Security Code 3471

11th Fiscal Period（Fiscal Period Ended January 31, 2022）

Investor Presentation
Material
Mitsui Fudosan Logistics Park Inc.
(MFLP-REIT)
March 15, 2022

0

MEMO

1

Table of Contents
1. Highlights

4. Appendix…… P04•Our Portfolio…… P381-1 External Growth…… P05•Individual Property Income Statement…… P40

1-2 Internal Growth…… P07for 11th Fiscal Period

1-3 Initiatives for ESG…… P08…… P41

1-4 Financial Strategy…… P09•Appraisal Summary for the End of 11th Fiscal
Period

1-5 DPU Growth…… P10•Statement of Income and Balance Sheet…… P42…… P43…… P11•(Reference) Distribution after Adjustment of
Temporary Effects•External Evaluation and Certifications…… P44•Investment Unit Price Trends/Status ofUnitholders…… P45• Mitsui Fudosan’s Major Development /…… P46

Operating Highlights

1-6 11th Fiscal Period (Ended January 2022)
P/L

2. Growth Strategy of MFLP-REIT
Basic Strategy and Four Roadmaps
2-1 External Growth Strategy

……

P14

……

P16

(Expansion of Asset Size)

Operation Track Record

2-2 Internal Growth Strategy

……

P23

2-3 Initiatives for ESG

……

P25

Notes on Matters Stated in This Document

2-4 Financial Strategy

……

P29

Disclaimer

2-5 DPU Growth

……

P30

3. Market Overview
3-1 Market Overview…… P322

1. Highlights

3

1 Operating Highlights
Accelerating steady growth through strategic partnership with Mitsui Fudosan
1-1 External Growth• Acquired 3 MFLP properties for 44.6 billion yen
Expanded asset size to 342.2 billion yen• Portfolio quality improved with top 5 property ratio * declining
to 39.5% and average building age * falling to 5.3 years• Pipeline of properties covered by the “Right of first look andpreferential negotiation rights agreement”:

11 properties (1,070,000 m²)

1-2 Internal Growth• Demand for logistics facilities in greater Tokyo/Osaka areas
remains firm, with strong needs from EC and other sectors
11th FP occupancy rate * remains high at 100%
• Some vacancies expected during the 12th FP, but actively
focused on raising occupancy to 100% by the end of the
12th FP

1-3 ESG Initiatives• Acquired GRESB 4-star rating• Declared support for TCFD , implemented qualitative
scenario analysis as well
• Issued ESG report; set environmental KPI at the same time
• Green building certifications for logistics facilities to rise to96.3%*1; ZEB certifications * to be 54.1%*1

1-4 Financial Strategy• LTV* forecasts for the 12th and 13th FP are 36.6％ and35.8％ respectively
Projected acquisition capacity* for the 13th FP (LTV at 50%)
is 95.0 billion yen• Expanded the lender formation by adding 5 new financial
institutions, bringing the total number of lenders to 27

1-5 DPU* GrowthDistributions per unit (DPU)••••

11th FP actual 7,895 yen (+ 8.4 % versus 9th FP actual)
12th FP forecast 8,352 yen (+ 6.9 % versus 10th FP actual)
13th FP forecast 8,396 yen (+ 6.4 % versus 11th FP actual)
Average annual growth rate since IPO of 8.3 %(including forecasts for 12th and 13th FP)

NAV per unit *• After acquisition of properties acquired in the 12th FP
430,465 yen• Average annual growth rate since IPO of 9.4 %* For further details, please refer to [Highlights] [Properties defined in “Right of first look and preferential negotiation rights agreement”] [ZEB certification] in the Notes on Matters Stated in this Document on p.47-48*1 Figures are calculated based on the total gross floor area after acquisition of properties in the 12th FP(excluding MFIPs).

4

1-1. External Growth [1] - Properties acquired in the 12th FP -Improve portfolio quality with 3 MFLP properties acquired through 5th PO
Properties acquired in the 12th FP

About the 5th follow-on offering

MFLP Yachiyo Katsutadai

Offering format

Global offering

Launch date

January 11, 2022

Pricing date

January 19, 2022

Demand ratio

Approx. 16x（of which, overseas demand：
approx. 20x )Total amount issued

18.5 billion yen

Total number of units
issuedPO: 32,380 units
OA: 1,620 units

Slope

Asset size

MFLP Osaka I

Box

Slope

Location

Yachiyo-shi, Chiba

Hiratsuka-shi, Kanagawa

Osaka-shi, Osaka

Acquisition price

18,000 million yen

12,700 million yen

13,900 million yen

Adjusted forecast
NOI yield*

4.5%

4.6%

4.0%

Gross floor area*

74,624 ㎡

48,141 ㎡

43,919 ㎡(January 31, 2022)

Properties acquiredin the 12th FP

21 properties /1,260,000 ㎡

3 properties /160,000 ㎡

After the acquisition ofproperties acquired in
the 12th FP
24 properties /1,420,000 ㎡

297.6 billion yen

44.6 billion yen

342.2 billion yen

End of 11th fiscal period

No. of properties/Gross floor area

MFLP Hiratsuka II

Average annual growth rate since listing* +31.6%
Average adjusted forecast
NOI yield

4.9%

4.4%

4.8%

Average building age

5.8 years

1.7 years

5.3 years

Top 5 property ratio

44.6%

Further improvement ofstability

39.5%

Green building certification
track record

95.9%

100％

96.3%

* For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.47-48

51-1. External Growth [2]Solid progress toward achieving medium-term asset size target of 500 billion yen
Construction completed
7 properties 820,000 ㎡

Properties covered by
the “Right of first lookand preferential
negotiation rights
agreement”

11 properties

LeasedLeasedLeasedMFLP Hino (75%)

Under construction
4 properties 250,000 ㎡

MFLP Funabashi II

LeasedNEW

MFLP Yokohama Kohoku MFLP Osaka Katano

LeasedMFLP Ichikawa
Shiohama II (60%)
NEW

LeasedMFLP Tomei Ayase (50%)
NEW

1,070,000 ㎡
MFLP Tosu

MFLP Funabashi III

MFLP Tokorozawa

3 properties acquired in the 12th FP 44.6 billion yen

MFLP-REIT’s
asset size

MFLP Yachiyo
Katsutadai

MFLP Hiratsuka II

MFLP Osaka I

297.6
billion yen
2,976億円

24 properties
342.2 billion yen
282.4
billionyen
2,050億円

1,420,000 ㎡

January 31,
2018

MFLP Yatomi Kisosaki

Medium-term
asset size target
500.0 billion yen

Acquisition fromproperties coveredby the “Right of firstlook and preferential
negotiation rights
agreement”

342.2
billion yen

Properties
acquiredin the 12th FP

Aim for continuous
external growth156.7
1,567億円
billion yen
78.7
billionyen
755億円

SG Realty MFLP
Fukuoka Kasuya (50%)

Further expansionof properties
covered by the“Right of first lookand preferential
negotiation rights
agreement”

103.5
billionyen
983億円

January 31,
2019

January 31,
2020

January 31,
2021

January 31,
2022

After the acquisition ofproperties acquired in
the 12th FP

6

1-2. Internal Growth

Despite the pandemic, occupancy remained high, supported by a strong market
Increase in demand for floor space in logistics facilities■ Market conditions of Greater Tokyo area

■ Market conditions of Greater Osaka area

Forecast(thousand m2)
4,000

10%

■ Market conditions of Greater Nagoya area

Forecast(thousand m2)
1,500

Forecast(thousand m2)
1,000

10%

10%
4.9%

3,000
1,000
2,000

5%

5%

500

0%
2023 （year ）

0

5%

2.9%

500
1.7%

1,000

1.0%

0.6%
0
2018

2019
New supply

2020

2021

2022

New demand

0.6%
0

0%
2023 （year ）Vacancy rate

2018

（thousand ㎡）

2020

2021

2022

2018

■■■2020（12months）■■■1H 2021（6months）

350
300

2020

2021

0%
2023 （year ）2022

Status of occupancy rate and lease signings■ Occupancy rates
Occupancy rate assumed in earnings forecasts

(%)

400

2019

Source: CBRE K.K. (including forecast figures) (February 2022)* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000 m2 or more.

Vacancy rate(logistics facilities 1 year old or older)

Higher demand from many sectors■ Greater Tokyo: contracted floor space by sector*

2019

100
90

100

99.1

100

100

end of 6th FP(Jul. 31,2019)

end of 7th FP(Jan. 31,2020)

end of 8th FP(Jul. 31,
2020)

100

100

100

100

80

250

end of 9th FP end of 10th FP end of 11th FP(Jan. 31,
(Jul. 31,
(Jan. 31,
2021)
2021)
2022)

Mar. 31,2022(forecast)200

May 31,
2022(forecast)end of 12th FP(Jul. 31,2022)
(forecast)

Sep. 31,2022(forecast)

Nov. 30, 2022 end of 13th FP(forecast)(Jan. 31,2023)
(forecast)■ Lease signings*1

150
100

0.7%

11th FP
expiries

50

EC

RetailWholesale

Manifacturing* Graph created by Asset Management Company, based on data supplied by CBRE K.K.
For further details, please refer to [Greater Tokyo: contracted floor space by sector] in
the Notes on Matters Stated in this Document on p.47-48.

89.3%
90.2%

10.0%
9.8%

316,476㎡

6.0%

12th FP
expiries

35.9%

13th FP
expiries

50.0%
50.0%

58.1%

81,847㎡

Signed

10.4%
39.5%
39.5%

Spoken for

Unsigned

79,162㎡*1 Figures reflect leased floor space based on leases in force as of February 1, 2022.
Figures for 11th FP are based on leased floor space for all leases which expired during the period.

7

1-3. ESG Initiatives

Further strengthening of ESG initiatives
Participation in GRESB Real Estate
Assessment
MFLP-REIT was awarded a GRESB 4-star rating (on 5-star scale)in the 2021 “Green Star” GRESB real estate assessment.

Support for the Task Force on Climate-related
Financial Disclosures (TCFD)
The Asset Management Company has endorsed the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD), which works topromote disclosure of risks and opportunities faced by companies in relation toclimate change. The Asset Management Company is also active in the TCFD
Consortium, which brings together Japanese companies who have endorsed the
TCFD recommendations.

■Implementation of qualitative scenario analysis
The Asset Management Company has identified risks and opportunities,
conducted scenario analyses based on a 1.5-2°C scenario and a 4°C scenario,
and assessed the financial impact of climate-related risks and opportunities.

The environmental KPIs
In order to promote efforts to achieve a decarbonised society more than everbefore, MFLP-REIT has published environmental KPIs for items that areconsidered to be of interest to stakeholders. We will further strengthen thequality of our portfolio as we show progress on each of these items throughESG reporting.

CO2 emissions intensity（base year: 2016）

LED lighting adoption
ratio
Owner-managed portion:

Reduction of at least 30% by 2030
（Owner-managed portion:
100％ reduction)

Water usage intensity（base year: 2016）

100％ by 2023
Tenant-managed portion:

100％ by 2030

Green lease adoption
ratio

To be capped at abovebase-year level

At least 75％ by 2025
At least 90％ by 2030

Waste recycling ratio

Green Building
certification

Publication of ESG Report
The ESG Report has been published to give stakeholders a better understandingof initiatives of MFLP-REIT and the Asset Management Company’s approach to
ESG.

Objectives Under Consideration■Inclusion in major indices such as ESG Indices■Quantitative scenario analysis

At least 70% by 2030

Logistics facilities:
at least 95％
Portfolio: at least 90％8

1 -4. Financial Strategy
LTV management and stable financial operation
LTV Management
End of 11th fiscal period(January 31, 2022)

Borrowings related to theacquisition of properties
acquired in the 12th FP

End of 12th fiscal period

End of 13th fiscal period(July 31, 2022) (Forecast)(January 31, 2023) (Forecast)

Total interest-bearing debt

97.4 billion yen

28.6 billion yen

123.9 billion yen

119.5 billion yen

LTV

33.1%

-

36.6%

35.8%

LTV-based capacity for
acquisitions (LTV to 50%)

100.0 billion yen-

90.0 billion yen

95.0 billion yen

Average interest rate

0.34%

0.41%

-

-

7.8 years

8.9 years

8.1 years

8.2 years

100%

75.5%

95.8%

99.3%

Average time to maturity(long-term only)

Fixed interest ratio(long-term only)

Credit rating

AA(Stable) * as of the date of this material(Credit rating agency: JCR)

Interest-bearing debt maturity ladder and lender formation*(million yen)

■Existing borrowings ■ Borrowings related to the 5th follow-on offering ■Investment corporation bonds

10,0008,000

Commitment line 8,000 million yen
7,000

2,400

Sumitomo Life Insurance Company

1,200

300

The Chiba Bank

3,200
4,000
5,600
2,000

3,400
1,900

7,800

7,500

6,600
5,100
4,000
3,000

5,600

5,100

Resona BankThe Yamanashi Chuo BankThe Chugoku Bank
The Hyakugo Bank
Daishi Hokuetsu Bank
The 77 Bank
Nippon Life Insurance Company

3,600
6,000

5,700

5,100

6,700

6,800

2,100

Sumitomo Mitsui Banking Corporation

After theacquisition of properties
acquired in the 12th FP

Total lenders: 27
Total borrowings

Development Bank of Japan

7,300

6,700

Shinsei Bank

4,900

3,600

The Keiyo Bank
New lenders
The Iyo BankThe Yamagata Bank
The Bank of Kyoto
Investment Corporation Bonds

Momiji BankThe Joyo Bank

Mitsui Sumitomo
Insurance¥126.0 bn

3,000

FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending
2022/7 2023/1 2023/7 2024/1 2024/7 2025/1 2025/7 2026/1 2026/7 2027/1 2027/7 2028/1 2028/7 2029/1 2029/7 2030/1 2030/7 2031/1 2031/7 2032/1 2032/7* Reflects debt maturities after the borrowings related to the acquisition of properties acquired in the 12th FP

Sumitomo Mitsui
Trust Bank

(Includes Investment
Corporation Bonds)

The Yamaguchi Bank
8000Mizuho Bank

Mizuho Trust &Banking

The Bank of Fukuoka

The Norinchukin Bank
Shinkin Central BankMUFG Bank

9

1-5. DPU Growth

Maintained high DPU growth through 5th PO; aiming for continuous DPU growth
Achieve high DPU growth on full-period contributions
from MFLP Ibaraki, MFLP Kawaguchi I and MFIP Inzai II
and on continued stable management

Expect to achieve continuous DPU growth through acquisitionsof MFLP Yachiyo Katsutadai, MFLP Hiratsuka II and MFLP Osaka I,
and by maintaining stable operations

+6.4%

+6.9%

8,352yen

8,396yen+8.4%
In response to a
decline in leasing
earnings, implemented
a one-off distribution
in excess of earnings

7,895yen

7,816yen

7,830yen
7,772yen

MFLP Yachiyo
Katsutadai
other 2 properties
Acquisition price44.6 billion yen

MFIP Inzai II
Acquisition price15.15 billion yen

7,283yenDebt

5th PO

7,217yen

第9期実Forecast*1 Actual
績 Jan. 2021 (9th FP)
FP ended
No. ofproperties

20

Forecast annual growth rate (per year) (include 12th-13th fiscal period) +8.3%

第10期実Forecast*2 Actual
績 Jul. 2021(10th FP)
FP ended
21

第11期実Forecast*3 Actual
績 Jan. 2021(11th FP)
FP ended

第12期予*4 Forecast*5
Forecast*4 Forecast*5
Forecast第13期予想 Jul. 2021(12th FP) FP ending Jan. 想FP ending2021(13th FP)

21

24

24

*1 Announced on Sep.16, 2020 *2 Announced on Mar.12, 2021 *3 Announced on Sep.14, 2021 *4 Announced on Jan.11, 2022 *5 Announced on Mar.15, 2022

Expansion of NAV per unit
(January 31, 2017)

After the acquisition of properties
acquired in 12th FP

273,318 yen

430,465 yen

End of 1st fiscal period
NAV per unit

Average annual growth rate of NAV per unit from January 31, 2017 +9.4%

Aim to further stabilize theunit price as well as
achieving better liquidity

10

1

-6.

11th Fiscal Period (Ended January 2022) P/L
10th fiscal
periodActual(a)

11th fiscal
periodForecast(Sep. 14.
2021)

11th fiscal
periodActual(b)

Operating revenue

9,267

9,477

9,502

235

Operating expenses

5,332

5,565

5,531

198

2,344

2,377

2,372

28

3,935

3,912

3,971

36

Non-operating income

3

‐

1

-2

Non-operating expenses

229

225

230

1

Ordinary income

3,708

3,686

3,742

33

Profit (Net income)

3,708

3,685

3,741

33

(Unit: million yen)

Of which, depreciation(depreciation related to properties only)

Operating income

Difference(b)-(a)Main breakdown of difference

Operating revenue
Increase due to full-period operation of properties acquired in
the 10th FP (MFIP Inzai II)+95

Decrease in photovoltaic power generation facilities rent
revenue-68

Increase in utilities charge (excluding properties acquired in the 10th FP)

+82
+124

Increase in other operating revenue

Operating expenses
Increase due to full-period operation of properties acquiredin the 10th FP (MFIP Inzai II)+24

Increase in utilities expenses+59(excluding properties acquired in the 10th FP)

Increase in repair expenses(excluding properties acquired in the 10th FP)

Increase in asset management fees
Increase in other operating expenses

Distribution per unit
(DPU) (yen)

7,816

7,830

7,895

79

Of which,
Distribution of earnings per unit (EPU) (yen)

6,842

6,800

6,902

60

Of which,
Distribution in excess of earnings per unit (yen)

974

1,030

993

19

23.5%

22.7%

-

Average occupancy rate during the period*1

100%

99.8%

99.7%

-

*1 Simple average of the occupancy rates as of the end of each month in each fiscal period-2Non-operating expenses
Interest expenses
Other non-operating expenses

22.5%

+21
+25

Non-operating income
Absence of Compensation income for damage

Distribution in excess of earnings expressed
as a percentage of depreciation

+67

+9
-8

11

1

-6.

12th Fiscal Period (Ending July 2022) Earnings Forecast
11th fiscal
periodActual(a)

12th fiscal
periodForecast(b)

Difference(b)-(a)Operating revenue

9,502

10,410908

Operating revenue

Operating expenses

5,531

6,114

583

Increase due to properties acquired in the 12th FP

2,372

2,701

328

3,971

4,296

324

(Unit: million yen)

Of which, depreciation(depreciation related to properties only)

Operating income
Non-operating income

1

-

-1

13th period
Forecast

Main breakdown of difference

10,763+1,224(MFLP Yachiyo Katsutadai, Hiratsuka II and Osaka I)

Increase in photovoltaic power generation facilities
rent revenue (excluding properties acquired in the 12th FP)+63

Decrease in other operating revenue-380

Ordinary income

230

294

64

3,742

4,001

259

3,741

4,000

259

2,704

+460

(MFLP Yachiyo Katsutadai, Hiratsuka II and Osaka I)

Expensing of fixed asset tax and city planning tax for properties
acquired in the 10th FP (MFIP Inzai II)+28

Decrease in repair expenses (excluding properties acquired in the 12th FP)

-71
+62
+103

Increase in asset management fees

Profit (Net income)

*1

4,490

Operating expenses
Increase due to properties acquired in the 12th FP

Non-operating expenses

6,273

Increase in other operating expenses

284
4,205
4,204

Non-operating expenses
Distribution per unit
(DPU) (yen)

7,895

8,352

457

Of which,
Distribution of earnings per unit (EPU) (yen)

6,902

6,945

43

Of which,
Distribution in excess of earnings per unit (yen)

993

1,407

414

Distribution in excess of earnings expressed
as a percentage of depreciation

22.7%

30.0%

‐

Average occupancy rate during the period

99.7%

96.7%

-

+55
+8

8,396

Of this amount, 209 yen is a one-off distribution in excess of earnings.

7,300

Interest expenses
Other non-operating expenses<Reference>
Formula for distribution per unit based on FFO*
FFO＝

Source of funds for
distribution
Distribution per unit

Profit (Net income)

＋

＝

① FFO

＝

②Source of funds for
distribution

Depreciation, etc.

…①

×

70%

…②

÷

Number of investment
units issued andoutstanding* For further details, please refer to [Method of calculation of cash
distribution based on FFO] in the Notes on Matters Stated in this Document
on p.47-48.
*1 Excludes the fixed asset tax and city planning tax (130 million yen) for theproperties acquired in the 12th FP (MFLP Yachiyo Katsutadai, Hiratsuka II
and Osaka I).

1,096
23.3%

99.8%

12

2. Basic Strategy of MFLP-REIT

13

2

Our Basic Strategy and Four Roadmaps

Maximize unitholder value through a strategic partnership with Mitsui Fudosan

Mitsui Fudosan
Logistics Park Inc.

External Growth

Own

Develop

Strategic
Partnership
Internal Growth

Strong development capabilities as
a comprehensive developer
Superior land sourcing ability
enabled by CRE strategies

Superior leasing capability
leveraging Group’s network

ManageStable Management

Maximize unitholder value

Evolutional solutions-based
asset management

Expansion of logistics
facilities business

14

2

1

Our Basic Strategy and Four Roadmaps

3

Leveraging growth in asset size as main driver of steady DPU growthFiscal 2016 - 2020

Fiscal 2021

1st – 10th fiscal periods

18 properties

9 properties

75.5

11th fiscal period

4th follow-on
offering
September 2020

Asset Size

・・・・・

billion yen

205.0

Fiscal 2022 and after

Acquisition withborrowed funds, etc.
March 2021

20 properties

21 properties

282.4

297.6

billion yen

12th fiscal period

13th fiscal period and after

5th follow-on
offering
January 2022 24 properties

Aim to acquire properties
Aim for further
in a continuous manner,expansion of
focused on high-quality
properties covered by “Right billion yen asset sizeof first look and preferential
Medium-term
negotiation rights agreement” asset size target

500.0

342.2
billion yen

billion yen

billion yen

Average annual growth rate since listing +31.6%

LTV
End of 8th
fiscal period

End of 1st
fiscal period

24.5％

・・・・・

LTV-based capacity for
acquisitions(LTV to 50%)

End of 9th
fiscal period

End of 10th
fiscal period

End of 11th
fiscal period（July 31, 2021） （January 31, 2022）（January 31, 2023）

33.6％

33.1％

36.6％

35.8％

82.0
billion yen

109.0
billion yen

97.0
billion yen

100.0billion yen

90.0
billion yen

95.0
billion yen

11th fiscal period

12th fiscal period（Forecast）

7,895

8,352

8th fiscal period

・・・・・（July 31, 2022）

31.0％

10th fiscal period

5,198

End of 13th
fiscal period(Forecast)

30.2％

Distribution per unit(DPU)

1st fiscal period

End of 12th
fiscal period(Forecast)

6,977
yen

9th fiscal period

7,283

7,816
yen

yen

yen

Fund procurement and LTV
management optimal for sizeof acquired assets

40% to 50％
Medium- tolong-term
stabilized LTV level

Continuous DPU growththrough leverage effects, etc.

Growthpotential

13th fiscal period（Forecast）

8,396
yen

yen

yen
Forecast annual growth rate (per year) (include 12th-13th fiscal period) +8.3%

Market Cap*
End of 8th
fiscal period
End of 1st
fiscal period

76.1

・・・・・

254.4

End of 9th
fiscal period

284.0

billion yen

billion yen

352,401 yen

389,732 yen

End of 11th
fiscal period

After 5th
follow-on
offeringbillion yen

306.7

302.4

billion yen

billion yen

407,663 yen

423,819 yen

430,465 yen

End of 10th
fiscal period

332.7

Expansion of market cap
through public offerings, etc.
Inclusion in major indices

Aim forenhancement ofinvestment
liquidity

billion yen
273,318 yen
NAV per unit

Average annual growth rate of NAV per unit from January 31, 2017 +9.4%* For further details, please refer to [Our Basic Strategy and Four Roadmaps] in the Notes on Matters Stated in this Document on p.47-48.

15

2-1. External Growth Strategy (Expansion of Asset Size) 1

Mitsui Fudosan’s logistics facilities business continues to grow: Expanding our partnership
Strategic partnership with Mitsui Fudosan
Leasing capability
leveraging client network

Ability to secure development sites through its
corporate real estate (CRE) strategy
Various
CRE needsof client
firms

Rebuilding of corporate
logistics capabilities

Utilization ofidle land

Global development(Establishment of overseas sites)

Propose CRE
strategies

Solutions-based asset management
End user

Fully leverage the Mitsui Fudosan Group’s
broad client network

Development ofcorporate infrastructure

Improving the efficiency
of operations

MFLP-REIT

Trimming balance sheet(Asset disposal)

Sale of realestate, etc.

Office building
business Approx.
3,000 firms*

Retail facility
business Approx.
2,400 firms*

Strongrelationships withleading 3PL
operators* Source: Disclosed financial results materials of Mitsui Fudosan
for the fiscal year ended March 31, 2021

Develop high-quality properties inprime locations

Challenges facing
logistics firms

Logistics firm Addressing BCP issues, etc.
(3PL operator,
Labor shortages
etc.)
Evolution of solutionsbased asset management

Anticipation of futurerises in delivery costs

Adoption of automation

Operated stably as leasing progresses

Growth image for properties (to be) developed/operated by Mitsui Fudosan*
Cumulative total investment size as of September 2021

47 facilities 610.0 billion yen *Cumulative total investment size as of September 201940facilities 570.0 billion yen *Transition to“Logistics Properties
Business Division”
at Mitsui Fudosan

Mitsui Fudosan
establishedthe Logistics
Properties
Department

Fiscal
2012

Fiscal
2013

Fiscal
2014

Fiscal2015

MFLP-REIT
IPO

Fiscal2016

Fiscal2017

Fiscal2018* For further details, please refer to [Major properties developed/operated by Mitsui Fudosan] in the Notes on Matters Stated in this Document on p.47-48.

Fiscal
2019

Fiscal
2020

Fiscal2021（planned）

Fiscal2022 or after（planned）

16

2 -1. External Growth Strategy (Expansion of Asset Size) 2
Stable growth leveraging the growth potential and extensive pipeline of
Mitsui Fudosan’s logistics facilities business
三井不動産の主要な開発・運用実績
47棟6,100億円
総延床面積400万㎡
Mitsui Fudosan’s major development/operation
track record : 47
facilities 610.0
billion yen 4,000,000 m2 in gross floor area
Properties held by MFLP-REIT and acquired in the 12th FP

Properties covered by “Right of first look andpreferential negotiation rights agreement”

24 properties 1,420,000 m2 342.2 billion yen

11 properties 1,070,000 m2
LeasedCompleted

LeasedCompleted

Properties developed/operatedby Mitsui Fudosan
Construction completionin fiscal 2016

Construction completionin fiscal 2022

Construction completionin fiscal 2023

MFLP Tosu

MFLP Funabashi I

Tokyo Rail Gate EASTMFLP Hiratsuka III

Completed

Construction completionin fiscal 2019

Construction completionin fiscal 2022

Construction completionin fiscal 2023

MFIP Haneda

MFLP Ebina I

MFLP Zama

Construction completionin fiscal 2019

Construction completionin fiscal 2022

Construction completionin fiscal 2024

MFLP Kawasaki I

MFLP Shinkiba I

MFLP Ebina Minami

Construction completionin fiscal 2020

Construction completionin fiscal 2023

LeasedCompleted

75%

MFLP Yokohama
Daikoku

MFLP Atsugi

MFLP Inazawa

MFLP Hiroshima I

MFLP Hino

MFLP Funabashi II
LeasedCompletedacquired in the 12th FP

GLP・MFLP Ichikawa MFLP Kashiwa
Shiohama

MFLP Tsukuba

MFLP Ibaraki

MFLP Yachiyo
Katsutadai

MFLP Yokohama
KohokuLeasedCompleted

MFLP Funabashi III
LeasedCompletedacquired in the 12th FP

MFLP Osaka Katano MFLP Tokorozawa
MFLP Yashio

MFLP Fukuoka I

MFLP Atsugi II

MFLP Kawaguchi I

MFLP Hiratsuka II

Construction completed
820,000 ㎡

acquired in the 12th FP

Construction
completion in
fiscal 2021

NEW

Construction
completion in
fiscal 2022

Anotherdata center1 property

Overseas
1 property
MFLP Hiratsuka

MFLP Sakai

MFIP Inzai

MFLP Osaka I

60%

MFLP Ichikawa
Shiohama II
NEW

50%

SG Realty MFLP
Fukuoka Kasuya

Construction
completion in
fiscal 2022

NEW

MFLP Tachikawa
Tachihi

MFLP Shinkiba II…

MFLP Kuki

Construction
completion in
fiscal 2022

50%

MFLP Funabashi
Nishiura

MFLP Komaki

MFLP Prologis Park
Kawagoe

MFIP Inzai II

MFLP Tomei Ayase

MFLP Yatomi
Kisosaki

Under construction
250,000 ㎡

17

2-1. External Growth Strategy (Expansion of Asset Size) 3 Emphasis on Location

1
3

Build a high quality portfolio by taking advantage of geographical diversification
Greater Tokyo Area

LegendLogistics facilities
properties held by
MFLP-REIT andacquired in the 12thFP
L-XX

Logistics facilities NO.

L-XX

Logistics facilities NO.
acquired in the 12th FP
Industrial real estate*properties held by
MFLP-REIT

I-XX

Industrial real estateNO.
Properties covered
by “Right of first lookand preferential
negotiation rights
agreement”*
Properties developedby Mitsui Fudosan
Mitsui Fudosan’s
strategic area

* For further details, please refer to [Industrial real estate] in the Notes on Matters Stated in this Document on p.47-48.

18

2-1. External Growth Strategy (Expansion of Asset Size) 3 Emphasis on Location

2
3

Build a high quality portfolio by taking advantage of geographical diversification
Greater Nagoya area

Greater Osaka area

Hiroshima area

Kyushu area

■Geographically diversified portfolio◼ Location offering excellent access totransportation nodes

Investment area

Access (distance) to nearest expressway
interchange

Hiroshima area
4.6％

Kyushu area
1.7％
Shuto Expressway
Wangan Line
10.3％

Greater
Nagoya area
7.8％

GreaterTokyo area
and Greater
Osaka area National
Greater
Osaka area
30.6％

86.0％

Route 16
16.4％

Ken-O
Expressway
19.7％

Tokyo-Gaikan
Expressway
8.9％

GreaterTokyo area
55.3％

3 - 5 km
35.9％

5 km ormore
8.3％

Less than 1 km
20.7％

■Location convenient for commuting workers
Access (time) to nearest train station
By bus(20-30 minutes)
2.5％

By bus(20 minutes
or less)
60.5％

Less than
5 km

91.7％
1 - 3 km
35.0％

* The pie charts above are calculated on an acquisition price basis after acquisition of properties in the 12th FP (excluding MFIP properties).

Within walking
distance(20-25 minutes)
2.8％

Within walking
distance/Within
20 min. by bus

97.5％

Within walking
distance(20 minutes
or less)
34.3％

19

2

-1. External Growth Strategy (Expansion of Asset Size) 3 Emphasis on Location

3
3

Superior locations of properties defined in Right of First Look and Preferential
Negotiation Rights Agreement and developed by Mitsui Fudosan
Greater Tokyo area

Greater Osaka area

Population Density（people/k㎡）
0～5,000
5,001～10,000
10,001～* Population distribution data based on Ministry of Land, Infrastructure and Transport’s data on Future Population Estimates by 1 k㎡ (2018 Estimates)202-1. External Growth Strategy (Expansion of Asset Size) 4 Emphasis on Quality

MFLP-REIT concentrates investments in leading-edge logistics facilities. Mitsui Fudosan quality
achieved by applying Mitsui Fudosan’s expertise as a comprehensive developer
Mitsui Fudosan quality■ Basic specifications of leading-edge logistics facilities

Large sites[Gross floor area]

Storage space
Effective ceiling heightAt least 5.5 m

At least 10,000 ㎡
Column spacing
At least 10 m
Floor load tolerance
At least 1.5 tons/m2
MFLP SakaiHigh performance

Disaster prevention[Column span]
At least 10 m
[Effective ceiling height]
At least 5.5 m[Floor load tolerance]

Equipped with• Seismic isolation• Earthquakeresistance• Building Damage
Assessment System,etc.

At least 1.5 tons/㎡■ ＆ Worker
Unmanned store■ ＆ Tenant
Cafeteria

Commuter shuttles

Installation ofseismic isolation

MFLP Sakai

Bicycle sharing

MFLP Kashiwa■Building age*

MFLP Yachiyo Katsutadai

Bench that can be converted
to emergency cooking grill

Solar panels

1-3 years
21.9％

Avg.
building age
5.3 years
3-7 years
48.8％

MFLP Hiroshima I■ ＆ Earth■ ＆ Community
Childcare facilities

MFLP Ibaraki

2over
10 years
6.1％

7-10 years
23.2％
MFLP Yachiyo Katsutadai

Emergency power
generator

LED lights■ Properties developedby Mitsui Fudosan*2

93.9％

MFLP Hino*1*2

MFLP Kawaguchi I

MFLP Yachiyo Katsutadai

MFLP Osaka I

Photos are for illustrative purposes only. Not all MFLP facilities or portfolio assets are necessarily equipped with all of the abovementioned specifications and features.
Figures are calculated based on the total gross floor area after acquisition of properties in the 12th FP, considering the quasi co-ownership interests.

21

2-1. External Growth Strategy (Expansion of Asset Size) 5 Emphasis on Balance

Securing growth and stability by building a balanced portfolio through acquisitionof MFLPs/MFIPs which reflect location characteristics and tenant needs

Rampway MFLP

Multi-tenant type

Shipping needs

Multi

MFLP Prologis
Park Kawagoe

Single

Multi

Multi

MFLP Sakai

MFLP Hino

SingleMulti

MFLP Kawaguchi I

MFLP Hiroshima I

SingleOther*1

Multi

Multi

GLP・MFLP
Ichikawa Shiohama

MFLP Yokohama
Daikoku

Multi

Multi

SingleMulti

SingleMFLP Kuki

MFLP Atsugi

Slope MFLP

% or more

MFLP Yachiyo
Katsutadai

Multi

MFLP Osaka I

SingleMFLP Atsugi II

Multi

MFLP Inazawa

SingleMFLP Komaki

SingleBox MFLP

Single-tenant type

Storage needs

MFLP Hiratsuka IIBTSMFLP Fukuoka I

BTS

MFIP

( Mitsui Fudosan Industrial Park )Mainly long-term BTS type

Data centers, etc.

% or lessIndustrial real estate

Investment ratio:

20

MFLP Ibaraki

SingleLogistics facilities

Investment ratio:

80

Multi

MFIP Inzai II

MFIP Inzai

MFLP Tsukuba

MFLP Hiratsuka

MFLP Yashio■ Investment ratio
by property type*2
Rampway
MFLP
39.6％

MFLP Funabashi
Nishiura

Data center
8.0％

MFLP Kashiwa■ Investment ratio
by tenant type*2

Other*1
2.1％

Box MFLP
16.6％

Slope MFLP
35.9％

*1 “Other” refers to a property for which the classification (multi or single) cannot be disclosed in this material as consent for disclosure has not been obtained from the lessee.
*2 Figures calculated on an acquisition price basis after acquisition of properties in the 12th FP.

BTS 8.0％

Multi
62.5％

Single
27.4％

22

2

-2. Internal Growth Strategy 1

Achieve stable management by leveraging Mitsui Fudosan Group’s platform and client network
Effectively leverage the Mitsui FudosanGroup’s platform and client network forleasing
Occupied by many tenants that havea relationship with Mitsui Fudosan
Lease
agreement
End userOwner of logistics
facility

Logistics
agencyagreement

Lease
agreement
Logistics
firm

End user

Major Specialty store retailer ofPrivate label Apparel
Hitachi Transport System
Metropolitan

Other
MITSUI-SOKO
JA Mitsui Leasing
Tatemono
Higashi Nippon
Express
Rakuten
E-LogiTBic Camera
MISUMI

About

Japan Logistic
Systems

75

MARUBENI LOGISTICS

Tenants*1

MITSUI-SOKO
LOGISTICS(3PL operator, etc.)

Lease agreements

Tenant diversificationKDDI
KOKUBU

Average lease
period8.5 years

Average remaining
lease period

4.4 years

Sagawa Global
Logistics

NIPPON EXPRESS
Nakano ShokaiSungetsu
Sun Toshi Tatemono *1 Number of tenants shown here is total number of leases;
DAIWA Corporation
excludes MFIPs

Staggering of lease expiration dates（thousand ㎡）

Can directly approach logistics firms and end users
regardless of contract type

350

ActualUnsignedNew
Re-signed

Retail facility businessclient network
Approx. 2,400 firms

Strong relationships
with leading 3PL
operators*Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year
ended March 31, 2021

316

23.3%

200
167
150

137

132
116

Office building
businessclient network
Approx. 3,000 firms

Signed

10.0%

300
250

Fully leverage the Mitsui Fudosan Group’s
broad client network

～
639

700
400

66.7%

100

81
96.7%

50

35.9%

48
100%

64.1%

79
63
50.0%

27
50.0%

0
9th FP（21/1）

10th FP（21/7）

11th FP（22/1）

12th FP（22/7）

13th FP（23/1）

14th FP（23/7）

15th FP（24/1）

16th FP（24/7）

17th FP（25/1）

18th FP（25/7）

after
19th FP(26/1)* For the properties to be acquired in the 12 th FP (excluding MFIPs), figures are based on the leasable floor area for leases in force as of February 1, 2022.
96.7
Figures for all periods prior to the 11 th FP reflect the leasable floor area for all leases expiring in the relevant period.
%

23

2

-2. Internal Growth Strategy 2

Evolution of solutions-based asset management by Mitsui Fudosan GroupKey points of asset management plans
End user
MFLP-REIT

Challenges facing logistics
firms

Strengthening capability to propose specialized
solutions that respond to the needs of tenants■ MFLP ICT LABO 2.0

Improving the efficiency of operations

Logistics firm

（3PL operator, etc.）

Specific examples ofsolutions-based asset
management by
Mitsui Fudosan Group

Addressing BCP
issuesLabor shortages

Anticipation of futurerises in delivery costs

Adopting automation• Consulting service for leading-edge ICT-related products toimprove efficiency, save labor, etc.
• Consulting support to help tenant companies secure staff• Matching of 3PL operators and end users• Establishment of comfortable working environment for
tenants’ onsite employees• Showroom enabled for ICT equipment demos
Fully automated logistics system on display, using
leading-edge ICT technology encompassing the fullprocess from receiving merchandise to dispatch• Provide specialized automation/labor-saving
solutions for tenants and prospective tenants toaddress labor shortages and other serious
challenges for the logistics industry.

Examples of equipment on display

Services leveraging leading-edge ICT technologies
Support tenants’ efforts to hire and promote ESG initiatives by focusing
on providing services that enhance operational efficiency within thefacility and worker satisfaction.
ICT: Improve operating efficiency
Wide-angle lens camera

Beacon

ICT: Improve worker services
Onlinereservation

Telephonereservation

Cloud
reservation
mgmt. system
Facial recognition

LED lightingwith motion sensor

Fitness

Visualizationof usage at
peak times

Autonomous
forklift

Receiving,dispatching

Dual-arm packing& unpacking robot

Packing

Autonomous
storage system

Storing■ Business alliance with Hacobu
Mitsui Fudosan has formed a business alliance with Hacobu
Corporation, which operates a logistics information platformusing big data, with the aim of working together to solve theproblems facing the logistics industry.

Cafeteria

Examples of services provided (truck reservation service)* Photos are for illustrative purposes only.

Washroom/
powderroom

By allowing drivers to register their arrival time and shipping information in advance via
smartphone the system enables efficient loading and unloading of cargo in thewarehouse and reduces the driver's waiting time.

24

2-3. ESG Initiatives 1 / Sharing the Mitsui Fudosan Group Management Principles

Contribute to social and economic development and conserving the environment,
based on Group Vision 「」Mitsui Fudosan Group’s ESG Principles
Under the principles of coexisting in harmony with society, linking diverse
values, and achieving a sustainable society that are represented by the Group
logo “ ” the Mitsui Fudosan Group holds “” as its Group Visionand is committed to make contributions to social and economic development,
and to global environmental preservation.
The “” principle reflects our awareness of the fact that the urban
development by the Mitsui Fudosan Group has to be in tune with the planet,and our vision of a society that enriches both people and the planet.

Sharing of the ESG Principles with Mitsui FudosanGroup
As a member of the Mitsui Fudosan Group, the Asset Management Company
shares the Mitsui Fudosan Group ESG Principles, and by building a highly
energy-efficient portfolio centered on MFLP facilities (leading-edge logistics
facilities with Mitsui Fudosan quality), will promote contributing to ourstakeholders in order to achieve a sustainable society.

Share
Mitsui FudosanGroup’s ESG
management
principles

Develop a highly
energy efficient
portfolio, focusedon MFLP

Consideration
for stakeholders tobuild a sustainable
society

MFLR efforts to promote ESG
MFLP-REIT Management Co., Ltd, the asset management company of Mitsui
Fudosan Logistics Park Investment Corporation, has established the "ESG
(Environment, Society, Governance) Policy" in November 2017, and isaddressing on ESG issues in collaboration with Mitsui Fudosan.

■Organizational chart
Sustainability Promotion
Subcommittees

Sustainability Promotion Committee【Members】

Instruct

・Chairperson: President & CEO

Investment Criteria Scrutiny
Subcommittee(chief sustainability officer)

LM Cooperation Subcommittee

・Standing member: Chief Investment Officer
Disclosure Subcommittee(sustainability executive officer)
・Standing member: Chief Finance Officer

Submitagendaitems

・Secretariat

Human Capital Subcommittee■ESG-related policies and rules
Policy on Environment, Society and Governance (ESG)
Consideration andresponse to theenvironment

Consideration andresponse to society

Consideration andresponse togovernance

Climate Change Resilience Policy

Sustainability Promotion Framework Rules

Greenhouse Gas Emissions Reduction Policy

Sustainability Promotion Committee Rules

Energy Efficiency Policy

Operational manual for EMS (Energy
Management System)

Sustainable Procurement Policy

25

2-3. ESG Initiatives 2 -for Environment

Environment

Proactively secure green building certifications, conservation efforts
Eco-friendly green buildings

Monitoring of environmental KPIs

Proactively securing green building certifications. After 12th FP acquisitions,
96.3% of logistics facilities had green certifications and 54.1% of logistics
facilities had ZEB certifications.
Certified Green
Buildings in logistics
facilities

ZEB certificationacquired in logistics
facilities

96.3％

54.1％

Latest performance and progress against environmental KPIs generally
on track. We aim to achieve this by promoting initiatives to reduce
environmental impact in the future.
2016（base year）

2020

0.017

0.014

Owner-managed portion （Scope1・2）

0.060

0.044

Tenant-managed portion（Scope3）

0.014

0.012

0.07

0.07

Targets

2020

70％

67.3％

■ CO2 emissions intensity (t-CO₂/㎡)
Whole building（Scope1・2・3）■ Water usage intensity (㎥/㎡)
Logistics facilities■ Waste recycling rate

Initiatives for reducing environmental load
MFLP-REIT has implemented efforts to reduce CO₂ emissions throughenergy saving while promoting efficient use of energy at its portfolio assets bymeasures like introducing LED lights and installing roof-top solar panels.

■Installing roof-top solar panels
Solar panel annual power
generation(2021 Actual)18.9 GWh*（12 properties）

MFLP Ibaraki

Logistics facilities* Above data excludes data centers (industrial real estate) as a result of NDAs in place with tenants.
Industrial real estate is excluded from disclosures.

■ LED lighting adoption ratio

Targets

As of Feb. 2, 2022

Owner-managed portion

100％

89.1％*1

Tenant-managed portion

100％

81.9％*190％

22.0％*2

logistics facilities

95％

96.3％

portfolio

90％

92.5％

■ Green leases adoption ratio
portfolio■ Green Building certification* For further details, please refer to [Solar panel annual power generation] in the Notes on Matters Stated in this Document on p.47-48.
*1 Calculations based on total floor area of MFLP-REIT’s property holdings after acquisitions in the 12th FP, adjusted to reflect quasi co-ownership interests.
*2 Calculations based on leasable floor area of MFLP-REIT’s property holdings after acquisitions in the 12th FP, adjusted to reflect quasi co-ownership interests.

26

2-3. ESG Initiatives 3 -for Social

SocialOngoing initiatives for our many stakeholders
Initiatives for stakeholders
Utilizing the know-how of Mitsui Fudosan, the sponsor, the properties owned by MFLP-REIT promote initiatives to offer a healthy, pleasant and safe environment outof consideration for stakeholders such as tenants, facility users, the surrounding environment and local communities.

On-site sales of fresh fruit and produce

Rest area

Cafeteria

Measures to prevent the spread of
COVID-19

Emergency power generator

Ota Marché: Collaboration with produce wholesaler
Fruit and produce markets targeted at tenant’s facility staff were held at
MFLP Yokohama Daikoku and MFLP Hino. Fruits and vegetables weresourced from the Ota Market by produce wholesaler. Tenant employees
were able to make purchases during their breaks.

Cooperation with support group for the disabled (Group Happy Smile)

Hand sanitizer

Contactless buttons

Group Happy Smile
An organization that plans and provides a place where people
with disabilities can sell independently produced products, as well
as a place where they can introduce and sell their artwork tosociety.

Catering food truck

Art Exhibition

Childcare facilities

Disaster response readiness* Photos are for illustrative purposes only. Not all MFLP facilities or portfolio assets are necessarily equipped withall of the abovementioned specifications and features.

27

2

Governance-3. ESG Initiatives 4 - for GovernanceInitiatives for governance: Taking unitholders’ interests into consideration
MFLP-REIT and the Asset Management Company are working to establish proper governance through the following measures in order to build a solid relationship oftrust that aligns interests of unitholders with those of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

Rules concerning conflicts of interest in asset
management

Asset management with emphasis placed onrelationship of trust with unitholders

The acquisition and transfer of assets by MFLP-REIT from related parties are
decided by the Asset Management Company via a transparent decision-making
process.

Approval by the Chief Compliance Officer
Deliberation and resolution by the Compliance Committee*2

Examination and approval by the Investment Committee

Instruction to cancel or amend details

Draft by the Investment Team

Approval by MFLP-REIT’s Board of Directors

Deliberation and resolution by the Management
Committee

Instruction to cancel
or amend details

Submission of the acquisition plan by the Chief
Investment Officer to the Management Committee

Reporting to the Board of Directors and MFLP-REIT*1 The above chart shows the decision-making flow when a transaction involves a related party, which requires the approvalof MFLP-REIT’s Board of Directors under Article 201-2 of the Act on Investment Trusts and Investment Corporations.
*2 If a transaction falls below the threshold prescribed in Article 201-2 of the Act on Investment Trusts and Investment
Corporations for significance defined therein, the approval of MFLP-REIT’s Board of Directors shall be omitted.

■Asset management fee structure consistent with theinterests of unitholders
Our aim is to align the interests of the Asset Manager with those of unitholders.
Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

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

Asset management fee III

Pre-tax earnings (before deduction of asset managementfees) × Pre-tax EPU (before deduction of asset
management fees) × 0.001% (maximum)■Mitsui Fudosan’s investment in MFLP-REIT
Mitsui Fudosan has a 5.0% stake in MFLP-REIT (as of end of February, 2022) .
Accepting a certain level of capital investment leads to the alignment of theinterests of MFLP-REIT’s unitholders and Mitsui Fudosan, and enables the
pursuit of greater mutual interests in asset management.

■Adoption of cumulative investment unit ownership program
Ownership of the investment units by employees of the Asset Management
Company through the program elevates the motivation of employees toimprove the performance of MFLP-REIT, with the aim of enhancing its
medium- to long-term unitholder value.

Timely and proper information disclosure andensuring transparency
MFLP-REIT strives to make timely and proper disclosure of informationnecessary for unitholders to make investment decisions. With regard to
disclosure, MFLP-REIT focuses on prompt and transparent information
disclosure in a fair and equitable manner, and, in addition to financial information,
also discloses non-financial information related to ESG.

28

2

-4. Financial Strategy

Stable financial management with diversified financial institutions
Lender formation
Started transactions with 5 new lenders at the borrowing of acquisition of properties in the 12th FP, expanding the number of lenders to 27.
The Joyo BankThe Chugoku Bank
The Hyakugo Bank
Daishi Hokuetsu Bank

The Bank of Kyoto
Investment Corporation Bonds

Nippon Life Insurance Company
Sumitomo Life Insurance Company

Sumitomo Mitsui Banking
Corporation

New borrowing associated withthe 5th follow-on offering

The Chiba Bank

Total interest-bearing debt

The 77 Bank(of which, short-term)
End of 11th FP

Shinsei Bank

28.6 bn(7.0 bn)

Resona BankThe Yamanashi Chuo Bank

Lenders(of which, new lenders)Mizuho Bank

Avg. interest rate

0.41％

Avg. time to maturity(long-term only)

8.9 years

Sumitomo Mitsui TrustBankThe Bank of Fukuoka¥126.0 bn

Mitsui Sumitomo
Insurance

Mizuho Bank

Sumitomo Mitsui
Trust Bank

(Includes Investment
Corporation Bonds)

The Yamaguchi Bank

Shinkin Central Bank

The Norinchukin Bank

Total lenders: 27
Total borrowings

Development Bank of Japan
Shinsei Bank

(Includes Investment
Corporation Bonds)

Mizuho Trust &Banking

After the 5th
follow-on offering

The Chiba Bank

22

（5）

¥97.4 bn

The Yamaguchi Bank

Sumitomo Mitsui Banking
Corporation

The Chugoku Bank
The Hyakugo Bank
Daishi Hokuetsu Bank
The 77 Bank
Nippon Life Insurance Company
Sumitomo Life Insurance Company

MUFG Bank

Total lenders: 22
Total borrowings

Mitsui Sumitomo Insurance
Development Bank of JapanThe Keiyo Bank
New lenders
The Iyo BankThe Yamagata Bank
The Bank of Kyoto
Investment Corporation Bonds

Momiji BankThe Joyo BankThe Yamanashi Chuo Bank

Mizuho Trust &Banking

The Bank of Fukuoka

The Norinchukin Bank
Shinkin Central BankMUFG Bank

Efficient cash management
Based on the characteristics of logistics facilities, such as the ratio of building value to land value being typically high, MFLP-REIT intends to make cash distributions, including
distributions in excess of earnings, on an ongoing basis each fiscal period from the perspective of securing stable distribution levels while managing cash efficiently. In addition, incases where the distribution amount for distributions per unit is expected to temporarily decline by a certain degree due to such factors as the procurement of funds through theissuance of new investment units, etc., one-off distributions in excess of retained earnings may be executed in order to standardize the amount of the distributions per unit.

■ Diagram of cash distribution based on FFO
Leasing business
expenses, SG&A,
etc.

■ Key points of cash distribution in excess of earnings

Pay distributions based on a
threshold of approx. 70% of
FFO

FFO

Rental revenue

Depreciation
Profit(Net income)*1

Distributions inexcess of earnings

Distributions ofearnings

Level of distribution
For the time being, we intend to pay distributions (including distributions in excess of earnings)
calculated at an amount equivalent to approximately 70% of FFO (excluding gain or loss onsale of real estate, etc.) for the relevant fiscal period on an ongoing basis, in principle.

Securing long-term building maintenance funds

Targeted
at 70%*1 Gain or loss on sale of real estate, etc. is not included in “Profit (Net income)” in the above chart.
*2 Appraisal LTV ratio = Interest-bearing debt ÷ (Total assets - Book value of portfolio real estate, etc.
+ Appraisal value)

Distributions in excess of earnings will be paid to the extent that an amount can be retainedthat is more than double the six-month average of capital expenditures stated in theengineering report for each operating period.

Securing financial stability
Distributions in excess of earnings will not be made if appraisal LTV ratio*2 exceeds 60% foreach operating period.

29

2-5. DPU Growth

Continue to achieve high DPU growth through external growth
Aim for continuous external growth, focused on high-quality properties covered by “Right of first look andpreferential negotiation rights agreement”

Expansion of Asset Size

MFLP Komaki

MFLP Hino
2 other properties

MFLP Tsukuba

MFLP Inazawa
5 other properties

MFLP Sakai
2 other properties

MFLP Ibaraki
MFLP Kawaguchi I

MFIP Inzai II

MFLP Yachiyo Katsutadai
2 other properties

Debt

1st PODebt

2nd PO

3rd PO

4th PODebt

5th PO

Fund procurement

New investment units and LTV management optimal for size of acquired assets
24
21

36.6%

20
33.6%

18
16
12
10

No. ofproperties

13

8,352

8,396

31.0%
30.2%

29.1%

7,816

7,895

27.3%

26.8%

9

33.1%

35.8%

7,283
23.9%

LTV

21.6%

22.5%

(7,300 )

6,977
6,496

6,584

(6,842)(6,902)FP ended Jul. 2021
(10th FP)FP ended Jan. 2022
(11th FP)(6,945)(6,604)

DPU (yen)

6,105( ) EPU (yen)

5,563
5,198

(6,200)

5,832

5,346

(5,783)(5,811)(5,905)(5,497)(5,288)(5,142)(4,955)

FP ended Jan. 2017
(1st FP)FP ended Jul. 2017
(2nd FP)FP ended Jan. 2018
(3rd FP)FP ended Jul. 2018
(4th FP)FP ended Jan. 2019
(5th FP)FP ended Jul. 2019
(6th FP)FP ended Jan. 2020
(7th FP)FP ended Jul. 2020
(8th FP)FP ended Jan. 2021
(9th FP)FP ending Jul. 2022
(12th FP)
Forecast

FP ending Jan. 2023
(13th FP)
Forecast

30

3. Market Overview

31

3-1. Market Overview

Market Overview 1
Supply-demand balance and vacancy rate
(1 of 3)
Greater Tokyo Area
3,500

：Vacancy rate 0–5%

：Submarket areas：New demand in 2020 and 2021

：Vacancy rate 5–10%：Mitsui Fudosan’s
strategic areas：Vacancy rate 10%–=100 thousand ㎡*As of the end of December 2021

Forecast

thousand m2：New supply in 2020 and 2021

15%

3,000

12%
2,500

Tohoku/Ken-O
Expwy area

2,000

9%

1,500

6%

1,000
3%

National Route16 area
Kan-Etsu/KenO Expwy area
Tokyo-Gaikan
Expwy area

500
0

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023（year）

Narita area

thousand m2

1,200

18%
Hachioji area

900
Chiba
inland area

12%
600
6%

300

1.7%

Kanagawa
inland area

0.6%

0

0%
Q1

Q2

Q3

Q4

2020

New supply

Q1

Q2

Q3

Q4

2021
Greater Tokyo
Bay area
New demand

Vacancy rate

Vacancy rate(logistics facilities 1 year
old or older)

Source: CBRE K.K. (including forecast figures) February 2022)* The survey is of rental logistics facilities that are held by real estate investment companies,
real estate development companies, etc. and have total floor area of 5,000 m2 or more.

32

3-1. Market Overview

Market Overview 1
Supply-demand balance and vacancy rate
(2 of 3)
Greater Osaka Area

：New supply in 2020 and 2021

：Vacancy rate 0–5%

：Submarket areas：New demand in 2020 and 2021

：Vacancy rate 5–10%：Mitsui Fudosan’s
strategic areas：Vacancy rate 10%–=100 thousand ㎡*As of the end of December 2021

Forecast

thousand m2

2,000

15%

12%

1,500

Other area

9%
Osaka inland area

1,000
6%
500

0

3%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023（year）

thousand m2

750

18%

500

12%
Osaka Bay/
Kobe area

250

6%
1.0%
0.6%

0

0%
Q1

Q2

Q3

Q4

2020

New supply

Q1

Q2

Q3

Q4

2021

New demand

Vacancy rate

Vacancy rate(logistics facilities 1 year
old or older)

Source: CBRE K.K. (including forecast figures) (February 2022)* The survey is of rental logistics facilities that are held by real estate investment companies, real estate development companies, etc. and have total floor area of 5,000 m2 or more.

33

3-1. Market Overview

Market Overview 1
Supply-demand balance and vacancy rate (3 of 3)
Greater Nagoya Area

New supply

New demand

Kyushu Area

thousand m2

Forecast

1,000

15%

750

Chugoku Area
Forecast

thousand m2
400

15%

0%
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

50

0

2023

thousand m2
200

150

4.9%
50

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

18%

14%

14%
100

Q1

Q2

Q3

2020

Q4

Q1

Q2

Q3

2021

Q4

10%

10%

8%

8%

0%

50

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

thousand m2
100

0.0%
Q1

Q2

Q3

2020

Q4

Q1

Q2

Q3

Q4

16%
14%

75

12%
10%

50

8%
6%

25

4%

2%
0%

（year）

18%

6%
4%

0

2011

12%

4%
2.9%

0%
2010

（year）

16%

6%

0

2023

thousand m2
150

2%
0

2022

16%

12%
100

0%
2010

（year）

18%

10%

5%
100

2010

20%
100

200

0

30%

10%

5%
250

Forecast

thousand m2
200

150

300
10%

500

Mitsui Fudosan’s
strategic areas

Vacancy rate(logistics facilities 1 year
old or older)

Vacancy rate

0.00%
0

Q1

Q2

2021

Source: CBRE K.K. (including forecast figures) (February 2022)* The survey is of rental logistics facilities that are held by real estate investment companies, real estate development companies, etc. and have total floor area of 5,000 m2 or more.

Q3

2020

Q4

Q1

Q2

Q3

Q4

2%
0%

2021

34

3

-1. Market Overview

Market Overview 2
Stock of logistics facilities in Japan*
700

Future demand for
replacement ofaging properties

Leading-edge
logistics facilities
5.1％
Highly scarceleading-edge
logistics facilities

600
40%

million m2

Logistics facilities
40 years old or older
41.7%

500
30%

400
300

20%

200
10%
100
0

Logistics facilities
less than 40 years old
53.2%

50%

0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 （year）(As of December 2020)

Estimate for logistics facilities
築40年以上の推計値
40 years old or older
築40年以上のシェア
Share of logistics facilities

Estimate for logistics facilities
築40年未満の推計値
less than 40 years old
先進的物流施設シェア
Share of leading-edge logistics

40 years old or older

facilities

Leading-edge
先進的物流施設(left axis)
logistics facilities(right axis)* Estimates by CBRE K.K. based on “Building Starts” (Ministry of Land, Infrastructure, Transport and Tourism) and “Summary Report on Prices, etc. of Fixed
Assets” (Ministry of Internal Affairs and Communications). Top left pie chart created by Asset Management Company, based on data the above graph.
For further details, please refer to [About analysis of Japan's logistics facilities stock] in the Notes on Matters Stated in this Document on p.47-48.

Long-term data on construction starts of logistics
facilities (nationwide)

Tenants / End users of logistics facilities
Manufacturing
3%

Over 40 years old
thousand m2

20,000

Other 4%

Logistics 4%Manufacturing
18%

Wholesale 7%

15,000Share by tenantbusiness type10,000

Other 9%

Share byend userbusiness
type

Retail 51%

Retail 17%

0

1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020

5,000

Source: CBRE K.K. (February 2022)（year）* Figures calculated as the sum total of the floor area of structures with “warehouse” as the use category and “steel-framed structure,”“reinforced concrete structure” or “steel-framed reinforced concrete structure” as the structure type.

Logistics 69%

Wholesale 18%

Source: CBRE K.K. (February 2022)* Figures are rounded to the whole number.
* The survey is of rental logistics facilities that are held by real estate investment companies, real estate development
companies, etc. and have total floor area of 5,000 m2 or more as of the end of December 2021.

35

3-1. Market Overview

Market Overview 3
Mounting demand due to 3PL
business and e-commerce market
size expansion
3PL Market : Stable Growth

Broader demand for leading-edge
logistics facilities
Attracting demand from retailers for delivery
centers (Convenience Stores/Drug Stores)

Expansion of the data center
marketPandemic driving increase in data volumes（Gbps）

Avg. annual growth rateduring the pandemic

30,000(hundred million yen)

3.3

35,000Conventional(Nov. 2019 – Nov. 2021)

trillion yen

Net sales

Manufacturing

Store

Wholesaler

Consolidation of scattered logistics bases into a delivery center

36.7%
20,00030,000After
consolidation

25,00010,000
Delivery center

Manufacturing

20,000Store

Integrating Logistics Bases of Manufacturers

Consolidation of separately locatedwarehouses for parts, assembly plants
and warehouses for end products into
one base2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020（year）
Source: Monthly Logistics Business (September 2021)

Expanding E-commerce Market Scale(hundred million yen)
210,000

Scale of E-commerce market
E-commerce ratio

19.3
trillion yen

Afterconsolidation

MFLP

Transport

180,000

8.1%

150,000

6

May 2021

Nov. 2021

May 2020

Nov. 2020

May 2019

Nov. 2019

May 2018

Nov. 2018

May 2017

Nov. 2017

May 2016

Nov. 2016

Source: Ministry of Internal Affairs and Communications “Aggregate Results ofInternet Traffic Volume Estimates (November 2021)”, dated February 2022.

Forecast of operational racks at hyperscaledata centers
Avg. annual
growth rate（%）
9

May 2015

Warehouse
Transport
for endproducts

Retail stores/ Consumers

10,000Transport

Assembly plantNov. 2015

Warehouse for Transportparts

May 2014

Conventional

Nov. 2014

0
15,000Use as a Mixed-Use Logistics Facility（Units）

Leading-edge logistics facilities

120,000(2020-2025 years)

20.5%

90,000Warehouse

Intended use cases include not only
traditional warehouse space, but avariety of other uses

120,000

60,0003
90,00030,000Assembly andprocessing

Research anddevelopment

OfficeShowroom

60,0002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0（year）
Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade and Industry(Announced on July 30, 2021)• Amounts and percentages indicate the scale of B to C market in the E-commerce market.
The basis for the calculation of the e-commerce ratio is limited to merchandise sales.

Other
Product
inspection

Inspection,
maintenance and repair

Photographic
studioCall center

etc…

0
2019
2020
2021
2022
2023
2024
2025
(year)
Source: Fuji Chimera Research Institute , Inc.
‘Overview of Data Center Business Market Research 2021(Market section)’(March 2021)* 2019 is prospective data point; all data points for 2020 and beyond are forecasts)

36

4. Appendix

37

4

Appendix

Our Portfolio (1 of 2)(After acquisition of properties acquired in the 12th FP)
Total acquisition price

Adjusted forecast NOI yield

Appraisal NOI / Appraisal value

Average building age

Occupancy rate

24 properties 342.2 billion yen

4.8 % (after depreciation 3.2 %)4.2 %5.3 years

100 %Logistics
facilities

Appraisalvalue*(million yen)

Adjusted
forecast
NOI yield(%)

Appraisal
NOI yield*(%)

Appraisal
NOI /Appraisalvalue* (%)

Gross floor
area*1(㎡)

Total leasable
floor area* *2(㎡)

Building
age(years)Occupancyrate(%)

Property nameLocation

Acquisition
price(million yen)

L-1

GLP/MFLP Ichikawa Shiohama(50% quasi co-ownership interest)

Ichikawa,
Chiba

15,50018,700

5.0

4.7

3.9

105,019（52,509）50,813

8.0

100

L-2

MFLP Kuki

Kuki, Saitama

12,50015,000

5.8

5.2

4.4

73,15367,925

7.6

100

L-3

MFLP Yokohama Daikoku(50% quasi co-ownership interest)

Yokohama,
Kanagawa

10,100

11,200

5.2

4.9

4.4

100,530（50,265）

47,939

12.8

100

L-4

MFLP Yashio

Yashio,Saitama

9,650

11,700

5.4

5.2

4.3

40,72839,692

7.9

100

L-5

MFLP Atsugi

Aiko,
Kanagawa

7,810

9,740

5.9

5.5

4.4

40,942

40,958

6.9

100

L-6

MFLP Funabashi Nishiura

Funabashi,
Chiba

6,970

8,190

5.3

5.2

4.4

30,94731,034

7.0

100

L-7

MFLP Kashiwa

Kashiwa, Chiba

6,300

7,350

5.4

5.2

4.4

31,242

31,291

6.2

100

L-8

MFLP Sakai

Sakai, Osaka

23,60026,900

5.5

4.9

4.3

125,127

112,148

7.4

100

L-9

MFLP Komaki

Komaki, Aichi

8,260

8,930

3.3

4.7

4.3

40,59740,605

5.0

100

L-10

MFLP Hino(25% quasi co-ownership interest)

Hino, Tokyo

12,533

13,500

4.5

4.2

3.9

205,200（51,300）

46,801

6.3

100

L-11

MFLP Hiratsuka

Hiratsuka,
Kanagawa

7,027

7,920

5.0

4.8

4.3

33,06133,0555.2

100

MFLP Tsukuba

Tsukubamirai,
Ibaraki

37,02737,938

11.6

L-12

8,781

10,700

5.8

5.8

4.8
25,45725,6003.8

Property
Categoryno.

Existing building

Annex building

100

L-13

MFLP Inazawa

Inazawa,
Aichi

16,20017,900

4.8

4.9

4.4

72,88368,922

4.7

100

L-14

MFLP Atsugi II

Isehara,Kanagawa

13,10014,600

4.9

4.6

4.1

48,97648,032

3.8

100* For further details, please refer to [Our portfolio] in the Notes on Matters Stated in this Document on p.47-48.
*1 “Gross floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*2 “Total leasable floor area” figures are the figures after taking into consideration the ownership interest.

38

4

Appendix

Our Portfolio (2 of 2)(After acquisition of properties acquired in the 12th FP)
Category

Logistics
facilities

Propertyno.

Location

Appraisalvalue*(million yen)

Adjusted
forecast
NOI yield(%)

Appraisal
NOI yield*(%)

Appraisal
NOI /Appraisalvalue* (%)

Gross floor
area*1(㎡)

Total leasable
floor area* *2(㎡)

Building
age(years)Occupancy
rate
(%)

L-15

MFLP Fukuoka I

Kasuya,Fukuoka

5,263

5,980

5.6

5.1

4.5

32,19932,216

5.3

100

L-16

MFLP Prologis Park Kawagoe(50% quasi co-ownershipinterest)

Kawagoe,
Saitama

14,80016,350

4.8

4.5

4.1

117,337（58,668）

56,723

3.3

100

L-17

MFLP Hiroshima I

Hiroshima,
Hiroshima

14,48015,700

5.3

5.1

4.7

68,427

66,665

2.4

100

L-18

MFLP Ibaraki

Ibaraki,Osaka

58,90064,400

4.1

4.3

3.9

230,435

208,811

4.4

100

Kawaguchi,
Saitama

18,50019,600

4.3

4.1

3.9

49,838

48,1192.3

100

Yachiyo,Chiba

18,00018,100

4.5

4.3

4.3

74,624

69,8301.4

100

Osaka,
Osaka

13,90013,900

4.0

4.0

4.0

43,91943,8801.5

100

Hiratsuka,
Kanagawa

12,70012,900

4.6

4.3

4.2

48,141

46,5252.3

100

Subtotal or Average-

314,874

349,260

4.8

4.6

4.2

1,675,820（1,360,476）

1,295,531

5.3

100

I-1

MFIP Inzai

Inzai,
Chiba

12,22013,300

5.0

5.0

4.6

40,478Not
Disclosed

7.9

Not
Disclosed

I-2

MFIP Inzai II

Inzai,
Chiba

15,15015,900

4.8

4.8

4.5

27,26830,9061.7

100

Subtotal or Average-

27,37029,200

4.9

4.8

4.5

67,746

Not
Disclosed

5.4

Not
Disclosed

Total or Average-342,244

378,460

4.8

4.7

4.2

1,743,567（1,428,223）

Not
Disclosed

5.3

100

L-19
L-20
L-21
L-22

Industrial
real estate

Property nameAcquisition
price(million yen)

MFLP Kawaguchi I
Acquired in the 12th FP

MFLP Yachiyo Katsutadai
Acquired in the 12th FP

MFLP Osaka I
Acquired in the 12th FP

MFLP Hiratsuka II

References : As of end of 11th fiscal period
Logistics facilities(Property no. L-1 to L19)

subtotal

270,274

304,360

4.9

4.7

4.2

1,509,135(1,193,790)

1,135,295

5.8

100

Total or Average(Property no. L-1 to L19, I-1,I-2)-

297,644333,560

4.9

4.7

4.2

1,576,881(1,261,537)

Not
Disclosed

5.8

100

* For further details, please refer to [Our portfolio] in the Notes on Matters Stated in this Document on p.47-48.
*1 “Gross floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*2 “Total leasable floor area” figures are the figures after taking into consideration the ownership interest.

39

4

Appendix

Individual Property Income Statement for 11th Fiscal Period(Unit: million yen)
GLP/MFLP
Ichikawa
Shiohama

MFLP
Kuki

Number of days ofasset management

184

184

184

Lease
business
revenue

453

438

320

753

358

429

479

1,711

8,974

Other leasebusiness
revenue

36

33

14

81

33

21

39

95

527

Total

490

471

334

834

392

451

519

1,807

Outsourcing
expenses

36

31

33

25

34

103

Utilities
expenses

21

25

11

41

17

Repairexpenses

2

12

9

19

17

Propertyrelated
taxes

38

42

39

81

38

Other
expenses

2

3

2

102

114

96

-

-

-

-

223

-

118

-

-

-

-

79

109

88

63

64

50

50

203

88

86

51

95

182

309

247

149

192

157

132

103

407

102

186

119

174

388

357

237

256

221

183

154

611

191

273

171

270

Operatingrevenuefrom realestateleasing

Operatingexpensesfrom
real
estateleasing

Total

Depreciation
Operating income(loss) from real estateleasing
NOI from real estateleasing[Operating income(loss) from real estateleasing +Depreciation])

MFLP
MFLP
Yokohama
YashioDaikoku

184

MFLP
MFLP
MFLP
Funabashi
Atsugi
Kashiwa
Nishiura

MFLP
Sakai

MFLP
Komaki

MFLP
Hino

184

184

184

184

MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
MFLP Prologis
MFLP
Hiroshima
Kawaguchi
Hiratsuka Tsukuba Inazawa Atsugi II Fukuoka I Park
Ibaraki
I
I
Kawagoe

184

184

77
Not
Not
Not
Not
disclosed* disclosed* disclosed* disclosed*

184

184

184

184

184

42

184

184

Not
Not
Not
Not
Not
disclosed* disclosed* disclosed* disclosed* disclosed*

Not
disclosed*

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

184

184

MFIP
Inzai

MFIP
Inzai II

Total

184

184

-

9,502

590
Not
Not
Not
disclosed* disclosed* disclosed*

341

19

21

61

0

13

19

46

59

165

1

2

99

-

93

131

450

-

-

-

2,133

114

56

107

133

424

93

97

129

2,372

231

200

93

251

254

933

295

208

244

4,996

413

314

149

358

387

1,357

389

306

374

7,369

193

872

1

136

40

4

Appendix

Appraisal Summary for the End of 11th Fiscal Period(Unit: million yen)
End of 10th fiscal period*2(End of Jul. 2021) (a)*1
AppraisalCR
value
18,3503.9%

End of 11th fiscal period(End of Jan. 2022) (b)*1
AppraisalCR
value
18,7003.8%

Change(b)-(a)Appraisalvalue

Acquisitiondate

Acquisition
price

GLP/MFLP Ichikawa Shiohama (50%)

September 2016

15,500End of 11th
fiscalperiodBook value
14,752

350

- 0.1

〇

〇

MFLP Kuki

August 2016

12,50011,47014,7004.3%

15,000

4.2%

300

- 0.1

〇

〇

MFLP Yokohama Daikoku (50%)

August 2016

10,100

9,639

11,200

4.2%

11,200

4.2%

0

0.0

-

-

MFLP Yashio

August 2016

9,650

9,057

11,5004.2%

11,700

4.1%

200

- 0.1

〇

〇

MFLP Atsugi

August 2016

7,810

7,179

9,490

4.3%

9,740

4.2%

250

- 0.1

〇

〇

MFLP Funabashi Nishiura

August 2016

6,970

6,463

8,000

4.3%

8,190

4.2%

190

- 0.1

〇

〇

MFLP Kashiwa

August 2016

6,300

5,807

7,190

4.4%

7,350

4.3%

160

- 0.1

〇

〇

MFLP Sakai

August 2016*3

23,60022,975

26,1004.3%

26,900

4.2%

800

- 0.1

〇

〇

MFLP Komaki

August 2017*3

8,260

7,606

8,930

4.4%

8,930

4.4%

0

0.0

-

-

MFLP Hino (25%)

February 2018*3

12,533

12,04913,1004.0%

13,500

3.9%

400

- 0.1

〇

〇

MFLP Hiratsuka

March 2018

7,027

6,697

7,740

4.3%

7,920

4.2%

180

- 0.1

〇

-

MFLP Tsukuba

December 2018*3

8,781

8,417

10,5004.7%

10,700

4.6%

200

- 0.1

〇

-

MFLP Inazawa

February 201916,20015,293

17,5004.4%

17,900

4.3%

400

- 0.1

〇

〇

Main factors of change
CR

*1

CR

*1

Other

MFLP Atsugi II

February 201913,10012,535

14,2004.1%

14,600

4.0%

400

- 0.1

〇

〇

MFLP Fukuoka I

February 2019*3

5,263

4,986

5,850

4.5%

5,980

4.4%

130

- 0.1

〇

-

MFLP Prologis Park Kawagoe (50%)

February 2020

14,80014,502

15,9504.1%

16,350

4.0%

400

- 0.1

〇

-

MFLP Hiroshima I

March 2020

14,48014,143

15,4004.7%

15,700

4.6%

300

- 0.1

〇

〇

MFLP Ibaraki

October 2020

58,90058,02863,0003.9%

64,400

3.8%

1,400

- 0.1

〇

〇

MFLP Kawaguchi I

October 2020

18,50018,353

19,1003.9%

19,600

3.8%

500

- 0.1

〇

〇

MFIP Inzai

August 2016*3

12,22011,65413,0004.5%

13,300

4.4%

300

- 0.1

〇

〇

MFIP Inzai II

March 2021

15,15014,96815,500

4.6%

15,900

4.5%

400

- 0.1

〇

〇

Total/average-

297,644286,583

326,300

4.2%

333,560

4.1%

7,260

- 0.1

-

-

Reference (as of February 2, 2022) *4
MFLP Yachiyo Katsutadai

February 2022

18,00018,000--18,100

4.2%

-

-

-

-

MFLP Osaka I

February 2022

13,90013,900--13,900

3.9%

-

-

-

-

MFLP Hiratsuka II

February 2022

12,70012,700- Difference＝ -12,900

4.1%

-

-

-

-

331,183

Unrealized gain*
47,276
million yen

378,460

4.1%

-

-

-

-

Total/average after acquisition ofproperties acquired in the 12th FP-

342,244* For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement] [Major properties developed/operated by Mitsui Fudosan] in the Notes on Matters Stated in this Document on p.47-48.
*1 CR = Capitalization rate based on direct capitalization method (NCF basis). The average indicates a weighted average based on the appraisal value.
*2 For appraisal values for properties where MFLP holds quasi co-ownership interests, the appraisal value reflects the ratio of quasi co-ownership interest*3 The acquisition periods of “MFLP Sakai”, “MFLP Komaki”, “MFLP Hino”, “MFLP Tsukuba”, “MFLP Fukuoka I” and “MFIP Inzai” are divided into multiple periods, but the initial acquisition dates (Sakai: upon acquisition of 20% quasi co-ownership interest, Komaki: uponacquisition of 40% quasi co-ownership interest, Hino: upon acquisition of 15% quasi co-ownership interest, Tsukuba: upon acquisition of 60% quasi co-ownership interest, Fukuoka I: upon acquisition of 81% quasi co-ownership interest, Inzai: upon acquisition of 20%
quasi co-ownership interest) are indicated.
*4 Book value at the end of 11th fiscal period as of February 2, 2022 indicates acquisition price; and appraisal value and CR at the end of 11th fiscal period indicates appraisal value with November 30, 2021 as the date of value.

41

4Appendix

Statement of Income and Balance Sheet
Statement of income

Balance sheet

10th fiscal period(ended Jul. 31, 2021)
Actual(Unit: million yen)
11th fiscal period(ended Jan. 31, 2022)
Actual

9,267

9,502

8,872

8,974

395

527

5,332

5,531

Consumption taxes receivable

348-

Expenses related to rent business

4,337

4,506

Other current assets

301

154

Asset management fee
Asset custody and administrative
service fees
Directors’ compensations

890

911

288,671286,638

288,618

286,606

Item
Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses

Other operating expenses
Operating income
Non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment
corporation bonds
Amortization of investment corporationbonds
Amortization of investment
unit issuance expenses
Other

34

34

Item
Current assets
Cash and deposits
Cash and deposits in trust

Non-current assets
Property, plant and equipment
Other non-current assets

5

6

65

72

3,935

3,971

3

1

229
153

6
1

Deferred assets
Total assets
Current liabilities(Unit: million yen)
11th fiscal period(ended Jan. 31, 2022)
Actual

7,279

7,670

738

1,235

5,891

6,279

53

32

152

102

296,103

294,411

6,807

9,250

246

599

230

Operating accounts payable

162

Short-term borrowings

2,000

-

7

Current portion of long-term loans payable
Accounts payable

1,900

5,300

1,037

1,080

1

Income taxes payable

01

Income consumption taxes payable
48

10th fiscal period(ended Jul. 31, 2021)
Actual48

19

11

Ordinary income

3,708

3,742

Profit before income taxes

3,708

3,742

Income taxes

01Profit (Net income)

3,708

3,741

Unappropriated retained earnings

3,708

3,741

Advances received
Other current liabilities
Non-current liabilities

-

678

1,613

1,577

8

13

101,787

98,147

Investment corporation bonds

3,000

3,000

Long-term borrowings
Tenant leasehold and security deposits in trust

92,50089,100

6,287

6,047

Total liabilities

108,594

107,397

Total unitholders’ equity

187,508

187,013Unitholders’ capital

185,362

185,362

Deduction from unitholders’ capital-1,562-2,089Unitholders’ capital, net
Surplus
Total net assets

183,800
3,708
187,508

183,272
3,741
187,013

Total liabilities and net assets

296,103

294,41142

4

Appendix(Reference) Distribution after Adjustment of Temporary Effects
The right chart is a graph which shows the comparison of the estimated values of
distribution after adjustment of temporary effects estimated by making the following
adjustments based on the forecasted figures for the 12th fiscal period (ending July2022) and 13th fiscal period (ending January 2023) announced on March 15, 2022.
1. As for the property leasing business revenues and property leasing business
expenses for the properties acquired in the 12th FP, it is assumed that full-period
operation will be implemented in the 12th fiscal period (ending July 2022) and13th fiscal period (ending January 2023).
2. It is assumed that property-related taxes including fixed asset tax and city
planning tax for the properties acquired in the 12th FP will occur from the
beginning of the 12th fiscal period (ending July 2022), and that 130 million yen
will be recorded as expenses in the 12th fiscal period (ending July 2022) and 13th
fiscal period (ending January 2023).
3. 16 million yen of expenses related to the issuance of new investment units which
will temporarily occur in the 12th fiscal period (ending July 2022) due to the 5th
follow-on offering is excluded from non-operating expenses.
4. The interest expenses of borrowings which fluctuate due to the adjustment of the
management period of properties acquired in the 12th FP have been added to
non-operating expenses.
5. Expenses linked to factors such as operating income and profit (net income)which fluctuate due to the above adjustments.
As a specific example, it is assumed that management fee will increase by 24
million yen in the 12th fiscal period (ending July 2022) and decrease by 29 million
yen in the 13th fiscal period (ending January 2023).

Forecast DPU etc.
(12th fiscal period (July 2022))

Forecast DPU etc.
(13th fiscal period (January 2023))

(yen)

8,500

8,352

8,252

8,396

8,277

8,000

7,500

7,000

6,500

6,000

5,500
Moreover, such DPU after adjustment of temporary effects (estimate) does not aim toestimate distributions for a specific calculation period, and does not have the meaning
as the forecast of distributions, etc. during a specific calculation period. DPU after
adjustment of temporary effects (estimate) is not an indicator stipulated in the corporate
accounting standards (“Japanese GAAP”) which is generally accepted in Japan, andshall not be taken into consideration as an alternative indicator of other indicators
indicated in conformity with the Japanese GAAP. Furthermore, DPU after adjustment of
temporary effects does not guarantee whether or not distribution will be made in the
future as well as the amount of such distribution in any sense. Please note that theactual DPU during the calculation period for the 12th fiscal period (ending July2022)and 13th fiscal period (ending January 2023) may differ significantly from the
DPU after adjustment of temporary effects (estimate).

Forecast
madethis timeAfteradjustment of
temporaryeffects

Forecast
madethis timeAfteradjustment of
temporaryeffects*1 Revenue in even periods and odd periods differ due to seasonal factors. Moreover, the difference of rent forphotovoltaic power generation facilities, which is the main seasonal factor, between the 12th fiscal period (ending
July 2022) and 13th fiscal period (ending January 2023) is assumed to be approximately 68 million yen.
*2 Average occupancy rate during the period is the average occupancy rate (leased floor area divided by leasable
floor area) for each property as of the end of each month weighted by floor area. Note that no adjustments havebeen made to occupancy rates for properties acquiredin the 12th FP to reflect a full period contribution.
*3 The current DPU forecast for the fiscal period ending July 2022 (12th FP) and the DPU forecast adjusted for
temporary effects includes 209 yen in a one-off distribution in excess of earnings.

43

4 4Appendix
External Evaluation and Certifications
DBJ Green Building certification
DBJ Green Building Certification aims to encourage the spread of real estate(“green buildings”) that takes into account environmental performance anddisaster preparedness, as well as the societal needs of various stakeholders,
including local communities. This is assessed using a proprietary scoringmodel developed by Development Bank of Japan Inc., resulting in selected
properties that address the needs of the times being given a ranking of 1 to
5 on a 5-star scale.

CASBEECASBEE (Comprehensive Assessment System for Built Environment
Efficiency) is a comprehensive system, created under the leadership of the
Ministry of Land, Infrastructure, Transport and Tourism, for evaluating thequality of buildings. In addition to the original goals of reduced energy
consumption and the use of building materials with low environmental impacts,
it also takes into account the comfort of the interior and the landscape.

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

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

Property name

DBJ Green
Building *GLP・MFLP Ichikawa Shiohama
MFLP Kuki
MFLP Yokohama Daikoku

Rank A*

★★★

★★★★*

★★★★★

ZEB Ready★★★★★

ZEB Ready

Rank A*

MFLP Kashiwa

Rank A*
★★★★★

★★★★

Rank S*MFLP Komaki

Rank A*★★★★

MFLP Hiratsuka
MFLP Inazawa

ZEB

Rank A*

Rank A*

MFLP Hino

BELS

★★★★
Rank A*

MFLP Funabashi Nishiura

MFLP Sakai *1

Rank S

Rank A*★★★★★

MFLP Yashio
MFLP Atsugi

CASBEECASBEE(New(Real estate) **construction)★★★★★

ZEB Ready★★★★★

ZEB Ready

Rank A*★★★★

Rank A*

MFLP Atsugi II

Rank A*
Rank A*

MFLP Fukuoka I

Rank A*

MFLP Prologis Park Kawagoe

★★★★

★★★★★

MFLP Hiroshima I★★★★

Rank A*★★★★★

ZEB Ready

MFLP Ibaraki★★★★

Rank A*★★★★★

ZEB Ready

MFLP Kawaguchi I★★★★

Rank S*★★★★★

ZEB Ready★★★★★

Nearly ZEB

118

Rank A*

Acquired in the 12th FP

MFLP Yachiyo Katsutadai
Acquired in the 12th FP
MFLP Osaka I

Rank A*

Acquired in the 12th FP
MFLP Hiratsuka II

Rank A*certifications acquired Total

10

9

12

* For further details, please refer to [Green Building certification] in the Notes on Matters Stated in this Document on p.47-48.
*1 In addition to the above green certifications, MFLP Sakai also won the FY2015 Osaka Environmentally Friendly Building Award(Retail and other facilities category).

44

4

Appendix

Investment Unit Price Trends/Status of Unitholders(yen)660,000

Investment unit price (closing price)
TSE REIT Index (indexed)

560,000

460,000

360,000

IPO issue price: 270,000 yen
260,000

160,000
2016/8/2

2017/1/31

2017/7/31

2018/1/31

2018/7/31

2019/1/31

2019/7/31

2020/1/31

2020/7/31

2021/1/31

2021/7/31

2021/1/31* The starting point is the price of the first trade at IPO on August 2, 2016.
* The TSE REIT Index is indexed to the August 2, 2016 opening price.

Status of unitholders at the end of 11th fiscal period (end of January 2022)◼ Number of Unitholders and Number of Investment Units by Type of Unitholder ■ Major Unitholders
Number ofinvestment
units

Number ofunitholders% of total

Number ofinvestment
units% of total

Individuals/Other

6,579

91.2%

22,378 units

4.1%

The Master Trust Bank of Japan, Ltd. (trust account)

94,568 units

17.4%

Financial institutions

147

2.0%

279,934 units

51.6%

Custody Bank of Japan, Ltd. (trust account)

63,629 units

11.7%

Other Japanese
corporations

194

2.7%

35,929 units

6.6%

Mitsui Fudosan Co., Ltd.

28,900 units

5.3%

26,007 units

4.8%

23,485 units

4.3%

236,589 units

43.7%

Non-Japanese

276

3.8%

188,480 units

34.8%

Securities companies

20

0.3%

15,279 units

2.8%

Total

7,216

100.0%

542,000 units

100.0%

Custody Bank of Japan, Ltd.
(securities investment trust account)
The Nomura Trust and Banking Co., Ltd.
(Investment Trust Account)
Total% of total

45

4

Appendix

Mitsui Fudosan’s Major Development / Operation Track Record *Fiscal yearofcompletion

Acquisition by
MFLP-REIT

Properties defined in“Right of first look andpreferential negotiationrightsagreement”/Acquisition
under exclusive
negotiation*

55,094㎡－－

43,919㎡●－

MFLP Yachiyo Katsutadai

74,624㎡●－

MFLP Tosu

35,248㎡－●－

MFIP Inzai II

27,268㎡●

Fiscal 2014

－

●

－

MFLP Tokorozawa

21,721㎡－●

40,942㎡●－

MFLP Funabashi III

270,321㎡－●

MFIP Inzai

40,478㎡●－

MFLP Osaka Katano

68,528㎡－●

MFLP Hino

205,200㎡● (25%)● (75%)MFLP Ichikawa Shiohama II

183,991㎡－● (60%)

Fiscal 2015

MFLP Kashiwa

31,242㎡●－

MFLP Tomei Ayase

57,826㎡－● (50%)MFLP Funabashi I

197,746㎡－－

Tokyo Rail Gate EAST

174,404㎡－－

MFLP Fukuoka I

32,199㎡●－

MFLP Ebina I－－

MFLP Hiratsuka

33,061㎡●－

Approx.
122,200㎡

Fiscal 2016－－

● (50%)

40,597㎡●

36,141㎡

MFLP Komaki

SG Realty MFLP
Fukuoka Kasuya

MFLP Inazawa

72,883㎡●－

MFLP Yatomi Kisosaki

98,792㎡－●

Approx.
9,600㎡
Approx.
28,500㎡
Approx.
28,500㎡
Approx.
130,000㎡
Approx.
37,600㎡－

Fiscal 2017

－

－

－

Fiscal 2018

－

－

－

－

－

－

Fiscal 2019

Fiscal yearofcompletion

Propertydeveloped/operated

Total floor
area

Acquisition by
MFLP-REIT

100,530㎡● (50%)－MFLP Tachikawa Tachihi

GLP/MFLP Ichikawa Shiohama

105,019㎡● (50%)－MFLP Osaka I

MFLP Yashio

40,728㎡●－

MFLP Kuki

73,153㎡●－

MFLP Sakai

125,127㎡●

MFLP Funabashi Nishiura

30,947㎡

MFLP Atsugi

Property developed/operated

MFLP Yokohama Daikoku
Fiscal 2013

Properties defined in“Right of first look andpreferential negotiationrightsagreement”/Acquisition
under exclusive
negotiation*

Fiscal 2020

Fiscal 2021

Fiscal 2022

MFLP Ibaraki

230,435㎡●－

MFLP SHINKIBA I

MFLP Tsukuba

62,484㎡●－

MFLP SHINKIBA IIMFLP Atsugi II

48,976㎡●－

MFLP Prologis Park Kawagoe

117,337㎡● (50%)－

MFIP Haneda

80,334㎡－－

MFLP Hiroshima I

68,427㎡●－

MFLP Funabashi II

227,003㎡－●

MFLP Kawaguchi I

49,838㎡●－

MFLP Hiratsuka II

48,141㎡●－

MFLP Yokohama Kohoku

45,512㎡－●

MFLP Kawasaki I

49,801㎡－－

Fiscal 2023

MFLP HIRATSUKA III

MFLP ZAMA
Fiscal 2024
TBD

MFLP EBINA MINAMI

Total floor area

another data center (1 property)

－

－

－

another overseas
property (1 property)

－

－

－

* For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights
agreement] [Major properties developed/operated by Mitsui Fudosan] in the Notes on Matters Stated in thisDocument on p.47-48.
*1 MFLP Yokohama Daikoku is listed under the fiscal year in which the property began its operations. The fiscal
year of completion of the property is fiscal 2009. The fiscal year of completion of the existing building of MFLP
Tsukuba is fiscal 2010.
*2 The percentage figures in parentheses is the percentage of quasi co-ownership interest in the portfolio asset.

46

Notes on Matters Stated in this Document* Unless otherwise specified, figures indicated in whole numbers are rounded down to the nearest specified unit and figures with a decimal point are rounded to the nearest indicated unit.
* Unless otherwise specified, descriptions are made based on the following.
[Highlights] / [Basic Strategy and Four Roadmaps] / [Internal Growth Strategy] / [Our Portfolio] / [Appraisal Summary for the End of 11th Fiscal Period]“Top 5 property ratio”
The sum of the acquisition prices of the five largest properties as a percentage of the total acquisition price.
“Building age”
Number of years from the date of construction of the main building of a property acquired in the register to January 31, 2022 (end of 11th fiscal period).
“Average building age” and subtotal (average) and total (average) indicate the weighted average based on the total floor area, considering the quasi co-ownership interest of each property.
“Occupancy rate”
Leased area as a percentage of leasable area. Based on concluded agreements as of January 31, 2022 (end of 11 th fiscal period). Note that the average occupancy rates during the fiscal period shown on pages 11 and 12 are the simple average of the occupancy rates
based on actual leased area as of the end of each month in each fiscal period“LTV”
LTV = Balance of interest-bearing debt ÷ Total assets“Acquisition capacity”
Amount of debt that can be additionally financed assuming that LTV is raised to 50%. The amount indicated is rounded to the nearest billion yen.
“Distribution per unit (DPU) ”
Includes distribution in excess of earnings. (Number of investment units issued and outstanding: 224,000 units at the end of the 1st/2nd/3rd fiscal periods / 262,774 units at the end of 4th and 5th fiscal periods / 379,000 units at the end of 6th and 7th fiscal periods /441,000 units at the end of 8th fiscal period / 542,000 units at the end of 9th/10th/11th fiscal periods / 576,000 units at the end of 12th/13th fiscal periods)“NAV per unit”“End of FP ended January 2022 (End of 11 th FP)”: (Net assets as of the end of FP ended January 2022 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended January 2022) / Number of investment units issued andoutstanding (542,000 units)“After the 5th follow-on offering”: (NAV as of the end of FP ended January 2022 (End of 11 th FP) + Unrealized gain on appraisal basis of properties acquired in 12 th FP (*) +Total issue amount of the 5th follow-on offering (17,937,584,000 yen) /Number of MFLP-REIT’s investment units issued and outstanding after the 5 th follow-on offering (576,000 units)* Unrealized gain on appraisal basis of properties acquired in 12 th FP: (total) Appraisal value of properties acquired in 12 th FP – (total) Acquisition price of properties acquired in 12 th FP.
“Adjusted forecast NOI yield”
Annualized after subtracting the fixed asset tax and city planning tax for the property acquired in the 12 th fiscal period from the NOI assumed in the earnings forecast for the 12 th and 13th fiscal periods as well as adjusting special factors, and dividing it by the totalacquisition price.
Subtotal (average) and total (average) for each category indicate the weighted average based on acquisition price.
“Total floor area”
Figures based on the record on the register, rounding down to the nearest whole number.
“ Average Annual Growth Rate for Asset Size since Listing ”
Average annual growth rate for asset size from listing up to the inclusion of all properties acquired in the 12th fiscal peri od. Calculated by raising the rate of growth derived by dividing asset size after factoring in properties acquired in the 12th fi scal period (acquisition
price basis) by asset size at the time of listing (acquisition price basis) to the exponent of 1 over the number of years calculated based on the number of days from the date of listing to the date of completing acquisitions for properties acquired in the 12th period,
all less 1, multiplied by 100.
“Market cap”
End of FP ended January 2022 (End of 11 th FP):
Closing price of the investment unit as of the end of the FP ended January 2022 (566,000 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended January 2022 (542,000 units).
After the 5th follow-on offering (as of February 28, 2022) : Closing price of the investment unit in regular trading as of February 28, 2022 (525,000 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of February 28, 2022 (576,000 units)“Calculation of average lease term”"Average lease term" is calculated using the average of the lease terms stated in concluded lease agreements as of February 2, 2022 weighted by the leasable floor area.
With regard to the lease agreements to be included in the calculation, when a re-contract starting on the day immediately following the expiration date of the respective lease agreement is concluded with the same lessee, the lease term is deemed to be from the startof the initial lease agreement to the expiration date of the re-contract, and used in the calculation as such.
“Calculation of remaining lease contract period”"Average lease term" is calculated using the average of the remaining period in the lease terms after February 2, 2022, based on the concluded lease agreements as of February 2, 2022.
With regard to the lease agreements to be included in the calculation, when a new lease agreement ("re-contract") is concluded with the same lessee, the remaining period shall be calculated assuming that the lease period continues from the day immediately
following the expiration date of the previous contract to the expiration date of the re-contract.
“Appraisal value”
Appraisal values corresponding to the quasi co-ownership interest ratio of each property as the appraisal date are indicated. Appraisal values with January 31, 2022 (end of 11th FP) as the appraisal date are indicated for properties owned as of the end of
11th FP, and those with November 30, 2021 as the appraisal date are indicated for properties acquired in 12th FP.
“Appraisal NOI / Appraisal value”
Appraisal NOI divided by appraisal value. The subtotal (average) and total (average) of “Appraisal NOI / Appraisal value” for each category indicate the weighted average based on the appraisal value.
“Appraisal NOI yield”
Ratio of net operating income under direct capitalization method stated in real estate appraisal report (“Appraisal NOI”) to acquisition price. “Average NOI yield” and subtotal (average) and total (average) for each category indicate the weighted average based on
acquisition price.
“Leasable area”
the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable based on the lease agreement or floor plan, etc. for such building as of January 31, 2022.(not include the leased area indicated in thelease agreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like)“Unrealized gain”
A figure obtained by subtracting the period-end book value from appraisal value.

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Notes on Matters Stated in this Document[Properties defined in “Right of first look and preferential negotiation rights agreement”]“Properties defined in “Right of first look and preferential negotiation rights agreement” refers to properties on the list of right of first look and preferential negotiation properties pertaining to real estate subject to provision of information, presented based on the Right offirst look and preferential negotiation rights agreement executed between the Asset Management Company and Mitsui Fudosan upon the Asset Management Company managing MFLP-REIT’s assets. “Real estate subject to provision of information” refers to, among
real estate, etc. held by Mitsui Fudosan or a real estate fund which accepted investment or monetary contribution of Mitsui Fudosan, those which are judged to have the possibility to be sold to MFLP-REIT at Mitsui Fudosan’s discretion.
The (number of) subject properties and ratio/total floor area indicate figures after considering co-ownership interest (or quasi co-ownership interest).
[ZEB certification]
ZEB (Net Zero Energy Building) is a building that aims to achieve a zero energy balance through substantial reductions in annual primary energy consumption. This is achieved by saving as much energy as possible via better thermal insulation of the buildi ng and highly
efficient equipment, coupled with creating energy by photovoltaic power generation (or other energy generating methods), whi le maintaining a comfortable environment. In the BELS certification system, the certification of the level of ZEB is presented in four stages:“ZEB,” “Nearly ZEB,” “ZEB Ready,” and “ZEB Oriented.” “ ZEB Ready” is awarded to buildings that achieve primary energy reduction of 50% or higher.
[Greater Tokyo: contracted floor space by sector]
Based on surveys by CBRE K.K. on tenant composition as of July 2021 for Large Multi tenant properties (LMT) in the Greater Metropolitan area, aggregated by year of completion.
LMTs for the purpose of the survey are defined as rental logistics facilities in the Greater Metropolitan Area with gross floor area equal to or greater than 10,000 tsubo.
[Method of calculation of cash distribution based on FFO]
(1) Distribution of earnings is determined based on profit (net income) for the applicable operating period.
(2) FFO for the applicable operating period is calculated by adding depreciation to profit (net income) (excluding gain or loss on sale of real estate, etc.) for the applicable operating period.
(3) The amount distributable including distribution in excess of earnings is calculated based on a threshold of an amount equivalent to 70% of FFO for the applicable operating period.
(4) The amount distributable in excess of earnings is calculated by deducting the amount of distribution of earnings (excluding gain or loss on sale of real estate, etc.) from the amount distributable including distribution in excess of earnings.
(5) The amount of continuous distribution in excess of earnings is determined based on a comprehensive judgment on the basis of the amount distributable in excess of earnings.
(6) The distribution in excess of earnings determined in 5. above is to be continuously made each fiscal period in principle, in addition to the distribution of earnings determined in 1. above.
In addition, in cases where the distribution amount for distributions per unit is expected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units, etc., a one-off distribution in excess ofretained earnings may be executed in order to standardize the amount of the distributions per unit.
[Major properties developed/operated by Mitsui Fudosan]
Based on materials released by Mitsui Fudosan on November 5, 2019, March 4, 2021 and financial second quarter results materials of Mitsui Fudosan for the fiscal year ended March 31, 2022 indicates the area recorded in the property registry or the certificate ofcompletion for completed properties, the area stated on the building confirmation certificate for uncompleted properties that are properties defined in “Right of first look and preferential negotiation rights agreement,” and the area stated in the material published by Mitsui
Fudosan for all other properties. The area for uncompleted properties is the planned area and is subject to change.
“Cumulative total investment size” includes properties under development or scheduled to be developed as of each date of publication and their (planned) investment amount. Properties scheduled to be developed include those targeted or planned by the Mitsui
Fudosan Group as of the date of this document and are subject to change or cancellation.
Furthermore, there are no details concerning the timing of completion of the aforementioned investments that had been finalized as of the date of this document. Nor does MFLP-REIT guarantee or promise that the plans be materialized.
“Tokyo Rail Gate EAST” is included in terms of the number of facilities and total floor area, but not in term of the amount. Mitsui Fudosan has no plans to acquire the property as of the date of this document.
[Industrial real estate]
Real estate which is used to provide the framework for industrial activity such as data centers, communications facilities, research facilities, manufacturing plants and supply/treatment facilities.
[Solar panel annual power generation]
Actual power generated between January and the end of December 2021 at 12 properties with photovoltaic panel facilities after acquisition of properties acquired in the 12th FP, 2021, is indicated.
The total power generation amount of the entire properties is indicated regardless of ownership ratio held by MFLP-REIT.
[About analysis of Japan's logistics facilities stock]① The "Analysis of Japan's logistics facilities stock" graph is of estimates by CBRE K.K. based on the Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism's "Building Starts" and the Ministry of Internal Affairs and Communications' "Summary
Report on Prices, etc. of Fixed Assets."② In the "Analysis of Japan's logistics facilities stock" graph, "Leading-edge logistics facilities" is the figure of each year's sum total of the gross floor area of leading-edge logistics facilities (refers to rental logistics facilities that have gross floor area of at least 10,000
m2 and, in principle, ceiling height of at least 5.5 meters, floor load capacity of at least 1.5 tons/m2 and column spacing of at least 10 m).
③ In the "Analysis of Japan's logistics facilities stock" graph, "Estimate for logistics facilities 40 years old or older" is the figure of each year's overall stock estimate (as covered by note 5; the same shall apply hereinafter) minus the sum total of the floor area of whichconstruction was started within the past 40 years.
④ "Estimate for logistics facilities less than 40 years old" is the figure of the overall stock estimate minus the floor area of "Estimate for logistics facilities 40 years old or older" and "Leading-edge logistics facilities."⑤ The overall stock estimate is the sum total of "Estimate for logistics facilities 40 years old or older," "Estimate for logistics facilities less than 40 years old" and "Leading-edge logistics facilities."⑥ In the "Analysis of Japan's logistics facilities stock" graph, "Share of leading-edge logistics facilities" is each fiscal year's "Leading-edge logistics facilities" expressed as a percentage of the overall stock estimate (gross floor area basis).
⑦ In the "Analysis of Japan's logistics facilities stock" graph, "Share of logistics facilities 40 years old or older" is each fiscal year's "Estimate for logistics facilities 40 years old or older" expressed as a percentage of the overall stock estimate (gross floor area basis).
⑧ "Gross floor area" is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed to be completed after one year has elapsed from construction start. Accordingly,
gross floor area may not match the floor area on the building confirmation certificate, construction completion drawing or register.
[Green Building certification]
With regard to “DBJ Green Building Certification”, only the certification for MFLP Atsugi has expired.
With regard to “CASBEE New Construction Certification” the certifications for all certified properties except for MFLP Prologis Park Kawagoe have expired.
With regard to “CASBEE Real Estate Certification”, there are 2 types of certification of comprehensive building environment efficiency: an assessment conducted by either an external body or the relevant local government, a system mainly employed by ordinancedesignated cities. With the exception of GLP/MFLP Ichikawa Shiohama, all certifications were based on applications for assessments under CASBEE-based systems established by local governments.

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Disclaimer
This document is provided solely for informational purpose with regard to Mitsui Fudosan Logistics Park Inc. (MFLP-REIT) and is not intended to serve as an
inducement or solicitation to trade in any product offered by MFLP-REIT.
Purchase, sale and such of MFLP’s investment units entail the risk of incurring a loss due to fluctuations of the investment unit price.
Please consult with a securities company regarding the purchase of MFLP-REIT’s investment units or investment corporation bonds. This document should not beinterpreted as constituting disclosure documents or asset management report required under Financial Instruments and Exchange Act or the Act on Investment
Trusts and Investment Corporations.
Concerning the information provided in this document, although MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. make every effort to provide
correct information, its accuracy, adequacy or completeness are not guaranteed regardless of the information being prepared by MFLP-REIT and Mitsui Fudosan
Logistics REIT Management Co., Ltd. or being received from third-parties.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking statements presented by
MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co., Ltd. according to assumptions or judgement based on information available on the date of thisdocument (the date if specified otherwise in the document). Forward-looking statements are based on assumptions such as the investment policy of MFLP-REIT,
applicable laws and regulations, market environment, interest rate environment, business practice and other facts as of the preparation date of this document, anddo not reflect or consider changes in situations after the preparation date. Forward-looking statements include, explicit or implied, uncertainties of existing risks,
unknown risks and other factors, and may materially differ from actual performance, business results, financial status and such of MFLP-REIT.
The content of this document is subject to change or repeal without prior notice. MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. are under noobligation to update or publicly disclose the content of this document (including forward-looking statements).
Duplication or reproduction of any content presented in this document without the prior consent of MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co.,
Ltd. is strictly prohibited.

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