Fiscal Period Ended
February 29, 2024
Securities Code：3481

Asset Management Company
April 15, 2024

Table of Contents
１. Highlights, Financial Results and Forecasts

2

２. Growth strategy

5

３. ESG Initiatives

14

４. Logistics Market

16

5. Appendix

21

MJ Logipark Ichinomiya 1

Highlights, Financial Results and Forecasts

Highlights Since October 2023
Financial Results
Summary(15th FP)⚫ Achieved consistent NOI growth since listing and 11
consecutive periods of increased revenue, profit and DPU due
to contribution to earnings from assets acquired in 15th FP
and solid internal growthNOI

6,359 mn yen

DPU8,083 yenvs 14th

＋5.2％
vs 14th+3.2％

NOI Yield after depreciation

HybridExternal Growth⚫ Realized unrealized gain through timely property dispositionand distribute gains to unitholders over next two fiscal
periods; 16th FP and 17th FP. Expect to realize record-high
Asset Replacement
DPU⚫ Remaining proceeds from the disposition will be used for
future growth and/or buyback, etc. considering financial
market and other factors.

<Asset to be acquired>
MJ Logipark Ichinomiya 1<Asset (to be) disposed>

MJ Logipark Sendai 1

3.8 %
＜

⚫ Implemented strategic asset replacement to improve
profitability over the med-to long-term. Dispose property
expected to increase in repair costs, etc. in the future. Use
the proceeds to acquire newer property expected to havestability and profitability. Continue disciplined growth

3.2 %Year built
Asset to be acquired
Portfolio
after asset replacement

1.5 yrs
7.6 yrs

Disposition gain
16th FP

1,392 mn yen
2,766 yen/unit

17th FP

1,361 mn yen
2,704 yen/unit

HybridInternal Growth

ESG⚫ Expect to achieve 13 consecutive period of rent growth andmaintained high occupancy rate. Internal growth with bothstability and growth potential⚫ Continued internal growth through MJIA's unique initiative
such as green lease agreements

Average rent growth(Note)

15th FP（Actual）

5.4%

16th FP（Executed）

6.0%

Average occupancy rate
99.9 %⚫ CDP Climate Change recognition as "A-List“ (highest rating) (Feb. 2024)⚫ Conduct TCFD quantitative analysis (Mar. 2024)

Note : Average rent growth for the leases is expired or will be expired during the relevant period(Excluding short-term contracts). For the 16th FP, the figures are for the portion of the contract that has been signed.

3

DPU Transition
15th FP: DPU landed at 8,083 yen, up 251 yen from 14th FP, increasing revenue
mainly due to properties acquired in 15th FP and internal growth on existing properties, etc.
:Expect a significant increase in DPU by the disposition gain without SCD.
:Steady growth due to continued internal growth and the effect of asset replacement,
Expected to be 8,196 yen in 17th FP

16th & 17th
Stabilized DPU

Contribution of revenues
from properties acquiredin 15th FP＋435

Rent growth, etc. on
existing properties＋106

Decrease in leasing cost+81

Increase in depreciation

₋88

Increase in general andadministrative expenses

₋69

Increase in non-operating
expenses₋46

Decrease in SCD

₋171

yen

Disposition gain from MJ
Logipark Sendai 1＋2,766

Decrease in operating P/Ldue to asset replacement

₋41

Full contribution ofrevenues from properties
acquired in 15th FP＋73

Rent growth, etc. on
existing properties∔23

Increase in leasing cost₋188

Increase in property tax(starting expenses of properties
acquired in 15th FP, etc.)

₋86Increase in other operating
expenses on existing properties

-58

7,832

251

-61

Increase in operating P/L due
to asset replacement＋92

Rent growth, etc. on existing
properties＋26

Temporary revenue loss fromexisting properties(Estimate downtime, etc.）₋216

Decrease in leasing cost

+152

Forecast Stabilized DPU

Increase in repair cost-8

Increase in other operating
expenses on existing properties-14

Increase in general andadministrative expenses

₋356

Increase in non-operating
expenses₋133

Decrease in general andadministrative expenses＋28

Non-implementation of
SCD

₋696

Decrease in non-operating
expenses

＋60

1,299

10,000Decrease in disposition gainfrom MJ Logipark Sendai 1

9,382

8,083

59

Expected to achieve steady
growth in stabilized DPU
despite continued weakness
J-REIT market
+4.6％

9,441

8,087

7,832

7,500

+3.3％
5,000

+1.3％

Asset
replacement ＆Internal growth

Acquisition of 2
properties by LTV
External growth

2,500
0

8,196

14th FP Actual（Aug. 2023）

15th FP Actual（Feb. 2024）

16th FP Forecast（Aug. 2024）

17th FP Forecast（Feb. 2025）

14th FP

16th FP E

17th FP E（Announced
Oct. 2022）（Announced
Oct. 2023）（Announced
Apr. 2024）

4

Growth Strategy

Changing Market Circumstances and Our Growth Strategies

Logistics
Real EstateTransaction
Market◼

Real Estate Market price remains at
a high level• Despite rising interest
rates, CAP rate remains
low level

Expectation of improvement in the
supply-demand environment• With construction costs surging, future
supply is expected to decrease. Demand
from EC and other sectors remainstrong, the supply-demand environmentis expected to be improved◼

Logistics
Real Estate
RentalMarketFinance◼ Response to interest rate trends• The BOJ’s policy has dispelled a certain degreeof uncertainty, although there are concerns
about a temporary rise in interest rates.
• Anticipation of a rate cut in the U.S. and othercountries in early timing in this year has
recededExternal Growth Strategy◼ Aim to acquire properties in a timely manner by utilizing
bridge scheme through building up a high-quality
pipeline with a hybrid strategy◼ Continuous improvement of portfolio quality,
including property disposition at appropriate
timingInternal Growth Strategy◼ Continued upward rent revision outpacing
inflation by realizing the rent gap◼ Pursue further internal growththrough MJIA’s unique initiatives

Financial Strategy◼ Control costs while maintaining stability bytargeting a fixed ratio at a minimum of 85% andcombining floating interest rates◼ Securing cash on hand through proceedsfrom the disposition of the property◼ Continue to finance considering equity cost

Asset Replacement
Outline of Replacement
Acquisition MJ Logipark Ichinomiya 1

Disposition MJ Logipark Sendai 1
Acquisition Price

7,388 mn yen

5,851 mn yen

Appraisal Value

AnticipatedAcquisition Price

7,850 mn yen

Appraisal Value

Sales price

6,790 mn yen

10,000 mn yen

Location

Ichinomiya,
Aichi

Location(Anticipated)
Disposition Date

Tagajo, Miyagi

Replacement①April 10, 2024

AnticipatedAcquisition Date

（Co-beneficiary interest 51.0％）②September 3, 2024

August 1, 2024

（Co-beneficiary interest 49.0％）

Effects of Replacement

Improvementin profitability

Realizing gain
on disposition

Securing cash on
hands

Disposition of the property that is older
and expected to increase repair costs inthe future, and acquisition of property
that is newer and expected to be morestable and profitable with 14% discountvs appraisal value

Realized an opportunity to sell theproperty at a price 27% higher than
the appraisal value.
Realized the gain on disposition tounitholders over next two fiscal
periods.
Securing cash on hands by
disposition of the property.
Consider the market environment
and equity cost to utilize it

Disposition

Acquisition

Appraisal NOI Yield
after depreciation

3.2％

3.8％

＋0.6 ％

Year built

14.9 yrs

1.5 yrs-13.4 yrs

＜Anticipated Schedule＞
Co-beneficiary interest 51％
Disposition gain：1,392 mn yen

16th FP

Apr. 2024

Cash on hands
after replacement
Acquisition Capacity(LTV up to 45%)

Approx.

3 bn yen

Approx.

25 bn yen＋

Co-beneficiary interest 49％
Disposition gain：1,361 mn yen

17th FP••••

Sept. 2024

Asset acquisitions
CAPEX
Buyback
Debt repayment

7

MJ Logipark Ichinomiya 1■Logistics facilities with excellent proximity to Nagoya City, located in a key
transportation hub with access to multiple expressways and artery roads, providing
access to a wide area
Acquisition Based on Continued
Relationship with Development Partner
Following the acquisition associated with the
public offering in October 2022
Acquisition ofland information

Developer◼ MJIA acquired land information◼ Odakyu Real Estate Co., Ltd. served as adeveloper following MJ Logipark Funabashi 2
and MJ Logipark Inzai 1

Appraisal Value

6,790 mn yen

Appraisal NOI
Yield

4.9%

Location

Ichinomiya, Aichi

Year Built

August 2022

Total Floor Area

26,922.21m2

Land Area

13,234.63m

No. of Tenants

1

Main Tenant

TOBU
TRANSPORTATION
CO., LTD.

2

Multi-tenanted
type

CASBEE/BELS

MJ Logipark
Ichinomiya 1
Hokuriku
RegionSale of
land

Sale ofproperty

5,851 mn yen

PDP

Location at Hub or Major Artery Roads,
Convenient for Wide-area Delivery

Land owner

Proposal of a development
project with exit strategy /advice on development plan

AnticipatedAcquisition Price

MJIA-sourced

Osaka
Metropolitan
Area

Tokyo
Metropolitan
Area◼ Location at a hub of extensive road networks,
functioning as a point of connection of routes
toward the Tokyo Metropolitan Area, Osaka
Metropolitan Area and Hokuriku region

Property Characteristics

Location Characteristics
Approx. 2.5km from
“Ichinomiya Naka IC” on
Nagoya Expressway
No. 16 Ichinomiya Line
3-odd km from
“Ichinomiya Kisogawa IC” on
Tokai-Hokuriku Expressway
Approx. 6km from
“Ichinomiya IC” on
Meishin Expressway

Platform-type truck berths■■

Approx. 130m from“the Naka Hoken Center bus stop” ■of Ichinomiya City Community
Bus■

Ladies' rooms with large mirrors

A 4-story, box type logistics facility
A facility supporting efficient operation, with 4 vertical conveyors and 2
cargo elevators installed in the warehouse section, equipped with platformtype truck berths for 22 vehicles as well
Pleasant labor environment, equipped with the approx. 60㎡ refreshingroom dedicated to tenant workers, and ladies’ rooms with large mirrors at
every floor
Employment security is advantageous due to the large number of residents
in the surrounding area

8

Continuous Effort for Growth◼

Continuous external growth through utilization of low LTV and strategic assets replacement even under the
weak performance of unit price. Steady progress toward the asset size target of 300 billion yen◼

Continued acquisition of properties with consciousness of equity cost to achieve DPU growth
Acquisition

Asset size

Continuous
external growthwith quality andconsciousness ofequity cost

+9.4bn yen

261.6 bn yen
Acquisition ofproperties utilizing
low LTV

Disposition‐7.3bn yen

Acquisition+5.8bn yen

Asset size

269.5 bn yen

Improve portfolio quality throughstrategic asset replacement
Realizing gain on sale
Secure cash on hands

Steady progress
toward the asset
size target of
300 bn yen

Improvement of yield
after depreciation
MJ Industrial park
Koriyama（Land）

FP ended Aug. 2023
(14th FP)

14th FP
Stabilized DPU

MJ Logipark Ichinomiya1

MJ Logipark Kakogawa1

7,832yenSept. 2023

MJ Logipark Sendai11

Younger year build

Apr. 2024

Aug. 2024

Acquisition

Disposition

Acquisition

8,087 yenーー

8,196 yen

FP ending Feb. 2025
(17th FP)

Avg
(after asset replacement)（16thFP(E)) after acquired 2 properties

Appraisal
NOI Yield

4.7％

4.7％

4.9％

4.9％

4.7％

Appraisal NOI
Yield after
Depreciation

3.7％

3.8％

3.2％

3.8％

3.7％

Year Built

7.7 years

1.1 years

14.9 years

1.5 years

7.6 years

LTV

38.0％

ー

ー

ー

40.0%

Note：

The figures for the end of the 14th fiscal period and the total/average of the two properties are as of the end of Aug. 2023, while the figures for property to be disposed, the property to be acquired and the total/average after
replacement are the actual and assumed figures as of the end of Feb. 2024.

9

Pipeline to Realize External Growth Strategy
Aim for further external growth leveraging 14 properties (with expected preferential negotiation rights) with total
floor area of 799,000m2 including 11 completed properties with total floor area of 608,000m 2
Total Floor
Area

Property Name(approx.)Sponsor-developed properties
with expected preferential
negotiation rights

MJIA-sourced properties withexpected preferential
negotiation rights

FP2025/2

FP2025/8

FP2026/2 and after

100%
Occupancy

78,000m2

Completedin 2021

Included inbridge scheme

Logicross Kasukabe100%
Occupancy

38,000m2

Completedin 2021

Included inbridge scheme

Logicross Funabashi

100%
Occupancy

23,000m2

Completedin 2021

Included inbridge scheme

44,000m2

Completedin 2022

20,000m2

Completedin 2022

Logicross Zama

178,000m2

Completedin 2023

Logicross Sagamihara

170,000m2

Completedin 2023

Logicross Osaka Suminoe

43,000m2

Logicross Misato*

125,000m2

Construction andDevelopment (Planned)

Completion Planned
2026

Osaka Taisho Hirao Cold Storage Project*

21,000m2

Construction andDevelopment (Planned)

Completion Planned2026 Spring

MJ Logipark Aisai 1*

9,000m2

Completedin 2022100%
Occupancy

Logicross Osaka Katano

Brand of logistics facilities
MEC develops throughout Japan

FP2024/8

Logicross Hasuda

Logicross Zama Komatsubara

Logicross

Schedule
until FP2024/2

Included inbridge scheme

Logicross Zama
Completion Planned
March 2025

Development

PDP

100%
Occupancy

11,000m2

Completedin 2022

MJ Logipark Ichinomiya 1

PDP

100%
Occupancy

26,000㎡

Completedin 2022

MJ Logipark Okazaki 1*

PDP

100%
Occupancy

24,000㎡

Completedin 2023

PDP

100%
Occupancy

8,000㎡

Completedin 2024

MJ Logipark Daito 1*

Logicross Hasuda

Logicross Osaka Suminoe

Asset to be acquired

MJ Logipark

Brand of logistics facilities which MEL NEW
acquired or intends to acquire from
MJ Logipark Toyonaka 1*
third parties*Tentative name
Note:

Total

799,000㎡

608,000㎡

MJ Logipark Toyonaka 1*
608,000㎡

608,000㎡

652,000㎡

799,000㎡

As of Apr. 15, 2024.MEC Group-developed properties with expected preferential negotiation rights and MJIA-sourced properties with expected preferential negotiation rights are highlighted in blue and in green,
Total floor area and number of properties exclude properties to be acquired10Internal Growth Strategy
Rent Revision Track Record and Lease Agreement Expiration Schedule (Note 1)
Expect to achieve rent growth for 13 consecutive fiscal periods through FP Aug. 2024 (16th FP)
with upward trend expected to continue for FP Feb. 2025 (17th FP)
Upward rent revision

Floor area of tenants whose warehouse leaseagreements are set to expire（㎡）
120,000

99.9%

99.9%

99.9%

99.9%

Rent unchanged
99.9%

99.8%

99.8%

Terms Agreed

99.7%

99.8%

Average occupancy rate in fiscal period

Undecided
100.0% 100.0%

99.9%

90,000

Average
Remaining
Lease Term (Note 2)

Fixed-term
Lease Ratio (Note 2)

6.8 years

100%

60,00030,0000

Average rent
growthAug.31,

Feb.28,Aug.31,

Feb.29,Aug.31,

Feb.28,Aug.31,

Feb.28,Aug.31,

Feb.28,Aug.31,

Feb.29,Aug.31,

Feb.28,Aug.31,

Feb.28,Aug.31,

Feb.28,Aug.31,

Feb.29,Aug.31,

2018

2019

2019

2020

2020

2021

2021

2022

2022

2022

2023

2024

2024

2025

2025

2026

2026

2027

2027

2028

2028

(4th FP)(5th FP)(6th FP)(7th FP)(8th FP)(9th FP)

+1.8%

+0.2%

+3.1%

+2.2%

+9.5%

+8.7%

(10th FP) (11th FP) (12th FP) (13th FP) (14th FP) (15th FP) (16th FP) (17th FP) (18th FP) (19th FP) (20th FP) (21th FP) (22th FP) (23th FP) (24th FP)+13.9%

+6.5%

+5.3%

+5.0%

+

5.4% +6.0%

Contract signed

Upward trend
expected
to continue

Contribution to DPU from Rent Growth

MJIA-led Internal Growth
Newly executed a green lease agreement for LED with a tenant

Installed LED lighting at the cost of MEL, and MEL
receives green lease fee as a portion of the reduction
in cost to be borne by the tenant
ROI approx.
Rent approx.

+8.3%

20 ％
+3 mn yen/FP

DPU contribution from rent growth has been more than
1% per year for past 3 years
1.0％

1.8％
1.6%

1.2%

1.0%

1.5%
0.8%

0.8%
0.4%

Aug. 31, 2021
(10th FP)

2.2％

Feb. 28, 2022
(11th FP)

0.5%

0.5%

Aug. 31, 2022
(12th FP)

Feb. 28, 2023
(13th FP)

0.7%

Aug. 31, 2023
(14th FP)

Feb. 29, 2024
(15th FP)

Note 1: As of Mar. 1, 2024, However, the floor areas of tenants whose lease agreement are set to expire in the future excludes asset (to be ) disposed.Average rent growth for the leases is expired or will be expired during the relevant period. For the 16th FP, the figures are for the portion of thecontract that has been signed.
Note 2: As of Feb. 29, 2024.
Note 3: Calculated by (Rent increase or decrease (warehouse portion) for each tenant whose contract was renewed for the relevant period / total number of investment units issued and outstanding) / DPU for the relevant period.

11

Inflation-resistant Portfolio with Long-term Stability
Basic Policy by Contract TypeMulti-Tenants（excluding whole-building leases）

BTS/Land/Single-TenantsLong-term operation with stability
and efforts to address inflation

Rent increase according to the rent
gap with the market level

Average Lease Term：22.9 years
Average Remaining Lease Term ：19.3 years
Remaining term of more than 5 years：78.6％

Average Lease Term：6.2 years
Average Remaining Lease Term ：3.0 years
Remaining term of less than 5 years：80.5％⚫ Achieve long-standing stability through longer-termlease contracts which generate rental income moreresistant to downward pressure⚫ Reflect the rising trend of market rent by
renewing contracts with shorter contract
terms, resulting in higher revisions thaninflation in the current period⚫ Handle inflation impacts by incorporating contract
provisions which allow for rent revision in the
middle of the contract period⚫ Shorten the lease terms for some contracts
10年未満

Portfolio（Based on leased area）
Ratio of property type

BTS/Land/Single-tenants

53.2％

Remaining lease term

10 years or more

Less than 10 years

27.4%

14.5%

3.8%

57.6%

7.7%

CPI-linked

Property tax-linked

Negotiable

Less than
5 years
11.4%

30.8%

No rent adjustment
clauses

Approx.70% have contracts including rent adjustment clauses(including negotiable clauses)of those with 10 years or more remaining.

Multi-tenants

46.8％

Less than
10 years

Less than 5 years

9.1%

37.7%

5 years or more remaining
with rent adjustment clause

Remaining termless than 5 years

18.9％

49.1％

Approx. 70% of the total portfolio

is able to cope with inflation

Note: As of Feb. 29, 2024

12

Financial Strategy
Financial Highlights (As of Feb. 29, 2024)
Total Debt Balance

Stable financial operation by leveraging thesponsor’s credibility

LTV

113,049 mn yen

40.2 %

Long-term Debt Ratio

Fixed Interest Rate Ratio

95.1

％

Average Remaining Debt
Duration(all / excluding short-term)

5.1 years /5.3 years

Acquisition Capacity(LTV up to 45%)

Approx.

25.0 bn yen

Long-term borrowings
Investment corporation bonds

6.0

0.65%

91.5 %

0.62%

Average Interest Rate(all / excluding short-term)

5.1 yrs

3.0

0.56%

0.55%

0.0

Credit Rating (JCR)

0.50%
J-REITs AverageAA（stable）

MEL(Note)

Achieved cost reduction from
Sustainability-linked loans

Short-term borrowings

Obtained spread incentive as a result of achievement of multiple
SPTs on Sustainability-Linked Loans executed in 2022.
SPTs

15,000Results

30% reduction in CO2 emissions

Achieved（compared to FY2017）

12,000

Green building certification 100%

9,000

-

15% reduction in energy consumption

4Stars in GRESB Real Estate Assessment

3,0000（Year）

Incen
tives

Achieved(compared to FY2017)

6,000

Note：Compiled by the Asset Management Company based on disclosed material as of the end of Feb. 2024

0.60%

4.1 yrs0.56 %/ 0.58 %Debt Maturity Schedule（mn yen）
18,000(Years)Favorable debt financing for both maturities andcosts compared to other J-REITs

Achieved

LenderBalance

Borrowing dateTerm

The Norinchukin
Bank

2,000 mn yen

Oct. 2022

9 yrs

SBI Shinsei Bank

2,000 mn yen

Dec. 2022

9 yrs

13

ESG Initiatives

ESG Initiatives（Topics）
Acquisition of External Certification / Evaluation

Disclaimer
The use by MEL of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the useof MSCI logos, trademarks, service marks or index names herein, do not constitute asponsorship, endorsement, recommendation, or promotion of MEL by MSCI. MSCI
services and data are the property of MSCI or its information providers and are provided"as-is" and without warranty. MSCI names and logos are trademarks or service marks of
MSCI⚫First participation in the Carbon
Disclosure Project (CDP) Climate Change
Program in 2023 and recognition as an“A List” (Highest List)⚫5 Stars (the highest rating)for 4 consecutive years

Quantitative Impact Analysis of TCFD

⚫MSCI ESG Rating improved to A
from BBB in Aug. 2023

Revision of Sustainability Policy<Main points of revision>

Enhance of address for climate change
toward achieving net zero GHG by 2050
Establishing nature and biological diversity sections⚫In response to increasing demands for greater sustainability
information disclosure, MEL conducted Quantitative Impact
analysis which further advanced the Qualitative Impact analysis ofclimate change risks that had been conducted in 2021. (pleaserefer to P35~37)⚫For the details of the analyses, please refer to the our ESG website.
URL：https://mel-reit.co.jp/en/esg/environment/climate.html

Changing “Empower Our People” to “Create Opportunities for
Diverse Human Resources ” to create new corporate value⚫To clarify responsible responses to ESG issues, revised Sustainability
Policy of the Asset Management Company on January 2024.
⚫Sustainability Policy
URL：https://mel-reit.co.jp/en/esg/sustainability/policy.html

15

Logistics Market

Expected to See a Turnaround in the Supply-Demand Environment
Decrease in future supply
Supply Trends (Tokyo Metropolitan Area)

Construction Start Statistics

K㎡

K㎡

5,000

14,00010,500

2,500

7,000

0
2020

2021

2022

2023

2024E

2017

2025E

2018

Rarity of advanced logistics facilities
Strong economic
growth in Japan

20
15

Bubble

2020

2021

2022

2023

Proportion of advanced logistics
facilities

Long-term data on construction starts of logistics facilities
Mn ㎡

2019

Source： Ministry of Land, Infrastructure, Transport and Tourism, "Statistical Survey of Construction Starts

Source: CBRE

Warehouses built during the periodof high economic growth and the
bubble economy are aging.

Advanced logistics
facilities

6.9%

10
5
Others0

Future supply is
expected todecrease due tosoaring construction
costs, etc.

（千億円）

（百万個）

Source: SUMITOMO MITSUI TRUST RESEARCH INSTITUTE CO., LTD. based on "Statistics on Construction Starts" by Ministry of Land, Infrastructure, Transport and Tourism.
Note 1) Survey targets facilities with a total floor area of 5,000m2 or more of SRC + RC + S construction for company-owned and leased facilities nation wide.
Note 2) Ratio of medium-large and small buildings before 1979 is estimated. 2023 is estimated based on data as of November 2023.

93.1%

Proportion ofadvanced logistics
facilities remains
low and scarce

Source: CBRE as of 2023 Q4

Solid demand led by E-commerce
Increase in Business Inventories

Trend in Retail E-Commerce Market Size and E-commerce
Penetration Rate
(100bn yen
yen)
100bn

200

E-Commerce Market Size
E-CommerceMarket Size (Retail) (left axis)(Retail)(left axis)

％%

1.8

UK

26.6

30

1.6

US

14.6

20

150
100
50
0
Source:

E-Commerce penetration rate（right axis）

JPN

9.1

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1.4
1.2

10

1.0

0

0.8

E-commerce market size through 2022: “E-commerce Fact Survey” by Ministry of Economy, Trade and Industry, Japan. EC Penetration Rate is compiled by the Asset Management
Company based on “FY2022 Global Economy Survey for Formulating an Integrated Domestic and External Economic Growth Survey (E-Commerce Market Survey)” by the Ministry of
Economy, Trade and Industry (August 2023), as well as data disclosed by Office for National Statistics (UK) and U.S. Census Bureau.

Finished goods and merchandiseWork in progress
Raw materials and supplies

2020
Q1

2020
Q3

2021
Q1

2021
Q3

2022
Q1

2022
Q3

2023
Q1

2023
Q3

Source: Data compiled by the Asset Management Company based on “Financial Statistics of Corporations by Industry, Quarterly” (for the quarter of January to March 2023)
by Ministry of Finance

Demand remains
strong due toexpansion of the EC
market and growing
demand from the
manufacturing sector

Note : Figures are indexed to 1Q 2020 as the base number

17

Logistics Market Overview : Supply-Demand Trends by Region
New supply (left axis)
Vacancy rate (right axis)

Tokyo Metropolitan Area

New demand (left axis)
Forecast new supply (left axis)
Vacancy rate for one year or more after completion (right axis)（thousand m2）

（％）

4,000

16

3,500

3,000

12

＜ 2023 Q4 ＞
Vacancy rate

7.6% （+0.4% QoQ）

Vacancy rate (for one year or
more after completion)

2.6% （±0% QoQ）

ー

2,500
2,000

8

1,500
1,000

4

500
0
2012

2013

2014

2015

2016

2017

2018

2019

Osaka Metropolitan Area

2020

2021

2022

2023

New supply (left axis)
Vacancy rate (right axis)

2024 2025
Forecast

2026● In 2023, the vacancy rate rose to 7.6% due tothe largest supply ever. Although it is taking
time to leasing up, supply is expected to decline
from 2024 onward, and the supply-demandenvironment is expected to settle down.

02027（year）

New demand (left axis)
Forecast new supply (left axis)
Vacancy rate for one year or more after completion (right axis)（％）（thousand m2）

1,600

16

＜2023 Q4＞
Vacancy rate

4.5% （+1.4% QoQ）
0.1% （-1.4% QoQ）

1,200

12

Vacancy rate (for one year
or more after completion)

800

8

400

4

●Although the vacancy rate rose in 2023 due tothe large supply in emerging areas, the vacancy
rate for one year or more after completion was
0.1%, almost fully occupied. 2024 and beyond
are expected to have a certain amount of supply,
but the around 80% of expected supplies in next
twelve months is pre-leased and the vacancy
rate is expected to decline.

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024 2025
Forecast2026

02027 （year）

Source: CBRE
(Note 1) “Tokyo Metropolitan Area” refers to Tokyo, Chiba, Saitama, Kanagawa and Ibaraki prefectures. “Osaka Metropolitan Area” refers to Osaka, Hyogo and Kyoto prefectures.
(Note 2) “New supply” refers to the total leasable area of newly constructed logistics facilities for lease. “New demand” refers to an increase or decrease in occupied floor space. An increase or decrease in occupied floor space is newly contracted floor space minus vacated floor space.
(Note 3) “Mid to Large Logistics Facilities” refer to logistics facilities for lease with a total floor area of 5,000 m2 or more, which are owned by real estate investment companies or real estate development companies, etc. The survey does not include logistics facilities forlease owned by logistics companies, etc., and does not cover all logistics facilities for lease with a total floor space of 5,000 m2 or more.

18

Logistics Market Overview : Supply-Demand Trends by Region
New supply (left axis)
Vacancy rate (right axis)

Nagoya Metropolitan Area

New demand (left axis)
Forecast new supply (left axis)
Vacancy rate for one year or more after completion (right axis)（thousand m2）

（％）

800

16

600

12

400

8

200

4

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Kyushu Area

2022

2023

2024 2025
Forecast

New supply (left axis)
Vacancy rate (right axis)

2026

02027 （year）

New demand (left axis)（thousand m2）＜2023 Q4＞
Vacancy rate

9.8% （+1.6% QoQ）

Vacancy rate (for one
year or more completion)

2.8% （-4.7% QoQ）

● Although 2023 saw the largest supply in history,
demand is at an all-time high, with significant
needs from the automotive and othermanufacturing sectors, and expansion needs are
expected to continue in the future. Vacancy rate is
expected to gradually decline from 2024 onward as
supply decreases.

Forecast new supply (left axis)

（％）

400

16

＜2023 Q4＞
300

12

200

8

100

4

0

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024 2025
Forecast

2026

2027

（year）

Vacancy rate

7.4% （+1.9% QoQ）

● The vacancy rate increased in 2023 due tolarge properties leaving vacancies, but demandis strong at the second highest level since thesurvey began. The vacancy rate is expected to
decline in the future, as more than 60% of
properties to be supplied in 2024 is expected to
be pre-leased.

Source: CBRE
(Note 1) “Nagoya Metropolitan Area” refers to Aichi, Mie and Gifu prefectures. “Kyushu Area” refers to Fukuoka and Saga prefectures.
(Note 2) “New supply” refers to the total leasable area of newly constructed logistics facilities for lease. “New demand” refers to an increase or decrease in occupied floor space. An increase or decrease in occupied floor space is newly contracted floor space minus vacated floor space.
(Note 3) “Mid to Large Logistics Facilities” refer to logistics facilities for lease with a total floor area of 5,000 m2 or more, which are owned by real estate investment companies or real estate development companies, etc. The survey does not include logistics facilities forlease owned by logistics companies, etc., and does not cover all logistics facilities for lease with a total floor space of 5,000 m2 or more.

19

Logistics Facility Tenant Trends
Trend in Facility Area Usage per Tenant by Industry

Logistics Tenants’ Expansion Plan Over the Next Three Years（m2／Tenant）

Floor area
倉庫の総面積39%

No. of拠点数
sites

16%

32%
34%

26%
42%

1%
2%
7%
2%

0%

20%

10%+
growth
10%以上拡大

0–10% growth
0–10%拡大40%Nochange
変わらない

60%

80%

0–10% reduction
0–10%減少

2017

100%

10%+ reduction
10%以上減少E-commerce

Wholesale

2018

2019

2020
2021
Building Completion Year

2022

Average2023※Estimate

Initiatives to Address the “2024 Problem” (multiple answers allowed)

Reasons for Logistics Network Plans (up to three answers allowed)
Business expansion

70%

Alliance with other transportationcompanies
Increase cooperative delivery /improve loading rate

Relocating sites to achieve efficient network

59%
43%

Hire more truck drivers

29%

Increase / establish transit locations

29%
24%

Under consideration
Use of autonomous vehicles, articulated
lorries and other next generation vehicles

60%

14%

Minimal impact / no initiative

9%

Increase storage volume per location(reduce transport frequency)

9%
2%

Other

Consignor firms (n=91)

Manufacturer

Source: SUMITOMO MITSUI TRUST RESEARCH INSTITUTE CO., LTD.
Note 1: As of end of Nov. 2023. Only tenants with disclosed estimate values are considered for 2023
Note 2: Tenant information is obtained from public information as well as local information and is not exhaustive. Usage area is for reference only
Note 3: Some tenants may have been replaced since completion as the data used is current information, not at the point of completion

Source：CBRE K.K. "Japan Logistics Occupier Survey 2023" (June 2023)

事業の拡大
45%
31%
拠点の効率的な配置
38%
28%
Increase in volume of goods stored
保管量・在庫の積み増し
37%
21%
Obsolescence/ usability of building/ facilities
建物・設備の老朽化、使いにくさ
19%
Expanding regional network
13%
地方拠点の増強
13%
Reducing rental expenses
8%
賃料コストの削減
11%
Installation/ upgrade of facilities/ systems
9%
新設備やシステムの導入・見直し
6%
Enhancing aseismic/ BCP qualities of facilities
5%
耐震性能向上やBCP対策
10%
5%
Increase in volume of cold storage items
冷凍冷蔵商品の増加
6%
Increase in volume of home delivery parcels
4%
宅配用の荷物の増加
3%
Discontinuation/ sale of existing sites
取り壊し、売却等
2%
1%
Decrease in cargovolume handled
荷物量の減少
6%
4%
その他
4%
Other
物流企業（n=182）
Logistics operators (n=182)
0%
20%
40%
荷主企業（n=89）

Logistics・3PL

120,000
90,00060,00030,0000(n=163)

80%

0%

10%

Source: CBRE K.K. "Japan Logistics Occupier Survey 2023" (June 2023)

Source: CBRE K.K. “Logistics Occupier Survey 2023” (June 2023)

Outlook on 3PL Outsourcing for the Next Three Years (n=Consignor Firms)

3PL Market Size

20%

30%

40%

50%

60%

70%

(100bn yen)50

2023（n=50）42%2022（n=62）

54%

50%

0%
Increase
現在よりも増える

20%

4%

39%

40%

No Change
現在と変わらない

Source: CBRE K.K. "Japan Logistics Occupier Survey 2023" (June 2023)

60%
Decrease
現在よりも減る

6%5%

80%

100%

Other/N/A
その他・未定40

3PL Sales

30
20
10
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: Compiled by the Asset Management Company based on “Monthly Logistics Business Sep. 2023”
Note: Each fiscal year is the period beginning on April 1 and ending on March 31 of the following year, which does not coincide with thefiscal period of MEL

20

Appendix

Financial Results for the Fiscal Period Ended Feb. 2024
Operating Results (mn yen)

Operating Revenues

Operating Rental Revenues

FP EndedAug. 2023
Actual(14th FP)(A)FP Ended
Feb. 2024
Actual(15th FP)(B)

7,510

7,746

7,510

7,746

Difference（B）－（A）

1

+235

7,783

+235

7,783

Operating Rental Expenses(excluding depreciation)

1,465

1,386

-78

1,542

NOI

6,045

6,359

+313

6,241

1,317

1,361

+44

1,366

927

962

+34

954

3,800

4,034

+234

3,919

-292

₋314

-22

-318

Depreciation
General and Administrative Expense
Operating Income

Non-operating Profit and Loss
Ordinary Income
Net Income

3,507
3,506

3,719
3,718

2
3

+212
+212

3,600
3,599

Distributions per Unit (yen)Distributions per Unit
(including SCD)
Distributions per Unit
(excluding SCD)
Surplus Cash Distributions (SCD)
per Unit
Ratio of SCD to Depreciation
Number of Investment Units Issued andOutstanding (units)

1（Contribution to Net Income）

・Contribution of revenues fromproperties acquired in 15th FP+219mn yen

・Rent increase, etc. from existing properties+54mn yen・Decrease in utilities income-35mn yen・Decrease in other revenue-3mn yen

2・Increase in Operating Revenues (above①)

・Increase in Operating expenses+235mn yen-0.7mn yen

Decrease in leasing cost

+40mn yen

Decrease in utilities cost

+32mn yen

Decrease in repair cost

+2mn yen

Increase in depreciation-44mn yen

Decrease in other operating rental expenses+3mn yen

Increase in general and administrative expenses-34mn yen

7,832

8,083

+251

7,963

3 ・Increase in Operating Income (above②)+234mn yen

6,965

7,387

+422

7,149

・Change in non-operating profit and loss

-22mn yen

867

696

-171

814

33.2%

25.8％

-7.4％

30.0％

503,485

503,485±0503,485

Increase in interest expenses
Increase in interest expenses on investment
corporation bondAbsence of investment corporation bond issuance costs

₋32mn yen
-8mn yen+17mn yen

Properties Acquired in 15th FP
Total Acquisition Price 9.4 bn yen

Other Statistics
FFO per Unit (yen)

9,581

10,091

+510

9,863

AFFO per Unit (yen)

9,032

8,821

-211

8,553

AFFO Payout Ratio

86.7％

91.6％

+4.9％

93.1%

LTV

38.0%

40.2％

∔2.2%

40.3%

395,815397,624+1,809‐NAV per Unit (yen)Main Factors of Variance14th FP Actual vs. 15th FP Actual

FP Ended Feb.
2024 Forecast(15th FP)

MJ Logipark Kakogawa1

MJ Industrial Park Koriyama(Land)

22

Forecasts for the Fiscal Periods Ending Aug. 2024 and Feb. 2025
Operating Results (mn yen)

Operating Revenues
Operating Rental Revenues(excluding gain from disposition)

FP EndedAug. 2023 Actual

FP Ending Feb.
2024 Forecast(15th FP)(A)(16th FP)(B)

7,746

9,125

Difference（B）－（A）

1(Reference)

Forecast (17th FP)+1,379

9,004

7,746

7,732

₋13

7,642

-

1,392

+1,392

1,361

Operating Rental Expenses(excluding depreciation)

1,386

1,509

+122

1,411

NOI

6,359

6,223

₋135

6,231

1,361

1,365

+3

1,358

962

1,142

+179

1,127

4,034

5,108

₋314

-383

Ordinary Income

3,719

4,725

Net Income

3,718

Gain from Disposition

Depreciation
General and Administrative Expense
Operating Income
Non-operating Profit and Loss2

+1,073

1（Contribution to Net Income）

1 ・Disposition gain from MJLP Sendai 1+1,392mn yen

・Decrease in operating revenues fromasset replacement-61mn yen・Increase in operating revenues mainly due tofull contribution of revenues from asset
acquired in 15th FP+48mn yen

2・Increase in Operating Revenues (above①)
・Increase in Operating Expenses
Increase in leasing fee
Decrease in rental operating expenses from asset
replacement
Increase in property tax due to properties acquired in15th FP, etc.
Increase in depreciation for existing properties
Increase in other operating expenses on existing
properties

5,107

-68

-352

+1,005

4,754

4,724

+1,005

4,753

8,083

9,382

+1,299

9,441

7,387

9,382

+1,9959,441

3Main Factors of Variance15th FP Actual vs. 16th FP Forecast

FP Ending Aug. 2024

Increase in general and administrative expenses+1,379mn yen-305mn yen-95mn yen
+40mn yen
-43mn yen
-23mn yen
-5mn yen-179mn yen

Distributions Per Unit (yen)Distributions per Unit (including SCD)
Distributions per Unit (excluding SCD)
Surplus Cash Distributions (SCD)
per Unit

696

-

-696

-

Ratio of SCD to Depreciation

25.8％

-

-25.8％-

Number of Investment Units Issued andOutstanding (units)503,485

503,485±0503,485

3

・Increase in operating income(above②)+1,073mn yen

・Change of non-operating profit and loss

-68mn yen

FFO per Unit (yen)10,091

9,329

-762

9,433

AFFO per Unit (yen)

8,821

9,099

+278

9,177

AFFO Payout Ratio

91.6％

103.1％+11.5％

102.9％

LTV

40.2％

40.1%

₋0.1%

40.0％

-26mn yen

Increase in other non-operating cost

-40mn yen

Main Factors of Variance16th FP Forecast vs. 17th FP Forecast
1

Other Statistics

Increase in interest expenses（Contribution to Net Income）

・Decrease in operating revenues mainly due totemporary loss from existing properties(Estimate downtime, etc.)
・Decrease in operating expenses due todecrease in leasing fee and operating expenses
from asset replacement, etc.

-121mn yen+119mn yen

23

MEL’s Features
Stable Growth Strategy with Hybrid Model “Developer × Real Estate Asset Manager”

No. of Properties /Asset Size

34 properties/
271.0 bn yen

Sponsor-developed
Properties / MJIAsourced Properties

65.3%/
34.7%

AverageOccupancy Rate

Avg. Appraisal NOI
Yield

LTV

99.9%

4.7%

40.2%

（JCR）

SponsorContribution to the Pipeline Supply● Continuous contribution to the portfolio throughthe development of state-of-the-art logistics facilities
based on MEC's extensive development know-how andhigh creditworthinessLeasing Support
Internal
GrowthAA(Stable)Asset Management Company
Development /Facilities Management

External
GrowthCredit Rating● MEL has achieved stable operations since its listing,provided by MEC’s leasing capabilities based on its
strength in customer relations cultivated through awide range of business areas.

Investment /Asset Management

MJIA’s Sourcing● Acquired properties at favorable conditions byutilizing MJIA’s various ingenious strategies basedon its experience of investing and managing various
assets since the early days of real estate funds
MJIA’s Unique Initiatives other than Rent Revision● Realized revenue increase/expense reduction

other than rent revision by utilizing MJIA’s
proprietary know-how based on its extensive
experience in real estate fund management

Note: As of Feb. 29, 2024

24

Management Policy based on “Three Pillars” (Amended in Oct. 2021)
Maximization of Unitholder Value in Mid- to Long-term

Measures continued from the past andto be taken in the future

Alignment

Discipline

HybridAlign interest with unitholders

Achieve disciplined growth

Enhance MEL’s unique strategy
Hybrid Model

External growth utilizing LTV

Hybrid external growth（Supply of properties fromboth Sponsor and MJIA)

Property acquisition with attention to
portfolio NOI yield and implied cap rate
and buyback

Hybrid internal growth(Utilizing management capability of
MJIA and leasing capability of Sponsor)

ESG

Promotion of efforts for
Net-zero GHG emissions by FY2050

ESG

Initiatives to Accomplish
KPIs and Targets

Further inclusion in major indicesand improvement in liquidity
New
ESG
ESG
ESG

Measuresexecuted andachieved

ESG
ESG
ESG
ESG

Flexible property acquisition strategy utilizing bridge funds

More in-depth ESG commitment anddiversification of financing methods through green financing
Support from Sponsor
and continued investment

Flexible financing, carefully watching
the market conditions

Expanding pipelines through MJIA’svarious sourcing methods,
such as CRE proposals and PDP
Track record in PM consignmentand built-up knowledge throughutilization of technology at Sponsor Group✓ Continued growth through execution of follow-on offerings based on “Three Pillars” (Oct. 2022, Mar. 2022, Mar. 2021,
Sept. 2020 and Oct. 2019)✓ Acquisition of the highest rating “5 Stars” from GRESB for four consecutive years (Oct. 2023, Oct. 2022, Oct. 2021 and Nov.
2020)
✓ Conduct TCFD quantitative analysis, CDP Climate Change rating "A-List“, Established KPI based on SBT, formulated
Transition Plan (Mar. 2024, Feb. 2024, Jun. 2023, Apr. 2023, Dec. 2021)✓ Introduction of cumulative investment for employees of Sponsor and MJIA (Mar. 2021)✓ Inclusion in the FTSE EPRA Nareit Global Real Estate Index Series (Jun. 2020)✓ Introduction of the asset management fee structure fully linked to unit price performance, first among J-REITs (May 2019)25

Mid-to Long-Term Growth Strategy
Asset size target and transition of key financial figures
Sponsor-Developed

6th
Follow-on
Offering

MJIA-Sourced

4th
Follow-on
Offering

Asset Size

LTV

After asset
replacement269.5 bn yen

5th261.6 bn yen
Follow-on
Offering

Aim for Further
Growth in
Asset Size

216.2 bn yen

3rd
Follow-on 170.4 bn yen
Offering

2nd
Follow-on
Offering

142.1 bn yen

Stabilized LTV
40%～50%113.7 bn yen
83.2 bn yen

70.8 bn yen
25.0% 27.0% 27.0%

Market Cap

DPU

30.0%

29.4%

31.4%

32.7% 32.4%

36.0%

38.6%

38.0%

40.2%

As of
Mar. 1, 201856.9 bn yen

5,292

5,492

40.1%

40.0%

As of
Mar. 29, 2024
192.8 bn yen

5,524

5,907

6,003

6,619

6,764

7,174

343,144

350,110

7,353

7,628

375,616

391,835

7,832

8,083

9,382

NAV Per
268,610269,287274,642

FP
2018/8(4th FP)FP
2019/2(5th FP)FP
2019/8(6th FP)292,564

297,440FP
2020/2(7th FP)FP
2020/8(8th FP)323,072

Aim for further inclusion
in major indices

9,441
Aim to increase DPU
through disciplined
growth(yen)

Unit (yen)(Note)

Asset Size
Target
300 bn yen

395,815397,624

Aim to steadily grow NAV
per unit and maximize
unitholder value

FP
FP
FP
FP
FP
FP
FP
FP
FP
2024/22024/82025/22021/22021/82022/22022/82023/22023/8(9th FP) (10th FP) (11th FP) (12th FP) (13th FP) (14th FP) (15th FP) (16th FP) (17th FP)

Note：NAV Per Unit shows after paying Surplus Cash Distributions NAV

26

Strategy for Achieving Hybrid External GrowthSponsor-developed（176.8 bn yen / 65.3%）
Acquisition of Sponsordeveloped modern andstate-of-the-art properties atfair prices

MJIA-sourced（94.1 bn yen/ 34.7%）
Acquisition of properties
on favorable terms byleveraging MJIA’s wellcontemplated strategy

Average Appraisal
NOI Yield

4.5%

Sponsor’s Independent Development
Coordination among
the administrationand stakeholders,and consolidation ofplots of land frommultiple landowners

Acquire land information
utilizing MEC Group’s
relationships

Execute challenging projects
utilizing MEC Group’s
advanced development
capabilities

Foreign funds

RE companies

OthersUtilize capabilities in coordination among a variety of
stakeholders and expertise in development, in
addition to the credibility of MEC Group

5.1%

PDP (Partnership Development Program)

SellerBrokerTenantTake leadership in arranging
development projects, by
matching each partner’s needs

Sponsor’s Joint Development
General trading
companies

Average Appraisal
NOI Yield

Constructor

Developer

Be allowed to preferentiallyconsider acquisition after
the building is completed
and leased up

CRE（Corporate Real Estate）
Strategic proposals
for use of realestate assets
Businesscompanies, etc.

Utilize both the credibility of
MEC Group and network of MJIA

Some properties may be inspected andevaluated for their location's suitability forlogistics facilities with consideration forpossibilities of future redevelopment

Bridge Scheme (Bridge Fund / 3rd Party Bridge)• Optimal bridge scheme is chosen taking into account the timing, cost and size ofacquisition, and information sources, etc.

• MEL will acquire properties when the conditions for acquisition are optimal.

Book value

The acquisition price can be adjusted along with reduction in book value at the bridge

Anticipatedacquisition
price

Inclusion inbridge scheme

PeriodNote: As of Feb. 29, 2024

27

Strategy for Achieving Hybrid External Growth(2)Role of MJIA in PDP (Partnership Development Program)
MJIA leads entire development process and considers the needs of all parties involved. This approach enables
MEL to obtain preferential negotiation rights after the property is completed and leased up
Flow of PDP and MJIA’s Role
TypicalDevelopment
Process

Contribution of MJIA

Sourcing• Acquire a wide range of property information through strong
relationships with a wide variety of real estate brokers andaccess to information on related/closed deals

Planning• Analysis of the market environment of nearby logistics facilities• Support of selection of optimal plan specifications based on
tenant needs, site, and surrounding environment• Simulation of estimated costs and project cash flowLand
Acquisition• Search for holders according to return characteristics foreach deal• Planning ability and broad and strong relationships to invite
the most suitable partner for each project

Development
Support• Support for selection of construction companies and conclusion of
construction contracts• Participation in regular on-site meetings and advice on changing plan
• Manage overall project progress• Participation in a variety of inspections after construction completion

MJIA’s Strengths Shown in the Acquired Properties

MJ Logipark Ichinomiya 1• Obtained land information from a close general contractor• Assigned the developer which has several transactions with MJIA
and advised its development plan and cash flow simulation• Obtained the preferential negotiation right by providing an exit andstarted to develop
Functions offered by MJIA(Note)
Sourcing

Operation
Management

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

MJ Logipark Inzai 1• Established a new project through MJIA’s expertise in land information• Advised on development plans and cash flow simulation
to a development partner• MEC Group invited tenants and leased up
Functions offered by MJIA(Note)
Sourcing

Leasing

Planning• Leasing activities by utilizing the MEC Group’s wide tenant
network• Provide advice on determining terms of lease agreementswith tenants

Planning

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

MJ Logipark Takatsuki 1• Obtained land information from a broker with close ties to MJIA
• Identified the tenant’s needs based on MJIA’s familiarity with thesurrounding area
• Development launch by developer with the preferential negotiationright immediately after selection of potential tenant and developer• Support for selection of Property Management and Building
Management• Support for periodic reportings regarding operational
management

Functions offered by MJIA(Note)
Exit
Strategy• Obtain preferential negotiation right on the background of
MEC Group's high credibility• Meeting holders' selling intention by providing exit function

Sourcing

Planning

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

Note: Functions offered by MJIA are colored same as in the left chart

28

Strategy for Achieving Hybrid Internal GrowthSponsor

MJIA

Utilize Accumulated Know-How and Relations with Customers of MEC Group

Realize Internal Growth by MJIA’s Unique Initiatives

Aim for steady internal growth that meets market needs byleveraging customer relations cultivated in the office andretail property business, etc.

TRS (Tenant Relation Support) Services
Aim to realize internal growth over the medium-to-long-term by outsourcing tenant
relation, tenant recruitment and proposal of leasing policy to the Sponsor
TRS
outsourcing
Through concentrated control
of tenant relation for theproperties held by MEL,
leasing information could beaccumulated effectively andefficiently for future use.

Realized internal growth by leveraging MJIA’s
proprietary know-how based on extensive experienceof real estate fund management capabilities

Profit Improvement Measures (example）
Switching to LED based on●●●
Green Lease contract
MJ Logipark Fukuoka 1, etc.

Lease
Agreement

Logistics Companies

Corporate
Customer
Relation

Example of tenant leasing by MEC

Leasing services
Agreement

Cargo Owner

Logicross Fukuoka Hisayama

Aggregate total Approx.＋8.2 mn yen/FP•

Installed LED lighting at the cost of MEL, and MEL
receipts Green Lease fee as a portion of the
reduction in cost to be borne by tenant•

Improved tenant convenience and satisfaction withthe latest dimming functions and reduced
electricity costs significantly

Cost Reduction Measures （example）
Review Asset Evaluation of
the Properties
Logicross Atsugi, etc.

Successfully invited the existing tenant of the officebuilding managed by the MEC Group by meeting theirneeds for logistics facilities.

Aggregate total Approx. -2.2 mn yen/FP(Except lump-sum refunds)•

Review asset evaluation of the properties. Realized
to decrease property tax by negotiating with
relevant government office regarding difference
from evaluation•

Gained refund of property tax due to review inasset valuation

Partnership with Tokyo Ryutsu Center (TRC)•

TRC is a consolidated subsidiary of MEC since 2016. MEL promotes PM outsourcing to TRC
in our portfolio•

Promoting the accumulation of know-how thorough personnel exchange among TRC, MEC
and MJIA

Example of tenant leasing by TRC
Successfully invited theexisting tenant of theproperty managed by TRC
by meeting their needs for
opening new offices in
Nagoya area

Logicross Nagoya Kasadera

29

Portfolio Summary

Logistics facility /Others

Property Age

Area Diversification

Tenant Diversification（Based on acquisition price）（Based on acquisition price）（Based on acquisition price）(Based on leased area excluding Land)

6.1%

Ratio of Top
10 Tenants

7.9%
23.6%

5.2%

10.4%
37.3%

Avg.
8.0 years

52.6%
29.2%

93.9%

Logistics
facility
Others

39.1%

38.2%

4.7%
4.6%
3.9%
3.9%
91
3.5%
Companies
3.2%
3.2%
61.8%
3.0%
3.0%

～5 yrs5-10 yrs
10 yrs ～Tokyo
Metropolitan
Area

Osaka
Metropolitan
Area

NagoyaMetropolitan
Area

OthersNIPPON EXPRESSLONCO JAPANNot Disclosed
MITSUI-SOKO LOGISTICS

Not Disclosed
Kimura-Unity

Nihon Realest

MITAKA SOKO

SANKYU

KOHNAN SHOJI
OthersNote：As of Feb. 29, 2024

30

Portfolio Overview
Sponsor-Developed Properties

MJIA-Sourced Properties

Logicross Fukuoka Hisayama

Logicross Atsugi

Logicross Kobe Sanda

MJ Logipark Funabashi 1

MJ Logipark Atsugi 1

MJ Logipark Kazo 1

Logicross Osaka

Logicross Nagoya Kasadera

Logicross Narashino

MJ Logipark Osaka 1

MJ Logipark Fukuoka 1

MJ Logipark Tsuchiura 1

Logicross AtsugiⅡ

LOGIPORT Sagamihara(49% co-ownership interest)

LOGIPORT Hashimoto(45% co-ownership interest)

MJ Logipark Nishinomiya 1

MJ Logipark Kasugai 1

MJ Logipark Kazo 2

LOGIPORT Osaka Taisho(37.5% co-ownership interest)

LOGIPORT Kawasaki Bay(45% co-ownership interest)

Logicross Yokohama Kohoku

MJ Logipark Sendai 1

MJ Logipark Inzai 1

MJ Logipark Takatsuki 1

LOGiSTA･Logicross Ibaraki Saito(A) (45% co-ownership interest)

LOGiSTA･Logicross Ibaraki Saito(B) (45% co-ownership interest)

MJ Logipark Higashi Osaka 1

MJ Logipark Funabashi 2

MJ Logipark Kakogawa 1

MJ Industrial Park Chiba-Kita (Land)

MJ Industrial Park Kawanishi (Land)

MJ Industrial Park Koriyama（Land）

MJ Industrial Park Sakai(Land)

MJ Industrial Park Kobe (Land)

Note: As of Feb. 29, 2024

31

Portfolio Map

Tokyo Metropolitan Area
1

Logicross Atsugi

2

Logicross Narashino

3

Logicross AtsugiⅡ

4

Logicross Yokohama Kohoku

5

LOGIPORT Sagamihara

6

LOGIPORT Hashimoto

7

LOGIPORT Kawasaki Bay

8

MJ Logipark Funabashi 1

9

MJ Logipark Atsugi 1

10

MJ Logipark Kazo 1

11

MJ Logipark Tsuchiura 1

12

MJ Logipark Kazo 2

13

MJ Logipark Inzai 1

14

MJ Logipark Funabashi 2

15

MJ Industrial Park Chiba-Kita (Land)

16

Logicross Kasukabe

17

Logicross Hasuda

18

Logicross Misato*

19

Logicross Funabashi

20

Logicross Sagamihara

21

Logicross Zama

22

Logicross Zama Komatsubara*Tentative name32

Portfolio Map
Nagoya Metropolitan Area
23

Logicross Nagoya Kasadera

24

MJ Logipark Kasugai 1

25

MJ Logipark Ichinomiya 1

26

MJ Logipark Aisai 1*

27

MJ Logipark Okazaki 1*

Osaka Metropolitan Area
28

Logicross Kobe Sanda

29

Logicross Osaka

30

LOGIPORT Osaka Taisho

31

LOGiSTA･Logicross Ibaraki Saito (A)32

LOGiSTA･Logicross Ibaraki Saito (B)33

MJ Logipark Osaka 1

34

MJ Logipark Nishinomiya 1

35

MJ Logipark Takatsuki 1

36

MJ Logipark Higashi Osaka 1

37

MJ Industrial Park Sakai (Land)38

MJ Industrial Park Kobe (Land)

39

MJ Industrial Park Kawanishi (Land)40

MJ Logipark Kakogawa 1

41

Logicross Osaka Katano

42

Logicross Osaka Suminoe

43

MJ Logipark Daito 1*

44

Osaka Taisho Hirao Cold Storage Project*

45

MJ Logipark Toyonaka 1*

Other Area
46

Logicross Fukuoka Hisayama

47

MJ Logipark Fukuoka 1

48

MJ Logipark Sendai 1

49

MJ Industrial Park Koriyama（Land）*Tentative name33

Features of MEC Group’s Logistics Facilities Business
Exercise capabilities in development and operational management of logistics facilities, by leveraging thestrengths of MEC, a comprehensive developer, and its group companies
Strengths ofLand Acquisition / Development

Strengths as a Comprehensive Developer◼ Information gathering and leasing capabilities by leveraging client network through office
and retail facility business and the branch network◼ Advanced development capabilities based on diverse experience
Extensive Information
Gathering Capabilities

Advanced development capabilities

Corporate Customer Relations◼ Obtaining a variety of land
information through groupwide information sharing◼ MEL’s ability to respond to complex
schemes for ownership interest
swaps were highly rated◼ Collaborative project making full use of relation
with office tenant in Otemachi, Marunouchi and
Yurakucho area

Consolidation of plots of land frommultiple landowners

Customer Network Supported by Branches◼ Efforts such as acquiring
development lands through landconsolidation of multiple owners◼ Use of the regional network mainly in the areas
where MEC’s head office and branches arelocated to achieve tenant-leasing activities

Logicross Hasuda

Logicross Kasukabe

LOGIPORT
Kawasaki Bay

Logicross
Kobe
Sanda

Strengths of the Logistics Facilities Business◼ Tenant relationship activities in collaboration with TRC, which has extensive experience inthe operation of logistics facilities◼ Logistics solutions through use of technologies
Collaboration with TRC◼

◼

TRC was made as aconsolidated subsidiaryof MEC in 2016
Achieved over 1.5
million ㎡ area of PM
consignment

Logistics Solutions

TRC’s Track Record in PM Consignment

(#)

40

Area (right axis)
No. of properties (left axis)

30
20
10

0

26.3
End of
Mar.
2019

56.9

92.2

109.8 115.6(10,000m2)
163.2
200
150

◼

Solutions for Warehouse Operation
Using AI-based Analytics◼

Introduction of AI robot cleaner

100
50

End ofMar.
2020

End of
Mar.
2021

End of
Mar.
2022

End of
Mar.
2023

End ofMar.
2024

Launch of Project for First “Next-gen
Core Logistics Facility” Directly
Connected to Expressway IC in Japan

Utilizing Customer Relations

Coordination among stakeholders
Utilizing Group-wide Network and the administration

Logicross Nagoya Kasadera

Operation & Management

0

Rendering◼ A development project of a “next-gen core logistics facility”
directly connected to an expressway interchange, the first inJapan, was launched in Aodani Advance Maintenance Area
in the hillside area in the east of Joyo, Kyoto◼ A dedicated ramp way directly connected to an IC will
enable the facility to accept trucks under fully autonomous
driving and truck platooning, which are anticipated to allow
next-generation mobility to access the facility directly fromthe expressway, without passing through local roads andeventually address social challenges, including everincreasing demand for cargo transportation and serious
shortage of truck drivers◼ MEC reached, on June 30, 2023, an agreement on its capitaland business alliance with T2 Inc., a company aiming forbuilding a next-gen logistics system leveraging autonomous
driving technologies. Under the alliance, T2 will use a basefor trucks under Level 4 autonomous driving that will be set
up in the next-gen facility, and both parties will jointly
develop a core logistics facility in which Level 4 trucks candrive and operate, as well as relevant services

34

TCFD Quantitative Analysis（1.5℃ scenario）as of 2030
Transition risks increase. Environmental certifications in the portfolio have a significant impact on the increaseor decrease in rental revenue, but countermeasures are taken to limit the decline in operating income.
Major Financial Factors

Countermeasure⚫Transition risk
Decrease in rental revenue resulting from non-acquisition ofenvironmental certifications : ▲638 million yen⚫Physical risk
Decrease in rental revenue by disaster, etc. ：▲95 million yen(million yen)

20,000⚫Maintain and increase the ratio of environmental certifications⚫Energy saving measures such as LEDs, air conditioning
upgrades, etc.
⚫Increase the ratio of renewable energy through installation ofsolar power generation equipment, etc.
⚫Achievement of KPI targets＋672 million yen

C19,846
19

19,716

19,500

638

5

9

8

638

Increase in rental revenue by
raising the ratio ofenvironmental certifications

17

営業利益
Operating
IncomeOperating Income after
countermeasures

Operating Income

Electricity costs caused by risingtemperatures

Decrease in rental revenue by
disasterDecrease in rental revenue due
to non-acquisition ofenvironmental certifications

Financing costs due toinsufficient response to climatechangeRenewable energy installation
costs

Energy-savings renovation
costs

Carbon tax cost

Operating Income

18,5000

リスク
Risk

Environmental certification
costs

機会
Opportunity

13

19,044
95

Carbon tax avoidance byachieving reduction targets

19,00014

Reduction of flood damage
through flood control measures

14

Reduction of utility costs byachieving reduction targets

14

Decrease financing costs by
responding to climate change

435

TCFD Quantitative Analysis（4℃ scenario) as of 2030

Physical risks increase. Operating income is expected to decrease slightly by building a highly resilient portfolio,
despite a certain degree of damage to properties due to wind and flood damage and a decrease in rental revenues.

Decrease financing costs by
responding to climate change

Reduction of utility costs byachieving reduction targets

Reduction of flood damage
through flood control measures

Operating Income after
countermeasures

Increase in rental revenue by
raising the ratio ofenvironmental certifications

0
18,500Operating Income

Carbon tax cost

Energy-savings renovation
costs

Renewable energy installation
costs

Financing costs due toinsufficient response to climatechangeDecrease in rental revenue due
to non-acquisition ofenvironmental certifications

Decrease in rental revenue by
disasterElectricity costs caused by risingtemperatures

Operating Income

5

Environmental certification
costs

Operating Income

0

Risk

0

Carbon tax avoidance byachieving reduction targets

19,000019,5000

Opportunity⚫Reduce damage through flood control⚫Transition risk
Minor financial impact

0
22
99

19,730
0

0

0

0

0

19,725
19,84620,000Countermeasure
Major Financial Factors⚫Physical risk
Decrease in rental revenue, etc. by disaster ：▲99 million yen(million yen)36

Details of TCFD Quantitative Analysis
Category

RelationsType

Financial impacts

Risk

Policies and
Laws

Technology
Transition risk

Enhance Taxation through theIntroduction of a Carbon Taxes

Enhance energy-saving standards
in real estate and Evolution anddissemination of re-energy andenergy-saving technologies

Deterioration of procurement
conditions for market participants
not responding to climate change

-48

0

0

Avoidance of carbon tax through energy
saving renovations and introduction ofrenewable energy

9

44

0

0

Risk

Increase in energy saving renovation
costs

-4

-37

0

0

Risk

Increase in renewable energy
installation costs

-14

-22

0

0

13

31

0

0

-14

-45

0

0

14

45

0

0

-638

-3,460

0

0

638

3,460

0

0

Opportunity
Risk
Opportunity
Risk

Markets

Increasing demand of green
buildings from tenants

Acute

Increase in typhoons, torrential
rains and floods

Chronic

Increase in demand for air
conditioning due to extreme
weather conditions

Physical risk

-19

Opportunity

Opportunity

Increase in carbon taxes

Scope of Financial Impact Amount(million yen)
1.5℃
4℃
MediumMedium Long termLong term
term
term

Reduction of utility costs throughenergy-saving renovation andintroduction of renewable energy
Increase in financing costs due toinadequate response to climate change
Decrease in financing costs byaddressing climate change
Decrease in rental revenue resulting
from non-acquisition of environmental
certifications
Increase in rental revenue by increasing
the ratio of environmentally certified
properties in our portfolio

Risk

Environmental certification costs

-8

-14

0

0

Risk

Decrease in rental revenue and increase
in repair costs caused by the disaster

-95

-99

-99

-137

Opportunity

Reduce damage through flood control

5

5

5

7

Risk

Increase in electricity costs due to risingtemperatures

-17

-54

-22

-107

(Note) "Medium-term" refers to the year 2030, and "long-term" refers to the year 2050.

37

KPI Progress in TCFD
Progress toward Goal Achievements by FY2030
KPIs / Targets

Target-42.0%

GHG emission(Scope1+2)-8.4%

42% reduction

FY2021

Installation of LED lighting and motion sensor

FY2022

Energy consumption
intensity

9.5%(Target year)-6.8%

Promotion of appropriate temperature setting in
air conditioner-9.7%-23.3%-24.4%FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022(Base year)

FY 2030(Target year)

11.9%

-9.8%

Target 0.0%
-18.9%-27.6%

Purchase of renewable energy
Installation of water-saving toilets and soundimitating devices-31.4%

Water saving with tenants
FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022(Base year)

FY 2017(Base year)

FY 2030(Target year)

73.3%

Waste recycling

70%

Target -15.0%

Installation of self consumption solar panels

Water consumption
intensity

Not increase

Renewal of air-conditioning equipment

FY2030(Base year)

15% reduction

Initiatives to reduce environmental burden(Examples)

KPI’s track record

FY 2018

66.6%

FY 2019

63.4%

62.3%

FY 2020

FY 202170.2%

Installation of smart watering systems

Target 70.0%

Promotion of Recycling

FY 2022

FY 2030

Implementation of trash sorting procedures(Target year)(Note) To unify the total amount target based on SBT certification, the target related to "GHG emission intensity," which was previously used as a KPI, has been deleted.

38

ESG Initiatives (1)Environment

SocialRatio of Green Properties

UPCYCLING*⚫ Promote acquisition of green building certification toward the goalof 100% of green properties in our portfolio by FY2030⚫ MJIA participates in the "LoopMarunouchi" craft beer project(sponsored by Beer the First Co., Ltd.
and Mitsubishi Estate), which is madefrom food that is about to be disposedof and stockpiled for disasters.

88.8%

96.5%

*Initiatives to add new value to waste that would
otherwise be thrown away, upgrading and rebirththem as new products.

As of February 2023

As of February 2024

Contributions to the Environment through Our Portfolio

Tenant Satisfaction Survey< FY2023 Results >Ratio of tenants that answered“Excellent" or “Good" (%)⚫ Tenant satisfaction surveys are
conducted regularly to improvetenant satisfaction.
⚫ Construction based on requests
is also conducted.
<Example>
AED installation, Restroom renovation

92.3 %BCP Initiatives
Installation of solar panels

Installation of
sandwich panels forexterior walls⚫ Register for DisasterCooperation Building and
Designation as a Tsunami
Evacuation Facility

LOGIPORT
Hashimoto

Installation of LED
lightings with motion
detected sensor⚫ Seismic isolators(LOGIPORT Sagamihara)

LOGIPORT
Osaka Taisho

Logicross Nagoya
Kasadera

Public green space

39

ESG Initiatives（2）SocialInitiatives for Employees of MJIA

Governance
Board Member of MEL⚫ Aiming to further improve governance, added a supervisory director in May 2023.
Implementing various initiatives in order to maximize asset management⚫ Member: four people（one Executive Director, three Supervisory Director）
performance by improving productivity, skills and motivation of employees(3 males, 1 female)⚫ Goals for DEI Promotion

Acquisition rate of paid leave 90% over

Percentage of female line managers 30% over
（By FY2030）
Acquisition rate of childcare leave 100%
（By FY2030）⚫ Comfortable Working Environment ⚫ Conducted “Workcation”

Asset Management Fee Structure⚫ Introduced an asset management fee structure reflecting the performance ofinvestment unit price for the purpose of aligning interest with unitholders

Asset management
fee I (AUM-linked)

Total assets as of the end of the previous period ×
0.2% (upper limit)

Asset management
fee II (Real estate
profit-linked)

Adjusted NOI × 5.0% (upper limit)

Asset management
fee III (unitholderinterest-linked)

Investment unit price of MEL

Adjusted net income before tax × net income before tax per
unit × 0.001% (upper limit)
First among J-REITs“Fee linked to Investment Unit Price”
Performance against TSE REIT Index ((a)-(b)) × market cap (forfiscal period of each term) × 0.1% (upper limit) (a): Fluctuations
in MEL’s investment unit price (incl. dividends) (b): Fluctuationsin the TSE REIT Index (incl. dividends)
TSE REIT Index (incl. dividends)

X+DPU

If MEL’s growth rate is
greaterY

Increase fee

Y

If MEL’s growth rate issmaller

X+DPU
Reference date (Previous period)⚫ Maternity leave system (paid)⚫ Invitation of personnel from group companies and outside professionals⚫ Specialized training for capacity building of employees⚫ Annual employee satisfaction survey

Reference date (Present period)

Decrease fee

Continued Investment by the Sponsor
Number of Units／Ratio(%)

20,550／Approx.4.1％

40

Major Initiatives and External Certification

CDP Climate Change ”A List”
Recognized with “A LIST”(Highest Recognition)company on its first reporting

MSCI ESG Rating

GRESB Real Estate

Signing of PRIInternational network of investor signatories thatworks to realize the Six Principles for ESG

Support for TCFD

The task force was established by the Financial
Stability Board (FSB) to consider how to disclose
climate-related information and respond tofinancial institutions(Note)

Eco Action 21

SBTi Certification(Near-Term Targets)

Participation in JCI

Participation in UNGC

Participate in as a member of
Mitsubishi Estate Group.

（Note) The use by MEL of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do notconstitute a sponsorship, endorsement, recommendation, or promotion of MEL by MSCI. MSCI services and data are the property of MSCI or its information providers
and are provided "as-is" and without warranty. MSCI names and logos are trademarks or service marks of MSCI

41

Portfolio
Property Name

Sponsor-Developed Properties
MJIA-Sourced Properties

Logicross Fukuoka Hisayama
Logicross Atsugi
Logicross Kobe Sanda
Logicross Osaka
Logicross Nagoya Kasadera
Logicross Narashino
Logicross Atsugi II
Logicross Yokohama Kohoku
LOGIPORT Sagamihara (49%)
LOGIPORT Hashimoto (45%)
LOGIPORT Osaka Taisho (37.5%)
LOGIPORT Kawasaki Bay (45%)
LOGiSTA･Logicross Ibaraki Saito (A) (45%)
LOGiSTA･Logicross Ibaraki Saito (B) (45%)
MJ Logipark Funabashi 1
MJ Logipark Atsugi 1
MJ Logipark Kazo 1
MJ Logipark Osaka 1
MJ Logipark Fukuoka 1
MJ Logipark Tsuchiura 1
MJ Logipark Nishinomiya 1
MJ Logipark Kasugai 1
MJ Logipark Kazo 2
MJ Logipark Sendai 1
MJ Logipark Inzai 1
MJ Logipark Takatsuki 1
MJ Logipark Higashi Osaka 1
MJ Logipark Funabashi 2
MJ Logipark Kakogawa 1
MJ Industrial Park Sakai (Land)
MJ Industrial Park Kobe (Land)
MJ Industrial Park Chiba-Kita (Land)
MJ Industrial Park Kawanishi (Land)
MJ Industrial Park Koriyama (Land)
Total / Average

Location

Kasuya, Fukuoka
Atsugi, Kanagawa
Kobe, Hyogo
Osaka, Osaka
Nagoya, Aichi
Narashino, Chiba
Atsugi, Kanagawa
Yokohama, Kanagawa
Sagamihara, Kanagawa
Sagamihara, Kanagawa
Osaka, Osaka
Kawasaki, Kanagawa
Ibaraki, Osaka
Ibaraki, Osaka
Funabashi, Chiba
Atsugi, Kanagawa
Kazo, Saitama
Osaka, Osaka
Kasuya, Fukuoka
Tsuchiura, Ibaraki
Nishinomiya, Hyogo
Kasugai, Aichi
Kazo, Saitama
Tagajo, Miyagi
Inzai, Chiba
Takatsuki, Osaka
Higashiosaka, Osaka
Funabashi, Chiba
Kakogawa, Hyogo
Sakai, Osaka
Kobe, Hyogo
Chiba, Chiba
Kawanishi, Hyogo
Koriyama, Fukushima

AcquisitionPrice(mn yen)AppraisalValue(mn yen)Appraisal
NOI
Yield
(%)

Total Leasable
Area (㎡)

Ratio toPortfolio(%)

Occupancy
Rate(%)

Building
Age(years)Property
Type

5,770
8,440
3,900
9,743
14,424
11,851
9,838
7,821
21,364
18,200
10,48436,00015,150
3,900
5,400
6,653
1,272
6,090
6,130
3,133
2,483
13,670
1,637
7,388
4,353
5,500
1,687
4,880
7,423
5,600
4,970
1,800
2,125
2,000
271,082

8,020
9,520
4,450
10,40017,70012,60010,6008,150
24,60021,735
12,262
41,625
15,700
4,020
7,060
7,740
1,620
8,110
7,550
3,640
2,750
15,200
1,780
7,850
5,150
6,520
2,050
6,530
7,740
5,780
5,720
2,000
2,630
2,340
311,142

6.0
4.5
5.1
4.3
5.0
4.2
4.4
4.1
4.7
4.6
4.6
4.2
4.2
4.3
7.3
5.0
5.7
5.8
5.7
5.3
5.7
4.8
5.0
4.9
5.0
4.8
5.3
5.3
4.6
3.8
5.1
4.4
4.4
5.0
4.7

34,878.55
29,895.80
12,844.35
35,629.46
62,289.08
39,132.05
34,580.85
16,371.24
88,609.64
58,487.96
40,081.56
117,762.91
45,983.59
14,012.95
18,232.07
28,002.44
7,678.10
39,082.95
38,143.21
15,485.00
13,777.07
57,866.98
7,349.18
39,098.87
20,980.63
20,897.84
10,185.04
19,219.10
32,258.13
87,476.71
31,743.99
14,986.64
9,353.48
80,925.09
1,223,302.51

2.1
3.1
1.4
3.6
5.3
4.4
3.6
2.9
7.9
6.7
3.9
13.3
5.6
1.4
2.0
2.5
0.5
2.2
2.3
1.2
0.9
5.0
0.6
2.7
1.6
2.0
0.6
1.8
2.7
2.1
1.8
0.7
0.8
0.7
100.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.５
100.0
99.8
99.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.9

9.4
7.0
6.7
5.4
5.1
5.9
4.6
4.7
10.5
9.1
6.0
4.8
2.7
2.8
34.2
10.6
17.9
16.4
16.4
9.3
32.9
7.1
25.2
14.9
2.6
2.8
32.8
2.0
1.6
8.0

Multi
Multi
BTS
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
Multi
BTS
BTS
Multi
BTS
Multi
Multi
Multi
BTS
Multi
Multi
Land
Land
Land
Land
Land
-

Note : As of Feb. 29, 2024.

42

Summary of Latest Appraisals (1)（mn yen)

Property Name

Acquisition Date
(Note 1)

Acquisition PriceBook Valueat end of
15th FP

15th FP (Ended Feb.29,2024) (Note 2)

14th FP (Ended Aug.31,2023) (Note 3)

Appraisal
value

Appraisalvalue

Direct cap
rate (%)

Direct cap rate(%)

Difference
Appraisalvalue

Direct cap rate(%)

Un realized
gain

Logicross Fukuoka Hisayama

Sept. 2017

5,770

5,302

8,020

4.2

7,880

4.3

+140

-0.1

2,717

Logicross Atsugi

Sept. 2018

8,440

8,182

9,520

3.9

9,550

3.9

-30

±0

1,337

Logicross Kobe Sanda

Sept. 2018

3,900

3,779

4,450

4.3

4,450

4.3

±0

±0

670

Logicross Osaka

Sept.2020

9,743

9,548

10,4004.0

10,300

4.0

+100

±0

851

Logicross Nagoya Kasadera

Sept.2020

14,424

14,181

17,7004.0

17,800

4.0

-100

±0

3,518

Logicross Narashino

Mar. 2021

11,851

11,714

12,6003.9

12,600

3.9

±0

±0

885

Logicross Atsugi II

Mar. 2022

9,838

9,816

10,6003.9

10,800

3.9

-200

±0

783

Logicross Yokohama Kohoku

Oct. 2022

7,821

7,850

8,150

3.8

8,160

3.8

-10

±0

299

LOGIPORT Sagamihara (49%)

Sept. 2017

21,364

20,232

24,6004.0

24,500

4.0

+100

±0

4,367

LOGIPORT Hashimoto (45%)

Sept. 201718,20017,301

21,735

3.8

21,735

3.8

±0

±0

4,433

LOGIPORT Osaka Taisho (37.5%)

Oct. 201910,484

10,233

12,262

3.8

12,225

3.8

+37

±0

2,028

LOGIPORT Kawasaki Bay (45%)

Mar. 2022

36,00035,67941,625

3.6

41,625

3.6

±0

±0

5,945

LOGiSTA·Logicross Ibaraki Saito(A) (45%)

Oct. 2022

15,15015,147

15,7004.0

15,700

4.0

±0

±0

552

LOGiSTA·Logicross Ibaraki Saito(B) (45%)

Oct. 2022

3,900

3,906

4,020

4.1

4,030

4.1

-10

±0

113

MJ Logipark Funabashi 1

Sept. 2016

5,400

5,682

7,060

5.2

7,060

5.2

±0

±0

1,377

MJ Logipark Atsugi 1

Sept. 2017

6,653

6,312

7,740

4.0

7,750

4.0

-10

±0

1,427

MJ Logipark Kazo 1

Sept. 2017

1,272

1,194

1,620

4.3

1,620

4.3

±0

±0

425

MJ Logipark Osaka 1

Sept. 2017

6,090

5,835

8,110

4.1

8,140

4.1

-30

±0

2,274

Note 1: “Acquisition date” represents the acquisition date in the relevant sale and purchase agreement. If multiple purchase agreements have been concluded due to additional acquisitions, the earliest acquisition date is indicated.
Note 2: As of Feb. 29, 2024.
Note 3: As of Aug. 31, 2023.

43

Summary of Latest Appraisals (2)（mn yen)Acquisition Date
(Note 1)

Property Name

Acquisition PriceBook Valueat end of
15th FP

15th FP (Ended Feb.29,2024) (Note 2)

14th FP (Ended Aug.31,2023) (Note 3)

Appraisal
value

Appraisalvalue

Direct cap
rate (%)

Difference

Direct cap rate(%)

Appraisalvalue

Direct cap rate(%)

Un realizedgain

MJ Logipark Fukuoka 1

Sept. 2017

6,130

5,694

7,550

4.3

7,380

4.4

+170

-0.1

1,855

MJ Logipark Tsuchiura 1

Sept. 2019

3,133

3,056

3,640

4.5

3,650

4.5

-10

±0

583

MJ Logipark Nishinomiya 1

Oct. 2019

2,483

2,530

2,750

4.6

2,740

4.6

+10

±0

219

MJ Logipark Kasugai 1

Oct. 201913,67013,27915,2004.2

15,200

4.2

±0

±0

1,920

MJ Logipark Kazo 2

Sept.2020

1,637

1,661

1,780

4.2

1,780

4.2

±0

±0

118

MJ Logipark Sendai 1

Sept.2020

7,388

7,131

7,850

4.4

7,670

4.5

+180

₋0.1

718

MJ Logipark Inzai 1

Oct. 2022

4,353

4,329

5,150

4.1

5,160

4.1

-10

±0

820

MJ Logipark Takatsuki 1

Oct. 2022

5,500

5,498

6,520

3.9

6,540

3.9

-20

±0

1,021

MJ Logipark Higashi Osaka 1Oct. 2022

1,687

1,736

2,050

4.2

2,050

4.2

±0

±0

313

MJ Logipark Funabashi 2

Dec. 2022

4,880

4,885

6,530

3.8

6,550

3.8

-20

±0

1,644

MJ Logipark Kakogawa 1

Sept. 2023

7,423

7,716

7,740

4.3

7,750

4.3

-10

±0

23

MJ Industrial Park Sakai（Land）

Oct. 2019

5,600

5,666

5,780

3.7

5,780

3.7

±0

±0

113

MJ Industrial Park Kobe（Land）

Mar. 2021

4,970

5,202

5,720

4.0

5,720

4.0

±0

±0

517

MJ Industrial Park Chiba-Kita（Land）

Mar. 2021

1,800

1,914

2,000

4.3

1,980

4.3

∔20

±0

85

MJ Industrial Park Kawanishi (Land)

Oct. 2022

2,125

2,221

2,630

3.9

2,630

3.9

±0

±0

408

MJ Industrial Park Koriyama (Land)

Sept. 2023

2,000

2,090

2,340

4.5

2,340

4.5

±0

±0

249

271,082

266,519

311,142-

310,845---

44,622

Total

Note 1: “Acquisition date” represents the acquisition date in the relevant sale and purchase agreement. If multiple purchase agreements have been concluded due to additional acquisitions, the earliest acquisition date is indicated.
Note 2: As of Feb. 29, 2024.
Note 3: As of Aug. 31, 2023. However as of July 1, 2023 for MJ Logipark Kakogawa1 and MJ Industrial Park Koriyama(Land)

44

Statement of Income and Balance Sheet
Statement of Income
Item
Operating revenues
Operating rental revenues
Other rental revenues
Operating expenses
Expenses related to property rental business

Asset management fee(Unit：Thousands of yen)

Actual7,746,036
7,404,991
341,045
3,711,337
2,748,735
725,357
2,274

Administrative service fee

22,974

Director’s compensations

3,600

Commission paid

151,227

Other operating expenses

57,168Non-operating income(Unit：Thousands of yen)

Item

Asset custody fee

Operating income

Balance Sheet

4,034,699
1,427

Current assets

Actual
14,393,719

Cash and deposits

4,328,182

Cash and deposits in trust

9,679,179

Consumption taxes receivable
Other current assets
Total fixed assets
Property and equipment
Intangible assets
Investments and other assets

293,726
92,631
266,610,245
266,519,993
341
89,910Total assets

281,003,965

Current liabilities

12,962,703

Operating accounts payable

508,051

Short-term loans

5,500,000

Long-term loans payable due within one year

4,550,000

Accrued expenses

1,011,896

Interest income

64

Advances received

1,379,019

Reversal of distributions payable

423

Other current liabilities

Subsidy income

940

Non-operating expenses

316,387

Interest expenses

291,601

Interest expenses on investment corporation bonds

18,101

Borrowing related expenses

6,684

Ordinary income

3,719,740

Net income

3,718,979

Unappropriated retained earnings

3,719,319

Non-current liabilities

13,736108,396,299

Investment Corporation Bonds

4,500,000

Long-term loans payable

98,499,000

Tenant leasehold and security deposits in trust

5,397,299

Total liabilities

121,359,003

Total unitholders’ equity

159,644,961

Unitholders’ capital, net

155,925,642

Surplus3,719,319

Total net assets

159,644,961

Total liabilities and net assets

281,003,965

45

Lender Formation
Balance（mn yen）

No. of Lenders

26

Total Debt Balance

113,049 mn yen

Ratio

Mizuho Bank, Ltd.

16,460

14.6%

MUFG Bank, Ltd.

15,87514.0%

Sumitomo Mitsui Banking Corporation

11,260

10.0%

The Norinchukin Bank

8,750

7.7%

Shinkin Central Bank

6,406

5.7%

The Resona Bank, Ltd.

6,000

5.3%

The Bank of Fukuoka, Ltd.

5,607

5.0%

SBI Shinsei Bank, Limited

4,750

4.2%

The Shinkumi Federation Bank

4,750

4.2%

Investment Corporation Bonds

4,500

4.0%

The Yamaguchi Bank, Ltd.

4,000

3.5%

The Chiba Bank, Ltd.

3,300

2.9%

Daiwa Next Bank, Ltd.

3,300

2.9%

The Yamagata Bank, Ltd.

3,000

2.7%

Development Bank of Japan Inc.

2,491

2.2%

The 77 Bank, Ltd.

1,900

1.7%

The Yamanashi Chuo Bank, Ltd.

1,500

1.3%

The NISHI-NIPPON CITY BANK, Ltd.

1,500

1.3%

The Gunma Bank, Ltd.

1,300

1.1%

Kansai Mirai Bank, Limited
Daishi Hokuetsu Bank, Ltd.

1,300

1.1%

1,300

1.1%

The Hachijuni Bank, Ltd.
Nippon Life Insurance Company

1,000

0.9%

1,000

0.9%

Sumitomo Mitsui Trust Bank, Limited

500

0.4%

The Keiyo Bank, Ltd.

500

0.4%

The Chugoku Bank, Ltd.

500

0.4%

The Bank of Toyama, Ltd.

300

0.3%

113,049

100%

Total
Note : As of Feb. 29, 2024.

46

Unitholders Composition
Major Unitholders（Note2)

Breakdown by Units (Note 1)
2.0%

17.3%

9.5%

503,485
units

7.9%

63.1%

2.2%

：47,920 units

Custody Bank of Japan, Ltd. (Trust Account)

117,949

23.42

Financial institutions：317,964 units

The Master Trust Bank of Japan, Ltd. (Trust Account)

80,202

15.92

Domestic entities：39,784 units

The Nomura Trust and Banking Company, Ltd.
(Trust Account)

23,6004.68

Foreign entities：87,553 units

Mitsubishi Estate Co., Ltd.

20,550

4.08

Securities Companies：10,264 units

Tokyo Century Corporation

11,073

2.19

STATE STREET BANK WEST CLIENT – TREATY 505234

8,261

1.64

The Shinkumi Federation Bank

6,520

1.29

Custody Bank of Japan, Ltd.
(Taxable trust money Account)

6,200

1.23

JP MORGAN CHASE BANK 385781

6,126

1.21

SSBTC CLIENT OMNIBUS ACCOUNT

5,180

1.02

285,661

56.73

0.1%

1.4%

12,830unitholders

94.3%

Ratio
(%)

Domestic individuals
and others

Breakdown by Unitholders (Note 1)
1.7%

Number of
Units

Domestic individuals
and others：12,109 unitholders

Financial institutions：183 unitholders

Domestic entities：295 unitholders

Foreign entities：222 unitholders

Securities Companies：21 unitholders

Total

Investment by MEC
Investment in
MEL by MEC

c. 4.1%

Note1: As of Feb. 29, 2024. The ratio is rounded down to the first decimal place.
Note2: As of Feb. 29, 2024. The ratio is rounded down to the second decimal place.

47

MEMO

MEMO

MEMO

Disclaimer
This document is provided solely for informational purpose with regard to Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) and is not intended to serve as an inducement or solicitation to trade inany product offered by MEL.
Purchase, sale and such of MEL’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 MEL’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.
The information contained in this document is the best available at the time of publication, however, no assurances can be given regarding the accuracy, validity and completeness of this information.
Furthermore, MEL and Mitsubishi Jisho Investment Advisors, Inc. (the “Asset Management Company”) assume no responsibility for the accuracy of the data, indices and other information release by third parties(including data based on real estate appraisal reports).
This document includes forward-looking statements that reflect MEL’s plans and expectations. Any information contained in this document except facts about the past and present is referred to as such forwardlooking statements. These forward-looking statements are based on the current assumptions and beliefs of MEL or the Asset Management Company in light of the information currently available to them, andinvolve known and unknown risks, uncertainties and other factors, and may be affected by such factors. These factors include risks related to MEL’s internal and external growth and risks related to the
profitability per investment unit. Such risks, uncertainties and other factors may cause MEL’s actual results, performance, achievements or financial position expressed or implied by these forward-looking
statements. MEL and the Asset Management Company undertake no obligation to publicly update any forward-looking statements after the date of this document.
The content of this document is subject to change or repeal without prior notice.
Duplication or reproduction of any content presented in this document without the prior consent of MEL or Mitsubishi Jisho Investment Advisors, Inc. 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