ESG Report2024

Contents
Views on ESG
・Top Message����������������������������������������������������� 1
・Policy for ESG Initiatives������������������������������������� 2
・Sustainability Promotion Structure����������������������� 4
・Supported Initiatives, External Evaluation, Etc.����� 6

ESG Report2024
We aim to maximize unitholder
value and contribute to ourstakeholders by leveraging
a strategic partnershipwith Mitsui Fudosan.

Environmental Initiatives
・Climate Change Initiatives���������������������������������� 8
・Environmental KPIs������������������������������������������15
・Environmental Performance Results
and Initiatives��������������������������������������������������17
・Initiatives to Obtain Green Building Certification���25

Social Initiatives
・Basic Approach Regarding Social Considerations���29
・Initiatives for Employees of the AssetManagement Company�������������������������������������34

Governance Initiatives
・Governance Framework������������������������������������48
・Internal Control�����������������������������������������������52

ESG Finance Initiatives
・Sustainability Finance Framework�����������������������57
・Sustainability Linked Loan Framework�����������������63

Top Message
As society becomes increasingly concerned aboutsustainability, companies are required to take various
actions to resolve issues related to environmental,social, and governance (ESG). Regarding our businessinitiatives for addressing issues related to theenvironment, such as climate change, conserving
water resources, preventing environmental pollution,conserving resources and reducing waste, issues
facing society, such as those related to human rights
and revitalization of communities, and issues related
to governance, such as compliance with laws andregulations and risk management are the main issues.
While we recognize these as medium to long term risk
factors, we also believe that they will lead to improved
corporate value and unitholder value, including the

Mitsui Fudosan Logistics Park Inc.

creation of new value and new business

Hiroshi Asai, Executive Director

opportunities. In addition, the spread of COVID-19 has
been the catalyst for a further emphasis on ensuring
the health and safe living of the working people.

In the asset management business as well, it is extremely important to address environmental, social, andgovernance (ESG) issues in all aspects of our operations. We believe that logistics facilities are social
infrastructure, which are the main investment target for Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), canespecially contribute to resolving environmental and social issues.
Mitsui Fudosan Co., Ltd., the sponsor of MFLP-REIT, has established a Group Environmental Policy and a Policy
for Social Contribution Initiatives in relation to activities that contribute to society and the environment, in
accordance with its corporate statement of “Bringing aﬄuence and comfort to urban living.”
Mitsui Fudosan Logistics REIT Management Co., Ltd., the asset management company of MFLP-REIT, alsoestablished basic guidelines in the form of its ESG (Environment, Society, Governance) Policy in November 2017,and is forging ahead with ESG initiatives for the reduction of the environmental impact and for its stakeholders
such as local communities and employees through the operation of logistics facilities and so forth.
The objective of this ESG report is to provide a wide range of information to enhance stakeholder understandingof the ESG initiatives taken by MFLP-REIT and the Asset Management Company. Going forward, we willcontribute to achieving a more sustainable society by promoting our ESG initiatives. We ask our unitholders fortheir continued support and unreserved advice.

1Policy for ESG Initiatives

Sharing of the ESG Principles with Mitsui FudosanGroup

As a member of the Mitsui Fudosan Group, Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “AssetManagement Company”) shares the Mitsui Fudosan Group’s ESG Principles, and while building a highly
energyefficient portfolio centered on MFLP facilities (leading-edge logistics facilities with Mitsui Fudosan
quality), will contribute to our stakeholders in order to achieve a sustainable society.

2

ESG (Environment, Society, Governance) Policy
The Asset Management Company regards the ESG initiatives as a management issue of utmost importance,and established the “ESG (Environment, Society, Governance) Policy” in November 2017. The AssetManagement Company believes that the ESG initiatives are essential for ensuring the sustainability andlong-term, stable proﬁts of MFLP-REIT, and for contributing to the beneﬁt of all our stakeholders.

In implementing ESG initiatives in accordance with the above policy, we also refer to the Group Policy on
Sustainability established by Mitsui Fudosan.
Mitsui Fudosan Group's Policy on Sustainability

3

Sustainability Promotion Structure

Sustainability Promotion Committee andsubcommittees
In order to oversee and promote ESG initiatives undertaken by the Asset Management Company inaccordance with its ESG (Environment, Society, Governance) Policy, a Sustainability Promotion Committee(“the Committee”) has been established with the President & CEO of the Asset Management Company
acting as chairperson who bears ultimate responsibility. This incorporates a secretariat and four
subcommittees to execute the matters deliberated by the Committee. The Committee meetings are held atleast once every three months, and the Committee deliberates and decides on policies, strategies, andsystems related to sustainability considering ESG-related risks and opportunities. Each subcommittee will
formulate and implement specific action plans based on the decisions made by the Committee. In addition,
the subcommittees report on the progress of the action plan to the Committee at least once a year throughthe secretariat.
The secretariat will inform the officers and employees of the activities and share the details with them.

Organizational chart4

ESG-related policies and rules
Relationship chart5

Supported Initiatives,External Evaluation,Etc.

Initiatives
Support for various environmental initiatives
The Asset Management Company declares its support for the recommendations of the Task Force on
Climate-related Financial Disclosures and is a member of the TCFD Consortium. From FY2022, it has alsodeclared its support for the Japan Climate Initiative, and is working to create a framework for disclosing
financial information related to climate change. Also became a signatory to the Principles for Financial
Action for the 21st Century in March 2023. By acting on the principles, it will undertake its investment
management in a responsible manner for the formation of a sustainable society.

6External evaluation
Participation in GRESB Real Estate Assessment
GRESB is an annual benchmarking assessment to measure ESG(Environmental, Social and Governance) integration of real estate companies
and funds, as well as the name of organization which runs the assessment. It
was founded in 2009 by a group of major European pension funds who played
leading roles in launching Principles for Responsible Investment (PRI).TheGRESB Real Estate Assessment is distinguished by its comprehensive
evaluation of sustainability eﬀorts of real estate companies and REITs, etc.,
and not of individual properties.
MFLP-REIT has received the highest “5 Stars” in GRESB Rating for the 2consecutive year, which is based on GRESB Overall Score and its quintile
position relative to global participants, and has won a “Green Star” designation
for the 3-consecutive year since it is highly evaluated in both areas“Management Component” that evaluates policies and organizational
structure for ESG promotion, and “Performance Component” that assesses
environmental performance and tenant engagement of properties owned.
MFLP-REIT also received the highest “A revel” for the GRESB Public
Disclosure, which assess the width of ESG disclosure.

Initiatives for ESG ﬁnanceIn addition to further promoting ESG initiatives by procuring funds through ESG finance, MFLP-REIT intends
to strengthen the funding base by expanding our sources of funding through approaching the group ofinvestors interested in ESG investment and financing.

7

Climate Change Initiatives

Awareness of climate change
The Paris Agreement adopted in 2015 clearly states a shared global goal of keeping the rise in averagetemperatures from pre-industrial revolution levels to well below 2℃. The Sixth IPCC Assessment Report(Working Group I Report), published in 2021, states that there is no longer any doubt that human activities
have an impact on global warming; that unless signiﬁcant reductions in greenhouse gas emissions are madeover the next few decades the rise in temperature from pre-industrial revolution levels will exceed 1.5℃ and
2℃ during the 21st century; and that the climate system will undergo changes, including an increase in theintensity and frequency of natural disasters.
In November 2017, the Asset Management Company established the “ESG (Environment, Society,
Governance) Policy” and is promoting ESG responses in order to maintain and improve the corporate value
and the asset value of the properties under management over the medium to long term, and to contribute toall stakeholders. We recognize that addressing climate change is one of the most important issues.

8Endorsement of the TCFD recommendations andparticipation in the TCFD Consortium and JCIIn FY2021, the Asset Management Company endorsed the TCFD recommendations.
Identifying, assessing, and managing the risks and opportunities that climate change poses to MFLP-REITʼsasset management business in line with the TCFD Final Recommendations and enhancing the resilience ofthe business, are essential to ensure the MFLP-REITʼs sustainable and stable earnings over the long term.
We will consider further enhancement of information disclosure in the future.
By endorsing the TCFD recommendations, the Asset Management Company joined the TCFD Consortiumand the Japan Climate Initiative (JCI). Many Japanese companies and organizations that have endorsed the
TCFD recommendations participate in this Consortium, where their approaches to promoting climate-related
disclosure are discussed and shared. JCI, a Japanese domestic network for decarbonization, disseminates
messages toward net zero and aggregates and provides information on climate change.

In addition to

exchanging information with other participants through its activities in the TCFD Consortium and JCI, theAsset Management Company proactively disseminates information on its approach to climate-related
disclosure.
In addition, as a member of the Association for Real Estate Securitization, the Asset Management Company
regularly collects information on outstanding eﬀorts by other member companies to reduce environmental
burdens and build a sustainable society, which will be useful for further raising environmental awarenessand expanding such eﬀorts.
* TCFD is an abbreviation for Task Force on Climate-related Financial Disclosures. This organization was established by the
Financial Stability Board at the request of the G20, and provides a framework for climate-related disclosure.

GovernanceIn accordance with the Climate Change Resilience Policy, the Asset Management Company has designatedthe President & CEO as the responsible director for climate-related issues and the Chief Investment Oﬃcer
as the responsible executive for climate-related issues.
In accordance with the Climate Change Resilience Policy, the Asset Management Company has designatedthe President & CEO as the responsible director for climate-related issues and the Chief Investment Oﬃcer
as the responsible executive for climate-related issues.
The responsible executive regularly reports to the Sustainability Promotion Committee, which includes the
responsible director, on matters related to the identiﬁcation and evaluation of the impact arising fromclimate change, the management of risks and opportunities, progress of initiatives, and the setting ofindicators and targets.
The Sustainability Promotion Committee deliberates and reviews each agenda item, and decisions are madeby the responsible director.
Climate-related issues are promoted within a supervisory framework centered on the President & CEO, whois the responsible director.

9Strategy
In order to incorporate the uncertainties arising from the progression of climate change into the businessstrategy of the Asset Management Company, we have identiﬁed risks and opportunities, conducted scenario
analyses based on a 1.5-2℃ scenario and a 4℃ scenario, and assessed the ﬁnancial impact of climaterelated risks and opportunities.

Scope of scenario analysis
The scope of the analysis is the asset management business of MFLP-REIT.

Main scenarios referenced
Publishing agency/organization

Transition risk

Physical risk

1.5-2℃ scenario
IEA World Energy

International Energy Agency

Outlook2020(IEA)

NZE2050

Intergovernmental Panel on
Climate Change

Fifth IPCC
Assessment Report(IPCC)

IPCC RCP2.6

10

4℃ scenario

IEA World Energy

Outlook2020 SPS

Fifth IPCC
Assessment Report
IPCC RCP8.5

4℃ scenario
Related item forproperty
management

Expectedﬁnancial impact

Degree of ﬁnancial impact

Category
Short/
mediumterm

Strengthening ofenergy-saving
standards forproperties held

1.5-2℃ scenario

Long
term

Short/
medium
term

Long
term

Increase inrenovation
costs

Fines, etc.

Risk

Small

MiddleMiddleLarge

Policies and laws

Increase inoperating costs

Utilization of Mitsui
Fudosanʼs
information andknow-how

Increase incosts such ascarbon taxes
Introduction ofcarbon taxes, etc.
Purchase of CO2
emission credits

Introduction ofgreen leases

Increase in costof purchasing
CO2 emission
credits

Risk

Small

MiddleMiddleMiddleTe c h n o l o g y

Tr a n s i t i o n r i s k s / o p p o r t u n i t i e sand energy-saving
technologies,
diﬀusion of newtechnologies(Conversion of
portfolio to ZEB)

technology
introduction
cost

green energy
procurement
system

Risk

Small

Small

Small

MiddleMarket/reputation
ﬁnancing

consumption,

Decrease inoperating costs
Reduction ofOpportunity

Small

Small

Small

Middlecosts throughenergy savingof properties
with lowenvironmental
performance

Change in status of

Additional
installation of solar
power generationequipment and own
electricity
consignment

Improved

Decrease incompetitivenessChanges in tenant
behavior

Systematic switch
to LED lighting
Establishment of

Cost increase
throughsecondary costshifting
Increase in new

Evolution ofrenewable energy

Response by the
Asset
Management
Company

Increase inrental revenues
due to growing
demand forproperties withhighenvironmental
performance

Decline inﬁnancing
opportunities
anddeterioration ofﬁnancing
conditions due

Risk

Small

Small

Small

Middleenvironmental
performance of theportfolio
Obtaining external
evaluations andcertiﬁcations
Establishment ofprocurement
system for green
electricity

Opportunity

Small

Small

MiddleLarge

Implement tenantsatisfaction surveys
Promotion ofcooperation withtenants

Improvement of theenvironmental
performance of theportfolio
Risk

Small

to low
evaluation frominvestors andﬁnancial
institutions

MiddleMiddleMiddleObtaining external
evaluations andcertiﬁcations
Utilize ESG ﬁnance
Expansion of
disclosure of ESGrelated information

11

4℃ scenario
Related item forproperty
management

Expectedﬁnancial impact

Degree of ﬁnancial impact

Category
Short/
mediumterm

Market/reputation

Tr a n s i t i o n r i s k s /opportunities

Change in status ofﬁnancing

Increasedﬁnancing
opportunities
and improved
ﬁnancing
conditions due
to highevaluation by
investors andﬁnancial
institutions

1.5-2℃ scenario

Long
term

Short/
medium
term

Long
term

Response by the
Asset
Management
Company

Improvement of theenvironmental
performance of theportfolio
Opportunity

Small

Small

Small

MiddleObtaining external
evaluations andcertiﬁcations

Utilize ESG ﬁnance
Expansion of
disclosure of ESGrelated information

Occurrence oflossesIncrease in
expenses ofrepair expenses
and insurance
Increase in thefrequency andAcuteintensity of natural
disasters(concentrated

Physical risks/opportunities

torrential rain,
typhoons, ﬂoods,
landslides, etc.)

Risk

Middle

Large

Small

Middlepremiums, etc.

BCP measuresand increased
costs

Thorough BCP
measures
Implementation of

Increased
demand forproperties witha high level of
BCP both interms ofregular disaster
drills

Implementation ofOpportunity

Middle

Large

Small

Middlehardware andsoftware andincreased rental
revenues

regular disaster risk
evaluations andimplementation of
response measures

Increase in
Flooding caused byrising sea levels

Chronic
Increase in

extremely hot orextremely cold days

costs caused bymajorrenovations(construction ofembankments)
Increase inoperating costs
and repair costsof airconditioners
due to anincrease in air
conditioning

Risk

MiddleRisk

Middle

Large

Large

Small

Small

MiddleMiddleConsideration andintroduction ofhigh-eﬃciency air
conditioning
systems

operating time

Note that on the time axis, “short term” indicates 1-3 years, “medium term” indicates 4-10 years, and “longterm” indicates a period of over 10 years.
Based on the results of scenario analysis, the Asset Management Company will establish an internal
structure, and examine countermeasures, and incorporate such measures into business strategies, while
formulating, implementing, and monitoring them repeatedly and continuously, aiming to enhance corporate
value and heighten business resilience. Speciﬁc initiatives are presented on Environmental Performance
Results and Initiatives.

12

Risk management
In order to mitigate climate-related risks and take advantage of opportunities, the Asset Management
Company identiﬁes, evaluates, and manages climate-related risks and opportunities based on the following
framework.

Process for identifying and evaluating climate-related risks and opportunities
Once a year, the responsible executive invites those who are essential to a climate-related working group,
and identiﬁes and evaluates climate-related risks for the Asset Management Company. Climate-related risks
in this analysis are based on the following framework.

(1) Transition risk: impact on the business of the low-carbon/decarbonizationtransition of society and the economy(a) Policy, law and regulation risk: risk of strengthened regulations caused by policy-driven promotion of decarbonization(b) Technology risk: risk arising from the development of new technology, and its adoption by the mainstream, related to lowcarbon/decarbonization(c) Market risk: risks associated with markets, such as volatility in energy prices and fluctuations in demand for services(d) Reputation risk: risk of negative changes in reputation among stakeholders such as customers, the general public, employees,
and investors(2) Physical risk: impact on the business arising from the progression of climatechange, resulting in variations from previous weather patterns and climatic
phenomena(e) Acute physical risk: risks originating in events such as typhoons and flooding(f) Chronic physical risk: risks originating in long-term shifts in weather patterns, such as high or low temperatures sustained
over long periods

In addition, in cases where themes and elements that could provide business opportunities to the AssetManagement Company and MFLP-REIT are identified during the process of uncovering risks, these are
identified as climate-related opportunities in a separate category from risks, and their feasibility isinvestigated.
The responsible executive provides regular reports to the Sustainability Promotion Committee on the
progress and outcomes of work to uncover risks and opportunities performed by the working group.

13

Process for managing climate-related risks and opportunities
For important climate-related risk and opportunity factors that the Asset Management Company has
determined should be addressed as a priority based on the above process, a management process is set out
as follows, with the aim of mitigating risks and taking advantage of opportunities.
For high-priority climate-related risks and opportunities that have been deliberated by the Sustainability
Promotion Committee and that are important in the context of business and financial plans, theresponsible director designates a team in charge of addressing the issue, and instructs them to draft
appropriate measures.
The measures drafted by the team in charge of addressing the issue will be deliberated by the
Sustainability Promotion Committee as necessary, and the details will be finalized in accordance with theappropriate rules governing administrative authority.
The responsible director gives instructions for climate-related risks that are important in the context ofbusiness and financial plans to be taken into account by the existing company-wide risk management
program with the aim of integrating risk identification, evaluation and management processes.

Indicators and targets
The Asset Management Company works to establish environmental KPIs, and to set and monitor indicatorsand targets, with the objective of mitigating climate-related risks and taking advantage of climate-related
opportunities. The state of progress for each initiative is summarized at least once a year by the responsible
executive, who presents a report to the Sustainability Promotion Committee.
The environmental KPIs that are currently established by the Asset Management Company, together withhistorical data, are shown on Environmental KPIs, Environmental Performance Results and Initiatives, andInitiatives to Obtain Green Building Certification.
The Asset Management Company will continue to consider and disclose any new environmental KPIs that
seemappropriate to set.

14

Environmental KPIs

Reﬂecting the basic approach to environmental awareness set out in the ESG (Environment, Society,
Governance) Policy, we set environmental KPIs in FY2021.

* CO2 emissions intensity, water use intensity, and recycling rate are excluded industrial realestate, due to confidentiality agreements etc., pertaining to data centers (industrial real estate).

Approach to setting numerical targets for CO2
emissions intensity

CO2 emissions originating in the business activities of tenants within thebuildings account for approximately 85% of the CO2 emissions in MFLPREITʼs portfolio as a whole in 2020.
MFLP-REIT aims to reduce not only the portion of CO2 emitted inownermanaged portion (Scope 1 and 2) but also in the tenant-managed
portion (Scope 3), aiming for reducing total CO2 emissions for the wholebuilding.
Going forward, it is conceivable that CO2 emissions from tenantbusiness activities could increase due to additional installation of air
conditioning systems to improve working environments and theintroduction of automation equipment. However, to realize CO2
emissions reductions across the portfolio, it is essential to take various
measures in cooperation with tenants, and MFLP-REIT will makearrangements for tenants to be able to stably procure green electricity.

15How CO2 emissions intensity can be reduced

Means of reduction

Various energy-saving measures
Installation of additional photovoltaic generation facilities and private
consumption and consignment of electricity
Purchase of green electricity (owner and tenant)..., etc.

*1 For the base year 2016, a whole yearʼs actual performance ﬁgures of properties acquired through the IPO are set to 100.
*2 Gross ﬂoor area in 2030 is expected to be double that at the end of ﬁscal 2020.
*3 It is assumed that the business-as-usual scenarios for intensity levels in 2030 will have roughly the same conditions as
in 2020.
*4 “Various energy-saving measures” means reductions from the shift to LED lighting, controlled illumination, upgrades to
air conditioning systems, and other operational improvements.
*5 “Post-FIT solar power” means the reduction that would be achieved if all currently sold renewable energy generated bysolar power generation were consumed in-house.
*6 The reductions shown above do not incorporate an increase in electricity consumption driven by the installment of new
air-conditioning systems and introduction of automated facilities at the request of tenants.

16

Environmental Performance Results and Initiatives

Environmental performance results
Items marked with an asterisk (*) are those that underwent independent assurance by Deloitte Tohmatsu
Sustainability Co., Ltd. in the following environmental performance prepared by MFLP-REIT.
Mitsui Fodosan Logistics Park Inc. Environmental Performance 2023

Energy consumption (whole buildings)

Item

2016

2022

(Base year)

Energy consumption (thousand kWh):
①+②+③

2023

14,80659,55965,492*

0

318

287

14,80558,883

63,699(Ref.)Non-fossil certiﬁcate
purchases (thousand kWh)

-

3,193

3,794

Renewable energy selfconsumption (thousand kWh): ③

-

358

1,505

Energy consumption itensity (thousand
kWh/㎡)

0.03330.03580.0370Fuel consumption (thousand
kWh): ①
Purchased electricity consumption(thousand kWh): ②

17

CO₂ emissions(Note 3,4)

Item

2016
(Base year)

2022

2023

CO₂ emissions (t-CO₂): A+B+C

7,581

23,451

24,246*CO₂ emissions itensity (t-CO₂/㎡)

0.017

0.014

0.014

1

15

14

before deduction of non-fossil

1,638

3,687

3,035

Scope 2 Non-fossil certiﬁcate(t-CO₂)

-

1,235

1,662

1,638

2,452

1,373

0.060

0.028

0.016

5,944

20,98322,859

0.014

0.013

0.014

Owner-managed portion
Scope 1 emissions (t-CO₂): A
Scope 2 emissions (t-CO₂)
certiﬁcate

Scope 2 emissions (t-CO₂)

after deduction of non-fossil
certiﬁcate: B
Scopes 1 and 2 emissions
intensity (t-CO₂/㎡)
Tenant-managed portion
Scope 3 category 13 emissions(t-CO₂): C

Scope 3 category 13 emissions
intensity (t-Co₂/㎡)

Water consumption

Item

2016
(Base year)

Water consumption (㎥)Water consumption intensity (㎥/㎡)

18

2022

2023

22,966

101,346

117,230*

0.07

0.06

0.07

WasteItem

2016(Base year)

Waste emissions (t)

2022

2023

―

17,231

16,743General waste emissions (t)

―

98

69

Industrial waste emissions (t)

―

13

14*

General waste emissions (t)―14,525

13,151

Industrial waste emissions (t)

―

2,595

3,509

―

68.0

60.7

Owner-managed portion

Tenant-managed portion

Recycling rate (%)(Note 1) The data in the table above were collected during the periods below. Please note that the data for 2016 isaggregated only from the multi-tenant type facilities of GLP-MFLP Ichikawa Shiohama, MFLP Kuki, MFLP
Yokohama Daikoku, MFLP Yashio, and MFLP Sakai.
2016: from August 1, 2016 to July 31, 20172022: from January 1, 2022 to December 31, 2022
2023: from January 1, 2023 to December 31, 2023
(Note 2) Intensity is the ﬁgure representing the consumption volume, etc. as the numerator with the total gross ﬂoor areaof the properties owned (excluding MFIP) for which data for the relevant period is known as the denominator,
with the consumption volume adjusted for months of operation (data covering less than 12 months is adjusted torepresent 12 months of operation).
(Note 3) CO₂ emissions are calculated based on market-based method.
(Note 4) After close examination of the date, the ﬁgure of "CO₂ emissions" for 2022 have been reviewed and retroactively
adjusted.

19

Introduction of green leases
MFLP-REIT is gradually introducing green leases across the whole of its portfolio. A green lease is a lease inwhich both owner and tenant promote environmental consideration through a building lease agreement.
With the permission of tenants, we are converting lighting in tenant-managed areas to LED lighting, with theaim of both saving energy for the property as a whole and reducing running costs

35.7％

Green leases as percentage of total (as of March 15, 2024)

Properties that apply green leases (non-exhaustive)

Introduction of LED lighting

Introduction of solar power panels

LED lighting

Solar power panels

With the aim of raising theasset value of our portfolio
by addressing
environmental issues, aswell as responding totenant needs, we aremoving forward with theintroduction of LED
lighting (exclusive-use andcommon-use areas).

Some of the logistics
facilities owned by
MFLP-REIT have solar
power panels installed togenerate renewableenergy.

LED installed as percentage of total (as ofMarch 15, 2024)

Whole building

88.6％

Common areas(excluding buildings
leased as a whole)
100.0％（Note） Figures are calculated based on the gross ﬂoor
area, considering the (quasi-)co-ownershipinterests in each property.

Solar power panel annual power generation(Actual, 2023)
20.2GWh（Note） For the properties owned by MFLP-REIT, the value
stated is the power generated during January 1,
2023 to December 31, 2023 from the 13 properties
with solar panels installed. Note that this value isthe total power generated from the entire
properties and does not take into consideration
MFLP-REITʼs ownership ratio of the properties.

20

Reuse and recycle of water
Certain logistics facilities owned by MFLP-REIT are equipped with facilities to reuse well water, and we areworking to reduce the amount consumed from water sources.

Collaboration programs with tenants
We think that cooperation with tenants is essential in
reducing environmental impact. Therefore, The Mitsui
Fudosan Group collaborates with tenants on a variety
of initiatives to reduce environmental impacts.
Speciﬁcally, we are actively working to gain

Putting up 3R posters

Sustainability Guide

separate signs on trashno-idling signs

cooperation from tenants by putting up 3Rs (“reduce,reuse, recycle”) posters to encourage the sorting of
garbage, displaying separate signs on trash cans,posting no-idling signs in truck waiting areas, anddistributing a Sustainability Guide to tenants and so
on.

cans

Commercial arrangements and initiatives forenvironmental performance in collaboration with
the Mitsui Fudosan Group, the property manager
By utilizing the strategic partnership with Mitsui Fudosan, the sponsor, to prioritize the incorporation into ourportfolio of properties with outstanding environmental performance developed by Mitsui Fudosan itself, wewill reduce the environmental impact of the portfolio and mitigate environmental risks.
In addition, MFLP-REIT has outsourced property management operations of logistics facilities and industrial
properties owned by MFLP-REIT to Mitsui Fudosan. When selecting property managers, we consider theirsustainability initiatives as one of the selection criteria based on the “Sustainable Procurement Policy”. In
addition, the property management agreement also stipulates that both MFLP-REIT and Mitsui Fudosan will
work together to promote initiatives to improve or maintain property environmental performance.

21

Investment in Urban Revitalization
Mitsui Fudosan, the sponsor, focuses on creating local employment and improving convenience whendeveloping logistics facilities.

MFLP Funabashi
MFLP Funabashi is a "neighborhood creation-type logistics facility", a multi-use base development centeredon a logistics facility, that aims to coexist harmoniously with the local community and enliven thesurrounding area.
On the site with a total ﬂoor area of approximately 700,000m2, there are three logistics facilities, "MFLP
Funabashi I," "MFLP Funabashi II," and "MFLP Funabashi III" (of which "MFLP Funabashi II" and "MFLP
Funabashi III" are properties deﬁned in “Right of ﬁrst look and preferential negotiation agreement"). In
addition to the three logistics facilities, the site has "&GATE", an ancillary facility with a cafeteria, ﬁtness
room and childcare facilities available for the use of MFLP Funabashi employees, and "&PARK", a green
space also available for local residents. Within the "& PARK," a skating rink, "Mitsui Fudosan Ice Park
Funabashi," has been invited, allowing people of all ages to enjoy skating, thereby contributing to connection
with communities and community building through sports. Several commercial facilities and condominiums
have also been developed in the surrounding area, contributing to the revitalization of the local community
and reduction of environmental impact through urban development that integrates logistics facilities,
commercial facilities, and housing.
MFLP Funabashi also holds events in collaboration with the “Mitsui Shopping Park LaLaport TOKYO-BAY”, acommercial facility located near Minami Funabashi Station, to create liveliness not only within the site but
also in the Funabashi area as a whole, and to realize neighborhood creation that matures with age,increasing the appeal of the town over time.

MFLP FunabashiⅡ

MFLP FunabashiⅢ&Park

Skating rink

Environmental management system / PDCA cycle
The Asset Management Company established its own environmental management system (EMS) and
implements a PDCA cycle in accordance with the aforementioned structure and governance in order tomanage the environmental load of its entire portfolio, such as energy consumption, CO₂ emissions, water
consumption, and waste generation, and achieve its targets.

22Understanding and reducing environmental risks ininvestment decisions and monitoring
Regarding due diligence for new investments, MFLP-REIT obtains an understanding of environmental andsocial risks by utilizing external experts and uses this information in its investment decisions. With regard toenvironmental risks in particular, before an investment decision is made, surveys are carried out as part ofthe engineering report for soil contamination risks, and to establish whether or not hazardous substances(such as asbestos and PCBs) have been used. Periodic monitoring of environmental and social risks is
conducted for properties held as well and initiatives that provide opportunities for reducing risks andincreasing property value are carried out, e.g., expert building assessments such as “Energy Eﬃciency
Walkthroughs.”

Utilization of an external consultant
MFLP-REIT utilizes the support of Nikken Sekkei Construction Management, Inc. as an expert consultant forsuggestions for the portfolioʼs energy management and measures that contribute to increasing
environmental performance.

Commitments related to greenﬁeld developments
When investing in properties developed on greenﬁeld,
MFLP-REIT will only invest in properties that haveobtained green building certiﬁcation. Mitsui Fudosan,
our sponsor, also gives consideration to the protectionof the natural environment when developing on

MFLP Hiratsuka Ⅱgreenﬁeld, by obtaining green building certiﬁcation
after development, considering that development
activities may aﬀect the natural environment andecosystem of the subject site and its
surroundings.Among the properties owned by MFLPREIT, "MFLP Osaka Katano" and "MFLP Hiratsuka II"
were developed through a land readjustment project
on farm land, but they were developed in anenvironmentally friendly and obtained green building
certiﬁcation by installing solar panels on the roof.

23

MFLP Osaka Katano

Soil contamination countermeasures
MFLP-REIT has built a strategic partnership with its sponsor, Mitsui Fudosan, and its acquisitions are
centered on properties developed by Mitsui Fudosan. When conducting due diligence at the time we acquirea property, we conﬁrm that soil contamination surveys are conducted and check whether appropriate
countermeasures have been implemented at those properties for which they were deemed necessary.
The logistics facilities that are the main target for investments by MFLP-REIT are sometimes located onbrownﬁeld land where there is a risk of soil contamination, such as the sites of former factories, and soil
contamination countermeasures may be required.
In cases where they have been left unused as sites of former factories, there may be soil contamination andother issues that can prevent the potential value of the real estate from being realized. Soil contamination
countermeasures executed as part of new development lead to soil contamination no longer being left
untreated, thus contributing not only to the property but also to the surrounding environment.

Strategic partnership with Mitsui Fudosan

24Initiatives to Obtain Green Building Certiﬁcation

Policy for acquiring Green Building certiﬁcation
MFLP-REIT sets the targets as described on Environmental KPIs with the aim of acquiring Green Building
certiﬁcation for its entire portfolio for the purpose of reducing the environmental risks of its portfolio andincreasing asset value over the medium to long term.
MFLP-REIT has been actively working to acquire Green Building certiﬁcation, including ZEB certiﬁcation. Asof March 15, 2024, the proportion of logistics facilities that have acquired Green Building certiﬁcation was
100%, and the equivalent ﬁgure for portfolio as a whole was 96.6%.

DBJ Green Building Certiﬁcation
DBJ Green Building Certiﬁcation aims to encourage the spread of real estate(“green buildings”) that takes into account environmental performance and disaster
preparedness, as well as the societal needs of various stakeholders, including local
communities. This is assessed using a proprietary scoring model developed by
Development Bank of Japan Inc., resulting in selected properties that address theneeds of the times being given a ranking of 1 to 5 on a 5-star scale.

CASBEE certiﬁcation for Real Estate
CASBEE (Comprehensive Assessment System for Built Environment Eﬃciency) is acomprehensive system, created under the leadership of the Ministry of Land,

Infrastructure, Transport and Tourism, for evaluating the quality of buildings. In
addition to the original goals of reduced energy consumption and the use of building
materials with low environmental impacts, it also takes into account the comfort ofthe interior and the landscape.
The CASBEE certiﬁcation awarded by the Institute for Building Environment andEnergy Conservation and its designated certiﬁcation bodies consists of four
evaluation tools: CASBEE for Pre-Design, CASBEE for New Construction, CASBEE
for Existing Building, and CASBEE for Renovation. These are used to provide anevaluation on a ﬁve-grade scale: Superior (S), Very Good (A), Good (B+), Slightly

Poor (B-) and Poor (C). CASBEE certiﬁcation for real estate for buildings whose
construction was completed at least one year ago consists of an evaluation on afour-grade scale (S, A, B+, or B), which is in turn based on an assessment spanningﬁve diﬀerent categories: energy/greenhouse gases, water, materials, biodiversity/
sustainable site, and indoor environment.

25

BELS certiﬁcation
BELS is a third-party evaluation system that displays the energy-saving
performance of buildings. From April 2016, real estate companies and other entities
are required to make efforts to display the energy-saving performance of buildings
based on the Act on the Improvement of Energy Consumption Performance of
Buildings (“Building Energy Efficiency Act”). The specific method of display is set
out in the energy conservation performance display guidelines for buildingsprescribed by the Ministry of Land, Infrastructure, Transport and Tourism, and
BELS is assessed based on these guidelines and rated on a 5-star scale.

ZEB certification
ZEB (Net Zero Energy Building) is a building that aims to achieve a zero energybalance through substantial reductions in annual primary energy consumption. Thisis achieved by saving as much energy as possible via better thermal insulation of
the building and highly energy efficient equipment, etc., coupled with creatingenergy by solar power generation or other energy generating methods, while
maintaining a comfortable environment. In the BELS certification system, thecertification of the level of ZEB is presented in four stages: “ZEB,” “Nearly ZEB,”“ZEB Ready,” and “ZEB Oriented.”

Certification acquisition status for portfolio
properties（as of March 15, 2024）

Green Building

certification acquiredin logistics facilities

100.0%

Green Building

certification acquired for
portfolio as a whole

96.6%

26

ZEB certificationacquired inlogistics facilities

70.7%

Property name

DBJ Green
Building
Certiﬁcation

GLP/MFLP Ichikawa Shiohama★★★

MFLP Kuki
MFLP Yokohama Daikoku

CASBEE(New
Construction)

CASBEE(Real
Estate)BELS
certiﬁcation

ZEB
certiﬁcation

Rank A *1

Rank S *1★★★★ ★

ZEB Ready★★★★★

MFLP Yashio

Rank A *2★★★★★

ZEB Ready★★★★★

ZEB Ready★★★★★

ZEB Ready

Rank A *1★★★★ *1

MFLP Atsugi

Rank A *2

MFLP Funabashi Nishiura

Rank A *1

MFLP Kashiwa

Rank A *1

MFLP Sakai★★★★

Rank A *1

*3

★★★★★

Rank S *1

MFLP Komaki
MFLP Hino

Rank A *2★★★★★

MFLP Hiratsuka

Rank A *2

MFLP Tsukuba(Existing building)★★★★

MFLP Tsukuba (Annex building)★★★★★

ZEB Ready

Rank A *2★★★★★

ZEB Ready

Rank A *2

★★★★★

『ZEB』

MFLP Inazawa★★★★

Rank A *1

MFLP AtsugiⅡ
MFLP FukuokaⅠ

Rank A *1

MFLP Prologis Park Kawagoe★★★★

MFLP HiroshimaⅠ★★★★

Rank A *2★★★★★

ZEB Ready

MFLP Ibaraki

★★★★★
★

Rank A *2★★★★★

ZEB Ready

MFLP KawaguchiⅠ★★★★

Rank S *2★★★★★

ZEB Ready★★★★★

Nearly ZEB★★★★★

ZEB Ready

Rank A *1★★★★★

MFLP Yachiyo Katsutadai
MFLP OsakaⅠ

Rank A *2

27

Property name

DBJ Green
Building
Certiﬁcation

CASBEE(New
Construction)

MFLP HiratsukaⅡ
MFLP Osaka Katano

CASBEE(Real
Estate)BELS
certiﬁcation

ZEB
certiﬁcation

Rank A *2★★★★★

ZEB Ready

★★★★★

『ZEB』

Rank A

MFLP Tomei Ayase

Rank A *2

MFLP Tokorozawa

Rank B+ *2

MFLP Hiratsuka Ⅲ

Rank A *2

MFLP ShinkibaⅠ
SG Realty MFLP Fukuoka
KasuyaTotal certiﬁcations acquired

Rank A

10

11

15

★★★★★

★★★★★

Nearly ZEB

★★★★★

『ZEB』

★★★★★

『ZEB』

20

17

（Note 1） The certiﬁcation period has expired.
（Note 2） This is an evaluation based on the local government notiﬁcation system.
（Note 3） In addition to the above green building certiﬁcations, MFLP Sakai also won the FY2015 Osaka Environmentally Friendly
Architecture Award (Retail and other facilities category).

28

Basic Approach Regarding Social Considerations

Stakeholders of MFLP-REIT
MFLP-REIT and the Asset Management Company intend to actively fulfill our roles and responsibilities andmake contributions through their business activities, etc. to all stakeholders, including not only investors but
also tenants, LM and business partners, local communities, and employees of the Asset Management
Company. For example, MFLPREIT’s portfolio is geographically diversified, and contributes both to regional
job creation and to the vitalization of local communities. In addition, all properties in MFLP-REIT’s portfolio
offer convenience commuting using public transport (train stations, bus stops, etc.) and are also accessible
to people with disabilities.
When selecting LM and business partners, we consider their sustainability initiatives as one of the selection
criteria based on the “Sustainable Procurement Policy”, and the content of the "Sustainable Procurement
Policy" regarding DEI is shared with LM. MHLP-REIT and LM are working together to promote initiatives
related to DEI.

Responsibilities of MFLP-REIT and the Asset Management
Company to key stakeholders
Investors: Distribution of stable profit, maximization of the interests of unitholders in the medium to longterm, and timely and appropriate disclosure of information
Tenants: Provision of safe, secure and functional spaces in buildings in collaboration with LM, andincrease of business continuity and employee satisfaction
LM and business partners: Provision of a safe, secure, and comfortable work environment
Local communities: Contribution to local vitalization and development, and support during emergencies
Employees of the Asset Management Company: Provision of a safe, secure, and comfortable work
environment, and opportunities for capability development

29

Examples of speciﬁc initiatives
Providing comfortable work environment

Unmanned store

Commuter shuttle bus

Bicycle sharing

To meet the needs of facility
users, an unmanned
concession stand is available
24 hours a day, 7 days aweek.

We provide shuttle buses tosupport the commuting of
tenant employees. It also
contributes to ease crowding
in local public transport.

To enhance the convenienceof transportation for tenant
employees, we oﬀer a bicycle
sharing scheme.

Sky lounge

Sky deck

ICT LABO 2.0

To provide a comfortable work
environment for tenant
employees, we provide a fullrange of spaces for food andrest.

To provide a comfortable work
environment for tenant
employees, we provide resting
places with extensive outside
views.

We provide expert solutions in
automation and labor-saving
measures to prospective
MFLP tenants, such as
logistics companies.

Seasonal decorations

CS survey

LaLaport discount tickets

To provide a comfortable work
environment for tenant
employees, seasonaldecorations have been
introduced.

In order to achieve better
operation of facilities, we also
conduct regular satisfaction
surveys of tenant employees.

Various preferential privileges
are oﬀered to tenant
employees, including discounts
at a variety of stores in Mitsui
Fudosanmanaged shopping
centers.

Cafeteria

LoungeTo provide a comfortable work
environment for tenant
employees, the cafeteria
within a facility oﬀers adiverse food menu.

Spaces are also provided toenable truck drivers using afacility to rest.

Issuance of seasonalmagazine

We publish a quarterly
magazine to provide tenantswith timely information.

30

BCP initiatives

Adoption of seismic isolation

Emergency power generator

Remote monitoring using ITV

We adopted seismic isolation
technology to not only ensure
the safety of users in theevent of a large-scale
earthquake, but also mitigate
the impact on goods stored.

The facilities are equippedwith emergency power
generators that can operate
for up to 72 hours for BCP
response, including ensuringsafety in the facility in theevent of a power outage.

The facilities are equippedwith a system that, in theevent of a natural disaster,
enables the state of damage
suffered both inside andoutside a facility to bechecked in real time.

Stockpiles for disasterprevention

Measures based on hazard maps

We have prepared for
emergencies by stocking awide range of necessary
items, such as drinking waterand emergency food rations
for those having difficulty
returning home in the event of
a disaster.

61% of the entire portfolio is located inareas that are not considered likely tosuffer from flooding, and flood-control
measures have been taken for theremaining 39%, including measures forraising the height of voltage
substations, emergency power
generators and other criticalequipment.

（as of March 15, 2024）(Note 1) MFLP and each portfolio asset may not be equipped with some of the above standard specifications or features.
(Note 2) Calculations based on total floor area not adjusted to reflect (quasi) co-ownership interests.

31

Response to local communities

Cleanup activities nearfacilities

Child care facilities on-site

Creation of community space

We conduct cleanup activities
in the areas surrounding
facilities to contribute toachieve a better local
environment.

We provide a child care facility
on-site for child-rearing
support not only for tenant
employees, but also people
nearby the facility.

By establishing public areas
with green spaces, cherrytrees, etc., we provide places
for local residents to relax.

Bench that can be converted

Designated as a tsunami

By setting up facilities thatcan be used as toilets in theevent of a disaster, we provide
support for residents of thesurrounding neighborhoods inthe form of infrastructure fordaily life.

By setting up benches thatcan be used as a stove in theevent of a disaster, we provide
support for residents of thesurrounding neighborhoods inthe form of infrastructure fordaily life.

We support local residents
living near the facilities in theevent of a disaster by securing
designations as disasterevacuation sites frommunicipalities.

Introduction of green curtains

Facility tour for social studies

Planted area

We mitigate any sense of
oppression by establishinggreen curtains on slope areas,
for local residents and thelandscape they see.

We provide tours of the facility
to students from the local area
as part of their social studies
class.

We work to create harmony
with the surrounding
environment by establishing aplanted belt, for local
residents and the landscapethey see.

Emergency temporary toilets

to cooking grillevacuation building(Note) MFLP and each portfolio asset may not be equipped with some of the above standard specifications or features.

32Social contribution initiatives

Local contribution activities

Donation of Calendars

Disaster Relief

We actively engage ininitiatives to promote local
contribution andenvironmental awarenessamong employees byparticipating in community
cleanup activities.

We are contributing to ecology
and social contribution by
donating a portion of thecalendars received fromsuppliers to the Council ofSocial Welfare.

In order to support farmers
affected by the 2024 Noto
Peninsula earthquake, wehave cooperated with aportion of the donation from
KOMPEITO Corporation to JA
ZEN-NOH-Ishikawa.

DEI promotion initiative

Cooperation with support group for the disabilities

Catering food truck

Catering food truck (typicallunchtime scene)

At MFLP Kawaguchi I, we held a catering food truck event incooperation with a support group for people with disabilities.
This was implemented on a monthly basis between April 2023
and March 2024, and involved the sale to tenant employees ofcurry which was made at locations where people withdisabilities work, and the equivalent to 450 meals were sold in
total. In collaboration with the same organization, works of art
created by people with disabilities were given their debut insociety, and an exhibition of art for sale was also held.

33

International Women's Day
Event

In order to contribute to therealization of gender equality,
we presented mimosa flowers
to employees of the asset
management company and
MFLP tenant on International
Women's Day in March 2024.

Initiatives for Employees of the Asset Management Company

Initiatives for human rights
The Asset Management Company has established a human rights policy based on the Mitsui Fudosan Group
Human Rights Policy and the Mitsui Fudosan Group Sustainable Procurement Standards of Mitsui Fudosan.
MFLP-REIT and the Asset Management Company support and respect international norms regarding humanrights, such as the core labor standards set out in the ILO Declaration on Fundamental Principles and Rights
at Work (freedom of association, recognition of the right to collective bargaining, elimination of forced labor,
abolition of child labor, and elimination of discrimination) in light of the Universal Declaration of Human
Rights and the International Bill of Human Rights. In addition, the Sustainable Procurement Policy
established by the Asset Management Company incorporates respect for human rights into the selectionand evaluation standards used to choose the content of work and business partners for the portfolio value
chain.
Based on the above, the Asset Management Company has defined the initiatives for respect of human rights
in the Compliance Manual as described in the table below and is working to instill its policy on respecting
human rights in all employees.

Details

Policy and initiatives
The Asset Management Company shall prohibit discrimination or

Prohibition of discriminationand harassment

Policy to prevent child labor orforced labor

unfair treatment based on nationality, social status, race, belief,
gender, age, disability, sexual orientation, gender identity,

education, marriage status, employment type or any other reason
not related to business roles. In addition, no harassment in any
form is allowed in the workplace.
The Asset Management Company shall not permit child labor orforced labor. The Asset Management Company has never usedchild or forced labor. To ensure that none is used in the future, theAsset Management Company complies thoroughly with the laws
and regulations of each country.

34

Details

Policy and initiatives
The Asset Management Company shall support and respect the
freedom of association and the right to collective bargaining.
Up to the present, no labor unions have been formed, but labormanagement relations at the Asset Management Company havebeen harmonious, and there have been no large-scale mergers,
acquisitions, or layoﬀs in the past.
In addition, the Asset Management Company has entered into alabormanagement agreement on overtime work (36 Agreement)

Freedom of association and theright to collective bargaining

with its employees, and is striving to maintain the health of its
employees and improve labor productivity by appropriately
managing working hours.
The Asset Management Company is making the following eﬀorts to
reduce excessive working hours and overtime.
Monitoring working hours
Periodic interviews with supervisor
Notifying both employees and their direct supervisors when
they are in danger of overwork
Implementing stress checks

Policy supporting rights to aminimum wage and living wage

The Asset Management Company conducts labor management
while abiding by the labor laws and regulations. In terms of wages,
the Asset Management Company has adopted a basic policy offollowing the rules on minimum wages.

There were no serious violations of labor-related laws and regulations during the period from April 1, 2023 toMarch 31, 2024.

DEI (Diversity,Equity, and Inclusion) of the AssetManagement Company

The Asset Management Company will strive to build an organization that recognizes diversity,equity, andinclusion.
Speciﬁcally, in accordance with the philosophy of the Mitsui Fudosan Group that based on the idea that “togenerate new value through cooperation, coexistence and co-creation, we forge ahead, innovating.” in
response to the dramatically changing needs of society, we are working to realize new value creation basedon work style reforms, with the management ranks overseeing the diversity of employees, working to build
an organization in which human resources of diverse values, talents, and lifestyles can realize their fullindividual potential and comfortable workplace.
Based on the above, the Asset Management Company has deﬁned the "DEI Promotion Policy". Under thispolicy, the Asset Management Company has set KPIs as shown in the table below and promote DEI
initiatives.

35

Item

FY2021

Total number of oﬃcers and employees

FY2022

FY2023

KPI

25

24

28

-

(Number of seconded employees
accepted)

10

10

9

-

(Number of direct employees)

15

14

19

-

Male: 8
Female: 7

Male: 8
Female: 6

Male: 7
Female: 12-

Percentage of female employees *

47％

43％

63%

-

Percentage of female managers

0%

0%

14%

Percentage of female executives

0%

0%

0%

-

3.0 years

3.6 years

3.2 years

-

75％

89％

81%

70%

86%

100%

91%

100%

0

0

1

-

0

0

0

-

33%

-

（Note 1）

Average employment period *（Note 2）
Rate of used portion of paid vacation *（Note 3）Rate of employees taking 10 or moredays of paid vacation *（Note 3）

Number of employees using childcare
leave *

Number of employees using the shorter
hours system for childcare *Percentage of employees using childnursing care leave *Rate of health checks received

N/A

N/A

40%
by FY2030

100%

100%

100%

-

Employment of people with disabilities

0

0

0

-

Number of new hires *

1

2

8

-

Number of retired employees *

1

2

3

-

7%

14%

20%

-

100%

100%

100%

Employee turnover rate in the ﬁscal year *Rate of employees participation intraining on DEI

36

100%

（Note 1） Indication of “oﬃcers and employees” means the total oﬃcers and employees including direct employees andseconded employees mentioned above.
An asterisk (*) indicates data for direct employees, including contract employees.
（Note 2） The average employment period is the average of ﬁgures calculated by dividing the total number of days
enrolled as an employee up to each day by 365, as the number of days in one year.
（Note 3） Calculated using data on enrolled employees as of the ﬁscal year-end, but excluding those mid-career hires
who joined during the ﬁscal year.

[Examples of initiatives]
Training by viewing a DVD that promotes understanding of human rights and diversity (promoting active
participation of women, employment of senior employees, training on LGBT issues)
Training on DEI

37

Initiatives for human resource development
The Asset Management Company is taking steps to secure and develop specialists with high-level expertisein real estate ﬁnance and potential leaders who have the management ability to increase the productivity ofthe organization. Furthermore, it aims to develop human resources who will contribute to society and toincreasing corporate earnings, aiming not only to build knowledge, comprehension, and communication skills
through short-term education and training, but also the ability to grasp the big picture of a situation or
incident from a broad perspective and envisage the future course of events.

1 Support for acquiring qualiﬁcations
1-(1) Support for acquisition and maintenance of specialized qualiﬁcations
The Asset Management Company supports all
employees (including both regular and contract

Number of
employees withqualiﬁcations

Qualiﬁcation

employees, etc.) in their eﬀorts to obtain degree
programs and certiﬁcations, such as ARES
(Association for Real Estate Securitization) Certiﬁed
Master, and all oﬃcers and employees (including
both regular and contract employees, etc.) may
utilize a system whereby such expenses are borne

ARES (Association for Real Estate
Securitization) Certiﬁed Master

11

Real estate transaction agent

21

Real estate appraiser

1First-class architect

1

Real Estate Consulting Master2

Certiﬁcate-holder Member of the
Securities Analysts Association of Japan1

Eco Test (Certiﬁcation Test forEnvironmental Specialists)

11

Care ﬁtter

1

Bookkeeping, 1st grade

1by the Asset Management Company. Furthermore,
to encourage the acquisition of diﬃcult
certiﬁcations, a certiﬁcation allowance is paid to all
employees (including both regular and contract
employees, etc.) who hold certiﬁcations in Japan asa real estate appraiser, lawyer, tax accountant, or
certiﬁed public accountant.
The number of employees with specialized
certiﬁcates is as shown below (including seconded
employees accepted).

（Note 1） As of May 31, 2024.
（Note 2） Includes personnel who have passed thecredentialing exam but are not yet credentialed.

Fiscal year

Number of cases using thequaliﬁcation support systemOﬃcers and employees
using the system

Amount of support funds(excl. tax)

FY202114

11（46%）\517,243

FY202225

16（63%）\1,076,249

FY202326

17（63%）\592,709381-(2) Others
Since MFLP-REIT conducts public oﬀerings in overseas markets, we make eﬀorts to improve the English
language abilities of all employees (including both regular and contract employees, etc.) of the AssetManagement Company in order to develop human resources able to operate globally, and have alsoestablished an English conversation school course fee support system.

2 Various training programs
One of the pillars of the Asset Management Companyʼs human resource development eﬀorts is the various
training programs listed below under “2-(1) to 2-(3).” In FY2023, the Asset Management Company has
revised its training system.

Training for all oﬃcers and employees

Compliancetraining

Executives

・Training on
fundamentals
of securities
monitoringTopmanagement

Middlemanagement

・Training on

overview ofFSAʼssupervisory

guidelines ﬂorinvestment
business
・Training on

general theoryof complianceNew

employees

・Training on
conﬂicts ofinterest

Job-speciﬁcdevelopmenttraining

・CBRE realestatemarketstudy group
・Logistics

Level-

speciﬁc andleadershiptraining

Selective training programs

Individual
skill
training

・Data centerrelated
study group
・Real estatemarketresearch

explanation
meeting
・ESG training
・Stamp tax
study group39

training

Training forexecutives

Corporateplanning,

Training for
top

ﬁeld study
group

Department-

speciﬁc skills

management

Training for

middlemanagement

Businessskills、ITskills、EnglishHuman
resources,
Generalaﬀairs, Legal,
Generalaccounting,
Finance,
Sales,
Marketing,

Production
Training fornewemployees

Fiscalyear

FY2021

FY2022

FY2023Training
expenses

Training
expenses
per person

Total
hours

Total hours
per person

Compliance training¥618,000¥25,750174 hours

7 hours and
15 minutes

Specialized ﬁeld training¥930,000¥38,750144 hours

6 hours

Level-speciﬁc and leadershiptraining,
Individual skill training,
Department-speciﬁc skills
training¥427,200¥17,800

324 hours
and24 minutes

13 hours and
31 minutes

Total¥1,975,200¥82,300

642 hours
and24 minutes

26 hours and46 minutes

Compliance training¥768,000¥32,000

174 hours

7 hours and
15 minutes

Specialized ﬁeld training¥900,000¥37,762390 hours
and47 minutes

16 hours and23 minutes

Level-speciﬁc and leadershiptraining,
Individual skill training,
Department-speciﬁc skills
training¥475,200¥19,938

312 hours
and53 minutes

13 hours and7 minutes

Total¥2,143,200¥89,700

877 hours
and40 minutes

36 hours and46 minutes

Compliance training¥927,000¥34,435138 hours

5 hours and7 minutes

Specialized ﬁeld training¥1,200,000¥44,577391 hours
and50 minutes

14 hours and
33 minutes

Level-speciﬁc and leadershiptraining,
Individual skill training,
Department-speciﬁc skills
training¥475,200¥17,652

155 hours
and34 minutes

5 hours and46 minutes

Total¥2,602,200¥96,664685 hours
and24 minutes

25 hours and27 minutes（Note） After close examination of the date, the ﬁgure for 2022 have been renewed and adjusted.

40

2-(1) Compliance training
We strive to enhance not only individual capabilities but also organizational capabilities by implementing
compliance training programs for all officers and employees (including both regular and contract employees,etc.).
[Examples of initiatives]
Training on fundamentals of securities monitoring
Training on overview of FSAʼs supervisory guidelines ﬂor investment businessTraining on general theory of complianceTraining on conﬂicts of interest

2-(2) Job-speciﬁc development training
For the purpose of periodically updating fundamental knowledge necessary for asset management of alloﬃcers and employees (including both regular and contract employees, etc.), we regularly conduct training
programs led by external lecturers to study the circumstances of the economic environment and real estatemarket and the REIT market, etc.
[Examples of trainings]
Real Estate Market Training
We regularly invite several external lecturers to provide training on real estate market trends.10 training
sessions were held for all employees in FY2023.

ESG Training
We invite several external lecturers to provide training on ESG-related situations and issues to beaddressed by MFLP-REIT and the Asset Management Company. In FY2022 and FY2023, training on DEI
and TNFD (Task Force on Nature-related Financial Disclosure) was conducted, and all employees
participated in both trainings.

2-(3) Level-speciﬁc and leadership training, Individual skill training,
Department-speciﬁc skills training
We provide a system that enables all oﬃcers and employees (including both regular and contract
employees, etc.) to choose from around 1,700 level- and ﬁeld-speciﬁc courses oﬀered by external specialist
institutions per year. Level-speciﬁc and leadership training, Individual skill training and Department-speciﬁcskill training is taken by the relevant oﬃcers and employees depending on their level, skill, situation, anddepartment. The primary objective is to provide an environment that assists the development of executive
candidates by improving their management and leadership skills and encourages the active development ofa career vision by each employee.

3 Periodic career interviews
At the Asset Management Company, regular career interviews are held for direct employees (including
contract employees) with directors at least once every six months. By providing employees with
opportunities to discuss their own career development, feedback on their performance, and requests to thecompany, we encourage employees to increase their motivation and broaden their skill sets.

41

4 Performance appraisal
For performance appraisals, we hold a start-of-year interview (goal setting), interim interview (progress
check and advice), and end-of-year interview (appraisal feedback) for direct employees (excluding contract
employees), as part of building a transparent goal-setting and appraisal feedback system that ensuresmutual understanding of intentions between supervisors and subordinates.

5 Personnel appraisal and Compensation
Direct employees (excluding contract employees) are interviewed by their supervisors at least once every six
months using a behavioral appraisal sheet tailored to their position each year and are promoted and theirbase compensation is renewed once a year according to the appraisal. The behavioral appraisal is anobjective, numerical assessment of how well the employee has demonstrated the behavioral characteristics
required for the job grade and is reﬂected in the amount of the employee's compensation.

6 Goal Setting and Compensation
Direct employees (excluding contract employees) hold goal-setting meetings with their supervisors in April
and October of each year, using a goal-setting sheet.
Twice a year, in September and March, performance against the set goals is evaluated at the end-of-term
interviews (feedback of evaluation results). The performance appraisal is based on an objective, numericalassessment of the degree of achievement of individual performance goals directly related to divisional goals,
and the amount of the employee's contingent remuneration is reﬂected according to the degree ofachievement.

Fiscal year

Ratio of interviews held (direct employees)

FY2021

100% (14 out of 14 employees)

FY2022

100% (14 out of 14 employees)

FY2023

100% (19 out of 19 employees)

42Talent pipeline development strategy
The Asset Management Company has established a recruitment plan for the image of human resources
required for each department and the necessary timeframe, in line with the business execution structure of
the medium- to long-term business plan and has built a system that enables the timely and appropriate
assignment of human resources. For example, we are increasing the number of Operations Team members
as the scale of assets under management increases, Investment Team member to gather information on awide range of properties, not limited to those from our sponsors, and members to expand our investor baseand address ESG issues. Therefore, the Asset Management Company make maximum use of the talent poolof recruiters for mid-career hiring, such as multiple staﬃng agencies, and constantly provide information on
future hiring plans to recruiters, so that we can attract highly specialized personnel and hire the people weneed in the execution of the asset management company's operations. Similarly, the Asset Management
Company accepts secondees from our sponsor, Mitsui Fudosan, in line with its strategic workforce plan andutilizes them as a pool of highly specialized personnel with diverse backgrounds. For mid-career hires, theAsset Management Company promote various skill development programs through the aforementioned
education and training programs. In addition, the Asset Management Company has a full beneﬁt programand is promoting the establishment of comfortable working environments to enable employees to continue
working with conﬁdence. We are also promoting eﬀorts to increase work eﬃciency by encouraging long-term
employment and increasing the motivation of employees.
At the same time, we are making use of the secondeesʻ expert capabilities to make qualitative improvements
in operational expertise, aiming to realize advanced asset management operations.
Employees in managerial positions seconded from Mitsui Fudosan possess expert know-how as well asorganization management skills, thus they have contributed to asset management and vitalization of theAsset Management Company.
[Number of persons seconded from Mitsui Fudosan and other companies] As of March 31, 2024
Mitsui Fudosan: 8

Sumitomo Mitsui Banking Corporation: 1

Reference:Career Programs of Mitsui Fudosan, Human Resources Management/ESG Report 2023
At the Asset Management Company, the Board of Directors and General Meeting of Shareholders oversee
the appointments of oﬃcers. Other managerial appointments are determined by the President & CEO. Whenmaking changes to personnel appointments, an appropriate management candidate is selected from among
direct employees and the Mitsui Fudosan human resource pipeline, and the change is planned to ensuresmooth continuation of business and duties.
Furthermore, Mitsui Fudosan regularly conducts new graduate recruitment, and the Asset Management
Company also accepts secondments of young employees with less than 10 years of experience at Mitsui
Fudosan who have completed human resource development training programs at Mitsui Fudosan.
For detailed information on recruitment of new graduates, please refer to Human Resources Management
described in ESG Report 2023 of Mitsui Fudosan as stated above.

43

Creation of working environments conducive towork and work-life balance
Human resources are recognized as the most important asset of the Asset Management Company, which not
only meets the legal standards for health and safety, such as work-life balance, employee health, labor
management, and risk management, but also works to create working environments where all employees cancontinue to work with conﬁdence through the various initiatives described later. In addition, the AssetManagement Company introduce Activity Based Working through oﬃce renewal to further improve the levelof comfort for working environment.

(1) Employee engagement survey
In FY2020, the Asset Management Company started conducting an employee satisfaction survey toascertain the current status and hopes of all employees (including both regular and contract employees,etc.) for use in improving the working environment. Since then, the Asset Management Company has
conﬁrmed employee satisfaction regarding the degree of fulﬁllment of their current assignments andsatisfaction with their work environment at least once a year. Based on the results of this survey, the AssetManagement Company is striving to build better working environments.

Fiscal year

Employee Satisfaction Survey Average (ﬁve-point scale)

FY2021

3.54

FY2022

3.53

FY2023

3.62[Examples of improvements in response to the employee satisfaction survey]
Implementation of billing management system
Introduction of oﬃce-based provision of side dishes, etc.
Installed monitors in all meeting rooms
Introduction of meal management application to company cell phones (health management)44

(2) Structure for collecting requests and grievances of employees
During interviews with directors, all employees (including both regular and contract employees, etc.) areprovided with an opportunity to air their various hopes for the Asset Management Company and to confirm
their own career options.
In addition, the Asset Management Company has established internal and external contact points for
consultation based on the internal consultation and whistleblowing regulations. The system enables all
employees (including both regular and contract employees, etc.) to anonymously report organizational orindividual behavior that violates laws and regulations (behavior that violates or is suspected of violating
laws, corporate ethics, and internal rules such as the compliance manual) or harassment to the Chief
Compliance Officer (or for matters concerning the Chief Compliance Officer, the President & CEO) or an
external law office. The same regulations protect whistleblowers and prohibit any disadvantage towhistleblowers, including retaliatory measures by the Asset Management Company such as dismissal. The
regulations also oblige the Asset Management Company to determine and take appropriate measures
regarding the reported matters.

(3) Cumulative investment unit investment program
The Asset Management Company has introduced a “cumulative investment unit investment program”
targeting all employees (including both regular and contract employees, etc.) of the Asset Management
Company, through which they can acquire investment units of MFLP-REIT. Officers, etc. of the AssetManagement Company who have been seconded from Mitsui Fudosan, our sponsor, can also use theircompany’s “cumulative investment unit investment program” to acquire investment units in MFLP-REIT. It is
anticipated that this system will result in all officers and employees (including both regular and contract
employees, etc.) being more focused on improving the performance of MFLP-REIT, and that this in turn willcontribute to the continuous growth of MFLP-REIT and enhancement of unitholder value. Furthermore, theAsset Management Company provides ﬁnancial incentives to all employees (including both regular andcontract employees, etc.) utilizing the program in an endeavor to further enhance their beneﬁt and welfare
programs.

45

(4) Beneﬁt and welfare
The various benefit and welfare (incentive) programs listed below have been established to create a working
environment in which all employees (including both regular and contract employees, etc.) can continue towork in comfort and with peace of mind.

Defined contribution pension plan （Note 1）

Flex-time system

Pre- and post-natal leave system

Remote work system

Childcare leave（Note 2）

Loan of PC and printer for working from home

Nursing care leave

Shared-office expenses borne by the company

Child nursing leave （Note 2）

Loan of smartphonechildcare allowance

Subsidization of fees for club activities

Congratulation and condolence leave/money
Term-end bonuses

Cafeteria plan
Award of prizes and bonuses under a reward system（Note 1） From May 2024, eligibility for membership in the defined contribution pension plan, which had been limited tofull-time employees and those up to age 60, has been expanded to full-time and contract employees and thoseup to age 65.

（Note 2） In order to support the balance between work and child rearing, a childcare leave system is available until thechild turns one year old (two years old if certain conditions are met), a childcare shortened working hour system
is available until the child turns three years old, and a nursing care leave system or nursing care shortened
working hour system is available for those with family members requiring nursing care. In addition, employees
can take paid leave to care for a child before the child enters elementary school and paid leave to care for afamily member who requires nursing care.

(5) Office Renewal
The Asset Management Companyʼs was renovated with employee comfort in mind. The Asset Management
Company created a comfortable work environment for employees by incorporating plenty of plants in theoﬃce, installing aroma diﬀusers, and paying attention to lighting and sound environment. In addition, a TEL
booth and solo seats have been arranger as a concentration area, more meeting space has been enhanced,
and DXing has been enhanced by adding monitors for videoconferencing, etc. In the library space, an oﬃce
bookstore (subscription for self-help and business books) has been introduced to provide employees with
opportunities to come into contact with books of various genres.

46

Promotion of Health Management
Human resources are recognized as the most important asset of the Management Company. We will not only
comply with the legal standards for health and safety, such as work-life balance, health of employees, labor
management, and risk management, but also work to create working environments where all employees cancontinue to work with confidence through the various initiatives described later. Specifically, the AssetManagement Company has joined the Mitsui Health Insurance Association and provides various assistancesystems such as subsidies for influenza, external subsidies for smoking ban and other vaccinations as wellas health screening fees, encourage to undergo periodic health checkups and physical examinations (themedical examination rate in FY2023 was 100%), to all employees (including both regular and contract
employees, etc.). In addition, balance balls and elevating tables have been introduced in conjunction with
office renovations to promote physical exercise due to desk work. Health management measures are being
implemented such as the use of health apps to promote exercise and improve diet.
Also, the Asset Management Company support the maintenance and promotion of employees' healththrough follow-up services such as invitations to undergo reexamination by industrial physicians. Officers,etc. who have been seconded from Mitsui Fudosan also benefit from similar subsidy systems, and initiatives
for the health of all officers and employees are implemented. In addition, in cooperation with an industrial
physician, the Asset Management Company has established a consultation point where all employees(including both regular and contract employees, etc.) can consult about both mental and physical health.
Furthermore, to ensure the safety of workplaces, the Asset Management Company conducts onsite checks
by an industrial physician. In addition, in order to reduce smoking rates in the workplace, a smoking
cessation assistance program was introduced in FY2023.
The Asset Management Company strives to care for the mental health of all employees (including both
regular and contract employees, etc.) by conducting stress checks for all officers and employees (seconded
employees are subject to the system of the assigning company) and holding mental health seminars
performed by external instructors (the participation rate in FY2023 was 100%). In addition, as events topromote health, the Asset Management Company participate in walking team competitions (theparticipation rate was 100%) also provide subsidies for the use of health-related facilities and sports
facilities as part of our welfare program. As a result of these activities, we obtained "authorization of silver"
for healthy excellent company in November 2023 and the 2023 Certiﬁed Health & Productivity Management
Outstanding Organizations (under the SME category) in March 2024 for two consecutive years.

Certiﬁed Health & Productivity
Management Outstanding

Introduction of health appliance

Organizations

47

Installation of blood pressure
monitorGovernance Framework

Organization of the investment corporation
Investment corporations have at least one executive director and at least one more supervisory director than
the number of executive directors. Please refer to “Directors” for information regarding the composition of
directors.
Furthermore, the executive directors of MFLP-REIT do not serve concurrently as directors of the AssetManagement Company.
The organization of MFLP-REIT is composed of the General Meeting of Unitholders, which is comprised ofunitholders; the Board of Directors, which is comprised of one executive director and two supervisory
directors; and the independent auditor.

Organization48

Independent auditor
Audit remuneration paid to the independent auditor for the 15th Fiscal Period (August 1, 2023 to January 31,2024) was as follows.

Name

Continuing Audit Period

KPMG AZSA LLC

From March 2016 until present

Amount of remuneration in the 15th Fiscal Period\11,000 thousand(Note) No payment of fees for non-auditing services has been made.
Furthermore, the independent auditor operates as follows, in accordance with the provisions on independent auditors
under the Certiﬁed Public Accountants Act, etc.
• Engagement partners may work on the audit operation for no more than seven accounting periods and lead engagement
partners for no more than ﬁve accounting periods.
• Engagement partners may not work on the audit operation again for ﬁve accounting periods after being replaced, and lead
engagement partners may not work on the audit operation again after being replaced.

Fines arising from ESG issues in the audited accounts
During the year from April 1, 2023 to March 31, 2024, there were no cases of ﬁnes levied due to ESG
problems.

49

Directors
The composition of MFLP-REITʼs Board of Directors during the 15th Fiscal Period (August 1, 2023 to January
31, 2024) totaled three members, namely one executive director (one male member) and two supervisory
directors (one male member and one female member). The attendance rate of these three directors at
meetings of MFLP-REITʼs Board of Directors and their compensation are as follows. These Directors are
selected by resolution of the unitholders' meeting for the following reasons.

Position

Name ofdirector, etc.

Length of service

Monthly remuneration
per director

AttendanceReason of Election

MFLP-REIT appointed him as
Executive
director

Hiroshi Asai

2 years 3 months(from November
2021)

18/18 times\500,000 per month（100%）

Executive Director because he hasabundant knowledge and experience inasset management and real estate
securitization, and he is capable ofperforming his duties as arepresentative of MFLP-REIT.
MFLP-REIT appointed him as

Supervisory
director

Supervisory
director

Izuru Goto

Eiko Osawa

7 years 11 months(from March 2016)

2 years 3 months(from November
2021)

60/60 times\300,000 per month（100%）

18/18 times（100%）\300,000 per monthSupervisory Director because, as an
attorney-at-law, he has expert
knowledge and experience in risk

management related to legal aﬀairs
and compliance, and he is competentenough to supervise the execution of
the Executive Oﬃcer's duties.
MFLP-REIT appointed her as
Supervisory Director because, as acertiﬁed public accountant, she has
expert knowledge and experience inrisk management related to accounting
and taxation, and she is competentenough to supervise the execution of
the Executive Oﬃcer's duties.

(Note) Remuneration shown is since November 2021.

Executive Director

Supervisory Director

Supervisory Director

Hiroshi Asai

Izuru Goto

Eiko Osawa

50

Organization chart
Management of the assets of MFLP-REIT is entrusted to the Asset Management Company. The AssetManagement Company engages in operations under the following operation structure in accordance with
the Asset Management Agreement concluded with MFLP-REIT.

For further details, please refer to the section of “(ii) Operation system” in the securities report

Asset management fee structure consistent with the interests ofunitholders
The aim is to keep the interests of MFLP-REIT’s unitholders consistent with the interests of the AssetManagement Company.

Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

Operating income (before deduction of asset management fees anddepreciation) × 5.5% (maximum)

Asset management fee III

Pre-tax earnings (before deduction of asset management fees) ×

Pre-tax EPU (before deduction of asset management fees) × 0.001%(maximum)51

Internal Control

Initiatives for thorough compliance
All officers and employees of MFLP-REIT and the Asset Management Company are to conduct corporate
activities honestly and appropriately based on high ethical standards beyond mere compliance with laws andregulations.
Pursuant to the Act on Investment Trusts and Investment Corporation and the Articles of Incorporation of
MFLP-REIT, MFLP-REIT stipulates in its Board of Directors Regulations that a Board of Directors meetingmust be held at least once every three months, at which the executive director must report on the status ofbusiness execution to ensure the supervision and control function of the supervisory directors. As of March
31, 2024, there are no cases where the interval between Board of Directors meetings has exceeded threemonths. The Board of Directors has a structure with one executive director and two supervisory directors,
both of whom are selected as experts with external specializations such as a lawyer and a Certified Public
Accountant.
Pursuant to the “Operation Policies” and the “Operation Guidelines” setting forth its basic philosophy for thefulfillment of fiduciary responsibility in asset management operations, the Asset Management Company
considers compliance to be an important issue in its management in order to increase trust from investors
and all other related parties. In addition, as an asset management company that is entrusted with asset
management, the Asset Management Company has fiduciary responsibility to strive to manage assets
appropriately by setting out concrete standards, strategies, and processes to be observed.
The Asset Management Company considers “Compliance” not only as legal compliance but also as
observing its internal rules and taking appropriate actions following social ethics and codes. As such, theAsset Management Company sets internal rules, such as “Compliance Rules” as concrete guidelines andrules. In addition, the Chief Compliance Officer has drawn up a Compliance Program, and is promoting acompany-wide culture of compliance that includes compliance awareness-raising and training activities forofficers and employees.
The Asset Management Company sets forth in its “Compliance Rules” that when doubts concerning abreach of or conflict with laws, regulations or internal rules, etc. arise, its officers and employees must
immediately report the facts to the Chief Compliance Officer. In cases where the Chief Compliance Officer
judges that there are problems with the content of a report, the Chief Compliance Officer shall promptly
report them to the President & CEO, the Chief Investment Officer, and the Chief Finance Officer, and form anappropriate response after conducting internal deliberations and performing checks with external52specialists, as required. Subsequently, after summarizing investigations into the facts of the matter, how theissue occurred, and measures to resolve it, a report is submitted to the Compliance Committee, the Board of
Directors, and the Board of Directors of MFLP-REIT. Furthermore, reports will also be made to the relevant
government agencies, as required. In light of applicable laws and regulations or internal rules etc., if acompliance violation or an act deemed to be a compliance violation exists, the relevant officer will be subject
to necessary measures pursuant to deliberation by the Board of Directors, and the relevant employee will be
subject to a disposition under its work rules. (There were no complaints, violations or discipline of officers or
employees related to non-compliance from April 1, 2023 to March 31, 2024.)
In addition, the Asset Management Company has established internal and external contact points for
consultation based on the Internal Consultation and Whistleblowing Regulations. The system enables
officers and employees to anonymously report organizational or individual behavior that violates laws andregulations (behavior that violates or is suspected of violating laws, corporate ethics, and internal rules suchas the compliance manual) to the Chief Compliance Officer (or for matters concerning the Chief Compliance
Officer, the President) or an external law office. These regulations are designed to help ensure compliancewith laws and regulations for the activities of MFLP-REIT and the Asset Management Company. Companies
are required to determine and execute appropriate measures for reported matters, and whistleblowers areprotected by the Whistleblower Protection Act.

Anti-bribery and anti-corruption policy
MFLP-REIT and the Asset Management Company have positioned thorough compliance as a fundamental
principle of management, and are striving to build a compliance system and promote compliance. They
ensure thorough compliance and prevention of bribery and corruption by stipulating in the Compliance
Manual regarding excluding refusing dealings with anti-social forces, AML/CFT, ensuring fair competition,prohibiting insider trading, and receiving gifts, entertainment and donation.

Prohibition of bribery and handling of gifts and entertainment
At the Asset Management Company, the Compliance Manual prohibits providing entertainment or gifts that
go beyond the bounds of moderation internally or for business partners or relevant parties, providing
entertainment or gifts that are intended to influence the decisions of the other party, and, in accordance with
the National Public Service Ethics Act, providing entertainment or gifts that are presented to office holdersof government offices.
In addition, the Compliance Manual also prohibits accepting entertainment or gifts that go beyond thebounds of moderation internally or for business partners or relevant parties, accepting, requesting, or
promising bribes, etc. (entertainment or gifts, etc., that exceed the bounds of moderation) from externalbusiness partners or relevant parties, or providing special arrangements based on such bribes.

53

Anti-corruption initiatives
All oﬃcers and employees (including contract employees) receive compliance training, including corruption
prevention such as “refusing dealings with anti-social forces,” “AML/CFT,” “fair and transparent
decisionmaking,” “prohibition of insider trading,” “entertainment, gifts, and donations,” as set out in the
Compliance Manual to ensure that they are fully aware of these. In selecting new business partners anddeveloping business in Japan and overseas, MFLP-REIT and the Asset Management Company strive to evaluate
the risk of corruption and prevent it. Through a checksheet for counterparties and conﬁrmation, etc. by the Chief
Compliance Oﬃcer, new business partners are checked comprehensively for “refusing dealings with anti-social
forces,” “AML/CFT,” “elimination of unfair trading practices,” “prohibition of insider trading,” and “entertainment,
gifts, and donations,” and for businesses deemed to be a high risk of corruption, the response is determined by
the Management Committee after discussion by the Compliance Committee. These anti-corruption policies areoverseen by the Board of Directors. Speciﬁcally, the Compliance Committee oversees and periodically reports to
the Board of Directors on corruption prevention such as “refusing dealings with antisocial groups,” “AML/CFT,”“prohibition of insider trading,” and “entertainment, gifts, and donations.”
At least once every three years, an audit is conducted of the entire scope of operating activities, using an internal
auditor (including audits using external experts).

Fines, surcharges and settlements related to bribery and corruption
There were no serious violations of laws and regulations due to non-compliance with anti-bribery regulations nor
ﬁnes, surcharges or settlements related to corruption paid from April 1, 2023 to March 31, 2024.

Employees subjected to discipline or dismissal related to bribery and corruption
No employees were disciplined or dismissed in relation to bribery or corruption from April 1, 2023 to March 31, 2024.

Establishment of systems for refusing dealings with antisocial groups
MFLP-REIT and the Asset Management Company strive to take a ﬁrm position on antisocial group and refuse
any relationships with them in accordance with the Mitsui Fudosan Group Compliance Policy. Furthermore, when
MFLPREIT or the Asset Management Company starts a transaction with a third party, they investigate andconﬁrm that the counterparty is not an antisocial group before starting the transaction. If it becomes clear thatthe counterparty is an anti-social force, and if the anti-social force makes an unjustiﬁed demand, the concrete
procedures are set forth in the Compliance Manual and the Regulation for Refusing Dealings with Antisocial
Forces for clarifying the ﬁrm response to anti-social forces. The Asset Management Company is a supporting
member of the Tokyo Center for Removal of Criminal Organizations, and has established a structure for refusing
dealings with anti-social forces by appointing a responsible person under Article 14 paragraph 1 of the Act on
Prevention of Unjust Acts by Organized Crime Group Members. If it encounters unjustiﬁed demands or violent
behavior from anti-social forces, the Asset Management Company contacts the police station with jurisdiction
and takes necessary legal measures and so forth.

54

Political contributions
No donations were made related to political activities to people outside of political parties or politicalfoundations. Moreover, when supporting the activities of a political group, MFLP-REIT and the AssetManagement Company do so appropriately in accordance with relevant laws and regulations, such as the
Political Funds Control Act and the Public Oﬃces Election Act.

Record of donations related to political activities and support for activities ofpolitical groups
No political contributions were made in the year from April 1, 2023 to March 31, 2024.

Risk management initiatives
MFLP-REIT and the Asset Management Company aim to evade and minimize risks in investment andmanagement of its assets under management.

Information security management system
The Asset Management Company has established “Information Management Regulations” and “Information
Management Rules” to counter information asset risk. These regulations and rules classify information
assets and set out a code of conduct for oﬃcers and employees as well as judgment criteria and so forth,aiming to protect information assets by maintaining and increasing the level of organizational information
management and information security. Speciﬁcally, the Asset Management Company strives to manage risk
by stipulating the following.
Establishment of person responsible for overall management of information security
Periodic revision of information management regulations and rules in line with IT technology innovationand internal promotion throughout the Asset Management Company
Ensuring rigorous information management regarding outsourcing providers

Occurrence of an information security incident
No information system faults with ﬁnancially or socially signiﬁcant impacts occurred during the year from
April 1, 2023 to March 31, 2024.

Disaster and terrorism response
MFLP-REIT and the Asset Management Company strive to raise awareness of disaster prevention throughordinary training, inspections, and education, and aim to ensure safety and security by establishing andregularly reviewing crises management manuals for disasters.

55

Status of unitholders
Of the total number of investment units issued and outstanding, the top 10 ranking companies bypercentage of investment units owned is as follows.
As of January 31, 2024

Number ofinvestment units
owned (units)

Name

Number of investment units
owned expressed as apercentage of total numberof investment units issued
and outstanding (%)

Custody Bank of Japan, Ltd. (Trust Account)

109,370

18.0%

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

99,333

16.3%

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

29,5604.9%

Mitsui Fudosan Co., Ltd.

28,9004.8%

SSBTC CLIENT OMNIBUS ACCOUNT

13,577

2.2%

SMBC Nikko Securities Inc.

13,569

2.2%

STATE STREET BANK AND TRUST COMPANY 505103

9,869

1.6%

STICHTING PENSIOENFONDS ZORG EN WELZIJN

9,834

1.6%

JP MORGAN CHASE BANK 380072

9,375

1.5%

STATE STREET BANK WEST CLIENT - TREATY 505234

9,333

1.5%

* “Number of investment units owned expressed as a percentage of total number of investment units issued andoutstanding” is rounded to the ﬁrst decimal place.

56

Sustainability Finance Framework

MFLP-REIT aims to strengthen the funding base by expanding the group of investors interested in ESG
investment and financing, along with promoting initiatives for ESG even further, by procuring funds through ESG
finance.

Sustainability Finance Framework
Overview of the Sustainability Finance Framework

Sustainability Finance Framework

Use of Proceeds from sustainability finance
The proceeds (the “Proceeds”) from sustainability finance shall be allocated towards the acquisition of specificassets (“Eligible Green Assets” and “Eligible Sustainable Assets” under sustainability finance, as defined below)
and towards refinancing new or existing debt and bonds to acquire these assets.

Eligible Sustainable Assets
Eligible Green Assets meet the following Eligible Green Project Criteria. Eligible Sustainable Assets meet therequirements of both Eligible Green Project Criteria and Eligible Social Project Criteria (for these two types of
eligible assets, hereinafter referred to as “Eligible Assets”).

57

Eligible Green Project Criteria
The acquisition or planned future acquisition of certiﬁcation or re-certiﬁcation (hereinafter “Green Building
Certiﬁcation”) by the following third-party certiﬁcation institutions (1) to (5):(1) DBJ Green Building Certiﬁcation: 3 stars or higher (top three certiﬁcation levels)(2) BELS Certiﬁcation: Three or more (top three certiﬁcation levels)(3) CASBEE Appraisal: B+ or higher (top three certiﬁcation levels)(4) LEED Certiﬁcation: Silver, Gold or Platinum (top three certiﬁcation levels)(5) Top three certiﬁcation levels from any other third-party certiﬁcation program
Eligible Social Project Criteria
New or existing real estate properties that meet two or more of the following criteria (1) to (3).

(1) Basic infrastructure development to revitalize the local community
Real estate that utilizes the land lot in a way that contributes to “urban development (machi-zukuri)” of thesurrounding area such as providing recreational green space based on the needs of the local society.
(2) Access to essential services for daily life
Real estate with adequate countermeasures to disaster such as evacuation centers used in the event of adisaster or has stockpiles of supplies for local residents.
Real estate that contributes to the local community such as having an authorized nursery center in theproperty.
(3) Socio-economic improvement and empowerment
Contributions to local societies and economies such as job creation by tenant companies and utilization of
local companies in construction projects.
Management of Proceeds
The upper limit of funds raised through sustainability ﬁnance is calculated by multiplying the interest-bearing
debt ratio (as of the most recent period-end that can be calculated as of the payment date or execution date ofbond or loan ﬁnancing) by total acquisition price of the Eligible Sustainable Assets.

External review
In a third-party evaluation of its Sustainability Finance Framework, MFLP-REIT has been assigned an “Su1(F)”evaluation, the highest of in the JCR Sustainability Finance Framework Evaluation by Japan Credit Rating
Agency, Ltd. (JCR). In addition, as a third-party evaluation of 1st Unsecured Bonds also obtained SU1 by JCR,
the highest on the rating scale for the JCR Sustainability Bond Evaluation.
For details of the evaluation, please refer to JCRʼs website → https://www.jcr.co.jp/en/greenﬁnance/58

Issuance Status of Investment Corporation Bonds
Utilizing this Framework
On February 12, 2021, MFLP-REIT issued its ﬁrst bond as a Sustainability Bond, for which it experienced strong
demand from investors with an interest in ESG.

AmountLenders
1st Unsecured Bonds(Special pari passu conditions among speciﬁed

investment corporation bonds)

Interest

Issue

Redemption

Repayment

0.500%

Feb. 12,2021

Feb. 12,
2031

30th

Rate

(Millions of yen)

3,000

(Sustainability bond)2nd Unsecured Bonds(Special pari passu conditions among speciﬁed

investment corporation bonds)

2,000

0.820%

date

Nov. 25,(Green bond)

Total

2022

date

PeriodNov. 25,

10 years

33rd

2032

SubjectTerm

10 years

Property

Status of

MFLP Kawaguchi I
MFLP Ibaraki

MFLP Yachiyo Katsutadai
MFLP Osaka Ⅰ
MFLP Hiratsuka Ⅱ

5,000

Othersfund allocation

Unsecured

allocated

Non-guaranteed
Credit Rating
JCR: AA

Unsecured

allocated

Non-guaranteed
Credit Rating
JCR: AA-

Borrowing Status of ESG Loans Utilizing this Framework
Lenders

Classiﬁcation(Millions of yen)AmountInterest
Rate

Fixed Borrowing Maturity Repayment
/
Date
Date
PeriodFloating

Term

Subject
Property

Status offund allocation

OthersMizuho Bank, Ltd.
（Green Loan）

Long-term

400

0.7488％

Fixed

Aug. 02,2022

Aug. 02,
2032

33rd

10 years

MFLP Kuki etc(*2)

allocated

UnsecuredNon-guaranteed

Nippon Life Insurance Company（Green Loan）

Long-term

500

0.6455％

Fixed

Aug. 04,2022

Aug. 04,
2031

31st

9 years

MFLP Komaki

allocated

UnsecuredNon-guaranteed

The Norinchukin Bank
（Green Loan）

Long-term

500

0.4988％

Fixed

Aug. 04,2022

Aug. 03,
2029

27th

7 years

MFLP komaki

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Banking Corporation（Green Loan）

Long-term

2,000

Base rate+0.33% (*1)

Floating

Sep. 01,
2022

Sep. 01,
2033

35th

11 years GLP/MFLP Ichikawa Shiohama

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Banking Corporation（Green Loan）

Long-term

500

0.50％

Fixed

Feb. 06,
2023

Feb. 01,
2027

22th

4 years

MFLP Hino etc(*3)

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Banking Corporation（Green Loan）

Long-term

500

1.2363％

Fixed

Feb. 06,
2023

Feb. 01,
2033

34th

10 years

MFLP Hino etc(*3)

allocated

UnsecuredNon-guaranteed

MUFG Bank, Ltd.
（Green Loan）

Long-term

1,000

0.63％

Fixed

Feb. 06,
2023

Feb. 07,
2028

24th

5 years

MFLP Hino etc(*3)

allocated

UnsecuredNon-guaranteed

Mizuho Trust & Banking Co., Ltd.
（Green Loan）

Long-term

500

1.2363％

Fixed

Feb. 06,
2023

Feb. 07,
2033

34th

10 years

MFLP Hino etc(*3)

allocated

UnsecuredNon-guaranteed

MUFG Bank, Ltd.
（Green Loan）

Long-term

2,200

0.6725％

Fixed

Mar. 01,
2023

Mar. 01,
2028

24th

5 years

GLP/MFLP Ichikawa Shiohama

allocated

UnsecuredNon-guaranteed

The Norinchukin Bank
（Green Loan）

Long-term

600

0.935％

Fixed

Mar. 15,2023

Mar. 17,
2031

30th

8 years

MFLP Hiratsuka

allocated

UnsecuredNon-guaranteed

Mizuho Trust & Banking Co., Ltd.
（Green Loan）

Long-term

300

1.1163％

Fixed

Mar. 15,2023

Feb. 07,
2033

34th

10 years

MFLP Hiratsuka

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Trust Bank, Limited（Green Loan）

Long-term

2,000

0.5313％

Fixed

Sep. 01,
2023

Sep. 01,
2027

23th

4 years

GLP/MFLP Ichikawa Shiohama

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Trust Bank, Limited（Green Loan）

Long-term

1,200

0.6225％

Fixed

Feb. 01,2024

Feb. 01,
2028

24th

4 years

MFLP HIRATSUKA Ⅲ etc(*4)

allocated

UnsecuredNon-guaranteed

Long-term

1,200

0.52125％

Fixed

Feb. 01,

Feb. 01,

22th

3 years

MFLP HIRATSUKA Ⅲ etc(*4)

allocated

UnsecuredNon-guaranteed

Long-term

1,000

Feb. 01,

Feb. 02,

32th

8 years

MFLP HIRATSUKA Ⅲ etc(*4)

allocated

UnsecuredNon-guaranteed

Long-term

1,000

Feb. 01,

Aug. 02,33th

8.5 years

MFLP HIRATSUKA Ⅲ etc(*4)

allocated

UnsecuredNon-guaranteed

Long-term

1,000

Feb. 01,

Feb. 01,36th

10 years

MFLP HIRATSUKA Ⅲ etc(*4)

allocated

UnsecuredNon-guaranteed

Long-term

1,300

Feb. 02,

Feb. 02,34th

9 years

MFLP Kuki etc(*2)

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Trust Bank, Limited（Green Loan）

Long-term

1,500

0.6288％

Fixed

Feb. 05,2024

Feb. 07,
2028

24th

4 years

MFLP Hino etc(*3)

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Banking Corporation（Green Loan）

Long-term

1,700

Base rate+0.33% (*1)

Floating

Mar. 04,2024

Mar. 05,
2035

34th

11 years

MFLP HiroshimaⅠ

allocated

MUFG Bank, Ltd.
（Green Loan）

The Bank of Fukuoka（Green Loan）

The Hachijuni Bank, Ltd.
（Green Loan）

The Iyo Bank, Ltd.
（Green Loan）

The Bank of Fukuoka（Green Loan）

Base rate+0.2% (*1)
Base rate+0.2125% (*1)
Base rate+0.25% (*1)
Base rate+0.225% (*1)

Floating
Floating
Floating
Floating

2024
2024
2024
2024

2024

59

2027
2032

2032

2034

2033

UnsecuredNon-guaranteed

Lenders
MUFG Bank, Ltd.
（Green Loan）

Sumitomo Mitsui Trust Bank, Limited（Green Loan）

The Hachijuni Bank, Ltd.
（Green Loan）
The Yamaguchi Bank, Ltd.
（Green Loan）

Interest
Rate

Long-term

800

0.5225%

FixedLong-term

800

0.6088%

FixedLong-term

500

Long-term

1,000

Total

AmountFixed Borrowing Maturity Repayment
/
Date
Date
PeriodFloating(Millions of yen)Classiﬁcation

Base rate
Floating+0.2125% (*1)
1.2419%Fixed

Mar. 15,

Mar. 15,

Mar. 15,

Mar. 15,

Mar. 15,
2024

Sep. 15,2032

Mar. 15,

Sep. 15,

2024

2024

2024

24,000

2027

2028

2033

Subject

Term

Status of

Propertyfund allocation

22nd

3 years

MFLP Tomei Ayase

allocated

24th

4 years

MFLP Tomei Ayase

allocated

33rd

8.5 years

MFLP Tomei Ayase

allocated

35th

9.5 years

MFLP Tomei Ayase

allocated

OthersUnsecuredNon-guaranteed
UnsecuredNon-guaranteed
UnsecuredNon-guaranteed
UnsecuredNon-guaranteed-（Note 1） The base interest rate is the JBA three-month Japanese Yen TIBOR published by JBA. Even if the interest calculation
period is less than three months, the base interest rate will be calculated using the three-month JBA Japanese
Yen TIBOR. The JBA Japanese yen TIBOR can be found on the website of the JBA TIBOR Administration(http://www.jbatibor.or.jp/english/rate/).
（Note 2） MFLP Yokohama Daikoku, MFLP Yashio, MFLP Atsugi, MFLP Funabashi Nishiura,
MFLP Kashiwa, MFLP Sakai, GLP/MFLP Ichikawa Shiohama（Note 3） MFLP Inazawa, MFLP Atsugi Ⅱ, MFLP Fukuoka Ⅰ（Note 4） MFLP ShinkibaⅠ, SG Realty MFLP Fukuoka Kasuya

Click here for the List of Interest-Bearing Debt

Reporting
MFLP-REIT will publish the following items each year on its website as long as there is outstanding
sustainability ﬁnance.

Information as of January 31, 2024.

Status of fund allocation
The upper limit of funds raised through sustainability ﬁnance is calculated by multiplying the interest-bearing
debt ratio (“LTV”, as of the most recent period-end that can be calculated as of the payment date or execution
date of bond or loan ﬁnancing) by total acquisition price of the Eligible Green Assets※1 (including Eligible
Sustainable Assets) and the Eligible Sustainable Assets※1.

※1 The total of eligible assets selected through the procedures set forth in the Framework.
※2 LTV is as of the end of 14th FP (July 31, 2023).

60

Reporting on environmental improvement eﬀects
The status of the green building assessments and certiﬁcation levels
See Initiatives to Obtain Green Building Certiﬁcation for details.

Reporting on social beneﬁts

Output indicators
3 properties
Number of Eligible Social
AssetsOutcome(1)1) Basic infrastructure development to revitalize the local community
Overview of the project (Target Assets)

MFLP Hino

MFLP Sakai

As well as incorporating a certiﬁed child care facility that can be used
not only by employees but also by local residents, the seismicallyisolated structure also contains stockpiles for disaster prevention.

As well as being seismically isolated, this building provides
infrastructure for use in times of emergency, such as stockpiles fordisaster prevention, emergency-use toilets, and disaster relief vending
machines. It has also been designated a tsunami refuge by the local
government.

MFLP Kawaguchi I

Number of facilities equipped withseismic isolation structures

When acquiring and developing real estate owned by the City of
Kawaguchi, as well as helping to promote local industry in Kawaguchi,
we also provide disaster relief services to local residents and establish
spaces for their relaxation.
2 properties/3 properties

61

(2)
2) Access to essential services
Number of facilities designated as
evacuation sites in the event of a disaster1 property／3 properties

Number of facilities equipped withdisaster relief vending machines

2 properties／3 properties

Number of facilities equipped with

3 properties／3 properties

Number of facilities equipped with

1 property／3 properties

emergency supply stockpiles

cooking bench**

The “cooking bench” is a brick-enclosed basewith a seat plate placed on it. It is normallyused as a bench, but it is also used as a kitchen
range in the event of a disaster.

Number of facilities equipped withemergency toilets

2 properties／3 properties

Number of facilities equipped with

3 properties／3 properties

Number of licensed nursery centers

1 property／3 properties

emergency power supply(3)3) Socio-economic improvement and empowerment
Number of facilities hiring local residents

3 properties／3 properties

Number of facilities hiring local companies
for construction work

3 properties／3 properties

62

Sustainability Linked Loan Framework

MFLP-REIT aims to strengthen the funding base by expanding the group of investors interested in ESG
investment and financing, along with promoting initiatives for ESG even further, by procuring funds throughESG finance.

Sustainability Linked Loan Framework
Overview of the Sustainability Linked Loan Framework
With a view to procuring the Sustainability Linked Loan, MFLP-REIT has developed the Framework, the firsttime for J-REIT.
Under the Framework, “CO2 emission intensity in logistics facilities (Scope 1 and 2)” was selected as a KPI(the "KPI"), and the following SPT was established based on the KPI.
Sustainability Linked Loans are loan products that aim to help borrowers and lenders achieve sustainability by
incentivizing the achievement of ambitious SPTs predetermined by the borrower.

The selection of KPIThe KPI "energy conservation and reduction of CO2 emissions" selected for this framework corresponds to"reduction of environmental impact and energy generation" among the six priority action items in the "VISION
2025" ,which policy of Mitsui Fudosan Group. It is also consistent with the content of the environmental KPI
set by MFLP-REIT in March 2022.

Measurement of SPT
In the "CO2 emissions intensity of logistics real estate (base year: 2016)" section of the environmental KPI set
in March 2022, MFLP-REIT has set a target of 100% reduction by 2030 compared to the base year for theowner-managed portion (Scope 1 and 2).
If the loan term ends before 2030, reduction targets shall be set for the individual loan term, as necessary, andshall be specified in the Loan Agreement and other documents.

63

Characteristics of the Loan
The borrowing rate will be linked to the degree of achievement of the SPT as follows:
Details of SPT determination

Incentive/Disincentive①

Scope 1 and 2: Reduce CO2 emissions intensity fromlogistics real estate by 100% by 2030 compared to 2016(base year)

Reduction of applicable interest rates
upon achievement of SPT②

Scope 1 and 2: Reduce CO2 emissions intensity fromlogistics real estate in 2030 below 2016 (base year)

Increase in applicable interest rate
when SPT not achieved

The specific applicable interest rate linkage range shall be separately stipulated in the Loan Agreement, etc.
for each individual loan.
In cases where reduction targets are set for individual loan periods, the details of the determination of SPT
and the applicable conditions shall also be separately stipulated in the Loan Agreement, etc.

External Review
MFLP-REIT has gotten Rating and Investment Information, Inc. to obtain the second opinion that the
Framework complies with the "Sustainability Linked Loan Principles" and the Ministry of Environment
Guidelines on “Expectations for Sustainability Linked Loans”. The second opinion is available on their website.

64

Borrowing Status of Sustainability Linked Loans
Utilizing this Framework(Millions of yen)Interest
Rate

Fixed
/
Floating

Long-term

500

0.50％

Fixed

Sumitomo Mitsui Banking Corporation

Long-term

400

1.2743％

Sumitomo Mitsui Trust Bank, Limited

Long-term

500

Mizuho Bank, Ltd.

Long-term

MUFG Bank, Ltd.

Repayment
PeriodTerm

Status offund allocation

Remarks

Feb 01, 2023 Feb 01, 2027

22nd

4 years

allocated

UnsecuredNon-guaranteed

Fixed

Feb 01, 2023 Feb 01, 2033

34th

10 years

allocated

UnsecuredNon-guaranteed

0.5875％

Fixed

Feb 01, 2023 Feb 01, 2027

22nd

4 years

allocated

UnsecuredNon-guaranteed

500

1.2743％Fixed

Feb 01, 2023 Feb 01, 2033

34th

10 years

allocated

UnsecuredNon-guaranteed

Long-term

300

0.5375％

Fixed

Feb 01, 2023 Feb 01, 2027

22nd

4 years

allocated

UnsecuredNon-guaranteed

Mizuho Trust & Banking Co., Ltd.

Long-term

500

1.2743％Fixed

Feb 01, 2023 Feb 01, 2033

34th

10 years

allocated

UnsecuredNon-guaranteed

The Bank of Fukuoka

Long-term

500

1.0175％

Fixed

Feb 01, 2023 Aug 01, 2030

29th

7.5 years

allocated

UnsecuredNon-guaranteed

Nippon Life Insurance Company

Long-term

500

1.2743％Fixed

Feb 01, 2023 Feb 01, 2033

34th

10 years

allocated

UnsecuredNon-guaranteed

The Norinchukin Bank

Long-term

500

0.9663％Fixed

Feb 01, 2023 Feb 01, 2030

28th

7 years

allocated

UnsecuredNon-guaranteed

The Yamaguchi Bank, Ltd.

Long-term

500

1.2743％Fixed

Feb 01, 2023 Feb 01, 2033

34th

10 years

allocated

UnsecuredNon-guaranteed

Shinkin Central Bank

Long-term

500

1.2265％

Fixed

Feb 01, 2023 Aug 01, 2032

33rd

9.5 years

allocated

UnsecuredNon-guaranteed

Sumitomo Life Insurance Company

Long-term

500

1.2743％Fixed

Feb 01, 2023 Feb 01, 2033

34th

10 years

allocated

UnsecuredNon-guaranteed

The Chiba Bank, Ltd.

Long-term

400

1.0175％

Fixed

Feb 01, 2023 Aug 01, 2030

29th

7.5 years

allocated

UnsecuredNon-guaranteed

SBI Shinsei Bank, Limited

Long-term

500

1.2743％Fixed

Feb 01, 2023 Feb 01, 2033

34th

10 years

allocated

UnsecuredNon-guaranteed

The Joyo Bank, Ltd.

Long-term

400

1.0175％

Fixed

Feb 01, 2023 Aug 01, 2030

29th

7.5 years

allocated

UnsecuredNon-guaranteed

Daishi Hokuetsu Bank, Ltd.

Long-term

400

0.9663％Fixed

Feb 01, 2023 Feb 01, 2030

28th

7 years

allocated

UnsecuredNon-guaranteed

The Bank of Kyoto, Ltd.

Long-term

400

1.2265％

Fixed

Feb 01, 2023 Aug 02, 2032

33rd

9.5 years

allocated

UnsecuredNon-guaranteed

Momiji Bank Ltd.

Long-term

400

1.2265％

Fixed

Feb 01, 2023 Aug 02, 2032

33rd

9.5 years

allocated

UnsecuredNon-guaranteed

The Keiyo Bank, Ltd.

Long-term

400

1.0175％

Fixed

Feb 01, 2023 Aug 01, 2030

29th

7.5 years

allocated

UnsecuredNon-guaranteed

The Yamagata Bank Ltd.

Long-term

400

0.9663％Fixed

Feb 01, 2023 Feb 01, 2030

28th

7 years

allocated

UnsecuredNon-guaranteed

Kiraboshi Bank, Ltd.

Long-term

300

0.9663％Fixed

Feb 01, 2023 Feb 01, 2030

28th

7 years

allocated

UnsecuredNon-guaranteed

Kiraboshi Bank, Ltd.

Long-term

200

1.2743％Fixed

Feb 01, 2023 Feb 01, 2033

34th

10 years

allocated

UnsecuredNon-guaranteed

The Hachijuni Bank, Ltd.

Long-term

500

1.0175％

Fixed

Feb 01, 2023 Aug 01, 2030

29th

7.5 years

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Banking Corporation

Long-term

1,700

1.1300％

Fixed

Feb 01, 2024 Feb 02, 2032

32nd

8 years

allocated

UnsecuredNon-guaranteed

Mizuho Bank, Ltd.

Long-term

1,200

1.3238％Fixed

Feb 01, 2024 Feb 01, 2034

36th

10 years

allocated

UnsecuredNon-guaranteed

The Norinchukin Bank

Long-term

1,000

1.2275%

Fixed

Feb 01, 2024 Feb 01, 2033

34th

9年

allocated

UnsecuredNon-guaranteed

The Joyo Bank, Ltd.

Long-term

1,000

1.13％

Fixed

Feb 01, 2024 Feb 02, 2032

32nd

8 years

allocated

UnsecuredNon-guaranteed

Daishi Hokuetsu Bank, Ltd.

Long-term

1,000

0.9888％Fixed

Feb 01, 2024 Feb 03, 2031

30th

7 years

allocated

UnsecuredNon-guaranteed

Resona Bank, Limited

Long-term

1,500

Base rate
Floating Feb 01, 2024 Aug 01, 2033
+0.2375% (*1)

35th

9.5 years

allocated

UnsecuredNon-guaranteed

The Keiyo Bank, Ltd.

Long-term

500

0.9888％Fixed

Feb 01, 2024 Feb 03, 2031

30th

7 years

allocated

UnsecuredNon-guaranteed

The Yamagata Bank Ltd.

Long-term

700

1.2756％

Fixed

Feb 01, 2024 Aug 01, 2033

35th

9.5 years

allocated

UnsecuredNon-guaranteed

Lenders

Classiﬁcation

Sumitomo Mitsui Banking Corporation

Amount65

Borrowing
Date

Maturity
DateLenders

Classiﬁcation

Amount(Millions of yen)Interest
Rate

Fixed
/
Floating

Borrowing
Date

Maturity
Date

Repayment
PeriodTerm

Status offund allocation

Remarks

Mizuho Trust & Banking Co., Ltd.

Long-term

500

Base rate+0.225% (*1)

Floating Feb 05, 2024 Feb 07, 2033

34th

9 years

allocated

UnsecuredNon-guaranteed

Mizuho Trust & Banking Co., Ltd.

Long-term

600

Base rate+0.225% (*1)

Floating Mar 01, 2024 Feb 07, 2033

34th

9 years

allocated

UnsecuredNon-guaranteed

The Chiba Bank, Ltd.

Long-term

1,000

0.9563%Fixed

Mar 15, 2024 Mar 17, 2031

30th

7 years

allocated

UnsecuredNon-guaranteed

Sumitomo Mitsui Banking Corporation

Long-term

1,400

1.0975%Fixed

Mar 15, 2024 Mar 15, 2032

32nd

8 years

allocated

UnsecuredNon-guaranteed

Shinkin Central Bank

Long-term

1,500

1.0975%Fixed

Mar 15, 2024 Mar 15, 2032

32nd

8 years

allocated

UnsecuredNon-guaranteed

Resona Bank, Limited

Long-term

500

Base rate
Floating Mar 15, 2024 Sep 15, 2032
+0.2125% (*1)

33rd

8.5 years

allocated

UnsecuredNon-guaranteed

The Norinchukin Bank

Long-term

500

1.195%Fixed

Mar 15, 2024 Mar 15, 2033

34th

9 years

allocated

UnsecuredNon-guaranteed

SBI Shinsei Bank, Limited

Long-term

1,200

1.195%Fixed

Mar 15, 2024 Mar 15, 2033

34th

9 years

allocated

UnsecuredNon-guaranteed

Mizuho Bank, Ltd.

Long-term

800

1.2888%Fixed

Mar 15, 2024 Mar 15, 2034

36th

10 years

allocated

UnsecuredNon-guaranteed

Total

27,600-（Note 1） The base interest rate is the JBA three-month Japanese Yen TIBOR published by JBA. Even if the interest calculation

period is less than three months, the base interest rate will be calculated using the three-month JBA Japanese Yen
TIBOR.
The JBA Japanese yen TIBOR can be found on the website of the JBA TIBOR Administration(http://www.jbatibor.or.jp/english/rate/).

Click here for the List of Interest-Bearing Debt

Reporting and Veriﬁcation
MFLP-REIT shall submit evidence to the Lender regarding SPT results (Reduction rate of CO2 emissions
intensity for Scope 1 and 2 compared to the base year) for the previous calculation year by June 30 of eachcalculation year, regardless of whether the SPT is determined or not. However, if MFLP-REIT has publicized
the same information on website, etc., submission of the materials is not required.

66