Summary of Financial Results for the Fiscal Period Ended February 29, 2020 (REIT)
April 17, 2020
Name of Issuer:
Stock Exchange Listing:

Mitsubishi Estate Logistics REIT
Investment Corporation (“MEL”)
Tokyo Stock Exchange

Securities Code:3481

Website:https://mel-reit.co.jp/en/

Representative:

Masaki Sakagawa, Executive Director

Asset Management Company:
Representative:
Inquiries:

Mitsubishi Jisho Investment Advisors, Inc.
Haruhiko Araki, President & CEO
Masaki Sakagawa, Executive Vice President, General Manager,
Logistics REIT Management Department
Tel. 81-3-3218-0030

Scheduled Date of Filing of Securities Report:
Scheduled Date of Commencement of Distributions Payments:

May 29, 2020
May 20, 2020

Supplementary Materials for Financial Results:
Investors and Analysts Meeting:Yes
Yes(Values are rounded down to the nearest million yen)

1. Financial Results for the Fiscal Period Ended February 29, 2020 (7th Fiscal Period) (from Sept. 1, 2019 to Feb. 29, 2020)(1) Operating Results(Percentages indicate change from the previous period)
Operating revenues
Operating income% Millions of yen%
Fiscal period ended Millions of yen
Feb. 29, 2020
3,200
26.5
1,749
39.5
Aug. 31, 2019
2,530
1.5
1,253
(1.1)

Ordinary income
Net income
Millions of yen% Millions of yen
1,683
34.7
1,632
1,212
3.5
1,211

%
34.7
3.5

Return on unitholders’
Ratio of ordinary income Ratio of ordinary income
equityto total assets
to operating revenues
Fiscal period ended
Yen
%
%
%
Feb. 29, 2020
5,563
2.3
1.6
51.0
Aug. 31, 2019
4,930
2.0
1.4
47.9
Note: MEL issued new investment units of 57,150 units and 2,850 units on Oct. 7, 2019 and Nov. 7, 2019, respectively. For the fiscal
period ended Feb. 29, 2020, net income per unit is calculated by dividing net income by the day-weighted average number ofinvestment units outstanding during the period 293,461 units.
Net income per unit

(2) Distributions
Distributions Total amount ofDistributions Total amount
Total amount
per unit
per unit of distributions
Ratio ofdistributions Surplus cashof surplus
Payout(excluding(including
distributions(excluding distributions(including
cash
ratio
surplus cash surplus cash
per unit
surplus cash surplus cash
to net assets
distributions
distributions) distributions)distributions) distributions)
Yen Millions of yen
Yen Millions of yen
Yen Millions of yen
Fiscal period ended%%
Feb. 29, 2020
5,338
1,632
569
174
5,907
1,806
100.0
2.1
4,930
1,211
594
146
5,524
1,357
Aug. 31, 2019
100.0
2.0
Notes:
1. Total amount of surplus cash distributions are the refund of investment, which falls under the distributions through reduction inunitholders’ capital under taxation law.
2. The ratio of net asset value attributable to a reduction in unitholders’ paid-in capital for the fiscal periods ended Aug. 31, 2019 andFeb. 29, 2020, is 0.002 and 0.003, respectively. The payment of surplus cash distributions is deemed a return of capital. This calculation
methodology is pursuant to Article 23, Paragraph 1, Item 4 of the Act on Special Measures Concerning Taxation.
3. With the issuance of new investment units conducted in the fiscal period ended Feb. 29, 2020, the payout ratio is calculated using
the following formula.
Payout ratio = Total amount of distributions (excluding surplus cash distributions)/Net income ×100

(3) Financial Position
Total assets
Fiscal period ended
Feb. 29, 2020
Aug. 31, 2019

Unitholders’ equity tototal assets

Net assets

Millions of yen
121,425
88,457

Millions of yen
81,80062,044

Cash flows fromoperating activities
Millions of yen
1,312
2,194

Cash flows frominvesting activities
Millions of yen(30,475)
(64)

%
67.4
70.1

Net assets per unit
Yen
267,484
252,403(4) Cash Flows

Fiscal period ended
Feb. 29, 2020
Aug. 31, 2019

Cash flows from
Cash and cash equivalents
financing activities
Millions of yen
Millions of yen
7,287
30,626
5,823(1,348)

2. Forecasts for the Fiscal Periods Ending Aug. 31, 2020 (from Mar. 1, 2020 to Aug. 31, 2020) and Feb. 28, 2021 (fromSept. 1, 2020 to Feb. 28, 2021)(Percentages indicate change from the previous period)
Distributions
Distributions
per unit
Operating revenues Operating income Ordinary income
Net income
per unit(including(excluding
SCD)
SCD)
Millionsof%Millionsof%Millionsof%Millions
of
%
Yen
Yen
Fiscal period ending
yen
yen
yen
yen
Aug. 31, 2020
3,346
4.6
1,715 (2.0)
1,638 0.3
1,637 0.3
5,947
5,353
Feb. 28, 2021
3,375
0.9
1,694 (1.2)
1,617 (1.2)
1,616 (1.2)
5,968
5,286
(Reference) Forecasted net income per unit for the fiscal period ending Aug. 31, 2020: 5,353 yen
Forecasted net income per unit for the fiscal period ending Feb. 28, 2021: 5,286 yen

SCD*Other(1) Changes in accounting policies, accounting estimates, or restatements(a) Changes in accounting policies due to revisions to accounting standards and other regulations:None(b) Changes in accounting policies due to other reasons:None(c) Changes in accounting estimates:
None(d) Restatements:
None(2) Total number of investment units issued and outstanding(a) Total number of units issued and outstanding at the end of the fiscal period (including treasury units)
As of Feb. 29, 2020
305,815 units
As of Aug. 31, 2019245,815 units(b) Number of treasury units at the end of the fiscal period
As of Feb. 29, 2020
0 units
As of Aug. 31, 2019
0 units
Note: Please refer to “Notes Concerning Per Unit Information” on page 22 for the based calculation for the forecasted net
income per unit.

*Implementation Status of Statutory Audit
At the time of this financial report, the audit procedures for the financial statements pursuant to the Financial
Instruments and Exchange Act have not been completed.
*Explanation on the Appropriate Use of the Forecast of Financial Results and Other Matters of Special Consideration
The forward-looking statements in this material are based on information currently available to us and on certain
assumptions that we believe are reasonable. Actual operating performance may differ substantially due to various
factors. Furthermore, those statements shall not be deemed a guarantee or any commitment of the amount of
future distributions and surplus cash distributions. Please refer to “Forecast Assumptions for the Fiscal Periods
Ending Aug. 31, 2020 and Feb. 28, 2021 and” on page 6 for assumptions regarding forward-looking statements.
Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Yen
594
682

Index1. Results of Operations(1) Results of Operations ...................................................................................................................................................................... 2(A)Overview of the Seventh Fiscal Period ended February 29, 2020 …............................................................................................. 2(i) Major Operational Results of MEL ........................................................................................................................................... 2(ii) Investment Environment and Operational Results of the Seventh Fiscal Period ended February 29, 2020............................ 2(iii) Overview of Financing ............................................................................................................................................................ 3(iv) Overview of Financial Results and Distributions .................................................................................................................... 3(B) Outlook for Next Fiscal Period .................................................................................................................................................... 4(i) Future Management Policies ………………................................................................................................................................... 4(ii) Significant Subsequent Events ................................................................................................................................................ 4(iii) Earnings Forecast ................................................................................................................................................................... 4
2. Risk Factors ……..……………………….......................................................................................................................................................... 8
3. Financial Statements(1) Balance Sheet .................................................................................................................................................................................. 9(2) Statement of Income and Retained Earnings .................................................................................................................................. 11(3) Statement of Changes in Net Assets................................................................................................................................................ 12(4) Statement of Cash Distribution ....................................................................................................................................................... 13(5) Statement of Cash Flows ................................................................................................................................................................. 14(6) Notes Concerning Going Concerns Assumption .............................................................................................................................. 14(7) Notes Concerning Significant Accounting Policies .......................................................................................................................... 15(8) Notes Concerning Financial Statements ......................................................................................................................................... 16(9) Change in Number of Investment Units Issued and Outstanding ................................................................................................... 23
4. Reference Information(1) Composition of MEL’s Assets .......................................................................................................................................................... 24(2) Investment Assets …………................................................................................................................................................................ 24(i) Overview of Portfolio ................................................................................................................................................................. 25(ii) Overview of Properties……………………………….……………………………………………………………………………………..................................... 26(iii) Overview of Tenant Agreements ………………..…….…………………………………................................................................................. 27(iv) Overview of Appraisal Report ……….......................................................................................................................................... 29(v) Information Regarding Major Real Estate Properties ………....................................................................................................... 30(vi) Information Regarding Major Tenants…………………………………………………………………………......................................................... 30(vii) Property Distribution ……………………………………………………………………………………………………....................................................... 31(viii) Details of Collateral ……... ……………………………………………………………………………………………....................................................... 33(ix) Capital Expenditure for Owned Properties………..…………………………………………………………......................................................... 33(x) Overview of Property Leasing and Status of Operating Income …..…………………………………....................................................... 34-1-

1. Results of Operations(1) Results of Operations(A)Overview of the Seventh Fiscal Period ended February 29, 2020(i) Major Operational Results of MEL
Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) was established on July 14, 2016 under the“Act on Investment Trust and Investment Corporation” (“Investment Trust Law”), and was listed on the REIT
Securities Market of the Tokyo Stock Exchange on September 14, 2017 (securities code: 3481).
Mitsubishi Estate Co., Ltd. (“MEC”), one of the largest comprehensive developers in Japan, acting as asponsor. MEL focuses on investing in logistics facilities. MEL’s asset management company, Mitsubishi Jisho
Investment Advisors, Inc. (“Asset Management Company” or “MJIA”) has boasting an extensive track recordin real estate fund management since its establishment in 2001. Through “HYBRID” (Note) utilization of thestrengths of both companies, MEL aims for maximization of unitholder value by striving for the building of ahigh-quality portfolio and steady and stable asset management as a listed real estate investment corporation
investing mainly in logistics facilities. Focusing on “location”, ”building features” and “stability,” we aim tobuild a long-term and stable portfolio through selective investments in highly competitive logistics facilities
that meet tenant needs.
Furthermore, MEL announced its new management policy based on the “Three Pillars” on April 17, 2019, asa management plan designed to maximize unitholder value in the medium- to long-term. The management
policy is intended to gather the entire MEC Group to work together and improve unitholder value of MEL,
focusing on the following three pillars: Alignment (align interest with unitholders), Discipline (disciplined
growth) and Hybrid (enhance MEL’s unique strategy, the hybrid model).
MEL acquired one additional property (MJ Logipark Tsuchiura 1) on September 2, 2019, and additional four
properties (LOGIPORT Osaka Taisho, MJ Logipark Nishinomiya 1, MJ Logipark Kasugai 1 and MJ Industrial Park
Sakai (Land)), on October 9, 2019, total of five properties worth aggregate acquisition price of 30,568 million
yen during the reporting fiscal period. As a result, MEL owned 15 properties (aggregate acquisition price:
113,787 million yen), at the end of the reporting fiscal period (Feb. 29, 2020).
Note: ”HYBRID,” as in the English term “hybrid” meaning a combination of two things, is used in the context of utilization of
the strengths of MEC and MJIA to refer to the strengths of both companies being utilized creatively and at times
combined depending on the situation and thereby making the most of these in the management of MEL.

(ii) Investment Environment and Operational Results of the Seventh Fiscal Period ended February 29, 2020
During the reporting fiscal period (ended on Feb. 29, 2020), it was expected that Japanese economy would
show a gradual recovery trend based on consistent improvement in the employment and income
environment in 2019; however, business activities have been restrained due to the global pandemic of the
new coronavirus disease, Covid-19, which has reinforced a trend of economic slowdown. Impacts of thisinfectious disease is expected to continue for some time and we need to pay close attention to impacts on
the financial and capital markets. The actual GDP (gross domestic product) for the fourth quarter of 2019(from October to December) experienced a negative growth for the first time in five quarters, a decrease by
7.1% on an annualized basis, due to the reactionary decline following the last-minute demand before theconsumption tax hike and sluggish spending caused by the large typhoons and mild winter.
Domestic and international investors in the real estate transaction market are still highly motivated to makeinvestments against the backdrop of the consistent low interest rate environment. J-REITs, private funds,
overseas investors and other core investors continue to actively engage in acquisition of properties. Thoughpotential impacts of the pandemic of Covid-19 on the real estate prices are still unknown, the level oftransaction yields remains low.
Money inflow continued in the J-REIT market as it was appreciated for the higher yield than other financial
instruments and its defensive characteristics that made it less susceptible to overseas situations, on the backof the global trend of increasing downward pressure on interest rates and weaker equity and currency
markets. The Tokyo Stock Exchange REIT Index maintained the level above 2,000 points. However, now thismarket is also on the decline and growing uncertainties prevail, due to concerns over global recession andvolatility in the financial and capital markets attributable to the global pandemic of Covid-19.
In the market of logistics facilities, despite the large volume of new supply, the vacancy rate has remained
at a low level supported by the growth in the third party logistics (3PL) market attributable to an increase inoutsourced logistics operations, strong needs for restructuring of logistics bases mainly in the manufacturing
and wholesale sectors, and huge new demand triggered by steady growth in the retail EC market. It is
expected that the continuation of large volume of new supply will have only a limited impact on theproperties under management, including those in the MEL portfolio, as tenant leasing activities for properties
under construction show good progress.
As of the end of the reporting fiscal period (Feb. 29, 2020), MEL owned 15 properties (aggregate acquisition-2-

price: 113,787 million yen) and the occupancy rate remained high, at 99.9% as of the end of the reporting
fiscal period.

(iii) Overview of Financing
MEL aims for financial management with emphasis on soundness and LTV control and also efficient cash
management.
a. Issuance of New Investment Units
MEL issued new investment units through its public follow-on offering (57,150 units) and raised 18,556
million equity capital, with a payment date of October. 7, 2019, to procure funds to acquire four new
properties. MEL additionally issued units through a third-party allotment (2,850 units) and raised 925 million
equity capital, with a payment date of November 7, 2019. As a result of these offerings, the balance of MEL’s
unitholders’ capital was 80,168 million yen and the total number of units issued and outstanding was 305,815
as of the end of the reporting fiscal period (Feb. 29, 2020).
b. Debt Financing
MEL’s financial strategy is to take consideration of proportion of short and long-term borrowings, thebalance between floating and fixed-interest rate borrowings and maintain a well-diversified maturity
profile.
For the purpose of acquiring one new property associated with ancillary costs and expenses, MEL
borrowed long-term loans of 3,000 million yen on September 2, 2019. Additionally, MEL borrowed shortterm loans of 2,950 million yen and long-term loans of 7,500 million yen on October 9, 2019 including ESG
loan for J-REIT from MUFG Bank, Ltd., for the purpose of acquiring four new properties associated withancillary costs and expenses. Moreover, MEL prepaid aforementioned portion of short-term loan of 900
million yen with the proceed from third-party allotment on November 11, 2019. Moreover, on September
30, 2019, MEL successfully refinanced a three-year duration loan of 4,000 million yen to ten-year duration
ESG loan for J-REIT from MUFG Bank, Ltd.
As of the end of the reporting fiscal period (Feb. 29, 2020), the balance of MEL’s interest-bearing debt was
36,474 million yen and MEL’s loan-to-value ratio (the ratio of aggregate balance of interest-bearing debt to
MEL’s total assets, hereinafter “LTV”) was 30.0% as of the end of the reporting fiscal period.
c. Credit Rating
MEL’s credit rating as of the end of the reporting fiscal period (Feb. 29, 2020) was as follows:
Rating Agency

Rating Object

RatingOutlookJapan Credit Rating Agency, Ltd.

Long-term issuer rating

AA-

Stable(iv) Overview of Financial Results and Distributions
As a result of these investment activities and financings, MEL generated operating revenues of 3,200 million
yen, operating income of 1,749 million yen, ordinary income of 1,633 million yen, net income of 1,632 million
yen and distributions per unit of 5,907 yen per unit for the reporting fiscal period.
MEL’s distributions for the same period were 5,338 yen per unit, which included MEL’s profit distributions
in deductible expenses in accordance with the Section 1 of Article 67-15 of the Act on Special Taxation
Measures Law (a customary practice of J-REITs). The distribution amount was determined to distribute allunappropriated retained earnings for the reporting period, excluding fractions less than one yen. MEL
declared the distribution amount of 1,632,440,470 yen which was the amount equivalent to the maximum
integral multiples of number of investment units issued and outstanding (305,815 investment units) as of thereporting fiscal period.
In addition to the above distributions arising from earnings, MEL intends to regularly distribute cash inexcess of the amount of retained earnings (“Regular Surplus Cash Distributions”) in each fiscal period in
accordance with MEL’s distribution policy set forth in its articles of incorporation (Note 1). In addition, tomaintain the stability of MEL’s distributions per unit in the event that it is expected that an amount of
distributions per unit temporarily decreases by a certain degree due to financing actions or incurrence oflarge repair and maintenance, MEL may decide to make distributions as one-time surplus cash distributions(“One-time Surplus Cash Distributions,” collectively with the Regular Surplus Cash Distributions, “SCD”).
Accordingly, MEL made Regular Surplus Cash Distributions of 174,008,735 yen, equivalent to 30% of MEL’s
depreciation expense for the reporting fiscal period and the total amount of SCD per unit for the reporting
fiscal period was 569 yen.

-3-

Notes:1. However, MEL may decide not to make any surplus cash distributions for a fiscal period based on a consideration offactors such as economic or real estate market conditions and MEL’s, financial condition or the amount of anticipatedprofitability, which includes capital gains arising from property dispositions. In addition, MEL does not plan to pay
surplus cash distributions from the perspective of continuing stable financial management, in case such payment
would cause the Appraisal LTV (Note 2), as defined below, to exceed 60%.
2. Appraisal LTV (%) = A /B (%)
A = Total interest bearing liabilities on the balance sheet for the fiscal period related to the operating period inquestion (excluding tax loan) + Reversal from security deposit reserves (excluding cases where security
deposits are refunded according to leasing agreements with tenants)
B = Total assets on the balance sheet for the fiscal period related to the operating period in question – Book value
after depreciation of real estate held in the fiscal period in question + Total appraisal value of real estate heldin the fiscal period in question – Total cash distributions to be paid in the next operating period – Total surplus
cash distributions to be paid in the next operating period(B) Outlook for the Next Fiscal Period(i) Future Management Policies
MEL aims to build a high-quality portfolio and manage assets in a stable and steady manner, and eventually
to maximize unitholder value, through selective investments in highly competitive logistics facilities thatmeet tenant needs with a focus on “location,” “building features” and “stability,” based on the accumulated
expertise of Mitsubishi Estate Group.
a. External Growth Strategy
MEL takes advantage of the following two unique features in a hybrid manner: pipeline support from MEC
based on the sponsor support agreement and MJIA’s property sourcing capacity based on its capability toassess investment projects. MEL aims to achieve stable external growth by leveraging strengths of both
MEC and MJIA according to market circumstances (hybrid external growth).
b. Internal Growth Strategy
MEL aims to achieve internal growth that maximizes the value of properties and contributes to MEL’s
steady growth by making the most of MEC’s leasing capability based on relationships with a wide variety ofcorporate customers fostered as a comprehensive real estate developer and MJIA’s capability to stably
manage logistics facilities backed by its track record of fund management (hybrid internal growth).
c. Financial Strategy
MEL lays the foundation on long-lasting stable financial management leveraging MEC Group’s expertise infinancial strategy and credibility cultivated over the long term, and controls LTV in consideration of growthpotential. In addition, MEL is committed to efficient cash management in order to achieve improvements inunitholder value.
(ii) Significant Subsequent Events
None(iii) Earnings Forecast
Forecasts for the fiscal period ending August 31, 2020 (from Mar. 1, 2020 to Aug. 31, 2020) are follows.

Operating revenues Operating income Ordinary income

Distributions
Distributions
per unit
Net income
per unit(including(excluding
SCD)
SCD)
Millions of yen
Yen
Yen
1,637
5,947
5,353

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Aug. 31, 2020
3,346
1,715
1,638
(Reference)
Fiscal period ending Aug. 31, 2020: Expected number of investment units outstanding at the end of the period: 305,815 units;
Expected Net income per unit:5,353 yen

-4-

SCD
Yen
594

Forecasts for the fiscal period ending February 28, 2021 (from Sept. 1, 2020 to Feb. 28, 2021) are follows.

Operating revenues Operating income Ordinary income

Distributions
Distributions
per unit
Net income
per unit(including(excluding
SCD)
SCD)
Millions of yen
Yen
Yen
1,616
5,968
5,286

SCD

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Feb. 28, 2021
3,375
1,694
1,617
(Reference)
Fiscal period ending Feb. 28, 2021: Expected number of investment units outstanding at the end of the period: 305,815 units;
Expected Net income per unit: 5,286 yen

The forecast information is calculated based on the assumptions described in “Forecast Assumptions for the
Fiscal Periods Ending Aug. 31, 2020 and Feb. 28, 2021”.

Note: Forecast calculations are based on the assumptions as of the date hereof. Actual operating revenues, operating
income, ordinary income, net income, distributions per unit (excluding surplus cash distributions), and surplus
cash distributions per unit may vary due to changes in MEL’s operational environment and circumstances.
Therefore, these forecasts should not be deemed a commitment or guarantee of the amount of future cash
distributions.

-5-

Yen
682

Forecast Assumptions for the Fiscal Periods Ending Aug. 31, 2020 and Feb. 28, 2021
Items
Accounting
PeriodAssets Under
Management

Operating
Revenues

OperatingExpensesNon-operating
Expenses

Interestbearing Debt

Assumption
 Fiscal period ending Aug. 31, 2020 (8th fiscal period): From Mar. 1, 2020 to Aug. 31, 2020 (184days)
 Fiscal period ending Feb. 28, 2021 (9th fiscal period): From Sept. 1, 2020 to Feb. 28, 2021 (181days)
 It is assumed there will be no material change (including acquisition of new properties anddispositions of existing properties) in the operational status of the 15 properties MEL owned asof Apr. 17, 2020, up until Feb. 28, 2021.
 The actual results may change due to the acquisition of new properties or the disposition ofexisting properties, etc.
 Operating rental revenues take into account factors such as market trends and thecompetitiveness, etc. of each property based on operating results held by the AssetManagement Company.
 It is assumed tenants will pay rents without delinquency or withholding.
 The forecasts of operating revenues are made on the assumption that there will be no profit orloss from sale of real estate.
 Main items regarding operating expenses are as follows:(Millions of yen)
Fiscal Period Ending
Fiscal Period Ending
Aug. 31, 2020Feb. 28, 2021
Total Operating Rental Expenses
1,203
1,266
Facility Management Fee
84
85
Property Management Fee
19
19
Utilities Cost
109
114
Repair and Maintenance Expenses
33
61
Property Taxes
314
314
Depreciation
605
613
Total General and Administrative Expenses
428
414
Asset Management Fee
305
292
Sponsor Support Fee
57
56
 Of operating rental expenses, which is the main operating expense, expenses except
depreciation are calculated by taking into account various factors based on historical data.
 Operating rental income (excluding profit from sale of real estate) after deducting operating
rental expenses (including depreciation) is assumed to be 2,143 million yen and 2,109 million
yen for the fiscal periods ending Aug. 31, 2020 and Feb. 28, 2021 and, respectively.
 For building repair expenses, the amount assumed to be necessary for each property is based on
the repair and maintenance plans of the Asset Management Company. However, repair
expenses may differ substantially from the anticipated amount due to unexpected factors.
 For the fiscal period ending Aug. 31, 2020, it is assumed that 77 million yen will be incurred as
non-operating expenses, which includes 71 million yen for interest expenses and other debtrelated costs, 6 million yen as amortization of organization expenses.
 For the fiscal period ending Feb. 28, 2021, it is assumed that 76 million yen will be incurred as
non-operating expenses, which includes 70 million yen for interest expenses and other debtrelated costs and 6 million yen as amortization of organization expenses.
 The balance of MEL’s interest-bearing debt on an accounting basis as of today is 36,474 millionyen.
 It is assumed that, MEL will repay the short-term debt of 1,100 million yen obtained on Oct. 9,
2019 using the proceeds of tax refund during the fiscal period ending Aug. 31, 2020.
 It is assumed that MEL will fully refinance 950 million yen of short-term loan that is due on Oct. 9,
2020.
 As a result, the amount of interest-bearing debt at the end of the fiscal periods ending Aug. 31,2020 and Feb. 28, 2021 is estimated to be 35,374 million yen for both fiscal periods,
respectively.
 LTV at the end of the fiscal periods ending Aug. 31, 2020 and Feb. 28, 2021 is estimated to be-6-

Investment
Units

Distributions
Per Unit(excluding
surplus cash
distributions)Surplus CashDistributions
Per Unit

29.4% and 29.4%, respectively. For LTV calculation, please refer to the following formula. The
ratios are rounded to the nearest tenth:
LTV (%) = interest-bearing debt / total assets × 100 (%)
 It is assumed that the number of investment units currently issued and outstanding will not change
up until Feb. 28, 2021. Currently, there are 305,815 units issued and outstanding.
 Distributions per unit (excluding surplus cash distributions) and surplus cash distributions per unit
for the fiscal periods ending Aug. 31, 2020 and Feb. 28, 2021 are calculated based on 305,815
investment units, which is the total number of investment units expected to be issued andoutstanding at the end of the fiscal periods ending Aug. 31, 2020 and Feb. 28, 2021.
 Distributions per unit (excluding surplus cash distributions) are calculated based on the premiseof the distribution policy in the Articles of Incorporation of MEL.
 Distributions per unit (excluding surplus cash distributions) may change due to various factors
including any additional acquisitions or dispositions of properties, changes in rent revenues
attributable to tenant moves, changes in the property management environment including
unexpected repair etc.
 Surplus cash distributions per unit are calculated based on the assumption that the cash
distributions will be distributed in accordance with the fund distribution policy of the Articles ofIncorporation of MEL. It is assumed that the surplus cash distributions (on an ongoing basis) in
the fiscal period ending Aug. 31, 2020 will be 181 million yen, assuming that an amountequivalent to 30% of depreciation of the period will be distributed. For the fiscal period ending
Feb. 28, 2021, the amount of distributions per unit (excluding surplus cash distributions) is
expected to temporarily decrease due to a temporary decline in operating rental revenues. It istherefore assumed that 184 million yen as ongoing surplus cash distributions (an amountequivalent to 30.0% of depreciation of the period) and 24 million yen as surplus cash distributions
on a one-time basis (an amount equivalent to 4.0% of depreciation of the period) will be
distributed for the purpose of equalizing the amount of distributions per unit (including surplus
cash distributions).
 The amount of depreciation expenses may change depending on the amount of total assets
under management, ancillary costs, capital expenditure, the allocation method of purchaseprices for each asset and depreciable life, etc. Surplus cash distributions, which will be based on
the amount of depreciation expenses, may change accordingly.
 There may be cases where MEL implements distribution of cash in surplus of the distributableamount to investors on the basis of financial statements related to cash distribution approved
under the Act on Investment Trusts and Investment Corporations (Act No. 198 of June 4, 1951, as
amended) if the board of directors of MEL deems such distribution to be appropriate (1) in lightof the economic environment, real estate market, lease market or other trends; (2) when theamount of income fails to meet the amount equivalent to 90% of distributable income; (3) when
the distribution amount fails to meet the requirements for the Special Provisions for Taxation on
Investment Corporations; or (4) in other ways to maximize the interest of investors. When MEL
implements distribution of cash in surplus of the distributable amount, it limits the amount to thetotal of the amount of income for the operating period in question and the amount stipulated
under laws and ordinances (inclusive of the rules of the Investment Trusts Association, Japan).
 For the time being, MEL intends to target a level of surplus cash distributions on an ongoingbasis at an amount equivalent to approximately 30% of the depreciation expense for the
relevant fiscal period. Furthermore, to maintain the stability of MEL’s distributions per unit in
the event that an amount of distributions per unit temporarily decreases due to a series offinancing actions such as the issuance of new investment units (including investment unit thirdparty allotment) or large scale repair and maintenance, which may result in a temporary dilutionof investment units or incurrence of large expenses, MEL may make distributions as one-time
surplus cash distributions. However, MEL may decide not to make any surplus cash distributions
for a fiscal period based on a consideration of factors such as economic or real estate market
conditions and MEL’s, financial condition or the amount of anticipated profitability, which
includes capital gains arising from property dispositions.
 In addition, in the event that MEL needs to allocate its cash to emergency capital expenditures forunexpected damages on MEL’s assets, etc., surplus cash distributions per unit may be reduced.
MEL does not plan to pay surplus cash distributions from the perspective of continuing stablefinancial management, in case such payment would cause the Appraisal LTV (Note), as defined
below, to exceed 60%.

-7-

Others(Note) Appraisal LTV (%) = A /B (%)
A = Total interest bearing liabilities on the balance sheet for the fiscal period related to theoperating period in question (excluding tax loan) + Reversal from security deposit reserves(excluding cases where security deposits are refunded according to leasing agreements withtenants)
B = Total assets on the balance sheet for the fiscal period related to the operating period inquestion – Book value after depreciation of real estate held in the fiscal period in question +Total appraisal value of real estate held in the fiscal period in question – Total cash
distributions to be paid in the next operating period – Total surplus cash distributions to be
paid in the next operating period
 It is assumed that no any revision that will have an impact on the forecast information above will
be made with regard to the laws and regulations, tax system, accounting standards, listing rulesof the Tokyo Stock Exchange and rules of the Investment Trusts Association, Japan, etc.
 It is assumed that no unexpected material change will arise in overall economic trends and realestate market conditions, etc.

2.

Risk Factors
No significant changes have occurred to the risk factors since the most recent Securities Report (filed on Nov. 28,2019); therefore, their descriptions are not stated here.

-8-3. Financial Statements(1) Balance Sheet
Thousands of yen
As ofAugust 31, 2019ASSETS
Current assets:
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets
Fixed assets:
Property and equipment
Buildings in trust
Less: accumulated depreciation*1

Buildings in trust, net

February 29, 2020

2,627,266
3,196,426
22,102
10,300753

3,003,699
4,283,495
21,44815,967
1,005,408
1,010

5,856,848

8,331,030

37,535,830(1,839,363)*1

35,696,466

Structures in trust
Less: accumulated depreciation*1

Structures in trust, net
Machinery and equipment in trust
Less: accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Less: accumulated depreciation
Tools, furniture and fixtures in trust, net

1,286,857(48,050)

48,149,573(2,402,658)
45,746,915*1

1,759,218(64,520)

1,238,807

1,694,698

7,372
(51)

26,039
(599)

7,320

25,440

4,806
(252)

5,697
(676)

4,554

5,020

Land in trust

45,603,368

65,551,550

Total property and equipment

82,550,517

113,023,624

Intangible assets
Software
Other intangible assets

5,835
791

4,885
741

Total intangible assets

6,626

5,626

13
11,48410,00016
38,695
10,000Investments and other assets
Deferred tax assets
Long-term prepaid expenses
Security deposit
Total investments and other assets
Total fixed assets
Deferred assets:
Organization expenses
Total deferred assets
Total assets-9-21,49848,712

82,578,642

113,077,964

22,17522,175

16,127
16,12788,457,666

121,425,122

Thousands of yen
As ofAugust 31, 2019
LIABILITIESCurrent liabilities:
Operating accounts payable
Short-term loans payable
Long-term loans payable due within one year
Accounts payable
Distributions payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities

February 29, 2020

97,5234,000,000
11,536
6,549

89,8912,050,000
9,754
6,394

286,273881
138,971405,806-

355,054944
558,49216

4,947,542

3,070,548

19,924,000
1,541,562

34,424,000
2,129,916

21,465,562

36,553,916

26,413,105

39,624,465

61,262,651(430,007)
60,832,644

80,744,051(576,021)
80,168,030

1,211,916

1,632,627

1,211,916

1,632,627

NET ASSETS
Unitholders’ equity
Unitholders’ capital
Unitholders’ capital, gross
Deduction from unitholders’ capital
Unitholders’ capital, net
SurplusRetained earnings
Total surplus
Total unitholders’ equity

62,044,560

Total net assets*2

Total liabilities and net assets

62,044,560
88,457,666-10-

81,800,657*281,800,657
121,425,122

(2) Statement of Income and Retained Earnings
Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2019 toSept. 1, 2019 toAug. 31, 2019Feb. 29, 2020
Operating revenues:
Operating rental revenues
Other rental revenues
Total operating revenues
Operating expenses:
Expenses related to property rental business
Asset management fee
Asset custody fee
Administrative service fee
Directors’ compensation
Commission paid
Other operating expenses
Total operating expenses
Operating income
Non-operating income:Interest income
Interest on refund
Insurance income
Refund of property taxes
Total non-operating income
Non-operating expenses:
Interest expenses
Borrowing related expenses
Amortization of organization expenses
Amortization of investment unit issuance
expensesLosses due to disaster
Reduction entry of tangible fixed assets
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

-11-

*1
*1

2,399,157
131,2292,530,386*1*1

3,046,460
154,419
3,200,880*1

959,140
209,632850
19,2782,400
57,01428,147
1,276,463
1,253,922*1

1,076,349
251,817
1,099
18,6242,400
66,301
34,562
1,451,155
1,749,725

25
788
41,561
12,88055,25533
15,442
5,279
20,75549,662
8,915
6,047

65,512
3,055
6,047

-

47,254

1,075
30,72596,427
1,212,751
1,212,751
885
(2)
883
1,211,868
47
1,211,916

11,885
3,200
136,956
1,633,525
1,633,525
949
(3)
946
1,632,579
48
1,632,627

(3) Statement of Changes in Net Assets
The Previous Period (from Mar. 1, 2019 to Aug. 31, 2019)
Thousands of yen
Unitholders' equity
Unitholders' capital
Surplus
Deduction of
UnappropriatedUnitholders’
Unitholders’
Totalunitholders’retained
capital, grosscapital, net
surpluscapitalearnings
Balance as ofMar. 1, 2019
Change during
the period
Distributions inexcess ofretainedearnings
Distributions ofretainedearnings

Total net
assets61,262,651(250,808)

61,011,843

1,170,864

1,170,864

62,182,708

62,182,708-(179,199)(179,199)--(179,199)(179,199)---(1,170,816) (1,170,816) (1,170,816)(1,170,816)

-

-

-

1,211,868

1,211,868

1,211,868

1,211,868-(179,199)(179,199)

41,05141,051(138,147)(138,147)*1 61,262,651(430,007)

60,832,644

1,211,916

1,211,916

62,044,560

62,044,560

Net income
Total change
during theperiodBalance as ofAug. 31, 2019

Total
unitholders'equityThe Reporting Period (from Sept. 1, 2019 to Feb. 29, 2020)
Thousands of yen
Unitholders' equity
Unitholders' capital

Balance as of
Sept. 1, 2019
Change during
the period
Issuance of
newinvestments
distributions
in excess ofretainedearnings
Surplus cash
distributions
Net income
Total change
during theperiodBalance as ofFeb. 29, 2020

Surplus

Total net
assetsTotal
surplusTotal
unitholders'equity1,211,916

1,211,916

62,044,560

62,044,560

19,481,400--

19,481,400

19,481,400(146,014)(146,014)--(146,014)(146,014)---(1,211,867)(1,211,867)(1,211,867)(1,211,867)

-

-

-

1,632,579

1,632,579

1,632,579

1,632,579

19,481,400(146,014)

19,335,385

420,711420,71119,756,096

19,756,096*1 80,744,051(576,021)

80,168,030

1,632,627

1,632,627

81,800,657

81,800,657

Unitholders’capital, gross

Deduction ofunitholders’capitalUnitholders’capital, net

Unappropriatedretainedearnings

61,262,651(430,007)

60,832,644

19,481,400

-

-

-12-

(4) Statement of Cash Distribution
Yen
For the fiscal period from
Mar. 1, 2019 toAug. 31, 2019
I. Unappropriated retained earnings
II. Distributions in excess of retained earnings
Deduction from unitholders’ capital
III. Distributions(Distributions per unit)
Of which, distributions of retained earnings(Of which, distributions in retained
earnings per unit)
Of which, distributions in excess ofretained earnings(Of which, distributions in excess ofretained earnings per unit)
IV. Retained earnings carried forward
Calculation method of distribution amountFor the fiscal period from
Sept. 1, 2019 toFeb. 29, 2020

1,211,916,552

1,632,627,605

146,014,110
1,357,882,060(5,524)
1,211,867,950

174,008,735
1,806,449,205(5,907)
1,632,440,470(4,930)(5,338)146,014,110

174,008,735

(594)

(569)

48,602

187,135

Pursuant to the “Policy on theDistribution of Funds” as defined in

Pursuant to the “Policy on the Distributionof Funds” as defined in Article 35,

Article 35, Paragraph 1 of the Articles ofIncorporation,theamountofdistributions shall be the amount which
does not exceed the amount of profits
but exceeds 90% of the distributableprofit as defined in Article 67-15 of theSpecial Taxation Measures Act. Based on
the policy, MEL declared distribution

Paragraph 1 of the Articles ofIncorporation,theamountofdistributions shall be the amount which
does not exceed the amount of profits but
exceeds 90% of the distributable profit as
defined in Article 67-15 of the Special
Taxation Measures Act. Based on thepolicy, MEL declared distribution amountamount of 1,211,867,950 yen. This
amount was equivalent to the maximum
integral multiples of number ofinvestment units issued and outstandingof 1,632,440,470 yen. This amount was
equivalent to the maximum integral
multiples of number of investment units
issued and outstanding (305,815 units) as(245,815 units) as of the end of fiscal
period. Based on the distribution policy
as defined in Article 35, Paragraph 2 of
the Articles of Incorporation, MEL shallof the end of fiscal period. Based on the
distribution policy as defined in Article 35,
Paragraph 2 of the Articles ofIncorporation, MEL shall make Surplus

make Surplus Cash Distributions (SCD),
defined as distributions in excess ofretained earnings, as a return ofunitholders’ capital, each fiscal period on

Cash Distributions (SCD), defined as
distributions in excess of retained
earnings, as a return of unitholders’capital, each fiscal period on a continuous

a continuous basis. Accordingly, MEL
declared SCD of 146,014,110 yen as areturn of unitholders’ capital, which was
the amount equivalent to approximately

basis. Accordingly, MEL declared SCD of
174,008,735 yen as a return ofunitholders’ capital, which was theamount equivalent to approximately 30%

30% of depreciation expense.
of depreciation expense.
Note: MEL is permitted to distribute cash in excess of the amount of retained earnings if the amount of the accounting income issmaller than 90% of its distributable retained earnings on a tax basis to the extent that such distribution amount does notexceed the amount of MEL’s depreciation for the same fiscal period, and if MEL determines that such excess distribution
amount is appropriate.

-13-(5) Statement of Cash Flows
Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2019 toSept. 1, 2019 toAug. 31, 2019Feb. 29, 2020
Cash flows from operating activities:
Income before income taxes
Depreciation
Amortization of investment unit issuanceInterest income
Interest expenses
Insurance income
Reduction entry of tangible fixed assets
Losses due to disaster
Decrease (Increase) in operating accounts receivable
Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid expenses
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accounts payable
Increase (Decrease) in accrued expenses
Increase (Decrease) in consumption taxes payable
Increase (Decrease) in advances received
OthersSubtotalInterest received
Interest paid
Insurance income due to disaster
Payments due to disaster
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchases of property and equipment in trust
Proceeds from tenant leasehold and security deposits intrust
Repayments from tenant leasehold and security deposits
in trust
Net cash provided by investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of new investment units
Payment of distributions of retained earnings
Payment of distributions in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period(6) Notes Concerning Going Concerns Assumption
Not applicable-14-

1,212,751
488,054(25)
49,662(41,561)
30,725
1,075(3,427)
312,168
10,337
2,676(26,588)
4,461
21,024
138,971(1,639)5,294
2,203,961
25(48,861)
41,561(1,075)(841)
2,194,769

1,633,525
581,736
47,254(33)
65,512(15,442)
3,200
11,885653(1,005,408)(5,667)(27,211)(10,476)(1,782)
66,326(138,971)
152,685
5,806
1,363,593
33(63,058)
15,442(2,249)(886)
1,312,875(76,924)(31,063,835)

16,923615,973(4,637)(27,619)(64,637)(30,475,481)(1,169,608)(178,842)(1,348,450)
781,6815,042,011*1 5,823,693

2,950,000(900,000)
14,500,000(4,000,000)
19,434,145(1,212,050)(145,986)
30,626,108
1,463,502
5,823,693*1 7,287,195

(7) Notes Concerning Significant Accounting Policies
1. Method of depreciation of non-current
assets(1) Property and equipment
Property and equipment are stated at cost. Depreciation of property andequipment, including property and equipment in trust, is calculated by thestraight-line method over the estimated useful lives as follows:
Buildings
2-63 years
Structures
10-58 years
Machinery and equipment
12 years
Tools, furniture and fixtures 4-10 years(2) Intangible assets
Intangible assets are stated at cost. Amortization of intangible assets,
including intangible assets in trust, is calculated by the straight-line method
over the estimated useful lives.
(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.

2. Accounting method of deferred charges(1) Organization Expenses
All organization expenses are amortized over five years using straight-line
method.
(2) Investment unit issuance expenses
The full amount of investment unit issuance expenses is recorded as expenseat the time of expenditure.

3. Revenue and expense recognition

4. Cash and cash equivalents as stated in theStatement of Cash Flows

5. Other significant matters which constitutethe basis for preparation of financial
statements

Accounting treatment of property taxes and other taxes
With respect to property taxes, city planning taxes and depreciable asset
taxes, of the tax amount assessed and determined, the amount corresponding
to the relevant fiscal period is accounted for as rental expenses.
Of the amounts paid for the acquisitions of real estate properties orbeneficiary right in trust of real estate, the amount equivalent to property taxes
is capitalized as part of the acquisition cost of the relevant property instead ofbeing charged as an expense.
Cash and cash equivalents consist of cash on hand and cash in trust, floating
deposits, deposits in trust and short-term investments that are very liquid andrealizable with a maturity of three months or less when purchased and that are
subject to insignificant risks of changes in value.
(1) Accounting treatment of trust beneficiary interests of real estate
As to trust beneficiary interests of real estate, all accounts of assets andliabilities within assets in trust, as well as all income generated and expenses
incurred from assets in trust, are recorded in the relevant balance sheets andincome statement accounts. Of which, the following significant trust assets areshown separately on the balance sheet.
(a) Cash and deposits in trust(b) Buildings in trust, structures in trust, machinery and equipment in trust,
tools in trust, furniture and fixtures and land in trust(c) Tenant leasehold and security deposits in trust(2) Accounting treatment of consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusiveof consumption taxes.

-15-(8) Notes Concerning Financial Statements(Notes Concerning Balance Sheet)*1 Reduction entry of tangible fixed assets
Thousands of yen
As ofAug. 31, 2019
Buildings in trust
Structures in trust

Feb. 29, 2020
28,0207,008

31,2207,008*2 Minimum net assets as required by Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
Thousands of yen
As ofAug. 31, 2019Feb. 29, 2020
50,00050,000(Notes Concerning Statement of Income and Retained Earnings)*1 Operating income from property leasing is as follows:
Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2019 toSept. 1, 2019 toAug. 31, 2019Feb. 29, 2020
A. Property-related revenues
Operating rental revenues
Rental revenues
Common area charges
Total
Other rental revenues
Received utilities cost
Others
Total
Total property-related revenues
B. Property-related expenses
Rental expenses
Facility management fee
Property and other taxes
Insurance
Repair and maintenanceUtilities cost
Depreciation
Custodian fee
Others2,294,240
104,916
2,399,157

2,910,265
136,194
3,046,460

87,52343,705
131,2292,530,386

104,384
50,035
154,419
3,200,880

85,207
216,031
4,026
49,452
92,165
487,054
1,682
23,519135,358
215,768
5,435
21,59699,216
580,736
2,301
15,935959,140

1,076,349

1,571,245

2,124,531

Total rental expenses
C. Operating income from property leasing (A-B)(Notes Concerning Statement of Unitholders’ Equity)
For the fiscal period from
Mar. 1, 2019 toAug. 31, 2019

For the fiscal period from
Sept. 1, 2019 toFeb. 29, 2020

Number of investment units authorized

10,000,000 units

10,000,000 units

Number of investment units issued andoutstanding

245,815 units

305,815 units-16-

(Notes Concerning Statement of Cash Flow)*1. Relationship between cash and cash equivalents in statement of cash flows and accounts and amounts in theaccompanying balance sheet
Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2019 toSept. 1, 2019 toAug. 31, 2019Feb. 29, 2020
Cash and deposits

2,627,266

3,003,699

Cash and deposits in trust

3,196,426

4,283,495

Cash and cash equivalents

5,823,693

7,287,195(Notes Concerning to Lease Contracts)
Operating lease transactions (as lessor)
Unearned rental revenue
Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2019 toSept. 1, 2019 toAug. 31, 2019Feb. 29, 2020
Due within one year

4,913,567

6,432,330

Due after one year

18,800,951

38,098,308

Total

23,714,518

44,530,639(Notes Concerning Financial Instruments)
1. Overview(1) Policy for Financial Instruments
MEL procures funds for the acquisition of assets and repayment of debt mainly through bank loans or theissuance of new investment units.
In borrowing funds, MEL takes consideration in interest rate trend, debt cost, floating or fixed interest rate,borrowing period and repayment date.
In the case of borrowing, the lender shall be limited to qualified institutional investors as stipulated in Article
2, Paragraph 3, Item of the Financial Instruments and Exchange Act of Japan (limited to institutional investorsprescribed in Article 67-15 of the Taxation Special Measures Law), with in principle no collateral / no guarantee.
However, MEL may provide assets as collateral in consideration of financing environment and economic
conditions. In addition, in order to flexibly procure the necessary funds related to MEL's operation such as
property acquisition and repayment debt financing, MEL may enter into the overdraft agreements,
commitment line agreements or conclude the reserved agreements.
MEL generally invests surplus funds in bank deposits, considering the safety and liquidity of the investment
and also reflecting the market environment and cash positions of MEL itself. MEL enters into derivativetransactions solely for the purposes of reducing risks of rising interest rates related to financings and othertypes of risks. MEL does not use derivative transactions for speculative purposes. Not applicable for thereporting period.
(2) Type of Financial Instruments, related Risks and Risk Management System
Bank loans are mainly made to procure funds for acquisition of properties, repayment of bank loans.
Although MEL is exposed to liquidity risks upon repayment, by diversifying the maturities and lending
institutions, securing liquidity of cash in hand and managing such liquidity risks by preparing and monitoring
cash flows projection, such risks are maintained under control. In addition, some loans bear floating interest
rates and are exposed to potential risks of rising interest rates. MEL attempts to mitigate such risks on its
operations by maintaining a conservative loan to value ratio and increasing the ratio of long-term fixed interest
rate loans.
The security deposits which MEL has received from the tenants are exposed to liquidity risk due tocancelation of lease agreement before the maturity date. In the case of trust beneficiary interest in real estate,
MEL secures safety by accumulating a portion in the trust account, and in the case of real estate, leasehold
rights of real estate, and superficies, MEL secures safety by accumulating a portion in bank savings account orbank time deposit account. Moreover, MEL ensures safety by accurately tracking the timing of the tenant moveins and outs and anticipating the fund demand utilizing historical data.

-17-

(3) Supplemental Explanation Regarding the Estimated Fair Values of Financial Instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is noquoted market price available, fair value is based on a price that is reasonably estimated. Since various
assumptions and factors are reflected in estimating the fair value, different assumptions and factors could
result in a different value.
2.

Estimated Fair Value of Financial Instruments
The book value, fair value and differences between the values as of Aug. 31, 2019 are as follows: Financial
instruments for which the fair value is extremely difficult to estimate are excluded from the following table (seeNote 2 below).
Thousands of yen
Book value

Fair value

Difference(1) Cash and deposits

2,627,266

2,627,266-(2) Cash and deposits in trust

3,196,426

3,196,426-

5,823,693

5,823,693

-

-

-

-

4,000,000

4,000,000-(5) Long-term loans payable

19,924,000

20,381,283

457,283

Total liabilities

23,924,000

24,381,283

457,283

Total assets(3) Short-term loans payable(4) Long-term loans payable due within
one year

The book value, fair value and differences between the values as of Feb. 29, 2020 are as follows: Financial
instruments for which the fair value is extremely difficult to estimate are excluded from the following table (seeNote 2 below).
Thousands of yen
Book value

Fair value

Difference(1) Cash and deposits

3,003,699

3,003,699-(2) Cash and deposits in trust

4,283,495

4,283,495-

7,287,195

7,287,195-

2,050,000

2,050,000

-

-

-

-

34,424,000

34,909,833

485,833

Total liabilities
36,474,000(Note 1) Methods to estimate fair values of financial instruments

36,959,833

485,833

Total assets(3) Short-term loans payable(4) Long-term loans payable due within
one year(5) Long-term loans payable(1) Cash and deposits and (2) Cash and deposits in trust (3) Short-term loans payable
Due to the short maturities, the book value of these instruments is deemed a reasonable approximation of
the fair value, and therefore, the book value is used as the fair value.
(4) Long-term loans payable due within one year (5) Long-term loans payable
The fair value of long-term loans payable is determined based on the present value of contractual cash flows
which would be applicable to new loans payable under the same terms. In terms of floating interest rate loans
payable, since it reflects the market interest rate in a short period of time, the fair value is approximately equal
to the book value. Thus, the book value is used.
(Note 2) Financial instruments for which the fair value is extremely difficult to estimate
Thousands of yen
As ofAug. 31, 2019
Tenant leasehold and security deposits in trust *1,541,562-18-

Feb. 29, 2020
2,129,916

* Because tenant leasehold and security deposits and tenant leasehold and security deposits in trust have no observable
and available market price and it is impracticable to reasonably estimate their future cash flows, their fair value is notassessed herein.
(Note 3) Redemption schedule for monetary claims after Aug. 31, 2019
Thousands of yen

Cash and deposits
Cash and deposits in trust
Total

As of Aug. 31, 2019
Due after
Due within Due after one Due after two
Due after four Due after five
three to four
one yearto two years to three years
to five years
years
years
2,627,266
3,196,426
5,823,693-

Redemption schedule for monetary claims after Feb. 29, 2020
Thousands of yen

Cash and deposits
Cash and deposits in trust
Total

As of Feb. 29, 2020
Due after
Due within Due after one Due after two
Due after four Due after five
three to four
one yearto two years to three years
to five years
years
years
3,003,699
4,283,495
7,287,195-(Note 4) Repayment schedule for debt after Aug. 31, 2019
Thousands of yen
As of Aug. 31, 2019
Due after
Due within Due after one Due after two
Due after four Due after five
three to four
one yearto two years to three years
to five years
years
years
Long-term loans payable
due within one year
Long-term loans payable
Total

4,000,000

-

-

-

-

-

4,000,000-

2,211,000
2,211,000

3,310,000
3,310,000

3,540,000
3,540,000

10,863,000
10,863,000

Repayment schedule for debt after Feb. 29, 2020
Thousands of yen

Short-term loans payable
Long-term loans payable
Total

As of Feb. 29, 2020
Due after
Due within Due after one Due after two
Due after four Due after five
three to four
one yearto two years to three years
to five years
years
years
2,050,000
2,211,000
3,310,000
6,540,000
3,400,000 18,963,000
2,050,000
2,211,000
3,310,000
6,540,000
3,400,000 18,963,000(Notes Concerning Investment Securities)
For the periods ended Aug. 31, 2019 and Feb. 29, 2020
Not applicable(Notes Concerning Derivative Transactions)
For the periods ended Aug. 31, 2019 and Feb. 29, 2020
Not applicable-19-

(Notes Concerning Retirement Payment)
For the periods ended Aug. 31, 2019 and Feb. 29, 2020
Not applicable(Notes Concerning Deferred Tax Accounting)
1. Primary components of deferred tax assets and deferred tax liabilities
Thousands of yen
As ofAug. 31, 2019
Enterprise tax payable
Subtotal deferred tax assets
Total deferred tax assets
Net deferred tax assets

Feb. 29, 2020
13
13
13
13

16
16
16
16

2. Reconciliations of major items that caused differences between statutory tax rate and effective tax rate after applying
Deferred tax accounting
For the fiscal period ended
Aug. 31, 2019Feb. 29, 2020
Statutory tax rate
31.51%
31.51%
Adjustments:
Deductible cash distributions(31.49%)(31.49%)
Other
0.05%
0.04%
Actual effective income tax rate
0.07%
0.06%

(Notes Concerning Equity Earnings of Affiliate Companies)
For the periods ended Aug. 31, 2019 and Feb. 29, 2020
Not applicable(Notes Concerning Related Party Transaction)
1. Transactions with Account Balances with the Parent company and Major Unit Holders
For the periods from Mar. 1, 2019, to Aug. 31, 2019, and from Sept. 1, 2019, to Feb. 29, 2020
Not applicable
2.

Transactions and Account Balances with Affiliates
For the periods from Mar. 1, 2019, to Aug. 31, 2019, and from Sept. 1, 2019, to Feb. 29, 2020
Not applicable

3.

Transactions and Account Balances with Companies under Common Control
For the periods from Mar. 1, 2019, to Aug. 31, 2019, and from Sept. 1, 2019, to Feb. 29, 2020
Not applicable

4.

Transaction and Account Balances with Board of Directors and Individual Unitholders
For the periods from Mar. 1, 2019, to Aug. 31, 2019, and from Sept. 1, 2019, to Feb. 29, 2020
Not applicable(Notes Concerning Asset Retirement Obligations)
For the periods ended Aug. 31, 2019 and Feb. 29, 2020
Not applicable-20-

(Notes Concerning Rental Properties)
MEL owns logistics facilities for leasing for the purpose of earning rental income. The book value, changes during
the reporting fiscal period and fair value of the properties are as follows:
Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2019 toSept. 1, 2019 toAug. 31, 2019Feb. 29, 2020
Book value (Note 1)
Balance at the beginning of the period

83,007,836

82,550,517

Changes during the period (Note 2)(457,319)

30,473,107

Balance at the end of the period

82,550,517

113,023,624

Fair value at the end of the period (Note 3)
89,375,000
122,500,000(Note 1) Book value is calculated by deducting accumulated depreciation from acquisition cost.
(Note 2) The increase for the fiscal period ended Aug. 31, 2019 was primarily a result of the recognition of CAPEX which amounted
60,460 thousand yen. The decrease was primarily a result of the recognition of depreciation, which amounted to 487,054
thousand yen. The increase for the fiscal period ended Feb. 29, 2020 was primarily a result of acquiring five newproperties for a total of 31,015,705 thousand yen. The decrease was primarily a result of the recognition of depreciation,
which amounted to 580,736 thousand yen.
(Note 3) The fair value at the end of the period is determined based on appraised value provided by independent real estateappraisers.

Income and loss in connection with investment and rental properties are disclosed in “Notes Concerning
Statements of Income and Retained Earnings.”(Notes Concerning Segment and Related Information)
1. Segment Information
Disclosure is omitted because the real estate leasing business is MEL’s sole business and it has no reportablesegment subject to disclosure.
2. Related Information
For the period from Mar. 1, 2019, to Aug. 31, 2019(1) Information by Products and Services
Description of this information is not stated herein as operating revenues generated from external customers
for a single product and service have exceeded 90% of total operating revenues on the statement of income andretained earnings.
(2) Information by Geographic Region(a) Operating Revenues
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating
revenues on the statement of income and retained earnings.
(b) Property and Equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of
the amount of property and equipment on the balance sheet.
(3) Information by Each Major Customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating
revenues on the statement of income and retained earnings.
For the period from Sept. 1, 2019, to Feb. 29, 2020
(1) Information by Products and Services
Description of this information is not stated herein as operating revenues generated from external customers
for a single product and service have exceeded 90 % of total operating revenues on the statement of income andretained earnings.
(2) Information by Geographic Region(a) Operating Revenues
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating-21-

revenues on the statement of income and retained earnings.
(b) Property and Equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of
the amount of property and equipment on the balance sheet.
(3) Information by Each Major Customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating
revenues on the statement of income and retained earnings.
(Notes Concerning Per Unit Information)
Yen
For the fiscal period from
Mar. 1, 2019 toAug. 31, 2019
Net assets per unit

For the fiscal period from
Sept. 1, 2019 toFeb. 29, 2020

252,403

267,484

Net income per unit
4,930
5,563
(Note 1) Net income per unit is calculated by dividing net income for the period by the weighted average number of investment
units issued and outstanding based on the number of days during the applicable reporting periods. Diluted net income
per unit is not stated as there is no dilutive equity issued and outstanding.
(Note 2) The basis for calculation of the profit per unit is as follows:
For the fiscal period from
For the fiscal period from
Mar. 1, 2019 toSept. 1, 2019 toAug. 31, 2019Feb. 29, 2020
Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common unitholders(Thousands of yen)
Average number of investment units during theperiod (Unit)(Notes Concerning Significant Subsequent Events)
None

-22-

1,211,868

1,632,579--

1,211,868

1,632,579

245,815

293,461(9) Change in Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital from the date ofestablishment to the end of Feb. 29, 2020 are as follows:
Unitholders’ Capital(Thousands of yen)(Note 1)
Increase /Total
Decrease

Number of Investment Units
Issued and Outstanding (Units)
Increase /Total
Decrease

Date

Type of Issue

July 14, 2016

Private placement
for incorporation

200,000

200,000

2,000

2,000

(Note 2)

Sept. 28, 2016

Private offering

1,800,000

2,000,000

18,00020,000(Note 3)June 15, 2017

Reverse split ofinvestment units-

2,000,000(12,000)

8,000(Note 4)

Sept. 13, 2017

Public offering

49,678,200

51,678,200

198,000

206,000(Note 5)Oct. 10, 2017

Public offering

2,007,200

53,685,400

8,000

214,000(Note 6)

May 21, 2018

Surplus cash
distribution(return on capital)(120,910)

53,564,490-

214,000(Note 7)

Sept. 10, 2018

Public offering

7,216,429

60,780,919

30,300244,300(Note 8)Oct. 11, 2018

Public offering

360,821

61,141,741

1,515

245,815(Note 9)(129,898)

61,011,843-

245,815(Note 10)

(179,199)

60,832,644-

245,815(Note 11)18,556,033
925,366

79,388,677
80,314,044

57,1502,850

302,965
305,815(Note 12)(Note 13)(146,014)

80,168,030-

305,815(Note 14)

Nov. 19, 2018

May 21, 2019
Oct. 7, 2019Nov. 7, 2019Nov. 18, 2019

Surplus cash
distribution(return on capital)
Surplus cash
distribution(return on capital)
Public offering
Public offering
Surplus cash
distribution(return on capital)

Note

Notes:
1. “Unitholders’ capital” is the amount after deducting the “Deduction from unitholders’ capital.”
2. Investment units were issued at an issue price of 100,000 yen per unit upon the incorporation of MEL.
3. Investment units were issued at an issue price of 100,000 yen per unit.
4. A 0.4-for-1 reverse split of investment units was conducted, with June 15, 2017 as the effective date.
5. New investment units were issued through public offering at an issue price of 260,000 yen (paid-in amount of
250,900 yen) per unit.
6. New investment units were issued through third-party allotment at a paid-in amount of 250,900 yen per unit.
7. Cash distributions for the fiscal period ended Feb. 2018 in the amount of 565 yen per unit as return of capital. It
was decided on Apr. 13, 2018 and started payment on May 21, 2018.
8. New investment units were issued through public offering at an issue price of 246,772 yen (paid-in amount of
238,166 yen) per unit.
9. New investment units were issued through third-party allotment at a paid-in amount of 238,166 yen per unit.
10. Cash distributions for the fiscal period ended Aug. 2018 in the amount of 607 yen per unit as return of capital. It
was decided on Oct. 15, 2018 and started payment on Nov. 19, 2018.
11. Cash distributions for the fiscal period ended Feb. 2019 in the amount of 729 yen per unit as return of capital. It
was decided on Apr. 15, 2019 and started payment on May 21, 2019.
12. New investment units were issued through public offering at an issue price of 335,887 yen (paid-in amount of
324,690 yen) per unit.
13. New investment units were issued through third-party allotment at a paid-in amount of 324,690 yen per unit.
14. Cash distributions for the fiscal period ended Aug. 2019 in the amount of 594 yen per unit as return of capital. It
was decided on Oct. 17, 2019 and started payment on Nov. 18, 2019.

-23-

4. Reference Information(1) Composition of MEL’s Assets
Type of assets

Beneficiary right intrust

Category

RegionTokyo metropolitan area (Note 2)
Osaka metropolitan area (Note 3)
Nagoya metropolitan area (Note 4)
OthersOthers
Total
Deposit and other assets
Total assets (Note 5)

Logistics
facilities

Seventh fiscal period(As of Feb. 29, 2020)
Retained amount
Ratio of total assets(Millions of yen)(%)
(Note 1)
63,75652.5
18,23315.0
13,776
11.3
11,590
9.5
5,666
4.7
113,023
93.1
8,401
6.9
121,425
100.0

Seventh fiscal period(As of Feb. 29, 2020)
Amount(Millions of yen)

Ratio of total asset(%)

Total liabilities (Note 5)(Note 6)
39,624
32.6
Total net assets (Note 5)
81,80067.4
Total assets (Note 5)
121,425
100.0
Notes:
1.
The retained amount is the amount allocated in the balance sheet (the book value after depreciation) at the end of thereporting fiscal period (as of Feb. 29, 2020).
2.
Tokyo metropolitan area refers to Tokyo, Kanagawa, Chiba, Saitama and Ibaraki prefectures.
3.
Osaka metropolitan area refers to Osaka, Hyogo, Kyoto, Nara and Shiga prefectures.
4.
Nagoya metropolitan area refers to Aichi, Mie, and Gifu prefectures.
5.
Total liabilities, total net assets and total assets is the amount allocated in the balance sheet at the end of the reporting fiscal
period (as of Feb. 29, 2020).
6.
Total liabilities include the tenant leasehold and security deposits.

(2) Investment Assets(A) Major Components of Investment Securities
Not applicable(B) Investment Properties
Not applicable(C) Other Major Investment Assets
The real estate trust beneficiary interests held by MEL as of the end of Feb. 29, 2020 are as follows.

-24-

(i) Overview of Portfolio
The following summarizes (location, acquisition price, investment ratio, book value, appraisal value, acquisition date)
the real estate or the real estate properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Location

Logicross Fukuoka Hisayama

Hisayama,
Kasuya-gun, Fukuoka

5,770

5.1

5,639

6,150

Sept. 14,2017

Logicross Atsugi

Atsugi, Kanagawa

8,440

7.4

8,450

9,000

Sept. 3,2018

Logicross Kobe Sanda

Kobe, Hyogo

3,900

3.4

3,907

4,140

Sept. 3,
2018

LOGIPORT Sagamihara(Note 5)

Sagamihara,

21,36418.8

21,062

23,300

Sept. 14,2017

LOGIPORT Hashimoto(Note 6)

Sagamihara,
Kanagawa

18,20016.0

17,98519,800

Sept. 14,2017

LOGIPORT Osaka Taisho(Note 7)

Osaka, Osaka

5,682

5.0

5,730

6,020

Funabashi, Chiba

5,400

4.7

5,261

6,560

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

5.8

6,573

7,020

MJ Logipark Kazo 1

Kazo, Saitama

1,272

1.1

1,262

1,400

MJ Logipark Osaka 1

Osaka, Osaka

6,090

5.4

6,011

6,830

MJ Logipark Fukuoka 1

Umi,
Kasuya, Fukuoka

6,130

5.4

5,950

6,440

MJ Logipark Tsuchiura 1

Tsuchiura, Ibaraki

3,133

2.8

3,159

3,420

MJ Logipark Nishinomiya 1

Nishinomiya, Hyogo

2,483

2.2

2,583

2,640

MJ Logipark Kasugai 1

Kasugai, Aichi

13,67012.0

13,776

14,000

MJ Industrial Park Sakai(Land)

Sakai, Osaka

5,600

4.9

5,666

5,780

113,787

100.0

113,023

122,500

Logistics MJ Logipark Funabashi 1
facilities

OthersAcquisition Investment Book value Appraisal value Acquisition
price (Millions ratio (%) (Millions of(Millions ofdateof yen) (Note 1) (Note 2)yen)yen)(Note 3)(Note 4)

Property name

Kanagawa

Total

Oct. 9,2019
Sept. 29,2016
Sept. 14,2017
Sept. 14,2017
Sept. 14,2017
Sept. 14,2017
Sept. 2,2019
Oct. 9,2019
Oct. 9,2019
Oct. 9,2019-

Notes:
1.
“Acquisition price” represents the purchase price of each property or beneficiary right in trust as set forth on the relevantpurchase agreement and does not include expenses such as consumption taxes, and is rounded down to nearest million yen.
2.
“Investment ratio” is calculated by dividing the acquisition price for each property by the total acquisition price and is rounded
to second decimal place. Thus the sum of the figures in total may not add up to the figure in the total column.
3.
"Appraisal value as of the end of the reporting fiscal period” represents the appraisal value as set forth on the relevant study
reports by real estate appraisers as of Feb. 29, 2020. Please refer to the below-mentioned”(iv) Overview of Appraisal Reports”.
4.
“Acquisition date” represents the acquisition date in the relevant sale and purchase agreement.
5.
“Acquisition price” and “Appraisal value” of LOGIPORT Sagamihara is shown with the values corresponding to the beneficiaryinterest ratios (49%).
6.
“Acquisition price” and “Appraisal value” of LOGIPORT Hashimoto is shown with the values corresponding to the beneficiaryinterest ratios (45%).
7.
“Acquisition price” and “Appraisal value” of LOGIPORT Osaka Taisho is shown with the values corresponding to the beneficiaryinterest ratios (20%).

-25-

(ii) Overview of Properties
The following summarizes (land area, total floor area, total leasable area, total leased area, year built) the real estate or
the real estate properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Logistics
Facilities

OthersProperty nameLand area(㎡)(Note 1)

Total floor area Total leasable
Total leased area(㎡) (Note 1) area(㎡) (Note 2)(㎡) (Note 3)

Year built(Note 4)

Logicross Fukuoka Hisayama

18,136.89

36,082.08

34,878.55

34,878.55

Oct. 2014

Logicross Atsugi

14,782.03

29,895.80

29,895.80

29,895.80

Mar. 2017

Logicross Kobe Sanda

20,000.93

12,879.33

12,844.35

12,844.35

Jun. 2017

LOGIPORT Sagamihara (Note 5)

94,197.27

200,252.53(98,123.73)

88,609.64

88,316.94

Aug. 2013

LOGIPORT Hashimoto (Note 6)

67,746.26

145,809.59(65,614.31)

58,487.96

58,436.88

Jan. 2015

LOGIPORT Osaka Taisho(Note 7)55,929.57

117,045.04(23,409.00)

21,376.84

21,356.90

Feb. 2018

MJ Logipark Funabashi 1

7,481.00

18,262.08

18,232.07

18,232.07

Nov. 1989

MJ Logipark Atsugi 1

19,780.93

27,836.15

28,002.44

28,002.44

Jul. 2013

MJ Logipark Kazo 1

7,621.09

7,602.06

7,678.10

7,678.10

Mar. 2006

MJ Logipark Osaka 1

13,028.81

39,157.61

39,082.95

39,082.95

Sept. 2007

MJ Logipark Fukuoka 1

20,297.84

39,797.96

38,143.21

38,143.21

Sept. 2007

MJ Logipark Tsuchiura 1

22,914.37

15,485.00

15,485.00

15,485.00

Oct. 2014

MJ Logipark Nishinomiya 1

23,008.83

13,903.42

13,777.07

13,777.07

Mar. 1991

MJ Logipark Kasugai 1

38,972.99

58,236.48

57,866.98

57,866.98

Jan. 2017

MJ Industrial Park Sakai (Land)87,476.71-

87,476.71

87,476.71-

511,375.52

762,245.13(486,285.01)

551,837.67

551,473.95

Total

-

Notes:
1. “Land area” and “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the mainbuilding and annex. If there is more than one main building, the total floor area is the sum of the total floor area for each mainbuilding.
2. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Feb. 29, 2020, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to thenearest square meter. It does not include the leased area indicated in the lease agreements concerning shops, vending
machines, photovoltaic power generation facilities and parking lots.
3. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Feb. 29, 2020, basedon the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in thelease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
4. “Year built” is the date of construction of the building in the register. If there is more than one main building, the oldest dateshown in the register.
5. “Total leasable area” and “Total leased area” of LOGIPORT Sagamihara is shown with the values corresponding to thebeneficiary interest ratios (49%).
6. “Total leasable area” and “Total leased area” of LOGIPORT Hashimoto is shown with the values corresponding to the beneficiaryinterest ratios (45%).
7. “Total leasable area” and “Total leased area” of LOGIPORT Osaka Taisho is shown with the values corresponding to thebeneficiary interest ratios (20%).

-26-

(iii) Overview of Tenant Agreements
The following summarizes (total leasable area, total leased area, occupancy, number of tenants, name of major tenant,annual rent, security deposit, average lease term and average remaining lease term) the real estate or the real estate
properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Property nameSecurity
Average lease
Annual rent
deposit term / Average
Name of major(Millions of (Millions of remaining leasetenant (Note 5)yen) (Note 6)
yen)term (Years)(Note 7)(Note 8, 9)Not
Not
Mitsubishi Estate
3.6
2
disclosed
disclosed
Co., Ltd.
(0.9)(Note 10)(Note 10)Not
Not
MITAKA SOKO
10.0
1
disclosed
disclosed
Co., Ltd.
(7.1)(Note 10)(Note 10)
Not
Not
Fresh Creator
30.0
1
disclosed
disclosed
Co., Ltd.
(27.3)(Note 10)(Note 10)

NumberTotal leasable Total leased Occupancyofarea (㎡)area (㎡)(%)
tenants(Note 3)(Note 1)
(Note 2)
(Note 4)

Logicross Fukuoka
Hisayama

34,878.55

34,878.55

100.0

Logicross Atsugi

29,895.80

29,895.80

100.0

Logicross Kobe Sanda

12,844.35

12,844.35

100.0

LOGIPORT Sagamihara(Note 11)88,609.64

88,316.94

99.7

18 S･V･D Co., Ltd.

1,274

299

7.2
(3.2)

LOGIPORT Hashimoto(Note 12)58,487.96

58,436.88

99.9

14

KDDI
Corporation

925

226

6.4
(3.0)

LOGIPORT Osaka Taisho(Note 13)

21,376.84

21,356.90

99.9

11

Toshiba Logistics
Corporation

310

74

5.5
(4.2)

MJ Logipark Funabashi 1

18,232.07

18,232.07

100.0

1 Fuji Echo Co., Ltd.

Logistics
Facilities MJ Logipark Atsugi 1

28,002.44

28,002.44

100.0

1

Sun Toshi
Tatemono K.K.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

MJ Logipark Kazo 1

7,678.10

7,678.10

100.0

1Kanda Holdings
Co., Ltd.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

MJ Logipark Osaka 1

39,082.95

39,082.95

100.0

1 Sankyu Inc.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

MJ Logipark Fukuoka 1

38,143.21

38,143.21

100.0

5

Fukuoka Logistics
Systems Corp.

393

178

3.0
(2.0)

MJ Logipark Tsuchiura 1

15,485.00

15,485.00

100.0

1

EntreX
Incorporated

MJ Logipark
Nishinomiya 1

13,777.07

13,777.07

100.0

1 F - LINE CO., Ltd

MJ Logipark Kasugai 1

57,866.98

57,866.98

100.0

2

Kimura-Unity Co.,Ltd.

MJ Industrial Park Sakai(Land)

87,476.71

87,476.71

100.0

1

IHI Infrastructure
Systems Co., Ltd

Notdisclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

Total (Average)

551,837.67

551,473.95

99.9

61

－

6,426

2,090

Others20.0(18.4)
10.0
(9.1)
5.1
(3.7)
Not
disclosed(Note 10)
9.7
(6.5)

Notes:
1. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Feb. 29, 2020, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to thenearest square meter. It does not include the leased area indicated in the lease agreements concerning shops, vending
machines, photovoltaic power generation facilities and parking lots.
2. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Feb. 29, 2020, basedon the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in thelease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. “Occupancy” is as of Feb. 29, 2020, calculated by dividing total leased area for each property by the total leasable area. The
total occupancy rate is calculated by dividing the aggregate total leased area for the relevant properties by the aggregate total

-27-

4.

5.
6.

7.

8.
9.

10.
11.
12.
13.

leasable area for the relevant properties. Figures are rounded to the first decimal place.
“Number of tenants” is based on the lease agreements with tenants for each property or property in trust as of Feb. 29, 2020.
However, if one lessee enters into a multiple number of lease agreements for the same property, the total number of tenants
will be calculated on the assumption that such lessee is one party.
“Name of major tenant” is the name of the tenant with the largest leased floor area in the relevant lease agreement for each
property or property in trust as of Feb. 29, 2020
“Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Feb. 29, 2020.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Feb. 29, 2020, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Feb. 2020 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofFeb. 29, 2020 shall not be included.
“Security deposits” represent the sum of the outstanding amounts of leasehold/security deposits (the sum of the outstanding
amounts of leasehold/security deposits if a multiple number of lease agreements have been executed), rounded down to thenearest million yen, indicated in the subject lease agreement as of Feb. 29, 2020. However, if there are different provisions forthe sum of outstanding leasehold/security deposits depending on the time period in each lease agreement for each property or
property in trust, the amount of tenant leasehold/security deposits for Feb. 2020 shown in said lease agreement is indicated.
“Average lease term” is calculated as the weighted average lease term indicated in the relevant lease agreements for each
property or property in trust as of Feb. 29, 2020, by the rent and figures are rounded to the first decimal place.
“Average remaining lease term” is calculated as the weighted average remaining lease term indicated in the relevant leaseagreements for each property or property in trust as of Feb. 29, 2020, by the rent and figures are rounded to the first decimal
place.
We have not obtained permission from the tenant of the properties to disclose the information unstated in this table.
“Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Sagamihara is shown with thevalues corresponding to the beneficiary interest ratios (49%).
“Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Hashimoto is shown with thevalues corresponding to the beneficiary interest ratios (45%).
“Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Osaka Taisho is shown with thevalues corresponding to the beneficiary interest ratios (20%).

-28-

(iv) Overview of Appraisal Report (as of Feb. 29, 2020)

Category

Property name

Logicross Fukuoka
Hisayama

Appraiser

Tanizawa Sogo
Appraisal Co., Ltd.
Tanizawa Sogo
Logicross Atsugi
Appraisal Co., Ltd.
Logicross Kobe
Tanizawa Sogo
Sanda
Appraisal Co., Ltd.
DAIWA REAL ESTATE
LOGIPORTAPPRAISAL
Sagamihara (Note 6)
Corporation
LOGIPORT
Japan Real Estate
Hashimoto (Note 7) Institute
LOGIPORT Osaka
Japan Real Estate
Taisho (Note 8)
Institute
MJ Logipark
Japan Real Estate
Logistics Funabashi 1
Institute
Facilities
MJ Logipark
Japan Real Estate
Atsugi 1
Institute
MJ Logipark
Japan Real Estate
Kazo 1
Institute
MJ Logipark
Tanizawa Sogo
Osaka 1
Appraisal Co., Ltd.
MJ Logipark
Japan Real Estate
Fukuoka 1
Institute
MJ Logipark
Japan Real Estate
Tsuchiura 1
InstituteTanizawa Sogo
MJ Logipark
Appraisal Co., Ltd.
Nishinomiya 1
Tanizawa Sogo
MJ Logipark
Appraisal Co., Ltd.
Kasugai 1
MJ Industrial Park
Japan Real Estate
OthersSakai (Land)
Institute
Total

Return priceIntegrated
Direct capitalization
DCF methodvaluemethodAppraisal
Appraisal
based on Value based
Appraisalvalue
NOI Yield
Value basedcostNOIon direct(Millions of(%)
Directon DCF
Terminal
method capitalization(Note 1)
Discountyen)(Note 2)
capitalization method
capitalization(Millions
methodrate (%)
rate (%)(Millions ofrate (%)
of yen)(Millions of
yen)
yen)
4.7, 4.9
6,150
5,940
6,110
4.8
6,170
5.0
299
5.2
(Note 3)
4.2, 4.3
9,000
9,340
9,070
4.2
8,970
4.4
382
4.5
(Note 4)
4.6,4.7
4,140
3,890
4,150
4.7
4,130
4.9
197
5.1
(Note 5)23,30016,60023,2004.2

23,400

4.0

4.4

992

4.6

19,80015,52520,0704.0

19,485

3.8

4.2

804

4.4

6,020

5,880

6,120

4.2

5,920

4.0

4.4

259

4.6

6,560

3,100

6,590

4.9

6,530

4.1

5.3

352

6.5

7,020

6,530

7,110

4.2

6,920

4.0

4.4

301

4.5

1,400

1,290

1,420

5.0

1,380

4.8

5.2

72

5.7

6,830

5,900

6,840

4.3

6,830

4.2, 4.4(Note 9)

4.5

305

5.0

6,440

4,510

6,490

4.8

6,380

4.6

5.0

325

5.3

3,420

2,920

3,460

4.8

3,380

4.6

5.0

165

5.3

2,640

2,770

2,700

4.8

4.9

140

5.7

14,00013,00014,400

4.5

4.7

658

4.8

5,780

-

5,840

3.7

5,710

3.5

3.8

214

3.8

122,500

97,195

123,570-

121,615

-

-

5,472

4.8

4.5, 4.7(Note10)
4.5,4.6
13,800(Note11)2,610

Notes:
1. “Appraisal NOI” is the net operating income by the direct capitalization method stated in the appraisal report, rounded to thenearest million yen.
2. “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of each
property in each real estate appraisal report, rounded to the first decimal place.
3. The discount rate for Logicross Fukuoka Hisayama is assessed first year as 4.7% and second and thereafter as 4.9%.
4. The discount rate for Logicross Atsugi is assessed first to seventh as 4.2% and eighth and thereafter as 4.3%.
5. The discount rate for Logicross Kobe Sanda is assessed first to seventh year as 4.6% and eighth to eleventh as 4.7%.
6. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Sagamihara is shown with the values corresponding to the beneficiary interest ratios (49%).
7. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Hashimoto is shown with the values corresponding to the beneficiary interest ratios (45%).
8. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Osaka Taisho is shown with the values corresponding to the beneficiary interest ratios (20%).
9. The discount rate for MJ Logipark Osaka 1 is assessed first year as 4.2% and second to eleventh as 4.4%.
10. The discount rate for MJ Logipark Nishinomiya 1 is assessed first to ninth year as 4.5% and tenth and thereafter as 4.7%.
11. The discount rate for MJ Logipark Kasugai 1 is assessed first to forth year as 4.5% and fifth and thereafter as 4.6%.

-29-

(v) Information Regarding Major Real Estate Properties
The following summarizes the properties where “annual rent” represents 10% or more of the total portfolio annual
rent as of Feb. 29, 2020.
Annual rent (Millions of yen)
(Note 1)
1,274
925
734
2,933

Property name
LOGIPORT Sagamihara (Note 3)
LOGIPORT Hashimoto (Note 4)
MJ Logipark Kasugai 1
Total

Percentage of rent(%) (Note 2)
19.8
14.4
11.4
45.7

Notes:
1. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Feb. 29, 2020.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Feb. 29, 2020, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Feb. 2020 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofFeb. 29, 2020 shall not be included.
2. “Percentage of rent” is the ratio of that property’s total annual rent to the total portfolio annual rent, rounded to the firstdecimal place.
3. “Annual rent” of LOGIPORT Sagamihara is shown with the values corresponding to the beneficiary interest ratios (49%).
4. “Annual rent” of LOGIPORT Hashimoto is shown with the values corresponding to the beneficiary interest ratios (45%).

(vi) Information Regarding Major Tenants
The following summarizes the major tenant where “leased area” represents 10% or more of the total portfolio
leased area as of Feb. 29, 2020.

Tenant Name

IHI
Infrastructure
Systems Co.,Ltd

Annual rent
Leased Percentage Lease
Percentage
area (㎡) of area (%) expiration(Millions ofof rent (%)yen)(Note 2) (Note 3)
dateType of industry(Note 1)

Property name

Manufacturing of
metal products forconstruction(excluding steel
frame)

MJ Industrial Park Sakai(Land)

Total

Not
disclosed(Note 4)Not
disclosed(Note 4)87,476.71

15.9

Not
disclosed(Note 4)Not
disclosed(Note 4)Not
disclosed(Note 4)87,476.71

15.9－

Notes:
1. ”Type of industry” refers to the report from the TOKYO SHOKO RESEARCH, LTD.
2. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Feb. 29, 2020, basedon the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in thelease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. Percentage of area refers to the floor area leased to end tenant as a proportion of total leased area. Figures are rounded to thefirst decimal place.
4. We have not obtained permission from the tenant of the properties to disclose the information unstated in this table.

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(vii) Property Distribution
a. Distribution by category
Number ofproperties

Category
Logistics facilities
Others
Total

Acquisition price (Millions of yen)
(Note 1)14
1
15

Ratio (%)
(Note 2)

108,187
5,600
113,787

95.1
4.9
100.0

Notes:
1. “Acquisition price” represents the purchase price of each property or beneficiary right in trust as set forth on the relevantpurchase agreement and does not include expenses such as consumption taxes, and is rounded down to nearest million yen.
Same applies below (vii) Property Distribution.
2. “Investment ratio” is calculated by dividing the acquisition price for each property by the total acquisition price and is rounded
to second decimal place. Thus the sum of the figures in total may not add up to the figure in the total column. Same applies
below (vii) Property Distribution.

b. Distribution by region<Based on total floor area (Note 1)>
RegionNumber ofproperties

Tokyo metropolitan area (Note 3)
Osaka metropolitan area (Note 4)
Nagoya metropolitan area (Note 5)
Others
Total

7
4
1
2
14

Total floor area(㎡)
(Note 2)445,143.21
182,985.40
58,236.48
75,880.04
762,245.13

Ratio (%)
58.4
24.0
7.6
10.0
100.0

<Based on acquisition price>
RegionTokyo metropolitan area (Note 3)
Osaka metropolitan area (Note 4)
Nagoya metropolitan area (Note 5)
Others
Total

Number ofproperties

Acquisition price(Millions of yen)

Investment
ratio (%)

64,462
23,755
13,67011,900113,787

56.7
20.9
12.0
10.5
100.0

7
5
1
2
15

Notes:
1. MJ Industrial Park Sakai (Land) is not included in the calculation.
2. “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the main building andannex. If there is more than one main building, the total floor area is the sum of the total floor area for each main building.
Same applies below (vii) Property Distribution.
3. Tokyo metropolitan area refers to Tokyo, Kanagawa, Chiba, Saitama and Ibaraki prefectures.
4. Osaka metropolitan area refers to Osaka, Hyogo, Kyoto, Nara and Shiga prefectures.
5. Nagoya metropolitan area refers to Aichi, Mie and Gifu prefectures.

c. Distribution by property age (Note 1)
Property age
Number ofproperties(Note 2)Less than 5 years
4
5 years or more and 10 years
5
10 years or more
5
Total
14

Total floor area(㎡)
218,056.65
425,465.35
118,723.13
762,245.13

Ratio (%)

Acquisition price(Millions of yen)

28.6
55.8
15.6
100.0

Notes:
1. MJ Industrial Park Sakai (Land) is not included in the calculation.
2. “Property age” is calculated based on the date recorded in the register up to Feb. 29, 2020.

-31-

31,69255,12021,375
108,187

Investment
ratio (%)
29.3
50.9
19.8
100.0

d. Distribution by total floor area (Note)
Total floor area
Less than 10,000㎡
10,000㎡or more and less than30,000㎡
30,000㎡ or more
Total

Number ofproperties
1
6
7
14

Total floor area
Acquisition price Investment
Ratio (%)(㎡)
(Millions of yen) ratio (%)
7,602.06
1.0
1,272
1.2
118,261.78
15.5
30,00927.7
636,381.29
83.5
76,90671.1
762,245.13
100.0
108,187100.0

Note: MJ Industrial Park Sakai (Land) is not included in the calculation.

e. Distribution by lease term
Lease term
(Note 1)
10 years or more
7 years or more and less than 10 years
5 years or more and less than 7 years
Less than 5 years
Total

Annual rent
(Millions of yen) (Note 2)(Note 3)
3,008
53
1,619
1,745
6,426

Ratio (%)
46.8
0.8
25.2
27.2
100.0

Notes:
1. “Lease term” is calculated as the weighted average lease term indicated in the relevant lease agreements for each property or
property in trust as of Feb. 29, 2020, by the rent and figures are rounded to the first decimal place. It does not include theleased area indicated in the lease agreements concerning shops, vending machines, photovoltaic power generation facilities
and parking lots.
2. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Feb. 29, 2020.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Feb. 29, 2020, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Feb. 2020 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofFeb. 29, 2020 shall not be included. Same applies below (vii) Property Distribution.
3. LOGIPORT Sagamihara is shown with the values corresponding to the beneficiary interest ratios (49%), LOGIPORT Hashimoto isshown with the values corresponding to the beneficiary interest ratios (45%) and LOGIPORT Osaka Taisho is shown with thevalues corresponding to the beneficiary interest ratios (20%). Same applies below (vii) Property Distribution.

f. Distribution by remaining lease term
Remaining lease term
(Note)
7 years or more
5 years or more and less than 7 years
3 years or more and less than 5 years
1 year or more and less than 3 years
Less than 1 year
Total

Annual rent
(Millions of yen)

Ratio (%)
1,358
509
2,520
1,363
675
6,426

21.1
7.9
39.2
21.2
10.5
100.0

Note: “Remaining lease term” is calculated as the weighted average remaining lease term indicated in the relevant leaseagreements for each property or property in trust as of Feb. 29, 2020, by the rent and figures are rounded to the firstdecimal place. It does not include the leased area indicated in the lease agreements concerning shops, vending machines,
photovoltaic power generation facilities and parking lots.

-32-

(viii) Details of Collateral
Not applicable(ix) Capital Expenditure for Owned Properties
a. Future plans for capital expenditure
The following summarizes the major capital expenditure plans in connection with scheduled renovations and otherwork for properties owned by MEL. Estimated construction cost includes the amounts to be expensed for accounting
purposes.

Property name
(Location)

Estimated construction cost (Note)
PurposePlanned period

MJ Logipark Kazo 1
Repair work of elevator(Kazo, Saitama)

From Jan. 2021
to Feb. 2021

Total
amountPaid during thereporting period

13

Total amountalready paid--

Note: Figures are rounded down to the nearest million yen.

b. Capital expenditure incurred for the reporting fiscal period
MEL conducted construction work worth 62 million yen in the reporting fiscal period which is a sum of capital
expenditures of 41 million yen and repair and maintenance expenses of 21 million yen.
c. Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
Third fiscal
periodFourth fiscal
periodSept. 1, 2017 to Mar. 1, 2018 toFeb. 28, 2018
Aug. 31, 2018
Reserved balance at the
beginning of the period
Reserved amount during
the period
Reversal of reserved
amount during the period
Reserved balance at theend of the period(Thousands of yen)
Seventh fiscal
periodFifth fiscal
periodSixth fiscal
periodSept. 1, 2018 toFeb. 28, 2019

Mar. 1, 2019 toAug. 31, 2019

Sept. 1, 2019 toFeb. 29, 2020

52,635

123,369

177,543

238,887

297,841

70,73454,174

61,34458,95478,388

-

-

-

－

－

123,369

177,543

238,887

297,841

376,229-33-

(x) Overview of Property Leasing and Status of Operating Income
Seventh fiscal period from Sept. 1, 2019, to Feb. 29, 2020
(Units: Thousands of yen)

Property name

Logicross
Fukuoka
Hisayama

LogicrossAtsugi

Logicross
Kobe Sanda

LOGIPORT
Sagamihara

LOGIPORT
HashimotoOperating days

182 days

182 days

182 days

182 days

182 days(A) Property related revenues

694,095

493,401

Property revenues
Other property related
revenues

636,256458,268

57,83935,132(B) Property related expenses

272,651

196,605

Facility management fee

42,39433,25357,241

43,719

988

720

5,417

3,312

Utilities cost

39,71023,882Custodian fee

61

56

10,486

1,086

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed

Not disclosed

Not disclosed(Note)(Note)(Note)

Other expenses(C) Depreciation

43,801

34,693

16,198116,351

90,575(D) Property related income(=A-B)

107,619

157,274

84,244421,444296,795(E) NOI (=C+D)

151,421

191,968

100,442

537,795

387,370

Property name

LOGIPORT
Osaka Taisho

MJ Logipark
Funabashi 1

MJ Logipark
Atsugi 1

MJ Logipark
Kazo 1

MJ Logipark
Osaka 1

Operating days

144 days

182 days

182 days

182 days

182 days

4 Not disclosed(Note)
133

Not disclosed

Not disclosed

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

117,780

Property revenues
Other property related
revenues

112,210(A) Property related expenses

31,030

Facility management fee

4,866

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

5,569

343

Utilities cost

4,524

Custodian fee

15

Other expenses

75(B) Depreciation

21,06640,02933,28910,39537,656(C) Property related income(=A-B)

86,749139,332

117,930

26,537122,000(D) NOI (=C+D)

107,816

179,362

151,220

36,932

159,657

Note: We have not obtained permission from the tenants of the properties to disclose the information and therefore it has been omitted
from this table.

-34-

Property name

MJ Logipark
Fukuoka 1

MJ Logipark
Tsuchiura 1

MJ Logipark
Nishinomiya 1

MJ Logipark
Kasugai 1

MJ Industrial
Park Sakai(Land)

Operating days

182 days

181 days

144 days

144 days

144 days

Total(A) Property related revenues

209,743

3,200,880

Property revenues
Other property related
revenues

196,779

3,046,460

12,963

154,419(A) Property related expenses

97,807

1,076,349

Facility management fee

9,699

135,358

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

14,145 Not disclosed(Note)
519
3,221

21,596

Utilities cost

9,937

99,216

Custodian fee

240

2,301

Other expenses

310

15,935

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

215,768
5,435(B) Depreciation

59,733

12,822

9,552

54,569-580,736(C) Property related income(=A-B)

111,936

77,74043,805

231,116

100,0032,124,531(D) NOI (=C+D)

171,670

90,56353,357

285,686

100,0032,705,268

Note: We have not obtained permission from the tenants of the properties to disclose the information and therefore it has been omitted
from this table.

-35-