Summary of Financial Results for the Fiscal Period Ended July 31, 2023 (REIT)
REIT Securities Issuer
Securities Code
Representative

Mitsui Fudosan Logistics Park Inc.
3471
Hiroshi Asai, Executive Director

Asset Management Company
Representative
Inquiries

Mitsui Fudosan Logistics REIT Management Co., Ltd.
Shinobu Sakanoshita, President and Chief Executive Officer
Tatsu Makino, Director & General Manager of Finance DivisionTel.
+81-3-6327-5160

September 14, 2023
Tokyo Stock Exchange
https://www.mflp-r.co.jp/en/

Stock Exchange Listing
WebsiteScheduled date of submission of securities report:
Scheduled date of commencement of distribution payout:

October 24, 2023
October 12, 2023

Supplementary materials for financial results:
Holding investor presentation for financial results:

Yes
Yes (for analysts and institutional investors)(Amounts less than ¥1 million have been rounded down)

1. Financial Results for the Fiscal Period Ended July 31, 2023 (February 1, 2023 to July 31, 2023)(1) Results of Operations(% figures denote rate of period-on-period change)
Operating revenues

Operating income

Millions of yen%

Ordinary income

Millions of yen%

Net income

Millions of yen%

Millions of yen%

Fiscal period ended
July 31, 2023

11,478

4.7

4,604

2.2

4,261

1.3

4,260

1.3

Fiscal period ended
January 31, 2023

10,960

3.3

4,504

1.0

4,206

1.0

4,205

1.0

Net income per unit

Return on unitholders’ equity

Ratio of ordinary income tototal assets

Ratio of ordinary income tooperating revenues

%

%

%

Yen
Fiscal period ended
July 31, 2023

7,396

2.1

1.2

37.1

Fiscal period ended
January 31, 2023

7,300

2.1

1.2

38.4

(2) Distributions
Total amount of
Total amount ofDistributions perDistributions per
distributions
Total amount of
distributions
unit (excluding
Distributions inunit (including(excluding
distributions in(including
distributions inexcess of
distributions in
distributions inexcess of
distributions inexcess ofretainedexcess ofexcess ofretainedexcess ofretainedearnings per unit
retainedretainedearnings
retainedearnings)
earnings)
earnings)
earnings)
Yen

Millions of yen

Yen

Millions of yen

Yen

Payoutratio

Ratio ofdistributions
to net assets%%

Millions of yen

Fiscal period ended
July 31, 2023

7,396

4,260

1,408

811

8,804

5,071

100.0

2.1

Fiscal period ended
January 31, 2023

7,301

4,205

1,100

633

8,401

4,838

100.0

2.1

Notes:
1. The total amount of distributions in excess of retained earnings for the fiscal period ended January 31, 2023 is entirely return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes.
Of distributions in excess of retained earnings for the fiscal period ended July 31, 2023, allowance for temporary difference
adjustments is ¥6 million, and return of capital applicable to distribution reducing unitholders’ capital for tax purposes is ¥804
million.
2. The ratio of decreasing surplus attributable to distributions in excess of retained earnings (return of capital applicable to distribution
reducing unitholders’ capital for tax purposes) for the fiscal period ended July 31, 2023 and the fiscal period ended January 31,
2023 is 0.004 for each. This calculation is based on Article 23, Paragraph 1, Item 4 of the Order for Enforcement of the Corporation
Tax Act.
(3) Financial Position
Total assets

Net assets

Ratio of unitholders’ equity tototal assets%

Net assets per unit

Millions of yen

Millions of yen

Fiscal period ended
July 31, 2023

Yen

350,013203,65258.2

353,562

Fiscal period ended
January 31, 2023

336,551204,23060.7

354,567(4) Cash Flows
Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal period ended
July 31, 2023

4,988

(16,341)

9,659

7,957

Fiscal period ended
January 31, 2023

10,341(242)(8,027)9,651

2. Forecast for the Fiscal Period Ending January 31, 2024 (August 1, 2023 to January 31, 2024) and the Fiscal Period Ending July
31, 2024 (February 1, 2024 to July 31, 2024)(% figures denote rate of period-on-period change)
Distributions
Distributions
per unit
Distributions
per unit(excluding
in excess of(including
distributions
retained
distributions
in excess of earnings per in excess ofretained
unit
retainedearnings)
earnings)

Operating revenues

Operating income

Ordinary income

Net income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Fiscal period ending
January 31, 2024

11,869

3.4

4,671

1.5

4,300

0.9

4,299

0.9

7,071

1,710

8,781

Fiscal period ending
July 31, 2024

12,353

4.1

4,784

2.4

4,327

0.6

4,326

0.6

7,117

2,034

9,151

Yen

Yen

Yen

(Reference) Expected net income per unit (Expected net income/Expected number of investment units at the end of the fiscal period)
For the fiscal period ending January 31, 2024: ¥7,071
For the fiscal period ending July 31, 2024: ¥7,116
1.

Other
(1) Changes in accounting policies, changes in accounting estimates, or retrospective restatements(i) Changes in accounting policies due to revisions to accounting standards, etc.:
None(ii) Changes in accounting policies other than (i) above:None(iii) Changes in accounting estimates:None(iv) Retrospective restatements:
None(2) Total number of investment units issued and outstanding(i) Total number of investment units issued and outstanding at the end of the fiscal period (including treasury units)
Fiscal period ended July 31, 2023
576,000 units
Fiscal period ended January 31, 2023
576,000 units(ii) Number of treasury units at the end of the fiscal period
Fiscal period ended July 31, 2023
0 units
Fiscal period ended January 31, 2023
0 units
Note:
Please refer to “Notes to Per Unit Information” on page 23 for the number of investment units used as the basis forcalculating net income per unit.

2.

Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

3.

Special notes
Forecasts of financial results and other forward-looking statements contained in this material are based on information currently
available to and certain assumptions deemed reasonable by Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”). Actual operating
performance, etc. may differ significantly from these forecasts due to a variety of factors. Furthermore, these forecasts do notguarantee the above distribution amounts.
For details of assumptions for the above forecast figures, please refer to “Forecast Assumptions for the Fiscal Period Ending January
31, 2024 (August 1, 2023 to January 31, 2024) and the Fiscal Period Ending July 31, 2024 (February 1, 2024 to July 31, 2024)”
described on page 7.

Table of contents
1. Results of Operations ................................................................................................................................... 2(1) Results of Operations ............................................................................................................................. 2(Summary of results for the reporting period) ....................................................................................... 2(Outlook for the fiscal period ending January 31, 2024) ....................................................................... 3
2. Financial Statements .................................................................................................................................... 9(1) Balance Sheets ....................................................................................................................................... 9(2) Statements of Income ........................................................................................................................... 11(3) Statements of Changes in Net Assets ................................................................................................... 12(4) Statements of Cash Distributions ......................................................................................................... 13(5) Statements of Cash Flows .................................................................................................................... 15(6) Notes to Going Concern Assumption ................................................................................................... 17(7) Notes to Significant Accounting Policies ............................................................................................. 17(8) Notes to Financial Statements .............................................................................................................. 19(9) Changes in Total Number of Investment Units Issued and Outstanding.............................................. 25
3. Reference Information ............................................................................................................................... 28(1) Status of Investment ............................................................................................................................. 28(2) Investment Assets................................................................................................................................. 28i)

Major investment securities ......................................................................................................... 28ii)

Investment properties .................................................................................................................. 28iii) Other major investment assets ..................................................................................................... 29
(A)
(B)
(C)
(D)

Summary of the assets held ................................................................................................. 29
Summary of lease ................................................................................................................ 32
Capital expenditures of real estate held............................................................................... 38
Status of individual asset earnings ...................................................................................... 40

- 1 -

1.
(1)

Results of Operations
Results of Operations(Summary of results for the reporting period)

1.

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 “AssetManagement 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 25 properties amounting to a total acquisition price of ¥358.7 billion as at the end of the fiscal period underreview.

2.

Investment environment and management performance
The Japanese economy remains on a recovering trend mainly backed by a recovery in private consumption and inbounddemand due to the gradual easing of movement restrictions placed stemming from the novel coronavirus disease (COVID19), and other factors. Capital investment has been gradually increasing. The employment and income environments are also
gradually recovering.
In the logistics market, the 3PL business (Note 1) specializing in outsourced logistics services continues to expand, and ecommerce demand remains at high levels. A move aimed at streamlining logistics operations and rebuilding supply chains
also continues in all business fields such as manufacturers and retailers. While the uncertain situation largely due to inflationsuch as escalating resource prices resulting from the situation in Ukraine and the weaker yen, and the rising trend of longterm interest rates in major countries deserves continued attention, 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 sustainablegrowth through 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 25 properties held as at the end of the fiscal period underreview (total acquisition price of ¥358.7 billion) to maintain an excellent occupancy rate of 99.8% for the entire portfolio asat the end of the fiscal period under review.
MFLP-REIT is promoting initiatives for ESG. In the fiscal period under review, MFLP-REIT raised funds utilizing the
Sustainability Linked Loan Framework (Note 2) for the first time among J-REITs.
Notes:

3.

1.

“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).

2.

The Sustainability Linked Loan Framework is a framework that enables financing through sustainability linked loans appropriately by using
stipulated loan-related matters including selection of Key Performance Indicators (KPIs) and Sustainability Performance Targets (“SPTs”),
changes in interest on loans according to the level of achievement of the SPTs, and reporting/validation items for the status of achievement of the
SPTs, in order to continue financing through sustainability linked loans in the future.

Overview of financing
In the fiscal period under review, MFLP-REIT executed debt financing of ¥16,500 million (short-term loans payable of¥6,500 million; long-term loans payable of ¥10,000 million) in February 2023 to fund the acquisition of MFLP Osaka
Katano; ¥2,500 million (long-term loans payable) in February 2023 and ¥3,100 million (long-term loans payable) in March2023 to repay long-term loans payable; ¥4,500 million (short-term loans payable) in April 2023 to pay out distributions; and¥4,000 million (short-term loans payable) in March 2023, ¥4,000 million (short-term loans payable) in April 2023, ¥8,500
million (short-term loans payable) in May 2023, ¥4,500 million (short-term loans payable) in June 2023, and ¥4,500 million(short-term loans payable) in July 2023 to repay short-term loans payable; and executed repayments in the fiscal period underreview of a total of ¥37,600 million (short-term loans payable of ¥32,000 million; long-term loans payable of ¥5,600 million)
using funds from part of borrowing and internal reserve arising from depreciation, etc. As a result, at the end of the fiscal
period under review, the balance of interest-bearing debt was ¥135,200 million (short-term loans payable of ¥4,500 million;
current portion of long-term loans payable of ¥10,600 million; investment corporation bonds of ¥5,000 million; long-termloans payable of ¥115,100 million) and the ratio of interest-bearing debt to total assets (LTV ratio) was 38.6%.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.

4.

Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA

StableSummary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating
revenues of ¥11,478 million, operating income of ¥4,604 million, ordinary income of ¥4,261 million, and net income of¥4,260 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- 2 -¥4,260,096,000, which is the integral multiple of the total number of investment units issued and outstanding (576,000 units)of unappropriated retained earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of ¥7,396.
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 ¥811 million, which is the amount almost equivalent to the remaining amountafter subtracting the distribution of earnings of ¥4,260 million from ¥5,071 million or 70% of FFO (Note 2), as return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes and allowance for temporary difference
adjustments. Accordingly, MFLP-REIT declared distribution in excess of retained earnings per unit of ¥1,408.
Notes:
1.

In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution per unit isexpected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units,etc., a temporary 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.

2.

“FFO” is an acronym for funds from operations 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.).

3.

“Standard amount of capital for building maintenance” refers to the amount that results by multiplying the six-month-equivalent amount of the
12-year-average amount of the amount equivalent to the capital expenditure amount noted in the Building Condition Evaluation Report by two.

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 estateon the applicable accounts settlement date + Appraisal value of owned real estate on the applicable accounts settlement date

(Outlook for the fiscal period ending January 31, 2024)
1.

Future management policy and issues to be addressed
MFLP-REIT has established a strategic and collaborative partnership in the logistics facilities business with Mitsui Fudosan,
under which it seeks to maximize unitholder value by focusing investments primarily in logistics facilities as a basic policy.
Based on this policy, 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 theexternal and internal environment to maximize unitholder value.
(A)

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 offirst look and preferential negotiation agreement” that was concluded with Mitsui Fudosan, which boasts high growthin the logistics facilities business, and the Asset Management Company.
Notes:(B)

1.

Based on the principles of “harmonious coexistence” and “linking diverse values” set by the Mitsui Fudosan Group (Note 2), Mitsui
Fudosan’s logistics facilities business keeps up efforts aimed at not only providing logistics facilities space but also creating value beyond
conventional boundaries. 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 throughurban development as a comprehensive 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.”2.

“Mitsui Fudosan Group” refers to a corporate group comprising Mitsui Fudosan, and Mitsui Fudosan’s consolidated subsidiaries and
Mitsui Fudosan’s associates accounted for using the equity method. The same shall apply hereinafter.

Internal growth strategy“Stable management utilizing 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 Fudosan Group has developed over years as a comprehensive real estate company.

(C)

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 andborrowings, and at the same time it will aim to secure both stable distribution levels and efficient cash management for- 3 -distributions through continuous distributions in excess of retained earnings (return of capital) based on cash flow(FFO).
Significant subsequent events
1.

Issuance of new investment units
Regarding the issuance of new investment units decided in the meetings of the Board of Directors of MFLP-REIT heldon July 31, 2023 and August 3, 2023, as stated below, payment for the issuance of said units was completed throughpublic offering on August 9, 2023 and through a third-party allotment on August 23, 2023.
As a result, the total investment amount (net) is ¥214,185,910,748, and there are 608,000 units of total number ofinvestment units issued and outstanding.
1.

Issuance of new investment units through public offering (primary offering)Number of new investment units issued:

30,470 units (Domestic: 20,870 units, Overseas: 9,600 units)

Issue price:¥477,750 per unit

Total amount of issue price:¥14,557,042,500

Amount paid in (paid-in amount):¥462,315 per unit

Total amount paid in (total paid-in amount):¥14,086,738,050

Payment date:August 9, 2023

2.

2.

Issuance of new investment units through a third-party allotment (third-party allotment)
Number of new investment units issued:

1,530 units

Amount paid in (paid-in amount):¥462,315 per unit

Total amount paid in (total paid-in amount):¥707,341,950

Payment date:August 23, 2023

Allottee:

Daiwa Securities Co. Ltd.

Acquisitions of properties
On July 31, 2023, MFLP-REIT concluded an agreement for sale and purchase of trust beneficiary interest with theseller of each of the following assets. Based on the agreements for sale and purchase of trust beneficiary interest,
MFLP-REIT acquired the trust beneficiary interests for MFLP Tomei Ayase and MFLP Tokorozawa on August 10,
2023 (two properties, total acquisition price of ¥13,700 million).
Category

Property no.

Property nameLocation

Acquisition price(millions of yen)
(Note 1)

Acquisition date

L-24

MFLP Tomei Ayase(Note 2)

Ayase-shi, Kanagawa

9,610(Co-ownership 50%)

August 10, 2023

L-25

MFLP Tokorozawa

Miyoshi-machi, Irumagun, Saitama

4,090

August 10, 2023

Logistics facilities

Notes:
1.

“Acquisition price” is the purchase price of each trust beneficiary interest as set forth in each agreement for sale and purchase of trust beneficiary interestfor the acquired assets (excluding consumption tax and local consumption tax or the various costs required in the acquisition), rounded down to the nearest
million yen.

2.

For “MFLP Tomei Ayase,” the acquisition price is the prorated figure equivalent to the co-ownership in the property acquired by MFLP-REIT (50%).

(Reference Information)
MFLP-REIT entered into a sale and purchase agreement as of July 31, 2023 for the acquisition of the following assets, andthe delivery is scheduled on February 1, 2024.

- 4 -Category

Property no.

Property nameLocation

Planned acquisition
price(millions of yen)
(Note 2)

Planned acquisition date

L-26

MFLP Hiratsuka III

Hiratsuka-shi,
Kanagawa

8,410

February 1, 2024

L-27

MFLP Shinkiba I

Koto-ku, Tokyo

5,940

February 1, 2024

L-28

SG Realty MFLP
Fukuoka Kasuya(Note 3)Kasuya-machi,
Kasuya-gun, Fukuoka

3,040(Co-ownership 50%)

February 1, 2024

Logistics facilities

Notes:
1.

This sale and purchase agreement falls under the category of forward commitments, etc. (defined as “a postdated sales contract under which payment anddelivery shall be made at least one month after the conclusion of the contract, or any other contract similar thereto” in the “Comprehensive Guidelines forSupervision of Financial Instruments Business Operators, etc.” established by the Financial Services Agency). Under this sale and purchase agreement,
implementation of the sale and purchase is subject to completion of procurement of necessary funds through issuance of investment units and borrowing offunds, and the conditions. If this condition is not met, the sale and purchase agreement shall determinately lose its validity, and the parties shall not seek
payment or compensation for any damages, losses and expenses (including legal fees) arising in relation to the conclusion or lapse of the agreement.
Therefore, in the case where the obligation to pay the price under the sale and purchase agreement cannot be performed due to the inability to complete theissuance of investment units and borrowing of funds, this failure to perform the obligation will not result in payment of penalty. Hence, MFLP-REIT
believes that the agreement is unlikely to have a significant negative impact directly on its finance, distributions, etc.

2.

“Planned acquisition price” is the purchase price of each trust beneficiary interest as set forth in each agreement for sale and purchase of trust beneficiaryinterest for the assets to be acquired (excluding consumption tax and local consumption tax or the various costs required in the acquisition), rounded down
to the nearest million yen.

3.

For “SG Realty MFLP Fukuoka Kasuya,” the planned acquisition price is the prorated figure equivalent to the co-ownership (50%) in the property to beacquired by MFLP-REIT.

3.

Forecast for the fiscal period
MFLP-REIT’s forecasts for the fiscal period ending January 31, 2024 (August 1, 2023 to January 31, 2024) and the fiscal
period ending July 31, 2024 (February 1, 2024 to July 31, 2024) are as follows:(% figures denote rate of period-on-period change)
Distributions
Distributions
per unit
Distributions
per unit(excluding
in excess of(including
Net income
distributions
retained
distributions
in excess of earnings per in excess ofretained
unit
retainedearnings)
earnings)

Operating revenues

Operating income

Ordinary income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Fiscal period ending
January 31, 2024

11,869

3.4

4,671

1.5

4,300

0.9

4,299

0.9

7,071

1,710

8,781

Fiscal period ending
July 31, 2024

12,353

4.1

4,784

2.4

4,327

0.6

4,326

0.6

7,117

2,034

9,151

Yen

Yen

Yen

For the assumptions for these forecasts, please refer to “Forecast Assumptions for the Fiscal Period Ending January 31, 2024
(August 1, 2023 to January 31, 2024) and the Fiscal Period Ending July 31, 2024 (February 1, 2024 to July 31, 2024)”
described on page 7.
Notes:
1.

The above forecasts are the current estimations calculated based upon certain assumptions. Future additional acquisitions or sales of real estate,real estate market trends, interest rate fluctuation and other situation surrounding MFLP-REIT may cause differences from the assumptions. As aresult, actual operating revenues, operating income, ordinary income, net income, distributions per unit (excluding distributions in excess ofretained earnings) and distributions in excess of retained earnings per unit may vary from these forecasts. Furthermore, these forecasts are in no
way a guarantee of amounts of distributions or distributions in excess of retained earnings.

2.

Monetary amounts have been rounded down to the display unit, and percentage values have been rounded to the nearest tenth of a percent.

- 5 -Forecast Assumptions for the Fiscal Period Ending January 31, 2024 (August 1, 2023 to January 31, 2024) and the Fiscal PeriodEnding July 31, 2024 (February 1, 2024 to July 31, 2024)
Item

Assumptions

Calculation period・Fiscal period ending January 31, 2024 (15th fiscal period): August 1, 2023 to January 31, 2024
(184 days)
・Fiscal period ending July 31, 2024 (16th fiscal period): February 1, 2024 to July 31, 2024 (182days)

Investment assets

・It is assumed that (i) the total number of the properties held by MFLP-REIT will be 30, which
includes the real estate trust beneficiary interests held by MFLP-REIT as of July 31, 2023
(total of 25 properties), and the acquisition on August 10, 2023 of the real estate
trust beneficiary interests related to MFLP Tomei Ayase (50% of co-ownership interest) and
MFLP Tokorozawa, 2023 (individually or collectively, “Our Current Properties” together
with the above assets held by MFLP-REIT as of July 31, 2023), with the acquisition on
February 1, 2024 of the real estate trust beneficiary interests related to MFLP Hiratsuka III,
MFLP Shinkiba I and SG Realty MFLP Fukuoka Kasuya (50% of co-ownership interest)(individually or collectively, “Anticipated Acquisitions” ), and (ii) the abovementioned assets
will not be changed (as there will be no disposition, etc. of Our Current Properties or the
Anticipated Acquisitions and there will be no acquisition of new properties other than the
Anticipated Acquisitions) until the end of the fiscal period ending July 31, 2024. However,
the actual number of the investment assets may change due to the acquisitionof new properties other than the Anticipated Acquisitions or the disposition, etc. of Our
Current Properties or the Anticipated Acquisitions.

Operating revenues

・Leasing business revenues related to Our Current Properties are calculated based on lease
contracts already executed that are in effect as of July 31, 2023 and other factors, including
tenant movements, market trends and other factors.
・Leasing business revenues related to the Anticipated Acquisitions are calculated based on
information provided by their current owners after taking into account lease contracts alreadyexecuted and other factors including tenant movements and market trends.
・Until the fiscal period ending January 31, 2024, in the case of concluding a lease contract that
reduces the rent for a certain period of time because of free rent or the like, revenue isrecognized at the reduced rent for the said certain period and in the case of concluding a lease
contract in which the rent fluctuates during the lease period, revenue is recognized at the rent
corresponding to each period. From the fiscal period ending July 31, 2024, only when the
total amount of rent after February 1, 2024 in the lease contract is fixed, the calculation
method will be changed to recognize revenue on a straight-line basis over the contract period
after February 1, 2024, including such certain period and fluctuation period.
・Calculations assume that there will be no gain or loss on sale of real estate etc.

perating expenses

・Leasing business expenses, which are major operating expenses, other than depreciation havebeen calculated by taking into consideration changes to expenses, with the historical results
used as a benchmark for Our Current Properties and with the information provided by theircurrent owners as a benchmark for the Anticipated Acquisitions.
・Depreciation expenses are calculated using the straight-line method. Depreciation is expected
to be ¥3,116 million for the fiscal period ending January 31, 2024 and ¥3,295 million for the
fiscal period ending July 31, 2024.
・Leasing business income (excluding gain on sale of real estate) after the deduction of leasing
business expenses (including depreciation) is expected to be ¥5,942 million for the fiscal
period ending January 31, 2024 and ¥6,088 million for the fiscal period ending July 31, 2024.
・In general, municipal property taxes, city planning taxes and other charges levied on real estatetransactions are settled at the time of acquisition by prorating for the period held with thepresent owner. However, MFLP-REIT includes an amount equivalent to the settled amount in
the acquisition costs for the property. As such, expenses relating to municipal property taxes,
city planning taxes and other charges for MFLP Osaka Katano acquired in fiscal period ended
July 31, 2023, MFLP Tomei Ayase and MFLP Tokorozawa acquired in fiscal period ending
January 31, 2024, for the fiscal year 2024 will be booked from the fiscal period ending July31,
2024, expenses relating to municipal property taxes, city planning taxes and other charges for
the MFLP Hiratsuka Ⅲ, MFLP Shinkiba I and SG Realty MFLP Fukuoka Kasuya for the
fiscal year 2025 will be booked from the fiscal period ending July 31, 2025.
- 6 -

Item

Assumptions

・Repair expenses for buildings are expected to be ¥154 million for the fiscal period ending
January 31, 2024 and ¥215 million for the fiscal period ending July 31, 2024 based on themedium- to long-term repair plan established by the asset management company. However,given the possibility that repair expenses may increase or additional expenses may be incurred
due to difficult-to-forecast factors, the actual results may differ significantly from the forecast
amount.

Non-operating
expenses・Interest expenses, interest expenses on investment corporation bonds and other expenses
related to borrowings are expected to be ¥330 million for the fiscal period ending January 31,
2024 and ¥434 million for the fiscal period ending July 31, 2024.
・Investment corporation bond issuance expenses shall be amortized on a monthly basis over aten-year period starting from the month of issuance. Amortization of investment corporationbond issuance expenses is expected to be ¥2 million for the fiscal period ending January 31,
2024, and ¥2 million for the fiscal period ending July 31, 2024.
・Investment unit issuance expenses for the new issue of investment units shall be amortizedmonthly for a three-year period starting from the month of issuance. Amortization of
investment unit issuance expenses is expected to be ¥24 million for the fiscal period ending
January 31, 2024, and ¥19 million for the fiscal period ending July 31, 2024. The issuance of
new investment units is also expected to require temporary expenses of ¥13 million in thefiscal period ending January 31, 2024.

Interest-bearing debt

・It is assumed that total interest-bearing debt will be ¥131,900 million at the end of the fiscal
period ending January 31, 2024 and ¥147,900 million at the end of the fiscal period ending
July 31, 2024.
・The loan-to-value (LTV) ratio is expected to be 36.6% at the end of the fiscal period ending
January 31, 2024 and 39.4% at the end of the fiscal period ending July 31, 2024. The following
formula is used to calculate the LTV ratio.
LTV ratio = Total interest-bearing debt ÷ Total assets × 100

Investment units

・It is assumed that the number of investment units issued and outstanding is 608,000 investment
units as of the date of this document and there will be no change to the number of investment
units by issuing new investment units, etc. through to the end of the fiscal period ending July
31, 2024.
・Distributions per unit (excluding distributions in excess of earnings) and distributions inexcess of earnings per unit are calculated based on the 608,000 units of the expected total
number of investment units issued and outstanding at the end of the fiscal period ending
January 31, 2024 and the fiscal period ending July 31, 2024.

Distributions per unit
(excluding
distributions inexcess of retained
earnings)

・ Distributions per unit (excluding distributions in excess of earnings) is calculated inaccordance with MFLP-REIT’s policy on distribution of cash described in its Articles ofIncorporation and assuming that all profits will be distributed.
1. However, distributions per unit (excluding distributions in excess of earnings) may change fora variety of reasons, including changes in MFLP-REIT’s investment assets, changes in leasing
revenues due to tenant movements, etc. and/or the occurrence of unforeseen repairs andmaintenance, etc.

Distributions inexcess of retained
earnings per unit

・Distributions in excess of earnings per unit is calculated in accordance with MFLP-REIT’s
policy on distribution of cash described in its Articles of Incorporation and the asset
management guidelines for the asset management company.
・MFLP-REIT emphasizes cash flow generated by asset management, such as the leasing ofinvestment assets, excluding gain or loss on sale of real estate. It is MFLP-REIT’s policy to
calculate the amount distributable, including distributions in excess of earnings, up to a
maximum of 75% of FFO(*1) and continually distribute the amount that exceeds the amount of
distribution of earnings, within a scope where financial stability can be secured and owned
assets can be maintained for a long duration of time, as distributions in excess of earnings
determined based on a comprehensive judgment of the situation (the “continuous distributions
in excess of earnings”). The amount distributable will be 70% of FFO until the fiscal period
ended July 31, 2023, and will be raised in stages from the fiscal period ending January 31,
2024 onward, with the amount distributable to be 72% of FFO in the fiscal period ending
January 31, 2024, 73% of FFO in the fiscal period ending July 31, 2024, and thereafter,
- 7 -

Item

Assumptions

74% of FFO in the fiscal period ending January 31, 2025, and 75% of FFO in the fiscal period
ending July 31, 2025. However, the continuous distributions in excess of earnings may beterminated given the economic environment, trends in the real estate market or leasing market,
the situation surrounding owned assets, the percentage of distributions in excess of earnings
accounted for in depreciation during MFLP-REIT’s applicable operating period(*2), and thesituation pertaining to LTV level and retained cash and deposits, among other factors.
・In addition to the continuous distributions in excess of earnings, in cases where the distribution
amount for distributions per unit (including distributions in excess of earnings) is expected totemporarily decline by a certain degree due to such factors as the procurement of funds throughthe issuance of new investment units, etc., a temporary distribution in excess of earnings may
be executed in order to standardize the amount of the distributions per unit (including
distributions in excess of earnings).
・However, from the perspective of continuing to maintain owned assets for a long period oftime, in cases where the above distribution of cash is executed, and where the amount equal
to the equivalent of depreciation for the applicable operating period minus the amount of the
distribution in excess of earnings for the applicable operating period falls below the standard
amount of capital for building maintenance(*3), the distribution in excess of earnings will bedecreased by a maximum amount within which 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 earnings will not be executed.
・In addition, from the perspective of continuing stable financial management, distributions inexcess of earnings will not be executed in cases where the appraisal LTV ratio(*4) exceeds 60%
in the event that the above distribution of cash is executed.
・The total amount of distributions in excess of earnings is expected to be ¥1,039 million for
the fiscal period ending January 31, 2024 and ¥1,236 million for the fiscal period ending July
31, 2024 based on the above calculation. In addition, we expect to make a distribution inexcess of earnings of ¥22 million for the fiscal period ending January 31, 2024 and ¥32 million
for the fiscal period ending July 31, 2024 as allowance for temporary difference adjustments,
which takes into account the impact on distributions of the tax discrepancy in excess of income
associated with the amortization of trust fixed -term land leasehold rights and depreciation andamortization related to asset retirement obligations, but these amounts are included in theabove ¥1,039 million and ¥1,236 million.
(*1) FFO is an acronym that stands for funds from operation. It is calculated by adding depreciation for theapplicable operating period to net income (excluding profit or loss from the sale of real estate, etc.).
(*2) The maximum will be an amount equivalent to 60% of the depreciation for the applicable operating period.
(*3) “Standard amount of capital for building maintenance” refers to the amount that results by multiplying thesix-month-equivalent amount of the 12-year-average amount of the amount equivalent to the capital
expenditure amount noted in the Building Condition Evaluation Report by two.
(*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 realestate on the applicable accounts settlement date

Other

・It is assumed that there will be no change in legislation, taxation, accounting standards, listing
regulations imposed by the Tokyo Stock Exchange, rules and requirements imposed by The
Investment Trusts Association, Japan, etc. that will impact the aforementioned forecasts.
・It is assumed that there will be no unforeseen material changes in general economic trends,
real estate market conditions, etc.

- 8 -

2.

(1)

Financial Statements
Balance Sheets(Thousands of yen)
13th period(As of January 31, 2023)

14th period(As of July 31, 2023)

AssetsCurrent assets
Cash and deposits

1,966,275

629,061

Cash and deposits in trust

7,685,210

7,328,561

Operating accounts receivable

57,158

194,002

Prepaid expenses

30,381

14,998Consumption taxes receivable
Other
Total current assets–

1,143,742

2,631

2,449

9,741,656

9,312,816

171,717,506

186,125,505

Non-current assets
Property and equipment
Buildings in trust
Accumulated depreciation(16,727,005)(19,321,522)

Buildings in trust, net

154,990,500

166,803,982

5,456,758

5,927,220

Accumulated depreciation(1,611,394)(1,841,957)

Structures in trust, net

3,845,364

4,085,262

Machinery and equipment in trust

4,229,270

4,229,270

Accumulated depreciation(1,352,198)(1,496,794)

Machinery and equipment in trust, net

2,877,071

2,732,475

Vehicles and transport equipment in trust

4,021

4,021

(2,890)(2,989)Structures in trust

Accumulated depreciation

1,131

1,031

Tools, furniture and fixtures in trust

Vehicles and transport equipment in trust, net

113,510

119,226

Accumulated depreciation(29,317)(37,558)

Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property and equipment

84,192

81,668164,824,737

166,221,242

47,314

26,374

326,670,312

339,952,038–

594,331

Intangible assets
Land leasehold rights in trust
Software989

814

Total intangible assets

989

595,146

Lease and guarantee deposits

10,00036,942Long-term prepaid expenses

12,965

11,524

Investments and other assets

Deferred tax assets

9

25

Other

1,050

1,050

Total investments and other assets

24,02549,542

326,695,327

340,596,726

Investment unit issuance expenses

76,153

68,263

Investment corporation bond issuance costs

38,231

36,165

Total non-current assets
Deferred assets

Total deferred assets
Total assets- 9 -114,385

104,428

336,551,369

350,013,971

(Thousands of yen)
13th period(As of January 31, 2023)

14th period(As of July 31, 2023)

Liabilities
Current liabilities
791,032

400,191–

4,500,000

Current portion of long-term loans payable

9,600,000

10,600,000

Accounts payable

1,257,985

1,321,537

Accrued expenses

11,287

11,607805

1,135

789,256–

1,851,042

1,933,211

3,252

137

14,304,662

18,767,821

Operating accounts payable
Short-term loans payable

Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities

5,000,000

5,000,000

106,100,000

115,100,000

6,906,456

7,485,795

9,340

8,067

118,015,796

127,593,863

132,320,458

146,361,685

203,299,818

203,299,818

Deduction from unitholders’ capital(3,274,387)(3,907,987)

Unitholders’ capital, net

200,025,430

199,391,830

4,205,480

4,260,455

Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ capital
Unitholders’ capital

Retained earnings
Unappropriated retained earnings (undisposed
loss)
Total retained earnings
Total unitholders’ equity
Total net assets
Total liabilities and net assets- 10 -

4,205,480

4,260,455

204,230,910

203,652,286

204,230,910

203,652,286

336,551,369

350,013,971

(2)Statements of Income(Thousands of yen)
13th period(From August 1, 2022
to January 31, 2023)

14th period(From February 1, 2023
to July 31, 2023)

Property-related revenues*1

10,245,890*1

10,819,676

Other revenues related to property leasing*1714,964*1

658,926

Operating revenues

10,960,854

Total operating revenues

11,478,602

Operating expenses
Property-related expenses*1

5,271,867*1

5,652,639

1,067,813

1,100,519

Asset custody fee

16,95016,827Administrative service fees

20,217

20,279Directors’ compensations

6,600

6,600

Audit fee

10,00010,000

Other operating expenses

62,472

67,418

Total operating expenses

6,455,922

6,874,284

4,504,931

4,604,318

Asset management fee

Operating income
Non-operating income
Interest income

33

38

Insurance income

–

1,433

Interest on refund

2,446

–

669

565

3,149

2,036

Interest expenses

224,203

288,635

Interest expenses on investment corporation bonds

10,616

15,570

Amortization of investment corporation bond issuance
costs

1,638

2,171

Amortization of investment unit issuance expenses

43,834

28,862

Borrowing related expenses

17,553

8,438

Other
Total non-operating income
Non-operating expenses

4,189

1,200

302,036

344,878

Ordinary income

4,206,044

4,261,476

Income before income taxes

4,206,044

4,261,476

810

1,141

Other
Total non-operating expenses

Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 11 -

6

(15)

817

1,125

4,205,227

4,260,351

252

104

4,205,480

4,260,455

(3)Statements of Changes in Net Assets
13th period (From August 1, 2022 to January 31, 2023)(Thousands of yen)

Unitholders’ capital
Unitholders’ capital

Balance at
beginning of
periodUnitholders’capitalDeduction fromunitholders’capital203,299,818

Retained earnings
Unitholders’capital, net

Unappropriatedretained earnings(undisposed loss)

Total retained
earnings(2,628,115)

200,671,702

4,165,308

4,165,308(646,272)(646,272)

Total unitholders’equityTotal net assets

204,837,011

204,837,011(646,272)(646,272)

Changes of items
during period
Distribution inexcess ofretained earnings
Dividends ofearnings(4,165,056)(4,165,056)(4,165,056)(4,165,056)

Net income

4,205,227

4,205,227

4,205,227

4,205,227

Total changes of
items during
period–(646,272)(646,272)

40,17140,171(606,100)(606,100)

Balance at end of
period203,299,818(3,274,387)

200,025,430

4,205,480

4,205,480

204,230,910

204,230,910

14th period (From February 1, 2023 to July 31, 2023)(Thousands of yen)

Unitholders’ capital
Unitholders’ capital
Unitholders’capitalBalance at
beginning of
period203,299,818

Deduction fromunitholders’capitalRetained earnings
Unitholders’capital, net

Unappropriatedretained earnings(undisposed loss)

Total retained
earnings(3,274,387)

200,025,430

4,205,480

4,205,480(633,600)(633,600)

Total unitholders’equityTotal net assets

204,230,910

204,230,910(633,600)(633,600)

Changes of items
during period
Distribution inexcess ofretained earnings
Dividends ofearnings(4,205,376)(4,205,376)(4,205,376)(4,205,376)

Net income

4,260,351

4,260,351

4,260,351

4,260,351

Total changes of
items during
period–(633,600)(633,600)

54,97554,975(578,624)(578,624)

Balance at end of
period203,299,818(3,907,987)

199,391,830

4,260,455

4,260,455

203,652,286

203,652,286- 12 -

(4)Statements of Cash Distributions(Yen)
13th period(From August 1, 2022
to January 31, 2023)

14th period(From February 1, 2023
to July 31, 2023)

I

Unappropriated retained earnings

4,205,480,204

4,260,455,865

II

Distributions in excess of retained
earnings

633,600,000

811,008,000–

6,336,000

633,600,000

804,672,000

4,838,976,000

5,071,104,000(8,401)(8,804)4,205,376,000

4,260,096,000(7,301)(7,396)

Of which: Allowance for temporary
difference adjustments–

6,336,000(Of which: Distribution in excess
of retained earnings per unit
(related to allowance fortemporary difference
adjustments))

(–)

(11)

633,600,000

804,672,000(1,100)(1,397)104,204

359,865

Of which: Allowance for temporary
difference adjustments
Of which: Other deduction fromunitholders’ capital
III Distributions(Distribution per unit)
Of which: Distribution of earnings(Of which: Distribution of
earnings per unit)

Of which: Other distribution in excess
of retained earnings(Of which: Distribution in excess
of retained earnings per unit
(related to other distributions inexcess of retained earnings))
IV Retained earnings carried forward- 13 -

13th period(From August 1, 2022
to January 31, 2023)
In accordance with the distribution policy
as defined in the Article 35, Paragraph 1of the Articles of Incorporation of MFLPREIT, distributions shall be in excess of
the amount equivalent to 90% of theamount 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 period
ended January 31, 2023, MFLP-REIT
declared a distribution amount of¥4,205,376,000, which is the maximum
value of the integral multiple of the total
number of investment units issued andoutstanding at the end of the period inamounts not in excess of unappropriatedretained earnings.
Furthermore, based on the distribution
policy as defined in the Article 35,
Paragraph 2 of the Articles ofIncorporation, 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
Method of calculating distribution amount continuous basis.
Based on this policy, for the fiscal period
ended January 31, 2023, MFLP-REIT
declared the distribution of ¥633,600,000,
which is calculated as being almost
equivalent to the remaining amount after
subtracting the distribution of earnings of¥4,205,376,000 from ¥4,839,210,555 or
70% of FFO (funds from operation), as
distribution of cash in excess of retained
earnings (return of capital applicable to
distribution reducing unitholders’ capitalfor tax purposes).

14th period(From February 1, 2023
to July 31, 2023)
In accordance with the distribution policy
as defined in the Article 35, Paragraph 1of the Articles of Incorporation of MFLPREIT, distributions shall be in excess of
the amount equivalent to 90% of theamount 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 period
ended July 31, 2023, MFLP-REIT
declared a distribution amount of¥4,260,096,000, which is the maximum
value of the integral multiple of the total
number of investment units issued andoutstanding at the end of the period inamounts not in excess of unappropriatedretained earnings.
Furthermore, based on the distribution
policy as defined in the Article 35,
Paragraph 2 of the Articles ofIncorporation, 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 acontinuous basis. Distribution ofallowance for temporary difference
adjustments is also made, taking into
account the impact of the tax discrepancy
in excess of income associated with theamortization of fixed-term land leasehold
rights in trust on distributions.
Based on this policy, for the fiscal period
ended July 31, 2023, of ¥811,008,000,
which is calculated as being almost
equivalent to the remaining amount after
subtracting the distribution of earnings of¥4,260,096,000 from ¥5,071,484,124 or
70% of FFO (funds from operation),
MFLP-REIT declared the distribution of¥804,672,000 as distribution of cash inexcess of retained earnings (return ofcapital applicable to distribution reducing
unitholders’ capital for tax purposes), andthe distribution of ¥6,336,000, which isalmost equivalent to the amortization of
fixed-term land leasehold rights in trust
for the fiscal period under review, as thetax discrepancy in excess of income(allowance for temporary difference
adjustments).

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 therules 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.

- 14 -

(5)Statements of Cash Flows(Thousands of yen)
13th period(From August 1, 2022
to January 31, 2023)

14th period(From February 1, 2023
to July 31, 2023)

Cash flows from operating activities
Income before income taxes

4,206,044

4,261,476

Depreciation and amortization

2,708,105

2,984,800

Amortization of investment corporation bond issuance
costs

1,638

2,171

Amortization of investment unit issuance expenses

43,834

28,862

Interest income

(33)

(38)

Interest expenses

234,820304,206

Insurance income–(1,433)

Decrease (increase) in operating accounts receivable219,288(136,844)

Decrease (increase) in prepaid expenses

19,81815,383

Decrease (increase) in long-term prepaid expenses(12,713)

1,440

Decrease (increase) in consumption taxes receivable

1,848,475(1,143,742)

Increase (decrease) in accrued consumption taxes

789,256(789,256)

Increase (decrease) in operating accounts payable

415,229(345,197)

Increase (decrease) in accounts payable

70,65431,897

Increase (decrease) in advances received

21,571

82,169Other, net

10,028(4,206)

Subtotal

10,576,019

5,291,689

33

38(234,056)(303,886)

89

1,433

Interest income received
Interest expenses paid
Insurance income received
Income taxes paid

(955)

(811)

10,341,129

4,988,463(251,018)(16,292,976)–(600,941)(68,797)(129)

77,424579,469–(26,942)(242,391)(16,341,520)

Proceeds from short-term loans payable

13,300,000

36,500,000

Repayments of short-term loans payable(18,500,000)(32,000,000)

Proceeds from long-term loans payable

3,400,000

15,600,000

Repayments of long-term loans payable(3,400,000)(5,600,000)

2,000,000–(16,106)(1,576)(209)–

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property and equipment in trust
Purchase of intangible assets in trust
Repayments of tenant leasehold and security deposits
in trust
Proceeds from tenant leasehold and security deposits intrust
Payments for lease and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities

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(4,164,938)(4,205,606)

Payment of distribution in excess of retained earnings(646,204)(633,621)

Net cash provided by (used in) financing activities(8,027,458)

9,659,194- 15 -

(Thousands of yen)
13th period(From August 1, 2022
to January 31, 2023)

14th period(From February 1, 2023
to July 31, 2023)

Net increase (decrease) in cash and cash equivalents

2,071,279(1,693,862)

Cash and cash equivalents at beginning of period

7,580,206

9,651,485

Cash and cash equivalents at end of period

9,651,485

7,957,623- 16 -

(6)Notes to Going Concern Assumption
Not applicable.

(7)1.

Notes to Significant Accounting Policies
Method of depreciation andamortization of non-current
assets(1)

Property and equipment (including those in trust)
Depreciation of property and equipment is calculated using the straight-line method
over the estimated useful lives. The useful lives of principal property and equipment
are as follows:
Buildings:
Structures:
Machinery and equipment:
Vehicles:Tools, furniture and fixtures:(2)

2 to 59 years
8 to 50 years
8 to 17 years
4 to 7 years
3 to 15 years

Intangible assets (including those in trust)
Amortization of intangible assets is calculated using the straight-line method over theestimated useful lives.
Amortization of software for internal use is calculated using the straight-line method
over the estimated useful lives of five years at MFLP-REIT.
In addition, amortization of land leasehold rights in trust is calculated using thestraight-line method over the remaining period of the fixed-term land lease agreement.

2.

Accounting method for deferred (1)assets(2)

Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method over athree-year period.
Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized using the straight-line
method over the period until maturity.

3.

Recognition of revenues andexpenses(1)

Recognition standard for revenues
Details of the main performance obligations related to MFLP-REIT’s revenues fromcontracts with customers and the usual time at which the performance obligations are
fulfilled (the usual time at which revenues are recognized) are as follows.
(i)
Utilities charges
For utilities charges, revenues are recognized based on the supply of electricity, water,and so forth to the lessee, who is the customer, in accordance with the lease contract
for the real estate, etc. and the appended agreement details. Utilities charges arepresented under “other revenues related to property leasing” in the statements ofincome, and in the breakdown of “other revenues related to property leasing”
provided in [Notes to Statements of Income] they are presented as “utilities charges.”(2)

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 beneficiaryinterests in real estate, the amount equivalent to property-related taxes in the initial
year borne by the investment corporation is capitalized as part of the acquisition costof the relevant property instead of being charged as expenses.
There was no amount equivalent to property-related taxes capitalized as theacquisition cost for real estate, etc. for the 13th period, and the amount equivalent toproperty-related taxes capitalized as the acquisition cost for real estate, etc. for the
14th period was ¥93,396 thousand.

4.

Scope of cash and cash
equivalents in the statements ofcash flows

Cash and cash equivalents in the statements of cash flows consist of cash on hand and cashin trust, readily-available bank deposits, readily-available bank deposits in trust and shortterm investments that are readily convertible to cash and realizable with a maturity of threemonths or less when purchased and that are subject to an insignificant risk of changes invalue.
- 17 -

5.

Other information for
preparation of financial
statements

Trust beneficiary interests in real estate
As to trust beneficiary interests in real estate that have real estate properties as assets intrust, 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 relevant balance
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 the accompanying balance sheets.
i)
ii)
iii)

Cash and deposits in trust
Buildings in trust, structures in trust, machinery and equipment in trust, vehicles andtransport equipment in trust, tools, furniture and fixtures in trust, land in trust,construction in progress in trust and land leasehold rights in trust
Tenant leasehold and security deposits in trust(Additional Information)[Notes to Provision and Reversal of Allowance for Temporary Difference Adjustments]
13th period (From August 1, 2022 to January 31, 2023)
Not applicable.
14th period (From February 1, 2023 to July 31, 2023)
1.

2.

Reason for provision, related assets, etc., and amount provided
Related assets, etc.

Reason for provision of allowance

Fixed-term land leasehold rights in trust

Occurrence of amortization of land leasehold
rights(Thousands of yen)
Allowance for temporary difference
adjustments

Specific method of reversal
Item
Fixed-term land leasehold rights in trust

Method of reversal
The amount to be treated will be reversed at the time of sale, etc.

- 18 -

6,336

(8)

Notes to Financial Statements[Notes to Statements of Income]*1.

Components of operating income from property leasing

A. Property leasing business revenues
Property-related revenues
Rental revenues
Common area charges
Other revenues related to property leasing
Utilities charges
Parking lots
Others13th period(From August 1, 2022
to January 31, 2023)(Thousands of yen)
14th period(From February 1, 2023
to July 31, 2023)

9,732,676
513,213

10,245,890

10,268,689
550,986

10,819,676

714,964

548,81251,75258,360658,926

613,483
50,56650,914

Total property leasing businessrevenues
B. Property leasing business expenses
Property-related expenses
Outsourcing service expenses
Utilities expenses
Repair expenses
Land rent
Taxes and dues
Depreciation and amortization
Others

10,960,854

688,732
551,994
247,755–
930,448
2,707,930
145,005

11,478,602

707,206
549,174
144,271
53,9781,062,868
2,984,625
150,514

Total property leasing business
expenses

5,271,867

5,652,639

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

5,688,986

5,825,963- 19 -

[Notes to 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:
13th period(From August 1, 2022
to January 31, 2023)(Thousands of yen)
14th period(From February 1, 2023
to July 31, 2023)

Carrying amount
Balance at beginning of period

329,102,932

326,622,997

Changes during the period(2,479,935)

13,896,997

Balance at end of period

326,622,997

340,519,995

394,300,000

417,680,000

Balance at end of period
Notes:
1.

The carrying amount represents acquisition cost less accumulated depreciation.

2.

Changes in the carrying amount during the 13th period consisted of the decrease mainly attributable to depreciation and amortization (¥2,707,930
thousand). Changes in the carrying amount during the 14th period consisted of the increase mainly attributable to acquisition of trust beneficiaryinterests in real estate for one property (¥16,686,929 thousand), and the decrease mainly attributable to depreciation and amortization (¥2,984,625
thousand).

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 [Notes to Statements of Income].
[Notes to Revenue Recognition]
13th period (From August 1, 2022 to January 31, 2023)
Information on disaggregation of revenues from contracts with customers
For information on disaggregation of revenues from contracts with customers, please refer to “*1. Components of operating
income from property leasing” under [Notes to Statements of Income].
Note that revenues based on ASBJ Statement No. 13 “Accounting Standard for Lease Transactions” are included in “*1.
Components of operating income from property leasing.” Revenues from contracts with customers are primarily “utilities
charges.”
14th period (From February 1, 2023 to July 31, 2023)
Information on disaggregation of revenues from contracts with customers
For information on disaggregation of revenues from contracts with customers, please refer to “*1. Components of operating
income from property leasing” under [Notes to Statements of Income].
Note that revenues based on ASBJ Statement No. 13 “Accounting Standard for Lease Transactions” are included in “*1.
Components of operating income from property leasing.” Revenues from contracts with customers are primarily “utilities
charges.”- 20 -

[Notes to Segment and Related Information]
1.

Segment Information
Segment information has been omitted as MFLP-REIT engages in a single segment of the real estate leasing business.

2.

Related information
13th period (From August 1, 2022 to January 31, 2023)(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)
1.

Information by geographical area

Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of thetotal operating revenues on the statements of income.

2.

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 from which revenue makes up 10% ormore of the total operating revenues.

14th period (From February 1, 2023 to July 31, 2023)(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)
1.

Information by geographical area

Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of thetotal operating revenues on the statements of income.

2.

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 from which revenue makes up 10% ormore of the total operating revenues.

- 21 -

[Notes to Per Unit Information]
13th period(From August 1, 2022
to January 31, 2023)

14th period(From February 1, 2023
to July 31, 2023)

Net assets per unit

¥354,567¥353,562

Net income per unit

¥7,300¥7,396

Notes:
1. 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.
2. The basis for calculating net income per unit is as follows:

Net income(thousands of yen)Amount not attributable to common unitholders(thousands of yen)
Net income attributable to common investment units(thousands of yen)
Average number of investment units for the period(units)- 22 -

13th period(From August 1, 2022
to January 31, 2023)

14th period(From February 1, 2023
to July 31, 2023)

4,205,227

4,260,351––

4,205,227

4,260,351

576,000

576,000

[Notes to Significant Subsequent Events]
1.

Issuance of new investment units
Regarding the issuance of new investment units decided in the meetings of the Board of Directors of MFLP-REIT
held on July 31, 2023 and August 3, 2023, as stated below, payment for the issuance of said units was completed
through public offering on August 9, 2023 and through a third-party allotment on August 23, 2023.
As a result, the total investment amount (net) is ¥214,185,910,748, and there are 608,000 units of total number ofinvestment units issued and outstanding.

1. Issuance of new investment units through public offering (primary offering)Number of new investment units issued:

30,470 units (Domestic: 20,870 units, Overseas: 9,600 units)

Issue price:¥477,750 per unit

Total amount of issue price:¥14,557,042,500

Amount paid in (paid-in amount):¥462,315 per unit

Total amount paid in (total paid-in amount):¥14,086,738,050

Payment date:August 9, 2023

2. Issuance of new investment units through a third-party allotment (third-party allotment)

2.

Number of new investment units issued:

1,530 units

Amount paid in (paid-in amount):¥462,315 per unit

Total amount paid in (total paid-in amount):¥707,341,950

Payment date:August 23, 2023

Allottee:

Daiwa Securities Co. Ltd.

Acquisitions of properties
On July 31, 2023, MFLP-REIT concluded an agreement for sale and purchase of trust beneficiary interest with theseller of each of the following assets. Based on the agreements for sale and purchase of trust beneficiary interest,
MFLP-REIT acquired the trust beneficiary interests for MFLP Tomei Ayase and MFLP Tokorozawa on August 10,
2023 (two properties, total acquisition price of ¥13,700 million).

Category

Property no.

Property nameLocation

Acquisition price(millions of yen)
(Note 1)

Acquisition date

L-24

MFLP Tomei Ayase(Note 2)

Ayase-shi, Kanagawa

9,610(Co-ownership 50%)

August 10, 2023

L-25

MFLP Tokorozawa

Miyoshi-machi, Irumagun, Saitama

4,090

August 10, 2023

Logistics facilities
Notes:
1.

2.

“Acquisition price” is the purchase price of each trust beneficiary interest as set forth in each agreement for sale and purchase of trust beneficiary interestfor the acquired assets (excluding consumption tax and local consumption tax or the various costs required in the acquisition), rounded down to the nearest
million yen.
For “MFLP Tomei Ayase,” the acquisition price is the prorated figure equivalent to the co-ownership in the property acquired by MFLP-REIT (50%).

[Acquisitions of properties]

MFLP-REIT entered into a sale and purchase agreement as of July 31, 2023 for the acquisition of the following assets,
and the delivery is scheduled on February 1, 2024.
Category

Logistics facilities

Property no.

Property nameLocation

Planned acquisition
price(millions of yen)
(Note 2)

Planned acquisition date

L-26

MFLP Hiratsuka III

Hiratsuka-shi,
Kanagawa

8,410

February 1, 2024

L-27

MFLP Shinkiba I

Koto-ku, Tokyo

5,940

February 1, 2024

L-28

SG Realty MFLP
Fukuoka Kasuya(Note 3)Kasuya-machi,
Kasuya-gun, Fukuoka

3,040(Co-ownership 50%)

February 1, 2024

Notes:
1.

This sale and purchase agreement falls under the category of forward commitments, etc. (defined as “a postdated sales contract under which payment anddelivery shall be made at least one month after the conclusion of the contract, or any other contract similar thereto” in the “Comprehensive Guidelines forSupervision of Financial Instruments Business Operators, etc.” established by the Financial Services Agency). Under this sale and purchase agreement,
implementation of the sale and purchase is subject to completion of procurement of necessary funds through issuance of investment units and borrowing offunds, and the conditions. If this condition is not met, the sale and purchase agreement shall determinately lose its validity, and the parties shall not seek
payment or compensation for any damages, losses and expenses (including legal fees) arising in relation to the conclusion or lapse of the agreement.
Therefore, in the case where the obligation to pay the price under the sale and purchase agreement cannot be performed due to the inability to complete the- 23 -

issuance of investment units and borrowing of funds, this failure to perform the obligation will not result in payment of penalty. Hence, MFLP-REIT
believes that the agreement is unlikely to have a significant negative impact directly on its finance, distributions, etc.
2.

“Planned acquisition price” is the purchase price of each trust beneficiary interest as set forth in each agreement for sale and purchase of trust beneficiaryinterest for the assets to be acquired (excluding consumption tax and local consumption tax or the various costs required in the acquisition), rounded down
to the nearest million yen.

3.

For “SG Realty MFLP Fukuoka Kasuya,” the planned acquisition price is the prorated figure equivalent to the co-ownership (50%) in the property to beacquired by MFLP-REIT.

[Omission of Disclosure]
The notes to balance sheets, statements of changes in net assets, statements of cash flows, lease transactions, financial
instruments, securities, derivative transactions, retirement benefits, tax effect accounting, transactions with related parties
and asset retirement obligations have been omitted as the necessity to disclose them in the financial results report is deemedslight.

- 24 -

(9)Changes in Total Number of Investment Units Issued and Outstanding
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital, net of
MFLP-REIT for the most recent five years until July 31, 2023.

Date

Description

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

Unitholders’ capital, net(millions of yen)
(Note 1)

Balance

Increase(Decrease)

Balance

Remarks

October 19,
2018

Distribution of cash inexcess of retained
earnings (return ofcapital)–262,774(88)

71,870(Note 2)February 1, 2019

Capital increase
through public offering

110,700

373,474

33,617

105,488(Note 3)February 27,
2019

Capital increase
through third-party
allotment

5,526

379,000

1,678

107,166(Note 4)

April 23, 2019

Distribution of cash inexcess of retained
earnings (return ofcapital)–379,000(84)

107,081(Note 5)October 15,
2019

Distribution of cash inexcess of retained
earnings (return ofcapital)–379,000(259)

106,822(Note 6)

February 3, 2020

Capital increase
through public offering

59,000438,000

28,289135,111(Note 7)

February 27,
2020

Capital increase
through third-party
allotment

3,000

441,000

1,438

136,549(Note 8)

April 23, 2020

Distribution of cash inexcess of retained
earnings (return ofcapital)–

441,000(257)

136,292(Note 9)October 5, 2020

Capital increase
through public offering

96,190537,190

45,922

182,214(Note 10)October 19,
2020

Capital increase
through third-party
allotment

4,810

542,000

2,296

184,510(Note 11)

October 21,
2020

Distribution of cash inexcess of retained
earnings (return ofcapital)–542,000(342)

184,168(Note 12)April 22, 2021

Distribution of cash inexcess of retained
earnings (return ofcapital)–542,000(368)

183,800(Note 13)

October 12,
2021

Distribution of cash inexcess of retained
earnings (return ofcapital)–542,000(527)

183,272(Note 14)February 1, 2022

Capital increase
through public offering

32,380574,380

17,082200,355(Note 15)

February 24,
2022

Capital increase
through third-party
allotment

1,620

576,000854

201,209(Note 16)

April 22, 2022

Distribution of cash inexcess of retained
earnings (return ofcapital)–576,000(538)

200,671(Note 17)

- 25 -

Date

Description

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

Unitholders’ capital, net(millions of yen)
(Note 1)

Balance

Increase(Decrease)

Balance

Remarks

October 21,
2022

Distribution of cash inexcess of retained
earnings (return ofcapital)–576,000(646)

200,025(Note 18)

April 21, 2023

Distribution of cash inexcess of retained
earnings (return ofcapital)–576,000(633)

199,391(Note 19)

- 26 -

Notes:1.

“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”

2.

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 for the 4th
fiscal period (fiscal period ended July 31, 2018), the payout of which commenced on October 19, 2018.

3.

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.

4.

Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥303,680 per unit.

5.

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 ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥322 per unit was declared as distribution of cash for the 5th fiscal
period (fiscal period ended January 31, 2019), the payout of which commenced on April 23, 2019.

6.

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 for the 6th
fiscal period (fiscal period ended July 31, 2019), the payout of which commenced on October 15, 2019.

7.

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.

8.

Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥479,476 per unit.

9.

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 ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥679 per unit was declared as distribution of cash for the 7th fiscal
period (fiscal period ended January 31, 2020), the payout of which commenced on April 23, 2020.

10. 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 purpose of
procuring funds for acquisition of new properties.
11. Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥477,411 per unit.
12. 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 for the 8th
fiscal period (fiscal period ended July 31, 2020), the payout of which commenced on October 21, 2020.
13. 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 ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥679 per unit was declared as distribution of cash for the 9th fiscal
period (fiscal period ended January 31, 2021), the payout of which commenced on April 22, 2021.
14. 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(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥974 per unit was declared as distribution of cash for the 10th
fiscal period (fiscal period ended July 31, 2021), the payout of which commenced on October 12, 2021.
15. New investment units were issued through public offering at an issue price of ¥545,190 (paid-in amount of ¥527,576) per unit mainly for the purpose of
procuring funds for acquisition of new properties.
16. Accompanying the public offering, new investment units were issued through third-party allotment at a paid-in amount of ¥527,576 per unit.
17. By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2022, distribution of cash in excess of retained earnings (return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥993 per unit was declared as distribution of cash for the 11th fiscal
period (fiscal period ended January 31, 2022), the payout of which commenced on April 22, 2022.
18. By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2022, distribution of cash in excess of retained earnings(return of capital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥1,122 per unit was declared as distribution of cash for the
12th fiscal period (fiscal period ended July 31, 2022), the payout of which commenced on October 21, 2022.
19. By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 14, 2023, distribution of cash in excess of retained earnings (return ofcapital applicable to distribution reducing unitholders’ capital for tax purposes) of ¥1,100 per unit was declared as distribution of cash for the 13th fiscal
period (fiscal period ended January 31, 2023), the payout of which commenced on April 21, 2023.

- 27 -

3.

Reference Information(1)

Status of Investment

Type of asset

Geographic
classification(Note 1)

Use

Logistics
facilities
Real estate intrust(Note 4)(Note 5)13th period(As of January 31, 2023)
Total amount held(millions of yen)
(Note 2)

As a percentage
As a percentage
Total amount heldof total assets
of total assets(millions of yen)(%)(%)
(Note 2)
(Note 3)(Note 3)Tokyo
metropolitan area

165,57149.2

164,41147.0

Kansai area

93,65427.8

109,395

31.3

Other areas

41,15812.2

40,701

11.6

300,38589.3

314,509

89.9

26,2377.8

26,010

7.4

–

–

–

–

SubtotalTokyo
metropolitan area

Industrial realestate(Note 6)14th period(As of July 31, 2023)

Kansai area
Other areas
Subtotal

Real estate in trust total
Deposits and other assets
Total assets

–

–

–

–

26,2377.8

26,0107.4

326,62297.0

340,519

97.3

9,928

3.0

9,493

2.7

336,551100.0

350,013100.0

13th period(As of January 31, 2023)
Amount(millions of yen)

As a percentage
of total assets(%)(Note 3)14th period(As of July 31, 2023)
Amount(millions of yen)

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

Total liabilities

132,32039.3

146,361

41.8

Total net assets

204,23060.7

203,652

58.2

Notes:
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.

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 of eachaccounting period, rounded down to the nearest million yen.

3.

“As a percentage of total assets” is rounded to the first decimal place.

4.

“Real estate in trust” refers to real estate of trust beneficiary interests that have mainly real estate in trust.

5.

For real estate in trust, the amount does not include the amount of construction in progress in trust.

6.

“Industrial real estate” refers to data centers, communications facilities, research facilities, factories, supply and treatment facilities, and other real estateserving as corporate bases. The same shall apply hereinafter.

(2)

Investment Assetsi) Major investment securities
Not applicable.

ii) Investment properties
Real estate trust beneficiary interests held by MFLP-REIT are included in the below section “iii) Other major investment
assets.”- 28 -

iii) Other major investment assets(A)

Summary of the assets held
The following summarizes the real estate in trust held by MFLP-REIT.
a.

List of portfolio
The property names, addresses, acquisition dates, acquisition prices, acquisition price ratios, book values andappraisal values of the portfolio assets are as follows.

Category

Book value
Appraisal value(millions of yen) (millions of yen)
(Note 3)(Note 4)

Location

Acquisition date

L-1

GLP/MFLP
Ichikawa
Shiohama(Note 5)

Ichikawa-shi,
Chiba

September 1,
2016

15,5004.3

14,56220,000

L-2

MFLP Kuki

Kuki-shi,
Saitama

August 2, 2016

12,5003.5

11,20915,700

L-3

MFLP
Yokohama
Daikoku(Note 5)

Yokohama-shi,August 2, 2016
Kanagawa

10,1002.8

9,513

11,500

L-4

MFLP Yashio

August 2, 2016

9,650

2.7

8,889

12,000

L-5

MFLP Atsugi

August 2, 2016

7,810

2.2

6,997

10,400

L-6

MFLP
Funabashi
Nishiura

Funabashi-shi,
Chiba

August 2, 2016

6,970

1.9

6,316

8,500

L-7

MFLP Kashiwa

Kashiwa-shi,
Chiba

August 2, 2016

6,300

1.8

5,660

8,130

23,6006.6

22,41028,200

8,260

2.3

7,364

9,030

12,533

3.5

11,803

14,100

7,027

2.0

6,550

8,410

8,781

2.4

8,136

11,30016,2004.5

14,771

19,30013,1003.7

12,217

15,600

5,263

1.5

4,818

6,360

14,8004.1

14,181

17,85014,4804.0

13,746

16,50058,90016.4

56,817

68,90018,5005.2

18,07920,60018,0005.0

17,733

19,10013,9003.9

13,752

14,70012,7003.5

12,56013,70016,5004.6

16,415

16,500331,374

92.4

314,509386,380

12,2203.4

11,362

14,30015,15027,370358,744

4.2
7.6
100.0

14,64826,010340,519

17,00031,300417,680

L-9
L-10
L-11
L-12
L-13
L-14
L-15
L-16
L-17
L-18
L-19
L-20
L-21
L-22
L-23

Industrial realestateAcquisition
price ratio(Note 2)

Property name

L-8

Logistics
facilities

Acquisition
price(millions of yen)
(Note 1)

Property no.

I-1
I-2

Yashio-shi,
Saitama
Aiko-gun,Kanagawa

MFLP Sakai
Sakai-shi, Osaka August 2, 2016
(Note 6)MFLP Komaki
Komaki-shi,August 4, 2017
(Note 7)Aichi
MFLP Hino
February 2,
Hino-shi, Tokyo(Note 5, 8)
2018
Hiratsuka-shi,
MFLP Hiratsuka
March 15, 2018
Kanagawa
MFLP Tsukuba TsukubamiraiDecember 3,(Note 9)shi, Ibaraki
2018
Inazawa-shi,
February 4,
MFLP Inazawa
Aichi
2019
Isehara-shi,
February 4,
MFLP Atsugi II
Kanagawa
2019
MFLP Fukuoka
Sue-machi,
February 4,
I
Kasuya-gun,
2019(Note 10)
Fukuoka
MFLP Prologis
Kawagoe-shi,
February 5,
Park Kawagoe
Saitama
2020(Note 5)
MFLP
Hiroshima-shi,
March 2, 2020
Hiroshima I
Hiroshima
Ibaraki-shi,
MFLP Ibaraki
October 6, 2020
Osaka
MFLP
Kawaguchi-shi,
October 6, 2020
Kawaguchi I
Saitama
MFLP Yachiyo Yachiyo-shi,
February 2,
Katsutadai
Chiba
2022
Osaka-shi,
February 2,
MFLP Osaka I
Osaka
2022
MFLP Hiratsuka Hiratsuka-shi,
February 2,
II
Kanagawa
2022
MFLP Osaka
Katano-shi,
February 1,
KatanoOsaka
2023(Note 11)
Logistics facilities total
MFIP Inzai
Inzai-shi, Chiba August 2, 2016
(Note 12)MFIP Inzai II Inzai-shi, Chiba March 16, 2021
Industrial real estate total
Total- 29 -

Notes:1.

“Acquisition price” is the purchase price of each trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiary interest of
the assets held by MFLP-REIT, rounded down to the nearest million yen. The transaction price does not include the various costs required in theacquisition.

2.

“Acquisition price ratio” is the portfolio asset acquisition price share of MFLP-REIT of the total acquisition price rounded to the first decimal place.

3.

For “Book value,” the amount does not include the amount of construction in progress in trust.

4.

“Appraisal value” is the value in the real estate appraisal reports as of the valuation date of July 31, 2023. The appraisal of each asset held is entrusted toJapan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. and CBRE K.K.

5.

For GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Hino and MFLP Prologis Park Kawagoe, acquisition price, book value andappraisal value are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT has acquired (50%, 50%, 25% and50%, respectively).

6.

20% quasi co-ownership in MFLP Sakai was acquired on August 2, 2016, and 70% quasi co-ownership and 10% quasi co-ownership were additionallyacquired on February 5, 2020 and April 6, 2020, respectively, but the acquisition date lists the initial date of acquisition of the property.

7.

40% quasi co-ownership in MFLP Komaki was acquired on August 4, 2017, and 60% quasi co-ownership was additionally acquired on February 2, 2018,
but the acquisition date lists the initial date of acquisition of the property.

8.

15% quasi co-ownership in MFLP Hino was acquired on February 2, 2018, and 10% quasi co-ownership was additionally acquired on February 4, 2019,
but the acquisition date lists the initial date of acquisition of the property.

9.

60% quasi co-ownership in MFLP Tsukuba was acquired on December 3, 2018, and 40% quasi co-ownership was additionally acquired on March 1, 2019,
but the acquisition date lists the initial date of acquisition of the property.

10. 81% quasi co-ownership in MFLP Fukuoka I was acquired on February 4, 2019, and 19% quasi co-ownership was additionally acquired on April 5, 2019,
but the acquisition date lists the initial date of acquisition of the property.
11. The acquisition price, book value and appraisal value for MFLP Osaka Katano include land leasehold rights in trust.
12. 20% quasi co-ownership in MFIP Inzai was acquired on August 2, 2016 and 80% quasi co-ownership was additionally acquired on February 4, 2019, but
the acquisition date lists the initial date of acquisition of the property.

- 30 -

b.

Summary of buildings
The property names, property types, site areas, total floor areas, completion dates and building ages of theportfolio assets are as follows.

Category

Property no.

L-1
L-2
L-3

Property name

Property type
(Note 1)Site area (m²)(Note 2)

Total floor area(m²)
(Note 2)

52,887105,019(52,509)

January 14, 2014

9.5

35,03773,153

July 7, 2014

9.1

47,974

100,530(50,265)

April 14, 2009

14.3

GLP/MFLP
Ichikawa
Rampway MFLP
Shiohama (Note 5)
MFLP Kuki

Slope MFLP

MFLP Yokohama
Rampway MFLP
Daikoku (Note 5)

Building age(years)(Note 4)L-4MFLP Yashio

Box MFLP

23,422

40,728March 24, 2014

9.4

L-5

MFLP Atsugi

Slope MFLP

20,52240,942

March 13, 2015

8.4

L-6

MFLP Funabashi
Nishiura

Box MFLP

15,51830,947

February 6, 2015

8.5

L-7

MFLP Kashiwa

Box MFLP

15,484

31,242

November 30,
2015

7.7

L-8

MFLP Sakai

Rampway MFLP

57,792

125,127

September 11,
2014

8.9

L-9

MFLP Komaki

Slope MFLP

23,48440,597January 31, 2017

6.5

L-10

MFLP Hino(Note 5)

Rampway MFLP

97,579205,200(51,300)

October 16, 2015

7.8

L-11

MFLP Hiratsuka

Box MFLP

16,39833,061

November 30,
2016

6.7

L-12

Existing building:
37,027

Existing building: Existing building:June 30, 2010
13.1

Annex building:
25,457

Annex building: Annex building:March 30, 2018
5.3

MFLP Tsukuba

Box MFLP

45,605

L-13

MFLP Inazawa

Slope MFLP

35,07472,883

May 31, 2017

6.2

L-14

MFLP Atsugi II

Slope MFLP

25,991

48,976

April 27, 2018

5.3

L-15

MFLP Fukuoka I

Box MFLP

20,09332,199October 12, 2016

6.8

L-16

MFLP Prologis
Park Kawagoe(Note 5)

Rampway MFLP

58,749117,337(58,668)

October 16, 2018

4.8

L-17

MFLP Hiroshima
I

Slope MFLP

33,78868,427

August 30, 2019

3.9

L-18

MFLP Ibaraki

Rampway MFLP

108,671

230,435

August 26, 2017

5.9

L-19

MFLP Kawaguchi
I

Slope MFLP

28,194

49,838October 31, 2019

3.8

L-20

MFLP Yachiyo
Katsutadai

Slope MFLP

35,75474,624

August 31, 2020

2.9

L-21

MFLP Osaka I

Slope MFLP

23,233

43,919July 16, 2020

3.0

L-22

MFLP Hiratsuka
II(Note 6)

Box MFLP

25,191

48,141

October 31, 2019

3.8

L-23

MFLP Osaka
Katano(Note 7, 8)

Slope MFLP

33,877

68,528September 10,
2021

1.9

Logistics facilities total (average) (Note 5)

880,327

1,744,349(1,429,005)

–

6.6

I-1

MFIP Inzai

Data center

25,00040,478February 28, 2014

9.4

I-2

MFIP Inzai II

Data center

18,27427,268

May 31, 2020

3.2

43,27467,746–

6.9

923,601

1,812,096(1,496,752)–

6.6

Logistics facilities

Industrial realestateConstruction
completed(Note 3)

Industrial real estate total (average) (Note 5)
Total (average) (Note 5)
Notes:
1.

Property types are as follows: Rampway MFLPs are properties that are logistics facilities that provide spiral rampways that allow delivery trucks to directly
access each of the upper-floor truck berths (hereinafter “Rampway MFLP”), Slope MFLPs are properties that are logistics facilities that provide slopes thatallow delivery trucks to directly access some of the upper-floor truck berths (hereinafter “Slope MFLP”), and Box MFLPs are properties that are logistics
facilities that allow delivery trucks to access truck berths located on the ground floor and are equipped with vertical conveyors for delivery to upper floors(hereinafter “Box MFLP”). For Industrial real estate, a specific usage is described in the “Property type” of the building.

2.

“Site area” and “Total floor area” are rounded down to the nearest whole number based upon presentations in the registers for the land or buildings in theportfolio assets of MFLP-REIT. “Total floor area” is the total floor area for main buildings and ancillary buildings. If there is more than one main building,“Total floor area” represents the total floor area for each main building. For MFLP Tsukuba, total floor area for existing buildings is in the upper section
and that for added buildings is in the lower section.

- 31 -

3.

“Construction completed” is the date of construction of the main building of each asset held by MFLP-REIT in the register. If there is more than one mainbuilding, the construction completed is the oldest date shown in the register. For MFLP Tsukuba, the completion date for existing buildings is in the upper
section and that for added buildings is in the lower section.

4.

“Building age” is the age from the date of completion in the register for the main building in the portfolio asset of MFLP-REIT to July 31, 2023, rounded
to the first decimal place. Sections for totals (averages) and sections for totals (averages) in each category describe the weighted average values based on
total floor taking into consideration the quasi co-ownership interest in each property. For MFLP Tsukuba, the building age for existing buildings is in theupper section and that for added buildings is in the lower section.

5.

Total floor areas for GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Hino and MFLP Prologis Park Kawagoe in parentheses are theprorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT holds (50%, 50%, 25% and 50%, respectively). The values
given for “Total floor area” in the sections for “Logistics facilities total (average)” and “Total (average)” express in parentheses either the total value inlogistics facilities or the total value under “Total floor area” for each portfolio asset taking into consideration the quasi co-ownership interest in each
property.

6.

Land for MFLP Hiratsuka II is a provisional replotting area located in the construction section for the Twin City Okami district land readjustment projectin the Hiratsuka City urban planning project. The site area represents the area of the provisional replotting area stated in the provisional replotting area
certificate.

7.

Land for MFLP Osaka Katano is a provisional replotting area located in the construction section for the Hoshidakita land readjustment project in theeastern Osaka urban planning project. The site area represents the total area of the provisional replotting area stated in the provisional replotting area
certificate.

8.

The site area for MFLP Osaka Katano includes land leasehold rights in trust.

c.

Status of portfolio asset collateral
Not applicable.

(B)

Summary of leasea.

Summary of lease
The property names, leasable areas, leased areas, occupancy rates, number of tenants, names of main tenants,
annual rents, tenant leasehold / security deposits, average lease periods and average remaining lease periods of theportfolio assets held by MFLP-REIT as at the end of the fiscal period under review are as follows.

Category

Logistics
facilities

Leased area(m²)
(Note 2)

Occupancy
rate (%)(Note 3)

Number oftenants(tenants)(Note 4)

Name of main
tenant(Note 5)

Annual rent
(millions ofyen)(Note 6)

Tenantleasehold/security
deposits(millions ofyen)(Note 7)

Average lease
period (Averageremaining lease
period) (years)(Note 8, 9)

Propertyno.

Property
nameLeasablearea (m²)(Note 1)

L-1

GLP/MFLP
Ichikawa
Shiohama(Note 10)50,81350,813100.0

5

Rakuten, Inc.

868

150

12.9
(5.8)

L-2

MFLP Kuki

67,92567,925100.0

3

KOKUBUSHUTOKEN
CORP.

829

312

9.3
(1.2)

L-3

MFLP
Yokohama
Daikoku(Note 10)47,93947,939100.0

5Not disclosed(Note 11)

693

242

9.4
(3.1)

L-4

MFLP
Yashio39,692

39,692100.0

2e-LogiT co., ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-5

MFLP
Atsugi40,95840,958100.0

1

Sun Toshi
Tatemono
Kabushiki Kaisha

Notdisclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-6

MFLP
Funabashi
Nishiura

31,03431,034

100.0

1

DAIWA
CORPORATION,
Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-7

MFLP
Kashiwa

31,291

31,291100.0

1LOGISTEEDMetropolitan, Ltd.
(Note 12)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-8

MFLP Sakai

112,148

112,148100.0

7

BIC CAMERA
INC.

1,480

559

L-9

MFLP
Komaki38,80638,806

100.0

2

MEIKON CO.,
LTD.

Not
disclosed(Note 11)

Not
disclosed(Note 11)

L-10

MFLP Hino(Note 10)46,80146,801100.0

17Celestica Japan
K.K.

713

255

L-11

MFLP
Hiratsuka

33,05533,055100.0

Notdisclosed(Note 11)

Nippon Express
Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)

- 32 -

10.9(5.6)
Not disclosed(Note 11)7.7
(2.6)
Not disclosed(Note 11)Category

Logistics
facilities

Propertyno.

Property
nameLeased area(m²)
(Note 2)

Existingbuilding:
37,938

Existingbuilding:
37,938Annexbuilding:
25,600Annex
building:
25,600Name of main
tenant(Note 5)Tenantleasehold/security
deposits(millions ofyen)(Note 7)

Average lease
period (Averageremaining lease
period) (years)(Note 8, 9)

1MARUBENILOGISTICS
CORPORATION

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Occupancy
rate (%)(Note 3)

100.0
100.0

L-12

MFLP
Tsukuba

L-13

MFLP
Inazawa

68,922

68,922100.0

2Japan Logistic
Systems Corp.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-14

MFLP
Atsugi II

48,03248,032100.0

2Japan Logistic
Systems Corp.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-15

MFLP
Fukuoka I

32,21632,216100.0

1

Sagawa Global
Logistics Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-16

MFLP
Prologis Park
Kawagoe(Note 10)56,72353,41094.2

10Not disclosed(Note 11)

814

344

7.2
(3.3)

L-17

MFLP
Hiroshima I

66,66566,665100.0

4Sagawa Global
Logistics Co., Ltd.

958

454

8.0
(4.3)

L-18

MFLP
Ibaraki

208,811

208,811100.0

10

UNIQLO CO.,
LTD.

3,433

1,271

7.0
(2.3)

L-19

MFLP
Kawaguchi I

48,11948,119100.0

1Nakano Shokaico., ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-20

MFLP
YachiyoKatsutadai

69,83069,830100.0

1

LOGISTEEDMetropolitan, Ltd.
(Note 12)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-21

MFLP OsakaI

43,88043,880100.0

1Sangetsu
Corporation

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-22

MFLP
Hiratsuka II

46,52546,525100.0

2

Higashi Nihon
Kyuko Co., Ltd.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

L-23

MFLP Osaka
Katano67,264

67,264100.0

Notdisclosed(Note 11)

NTT LOGISCO
Inc.

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

1,360,997

1,357,684

99.8

Not
disclosed(Note 11)–

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Subtotal(average)

Industrial
real estate

Leasablearea (m²)(Note 1)

Annual rent
(millions ofyen)(Note 6)

Number oftenants(tenants)(Note 4)

I-1

MFIP Inzai

Notdisclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

I-2

MFIP Inzai
II

30,90630,906100.0

1

Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)–

Not
disclosed(Note 11)

Not
disclosed(Note 11)Not disclosed(Note 11)

Not
disclosed(Note 11)

Not
disclosed(Note 11)

99.8

Not
disclosed(Note 11)–21,0307,436

Subtotal(average)
Total(average)

9.1
(4.0)

Notes:
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 basedon the lease agreement (Excluding lease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots. Leaseagreements for said buildings hereinafter referred to as “Subject Lease Agreements” in (B). Note that if the Subject Lease Agreements have been executed
as of July 31, 2023, the buildings or rooms for lease that are vacant as of the said date are included in the Subject Lease Agreements as being under leaseeven if the move-in or handover date has not occurred on the said date.) or floor plan, etc. for such building as of July 31, 2023, and does not include theleased area indicated in the lease agreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers
and the like. The same shall apply hereinafter in (B).

2.

“Leased area” is the total leased area rounded down to the nearest whole number presented in each Subject Lease Agreement for buildings in each portfolio
asset of MFLP-REIT as of July 31, 2023. If a master lease agreement has been executed for each portfolio asset held by MFLP-REIT as of July 31, 2023,
the total leased area represents the sum total of the area that is actually leased based on the Subject Lease Agreement signed with end-tenant rounded down
to the nearest whole number. The same shall apply hereinafter in (B).

- 33 -

3.

“Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings for each property held by MFLP-REIT as of July 31,
2023, rounded to the first decimal place. Occupancy rates for the subtotal (average) section and total (average) section are the share of the total leased areaof the properties of the total leasable area of said properties, rounded to the first decimal place.

4.

“Number of tenants” is the total number of Subject Lease Agreements for buildings in each portfolio asset of MFLP-REIT as of July 31, 2023. If a master
lease agreement has been executed for each portfolio asset held by MFLP-REIT as of July 31, 2023, it is the total number of the end-tenants. However, if
one lessee enters into a multiple number of the Subject Lease Agreements for the same building of assets held by MFLP-REIT as of July 31, 2023, thenumber of tenants is calculated on the assumption that such lessee is one party.

5.

“Names of main tenant” are the names of the tenants with the largest leased area presented in the Subject Lease Agreements for buildings in each portfolio
asset of MFLP-REIT as of July 31, 2023.

6.

“Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of lease agreements have been
executed), which is 12 times monthly rent indicated in the Subject Lease Agreements for buildings in each portfolio asset of MFLP-REIT as of July 31,
2023, rounded down to the nearest million yen. However, if there are different provisions for monthly rent depending on the time period in each Subject
Lease Agreement, the monthly rent (including common area charges) for July 2023 shown in said lease agreement is the basis of the calculation. The rentfree periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as of July 31, 2023 shall not be included.

7.

“Tenant leasehold/security deposits” represent the sum of the outstanding amounts of tenant leasehold/security deposits (the sum of the outstanding
amounts of tenant leasehold/security deposits if a multiple number of lease agreements have been executed), rounded down to the nearest million yen,shown in the Subject Lease Agreement for buildings in each portfolio asset of MFLP-REIT as of July 31, 2023. However, if there are different provisions
for the sum of outstanding leasehold/security deposits depending on the time period in each Subject Lease Agreement, the sum of the amount of tenantleasehold/security deposits for July 2023 shown in the lease agreement is the basis of the calculation.

8.

“Average lease period” is calculated by weight averaging the lease periods presented in the Subject Lease Agreements for buildings in each portfolio assetof MFLP-REIT as of July 31, 2023, with rents and rounded to the first decimal place. Concerning the Subject Lease Agreements, when a new leaseagreement (hereinafter, referred to as “re-contract”) starting on the day immediately following the expiration date (including the case of cancellation, thesame applies hereinafter) of the respective lease agreement is concluded with the same lessee in the Subject Lease Agreements as of July 31, 2023, lease
period is deemed to be from the start of the initial lease agreement to the expiration date of the re-contract, and used in the calculation as such.

9.

“Average remaining lease period” is calculated by weight averaging the remaining period of the lease periods after July 31, 2023, based on the Subject
Lease Agreements for buildings in each portfolio asset of MFLP-REIT as of July 31, 2023, with rents and rounded to the first decimal place. Concerning
the Subject Lease Agreements, when the re-contract is concluded with the same lessee as of July 31, 2023, the remaining period shall be calculated
assuming that the lease period continues from July 31, 2023 to the expiration date of the re-contract.

10. For GLP/MFLP Ichikawa Shiohama, MFLP Yokohama Daikoku, MFLP Hino and MFLP Prologis Park Kawagoe, leasable area, leased area, annual rent
and tenant leasehold/security deposits are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT holds (50%,50%, 25% and 50%, respectively) as of July 31, 2023.
11. Not disclosed, because consent has not been obtained from the lessee.
12. The trade name was changed from Hitachi Transport System Metropolitan Co., Ltd. to LOGISTEED Metropolitan, Ltd. on April 1, 2023.

- 34 -

b.

Occupancy rate trends
Trends in portfolio asset occupancy rates as at the end of each accounting period are as follows.
(%)
Occupancy rate (Note 1)

Category

Logistics
facilities

5th period(From August 1,
2018 to January
31, 2019)

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

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

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

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

GLP/MFLP
Ichikawa
Shiohama

100.0

100.0

87.6

100.0

100.0

L-2

MFLP Kuki

100.0

100.0

100.0

100.0

100.0

L-3

MFLP Yokohama
Daikoku

100.0

100.0

100.0

100.0

100.0

L-4

MFLP Yashio

100.0

100.0

100.0

100.0

100.0

L-5

MFLP Atsugi

100.0

100.0

100.0

100.0

100.0

L-6

MFLP Funabashi
Nishiura

100.0

100.0

100.0

100.0

100.0

L-7

MFLP Kashiwa

100.0

100.0

100.0

100.0

100.0

L-8

MFLP Sakai

100.0

100.0

100.0

100.0

100.0

L-9

MFLP Komaki

100.0

100.0

100.0

100.0

100.0

L-10

MFLP Hino

100.0

100.0

100.0

100.0

99.9

L-11

MFLP Hiratsuka

100.0

100.0

100.0

100.0

100.0

L-12

MFLP Tsukuba

100.0

100.0

100.0

100.0

100.0

L-13

MFLP Inazawa

–

100.0

100.0

100.0

100.0

L-14

MFLP Atsugi II

–

100.0

100.0

100.0

100.0

L-15

MFLP Fukuoka I

–

100.0

100.0

100.0

100.0

L-16

MFLP Prologis
Park Kawagoe

–

–

–

100.0

100.0

L-17

MFLP Hiroshima
I

–

–

–

100.0

100.0

L-18

MFLP Ibaraki

–

–

–

–

100.0

L-19

MFLP
Kawaguchi I

–

–

–

L-20

MFLP Yachiyo
Katsutadai

–

–

–

L-21

MFLP Osaka I

–

–

L-22

MFLP Hiratsuka
II

–

L-23

MFLP Osaka
KatanoProperty no.

Property nameL-1

Subtotal(average)

Industrial realestate

–

100.0

–

–

–

–

–

–

–

–

–

–

–

–

–

–

100.0

100.0

99.1

100.0

100.0

I-1

MFIP Inzai

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

I-2

MFIP Inzai II

–

–

–

–

–

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

100.0

100.0

99.1

100.0

100.0

Subtotal(average)
Total(average)- 35 -

(%)
Occupancy rate (Note 1)
Category

Logistics
facilities

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

11th period(From August 1,
2021 to January
31, 2022)

12th period(From February
1, 2022 to July
31, 2022)

13th period(From August 1,
2022 to January
31, 2023)

14th period(From February
1, 2023 to July
31, 2023)

GLP/MFLP
Ichikawa
Shiohama

100.0

100.0

100.0

100.0

100.0

L-2

MFLP Kuki

100.0

100.0

100.0

100.0

100.0

L-3

MFLP Yokohama
Daikoku

100.0

100.0

100.0

100.0

100.0

L-4

MFLP Yashio

100.0

100.0

100.0

100.0

100.0

L-5

MFLP Atsugi

100.0

100.0

100.0

100.0

100.0

L-6

MFLP Funabashi
Nishiura

100.0

100.0

100.0

100.0

100.0

L-7

MFLP Kashiwa

100.0

100.0

100.0

100.0

100.0

L-8

MFLP Sakai

100.0

100.0

100.0

100.0

100.0

L-9

MFLP Komaki

100.0

100.0

100.0

100.0

100.0

L-10

MFLP Hino

99.9

100.0

96.8

100.0

100.0

L-11

MFLP Hiratsuka

100.0

100.0

100.0

100.0

100.0

L-12

MFLP Tsukuba

100.0

100.0

100.0

100.0

100.0

L-13

MFLP Inazawa

100.0

100.0

100.0

100.0

100.0

L-14

MFLP Atsugi II

100.0

100.0

100.0

100.0

100.0

L-15

MFLP Fukuoka I

100.0

100.0

100.0

100.0

100.0

L-16

MFLP Prologis
Park Kawagoe

100.0

100.0

100.0

94.2

94.2

L-17

MFLP Hiroshima
I

100.0

100.0

100.0

100.0

100.0

L-18

MFLP Ibaraki

100.0

100.0

100.0

100.0

100.0

L-19

MFLP
Kawaguchi I

100.0

100.0

100.0

100.0

100.0

L-20

MFLP Yachiyo
Katsutadai

–

–

100.0

100.0

100.0

L-21

MFLP Osaka I

–

–

100.0

100.0

100.0

L-22

MFLP Hiratsuka
II

–

–

100.0

100.0

100.0

L-23

MFLP Osaka
Katano

–

–

–

–

100.0

100.0

100.0

99.9

99.7

99.8

Property no.

Property nameL-1

Subtotal(average)

Industrial realestate

I-1

MFIP Inzai

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

I-2

MFIP Inzai II

100.0

100.0

100.0

100.0

100.0

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

100.0

100.0

99.9

99.8

99.8

Subtotal(average)
Total(average)
Notes:
1.

“Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings for each property at the end of each accounting
period, rounded to the first decimal place. Occupancy rates for the subtotal (average) section and total (average) 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.

2.

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

- 36 -

c.

Information on major real estates and other properties
The following is an overview of the real estates held by MFLP-REIT whose annual rent makes up 10% or more of
the total annual rent for the entire portfolio as of July 31, 2023.

Property name

Annual rent (millions of yen)
(Note 1)

Rent ratio (%)(Note 2)

MFLP Ibaraki

3,433

16.3

Total

3,433

16.3

Notes:
1.

“Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of lease agreements have been
executed), which is 12 times monthly rent (including common area charges) indicated in the Subject Lease Agreements for buildings in each portfolio assetof MFLP-REIT as of July 31, 2023, rounded down to the nearest million yen. If a master lease agreement has been concluded based upon said portfolio
asset, this is calculated based upon lease agreements with the end-tenants. However, if there are different provisions for monthly rent depending on thetime period in each Subject Lease Agreement, the monthly rent (including common area charges) for July 2023 shown in said lease agreement is the basisof the calculation. The rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as of July 31,
2023 shall not be included.

2.

“Rent ratio” is the ratio of the annual rent of said property to the total of annual rents for the entire portfolio rounded to the first decimal place.

d.

Information about main tenant
Disclosure of this information has been omitted as there were no tenants of the assets held by MFLP-REIT with aleased area of 10% or more of the total leased area of the entire portfolio as of July 31, 2023 (including endtenants for assets with a pass-through master lease agreement concluded or to be concluded, but not including
master lease companies concluding or planning to conclude said master lease agreements).

- 37 -

(C)Capital expenditures of real estate helda.

Schedule of capital expenditures
Of the capital expenditures accompanying renovations, etc. currently planned for real estate and real estate in trustof real estate trust beneficiary interests held by MFLP-REIT, the following are the major planned amounts. Theremay be cases where the planned construction amount ends up being in part expensed in accounting instead ofbeing capitalized.

Name of real estate, etc.

Location

PurposeScheduled time

Planned construction amount(millions of yen)
(Note)
Total amountAmount paid
during period

Total amountalready paid

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Lounge renewal work

From August 2023
to September 2023

25

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Exterior wall painting(Section 11)

From August 2023
to December 2023

49

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Coastal protection and repair
work

From November 2023
to December 2023

12

–

–

MFLP Yokohama
Daikoku

Yokohama-shi,
Kanagawa

Exterior wall painting(Section 12)

From February 2024
to June 2024

30

–

–

MFLP Funabashi
Nishiura

Funabashi-shi, Chiba Installation of LED lighting

From November 2023
to January 2024

38

–

–

MFLP Hino

Hino-shi, Tokyo

Floor coating work

From January 2024
to January 2024

11

–

–

MFLP Hino

Hino-shi, Tokyo

Upgrade of lighting
equipment

From June 2024
to June 2024

37

–

–

MFLP Tsukuba

Tsukubamirai-shi,
IbarakiExterior wall painting andjoint filler renewal work

From February 2024
to July 2024

165

–

–

MFLP Ibaraki

Ibaraki-shi, Osaka

Replacement of automatic
fire alarms

From July 2023
to January 2024

13

–

–

MFLP Ibaraki

Ibaraki-shi, Osaka

Upgrade of electricity meters

From February 2024
to February 2024

43

–

–

Note:
For “MFLP Yokohama Daikoku” and “MFLP Hino,” each planned construction amount is the prorated figures equivalent to the quasi co-ownership interest ineach property that MFLP-REIT holds (50% and 25%, respectively).

- 38 -

b.

Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the
fiscal period under review for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period underreview amounted to ¥194 million and, other than this, there was ¥144 million in repair expenses categorized as
operating expenses in the fiscal period under review.

Name of real estate, etc.

Location

Purpose

PeriodConstruction amount(millions of yen)
(Note)

GLP/MFLP Ichikawa
Shiohama

Ichikawa-shi, Chiba

Installation of LED lighting

From December 2022
to February 2023

12

MFLP Yokohama Daikoku

Yokohama-shi, Kanagawa

Exterior wall painting(Section 10)

From January 2023
to June 2023

49

MFLP Sakai

Sakai-shi, Osaka

Installation of disconnect
switchFrom June 2023
to July 2023

21

MFLP Sakai

Sakai-shi, Osaka

Upgrade of electricity meters

From July 2023
to July 2023

11

MFLP Atsugi II

Isehara-shi, Kanagawa

Lightning protection
equipment work

From March 2023
to June 2023

10

MFLP Ibaraki

Ibaraki-shi, Osaka

Updating of security systems

From March 2023
to July 2023

11

Other capital expenditures

77
Total

194

Note:
For “GLP/MFLP Ichikawa Shiohama” and “MFLP Yokohama Daikoku,” each construction amount is the prorated figures equivalent to the quasi co-ownershipinterest in each property that MFLP-REIT holds (50% each).

c.

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

- 39 -

(D)Status of individual asset earnings

Property no.

L-1

L-2

L-3

L-4

(Thousands of yen)
L-5

Name

GLP/MFLP
Ichikawa Shiohama

MFLP Kuki

MFLP Yokohama
Daikoku

MFLP Yashio

MFLP Atsugi

Management period

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

Number of days ofmanagement

181 days

181 days

181 days

181 days

181 days

Not disclosed(Note)

Not disclosed(Note)(A) Property
leasingbusiness
revenues

499,969

491,014363,921

Real estateleasingbusiness
revenues

460,706

448,669

341,617

Other revenues
related toproperty
leasing

39,26342,34522,304125,488

124,429

99,287

Outsourcing
serviceexpenses

39,67335,23630,817

Utilities
expenses

26,11536,25019,407

Repairexpenses

17,439

8,093

6,862

Land rent–––

Taxes and dues

40,22042,40440,405

Various costs
required

2,039

2,444

1,795

(C) NOI (=A–B)

374,481366,585

264,633

260,882

233,398(D) Depreciation
andamortization

80,902

111,151

90,56463,652

63,357(E) Operating
income fromproperty
leasing (=C–D)

293,578

255,433

174,069

197,229

170,040(B) Property
leasingbusiness
expenses- 40 -

Property no.

L-6

L-7

L-8

L-9

L-10

Name

MFLP Funabashi
Nishiura

MFLP Kashiwa

MFLP Sakai

MFLP Komaki

MFLP Hino

Management period

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

Number of days ofmanagement

181 days

181 days

181 days

181 days

181 days(A) Property
leasingbusiness
revenues

863,058

398,338

Real estateleasingbusiness
revenues

783,115364,579

Other revenues
related toproperty
leasing

79,94233,759(B) Property
leasingbusiness
expenses

Not disclosed(Note)

Not disclosed(Note)

234,992

Not disclosed(Note)

104,298

Outsourcing
serviceexpenses

61,35429,208

Utilities
expenses

56,97730,652

Repairexpenses

31,447

4,465

Land rent––

Taxes and dues

81,08838,051

Various costs
required

4,125

1,920

(C) NOI (=A–B)

186,942

177,949

628,066

169,956

294,039(D) Depreciation
andamortization

49,97250,515

206,120

89,871

87,327(E) Operating
income fromproperty
leasing (=C–D)

136,970

127,434

421,945

80,085

206,712- 41 -

Property no.

L-11

L-12

L-13

L-14

L-15

Name

MFLP Hiratsuka

MFLP Tsukuba

MFLP Inazawa

MFLP Atsugi II

MFLP Fukuoka I

Management period

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

Number of days ofmanagement

181 days

181 days

181 days

181 days

181 days

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)(C) NOI (=A–B)

176,737

252,728

414,724

308,804

125,056(D) Depreciation
andamortization

51,401

94,980183,299

114,659

56,475(E) Operating
income fromproperty
leasing (=C–D)

125,336

157,747

231,424

194,144

68,580(A) Property
leasingbusiness
revenues
Real estateleasingbusiness
revenues
Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses
Outsourcing
serviceexpensesUtilities
expenses
Repairexpenses
Land rent
Taxes and dues
Various costs
required- 42 -

Property no.

L-16

L-17

L-18

L-19

L-20

Name

MFLP Prologis
Park Kawagoe

MFLP Hiroshima I

MFLP Ibaraki

MFLP Kawaguchi I

MFLP Yachiyo
Katsutadai

Management period

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

Number of days ofmanagement

181 days

181 days

181 days

181 days

181 days

Not disclosed

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

434,394

511,183

1,835,295

Real estateleasingbusiness
revenues

407,178

479,351

1,709,557

Other revenues
related toproperty
leasing

27,216

31,831

125,737

99,446132,267

472,157

Outsourcing
serviceexpenses

26,281

41,442

98,891

Utilities
expenses

24,31924,43999,203

Repairexpenses

865

3,397

11,519Land rent–––

Taxes and dues

46,431

59,921

163,881

Various costs
required

1,549

3,066

98,660(C) NOI (=A–B)

334,948

378,915

1,363,138

398,215

409,964(D) Depreciation
andamortization

107,353

133,191

426,935

93,830151,702(E) Operating
income fromproperty
leasing (=C–D)

227,594

245,724

936,203304,384

258,262(B) Property
leasingbusiness
expenses- 43 -

Property no.

L-21

L-22

L-23

I-1

I-2

Name

MFLP Osaka I

MFLP Hiratsuka II

MFLP Osaka
KatanoMFIP Inzai II

MFIP Inzai II

Management period

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

From February 1,
2023 to July 31,
2023

Number of days ofmanagement

181 days

181 days

181 days

181 days

181 days

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)(C) NOI (=A–B)

277,119

290,816453,264

306,732

362,486(D) Depreciation
andamortization

91,43486,889272,080

96,468130,486(E) Operating
income fromproperty
leasing (=C–D)

185,684

203,927

181,184

210,263

231,999(A) Property
leasingbusiness
revenues
Real estateleasingbusiness
revenues
Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses
Outsourcing
serviceexpensesUtilities
expenses
Repairexpenses
Land rent
Taxes and dues
Various costs
required- 44 -

Property no.
Name
Management period

Total

Number of days ofmanagement(A) Property
leasingbusiness
revenues
Real estateleasingbusiness
revenues
Other revenues
related toproperty
leasing(B) Property
leasingbusiness
expenses

11,478,602

10,819,676

658,926

2,668,014

Outsourcing
serviceexpenses

707,206

Utilities
expenses

549,174

Repairexpenses

144,271

Land rent

53,978

Taxes and dues

1,062,868

Various costs
required

150,514(C) NOI (=A–B)

8,810,588(D) Depreciation
andamortization

2,984,625(E) Operating
income fromproperty
leasing (=C–D)

5,825,963

Note:
Not disclosed, because consent has not been obtained from the tenants.

- 45 -

Disclaimer
This document is a translation of the original Japanese document (“Kessan-Tanshin”) of Mitsui
Fudosan Logistics Park Inc. The Kessan-Tanshin of Mitsui Fudosan Logistics Park Inc. has been
prepared in accordance with generally accepted accounting principles in Japan (Japanese GAAP) andJapanese laws, which may materially differ in certain respects from generally accepted accounting
principles in other jurisdictions.
Figures indicated in units of one million yen have been rounded down to eliminate amounts of lessthan one million yen. Please note that this English translation of the original Japanese document was
prepared solely for the convenience of and reference by overseas investors, and is not intended to be
an offer for the sale, or solicitation of an offer to make a purchase, of any securities of Mitsui Fudosan
Logistics Park Inc.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be
precisely identical to the concept of the equivalent Japanese terms. With respect to any and all terms
herein, including without limitation, financial statements, if there exist any discrepancies in themeaning or interpretation thereof between the original Japanese document and English statements
contained herein, the original Japanese document will always govern the meaning and interpretation.
None of Mitsui Fudosan Logistics Park Inc., Mitsui Fudosan Logistics REIT Management Co., Ltd.
or any of their respective directors, officers, employees, partners, unitholders/shareholders, agents oraffiliates will be responsible or liable for the completeness, appropriateness or accuracy of English
translations. No person has been authorized to give any information or make any representations otherthan as contained in this document in relation to the matters set out in this document, and if given or
made, such information or representation must not be relied upon as having been authorized by Mitsui
Fudosan Logistics Park Inc., Mitsui Fudosan Logistics REIT Management Co., Ltd. or any of theirrespective directors, officers, employees, partners, unitholders/shareholders, agents or affiliates.
Many provisions of this document contain forward-looking statements and information. We base thesestatements on our beliefs as well as our assumptions based solely on certain limited information
currently available to us.
The forward-looking statements in this document are based on assumptions about the business of
Mitsui Fudosan Logistics Park Inc. and are subject to various risks and uncertainties. Please be awarethat actual financial conditions, operating results and businesses may differ materially from suchforward-looking statements. Mitsui Fudosan Logistics Park Inc. does not intend and disclaims any
duty or obligation to update or revise any forward-looking statements contained in this document toreflect new information, future events or otherwise. Investors should not place undue reliance on theforward-looking statements contained in this document.
Duplication or reproduction of any information contained in this document without the prior consent
of Mitsui Fudosan Logistics Park Inc. is strictly prohibited.

- 46 -