8th Fiscal Period(Fiscal Period Ended July 31, 2020)

Investor Presentation Material
September 16, 2020

Mitsui Fudosan Logistics Park Inc.
(MFLP-REIT)
Securities Code3471

Table of Contents
0. Impact of COVID-19
0-1. Impact of COVID-19
0-2. Outlook of Logistics Market in Considerationof the Impact of COVID-19

4. Management Status of MFLP-REIT
……

P3

……

P4

1. Basic Strategy of MFLP-REIT (1)1-1. Trajectory of Growth of Mitsui Fudosan’s Logistics
Facilities Business and 4th Follow-On Offering……

P7

4-1. Our Portfolio…… P194-2-1. Location
4-2-2. Quality
4-2-3. Balance…… P21…… P23…… P244-3. External Growth…… P254-4. Internal Growth…… P274-5. Financial Strategy…… P294-6. Initiatives for ESG…… P31

2. Basic Strategy of MFLP-REIT (2)5. Market Overview

2-1. Four Roadmaps to Stable Growth andTrajectory of Growth5-1. Market Overview…… P102-2. Steady Implementation of Four Roadmaps…… P11

6. Appendix• Statement of Income and Balance Sheet

3. Financial Summary…… P36…… P42• Individual Property Income Statement for 8th Fiscal Period …… P43

3-1. Financial Highlights…… P14• Appraisal Summary for the End of 8th Fiscal Period…… P443-2. 8th Fiscal Period (Ended July 2020) P/L…… P15• Investment Unit Price Trends/Status of Unitholders…… P453-3. 9th Fiscal Period (Ending January 2021) Earnings
Forecast…… P16• Mitsui Fudosan’s Major Development/Operation Track
Record…… P463-4. (Reference) Effects of the 4th Follow-On Offering…… P17

Notes on Matters Stated in This Document…… P47

Disclaimer…… P491

0. Impact of COVID-1920-1. Impact of COVID-19
There were 0 cases of non-payment of rent, rent reduction, postponement of payment, or tenants moving out
due to COVID-19. Continuation of stable cash flow based on long-term lease agreements is expected.
Supply-Demand Balance and Vacancy Rate in
the Greater Tokyo Area

Status of Occupancy Rate and Outlook of Cash Flow at MFLP-REIT
Forecast

thousand m2

1,200

18%

100%

900

12%

600
6%

300

100%

100%

100%

100%

100%

100%

100%

Feb. 28,
2020

Mar. 31,2020

Apr. 30,
2020

May 31,2020

Jun. 30,
2020

Jul. 31,2020

Jan. 31,
Jul. 31,
2021
2021(Forecast) (Forecast)

99.1％
95%
90%

0.4%
0.2%

0

100%

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

July-

October-January-

April-

July-

October-January-

April-

September December

March

June

September December

March

June

2019

2018

0%

85%
80%

2020

Jan. 31,2020

Supply-Demand Balance and Vacancy Rate in
the Greater Osaka Area
thousand m2

750

18%

500

12%

250

6%

0

3.5%
2.1%
Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

July-

October-January-

April-

July-

October-January-

April-

September December

March

June

September December

March

June

2018
New
supply2019
New
demand0%

There were 0 cases of nonpayment of rent, rent reduction,
postponement of payment, or
tenants moving out.
Continuation of
stable cash flow
Discussion on contract renewal withtenants is progressing smoothly.

2020
Vacancyrate

Vacancy rate
(Completion over 1 year)*Source: CBRE K.K. (including forecast figures) *As of June 30, 2020
*The survey is of rental logistics facilities that are held by real estate investment companies, real estate development
companies, etc. and have total floor area of 5,000 m2 or more.

30-2. Outlook of Logistics Market in Consideration of the Impact
of COVID-19
Demand for logistics facilities remains high even amid COVID-19, and solid demand is expected.
Medium- and long-term impact of COVID-19(questionnaire survey)

Breakdown of projects such as new establishment and relocationof logistics facilities (questionnaire survey)
Area

Accumulation of stock in preparation for
unexpected circumstances

No. of bases
Automation of work inside
warehouses accelerates(reduce the degree of
dependence on human)
Increase in demand for last one mile
Unchanged

Increase

Decrease

Under consideration

Source: CBRE K.K. “2020 Occupier Survey on the Use of Logistics Facilities”
Survey period: March 4, 2020, to March 19, 2020. Valid responses received from 336 firms. (breakdown: 242 logistics firms and 94 end users)

Increase in demand for refrigerated
warehouses handling foods andperishable foods

Most recent status of online shopping
Online Shopping by Number ofHouseholds

Online Shopping by Spending

Acceleration of utilization of
unmanned delivery robots, etc.
(avoid face-to-face delivery)(yen)
18,00017,000Other

No change in particular

Logistics firm

End user

52%

2019

50%

2020

16,00048%

15,00046%

14,00044%

13,00042%

12,0002020

40%
January February March

Source: CBRE K.K. “2020 Occupier Survey on the Use of Logistics Facilities”
Survey period: March 4, 2020, to March 19, 2020. Valid responses received from 336 firms. (breakdown: 242 logistics firms and 94 end users)

2019

April

May

June

July

January February March

April

May

June

July

Source: Ministry of Internal Affairs and Communications “Survey of Household Economy [Monthly Disbursements per
Household Using the Internet] by Nation, District and City Class” (as of September 8, 2020)

4

MEMO

5

1. Basic Strategy of MFLP-REIT (1)
MFLP-REIT aims to maximize unitholder value through a strategic partnership with
Mitsui Fudosan, a major property developer that leverages the comprehensive
strengths of its corporate group to create value in its logistics facilities61-1. Trajectory of Growth of Mitsui Fudosan’s Logistics
Facilities Business and 4th Follow-On Offering [1 of 2]
Ability to secure development sites through its corporate real estate (CRE) strategy
Proposal of
CRE strategies

Various CRE needs of client firms
Re-establishment of corporate logistics

Trimming down of balance sheet(Off-balancing)Utilization of idle land

Sale of real estate, etc.

Global development(Establishment of overseas sites)

Development of corporate infrastructure

Develop high-quality properties in prime locations
Cumulative total investment size as of November 2019

Image of growth of properties (to be) developed/operated *by Mitsui Fudosan

40 facilities 570.0 billion yen*

Cumulative total investment size as of May 2018

32 facilities 480.0 billion yen*
MFLP-REIT
IPO
Transition to“Logistics Properties
Business Division”
at Mitsui Fudosan
Mitsui Fudosan
established the
Logistics Properties
Department

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

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

Fiscal 2019

Fiscal 2020
(planned)

Fiscal 2021 or after(planned)7

1-1. Trajectory of Growth of Mitsui Fudosan’s Logistics
Facilities Business and 4th Follow-On Offering [2 of 2]
Solutions-based asset management

Leasing capability leveraging client network

Challenges facing logistics firms
End user

Fully leverage the Mitsui Fudosan Group’s
broad client network

Improving the efficiency ofoperations

MFLP-REIT

Addressing BCP, etc.

Office building businessApprox. 3,000 firms*

Retail facility businessApprox. 2,400 firms*

Logistics firm
(3PL operator, etc.)

Strong relationships withleading 3PL operators

Labor shortage

Evolution ofsolutions-based
asset management* Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year ended March 31, 2020

Anticipation of futurerises in delivery costs
Responding to automation

Operated stably as leasing progresses
Construction completed: 594,000 m2

Properties defined in “Right of firstlook and preferential negotiationrights agreement”*

11 properties 1,100,000

MFLP Hino (75%)

MFLP Tosu

MFLP-REIT’s asset size

20 properties 1,230,000 m
282.4 billion yen
BalanceNEW

NEW

MFLP Tokorozawa

MFLP Ichikawa
Shiohama II (60%)

NEW

MFLP Yokohama
KohokuMFLP Yachiyo
Katsutadai

MFLP Funabashi III

MFLP Osaka Katano

Properties to be acquired in the 9th FP(After acquisition of properties to be acquiredin the 9th FP)

Quality

MFLP Osaka I

m2
MFLP Hiratsuka II

Location

MFLP Funabashi II

Construction not completed: 509,000 m2

2

4th follow-on
offering

Rampway

Slope

101,000units(50.5 billion yen)
Number of investment
units issued andoutstanding after followon offering (planned)

542,000 units

Acquisition under
exclusive negotiation *Data center

under
construction

Number of newly issued
investment units (planned)＊

MFLP Ibaraki

MFLP Kawaguchi I

Planned acquisition
amount77.4 billion yen

Further
expansion ofproperties
defined in“Right of firstlook andpreferential
negotiationrightsagreement”

Continuous
external
growthMFIP Inzai II
Preliminary value indicatedin the preliminary
evaluation report*

15.2 billion yen* For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement”], [New issuance], [Preliminary value indicated in the preliminary evaluation report], and[Acquisition under exclusive negotiation] in the Notes on Matters Stated in this Document on p. 47-48.

8

2. Basic Strategy of MFLP-REIT (2)92-1. Four Roadmaps to Stable Growth and Trajectory of GrowthFiscal 2016 - Fiscal 2019

Fiscal 2020
8th fiscal
period

1st – 7th fiscal periods
1st follow-on offering
January 2018

Asset size

Acquisition withborrowed funds, etc.

Acquisition withborrowed funds, etc.

August 20179 properties
75.5 billion
75.5 billion yen
yen

10 properties
78.7
billion yen

2nd follow-on offering
January 2019

December 2018

3rd follow-on
offering
January 2020

September 202018 properties

16 properties

24.5%

103.5

billion yen

billion yen

156.7
billion yen

205.0

282.4

billion yen

billion yen

5,198
yen

Aim to acquire properties in acontinuous manner, focused onhigh-quality properties covered
by “Right of first look andpreferential negotiation rights
agreement”

300.0

Aim forfurther
expansionof asset size

billion yen
Target asset
size

MFLP Ibaraki
MFLP Kawaguchi I

End of 2nd
fiscal period

21.6%

2nd fiscal
period5,346
yen

End of 3rd
fiscal period

End of 4th
fiscal period

End of 5th
fiscal period

22.5%

23.9%

26.8%

29.1%

27.3%

6th fiscal
period7th fiscal
period

6,496

6,584

3rd fiscal
period5,563
yen

4th fiscal
period5,832
yen

5th fiscal
period6,105yenMarket cap*
Trends of
NAV per unit *286,378 yen
273,318 yen
End of 1st
fiscal period
76.1

End of 2nd
fiscal period
71.5

billion yen

billion yen

End of 7th
fiscal period

End of 6th
fiscal period

Distribution per unit (DPU) *1st fiscal
period20 properties

12 properties 13 properties
98.3

11th fiscal period and after

10th fiscal period

4th follow-on offering

LTV*
End of 1st
fiscal period

9th fiscal
periodFiscal 2021 and after

yen

yen

326,618 yen
305,914 yen

314,345 yen

End of 6th
fiscal period

292,424 yen
End of 3rd
fiscal period
84.4
billion yen

318,471 yen

End of 4th
fiscal period
84.7
billion yen

End of 5th
fiscal period
90.7

149.1
billion yen

End of 7th
fiscal period

198.9
billion yen

End of 8th
fiscal period

End of 9th FP(forecast)(July 31, 2020) (January 31, 2021)

30.2%

31.4％

8th fiscal
period

9th FP(forecast)

6,977

7,217

yen

yen

Fund procurement and LTV
management optimal for the
expansion of acquired asset size

End of 10th FP(forecast)(July 31, 2021)

40% to 50 %
range

30.4%

Medium- to longterm stabilized
LTV level

10th FP(forecast)Continuous DPU growththrough leverage effects, etc.

7,525
yen

Growthpotential

380,644 yen
352,401 yen After the 4th
follow-on
End of 8th
fiscal period offering (estimate)

254.4

287.2

billion yen

billion yen

Expansion of market cap
through public offerings, etc.

billion yen* For further details, please refer to [Four Roadmaps to Stable Growth and Trajectory of Growth] in the Notes on Matters Stated in this Document on p. 47-48.

10

2-2. Steady Implementation of Four Roadmaps [1 of 2]
Expansion of Asset Size

Improvement of portfolio quality and stability

End of (July 31, 2020)
8th fiscal period

Properties to be acquiredin the 9th FP

After acquisition of properties
to be acquired in the 9th FP(Reference)
Acquisition under exclusive
negotiation*

No. of properties/Total floor area *18 properties / 950,000 m2

2 properties / 280,000 m2

20 properties / 1,230,000 m2

MFIP Inzai II / 30,000 m2

Asset size

205.0 billion yen

77.4 billion yen

282.4 billion yen

Adjusted forecast NOI/
yield after depreciation*

5.2% / 3.5%

4.4% / 3.1%

5.0% / 3.4%

Appraisal NOI yield( / acquisition price)*

4.9%

4.2%

4.7%

Appraisal NOI / Appraisal value*

4.6%

4.1%

4.5%

Average building age*

4.9 years

2.5 years

4.4 years

Top 5 property ratio*

41.2%

47.0%

Top 5 tenant ratio (logistics facilities only)*

33.2%

Further improvement ofstability

15.2 billion yen
Preliminary value indicated in the
preliminary evaluation report.*

MFLP-REIT has signed a
Memorandum ofUnderstanding with Mitsui
Fudosan for the acquisitionof MFIP Inzai II (datacenter) in March 2021

28.3%

LTV management Expansion of acquisition capacity
End of (January 31, 2020)
7th fiscal period

End of (July 31, 2020)
8th fiscal period

End of (January 31, 2021)
9th fiscal period(Forecast)End of (July 31, 2021)
10th fiscal period(Forecast)

LTV*

Acquisition capacity*(with LTV at 50%)

(Reference)

27.3%

30.2%

31.4%

30.4%

71.0 billion yen

82.0 billion yen

105.0 billion yen

111.0 billion yen* For further details, please refer to [Steady Implementation of Four Roadmaps], [Preliminary value indicated in the preliminary evaluation report], and [Acquisition under exclusive negotiation] in theNotes on Matters Stated in this Document on p. 47-48.

(Image when acquiring
MFIP Inzai II)

DPU growthpotential112-2. Steady Implementation of Four Roadmaps [2 of 2]
Aim for upside byrealizing the acquisitionof MFIP Inzai II

Continuous DPU* Growth
＋7.9%
＋9.6%

DPU (yen)

7,525( ) EPU (yen)7,217

Property acquisition7,200
at a reasonable price

6,977

6,700

6,584

6,496

7,217

6,890

(6,622)

6,541

6,200
5,832

New issuance of
5,700
investment units(equity)

5,563
5,346

(6,447)(6,200)5,963(5,905)(5,811)(5,783)

5,745(5,497)

5,493

5,198

5,200
4,700

6,415

6,105

(5,288)(5,956)
Covering
the dilution
associated with the 4th
follow-on offering with
one-off distributions inexcess of earnings

5,190 (5,142)
4,923 (4,955)

LTV management 4,200(debt)

3,700 Forecast

ActualForecast*2 Actual

Forecast*3 Actual

Forecast*4 Actual

Forecast*5 Actual

Forecast*6 Actual

Forecast*7 Actual

Forecast*8 Actual Forecast*8 Forecast*9

Forecast*9

FP ended Jan. 2017
(1st FP)*1FP ended Jul. 2017
(2nd FP)FP ended Jan. 2018
(3rd FP)FP ended Jul. 2018
(4th FP)FP ended Jan. 2019
(5th FP)FP ended Jul. 2019
(6th FP)FP ended Jan. 2020
(7th FP)FP ended Jul. 2020 FP ending Jan. 2021
(8th FP)(9th FP)FP ending Jul. 2021
(10th FP) **Assuming that
MFIP Inzai II is notexpected to be acquired*1 Announced on Sep. 13, 2016 *2 Announced on Mar. 16, 2017 *3 Announced on Sep. 13, 2017 *4 Announced on Mar. 15, 2018 *5 Announced on Sep. 14, 2018
*6 Announced on Mar. 15, 2019 *7 Announced on Sep. 13, 2019 *8 Announced on Mar. 13, 2020 *9 Announced on Sep. 16, 2020

Expansion of Market Capitalization

Enhancement of stability of investment unit price and liquidity

End of (January 31, 2020) 7th fiscal period

End of (July 31, 2020) 8th fiscal period

After the 4th follow-on offering (estimate)

Market cap*

198.9 billion yen

254.4 billion yen

287.2 billion yen

NAV per unit*

326,618 yen

352,401 yen

380,644 yen*After acquisition of properties to be acquired in the 9th FP* For further details, please refer to [Steady Implementation of Four Roadmaps] in the Notes on Matters Stated in this Document on p. 47-48.

12

3. Financial Summary(8th fiscal period: from February 1, 2020, to July 31, 2020)13

3-1. Financial Highlights
End of 8th fiscal
period (Actual)

Asset size

18 properties(total amount ofacquisition price)

Asset

Appraisal value*
Unrealized gain*

Debt

205.0

billion yen

18 properties

219.2
19.4

billion yen

billion yen

After acquisition ofproperties to beacquired in the 9th FP

Appraisal value (billion yen)
20 properties
297.0
2,970

20 properties

282.4

18 properties

billion yen

297.0
19.8

13 properties
billion yen

billion yen

End of 8th fiscal
period (Actual)

End of 9th fiscal
period (Forecast)

Balance ofinterest-bearingdebt

62.9 billion yen

88.9 billion yen

LTV*

30.2%

31.4%

2,192
219.2

16 properties 16 properties

20 properties

1,676
167.6

1,697
169.7

End of 6th
fiscal period

End of 7th
fiscal period

1,121
112.1

End of 5th
fiscal period

End of 8th
fiscal period

After acquisition ofproperties to beacquiredin the 9th FP

LTV

29.1%
26.8%

End of 5th
fiscal period

End of 6th
fiscal period

30.2%

31.4%

30.4%

27.3%

End of 7th
fiscal period

End of 8th
fiscal period

End of 9th
fiscal period(Forecast)End of 10th
fiscal period(Forecast)Distribution per unit (yen)
8th fiscal period(Actual)Distribution
per unit*

EquityNAV per unit*

9th fiscal period(Forecast)

6,977 yen

7,217 yen

End of 8th fiscal
period (Actual)

After acquisition ofproperties to beacquired in the 9th FP

352,401 yen

380,644 yen* For further details, please refer to [Financial Highlights] in the Notes on Matters Stated in this Document on p. 47-48.

7,502
7,525
7,217
6,977
6,496

6,584

End of 6th
fiscal period

End of 7th
fiscal period

6,105

End of 5th
fiscal period

End of 8th
fiscal period

End of 9th
fiscal period(Forecast)End of 10th
fiscal period(Forecast)14

3-2. 8th Fiscal Period (Ended July 2020) P/L(Unit: million yen)

7th period
Actual(a)

8th period
Forecast(Mar. 13, 2020)

8th period
Difference
Actual(b)-(a)(b)

Operating revenue

5,064

6,381

6,363

1,299

Operating expenses

2,748

3,600

3,482

734

Of which, depreciation(those related to properties only)

Operating income
Non-operating income

1,326

1,714

1,661

334

2,315

2,780

2,881

565

26

33

40

14

Main breakdown of difference
Operating revenue
Increase due to properties acquired in the 8th FP(MFLP Sakai (80%), MFLP Prologis Park Kawagoe (50%), MFLP Hiroshima I)+1,277

Increase in photovoltaic power generation facilities rent revenue(excluding properties acquired in the 8th FP)+35

Decrease in other operating revenue-12

Operating expenses
Increase due to properties acquired in the 8th FP(MFLP Sakai (80%), MFLP Prologis Park Kawagoe (50%), MFLP Hiroshima I)

Non-operating expenses
Ordinary income

103

186

186

82

2,238

2,627

2,735

496

Expensing of fixed asset tax and city planning tax for properties
acquired in the 6th FP

2,237

2,626

2,734

496

+158

(MFLP Hino (10%), Tsukuba (40%), Inazawa, Atsugi II, Fukuoka I, MFIP Inzai (80%))+101

Increase in asset management fee

Profit (Net income)

+510

-36

Decrease in other operating expenses

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

6,584

6,890

6,977

393

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

5,905

5,956

6,200

295

Of which,
Distribution in excess of earnings per unit (yen)679

Distribution in excess of earnings
expressed as a percentage of depreciation

Average occupancy rate during the period*1

19.4%

934

24.0%

777

20.6%

98

Increase in insurance income+14

Non-operating expenses
Interest expenses+22

Offering costs associated with issuance of investment units+27

Amortization of investment unit issuance expenses+14

Increase in disaster restoration expenses+15<Reference>
Formula for distribution per unit based on FFO*

99.4%

99.7%

99.9%

-

* For further details, please refer to [Method of calculation of cash distribution based on FFO] in the Notes on Matters Stated in this Document on p. 47-48.
*1 The simple average of the occupancy rates as of the end of each month in each fiscal period is indicated.

FFO＝

Profit (Net income)＋Depreciation, etc.

…①

Source of funds for
distribution

＝

① FFO

×

70%

…②

Distribution per unit＝

②Source of funds for
distribution÷

Number of investment
units issued andoutstanding15

3-3. 9th Fiscal Period (Ending January 2021) Earnings Forecast(Unit: million yen)

Operating revenue
Operating expenses

8th fiscal 9th fiscal
periodperiodDifference(Actual) (Forecast)(b)-(a)
(b)
(a)
6,363
3,482

8,115
4,385

1,751
902

<Reference>
10th period
Forecast

Main breakdown of difference
Operating revenue

8,977

Increase due to properties to be acquired in the 9th FP +1,446(MFLP Ibaraki, MFLP Kawaguchi I)

Increase due to full-period operation of properties
acquired in the 8th FP+283(MFLP Sakai (80%), MFLP Prologis Park Kawagoe (50%), MFLP Hiroshima I)

Of which, depreciation(those related to properties only)

Operating income

1,661

2,061

400

-38

Increase in other operating revenue

+59

3,729

848

Non-operating income

40

-

-40

Increase due to properties to be acquired in the 9th FP

Non-operating expenses

186

234

47

Increase due to full-period operation of properties
acquired in the 8th FP

Ordinary income

2,735

3,495

760

Profit (Net income)

2,734

3,494

760

*2

2,237

Decrease in photovoltaic power generation facilities rent
revenue (excluding properties acquired in the 8th FP)

2,881

5,184

Operating expenses

3,792
-

+557

(MFLP Ibaraki, MFLP Kawaguchi I)

+72

202
3,590

(MFLP Sakai (80%), MFLP Prologis Park Kawagoe (50%), MFLP Hiroshima I)

Increase in asset management fee+183

Increase in other operating expenses

+88

3,589

Non-operating income
Absence of insurance income

Distribution per unit
(DPU) (yen)

6,977

7,217

240

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

6,200

6,447

247

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

777

770

-7

Distribution in excess of earnings expressed
as a percentage of depreciation

-40

7,525

Non-operating expenses+46

Offering costs associated with issuance ofinvestment units+19

Amortization of investment unit issuance expenses

+14

903

Absence of disaster restoration expenses

-35
+2

21.9%

Other non-operating expenses

20.6%

20.2%

-

Of this amount, 42 yen are one-off distributions in excess ofearnings.
*1 The simple average of the occupancy rates as of the end of eachmonth in each fiscal period is indicated.

Average occupancy rate during the period*1

99.9%

100%

-

6,622

Interest expenses*2 The fixed asset tax and city planning tax (387 million yen) for theproperties acquired in the 8th FP (MFLP Sakai 80%, MFLP Prologis
Park Kawagoe 50%, MFLP Hiroshima I) and the properties to beacquired in the 9th FP (MFLP Ibaraki and MFLP Kawaguchi I) is
included.

100%

16

3-4. (Reference) Effects of the 4th Follow-On Offering
The chart to the right is a graph showing the comparison of estimatedvalues of distribution after adjustment of one-off effects estimated bymaking the following adjustments with the estimated values of forecast
DPU when the 4th follow-on offering is not conducted based on theforecast figures for the 9th fiscal period (ending January 2021) and 10th
fiscal period (ending July 2021) and taking into consideration the 4th
follow-on offering and the acquisition of the assets to be acquired in the
9th fiscal period.

FP ending January 2021 (9th FP)
Forecast DPU, etc.

FP ending July 2021 (10th FP)
Forecast DPU, etc.

FP endingJanuary 2022 (11th FP)
DPU Image

Announced on Sep. 16, 2020

(unit: yen)
Effects of the
4th follow-on offering
7.8%

1. As for revenues and expenses of the property leasing businessconcerning the acquisition of the assets to be acquired in the 9th
fiscal period, it is assumed that full-period operation will be
implemented in the 9th fiscal period (ending January 2021) and 10th
fiscal period (ending July 2021).
2. It is assumed that property-related taxes including fixed asset tax
and city planning tax concerning the assets to be acquired in the 9th
fiscal period will occur from the beginning of the 9th fiscal period(ending January 2021) and that 387 million yen will be recorded as
expenses in the 9th fiscal period (ending January 2021) and 10th
fiscal period (ending July 2021).

Effects of the
4th follow-on offering
6.8%

7,561
7,017

7,217

Aim for upsideby realizing theacquisition ofMFIP Inzai II

Aim for upsideby realizing theacquisition ofMFIP Inzai II

7,561

7,525 7,525
7,049

3. An amount of 46 million yen of expenses related to the issuance of
new investment units, which will temporarily occur in the 9th fiscal
period (ending January 2021) due to the 4th follow-on offering, is
excluded from non-operating expenses.
4. The interest expenses of borrowings which fluctuate due toadjustment of the management period of the assets to be acquired in
the 9th fiscal period have been added to non-operating expenses.
5. Expenses linked to factors such as operating income and profit (netincome) which fluctuate due to the above adjustments. As a specificexample, it is assumed that management fees will increase by 42
million yen in the 9th fiscal period (ending January 2021).
Moreover, such DPU after adjustment of one-off effects(estimate) does not aim to estimate distributions for a specificcalculation period and does not have the meaning as theforecast of distributions, etc. during a specific calculation period.
DPU after adjustment of one-off effects (estimate) is not anindicator stipulated in the corporate accounting standards(“Japanese GAAP”) which is generally accepted in Japan andshall not be taken into consideration as an alternative indicator ofother indicators indicated in conformity with the Japanese GAAP.
Furthermore, DPU after adjustment of one-off effects does notguarantee whether distribution will be made in the future as wellas the amount of such distribution in any sense. Please note thatthe actual DPU during the calculation period for the 9th fiscal
period (ending January 2021) and 10th fiscal period (ending July2021) may differ significantly from the DPU after adjustment of
one-off effects (estimate).

Estimated value Forecast
Afterwhen the 4th made this adjustment offollow-ontime
one-off
offering is noteffects
conducted *1
No. of properties
Average occupancy rateduring the period*2 (%)

*1

*2

*3

18

20
100

Estimated value Forecast
Afterwhen the 4th made this adjustment offollow-on offering time
one-off effects
is not conducted

18

20
100

After theacquisition ofMFIP Inzai II

21

After
adjustmentof one-off
effects*3

20

After theacquisition ofMFIP Inzai II

21

100

“Estimated value when the 4th follow-on offering is not conducted” indicates the estimated value of the forecast DPU when the 4th follow-on offering
is not conducted. In addition, in the 9th fiscal period (ending January 2021), it is assumed that property-related taxes including fixed asset tax andcity planning tax for the properties acquired in the 8th fiscal period (ended July 2020) will occur from the beginning of the 9th fiscal period (ending
January 2021), and the forecast DPU after adjusting the expenses linked to factors such as operating income and profit (net income) which fluctuate
due to the occurrence of the above property-related taxes is indicated.
Average occupancy rate during the period is the weighted average of the occupancy rates as of the end of each month (calculated by dividing theleased area by the leasable area) for each property on an area basis. Moreover, the adjustment of occupancy rates associated with the full-period
operation for the assets to be acquired in the 9th fiscal period (ending January 2021) has not been made.
The image of the forecast DPU after adjustment of one-off effects for the 11th fiscal period is assumed to be the same as for the 9th fiscal period.

17

4. Management Status of MFLP-REIT

4-1. Our Portfolio
4-2-1. Location
4-2-2. Quality
4-2-3. Balance
4-3. External Growth4-4. Internal Growth
4-5. Financial Strategy
4-6. Initiatives for ESG
18

4-1. Our Portfolio [1 of 2](After acquisition of properties to be acquired in the 9th FP)
Stable portfolio with investment focused on MFLPs—leading-edge logistics facilities developedby Mitsui Fudosan—of relatively young building age
Total acquired assets

Adjusted forecast NOI yield*

20 properties 282.4 billion yen

5.0% (after depreciation: 3.4%)

Category

Appraisal NOI / Appraisal value*

Average

4.5%

Average building age*

Occupancy rate*

4.4 years

100%

Adjusted Appraisal Appraisal
NOI /Total floor area*1
NOI yield*
forecast(m2)
NOI yield* (/Acquisition Appraisal
value* (%)
price)(%)(%)

Building
age*(year)

Occupancy
rate*
(%)

105,019(52,509)

6.5

100

4.6

73,153

6.1

100

5.0

4.6

100,530(50,265)

11.3

100

5.4

5.2

4.4

40,728

6.4

100

9,160

5.6

5.5

4.7

40,942

5.4

100

6,970

7,910

5.3

5.2

4.6

30,947

5.5

100

Kashiwa,
Chiba

6,300

7,120

5.3

5.2

4.6

31,242

4.7

100

MFLP Sakai

Sakai, Osaka

23,60024,200

5.2

4.7

4.6

125,127

5.9

100

L-9

MFLP Komaki

Komaki, Aichi

8,260

8,580

5.1

4.9

4.7

40,597

3.5

100

L-10

MFLP Hino(25% quasi co-ownership interest)

Hino, Tokyo

12,533

12,600

4.5

4.3

4.3

205,200(51,300)

4.8

100

L-11

MFLP Hiratsuka

Hiratsuka,
Kanagawa

7,027

7,150

4.9

4.7

4.6

33,061

3.7

100

L-12

MFLP Tsukuba

Tsukubamirai,
Ibaraki

8,781

10,100

6.2*2
(5.8)

5.8

37,0275.0

10.1

25,457

2.3

Propertyno.

Property nameLocation

L-1

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

Ichikawa,
Chiba

15,50017,950

5.1

4.7

4.1

L-2

MFLP Kuki

Kuki, Saitama

12,50014,300

5.7

5.3

L-3

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

Yokohama,
Kanagawa

10,10010,9005.1

L-4

MFLP Yashio

Yashio,Saitama

9,650

11,200

L-5

MFLP Atsugi

Aiko,
Kanagawa

7,810

L-6

MFLP Funabashi Nishiura

Funabashi,
Chiba

L-7

MFLP Kashiwa

L-8

Logistics
facilities

Existing building
Annex building

Acquisition price Appraisal value*(million yen)(million yen)

100

19

4-1. Our Portfolio [2 of 2](After acquisition of properties to be acquired in the 9th FP)
Category

Logistics
facilities

Propertyno.

Property nameAcquisition price(million yen)Appraisal value*(million yen)

Adjusted Appraisal Appraisal
NOI /Total floor area*1
NOI yield*
forecast(m2)
NOI yield* (/Acquisition Appraisal
price)(%) value* (%)(%)

Building
age*(year)

Occupancy
rate*
(%)

L-13

MFLP Inazawa

Inazawa,
Aichi

16,20016,600

5.1

4.8

4.7

72,883

3.2

100

L-14

MFLP Atsugi II

Isehara,Kanagawa

13,10013,600

4.9

4.6

4.4

48,976

2.3

100

L-15

MFLP Fukuoka I

Kasuya,Fukuoka

5,263

5,430

5.6

5.1

5.0

32,199

3.8

100

L-16

MFLP Prologis Park Kawagoe(50% quasi co-ownership interest)

Kawagoe,
Saitama

14,80014,850

4.8

4.4

4.4

117,337(58,668)

1.8

100

L-17

MFLP Hiroshima I

Hiroshima,
Hiroshima

14,48014,800

5.4

5.1

5.0

68,4270.9

100

Ibaraki,Osaka

58,90059,200

4.5

4.2

4.2

230,435

2.9

100

Kawaguchi,
Saitama

18,50018,600

4.3

4.1

4.0

49,8380.8100

Subtotal or Average-

270,274

284,250

5.0

4.7

4.5

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

4.3

100

MFIP Inzai

Inzai, Chiba

12,22012,800

5.0

5.0

4.7

40,478

6.4

Not
disclosed

Total or Average-

282,494

297,050

5.0

4.7

4.5

1,549,613(1,234,269)

4.4

100

192,874

206,450

5.2

4.9

4.6

1,228,860(913,516)

4.9

100

205,094

219,250

5.2

4.9

4.6

1,269,338(953,994)

4.9

100

Properties to be acquired in the 9th FP

L-18

MFLP Ibaraki
Properties to be acquired in the 9th FP

L-19

Industrial
real estate

Location

I-1

MFLP Kawaguchi I

Reference: As of end of 8th fiscal period
Logistics facilities (Property no. L-1 to L-17)

Total (Property no. L-1 to L-17, I-1)

Subtotal* For further details, please refer to [Our Portfolio (After acquisition of properties to be acquired in the 9th FP)] in the Notes on Matters Stated in this Document on p. 47-48.
*1 “Total floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*2 The annex building at MFLP Tsukuba qualifies for partial reduction or exemption of fixed asset tax and city planning tax until 2021. The adjusted forecast NOI yield after the end of this tax reduction or exemption treatment
is expected to be 5.8%.

20

4-2-1. Location [1 of 2]
Acquired assets

Tohoku Expressway

Rampway MFLP Facilities

Metropolitan Inter-City Expressway(Ken-O Expressway)

MFLP Kuki L -2
Kuki IC

Tsukuba Chuo IC

Shiraoka Shobu IC

Slope MFLP Facilities

MFLP Tsukuba L -12

Tsukuba JCT

Saitama Prefecture

Box MFLP Facilities

16

Okegawa Kitamoto IC

Joban Expressway

National Route 16

MFIP Facilities

Tsurugashima JCT

Kanetsu Expressway

Acquisition under exclusive
negotiation＊

MFLP Kashiwa L -7
Kashiwa IC

Kawagoe IC

MFLP
Tokorozawa Tokyo Gaikan

Expressway(Gaikan Expressway)

MFIP Facilities

Gaikan Misato-Nishi IC
Soka ICPark Kawagoe

MFLP Tachikawa Tachihi

Hachioji JCT

L -10 MFLP Hino

Properties developed by
Mitsui Fudosan
L -5 MFLP Atsugi

Rampway MFLP Facilities

Higashi-Kanto
Expressway

Keiyo Road

L -1
Oi JCT

MFLP
Funabashi I

GLP / MFLP
Ichikawa
Shiohama

MFLP Funabashi II

Chiba
Prefecture

MFIP Haneda
MFLP Kawasaki I

Sagamihara
Aikawa IC

Haneda Airport

MFLP Ichikawa
Shiohama II
Tateyama Expressway

Third Keihin Road

Kanagawa Prefecture MFLP Ebina

Wangan Line
Isehara Atsugi IC
JCT
Isehara Oyama JCT

Daikoku Futo IC
Tomei Expressway

L -3 MFLP Yokohama Daikoku

Ebina JCT
AtsukiMinami IC

MFLP Hiratsuka II

Ebina Minami JCT
Samukawa Kita IC

Samukawa Minami IC

Mitsui Fudosan’s strategicarea

MFLP Funabashi III
Chidoricho IC
Kasai JCTTokyo Rail Gate EAST

L -14 MFLP Atsugi II

MFIP Facilities

L -6

Tomei JCT(tentative name)

MFLP Yokohama
KohokuWanganIchikawa IC

Takaya JCT
Ohashi JCT

Hachioji JCT

MFLP Yachiyo Katsutadai

MFLP Funabashi Nishiura
CentralCircular Route

Chuo JCT(tentative name)
Chuo Expressway

Box MFLP Facilities

Kosuge JCT

Kohoku JCT

Oizumi JCT

Tokyo
Slope MFLP Facilities

Box MFLP Facilities

Taiei JCT
Misato Minami IC

MFLP Inzai II
L -19 MFLP Kawaguchi I

Rampway MFLP Facilities

Slope MFLP Facilitiesl -1 MFIP Inzai

Misato JCT

MFLP
Yashio L -4

L -16 MFLP Prologis

Properties defined in “Right of firstlook and preferential negotiationrights agreement”

L -11

Kisarazu JCT

Fujisawa IC Kamariya JCT

MFLP Hiratsuka＊After acquisition of properties to be acquired in the 9th FP＊ For further details, please refer to [Acquisition under exclusive negotiation] in the Notes on Matters Stated in this Document on p. 47-48.

21

4-2-1. Location [2 of 2]
Meishin
Expressway

Hyogo
Prefecture

L-13

Shin-Meishin
Expressway

MFLP Ibaraki IbarakiSendaiji IC
L -18

Kusatsu JCT

MFLP
Inazawa

L-9

Aichi
Prefecture

Takatsuki JCT

Kobe JCT
Suita JCT

Ibaraki IC

Kyoto
Prefecture

Chugoku Expressway
Nishinomiya IC

Ikeda LineMFLP Osaka
KatanoOsaka
Prefecture

Hanshin Expressway

Daini Hanna Road

MFLP Osaka I
Sanbo JCT

Kinki Expressway

L-15

MFLP
Fukuoka I

Matsubara JCT

MFLP Sakai

L -8

MFLP
Komaki

Hiroshima Okayama
Prefecture Prefecture

Fukuoka
Prefecture

L-17

Nishi-Meihan
Expressway

MFLP Hiroshima I

MFLP Tosu

Hanwa
Expressway

Geographically diversified portfolio

Location offering excellent access totransportation nodes

Location taking into consideration conveniencein terms of commuting to work for employees

Investment Target Area

Access (Distance) to Nearest Expressway Interchange

Access (Time) to Nearest Train Station

Hiroshima Kyushu area
1.9%
area
5.4%

Greater
Nagoya area
9.1%

Shuto
Expressway
Wangan Line
12.1%
Tokyo-Gaikan
Greater Expressway
Tokyo area and 10.4%

Greater Osaka National
Route 16
area
Greater Osaka
area
30.5%

83.6%Ken-O
Expressway
18.2%

Within walking distanceBy bus(20-30 minutes) (20-25 minutes)
3.2%
2.9%

5 km or more
3.1%

12.4%

Less than
1 km
19.0%

3 km or more but
less than 5 km
41.8%GreaterTokyo area
53.1%

By bus(20 minutes
or less)
59.1%

Less than
5 km

96.9％

Within walking
distance/Within
20 min. by bus

97.1％

Withinwalking
distance(20 minutes
or less)
34.8％

1 km or more but
less than 3 km
36.1%

* The pie charts above indicate figures for the portfolio after the acquisition of properties to be acquired in the 9th FP calculated on an acquisition price basis (excluding MFIP property).

22

4-2-2. Quality
MFLP-REIT focuses investment in “leading-edge logistics facilities with Mitsui Fudosan quality” realized
by applying Mitsui Fudosan’s expertise as a comprehensive developer

Mitsui Fudosan quality
Basic specifications of leading-edge logistics facilities
Large-sized site
[Total floor area]

Storage space
Effective ceiling heightAt least 5.5 m

At least 10,000 m2
Column spacing
At least 10 m
Floor load capacity
At least 1.5 tons/m2

MFLP SakaiHigh performance

Disaster prevention[Column spacing]
At least 10 m
[Effective ceiling height]
At least 5.5 m• Equipped with
Seismic isolation• Quake-resistance• Emergency power
generation…etc.

[Floor load capacity]
At least 1.5 tons/m2＆ Worker

Adoption of seismic
isolation

Emergency power
generator

MFLP Kashiwa

MFLP Sakai＆ Tenant

MFLP Ibaraki

Sky lounge

MFLP Hiroshima I

Unmanned store

Commuter shuttles＆ Community

MFLP Hiroshima I

Bicycle sharing＆ EarthMFLP Hino

MFLP Prologis Park Kawagoe

Public open space

MFLP Ibaraki

MFLP Ibaraki

Sky deck

Childcare facilities

MFLP Hiroshima I

Monument

MFLP Kawaguchi I

MFLP Ibaraki

Solar panels

LED lights* Photos are for illustrative purposes only. An MFLP facility or each portfolio asset is not necessarily equipped with all of the abovementioned standard specifications and features. Some of the specificexamples include also those of properties not held by MFLP-REIT.

23

4-2-3. Balance
Securing growth and stability by building a balanced portfolio through acquisition of MFLPs developed inconsideration of land characteristics and tenant needs
Investment ratio: 20% or lessIndustrial real estate

Investment ratio: 80% or more
Logistics facilities
Logistics needs

Shipping needs

Storage needs

Tenant typeMulti-tenant type

Single-tenant type

Rampway MFLP

Slope MFLP
Multi

MFLP Ibaraki

SingleSingleMFLP Kawaguchi I

MFLP Fukuoka I

Multi

Multi

SingleMFLP Hiroshima I

MFLP Tsukuba

Multi

Multi

Other*1

MFLP Atsugi II

MFLP Hiratsuka

Multi
MFLP Hino

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

MFLP Prologis
Park Kawagoe

MFLP Sakai

Data centers, etc.

BTS
MFIP Inzai

Investment Ratio by Property Type*2

Multi
MFLP Inazawa

Data center 4.3%

Rampway
MFLP
47.9%

Box MFLP
15.6%

Multi
MFLP Yashio

Slope MFLP
32.2%
Multi
GLP/MFLP
Ichikawa
Shiohama
Multi
MFLP Yokohama
DaikokuSingleMFLP Komaki

Multi
MFLP Kuki

SingleMFLP Funabashi
Nishiura

Investment Ratio by Tenant Type*2
BTS
4.3%

SingleMFLP Kashiwa

Single

Multi
71.3%

Other
2.5%
Single21.9%

MFLP Atsugi*1 “Other” refers to a property for which the classification (multi or single) cannot be disclosed in this material as consent for disclosure has not been obtained from the lessee.
*2 Figures for the portfolio after the acquisition of properties to be acquired in the 9th FP calculated on an acquisition price basis.

24

4-3. External Growth [1]Stable growth utilizing the growth potential and extensive pipeline of Mitsui Fudosan’s logistics
facilities business
Proposal of CRE
strategies

Various CRE needs of client firms
Re-establishment of corporate
logistics

Utilization of idle land

Development ofcorporate infrastructure

Further development of
Mitsui Fudosan’s logistics
facilities business

Trimming down of balance sheet(Off-balancing)Global development(Establishment of overseas sites)

Sale of realestate, etc.

Mitsui Fudosan’s major development/operation track record *: 40 facilities 570.0 billion yen 3,600,000 m2 in total floor
area
Properties held by MFLP-REIT and properties to be acquired in the 9th FP

Acquisition under
exclusivenegotiation

Properties defined in “Right of first look andpreferential negotiation rights agreement” *Construction completionin fiscal 2016

Construction completionin fiscal 2022 or after

MFLP Funabashi I

MFLP Ebina

Construction completionin fiscal 2019

Construction completionin fiscal 2022 or after

MFLP Funabashi III

MFIP Haneda

Tokyo Rail Gate EAST

NEW

Construction completionin fiscal 2019

underconstruction
MFLP Yokohama
Daikoku

MFLP Atsugi

GLP/MFLP Ichikawa
Shiohama

MFLP Kashiwa

MFLP Inazawa

MFLP Hiroshima I

MFLP Funabashi II

MFIP Inzai II

MFLP Tosu

Properties to beacquired in the 9th FP

MFLP Tsukuba

MFLP Ibaraki

MFLP Hiratsuka II

Properties to beacquired in the 9th FP

Properties developed/operatedby Mitsui Fudosan

Other data centers
1 property
Overseas
2 properties

MFLP Yashio

MFLP Fukuoka I

MFLP Atsugi II

MFLP Yokohama
KohokuMFLP Kawaguchi I

MFLP Kawasaki I

NEWConstruction completionin fiscal 2020

MFLP Osaka Katano

MFLP Tachikawa Tachihi…

MFLP Tokorozawa

75%

MFLP Kuki

MFLP Hiratsuka

MFLP Sakai

MFIP Inzai

MFLP Hino

MFLP Osaka I

NEW

60%

MFLP Funabashi
Nishiura

MFLP Komaki

MFLP Prologis Park
Kawagoe

MFLP Yachiyo
Katsutadai

MFLP Ichikawa
Shiohama II* For further details, please refer to [Mitsui Fudosan’s Major Development/Operation Track Record], [Properties defined in Right of first look and preferential negotiation rights agreement] and [Acquisition under exclusive
negotiation] in the Notes on Matters Stated in this Document on p. 47-48.

25

4-3. External Growth [2]Building a high-quality portfolio capitalizing on diversification of areas
Greater Osaka Area

Greater Tokyo Area
MFLP Kuki

MFLP Tsukuba

Saitama Prefecture

MFLP Ibaraki
MFLP Osaka
KatanoMFLP Osaka I

MFLP Kashiwa
MFLP Prologis Park Kawagoe

Osaka Prefecture

MFLP Yashio
MFIP Inzai
MFLP Tokorozawa
MFIP Inzai II
MFLP Kawaguchi I
MFLP Yachiyo Katsutadai
Tokyo Prefecture
MFLP Funabashi Nishiura
MFLP Funabashi II
MFLP Tachikawa
MFLP Ichikawa
Tachihi
Shiohama II
MFLP Funabashi III
MFLP Hino
MFLP Funabashi I
Chiba Prefecture
GLP/MFLP Ichikawa Shiohama

MFLP Sakai

Greater
Nagoya Area
Hiroshima
Area

MFLP Komaki

MFLP Hiroshima I
MFLP Fukuoka I
MFLP Tosu

KyushuArea

MFLP Atsugi

MFLP Inazawa

MFLP Kawasaki I

Tokyo Rail Gate EAST
MFIP Haneda

MFLP Yokohama Kohoku
MFLP Yokohama Daikoku
MFLP Ebina

Kanagawa Prefecture: Properties held by MFLP-REIT: Acquisition under exclusive
negotiation *:Properties defined in “Right of first lookand preferential negotiation rights
agreement”:Properties developed by Mitsui
Fudosan

MFLP Atsugi II
MFLP Hiratsuka II
MFLP Hiratsuka* After acquisition of properties to beacquired in the 9th FP

Properties defined in “Right of first look and preferential negotiationrights agreement” *11 properties 1,100,000 m² (Total floor area)
MFLP-REIT’s asset size
20 properties 1,230,000 m² (Total floor area) 282.4 billion yen

Further expansion of properties defined in “Right of firstlook and preferential negotiation rights agreement
MFIP Inzai II

Continuous external growth* For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement”] and [Acquisition under exclusive negotiation] in the Notes on Matters Stated in this Document on p. 47-48.

26

4-4. Internal Growth [1]Achieve stable management by leveraging Mitsui Fudosan Group’s platform and client network
Effectively leverage the Mitsui Fudosan Group’s
platform and client network in leasing

Tenant diversification

International logistics firm

End user

Sagawa Global Logistics
Nakano Shokai
NIPPON EXPRESS
3PL

Sun Toshi Tatemono
MITSUI-SOKO LOGISTICS
KDDI
Kimura Unity
KOKUBU
Bic Camera
DAIWA Corporation

Logistics
agencyagreement

Logistics
firm

Tenantdiversification

Rakuten
E-LogiT
Hitachi Transport System Metropolitan
JA Mitsui Leasing Tatemono
MISUMI

Lease
agreement

Lease
agreement

Major Specialty store retailer ofPrivate label Apparel

MARUBENILOGISTICS

Occupied by many tenants that have a relationshipwith Mitsui Fudosan

Owner of logistics
facility

Japan Logistic Systems
Other

Occupancy rates
End user(3PL operator, etc.)

Status of lease agreements*

(%)
100
95

99.5

100

100

100

100

100

100

99.1

100

Average lease period

6.9 years

Remaining lease
contract period

3.7 years

90

Can directly approach logistics firms andend users regardless of contract type85
80

Aug. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31,
2016
2017
2017
2018
2018
2019
2019
2020
2020

Staggering of contract expiration periods
19.2%

Fully leverage the Mitsui Fudosan Group’s broad client network
Office building
Retail facility
Strong relationships
business clientbusiness clientwith leading 3PL
network
network
operators
Approx. 3,000 firms* Approx. 2,400 firms**Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year
ended March 31, 2020

5.6%

4.4%

9th FP ending
2021/01

10th FP
ending2021/07

11th FP
ending2022/01

44.2%

6.0%

8.0%

8.7%

12th FP
ending2022/07

13th FP
ending2023/01

14th FP
ending2023/07

1.2%

2.6%

15th FP
ending2024/01

16th FP
ending2024/07

17th FP or
after* The graphs above show figures based on leased areas stated in lease agreements concluded as of July 31, 2020 after acquisition of properties tobe acquired in 9th fiscal period.
Tenant diversification excludes MFIP.
* For details of calculation, please refer to [Calculation of average lease term] and [Calculation of remaining lease contract period] in theNotes on Matters Stated in this Document on p. 47-48.

27

4-4. Internal Growth [2]
Steady internal growth through evolution of solutions-based asset management and maintaining relationships
with tenants over the medium to long term
Strengthening of proposal capability for specialized solutions
responding to the needs from tenant customers

Key points of asset management plans
Challenges facing logistics firms
Labor shortage

Addressing BCP,
etc.

Improving the efficiency
of operations

End user

MFLP-REIT

Logistics firm
(3PL operator, etc.)
Anticipation of futurerises in delivery costs

Specific examples ofsolutions-based asset
management by
Mitsui Fudosan GroupEnd user
Responding toautomation

MFLP Funabashi I / ICT LABO
Establishment of leading-edge ICT-related
products, etc. for improving efficiency, laborsaving, etc.
MFLP-REIT mutually provides expertise to
and collaborates with companies handlingsuch devices and is strengthening its
proposal capability as a new solution totenant companies.

Relocated to MFLP
Funabashi &GATE(shared facility building)for expansion

MFLP ICT LABO 2.0 (opened in February 2020)● Consulting service for leading-edge ICT-related
products for improving efficiency, labor-saving, etc.
● Consulting support to help tenant companies secure
staff● Matching of 3PL operators and end users● Establishment of comfortable working environment for
employees

Initiatives for improving the satisfaction of tenant companies
and employees
MFLP-REIT conducts various measures for improving CS based on the
feedback after conducting CS survey. In addition, MFLP-REIT improves
employee satisfaction by creating a comfortable working environment andcontributes to the securement of employment.

Concluded business alliance with
Hacobu with an aim to improvethe delivery environment such as
the shortage of drivers and low
loading ratio on trucks.

Policy for future internal growthThanks party

CS survey

Unmanned store

Negotiation of rent increase throughcontract renewal, etc.

Reduction of utility expenses throughrevision of supply agreement28

4-5. Financial Strategy [1]Financial management with an emphasis on stability
Credit rating assignment

Status of borrowing and LTV*
End of 8th fiscal
periodEnd of 9th FP(forecast)End of 10th FP(forecast)

62.9 billion yen

88.9 billion yen

85.9 billion yen(5.0 billion yen)

(8.0 billion yen)

(5.0 billion yen)

LTV

30.2%

31.4%

30.4%

Average time to maturity(long-term only)

5.4 years

5.8 years

5.3 years

Average interest rate

0.28%

-

-

Total interest-bearing debt
(of which, short-term)

Credit rating
agencyJapan Credit Rating
Agency, Ltd.
(JCR)

Rating details

Long-term issuer rating: AA-

Remarks

Rating outlook: Stable*As of the end of July 2020

* As of the end of each period

Lender formation
Sumitomo Mitsui Banking
Corporation
The Bank of Fukuoka

15.4%

Sumitomo Mitsui Trust Bank

12.4%

13.5%

Mizuho Bank

9.9%

MUFG Bank

9.7%

Shinkin Central Bank

8.6%

Mizuho Trust & Banking

5.4%

The Norinchukin Bank

4.9%

Development Bank of Japan

3.3%

The Yamaguchi Bank
Mitsui Sumitomo Insurance

3.3%
3.2%

2.9%
Sumitomo Life Insurance
Company
Nippon Life Insurance Company 2.4%
The Chiba Bank
2.4%
The 77 Bank
Shinsei Bank

End of
8th Fiscal Period

All 16 financial
institutions

62.9 billion yen

New Borrowing Associated withthe 4th Follow-On Offering ＊After New Borrowing
Associated with the 4th
Follow-On Offering

Total interest-bearing debt 31.0 billion yen(of which, short-term)(8.0 billion yen)
Average borrowing period(long-term only)

Average interest rate*

8.2 years
0.34 %* Estimated value as of the end of August 2020

1.4%
1.3%

*For further details, please refer to [New borrowing associated with the 4th follow-on offering] in the Notes on Matters Stated in this Document on p. 47-48.

All 22 financial
institutions

93.9 billion yen

Sumitomo Mitsui Banking
Corporation
Mizuho Bank

13.2％
12.9％

Sumitomo Mitsui Trust Bank

11.5％

The Bank of Fukuoka

11.1％

MUFG Bank

8.9％

Shinkin Central Bank

7.8％

Mizuho Trust & Banking

5.6％

The Norinchukin Bank

Mitsui Sumitomo Insurance

4.8％
3.2％
3.2％
3.1％

The 77 Bank

1.9％

Development Bank of JapanThe Yamaguchi Bank

Sumitomo Life Insurance Company 1.9％
Shinsei Bank

1.8％

Nippon Life Insurance Company

1.6％

The Chiba Bank

1.6％

The Yamanashi Chuo Bank

1.1％

The Hyakugo Bank

1.1％

The Chugoku Bank

1.1％

The Daishi Bank

1.1％

The Joyo Bank

1.1％

The Bank of Kyoto

0.5％

29

4-5. Financial Strategy [2]Interest-bearing debt maturity ladder*
Existing borrowing(million yen)

New borrowing (assumption)

14,00012,00010,000
8,000

8,000

6,000
4,000
2,000
0

5,000
1,900

3,400

5,600

6,600
4,000

3,000

3,600

5,600
2,100

3,100

2,900
2,100

5,200
4,600
900

4,400
1,800

2,000

6,100

7,800
4,200

FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending FP ending
Jan. 2021 Jul. 2021 Jan. 2022 Jul. 2022 Jan. 2023 Jul. 2023 Jan. 2024 Jul. 2024 Jan. 2025 Jul. 2025 Jan. 2026 Jul. 2026 Jan. 2027 Jul. 2027 Jan. 2028 Jul. 2028 Jan. 2029 Jul. 2029 Jan. 2030 Jul. 2030 Jan. 2031

*The repayment period when adding new borrowing associated with the 4th follow-on offering to the borrowing at the end of the 8th FP is indicated.

Efficient cash
management

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

Diagram of cash distribution based on FFO
Leasingbusiness
expenses,
SG&A, etc.
Rentalrevenue

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

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

Securing long-term building maintenance funds

FFO
Depreciation

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

Distributions inexcess of earnings

Profit(Net income)*

Key points of cash distribution in excess of earnings

Distributionsof earnings

Targeted
at 70%* Gain or loss on sale of real estate, etc. is not included in “Profit (Net income)” in the above chart.
* For further details, please refer to “Status of interest-bearing debt” in the Notes on Matters Statedin this Document on p. 47-48.

Securing financial stability
Distributions in excess of earnings will not be made if appraisal LTV ratio * exceeds 60% for each operating
period.
* Appraisal LTV ratio = Interest-bearing debt ÷ (Total assets - Book value of portfolio real estate, etc. + Appraisal value)30

4-6. Initiatives for ESG
ESG vision of Mitsui Fudosan Group

Mitsui Fudosan Group aims to create a society
where people and the earth can co-exist.

Environmental policy of Mitsui Fudosan Group

Establish ultra-smart societies
by creating neighborhoods

Achieve a society where adiverse workforce can thrive

Achieve health, safety andsecurity in people’s daily lives

E S

S

E S

Environment
SocialGovernance

Cleaning the famous
Nihonbashi bridge

Achieving a sustainable society
Driving continual profit growth
Create new industries
through open innovation

Reduce environmental
impact generate energy

Continuously improve
compliance and governance

E S

E

G
Corporate governanceRisk management
Compliance31

4-6. Initiatives for ESG – Environmental Principles
and Initiatives for the Environment

Environment

Environmental policies of Mitsui Fudosan Group

Eco-friendly green buildings

Mitsui Fudosan Group seeks reduction of environmental load, diversified
collaboration/cooperation with various entities, improvement of peace ofmind, safety and comfort as well as securement of sustainability.

MFLP-REIT has a track record of acquiring CASBEE,DBJ Green Building Certification and BELS for thefollowing properties. Furthermore, MFLP Sakai has
received the Osaka Ecofriendly Construction Award.
As such, MFLP-REIT proactively incorporates
environmentally conscious green buildings.

Cooperation
A wide range ofcollaboration/cooperation
with various entities

Loadreduction

Quality

improvement

Reduction of Improvement ofenvironmental peace of mind
and safety andload
securement ofsustainability

 Co-existence with local communities
 Proactive action towards tenants andowners Collaboration/cooperation with design,
construction, energy, manufacturing firms,
etc.
 Further collaboration/cooperation withlocal communities, government, andresearch institutes including universities
 Improvement of peace of mind and safety Conservation and utilization of naturalenvironment (conservation of biodiversity)
 Conservation and utilization of landscapeand townscape Improvement of health and comfort

 Reduction of CO2 (including supportinguse of low-carbon transportation) Aquatic conservation
 Reduction of harmful substances Resource saving and reduction of wastematerial

Initiatives for reducing environmental load

Evaluation/Award history, etc.

Property name

GLP/MFLP Ichikawa Shiohama

CASBEE (Real estate) Rank S
CASBEE (New construction) Rank A

MFLP Kuki

CASBEE (New construction) Rank A

MFLP Yokohama Daikoku

DBJ Green Building Certification 5 Stars

MFLP Yashio

CASBEE (New construction) Rank A* CASBEE Kanagawa Rank A

MFLP Atsugi

DBJ Green Building Certification 4 Stars

MFLP Funabashi Nishiura

CASBEE (New construction) Rank A

MFLP Kashiwa

CASBEE (New construction) Rank A

MFLP Sakai

CASBEE (New construction) Rank S
FY2015 Osaka Eco-friendly Construction Award(Commerce, other category)

MFLP Komaki* CASBEE Aichi Rank A

MFLP Hiratsuka* CASBEE Kanagawa Rank A

CASBEE (New construction) Rank A

MFLP Inazawa* CASBEE Aichi Rank A* CASBEE Kanagawa Rank A

MFLP Atsugi II
MFLP Fukuoka I

CASBEE (New construction) Rank A

MFLP Prologis Park Kawagoe

CASBEE (New construction) Rank A
BELS 5 Stars

MFLP Hiroshima I* CASBEE Hiroshima Rank A

MFLP Ibaraki* CASBEE Osaka-fu Rank A* CASBEE Saitama-ken Rank S

MFLP Kawaguchi I

MFLP-REIT has put forth efforts on
reducing CO2 emissions throughenergy saving while promoting
efficient use of energy at its
portfolio assets by introducing LED
lights, installing solar panels on theroof and such.

LED lights

Solar panels* Not a certification by a third-party but an assessment based on self-reporting

Power generation facilities using solar panel (2019 Actual)
Annual power generation
Number of properties established

10 properties
MFLP Prologis Park Kawagoe

MFLP Sakai

15 GWh** For further details, please refer to [Annual Power Generation by Solar Panel]in the Notes on Matters Stated in this Document on p. 47-48.

32

4-6. Initiatives for ESG – Initiatives for Society

SocialUtilizing the expertise of Mitsui Fudosan, the sponsor, the properties owned by MFLP-REIT promote initiatives to offer healthy, pleasant and safe environment bygiving consideration to stakeholders such as occupying tenants, facility users, surrounding environment and local communities.

Provision of acomfortableworkingenvironment

Cafeteria

Initiatives forsecurity and safety
Unmanned store

Sky lounge

Seasonal decoration

Sky deck

BCP measures

Initiatives for local
communities

Creation of community
space

Adoption of seismic
isolation

Emergency power
generator

Remote monitoring using
ITV

Stockpiles for disasterprevention

Commuter shuttles

ICT LABO

Issuance of quarterly
magazine

Thanks party

Initiatives fortenants
Implemented beautification
activities (cleaning)

Emergency temporary
toilets

Childcare facilities

Designated as a tsunami
evacuation

Mitsui Fudosan SC discountservice for employees

Initiatives for the COVID-19 era
We conduct facility operation striving toprevent infection such as measurement ofbody temperature upon entry andprovision of masks in addition to thoroughdisinfection and avoidance of the Three
Cs to make sure that customers cancontinue to use the facilities safely.

Considering also
the introduction of“non-contact
elevator buttons”
that can be
operated by waving
hands over infrared
sensors
Thorough disinfection

Management of bodytemperature using thermography

Promotion of awareness on the avoidanceof the Three Cs* Photos are for illustrative purposes only. An MFLP facility or each portfolio asset is not necessarily equipped with all of the abovementioned standard specifications and features. Some of the specificexamples include also those of properties not held by MFLP-REIT.

33

4-6. Initiatives for ESG – Initiatives for Governance with
Consideration for Unitholders’ Interests

Governance

MFLP-REIT and the Asset Management Company are working to establish proper governance through the following measures in order to build a solid relationship oftrust that aligns interests of unitholders with those of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

Asset management with emphasis placed on relationshipof trust with unitholders

Rules concerning conflicts of interestin asset management
The acquisition and transfer of assets by MFLP-REIT from relatedparties are decided by the Asset Management Company via atransparent decision-making process.

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

Draft by the Investment Team

Deliberation and resolution by the Compliance Committee*2

Examination and approval by the Investment Committee

Instruction to cancel or amend details

Approval by the Chief Compliance Officer

Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

Operating income (before deduction ofasset management fees anddepreciation) × 5.5% (maximum)

Asset management fee III

Pre-tax earnings (before deduction ofasset management fees) × Pre-tax EPU(before deduction of asset managementfees) × 0.001% (maximum)

Approval by MFLP-REIT’s Board of Directors

Same-boat investment in MFLP-REIT by Mitsui Fudosan

Deliberation and resolution by the Management Committee

Reporting to the Board of Directors and MFLP-REIT

Instruction to cancel or amend details

Submission of the acquisition plan by the Chief Investment
Office Officer to the Management Committee*1 The above chart shows the decision-making flow when a transaction involves a related party, which requires
the approval of MFLP-REIT’s Board of Directors under Article 201-2 of the Act on Investment Trusts andInvestment Corporations.
*2 If a transaction prescribed in Article 201-2 of the Act on Investment Trusts and Investment Corporations falls
under the criteria for insignificance defined therein, the approval of MFLP-REIT’s Board of Directors shall beomitted.

MFLP-REIT receives investment in capital from Mitsui Fudosan.
Receiving certain investment in capital leads to alignment of the interestsof MFLP-REIT’s unitholders and Mitsui Fudosan, and asset managementthat pursues mutually greater interests.
The same-boat investment ratio after the 4th follow-on offering is expected
to be 5.3%.

Timely and proper information disclosure and securementof transparency
MFLP-REIT strives to make timely and proper disclosure of informationnecessary for unitholders to make investment decisions. Upon disclosure,
MFLP-REIT promotes prompt and transparent information disclosure tosecure fairness and equality as well as disclosure of not only financial
information but also non-financial information concerning ESG.

34

5. Market Overview

35

5-1. Market Overview [1]Supply-demand balanceand vacancy rate [1 of 3]
Greater Tokyo Area

: New supply in 2019 and first half of 2020 (January-June): Vacancy rate 0–5%

: Submarket areas: New demand in 2019 and first half of 2020 (January-June): Vacancy rate 5–10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–= 100 thousand m2

Forecast

thousand m2*As of the end of June 2020

3,500

15%

3,000
12%
2,500

Tohoku Expressway

Tohoku/Ken-O
Expwy area

9%

2,000

Metropolitan Inter-City Expressway(Ken-O Expressway)
MFLP Kuki

1,500

Tsukuba Chuo IC

Kuki IC

6%

Shiraoka Shobu IC

National Route16 area

1,000
3%
500

OkegawaKitamoto IC

Kan-Etsu/Ken-O
Expwy area

National Route 16
Tsurugashima JCT

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(year)

Tokyo-Gaikan
Expwy area

MFLP Kashiwa
Kashiwa IC

Tokyo Gaikan Expressway Soka IC Gaikan Misato
Nishi IC(Gaikan Expressway)

MFLP Prologis
Park Kawagoe

MFLP
YashioHachioji area

Hachioji IC

900

Oizumi JCT

MFLP Tachikawa
Tachihi

Hachioji JCT

CentralCircular Route

Chuo JCT
Chuo Expressway (tentative name)

MFLP Hino

12%

Narita area
MFIP Inzai

Misato JCT

MFIP Inzai II

Misato Minami IC

MFLP
Kawaguchi I

Tokyo
Prefecture

18%

1,200

Joban
Expressway

Kawagoe IC
MFLP Tokorozawa

thousand m2

Tsukuba JCT

SaitamaPrefecture

Kanetsu Expressway

0%0

MFLP Tsukuba

Ohashi JCT
Tomei JCT(tentative name)

MFLP Funabashi
Nishiura

Takaya JCT
Chidoricho IC
Kasai JCT

MFLP
Funabashi III

WanganIchikawa IC

Higashi-Kanto
Expressway
Keiyo Road

GLP / MFLP
MFLP Funabashi II
Ichikawa
Shiohama
MFLP Funabashi I
MFIP Haneda
MFLP Ichikawa
Shiohama II

Oi JCT

600

Tokyo Rail Gate
EAST

MFLP Atsugi

6%
300

0%
Q3
Q4
JulyOctoberSeptember December

Q1
JanuaryMarch

Q2
AprilJune

Q3
JulySeptember

Q4
OctoberDecember

2019

2018

Q1
JanuaryMarch

Q2
AprilJune

0.2%

2020

MFLP Atsugi II
Daini Tomei Expressway
IseharaOyama IC

Daisan Keihin
Road

Kanagawa
inland area

Kanagawa
Prefecture

0.4%
0Sagamihara
Aikawa IC

MFLP Ebina
Atsugi IC
Isehara JCT

MFLP Hiratsuka II

MFLP Yokohama
KohokuTomei Expressway

Haneda Airport
MFLP
Kawasaki I
Wangan Line

Daiei JCT

MFLP
Yachiyo Katsutadai

Chibainland area
Chiba
Prefecture

Tateyama Expressway

Daikoku Futo IC
MFLP Yokohama
Daikoku

Ebina JCT
Ebina Minami JCT

Kisarazu JCT

Samukawa kita IC
Fujisawa IC

MFLP Hiratsuka

Kamariya JCT

Greater Tokyobay area

Samukawa-Minami IC
NewsupplyNew
demandVacancyrate

Vacancy rate
(Completion over 1 year)* Source: CBRE K.K. (including forecast figures) *As of June 30, 2020
* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000 m2 or more.

36

5-1. Market Overview [1]Supply-demand balanceand vacancy rate [2 of 3]
Greater Osaka Area

: New supply in 2019 and first half of 2020 (January-June): Vacancy rate 0–5%

: Submarket areas: New demand in 2019 and first half of 2020 (January-June): Vacancy rate 5–10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–= 100 thousand m2

Forecast

thousand m2

2,000*As of the end of June 2020

15%
12%

1,500

9%
1,000

Meishin Expressway

Other area

Osaka inland area
6%

500

3%

Shin-Meishin Ibaraki-Sendaiji IC
Expressway

0%02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (year)

Kobe JCT

Takatsuki JCT

MFLP Ibaraki
Ibaraki IC

Chugoku Expressway
thousand m2

18%

750

Nishinomiya IC
Hanshin Expressway
Kobe LineMFLP Osaka Katano

Suita JCT

Kinki Expressway

MFLP Osaka I
Daini Hanna Road

12%

500

Hanshin
Expressway

Sanbo JCT
Osaka bay/
Kobe area

6%

250
3.5%
2.1%

0
Q3
Q4
JulyOctoberSeptember December

Q1
JanuaryMarch

Q3
Q4
JulyOctoberSeptember December

2019

2018

New
supplyQ2AprilJuneNew
demandQ1
JanuaryMarch0%

Q2
AprilJune

Matsubara JCT

MFLP Sakai
Hanshin
Expressway
Wangan Line

Nishi-Meihan
Expressway

Osaka
Prefecture
Hanwa
Expressway

2020

Vacancyrate

Vacancy rate
(Completion over 1 year)* Source: CBRE K.K. (including forecast figures) *As of June 30, 2020
* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000 m2 or more.

37

5-1. Market Overview [1]Supply-demand balanceand vacancy rate [3 of 3][Legend]Greater Nagoya Area

New supply

New demand

Vacancy rate

Kyushu Area
Forecast

thousand m2
2,000
1,500

10%

1,000

400
300

500

10%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

0%

0

2010

(year)

thousand m2

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

0%

500
7.1%
250

16%

14%

14%

1.7%
Q3
JulySeptember

Q4
OctoberDecember

Q1
JanuaryMarch

Q2
AprilJune

2018

Q3
JulySeptember

Q4
OctoberDecember

Q1
JanuaryMarch

2019

Q2
AprilJune

100

10%

8%

8%
50

4%
0.0%

2%
0

2020

60%

100

40%

50

20%

0

2010

2011

2012

2013

2014

2015

2016

Q3
JulySeptember

Q4
OctoberDecember

Q1
JanuaryMarch

2018

2019

2020

2021

0%

(year)

18%
16%
14%

75

12%
10%

50

8%
6%

Q2
AprilJune

Q3
Q4
JulyOctoberSeptember December

Q1
JanuaryMarch

2019

2020

Q2
AprilJune

25

4%

2%
0%

0.0%
0

Q1
JanuaryMarch

Q2
AprilJune

Q3
JulySeptember

Q4
OctoberDecember

2019

Q1
JanuaryMarch

Q2
AprilJune

2%
0%

2020

OkayamaPrefecture

MFLP Inazawa
MFLP
Fukuoka I* Source: CBRE K.K. (including forecast figures) *As of June 30, 2020
* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000 m2 or more.

2018

100

MFLP Komaki

Aichi
Prefecture

2017

6%

4%

0%

150

12%

10%

6%

80%

thousand m2
18%

150

16%

12%

200

(year)

thousand m2
18%

750

0

5%

100

Forecast

thousand m2
15%

200
5%

: Mitsui Fudosan’s strategic areas

Hiroshima Area
Forecast

thousand m2
15%

0

Vacancy rate
(Completion over 1 year)

Fukuoka
Prefecture

MFLP Tosu

Hiroshima
Prefecture

MFLP
Hiroshima I38

5-1. Market Overview [2]Logistics facilities
40 years old or older
35.2%

Leading-edge
logistics facilities
4.3％
Highly scarce leadingedge logistics facilities

40%

600

35%
30%
25%

400
20%
300
15%
200

Future demand for
replacement ofaging properties

Logistics facilities lessthan 40 years old
60.5%

700

500

million m2

Stock of logistics facilities in Japan(As of December 2018)

10%

100

5%

0

0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (year)
Estimatefor logistics facilities
築40年以上の推計値
40 years old or older

Estimate for logistics facilities
築40年未満の推計値

Leading-edge(left axis)
axis)
(left
先進的物流施設

築40年以上のシェア
Shareof logistics facilities
40 years old or older

Share of leading-edge logistics
先進的物流施設シェア(right axis)

Tenants/End users of logistics facilities

Over 40 years old

Other 8%Other 4%
Manufacturing3%

20,000Wholesale 9%

Share by tenantbusiness type10,0005,000

Logistics
5%

Manufacturing26%

15,000Share byend userbusiness
type

Retail 41%

Retail 13%

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

thousand m2

facilities* Estimates by CBRE K.K. based on “Building Starts” (Ministry of Land, Infrastructure, Transport and Tourism) and “Summary
Report on Prices, etc. of Fixed Assets” (Ministry of Internal Affairs and Communications).
For details, please refer to “About analysis of Japan’s logistics facilities stock” on p. 47-48 of this presentation material.

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

0

logistics facilities

less than 40 years old(year)
Source: CBRE K.K.
* Figures calculated as the sum total of the floor area of structures with “warehouse” as the use category and “steel-framed structure,”“reinforced concrete structure” or “steel-framed reinforced concrete structure” as the structure type.

Logistics 71%
Source: CBRE K.K.

Wholesale 20%* Figures are rounded to the whole number.
* The survey is of rental logistics facilities that are held by real estate investment companies, real estate development
companies, etc. and have total floor area of 5,000 m2 or more as of the end of December 2019.

39

5-1. Market Overview [3]Mounting demand due to 3PL business ande-commerce market size expansion

Broader demand for leading-edge logistics facilities

Expansion of the data center market

3PLMarket with Stable Growth

Attracting Delivery Bases of Retail Stores(Convenience Stores/Drug Stores)

Sales of Cloud-related Services in the Data
Center Service Market
Annual average
growth rate(hundred million yen)
35,000Conventional
Net sales

3.2 trillion yen

Manufacturing

Store

Wholesaler(2019-2024 years)(billion yen)
1,500

18.6%

Forecast

30,000Consolidation of scattered logistics bases into a delivery center
25,000

1,000

After
consolidation

20,000Store

Delivery center

Manufacturing500

15,00010,000Integrating Logistics Bases of Manufacturers
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0(year)

Conventional

Source: Monthly Logistics Business(September 2020)

Warehouse for Transportparts(hundred million yen)
210,000

180,000

19.4 trillion yen
Scale of e-commercemarket6.8%

After
consolidation

Consolidation of separately locatedwarehouse for parts, assembly plant andwarehouse for end products into one base
MFLP

2020

2021

2022

2023

2024 (year)

Source: International Data Corporation Japan; “Outlook for Domestic Data Center
Service Market (2020 – 2024)”, dated August 2020.

end products

Retail stores /Consumers

Expanding E-Commerce Market Scale

Transport Warehouse for Transport

Assembly plant

2019

Sales Breakdown of the Data Center
Service Market (2024 Projections)

Transport(%)
8

Non-cloud-related
services

Use as a Mixed-Use Logistics Facility

E-commerce ratio

Leading-edge logistics facilities

634%

150,000
4

Warehouse

120,000

Its intended use includes not only
warehouse, which is its original function,
but also other various uses

2
90,00060,00002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (year)

Assembly andprocessing

Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade andIndustry (Announced on July 22, 2020)• Amounts and percentages indicate the scale of B to C market in the e-commercemarket.
The target of the calculation of e-commerce ratio is limited to the sales field.

Research anddevelopment

OfficeCloud-related
services

66%

Showroom

Other
Product inspection

Inspection,
maintenance and repair

Photographic
studioCall center

Source: International Data Corporation Japan; “Outlook for Domestic Data Center
Service Market (2020 – 2024)”, dated August 2020.

etc…

40

6. Appendix

41

Statement of Income and Balance Sheet
Statement of income

Balance sheet(Unit: million yen)

Item

Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative
service fees
Directors’ compensations
Other operating expenses
Operating income
Non-operating income
Non-operating expenses
Interest expenses
Amortization of investment unit
issuance expenses
Offering costs associated withissuance of investment units
Other
Ordinary income
Profit before income taxes
Income taxes
Profit (Net income)Unappropriated retained earnings(Unit: million yen)

7th fiscal period(ended Jan. 31, 2020)
Actual8th fiscal period(ended Jul. 31, 2020)
Actual

5,064
4,815
248
2,748
2,175
482

6,363
6,110
253
3,482
2,816
584

28

25

5
55
2,315
26
103
59

5
50
2,881
40
186
81

18

33

Short-term borrowings

27

Accounts payable

25
2,238
2,238
0
2,237
2,238

43
2,735
2,735
0
2,734
2,734

Item

Current assets
Cash and deposits
Cash and deposits in trust
Consumption taxes receivable
Other current assets
Non-current assets
Property, plant and equipment

8th fiscal period
7th fiscal period(ended Jan. 31, 2020) (ended Jul. 31, 2020)
ActualActual

4,332

8,249

877

1,460

3,281

4,089

-

2,540

173

158

152,615

199,863

152,546

199,790

68

72

74

131

157,023

208,243

3,639

7,013

266

220

1,600

5,000

580

675

Income taxes payable
Advances received
Other current liabilities
Non-current liabilities

0
851
341
44,32201,116
062,203Long-term borrowings
Tenant leasehold and security
deposits in trust
Total liabilities

41,30057,900

3,022

4,303

47,962

69,216

Total unitholders’ equity

109,060

139,026

107,416

137,143

-593

-851

Other non-current assets
Deferred assets
Total assets
Current liabilities
Operating accounts payable

Unitholders’ capital
Deduction from unitholders’capitalUnitholders’ capital, net

106,822

136,292

Surplus

2,238

2,734

Total net assets

109,060

139,026

Total liabilities and net assets

157,023

208,243

42

Individual Property Income Statement for 8th Fiscal Period(Unit: million yen)

Number of days ofasset management
Lease businessrevenue
Operatingrevenuefrom realestateleasing

Other leasebusiness
revenue

Total

Outsourcing
expenses

GLP/MFLP
Ichikawa
Shiohama

MFLP
Kuki

MFLP
Yokohama
Daikoku

MFLP
YashioMFLP
Atsugi

MFLP
Funabashi
Nishiura

MFLP
Kashiwa

MFLP
Sakai

MFLP
Komaki

MFLP
Hino

MFLP
Hiratsuka

MFLP
Tsukuba

MFLP
Inazawa

MFLP
Atsugi II

MFLP
Fukuoka I

182

182

182

182

182

182

182

182＊1

182

182

182

182

182

182

182

432

444

335

719

30

32

17

462

476

352

42

33

29

MFLP
Prologis
MFLP
Park
Hiroshima I
Kawagoe

MFIP
Inzai

Total

182

-

178

152

357

387

272

6,110

33

25

10

18

253

752

382

398

290

6,363

23

24

53
Not
Not
Not
Not
disclosed*2 disclosed*2 disclosed*2 disclosed*2

29

382

Not
Not
Not
Not
Not
disclosed*2 disclosed*2 disclosed*2 disclosed*2 disclosed*2

Notdisclosed*2

Notdisclosed*2

Utility expenses

15

23

13

21

16

14

9

187

Repair expenses

12

14

4

9

3

0

0

65

Property-related
taxes

39

42

39

16

38

0

0

Other expenses

2

2

1

4

2

1

1

112

116

89

-

-

-

-

105

-

90

-

-

-

-

-

39

36

-

1,155

Depreciation

80

108

88

63

63

50

50

191

88

83

51

95

181

113

56

107

110

78

1,661

Operating income (loss)
from real estate leasing

270

251

174

189

160

133

124

455

124

208

119

175

236

205

92

252

143

228

3,547

350

360

262

253

224

184

174

647

212

292

170

270

417

319

148

359

253

306

5,208

Operatingexpensesfromreal estateleasing

Total

489

29

NOI from real estate leasing[Operating income (loss) fromreal estate leasing +Depreciation])＊1 Acquisition of the 70% and 10% quasi co-ownership interest of MFLP Sakai was made on February 5, 2020 and April 6, 2020, respectively, but the acquisition of the 20% was made in August 2016.
Therefore, the number of days of asset management is indicated as 182 days.
＊2 Not disclosed, because consent has not been obtained from the lessee.

43Appraisal Summary for the End of 8th Fiscal Period(Unit: million yen)
Acquisitiondate

Acquisition
price

End of 8th
fiscal period
Book value

GLP/MFLP Ichikawa Shiohama (50%)

September 2016

15,500End of 7th fiscal period*2(End of Jan. 2020) (a)Change*4(b)-(a)End of 8th fiscal period(End of Jul. 2020) (b)Main factors of change

Appraisal
value

CR*1

Appraisal
value

CR*1

Appraisal
value

CR*1

CR*1

Other

14,97017,9004.0%

17,950

4.0%

50

0.0

-

〇

0

0.0

-

-

MFLP Kuki

August 2016

12,50011,747

14,3004.5%

14,300

4.5%

MFLP Yokohama Daikoku (50%)

August 2016

10,1009,718

10,900

4.4%

10,900

4.4%

0

0.0

-

-

MFLP Yashio

August 2016

9,650

9,226

11,100

4.3%

11,200

4.3%

100

0.0

-

〇

MFLP Atsugi

August 2016

7,810

7,362

9,140

4.5%

9,160

4.5%

20

0.0

-

〇

MFLP Funabashi Nishiura

August 2016

6,970

6,606

7,890

4.4%

7,910

4.4%

20

0.0

-

〇

MFLP Kashiwa

August 2016

6,300

5,950

7,110

4.5%

7,120

4.5%

10

0.0

-

〇

4,760

4.6%

23,60023,352(16,900)

24,200

4.5%

140

- 0.1

〇

-

MFLP Sakai (20%)

August 2016

MFLP Sakai (70%)

February 2020

(4.6%)MFLP Sakai (10%)

April 2020

(2,400)
8,260

7,865

8,570

4.6%

8,580

4.6%

10

0.0

-

〇

*3

12,533

12,297

12,6004.2%

12,600

4.2%

0

0.0

-

-

MFLP Hiratsuka

March 2018

7,027

6,845

7,150

4.5%

7,150

4.5%

0

0.0

-

-

MFLP Tsukuba

December 2018*3

8,781

8,697

10,100

4.9%

10,100

4.9%

0

0.0

-

-

MFLP Inazawa

February 201916,20015,816

16,5004.6%

16,600

4.6%

100

0.0

-

〇

MFLP Atsugi II

February 201913,10012,874

13,5004.3%

13,600

4.3%

100

0.0

-

〇

5,263

5,153

5,430

4.8%

5,430

4.8%

0

0.0

-

-

MFLP Komaki
MFLP Hino (25%)

August 2017*3

February 2018

*3

MFLP Fukuoka I

February 2019

MFLP Prologis Park Kawagoe (50%)

February 2020

14,80014,823(14,800)(4.3%)

14,850

4.3%

50

0.0

-

〇

MFLP Hiroshima I

March 2020

14,48014,534(14,600)(4.9%)

14,800

4.9%

200

0.0

-

〇

MFIP Inzai

August 2016*3

12,22011,94812,8004.6%

12,800

4.6%

0

0.0

-

-

199,790

169,750(218,450)

4.4%(4.5%)

219,250

4.5%

800

- 0.0

-

-

Total/average-

Reference (as of September 16, 2020)
MFLP Ibaraki
MFLP Kawaguchi I
Total/average after acquisition ofproperties to be acquired in the 9th FP
*1
*2
*3
*4
*5

October 2020
(planned)
October 2020
(planned)-

205,094

Amount of difference =Unrealized gain 19,859 million yen*558,90058,900--59,200

4.2%

-

-

-

-

18,50018,500--18,600

4.0%

-

-

-

-

282,494

277,190--

297,050

4.4%

-

-

-

-

CR = Capitalization rate based on direct capitalization method (NCF basis). The average indicates a weighted average based on the appraisal value.
Appraisal value and CR with November 30, 2019, as the appraisal date are indicated in parenthesis for properties acquired in the 8th FP (MFLP Sakai 80%, MFLP Prologis Park Kawagoe 50%, Hiroshima I) at the end of the 7th FP.
In the total/average column, the appraisal value which is the sum of the figures at the end of the 7th FP and the said figures, and the weighted average CR based on the appraisal value are indicated in parenthesis.
The acquisition periods of “MFLP Komaki”, “MFLP Hino”, “MFLP Tsukuba”, “MFLP Fukuoka I” and “MFLP Inzai” are divided into multiple periods, but the initial acquisition dates (Komaki: upon acquisition of 40% quasi co-ownership interest, Hino: upon acquisitionof 15% quasi co-ownership interest, Tsukuba: upon acquisition of 60% quasi co-ownership interest, Fukuoka I: upon acquisition of 81% quasi co-ownership interest, Inzai: upon acquisition of 20% quasi co-ownership interest) are indicated.
Concerning the appraisal value and CR at the end of the 7th FP including the portion acquired in the 8th FP (80% quasi co-ownership interest) for MFLP Sakai, the figures compared with the appraisal value and CR at the end of the 8th FP are indicated.
Book value at the end of 8th fiscal period as of September 16, 2020 indicates planned acquisition price; and appraisal value at the end of 8th fiscal period indicates appraisal value and CR with July 31, 2020, as the date of value.

44

Investment Unit Price Trends/Status of Unitholders
Investment unit price firm since IPO
Investment unit price (closing price)
TSE REIT Index (indexed)(yen)
610,000
560,000
510,000
460,000
410,000
360,000
310,000

IPO issue price: 270,000 yen
260,000
210,000
160,000
2016/7/31/08/02

2016/10/31

2017/1/31

2017/4/30

2017/7/31

2017/10/31

2018/1/31

2018/4/30

2018/7/31

2018/10/31

2019/1/31

2019/4/30

2019/7/31

2019/10/31

2020/1/31

2020/4/30

2020/7/31* The starting point is the price of the first trade at IPO on August 2, 2016.
* The TSE REIT Index is indexed to the August 2, 2016 opening price.

Status of unitholders at end of 8th fiscal period (end of July 2020)
Number of Unitholders and Number of Investment Units
by Type of Unitholder
Number ofunitholders

% of
total

Number ofinvestment units

Major Unitholders

% of
total

Number ofinvestment units

% of
total

Individuals/Other

6,830

92.3%

22,881 units

5.2%

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

86,056 units

19.5%

Financial institutions

143

1.9%

254,073 units

57.6%

Custody Bank of Japan, Ltd. (trust account)

58,544 units

13.3%

Other Japanese
corporations

183

2.5%

34,016 units

7.7%

Mitsui Fudosan Co., Ltd.

28,900 units

6.6%

Non-Japanese

226

3.1%

119,892 units

27.2%

21,965 units

5.0%

Securities companies

20

0.3%

10,138 units

2.3%

21,705 units

4.9%

Total

7,402

100.0%

441,000 units

100.0%

217,170 units

49.2%

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

45

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

Fiscal 2013

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2021

FY2022 or after
TBD

100,530m2
105,019m2
40,728m2
73,153m2
125,127m2
30,947m2
40,942m2
40,478m2
205,200m2
31,242m2
197,746m2
32,199m2
33,061m2
40,597m2
72,883m2
230,435m2
62,484m2
48,976m2
117,337m2
80,334m2
68,427m2
227,003m2
49,838m2
48,141m2
45,512m2
49,801m2
55,094m2
43,919m2
75,823m2
35,274m2
30,906m2
21,823m2
268,392m2
72,827m2
183,991m2
Approx. 124,400m2
Approx. 175,000m2－－

Acquisition by MFLP-REIT(planned)● (50%)● (50%)●●●●●●● (25%)
●
－
●
●
●
●
●
●
●
● (50%)
－
●
－
●
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

Properties defined in “Right of firstlook and preferential negotiationrights agreement”/Acquisition under
exclusive negotiation*
－
－
－
－
－
－
－
－
● (75%)
－
－
－
－
－
－
－
－
－
－
－
－
●
－
●
●
－
－
●
●
●
Acquisition under● exclusive negotiation *
NEW
●
●
NEW
●
● (60%) NEW－－－－

Flow regarding provisionof right of first look information

Propertydeveloped/operated by
Mitsui Fudosan

Presentation of list of properties
defined in “Right of first look andpreferential negotiation rights
agreement”

Prioritized provision of
information upon sale

Preferential negotiation
periodAcquisition of property
by MFLP-REIT

MFLP-REIT

Fiscal 2020

MFLP Yokohama Daikoku
GLP/MFLP Ichikawa Shiohama
MFLP Yashio
MFLP Kuki
MFLP Sakai
MFLP Funabashi Nishiura
MFLP Atsugi
MFIP Inzai
MFLP Hino
MFLP Kashiwa
MFLP Funabashi I
MFLP Fukuoka I
MFLP Hiratsuka
MFLP Komaki
MFLP Inazawa
MFLP Ibaraki
MFLP Tsukuba
MFLP Atsugi II
MFLP Prologis Park Kawagoe
MFIP Haneda
MFLP Hiroshima I
MFLP Funabashi II
MFLP Kawaguchi I
MFLP Hiratsuka II
MFLP Yokohama Kohoku
MFLP Kawasaki I
MFLP Tachikawa Tachihi
MFLP Osaka I
MFLP Yachiyo Katsutadai
MFLP Tosu
MFIP Inzai II
MFLP Tokorozawa
MFLP Funabashi III
MFLP Osaka Katano
MFLP Ichikawa Shiohama II
MFLP Ebina
Tokyo Rail Gate EAST
Other data centers (1 property)
Other overseas properties (2 properties)

Total floor area

Mitsui Fudosan

Fiscal 2014

Property developed/operated* For further details, please refer to [Major properties developed/operated by Mitsui Fudosan], [Properties defined in “Right of first look and preferential negotiation rights agreement”] and [Acquisition under exclusive negotiation] in theNotes on Matters Stated in this Document on p. 47-48.
*1 In the case of MFLP Yokohama Daikoku, it is the fiscal year in which the property began to be under its operation. The fiscal year of completion of the property is fiscal 2009. The fiscal year of completion of the existing building of
MFLP Tsukuba is fiscal 2010.
*2 The percentage figure in parentheses is the percentage of quasi co-ownership interest in the portfolio asset.

46

Notes on Matters Stated in this Document* Unless otherwise specified, figures indicated in whole number are rounded down to the nearest specified unit and figures with a decimal point are rounded to the nearest indicated unit.
* Unless otherwise specified, descriptions are made based on the following.
[Major properties developed/operated by Mitsui Fudosan]
Based on materials released by Mitsui Fudosan on May 21, 2018, and November 5, 2019. Indicates the area recorded in the property registry or the certificate of completion for completed properties, the area stated on the building confirmation certificate foruncompleted properties that are properties defined in “Right of first look and preferential negotiation rights agreement,” and the area stated in the material published by Mitsui Fudosan for all other properties. The area for uncompleted properties is the plannedarea and is subject to change.
“Cumulative total investment size” includes properties under development or scheduled to be developed as of each date of publication and their (planned) investment amount. Properties scheduled to be developed include those targeted or planned by the Mitsui
Fudosan Group as of the date of this document and are subject to change or cancellation.
Furthermore, there are no details concerning the timing of completion of the aforementioned investments that had been finalized as of the date of this document. Nor does MFLP-REIT guarantee or promise that the plans be materialized.
“Tokyo Rail Gate EAST” is included in “32 facilities 480.0 billion yen 2,700,000 m2” in terms of the number of facilities and total floor area, but not in term of the amount. Mitsui Fudosan has no plans to acquire the property as of the date of this document.
[Properties defined in “Right of first look and preferential negotiation rights agreement”]“Properties defined in “Right of first look and preferential negotiation rights agreement” refers to properties on the list of right of first look and preferential negotiation properties pertaining to real estate subject to provision of information, presented based on the
Right of first look and preferential negotiation rights agreement executed between the Asset Management Company and Mitsui Fudosan upon the Asset Management Company managing MFLP-REIT’s assets. “Real estate subject to provision of information”
refers to, among real estate, etc. held by Mitsui Fudosan or a real estate fund which accepted investment or monetary contribution of Mitsui Fudosan, those which are judged to have the possibility to be sold to MFLP-REIT at Mitsui Fudosan’s discretion.
The (number of) subject properties and ratio/total floor area indicate figures after considering co-ownership interest (or quasi co-ownership interest).
[New issuance]
The number of investment units is the sum of the number of investment units issued in domestic public offering and overseas offering in the 4th follow-on offering (96,190 units) and the maximum number of investment units issued in the Third-Party Allotment(4,810 units).
Issue amount is the estimated amount gained by multiplying the amount calculated based on the closing price in regular trading in the Tokyo Stock Exchange as of August 31, 2020 (Monday), by the number of investment units issued and outstanding.
[Acquisition under exclusive negotiation]
Acquisition under exclusive negotiation indicates “MFIP Inzai II” for which a Memorandum of Understanding to faithfully discuss the acquisition by MFLP-REIT on around March 16, 2021, has been concluded with the current owner (Mitsui Fudosan).
[Preliminary value indicated in the preliminary evaluation report]
Appraisal value of uncompleted buildings, etc. is calculated using certain assumptions by assuming the status of buildings before completion.
Moreover, it may differ from the appraisal value in the real estate appraisal report that will be acquired after the completion of buildings, due to the occurrence of factors that need to be revised in the said assumption or other reasons.
[Four Roadmaps to Stable Growth and Trajectory of Growth] / [Steady Implementation of Four Roadmaps] / [Financial Highlights] / [Our Portfolio (After acquisition of properties to be acquired in the 9th FP)]“LTV”
LTV = Balance of interest-bearing debt ÷ Total assets“Distribution per unit (DPU) ”
Includes distribution in excess of earnings. (Number of investment units issued and outstanding: 262,774 units at the end of 5th fiscal period / 379,000 units at the end of 6th and 7th fiscal periods / 441,000 units at the end of 8th fiscal period/542,000 units(estimate) at the end of 9th/10th fiscal period)“Market cap”
FP ended January 2020 (End of 7th FP): Closing price of the investment unit as of the end of the FP ended January 2020 (525,000 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended January 2020
(379,000 units)
FP ended July 2020 (End of 8th FP): Closing price of the investment unit as of the end of the FP ended July 2020 (577,000 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended July 2020 (441,000 units)“After the 4th follow-on offering (estimate)”: Closing price of the investment unit in regular trading as of August 31, 2020 (530,000 yen) x total number of investment units to be issued after the 4th follow-on offering (542,000 units)“Total floor area”
Figures based on the record on the register, rounding down to the nearest whole number.
“Appraisal value”
Appraisal values corresponding to the quasi co-ownership interest ratio of each property with July 31, 2020 (end of 8th FP), as the appraisal date are indicated.
“Adjusted forecast NOI yield”
Annualized after subtracting the fixed asset tax and city planning tax for the properties acquired in the 8th fiscal period and the properties to be acquired in the 9th fiscal period from the NOI assumed in the earnings forecast for the 9th and 10th fiscal periods aswell as adjusting special factors, and dividing it by the total acquisition price.
Subtotal (average) and total (average) for each category indicate the weighted average based on acquisition price.
“Appraisal NOI yield”
Ratio of net operating income under direct capitalization method stated in real estate appraisal report (“Appraisal NOI”) to acquisition price. “Average NOI yield” and subtotal (average) and total (average) for each category indicate the weighted average basedon acquisition price.
“Appraisal NOI / Appraisal value”
Appraisal NOI divided by appraisal value. The subtotal (average) and total (average) of “Appraisal NOI / Appraisal value” for each category indicate the weighted average based on the appraisal value.
“Building age”
Number of years from the date of construction of the main building of a property acquired in the register to July 31, 2020.
“Average building age” and subtotal (average) and total (average) indicate the weighted average based on the total floor area, considering the quasi co-ownership interest of each property.

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Notes on Matters Stated in this Document“Top 5 property ratio”
The sum of the acquisition prices of the five largest properties as a percentage of the total acquisition price.
“Top 5 tenant ratio (logistics facilities only)”
The total leased area of top five tenants as a percentage of the total leased area.
“Acquisition capacity”
Amount of debt that can be additionally financed supposing that LTV is raised to 50%. The amount indicated is rounded to the nearest billion yen.
“NAV per unit”“End of FP ended January 2020 (End of 7th FP)”: (Net assets as of the end of FP ended January 2020 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended January 2020) / Number of investment units
issued and outstanding (379,000 units)“End of FP ended July 2020 (End of 8th FP)”: (Net assets as of the end of FP ended July 2020 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended July 2020) / Number of investment units issued andoutstanding (441,000 units)“After the 4th follow-on offering (estimate)” and “After acquisition of properties to be acquired in the 9th FP”: (NAV as of the end of FP ended July 2020 (End of 8th FP) + Unrealized gain on appraisal basis of properties to be acquired in 9th FP (*) + Total
issue amount (estimate) of the 4th follow-on offering (50,500,000 yen) /Total number of MFLP-REIT’s investment units to be issued after the 4th follow-on offering (542,000 units)*Unrealized gain on appraisal basis of properties acquired in 9th FP: (total) Appraisal value of properties to be acquired in 9th FP – (total) Acquisition price of properties to be acquired in 9th FP.
“Unrealized gain”
A period-end book value is indicated for properties held by MFLP-REIT as of the end of 8th FP, and a figure obtained by subtracting the total of acquisition prices from appraisal value is indicated for properties acquired in the 9th FP.
“Occupancy rate”
Leased area as a percentage of leasable area. Based on concluded agreements as of July 31, 2020.
[Method of calculation of cash distribution based on FFO]
(1) Distribution of earnings is determined based on profit (net income) for the applicable operating period.
(2) FFO for the applicable operating period is calculated by adding depreciation to profit (net income) (excluding gain or loss on sale of real estate, etc.) for the applicable operating period.
(3) The amount distributable including distribution in excess of earnings is calculated based on a threshold of an amount equivalent to 70% of FFO for the applicable operating period.
(4) The amount distributable in excess of earnings is calculated by deducting the amount of distribution of earnings (excluding gain or loss on sale of real estate, etc.) from the amount distributable including distribution in excess of earnings.
(5) The amount of continuous distribution in excess of earnings is determined based on a comprehensive judgment on the basis of the amount distributable in excess of earnings.
(6) The distribution in excess of earnings determined in 5. above is to be continuously made each fiscal period in principle, in addition to the distribution of earnings determined in 1. above.
In addition, in cases where the distribution amount for distributions per unit is expected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units, etc., a one-off
distributions in excess of retained earnings may be executed in order to standardize the amount of the distributions per unit.
[Calculation of average lease term]"Average lease term" is calculated using the weighted average of the lease terms stated in concluded lease agreements as of July 31, 2020, with rents.
Concerning the subject lease agreements, when a new lease agreement ("re-contract") starting on the day immediately following the expiration date of the respective lease agreement is concluded with the same lessee, lease term is deemed to befrom the start of the initial lease agreement to the expiration date of the re-contract, and used in the calculation as such.
[Calculation of remaining lease contract period]"Average lease term" is calculated using the weighted average of the remaining period in the lease terms after July 31, 2020 with rents based on the concluded lease agreements as of July 31, 2020.
Concerning the Subject Lease Agreements, when the re-contract is concluded with the same lessee, the remaining period shall be calculated assuming that the lease period continues from July 31, 2020, to the expiration date of the re-contract.
[New borrowing associated with the 4th follow-on offering]
New borrowing associated with the 4th follow-on offering is subject to change by the time of final borrowing after taking into consideration the amount of proceeds, etc. from the 4th follow-on offering. The figures in “Financial management with anemphasis on stability” on P.29-30 is subject to change due to the above change.
[Annual Power Generation by Solar Panel]
Actual power generated between January 2019 and the end of December at 10 properties with photovoltaic panel facilities and owned by MFLP-REIT as of July 31, 2020, is indicated.
The total power generation amount of the entire properties is indicated regardless of ownership ratio held by MFLP-REIT.
[About analysis of Japan's logistics facilities stock]① The "Analysis of Japan's logistics facilities stock" graph is of estimates by CBRE K.K. based on the Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism's "Building Starts" and the Ministry of Internal Affairs andCommunications' "Summary Report on Prices, etc. of Fixed Assets."② In the "Analysis of Japan's logistics facilities stock" graph, "Leading-edge logistics facilities" is the figure of each year's sum total of the gross floor area of leading-edge logistics facilities (refers to rental logistics facilities that have gross floor areaof at least 10,000 m2 and, in principle, ceiling height of at least 5.5 meters, floor load capacity of at least 1.5 tons/m2 and column spacing of at least 10 m).
③ In the "Analysis of Japan's logistics facilities stock" graph, "Estimate for logistics facilities 40 years old or older" is the figure of each year's overall stock estimate (as covered by note 5; the same shall apply hereinafter) minus the sum total of thefloor area of which construction was started within the past 40 years.
④ "Estimate for logistics facilities less than 40 years old" is the figure of the overall stock estimate minus the floor area of "Estimate for logistics facilities 40 years old or older" and "Leading-edge logistics facilities."⑤ The overall stock estimate is the sum total of "Estimate for logistics facilities 40 years old or older," "Estimate for logistics facilities less than 40 years old" and "Leading-edge logistics facilities."⑥ In the "Analysis of Japan's logistics facilities stock" graph, "Share of leading-edge logistics facilities" is each fiscal year's "Leading-edge logistics facilities" expressed as a percentage of the overall stock estimate (gross floor area basis).
⑦ In the "Analysis of Japan's logistics facilities stock" graph, "Share of logistics facilities 40 years old or older" is each fiscal year's "Estimate for logistics facilities 40 years old or older" expressed as a percentage of the overall stock estimate (grossfloor area basis).
⑧ "Gross floor area" is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed to be completed after one year has elapsed from construction
start. Accordingly, gross floor area may not match the floor area on the building confirmation certificate, construction completion drawing or register.

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

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MEMO

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