Summary of Financial Results for the Fiscal Period Ended February 28, 2021 (REIT)
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,
In charge of Logistics REIT Management Department
Tel. 81-3-3218-0030

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

May 28, 2021
May 20, 2021

Supplementary Materials for Financial Results:
Investors and Analysts Meeting:

Yes
Yes

April 15, 2021

(Values are rounded down to the nearest million yen)
1. Financial Results for the Fiscal Period Ended February 28, 2021 (9th Fiscal Period) (from Sep. 1, 2020 to Feb. 28, 2021)(1) Operating Results(Percentages indicate change from the previous period)

Operating revenues
Operating income% Millions of yen%
Fiscal period ended Millions of yen
Feb. 28, 2021
4,203
25.7
2,204
27.4
Aug. 31, 2020
3,342
4.4
1,729
(1.1)

Ordinary income
Millions of yen
2,074
1,655

Net income% Millions of yen
25.3
2,073
1.3
1,654

%
25.3
1.4

Return on unitholders’
Ratio of ordinary income Ratio of ordinary income
Equityto total assets
to operating revenues
Fiscal period ended
Yen
%
%
%
Feb. 28, 2021
5,958
2.3
1.5
49.3
Aug. 31, 2020
5,410
2.0
1.4
49.5
Note: MEL issued new investment units of 40,500 units and 1,922 units on Sep. 1, 2020 and Sep. 30, 2020, respectively. For the fiscal
period ended Feb. 28, 2021, net income per unit is calculated by dividing net income by the day-weighted average number ofinvestment units outstanding during the period 347,929 units.
Net income per unit

(2) Distributions

Distributions Total amount ofDistributions Total amount
Total amount
per unit
per unit of distributions
Ratio ofdistributions Surplus cash
Payoutof surplus(excluding(including
distributions(including(excluding distributions
ratio
cash
per unit
to net assets
surplus cash surplus cash
surplus cash surplus cash
distributions
distributions) distributions)distributions) distributions)
Yen Millions of yen
Yen Millions of yen
Yen Millions of yen
Fiscal period ended%%
Feb. 28, 2021
5,953
2,073
666
231
6,619
2,304
100.0
2.2
5,411
1,654
592
181
6,603
1,835
Aug. 31, 2020
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, 2020 andFeb. 28, 2021, 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. 28, 2021, the payout ratio is calculatedusing 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. 28, 2021
Aug. 31, 2020

Net assets

Millions of yen
151,467
120,476

Millions of yen
99,586
81,648Cash flows fromoperating activities
Millions of yen
1,827
3,496

Cash flows frominvesting activities
Millions of yen(28,280)
17

Unitholders’ equity tototal assets

%
65.7
67.8

Net assets per unit
Yen
285,972
266,987(4) Cash Flows
Fiscal period ended
Feb. 28, 2021
Aug. 31, 2020

Cash flows from
Cash and cash equivalents
financing activities
Millions of yen
Millions of yen
9,472
28,0307,894(2,906)

2. Forecasts for the Fiscal Periods Ending Aug. 31, 2021 (from Mar. 1, 2021 to Aug. 31, 2021) and Feb. 28, 2022 (fromSep. 1, 2021 to Feb. 28, 2022)(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, 2021
4,941 17.6
2,521 14.4
2,336 12.6
2,335 12.6
6,685
5,969
Feb. 28, 2022
5,035
1.9
2,613
3.6
2,493 6.7
2,492 6.7
7,099
6,372
(Reference) Forecasted net income per unit for the fiscal period ending Aug. 31, 2021: 5,969 yen
Forecasted net income per unit for the fiscal period ending Feb. 28, 2022: 6,372 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. 28, 2021
348,273 units
As of Aug. 31, 2020
305,815 units(b) Number of treasury units at the end of the fiscal period
As of Feb. 28, 2021
0 units
As of Aug. 31, 2020
0 units
Note: Please refer to “Notes Concerning Per Unit Information” on page 25 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 tovarious factors. Furthermore, those statements shall not be deemed a guarantee or any commitment of theamount of future distributions and surplus cash distributions. Please refer to “Forecast Assumptions for the Fiscal
Periods Ending Aug. 31, 2021 and Feb. 28, 2022” on page 7 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
716
727

Index1. Results of Operations(1) Results of Operations ...................................................................................................................................................................... 2(A)Overview of the Ninth Fiscal Period ended February 28, 2021 …............................................................................................. 2(i) Major Operational Results of MEL ........................................................................................................................................... 2(ii) Investment Environment and Operational Results of the Ninth Fiscal Period ended February 28, 2021............................ 2(iii) Overview of Financing ............................................................................................................................................................ 3(iv) Overview of Financial Results and Distributions .................................................................................................................... 3(B) Outlook for the Next Fiscal Period .............................................................................................................................................. 4(i) Future Management Policies ………………................................................................................................................................... 4(ii) Significant Subsequent Events ................................................................................................................................................ 5(iii) Earnings Forecast ................................................................................................................................................................... 6(2) Risk Factors ……..………………….......................................................................................................................................................... 9
2. Financial Statements(1) Balance Sheet .................................................................................................................................................................................. 10(2) Statement of Income and Retained Earnings .................................................................................................................................. 12(3) Statement of Changes in Net Assets................................................................................................................................................ 13(4) Statement of Cash Distributions...................................................................................................................................................... 14(5) Statement of Cash Flows ................................................................................................................................................................. 15(6) Notes Concerning Going Concerns Assumption .............................................................................................................................. 15(7) Notes Concerning Significant Accounting Policies .......................................................................................................................... 16(8) Notes Concerning Financial Statements ......................................................................................................................................... 18(9) Change in Number of Investment Units Issued and Outstanding ................................................................................................... 26
3. Reference Information(1) Composition of MEL’s Assets .......................................................................................................................................................... 28(2) Investment Assets …………................................................................................................................................................................ 28(i) Overview of Portfolio ................................................................................................................................................................. 29(ii) Overview of Properties……………………………….……………………………………………………………………………………..................................... 30(iii) Overview of Tenant Agreements ………………..…….…………………………………................................................................................. 32(iv) Overview of Appraisal Reports …….......................................................................................................................................... 34(v) Information Regarding Major Real Estate Properties ………....................................................................................................... 36(vi) Information Regarding Major Tenants…………………………………………………………………………......................................................... 36(vii) Property Distribution ……………………………………………………………………………………………………....................................................... 37(viii) Details of Collateral ……... ……………………………………………………………………………………………....................................................... 39(ix) Capital Expenditure for Owned Properties………..…………………………………………………………......................................................... 39(x) Overview of Property Leasing and Status of Operating Income …..…………………………………....................................................... 40-1-

1. Results of Operations(1) Results of Operations(A)Overview of the Ninth Fiscal Period ended February 28, 2021
(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 a sponsor.
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 record in real estate
fund management since its establishment in 2001. Through “HYBRID” (Note 1) utilization of the strengths ofboth companies, MEL aims for maximization of unitholder value by striving for the building of a high-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 to build a longterm and stable portfolio through selective investments in highly competitive logistics facilities that meet tenantneeds.
Furthermore, MEL announced its management policy based on the “Three Pillars” on April 17, 2019, as amanagement 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).
As of the end of the reporting fiscal period (Feb. 28, 2021), MEL acquired five additional properties, Logicross
Osaka (60% initial co-beneficiary interest) (Note 2), Logicross Nagoya Kasadera (60% initial co-beneficiaryinterest) (Note 3), LOGIPORT Osaka Taisho (17.5% additional co-beneficiary interest) (Note 4), MJ Logipark Kazo
1 and MJ Logipark Sendai 1, worth aggregate acquisition price of 28,407 million yen during the reporting fiscal
period. As a result, MEL owned 19 properties (aggregate acquisition price: 142,192 million yen), at the end of thereporting fiscal period (Feb. 28, 2021).

Note 1: ”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.
Note 2: Logicross Osaka (60% initial co-beneficiary interest) refers to the 60% initial co-beneficiary interest of Logicross Osaka,
which was acquired by MEL on Sept. 1, 2020, and Logicross Osaka (40% additional co-beneficiary interest) refers to the
40% additional co-beneficiary interest of Logicross Osaka, which was acquired by MEL on Mar. 9 ,2021.
Note 3:Logicross Nagoya Kasadera (60% initial co-beneficiary interest) refers to the 60% initial co-beneficiary interest of
Logicross Nagoya Kasadera, which was acquired by MEL on Sept. 1, 2020, and Logicross Nagoya Kasadera (40%additional co-beneficiary interest) refers to the 40% additional co-beneficiary interest of Logicross Nagoya Kasadera,
which was acquired by MEL on Mar. 9, 2021.
Note 4:LOGIPORT Osaka Taisho (20% initial co-beneficiary interest) refers to the 20% initial co-beneficiary interest of
LOGIPORT Osaka Taisho, which was acquired by MEL on Oct. 9, 2019, and LOGIPORT Osaka Taisho (17.5% additional cobeneficiary interest) refers to the 17.5% additional co-beneficiary interest of LOGIPORT Osaka Taisho, which was
acquired by MEL on Sept. 1 ,2021.

(ii) Investment Environment and Operational Results of the Ninth Fiscal Period ended February 28, 2021
During the reporting fiscal period (ended on Feb. 28, 2021), Despite some signs of improvement in consumer
spending and corporate earnings from summer to autumn, the situation remains severe against the backdrop of
the spread of infections both domestically and overseas since the end of 2020. Although the economy isexpected to slowly recover as economic activities are resuming with safety precautions taken against thedisease, economic uncertainties will most likely to continue, and it is essential to closely monitor the impacts on
the financial and capital markets going forward. The actual GDP (gross domestic product) for the fourth quarterof 2020 (from Oct. to Dec.) recorded a positive growth for the second consecutive quarter with 11.6% increaseon an annualized basis as a result of recovery in consumer spending and export activities.
Investors in the real estate transaction market have become more selective of property types and are highly
motivated to invest in sectors with resilience such as logistics facilities and residential which can be expected
stable returns even under the global pandemic of COVID-19. Long-term interest rates in the U.S. are on an
upward trend, and it is necessary to continue to closely monitor the interest rate trends. However, investors
continue to look for potential investment opportunities and cap rates of logistics facilities remain low due tostable cash flow.
In the J-REIT market, which continued to recover moderately, the Tokyo Stock Exchange REIT Index
temporarily exceeded 2,000 points on Feb. 17, 2021, but subsequently declined slightly against the backdrop ofconcerns over rising interest rates in the U.S., but has trended from 1,900 points to 2,000 points. As the-2-economy heads toward normalization, we believe it is necessary to closely monitor the increase in volatility
associated with changes in the interest rate environment and other factors.
In the logistics facilities market, a rapid increase of e-commerce use has drawn attention and further increasein demand for logistics facilities is expected, driven by the increased online-based consumption and inventories.
Under these circumstances, the demand for logistics facilities continues to be strong and vacancy rates remain
low, despite a large volume of new supply. Although the trend of new supply is expected to continue, tenantleasing activities for properties under development are proceeding well, and no significant impact is expectedon MEL’s portfolio.
As of the end of the reporting fiscal period (Feb. 28, 2021), MEL owned 19 properties (aggregate acquisition
price: 142,194 million yen) and the occupancy rate remained high, at 99.7% 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 (40,500 units) and raised 16,898
million yen equity capital, with a payment date of Sept. 1, 2020, to procure funds to acquire assets acquiredin the 9th fiscal period. MEL additionally issued units through a third-party allotment (1,922 units) and raised
801 million yen equity capital, with a payment date of Sept. 30, 2020. As a result of these offerings, thebalance of MEL’s unitholders’ capital was 97,512 million yen and the total number of units issued andoutstanding was 348,237 as of the end of the reporting fiscal period (Feb. 28, 2021).
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.
As of the end of the reporting fiscal period (Feb. 28, 2021), MEL borrowed short-term loans of 2,600
million yen and long-term loans of 10,400 million yen on Sept. 1, 2020 including ESG loan for J-REIT fromMUFG Bank, Ltd., for the purpose of acquiring five new properties associated with ancillary costs andexpenses. Moreover, MEL prepaid aforementioned portion of short-term loan of 800 million yen with theproceed from third-party allotment on Oct. 1, 2020. In addition, on Oct. 9, 2020, MEL successfullyrefinanced short-term loan of 950 million yen (short-term loan of 200 million yen and long-term loan of 750
million yen).
As of the end of the reporting fiscal period (Feb. 28, 2021), the balance of MEL’s interest-bearing debt was
47,574 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 31.4% as of the end of the reporting fiscal period.

c.

Shelf Registration of Investment Corporation Bonds
MEL has filed an amendment of shelf registration statement (the original shelf registration statement was
submitted on Apr. 17, 2020) for issuance of (undecided) series of unsecured bonds (“Green bonds”) to the
Director General of the Kanto Local Finance Bureau. MEL has obtained a Green 1 (F) (highest for JCR Green
Finance Evaluation) rating in preliminary evaluation for the competence of its Green Finance Frameworkfrom Japan Credit Rating Agency, Ltd. (JCR).

d.

Credit Rating
MEL’s credit rating as of the end of the reporting fiscal period (Feb. 28, 2021) was as follows:
Rating Agency
Rating Object
RatingOutlookJapan Credit Rating Agency, Ltd.
Long-term issuer rating
AAStable(iv) Overview of Financial Results and Distributions
As a result of these investment activities and financings, MEL generated operating revenues of 4,203 million
yen, operating income of 2,204 million yen, ordinary income of 2,074 million yen, net income of 2,073 million
yen and distributions per unit of 6,619 yen per unit for the reporting fiscal period.
MEL’s distributions for the same period were 5,953 yen per unit, which included MEL’s profit distributions indeductible 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 all unappropriatedretained earnings for the reporting period, excluding fractions less than one yen. MEL declared the distribution-3-

amount of 2,073,054,861 yen which was the amount equivalent to the maximum integral multiples of numberof investment units issued and outstanding (348,237 investment units) as of the reporting fiscal period.
In addition to the above distributions arising from earnings, MEL intends to regularly distribute cash in excessof the amount of retained earnings (“Regular Surplus Cash Distributions”) in each fiscal period in accordancewith MEL’s distribution policy set forth in its articles of incorporation (Note 1). In addition, to maintain thestability 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 of large repair andmaintenance, 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 231,925,842 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 666 yen.

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 tomaximize unitholder value, through selective investments in highly competitive logistics facilities that meettenant needs with a focus on “location,” “building features” and “stability,” based on the accumulated expertiseof 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 of corporate
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.

-4-

(ii) Significant Subsequent Events
a. Issuance of New Investment Units
MEL issued new investment units based on the resolution made by the board of directors on Feb. 18, 2021
and Mar. 1, 2021 and the payment was completed on Mar. 5, 2021 and Apr. 6, 2021 for the issuance of new
investment units through public offering and third-party allotment, respectively.
<Issuance of New Investment Units through Public Offering>Number of units issued and outstanding: 41,000 units
Issue price: 403,650 yen per unit
Total amount issued: 16,549,650,000 yen
Issue amount: 390,402 yen per unit
Net proceeds: 16,006,482,000 yen
Payment date
: Mar. 5, 2021
<Issuance of New Investments Units through the Third-Party Allotment>
Number of units issued and outstanding: 1,898 units
Issue amount: 390,402 yen per unit
Net proceeds: 740,982,996 yen
Payment date
: Apr. 6, 2021
Allotee: SMBC Nikko Securities Inc.

.

b. Issuance of Investment Corporation Bonds
MEL decided to issue Green Bonds on Apr. 8, 2021 (payment date: Apr. 14, 2021) based on an amendmentof shelf registration statement announced in the press release “MEL Files Amendment to Shelf Registration
Statement for Issuance of Green Bonds” dated Jan. 18, 2021 and per the blanket resolution approved at theboard of directors’ meeting held on Apr. 7, 2021.
Name
Total Issue AmountInterest Rate
Redemption Date
Credit Rating
Collateral andguarantee
Use of Proceeds

Mitsubishi Estate Logistics REIT Investment Corporation 1st Series Unsecured Bonds(Ranking pari passu among Specified investment corporation bonds) (Green Bonds)
2,000 million yen
0.700% per annum
Apr. 14, 2036
AA- (JCR)
Neither collateral nor guarantee is provided for Green Bonds, and no asset has been
particularly secured for the Green Bonds.
The proceeds were allocated to the prepayment of a portion of the short-term loans (total
amount 2,000 million yen)

(Reference Information)(A) Property Acquisition
MEL acquired the following properties from the settlement date (Feb. 28, 2021) on and after.
Category

Property Name
Logicross Narashino

Logistics
Logicross Osaka
Facilities (40% additional co-beneficiary interest)
Logicross Nagoya Kasadera(40% additional co-beneficiary interest)
Others

MJ Industrial Park Kobe (Land)
MJ Industrial Park Chiba-Kita (Land)

Location
Narashino,
Chiba
Osaka,Osaka
Nagoya,
Aichi
Kobe,
Hyogo
Chiba,
Chiba

Total
Note: Not disclosed as the seller’s consent has not been obtained.

-5-

Acquisition
Price(Millions ofyen)

Acquisition
Date

11,851
3,868
5,719

Mar. 9,
2021

4,970
1,800
28,209Mar. 19,
2021-

SellerShin-Narashino Property Godo
KaishaDomestic business company(Note)
Domestic business company(Note)
Domestic business company(Note)
Kinugawa Rubber IndustrialCo., Ltd.
-(iii) Earnings Forecast
Forecasts for the fiscal period ending Aug. 31, 2021 (from Mar. 1, 2021 to Aug. 31, 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
2,335
6,685
5,969

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Aug. 31, 2021
4,941
2,521
2,336
(Reference)
Fiscal period ending Aug. 31, 2021: Expected number of investment units outstanding at the end of the period: 391,135 units;
Expected Net income per unit: 5,969 yen

SCD
Yen
716

Forecasts for the fiscal period ending Feb. 28, 2022 (from Sep. 1, 2021 to Feb. 28, 2022) 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
2,492
7,099
6,372

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Feb 28, 2022
5,035
2,613
2,493
(Reference)
Fiscal period ending Feb. 28, 2022: Expected number of investment units outstanding at the end of the period: 391,135 units;
Expected Net income per unit: 6,372 yen

SCD
Yen
727

The forecast information is calculated based on the assumptions described in “Forecast Assumptions for the Fiscal
Periods Ending Aug. 31, 2021 and Feb. 28, 2022”.
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.

-6-Forecast Assumptions for the Fiscal Periods Ending Aug. 31, 2021 and Feb. 28, 2022

Items
Accounting
PeriodAssumption
 Fiscal period ending Aug. 31, 2021 (10th fiscal period): From Mar. 1, 2021 to Aug. 31, 2021 (184 days)
 Fiscal period ending Feb. 28, 2022 (11th fiscal period): From Sept. 1, 2021 to Feb. 28, 2022 (181 days)
 In addition to its 19 properties MEL owned as of Feb. 28, 2021 (“Properties Owned as of the End of 9th
Fiscal Period”), MEL acquired Logicross Narashino, Logicross Osaka (40% additional co-beneficiaryinterest), Logicross Nagoya Kasadera (40% additional co-beneficiary interest), MJ Industrial Park Kobe
(Land) on Mar. 9, 2021, and MJ Industrial Park Chiba-Kita (Land) on Mar. 19, 2021 (“Properties
Acquired during the 10th Fiscal Period”), and currently MEL owns 22 properties.
Assets Under
Management  It is assumed there will be no material change (including acquisition of new properties and dispositionsof existing properties) in the operational status of the 22 properties MEL owned as of Apr. 15, 2021, up
until Feb. 28, 2022.
 The actual results may change due to the acquisition of new properties or the disposition of existing
properties, etc.
 Operating rental revenues take into account factors such as market trends and the competitiveness,
etc. of each property based on information provided by the seller of the Properties Acquired during the10th Fiscal Period and operating results held by the Asset Management Company for the Properties
OperatingOwned as of the End of 9th Fiscal Period.
Revenues 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 or loss
from sale of real estate.
 Main items regarding operating expenses are as follows:(Millions of yen)
Fiscal Period Ending
Fiscal Period Ending
Aug. 31, 2021
Feb. 28, 2022
Total Operating Rental Expenses
1,820
1,802
Facility Management Fee
232
222
Utilities Cost
138
137
Repair and Maintenance Expenses
125
105
Property Taxes
409
409
Depreciation
880
892
Total General and Administrative Expenses
599
619
Asset Management Fee
392
458
OperatingSponsorSupportFee
85
84
Expenses Of operating rental expenses, which is the main operating expense, expenses except depreciation arecalculated by taking into account various factors based on historical data.
 Property taxes and city planning taxes are generally included in the purchase price of properties on a
pro-rata basis of the calendar year and will begin to be expensed from the following calendar year.
Accordingly, property taxes and city planning taxes for the Properties Acquired during the 10th Fiscal
Period will be expensed starting from the fiscal period ending Aug. 31, 2022.
 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 building repair
expenses, the amount assumed to be necessary for each property is based on the repair andmaintenance 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, 2021, it is assumed that 187 million yen will be incurred as nonoperating expenses, which includes 122 million yen for interest expenses and other debt-related costs,
4 million yen as amortization of organization expenses and 60 million yen in relation to the offerings of
Non-operating
the new investment units.
Expenses For the fiscal period ending Feb. 28, 2022, it is assumed that 122 million yen will be incurred as nonoperating expenses, which includes 121 million yen for interest expenses and other debt-related costs.

-7-

Interestbearing Debt

Investment
Units
Distributions
Per Unit(excluding
surplus cash
distributions)Surplus CashDistributions
Per Unit The balance of MEL’s interest-bearing debt on an accounting basis as of today is 60,574 million yen.
 It is assumed that, MEL will repay the short-term debt of 1,300 million yen obtained on Sept. 1, 2020
using cash on hand including the proceeds of tax refund during the fiscal period ending Aug. 31, 2021.
 It is assumed that, MEL will repay the short-term debt of 900 million yen obtained on Mar. 9, 2021
using cash on hand including the proceeds of tax refund during the fiscal period ending Feb. 28, 2022.
 The total expected amount of interest-bearing debt at the end of the fiscal periods ending Aug. 31,
2021 and Feb. 28, 2022 is estimated to be 59,274 million yen and 58,374 million yen, respectively.
 LTV at the end of the fiscal periods ending Aug. 31, 2021 and Feb. 28, 2022 is estimated to be 32.7%
and 32.4%, respectively. For LTV calculation, please refer to the following formula. The ratios arerounded 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, 2022. Currently, there are 391,135 units issued and outstanding.
 Distributions per unit (excluding surplus cash distributions) and surplus cash distributions per unit for
the fiscal periods ending Aug. 31, 2021 and Feb. 28, 2022 are calculated based on 391,135 investment
units, which is the total number of investment units expected to be issued and outstanding at the endof the fiscal periods ending Aug. 31, 2021 and Feb. 28, 2022.
 Distributions per unit (excluding surplus cash distributions) are calculated based on the premise of 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 totenant 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 of Incorporation of
MEL. It is assumed that the surplus cash distributions (on an ongoing basis and one-time basis) in thefiscal period ending Aug. 31, 2021 will be 280 million yen. For the fiscal period ending Aug. 31, 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 is therefore assumed that 264
million yen as ongoing surplus cash distributions (an amount equivalent to 30.0% of depreciation of theperiod) and 15 million yen as surplus cash distributions on a one-time basis (an amount equivalent to
1.9% of depreciation of the period) will be distributed for the purpose of equalizing the amount of
distributions per unit (including surplus cash distributions). It is assumed that the surplus cash
distributions (on an ongoing basis and one-time basis) in the fiscal period ending Feb. 28, 2022 will be
284 million yen. For the fiscal period ending Feb. 28, 2022, the amount of distributions per unit
(excluding surplus cash distributions) is expected to temporarily decrease due to a temporary decline inoperating rental revenues. It is therefore assumed that 267million yen as ongoing surplus cash
distributions (an amount equivalent to 30.0% of depreciation of the period) and 16 million yen as
surplus cash distributions on a one-time basis (an amount equivalent to 1.9% of depreciation of theperiod) will be distributed for the purpose of equalizing the amount of distributions per unit (including
surplus cash distributions). There is no distribution from temporally differences adjustment allowance The amount of depreciation expenses may change depending on the amount of total assets undermanagement, ancillary costs, capital expenditure, the allocation method of purchase prices for each
asset and depreciable life, etc. Surplus cash distributions, which will be based on the amount ofdepreciation expenses, may change accordingly.
 There may be cases where MEL implements distribution of cash in surplus of the distributable amountto 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 boardof directors of MEL deems such distribution to be appropriate (1) in light of the economic environment,
real estate market, lease market or other trends; (2) when the amount of income fails to meet theamount equivalent to 90% of distributable income; (3) when the distribution amount fails to meet therequirements 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 the total of the amount of income for the operating
period in question and the amount stipulated under laws and ordinances (inclusive of the rules of theInvestment Trusts Association, Japan).
 For the time being, MEL intends to target a level of surplus cash distributions on an ongoing basis 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-8-

Others

amount of distributions per unit temporarily decreases due to a series of financing actions such as theissuance of new investment units (including investment unit third-party allotment) or large scale
repair and maintenance, which may result in a temporary dilution of investment units or incurrence oflarge 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 offactors such as economic or real estate market conditions and MEL’s, financial condition or theamount 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 stable financial
management, in case such payment would cause the Appraisal LTV (Note), as defined below, to exceed
60%.
(Note) Appraisal LTV (%) = A /B (%)
A = Total interest bearing liabilities on the balance sheet for the fiscal period related to the operating
period in question (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 held in the fiscal period in question – Total cash distributions to be paid in thenext 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 bemade with regard to the laws and regulations, tax system, accounting standards, listing rules of theTokyo 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 real estatemarket conditions, etc.

(2) Risk Factors
No significant changes have occurred to the risk factors since the most recent Securities Report (filed on Nov. 27,
2020) and the Securities Registration Statement (filed on Feb. 18, 2021); therefore, their descriptions are not stated
here.

-9-

2. Financial Statements(1) Balance Sheet
Thousands of yen
As ofAugust 31, 2020
ASSETS
Current assets:
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets

February 28, 2021

3,504,701
4,389,936
27,45914,807
15,845
7,952,750

Fixed assets:
Property and equipment
Buildings in trust
Less: accumulated depreciation
Buildings in trust, net
Structures in trust
Less: accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Less: accumulated depreciation
Machinery and equipment in trust, net*1*1

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

48,174,980(2,987,424)
45,187,555
1,760,155(81,973)
1,678,181
41,356(1,989)39,367

3,787,095
5,685,115
28,57921,3501,209,689
10,731,829*1*160,814,082(3,727,731)
57,086,350
2,132,358(103,076)
2,029,281
197,114(12,939)
184,175

11,091(1,515)
9,576

16,694(2,652)
14,042Land in trust
Total property and equipment
Intangible assets
Software
Other intangible assets
Total intangible assets
Investments and other assets
Deferred tax assets
Long-term prepaid expenses
Security deposit

65,551,550
112,466,230

81,361,574
140,675,424

3,935
691
4,626

2,985
641
3,626

11
33,07810,00015
42,71410,000Total investments and other assets
Total fixed assets

43,090112,513,946

52,730140,731,780

Deferred assets:
Organization expenses

10,079

4,032

Total deferred assets
Total assets

10,079120,476,777

4,032
151,467,642-10-Thousands of yen
AsAugust 31, 2020
LIABILITIESOperating 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

February 28, 2021

90,602950,000
8,322
6,017
419,864837
204,777
528,045-257,6992,000,000
2,211,000
21,3506,862
488,817916
715,556
96

Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits in trust

2,208,467

5,702,299

34,424,000
2,195,412

43,363,000
2,816,129

Total non-current liabilities
Total liabilities

36,619,412
38,827,879

46,179,129
51,881,429

80,744,051(750,029)

98,444,036(931,072)

Unitholders’ capital, net
SurplusRetained earnings

79,994,021

97,512,964

1,654,877

2,073,248

Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

1,654,877
81,648,898
81,648,898
120,476,777

2,073,248
99,586,213
99,586,213
151,467,642

NET ASSETS
Unitholders’ equity
Unitholders’ capital
Unitholders’ capital, gross
Deduction from unitholders’ capital

*2

-11-

*2

(2) Statement of Income and Retained Earnings
Thousands of yen
For the fiscal period ended
For the fiscal period from
For the fiscal period from
Mar. 1, 2020 to
Sept. 1, 2020 toAug. 31, 2020Feb. 28, 2021

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
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 expenses
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

-12-

*1
*1

3,179,904
162,864
3,342,769*1*1

4,002,266
201,145
4,203,412*1

1,187,243
307,446
1,150
16,7842,400
66,88030,886
1,612,790
1,729,978*1

1,497,479
352,247
1,390
19,1562,400
94,81531,182
1,998,671
2,204,740

36
2,174
2,211

44
726
770

68,8801,723
6,047

87,433
3,290
6,047

-

34,68276,651
1,655,538
1,655,538
842
5
848
1,654,690
187
1,654,877

131,455
2,074,055
2,074,055
923
(3)
919
2,073,136
112
2,073,248

(3) Statement of Changes in Net Assets
The Previous Period (from Mar. 1, 2020 to Aug. 31, 2020)
Thousands of yen
Unitholders' equity
Unitholders' capital

Balance as of Mar. 1,
2020
Change during theperiodDistributions inexcess of retained
earnings
Surplus cash
distributions

Total net
assetsUnitholders’capital, gross

Deduction ofunitholders’capitalUnitholders’capital, net

Unappropriatedretained earnings

Total surplus

Totalunitholders'equity80,744,051(576,021)

80,168,030

1,632,627

1,632,627

81,800,657

81,800,657-(174,008)

-

-

-

-

(174,008)--

1,654,690(1,632,440)(1,632,440)(174,008)-(1,632,440)(174,008)

1,654,690(1,632,440)-(174,008)

22,24922,249*1 80,744,051(750,029)(174,008)

1,654,877

1,654,877(151,759)

81,648,898(151,759)

81,648,898

Total net
assets

Net income
Total change during
the period
Balance as of Aug.
31, 2020

Surplus-79,994,021

1,654,690

1,654,690

The Reporting Period (from Sept. 1, 2020 to Feb. 28, 2021)
Thousands of yen
Unitholders' equity
Unitholders' capital
Deduction ofunitholders’capitalUnitholders’capital, net

Unappropriatedretained earnings

Total surplus

Totalunitholders'equity80,744,051(750,029)

79,994,021

1,654,877

1,654,877

81,648,898

81,648,898

17,699,985-

17,699,985--

17,699,985

17,699,985-(181,042)(181,042)--(181,042)(181,042)---(1,654,764)(1,654,764)(1,654,764)(1,654,764)

-

-

-

2,073,136

2,073,136

2,073,136

2,073,136

17,699,985(181,042)

17,518,943

418,371

418,371

17,937,314

17,937,314*1 98,444,036(931,072)

97,512,964

2,073,248

2,073,248

99,586,213

99,586,213

Unitholders’capital, grossBalance as of Sept.
1, 2020
Change during theperiodIssuance of new
investments
Distributions inexcess of retained
earnings
Surplus cash
distributions
Net income
Total change during
the period
Balance as of Feb.
28, 2021

Surplus-13-

(4) Statement of Cash Distributions
Yen
For the fiscal period from
Mar. 1, 2020 toAug. 31, 2020

For the fiscal period from
Sept. 1, 2020 toFeb. 28, 2021

I. Unappropriated retained earnings
II. Distributions in excess of retained earnings
Deduction from unitholders’ capital

1,654,877,226
181,042,480

231,925,842

III. Distributions(Distributions per unit)
Of which, distributions of retained earnings(Of which, distributions in retained

1,835,807,445(6,003)
1,654,764,965

2,304,980,703(6,619)2,073,054,861(5,411)(5,953)

181,042,480

231,925,842

(592)

(666)

112,261

193,995

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 amount2,073,248,856

Pursuant to the “Policy on the Pursuant to the “Policy on theDistribution of Funds” as defined in Distribution of Funds” as defined in
Article 35, Paragraph 1 of the Articles of Article 35, Paragraph 1 of the Articles ofIncorporation,theamountof Incorporation,theamountofdistributions shall be the amount which distributions shall be the amount which
does not exceed the amount of profits does not exceed the amount of profits
but exceeds 90% of the distributable but exceeds 90% of the distributableprofit as defined in Article 67-15 of the profit as defined in Article 67-15 of theSpecial Taxation Measures Act. Based on Special Taxation Measures Act. Based on
the policy, MEL declared distribution the policy, MEL declared distribution
amount of 1,654,764,965 yen. This amount of 2,073,054,861 yen. This
amount was equivalent to the maximum amount was equivalent to the maximum
integral multiples of number of integral multiples of number ofinvestment units issued and outstanding investment units issued and outstanding(305,815 units) as of the end of fiscal (348,237 units) as of the end of fiscal
period. Based on the distribution policy period. Based on the distribution policy
as defined in Article 35, Paragraph 2 of as defined in Article 35, Paragraph 2 of
the Articles of Incorporation, MEL shall the Articles of Incorporation, MEL shallmake Surplus Cash Distributions (SCD), make Surplus Cash Distributions (SCD),
defined as distributions in excess of defined as distributions in excess ofretained earnings, as a return of retained earnings, as a return ofunitholders’ capital, each fiscal period unitholders’ capital, each fiscal period on
on a continuous basis. Accordingly, MEL a continuous basis. Accordingly, MEL
declared SCD of 181,042,480 yen as a declared SCD of 231,925,842 yen as areturn of unitholders’ capital, which was return of unitholders’ capital, which was
the amount equivalent to approximately the amount equivalent to approximately
30% of depreciation expense.
30% 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 is smaller than
90% of its distributable retained earnings on a tax basis to the extent that such distribution amount does not exceed the amount of
MEL’s depreciation for the same fiscal period, and if MEL determines that such excess distribution amount is appropriate.

-14-(5) Statement of Cash Flows

Cash flows from operating activities:
Income before income taxes
Depreciation
Amortization of investment unit issuanceInterest income
Interest expenses
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
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 in
Trust
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
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

Thousands of yen
For the period ended
For the fiscal period from
For the fiscal period from
Mar. 1, 2020 to
Sept. 1, 2020 toAug. 31, 2020Feb. 28, 2021

*1(6) Notes Concerning Going Concerns Assumption
Not applicable-15-

1,655,538
605,448(36)
68,880(6,010)1,005,408
1,159
5,617
11,159(1,432)64,162
204,777(30,446)(8,803)
3,575,421
36(68,232)(9,635)(949)
3,496,640

2,074,055
774,496
34,682(44)
87,433(1,120)(1,209,689)(6,542)(9,636)
85,211
13,02865,951(204,777)
187,511
21,9901,912,552
44(84,432)(843)
1,827,319(47,866)(28,900,804)

78,145676,278(12,650)(55,560)

17,628(28,280,087)(1,100,000)(1,632,883)(173,942)(2,906,826)
607,443
7,287,195
7,894,638

2,800,000(1,750,000)
11,150,000
17,665,302(1,654,114)(180,847)
28,030,340
1,577,572
7,894,638
9,472,211*1

(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
8-12 years
Tools, furniture and fixtures 4-15 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

2. Accounting method of deferred charges

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

estimated useful lives.
(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
Organization Expenses
All organization expenses are amortized over five years using straight-line
method.
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.

-16-

(Accounting standards issued but not yet effective)
・“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued
on Mar. 31, 2020)
・“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 issued on Mar. 31,
2020)
・“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on
Mar. 31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the UnitedStates have jointly developed comprehensive accounting standards for revenue recognition and issued “Revenue fromContracts with Customers” (IFRS 15 (IASB) and Topic 606 (FASB)) in May 2014. Given the situation where IFRS 15 will beapplied from fiscal years beginning on or after January 1, 2018 and that Topic 606 will be applied from fiscal years
beginning after December 15, 2017, the ASBJ has developed comprehensive accounting standards for revenue recognition
and issued them together with the implementation guidance. The basic policy of the ASBJ when it developed theaccounting standards for revenue recognition was to specify the accounting standards, incorporating the basic principles
of IFRS 15 as a starting point, from the perspective of comparability between financial statements, which is one of thebenefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which
consideration should be given, such as practices that have been conducted thus far in Japan, alternative treatments will be
added to the extent to which comparability is not impaired.
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending February 28, 2022.
(3) Impact of applying the accounting standards
The impact of applying “Accounting Standard for Revenue Recognition” and its guidance on The financial statements iscurrently under evaluation.
・“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019)
・”Accounting Standard for Financial Instruments” (ASBJ Statement No.10 issued on July 4, 2019)
・“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued on July4, 2019)
・“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on
Mar. 31, 2020)(1) Overview
The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13 “Fair Value
Measurement” (IASB) and Topic 820 “Fair Value Measurement” (FASB)). The ASBJ repeatedly considered the guidance
regarding fair value of financial instruments and disclosure in order to improve the comparability with such international
accounting standards, and issued “Accounting Standard for Fair Value Measurement” and “Implementation Guidance on
Accounting Standard for Fair Value Measurement.”(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending February 28, 2022.
(3) Impact of applying the accounting standards
The impact of applying the “Accounting Standard for Fair Value Measurement” and its guidance on The financial
statements is currently under evaluation.
・“Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31 issued on Mar. 31, 2020)-17-

(1) Overview
Paragraph 125 of International Accounting Standard 1 (IAS 1), “Presentation of Financial Statements,” (issued by the
IASB in 2003) requires disclosure of information about the “assumptions the entity makes about the future, and othermajor sources of estimation uncertainty.” In this regard, there has been a request that the major sources of estimation
uncertainty should be disclosed in the notes to financial statements under Japanese GAAP to provide useful information
to users of financial statements. In response to this request, the ASBJ developed and issued “Accounting Standard forDisclosure of Accounting Estimates.”
The Accounting Standards Committee's basic policy for the development of this standard is not to expand individual
notes, but to indicate the principles (disclosure purposes). Specific disclosures are to be determined by corporates basedon the purpose of disclosure, and are to be developed based on the rules set forth in IAS No. 1, Item 125.
(2) Scheduled date of application
The accounting standard will be applied from the end of the fiscal period ending August 31, 2021.
・“Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections” (ASBJ Statement
No. 24 issued on Mar. 31, 2020)(1) Overview
The ASBJ’s Standards Advisory Council recommended that the ASBJ consider enhancing disclosures for notes relating to“accounting policies and methods adopted in the cases where the relevant accounting standards were not clear.” In
response to such recommendations, the ASBJ issued the revised “Accounting Standard for Accounting Policy Disclosures,
Accounting Changes and Error Corrections.”(2) Scheduled date of application
The accounting standard will be applied from the end of the fiscal period ending August 31, 2021.

(8) Notes Concerning Financial Statements(Notes Concerning Balance Sheet)*1 Reduction entry of tangible fixed assets

Buildings in trust
Structures in trust

Aug. 31, 2020

Thousands of yen
As of31,2207,008

Feb. 28, 2021

31,2207,008*2 Minimum net assets as required by Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
Aug. 31, 2020

Thousands of yen
As of50,000-18-

Feb. 28, 2021
50,000(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, 2020 to
Sept. 1, 2020 toAug. 31, 2020Feb. 28, 2021

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

3,035,383
144,521
3,179,904

3,825,893
176,373
4,002,266

111,023
51,841
162,864
3,342,769

124,108
77,037201,145
4,203,412

104,652
313,996
4,957

185,972
313,276
6,412

Repair and maintenanceUtilities cost
Depreciation
Custodian fee
Others41,40699,083
604,448
2,427
16,27275,570115,299
773,496
3,140
24,312

Total rental expenses

1,187,243

1,497,479

2,155,525

2,705,932

C. Operating income from property leasing (A-B)(Notes Concerning Statement of Unitholders’ Equity)
For the fiscal period from
Mar. 1, 2020 toAug. 31, 2020

For the fiscal period from
Sept. 1, 2020 toFeb. 28, 2021

Number of investment units authorized

10,000,000 units

10,000,000 units

Number of investment units issued andoutstanding

305,815 units

348,237 units(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, 2020 to
Sept. 1, 2020 toAug. 31, 2020Feb. 28, 2021

Cash and deposits

3,504,701

3,787,095

Cash and deposits in trust

4,389,936

5,685,115

Cash and cash equivalents

7,894,638

9,472,211-19-

(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, 2020 to
Sept. 1, 2020 toAug. 31, 2020Feb. 28, 2021

Due within one year

5,853,529

8,139,356

Due after one year

34,518,339

39,466,864

Total

40,371,869

47,606,221(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 andalso reflecting the market environment and cash positions of MEL itself. MEL enters into derivative transactions
solely for the purposes of reducing risks of rising interest rates related to financings and other types of risks. MEL
does not use derivative transactions for speculative purposes. Not applicable for the reporting 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, securingliquidity of cash in hand and managing such liquidity risks by preparing and monitoring cash flows projection, suchrisks are maintained under control. In addition, some loans bear floating interest rates and are exposed topotential 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 to cancelationof lease agreement before the maturity date. In the case of trust beneficiary interest in real estate, MEL securessafety 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 or bank time deposit
account. Moreover, MEL ensures safety by accurately tracking the timing of the tenant move-ins and outs andanticipating the fund demand utilizing historical data.
(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, 2020 are as follows: Financial
instruments for which the fair value is extremely difficult to estimate are excluded from the following table (see Note
2 below).

-20-

Thousands of yen
Book value

Fair value (Note 1)

Difference(1) Cash and deposits

3,504,701

3,504,701-(2) Cash and deposits in trust

4,389,936

4,389,936-

7,894,638

7,894,638-

950,000

950,000

-

-

-

-

(5) Long-term loans payable

34,424,000

34,648,574

224,574

Total liabilities

35,374,000

35,598,574

224,574

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. 28, 2021 are as follows: Financial
instruments for which the fair value is extremely difficult to estimate are excluded from the following table (see Note
2 below).
Thousands of yen
Book value

Fair value (Note 1)

Difference(1) Cash and deposits

3,787,095

3,787,095-(2) Cash and deposits in trust

5,685,115

5,685,115-

9,472,211

9,472,211-

2,000,000

2,000,000-

2,211,000

2,212,967

1,967

43,363,000

43,473,011

110,011

Total liabilities
47,574,000(Note 1) Methods to estimate fair values of financial instruments

47,685,978111,978

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 thefair 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 tothe 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, 2020
Tenant leasehold and security deposits in trust *2,195,412

Feb. 28, 2021
2,816,129* Because tenant leasehold and security deposits and tenant leasehold and security deposits in trust have no observable andavailable market price and it is impracticable to reasonably estimate their future cash flows, their fair value is not assessedherein.
(Note 3) Redemption schedule for monetary claims after Aug. 31, 2020

Cash and deposits
Cash and deposits in trust
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to four
one yearto two years to three years
to five years
years
years
3,504,701
4,389,936
7,894,638--21-

Redemption schedule for monetary claims after Feb. 28, 2021

Cash and deposits
Cash and deposits in trust
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to four
one yearto two years to three years
to five years
years
years
3,787,095
5,685,115
9,472,211-(Note 4) Repayment schedule f or debt after Aug. 31, 2020

Short-term loans payable
Long-term loans payable
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to four
one yearto two years to three years
to five years
years
years
950,000
2,211,000
3,310,000
6,540,000
3,400,000 18,963,000
950,000
2,211,000
3,310,000
6,540,000
3,400,000 18,963,000

Repayment schedule for debt after Feb. 28, 2021

Short-term loans payable
Long-term loans payable
due within one year
Long-term loans payable
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fourto two years to three years
to five years
years
one year
years
2,000,000
2,211,000

-

-

-

-

-

4,211,000

3,310,000
3,310,000

6,540,000
6,540,000

4,550,000
4,550,000

4,970,000
4,970,000

23,993,000
23,993,000(Notes Concerning Investment Securities)
For the periods ended Aug. 31, 2020 and Feb. 28, 2021
Not applicable(Notes Concerning Derivative Transactions)
For the periods ended Aug. 31, 2020 and Feb. 28, 2021
Not applicable(Notes Concerning Retirement Payment)
For the periods ended Aug. 31, 2020 and Feb. 28, 2021
Not applicable(Notes Concerning Deferred Tax Accounting)
1. Primary components of deferred tax assets and deferred tax liabilities

Thousands of yen
As ofAug. 31, 2020
Enterprise tax payable
Subtotal deferred tax assets
Total deferred tax assets
Net deferred tax assets

Feb. 28, 2021
11
11
11
11

-22-

15
15
15
15

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, 2020Feb. 28, 2021
Statutory tax rate
31.46%
31.46%
Adjustments:
Deductible cash distributions(31.45%)(31.44%)
Other
0.04%
0.03%
Actual effective income tax rate
0.05%
0.04%

(Notes Concerning Equity Earnings of Affiliate Companies)
For the periods from Mar. 1, 2020, to Aug. 31, 2020, and from Sept. 1, 2020, to Feb. 28, 2021
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, 2020, to Aug. 31, 2020, and from Sept. 1, 2020, to Feb. 28, 2021
Not applicable
2.

Transactions and Account Balances with Affiliates
For the periods from Mar. 1, 2020, to Aug. 31, 2020, and from Sept. 1, 2020, to Feb. 28, 2021
Not applicable

3.

Transactions and Account Balances with Companies under Common Control
For the periods from Mar. 1, 2020, to Aug. 31, 2020, and from Sept. 1, 2020, to Feb. 28, 2021
Not applicable

4.

Transaction and Account Balances with Board of Directors and Individual Unitholders
For the periods from Mar. 1, 2020, to Aug. 31, 2020, and from Sept. 1, 2020, to Feb. 28, 2021
Not applicable(Notes Concerning Asset Retirement Obligations)
For the periods ended Aug. 31, 2020 and Feb. 28, 2021
Not applicable(Notes Concerning Rental Properties)
MEL owns logistics facilities for leasing for the purpose of earning rental income. The book value, changes during thereporting 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, 2020 to
Sept. 1, 2020 toAug. 31, 2020Feb. 28, 2021

Book value (Note 1)
Balance at the beginning of the period

113,023,624

112,466,230

Changes during the period (Note 2)(557,394)

28,209,193

Balance at the end of the period

112,466,230

140,675,424

Fair value at the end of the period (Note 3)
123,615,000
155,900,000(Note 1) Book value is calculated by deducting accumulated depreciation from acquisition cost.
(Note 2) The increase for the fiscal period ended Aug. 31, 2020 was primarily a result of the recognition of CAPEX which amounted
47,053 thousand yen. The decrease was primarily a result of the recognition of depreciation, which amounted to 604,448
thousand yen. The increase for the fiscal period ended Feb. 28, 2021 was primarily a result of acquiring new properties for a
total of 28,865,490 thousand yen. The decrease was primarily a result of the recognition of depreciation, which amounted to773,496 thousand yen.
(Note 3) The fair value at the end of the period is determined based on appraised value provided by independent real estateappraisers.

-23-

Income and loss in connection with investment and rental properties are disclosed in “Notes Concerning Statementsof 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, 2020, to Aug. 31, 2020
(1) Information by Products and Services
Description of this information is not stated herein as operating revenues generated from external customers for asingle product and service have exceeded 90% of total operating revenues on the statement of income and retained
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, 2020, to Feb. 28, 2021
(1) Information by Products and Services
Description of this information is not stated herein as operating revenues generated from external customers for asingle product and service have exceeded 90 % of total operating revenues on the statement of income and retained
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.

-24-

(Notes Concerning Per Unit Information)

Yen

For the fiscal period from
Mar. 1, 2020 toAug. 31, 2020
Net assets per unit

For the fiscal period from
Sept. 1, 2020 toFeb. 28, 2021

266,987

285,972

Net income per unit
5,410
5,958
(Note 1) Net income per unit is calculated by dividing net income for the period by the weighted average number of investments
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, 2020 to
Sept. 1, 2020 toAug. 31, 2020Feb. 28, 2021
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)

1,654,690

2,073,136--

1,654,690

2,073,136

305,815

347,929(Notes Concerning Significant Subsequent Events)
1. Issuance of New Investment Units
MEL issued new investment units based on the resolution made by the board of directors on Feb. 18, 2021
and Mar. 1, 2021 and the payment was completed on Mar. 5, 2021 and Apr. 6, 2021 for the issuance of new
investment units through public offering and third-party allotment, respectively.
<Issuance of New Investment Units through Public Offering>Number of units issued and outstanding: 41,000 units
Issue price: 403,650 yen per unit
Total amount issued: 16,549,650,000 yen
Issue amount: 390,402 yen per unit
Net proceeds: 16,006,482,000 yen
Payment date
: Mar. 5, 2021
<Issuance of New Investments Units through the Third-Party Allotment>
Number of units issued and outstanding: 1,898 units
Issue amount: 390,402 yen per unit
Net proceeds: 740,982,996 yen
Payment date
: Apr. 6, 2021
Allotee: SMBC Nikko Securities Inc.
2. Issuance of Investment Corporation Bonds
MEL decided to issue Green Bonds on Apr. 8, 2021 (payment date: Apr. 14, 2021) based on an amendmentof shelf registration statement announced in the press release “MEL Files Amendment to Shelf Registration
Statement for Issuance of Green Bonds” dated Jan. 18, 2021 and per the blanket resolution approved at theboard of directors’ meeting held on Apr. 7, 2021. .
Name
Mitsubishi Estate Logistics REIT Investment Corporation 1st Series Unsecured Bonds(Ranking pari passu among Specified investment corporation bonds) (Green Bonds)
Total Issue Amount 2,000 million yen
Interest Rate
0.700% per annum
Redemption Date
Apr. 14, 2036
Credit Rating
AA- (JCR)
Collateral andNeither collateral nor guarantee is provided for Green Bonds, and no asset has beenguarantee
particularly secured for the Green Bonds.
Use of Proceeds
The proceeds were allocated to the prepayment of a portion of the short-term loans (total
amount 2,000 million yen)-25-

(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. 28, 2021 are as follows:
Date

Type of Issue

July 14, 2016

Private placement
for incorporation

Sept. 28, 2016

Unitholders’ Capital(Thousands of yen)(Note 1)
Increase /Total
Decrease

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

Note

200,000

200,000

2,000

2,000

(Note 2)

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)

2,007,200

53,685,400

8,000

214,000(Note 6)

(120,910)

53,564,490-

214,000(Note 7)

7,216,429

60,780,919

30,300244,300(Note 8)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

79,388,677

57,150302,965(Note 12)925,366

80,314,044

2,850

305,815(Note 13)(146,014)

80,168,030-

305,815(Note 14)

(174,008)

79,994,021-

305,815(Note 15)

16,898,058

96,892,079

40,500346,315(Note 16)

801,927

97,694,006

1,922

348,237(Note 17)

(181,042)

97,512,964-

348,237(Note 18)

Oct. 10, 2017
May 21, 2018
Sept. 10, 2018
Oct. 11, 2018
Nov. 19, 2018
May 21, 2019
Oct. 7, 2019Nov. 7, 2019Nov. 18, 2019
May 20, 2020
Sep. 1, 2020
Sep. 30, 2020
Nov. 20, 2020

Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus CashDistributions(return on capital)

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 250,900yen) 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.

-26-

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.
15. Cash distributions for the fiscal period ended Feb. 2020 in the amount of 569 yen per unit as return of capital. It was
decided on Apr. 17, 2020 and started payment on May 20, 2020.
16. New investment units were issued through public offering at an issue price of 431,701 yen (paid-in amount of 417,236
yen) per unit.
17. New investment units were issued through third-party allotment at a paid-in amount of 417,236 yen per unit.
18. Cash distributions for the fiscal period ended Aug. 2020 in the amount of 592 yen per unit as return of capital. It was
decided on Oct. 15, 2020 and started payment on Nov. 20, 2020.

-27-

3. 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

Amount(Millions of yen)

Ninth fiscal period(As of Feb. 28, 2021)
Retained amount
Ratio of total assets(Millions of yen)(%)
(Note 1)64,89942.8
28,83919.0
22,44914.8
18,820
12.4
5,666
3.7
140,675
92.9
10,792
7.1
151,467
100.0

Ninth fiscal period(As of Feb. 28, 2021)

Ratio of total asset(%)

Total liabilities (Note 5)(Note 6)
51,881
34.3
Total net assets (Note 5)
99,586
65.7
Total assets (Note 5)
151,467
100.0
Notes:
1.
The retained amount is the amount allocated in the balance sheet (the book value after depreciation) at the end of the reporting
fiscal period (as of Feb. 28, 2021.)
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. 28, 2021).
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. 28, 2021 are as follows.

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

Property name

Logicross Fukuoka Hisayama

Hisayama,
Kasuya, Fukuoka

5,770

4.1

5,552

6,870

Sept. 14, 2017

Logicross Atsugi

Atsugi, Kanagawa

8,440

5.9

8,382

9,190

Sept. 3, 2018

Logicross Kobe Sanda

Kobe, Hyogo

3,900

2.7

3,875

4,220

Sept. 3, 2018

Logicross Osaka (Note 5)
Logicross Nagoya Kasadera(Note 5)

Osaka, Osaka

5,874

4.1

5,930

6,000

Sept. 1, 2020

Nagoya, Aichi

8,705

6.1

8,803

9,780

Sept. 1, 2020

LOGIPORT Sagamihara(Note 6)

Sagamihara,
Kanagawa

21,36415.0

20,85524,000

Sept. 14, 2017

LOGIPORT Hashimoto(Note 7)

Sagamihara,
Kanagawa

18,20012.8

17,813

20,430

Sept. 14, 2017

Osaka, Osaka➀5,682➁4,802
Total:10,484

7.4

10,520Logistics
Facilities LOGIPORT Osaka Taisho(Note 8)OthersLocation

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

➀6,160➁5,390 ➀Oct. 9, 2019
Total: ➁Sept. 1, 2020
11,5506,580 Sept. 29, 2016

MJ Logipark Funabashi 1

Funabashi, Chiba

5,400

3.8

5,259

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

4.7

6,507

7,010

Sept. 14, 2017

MJ Logipark Kazo 1

Kazo, Saitama

1,272

0.9

1,242

1,460

Sept. 14, 2017

MJ Logipark Osaka 1

Osaka, Osaka

6,090

4.3

5,953

6,960

Sept. 14, 2017

MJ Logipark Fukuoka 1

Umi,
Kasuya, Fukuoka

6,130

4.3

5,846

6,460

Sept. 14, 2017

MJ Logipark Tsuchiura 1

Tsuchiura, Ibaraki

3,133

2.2

3,134

3,420

Sept. 2, 2019

MJ Logipark Nishinomiya 1

Nishinomiya, Hyogo

2,483

1.7

2,559

2,660

Oct. 9, 2019

MJ Logipark Kasugai 1

Kasugai, Aichi

13,6709.6

13,645

14,300Oct. 9, 2019

MJ Logipark Kazo 2

Kazo, Saitama

1,637

1.2

1,706

1,720

Sept. 1 2020

Tagajo, Miyagi

7,388

5.2

7,421

7,510

Sept. 1 2020

Sakai, Osaka

5,600

3.9

5,666

5,780

Oct. 9, 2019

MJ Logipark Sendai 1
MJ Industrial Park Sakai(Land)
Total

142,194
100.0 140,675 155,900
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 tosecond decimal place. Thus, the sum of the figures in total may not add up to the figure in the total column.
3.
"Appraisal value” represents the appraisal value as set forth on the relevant study reports by real estate appraisers as of Feb. 28,
2021. 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 Logicross Osaka and Logicross Nagoya Kasadera are shown with the values
corresponding to the co-beneficiary interest ratios (60%).
6.
“Acquisition price” and “Appraisal value” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiaryinterest ratios (49%).
7.
“Acquisition price” and “Appraisal value” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiaryinterest ratios (45%).
8.
“Total Acquisition price” and “Appraisal value” of “LOGIPORT Osaka Taisho” is shown with the values corresponding to the cobeneficiary interest ratios (37.5%). “Acquisition price”, “Appraisal value” and “Acquisition date” are shown with the number on
the top refers to the 20 % co-beneficiary interest acquired on Oct. 9, 2019, and the bottom refers to the 17.5% co-beneficiaryinterest acquired on Sept. 1, 2020.

-29-

(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 area Total leased area(㎡) (Note 1)(㎡) (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

Logicross Osaka (Note 5)

18,176.07

36,619.48(21,971.68)

21,369.94

21,369.94

Sept. 2018

Logicross Nagoya Kasadera(Note 5)33,224.00

72,376.03(43,425.61)

37,373.44

37,373.44

Jan. 2019

LOGIPORT Sagamihara (Note 6)

94,197.27

200,252.53(98,123.73)

88,609.64

88,316.94

Aug. 2013

LOGIPORT Hashimoto (Note 7)

67,746.26

145,809.59(65,614.31)

58,487.96

58,436.88

Jan. 2015

LOGIPORT Osaka Taisho(Note 8)55,929.57

117,045.04(43,891.89)

40,081.57

38,492.07

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 Logipark Kazo 2

11,454.21

7,349.18

7,349.18

7,349.18

Dec. 1998

MJ Logipark Sendai 1

19,877.94

36,854.27

39,098.87

39,098.87

Mar. 2009

MJ Industrial Park Sakai (Land)87,476.71-

87,476.71

87,476.71-

594,107.74

915,444.09(616,368.64)

675,733.83

673,800.55

-

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. Figures in parentheses for “Logicross Osaka “ “Logicross Nagoya Kasadera“ “LOGIPORT Sagamihara” “LOGIPORT
Hashimoto” and “LOGIPORT Osaka Taisho” are stated corresponding to each co-beneficiary interest (60%, 60%, 49%, 45% and37.5%). “Total” are the sum of total floor area of each property owned taking into account the co-beneficiary interest of each
property. Each figure is rounded to the first decimal place2.
“Total leasable area” equals to the gross leasable space in each property or property in trust as of Feb. 28, 2021, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to the nearest
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.

-30-

3.
4.
5.
6.
7.
8.

“Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Feb. 28, 2021, 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.
“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.
“Total leasable area” and “Total leased area” of “Logicross Osaka “ and “Logicross Nagoya Kasadera“ are shown with the values
corresponding to the co-beneficiary interest ratios (60%).
“Total leasable area” and “Total leased area” of LOGIPORT Sagamihara is shown with the values corresponding to the cobeneficiary interest ratios (49%).
“Total leasable area” and “Total leased area” of LOGIPORT Hashimoto is shown with the values corresponding to the cobeneficiary interest ratios (45%).
“Total leasable area” and “Total leased area” of LOGIPORT Osaka Taisho is shown with the values corresponding to the cobeneficiary interest ratios (37.5%).

-31-

(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)
term (Years)
yen)(Note 7)(Note 8, 9)Not
Not
Mitsubishi Estate
4.0
2
disclosed
disclosed
Co., Ltd.
(1.2)(Note 10)(Note 10)Not
Not
MITAKA SOKO
10.0
1
disclosed
disclosed(6.1)
Co., Ltd.
(Note 10)(Note 10)
Not
Not
Fresh Creator
30.0
1
disclosed
disclosed(26.3)
Co., Ltd.
(Note 10)(Note 10)
Not
Not
Not
2 e-LogiT co Ltd
disclosed
disclosed
disclosed(Note 10)(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

Logicross Osaka(Note 11)

21,369.94

21,369.94

100.0

Logicross Nagoya
Kasadera (Note 11)

37,373.44

37,373.44

100.0

10 YAGAMI Co., LTD

563

240

6.7
(4.8)

LOGIPORT Sagamihara(Note 12)88,609.64

88,316.94

99.7

18 S･V･D Co., Ltd.

1,282

299

7.2
(2.9)

LOGIPORT Hashimoto(Note 13)58,487.96

58,436.88

99.9

15

KDDI
Corporation

966

238

6.1
(3.6)

LOGIPORT Osaka Taisho(Note 14)40,081.57

38,492.07

96.0

SBS Toshiba
10 Logistics
Corporation

559

134

5.7
(3.4)

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.

MJ Logipark Osaka 1

39,082.95

39,082.95

100.0

1 Sankyu Inc.

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.

Not
disclosed(Note 10)Not
disclosed(Note 10)
396

179

Not
disclosed(Note 10)Not
disclosed(Note 10)
3.0
(1.2)

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 Logipark Kazo 2

7,349.18

7,349.18

100.0

1MS JAPAN
Co.,Ltd.

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)Not
disclosed(Note 10)

424

188

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

8,102

2,778

Others

MJ Logipark Sendai 1

39,098.87

39,098.87

100.0

Toho
Transportation
3and Warehouse
Co., Ltd.

MJ Industrial Park Sakai(Land)

87,476.71

87,476.71

100.0

1

IHI Infrastructure
Systems Co., Ltd

Total (Average)

675,733.83

673,800.55

99.7

77

－

-32-

20.0
(17.4)
10.0
(8.1)
5.1
(2.7)
10.0
(8.8)
3.5
(1.6)
Not
disclosed(Note 10)
8.9
(5.5)

Notes:1. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Feb. 28, 2021, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to the nearest
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. 28, 2021, based on
the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. “Occupancy” is as of Feb. 28, 2021, 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 leasablearea for the relevant properties. Figures are rounded to the first decimal place.
4. “Number of tenants” is based on the lease agreements with tenants for each property or property in trust as of Feb.28, 2021.
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.
5. “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. 28, 2021
6. “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. 28, 2021. However,if there are different provisions for monthly rent (including common area expenses) depending on the time period in each leaseagreement for each property or property in trust as of Feb. 28, 2021, the annualized amount of rent will be calculated based on themonthly rent (including common area expenses) for Feb. 2021 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 of Feb. 28, 2021 shall not be included.
7. “Security deposit” represent the sum of the outstanding amounts of leasehold/security deposits (the sum of the outstanding
amounts of leasehold/security deposit 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. 28, 2021. However, if there are different provisions for thesum of outstanding leasehold/security deposit depending on the time period in each lease agreement for each property or
property in trust, the amount of tenant leasehold/security deposit for Feb. 2021 shown in said lease agreement is indicated.
8. “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. 28, 2021, by the rent and figures are rounded to the first decimal place.
9. “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. 28, 2021, by the rent and figures are rounded to the first decimal
place.
10. Not disclosed as the tenant’s consent has not been obtained.
11. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of “Logicross Osaka” and “Logicross Nagoya
Kasadera” are shown with the values corresponding to the co-beneficiary interest ratios (60%).
12. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Sagamihara is shown with the values
corresponding to the co-beneficiary interest ratios (49%).
13. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of “Logicross Osaka” and “Logicross Nagoya
Kasadera” are shown with the values corresponding to the co-beneficiary interest ratios (60%).
14. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Hashimoto is shown with the values
corresponding to the co-beneficiary interest ratios (45%).
15. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Osaka Taisho is shown with thevalues corresponding to the co-beneficiary interest ratios (37.5%).

-33-

(iv) Overview of Appraisal Reports (as of Feb. 28, 2021)
Return priceCategory

Property
nameLogicross
Fukuoka
Hisayama
LogicrossAtsugi
Logicross
Kobe Sanda

Logicross
Osaka(Note 6)
Logicross
NagoyaKasadera(Note 6)
LOGIPORT
Sagamihara(Note 7)

Logistics
Facilities

LOGIPORT
Hashimoto(Note 8)LOGIPORT
Osaka
Taisho(Note 9)Appraiser

Tanizawa
Sogo
Appraisal
Co., Ltd.
Tanizawa
Sogo
Appraisal
Co., Ltd.
Tanizawa
Sogo
Appraisal
Co., Ltd.

Feb. 28, 2021

6,870

6,550

6,810

4.7

6,890

4.6, 4.8(Note 3)

4.9

325

5.6

Feb. 28, 2021

9,190

9,220

9,290

4.1

9,140

4.1, 4.2(Note 4)

4.3

381

4.5

Feb. 28, 2021

4,220

3,910

4,250

4.6

4,200

4.5,4.6(Note 5)

4.8

197

5.1

Japan Real
EstateFeb. 28, 2021
Institute

6,000

5,892

6,120

4.1

5,904

3.9

4.3

252

4.3

Japan Real
EstateFeb. 28, 2021
Institute

9,780

9,600

9,900

4.3

9,660

4.1

4.5

427

4.9

24,00016,50023,900

4.1

24,000

3.9

4.3

996

4.7

20,430,19,71020,745

4.0

20,115

3.8

4.2

831

4.6

11,55010,912

11,737

4.1

11,362

3.9

4.3

485

4.6

Feb. 28, 2021

6,580

3,170

6,590

4.9

6,560

4.1

5.3

352

6.5

Feb. 28, 2021

7,010

7,180

7,110

4.2

6,910

4.0

4.4

302

4.5

Feb. 28, 2021

1,460

1,300

1,480

4.8

1,440

4.6

5.0

72

5.7

Feb. 28, 2021

6,960

5,820

7,020

4.3

6,940

4.4

4.5

312

5.1

Feb. 28, 2021

6,460

4,560

6,520

4.8

6,390

4.6

5.0

327

5.3

Feb. 28, 2021

3,420

2,890

3,460

4.8

3,380

4.6

5.0

165

5.3

Feb. 28, 2021

2,660

2,780

2,720

4.8

2,630

4.5, 4.7(Note 10)

4.9

141

5.7

Feb. 28, 2021

14,30012,80014,7004.4

14,1004.4, 4.5(Note 11)

4.6

658

4.8

DAIWA
REAL
ESTATE
Feb. 28, 2021
APPRAISAL
CorporationJapan Real
EstateFeb. 28, 2021
InstituteJapan Real
EstateFeb. 28, 2021
InstituteJapan Real
EstateInstituteJapan RealMJ Logipark
EstateAtsugi 1
InstituteJapan RealMJ Logipark
EstateKazo 1
InstituteTanizawa
MJ Logipark Sogo
Osaka 1
Appraisal
Co., Ltd.
Japan RealMJ Logipark
EstateFukuoka 1
InstituteJapan RealMJ Logipark
EstateTsuchiura 1
InstituteTanizawa
MJ Logipark
Sogo
Nishinomiya
Appraisal
1
Co., Ltd.
Tanizawa
MJ Logipark Sogo
Kasugai 1
Appraisal
Co., Ltd.
MJ Logipark
Funabashi 1

Appraisal
value
date

Direct capitalization
Integrated
DCF method
methodAppraisal value based
Appraisal Appraisal
Value basedon costvalue
Value based
NOI
NOI Yield (%)
on
directDirectTerminal(Millions of method
on DCF(Note
1)(Note 2)
Discount capitaliz(Millions of capitalization capitalizati method
yen)
ation
method
on
rate
rate
(%)
yen)
(Millions ofrate (%)(Millions of
(%)
yen)
yen)

-34-

Return priceCategory

Property
nameAppraiser

Appraisal
value
date

MJ
Logipark
Kazo 2

Tanizawa
Sogo
Appraisal
Co., Ltd.

Feb. 28, 2021

1,720

1,630

1,810

4.3

1,680

4.4

4.5

82

5.0

Japan Real
EstateFeb. 28, 2021
Institute

7,510

5,190

7,610

4.8

7,400

4.4

4.8

382

5.2

MJ Industrial Japan RealPark Sakai
EstateFeb. 28, 2021
(Land)
Institute

5,780

-

5,840

3.7

5,710

3.5

3.8

214

3.8

155,900

29,614

157,612-

154,411

-

-

6,910

4.9

MJ
Logipark
Sendai 1
OthersDirect capitalization
Integrated
DCF method
methodAppraisal value based
Appraisal Appraisal
Value
based
on costvalue
Value based
NOI
NOI Yield (%)
on direct
DirectTerminal(Millions of method
on DCF(Note 1)
(Note 2)
capitalization
capitalizati
Discount
capitaliz(Millions ofyen)methodmethodon raterate (%) ation
yen)(Millions ofrate (%)(Millions of
(%)
yen)
yen)

Total

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 from first year to fifth year as 4.6% and sixth year and thereafteras 4.8%.
4. The discount rate for Logicross Atsugi is assessed first to sixth year as 4.1% and seventh and thereafter as 4.2%.
5. The discount rate for Logicross Kobe Sanda is assessed first to sixth year as 4.5% and seventh to eleventh as 4.6%.
6. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of Logicross Osaka and Logicross Nagoya Kasadera is shown with the values corresponding to the co-beneficiaryinterest ratios (60%), respectively.
7. “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 co-beneficiary interest ratios (49%).
8. “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 co-beneficiary interest ratios (45%).
9. “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 co-beneficiary interest ratios (37.5%).
10. The discount rate for MJ Logipark Nishinomiya 1 is assessed first to eighth year as 4.5% and ninth and thereafter as 4.7%.
11. The discount rate for MJ Logipark Kasugai 1 is assessed first to third year as 4.4% and fourth and thereafter as 4.5%.

-35-

(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. 28, 2021.
Annual rent (Millions of yen)
(Note 1)
1,282
966

Property name
LOGIPORT Sagamihara (Note 3)
LOGIPORT Hashimoto (Note 4)

Percentage of rent(%) (Note 2)
15.8%
11.9%

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. 28, 2021.
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. 28, 2021, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Feb. 2021 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. 28, 2021 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 co-beneficiary interest ratios (49%).
4. “Annual rent” of LOGIPORT Hashimoto is shown with the values corresponding to the co-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. 28, 2021.

Tenant Name

IHI
Infrastructure
Systems Co.,Ltd

Annual rent
Leased Percentage Lease
Percentage(Millions ofarea (㎡) of area (%) expirationof 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)

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

13.0

Not
disclosed(Note 4)

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. 28, 2021, 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
the first decimal place.
4. Not disclosed as the tenant’s consent has not been obtained.

-36-

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

Category
Logistics facilities
Others
Total

Acquisition price (Millions of yen)
(Note 1)18
119

Investment Ratio (%)(Note 2)

136,5945,600
142,194

96.1
3.9
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)>
Number ofproperties

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

8
5
2
3
18
Number ofproperties

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

Total floor area(㎡)
(Note 2)452,492.39
219,604.88
130,612.51
112,734.31
915,444.09

Ratio (%)
49.4
24.0
14.3
12.3
100.0

Acquisition price(Millions of yen)

Investment
ratio (%)

66,09934,431
22,375
19,288142,194

46.5
24.2
15.7
13.6
100.0

8
6
2
3
19

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)
Number of
Property age
properties(Note 2)Less than 5 years
5 years or more and 10 years
10 years or more
Total

6
5
7
18

Total floor area(㎡)
327,052.16
425,465.35
162,926.58
915,444.09

Ratio (%)
35.7
46.5
17.8
100.0

Acquisition price(Millions of yen)

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. 28, 2021.

-37-

51,074
55,12030,400136,594

Investment
ratio (%)
37.4
40.4
22.3
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
2
6
10
18

Total floor area
Acquisition price Investment
Ratio (%)(㎡)
(Millions of yen)ratio (%)
14,951.24
1.6
2,909
2.1
118,261.78
12.9
30,00922.0
782,231.07
85.4
103,67675.9
915,444.09
100.0
136,594100.0

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)
3,304
242
2,553
2,001
8,102

Ratio (%)
40.8
3.0
31.5
24.7
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. 28, 2021, 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. 28, 2021.
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. 28, 2021, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Feb. 2021 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. 28, 2021 shall not be included. Same applies below (vii) Property Distribution.
3. Logicross Osaka, Logicross Nagoya Kasadera, LOGIPORT Sagamihara, LOGIPORT Hashimoto and LOGIPORT Osaka Taisho isshown with the values corresponding to the co-beneficiary interest ratios (60%, 60%,49%, 45% and 37.5%). 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 (%)
1,151
692
2,081
3,172
1,004
8,102

14.2
8.5
25.7
39.2
12.4
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. 28, 2021, 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.

-38-

(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)

PurposePlanned period

MJ Logipark Funabashi 1(Funabashi, Chiba)
MJ Logipark Kazo 1(Kazo, Saitama)
MJ Logipark Nishinomiya 1(Nishinomiya, Hyogo)

Repair work ofoffice building
Repair work ofelevator
Repair work of
LED lighting

From Mar. 2021
to Aug. 2021
From Nov. 2021 toFeb. 2022
From Aug. 2021 toAug. 2021

Estimated construction cost (Note)
Total
Paid during theamount reporting period

Total amountalready paid

62

-

-

13

-

-

27

-

-

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

b. Capital expenditure incurred for the reporting fiscal period
MEL conducted construction work worth 192 million yen in the reporting fiscal period which is a sum of capital
expenditures of 117 million yen and repair and maintenance expenses of 75 million yen.
c. Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans

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)
Ninth fiscal
periodFifthfiscal period

Sixth fiscal
periodSeventh fiscal
periodSept. 1, 2018 toFeb. 28, 2019

Mar. 1, 2019 toAug. 31, 2019

Sept. 1, 2019 toFeb. 29, 2020

177,543

238,887

297,841

376,229

448,139

61,34458,95478,38871,910106,629

-

-

-

-

-

238,887

297,841

376,229

448,139554,768-39-

Eighth fiscal
periodMar. 1, 2020 to Sept. 1, 2020 toAug. 31, 2020Feb. 28, 2021

(x) Overview of Property Leasing and Status of Operating Income
Ninth fiscal period from Sept. 1, 2020, to Feb. 28, 2021
(Units: Thousands of yen)

Property name

Logicross
Fukuoka
Hisayama

LogicrossAtsugi

Logicross
Kobe Sanda

Logicross
Osaka

Logicross
NagoyaKasadera

Operating days

181 days

181 days

181 days

181 days

181 days(A) Property related revenues

300,245

Property revenues
Other property related
revenues

281,768(B) Property related expenses

90,747

Facility management fee

23,958Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

18,476

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

15
437
3,556

Utilities cost

14,622Custodian fee

135

Other expenses

2,082(C) Depreciation

43,801

34,72816,19831,81345,938(D) Property related income(=A-B)

88,038

158,934

83,702

112,095

209,498(E) NOI (=C+D)

131,839

193,662

99,901

143,909

255,436

Property name

LOGIPORT
Sagamihara

LOGIPORT
Hashimoto

LOGIPORT
Osaka Taisho

MJ Logipark
Funabashi 1

MJ Logipark
Atsugi 1

Operating days

181 days

181 days

181 days

181 days

181 days

Not disclosed(Note)(A) Property related revenues

689,103

507,063

286,196

Property revenues
Other property related
revenues

640,761474,740

272,766

48,34132,322

13,429(A) Property related expenses

251,714

184,690

91,720

Facility management fee

30,66621,16911,500Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

57,05143,459981

715

17,811 Not disclosed(Note)
548

6,359

8,008

2,480

Utilities cost

28,382

19,497

9,441

Custodian fee

61

56

37

11,214901

909(B) Depreciation

116,995

90,882

48,98939,91333,168(C) Property related income(=A-B)

437,388322,373

194,476

109,463

118,471(D) NOI (=C+D)

554,384

413,255

243,465

149,377

151,639

Other expenses

Note: Not disclosed as the tenant’s consent has not been obtained.

-40-

(Units: Thousands of yen)
Property name

MJ Logipark
Kazo 1

MJ Logipark
Osaka 1

MJ Logipark
Fukuoka 1

MJ Logipark
Tsuchiura 1

MJ Logipark
Nishinomiya 1

Operating days

181 days

181 days

181 days

181 days

181 days

14,119 Not disclosed(Note)
395

Not disclosed(A) Property related revenues

212,012

Property revenues
Other property related
revenues

198,128(A) Property related expenses

112,905

13,884

Facility management fee
Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

10,457
Not disclosed Not disclosed(Note)(Note)(Note)

17380

Utilities cost

8,788

Custodian fee

240

Other expenses

1,139(B) Depreciation

10,42338,39560,383

12,89412,086(C) Property related income(=A-B)

26,334

100,537

99,10770.11947,507(D) NOI (=C+D)

36,757

138,932

159,490

83,01359,593

Property name

MJ Logipark
Kasugai 1

MJ Logipark
Kazo 2

MJ Logipark
Sendai1

MJ Industrial
Park Sakai(Land)

Operating days

181 days

181 days

181 days

181 days

Total(A) Property related revenues

232,765

4,203,412

Property revenues
Other property related
revenues

211,518

4,002,266

21,246201,145

91,033

1,497,479

14,200185,972(A) Property related
expenses
Facility management fee
Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed Not disclosed(Note)(Note)

Not disclosed(Note)

313,276

405

6,412

2,599

75,570Utilities cost

11,626115,299

Custodian fee

290

3,140

Other expenses

2,249

24,312(B) Depreciation

69,168

7,603

59,611-

773,496(C) Property related income(=A-B)

247,404

31,419141,731

107,3292,705,932(D) NOI (=C+D)

317,02239,022

201,393

107,3293,479,429

Note: Not disclosed as the tenant’s consent has not been obtained.

-41-