not disclosed(Note)

100,547

Outsourcing
serviceexpenses

62,62231,002

Utilities
expenses

53,70523,836

Repairexpenses

22,393

6,426

Land rent––

Taxes and dues

81,13737,863

Various costs
required

5,985

1,418

Other leasing
expenses––(C) NOI (=A–B)

183,034

178,557

628,282

176,301

296,823(D) Depreciation
andamortization

51,40950,022

207,922

89,89986,035(E) Operating
income fromproperty
leasing (=C–D)

131,624

128,535

420,359

86,402

210,787- 53 -

Property no.

L-11

L-12

L-13

L-14

L-15

Name

MFLP Hiratsuka

MFLP Tsukuba

MFLP Inazawa

MFLP Atsugi II

MFLP Fukuoka I

Management period

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

Number of days ofmanagement

182 days

182 days

182 days

182 days

182 days

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)(C) NOI (=A–B)

176,839

228,535

402,084

302,334

145,246(D) Depreciation
andamortization

51,63095,177

183,478

115,289

56,821(E) Operating
income fromproperty
leasing (=C–D)

125,209

133,357

218,606

187,045

88,425(A) Property
leasingbusiness
revenues
Real estateleasingbusiness
revenues
Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses
Outsourcing
serviceexpensesUtilities
expenses
Repairexpenses
Land rent
Taxes and dues
Various costs
required
Other leasing
expenses- 54 -

Property no.

L-16

L-17

L-18

L-19

L-20

Name

MFLP Prologis
Park Kawagoe

MFLP Hiroshima I

MFLP Ibaraki

MFLP Kawaguchi I

MFLP Yachiyo
Katsutadai

Management period

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

Number of days ofmanagement

182 days

182 days

182 days

182 days

182 days

Not disclosed

Not disclosed(Note)(Note)(A) Property
leasingbusiness
revenues

420,142512,222

1,842,694

Real estateleasingbusiness
revenues

397,622481,975

1,729,776

Other revenues
related toproperty
leasing

22,52030,246112,917

108,085

141,028

507,804(B) Property
leasingbusiness
expenses
Outsourcing
serviceexpenses

38,754

51,33599,083

Utilities
expenses

18,22819,491

88,749Repairexpenses

2,306

5,577

36,284

Land rent–––

Taxes and dues

46,842

61,029161,978

Various costs
required

1,952

3,594

121,709

Other leasing
expenses–––(C) NOI (=A–B)

312,056

371,193

1,334,889

390,534

409,372(D) Depreciation
andamortization

107,426

133,294

429,773

93,966

151,763(E) Operating
income fromproperty
leasing (=C–D)

204,630

237,899

905,115

296,568

257,609- 55 -

Property no.

L-21

L-22

L-23

L-24

L-25

Name

MFLP Osaka I

MFLP Hiratsuka II

MFLP Osaka
KatanoManagement period

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

Number of days ofmanagement

182 days

182 days

182 days

182 days

182 days

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)(C) NOI (=A–B)

278,491

283,026

414,070

338,647

99,240(D) Depreciation
andamortization

91,467

86,973

272,452

108,167

60,852(E) Operating
income fromproperty
leasing (=C–D)

187,024

196,053

141,618

230,479

38,388MFLP Tomei Ayase MFLP Tokorozawa(A) Property
leasingbusiness
revenues
Real estateleasingbusiness
revenues
Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses
Outsourcing
serviceexpensesUtilities
expenses
Repairexpenses
Land rent
Taxes and dues
Various costs
required
Other leasing
expenses- 56 -

Property no.

L-26

L-27

L-28

I-1

I-2

Name

MFLP Hiratsuka III

MFLP Shinkiba I

SG Realty MFLP
Fukuoka Kasuya

MFIP Inzai

MFIP Inzai II

Management period

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

From February 1,
2024 to July 31,
2024

Number of days ofmanagement

182 days

182 days

182 days

182 days

182 days

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)(C) NOI (=A–B)

198,622

119,621

83,190306,723

363,372(D) Depreciation
andamortization

65,947

19,654

48,981

96,391

130,486(E) Operating
income fromproperty
leasing (=C–D)

132,675

99,967

34,209210,331

232,885(A) Property
leasingbusiness
revenues
Real estateleasingbusiness
revenues
Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses
Outsourcing
serviceexpensesUtilities
expenses
Repairexpenses
Land rent
Taxes and dues
Various costs
required
Other leasing
expenses

Note:
Not disclosed, because consent has not been obtained from the tenants.

- 57 -

Property no.
Name
Management period

Total

Number of days ofmanagement(A) Property
leasingbusiness
revenues
Real estateleasingbusiness
revenues
Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses

12,413,410

11,820,017

593,392

2,905,533

Outsourcing
serviceexpenses789,220

Utilities
expenses

480,688

Repairexpenses

180,438

Land rent

99,081

Taxes and dues

1,167,132

Various costs
required

187,157

Other leasing
expenses

1,814(C) NOI (=A–B)

9,507,876(D) Depreciation
andamortization

3,296,907(E) Operating
income fromproperty
leasing (=C–D)

6,210,968- 58 -

Disclaimer
This document is a translation of the original Japanese document (“Kessan-Tanshin”) of Mitsui
Fudosan Logistics Park Inc. The Kessan-Tanshin of Mitsui Fudosan Logistics Park Inc. has been
prepared in accordance with generally accepted accounting principles in Japan (Japanese GAAP) andJapanese laws, which may materially differ in certain respects from generally accepted accounting
principles in other jurisdictions.
Figures indicated in units of one million yen have been rounded down to eliminate amounts of lessthan one million yen. Please note that this English translation of the original Japanese document was
prepared solely for the convenience of and reference by overseas investors, and is not intended to be
an offer for the sale, or solicitation of an offer to make a purchase, of any securities of Mitsui Fudosan
Logistics Park Inc.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be
precisely identical to the concept of the equivalent Japanese terms. With respect to any and all terms
herein, including without limitation, financial statements, if there exist any discrepancies in themeaning or interpretation thereof between the original Japanese document and English statements
contained herein, the original Japanese document will always govern the meaning and interpretation.
None of Mitsui Fudosan Logistics Park Inc., Mitsui Fudosan Logistics REIT Management Co., Ltd.
or any of their respective directors, officers, employees, partners, unitholders/shareholders, agents oraffiliates will be responsible or liable for the completeness, appropriateness or accuracy of English
translations. No person has been authorized to give any information or make any representations otherthan as contained in this document in relation to the matters set out in this document, and if given or
made, such information or representation must not be relied upon as having been authorized by Mitsui
Fudosan Logistics Park Inc., Mitsui Fudosan Logistics REIT Management Co., Ltd. or any of theirrespective directors, officers, employees, partners, unitholders/shareholders, agents or affiliates.
Many provisions of this document contain forward-looking statements and information. We base thesestatements on our beliefs as well as our assumptions based solely on certain limited information
currently available to us.
The forward-looking statements in this document are based on assumptions about the business of
Mitsui Fudosan Logistics Park Inc. and are subject to various risks and uncertainties. Please be awarethat actual financial conditions, operating results and businesses may differ materially from suchforward-looking statements. Mitsui Fudosan Logistics Park Inc. does not intend and disclaims any
duty or obligation to update or revise any forward-looking statements contained in this document toreflect new information, future events or otherwise. Investors should not place undue reliance on theforward-looking statements contained in this document.
Duplication or reproduction of any information contained in this document without the prior consent
of Mitsui Fudosan Logistics Park Inc. is strictly prohibited.

- 59 -