7th Fiscal Period(Fiscal Period Ended January 31, 2020)

Investor Presentation Material
March 16, 2020

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

Table of Contents
1. Basic Strategy of MFLP-REIT (1)5. Market Overview

1-1 Trajectory of Growth of Mitsui Fudosan’s Logistics ……
Facilities Business and 3rd Follow-On Offering

P3

2-1 Four Roadmaps to Stable Growth andTrajectory of Growth……

2-2 Steady Implementation of Four Roadmaps……

P6• Statement of Income and Balance Sheet…… P34…… P35P7• Individual Property Income Statementfor 7th Fiscal Period• Appraisal Summary for the End of 7th Fiscal Period…… P36• Initiatives for ESG…… P37

3. Financial Summary

3-3 8th Fiscal Period (Ending July 2020) Earnings
Forecast
3-4 (Reference) Distribution after adjustment of
temporary effects…… P29

6. Appendix

2. Basic Strategy of MFLP-REIT (2)

3-1 Financial Highlights
3-2 7th Fiscal Period (Ended January 2020) P/L

5-1 Market Overview…… P10…… P11…… P12• Initiatives for ESG…… P38- Environmental Principles and Initiatives for Environment…… P13• Initiatives for ESG- Initiatives for Governance with Consideration
for Unitholders’ Interests

4. Management Status of MFLP-REIT• Initiatives for ESG- Initiatives for Society…… P39…… P40• Investment Unit Price Trends/Status of Unitholders…… P41…… P42… P19• Mitsui Fudosan’s Major Development/Operation
Track Record… P20• Notes on Matters Stated in this Document…… P43• Disclaimer…… P45

4-1 Our Portfolio…… P154-2-1 Location… P17

4-2-2 Quality
4-2-3 Balance

4-3 External Growth…… P21

4-4 Internal Growth…… P23

4-5 Financial Strategy…… P25

4-6 Unitholder Relations…… P271

1. Basic Strategy of MFLP-REIT (1)
MFLP-REIT aims to maximize unitholder value through a strategic partnershipwith Mitsui Fudosan, a major property developer that leverages the comprehensive
strengths of its corporate group to create value in its logistics facilities21-1. Trajectory of Growth of Mitsui Fudosan’s Logistics
Facilities Business and 3rd Follow-On Offering [1 of 2]
Development sites securing capability through its corporate real estate (CRE) strategy
Proposal of
CRE strategies

Various CRE needs of client firms
Re-establishment ofcorporate logistics

Utilization of idle land

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

Development ofcorporate infrastructure

Sale ofreal estate, etc.

Develop high-quality properties in prime locations

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

Cumulative total investment size as of November 201940 facilities 570.0 billion yen*
Cumulative total investment size as of May 2018

32 facilities 480.0 billion yen*Transition to “Logistics
Properties Business
Division” at Mitsui
Fudosan

MFLPREIT IPO

Mitsui Fudosan
established the Logistics
Properties Department

Fiscal2012
平成24年度Fiscal2013
平成25年度Fiscal2014
平成26年度Fiscal2015
平成27年度Fiscal 2016平成28年度（予定）*For further details, please refer to “Major properties developed/operated by Mitsui Fudosan” on p. 43.

Fiscal 2017平成29年度（予定）

Fiscal 2018
平成30年度（予定）

Fiscal 2019平成31年度（予定）(planned)

Fiscal 2020
平成32年度（予定）(planned)

Fiscal2021 or after
平成34年度（予定）(planned)31-1. Trajectory of Growth of Mitsui Fudosan’s Logistics
Facilities Business and 3rd 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 FudosanGroup’s broad client network

Improving the efficiency of operations

MFLP-REIT
Addressing BCP, etc.

Office building
business
Approx. 3,000 firms *Retail facility businessApprox. 2,300 firms *Logistics firm
(3PL operator, etc.)

Strong relationships withleading 3PL operators

Evolution ofsolutions-based
asset management*Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year ended March 31, 2019

Labor shortage
Anticipation of future rises
in delivery costs
Responding to automation

Stably-operated as leasing progress

Construction not completed: 420,000 m2

Construction completed: 760,000 m2

NEW

Properties defined in “Right of firstlook and preferential negotiation rights
agreement” *MFLP Hino (75%)

10 properties 1,180,000 m

MFLP Funabashi II

MFLP Ibaraki

MFLP Osaka I

NEW

MFLP Yachiyo Katsutadai

NEW

NEW

2

MFLP Kawaguchi I

MFLP Hiratsuka II

MFLP Yokohama Kohoku

MFLP Tosu

MFLP Funabashi III

Further
expansion ofproperties
defined in “Rightof first look andpreferential
negotiation rights
agreement”

Properties acquired in the 8th FP

MFLP-REIT’s asset size
(After acquisition of properties acquiredin the 8th FP)

18 properties 950,000 m
205.0 billion yen
Location

Quality

2

Balance

3rd follow-on
offering
Number of newly issued
investment units
62,000 units(29.7 billion yen)
Number of investment
units issued andoutstanding after
follow-on offering
441,000 units

Rampway

Slope

Rampway

Continuous
external growth
MFLP Prologis Park
Kawagoe (50%)

MFLP Hiroshima I

MFLP Sakai (80%)

Acquisition price 48.3 billion yen*For further details, please refer to “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 43.

4

2. Basic Strategy of MFLP-REIT (2)52-1. Four Roadmaps to Stable Growth and Trajectory of GrowthFiscal 2016 - Fiscal 2019

Fiscal 2020
7th fiscal
period

1st – 6th fiscal periods

8th fiscal
period9th fiscal
period3rd follow-on offering
2nd follow-on offering
1st follow-on offering
January 2019
January 2018
January 2020
Acquisition with18 properties
Acquisition withborrowed funds, etc.
16 properties
borrowed funds, etc.
December 2018
Target asset size
August 2017
Achieved
12 properties 13 properties
200 billion yen
10 properties
9 properties
billion yen

78.7

98.3

103.5

156.7

205.0

billion yen

billion yen

billion yen

billion yen

billion yen

LTV*

End of 1st
fiscal period

End of 2nd
fiscal period

End of 3rd
fiscal period

End of 4th
fiscal period

End of 5th
fiscal period

24.5%

21.6%

22.5%

23.9%

26.8%

Distribution
per unit (DPU)
1st fiscal
period2nd fiscal
period5,198 yen

5,346 yen

3rd fiscal
period5,563 yen

4th fiscal
period5,832 yen

5th fiscal
period6,105 yen

10th fiscal period or after
Aim to continuously
acquire properties,

Asset size

755億円75.5

Fiscal 2021 or after

focused onhigh-quality properties
covered by “Right of firstlook and preferential
negotiation rights
agreement”

MFLP Prologis Park Kawagoe (50%)
MFLP Hiroshima I
MFLP Sakai (80%)
End of 8th
End of 9th
End of 7th
fiscal period
fiscal period
fiscal period(Forecast)(Forecast)End of 6th (January 31, 2020)(July 31, 2020) (January 31, 2021)
fiscal period

Fund procurement andLTV management
optimal for the expansionof acquired asset size

29.1%

6th fiscal
period27.3%

7th fiscal
period30.6%

8th fiscal
period(Forecast)

28.9%

Aim for further
expansion ofasset size

300.0
billion yen

Medium-termtarget asset size

Medium- tolong-term
stabilized LTV level

40% to 50%
range

9th fiscal
period(Forecast)Continuous DPU growththrough leverage effects

6,496 yen

6,584 yen

6,890 yen

Growthpotential

7,217 yen

354,492 yen

Market cap *Trends of NAV
per unit*
286,378 yen
273,318 yen
End of 1st
fiscal period

End of 2nd
fiscal period

326,618 yen
305,914 yen

314,345 yen

292,424 yen
End of 3rd
fiscal period

End of 4th
fiscal period

End of 5th
fiscal period

318,471 yen
End of 6th
fiscal period

76.1

71.5

84.4

84.7

90.7

149.1

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

End of 7th
fiscal period

After 3rdfollow-on offering(as of the end of
February 2020)

Expansion of market cap
through public offerings, etc.

198.9

212.7

billion yen

billion yen

September Inclusion in EPRA/NAREIT Index
2019*For further details, please refer to “Four Roadmaps to Stable Growth and Trajectory of Growth” on p. 43.

6

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

Improvement of portfolio quality and stability

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

Properties acquired in the 8th FP

After acquisition of properties
acquired in the 8th FP

No. of properties/Total floor area *16 properties / 720,000 m2

3 properties / 220,000 m2

18 properties / 950,000 m2

Asset size

156.7 billion yen

48.3 billion yen

205.0 billion yen

Adjusted forecast NOI yield *

5.2%

5.1%

5.2%

Average NOI yield *

4.9%

4.7%

4.9%

Average building age *5.0 years

2.8 years

4.5 years

Top 5 property ratio *

44.6%

41.2%
Further diversification

Top 5 tenant ratio (logistics facilities only) *

41.2%

33.5%

LTV Management Expansion of acquisition capacity
End of (July 31, 2019)
6th fiscal period

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)(Forecast)

LTV *

29.1%

27.3%

30.6%

28.9%

Acquisition capacity *(with LTV at 50%)

67.0 billion yen

71.0 billion yen

80.0 billion yen

85.0 billion yen*For further details, please refer to “Four Roadmaps to Stable Growth and Trajectory of Growth” on p. 43.

7

2-2. Steady Implementation of Four Roadmaps [2 of 2]
Continuous DPU* Growth
7,217

7,200
6,700

DPU (yen)( ) EPU (yen)

5,832

5,700

5,563
5,346

5,200
4,700

5,963

(5,956)(5,905)(5,811)(5,497)

5,493

5,198

(6,353)(5,783)

5,745

6,541

6,415

6,105

6,852

6,584

6,496

Property acquisition
considering portfolio6,200
yield

Issuance of new
investment units(Equity)

7,152

6,890

(5,288)
5,190
4,923

(5,142)(4,955)4,200

LTV management 3,700
Actual(Debt)FP ended Jan. 2017
Forecast *1

Forecast *2Actual

Forecast *3 Actual

Forecast * 4Actual

Forecast *5 Actual

Forecast *6 Actual

Forecast *7Actual

Forecast *8 Forecast *9

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

*9 Announced
on Mar. 13, 2020

Expansion of Market Capitalization

Enhancement of stability of investment unit price and liquidity

End of (July 31, 2019)
6th fiscal period

End of (January 31, 2020)
7th fiscal periodMarket cap *149.1 billion yen

198.9 billion yen

T3d=XLoC

NAV per unit *318,471 yen

326,618 yen

354,492 yen

After 3rd follow-on offering

212.7 billion yen*As of the end of February 2020

*After acquisition of properties acquired in the 8th FP

Before inclusion(from September 20, 2018 to January 31, 2019)

Average daily trading value

288 million yen*For further details, please refer to “Four Roadmaps to Stable Growth and Trajectory of Growth” on p. 43.

FTSE EPRA/NAREIT
Global Real Estate Index
Inclusion in FTSE EPRA/NAREIT Global
Real Estate Index (September 20, 2019)

After inclusion(from September 20, 2019 to January 31, 2020)

817 million yen

83. Financial Summary(7th fiscal period: from August 1, 2019 to January 31, 2020)9

3-1. Financial Highlights

Asset

End of 7th fiscal
period (Actual)

After acquisition ofproperties acquiredin the 8th FP

Asset size

16 properties

18 properties(total amount ofacquisition price)156.7 billion yen

205.0 billion yen

16 properties

18 properties

Appraisal value *12properties

169.7 billion yen

218.4 billion yen

105.1

Unrealized gain *17.2 billion yen

17.5 billion yen

End of 7th fiscal
period (Actual)

End of 8th fiscal
period (Forecast)Appraisal value (billion yen)

End of 4th
fiscal period

Debt

42.9 billion yen

62.9 billion yen

LTV *

27.3%

30.6%

16
properties

16
properties

167.6

169.7

End of 6th
fiscal period

End of 7th
fiscal period

13
properties

218.4

112.1

End of 5th
fiscal period

LTV

After acquisitionof properties
acquired in the
8th FP

30.6%
26.8%

Balance ofinterest-bearing
debt

18
properties

29.1%

28.9%

27.3%

23.9%

End of 4th
End of 5th
End of 6th
End of 7th End of 8th
End of 9th
fiscal period fiscal period fiscal period fiscal period fiscal period fiscal period(Forecast)(Forecast)Distribution per unit (yen)Distribution
per unit *7th fiscal period(Actual)6,584 yen

8th fiscal period(Forecast)

7,217
6,890

6,890 yen

6,496

6,584

6,105

EquityEnd of 7th fiscal period(Actual)After acquisition ofproperties acquiredin the 8th FP

326,618 yen

354,492 yen

NAV per unit **For further details, please refer to “Financial Highlights” on p. 43.

5,832

4th
5th
6th
7th
8th
fiscal period fiscal period fiscal period fiscal period fiscal period(Forecast)

9th
fiscal period(Forecast)103-2. 7th Fiscal Period (Ended January 2020) P/L
6th period
Actual(a)

7th period
Forecast(Mar. 15, 2019)

7th period
Actual(b)

Difference(b)-(a)Operating revenue

4,969

5,077

5,064

94

Operating expenses

2,650

2,779

2,748

98

(Unit: million yen)

Of which, Depreciation(those related to properties only)
Operating income

Main breakdown of difference

Operating revenue
Increase due to full-period operation of properties
acquired in the 6th FP+154(MFLP Hino (10%), Tsukuba (40%), Inazawa, Atsugi II, Fukuoka I, MFIP
Inzai (80%))

1,314

1,327

1,326

12

2,318

2,298

2,315

-3

Non-operating income

3

-

26

23

Non-operating expenses

118

82

103

-15

Decrease in rent income due to tenant move-out at“GLP/MFLP Ichikawa Shiohama”
Decrease in photovoltaic power generation facilities
rent revenue (excluding properties acquired in the 6th FP)
Increase in other operating revenue

- 38
- 34
+12

Operating expenses
Increase due to full-period operation of properties
acquired in the 6th FP+49(MFLP Hino (10%), Tsukuba (40%), Inazawa, Atsugi II, Fukuoka I, MFIP
Inzai (80%))

Ordinary income

2,203

2,215

2,238

35

Profit (Net income)

2,202

2,214

2,237

35

Increase in asset management fee+42Increase in other operating expenses+5

Non-operating income
Increase in insurance income

Distribution per unit (DPU) (yen)

6,496

6,541

6,584

+22

88

Non-operating expenses
Of which,
Distribution of earnings per unit (EPU) (yen)

5,811

5,843

5,905

94

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

685

698

679

-6

Distribution in excess of earnings
expressed as a percentage of depreciation

19.7%

19.9%

19.4%

-

Absence of offering costs associated with issuanceof investment units- 32

Increase in disaster restoration expenses+17<Reference>
Formula for distribution per unit based on FFO *FFO＝Source of funds for＝
distribution

Average occupancy rate during the period*1

100%

100%

* For further details, please refer to “Method of calculation of cash distribution based on FFO” on p. 44.
*1 The simple average of the occupancy rates as of the end of each month in each fiscal period is indicated.

99.4%

-

Distribution
per unit＝

Profit(Net income)
① FFO

+

Depreciation, etc.

…①

×

70%

…②

② Source of funds for÷
distribution

Number ofinvestment units
issued andoutstanding11

3-3. 8th Fiscal Period (Ending July 2020) Earnings Forecast(Unit: million yen)

Operating revenue

7th period
Actual(a)

8th period
Forecast(b)

Difference(b)-(a)

5,064

6,381

1,317

Of which, Depreciation(those related to properties only)
Operating income

2,748

3,600

852

1,326

1,714

387

2,315

2,780

464

26

33

7

6,665

Operating revenue
Increase due to properties acquired in the 8th FP

Operating expenses+1,291(MFLP Prologis Park Kawagoe (50%), Hiroshima I, Sakai (80%))

Increase in photovoltaic power generation facilities rent
revenue (excluding properties acquired in the 8th FP)+42

Decrease in other operating revenue- 16

Non-operating expenses

103

186

82

Ordinary income

2,238

2,627

389

Profit (Net income)

2,237

2,626

389

Distribution per unit (DPU) (yen)

6,584

6,890

306

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

5,905

5,956

51

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

679

934

255

Distribution in excess of earnings
expressed as a percentage of depreciation

19.4%

24.0%

-

Average occupancy rate during the period*1

99.4%

99.7%

-

1,745

+565

-

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

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

3,735*2

2,929

Operating expenses
Increase due to properties acquired in the 8th FP

Non-operating income<Reference>
9th period
Forecast

Main breakdown of difference+155(MFLP Hino (10%), Tsukuba (40%), Inazawa, Atsugi II, Fukuoka I,
MFIP Inzai (80%))

127

Increase in asset management fee+79

Increase in other operating expenses+52

Non-operating expenses

2,802
2,801

Interest expenses+24

Offering costs associated with issuance ofinvestment units+27

Amortization of investment unit issuance
expenses+15

Other non-operating expenses

+16

7,217
6,353

*1 The simple average of the occupancy rates as ofthe end of each month in each fiscal period isindicated.
*2 The fixed asset tax and city planning tax (170 million
yen) for the properties acquired in the 8th FP(MFLP
Prologis Park Kawagoe 50％, MFLP Hiroshima I,
MFLP Sakai 80％) is not included and will be recorded
in and after the 10th FP.

864
21.8%

100%

12

3-4. (Reference) Distribution after adjustment of temporary effects
The right chart is a graph which shows the comparison of the estimated values of
distribution after adjustment of temporary effects estimated by making the following
adjustments based on the forecasted figures for the 8th fiscal period (ending July2020)and 9th fiscal period (ending January 2021) announced on March 13, 2020.
1. As for the property leasing business revenues and property leasing business
expenses for the properties acquired in the 8th FP, it is assumed that full-period
operation will be implemented in the 8th fiscal period (ending July 2020) and 9th
fiscal period (ending January 2021).

FP ending July 2020(8th FP)
Forecasted DPU, etc.

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

(yen)
8,000

2. It is assumed that property-related taxes including fixed asset tax and city
planning tax for the properties acquired in the 8th FP will occur from the
beginning of the 8th fiscal period (ending July 2020), and that 170 million yen will
be recorded as expenses in the 8th fiscal period (ending July 2020) and 9th fiscal
period (ending January 2021).
3. 27 million yen of expenses related to the issuance of new investment units which
will temporarily occur in the 8th fiscal period (ending July 2020) due to the 3rd
follow-on offering is excluded from non-operating expenses.
4. The interest expenses of borrowings which fluctuate due to the adjustment of the
management period of properties acquired in the 8th FP have been added to nonoperating expenses.
5. Expenses linked to factors such as operating income and profit (net income)which fluctuate due to the above adjustments.
As a specific example, it is assumed that management fee will increase by 21
million yen in the 8th fiscal period (ending July 2020) and decrease by 28 million
yen in the 9th fiscal period (ending January 2021).

Moreover, such DPU after adjustment of temporary effects (estimate) does not
aim to estimate distributions for a specific calculation period, and does nothave the meaning as the forecast of distributions, etc. during a specificcalculation period. DPU after adjustment of temporary effects (estimate) is not
an indicator stipulated in the corporate accounting standards (“Japanese
GAAP”) which is generally accepted in Japan, and shall not be taken into
consideration as an alternative indicator of other indicators indicated inconformity with the Japanese GAAP. Furthermore, DPU after adjustment of
temporary effects does not guarantee whether or not distribution will be madein the future as well as the amount of such distribution in any sense. Please
note that the actual DPU during the calculation period for the 8th fiscal period(ending July 2020)and 9th fiscal period (ending January 2021) may differ
significantly from the DPU after adjustment of temporary effects (estimate).

7,500

7,217
7,075

7,035

6,890

7,000

6,500

6,000

5,500

5,000
~
~
4,500
0
Forecast
madethis timeAfteradjustment of
temporaryeffects

Forecast
madethis timeAfteradjustment of
temporaryeffects*Revenue in even periods and odd periods differ due to seasonal factors. Moreover, the difference of rent forphotovoltaic power generation facilities, which is the main seasonal factor, between the 8th fiscal period(ending July 2020) and 9th fiscal period (ending January 2021) is assumed to be approximately 47 million yen.

13

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. Unitholder Relations144-1. Our Portfolio [1 of 2] (After acquisition of properties acquired in the 8th FP)
Stable portfolio with investment focused on MFLPs—leading-edge logistics facilities
developed by Mitsui Fudosan—of relatively young building age
Total acquired assets

Adjusted forecast NOI yield *Average appraisal NOI yield *Average building age *Occupancy rate *18 properties / 205.0 billion yen

5.2% (after depreciation: 3.5%)

4.6%

4.5 years

99.3%

Category

Logistics
facilities

Propertyno.

Property nameLocation

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

Adjusted
forecast
NOI yield *(%)

NOI yield *(%)

Appraisal
NOI yield *
(%)

L-1

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

Ichikawa,
Chiba

15,50017,900

4.9

4.7

4.1

105,019(52,509)

6.0

87.6

L-2

MFLP Kuki

Kuki,
Saitama

12,50014,300

5.8

5.3

4.6

73,153

5.6

100

L-3

MFLP Yokohama Daikoku(50% quasi co-ownershipinterest)

Yokohama,
Kanagawa

10,10010,900

5.1

5.0

4.6

100,530(50,265)

10.8

100

L-4

MFLP Yashio

Yashio,Saitama

9,650

11,100

5.4

5.1

4.5

40,728

5.9

100

L-5

MFLP Atsugi

Aiko,
Kanagawa

7,810

9,140

5.8

5.5

4.7

40,942

4.9

100

L-6

MFLP Funabashi Nishiura

Funabashi,
Chiba

6,970

7,890

5.3

5.2

4.6

30,947

5.0

100

L-7

MFLP Kashiwa

Kashiwa,
Chiba

6,300

7,110

5.3

5.2

4.6

31,242

4.2

100

Sakai,
Osaka

23,60024,060

5.2

4.7

4.6

125,127

5.4

100

L-8

Additional acquisition in the 8th FP(80% quasi co-ownership interest)

MFLP Sakai

Total floor area *1 Building age *(m2)(years)Occupancy
rate *(%)

L-9

MFLP Komaki

Komaki,
Aichi

8,260

8,570

5.1

4.9

4.7

40,597

3.0

100

L-10

MFLP Hino(25% quasi co-ownershipinterest)

Hino,
Tokyo

12,533

12,600

4.6

4.3

4.3

205,200(51,300)

4.3

100

L-11

MFLP Hiratsuka

Hiratsuka,
Kanagawa

7,027

7,150

4.9

4.7

4.6

33,061

3.2

100

15

4-1. Our Portfolio [2 of 2] (After acquisition of properties acquired in the 8th FP)
Category

Propertyno.

L-12

MFLP Tsukuba

Existingbuilding
Annexbuilding

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

Adjusted
forecast
NOI yield *(%)

NOI yield *(%)

Appraisal
NOI yield *(%)

Tsukubamirai,
Ibaraki

8,781

10,100

6.1 ※2
(5.8)

5.8

5.0

Total floor area *1 Building age *(m2)(years)37,027

9.6

25,457

1.8

Occupancy
rate *
(%)

100

L-13

MFLP Inazawa

Inazawa,
Aichi

16,20016,500

5.2

4.8

4.7

72,883

2.7

100

L-14

MFLP Atsugi II

Isehara,Kanagawa

13,10013,500

4.8

4.5

4.4

48,976

1.8

100

L-15

MFLP Fukuoka I

Kasuya,Fukuoka

5,263

5,430

5.6

5.1

5.0

32,199

3.3

100

L-16

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

Kawagoe,
Saitama

14,80014,800

4.7

4.4

4.4

117,337(58,668)

1.3

100

Hiroshima,
Hiroshima

14,48014,600

5.4

5.1

5.0

68,4270.4

100

Subtotal or Average-

192,874

205,650

5.2

4.9

4.6

1,228,860(913,516)

4.4

99.3

MFIP Inzai

Inzai,
Chiba

12,22012,800

5.0

5.0

4.7

40,478

5.9

Not
disclosed

Total or Average-

205,094

218,450

5.2

4.9

4.6

1,269,338(953,994)

4.5

99.3

144,494

156,950

5.2

4.9

4.5

1,043,095(686,318)

4.9

99.1

156,714

169,750

5.2

4.9

4.6

1,083,574(726,796)

5.0

99.1

Logistics
facilities

Acquired in 8th FP

Acquired in 8th FP

L-17

Industrial realestateLocation

Property name

I-1

MFLP Hiroshima I

Reference: As of end of 7th fiscal period
Logistics facilities(Property no. L-1 to L-15) *3

Subtotal

Total (Property no. L-1 to L-15, I-1) *3*For further details, please refer to “Our Portfolio” on p. 43.
*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%.
*3: MFLP-REIT’s quasi co-ownership interests in L-8 “MFLP Sakai” as of the end of 7th FP is 20%.

16

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

Tohoku Expressway

Rampway MFLP Facilities

Metropolitan Inter-City Expressway(Ken-O Expressway)

MFLP Kuki L -2
Kuki IC

Slope MFLP Facilities

Tsukuba Chuo IC

Shiraoka Shobu IC

MFLP Tsukuba L -12

Tsukuba JCT

Saitama Prefecture

Box MFLP Facilities

Okegawa Kitamoto IC

Joban Expressway

MFIP Facilities

National Route 16
Tsurugashima JCT

Kanetsu Expressway

MFLP Kashiwa L -7
Kashiwa IC

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

Kawagoe IC

MFLP
Tokorozawa Tokyo Gaikan

Expressway(Gaikan Expressway)
Park Kawagoe

Oizumi JCT

MFLP Tachikawa Tachihi

MFLP Funabashi Nishiura
CentralCircular RouteTokyo

Box MFLP Facilities
Hachioji JCT

Hachioji JCT

L -10 MFLP Hino

MFLP Funabashi III

MFLP
Funabashi I MFLP Funabashi II

L -1

GLP / MFLPOi JCT Ichikawa Shiohama

Tokyo Rail Gate EAST

MFIP Haneda

L -8 MFLP Sakai

MFLP Kawasaki I
Haneda Airport

Chiba
Prefecture

L -13 MFLP

Inazawa
Ichikawa Shiohama
Logistics facility
development plan

L -9 MFLP

Komaki
Aichi
Prefecture

Sagamihara Aikawa IC

IseharaJCT

Tateyama Expressway

MFLP Ebina

Kanagawa Prefecture

Wangan Line

L -14 MFLP Atsugi II
Atsugi IC

L -15 MFLP Fukuoka I Fukuoka

Prefecture

Daikoku Futo IC
Tomei Expressway

MFLP Tosu

L -3 MFLP Yokohama Daikoku

Ebina JCT

Isehara Oyama JCT

AtsukiMinami IC

MFLP Hiratsuka II

Mitsui Fudosan’s strategic
area

Osaka
Prefecture

Kasai JCT

Third Keihin Road

MFIP

MFLP Osaka I

Keiyo Road

Chidoricho IC

L -5 MFLP Atsugi

Box MFLP Facilities

Higashi-Kanto
Expressway

MFLP IbarakiMFLP Osaka Katano

Takaya JCT

Tomei JCT(tentative name)

MFLP Yokohama
KohokuMFLP Yachiyo
Katsutadai

WanganIchikawa IC

L -6

Chuo JCT(tentative name)
Chuo Expressway
Ohashi JCT

Rampway MFLP Facilities
Slope MFLP Facilities

Taiei JCT
Misato Minami IC

MFLP Kawaguchi I

Slope MFLP Facilities

Properties developed by
Mitsui Fudosanl -1 MFIP Inzai

Misato JCT

MFLP
Yashio L -4

L -16 MFLP Prologis

Rampway MFLP Facilities

Gaikan Misato-Nishi IC
Soka IC

Ebina Minami JCT
Samukawa Kita IC

Samukawa Minami IC
L -11 MFLP Hiratsuka II

Fujisawa IC

Kisarazu JCT

OkayamaPrefecture
Hiroshima
Prefecture

Kamariya JCT
L -17 MFLP Hiroshima I*After acquisition of properties acquired in the 8th FP17

4-2-1. Location [2]Geographically diversified portfolio
Location offering excellent access to transportation nodes
Location taking into consideration convenience in terms of commuting to work for employees
Investment target
area

Access (distance) tonearest expressway interchange

Kyushu5 km or more
Tokyo
Hiroshima area
metropolitan
4.3%
2.7%
area
area
3 km or more but
7.5%
Greater
64.8%
less than 5 km
Nagoya area
12.7%
28.1%
Shuto Expressway

Access (time) to nearest
train station

Less than 1 km

By busWithin walking
distance

26.6%(20-30 minutes)(20-25 minutes)

4.0%

4.6%

Wangan Line

16.9%

Within walking
distance/
Within 20 min.
by busTokyo-Gaikan
Expressway
Tokyo
5.0%
metropolitan area
and Kansai area

77.1
Kansai
area
12.2%

%

Ken-O
Expressway

Less than 5 km

95.7%

96.0%

National
Route 16

17.4%

25.5%

1 km or more but lessthan 3 km

41.0%

By busWithinwalking distance(20 minutes or less)(20 minutes or less)

42.7%

48.7%

*The pie charts above indicate figures for the portfolio after the acquisition of properties acquired in the 8th FP calculated on an acquisition price basis (excluding MFIP property).

18

4-2-2. Quality
MFLP-REIT focuses investment in “leading-edge logistics facilities with Mitsui Fudosan quality”
realized by applying Mitsui Fudosan’s know-how as a comprehensive developer
Mitsui Fudosan quality
Basic specifications of leading-edge logistics facilities
Large-sized
大規模 site[Total floor area]

Storage space

High performance

Effective ceiling heightAt least 5.5 m

Disasterprevention
防災[Column spacing]Equipped with• Seismic isolation• Quake-resistance• Emergency
power generation…etc.

At least 10 m
[Effective ceiling height]

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

At least 5.5 m[Floor load capacity]

MFLP Sakai

At least 1.5

tons/m2＆ Worker

Adoption of seismic isolation

Emergency power generator

MFLP Sakai

MFLP Kashiwa＆ Tenant

MFLP Hiroshima I

Cafeteria

MFLP Hiroshima I

Unmanned store

Seasonal decoration＆ Community

MFLP Prologis Park Kawagoe

Public open space

GLP/MFLP
Ichikawa Shiohama

MFLP Prologis Park Kawagoe

Commuter shuttles

MFLP Hiroshima I

Bicycle sharing＆ EarthMFLP Hino

Childcare facilities

MFLP Hiroshima I

Monument

MFLP Sakai

Solar panels

MFLP Prologis Park Kawagoe

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 specific examples include also
those of properties not held by MFLP-REIT.

19

4-2-3. Balance
Securing growth and stability by building a balanced portfolio through acquisitionof MFLPs developed in consideration of land characteristics and tenant needs
Investment ratio: 80% or more

Investment ratio: 20% or less

Logistics facilities

Industrial real estate

Logistics needs

Shipping needs

Storage needs

Tenant typeMulti-tenant type

Single tenant type

Rampway MFLP

Slope MFLP
Multi

MFLP
Prologis Park
Kawagoe
Multi

MFLP
Sakai
Multi

MFLP
Hino
Multi

GLP/MFLP
Ichikawa
Shiohama
Multi

MFLP
Yokohama
Daikoku

Data center, etc.
Mainly long-term BTS type
MFIP

Box MFLP
Multi

MFLP
Hiroshima I(Mitsui Fudosan Industrial Park)
SingleMulti

SingleMFLP
Atsugi II

MFLP
Tsukuba

Multi

Other *1

MFLP
Inazawa

MFLP
Hiratsuka

Single

MFLP
Komaki
Multi

MFLP
Kuki
SingleMFLP
AtsugiBTS

MFLP
Fukuoka I

MFIP
Inzai

Investment ratio by property type *2
Rampway
MFLP
37.3%

Data center
6.0%
Box MFLP
21.4%

Multi

Slope MFLP
35.3%

MFLP
YashioSingleInvestment ratio by tenant type *2
BTS
6.0% Other
3.4%

MFLP
Funabashi
Nishiura
SingleMFLP
Kashiwa*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 acquired in the 8th FP calculated on an acquisition price basis.

Multi
69.5%

Single21.2%

20

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 ofcorporate logistics

Utilization of idle land

Global development(Establishment of overseas sites)

Development ofcorporate infrastructure

Further development of
Mitsui Fudosan’s logistics
facilities business

Trimming down of balance sheet(Off-balancing)Sale ofreal estate, 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 acquired in the 8th FP

Properties defined in “Right of first look andpreferential negotiation rights agreement” *Additionally acquired in 8th FP

MFLP
Yokohama Daikoku

MFLP
Atsugi

MFLP
Inazawa

MFLP
Ibaraki

MFLP
Sakai
Acquired in 8th FP

GLP/MFLP
Ichikawa Shiohama

MFLP
Kashiwa

MFLP
Tsukuba

MFLP Prologis Park
Kawagoe

MFLP
Funabashi II

Acquired in 8th FP

MFLPYashioMFLP
Fukuoka I

MFLP
Atsugi II

MFLP
Hiroshima I

MFLP
Kawaguchi I

Properties developed/operatedby Mitsui Fudosan

NEW

Construction completionin fiscal 2016

Construction completionin fiscal 2021

MFLP
Osaka INEW

MFLP
Funabashi I

MFLP
Osaka Katano

Construction completionin fiscal 2019

Construction completionin fiscal 2021

MFLP
Yachiyo Katsutadai
NEW

MFIP
Haneda(Tentative) Ichikawa Shiohama

Construction completionin fiscal 2019

Construction completionin fiscal 2022 or after

MFLP
Tosu
NEW

MFLP
Kawasaki I

MFLP
Ebina

Construction completionin fiscal 2020

Construction completionin fiscal 2022 or after

MFLP
Funabashi III

MFLP
Tachikawa Tachihi

Tokyo Rail Gate
EAST

development of logistics facilities

75%
MFLP
Kuki

MFLP
Hiratsuka

MFIP
Inzai

MFLP
Hino

MFLP
Hiratsuka II

Construction completionin fiscal 2021

Other data centers(2 properties)
Other overseas
properties(2 properties)

MFLP
Funabashi Nishiura

MFLP
Komaki

MFLP
Yokohama Kohoku

MFLP
Tokorozawa*For further details, please refer to “Major properties developed/operated by Mitsui Fudosan” and “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 43.

21

4-3. External Growth [2]Building a high-quality portfolio capitalizing on diversification of areas
Kansai area

Tokyo metropolitan area
MFLP Kuki

MFLP Tsukuba

Saitama Prefecture

MFLP Ibaraki
MFLP
Osaka Katano
MFLP Osaka I

MFLP Kashiwa
MFLP Prologis
Park Kawagoe

Osaka Prefecture

MFLP Yashio

MFLP Sakai
Tokyo Prefecture

MFLP Tachikawa
Tachihi
MFLP Hino

MFLP Komaki

Hiroshima area

MFLP Inazawa

MFLP Fukuoka I MFLP Hiroshima I
MFLP Tosu

MFLP Atsugi

MFLP Yachiyo
Katsutadai

MFLP Funabashi Nishiura
Ichikawa Shiohama
development oflogistics facilities

Greater Nagoya area

Kyushu area

MFIP Inzai

MFLP Tokorozawa
MFLP Kawaguchi

MFLP Kawasaki I

MFLP Funabashi II

MFLP Funabashi III
MFLP Funabashi I
Chiba
GLP/MFLP
Ichikawa Shiohama Prefecture
MFLP Rail Gate East

MFIP Haneda

Kanagawa
Prefecture MFLP Yokohama Kohoku

MFLP Yokohama Daikoku

MFLP Ebina: Properties held by MFLP-REIT

MFLP Atsugi II
MFLP Hiratsuka II: Properties defined in “Right of first look andpreferential negotiation rights agreement”

MFLP Hiratsuka: Properties developed by Mitsui Fudosan*After acquisition of properties acquiredin the 8th FP

Properties defined in “Right of first look and preferential negotiation rights agreement” *10 properties 1,180,000 m² (Total floor area)
MFLP-REIT’s asset size
18 properties 950,000 m² (Total floor area) 205.0 billion yen

Further expansion of properties defined in “Right of firstlook and preferential negotiation rights agreement”

Continuous external growth*For further details, please refer to “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 43

22

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

Japan Logistic Systems
Other
MARUBENI LOGISTICS

Occupied by many tenants that have a relationshipwith Mitsui Fudosan

SuzuyoLeaseagreement

End userOwner oflogistics facility

Lease
agreement

Logistics
firm

Sagawa Global Logistics

DaijyuDomestic 3PL
Daikyo Express
Hitachi Transport System
Kanto
RakutenInternational delivery business

Tenantdiversification

Sun Toshi
Tatemono

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

Logistics
agencyagreement

Kimura Unity

Bic Camera
DAIWA Corporation
KOKUBU

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

NIPPON EXPRESS

Lease agreements

(%)
100
95

99.5

100

100

100

100

100

100

99.3

Average lease period *7.2 years

Remaining lease
contract period

4.1 years

90
85

Can directly approach logistics
firms and end users regardless ofcontract type80
Aug. 31, Jan. 31,
2016
2017

Jal. 31,2017

Jan. 31,2018

Jal. 31,2018

Jan. 31,2019

Jal. 31,2019

Jan. 31,
2020

Average

Staggering of contract expiration periods
Fully leverage the Mitsui Fudosan Group’s broad client network
Office building
business
Client network:
Approx. 3,000 firms *Retail facility business
Client network:
Approx. 2,300 firms *Strong relationships
with leading 3PL
operators

Source: Disclosed financial results materials of Mitsui Fudosan
for the fiscal year ended March 31, 2019

40.0%

～
～

23.7%
8.5%
2.3%
8th FP
ending2020/07

7.8%

5.6%

12th FP
ending2022/07

13th FP
ending2023/01

1.0%
9th FP
ending2021/01

10th FP
ending2021/07

11th FP
ending2022/01

9.5%
1.5%
14th FP
ending2023/07

15th FP
ending2024/01

16th FP or
after*The graphs and tables above show figures based on leased areas stated in lease agreements concluded as of January 31, 2020 after property acquisition in 8th fiscal
period. Tenant diversification excludes MFIP.
*For details of calculation of “Average lease period,” please refer to “Calculation of average lease period” on p. 44.

23

4-4. Internal Growth [2]
Steady internal growth through evolution of solutions-based asset management andmaintaining relationships with tenants over the medium to long term
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
future rises indelivery costs

Specific examples ofsolutions-based asset
management by Mitsui
Fudosan GroupEnd userStrengthening of proposal capability for specialized solutions
responding to the needs from tenant customers
MFLP Funabashi I / ICT LABO
Establishment of leading-edge ICT-related
products, etc. for improving efficiency, laborsaving, etc.
MFLP-REIT mutually provides know-how to andcollaborates with companies handling suchdevices, and is strengthening its proposal
capability as a new solution to tenantcompanies.

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

MFLP ICT LABO 2.0 (opened in February 2020)
Responding toautomation●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 andemployees
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 and contributes to the securement of employment.

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

Policy for future internal growth
Negotiation of rent increase throughcontract renewal, etc.
Thanks party

CS survey

Unmanned convenience store

Reduction of utility expenses throughrevision of supply agreement24

4-5. Financial Strategy [1]Financial management with an emphasis on stability
Status of borrowing and LTV
End of 7th FP

End of 8th FP(forecast)End of 9th FP(forecast)

42.9 billion yen

62.9 billion yen

58.4 billion yen(of which, short-term)(1.6 billion yen)

(5.0 billion yen)(0.5 billion yen)

LTV

27.3%

Total interest-bearing
debt

Average time tomaturity

30.6%

New borrowing associatedwith the 3rd follow-on offering
New borrowing
Total interestbearing debt

28.9%

4.9 years

5.4 years

4.9 years

0.27%

-

-

(5.0 billion yen)

Average borrowing
period8.4 years(long-term only)(long-term only)

Average interest rate

21.6 billion yen(of which, short-term)

Average interest
rate *

0.29%*Estimated value as of the end of February 2020

*As of the end of each period

Interest-bearing debt maturity ladderCredit rating assignment(million yen)

8,000

Existing borrowing

7,000
6,000

New borrowing

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

Rating details

Long-term issuer rating: AA-

Remarks

Rating outlook: Stable

1,700

5,000
4,000

5,000

5,600
4,900
5,600
4,000
800
3,000
3,400
2,800
3,100
2,100
2,100
1,900

3,000
2,000
1,000
0

1,600

7,800
2,400

900
FP
endingJanuary
2021

FP
ending
July
2021

FP
endingJanuary2022

FP
ending
July
2022

FP
FP
ending ending
January July
2023
2023

FP
endingJanuary
2024

FPFP
ending ending
July January
2025
2024

FP
FP
ending ending
January
July
2026
2025

FP
ending
July
2026

FP
endingJanuary2027

FP
ending
July
2027

FP
endingJanuary
2028

1,800

2,000 2,000FPFP
ending ending
July January
2029
2028

FP
ending
July
2029

FP
endingJanuary2030

FP
ending
July
2030*The repayment period when adding new borrowing associated with the 3rd follow-on offering to the borrowing at the end of the 7th FP is indicated.

*As of the end of January 202025

4-5. Financial Strategy [2]Status of borrowings

After new borrowing associatedwith the 3rd follow-on offering

End of 7th FP
The Chiba Bank 2.3%
Sumitomo Life Insurance Company 2.3%
Mitsui Sumitomo Insurance 2.8%
The Yamaguchi Bank 2.8%

Shinsei Bank 1.2%
The 77 Bank 1.4%
Nippon Life Insurance Company 2.3%

Development Bank of Japan 4.9%
Mizuho Trust & Banking 6.8%

Total amountfor all 14 financial 14.7 Sumitomo Mitsui%
Banking Corporation
institutions
42.9 billion yen

11.7

The Bank of Fukuoka 8.6%
Shinkin Central Bank 8.9%

Mizuho Bank

15.4%

Nippon Life Insurance Company 3.5%
The Norinchukin Bank 4.9%

%

10.5%

Sumitomo Mitsui
Trust BankThe Chiba Bank 2.3%
Sumitomo Life
Insurance Company 2.8%
Mitsui Sumitomo Insurance 3.1%
Development Bank of Japan 3.3%
The Yamaguchi Bank

3.3%

The Norinchukin Bank 4.8%
Mizuho Trust & Banking 5.3%

11.7%

Key points of cash distribution in excess of earnings
For the time being, we intend to pay distributions (including distributions in excess ofearnings) 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

Depreciation

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

Distributions
in excess of earnings

Profit *(Net Income)

Sumitomo Mitsui
Trust Bank

Level of distribution

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

FFO
Rentalrevenue%

Based on the characteristics of logistics facilities, such as the ratio of building value to land value being typically high, MFLP-REIT
intends to make cash distributions, including distributions in excess of earnings, on an ongoing basis each fiscal period from aperspective of securing stable distribution levels while managing cash efficiently.

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

12.1

Mizuho BankMUFG Bank

Efficient cash management

13.2 The Bank of Fukuoka
Total amount%for all 16 financial
institutions
64.2 billion yen

Shinkin Central Bank 8.4%
MUFG Bank 9.5%

Sumitomo Mitsui
Banking Corporation

15.1%

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.

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)26

4-6. Unitholder Relations
Maximization of unitholder value through establishment of strong relationship oftrust with unitholders
Asset management fee structure consistent with the interests of unitholders
Our aim is to align the interests of the Asset Manager with those of the unitholders.

Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

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

Asset management fee III

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

Same-boat investment in MFLP-REIT by Mitsui Fudosan
MFLP-REIT receives 6.6% investment in capital from Mitsui Fudosan. (As of March 13, 2020)
Receiving certain investment in capital leads to alignment of the interests of MFLP-REIT’s unitholders and Mitsui Fudosan, and asset management that
pursues mutually greater interests.

6.6%

27

5. Market Overview

28

5-1. Market Overview [1]Supply-demand balance and vacancy rate [1 of 2]
Greater Tokyo metropolitan area

: New supply in 2018 and 2019

: Vacancy rate 0–5%

: Submarket areas: New demand in 2018 and 2019

: Vacancy rate 5–10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–= 100 thousand m2*As of December 31, 2019

Forecast(thousand m2)

2,500

15%

2,000

12%

1,500

9%

Tohoku Expressway

Tohoku/Ken-O
Expwy area

Shiraoka Shobu IC

3%

500

Tsurugashima JCT

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

(year)Okegawa-Kitamoto IC

National Route 16

MFLP
Kawagoe Tokorozawa
IC

MFLP Tachikawa
Tachihi

6%

Hachioji IC

Chuo Expressway

HachiojiJCT

MFLP

CentralCircular Route

Chuo JCT(tentative name)

2%

300
1.0%

Kanagawa
Prefecture

0.5%

Kanagawa
Kanagawa
inlandinlandarea
area

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

MFLP HiratsukaNew
supplyNet
absorption

Vacancyrate

MFLP Funabashi
MFLP
Nishiura
Funabashi III
Takaya JCT

WanganIchikawa IC

Chiba
inland area

Keiyo Road

GLP / MFLP
Ichikawa
Shiohama

Haneda Airport
MFLP
Kawasaki I

Daiei
JCT

MFLP Funabashi II

Higashi-Kanto
Expressway

Chiba
Prefecture

MFLP Funabashi I

Ichikawa
Shiohama
development oflogistics facilities

Tateyama Expressway

Wangan Line
Daikoku Futo IC

Tomei Expressway

Daini Tomei Expressway Atsugi IC
IseharaOyama IC Isehara
JCT
MFLP Hiratsuka II

2019

2018

MFLP
Yachiyo Katsutadai

MFIP Haneda

Daisan Keihin
Road

MFLP Ebina

MFLP Atsugi II0%0

Tomei JCT(tentative name)

MFLP Yokohama
KohokuMFIP Inzai

Misato Minami IC

Chidoricho IC
Kasai JCTTokyo Rail Gate
EAST

Sagamihara
Aikawa IC

Narita area

MFLP Yashio
Kawaguchi I

Oi JCT
MFLP
Atsugi

Gaikan Misato
Nishi IC
Misato JCT

Ohashi JCT
MFLP Hino

4%

600

Joban
Expressway

Oizumi JCT

Hachioji area

Tsukuba JCT

MFLP Kashiwa
Kashiwa IC

Soka ICTokyo-Gaikan
Expwy area

Tokyo
Prefecture(thousand m2)

National Route16 areaTokyo Gaikan Expressway(Gaikan Expressway)

Kanetsu Expressway

MFLP Prologis
Park Kawagoe

900

MFLP Tsukuba

SaitamaPrefecture

Kan-Etsu/Ken-O
Expwy area

0%0

Tsukuba Chuo IC

Kuki IC

6%

1,000

Metropolitan Inter-City Expressway(Ken-O Expressway)

MFLP Kuki

Ebina JCTMFLP Yokohama
Daikoku

Ebina Minami JCT
Samukawa kita IC
Fujisawa IC Kamariya JCT
Samukawa-Minami IC

Greater Tokyobay area

Kisarazu JCT

Vacancy rate
(Completionover 1 year)*Source: CBRE K.K. (including forecast figures)*As of December 31, 2019
*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.

29

5-1. Market Overview [1]Supply-demand balance and vacancy rate [2 of 2]
Greater Nagoya area

Greater Osaka area
Forecast(thousand m2)
2,000

15%

New supply[Graph legend]

New demand

Greater Kyushu area
Forecast(thousand m2)
2,000

15%

Greater Chugoku area
Forecast(thousand m2)

Vacancy rate
(Completionover 1 year)

Vacancy
rate

400

15%

(thousand m2)

Forecast
30%

200

25%
1,500

10%

1,000

1,500

10%

1,000
5%

500

300

150
10%

200
5%

500

20%
100

15%

5%

100

10%
50
5%

0

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

0%0(thousand m2)
750

18%

500

2.7%

3.0%

0
Q1

Q2

Q3

Q4

Q1

Q2

Q3

18%

0%

(thousand m2)
150

18%
16%

14%

14%

14%

500

12%

9.5%

10%

10%

8%

8%

8%

250

3.0%

6%

4%

4%

2%

2%

0%

Q4

0

0%
Q1

Q2

Q3

Q4

Q2

Q3

Q4

50

(year)(thousand m2)
100

18%
16%
14%

75

12%
10%

50

8%
6%

6%
4%
0.0%

0
Q2

Q3

Q4

2018

Q1

Q2

Q3

Q4

25

4%

2%
0%

Q1

2019

2018

0.0%
0
Q2

2019

MFLP Fukuoka I
Aichi
Prefecture

MFLP Sakai

Q3

Q4

2019

OkayamaPrefecture

MFLP Inazawa

Osaka
Prefecture

2%
0%

Q1

MFLP Komaki

Other area

MFLP Osaka
KatanoMFLP Osaka I

Q10%2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

12%

100

10%

6%

0

(year)

16%

MFLP Ibaraki
Osakainland area2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

16%

2019

2018

0

(year)(thousand m2)
750

12%

250

0%

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

(year)

Fukuoka
Prefecture

Hiroshima
Prefecture
MFLP Hiroshima I

MFLP Tosu

Osaka bay /Kobe area[Map legend]: New supply in 2018 and 2019
: New demand in 2018 and 2019

= 100 thousand m2: Vacancy rate 0 – less than 5%: Submarket areas: Vacancy rate 5% – less than 10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–

*As of December 31, 201930

Stock of logistics facilities in Japan

Logistics facilities
40 years old or older
35.2%
Future demand for
replacement ofaging properties

Leading-edge
logistics facilities
4.3%
Highly scarceleading-edge
logistics facilities(million m２)

5-1. Market Overview [2]
700

40%

600

35%

20%
300

15%

200

10%

100

5%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(As of December 2018)

Estimatefor logistics facilities
築40年以上の推計値
40 years old or older

Estimatefor logistics facilities
築40年未満の推計値
less than 40 years old

Leading-edge(left axis)(左軸)
先進的物流施設

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

Shareof leading-edge logistics
先進的物流施設シェア
facilities(右軸)(right axis)

logistics facilities

Tenants / End users of logistics facilities

Over 40 years old

Manufacturing

Other

Other

4%

8%

Logistics

5%

3%

20,000

Manufacturing

Wholesale26%

9%15,000Share bytenantbusiness type10,000Share byend userbusiness type

Retail41%

Retail

5,000

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

0

0%
(year)*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. 44 of this presentation material.

Long-term data on construction starts of logistics facilities(nationwide)(thousand m2)

25%

400

0

Logistics facilities
less than 40 years
old 60.5%

30%

500

(year)

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

Source: CBRE K.K.

Logistics

Wholesale

71%

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.

31

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

Broader demand for leading-edge logistics facilities
Attracting delivery bases of retail stores(convenience stores/drug stores)

3PL market with stable growth

Data center market with significant growth(in Japan)(100 million yen)
35,000Net sales(100 million yen)

Conventional

3.0

Manufacturer

trillion yen

Expansion of the data center market

Store

Wholesaler

2.7

30,000

trillion yen

30,00025,000Consolidation of scattered logistics bases
into a delivery center
25,00020,000After
consolidation

20,00015,000Store

Delivery center

Manufacturer

10,00015,0005,000

Integrating logistics bases of manufacturers
10,0002010 2011 2012 2013 2014 2015 2016 2017 2018
(year)

0

Conventional
Source: Monthly Logistics Business(September 2019)

Warehouse Transport
for parts

Expanding e-commerce market scale

Consolidation of separately located warehousefor parts, assembly plant and warehousefor end products into one base

Scale of E-commerce market
E-commerce ratio

180,000

2017(Estimated)

Transport Warehouse for Transport

end products

MFLP

Retail stores /Consumers

18.0(100 million yen)
210,000

After
consolidation

Assembly plant

Source: “Comprehensive Survey of Data Center Business Market 2018:
Vol. 1 Market Edition” by Fuji Chimera Research Institute, Inc.
(February 21, 2018)

Expanding cloud services market (in Japan)(100 million yen)
60,0004.9

Use as a mixed-use logistics facility

6.2%

trillion yen

50,000

Leading-edge logistics facility

640,000150,000
4

30,000Warehouse

120,000

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

2
90,00060,000(year)

Transport(%)

trillion yen 8

2022(Forecast)02010 2011 2012 2013 2014 2015 2016 2017 2018 (year)

Assembly andprocessing

Research anddevelopment

Office10,0000

Showroom

2017(Estimated)

Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade andIndustry (Announced on May 16, 2019)*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.

20,000

Product inspection

Inspection, maintenanceand repair

Photographic
studioetc…
Call center(year)
2021(Forecast)

Source: “Reality and Future Prospective of Cloud Computing
2018: Vol.1 Users’ Questionnaire Analysis and CloudMarket Edition” by Fuji Chimera Research Institute, Inc.
(February 28, 2018)32

6. Appendix

33

Statement of Income and Balance Sheet
Statement of income

Balance sheet(Unit: million yen)

(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 with issuanceof investment units
Other
Ordinary income
Profit before income taxes
Income taxes
Profit (Net Income)Unappropriated retained earnings

6th fiscal period

7th fiscal period(ended Jul. 31, 2019)(ended Jan. 31, 2020)

ActualActual

4,969
4,766
202
2,650
2,134
439
22
5
48
2,318
3
118
59

5,064
4,815
248
2,748
2,175
482
28
5
55
2,315
26
103
59

18

18

32

-

8
2,203
2,203
0
2,202
2,202

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

Item

Current assets
Cash and deposits
Cash and deposits in trust
Consumption taxes receivable
Other current assets
Non-current assets
Property, plant and equipment
Other non-current assets
Deferred assets
Total assets
Current liabilities
Operating accounts payable
Short-term borrowings
Accounts payable
Income taxes payable
Advances received
Other current liabilities
Non-current liabilities
Long-term borrowings
Tenant leasehold and security
deposits in trust
Total liabilities
Total unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Total net assets
Total liabilities and net assets

6th fiscal period

7th fiscal period(ended Jul. 31, 2019)(ended Jan. 31, 2020)

ActualActual

6,745
1,085
3,074
2,261
324
153,842
153,761
81
93
160,681

4,332
877
3,281
173
152,615
152,54668
74
157,023

7,081
228
5,500
502
0
849
0
44,31541,300

3,639
266
1,600
580
0
851
341
44,322
41,300

3,015

3,022

51,397109,284
107,416-334
107,0812,202
109,284
160,681

47,962109,060
107,416-593
106,8222,238
109,060
157,023

34

Individual Property Income Statement for 7th Fiscal Period(Unit: million yen)
GLP/MFLP
Ichikawa
Shiohama

Number of days ofasset management

MFLP
Yokohama
Daikoku

MFLP
Kuki

MFLP
YashioMFLP
Funabashi
Nishiura

MFLP
Atsugi

MFLP
Kashiwa

MFLP
Komaki

MFLP
Sakai

MFLP
Hino

MFLP
Hiratsuka

MFLP
Tsukuba

MFLP
Inazawa

MFLP
Atsugi II

MFLP
Fukuoka I

MFIP
Inzai

Portfolio
total

184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days 184 days-

Lease businessrevenue

411

437

332

135

355

4,815

Other
lease businessrevenue

35

37

19

29

29

248

447

475

352

164

385

5,064

Outsourcing
expenses

39

30

25

Utility expenses

19

27

16

5

20

171

Repair expenses

1

0

15

1

1

36

Property-related
taxes

38

42

39

16

23

332

Other expenses

1

2

1

0

1

20

100

104

98

-

-

-

-

36

-

82

-

-

-

-

-

-

848

80

107

86

63

63

50

50

43

88

87

51

95

181

113

56

107

1,326

Operating income (loss)
from real estate leasing

266

263

167

191

156

133

121

84

119

214

120

182

290

239

107

227

2,888

NOI from real estate leasing[Operating income (loss) fromreal estate leasing +Depreciation])

346

370

254

254

220

183

171

128

207

302

171

277

472

353

163

335

4,215

Operatingrevenuefromreal estateleasing

Total

Operatingexpensesfromreal estateleasing

Total

Depreciation

12
Not
Not
Not
Not
disclosed * disclosed * disclosed * disclosed *35
Notdisclosed *

287
Not
Not
Not
Not
Not
Not
disclosed * disclosed * disclosed * disclosed * disclosed * disclosed **Not disclosed, because consent has not been obtained from the lessee.

35

Appraisal Summary for the End of 7th Fiscal Period(Unit: million yen)
Acquisitiondate

Acquisition
price

End of
6th fiscal period(End of Jul. 2019 (a)Bookvalue atend of 7th
fiscalperiodAppraisal
value

CR

*1

End of
7th fiscal period(End of Jan. 2020) (b)Appraisal
value

CR

*1

Change(b)-(a)Main factors of change

Appraisal
value

CR

*1

CR

*1

Other

GLP/MFLP Ichikawa Shiohama(50%)

2016/0915,50015,047

17,3504.1%

17,900

4.0%

550

-0.1

〇

-

MFLP Kuki

2016/08

12,50011,84314,0004.6%

14,300

4.5%

300

-0.1

〇

-

MFLP Yokohama Daikoku (50%)

2016/08

10,1009,770

10,600

4.5%

10,900

4.4%

300

-0.1

〇

-

MFLP Yashio

2016/08

9,650

9,284

10,900

4.4%

11,100

4.3%

200

-0.1

〇

-

MFLP Atsugi

2016/08

7,810

7,426

8,720

4.6%

9,140

4.5%

420

-0.1

〇

-

MFLP Funabashi Nishiura

2016/08

6,970

6,656

7,740

4.5%

7,890

4.4%

150

-0.1

〇

-

MFLP Kashiwa

2016/08

6,300

6,000

6,960

4.6%

7,110

4.5%

150

-0.1

〇

-

MFLP Sakai (20%)

2016/08

4,500

4,253

4,880

4.6%

4,760

4.6%

-120

0.0

-

〇

MFLP Komaki

2017/08 *2

8,260

7,954

8,540

4.6%

8,570

4.6%

30

0.0

-

〇

MFLP Hino (25%)

2018/02 *2

12,533

12,38012,6004.2%

12,600

4.2%

0

0.0

-

-

MFLP Hiratsuka

2018/03

7,027

6,896

7,150

4.5%

7,150

4.5%

0

0.0

-

-

MFLP Tsukuba

2018/12 *2

8,781

8,792

10,100

4.9%

10,100

4.9%

0

0.0

-

-

MFLP Inazawa

2019/02

16,20015,997

16,4004.6%

16,500

4.6%

100

0.0

-

〇

MFLP Atsugi II

2019/02

13,10012,987

13,5004.3%

13,500

4.3%

0

0.0

-

-

MFLP Fukuoka I

2019/02 *2

5,263

5,209

5,400

4.8%

5,430

4.8%

30

0.0

-

〇

MFIP Inzai

2016/08 *2

12,22012,026

12,8004.6%

12,800

4.6%

0

0.0

-

-

Total/average-

156,714

152,526

167,640

4.5%

169,750

4.4%

２,110

-0.0

-

-

Reference (as of March 13, 2020) *3
MFLP Prologis Park Kawagoe (50%)

2020/02

14,80014,800--14,800

4.3%

-

-

-

-

4.9%

-

-

-

-

4.6%

-

-

-

-

4.4%

-

-

-

-

MFLP Hiroshima I

2020/03

14,48014,480--14,600MFLP Sakai (70%)

2020/02

16,71016,710--16,900MFLP Sakai (10%)

2020/04(planned)

2,390

2,390

-

-

2,400

After acquisition of properties
acquired in the 8th FP
Total/average-

205,094

200,906--

218,450

Amount of difference = Unrealized gain
17,543 million yen*1 CR = Capitalization rate based on direct capitalization method (NCF basis). The average indicates a weighted average based on the appraisal value.
*2 The acquisition periods of “MFLP Komaki”. “MFLP Hino”, “MFLP Tsukuba”, “MFLP Fukuoka I” and “MFLP Inzai” are divided into two 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.
*3 Book value at the end of 7th fiscal period as of March 13, 2020 indicates (planned) acquisition price; and appraisal value at the end of 7th fiscal period indicates appraisal value with November 30, 2019 as the date of value.

36

Initiatives for ESG
ESG vision of Mitsui Fudosan Group

Environmental policy of Mitsui Fudosan Group

Establish ultra-smart societies
by creating neighborhoods

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

E S

Achieve a society where adiverse workforce can thrive

Achieve health, safety andsecurity in people’s daily lives

S

E S

Environment
SocialGovernance

Cleaning the famous
Nihonbashi bridge(conducted every July)

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

Carbon Dioxide Absorption and Fixation
by Mitsui Fudosan Group Forests

ComplianceApprox. 5,343t/year37

Initiatives for ESG– Environmental Principles and Initiatives for Environment
Environmental policies of Mitsui Fudosan Group
Mitsui Fudosan Group seeks reduction of environmental load, diversified
collaboration/cooperation with various entities, improvement of peace of mind,
safety and comfort as well as securement of sustainability.

Cooperation
A wide range ofcollaboration/cooperation
with various entities

Load

Quality

reduction

improvement

Reduction ofenvironmental
load

Improvement ofpeace of mind
and safety andsecurement ofsustainability

 Co-existence with local communities
 Proactive action towards tenants andowners Collaboration/cooperation with design,
construction, energy, manufacturingfirms, etc.
 Further collaboration/cooperation withlocal communities, government, andresearch institutes including universities
 Improvement of peace of mind andsafety Conservation and utilization ofnatural environment (conservationof biodiversity)
 Conservation and utilization oflandscape and townscape Improvement of health and comfort
 Reduction of CO2(including supporting use of low-carbon
transportation) Aquatic conservation
 Reduction of harmful substances Resource saving and reduction ofwaste material

Initiatives for reducing environmental load
MFLP-REIT has put forth efforts on
reducing CO2 emissions throughenergy saving while promoting efficientuse of energy at its portfolio assets byintroducing LED lights, installing solar
panels on the roof and such.

LED lights

Solar panels

Environment

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

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

MFLP Atsugi

CASBEE Kanagawa Rank A *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 *MFLP Inazawa

CASBEE (New construction) Rank A
CASBEE Aichi Rank A *MFLP Atsugi II

CASBEE Kanagawa Rank A *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 **CASBEE Kanagawa, Aichi and Hiroshima are not certified by a third-party but an assessment based on self-reporting.

Power generation facilities using solar panel (2019 Actual)

MFLP Atsugi II

MFLP Inazawa

Number of properties established

Annual power generation

10 properties

15 GWh**For further details, please refer to “Annual Power Generation by Solar Panel” on p.44.

38

Initiatives for ESG– Initiatives for Society

SocialUtilizing the know-how 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 andsafetyUnmanned convenience store

Dining hall

Seasonal decoration

Terrace

Initiatives for
local
communities

Creation of community space

Adoption of seismic isolation

Emergency power generator

Remote monitoring using ITVStockpiles for disaster prevention

Commuter shuttles

ICT LABO

Mitsui Fudosan SC discount service
for employees

Issuance of quarterly magazine

Thanks party

Communication space

Personnel training

Work-life balance andbenefit program

BCP measures

Initiatives fortenants
Implemented beautification activities(cleaning)

Emergency temporary toilets

Childcare facilities

Designated as a tsunami evacuationbuilding

Initiatives for employees

Asset Management Company:
Mitsui Fudosan Logistics REIT Management Co., Ltd.

MFLP-REIT focuses on the enhancement of the motivation of employees and the creation of abetter working environment for conducting creative work efficiently. In addition, MFLP-REIT
intends to enrich work-life balance and benefit program as part of the creation of an environment
where employees can choose from various work styles and continue to work safely in addition tovarious training and corporate subsidy systems aiming to let employees maintain and improvetheir expertise in fields such as estate and finance.
*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.

Introduction of flexible
working hour system
Defined contribution (DC)pension system
Provision of cafeteria plan

39

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 and interests of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

Rules concerning conflicts of interestin asset management

Asset management with emphasis placed onrelationship of trust with unitholders

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

Asset management fee structure
consistent with the interests of unitholders
The aim is to keep the interests of MFLP-REIT’s unitholders consistent with
the interests of the Asset Management Company.

Draft by the Investment Team

Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

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

Asset management fee III

Pre-tax earnings (before deduction of asset
management fees) × Pre-tax EPU (before
deduction of asset management fees) × 0.001%(maximum)Approval by the Chief Compliance Officer*2

Instruction to cancel
or amend details

Deliberation and resolution by the Compliance Committee

Examination and approval by the Investment Committee

Same-boat investment in MFLP-REIT by Mitsui Fudosan

Approval by MFLP-REIT’s Board of Directors

Deliberation and resolution by the Management Committee

Instruction to cancel
or amend details

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

Reporting to the Board of Directors and MFLP-REIT*1: The above chart shows the decision-making flow when a transaction involves a related
party, which requires the approval of MFLP-REIT’s Board of Directors under Article 2012 of the Act on Investment Trusts and Investment Corporations.
*2: If a transaction prescribed in Article 201-2 of the Act on Investment Trusts andInvestment Corporations falls under the criteria for insignificance defined therein, theapproval of MFLP-REIT’s Board of Directors shall be omitted.

MFLP-REIT receives 6.6% investment in capital from Mitsui Fudosan.
(As of March 13, 2020)
Receiving certain investment in capital leads to alignment of the interests of
MFLP-REIT’s unitholders and Mitsui Fudosan, and asset management that
pursues mutually greater interests.

Timely and proper information disclosure andsecurement of 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, and also promotes disclosure of not only
financial information but also non-financial information concerning ESG.

40

Investment Unit Price Trends/Status of Unitholders
Investment unit price firm since IPO
Investment unit price (closing price)
TSE REIT Index (indexed)(yen)
530,000

480,000

430,000

380,000

330,000

IPO issue price: 270,000 yen

280,000

230,000
2016/7/31
2016/08/02

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*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 7th fiscal period (end of January 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 of investment
units% of total

Individuals/Other

6,164

92.3%

21,693

5.7%

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

77,973

20.6%

Financial
institutions

134

2.0%

208,569

55.0%

Japan Trustee Services Bank, Ltd. (trust account)

46,748

12.3%

Other Japanese
corporations

144

2.2%

34,3209.1%

Mitsui Fudosan Co., Ltd.

28,9007.6%

Non-Japanese

213

3.2%

101,773

26.9%

The Nomura Trust and Banking Co., Ltd.
(Investment Account)

12,797

3.4%

Securities
companies

25

0.4%

12,645

3.3%

Trust & Custody Services Bank, Ltd.
(securities investment trust account)

11,737

3.1%

Total

6,680

100.0%

379,000

100.0%

178,155

47.0%

Total

41

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

FY2013

FY2014FY2016FY2017FY2018FY2019MFLP 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

FY2021

FY2022
or after
TBD

MFLP Yachiyo Katsutadai
MFLP Tosu
MFLP Tokorozawa
MFLP Funabashi III
MFLP Osaka Katano(Tentative) Ichikawa Shiohama Logistics
Facility Development Project *3
MFLP Ebina
Tokyo Rail Gate EAST
Other data centers (2 properties)
Other overseas properties (2 properties)

Acquisition by MFLP-REIT (planned) *Properties defined in “Right of firstlook and preferential negotiationrights agreement● (50%)● (50%)●●●●●●● (25%)
●
－
●
●
●
●
－
●
●
● (50%)
－
●
－
－
－
－

－
－
－
－
－
－
－
－
● (75%)
－
－
－
－
－
－
●
－
－
－
－
－
●
●
●
●

A: 36,188 m2
B: 13,583 m2
Approx. 67,000 m2
49,009 m2
75,802 m2
35,274 m2
Approx. 21,300 m2
268,392 m2
Approx. 72,000 m2

－

－

－
－
－
－
－
－
－

－
●
●
●
－
●
－

Approx. 183,800 m2－－

Approx. 124,400 m2
Approx. 175,000 m2
－
－

－
－
－
－

－
－
－
－

100,530 m2
105,019 m2
40,728 m2
73,153 m2
125,127 m2
30,947 m2
40,942 m2
40,478 m2
205,200 m2
31,242 m2
197,746 m2
32,199 m2
33,061 m2
40,597 m2
72,883 m2
230,435 m2
62,484 m2
48,976 m2
117,337 m2
80,334 m2
68,427 m2
227,003 m2
49,838 m2
48,141 m2
50,667 m2

Flow regarding provision ofright of first look information
Propertydeveloped/operatedby Mitsui Fudosan

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

Prioritized provision of
information upon sale

Preferential negotiation
period
NEW
NEW
NEW

NEW

*For further details, please refer to “Major properties developed/operated by Mitsui Fudosan” and “Property defined in “Right of first look and preferential negotiation rights agreement”” on p. 43.
*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.
*3: Based on materials released by Mitsui Fudosan on November 5, 2019.

Acquisition of property
by MFLP-REIT

MFLP-REIT

FY2020MFLP Tachikawa Tachihi
MFLP Osaka I

Total floor area

Mitsui Fudosan

FY2015

Property developed/operated

42

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 for uncompleted properties that are properties defined in “Right of first look and preferential negotiation rights agreement,” and the area stated in the material published by Mitsui Fudosan for all other properties. The
area for uncompleted properties is the planned area and is subject to change.
“Cumulative total investment size” includes properties under development or scheduled to be developed as of each date of publication and their (planned) investment amount. Properties scheduled to be developed include those targetedor 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 thepossibility 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).
[Four Roadmaps to Stable Growth and Trajectory of Growth] / [Steady Implementation of Four Roadmaps] / [Financial Highlights] / [Our Portfolio (After acquisition of properties acquired in the 8th 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 and9th fiscal periods )“Market cap”
FP ended July 2019 (End of 6th FP): Closing price of the investment unit as of the end of the FP ended July 2019 (393,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended
July 2019 (379,000 units)
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)“After the 3rd follow-on offering”: Closing price of the investment unit in regular trading as of February 28, 2020 (482,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of February 28, 2020 (441,000
units)“Total floor area"
Figures based on the record on the register, rounding down to the nearest whole number.
“Appraisal value”
Appraisal value indicates figures corresponding to the quasi co-ownership interest ratio of each property. Appraisal values with January 31, 2020 (end of 7th FP) as the appraisal date are indicated for properties owned as of the end of
7th FP, and those with November 30, 2019 as the appraisal date are indicated for properties acquired in 8th FP.
For MFLP Sakai, the total of appraisal value of each quasi co-ownership acquired (the value increased along with owning 100% interest is added for properties acquired in 8th FP (80% quasi co-ownership interest)) is indicated.
However, such is not included in the appraisal value as of the end of 7th FP.
“Adjusted forecast NOI yield”
Annualized after subtracting the fixed asset tax and city planning tax for the properties acquired in 8th FP from the NOI assumed in the earnings forecast for the 8th and 9th fiscal periods as well as adjusting special factors, anddividing it by the total acquisition price.
Subtotal (average) and total (average) for each category indicate the weighted average based on acquisition price.
“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 theweighted average based on acquisition price.
“Appraisal NOI yield”
Appraisal NOI as a percentage of appraisal value. “Average appraisal NOI yield” and subtotal (average) and total (average) 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 January 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.
“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 July 2019 (End of 6th FP): (Net assets as of the end of FP ended July 2019 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended July 2019) / Number of investment units
issued and outstanding (379,000 units)
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 ofinvestment units issued and outstanding (379,000 units)“After the 3rd follow-on offering” and “After acquisition of properties acquired in the 8th FP”: (NAV as of the end of FP ended January 2020 (End of 7th FP) + Unrealized gain on appraisal basis of properties acquired in 8th FP (*) +Total issue amount of the 3rd follow-on offering (29,727,512,000 yen) /Number of MFLP-REIT’s investment units issued and outstanding after the 3rd follow-on offering (441,000 units)*Unrealized gain on appraisal basis of properties acquired in 8th FP: (total) Appraisal value of properties acquired in 8th FP – (total) Acquisition price of properties acquired in 8th FP.
“Unrealized gain”
A period-end book value is indicated for properties held by MFLP-REIT as of the end of 7th FP, and a figure obtained by subtracting the total of acquisition prices from appraisal value is indicated for properties acquired in the 8th FP.
“Occupancy rate”
Leased area as a percentage of leasable area. Based on concluded agreements as of January 31, 2020.

43

Notes on Matters Stated in this Document[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 ofearnings.
(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.
[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 January 31, 2020 with leased areas. Concerning the subject lease agreements, when a new leaseagreement ("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 be from the start of the initial lease agreement to
the expiration date of the re-contract, and used in the calculation as such.
[Annual Power Generation by Solar Panel]
Actual power generated between January 2018 and the end of December at 10 properties with photovoltaic panel facilities and owned by MFLP-REIT as of January 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
and Communications' "Summary Report on Prices, etc. of Fixed Assets."(2) In the "Analysis of Japan's logistics facilities stock" graph, "Leading-edge logistics facilities" is the figure of each year's sum total of the gross floor area of leading-edge logistics facilities (refers to rental logistics facilities that havegross floor area of at least 10,000 m2 and, in principle, ceiling height of at least 5.5 m, 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 thesum total of the floor 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 areabasis).
(7) In the "Analysis of Japan's logistics facilities stock" graph, "Share of logistics facilities 40 years old or older" is each fiscal year's "Estimate for logistics facilities 40 years old or older" expressed as a percentage of the overall stock
estimate (gross floor area basis).
(8) "Gross floor area" is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed to be completed after one year has elapsed
from construction start. Accordingly, gross floor area may not match the floor area on the building confirmation certificate, construction completion drawing or register.

44

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. Information presented on
this document should not be interpreted, unless otherwise specified, 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 toprovide 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
no obligation 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.
The document is prepared solely for use by residents of Japan and is not intended for use by non-residents of Japan.

45

MEMO

46