10th Fiscal Period
Asset Management Report

Mitsui Fudosan Logistics Park Inc.
6-8-7 Ginza, Chuo-ku, Tokyo

From: February 1, 2021
To: July 31, 2021

I.

To Our Unitholders
Mitsui Fudosan Logistics Park Inc. (MFLP-REIT), which listed on the Tokyo Stock Exchange Real Estate Investment Trust (REIT)
Market on August 2, 2016, has ended its 10th fiscal period in July 2021 with smooth sailing, achieving increased revenue, increased
profit, and increased distributions for nine consecutive fiscal periods.
I would like to convey my sincere appreciation to you, our unitholders, for your continued support of MFLP-REIT.
In Japan, while the economy continues to face challenging conditions due to the effects of the novel coronavirus disease (COVID19) inside and outside Japan, the underlying trend is that of a recovery. Currently, aside from the lingering effect from COVID-19
on the consumption of services, there are concerns over a temporary slowing of exports and production due to restricted supply.
However, now that the effect from COVID-19 is gradually subsiding due to the roll-out of vaccines, the economy is expected tohead towards recovery, receiving additional boosts from increasing external demand, accommodative financial conditions, and thegovernment’s economic measures.
In the logistics market, with the 3PL business specializing in outsourced logistics services continuing to expand, spending byconsumers staying at home has fueled the expansion of the size of the e-commerce market, and efforts to respond to this have led
to increased demand for leading-edge logistics facilities and the leasing market has proceeded robustly. We are expecting that there
will continue to be stable demand for such logistics facilities, but we will pay considerable attention to the effects from COVID19.
Going forward, MFLP-REIT will ensure appropriate and effective operation in order to boost unitholder value. I ask our unitholders
for their continued support and cooperation.

-2-

II. Asset Management Report
1. Overview of Asset Management(1) Management and other performance highlights of the investment corporation
9th period
7th period
10th period
8th period
6th period(From August 1,(From August 1,(From February(From February(From February
2020
2019
1, 2021
1, 2020
1, 2019
to January 31,
to January 31,
to July 31, 2021)
to July 31, 2020)
to July 31, 2019)
2021)
2020)

Fiscal period(millions of yen)

9,267

8,139

6,363

5,064

4,969

(millions of yen)

[9,267][8,139][6,363][5,064][4,969](millions of yen)

5,332

4,353

3,482

2,748

2,650

(millions of yen)

[4,337][3,471][2,816][2,175][2,134]

Operating income(millions of yen)

3,935

3,786

2,881

2,315

2,318

Ordinary income(millions of yen)

3,708

3,580

2,735

2,238

2,203

Net income(millions of yen)

3,708

3,579

2,734

2,237

2,202

Total assets(millions of yen)

296,103285,205

208,243

157,023

160,681

(%)

[3.8]

[37.0][32.6][(2.3)][53.6](millions of yen)

187,508

187,747

139,026

109,060

109,284[(0.1)][35.0][27.5][(0.2)][48.9](millions of yen)

99,40088,30062,90042,90046,800(millions of yen)

183,800

184,168

136,292

106,822

107,081(units)542,000

542,000

441,000

379,000

379,000

Net assets per unit

(yen)345,956

346,398

315,253

287,758

288,349

Net income per unit (Note 4)

(yen)

6,841

7,074

6,215

5,904

5,823

Total amount of distributions(millions of yen)

4,236

3,947

3,076

2,495

2,461

(yen)

7,816

7,283

6,977

6,584

6,496

(yen)

[6,842][6,604][6,200][5,905][5,811]

(yen)

[974]

[679]

[777]

[679]

[685]

(%)

1.3

1.5

1.5

1.4

1.7

[Annualized]

(%)

[2.6]

[2.9]

[3.0]

[2.8]

[3.4]

Return on equity (Note 5)

(%)

2.0

2.2

2.2

2.0

2.4

[Annualized]

(%)

[4.0]

[4.3]

[4.4]

[4.1]

[4.9]

Equity ratio at end of period(Note 5)

(%)

63.3

65.8

66.8

69.5

68.0

[(2.5)][(0.9)][(2.7)][1.4][(2.2)]

(%)

100.0

100.0

100.0

100.0

100.0

(days)

181

184

182

184

181

(properties)

21

20

18

16

16

(%)

100.0

100.0

100.0

99.1

100.0

(millions of yen)

2,344

2,059

1,661

1,326

1,314

(millions of yen)

110

178

77

91

86

(millions of yen)

7,274

6,727

5,208

4,215

4,149

(millions of yen)

6,052

5,639

4,395

3,564

3,517

(yen)

11,166

10,404

9,967

9,405

9,280

Operating revenues[Of which: Property leasing
business revenues]
Operating expenses[Of which: Property leasing
business expenses][Period-on-period change]
Net assets[Period-on-period change]
Interest-bearing debt
Unitholders’ capital, net(Note 3)
Total number of investment
units issued and outstanding

Distribution per unit
[Of which: Distribution of
earnings per unit][Of which: Distribution inexcess of retained earnings
per unit]
Ratio of ordinary income tototal assets (Note 5)(%)[Period-on-period change]
Payout ratio (Note 5)
Other reference information
Number of days of asset
management during period
Numberofinvestment
properties at end of period
Occupancy rate at end of period(Note 6)
Depreciation and amortization(Note 7)
Capital expenditures
Net operating income (NOI)
from property leasing (Note 5)
Funds from operations (FFO)(Note 5)
FFO per unit (Note 5)-3-

Ratio of interest-bearing debt tototal assets at end of period(LTV ratio) (Note 5)

(%)

33.6

31.0

30.2

27.3

29.1

(Note 1) Operating revenues, etc. do not include consumption taxes.
(Note 2) Unless otherwise specified, any numerical figures are rounded down to the nearest specified unit and percentage figures are rounded to the firstdecimal place.
(Note 3) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 4) “Net income per unit” is calculated by dividing net income by the daily weighted average number of investment units. Diluted net income perunit is not stated because there are no dilutive investment units.
(Note 5) The following formulas are used in calculations.
Ratio of ordinary income tototal assets

Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100

Return on equity

Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100

Equity ratio at end of period

Net assets at end of period ÷ Total assets at end of period × 100

Payout ratio

Distribution per unit (excluding distribution in excess of retained earnings) ÷ Net income per unit × 100(rounded to the first decimal place)
Payout ratios for the 6th fiscal period, the 8th fiscal period and the 9th fiscal period are calculated by thefollowing formula, because new investment units were issued.
Total amount of distribution (excluding distribution in excess of retained earnings) ÷ Net income × 100

Net operating income (NOI)
from property leasing

Property leasing business revenues − Property leasing business expenses + Depreciation and amortization

Funds from operations (FFO)

Net income + Depreciation and amortization of rental properties + Loss on retirement of non-current assets± Gain (Loss) on sales of real estate properties

FFO per unit

FFO ÷ Total number of investment units issued and outstanding

Ratio of interest-bearing debt tototal assets at end of period(LTV ratio)

Interest-bearing debt at end of period ÷ Total assets at end of period × 100(Note 6) “Occupancy rate at end of period” is leased area of the building expressed as a percentage of leasable area of the building of each real estate intrust on each lease agreement concluded for each property as at the end of the fiscal period, rounded to the first decimal place.
(Note 7) “Depreciation and amortization” is depreciation and amortization of investment and rental property.

-4-(2) Developments in management of assets in the fiscal period under reviewi) Brief history of the investment corporation
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March 4,2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer, and listed on the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock
Exchange, Inc. (“Tokyo Stock Exchange”) on August 2, 2016 (Securities Code: 3471). MFLP-REIT held assets totaling 21
properties amounting to a total acquisition price of ¥297.6 billion as at the end of the fiscal period under review.
ii) Investment environment and management performance
In Japan, while the economy continues to face challenging conditions due to the effects of the novel coronavirus disease (COVID19) inside and outside Japan, the underlying trend is that of a recovery. Capital investment has been showing a trend of improvement
except for weakness seen in certain industries. However, as the effects of COVID-19 continue, weak trends persisted in theemployment and income environments. Private consumption is at a standstill due to strong downward pressure on service
consumption such as bar and restaurant and lodging services. In the logistics market, with the 3PL business (Note) specializing inoutsourced logistics services expanding in market size and the needs of 3PL providers for rental of multifunctional and highlyconvenient logistics facilities on the rise, while it cannot be denied that the spread of COVID-19 may have a negative effect on the
future logistics market, the demand for leading-edge logistics facilities is expected to continue to increase.
Under such circumstances, upholding a basic policy of pursuing maximization of unitholder value by achieving sustainable growththrough formation of a strategic partnership in the logistics facilities business with Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”),
MFLP-REIT has conducted steady management of the 21 properties held as at the end of the fiscal period under review (totalacquisition price of ¥297.6 billion) to maintain an excellent occupancy rate of 100.0% for the entire portfolio as at the end of the
fiscal period under review.
(Note)“3PL business” refers to the third-party logistics business (business of providing logistics services to client companies outsourcing part or all of
their supply chain management functions).

iii) Overview of financing
In the fiscal period under review, MFLP-REIT executed debt financing of ¥15,500 million (short-term loans payable of ¥3,500
million; long-term loans payable of ¥12,000 million) in March 2021 to fund the acquisition of MFIP Inzai II; ¥5,900 million (shortterm loans payable) in February 2021 to repay short-term loans payable; ¥4,000 million (short-term loans payable) in April 2021
to pay out distributions; and ¥2,000 million (short-term loans payable) in May 2021 to repay short-term loans payable, and executed
repayments of a total of ¥19,300 million (short-term loans payable) using funds from part of short-term loans payable procured in
the fiscal period under review and internal reserve arising from depreciation, etc. Furthermore, in February 2021, MFLP-REIT
raised ¥3,000 million through the issuance of 1st Unsecured Bonds (Special pari passu conditions among specified investment
corporation bonds) (Sustainability Bonds). As a result, at the end of the fiscal period under review, the balance of interest-bearing
debt was ¥99,400 million (short-term loans payable of ¥2,000 million; current portion of long-term loans payable of ¥1,900 million;
investment corporation bonds of ¥3,000 million; long-term loans payable of ¥92,500 million) and the ratio of interest-bearing debt
to total assets (LTV ratio) was 33.6%.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.

(Note)

Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Positive

Regarding the long-term issuer rating of MFLP-REIT, Japan Credit Rating Agency, Ltd. (JCR) changed the rating details from “AA-” to “AA” andthe outlook from “Positive” to “Stable” on September 15, 2021.

-5-

iv) Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating revenuesof ¥9,267 million, operating income of ¥3,935 million, ordinary income of ¥3,708 million, and net income of ¥3,708 million.
In accordance with the distribution policy as defined in the Articles of Incorporation of MFLP-REIT, distributions for the fiscal
period under review shall be subject to application of special provisions for taxation of investment corporations (Article 67-15 of
the Act on Special Measures Concerning Taxation). Based on this, MFLP-REIT declared the distribution of ¥3,708,364,000, whichis the integral multiple of the total number of investment units issued and outstanding (542,000 units) of unappropriated retained
earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of ¥6,842.
In addition, in accordance with the distribution policy as defined in the Articles of Incorporation, MFLP-REIT shall execute
distributions of cash in excess of retained earnings each fiscal period on a continuous basis in principle (Note 1). Based on this,
MFLP-REIT declared the distribution of ¥527 million, which is the amount almost equivalent to the remaining amount after
subtracting the distribution of earnings of ¥3,708 million from ¥4,236 million or 70% of FFO (Note 2), as return of capital applicable
to distribution reducing unitholders’ capital for tax purposes. Accordingly, MFLP-REIT declared distribution in excess of retained
earnings per unit of ¥974.
(Note 1) In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution 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., atemporary distribution in excess of retained earnings may be executed by MFLP-REIT in order to standardize the amount of the distribution per
unit.
However, from the perspective of continuing to maintain owned assets for a long period of time, in cases where the above distribution of cash is
executed, and where the amount equal to the equivalent of depreciation and amortization for the applicable operating period minus the amount of
the distribution in excess of retained earnings for the applicable operating period falls below the standard amount of capital for building maintenance(Note 3), the distribution in excess of retained earnings will be decreased by a maximum amount that the distribution amount does not fall below
the total equivalent of the distribution of earnings, and this may lead to cases where distribution in excess of retained earnings will not be executed.
In addition, from the perspective of continuing stable financial management, distributions in excess of retained earnings will not be executed incases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.
(Note 2) “FFO” is an acronym for funds from operation and refers to the figure calculated by adding depreciation and amortization of rental properties forthe applicable operating period and loss on retirement of non-current assets to net income (excluding gain (loss) on sales of real estate properties,etc.).
(Note 3) “Standard amount of capital for building maintenance” refers to the amount that results by multiplying the six-month-equivalent amount of the 12year-average amount of the amount equivalent to the capital expenditure amount noted in the Building Condition Evaluation Report by two.
(Note 4) Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value after depreciation of owned real estate on
the applicable accounts settlement date + Appraisal value of owned real estate on the applicable accounts settlement date-6-

(3) Status of capital increase, etc.
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital, net, for themost recent five years.

Date

Description

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

BalanceUnitholders’ capital, net(Note 1)(millions of yen)
Increase(Decrease)

Remarks

BalanceAugust 1, 2016

Capital increase throughpublic offering

212,800

214,000

55,44555,745(Note 2)

August 29, 2016

Capital increase throughthird-party allotment

10,000224,000

2,605

58,350(Note 3)

April 21, 2017

Distribution of cash inexcess of retained earnings(return of capital)―

224,000(54)

58,296(Note 4)

Distribution of cash in
October 13, 2017 excess of retained earnings(return of capital)―

224,000(45)

58,250(Note 5)February 1, 2018

Capital increase throughpublic offering

38,000262,000

13,49571,745(Note 6)

February 28, 2018

Capital increase throughthird-party allotment

774

262,774274

72,020(Note 7)

April 23, 2018

Distribution of cash inexcess of retained earnings(return of capital)―

262,774(61)

71,958(Note 8)Distribution of cash in
October 19, 2018 excess of retained earnings(return of capital)―

262,774(88)

71,870(Note 9)February 1, 2019

Capital increase throughpublic offering

110,700

373,474

33,617

105,488 (Note 10)

February 27, 2019

Capital increase throughthird-party allotment

5,526

379,000

1,678

107,166 (Note 11)

April 23, 2019

Distribution of cash inexcess of retained earnings(return of capital)―

379,000(84)

107,081 (Note 12)

Distribution of cash in
October 15, 2019 excess of retained earnings(return of capital)―

379,000(259)

106,822 (Note 13)

February 3, 2020

Capital increase throughpublic offering

59,000438,000

28,289135,111 (Note 14)

February 27, 2020

Capital increase throughthird-party allotment

3,000

441,000

1,438

136,549 (Note 15)

April 23, 2020

Distribution of cash inexcess of retained earnings(return of capital)―

441,000(257)

136,292 (Note 16)

October 5, 2020

Capital increase throughpublic offering

96,190537,190

45,922

182,214 (Note 17)

October 19, 2020

Capital increase throughthird-party allotment

4,810

542,000

2,296

184,510 (Note 18)

-7-

Date

Description

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

BalanceUnitholders’ capital, net(Note 1)(millions of yen)
Increase(Decrease)

Remarks

Balance

Distribution of cash in
October 21, 2020 excess of retained earnings(return of capital)―

542,000(342)

184,168 (Note 19)

Distribution of cash inexcess of retained earnings(return of capital)―

542,000(368)

183,800 (Note 20)

Distribution of cash in
October 12, 2021 excess of retained earnings(return of capital)―

542,000(527)

183,272 (Note 21)

April 22, 2021

(Note 1) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 2) New investment units were issued through public offering at an issue price of ¥270,000 (paid-in amount of ¥260,550) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 3) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥260,550 per unit.
(Note 4) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 16, 2017, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥243 per unit was declared as distribution of cash forthe 1st fiscal period (fiscal period ended January 31, 2017), the payout of which commenced on April 21, 2017.
(Note 5) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2017, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥204 per unit was declared as distribution of cash forthe 2nd fiscal period (fiscal period ended July 31, 2017), the payout of which commenced on October 13, 2017.
(Note 6) New investment units were issued through public offering at an issue price of ¥367,581 (paid-in amount of ¥355,139) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 7) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥355,139 per unit.
(Note 8) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2018, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥275 per unit was declared as distribution of cash forthe 3rd fiscal period (fiscal period ended January 31, 2018), the payout of which commenced on April 23, 2018.
(Note 9) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2018, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥335 per unit was declared as distribution of cash forthe 4th fiscal period (fiscal period ended July 31, 2018), the payout of which commenced on October 19, 2018.
(Note 10) New investment units were issued through public offering at an issue price of ¥313,986 (paid-in amount of ¥303,680) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 11) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥303,680 per unit.
(Note 12) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2019, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥322 per unit was declared as distribution of cash forthe 5th fiscal period (fiscal period ended January 31, 2019), the payout of which commenced on April 23, 2019.
(Note 13) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2019, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥685 per unit was declared as distribution of cash forthe 6th fiscal period (fiscal period ended July 31, 2019), the payout of which commenced on October 15, 2019.
(Note 14) New investment units were issued through public offering at an issue price of ¥495,747 (paid-in amount of ¥479,476) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 15) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥479,476 per unit.
(Note 16) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 13, 2020, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥679 per unit was declared as distribution of cash forthe 7th fiscal period (fiscal period ended January 31, 2020), the payout of which commenced on April 23, 2020.
(Note 17) New investment units were issued through public offering at an issue price of ¥493,350 (paid-in amount of ¥477,411) per unit mainly for the purposeof procuring funds for acquisition of new properties.
(Note 18) Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥477,411 per unit.
(Note 19) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 16, 2020, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥777 per unit was declared as distribution of cash forthe 8th fiscal period (fiscal period ended July 31, 2020), the payout of which commenced on October 21, 2020.
(Note 20) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 12, 2021, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥679 per unit was declared as distribution of cash forthe 9th fiscal period (fiscal period ended January 31, 2021), the payout of which commenced on April 22, 2021.
(Note 21) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2021, distribution of cash in excess of retained earnings-8-(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥974 per unit was declared as distribution of cash forthe 10th fiscal period (fiscal period ended July 31, 2021), the payout of which commenced on October 12, 2021.

[Historical market price of investment securities]
The following are the highest and lowest prices (closing price) by fiscal period on the Tokyo Stock Exchange Real Estate Investment
Trust Securities Market on which MFLP-REIT investment securities are listed.

Fiscal period

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

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

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

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

6th period(From February 1,
2019
to July 31, 2019)

Highest (yen)627,000

596,000

577,000

534,000

396,000

Lowest (yen)467,000

478,500

336,000

395,500

325,500(4) Distribution
The following is the distribution, etc. performance up to the fiscal period under review.
10th period
9th period
8th period
7th period
6th period(From February (From August 1, (From February (From August 1, (From February
1, 2021
2020
1, 2020
2019
1, 2019
to July 31,
to January 31,
to July 31,
to January 31,
to July 31,
2021)
2021)
2020)
2020)
2019)

Fiscal period
Total amount of
unappropriated retained
earnings
Retained earnings
Total amount of distributionof cash[Distribution per unit]
Of which: Total amount of
distribution of earnings[Distribution of earnings perunit]
Of which: Total amount ofreturn of capital[Return of capital per unit]
Of total amount of return ofcapital: Total amount of
distribution from allowancefor temporary difference
adjustment[Of return of capital per unit:
Distribution from allowancefor temporary difference
adjustment per unit]
Of total amount of return ofcapital: Total amount of
distribution from distribution
reducing unitholders’ capitalfor tax purposes[Of return of capital per unit:
Distribution from distribution
reducing unitholders’ capitalfor tax purposes](Note)(thousandsof yen)3,708,373

3,579,722

2,734,419

2,238,074

2,202,626

9

354

219

79

257

4,236,272

3,947,386

3,076,857

2,495,336

2,461,984(yen)[7,816][7,283][6,977][6,584][6,496](thousandsof yen)3,708,364

3,579,368

2,734,200

2,237,995

2,202,369(yen)[6,842][6,604][6,200][5,905][5,811](thousandsof yen)527,908

368,018

342,657

257,341

259,615

(yen)

[974]

[679]

[777]

[679]

[685]

(thousandsof yen)

―

―

―

―

―

(yen)

―

―

―

―

―

(thousandsof yen)527,908

368,018

342,657

257,341

259,615

(yen)

[974]

[679]

[777]

[679]

[685]

(thousandsof yen)(thousandsof yen)For a summary of MFLP-REIT’s distribution policy and distributions for the fiscal period under review, please refer to “(2) Developments inmanagement of assets in the fiscal period under review; iv) Summary of business performance and distributions” presented earlier in this document.

-9-(5) Future management policy
MFLP-REIT has established a strategic and collaborative partnership in the logistics facilities business with Mitsui Fudosan, underwhich it seeks to maximize unitholder value by focusing investments primarily in logistics facilities as a basic policy. Based on thispolicy, in addition to expansion of asset size for the purpose of further stabilizing the revenues base continuing into future periods,
MFLP-REIT will perform stable and efficient financial management by addressing changes in the external and internal environment
to maximize unitholder value.
i) External growth strategy“External growth based on the growth potential and extensive pipeline of Mitsui Fudosan’s logistics facilities business”
MFLP-REIT aims for continuous growth by focusing investments on MFLP facilities (leading-edge logistics facilities with Mitsui
Fudosan quality (Note 1)), utilizing the right of first look and preferential negotiation based on “Right of first look and preferential
negotiation agreement” that was concluded with Mitsui Fudosan, which boasts high growth in the logistics facilities business, and
the Asset Management Company.
(Note 1) Based on the principles of “harmonious coexistence” and “linking diverse values” set by the Mitsui Fudosan Group (Note 2), Mitsui Fudosan’slogistics facilities business keeps up efforts aimed at not only providing logistics facilities space but also creating value beyond conventionalboundaries. In order to achieve this, MFLP-REIT incorporates the highly-specialized and advanced management, operational know-how, etc.
accumulated in the office building business, retail properties business, etc. and the know-how, etc. accumulated through urban development as acomprehensive real estate company. It also captures the diverse needs that change with the times of the various stakeholders associated with logistics
facilities (tenants, people working at the logistics facilities, and local community). MFLP-REIT refers to the quality of logistics facilities realized
through these efforts by the name “Mitsui Fudosan quality.”(Note 2) “Mitsui Fudosan Group” refers to a corporate group comprising Mitsui Fudosan, Mitsui Fudosan’s consolidated subsidiaries and Mitsui Fudosan’s
associates accounted for using the equity method. The same shall apply hereinafter.

ii) Internal growth strategy“Stable management using the Platform (business foundation) and client network of the Mitsui Fudosan Group”
MFLP-REIT aims for stable management by utilizing the Platform (business foundation) and client network that the Mitsui FudosanGroup has developed over years as a comprehensive real estate company.
iii) Financial strategy“Financial and cash management with an emphasis on stability and efficiency”
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units and borrowings,
and at the same time it will aim to secure both stable distribution levels and efficient cash management for distributions throughcontinuous distributions in excess of retained earnings (return of capital) based on cash flow (FFO).
(6) Significant subsequent events
Not applicable.

- 10 -

2. Overview of the Investment Corporation(1) Status of investments in capital
10th period(July 31, 2021)

9th period(January 31,
2021)

8th period(July 31, 2020)

7th period(January 31,
2020)

6th period(July 31, 2019)(units)8,000,000

8,000,000

8,000,000

8,000,000

8,000,000

Fiscal period
Total number ofinvestment units
authorized
Total number ofinvestment units issued
and outstanding
Unitholders’ capital, net(Note)(units)542,000

542,000

441,000

379,000

379,000(millions ofyen)

183,800

184,168

136,292

106,822

107,081

Number of unitholders(unitholders)

7,446

8,253

7,402

6,680

8,122

(Note)“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(2) Major unitholders
Of the unitholders as of July 31, 2021, the following are the top ten unitholders in terms of investment unit-holding ratio.
Number ofinvestment
units owned(units)Number of investment units owned
expressed as a percentage of total
number of investment units issued
and outstanding (%)(Note)The Master Trust Bank of Japan, Ltd. (trust account)89,474

16.50

Custody Bank of Japan, Ltd. (trust account)

64,22811.85

Mitsui Fudosan Co., Ltd.

28,900

5.33

Custody Bank of Japan, Ltd. (securities investment trust account)

24,855

4.58

The Nomura Trust and Banking Co., Ltd. (investment trust account)

21,218

3.91

SSBTC Client Omnibus Account12,606

2.32

Stichting PGGM Depositary PGGM Listed Real Estate PF Fund

11,8502.18

The Bank of New York Mellon 140044

10,653

1.96

State Street Bank West Client - Treaty 505234

7,421

1.36

State Street Bank and Trust Company 505103

7,186

1.32

278,391

51.36

Name

Total
(Note)“Number of investment units owned expressed as a percentage of total number of investment units issued and outstanding” is rounded down to thesecond decimal places.

- 11 -

(3) Matters concerning directors, etc.
i) Executive director, supervisory directors and independent auditor in the fiscal period under review

Position

Executive director

Name

Key concurrently-held position, etc.

Masayuki Isobe
Izuru Goto

Supervisory director
Tadao Toyoshima

Total amount ofcompensation byposition for theapplicable operating
period(thousands of yen)

―

2,400

Attorney, City-Yuwa Partners
Manager of Legal Division (part-time), Japan Virtualand Crypto assets Exchange Association
Director (Audit & Supervisory Committee Member),
Square Enix Holdings Co., Ltd.

Independent auditor KPMG AZSA LLC

―

1,500
1,500
10,000(Note 1) None of the executive director or supervisory directors own MFLP-REIT investment units in their own name or in the name of others.
(Note 2) Supervisory directors may be directors of other corporations other than those stated above, but none of them, including those above, have any
interest in MFLP-REIT.
(Note 3) The amount for the independent auditor represents the amount payable as compensation for the audit for the fiscal period under review, plus thecompensation for the audit of English financial statements (¥2,200 thousand).

ii) Policy for deciding on dismissal and refusal of reappointment of the independent auditor
Decisions are made at a meeting of the Board of Directors of MFLP-REIT by taking into account the various circumstances in acomprehensive manner.
(4) Asset management company, custodian, and general administrators
The following are the asset management company, custodian and general administrators as of July 31, 2021.
Entrustment category

Name

Asset management company

Mitsui Fudosan Logistics REIT Management Co., Ltd.

Custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (transfer agent)

Sumitomo Mitsui Trust Bank, Limited

General administrator (institutional)

Sumitomo Mitsui Trust Bank, Limited

General administrator (administration related toinvestment corporation bonds)

Sumitomo Mitsui Banking Corporation

General administrator (accounting)Reiwa Accounting Holdings Co., Ltd.

General administrator (tax payment)

Reiwakaikeisha Tax Corporation- 12 -

3. Status of Assets under Management of the Investment Corporation(1) Composition of assets of the investment corporation
10th period(As of July 31, 2021)
Type of asset

Use

Geographic classification(Note 1)

9th period(As of January 31, 2021)

Total amount held(millions of yen)
(Note 2)

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

Total amount held(millions of yen)
(Note 2)

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

Tokyo metropolitan area

137,88146.6

138,849

48.7

Kansai area

81,41527.5

82,02028.8

Other areas

42,47014.3

42,924

15.1

Subtotal

261,767

88.4

263,795

92.5

Tokyo metropolitan area

26,851

9.1

11,850

4.2

Kansai area

―

―

―

―

Other areas

―

―

―

―

Subtotal

26,851

9.1

11,850

4.2

Real estate in trust total

288,618

97.5

275,645

96.6

Deposits and other assets

7,484

2.5

9,559

3.4

Total assets

296,103

100.0

285,205

100.0

Logistics
facilities

Real estate intrust(Note 4)(Note 5)
Industrial realestate(Note 6)(Note 1) “Tokyo metropolitan area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture, Saitama Prefecture and Ibaraki Prefecture.
“Kansai area” refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, Nara Prefecture and Shiga Prefecture.
(Note 2) “Total amount held” is based on the carrying amount (for real estate in trust, the book value after depreciation and amortization) as at the end ofeach accounting period, rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is rounded to the first decimal place.
(Note 4) “Real estate in trust” refers to real estate of trust beneficiary interests that have mainly real estate in trust.
(Note 5) For real estate in trust, the amount does not include the amount of construction in progress in trust.
(Note 6) “Industrial real estate” refers to data centers, communications facilities, research facilities, factories, supply and treatment facilities, and other realestate serving as corporate bases. The same shall apply hereinafter.

- 13 -

(2) Major assets held
The following summarizes the assets held by MFLP-REIT as of July 31, 2021.

Book value
Name of real estate, etc.
(millions of yen)

As a percentage
Leasable area
Occupancy rate
Leased area (m²)
of total property(m²)(%)(Note 2)leasing business(Note 1)
(Note 3)revenues (%)

Main use

GLP/MFLP Ichikawa
Shiohama(Note 4)

14,81150,81350,813100.0

5.3

Logistics
facilities

MFLP Kuki

11,55767,92567,925100.0

5.2

Logistics
facilities

MFLP Yokohama
Daikoku(Note 4)9,690

47,94447,944100.0

3.7

Logistics
facilities

MFLP Yashio

9,114

39,692

39,692100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi

7,238

40,95840,958100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Funabashi
Nishiura

6,514

31,03431,034100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Kashiwa

5,858

31,291

31,291100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Sakai

22,976112,148

112,148

100.0

8.8

Logistics
facilities

MFLP Komaki

7,692

40,60540,605100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Hino(Note 4)

12,13446,801

46,741

99.9

4.1

Logistics
facilities

MFLP Hiratsuka

6,748

33,05533,055100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Tsukuba

Existing
Existingbuilding: 37,938 building: 37,938
8,512
Annex building: Annex building:
25,60025,600100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Inazawa

15,461

68,922

68,922100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi II

12,64848,03248,032100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Fukuoka I

5,042

32,21632,216100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Prologis Park
Kawagoe(Note 4)

14,60956,72356,723100.0

4.8

Logistics
facilities- 14 -

Book value
Name of real estate, etc.
(millions of yen)

As a percentage
Leasable area
Occupancy rate
Leased area (m²)
of total property(m²)(%)(Note 2)leasing business(Note 1)
(Note 3)revenues (%)

Main use

MFLP Hiroshima I

14,273

66,66566,665100.0

5.5

Logistics
facilities

MFLP Ibaraki

58,438208,811

208,811

100.0

19.4

Logistics
facilities

MFLP Kawaguchi I

18,443

48,11948,119100.0

Not disclosed(Note 5)

Logistics
facilities

MFIP Inzai

11,752Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Industrial realestateMFIP Inzai II

15,09830,90630,906100.0

Not disclosed(Note 5)

Industrial realestateTotal

288,618

Not disclosed(Note 5)

Not disclosed(Note 5)

100.0

100.0

(Note 1) “Leasable area” is the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable
based on the lease agreement or floor plan, etc. for such building as of July 31, 2021, and does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.
(Note 2) “Leased area” is the total leased area rounded down to the nearest whole number presented in each lease agreement for buildings in each portfolio
asset of MFLP-REIT as of July 31, 2021 (Excluding lease agreements concerning shops, vending machines, photovoltaic power generation facilities
and parking lots. Lease agreements for said buildings hereinafter referred to as “Subject Lease Agreements” in (2)). If a master lease agreement has
been executed for each portfolio asset held by MFLP-REIT as of July 31, 2021, the total leased area represents the sum total of the area that is
actually leased based on the lease agreement signed with end-tenant rounded down to the nearest whole number. Total leased area is calculated
based on the assumption that the subject property is actually leased if the Subject Lease Agreement has been executed as of July 31, 2021 even if
there is no occupancy / delivery relating to the subject property as of July 31, 2021.
(Note 3) “Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for each property held by MFLP-REIT as of July 31, 2021, rounded to the first decimal place. Occupancy rates for the total section are
the share of the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.
(Note 4) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Hino” and “MFLP Prologis Park Kawagoe,” leasable area and leased
area are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT holds as of July 31, 2021 (50%, 50%,
25% and 50%, respectively).
(Note 5) Not disclosed, because consent has not been obtained from the lessee.

- 15 -

(3) Real estate assets in portfolio
The following summarizes the assets held by MFLP-REIT as of July 31, 2021.

Name of real estate,
etc.

Location

Form of ownership

Leasable area(m²)
(Note 1)

Appraisal value atBook value at
end of period
end of period(millions of yen)(millions of yen)
(Note 2)

GLP/MFLP Ichikawa
Real estate trust
1-6-3 Shiohama, Ichikawabeneficiary
Shiohamashi, Chibainterests(Note 3)50,81318,35014,811MFLP Kuki

1-10 Kiyokucho, Kuki-shi,
SaitamaReal estate trust
beneficiaryinterests

67,925

14,70011,557MFLP Yokohama
Daikoku(Note 3)43-1 Daikokucho, Tsurumi- Real estate trustku, Yokohama-shi,
beneficiary
Kanagawa
interests

47,944

11,2009,690

MFLP Yashio

99-1 Tsubutakita,
Minamiushiroya, Yashioshi, Saitama

Real estate trust
beneficiaryinterests

39,692

11,5009,114

MFLP Atsugi

4021-1 Sakuradai, Nakatsu, Real estate trust
Aikawamachi, Aiko-gun,beneficiary
Kanagawa
interests

40,958

9,490

7,238

MFLP Funabashi
Nishiura

3-10-13 Nishiura,
Funabashi-shi, Chiba

Real estate trust
beneficiaryinterests

31,034

8,000

6,514

MFLP Kashiwa

259-1 Mukaiwari,
Aotashindentobichi,
Kashiwa-shi, Chiba

Real estate trust
beneficiaryinterests

31,291

7,190

5,858

MFLP Sakai

Real estate trust
1-171 Chikkoyawatamachi,
beneficiary
Sakai-ku, Sakai-shi, Osakainterests

112,148

26,10022,976MFLP Komaki

Real estate trust
2020-1 Higashimae, Honjo,
beneficiary
Komaki-shi, Aichi
interests

40,605

8,930

7,692

MFLP Hino(Note 3)3-1-2 Asahigaoka, Hinoshi, Tokyo

Real estate trust
beneficiaryinterests

46,801

13,10012,134

MFLP Hiratsuka

2-1544-5 Nishishindo,
Hiratsuka-shi, Kanagawa

Real estate trust
beneficiaryinterests

33,055

7,740

6,748

MFLP Tsukuba

3-35-2 and 3-35-3,
Real estate trust
Shihogaoka, Tsukubamirai- beneficiaryshi, Ibaraki
interests

Existing building:
37,938Annex building:
25,60010,5008,512

MFLP Inazawa

2-1 Okudaosawa-cho,Inazawa-shi, Aichi

Real estate trust
beneficiaryinterests

68,922

17,50015,461MFLP Atsugi II

84-1 Happongi, Ishida,
Real estate trust
Isehara-shi, Kanagawa, and beneficiary
other 3 lots of landinterests

48,032

14,20012,648MFLP Fukuoka I

16-10 Butsudo, Shinbaru,
Sue-machi, Kasuya-gun,
Fukuoka, and other 4 lotsof land

Real estate trust
beneficiaryinterests

32,216

5,850

5,042

MFLP Prologis Park
Kawagoe(Note 3)

1-9-3 Minamidai,
Kawagoe-shi, Saitama

Real estate trust
beneficiaryinterests

56,723

15,95014,609- 16 -Name of real estate,
etc.

Location

Form of ownership

Leasable area(m²)
(Note 1)

Appraisal value atBook value at
end of period
end of period(millions of yen)(millions of yen)
(Note 2)

MFLP Hiroshima I

4-2876-26
Real estate trust
Kanonshinmachi, Nishi-ku, beneficiary
Hiroshima-shi, Hiroshima interests

66,665

15,40014,273

MFLP Ibaraki

4 Saito Akane, Ibaraki-shi,
Osaka

Real estate trust
beneficiaryinterests

208,81163,00058,438MFLP Kawaguchi I

4-3342-1 Ryoke,
Kawaguchi-shi, Saitama,
and other 4 lots of land

Real estate trust
beneficiaryinterests

48,11919,10018,443

1,135,300

297,800

261,767

Logistics facilities subtotal

MFIP Inzai

2-101-14 Izumino, Inzaishi, Chiba

Real estate trust
beneficiaryinterests

Not disclosed(Note 4)13,00011,752MFIP Inzai II

2-101-11 Izumino, Inzaishi, Chiba, and other 2 lotsof land

Real estate trust
beneficiaryinterests

30,906

15,50015,098Industrial real estate subtotal

Not disclosed(Note 4)28,50026,851Total

Not disclosed(Note 4)

326,300

288,618(Note 1) “Leasable area” is the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable
based on the lease agreement or floor plan, etc. for such building as of July 31, 2021, and does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.
(Note 2) “Appraisal value at end of period” is the appraisal value as of the valuation date of July 31, 2021 by real estate appraisers based on the asset
valuation methods and standards set forth in the Articles of Incorporation of MFLP-REIT and the rules and requirements imposed by The Investment
Trusts Association, Japan. The appraisal of each asset held is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa
Real Estate Appraisal Co., Ltd. and CBRE K.K.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Hino” and “MFLP Prologis Park Kawagoe,” leasable area, appraisal
value at end of period, and book value at end of period are the prorated figures equivalent to the quasi co-ownership interest in each property that
MFLP-REIT holds as of July 31, 2021 (50%, 50%, 25% and 50%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 17 -

The following is the status of leasing of real estate, etc. held by MFLP-REIT.
10th period(From February 1, 2021 to July 31, 2021)

Name of real estate, etc.

Total number of Occupancy ratetenants[at end of[at end of
period]period](%)(Note 1)
(Note 2)

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

Property
Property
As a
As aleasingleasing
percentage of Total number of Occupancy rate
percentage ofbusinessbusiness
total property
tenants[at end of
total property
revenues
revenues
leasing[at end of
period]leasing[during[duringbusiness
period](%)
business
period]period]revenues(Note 1)
(Note 2)revenues(millions of(millions of
(%)
(%)
yen)
yen)

GLP/MFLP Ichikawa
Shiohama (Note 3)

5

100.0

494

5.3

5

100.0

488

6.0

MFLP Kuki

3

100.0

479

5.2

3

100.0

472

5.8

MFLP Yokohama Daikoku(Note 3)

4

100.0

341

3.7

4

100.0

337

4.2

MFLP Yashio

2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Atsugi

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Funabashi Nishiura

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Kashiwa

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Sakai

8

100.0

8.8

8

100.0

MFLP Komaki

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

MFLP Hino(Note 3)

15

99.9

15

99.9

MFLP Hiratsuka

Not disclosed(Note 4)100.0

Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Tsukuba

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Inazawa

2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Atsugi II

2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Fukuoka I

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Prologis Park
Kawagoe (Note 3)

10

100.0

448

4.8

10

100.0

449

5.5

MFLP Hiroshima I

4

100.0

507

5.5

4

100.0

486

6.0

MFLP Ibaraki

9

100.0

1,799

19.4

9

100.0

1,130

13.9

MFLP Kawaguchi I

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)Not disclosed(Note 4)100.0

Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)100.0

Not disclosed Not disclosed(Note 4)(Note 4)

Logistics facilities subtotal

814

380

- 18 -

4.1

813

10.0

Not disclosed Not disclosed(Note 4)(Note 4)382

4.7

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

Name of real estate, etc.

MFIP Inzai

MFIP Inzai II

Total number of Occupancy ratetenants[at end of[at end of
period]period](%)(Note 1)
(Note 2)Not disclosed(Note 4)
1

Industrial real estate subtotal

Not disclosed(Note 4)Total

Not disclosed(Note 4)9th period(From August 1, 2020 to January 31, 2021)

Property
Property
As a
As aleasingleasing
percentage of Total number of Occupancy rate
percentage ofbusinessbusiness
total property
tenants[at end of
total property
revenues
revenues
leasing[at end of
period]leasing[during[duringbusiness
period](%)
business
period]period]revenues(Note 1)
(Note 2)revenues(millions of(millions of
(%)
(%)
yen)
yen)

Not disclosed Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)(Note 4)100.0

Not disclosed Not disclosed(Note 4)(Note 4)―Not disclosed Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)(Note 4)
100.0

9,267

100.0

Not disclosed(Note 4)Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)―――Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)
100.0

8,139

100.0

(Note 1) “Total number of tenants” is the total number of the lease agreements for buildings in the portfolio assets held by MFLP-REIT as of each accounts
settlement date. If a master lease agreement has been executed for each portfolio asset held by MFLP-REIT as of each accounts settlement date, itis the total number of the end-tenants. However, if one lessee enters into a multiple number of the Subject Lease Agreements for the same buildingof assets held by MFLP-REIT as of each accounts settlement date, the number of tenants is calculated on the assumption that such lessee is one
party.
(Note 2) “Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for each property held by MFLP-REIT as of each accounts settlement date, rounded to the first decimal place. Occupancy rates for the
total section are the share of the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Hino” and “MFLP Prologis Park Kawagoe,” property leasing
business revenues and figures expressed as a percentage of total property leasing business revenues are the prorated figures equivalent to the quasi
co-ownership interest in each property that MFLP-REIT holds as of each accounts settlement date (50%, 50%, 25% and 50%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

(4) Schedule of renewable energy power generation facilities
Not applicable.
(5) Schedule of rights to operate public facilities, etc.
Not applicable.
(6) Status of other assets
Trust beneficiary interests that have real estate as the main assets in trust, etc. are listed all at once in “(3) Real estate assets in
portfolio” presented earlier in this document, and there are no main specified assets invested by MFLP-REIT other than those listed
there in the portfolio as of July 31, 2021.
i) Itemization of investment securities portfolio assets
Not applicable.
ii) Table of status of contract amount, etc. and fair value of specified transactions
Not applicable.
(7) Status of holding of assets by country and region
Not applicable, because there are none in countries and regions other than Japan.

- 19 -

4. Capital Expenditures of Real Estate Held(1) Schedule of capital expenditures
Of the capital expenditures accompanying renovations, etc. currently planned for real estate and real estate in trust of real estate
trust beneficiary interests held by MFLP-REIT, the following are the major planned amounts. There may be cases where the planned
construction amount ends up being in part expensed in accounting instead of being capitalized.
Planned construction amount(millions of yen)
(Note)Name of real estate,
etc.

Location

GLP/MFLP
Ichikawa Shiohama

Ichikawa, Chiba

Installation of LED
lighting

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Sakai

Sakai, Osaka

MFLP Sakai

Sakai, Osaka

MFLP Sakai

Sakai, Osaka

MFLP Sakai

Sakai, Osaka

MFLP Inazawa

Inazawa, Aichi

MFLP Ibaraki

Ibaraki, Osaka

MFLP Ibaraki

Ibaraki, Osaka

MFLP Ibaraki

Ibaraki, Osaka

MFLP Ibaraki

Ibaraki, Osaka

MFLP Ibaraki

Ibaraki, Osaka(Note)

PurposeScheduled timeTotalamountAmountpaid
duringperiodTotalamountalready
paid

From December 2021
to January 2022

20

―

―

Updating of security
systems (2nd stage)

From July 2021
to December 2021

14

―

―

Lot segmentation
related construction
Installation of air
conditioning
equipment
Installation of LED
lighting

From September 2021
to October 2021

15

―

―

From July 2021
to October 2021

153

―

―

In November 2021

25

―

―

In November 2021

18

―

―

In July 2022

14

―

―

From February 2022
to March 2022

15

―

―

In January 2022

12

―

―

From February 2022
to May 2022

57

―

―

In February 2022

19

―

―

Replacement of
automatic fire alarms

From February 2022
to March 2022

17

―

―

Installation of air
conditioning
equipment

From February 2022
to April 2022

14

―

―

Lot segmentation
related construction
Extra high-voltage
substation renewal
Construction to
introduce output limits
on solar panel facilities
Lot segmentation
related construction
Replacement of
exterior-wall
expansion-joint filler
Replacement ofelectric water heaters

For “GLP/MFLP Ichikawa Shiohama” and “MFLP Yokohama Daikoku,” planned construction amounts are the prorated figures equivalent to thequasi co-ownership interest in each property that MFLP-REIT holds (50% and 50%, respectively).

- 20 -

(2) Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the fiscal period underreview for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period under review amounted to ¥110 million
and, other than this, there was ¥126 million in repair expenses categorized as operating expenses in the fiscal period under review.
Name of real estate,
etc.

Location

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku
MFLP Yokohama
Daikoku

PurposeReplacement of billingmetersReplacement ofcontrol panel for main
vertical conveyor
chain (Section 1)
Replacement ofcontrol system formain vertical conveyor
chain (Section 2)

Construction amount(millions of yen)
(Note)In February 2021

7

In July 2021

5

In July 2021

4

Exterior wall painting(Section 8)

From January 2021
to June 2021

30

Yokohama, Kanagawa

Repair work in public
open space (1st stage)

From April 2021
to June 2021

5

Yokohama, Kanagawa

Updating of security
systems (1st stage)

In May 2021

4

From May 2021
to June 2021

5

In July 2021

7

In July 2021

4In March 2021

3

From February 2021
to March 2021

4

MFLP Yashio

Yashio, Saitama

MFLP Sakai

Sakai, Osaka

MFLP Sakai

Sakai, Osaka

MFLP Tsukuba

Tsukubamirai, Ibaraki

MFLP Ibaraki

Ibaraki, Osaka

Air conditioner
compressor
replacement
construction
Installation of LED
lighting
Tile carpet
replacement
construction
Replacement of fire
extinguishing system(existing building)Grounding resistance
improvement work

Other capital expenditures

27
Total

(Note)

Period110

For “MFLP Yokohama Daikoku,” construction amount is the prorated figure equivalent to the quasi co-ownership interest in the property that
MFLP-REIT held (50%) at the respective times the work was conducted.

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

- 21 -

5. Status of Expenses and Liabilities(1) Details of expenses related to asset management(Thousands of yen)Item

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

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

Asset management fee (Note)

890,115

788,967

Asset custody fee

14,26010,412Administrative service fees

19,887

19,388

Directors’ compensations

5,400

5,400

Audit fee

10,00010,000

Other expenses

55,52647,487995,189881,656

Total(Note) Other than the amount stated above, there is an asset management fee associated with a property acquisition factored into the bookvalue of the properties (the 9th period: ¥193,500 thousand; the 10th period: ¥37,875 thousand).

- 22 -

Short-term loans

Category(2) Debt financing status
The following is the status of loans as of July 31, 2021.
Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse―

0.0923Feb. 15,
2021

Bulletrepayment(Note 3)3,500―

0.0773Feb. 15,
2021

Bulletrepayment(Note 3)―2,000

0.1086

Aug. 20,
2021

Bulletrepayment(Note 3)

5,900

2,000

Sept. 1,
2016

2,000

2,000

0.2713

Sept. 1,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.4213

Sept. 1,
2026

Bulletrepayment(Note 3)Mar. 15,
2018

800

800

0.2400Mar. 15,
2022

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2500Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)Mar. 2,
2020

1,700

1,700

0.2000Mar. 4,2024

Bulletrepayment(Note 3)Mar. 2,
2020

1,700

1,700

0.3723Mar. 4,2030

Bulletrepayment(Note 3)Oct. 6,
2020

1,500

1,500

0.2829Oct. 6,2027

Bulletrepayment(Note 3)Oct. 6,
2020

1,500

1,500

0.4168Oct. 6,2029

Bulletrepayment(Note 3)Mar. 16,
2021

―

800

0.3743Mar. 16,
2028

Bulletrepayment(Note 3)Mar. 16,
2021

―

800

0.6325Mar. 16,2031

Bulletrepayment(Note 3)

Sept. 1,
2016

2,000

2,000

0.3050

Sept. 1,
2023

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.3813

Sept. 1,
2025

Bulletrepayment(Note 3)Feb. 4,
2019

1,500

1,500

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)Mar. 2,
2020

800

800

0.1059Mar. 3,2025

Bulletrepayment(Note 3)Mar. 16,
2021

―

2,000

0.1950Mar. 16,2026

Bulletrepayment(Note 3)

Aug. 2,
2016

400

400

0.1425

Aug. 2,2022

Bulletrepayment(Note 3)

Aug. 2,
2016

1,700

1,700

0.2113

Aug. 2,2024

Bulletrepayment(Note 3)

LenderBorrowingdate

Sumitomo Mitsui Trust
Bank, Limited

Jan. 7,
2021

2,400

Jan. 6,2021
May 20,2021

Mizuho Bank, Ltd.

SubtotalLong-term loans

Sumitomo Mitsui
Banking Corporation

Sumitomo Mitsui Trust
Bank, Limited

Mizuho Bank, Ltd.

- 23 -

Remarks

Unsecured
Nonguaranteed

Unsecured
NonguaranteedCategory

LenderMizuho Bank, Ltd.

Borrowingdate

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUseMar. 15,
2018

900

900

0.4895

Sept. 15,
2027

Bulletrepayment(Note 3)Feb. 4,
2019

2,000

2,000

0.3687

Aug. 4,2028

Bulletrepayment(Note 3)Apr. 6,
2020

1,200

1,200

0.4942

Apr. 8,2030

Bulletrepayment(Note 3)Oct. 6,
2020

1,000

1,000

0.4707

Oct. 7,2030

Bulletrepayment(Note 3)Mar. 16,
2021

―

1,600

0.6325Mar. 17,
2031

Bulletrepayment(Note 3)

Sept. 1,
2016

2,200

2,200

0.1826

Mar. 1,
2023

Bulletrepayment(Note 3)Mar. 15,
2018

800

800

0.2400Mar. 31,
2022

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2500Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Feb. 5,
2020

800

800

0.2385

Feb. 5,2027

Bulletrepayment(Note 3)Feb. 5,
2020

800

800

0.4272Feb. 5,2030

Bulletrepayment(Note 3)Oct. 6,
2020

1,300

1,300

0.2829Oct. 6,2027

Bulletrepayment(Note 3)Oct. 6,
2020

1,200

1,200

0.4168Oct. 9,2029

Bulletrepayment(Note 3)Mar. 16,
2021

―

500

0.3743Mar. 16,
2028

Bulletrepayment(Note 3)Mar. 16,
2021

―

500

0.4408Mar. 16,
2029

Bulletrepayment(Note 3)

Sept. 1,
2016

600

600

0.3237Mar. 1,
2024

Bulletrepayment(Note 3)

Sept. 1,
2016

700

700

0.3425

Sept. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

300

300

0.2188Mar. 15,
2022

Bulletrepayment(Note 3)Mar. 15,
2018

300

300

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.1163Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)Apr. 6,
2020

500

500

0.4942

Apr. 8,2030

Bulletrepayment(Note 3)Oct. 6,
2020

2,000

2,000

0.3255Oct. 6,2028

Bulletrepayment(Note 3)

Remarks

Long-term loans

MUFG Bank, Ltd.

Mizuho Trust & Banking
Co., Ltd.

- 24 -

Unsecured
NonguaranteedCategory

LenderDevelopment Bank ofJapan Inc.

The Bank of Fukuoka,
Ltd.

Long-term loans

Nippon Life Insurance
Company

Borrowingdate

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUseAug. 2,
2016

2,100

2,100

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)Oct. 6,
2020

1,000

1,000

0.4851

Oct. 9,2029

Bulletrepayment(Note 3)

Aug. 2,
2016

1,300

1,300

0.2169Feb. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

400

400

0.3563Mar. 14,2025

Bulletrepayment(Note 3)Feb. 4,
2019

2,000

2,000

0.3988Feb. 5,2029

Bulletrepayment(Note 3)Apr. 6,
2020

1,800

1,800

0.4942

Apr. 8,2030

Bulletrepayment(Note 3)Oct. 6,
2020

2,000

2,000

0.3255Oct. 6,2028

Bulletrepayment(Note 3)

Aug. 2,
2016

1,000

1,000

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Feb. 5,
2020

1,000

1,000

0.3360Feb. 7,2028

Bulletrepayment(Note 3)Oct. 6,
2020

1,500

1,500

0.3255Oct. 6,2028

Bulletrepayment(Note 3)Mar. 16,
2021

―

1,000

0.3464Mar. 16,
2028

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.3319Sept. 13,2024

Bulletrepayment(Note 3)Feb. 4,
2019

600

600

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Mar. 2,
2020

900

900

0.3723Mar. 4,2030

Bulletrepayment(Note 3)Oct. 6,
2020

1,000

1,000

0.5377

Oct. 7,2030

Bulletrepayment(Note 3)Mar. 16,
2021

―

800

0.7140Mar. 16,2032

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.3563Mar. 14,2025

Bulletrepayment(Note 3)Feb. 4,
2019

600

600

0.2087

Aug. 4,2025

Bulletrepayment(Note 3)Mar. 2,
2020

800

800

0.1836

Mar. 2,2027

Bulletrepayment(Note 3)

The Norinchukin BankThe Yamaguchi Bank,Ltd.

Mitsui Sumitomo
Insurance Company,
Limited- 25 -

Remarks

Unsecured
NonguaranteedCategory

LenderMitsui Sumitomo
Insurance Company,
LimitedBalance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse

Oct. 6,
2020

1,000

1,000

0.2629Apr. 6,2027

Bulletrepayment(Note 3)

Dec. 3,
2018

2,000

2,000

0.2375

Dec. 1,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,800

1,800

0.1863Feb. 4,2025

Bulletrepayment(Note 3)Feb. 5,
2020

1,600

1,600

0.3809Feb. 5,2029

Bulletrepayment(Note 3)Oct. 6,
2020

2,000

2,000

0.4168Oct. 9,2029

Bulletrepayment(Note 3)Mar. 16,
2021

―

1,200

0.5937

Sept. 17,2030

Bulletrepayment(Note 3)

Dec. 3,
2018

1,000

1,000

0.3975

Dec. 3,2026

Bulletrepayment(Note 3)Mar. 2,
2020

800

800

0.2182Mar. 2,2028

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Mar. 2,
2020

500

500

0.1836

Mar. 2,2027

Bulletrepayment(Note 3)Mar. 16,
2021

―

1,000

0.3464Mar. 16,
2028

Bulletrepayment(Note 3)Feb. 5,
2020

800

800

0.3809Feb. 5,2029

Bulletrepayment(Note 3)Oct. 6,
2020

1,000

1,000

0.4168Oct. 9,2029

Bulletrepayment(Note 3)Mar. 16,
2021

―

1,000

0.5937

Sept. 17,2030

Bulletrepayment(Note 3)Mar. 2,
2020

900

900

0.3723Mar. 4,2030

Bulletrepayment(Note 3)Oct. 6,
2020

1,000

1,000

0.5377

Oct. 7,2030

Bulletrepayment(Note 3)Mar. 16,
2021

―

800

0.6325Mar. 17,
2031

Bulletrepayment(Note 3)

The Yamanashi Chuo
Bank, Ltd.

Oct. 6,
2020

1,000

1,000

0.5377

Oct. 7,2030

Bulletrepayment(Note 3)

The Chugoku Bank,
Limited

Oct. 6,
2020

1,000

1,000

0.2829Oct. 6,2027

Bulletrepayment(Note 3)The Joyo Bank, Ltd.

Oct. 6,
2020

1,000

1,000

0.2829Oct. 6,2027

Bulletrepayment(Note 3)

The Hyakugo Bank, Ltd.

Oct. 6,
2020

1,000

1,000

0.3305

Apr. 6,2027

Bulletrepayment(Note 3)

Daishi Hokuetsu Bank,
Ltd.

Oct. 6,
2020

1,000

1,000

0.3305

Apr. 6,2027

Bulletrepayment(Note 3)

The Bank of Kyoto, Ltd.

Oct. 6,
2020

500

500

0.4707

Oct. 7,2030

Bulletrepayment(Note 3)

Shinkin Central Bank

Sumitomo Life
Insurance Company

The Chiba Bank, Ltd.

Long-term loans

Borrowingdate

Shinsei Bank, Limited

The 77 Bank, Ltd.

- 26 -

Remarks

Unsecured
NonguaranteedCategory

LenderBorrowingdate

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Subtotal
Total

82,40094,40088,30096,400

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse

Remarks(Note 1) “Average interest rate” is the weighted average interest rate during the period, rounded to the fourth decimal places.
(Note 2) If the “Maturity date” is not a business day, it becomes the following business day.
(Note 3) “Use” of funds is for purchase of real estate or real estate trust beneficiary interests, refinancing of loans, working capital, etc.

(3) Status of investment corporation bonds
The following is the status of investment corporation bonds issued as of July 31, 2021.
Balance at Balance at
beginning
end of
Interest rate Maturity Redemption
Issue name
Issue date of period
period(%)
datemethod(millions of (millions of
yen)
yen)
1st Unsecured Bonds(Sustainability Bonds)

February
12, 2021

―

3,000

0.500

February
12, 2031

Bulletrepayment(Note 1)Use

Remarks(Note 2)

Unsecured
Nonguaranteed(Note 3)(Note 1) Redemption by purchase may be carried out any time on and after the day following the payment date, unless otherwise determined by the depository.
(Note 2) Refinancing funds for the loan needed to acquire specified assets subject to sustainability finance (MFLP Ibaraki and MFLP Kawaguchi I).
“Sustainability finance” refers to certain fund-raising activities carried out through sustainability bonds or sustainability loans with the aim of allocating
funds towards the acquisition of specified assets that are “Eligible Green Assets” and “Eligible Sustainable Assets” (both of which are defined in
MFLP-REIT’s “Sustainability Finance Framework”) and towards refinancing new or existing loans and investment corporation bonds to acquire theseassets.
(Note 3) These include a negative pledge clause and special pari passu conditions among specified investment corporation bonds.

(4) Status of short-term investment corporation bonds
Not applicable.
(5) Status of investment unit acquisition rights
Not applicable.

- 27 -

6. Status of Sale and Purchase during Period(1) Status, etc. of sale and purchase of real estate, etc. and asset-backed securities, etc. and infrastructure assets, etc. andinfrastructure-related assets
Acquisition
Name of real estate, etc.

MFIP Inzai II

Acquisition date

Acquisition
price(millions ofyen)(Note)March 16, 2021―

Total
(Note)

Disposition

Disposition date

Disposition
price(millions ofyen)Book value(millions ofyen)

Gain (Loss) on
sale(millions ofyen)

15,150――――15,150――――“Acquisition price” is the purchase price of trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiary interest for
the acquired asset, rounded down to the nearest million yen. The transaction price does not include consumption tax and local consumption tax or thevarious costs required in the acquisition.

(2) Status, etc. of sales and purchases of other assets
Other main assets are generally bank deposits or bank deposits within assets in trust.
(3) Investigation into value, etc. of specified assetsi) Real estate, etc.
Acquisition
Name of real estate,orType of asset
etc.
disposition

TransactiondateAcquisition
price or
disposition
price(millions ofyen)(Note 2)

Real estate
trust
Acquisition
beneficiaryinterests

March 16,2021

15,15015,150

MFIP Inzai II

Total

Appraisalvalue(millions ofyen)

Appraisal company

Date ofvaluation

15,200

CBRE K.K.

January 31,
2021

15,200――(Note 1) For transactions requiring appraisal of real estate, etc. of specified assets pursuant to Article 201, Paragraph 1 of the Investment Trust Act, CBRE K.K.
has carried out the appraisal pursuant to “Real Estate Appraisal Standards; Particulars; Chapter 3: Appraisal on Value of Real Estate Subject toSecuritization” and MFLP-REIT has been notified of the appraisal findings.
(Note 2) “Acquisition price” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax, consumption tax
and local consumption tax.

ii) Other
Not applicable.
(4) Status of interested party transactions, etc.
i)

Status of sale and purchase transactions with interested parties, etc.
Amount of purchase or sale, etc. (Note 2)
Category
Total amountAmount of purchase, etc.
(thousands of yen)
15,150,000

Amount of sale, etc.
(thousands of yen)―

Breakdown of status of transactions with interested parties, etc. (Note 1)
Mitsui Fudosan Co., Ltd.
Total

15,150,000 (100.0%)

―

(― %)

15,150,000 (100.0%)

―

(― %)

(Note 1) “Interested parties, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26,
Paragraph 1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts
Association, Japan.

- 28 -

(Note 2) “Amount of purchase or sale, etc.” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax,
consumption tax and local consumption tax.

ii)

Amount of commission fee, etc.
Total amount ofcommission fee, etc.
Category(A)(thousands of yen)

Logistics management fee

247,988

Building management fee

313,537(Note)Breakdown of transactions with interested parties, etc.
Paid toAmount paid (B)(thousands of yen)

As a percentage
of total amount(B/A)

Mitsui Fudosan Co., Ltd.

229,699

92.6%

Mitsui Fudosan Facilities Co., Ltd.

125,800

40.1%

Mitsui Fudosan Facilities West Co., Ltd.

120,072

38.3%“Interested parties, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26, Paragraph
1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.

iii) Other payments to interested parties, etc.
Other payments to interested parties, etc. are as follows:
Paid toCategory

Amount(thousands of yen)

Mitsui Fudosan Co., Ltd.

Repairs and related work, etc.

6,454

Mitsui Fudosan Building Management Co., Ltd.

Repairs and related work, etc.

31,209Mitsui Fudosan Facilities Co., Ltd.

Repairs and related work, etc.

73,938Mitsui Fudosan Facilities West Co., Ltd.

Repairs and related work, etc.

38,178

Daiichi Engei Co., Ltd.

Repairs and related work, etc.

2,940iv) Leasing transaction, etc.
Leasing transactions with interested parties, etc. are as follows:
Name of lessee

Category

Mitsui Fudosan Co., Ltd.

Rent income, etc.

Rental revenues(thousands of yen)
251,082(5) Status, etc. of transactions with the asset management company pertaining to operations of concurrent business engaged
in by the asset management company
Not applicable, because the asset management company (Mitsui Fudosan Logistics REIT Management Co., Ltd.) does not engage
in any type I financial instruments business, type II financial instruments business, real estate brokerage or specified joint real estate
venture as a concurrent business.

- 29 -

7. Accounting(1) Status, etc. of assets, liabilities, principal, and income and loss
For the status, etc. of assets, liabilities, principal, and income and loss, please refer to “Balance Sheets,” “Statements of Income,”“Statements of Changes in Net Assets,” “Notes to Financial Statements” and “Statements of Cash Distributions” presented later inthis document.
(2) Change in method of calculation of depreciation and amortization
Not applicable.
(3) Change in method of valuation of real estate, etc. and infrastructure assets, etc.
Not applicable.
(4) Status, etc. of beneficiary certificates, etc. of investment trust established by itself
Not applicable.
8.

Other

(1) Noticei) General meeting of unitholders
Not applicable.
ii) Board of Directors of the investment corporation
Not applicable.
(2) Rounding of monetary and percentage figures
Unless otherwise specified, monetary figures are rounded down and percentage figures are rounded to the nearest specified unit inthis document.
(3) Disclosure pertaining to corporation holding overseas real estate
Not applicable.
(4) Disclosure pertaining to real estate of corporation holding overseas real estate
Not applicable.

- 30 -

Mitsui Fudosan Logistics Park Inc.
Balance Sheets

AssetsCurrent assets
Cash and deposits (Notes 3 and 4)
Cash and deposits in trust (Notes 3 and 4)
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property and equipment (Note 5)
Buildings in trust
Structures in trust
Machinery and equipment in trust
Vehicles and transport equipment in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Less: accumulated depreciation
Total property and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax assets (Note 9)
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses (Note 2)
Investment corporation bond issuance costs (Note 2)
Total deferred assets
Total assets

10th period(As of July 31, 2021)(Thousands of yen)
9th period(As of January 31, 2021)

¥

¥

¥

- 31 -

738,485
5,891,099
252,479
45,399348,249
3,432
7,279,145

619,466
5,923,159
59,55746,0282,655,451
2,957
9,306,620

149,977,689
4,890,856
4,084,066
2,642
70,175
141,526,784(11,933,733)
288,618,482

139,789,196
4,600,765
4,084,066
2,642
61,229136,697,026
4,655(9,589,497)
275,650,085

1,909
1,909

3,204
3,204

10,00040,5305
1,050
51,585
288,671,977

10,00058,20116
1,050
69,268
275,722,558

127,495
24,827
152,323
296,103,446

175,926
175,926
285,205,105¥

Mitsui Fudosan Logistics Park Inc.
Balance Sheets

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable (Notes 4 and 7)
Current portion of long-term loans payable (Notes 4 and 7)
Accounts payable
Accrued expenses
Income taxes payable
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds (Notes 4 and 7)
Long-term loans payable (Notes 4 and 7)
Tenant leasehold and security deposits in trust (Note 4)
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Units authorized: 8,000,000 units as of July 31, 2021 andJanuary 31, 2021
Units issued and outstanding: 542,000 units as of July 31, 2021
and January 31, 2021
Deduction from unitholders’ capital
Unitholders’ capital (net)
Retained earnings
Total unitholders’ equity
Total net assets (Notes 6 and 10)
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

- 32 -

10th period(As of July 31, 2021)(Thousands of yen)
9th period(As of January 31, 2021)

¥

¥

¥

246,4132,000,000
1,900,000
1,037,999
8,715
708
1,613,880
114
6,807,832

422,3435,900,000
947,4104,302
940
1,516,126
114
8,791,237

3,000,000
92,500,000
6,287,007
101,787,007
108,594,839

82,400,000
6,265,894
88,665,894
97,457,132

185,362,234

185,362,234(1,562,001)
183,800,232
3,708,373
187,508,606
187,508,606
296,103,446(1,193,983)
184,168,250
3,579,722
187,747,973
187,747,973
285,205,105¥

Mitsui Fudosan Logistics Park Inc.
Statements of Income

Operating revenues
Property-related revenues (Note 8)
Other property-related revenues (Note 8)
Total operating revenues
Operating expenses
Property-related expenses (Note 8)
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Audit fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Insurance income
Compensation income for damage
Interest on refund
Other
Total non-operating income
Non-operating expenses
Interest expense
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Offering costs associated with issuance of investment units
Borrowing related expenses
Other
Total non-operating expenses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes (Note 9)
Net income (Note 10)
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss) (Note 6)

10th period(From February 1, 2021
to July 31, 2021)(Thousands of yen)
9th period(From August 1, 2020
to January 31, 2021)

¥

¥

¥
¥

8,872,000
395,689
9,267,689
4,337,470
890,115
14,26019,8875,400
10,00055,526
5,332,660
3,935,029

3,471,784
788,967
10,412
19,3885,400
10,00047,487
4,353,440
3,786,150

35
579
2,107
436
257
3,416

22
5,973
5,845
342
12,184

153,622
6,986
1,166
48,431
16,683
2,813
229,7033,708,742
712
11
723
3,708,018
354
3,708,373

119,875
43,51944,776
4,983
4,732
217,887
3,580,447
943
0944
3,579,503
219
3,579,722

10th period(From February 1, 2021
to July 31, 2021)¥
6,841

Net income per unit (Note 10)

The accompanying notes are an integral part of these financial statements.

- 33 -

7,757,788
381,8028,139,590

¥
¥

(Yen)
9th period(From August 1, 2020
to January 31, 2021)¥
7,074

Mitsui Fudosan Logistics Park Inc.
Statements of Changes in Net Assets

Number of units

Balance as of August 1, 2020
Issuance of new units
through public offering asof October 5, 2020
Issuance of new units
through allocation to athird party as of October
19, 2020
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of January 31,
2021
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of July 31, 2021

441,000

Unitholders’ capital
Retained(thousands of yen)
Total net assets
earnings(thousands of
Deduction from
Unitholders’
Unitholders’ (thousands ofyen)unitholders’yen)capitalcapital (net)capital¥137,143,723¥ (851,326)¥136,292,396 ¥ 2,734,419 ¥139,026,815

96,19045,922,164-

45,922,164-

45,922,164

4,810

2,296,346-

2,296,346-

2,296,346--(342,657)(342,657)-(342,657)

-

-

-

-

(2,734,200)(2,734,200)

-

-

-

-

3,579,503

3,579,503

542,000¥185,362,234¥(1,193,983)¥184,168,250 ¥ 3,579,722¥187,747,973--(368,018)(368,018)-(368,018)

-

-

-

-

(3,579,368)(3,579,368)

-

-

-

-

3,708,018

3,708,018

542,000¥185,362,234¥(1,562,001)¥183,800,232 ¥ 3,708,373¥187,508,606

The accompanying notes are an integral part of these financial statements.

- 34 -

Mitsui Fudosan Logistics Park Inc.
Statements of Cash Flows

10th period(From February 1, 2021
to July 31, 2021)
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income
Interest expense
Insurance income
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expense paid
Insurance income received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property and equipment in trust
Purchase of intangible assets
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment corporation bonds
Payments for investment corporation bond issuance costs
Proceeds from issuance of investment units
Payment of distribution of earnings
Payment of distribution in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 3)
The accompanying notes are an integral part of these financial statements.

- 35 -¥¥

3,708,742
2,345,531
1,166
48,431(35)
160,609(579)(192,921)
629
17,6712,307,201(133,670)
126,707
97,753(474)
8,486,761
35(156,195)579(944)
8,330,235(Thousands of yen)
9th period(From August 1, 2020
to January 31, 2021)¥

3,580,447
2,060,850
43,519(22)
119,875
61,317(12,108)
439(114,641)
265,006
230,727
399,872354
6,635,638
22(116,040)(953)
6,518,666(15,372,626)(24,319)
45,432(15,351,512)(77,960,576)(1,746)(2,633)
1,964,755(76,000,201)

15,400,000(19,300,000)
12,000,000
3,000,000(25,058)(20,500)(3,578,334)(367,870)
7,108,236
86,9586,542,625
6,629,584

20,100,000(19,200,000)
24,500,000
48,150,149(2,734,089)(342,589)
70,473,469
991,935
5,550,690
6,542,625¥

Mitsui Fudosan Logistics Park Inc.
Notes to Financial Statements
1.

Organization and Basis of Presentationa. Organization
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March
4, 2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer with investments in capital of ¥300 million (600 investment units). Registration with the Kanto
Local Finance Bureau of the Ministry of Finance of Japan was completed on March 25, 2016. The investment units were listedon the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock Exchange, Inc. on August 2, 2016
(Securities Code: 3471).
MFLP-REIT started acquisition of properties on August 2, 2016. With Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as a sponsor,
MFLP-REIT invests primarily in logistics facilities with a particular focus on MFLP facilities, that is, leading-edge logistics
facilities with Mitsui Fudosan quality. This focus has been chosen in light of MFLP-REIT’s goal of establishing a portfolio thatemphasizes location, quality and balance.
As of July 31, 2021, MFLP-REIT held 21 properties with the total acquisition price of ¥297.6 billion.
b. Basis of presentation
The accompanying financial statements of MFLP-REIT have been prepared in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial Instruments and Exchange Act of Japan,
the Investment Trust Act and the related regulations, which are different in certain respects as to application and disclosure
requirements of the International Financial Reporting Standards.
The accompanying financial statements are based on the financial statements of MFLP-REIT, which were prepared in accordancewith Japanese GAAP and were presented in its Asset Management Report published for Japanese investors. In preparing theaccompanying financial statements, certain reclassifications and modifications have been made to the financial statements issued
domestically in order to present them in a format which is more familiar to readers outside Japan.
MFLP-REIT’s fiscal period is a six-month period, which ends at the end of January and July of each year.
MFLP-REIT does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying financial
statements and the notes thereto, as permitted by the Financial Instruments and Exchange Act of Japan. As a result, the totals
shown in the financial statements and notes thereto do not necessarily agree with the sum of the individual amounts.

2.

Summary of Significant Accounting Policies
a. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and cash in trust, readily-available bank deposits, readily-available bankdeposits in trust and short-term investments that are readily convertible to cash and realizable with a maturity of three months
or less when purchased and that are subject to an insignificant risk of changes in value.

- 36 -

b. Property and equipment
Property and equipment (including those in trust) are stated at cost, which includes the original purchase price and relatedacquisition costs and expenses. Depreciation of property and equipment is calculated using the straight-line method over theestimated useful lives. The useful lives of principal property and equipment are as follows:
Buildings:
Structures:

2 to 59 years
8 to 50 years

Machinery and equipment:
Vehicles:

14 to 17 years
4 years

Tools, furniture and fixtures:

3 to 15 years

c. Intangible assets
Intangible assets are stated at cost, which includes the original purchase price and related acquisition costs and expenses.
Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives. Amortization ofsoftware for internal use is calculated using the straight-line method over the estimated useful lives of five years at MFLP-REIT.
d. Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method over a three-year period.
e. Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized using the straight-line method over the period up to redemption.
f. Taxes on property and equipment
With respect to property taxes, city planning taxes and depreciable asset taxes imposed on real estate properties or trust
beneficiary interests in real estate, of the tax amount assessed and determined, the amount corresponding to the relevant fiscal
period is accounted for as property-related expenses.
Of the amounts paid for the acquisitions of real estate properties or trust beneficiary interests in real estate, the amount equivalent
to property-related taxes is capitalized as part of the acquisition cost of the relevant property instead of being charged as expenses.
Capitalized property-related taxes amounted to ¥102,324 thousand for the 9th period. For the 10th period, there is no applicableamount since the amount equivalent to property-related taxes to be levied, which is to be capitalized as part of the acquisition
cost of MFIP Inzai II, has not been determined. When the property-related taxes are finalized, the equivalent amount will becapitalized as part of the acquisition cost.
g. Trust beneficiary interests in real estate
As to trust beneficiary interests in real estate that have real estate properties as assets in trust, all accounts of assets and liabilities
within assets in trust as well as all income generated and expenses incurred from assets in trust are recorded in the relevantbalance sheet and statement of income account items.
The following material items of the assets in trust recorded in the relevant account items are separately presented in theaccompanying balance sheets.
(1) Cash and deposits in trust(2) Buildings in trust, structures in trust, machinery and equipment in trust, vehicles and transport equipment in trust, tools,
furniture and fixtures in trust and land in trust(3) Construction in progress in trust(4) Tenant leasehold and security deposits in trusth. Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.

- 37 -

i. Significant accounting estimates
Impairment of non-current assets(1) Amount recorded on the accompanying financial statements for the 10th period(Thousands of yen)
10th period(As of July 31, 2021)
Property and equipment¥

288,618,482(2) Information on the nature of significant accounting estimates for identified items
In accordance with the Accounting Standard for Impairment of Fixed Assets, MFLP-REIT reduces the book value of noncurrent assets to their recoverable amounts, when the invested amount may not be recoverable due to decrease inprofitability.
MFLP-REIT’s investment properties are grouped on an individual asset basis. MFLP-REIT reviews the investment
properties for impairment when consecutive operating losses, significant decline in the market price, deteriorated businessenvironment and other factors related to investment properties indicate that the carrying amount of an asset may not berecoverable.
Expected future cash flows are used for review for impairment of an asset. When MFLP-REIT determines that it isnecessary to recognize an impairment loss, the book value of the asset is reduced to the respective recoverable amountbased on the appraisal value estimated by an external real estate appraiser, and the difference between the book value andrecoverable amount is recorded as an impairment loss.
Future cash flows are determined by comprehensive judgement on estimates based on market trends on rental revenues,
occupancy rates, property-related expenses and other factors as well as transaction information of similar properties.
Operating results and market price of each investment property may be affected by trends in property leasing market andproperty trading market. It is possible to have impact on MFLP-REIT’s financial position and result of operations in thenext fiscal period if assumptions used in estimates change.
j. Change in presentation
Change due to application of Accounting Standard for Disclosure of Accounting Estimates“Accounting Standard for Disclosure of Accounting Estimates” (Accounting Standards Board of Japan (“ASBJ”) Statement No.
31, March 31, 2020) has been applied from the fiscal period ended July 31, 2021. Notes regarding significant accounting
estimates are disclosed in “Notes to Financial Statements.”
However, information for the fiscal period ended January 31, 2021 is not disclosed in accordance with transitional treatmentprescribed in the proviso of Paragraph 11 of this accounting standard.
3.

Cash and Cash Equivalents
Reconciliation between cash and cash equivalents and accounts and amounts in the balance sheets is as follows:(Thousands of yen)

Cash and deposits

10th period(As of July 31, 2021)

9th period(As of January 31, 2021)¥¥

Cash and deposits in trust¥

Cash and cash equivalents
4.

738,485
5,891,099
6,629,584

619,466
5,923,159¥

6,542,625

Financial Instruments
a. Status of financial instruments(1) Policy for financial instruments
MFLP-REIT procures funds for acquisition of assets or repayment of debts mainly through issuance of investment units,loans or issuance of investment corporation bonds.
MFLP-REIT generally invests surplus funds in deposits considering safety of the investments although surplus funds
could be invested in securities and monetary claims as a matter of policy.
MFLP-REIT enters into derivative transactions to a limited extent for the purpose of avoiding the risk of interest rate
fluctuation and other risks. MFLP-REIT does not engage in speculative transactions.

- 38 -

(2) Financial instruments, their associated risks and risk management system
Deposits are used for investment of MFLP-REIT’s surplus funds, and are exposed to credit risk such as failure of thefinancial institutions holding the deposits. MFLP-REIT limits the credit risk by restricting the deposit periods to shortterms and selecting financial institutions that have high credit ratings.
Proceeds from loans and investment corporation bonds are used mainly to acquire real estate properties or refinanceexisting loans. While these loans are exposed to liquidity risk at the time of repayment, MFLP-REIT mitigates theliquidity risk by diversifying its means of fund procurement and lending financial institutions, dispersing repayment dates,
establishing commitment lines and securing liquidity on hand, and also controls the liquidity risk by preparing monthly
fund management plans.
In addition, loans with floating interest rates are exposed to the risk of interest rate rising. MFLP-REIT limits the impact
of interest rate rises on its operations by keeping the ratio of interest-bearing debt to total assets at a low level andmaintaining the ratio of fixed-rate long-term loans at a high level.
Tenant leasehold and security deposits in trust are deposits from tenants, and are exposed to liquidity risk at the time thetenants vacate the properties. MFLP-REIT controls the liquidity risk by preparing monthly fund management plans.
(3) Supplementary explanation regarding fair values of financial instruments
The fair value of financial instruments is based on their observable market value, if available. When there is no observable
market value available, fair value is based on a price that is reasonably estimated. Since variable factors are also reflectedin estimating the fair value, different assumptions and factors could result in a different value.

- 39 -

b. Estimated fair value of financial instruments
The carrying amounts, fair values and their differences as of July 31, 2021 and January 31, 2021 are as follows. Financial
instruments for which it is extremely difficult to determine the fair value are excluded from the following tables (Note 2 below):(Thousands of yen)
Carrying amount10th period (As of July 31, 2021)(1) Cash and deposits¥(2) Cash and deposits in trust

738,485

Fair value¥

5,891,099

Total assets¥

6,629,584¥

Difference

738,485-

5,891,099-

6,629,584-(3) Short-term loans payable

2,000,000

2,000,000-(4) Current portion of long-term loans payable

1,900,000

1,898,709(5) Investment corporation bonds

3,000,000

3,009,300(6) Long-term loans payable

92,500,000

92,653,703

Total liabilities¥ 99,400,000¥ 99,561,713¥(1,290)9,300
153,703¥

161,713(Thousands of yen)
Carrying amount

9th period (As of January 31, 2021)(1) Cash and deposits¥

619,466¥

6,542,625(2) Cash and deposits in trust

Fair value¥

619,466-

5,923,159-¥

6,542,625-

5,923,159

Total assets

Difference(3) Short-term loans payable

5,900,000

5,900,000-(6) Long-term loans payable

82,400,000

82,215,635¥ (184,364)

Total liabilities¥ 88,300,000¥ 88,115,635¥ (184,364)(Note 1) Methods to estimate fair values of financial instruments(1) Cash and deposits and (2) Cash and deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(3) Short-term loans payable
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(4) Current portion of long-term loans payable and (6) Long-term loans payable
The fair value is determined based on the present value being calculated by discounting the sum of principal and interest by the assumed
interest rate which would be applied if a similar new loan were entered into.
(5) Investment corporation bonds
The fair value is determined based on the market price.
(Note 2) Financial instruments for which it is extremely difficult to determine the fair value(Thousands of yen)

10th period(As of July 31, 2021)
Tenant leasehold and security deposits in trust¥

6,287,007

9th period(As of January 31,
2021)¥

6,265,894

Tenant leasehold and security deposits in trust are not subject to fair value disclosure, because a reasonable estimation of future cash flows isdifficult as no market price is available and the actual deposit period cannot be determined even when a contract period is set in the lease
contract since there is a possibility that the leases may be cancelled, renewed or re-signed.
(Note 3) Redemption schedule for monetary claims(Thousands of yen)
10th period (As of July 31, 2021)

Due within one year

Cash and deposits¥

Cash and deposits in trust

738,485
5,891,099

Total

¥

- 40 -

6,629,584

(Thousands of yen)
9th period (As of January 31, 2021)

Due within one year

Cash and deposits¥

619,466

Cash and deposits in trust

5,923,159

Total

¥

6,542,625(Note 4) Repayment schedule for loans(Thousands of yen)
10th period(As of July 31,
2021)
Short-termloans payable

Due within
one year¥

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

2,000,000

-

-

-

-

-

-

-

-

-

Investment
corporation bonds
Long-termloans payable
Total

¥

1,900,000¥

9,000,000¥

10,600,000¥

6,600,000¥

7,200,000

3,900,000¥

9,000,000¥

10,600,000¥

6,600,000¥

7,200,000

Due after
five years¥

3,000,000
59,100,000¥

62,100,000(Thousands of yen)
9th period(As of January 31,
2021)

Due within
one year

Short-termloans payable

¥

5.

¥

Due after two to
three years

Due after three tofour years

Due after four tofive years

-

-

-

-

5,900,000

Long-termloans payable
Total

Due after one to
two years

Due after
five years--¥

5,300,000¥

9,600,000¥

9,600,000¥

5,700,000¥

52,200,000

5,900,000¥

5,300,000¥

9,600,000¥

9,600,000¥

5,700,000¥

52,200,000

Investment and Rental Properties
MFLP-REIT owns logistics facilities and industrial properties for the purpose of earning rental income. The carrying amount,net changes in the carrying amount during the periods and fair value of these investment and rental properties are as follows:(Thousands of yen)
10th period(From February 1, 2021
to July 31, 2021)

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

Carrying amount¥

Balance at beginning of period

275,645,430¥

199,790,833

Changes during the period

12,973,051

75,854,596

Balance at end of period

288,618,482

275,645,430

Fair value at the end of the period¥

326,300,000¥

303,080,000(Note 1) The carrying amount represents acquisition cost less accumulated depreciation.
(Note 2) Changes in the carrying amount during the 9th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests
in real estate for two properties (¥77,736,022 thousand), and the decrease mainly attributable to depreciation (¥2,059,671 thousand). Changes
in the carrying amount during the 10th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests in realestate for one property (¥15,207,045 thousand), and the decrease mainly attributable to depreciation (¥2,344,236 thousand).
(Note 3) The fair value at the end of the period represents the appraisal value or surveyed value by external real estate appraisers.

Information about income and loss from investment and rental properties is stated in Note 8. “Property Leasing Business
Revenues and Expenses.”- 41 -

6.

Net Assets
a. Stated capital
MFLP-REIT issues only non-par value units in accordance with the Investment Trust Act of Japan and all of the issue prices of
new units are designated as stated capital. MFLP-REIT maintains at least ¥50,000 thousand as the minimum net assets as requiredby the Article 67, Paragraph 4 of the Investment Trust Act of Japan.
b. Distributions
Distributions related to the periods but declared after the balance sheet dates are summarized as follows:(Yen)
10th period(From February 1, 2021 to July 31, 2021)
Total

I. Unappropriated retained earnings

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

Per unit

Total¥ 3,708,373,501¥ 3,579,722,644

527,908,000

368,018,000

Per unit

II. Distributions in excess of retained
earnings
Deduction from unitholders’capitalIII. Distributions

3,708,364,000

Distribution of earnings
Distribution in excess of retained

527,908,000

earnings
Total distributions
IV. Retained earnings carried forward¥¥ 4,236,272,000
¥

¥

9,501

6,842

3,579,368,000

974

368,018,000

7,816¥ 3,947,386,000
¥

¥

6,604
679

¥

7,283

354,644

In accordance with the distribution policy as defined in the Article 35, Paragraph 1 of the Articles of Incorporation of MFLP-REIT,
distributions shall be in excess of the amount equivalent to 90% of the amount of earnings available for dividends defined in the
Article 67-15 of the Act on Special Measures Concerning Taxation.
Based on this policy, for the fiscal periods ended July 31, 2021 and January 31, 2021, MFLP-REIT declared a distribution amount of¥3,708,364,000 and ¥3,579,368,000, respectively, which are the maximum value of the integral multiple of the total number ofinvestment units issued and outstanding at the end of each period in amounts not in excess of unappropriated retained earnings.
Furthermore, based on the distribution policy as defined in the Article 35, Paragraph 2 of the Articles of Incorporation, MFLP-REIT
executes the distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing unitholders’ capitalfor tax purposes) each fiscal period on a continuous basis.
Based on this policy, for the fiscal period ended July 31, 2021, MFLP-REIT declared the distribution of ¥527,908,000, which is
calculated as being almost equivalent to the remaining amount after subtracting the distribution of earnings of ¥3,708,364,000 from
¥4,236,578,705 or 70% of FFO (funds from operation), as distribution of cash in excess of retained earnings (return of capital
applicable to distribution reducing unitholders’ capital for tax purposes).
For the fiscal period ended January 31, 2021, MFLP-REIT declared the distribution of ¥368,018,000, which is calculated as being
almost equivalent to the remaining amount after subtracting the distribution of earnings of ¥3,579,368,000 from ¥3,947,422,915 or
70% of FFO (funds from operation), as distribution of cash in excess of retained earnings (return of capital applicable to distribution
reducing unitholders’ capital for tax purposes).
(Note)

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

- 42 -

7.

Short-term and Long-term Loans Payable and Investment Corporation Bonds
Short-term and long-term loans payable mainly consisted of bank borrowings under loan agreements. The following tablesummarizes the short-term and long-term loans payable and investment corporation bonds as of July 31, 2021 and January 31,
2021.
(Thousands of yen)
10th period(As of July 31, 2021)
0.1086% unsecured short-term loans
0.0923% unsecured short-term loans¥

9th period(As of January 31, 2021)

2,000,000-¥

2,400,000-

0.0773% unsecured short-term loans
Total short-term loans payable
0.2713% unsecured long-term loans due 2022

3,500,000¥

2,000,000¥

5,900,000¥

2,000,000¥

2,000,000

0.4213% unsecured long-term loans due 2026
0.2400% unsecured long-term loans due 2022

1,500,000
1,600,000

1,500,000
1,600,000

0.2500% unsecured long-term loans due 2023
0.1475% unsecured long-term loans due 2024

2,000,000
3,000,000

2,000,000
3,000,000

0.2000% unsecured long-term loans due 2024
0.3723% unsecured long-term loans due 2030

1,700,000
3,500,000

1,700,000
3,500,000

0.2829% unsecured long-term loans due 2027
0.4168% unsecured long-term loans due 2029

4,800,000
5,700,000

4,800,000
5,700,000

0.3743% unsecured long-term loans due 2028
0.6325% unsecured long-term loans due 2031

1,300,000
3,200,000-

0.3050% unsecured long-term loans due 2023
0.3813% unsecured long-term loans due 2025

2,000,000
1,500,000

2,000,000
1,500,000

0.1059% unsecured long-term loans due 2025
0.1950% unsecured long-term loans due 2026

800,000
2,000,000

800,000-

0.1425% unsecured long-term loans due 2022
0.2113% unsecured long-term loans due 2024

400,000
1,700,000

400,000
1,700,000

0.4895% unsecured long-term loans due 2027
0.3687% unsecured long-term loans due 2028

900,000
2,000,000

900,000
2,000,000

0.4942% unsecured long-term loans due 2030
0.4707% unsecured long-term loans due 2030

3,500,000
1,500,000

3,500,000
1,500,000

0.1826% unsecured long-term loans due 2023
0.2313% unsecured long-term loans due 2026

2,200,000
3,100,000

2,200,000
3,100,000

0.2385% unsecured long-term loans due 2027
0.4272% unsecured long-term loans due 2030

800,000
800,000

800,000
800,000

0.4408% unsecured long-term loans due 2029
0.3237% unsecured long-term loans due 2024

500,000
600,000

600,000

0.3425% unsecured long-term loans due 2024
0.2188% unsecured long-term loans due 2022

700,000
300,000

700,000
300,000

0.2613% unsecured long-term loans due 2023
0.1163% unsecured long-term loans due 2023

900,000
500,000

900,000
500,000

0.3255% unsecured long-term loans due 2028
0.3125% unsecured long-term loans due 2026

5,500,000
3,100,000

5,500,000
3,100,000

0.4851% unsecured long-term loans due 2029
0.2169% unsecured long-term loans due 2024

1,000,000
1,300,000

1,000,000
1,300,000

0.3563% unsecured long-term loans due 2025
0.3988% unsecured long-term loans due 2029

1,000,000
2,000,000

1,000,000
2,000,000

0.2575% unsecured long-term loans due 2022
0.3360% unsecured long-term loans due 2028

1,000,000
1,000,000

1,000,000
1,000,000

0.3464% unsecured long-term loans due 2028
0.3319% unsecured long-term loans due 2024

2,000,000
600,000

600,000- 43 -

10th period(As of July 31, 2021)

9th period(As of January 31, 2021)

0.5377% unsecured long-term loans due 2030
0.7140% unsecured long-term loans due 2032

3,000,000
800,000

3,000,000-

0.2087% unsecured long-term loans due 2025
0.1836% unsecured long-term loans due 2027

600,000
1,300,000

600,000
1,300,000

0.2629% unsecured long-term loans due 2027
0.2375% unsecured long-term loans due 2023

1,000,000
2,000,000

1,000,000
2,000,000

0.1863% unsecured long-term loans due 2025
0.3809% unsecured long-term loans due 2029

1,800,000
2,400,000

1,800,000
2,400,000

0.5937% unsecured long-term loans due 2030
0.3975% unsecured long-term loans due 2026

2,200,000
1,000,000

1,000,000

0.2182% unsecured long-term loans due 2028
0.3305% unsecured long-term loans due 2027

800,000
2,000,000

800,000
2,000,000

Total long-term loans payable¥

94,400,000

0.5000% unsecured bonds due 2031¥

3,000,000-¥

3,000,000-

Total bonds(Note)¥

82,400,000

The stated interest rates are the weighted average interest rates during the fiscal periods ended July 31, 2021 and January 31, 2021 androunded to the fourth decimal place.

The repayment schedule for loans and bonds is disclosed in Note 4. “Financial Instruments.”
MFLP-REIT had the commitment line contracts with two banks as of July 31, 2021 and January 31, 2021.
(Thousands of yen)
10th period(As of July 31, 2021)
Total amount of commitment line contracts

9th period(As of January 31, 2021)¥

8,000,000¥

8,000,000

Loans executed¥

6,000,000¥

6,000,000-

Unused line of credit- 44 --

8.

Property Leasing Business Revenues and Expenses
The following table summarizes the revenues and expenses generated from the property leasing business for the fiscal periods
ended July 31, 2021 and January 31, 2021.
(Thousands of yen)
10th period(From February 1, 2021 andto July 31, 2021)

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

A. Property leasing business revenues
Property-related revenues
Rental revenues¥

8,425,802¥

446,198

Common area charges
Total
Other property-related revenues
Utilities charges
Parking lots

395,141¥

8,872,000¥

7,757,788¥

329,047
45,012¥

321,660
39,997¥395,689¥

381,802¥

9,267,689¥

8,139,590¥

565,701¥

477,558

21,628Others
Total
Total property leasing business revenues
B. Property leasing business expenses
Property-related expenses
Outsourcing service expenses

7,362,647

Utilities expenses
Repair expenses
Taxes and dues
Depreciation and amortization
Others

20,145

281,722
126,001

271,374
65,708869,788
2,344,236

489,3422,059,671

150,021108,127

Total property leasing business expenses¥

4,337,470¥

3,471,784

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

4,930,218¥

4,667,806- 45 -

9.

Income Taxes
MFLP-REIT is subject to Japanese corporate income taxes on its taxable income. The tax effects of temporary differences thatgive rise to a significant portion of the deferred tax assets and liabilities as of July 31, 2021 and January 31, 2021 are as
follows:(Thousands of yen)
10th period(As of July 31, 2021)

9th period(As of January 31, 2021)

Deferred tax assets:
Accrued enterprise tax

¥

5

¥

16

Total deferred tax assets

¥

5

¥

16

Net deferred tax assets

¥

5

¥

16

Reconciliations between the Japanese statutory tax rate and the effective income tax rate with respect to pre-tax income
reflected in the accompanying statements of income for the fiscal periods ended July 31, 2021 and January 31, 2021 are as
follows:
10th period(As of July 31, 2021)
Statutory tax rate
Adjustments:
Deductible distributions
Other
Effective income tax rate after application of tax-effectaccounting

9th period(As of January 31, 2021)

31.46%

31.46%(31.46)0.02(31.45)
0.02

0.02%

0.03%

10. Per Unit Information
The following table summarizes per unit information for the fiscal periods ended July 31, 2021 and January 31, 2021.
10th period(From February 1, 2021
to July 31, 2021)

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

Earnings per unit:¥

Net income per unit (yen)Weighted average number of units outstanding (unit)

Net assets per unit (yen)

6,841

¥

7,074

542,000

505,955

10th period(As of July 31, 2021)

9th period(As of January 31, 2021)¥

345,956¥

346,398

Net income per unit is calculated by dividing net income by the daily weighted average number of investment units outstanding
during the period. Diluted net income per unit is not stated because there are no dilutive investment units.

- 46 -

11. Leases
The future minimum rental revenues from tenants subsequent to July 31, 2021 and January 31, 2021 under non-cancelable
operating leases of properties are as follows:(Thousands of yen)
10th period(As of July 31, 2021)
Due within one year¥

Due after one year

13,970,177

9th period(As of January 31, 2021)¥

34,558,725

Total

¥

48,528,903

15,249,505
33,041,536¥

48,291,042

12. Transactions with Related Parties
There are no significant transactions and balances with related parties for the fiscal periods ended July 31, 2021 and January
31, 2021.
13. Segment and Related Information
For the fiscal periods ended July 31, 2021 and January 31, 2021
a. Segment information
Segment information has been omitted as MFLP-REIT engages in a single segment of the property leasing business.
b. Related information(1) Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statements of income.
(2) Information by geographical area(i) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of the total
operating revenues on the statements of income.
(ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheets.
(3) Information on major tenant
Disclosure of this information has been omitted because there is no tenant whose operating revenues make up 10% ormore of total operating revenues.
14. Significant Subsequent Events
Not applicable.

*

*

*

- 47 -**