Summary of Financial Results for the Fiscal Period Ended July 31, 2018 (REIT)
REIT Securities Issuer
Securities CodeRepresentative

Mitsui Fudosan Logistics Park Inc.
3471
Masayuki Isobe, Executive Director

Stock Exchange Listing
WebsiteAsset Management Company
Representative
Inquiries

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

Scheduled date of submission of securities report:
Scheduled date of commencement of distribution payout:

October 25, 2018
October 19, 2018

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

Yes
Yes (for analysts and institutional investors)

September 14, 2018
Tokyo Stock Exchange
http://www.mflp-r.co.jp/en/(Amounts less than ¥1 million have been rounded down)
1. Financial Results for the Fiscal Period Ended July 31, 2018 (February 1, 2018 to July 31, 2018)(1) Results of Operations(% figures denote rate of period-on-period change)
Operating revenue
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Fiscal period ended
3,148
19.7
1,498
20.9
1,445
21.9
1,444
21.9
July 31, 2018
Fiscal period ended
2,629
3.2
1,239
4.9
1,185
2.8
1,184
2.8
January 31, 2018
Net income
per unit
Fiscal period ended
July 31, 2018
Fiscal period ended
January 31, 2018

Yen

Return on unitholders'equity%Ratio of ordinary income
to total assets%

Ratio of ordinary income
to operating revenues
%

5,499

2.2

1.6

45.9

5,287

2.0

1.5

45.1

(2) Distributions
Distributions
per unit(excludingdistributions
in excess ofearnings)
YenTotal amount ofdistributions(excludingdistributions
in excess ofearnings)
Millions of yen

Distributions
in excess ofearnings
per unit

Total amount ofdistributions
in excess ofearnings

Yen

Millions of yen

Distributions
per unit(includingdistributions
in excess ofearnings)
Yen

Total amount ofdistributions(includingdistributions
in excess ofearnings)
Millions of yen

Ratio ofPayout
distributions
ratio
to net assets%%

Fiscal period ended
5,497
1,444
335
88
5,832
1,532
100.0
2.0
July 31, 2018
Fiscal period ended
5,288
1,184275
61
5,563
1,246
100.02.0January 31, 2018
Notes:
1. The total amount of distributions in excess of earnings for the fiscal period ended July 31, 2018 and the fiscal period ended January
31, 2018 is entirely return of capital applicable to distribution reducing unitholders’ capital for tax purposes.
2. The ratio of decreasing surplus attributable to distributions in excess of earnings (return of capital applicable to distribution reducing
unitholders’ capital for tax purposes) for the fiscal period ended July 31, 2018 and the fiscal period ended January 31, 2018 are
0.002 and 0.001, respectively. This calculation is based on Article 23, Paragraph 1, Item 4 of the Order for Enforcement of theCorporation Tax Act.
(3) Financial Position
Total assets
Millions of yen
Fiscal period ended
July 31, 2018
Fiscal period ended
January 31, 2018

Ratio of unitholders’ equity
to total assets
Millions of yen%

Net assets

Net assets per unit
Yen

100,250

73,403

73.2

279,340

79,86859,434

74.4

265,334–1–(4) Cash Flows
Cash flows fromoperating activities
Millions of yen

Cash flows frominvesting activities
Millions of yen

Cash flows fromfinancing activities
Millions of yen

Cash andcash equivalents
Millions of yen

1,630(19,413)

18,524

2,757

1,628

(3,197)

(197)

2,014

Fiscal period ended
July 31, 2018
Fiscal period ended
January 31, 2018

2. Forecast for the Fiscal Period Ending January 31, 2019 (August 1, 2018 to January 31, 2019)(% figures denote rate of period-on-period change)

Fiscal period ending
January 31, 2019

Net income

Distributions
per unit(excluding
distributions
in excess ofearnings)

Distributions
in excess ofearnings
per unit

Distributions
per unit(includingdistributions
in excess ofearnings)Operating revenue

Operating income

Ordinary income

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

YenYenYen

3,262

3.6

1,508

0.7

1,467

1.5

1,466

1.5

5,580

383

5,963

(Reference) Expected net income per unit (Expected net income per unit/Expected number of investment units at the end of the fiscalperiod) for the fiscal period ending January 31, 2019: ¥5,580• 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, 2018262,774 units

Fiscal period ended January 31, 2018

224,000 units

Fiscal period ended January 31, 2018

0 units(ii) Number of treasury units at the end of the fiscal period
Fiscal period ended July 31, 2018

0 units• The implementation Status of Statutory Audit
At the time of disclosure of this financial report, the audit procedures for the financial statements pursuant to the Financial
Instruments and Exchange Act have not been completed.
• Appropriate use of the forecast of financial results; other special items
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 operatingperformance, 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, 2019 (August 1, 2018 to January 31, 2019)” described on page 3.

– 2 –Forecast Assumptions for the Fiscal Period Ending January 31, 2019 (August 1, 2018 to January 31, 2019)
Item

Assumptions

Calculation
period・The fiscal period ending January 31, 2019 (the fifth fiscal period): August 1, 2018 to January 31, 2019(184 days)

Investment
assets・It is assumed that (i) the total number of the properties assets held by MFLP-REIT will be 13 (“AssetsCurrently Held”), which includes the trust beneficiary interests in real estate held by MFLP-REIT as of July
31, 2018 (total of 12 properties), with the acquisition on December 3, 2018 of the trust beneficiary interests
in real estate related to MFLP Tsukuba (60% of quasi co-ownership interest of the trust beneficiary interests
in real estate) (“Asset to be Acquired”); (ii) the abovementioned assets will continue to be held as there will
be no disposition, etc. of the assets held by MFLP-REIT until the end of the fiscal period ending January
31, 2019 and (iii) there will be no acquisition of new properties other than the Asset to be Acquired.
However, the actual number of investment assets may change due to the acquisition of new properties otherthan the Asset to be Acquired or the disposition, etc. of assets held by MFLP-REIT.

Operatingrevenue・Leasing business revenues related to the Assets Currently Held are calculated based on lease contracts
already executed that are in effect as of today and other factors, including tenant movements and markettrends.
・Leasing business revenues related to the Asset to be Acquired are calculated by taking into account lease
contracts already executed and other factors, including tenant movements and market trends, based on theinformation provided by the current owner.
・Calculations assume that there will be no gain or loss on sale of real estate.

Operatingexpenses・Leasing business expenses, which are major operating expenses, other than depreciation have been
calculated by taking into consideration changes to expenses, with the historical results used as a benchmark
for the Assets Currently Held and information provided by the current owner used as a benchmark for theAsset to be Acquired.
・Depreciation is calculated using the straight-line method. Depreciation is expected to be ¥772 million for
the fiscal period ending January 31, 2019.
・Leasing business income (excluding gain on sale of real estate) after the deduction of leasing business
expenses (including depreciation) is expected to be ¥1,921 million for the fiscal period ending January 31,
2019.
・In general, property taxes, city planning taxes and other charges levied on real estate transactions are settled
at the time of acquisition by prorating for the period held with the present owner. However, as MFLP-REIT
includes an amount equivalent to the settled amount in the acquisitions costs for the property, the amount is
not recorded as expenses during the operating period that includes the day on which the property is acquired.
As such, expenses relating to property taxes, city planning taxes and other charges for the Asset to beAcquired will be booked from the fiscal period ending July 31, 2019.
・Repair expenses for buildings are expected to be ¥27 million for the fiscal period ending January 31, 2019
based on the medium 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-toforecast factors, the actual results may differ significantly from the forecast amount.

Non-operating
expenses・Interest expenses and other expenses related to borrowings are expected to be ¥41 million for the fiscal
period ending January 31, 2019.

Interest-bearing
debt

・It is assumed that total interest-bearing debt will be ¥28,000 million at the end of the fiscal period ending
January 31, 2019.
・The loan to value (LTV) ratio is expected to be 27.2% at the end of the fiscal period ending January 31,
2019. The following formula is used to calculate LTV ratio.
LTV ratio = Total interest-bearing debt ÷ Total assets × 100

Investment
units

・It is assumed that the total number of investment units issued and outstanding is the 262,774 units as of thedate of this document and there will be no change in the number of investment units by issuing newinvestment units, etc. through to the end of the fiscal period ending January 31, 2019.
・Distributions per unit (excluding distributions in excess of earnings) and distributions in excess of earnings
per unit are calculated based on the 262,774 units of expected total number of investment units issued andoutstanding at the end of the fiscal periods ending January 31, 2019.
–3–

Item

Assumptions

Distributions perunit(excludingdistributions inexcess of earnings)

・Distributions per unit (excluding distributions in excess of earnings) is calculated in accordance withMFLP-REIT’s policy on distributions of cash described in its Articles of Incorporation and assuming thatthe entire amount of earnings will be distributed.
・However, distributions per unit (excluding distributions in excess of earnings) may change for a variety ofreasons, including changes in MFLP-REIT’s investment assets, changes in leasing revenues due to tenant
movements, etc., and/or the occurrence of unforeseen repairs and maintenance, etc.

Distributions inexcess of earnings
per unit

・Distributions in excess of earnings per unit is calculated in accordance with MFLP-REIT’s policy on
distributions of cash described in its Articles of Incorporation and the asset management guidelines for theasset management company. Total distributions in excess of earnings are expected to be ¥100 million for
the fiscal period ending January 31, 2019.
・MFLP-REIT emphasizes cash flow generated by asset management, such as the leasing of investment
assets, excluding gain or loss on sale of real estate. For the time being, it is MFLP-REIT’s policy tocalculate the amount distributable, including distributions in excess of earnings, to be around 70% of FFO
up to a maximum of 75% of FFO and continually distribute the amount of this that exceeds the amount ofdistributions of earnings, within a scope where financial stability can be secured and owned assets can bemaintained for a long duration of time, as distributions in excess of earnings determined based on acomprehensive judgment of the situation (the “continuous distributions in excess of earnings”). However,the continuous distributions in excess of earnings may be terminated given the economic environment,trends in the real estate market or leasing market, the situation surrounding owned assets, the percentage ofdistributions in excess of earnings accounted for in depreciation during MFLP-REIT’s applicable operating
period(*1), and the situation 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 to temporarily decline by acertain degree due to such factors as the procurement of funds through the issuance of new investment
units, etc., a temporary distributions in excess of earnings may be executed in order to standardize theamount 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 of time, in cases
where the above distributions of cash is executed, and where the amount equal to the equivalent ofdepreciation for the applicable operating period minus the amount of the distributions in excess of earnings
for the applicable operating period falls below the standard amount of capital for building maintenance (*2),
the distributions in excess of earnings will be decreased by a maximum amount within which thedistribution amount does not fall below the total equivalent of the distributions of earnings, and this maylead to cases where distributions in excess of earnings will not be executed.
・In addition, from the perspective of continuing stable financial management, distributions in excess ofearnings will not be executed in cases where the appraisal LTV ratio (*3) exceeds 60% in the event that theabove distributions of cash is executed.
(*1)
The maximum will be an amount equivalent to 60% of the depreciation for the applicable operating
period.
(*2)“Standard amount of capital for building maintenance” refers to the “amount equivalent to the capital
expenditure amount noted in the Building Condition Evaluation Report averaged over 12 years,” fromwhich an amount representing six months of capital expenditure is determined and then multiplied bytwo.
(*3)
Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value
after depreciation of owned real estate on the applicable accounts settlement date + Appraisal value of
owned real estate on the applicable accounts settlement date

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 estatemarket conditions, etc.

– 4 –