Financial Results for the
16th Fiscal Period (“FP”)
Ended February 29, 2024

April 15, 2024

LaSalle LOGIPORT REIT

1

Table of contents

1

2
3
4
5

Operational highlights

P 3

16th fiscal period financial results

P 20

Current status of the portfolio

P 24

Logistics real estate market outlook

P 41

Appendix

P 49

LaSalle LOGIPORT REIT

2

Operational Highlight1

2

DPU for FP ended Feb. 2024 increased by +23% at JPY 3,802.
Stabilized DPU increased to JPY 3,600 level from continued
disposition gain expected until Aug. 2025
2nd asset trade deal to dispose additional 12.5% of Logiport
Nagareyama B in exchange for two new indirect investments

3 10% discount to NAV, during fiscal period ending Aug. 2024

Announced maximum of JPY 6Bn of share buyback below

4 Securing 5 years of fund life and JPY 100Bn of dry powder

Established a new Sidecar Fund with seed AUM of JPY 70Bn.

Maintained high occupancy with a near full occupancy with
5 +4%
rent growth achieved and substantial rent increase at
Higashi-Ogishima asset. Execute ALM to rising interest rates

Note 1 : Maximum 2.3% of total unit outstanding

LaSalle LOGIPORT REIT

3

Forecast DPU expected to cruise at JPY 3,600 level
Capital gain from the partial sale of Nagareyama B to be incurred evenly for 4 consecutive FPs from 16th FP to 19th FP
Development and disposition gains push-up DPU

Continued internal growth and capital gain

Maintain high level of stabilized DPU＋ Disposition gain from Nagareyama B (+594 yen)
＋ Gain on redemption of preferred equity for the Suminoe
Project SPV (+260 yen)
＋ Internal Growth and revenue contribution from 3
properties acquired in July 2023 (+154 yen)
＋ Decrease in leasing expenses (+59 yen)
▼ Increase in earnings-linked AM fee and decrease intemporary distribution in excess of retained earnings(-342 yen)
▼ Increase in refinancing cost and decrease in other SG&A(-13 yen)▼ Decrease of both one-time Suminoe redemption
gain and distribution from TK investment to thebridge fund (-266 yen)
＋ Indirect investment in operating assets and internal
growth such as expansion of LP Kitakashiwa (+43yen)
▼ Property tax expensed for 4 new assets (-30 yen)
▼ Increase in repair expenses (-27 yen)
＋ Decrease in earnings-linked AM fee (+74 yen)
▼ Reserve expense – e.g. interest expense fromrefinancing (-15 yen)

＋ Annual contribution of indirect investment in
operating assets and expansion of LP Kitakashiwa(+21 yen)▼ Decrease in revenue by a conservative assumptionof occupancy rate (-27 yen)
＋ Decrease in leasing expense and repair expenses(+36 yen)▼ Increase in earnings-linked AM fee and other reserve
expense – e.g. interest expense from refinancing(-9 yen)

3900
3700
3500
3300

3,802

3100
2900
2700
2500

3,090

15th FP Actual( Aug. 2023)+712 yen(+23.0%)16th FP Actual( Feb. 2024)-221 yen(-5.8%)+21 yen(+0.6%)
3,581

3,602

17th FP Forecast( Aug. 2024)

18th FP Forecast( Feb. 2025)
LaSalle LOGIPORT REIT

4

Active asset management under uncertain capital market environment
Intend to use cash with cost-of-capital consciousness, while maximizing unitholder value at the same time

Portfolio Strategy

Asset Strategy

Excess Return Strategy

Investment and financing with afocus on cost of capitalInternal growth by strengthening
portfolio profitability

Utilizing strategic capital

Leverage real estate market
liquidity for capital raising(Continued dispositions)

Maintain high occupancy rates
by AM and leasing capabilities

Pursue higher return throughindirect investment instabilized assets

Pursue strategic
asset trades

Close rent gap fromcompetitive portfolio

Secure long-term flexibility by
utilizing Sidecar Fund

Share buyback at an
attractive unit priceCapex resulting upward rent
revisions and positiveenvironmental impact

Selective investment toleasing and development risks

LaSalle LOGIPORT REIT

5

Active asset management under uncertain capital market environment
Balance sheet management is critical, while expanding off-balance sheet AUM through third-party strategic capital for future growthBalance Sheet Management
Asset

Pursue continued internal growth(40% of leases mature within 2 years)

Liability

ALM for sustainable internal growth

Maintain robust financial position(Hedge interest, maintain duration and control LTV)

EquityAsset trades

Unitholder return from disposition
proceeds and liability management(Realize capital gain and capital raise)

Unitholder returns(Continued capital gains and share buyback)Utilize off-balance sheet strategic capital

Revenue stream from same-boat Investment

Off-balance sheet AUM for growth strategy
Stabilized
Asset
SPV

Sidecar Fund

Development
SPV

Long-term stablehigh-yield
investment

Secure flexibility
for future
external growthPursuedevelopment gain
LaSalle LOGIPORT REIT

6

Capital raising and distribution policies
Capital raising from asset disposition is optimal in current market conditions. Phased dispositions achieve high payout ratio

Arbitrage between real estate and public capital markets
Cost of capital in
public J-REIT market(1)＞Capitalization rate in realestate market

Increase in FFO payout ratio from phased dispositions
FFO Payout Ratio(4)86.8%

4.1～4.4%(2)2nd Asset
Trade

86.1%

86.3%

c. 86%

Capital gains
JPY 1,670 MM

Capital gain
JPY 1,140 MM

Capital gain
JPY 1,140 MM

Capital gain
JPY 1,140 MM

Aug. 2023
Feb. 2024(Stabilized Base) (Actual)Aug. 2024(Forecast)

Feb. 2025(Forecast)Aug. 2025(Estimate)

84.5%

3.8%(3)

LLR Implied NOI Yield(1Q 2024)

Disposition NOI Yield for
LP Nagareyama B

Asset disposition is the optimal way to raise capital,
considering low cap rate from liquid real estate market

FFO payout ratio to be sustained at c. 86%
from phased dispositions

Note 1：Implied Cap rate: Cost-of-capital when financing through equity offering and keeping the LTV at current level without using any cash in hand
Note 2：Based on the unit price from Jan. 4 2024 through Mar. 31 2024 140,900yen to 158,800yen
Note 3：NOI Yield calculated by converting annualized based actual NOI for FP Aug. 2023 (JPY 666MM) into co-ownership share (37.5%) divided by disposition price (JPY 13,125MM)
Note 4：FFO payout ratio is the dividend (including excess of retained earnings) divided by the sum of net income and depreciation (excluding capital expenditure)

LaSalle LOGIPORT REIT

7

Capital allocation of disposition proceeds
Use of proceeds for the 2 dispositions. Signed MOU for further dispositions, to be allocated to enhance unitholder valueSame-boat investment
to the Sidecar Fund

Disposition proceeds
for Nagareyama B
Announced additional
disposition of 12.5%
co-ownership(Total of 50%)

Potential proceedsfrom the disposition(50% ownership)

13Bn

c.

(1)

Allocation of the proceeds from the 1st and 2nd dispositions

Investment intodevelopment project(Profit from disposition excluded as it will all be distributed to unitholders)

JPY

13Bn

Acquisition of
Inuyama Logistics Center

JPY 3.3Bn

Indirect investment tostabilized assets(Nanko, Yachiyo, Urayasu,
and Okinawa Itoman)

JPY 3.6Bn

Share buybackMax.
JPY 6Bn

Indirect investment tostabilized assets

Dry powder as ofFeb. 2024

CAPEX forinternal growth

10.8BnUnitholder return

Debt repayment(controlling LTV)

Note 1：As of April 15th 2024, 50% of co-ownership of Nagareyama B will be traded to the co-owner and a basic agreement for an asset trade for the rest of the co-ownership isconcluded, however at this point, the assets that will be traded with Nagareyama B is not decided and therefore LLR is not obliged for any acquisition or disposition

LaSalle LOGIPORT REIT

8

2nd Asset trade deal: Additional disposition of Nagareyama B
Out of disposition proceeds of JPY 3.2Bn, total of JPY 840MM will be allocated to indirect investments (JPY 2.4Bn of residual cash)
Acquisition : 49% Share of TK Equity Interest B (Settlement in Mar. 2025)

Disposition: Nagareyama B (12.5%)

Urayasu Properties GK

Disposition Price(12.5% of Co-Ownership)Non-recourse loan
(Senior) JPY 2,590MM

JPY 4.38Bn

Proceeds from Disposition(Book value as of FP Feb. 2024)

Location

Urayasu, Chiba

Constructed

Jan. 2001

GFA

14,208 m2

Occupancy

100% (Single Tenant)Underlying Asset

Non-recourse loan
(Mezzanine) JPY 1,100MM

Urayasu
Logistics Center

TK Equity Interest A(Preferred TK) JPY 200MM
TK Equity
Interest B
51％
JPY 330MMTK Equity
Interest B
49%
JPY 320MM

Acquisition : 49% Share of TK Investment to SPV (Settlement in May. 2024)

JPY 3.24Bn

Okinawa Itoman Properties GK
Non-recourse loan
(Senior) JPY 3,330MM

Disposition Profit(Realized in FP Aug. 2025)
JPY 1.14Bn

Location

Itoman, Okinawa

Constructed Aug. 2021
GFA

13,609 m2

Occupancy

100% (Single Tenant)Underlying Asset

Non-recourse loan
(Mezzanine) JPY 1,180MM

Okinawa Itoman
Logistics Center

TK Equity Interest A(Preferred TK) JPY 600MM
TK Equity
Interest B
51％
JPY 530MM

LaSalle LOGIPORT REIT

TK Equity
Interest B49%
JPY 520MM

9

Share buyback – Resolution and objective
Conduct share buyback at an attractive share price. Consider debt repayment to control potential LTV increase from the share buyback

Objective(JPY)

Investment at an attractive price

170,000

LLR’s unit price and key parameters(Below P/NAV 0.9x)

Immediate DPU accretion
Absorb temporary selling pressure

165,000

Reference NAVPS(1):160,535 yen (P/NAV 1.0x)
160,000

155,000

Resolution# of Units

Max. 43,000 Units(2.3% of total units outstanding)AmountMax. JPY 6Bn

150,000

144,482 yen (ICR(2): 4.4% / P/NAV 0.90x)

145,000

140,000

Buyback period

Apr. 16th to Jul. 31st 2024
*If the unit price stays above the limit price during the buyback period, we may
not be able to fulfill the max amount, or even not buy any units at all

135,000

136,455 yen (ICR(2): 4.6% / P/NAV 0.85x)

130,000
23/1

23/4

23/7

23/10

24/1

Note 1: NAVPS (NAV per share) as of end of FP Feb. 2024, with the assumption Nagareyama B is 50% disposed
Note 2: ICR is the implied NOI yield for each unit price, based on the forecast NOI. Assumes net debt based on disposition proceeds of 50% of Nagareyama B

24/4

24/7

24/10

25/1

25/4

LaSalle LOGIPORT REIT

25/7
10

Enhancing unitholder value by utilizing third-party strategic capital
Established track record and credibility since 2018 offer various options of investment, source of funding and structure flexibility
Utilizing strategic capital
Investor /Lender

LLR

Co-investment

External growthpotential and flexibility

Acquisition
capacityc. JPY 100Bn

c. JPY 100Bn

Expected return

WACC

8%+

c. 3%(1)Equity ownership
by LLR

Total investment
by LLR

Gain Realized

Recycled Capital

JPY 1.7Bn

JPY 3.7Bn

Strategic Capital

Higher returns
Sidecar Fund

AUM

Stabilized
Asset
SPV

Development
SPV

Since 2018, as part of the Excess Return Strategy, LLR has been
making indirect investments towards low-occupancy assets,

Mitigate risks

development projects, and bridge funds by utilizing third party

10%～49%JPY 6.8Bn

strategic capital. Strategic capital enables LLR to leverage its
investment size and availability as well as gain higher return fromits low cost-of-capital. As external growth through equity-raise is
not the optimal choice under the current capital market

Capital recycle

environment, off-balance sheet growth is an essential driver for
LLR to continue growing and ultimately maximize unitholder return.
Note 1 : WACC is an indicative level in the current market and not a committed figure for future vehicles nor any specific funds/SPVs

LaSalle LOGIPORT REIT

11

Track record and investment types of third-party strategic capital
Various risk/return profile from development to stabilized assets. Various fund types from single asset to blind-pool funds
LRF series (Blind-pool funds)

AUM(JPY Bn)

100

80

LRF 1

LRF 2

LRF 3

Fund Type

Development Fund

Bridge FundSidecar Fund

Investable
Amountc. JPY 100Bn

c. JPY 90Bn

c. JPY 170Bn

Duration

Ended 2023

Ended 2024

5 years

Stabilized asset SPV (Long-term equity investments)
60

Project #1
Underlying Nanko Logistics Center
Yachiyo Logistics Center
Asset

40

Project #3

Urayasu
Logistics Center

Okinawa Itoman
Logistics Center

AUM

JPY 13Bn

JPY 4.2Bn

JPY 5.5Bn

LLR’s
Investment

JPY 2.74Bn

JPY 320MM

JPY 520MM

20Development SPV (Collaboration with external partners)

0
2018
LRF1

Project #2

LRF2

2019

2020

LRF3

Stabilized Asset SPV

2021

2022

2023

2024

Development SPV

Matsudo Project

Sendaiizumi Project

LLR’s Investment(Share)

JPY 0.18Bn(33%)

JPY 0.48Bn(25%)

Total Investment(planned)

JPY 0.4Bn

JPY 1.62Bn
LaSalle LOGIPORT REIT

12

Sidecar Fund established in Feb. 2024 : LRF3 (the 3rd blind-pool fund)Secured flexibility in external growth with a 5-year fund life. Additional dry powder of JPY 100Bn secured for future acquisitions

Key fund terms

Assets under management (5 seed assets and 2 new acquisitions)

AUM (as of Mar. 2024)

7 Assets / JPY 71Bn
Remaining acquisition capacityc. JPY 100Bn

LP Kazo

Kounosu Project

Urawamisono Project
New

Fund life

5 years (until Feb. 2029)
Iruma ProjectSame-boat investment by LLR

New

JPY 1.23Bn / 17.6%

LLR has the preferential negotiationrights for the underlying assets

Osaka-Suminoe
Logistics Center

Iwanuma Project

Amagasaki Project

LaSalle LOGIPORT REIT

13

Updated pipeline: JPY 200Bn
Development project by both the sponsor and 3rd party partners (excluding JPY 70Bn of AUM by the Sidecar fund)Development Projects /Leasehold Land

Sponsor Development Projects (9 properties, c. 900,000 m2)

Managed by Dev SPVLOGIPORT Kobe Nishi
Completed in Nov. 2021

Matsudo Logistics Center
Completed in Jan. 2022

Matsudo Project
Scheduled completion in
Sep. 2024

LOGIPORT Nagoya
Completed in Jul. 2023

Managed by Dev SPVLOGIPORT Tama Mizuho
Scheduled completion inJun. 2024

LOGIPORT Fukuoka Kasuya
Scheduled completion in
Aug. 2024
New

Yatabe Logistics Center
Scheduled completion in
Feb. 2025

New

Iwatsuka Logistics Center
Scheduled completion inJun. 2025

Tokyo Shinonome
Logistics Center
Scheduled completion in Nov 2024
New

Hyogo-Amagasaki Logistics Center
Scheduled completion in
Jul. 2025

Sendai Project
Scheduled completion in
1H 2026
Held by LLR

Higashi Ogishima(leasehold land)

LaSalle LOGIPORT REIT

14

Strong portfolio management leading to continuous internal growth
By leveraging Lasalle Group’s expertise in asset management and leasing, we aim to maintain high occupancy while reducing rent gap

Average occupancy(Warehouse space onlyor figures in brackets)

Area subject tolease renewal(1)(% of portfolio
warehouse space)

Renewal rate(1)(Lease area)

Rent revisions
renewed to date(1)FP ending Feb. 2024
(16th FP)FP ending Aug. 2024
(17th FP)FP ending Feb. 2025
(18th FP)

99.2％

99.1％

98.6％

(99.9％)

252,000(99.9％)

m2

60,000(17.0％)

100％
+4.4％

Note 1: Excludes three Higashi-Ogishima properties and groundlease of Higashi-Ogishima(4.1％)

82％(49,000 m2)+4.4％

Both actual for 16th FP and forecast for 17thand 18th FP maintain high occupancy rates(99.5％)

m2

112,000(7.6％)

m2

100% renewed despite lease expirations for the
16th FP was more than 2x compared to average,
by capturing tenant demand through provenin-house leasing capabilities of LaSalle Group

41％

Already renewed most of the area for 17th FP,
and renewal rate for 18th FP also exceeded
historical average (typically, c. 20-30% as ofresults announcement for the next fiscal
period forecast)+4.3％

Reng gap vs. target rent is c.5% for overall
portfolio. Rent gap vs. market spot rent isc.15%(46,000 m2 )LaSalle LOGIPORT REIT

15

Portfolio with internal growth potential even under potential inflation
Potential for early rent increase under inflationary environment. Japanese standard leases at Higashi-Ogishima also secured rent increases
Fixed Lease (19 properties)+5.1%

Higashiogishima (A/B/C)

NLA Ratio

3 assets at
Higashiogishima
290K m2(19%)(Renewal Area 590,000m )WALE

4.4 years

WALE

1.4 years

Rent Gap

4～10%

Rent Increase forJapaneseStandard Lease(4,800 tsubo agreed for 2024 onwards)(20 year-lease at Logiport Osaka Bay)% of Rent Revision
Clause for JapaneseStandard Lease(percentage of the total
Japanese Standard Lease Area)• Rent Revision: Every 5 years• Calculation: 5-year growth rate of average annual
CPI index multiplied to previous 5-year rent
• Upside only (applied only when CPI is above theprior revision)

Rent Revision
Clause forJapaneseStandard Lease

Area with CPI
Linked Clause

CPI Linked Clause2(vs target rent / spot market rent)c. 50,000m2

Fixed lease 19
properties
1,180K m2(81%)

Ave. rent increase(past 3 years)+6.6%

Ave. rent increase(past 3 years)(Fixed lease renewals: c.160,000m2)(Switched to Fixed leases: c. 50,000m2)+19.3%
99%••

Rent revision upon discussion
Rent revision during the lease term if thecurrent rent is considered inappropriate forreasons such as rise in expense, economic
reasons or rent gap with surrounding market,
etc.

LaSalle LOGIPORT REIT

16

Financing strategy amid uncertain interest rate environment
Maintain long-term and fixed interest to the extent possible. Less volatility in interest rate market may change the strategy

Refinancing in Feb. 2024

Financing policy and key indicators

Refinanced 12.1billion yen in Feb. 2024, and increased the fixed interest
rate ratio while lengthening the loan term. Despite increase in the baserate, financial stability is well controlled.
Repaid Debt

Long-term Loan

Financing policy to maintain the average debt duration and fixed interest
rate ratio is key while monitoring and managing borrowing costs. If LTV
rises due to buyback, we may control the LTV by debt paydown

Refinanced Debt

JPY 9.1Bn

LTV

41.9%

34.8%

(vs. total assets)(vs. appraisal value)

JPY 12.1Bn
Bridge Loan(1)

JPY 3Bn

Fixed Rate Ratio

75.1%

100.0%

Fixed Rate Ratio

Ave. Term

6.3 years

7.8 years

Ave. Duration
Remaining

Ave. Interest Rate

0.65%

1.22%

(Base Rate)(0.22%)

7.9 years

Ave. Duration(0.89%)(7.6 years incl. bridge loan)

90.7%( 86.8% incl. bridge loan)

4.5 years( 4.2 years incl. bridge loan)

Ave. Interest Rate

Note 1: Bridge loan is the JPY 10..4Bn loan borrowed on Jul. 6 2023 to acquire the new assets (3 properties, JPY 23.1Bn) announced on Jun. 23 2023, and is due Jun. 28 2024. As of
end of February 2024 JPY 7.4Bn is outstanding

0.64%( 0.63% incl. bridge loan)

LaSalle LOGIPORT REIT

17

Asset liability management analysis
Potential rise in interest rate could be absorbed by rent revisions from shorter WALE versus debt maturity(K m2)

Lease Maturity Ladder

240(JPY 100MM)

Fixed Lease

16%

Debt Maturity Ladder

240

16%

Debt
Bridge Loan(1)Higashi-Ogishima A/B/C
180

12%

180

12%

120

8%

120

8%

60

4%

60

4%

0%

0

0

24/8 25/2 25/8 26/2 26/8 27/2 27/8 28/2 28/8 29/2 29/8 30/2 30/8 31/2 31/8 32/2 32/8 33/2 33/8 34/2

Rent renewal within 2 years
630,000m2(42.5％ of portfolio)

Rent Revision+5～10%(assumption)

Annual rents revenue growth : 1.1～2.1% (analysis)

24/8 25/2 25/8 26/2 26/8 27/2 27/8 28/2 28/8 29/2 29/8 30/2 30/8 31/2 31/8 32/2 32/8 33/2 33/8 34/2

Debt maturing within
2 years: JPY 3.05Bn(18.7％ of total debt)(2)Rate increase+30～60bps(assumption)

Annual net income growth : 1.1～3.5% (analysis)

Note 1: Bridge loan is the JPY 10..4Bn loan borrowed on Jul. 6 2023 to acquire the new assets (3 properties, JPY 23.1Bn) announced on Jun. 23 2023, and is due Jun.28 2024. As of endof Feb. 2024, JPY 7.4Bn is outstanding
Note2: Bridge loan is excluded from both numerator, and denominator

LaSalle LOGIPORT REIT

18

0%

ESG initiatives
On-site consumption scheme and off-site PPA scheme to further reduce CO2 emissions and electricity costs
Off-site PPA(Renewable electricity supply between LLR properties)

Reduction of CO2 and electricity cost throughOn-site Consumption Scheme

Signed basic agreement to install solar power panels on the roofs of
LOGIPORT Shinmoriya and LOGIPORT Kashiwa Shonan to supply renewableenergy to five other properties within LLR portfolio

In Jul. 2022, solar panel was installed for on-site consumption on theremaining half of empty roof-top space of Logiport Kawasaki Bay. For FP
16, c. 31% of total electricity was covered by solar power

Stable supply of electricity

LOGIPORT Higashi
Ogishima A, B and C

LOGIPORT Kashiwa
ShonanTotal 4.3 MW

LOGIPORT Kawasaki Bay

LOGIPORT Kitakashiwa

LOGIPORT Shinmoriya

Capacity

LOGIPORT Sagamihara

Half of the roof-top is filled with FIT solar panel to sell electricity
and the other half is filled with on-site consumption solar panel.
CO2 reduction
c. 3.7MM kwh p.a.

Reduction inelectricity costs
JPY 21MM per FP(1)Note 1: Reduction in electricity costs were estimated by assuming the unit price of electricity purchased throughthis off-site PPA initiative is replaced with the actual annual electricity consumption in 2022 at the two
properties, LOGIPORT Kitakashiwa and LOGIPORT Higashi Ogishima B.

Capacity
Total 3.2 MW

CO2 reduction
c. 550K kwh(FP 16)

Reduction inelectricity costs

JPY 6 MM(FP16)(2)Note 2: Calculated based on the difference between the estimated normal electricity cost and the actual onsite consumption scheme cost

LaSalle LOGIPORT REIT

19

2
16th fiscal period financial results

LaSalle LOGIPORT REIT

20

Continuous growth of DPU and NAV per unit
NAV per unit (JPY)DPU including distributions in excess of earnings per unit (JPY)

3,820
157,764
3,670

151,470

3,581 3,602

161,124

162,119

153,855

146,121139,066

3,200

3,193
3,077

121,413 121,926
3,137

114,8313,079 3,097 3,090

2,892

104,799 105,231

106,549

2nd FP
17/2

4th FP
18/2

108,962 110,018

100,300

2,717
2,650

2,638
2,483

2,453
2,379

1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP 17th FP 18th FP
16/8
17/2
17/8
18/2
18/8
19/2
19/8
20/2
20/8
21/2
21/8
22/2
22/8
23/2
23/8
24/2
24/8
25/2

1st FP
16/8

3rd FP
17/8

5th FP
18/8

6th FP
19/2

7th FP
19/8

8th FP
20/2

9th FP
20/8

10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP
21/2
21/8
22/2
22/8
23/2
23/8
24/2

LaSalle LOGIPORT REIT

21

16th FP (ending February 2024 ) financial results summary
Comparison of 15th and 16th fiscal periods
Units: MM yen
Real estate leasing revenues

Difference between 15th FP actual vs. 16th FP actual

15th FP
Actual (a)16th FP
Actual (b)Diff(b) - (a)11,215

11,426+211

Disposition gain

-

1,147

+1,147

Dividend income

-

532

+532

Interest income

-

20

+20

2,541

2,302

-239

NOI

8,674

9,124

+450

NOI + Disposition gain・Dividend
income・Interest income

8,674

10,823+2,149Depreciation

1,468

1,539

+71

Corporate operating expenses

1,463

1,929

+466

5,741

7,354

+1,613

652

715

+63

Real estate operating expenses（1）Operating income

Non-operating expenses
Ordinary income

5,090

6,641

+1,551

Net income

5,089

6,640

+1,551

Distributions per unit (yen)

3,090

3,802

+712

Earnings per units (yen)

2,725

3,555

+830

Dividend in excess of earnings(yen)

365

247

-118

LTV

42.1%

41.9%

-0.2％

Average occupancy rate

99.0%

99.2%

+0.2％

（1） Excluding depreciation

Units: MM yen

15th FP
Actual(a)

16th FP
Actual(b)Diff(b)-(a)Real estate leasing revenues
Disposition gain

-

1,147

+1,147 Gain from the 1st sale of Nagareyama B

Dividend income-

532+532 Gain from the Suminoe project ＆ LRF2

Interest income-

20+20 Income from Specified bonds

619

538

-81 Decrease of electricity costs-103 Decrease of electricity costs

Utilities

Real estate operating expenses
Utilities

591

488

Leasing expense

292

181

-111 In accordance with leasing plans

Corporate operating expenses
AM fees

1,342

1,762

+420

365

247

-118

Changes in performance-linked
components

Distributions per unit
Dividend in excess ofearnings

Adjustment of One-time distribution inexcess of earnings

LaSalle LOGIPORT REIT

22

17th FP (ending August 2024 ) & 18th FP (ending February 2025) forecast
Forecasts for 17th and 18th fiscal periods
16th FP
Actual(a)Difference between 16th FP actual vs. 17th FP forecast
17th FP
Forecast(b)

11,426

Disposition gain

1,147

Dividend income
Interest income

Diff(b) - (a)18th FP
Forecast(c)Diff(c) - (b)11,511+85

11,339

-172

1,137

-10

1,144

7

532

25

-508

75

+50

20

69

+49

89

+20

2,302

2,486

+184

2,347

-139

9,124

9,025

-99

8,992

-33

10,823

10,256-567

10,301+45

Depreciation

1,539

1,537

-2

1,519

-18

Corporate operating expenses

1,929

1,793

-136

1,804

+11

7,354

6,925

-429

6,977

+52

715

694

-21

700

+6

Ordinary income

6,641

6,231

-410

6,276

+45

Net income

6,640

6,229

-411

6,275

+46

Distributions per unit (yen)

3,802

3,581

-221

3,602

+21

Earnings per units (yen)

3,555

3,335

-220

3,359

+24

Units: MM yen
Real estate leasing revenues

Real estate operating expense（1）NOI

NOI + Disposition gain・Dividend
income・Interest income

Operating income

Non-operating expenses

Dividend in excess ofearnings(yen)Units: MM yen

16th FP
Forecast(b)Diff(b)-(a)Operating Revenues
10,88910,917

Dividend income

532

25

Interest income

20

69

Repair ＆ Leasing expense

326

372

+46 In accordance with repair＆leasing plans

AM fees

1,762

1,622

-140

657

689

+32 Increase in refinancing cost

Increased rents revenue+28 Asset trade and internal growth contribution-508 Decrease of one-time gain
Increase in interest income from
+49
Mezzanine bonds

Real estate operating expenses
Corporate operating expenses
Non-operating expenses
Debt related expenses

Changes in performance-linked
components

Difference between 17th FP forecast vs. 18th FP forecast
Units: MM yen
Operating Revenues
decreased rents
revenue

17th FP
18th FP
Forecast Forecast(b)(c)
10,917

10,784Diff(c)-(b)-133

Units: MM yen
Rental income based on an assumed
occupancy rate of 98.6%

Dividend income

2575+50 Dividend income from Stabilized Asset SPVInterest income

69

89

+20

247

246

-1

243

-3

LTV

41.9%

42.0％

+0.1%

42.1%

+0.1%

Repair＆Leasing expense

Average occupancy rate

99.2%

99.1%

-0.1%

98.6%

-0.5％

Non-operating expenses（1） Excluding depreciation

15th FP
Actual(a)

Real estate operating expenses

Debt related expenses

Increase in interest income from
Mezzanine bonds

372

300

-72 In accordance with repair＆leasing plans

689

697

+8 Increase in refinancing cost

LaSalle LOGIPORT REIT

23

3

Current status of theportfolio

LaSalle LOGIPORT REIT

24

Features of LaSalle LOGIPORT REIT

1

Focused investments on Prime Logistics in Tokyo and Osaka• Portfolio is primarily comprised of large-scale logistics facilities in Tokyo and Osaka• In order to ensure superior mid- to long-term competitiveness, there is a focus given to location
and building specifications which are the source of a given properties’ characteristics

2

Leveraging LaSalle Group’s asset management capabilities

LOGIPORT Kawasaki Bay• Capitalize upon the LaSalle Group’s capabilities as a leading global investment manager withdeep roots in core investments• Utilize LaSalle Japan’s wealth of operational experience within the logistics space

Asset（1）Total acquisition price# of properties

Occupancy rate

380.8Bn JPY 459.1Bn

23

99.2%

Equity （1）Debt （1）

JPY

Total appraisal valueMarket capitalization

JPY

263.2Bn

NAV per unit

JPY

162,119

Appraisal NOI yield (2）

4.7%

LTV

Appraisal LTV

Credit rating (JCR)

41.9%

34.8%

AA (Stable)(1) As of Feb 29,2024(2) Appraisal NOI divided by the acquisition value of the 21 properties excluding the leasehold land

LOGIPORT Hashimoto

LOGIPORT Amagasaki
LaSalle LOGIPORT REIT

25

Location of LaSalle LOGIPORT REIT major assets
Tokyo Area (60km radius from JR Tokyo station)

Osaka Area (45km radius from JR Osaka station)

Joban
Expressway

TohokuExpressway

Ken-oExpressway

LP Kawagoe

LP Nagareyama B

LP Kyoto

LP Shin Moriya
Shin Meishin Expressway

LP Kita Kashiwa
LP Sayama Hidaka

LP Kashiwa Shonan

East Kanto
Expressway

Chuo
Expressway

Shin Tomei
Expressway

Osaka PortTokyo PortLP Osaka Bay
LP Sakai Chikko Shinmachi

LP Higashi Ogishima A, B, C
YokohamaPort

JR Osaka Station
LP Osaka Taisho

Kobe Port

Haneda Airport
LP Sagamihara

Itami
AirportNarita Airport

JR Tokyo Station
LP Hashimoto

Meishin Expressway
LP Amagasaki

Kanetsu
Expressway

LP Sakai

Higashi Ogishima (Leasehold land)

Kinki Expressway
LP Sakai Minamijimacho

LP Kawasaki Bay
Kansai Airport

Tomei
Expressway
0

Area ratio1

Tokyo Area

58.9 %

1 Calculated based on the acquisition price of the property

Osaka Area

37.6 %

10㎞

Other

3.5 %

0

10㎞

LaSalle LOGIPORT REIT

26

Population Density (people / ㎢)
Airport■ 0〜5,000
Port■ 5,001〜10,000■ 10,001〜

Portfolio with a diversified tenant baseConsumer oriented

Top 10 tenants

95.3 %

32.9 %

By tenant1

By tenantbusiness
profile3By end user
type3

No. of tenants2

175

Nippon Express 4.2%

Daily Consumables 29.5%

Home appliances 14.7%

3PL 64.2%

Manufacturing 14.7%

Kantsu 3.2%

E-commerce 12.5%

Food & Beverage 10.3%

Retail Trade 13.1%

Whole Trade 2.6%

Landcarry 3.0%

Ebara Logistics 2.9%

Apparel 6.9%

Furniture 2.6%

Maruwa Unyu 2.8%

Pharmaceuticals 0.8%

Other 17.9%

Other 5.4%

UT logistics 2.8%
Kao Corporation 2.8%

Misumi 2.7%

Kohnan Shoji 5.1%
Sagawa GL 3.4%

Raw Materials 4.7%

Others 67.1%
Note: As of 2/29/2024, 22 properties, excludes leasehold land asset
1

Calculated based on leased area

2

Some properties have overlapping tenants. Net number of tenants is 153

3

Calculated based on leased area (warehouse area only)

LaSalle LOGIPORT REIT

27

Internal growth – Property operations track record ①
Key indicators

Rent gap

Portfolio avg.
lease term（1）Fixed term lease properties
avg. lease term （2）3 Higashi Ogishima properties
avg. lease term

6.5 years

7.4 years

2.6 years

Portfolio avg.
remaining lease term （1）Fixed term lease properties avg.
remaining lease term （2）3 Higashi Ogishima properties
avg. remaining lease term

3.9 years

4.4 years

1.4 years

Downside
protection
c.10%@4,377 yen
Spot
Rent(3)

Lease expiration schedule(Fixed term lease properties (19 properties) (2) )@3,998 yen
Target rent(4)Rent Gap

c.15%

Medium-term
rent gap
c. 5%@3,803 yen
portfolio
avg. rent(5)Lease expiration schedule(3 Higashi Ogishima properties)(m2)
150,000

10%(m2)
150,000

10%
Japanese standard leases

120,000

8%

120,000

90,0006%

90,000

6%

60,0004%

60,0004%30,0002%

30,000

2%

0%

0

0

17th 18th 19th 20th 21th 22th 23th 24th 25th 26th 27th 28th 29th 30th 31th 32th 33th 34th 35th 36th After
24/8 25/2 25/8 26/2 26/8 27/2 27/8 28/2 28/8 29/2 29/8 30/2 30/8 31/2 31/8 32/2 32/8 33/2 33/8 34/2 37th

1

4

2

5

23 properties owned by LLR as of February 29, 2024
The 19 properties owned as of the end of the 16th FP, excluding leasehold land and 3 Higashi Ogishima assets
3
Offering rent unit price of the warehouse portion of the newly developed property

Fixed term lesases

17th 18th 19th 20th 21th 22th 23th 24th 25th 26th After
24/8 25/2 25/8 26/2 26/8 27/2 27/8 28/2 28/8 29/2 27th

8%

0%

Quoted rent unit price of the warehouse portion prepared by the management company based on the market report
Rent unit price of the warehouse portion

LaSalle LOGIPORT REIT

28

Internal growth – Property operations track record ②(Fixed Term Lease properties)
Changes in rental rates upon lease maturity（ 1）(m2)Rent Increase

300,000

Same Rent level

Changes in rental lease renewal track record for lease maturity （ 1）(m2)

Rent Decrease

250,000

150,000

100,000

238,236

20,091
10,53811th FP
2021/8100,000

14,334

18,361

5,388
4,062

59,10656,19012th FP
2022/213th FP
2022/888,89714th FP
2023/250,00063,221

15th FP
2023/80

16th FP
2024/2

Changes in rental rates upon lease maturity （ 1）
Rent Increase
100.0%
80.0%

Same Rent Level
18.4%

23.7%

18.5%

Rent Decrease
5.6%

Average
Increase
Ratio

52.7%
100.0%
27.0%

81.6%

81.5%

23,464

11,897
8,091

11th FP
2021/854,002

2,587
53,60389,181

12th FP
2022/213th FP
2022/814th FP
2023/240,78536,77088％

Renewals
100.0%
30.3%

15th FP
2023/816th FP
2024/2

94.4%

20.0%

4.6%

Rent Replacement
Average
Renewals
Ratio

6.9%

18.2%

80％

80.0%
60.0%

76.3%

234,876

19,807

Changes in rental lease renewal track record for lease maturity （ 1）

60.0%
40.0%

17,395200,000

150,000

0

Renewals

250,000

14,034200,000

50,000Tenant Replacement

300,000

59.5%
95.4%

40.0%
20.0%

54.8%

69.7%

93.1%

81.8%
45.2%

40.5%

20.3%
0.0%

11th FP
2021/812th FP
2022/213th FP
2022/814th FP
2023/2

15th FP
2023/816th FP
2024/2(1) The area where the lease has matured during the fiscal period (warehouse only, excludes temporary use)

0.0%

11th FP
2021/812th FP
2022/213th FP
2022/814th FP
2023/2

15th FP
2023/8

LaSalle LOGIPORT REIT

16th FP
2024/229

Portfolio list ①(1)No.

Property name

Address

Total floor
Year ofOwnership
area (㎡) completion ratio (%)

Acquisition
Investment Appraisal NOI yield (2)priceratio (%) (MM yen)(%)
(MM yen)Occupancy
rate (%)

Fixed term
lease
ratio(3)(%)# oftenants

WALE (4)(years)PML (5)(%)

Tokyo-1

LP Hashimoto (6)Sagamihara,
Kanagawa

145,801

Jan 2015

55

21,200

5.6

27,100

4.4

100.0

100.0

17

1.8

1.3

Tokyo-2

LP Sagamihara (6)Sagamihara,
Kanagawa

200,045

Aug 2013

51

23,0206.0

29,800

4.6

99.5

100.0

19

2.5

0.5

Tokyo-3

LP Kita Kashiwa

Kashiwa,
Chiba

104,302

Oct 2012

100

25,300

6.6

33,900

4.9

100.0

100.0

6

3.2

0.9

Tokyo-5

LP Nagareyama B (6)Nagareyama,Chiba

133,414

Jul 2008

87.5

23,275

6.1

29,575

5.0

99.9

100.0

8

2.7

2.3

Tokyo-6

LP Higashi Ogishima A

Kawasaki,Kanagawa

100,235

Apr 1987

100

19,0005.0

20,200

4.8

96.2

56.2

18

1.4

6.5

Tokyo-7

LP Higashi Ogishima B

Kawasaki,Kanagawa

117,546

Apr 1991

100

19,1205.0

23,000

5.2

95.7

56.5

20

2.0

6.2

Tokyo-8

LP Higashi Ogishima C

Kawasaki,Kanagawa

116,997

Sep 2001

100

23,7006.2

28,300

4.9

98.9

57.6

21

0.8

6.3

Tokyo-9

LP Kawagoe

Kawagoe,
Saitama

50,742

Jan 2011

100

11,9503.1

12,900

4.5

99.9

100.0

4

2.1

4.4

Tokyo-11

LP Kashiwa Shonan

Kashiwa,
Chiba

40,878Jul 2018

100

9,300

2.4

10,900

4.9

100.0

100.0

1

-(9)

1.6

Tokyo-12

LP Sayama Hidaka

Hidaka,Saitama

23,570Jan 2016

100

6,430

1.7

6,870

4.4

100.0

100.0

1

-(9)

3.5

Tokyo-13

Higashi Ogishima(land with leaseholdinterest)

Kawasaki,Kanagawa

-

-

100

1,189

0.3

1,890

3.4

100.0

-

1

-

-

Tokyo-14

LP Kawasaki Bay (6)Kawasaki,Kanagawa

289,164

May 2019

40

32,2008.5

37,000

4.2

99.8

100.0

11

5.0

3.3

Tokyo-15

LP Shinmoriya

Tsukuba Mirai,
Ibaraki

37,089Jul 2019

100

8,580

2.3

10,600

4.9

100.0

100.0

1

-(9)

0.9

LaSalle LOGIPORT REIT

30

Portfolio list ②(1)No.

Property name
LP SakaiMinamijimacho
LP Sakai Chikko
Shinmachi

Address

Total floor
Year ofOwnership
area (㎡) completion ratio (%)

Acquisition
Investment Appraisal NOI yield (2)priceratio (%) (MM yen)(%)
(MM yen)Occupancy
rate (%)

Fixed term
lease
ratio(3)(%)# oftenants

WALE (4)(years)PML (5)(%)

Sakai, Osaka

30,696

Oct 2016

100

8,150

2.1

9,860

4.8

100.0

100.0

1

-(9)

6.5

Sakai, Osaka

20,428Aug 2018

100

4,160

1.1

5,120

5.5

100.0

100.0

1

-(9)

7.6

LP Osaka Taisho(6)Osaka, Osaka

117,037

Feb 2018

62.5

17,655

4.6

21,600

4.6

99.8

100.0

12

5.9

8.4

Osaka-5

LP Amagasaki

Amagasaki,
Hyogo261,007

Oct 2017(7)100

48,20012.7

62,700

5.3

99.1

100.0

13

2.7

6.2

Osaka-6

LP Sakai(6)Sakai, Osaka

115,552

Mar 2017

50

12,075

3.2

13,600

4.8

99.0

100.0

5

2.4

8.7

Osaka-7

LP Osaka Bay

Osaka, Osaka

139,551

Feb 2020

100

40,00010.5

46,400

4.2

100.0

100.0

11

9.3

8.3

Osaka-8

LP Kyoto

Yawata, Kyoto

37,399Sep 2020

100

13,015

3.2

13,100

3.9

100.0

100.0

1

12.1

6.6

Other-1

Aisai Logistics Center

Aisai, Aichi

13,700Jul 2021

100

4,045

1.1

4,430

4.2

100.0

100.0

1

3.1

4.0

(9)

2.0

Osaka-1
Osaka-2
Osaka-3

Other-2
Other-3

Kariya Logistics
CenterInuyama Logistics
CenterKariya, Aichi

20,981

Nov 2022

100

6,045

1.6

6,830

4.3

100.0

100.0

1

-

Inuyama, Aichi

10,363

Nov 2022

100

3,270

0.9

3,480

4.2

100.0

100.0

1

-(9)

1.2

92.3

175(8)

3.9

3.0

Total / Average

2,126,507

380,879100.0

459,155

4.7

99.2

Real estate compatible securities
LLR-4

Preferred Shares of Japan Logistic Development 1 TMK (Matsudo Project)

185

LLR-6

Preferred Shares of Japan Logistic Development 2 TMK (Sendai Project)

475

LLR-7
LLR-8
LLR-9

563

Preferred Shares of NY Properties TMK(Nanko Logistics Center and Yachiyo Logistics Center)
Specified Corporate Bonds of NY Properties TMK(Nanko Logistics Center and Yachiyo Logistics Center)
TK Equity Interest of LRF3 Properties GK (7 properties

1,400

(10)

)

1,230

(1) 23 properties held as of the end of February 2024 and preferred shares held as of the end of March 2024
(2) Calculated by dividing the appraisal NOI by the acquisition price(3) Calculation based on rental income(4) Calculation based on leased area
(5) Based on Tokio Marine DR’s “22 property earthquake risk survey portfolio analysis report” as of September 2023
(6) Acquisition price and appraisal represent LLR’s co-ownership interest. Total floor area is for the entire property(7) The listed date is October 2017, when the conversion from factory to warehouse facility was completed(8) Gross number of tenants which includes duplicate tenants between various properties(9) Not disclosed as consent for disclosure has not been obtained from the tenant(10) 7 properties: LP Kazo, Osaka Suminoe Logistics Center, Konosu Project, Iruma Project, Urawa Misono Project,
Iwanumma Project, Amagasaki Project

LaSalle LOGIPORT REIT

31

LRF3 Properties GK – Portfolio

LOGIPORT Kazo

Urawa Misono
Project

Konosu Project

Iruma Project

Osaka Suminoe
Project

Iwanuma Suminoe
Project

Amagasaki ProjectOccupancy
statusStabilized

Stabilized

Leasing

Stabilized

Stabilized

Leasing

Stabilized

Acquisition
dateMar. 2023

Dec. 2022

Mar. 2023

May. 2023

Oct. 2023

Feb. 2024

Mar. 2024

Location

Kazo-city, Saitama

Saitama-city, Saitama

Konosu-city, Saitama

Iruma-city, Saitama

Osaka city, Osaka

Iwanuma-city, Miyagi

Amagasaki-city, Hyogo

Land area

16,722.00㎡

6,240㎡

23,872㎡

24,439㎡
26,341㎡

5,354㎡

10,996㎡

53,016.59㎡

115,550.78㎡

1,854.24㎡

Gross floor
area

3,701.22㎡

34,399.04㎡

12,743㎡

49,668㎡

Construction
dateJul. 2021

Feb. 2022

Jan. 2023

Apr. 2023

Mar. 2023

Jan. 2024

Mar. 2024

Structure/ No. of floors

Steel construction/4 floors

Steel construction/4 floors

Steel construction/4 floors

Steel construction/4 floors

Steel construction/4 floors

Steel construction/2 floors

Steel construction/4 floors

Number oftenants

12

1

0

1

2

1

1

Occupancy
rate

99.5%

100.0%

0.0%

100.0%

100.0%

50.0％

100.0%

Property
manager

XYMAX
Corporation

CBRE K.K.

XYMAX Corporation

XYMAX Corporation

K.K. CRE

CBRE K.K.

CBRE K.K.

LaSalle LOGIPORT REIT32

NY Properties TMK – Portfolio

Nanko Logistics Center

NY Properties TMK(As of Mar 2024 after 2nd settlement)(1)
Location

Osaka Prefecture

Constructed

June 2007

Land area

19,260㎡

Gross floor
area

40,767㎡

Occupancy
rate

100%

Non-recourse loan(senior)（2）
JPY 5.98Bn
Underlying Assets
Yachiyo
Logistics Center(100％ ownership)
Nanko
Logistics Center(60% ownership)

Yachiyo Logistics Center
Location

Chiba Prefecture

Constructed

May 2008

Land area

11,564㎡

Gross floorarea

15,006㎡

Occupancy
rate

100%

Non-recourse loan
(junior)
JPY 1.0Bn

Mezzanine bonds
JPY 1.4Bn
Preferred equity
(51%)
JPY
580MM

Preferred equity
(49%)
JPY
560MM

LLR to acquire mezzanine bonds
and 49% interest in preferred equity(1) 40% interest in Nanko Logistics Center will be additionally acquired in July 2024
(2) Includes consumption tax loan of 142 million yen

LaSalle LOGIPORT REIT

33

Development projects with LLR equity stakeMatsudo Project

外観写真

Sendai Project•With the opening of the Tokyo Gaikan
Expressway (between Misato Minami JCT
and Takaya JCT) in 2018, the convenienceof wide-area delivery has greatly improvedin the surrounding area•

Located close to the Matsudo Interchangeon the Tokyo Gaikan Expressway, making it
an excellent location for deliveries to thecenter of the Tokyo metropolitan area anddeliveries to a wide area using theexpressway network

外観写真

•

Miyagi Prefecture is the largest logistics
center in the Tohoku region, with aconcentration of logistics facilities around
Sendai City•

Many companies are building bases around
Sendai City as a logistics base for theentire Tohoku region•

In recent years, the need fordecentralization of offices has been
increasing in the Tohoku area as a responseto the 2024 problem

Location

Matsudo, Chiba

Land area

c.7,500㎡

Location

Sendai, Miyagi

Land areac.26,000㎡

Constructionstart

Nov 2023

Planned GFA

c.9,200㎡

Constructionstart

2H 2024

Planned GFA

c.50,000㎡

Plannedcompletion

Sep 2024

Planned Structure

Steel construction/2 floors

Plannedcompletion

1H 2026

Planned Structure

Steel construction/4 floors

Total investment: JPY 400MM (c.33% of entire investment by LLR)
Equity injectionplan

1st round November 2022 JPY 135MM
2nd round November 2023 JPY 50MM
3rd round March - May 2024 JPY 90MM (maximum)
4th round August - October 2024 JPY 125MM (maximum)

Total investment: JPY 1.6Bn (c.25% of entire investment by LLR)
Equity injectionplan

1st round July 2023 JPY 475MM
2nd round September 2024 JPY 165MM (maximum)
3rd round April 2025 JPY 305MM (maximum)
4th round February 2026 JPY 670MM (maximum)

LaSalle LOGIPORT REIT

34

Settlement timing of asset trade transaction

16th FP（Feb. 2024）

17th FP（Aug. 2024）

18th FP（Feb. 2025）

19th FP（Aug. 2025）
12.5% ownership
New
Disposition proceeds: JPY 3.24Bn
Disposition gain: JPY 1.14Bn

Partial disposition of
LOGIPORT
Nagareyama B

Disposition
proceeds
JPY 17.5Bn

12.5% ownership
Disposition proceeds: JPY 3.24Bn
Disposition gain: JPY 1.14Bn

12.5% ownership
Disposition proceeds: JPY 3.24Bn
Disposition gain: JPY 1.14Bn

12.5% ownership
Disposition proceeds: JPY 3.24Bn
Disposition gain: JPY 1.14Bn

Indirect investments toasset trades toNanko YachiyoTMK

Invested capital:
JPY 2.74Bn

Yachiyo Logistics Center
Nanko Logistics Center (20%)
Invested capital: JPY 1.19Bn

Nanko Logistics Center (40%)
Invested capital:
JPY 770MM

Nanko Logistics Center (40%)
Invested capital:
JPY 770MM

Indirect investments toasset trades to
Okinawa Itoman GK ＆Urayasu GK

Invested capital:
JPY 840MM

Establish of
Sidecar Fund（LRF3）

Invested capital:
JPY 1.23Bn

Establish of Sidecar Fund
Invested capital:
JPY 1.15Bn

New acquisition frombridge fundAcquisition price
JPY 3.27Bn

Inuyama Logistics Center
Acquisition price:
JPY 3.27Bn

Buyback

Amount (Max)JPY 6Bn

Okinawa Itoman Center New
Invested capital:
JPY 520MM

New

New
Urayasu Logistics Center
JPY 320MM

Additional acquisition of New
Amagasaki Project
Invested capital:
JPY 750MM

New
Buyback
Amount (Max)JPY 6Bn
LaSalle LOGIPORT REIT

35

*

Financial management overview of LLR
Built on strong financial management（1）LTV (2)

Total debt

Weighted avg. int. rate

JPY 171.0Bn

41.9%

Inv. corp. bonds ratio

Appraisal LTV （2)

7.9%

34.8%

0.63%

JPY 4.0Bn

Avg. remaining debt term (3)Avg. debt term(3)4.2 years(MM yen)Credit rating

Commitment line

AA (Stable)

Rated by Japan Credit Rating (JCR)

Fixed rate(4)7.6 years

86.8%

Debt maturity ladder

25,000Floating Rate

20,000

Fixed Rate

Inv. Corp. Bonds

15,00010,0005,000
0

17thFP
24/8

(1)
(2)
(3)
(4)

Bank
syndicate
14 banks

18thFP
25/2

19thFP
25/8

20thFP
26/2

21thFP
26/8

22thFP
27/2

23thFP
27/8

24thFP
28/2

25thFP
28/8

26thFP
29/2

27thFP
29/8

28thFP
30/2

29thFP
30/8

30thFP
31/2

31thFP
31/8

32thFP
32/2

33thFP
32/8

34thFP
33/2

35thFP
33/8

36thFP
34/2

37thFP 35thFP～
34/8

33/8～

MUFG.Bank
23.3%
SMBC
15.0%
DBJ
6.5%
Resona3.8%
Nishi Nihon City
1.8%
Chugoku Bank
1.1%
MUTB
2.6%
Inv.corp.Bonds
7.9%

Bridge loan refers to a 7.4 billion yen loan executed on July 6, 2023 with a maturity date of June 28, 2024 to partially fund the acquisition of new properties (3 properties, 23.1 billion yen) announced on June 23, 2023.
LTV is calculated by interest bearing debts ÷ total assets (book value basis), and appraisal LTV is calculated by interest bearing debts ÷ total assets (market value basis)
Calculated as the sum of total loan borrowings and investment corporation bonds
LaSalle LOGIPORT REIT
Calculated as the balance of interest bearing debt with fixed interest rates ÷ total balance of interest bearing debts

Mizuho
18.0%
SMTB
10.1%
Shinsei
3.9%
Fukuoka
2.9%
NomuraTrust
1.2%
Aozora Bank
1.2%
77 Bank
0.5%

36

Our progress so far in reducing carbon footprint
Update on energy performance
Whole-building carbon intensity

On-site solar energy generation

Source of energy consumption

In 2022, LLR made significant progress in reducing
its carbon intensity to 13.0 kg-CO2/m2/year,
representing a 28.3% reduction against its 2019baseline. LLR’s efforts to improve energy efficiency
were also key contributors to these results.
Moreover, we aim to obtain electricity
consumption data for all properties by 2030.

LLR is progressively installing solar power
generation equipment on the rooftops, with 14 of
the 23 properties in the portfolio installed. We
generated 28.0 GWh of solar energy, whichamounts to 43.6% of our total energy consumption.

Lighting is by far the biggest source of energy
consumption. Our data suggests that lighting
accounts for 67% of energy consumption, farahead of air conditioning, which accounts for the
next 18%. An aspect not covered here is theenergy consumption by tenant-installed
equipment, which may materially change theenergy consumption profile.

(GWh)(kg-CO2/㎡)

20.5

20.2

23.7
18.1

16.2

13.8

14.8

13.0

25.7

28.0

2018

2019
2020
Base year

2021

2022

2018

2019

1 Whole-building carbon intensity covers both landlord-controlled and tenant-controlled carbon.

Elevators
2%

Water heating
7%

17.7

Heating & Air
conditioning
18%

5.4

2017

Heating & Air
conditioning
5%

2020

2021

2022

Lighting
67%

2023
1 Based on an energy audit of 21 buildings that received a Building-

Housing Energy-efficiency Labelling System (BELS) certification.

LaSalle LOGIPORT REIT

37

LaSalle has committed to be on a pathway to net zero carbon by 2050
ULI Greenprint Net Zero by 2050

LLR’s approach

Challenges

In 2020, LaSalle announced its commitment to the
Urban Land Institute’s Greenprint Center to reduce
landlord-controlled operational carbon emissions
for its global portfolio to net zero by 2050.

As a J-REIT that invests in completed assets, LLR’s
focus is on reducing operational carbon emissions
to net zero by 2050.

Tenant engagement: We are not in direct control
of energy consumption associated with tenant
activities, which is estimated to account for
approximately 80% of the total carbon emissions
at our buildings. Tenant energy use is expected torise as more tenants install air-conditioners inwarehouse spaces to improve workplaceenvironment or introduce automation and robotics
technology. Engagement with tenants plays acrucial role in achieving carbon reduction goals.

The goal is in line with the Paris Agreement andfindings from the Intergovernmental Panel on
Climate Change (“IPCC”) report to limit global
warming to 1.5°C.
LaSalle is in the process of developing a global Net
Zero Carbon (“NZC”) strategy.

Not only will LLR reduce its own landlordcontrolled emissions, LLR will collaborate withtenants to address whole-building performance.
To the extent that we engage in re-development
projects in the future as part of our value-add
strategy, we will re-visit our NZC strategy toaddress embodied carbon.

Key reporting metrics:

Energy intensity (kWh/m2/year)
Carbon intensity (kg-CO2/m2/year)
Solar capacity installed (MW)LED lighting (% of area with LED lighting
installed

Evolving market standards: There is no globally
accepted definition of “net zero carbon” incommercial real estate yet. LaSalle continues toactively engage in industry conversations aroundthis topic.
Regulatory environment: New government policies
and regulations may be enacted that will materially
impact costs and pathways toward achieving net
zero carbon.
Financial impact: While delivering on the net zerocommitment to future-proof LLR’s portfolio, thecosts of implementing the strategy and how it
affects investment returns will need to be carefully
analyzed.
LaSalle LOGIPORT REIT

38

Focus on energy efficiency and on-site renewables
DE-CARBONAZATION strategy follows an energy hierarchy

LLR will follow the principles of an energy hierarchy
to ensure effort is focused first on improving energy
efficiency and on-site renewables.

Operational
Changes

Operational changes: We will continue to optimize
our operations as recommended by energy audits.
EnergyEfficiency

Energy efficiency: Lighting is a significant source ofenergy consumption at our properties. We arefocused on switching to LED lighting, which cansignificantly reduce energy consumption compared
to conventional lighting.

On-siteRenewables
Baseline
CarbonEmissions

Deep Retrofit

Residual
CarbonEmissionsOff-site
Renewables
Generation,
Procurement,
and Purchasing
Carbon Offsets

On-site renewables:
Solar energy will play animportant role in reducing our carbon footprint.
Under a feed-in tariff (“FIT”) scheme, we have been
focusing on the selling of solar energy to energy
companies through our rooftop lease agreements.
Going forward, we intend to shift on-site generated
solar energy to reduce baseline carbon emissions tocapture carbon offset value.
Off-site renewables: The procurement of renewableenergy or green energy certificates comes with extra
costs. We will carefully monitor the renewable energy
market to identify what options are available to us.

LaSalle LOGIPORT REIT

39

Verification and certification
BELS certification and CREEM tools

BELS energy performance certification

CRREM net zero carbon pathway

The Building-Housing Energy-Efficiency Labeling System (“BELS”) is anindependent certification scheme supported by the Japanese Ministryof Land, Infra-structure, Transport and Tourism that evaluates andverifies the energy performance of buildings. We believe that the use ofthird-party certification provides transparency and credibility of energy
performance at the asset level.

The Carbon Risk Real Estate Monitor (“CRREM”) provides the real estateindustry with science-based decarbonization pathways aligned with theParis Climate Goals of limiting global temperature rise to 2°C, with
ambition towards 1.5°C. To ensure that LLR’s buildings are on track with a
2050 net zero carbon pathway, we will benchmark energy use intensity
performance against the CRREM 1.5°C pathway.

BELS five-star rating

16 properties

Received the highest
certification of five stars amongour 23-building portfolio. A fivestar BELS building reduces theenergy intensity by 40% ormore against the standards set
by the Japanese Government.

。

(kg-CO2/m²)
CREEM 1.5°C pathway

50（v2.02）40
LLR’s averagecarbon intensity

30
20
10
0
2020

2025

2030

2035

2040

2045

LaSalle LOGIPORT REIT

2050

40

4

Logistics real estatemarket outlook

LaSalle LOGIPORT REIT

41

Tokyo area logistics market overview
Supply / demand and mid-term projections1

Recent vacancy rate

(MM sqm)

Projection

4.0

10%

3.6
8%

3.2
2.8

6%

2.4
2.0

4%

1.6

In 3-4Q 2023, there is an oversupply of new supply is 1.34
million sqm while new demand is 0.99 million sqm. Althoughdemand is strong, but the current vacancy rate is rising due
to the largest-ever supply in 1-2Q 2023.
8%

7.6%

6%
4%

1.2
2%

0.8
0.4

0%

New Supply

Source: CBRE1

New Demand

Vacancy

Logistics facilities with GFA greater than 5,000 ㎡

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

0.0

Vacancy (1yr after built)

2.6%

2%
0%
2020
1Q

2020
3Q

2021
1Q

2021
3Q

Vacancy (Overall)

2022
1Ｑ

2022
3Ｑ

2023
1Ｑ

2023
3Ｑ

Vacancy (1yr after built)

Source: CBRE

Change in occupancy for large scale multi-tenanted facilities2 at construction completion
100%
80%

As of 12/31/2023

7.6 % (2.6 % for 1yr after built)

2024 supplyc.

2.67 MM sqm

2025 supplyc.

2.56 MM sqm

60%
40%
20%

3

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2009

2008

2006
2

2007

2005
Source: CBRE

2010

N/A3

0%

Multi-tenanted logistics facilities built with GFA greater than 10,000 tsubo
During these years, there were too few examples to be counted

LaSalle LOGIPORT REIT

42

Osaka area logistics market overview
Recent vacancy rate

Supply / demand and mid-term projections1(MM sqm)
1.6

Projection 16%

New Supply

New Demand

Vacancy

Logistics facilities with GFA greater than 5,000 ㎡

2025

2024

2023

2022

2021

2020

2019

2018

1

2017

Source: CBRE

2016

0%
2015

0.0
2014

2%
2013

4%

0.2
2012

6%

0.4

2011

0.6

2010

8%

2009

0.8

2008

10%

2007

12%

1.0

2006

14%

1.2

2005

1.4

In 3-4Q 2023, new supply is 0.49 million sqm while new
demand is 0.27 million sqm, resulting in an oversupply.
Vacancy rate was temporarily rise but remains at a low level.
6%

4.5%

4%
2%

0.1%
0%
2020
1Q

2020
3Q

2021
1Q

2021
3Q

Vacancy (Overall)

Vacancy (1yr after built)

2022
1Ｑ

2022
3Ｑ

2023
1Ｑ

2023
3Ｑ

Vacancy (1yr after built)

Source: CBRE

Change in occupancy for large scale multi-tenanted facilities2 at construction completion
100%
80%

As of 12/31/2023

4.5 % (0.1 % for 1yr after built)

2024 supplyc.

0.91 MM sqm

2025 supplyc.

1.44 MM sqm

60%
40%

3

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

N/A3
2013

N/A3
2012

N/A3

2011

2

2009

2007

Source: CBRE

2008

2006

0%

2010

20%

Multi-tenanted logistics facilities built with GFA greater than 10,000 tsubo
During these years, there were too few examples to be counted

LaSalle LOGIPORT REIT

43

Nagoya area logistics market overview
Supply / demand and mid-term projections1

Recent vacancy rate

(MM sqm)
1.0

Projection

50%

0.8

40%

0.6

30%

0.4

20%

In 3-4Q 2023, new supply is 0.54 million sqm while new
demand is 0.39 million sqm, there is an oversupply. The
current vacancy rate is rising to 9.8%.
16%
12%

9.8%

8%

New Supply
Source: CBRE1

New Demand

Vacancy

Logistics facilities with GFA greater than 5,000 ㎡

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

0%
2008

0.0
2007

10%

2006

0.2

4%

2.8%

0%
2020
1Q

Vacancy (1yr after built)

2020
3Q

2021
1Q

2021
3Q

Vacancy (Overall)

2022
1Ｑ

2022
3Ｑ

2023
1Ｑ

2023
3Ｑ

Vacancy (1yr after built)

Source: CBRE

Change in occupancy for large scale multi-tenanted facilities2 at construction completion
100%
80%

As of 12/31/2023

9.8 % (2.8 % for 1yr after built)

2024 supplyc.

0.41 MM sqm

2025 supplyc.

0.60 MM sqm

60%
40%

3

2023

2022

2021

2019

2018

2017

2016

2015

2020

N/A3

N/A3
2014

N/A3
2013

N/A3

2012

2

2010

2008

Source: CBRE

2009

2007

0%

2011

20%

Multi-tenanted logistics facilities built with GFA greater than 10,000 tsubo
During these years, there were too few examples to be counted

LaSalle LOGIPORT REIT

44

Investments in the Chubu area where demand is expected to growInuyama Logistics Center

Aisai Logistics Center

Kariya Logistics Center

Inuyama Logistics Center
LOGIPORT Nagoya
Sponsor Dev. Asset
Aisai Logistics Center

Acq. Price

JPY 4,045MM

Acq. Price

JPY 6,045MM

Acq. Price

JPY 3,270MM

Location

Aisai, Aichi

Location

Kariya, Aichi

Location

Inuyama, Aichi

NOI yield

4.2%

GFA

13,700㎡

Completion Jul. 2021

NOI yield
GFA

Completion

4.3%

20,981㎡

Nov. 2022

NOI yield
GFA

Completion

4.2%

10,363㎡

Nov. 2022

Chubu area where demand from e-commerce operators and 3PLs to reorganize their bases and steadyincrease in production demand from manufacturers are expected.
Prime area forlogistics company
bases
Improvedtransportation
convenience

Increased
demand forindustrial logistics

3PL and e-commerce operators have been establishing bases in the Tokyo metropolitan area andOsaka area, and there is a growing demand in the Chubu area to reorganize and consolidate bases
to improve operational efficiency, as well as relocation demand to rebuild aging distribution
warehouses.
With the opening of the Isewan Coastal Highway and the New Meishin Expressway, the expressway
network has been developed and transportation convenience has improved. The area has becomea favorable environment for businesses increasing their logistics bases.
The Chubu area is located in the Chukyo industrial zone, which boasts the largest amount of
manufactured goods shipments in Japan, and thus has strong needs for industrial logistics by the
manufacturing industry. In recent years, Japanese manufacturers have been returning to thedomestic market and increasing their inventories, and the Chubu area, with its high concentrationof manufacturers, is expected to see an increase in the need for manufacturing logistics services.

Kariya Logistics Center

Freight Type by LMT in Chubu Area

65％ consumer oriented
Daily consumables 18%
EC 15%

2017～2019

Apparel 14%
Food and Beverage 12%
Appliances and Housing
Equipment 6%
Machinery & Industrial Products
35%(1) Type of freight the tenants manage in the Large Multi-Tenant Logistics Properties
in the Chubu area
Source：CBRE Nagoya Logistics Market Information - LMT's vision for the future

LaSalle LOGIPORT REIT

45

LOGIPORT Nagoya, the largest multi-tenant facility in the Chubu area
Capturing strong demand in the Chubu area market achieving a contract ratio of 66% (c.192,000㎡) at the time of completion
Area characteristics


Located in Nakamura-ku, Nagoya City, approximately 4.8 km from Nagoya Station, this multi-tenant logistics facility isa rare large-scale urban logistics center in the central Nagoya areaExcellent access to the expressway network, located approximately 2.2 km from the Karasumori Interchange on the
Nagoya Expressway No. 5 Banba Line, and in addition to being a wide-area distribution base for the entire Tokai area, it
is also a relay base between the Tokyo metropolitan area and the Kansai regionSuitable for securing employment due to convenient transportation, as commuting is only an 8-minute walk from Hatta
Station on the Nagoya Municipal Subway Higashiyama Line, JR Kansai Honsen Line, and Kintetsu Nagoya Line

Entrance
Location

Nagoya, Aichi

GFA354,743㎡

Land area
Completion
Structure

157,042㎡

Jul. 2023
Steel construction, partially reinforced concrete,
seismic damping structure
４

FloorsDesign and
Hitachi Construction Design, Ltd.
Supervision company
Construction company Shimizu Corporation
Certification

CASBEE S Rank, 5-star BELS rating

Community space

Amenities to meet needs

Rest area

High ESG awarenessRest rooms, stores, rental conference rooms, shower rooms,
and coin-operated laundry facilities provide a comfortableenvironment for those working in the facility.

Consideration is also given to reducing environmental
impact through the use of energy-efficient LED lighting andan irrigation system that recycles rainwaterProviding an efficient environment for truck drivers byintroducing an AI-based truck berth status indication
system (indicating occupied/vacant status), and placementof a comfortable waiting room for drivers



The roof of the facility is scheduled to be used for a solar
power generation project with Tokyu Land Corporation as
the power generation provider (scheduled to obtain ZEB
certification)

Aiming to create a logistics facility that is rooted in thecommunity and connects people with each other, we havewidened the sidewalks around the facility and built a plazaand benches for the community to use under the concept of"LOGIPORT TOWN".

LaSalle LOGIPORT REIT

46

Tokyo / Osaka area submarket vacancy rate and supply outlook
Tokyo

Osaka
Tohoku-do/Ken-o-do
LP Nagareyama B
LP Kawagoe

Joban-do/Ken-o-do

Shin Meishin

LP Shin Moriya

LP Sayama Hidaka

LP Amagasaki
LP Kita Kashiwa

Kanestu-do/
Ken-o-doTohoku-do/Route 16
Kanetsu-do/Route 16

Joban-do/Route 16

Gaikan-do

Kobe
Hokuetsu・East Osaka

NaritaHachioji
Tokyo BayLP Hashimoto
LP Sagamihara
Inland Kanagawa

LP Kyoto

LP Kashiwa Shonan

Inland Chiba
Chiba BaySouth Osaka

LP Higashi Ogishima A, B, C
Kanagawa Bay

LP Osaka Taisho

Higashi Ogishima (Leasehold Land)
LP Kawasaki Bay

LP Osaka Bay

Osaka Bay

LP Sakai Minamijimacho
LP Sakai Chikko Shinmachi
LP Sakai0

Vacancy1 (4Q 2022)

Supply/Demand Situation

0～5％

Supply/Demand is tight5～10％

Supply/Demand is in equilibrium

10～15％

Supply/Demand softening concerns

15％～

Supply/Demand balance deteriorating

Source: CBRE data which was compiled by LRA
1

10km

0

Existing Stock as of 4Q 2023
Projected supply for 2023 and 2024

10km

Population Density (people / km2）
0～5,000

5,001～10,000
10,001～

Logistics facilities with GFA greater than 5,000m2

LaSalle LOGIPORT REIT

47

Existing stock of logistics facilities
Ratio of modern logistics facilities(1)11.3%
30.9 million sqm

Tokyo
area
88.7%
242 million sqm

9.6%
9.8 million sqm

Osaka
area
90.4%
92 million sqm

Market size

273 million sqm

4.6%
2.8 million sqm

Nagoyaarea
95.4%
59 million sqm

Market size

Market size

102 million sqm
Modern Logistics Facilities

62 million sqm
Traditional Logistics Facilities

Source: CBRE
(1) GFA >10,000㎡, modern leasable facilities that satisfy functional design standards that warrant their modernity. As of March 2023

LaSalle LOGIPORT REIT48

5
Appendix

LaSalle LOGIPORT REIT

49

LaSalle Group is a leading company in real estate core investments®

Global real estate investment management firm

Global network

AUM

14 ・ 24countries

offices$78.5Bn

Trusted by investors

30 ・ 500+countries

Global comprehensive real estateservices firm (Parent company of
LaSalle Investment Management)+institutional
investors

Revenues

AUM
by Region

N. America(including$30.6B
Canada & Mexico)

Office$25.3B

EuropeLogistics$16.3B

Residential$13.8B

Retail

$8.5B

GPS 2

$10.6B

Other

$4.0B

Asia Pacific
GPS 2

1

$22.4B$14.9B$10.6BAUM
by PropertyType$20.9Bn
Global network
Over

80

countries

Employees
Over103,000

LaSalle and JLL as of 12/31/2022

2

Global Partner Solutions (Fund of funds)

LaSalle LOGIPORT REIT

50

LaSalle Group’s track record for development and investment oflogistics facilities in Japan
LaSalle Group's track record of logistics properties in Japan1c.

Total development2.3

Total acquisitions

3.18MM ㎡

c.

Total leasing

2.02MM ㎡

c.

5.72MM ㎡

Major Development/Investment

Development

Investment

9/20043/20057/20097/20117/20143/20152/20183/201911/2019

3/20212/2022

LP Kashiwa

LP Kawasaki

LP NagareyamaA, B

LP Sagamihara

LP Higashi
Ogishima
A, B, CLP Sakai

LP Shin Moriya

LP Kazo

LP Nagoya

LP Tamamizuho

LP Fukuoka
Kasuya7/20032/20053/20084/2011

10/20122/20151/20179/20183/2019WakasuLP Osaka

LP Island City
HakataLP Kita Kashiwa

LP Hashimoto

LP Osaka
TaishoLP Kawasaki
Bay

LP Amagasaki

LP Kobe Nishi

12/2019

3/20212/2023LP Osaka Bay Tokyo Shinonome Yatabe Logistics
Logistics Center
Center(provisional name) (provisional name)1

As of 2/29/2024.
Includes development pipeline
The floor areas of the buildings are based on the building certificates and drawings, etc. and may not be identical with the floor areas in the property registry.
4
The timeline above reflects the timing to when a purchase and sale contract was consummated for the acquisition of land and building.
As of the date of this document, LLR has not decided to acquire any of the properties in the above timeline, and there is no guarantee that LLR can acquire in the future.
The building names are what the LaSalle Group uses to identify each property, and may not be identical with the current names
2

3

LaSalle LOGIPORT REIT

51

Portfolio construction policy

Investment policy focusing on location andspecifications for competitivenessProspective portfolio composition
Tokyo andOsaka area
Regional
CitiesExample of a suitable site in the case of LOGIPORT Hashimoto

> 80%
< 20%

Easy public transportation
access to attract employees
Excellent access tohigh consumption areas

Hashimoto Station

Investment ratio
Prime Logistics

> 80%

Other

< 20%

Suitable sites

Industrial use zoning
allowing for 24/7 operations
LOGIPORT Hashimoto

1.
2.
3.
4.

Excellent access to high consumption areas (dense population areas)
Close proximity to highway interchange nodes
Located in industrial use zoned areas that allow for 24-hour operations
Easy public transportation access in order to attract employees

Large scale
1.

Highway Route 16

Close proximity to ahighway interchange

In general, GFA is greater than 16,500m2

High specifications
1.
2.
3.
4.
5.

Effective ceiling heights are greater than 5.5m, floor loads can handle inexcess of 1.5 t/㎡, and column spacing is typically 10m x 10m
Large ramp ways for direct truck access to the upper floors or freight
elevators with sufficient loading capacity
Designed with flexible bay partitioning
Ample office space
High safety features with seismic isolation or resistance performance
LaSalle LOGIPORT REIT

52

Features of “Prime Logistics”
Environmental considerations, energy
efficiency, security measures, enhanced
amenities

Ceiling heights 5.5m

Environmental considerations and energy efficiency

Column spacing 10m
Office space
Ample office space

High end specifications
Effective ceiling heights, floor
loading, and column spacing toenhance storage efficiency andwork productivity

Flexible partitioning of bays
Designed with truck berths,
vertical conveyor layouts, fire
prevention compartmentalization

Flexible partitioning of bays
Designed with truck berths,
vertical conveyor layouts, fire
prevention compartmentalization

Solar panels forrenewable energy
utilization

Exterior walls, sandwich panel system
for thermal insulation and airtightness
Obtained S and A
rankings, based on
CASBEE evaluation for
new and existing built.

Automatic lighting sensors
for corridors and bathrooms
Security measures

Cafeteria space for
employees during breaks

Convenience stores on site
for employee satisfaction

Ample amenities
Large scale ramp ways
Enables truck access to theupper floors, or there arevertical conveyors with
sufficient loading capacity

LOGIPORT Sagamihara

Operation of acommuter bus fromthe nearest station

24-7, 365 days, operational building
management office

LaSalle LOGIPORT REIT

53

ESG initiatives #1 – Basic policy
Basic ESG policy

Support to ESG Initiatives

ESG objectives

U.N. Principles for Responsible Investing (PRI)• Reduce the environmental impact of our business• Reduce the environmental impact of our clients’ real estate holdings• Exceed local environmental regulations where appropriate• Drive thought leadership and innovation on sustainable property investments• Collaborate with clients, tenants, property managers, and other service providers to provide

LaSalle signed onto the PRI in 2009. In the 2019assessment results, LaSalle has been ranked A+ forthree consecutive years in the areas of “strategy andgovernance” and “real estate”

ESG promotion structure

Task Force on Climate Related Financial
Disclosures (TCFD)

sustainable management of properties

LRA announced its support for TCFD in December 2022,
and will continue to enhance our efforts and information
disclosure on climate change issues

ESG committee
Chairman

CEO

Members

Head of Acquisitions, Head of Asset Management, Head of Fund Management, Head ofPlanning and Management, Compliance Officer, and other personnel in charge of day-to-day
implementation

Frequency

Once a year•

Main topics•••

Establishment of initiatives based on LaSalle's globally promoted ESG strategy inalignment with the Asset Manager’s fiduciary responsibilities
Analysis, assessment, and monitoring of climate change risks
Monitoring of energy consumption, GHG emissions, water consumption, and waste
Establishment of policy on measures at the property level

Net Zero Emissions
LaSalle announced its plan to achieve net zero carbon by 2050 by controlling its
carbon emissions from its global portfolio of managed assets
BBP Climate Commitment

Climate Challenge (BCC)

Net Zero Asset Managers
InitiativeULI Greenprint commitment

ESG training
LRA conducts regular training for all employees, including contract employees, in collaboration
with LaSalle’s Global Head of ESG. LaSalle has also introduced a system that allows employees touse an online platform to participate in training programs (videos, courses, webinars, etc.) in orderto deepen knowledge, raise awareness, and share best practices related to ESG.

Incorporating ESG elements into performance reviews
During the annual employee goal setting procedure, LRA requires all officers and employees
establish their ESG-related goals. The degree of achievement is reflected as part of the bonus
assessment, and outstanding initiatives are also subject to additional internal recognition awards.

LaSalle LOGIPORT REIT

54

ESG initiatives #2 – External evaluation and certifications, green finance
GRESB Real Estate Assessment “5 Stars” and “Green Star” achieved

LLR will allocate the proceeds of the green bond to existing assets or to acquire
new assets that meet the Eligibility Criteria ("Green Eligible Assets"). LLR will also
refinance an existing loan or investment corporation bond which will be allocatedto assets that are Green Eligible Assets.

In 2023, LLR received the highest rating of "5 Stars" in the GRESBReal Estate Assessment for three consecutive years.
Also, LLR received the "Green Star" rating for seven consecutive
years.

Issuance of green bonds

Third party evaluations / certifications
In order to increase transparency and reliability regarding theenvironmental performance of owned properties, we havebeen continuously acquiring environmental certifications. Asof the end of February 2024, 99.5% of the properties owned
have undergone environmental evaluations and acquired
certifications.
LOGIPORT Kawasaki Bay received a ZEB rating1, the highest
rating for ZEB (Net Zero Energy Building).
1

Acquisition rate

99.5 %

Number ofproperties

CASBEE Real Estatecertification / BELS
21

Gross Floor
Area (m2)2,116,144 ㎡

Issuance

Issuance date

Maturity date

6th

Amount (JPY)

CouponFeb. 20, 2020

7th

Feb. 16, 2021

Feb. 20, 2030

3.0Bn

0.59%

Feb. 15, 2036

2.0Bn

8th

0.76%

Feb. 10, 2022

Feb. 10, 2028

2.0Bn

0.25%

(Note) The above amount has been fully allocated toward the repayment of debt financing for the acquisitionof Green Eligible Assets

Green eligible assets
The ratio of Green Eligible Assets to the portfolio assets (on a book value basis) is
98.8%, which is at the top level among J-REITs

Ratings are indicated in four levels: ZEB (highest rating), Nearly ZEB, ZEB Ready, and ZEB Oriented.

Certification / Evaluation

Green bonds

Ratio of Green Eligible Assets
98.8%

Ratio
(GFA-based)

99.5 %

Book Value
JPY374.9Bn
23 properties

Book Value
JPY370.3Bn
21 properties
LTV
41.9%

グリーン
Green
適格負債
EligibleDebt
1,487億円
JPY155.1Bn

LaSalle LOGIPORT REIT

55

ESG initiatives #3 – Environmental
Environmental
Objectives and KPIs

Examples of initiatives

Targets for 2030
Electricity
consumption

CO2 Emissions1

Obtain usage data
for all properties
1

50 % reduction

Installation of solar power generation facilities on site
Solar energy generated
Properties with solar
(GWh)
28.0
25.7
panelsWater Usage1

Waste

16 % reduction

Reduce waste andincrease recyclingvs. 2019 Intensity-based

14

Portfolio ratio(GFA base)

68 %Energy performance
Intensity1

kWh/㎡

Electricity
consumption
Gas consumption
3

CO2 emissions total
Intensity changerate(vs Base year)
Scope 1
Scope 2

Intensity changerate(vs Base year)
Waste total4
Recycle rate

20202

20212

2022

36.74

34.14

31.59

31.75

3.31

3.55

2.45

2.31

18.09316.17913.771

12.978--10.58％-23.89%-28.27%0.59510.63720.44180.415917.92816.04428.76727.177--12.18211.50518.09316.17913.771

12.978--4.33％-8.43％-11.40%kg

79,611

109,304

8,073,910

9,436,396

%

-

-

72.1

72.8

kWh/㎡

kgCO2/㎡

Scope 3
Water usage

2019 *Base
Year

L/㎡

5.4

14.8

17.7

23.7

2018 2019 2020 2021 2022 2023

ZEB（Net Zero Energy Building）
LOGIPORT Kawasaki Bay received the highest"ZEB" rating for its efforts to install solar power
generation equipment for on-site
consumption.
LED conversion rate

81 %Portfolio ratio based on leasable
floor area
(Note) As of March 31, 2024

Green leases

57 %Sharing electricity consumption
data with tenants and establishing acooperative systemfor energy
conservation(Note) As of December 31,
2023

Installation of LED lighting with motion sensors

1

The total area of owned properties includes the properties previously sold out of the portfolio. Also, the area is 100% of the property area and ownership interest is not considered.
2
From 2020, we have obtained an Independent Assurance Report from Ernst & Young ShinNihon LLC,（excluding waste in 2020, including waste in 2021）
3
Scope 2 and Scope 3 are disclosed separately from the 2021 results. However, the base year comparison is calculated by adding up Scope 2 and Scope 3 in 2021 without distinguishing them as in the previous year.
4
LaSalle LOGIPORT REIT
Data we were able to obtain on tenant's waste and waste subject to recycling have been added from 2021.

56

ESG initiatives #4 – Social
SocialRespect for human rights

LRA does not tolerate any violation of human rights under the Human Rights Policy
established by LaSalle. LLR does not associate with investments and tenants that1) earn income from illegal activities such as child labor, slave labor, illegal gambling,
and illegal drugs, or 2) violate government sanctions and regulatory restrictions on
financial transactions with specific individuals, companies, industries, nations, or
anti-social forces, as contrary to social responsibility.

Initiatives for tenants
Sustainability guide for tenants

Tenant satisfaction surveys

Renovation of lounges

LLR conducts a tenantsatisfaction survey once every
three years and shares thesurvey results with PM and BM
to improve tenant satisfactionand engagement activities in the
future.

Emergency goods storage

Disaster drills and fire drills

Initiatives for employees of the asset management company
Diversity (As of Dec. 31, 2023)••

Percentage of female employees: 38.1%
Percentage of female managerial staff:
20.0%

Training programs (FY2023)•••

Security awareness training
Coaching training
Global communication training(language training)
On-boarding training for new
employees•

Status of qualifications(As of Dec. 31, 2023)•••

WELL Health-Safety certifications

Employee satisfaction survey (FY2023)•

People Survey (Once), Pulse Survey (2times in total) for all officers andemployees

Benefit••••

Satisfactory vacation system
Establishment of work from home rules
and promotion of flexible working styles
Incentives for Investment Unit Ownership
Association
Health-conscious beverages, etc.

Comfort inside the office (cafeteria)•

Facilitating communication, Refresh
spaceReal Estate Brokerage License:
52.9%
ARES Certified Master:
70.6%
Implementing a certain support system or
the acquisition of qualifications / licenses

Establishment of a Diversity, Equity and Inclusion (DEI)
Contributions to local communities
Cooperation agreement on disastermanagement with a local government
Concluded an agreement witha local government to provide
our facility as a base forcollecting and transporting
relief supplies in the event of adisaster.

Donation of disaster supplies

Participation in cleaning campaign

LaSalle’s DEI Committee has been established to set
effective goals and plans to promote each of the following
basic policies in the Asia-Pacific region.
•••

Charity & Community (Contributing to local communities)
Diversity and Inclusion (Growth through acceptance ofdiversity and mutual respect)
Wellbeing (mental and physical health and an orientation
toward a fulfilling life)

LaSalle LOGIPORT REIT

57

ESG initiatives #5 – Governance
GovernanceManagement fees that align with unitholders’ interest
1 Management Fees I:
NOI (Inclusive of Capital Gain) × 10% (upper limit rate)
2 Management Fees II:
Before tax Net Income × Adjusted EPU × 0.002% (upper limit rate)
3 Management Fees III:
Adjusted NAV × NAV per unit in prior FP × 0.6% (upper limit rate)
4 Management Fees IV (Acquisition Fee):
Transaction Price when acquiring real estate assets × 1.0% (upper limit rate)
5 Management Fees V (Merger Fee):
Valuation of real estate related assets held by the other party to theConsolidation-type merger or absorption merger × 1.0% (upper limit rate)

Aligning unitholder interests with LaSalle Group
47,700 units

Same boat investment into LLR made by the LaSalle Groupand JLL

Investment Unit
Ownership
Association

For Officers and employees of the Sponsor and AssetManager

Share buyback
system already inplace

Amendment of Asset Management Guideline enabling sharebuybacks and share extinguishment

Composition of investment corporation board of directors
Title

Name

Reason for appointment

Executive Officer

Taira Jigami

Practical experience and insight in the core businessof the real estate investment management

Supervisory Officer

Kentaro Shibata

An experienced lawyer with expertise with various
laws and regulations including corporate legal affairs

Supervisory Officer

Koji Nishiuchi

Supervisory Officer

Rie Takenaga

An expert in accounting and taxation as a certified
accountant with practical experience in real estatetransactions
An experienced real estate appraiser with priorexperience as an external member of the LRA
Investment Committee

Decision-making flow chart of LRA in related-party transactions
Draft proposals by Investments or Asset Management
Divisions
Approval by Compliance Officer
Directions on discontinuation or content revisions madeDeliberation and Resolution by LRA’s Compliance Committee

Utilization of outside experts during internal audits of the AssetManagement Company
The Asset Management Company conducts internal audits jointly with external experts.
We strive to ensure objectivity in audits and address emerging risks and risks arisingfrom complex situations.

Attendance and approvalby the external director
is a prerequisite

Head of Acquisitions / Head of Asset Management brings
forth proposal discussions to the Investment Committee
Directions on discontinuation or content revisions madeDeliberation and Resolution by LRA’s Investment Committee

Attendance and approvalby the external director
is a prerequisite

Deliberation and Resolution by LRA’s Board of Directors

In case of acquiring,underwriting or disposingof managed assets

Approval by LLR’s Board of Directors

In cases of related party
transactions, based underthe Investment Trust Act

LaSalle LOGIPORT REIT

58

Fund summary
15th FP
11,215 MM yen
8,674 MM yen
4.52%
1,468 MM yen
7,205 MM yen

16th FP13,124 MM yen
9,124 MM yen
4.80%
1,539 MM yen
7,584 MM yen

3.75%

3.99%

Asset Management Fee
Asset Management Fee I
Asset Management Fee II
Asset Management Fee III
Operating Income
Interest Expense, Financing Related Fees

1,342 MM yen
757 MM yen
399 MM yen
187 MM yen
5,741 MM yen
601 MM yen

1,762 MM yen
945 MM yen
687 MM yen
131 MM yen
7,354 MM yen
658 MM yen

Net Income

5,089 MM yen

6,640 MM yen

Total Distributable Amount
Distributions Per Unit (“DPU”)
Earnings Per Unit (“EPU”)
Distributions in Excess of Earnings
Per Unit
FFO
FFO per unit
FFO Payout Ratio
Capital Expenditures
AFFO
AFFO per unit
AFFO Payout Ratio
Total Assets
Interest Bearing Debt
LTV (Book Value Basis)
LTV (Market Value Basis)5,772 MM yen
3,090 yen
2,725 yen

7,102 MM yen
3,802 yen
3,555 yen

Operating Revenues
Net Operating Income (“NOI”)
NOI Yield (Acq. Price Basis)
Depreciation
After Depreciation NOI
After Depreciation NOI Yield(Acq. Price Basis)

Net Assets
Net Assets per unit
ROE
Acquisition Price
Tangible Fixed Asset Book Value

15th FP
225,031 MM yen
120,466 yen
4.5%
380,934 MM yen
376,118 MM yen

16th FP
225,899 MM yen
120,931 yen
5.9%
380,879 MM yen
375,114 MM yen

Real Estate Appraisal Value

457,840 MM yen

459,155 MM yen

81,721 MM yen
21.7%
300,980 MM yen
161,124 yen
1,868,000
151,100 yen

84,040 MM yen
22.4%
302,838 MM yen
162,119 yen
1,868,000
145,000 yen

282,254 MM yen

270,860 MM yen

4.06%
0.94x
1.25x

5.26%
0.89x
1.20x

Unrealized Capital Gain
Unrealized Capital Gain (%)
NAV
NAV per unit
# of Outstanding Units at FP end
Investment Unit Price (record date)Market Capitalization (as of record
date)
Dividend Yield
Price / NAV Ratio
Price / Book Ratio

365 yen

247 yen1.

FFO = Net Income + Depreciation Expense

6,558 MM yen
3,511 yen
88.0%
461 MM yen
6,097 MM yen
3,264 yen
94.7%
406,070 MM yen
171,020 MM yen
42.1%
35.1%

8,179 MM yen
4,378 yen
86.8%
428 MM yen
7,751 MM yen
4,150 yen
91.6%
408,022 MM yen
171,020 MM yen
41.9%
34.8%

2.

FFO Payout Ratio = Total Distributable Amount ÷ FFO

3.

AFFO ＝ FFO – Capital Expenditures

4.

AFFO Payout Ratio = Total Distributable Amount ÷ AFFO

5.

LTV (Book Value basis) = Interest Bearing Debt ÷ Total Assets

6.

LTV (Market Value basis) ＝Interest Bearing Debt ÷ (Total Assets – Tangible Fixed Asset Book Value +Real Estate Appraisal Value)

7.

ROE = Net Income (Annualized conversion) ÷ Net Assets

8.

NAV = Net Assets – Expected Dividend Distribution Amount + Unrealized Capital Gain/Loss

9.

Dividend Yield ＝ DPU (Annualized Conversion) ÷ Investment Unit Price10.

Price / NAV Ratio = Investment Unit Price ÷ NAV per unit

11.

Price / Book Ratio (Unit Price Net Assets’ multiple) ＝ Investment Unit Price ÷ Net Assets per unit

LaSalle LOGIPORT REIT

59

Unitholders summary
16th FP (As of February 29, 20241 ,2)Changes in number of investment units by investor type

Major unitholders (top 10 rankings)(1,868,000 units)
2/2023 88,878(14th FP) 4.97%

1,107,764
62.05%

23,2801.30%

474,377
26.57%

90,7015.08%

8/2023 95,308(15th FP) 5.10%

1,150,733
61.60%

24,8161.32%

501,052
26.82%

96,0915.14%

1,148,180
61.46%

25,7281.37%

2/2024(16th FP)106,955
5.72%

Retail, Individuals
International Institutional

Domestic Institutional
Securities Companies

500,483
26.79%

86,654
4.63%

Domestic Corporates

Number of investors by ownership type
% of total investors

10,988

93.57

Domestic Institutions

162

1.37

Domestic Corporates

283

2.40

International Institutions

292

2.48

Securities Companies

18

0.15

11,743

100.0

Total

# of units% Ratio

1 Custody Bank of Japan, Ltd. (Trust Account)421,220

22.54

2 Japan Trustee Services Bank, Ltd., (Trust Account)363,333

19.45

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

95,0805.08

4 NSI CUSTOMER SECURED 30.7. OMNIBUS3

46,2002.47

5 SMBC Nikko Securities Inc.

43,3532.32

32,652

1.74

25,561

1.36

21,997

1.17

9 SSBTC CLIENT OMNIBUS ACCOUNT

20,577

1.10

10 Meiji Yasuda Life Insurance Company

20,2761.08

1,090,249

58.36

3

6

# of investors
Retail, Individuals

Name of Accounts

STATE STREET BANK WEST CLIENT-TREATY
5052347 JP MORGAN CHASE BANK 385781
8

LEGAL + GENERAL ASSURANCE PENSIONSMANAGEMENT LIMITED

Total

1 Ratios are rounded to the nearest hundredth
2 Includes Sponsor owned investment units of 47,700
3 LLR units held by Jones Lang LaSalle Co-Investment, Inc. (a subsidiary of JLL).

All of the 46,200 units are held by Jones Lang LaSalle Co-Investment Inc.

LaSalle LOGIPORT REIT

60

Disclaimer
This document is prepared solely for the purpose of providing information, not for the purpose of soliciting, soliciting, or conducting sales of investments in specific products.
This document includes charts and data prepared by LaSalle REIT Advisors K.K. ("the Asset Manager") based on data and indicators published by third parties, in addition to statements relating to
LaSalle LOGIPORT REIT (the "Investment Corporation"). This report also contains information regarding the Asset Manager's analysis, judgments and other opinions as of the date of this report.
The content of this document is unaudited and does not guarantee its accuracy or certainty. The analysis and judgments of the Asset Manager represent the current views of the Asset Manager
and may change or be abolished without notice. In addition, the Investment Corporation and the Asset Management Company do not assume any responsibility for the accuracy and completeness ofdata and indicators published by third parties (including data based on the real estate appraisal report). Such data and indicators include the appraisal values of real estate held by the Investment
Corporation and the survey value of real estate prices. The appraisal value of real estate owned by the Investment Corporation and the survey value of real estate value are as of the time of analysis byreal estate appraisers, etc. Therefore, due attention should be paid to the fact that the appraisal value may differ from the appraisal as of the date of the announcement of this financial results.
This document contains forward-looking statements that are based on management's assumptions and beliefs in light of the current situation. These statements are not guarantees of theInvestment Corporation's future performance and financial position.
With regard to the investment in the investment units of the Investment Corporation, there is a risk of loss due to fluctuations in the price of the investment units, etc. In addition, there is a risk thatlosses on margin transactions, etc. may exceed the principal amount. When making an investment, please carefully read the content of this document to be delivered before the conclusion of thecontract, or the prospectus, etc., issued by each securities company, etc.
In the future, if any material corrections are made to the content of this report, the corrected version will be posted on the website (https://lasalle-logiport.com/english/) of the Investment
Corporation. However, this document should not be construed as an obligation to update or revise information.
The Asset Manager is a Financial Instruments Business Operator based on the Financial Instruments and Exchange Act.

LaSalle LOGIPORT REIT

61