Fiscal Period Ended
August 31, 2023
Securities Code：3481

Asset Management Company
October 20, 2023

Table of Contents
１. Highlights

2

２. Summary of Acquisition in 15th FP

4

３. Financial Results and Forecasts

8

４. Growth strategy

11

５. ESG Initiatives

16

６. Mid-to Long-Term Growth Strategy

18

７. Logistics Market

20

８. Appendix

26

MJ Logipark Kakogawa 1

Highlights

Highlights Since April 2023
Financial Results Summary(14th FP)Continuous DPU GrowththroughHybridExternal Growth+
Financial Strategy

Operating
Revenues

7,510 mn yen（VS previous FP)+5.1%

3,506 mn yen

Net
Income(VS previous FP)+2.2%

Even in situations where it is difficult to conduct PO, we achieveddiscipline external growth, through acquisition of 9.4 bn yen of
two MJIA-sourced properties with relatively high NOI yieldby utilizing our strengths of low-level LTV

15th FP

16th FP

Forecast DPU

7,963 yen

8,080 yen

VS previous FP+131 yen+1.7%+117 yen+1.5%

Forecast Growth
Rate for the
Next One Year

3.2%

 Fiscal Period ended Aug. 2023 (14th FP)

HybridInternal Growth

All of the lease agreements which have expired
have been renewed with increased rent Fiscal Period ending Feb. 2024 (15th FP)

All of the lease agreements have been renewed,
expected to achieve rent growth for 12 consecutive fiscal periods

 Promote MJIA-led initiatives such as value-add measuresthrough facility renewal.

ESG

 MSCI ESG Rating improved to A from BBB

7,832 yen

DPU

(VS previous FP)+2.7%

Average Appraisal NOI Yield of
Properties acquired in 15th FP

4.7%

Implied Cap Rate 4.1%
(As of end of 14th FP)

LTV(Before Acquisition /After Acquisition）

38.0% → 40.2%
Average rent growth(Note 1)
14th FP（Actual）

15th FP（Forecast）

+8.3%

+5.4%

Contribution to DPU (Note 2)
14th FP（Actual）

15th FP（Forecast）+41 yen+116 yen(Aug. 2023)

 Attained GRESB Real Estate Assessment 5 Stars for 4 consecutive years

Note 1: Average rent growth for the leases is expired or will be expired during the relevant period.
Note 2: Contribution to DPU is calculated by dividing 6 months contribution of the increase/decrease in monthly rent of each tenant whose lease contract was expired in the previous FP by the total number of investment units at the end of therelevant FP and rounding down to the nearest whole number3Summary of Acquisition in 15th FP

Summary of Acquisition in 15th FP■Acquisition of 9.4 bn yen of MJIA sourced properties with relatively higher NOI yield through PDP/CRE■Despite the weak unit price, continue external growth toward the asset size target 300bn yen

Overview of Acquired Properties

Change of Indexes＜NAV Per Unit＞＜Stabilized DPU＞
7,832 yen

＜Properties acquired in 15th FP＞

Average Appraisal NOI Yield+0.5%

395,153 yen

MJ Industrial park
Koriyama（Land）

MJ Logipark Kakogawa 1

No. of Properties /Total Acquisition Price+3.3%

393,024 yen

8,087 yen*

FP 2023/8

2 properties / 9.4 bn yen* Stabilized DPU FP2024/8 is（Appraisal value 10.0 bn yen）

4.7 %（Implied Cap Rate 4.1%）

1.1 years

Average Building Age

FP 2023/8

FP 2024/8(Estimated)＜LTV＞

calculated by adjusting
temporary revenue loss fromforecast DPU of 8,080 yen LTV will continue to be managed at a conservative level, cappedat 45% for the time being.
Acquisition Capacity(LTV up to 50%)
54.0 bn yen

50.0%＜Portfolio After Acquisitions＞

45.0%

No. of Properties /Total Acquisition Price

34 properties／271.0 bn yen

Average Appraisal NOI Yield

4.7 %Average Building Age

7.5 years（Appraisal Value 310.8 bn yen）

Note : as of Aug. 31, 2023. Including the properties acquired in 15th FP.

FP 2024/8(Estimated)

40.0%
40.2%
35.0%

Expectedlevel

Acquisition Capacity(LTV up to 45%)24.0 bn yen

38.0%

FP 2023/8

FP 2024/8(Forecast)

5

MJ Logipark Kakogawa 1■Located in Kakogawa Area, with convenience for delivery operation in western Japan■Highly-functional multi-tenant logistics facility with truck berths on both sides of the first floor andone side of the second floor

300km

Appraisal NOI
Yield

4.6%

Location

Kakogawa,
Hyogo

Year Built

June 2022

Total Floor Area

30,109.47m2

Land Area

16,859.59m

No. of Tenants

1

Main Tenant

Not disclosed

2

Location Characteristics

200km

Land ownerSale of
land

50km

Kyoto

Okayama Kobe

Osaka

Hiroshima

Developer Acquisition of information on the land anddevelopment partner (JR West Real Estate &Development Company) from a broker with aclose relationship Support for the partner’s project of logistics
facility development, offering advice on thebuilding plan and budgeting

7,750 mn yen

CASBEE/BELS

Support for the development partner’slogistics facility projectSale ofproperty

Appraisal Value

Multi-tenanted
type

Logistics Hub Covering Western Japan

Advice on the building
plan / budgeting

7,423 mn yen

PDP

Development Project Supported by MJIA

Acquisition ofland information

Acquisition Price

MJIA-sourced

MJ Logipark
Kakogawa 1

 Location providing convenience for wide-areadelivery operation in western Japan, withability to cater to needs for use it as a hub

Property Characteristics

Approx. 700m from
National Route 2

Approx. 2.7km from
“Akashi-Nishi IC” on
Daini Shinmei Road
Approx. 1.1km(a 14-minute walk) from
“Higashi Kakogawa Station”
on JR Kobe Line

Slope providing direct access tothe second floor

Truck berths available for largesize vehicles■ A 4-story multi-tenant logistics facility■ A facility equipped with truck berths on the north-eastern andsouth-western sides of the first floor accessible by large-size
vehicles, and the slope providing large-size vehicles direct accessto the second floor■ Sufficient transportation capacity with 4 cargo elevators and 4
vertical conveyors

6

MJ Industrial Park Koriyama (Land)
MJIA-sourced■Long-term relationships with repeat clients led to the second off-balance project■Acquisition with the CRE strategy of land in a favorable location as a production site in Eastern Japan
Property Acquisition
with the CRE Strategy

CRE

Location as a Cross Point in Eastern Japan

Second acquisition from the seller,
with whom MEL has built a good
relationship

MJ Industrial Park
Koriyama (Land)

Kinugawa Rubber Industrial Co., Ltd.
Building
ownerSele ofLand

Building
Lease of
Land

Land

Acquisition Price 2,000 mn yen
Appraisal Value

2,340 mn yen

Appraisal NOI
Yield

5.0%

Location

Koriyama,
Fukushima

Land Area

80,925.09m2

No. of Tenants

1

Main Tenant

Kinugawa Rubber
Industrial Co., Ltd.

Ban-Etsu
Expressway
National Route 49

Location Characteristics
Approx. 5.2km from
“Koriyama IC” on
Tohoku Expressway

Approx. 12km from
“Koriyama Station” on the
Tohoku Shinkansen line
In proximity to the“Seibu Kogyo Danchi Kita bus stop” ofFukushima Transportation

Koriyama
IC

Joban
Expressway

Land owner

Acquiredland
associatedwith thepublicoffering inFeb. 2021

TohokuExpressway

 Location favorable for a production site in easternJapan, at a cross point of key artery roads in thenorth-south and east-west directions

Property Characteristics■■■

Land serving for a production site of an auto parts
manufacturer, located in the largest industrial park in
Koriyama City
Location in Koriyama City, a city of distribution hub, which iscovered by the extensive road network of Tohoku
Expressway, Ban-Etsu Expressway and other artery roads,
and in which several regular railways run and “Koriyama
Freight Terminal Station”, one of the largest cargo terminals
in Japan, is locatedLocational advantage for securing labor, adjacent to thecentral area of Koriyama-shi, a city with the population of
approx. 320,000

7

Financial Results and Forecasts

NOI Transition
14th FP: 6,045 mn yen, thanks to full contribution of properties acquired in 13th FP, etc.
15th FP: 6,241 mn yen, thanks to properties acquired in 15th FP, etc.
16th FP: Aiming for further NOI growth through Internal Growth, etc.

(mn yen)

+2.0%
+3.2%
+1.7%
External
Internal Temporary Property Change inrevenues tax of the operating
GrowthGrowthloss for properties rental P/L
by fullby rent
contribution growth on existing acquired in mainly due
property 13th and to increaseof revenues
existingfromin repair12th FP
properties
properties
has started cost andacquired indecrease in
to be
13th FPutilityexpensed
expenses,etc.

13th FP Actual（Feb. 2023）

External
Internal Change in
GrowthGrowthoperatingby revenue
by rent
rental P/Lcontribution growth on including
fromexisting expenses ofproperties properties
theacquired inproperties
15th FPacquired in15th FP ,etc.

14th FP Actual（Aug. 2023）

Property Change inInternal
External
tax of the operating
GrowthGrowthproperties rental P/L
by rent
by full
contribution growth on acquired in due to15th FP absence ofexistingof revenue
fromproperties will start temporary
revenues
to beproperties
expensed loss andacquired indecreasing
15th FPin repaircost, etc.

15th FP Forecast（Feb. 2024）

16th FP Forecast（Aug. 2024）

9

DPU Transition
14th FP: 7,832 yen, thanks to increase in NOI through properties acquired in 13th FP, etc.
15th FP: 7,963 yen, thanks to increase in NOI through properties acquired in 15th FP, etc.
16th FP: Aiming for further DPU growth through Internal Growth, etc.

(yen)

+1.5%
+1.7%

+2.7%
Increase in NOI＋199

Increase in NOI

Increase in depreciation‐141

Increase in depreciation

Increase in general andadministrative expense
Increase in interest paid

＋388
‐97

-72

Increase in general andadministrative expense
Increase in interest paid

-85

Change in other nonoperating P/L＋285

Change in other nonoperating P/L＋33

Increase in regular SCD+42

Increase in regular SCD+30

Decrease in one-time SCD‐83(absence of offering cost, etc.)

Increase in one-time SCD(temporary increase in repair cost,
temporary revenue loss fromexisting property）

13th FP Actual（Feb. 2023）

‐123

＋14

(absence of bond cost, etc.)

14th FP Actual（Aug. 2023）‐54

Increase in NOI
Increase in depreciation
Increase in general andadministrative expense
Increase in interest paid
Increase in regular SCD

15th FP Forecast（Feb. 2024）

＋243
‐48
‐56
‐37
+14

16th FP Forecast（Aug. 2024）10

Growth Strategy

Pipeline to Realize External Growth Strategy
Aim for further external growth leveraging 14 properties (with expected preferential negotiation rights) with total
floor area of 818,000m2 including 9 completed properties with total floor area of 278,000m2
Total Floor
Area

Property Name

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

MJIA-sourced properties withexpected preferential
negotiation rights

FP2025/8 and after

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

Development

Completion Planned
November 2023

Logicross Sagamihara

170,000m2

Development

Completion Planned
December 2023

Logicross Osaka Suminoe

43,000m2

Logicross Misato*

125,000m2

Construction andDevelopment (Planned)

Completion Planned
2026

21,000m2

Construction andDevelopment (Planned)

Completion Planned2026 Spring100%
Occupancy

Osaka Taisho Hirao Cold Storage Project*

Logicross Hasuda

Logicross Zama

Completion Planned
March 2025

Development

NEW

MJ Logipark Aisai 1*

PDP

100%
Occupancy

10,000m2

Completedin 2022

MJ Logipark Daito 1*

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

818,000㎡

278,000㎡

Total*Tentative name

FP2025/2

78,000m2

MJ Logipark

Brand of logistics facilities which MEL
acquired or intends to acquire fromthird parties

FP2024/8

100%
Occupancy

Logicross Osaka Katano

Logicross

FP2024/2

Logicross Hasuda

Logicross Zama Komatsubara

Brand of logistics facilities
MEC develops throughout Japan

Schedule
until FP2023/8

Logicross Osaka Suminoe

MJ Logipark Ichinomiya 1*
628,000㎡

628,000㎡

628,000㎡

818,000㎡

Note: 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, respectively as of Oct. 20, 2023

12

Internal Growth Strategy
Rent Revision Track Record and Lease Agreement Expiration Schedule (Note 1)

Floor area of tenants whose warehouse leaseagreements are set to expire

Expect to achieve rent growth for 12 consecutive fiscal periods through FP 2024/2 (15th FP)
with upward trend expected to continue for FP 2024/8 (16th FP)
Upward rent revision（㎡）
120,000

Terms Agreed

Rent unchanged

Examples of Recent
Rent Revision
Area/
Floor Area

Average occupancy rate in fiscal period

Undecided

Average
Remaining
Lease Term (Note 2)

99.9% 99.9% 99.9% 99.9% 99.9% 99.8% 99.8% 99.7% 99.8% 100.0%100.0%

Fixed-term
Lease Ratio (Note 2)

100%

6.9 years

90,000

14
th
FP

Average rent
growthProperty B
Other Area/

8,300㎡

30,000Aug.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,

2018

2019

2019

2020

2020

2021

2021

2022

2022

2022

2023

2024

2024

2025

2025

2026

2026

2027

2027

2028

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

15th
FP(9th FP) (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)+1.8% +0.2% +3.1% +2.2% +9.5% +8.7% +13.9% +6.5% +5.3% +5.0% +8.3％ +5.4％

MJIA-led Internal Growth

Upward trend
expected
to continue＋5.7%

30,000㎡

Approx.

60,0000

Property A
NagoyaMetro Area/
Approx.

Rent
GrowthProperty C
Tokyo
Metro Area/
Approx.

＋6.4%＋10.5%

8,600㎡

Property D
Osaka
Metro Area/
Approx.

＋2.6%

14,000㎡

Accumulation of Steady Growth

Example of renewed long-term lease agreement with increased rent,
driven by updated equipment（yen）Estimated accumulated contribution to DPU of continuous internal growth

Renewal of the long-term lease agreement with increased rent for the property byprovided renovation of cold storage facilities and installation of LED lightning when thecontract was renewed

400

After renewal

10 years
Approx. +19 mn yen/FP （+10.3%）

Lease term
Rent

500
300
200
100
0

Rent revision
Initiatives other than rent revision
Refund of property tax due to314yenreview in asset valuation
275yen216yen147yen104yenFeb. 28, 2021
(9th FP)

Aug. 31, 2021
(10th FP)

Feb. 28, 2022
(11th FP)

Aug. 31, 2022
(12th FP)355yen478 yen+123yen+41yenFeb. 28, 2023 Aug. 31, 2023
(13th FP)
(14th FP)

Feb. 29, 2024
(15th FP)

Note 1: as of Sept. 1, 2023.
Note 2: as of Sept. 1, 2023. Including the properties acquired in 15th FP.

13

Impacts of Inflation on MEL Profit/Loss
Impact on Operating Rental Revenues

Impact of Rising Energy Costs

Inflation-resistant Portfolio with Long-term Stability

Limited Impact of Rising Energy Costs on MEL’s P/Land which is improving

Remaining Lease Term by Property Type (Based on leased area)
Multi (excluding whole-building leases): Avg. 2.7 years
BTS/Land/Single: Avg. 19.9 years（m2）(Ratio to the totalleased area)

450,000

38%

300,000

25%

150,000

13%0

less than 3yrs

Multi-tenant(excluding wholebuilding leases)

3yrs or more -5yrs or more -less than 5 yrs

less than 7 yrs less than 10 yrs

Remainingterm of lessthan
5 years
81.8%

Rent increase according
to the rent gap with themarket level Reflect the rising trend of market
rent by renewing contracts withshorter contract terms, resulting
in higher revisions than inflationin the current period
 Shorten the lease terms for some
contracts

7yrs or more -10 yrs or more

BTS/Land/Single

 Limited burden of utility cost on MEL

 Measures to improve the balance of payments are taken at all the 10 multitenant properties
Classification of Utility Cost Burden by Property Type
（Based on total floor area）
Tenants bearing cost includingcommon area
Chilled and Frozen
Tenants bearing cost on whole building
Common area

Multi-tenant

Long-term operation
with stability and efforts
to address inflation
 Achieve long-standing stability
through longer-term lease
contracts which generate rental
income more resistant to
downward pressure Handle inflation impacts byincorporating contract provisions
which allow for rent revision in
the middle of the contract period

BTS / Single-tenant(excluding whole-building leases)

0%

Remainingterm of5 years
or more78.6%

Exclusive area

40.7%

59.3%

4.5%

51.3%

Burdenon MEL

37.7%

3.5%

Tenant Indirect burden
Paid in advance by MEL

3.0%

Tenant direct burden(payable by tenants)

Ratio of Utilities P/L to NOI
 Utilities P/L is improving due to stabilization of the raise in utility costs andimplementation of measures below-0.2％
FP 2022/8（Actual）
Measures to Control Utilities P/L

0.1％
FP 2023/8(Actual) Review of tenant invoicing prices and methods

Significant recovery
compared to budget-0.1%
FP 2023/8(Budget)→ taken at 10 properties

 Implementation of self-consumption solar power → implemented at 1 property
 Installation of LED lighting in common area

→ installed at 9 properties

14

Financial Strategy
Financial Highlights (As of Sept. 29, 2023)

Issuance of Green Bonds

Forecasted LTV

Total Debt Balance

113,049 mn yen(FP 2024/8 (16thFP))

Long-term Debt Ratio

Fixed Interest Rate Ratio

95.1

40.2 %

91.5 %％

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

Average Interest Rate(all / excluding short-term)(Note1)0.56 %/ 0.58 %5.5 years /5.7 years

Acquisition Capacity

Second Green
Bonds

Credit Rating (JCR)(LTV up to 50%)

Approx.

AA（stable）

54.0 bn yen

 Continued stable financial management by achieving both low
funding costs and a long average remaining debt duration
among J-REITs (Note2)
1.0

Average remaining debt duration

2.0

3.0

4.0

5.0

AmountTerm

Interest Rate

2,500
mn yen10
Year（Spread against 10-year JGB：Approx. 43.1bp）

0.900%

Debt Maturity Schedule

Continued Stable Financial Management

0.0
0.30%

 Issued our second Green Bonds on July 25, 2023
 Issued by mass marketing, which is the first time in over a year
regarding 10-year investment corporation bonds
 Gained strong demand, increased amount during marketing Seized the opportunity, successfully procured better condition thansame credit rating issuer（Year）

6.0

Average debt cost (including
borrowing related expenses)

J-REIT Averagedebt cost：0.71%（mn yen）
18,000Long-term borrowings
Investment corporation bonds

Short-term borrowings

15,00012,000
9,000

0.80%

6,000

1.30%
3.50％

J-REIT Averageremaining debt
duration：4.1 year

3,000
02023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 （Year）

Note 1：Average interest rate is calculated with the weighted averaged based on borrowings or the face value of each bondNote 2：Compiled by the Asset Management Company based on disclosed material as of the end of Sept. 2023. Average debt cost is calculated as (interest paid + interest on investment corporation bonds + borrowing
related expenses) / number of days under management × 365 / total interest-bearing debt at the end of FP

15

ESG Initiatives

ESG Initiatives (Topics)
Acquisition of External Certification / Evaluation

Establish New KPIs Based on SBT
Received Certification from SBTi as
Science Based Targets regarding MEL’s
greenhouse gas (“GHG”) emission
reduction targets set in Mar. 2023, as
outlined below(Near-Term Targets)

GHG Reduction Target（Scope1＋2）

42% reduction by FY2030※Based on FY2021

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

5 Stars (the highest rating) for
4 consecutive years

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

Promotion of ESG FinanceGreen Building Certification
 Received green building certification on Aug.31,2023 toward thegoal of 100% of green properties in our portfolio by FY2030
 As of the date of this material, green building ratio is 91.5%

 Procured ESG Finance in Sept. 2023 for the acquisition costs of
MJ Logipark Kakogawa 1
Type

AmountGreen Loans

Total 1,100 mn yen

Sustainability-Linked-Loans

Total 1,500 mn yen

MJ Logipark Kakogawa 1
BELS ★ ★ ★ ★ ★
CASBEE A Rank for New Construction＜Balance of ESG Finance＞
Green Finance

Sustainability-Linked-Loan

22,950
MJ Logipark Osaka 1

MJ Logipark Funabashi 2

BELS★★★★★（ZEB Ready）

BELS★★★★★

CASBEE S Rank

CASBEE S Rank

6,000
16,950

As of 13th FP

33,880(mn yen)

10,50023,380As of
20, FP
2023
As Oct.
of 14th17

Mid-to Long-Term Growth Strategy

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

2nd
Follow-on
Offering

LTV

31.4%

70.8 bn yen

Market Cap

DPU

27.0%

30.0%

Aim for Further
Growth in
Asset Size

216.2 bn yen

142.1 bn yen

83.2 bn yen
27.0%

271.0 bn yen

5thFollow-on 261.6 bn yen
Offering

32.7%

32.4%

36.0%

38.6%

38.0%

5,492

40.3%

40.2%

As of
Aug. 31, 2023
198.3 bn yen

5,524

5,907

6,003

6,619

6,764

7,174

7,353

7,628

7,832

7,963

8,080

(yen)

NAV Per
Unit (yen)(Note)

268,610 269,287 274,642

Stabilized LTV
40%～50%

29.4%

As of
Mar. 1, 201856.9 bn yen

5,292

Asset Size
Target
300 bn yen

3rd
Follow-on 170.4 bn yen
Offering

113.7 bn yen

25.0%

Acquisition of
2 Properties

292,564 297,440

323,072

343,144 350,110

375,616 391,835 393,024

Aim for further inclusion
in major indices

Aim to increase DPU
through disciplined
growthAim to steadily grow NAV
per unit and maximize
unitholder value

FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
2018/8 2019/2 2019/8 2020/2 2020/8 2021/2 2021/8 2022/2 2022/8 2023/2 2023/8 2024/2 2024/8(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)
Note：NAV Per Unit shows after paying Surplus Cash Distributions NAV

19

Logistics Market

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 more than one year after completion (right axis)（％）（thousand m2）

16

4,000
3,500

12

3,000

Vacancy rate

6.8% （+0.9% QoQ）

8

Vacancy rate (More than
one year after completion)

2.0% （+0.3% QoQ）

4

●Due to large supply, vacancy rate rises to 6.8%.

0●Vacancy rate more than one year after
completion remains low (2.0%) due to strong
demand.

2,500
2,000
1,500
1,000
500
0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

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

Osaka Metropolitan Area

2023
2023
Q1
1Q

2023
2023
Q2
2Q

＜2023 Q2＞

2023
2024 （year）
Forecast

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

16

1,600

＜ 2023 Q2 ＞
1,200

12

Vacancy rate

2.2% （-1.0% QoQ）

800

8Vacancy rate (More than one
year after completion)

0.5% （-1.5% QoQ）

400

4

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
Q1
1Q

2023
Q2
2Q

0
2023
2024 （year）
Forecast●Due to strong demand, vacancy rate is 2.2%,
vacancy rate more than one year after
completion is 0.5%, which are quite low.

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.

21

Logistics Market Overview : Supply-Demand Trends by Region
Nagoya Metropolitan Area

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

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

（％）

800

16

600

12

Vacancy rate

5.3% （-0.4% QoQ）

400

8Vacancy rate (More than
one year after completion)

3.9% （+3.9% QoQ）

＜2023 Q2＞

●Vacancy rate in 2022 has dropped from 8.1% to 5.3% in
200

4

0

0

the past six months.
●Vacancy rate more than one year after completion rises

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
Q1
1Q

2023
2023
Q2
2Q

New supply (left axis)

Kyushu Area

2023
2024
（year）
Forecast

New demand (left axis)（thousand m2）

because newly built properties that are struggling withleasing have been more than one year old.

Vacancy rate (right axis)

（％）

400

16

＜2023 Q2＞300

12Vacancy rate

200

8●Due to strong demand, vacancy rate is 0.8%,
which is quite low.

100

4

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
2023
Q1
1Q

2023
2023
Q2
2Q

2023
2024
Forecast

0.8% （-0.7% QoQ）

0

（year）

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.

22

Logistics Facility Tenant Trends
Logistics Tenants’ Expansion Plan Over the Next Three Years
Floor area
倉庫の総面積39%

No. of拠点数
sites

16%

0%
10%+
growth
10%以上拡大

32%

26%

34%

20%

42%

40%

0–10% growth
0–10%拡大

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

60%

Nochange
変わらない

7%

80%

0–10% reduction
0–10%減少

2023（n=50）

1%2%2022（n=62）

2%

100%

Existing and new multi-tenant facilities
available for lease

Rebuilding or expanding of own facilities

11%

Consolidation of sites/facilities
Purchase of existing facilities for own use

Discontinuation/ sale of own facilities
Sale-and-leaseback
Logistics operators (n=182)
物流企業（n=182）
Consignor firms (n=91)
荷主企業（n=91）

Other

4%
4%

0%

Logistics (excluding 3PL)

2017

2018

3PL

2019

E-commerce

2020

Installation/
upgrade of facilities/ systems
新設備やシステムの導入・見直し
Increase in volume
of cold storage items
冷凍冷蔵商品の増加

Increase in volume宅配用の荷物の増加
of home delivery parcels

Other
その他

Manufacturer

80%

100%

Other/N/A

その他・未定Logistics
operators (n=182)
物流企業（n=182）

1.2

38%
37%

21%
19%

1.0
0.8

3%
2%
1%
6%
4%
4%

0%

Consignor
firms (n=89)
荷主企業（n=89）

80%

13%
13%

1.4

70%

45%

1.8
1.6

11%
9%
6%
5%
10%
5%
6%
4%

Enhancing aseismic/
BCP qualities of facilities
耐震性能向上やBCP対策

Decrease in cargovolume handled
荷物量の減少2021

8%Reducing
rental expenses
賃料コストの削減

Discontinuation/取り壊し、売却等
sale of existing sites

Building Completion Year

28%

Expandingregional network
地方拠点の増強60%

6%5%

現在よりも減る

31%

Obsolescence/usability of building/ facilities
建物・設備の老朽化、使いにくさ

20%

40%

60%

80%

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

Increase in Business Inventories

Trend in Facility Area Usage per Tenant by Industry
120,000
90,00060,00030,0000

現在と変わらない

Increasein volume of goods stored
保管量・在庫の積み増し

40%

39%

60%

Business
expansion
事業の拡大

26%

20%

4%

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

22%

5%
4%
5%
1%
2%
2%

54%

Decrease

Relocating sites to拠点の効率的な配置
achieve efficient network

19%
15%
16%
14%
18%
11%
14%

Source: CBRE K.K. "Japan Logistics Occupier Survey 2023" (June 2023)（m2／Tenant）

40%

No Change

現在よりも増える

63%

43%

26%

15%

BTS facilities for lease (exclusive facilities)

Consignment to 3PL

20%

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

Methods for Executing Logistics Network Plans in the Next Three Years(multiple answers allowed)

New development with developer/investor

50%

0%

Increase

10%+ reduction
10%以上減少

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

Purchase of land for development of own facility

42%

Wholesale

2022

Retail Others

All

Average2023 (year) 期間平均
※ Estimate

Source: SUMITOMO MITSUI TRUST RESEARCH INSTITUTE CO., LTD.
Note 1: As of end of May, 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

Business inventories have increased since the Covid-19 pandemic, which will lead to solid demand forlogistics facilities
Finished goods
Work in progressand merchandise

1.8
1.6
1.4
1.2
1.0
0.8

Raw materials and supplies

2020

2020

2020

2020

2021

2021

2021

2021

2022

2022

2022

2022

2023

2023

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Source: Data compiled by the Asset Management Company based on “Financial Statistics of Corporations by Industry, Quarterly” (for thequarter of January to March 2023) by Ministry of Finance
Note 1: Figures are indexed to 1Q 2020 as the base number

23

Increase in Logistics Properties Demand
Trend in Retail E-Commerce Market Size and Number of Deliveries（100 bn yen）

E-Commerce Market Size (Retail) (left axis)
EC市場規模(物販)(左軸）
Numberof Deliveries (right axis) 宅配便取扱個数(右軸)Forecast

3PL Market Size（million）（100 bn yen）

7,500

50

200

6,000

40

150

4,500

30

100

3,000

20

50

1,500

10

0

0
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027（year）
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026

0250

Source: Actual values of E-commerce market size through 2022: “E-commerce Fact Survey” by Ministry of Economy, Trade and Industry,
Japan, Forecast values of E-commerce market size and all data of the numbers of deliveries: Created by SUMITOMO MITSUI TRUSTRESEARCH INSTITUTE CO.,LTD. Based on “Truck Transportation Information” etc. by Ministry of Land, Infrastructure, Transport andTourism, Japan

E-commerce Penetration Rate
（%）

Japan

35

USA

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 （FY）

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

Retail Market Size（100 bn yen）

UK

3PL Sales

160

Department StoreSupermarket

Drugstore

E-commerce

Convenience Store

26.5

28

120
21
14.5
14

7

0

7.2

9.1

80

4.0
2.1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 （year）

Source: Data 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.

402009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (year)

Source: Data compiled by the Asset Management Company based on “Monthly Report on the Current Survey of Commerce Dec 2022”(February 2023), and “FY2022 Global Economy Survey for Formulating an Integrated Domestic Growth Survey (E-Commerce Market
Survey)” by the Ministry of Economy, Trade and Industry (August 2023)

24

Growth in Logistics Demand Triggered by the “2024 Problem”
Growing demand for additional waystations and expansion of current warehouses to address the "2024 Problem" is identified;
while there are large volumes of long-haul transportation between Kanto and Chubu, Chubu and Kinki, Kanto and Tohoku, andKinki and Chugoku, some regions outside the Tokyo Metropolitan area, being devoid of large-scale multi-tenant logistics facilities,
will create increasing needs for such facilities
Initiatives to Address the “2024 Problem” (multiple answers allowed)
Alliance with other transportationcompanies
Increase cooperative delivery /improve loading rate

60 million tons
50 million tons

59%

20 million tons
10 million tons
1 million tons

29%

Less than
1 million tons

24%

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

Hokkaido

30 million tons

29%

Increase / establish transit locations

Million tons

40 million tons

43%

Hire more truck drivers

Tohoku14%

Minimal impact / no initiative

9%

Increase storage volume per location(reduce transport frequency)

9%

Chugoku

0%

10%

Kanto

Kinki
Chubu

2%

Other

(n=163)

Inter-regional Road Freight Haulage

Kyushu

20%

30%

40%

50%

60%

Shikoku

70%

Million tons

Kinki - Chubu

66.9 Chubu - Kyushu

3.3

Kanto - Chubu

59.4 Kinki - Tohoku

2.5

Kanto - Tohoku

36.0 Chubu - Shikoku

2.5

Kinki - Chugoku

28.4 Kanto - Shikoku

1.6

Kanto - Kinki

24.1 Kanto - Hokkaido

1.2

Kyushu - Chugoku 14.8 Kyushu - Shikoku

1.1

Kinki - Kyushu

10.7 Tohoku - Hokkaido

0.6

Kinki - Shikoku

10.2 Tohoku - Shikoku

0.3

Chubu - Tohoku

8.2 Chubu - Hokkaido

0.3

Chubu - Chugoku

7.9 Kyushu - Tohoku

0.2

Chugoku - Shikoku

7.1 Tohoku - Chugoku

0.2

Kanto - Chugoku

4.6 Kinki - Hokkaido

0.1

Kanto - Kyushu

4.0

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

Source: Ministry of Land, Infrastructure and Transport “2021 Regional Freight Distribution Survey”, CBRE K.K. “’The 2024 Problem’ andDemand for Modern Logistics Facilities“(May 2023)
Note: Figures include both departures and arrivals. Regional divisions are based on those established by the Japan Agency for Local Authority
Information Systems

Road Freight Quantity by Region

Large Multi-tenant (LMT) Stock by Region

Kanto=100

Tokyo Metropolitan Area = 100
100
80
60
40
20
0

100
80
60
40
20
0
Hokkaido
Tohoku
北海道
東北

Kanto
関東

Chubu
中部

Kinki
近畿

Chugoku
Shikoku
中国
四国

Kyushu九州

Sapporo
札幌圏
Area

Tokyo
仙台圏 Metropolitan
首都圏
SendaiArea

Source: Ministry of Land, Infrastructure and Transport “2021 Regional Freight Distribution Survey”, CBRE K.K. “’The 2024 Problem’ andDemand for Modern Logistics Facilities“ (May 2023)
Note: Regional divisions are based on those established by the Japan Agency for Local Authority Information Systems

Area

Osaka
Fukuoka
中部圏 Metropolitan
近畿圏
岡山・
福岡圏
Area
NagoyaOkayama/
Area
広島圏
Metropolitan
Hiroshima
Area
Area

Source: CBRE K.K. "'The 2024 Problem' and Demand for Modern Logistics Facilities" (May 2023)

25

Appendix

Financial Results for the Fiscal Period Ended Aug. 2023
FP Ended
Feb. 2023
Actual(13th FP)(A)FP EndedAug. 2023
Actual(14th FP)(B)

7,149

7,510

Operating Rental Revenues

7,149

Operating Rental Expenses(excluding depreciation)
NOI

Operating Results (mn yen)
Operating Revenues

Depreciation
General and Administrative Expense
Operating Income

1

7,783

7,510

+361

7,783

1,204

1,465

+260

1,542

5,945

6,045

+100

6,241

1,246

1,317

+71

1,366

865

927

+62

954

3,833

3,800

-33

3,919

-292

Ordinary Income

3,433

3,507

Net Income

3,432

3,506

2
3

Main Factors of Variance13th FP Actual vs. 14th FP Actual

FP Ended Feb.
2024 Forecast(15th FP)

+361

‐400

Non-operating Profit and Loss

Difference（B）－（A）

+107

-318

+74

3,600

+74

3,599

1

Ratio of SCD to Depreciation
Number of Investment Units Issued andOutstanding (units)

7,628

7,832

+204

7,963

6,817

6,965

+148

7,149

811

867

+56

814

32.8％

33.2%

＋0.4％

30.0％

503,485

503,485±0503,485+383mn yen

・Rent increase from existing properties+23mn yen・Decrease in utilities income-18mn yen・Rent holiday-34mn yen・Increase in other revenue+6mn yen

2・Increase in Operating Revenues (above①)+361mn yen

・Increase in Operating expenses-394mn yen

Property tax for properties acquired in 12th and 13th FP
Decrease in utilities cost

Distributions per Unit (yen)Distributions per Unit
(including SCD)
Distributions per Unit
(excluding SCD)
Surplus Cash Distributions (SCD)
per Unit（Contribution to Net Income）

・Full contribution of revenues fromproperties acquired in 13th FP

3-249mn yen+27mn yen

Increase in repair cost

-30mn yen

Increase in depreciation-71mn yen

Increase in other operating rental expenses-8mn yen

Increase in general and administrative expenses-62mn yen・Decrease in Operating Income (above②)-33mn yen・Change in non-operating profit and loss

+107mn yen

Absence of offering costs+163mn yen

Increase in interest paid
Increase in investment corporation bond issuance costs-36mn yen
-18mn yen

Properties Acquired in 13th FP
Total Acquisition Price 45.4 bn yen

Other Statistics
FFO per Unit (yen)

9,292

9,581

+289

9,863

AFFO per Unit (yen)

9,148

9,032

-116

8,553

LTV

38.6%

38.0%

-0.6%

40.3%

NAV per Unit (yen)391,835

393,024+1,189‐Average Occupancy

100.0％

100.0%±0%

100.0％LOGiSTA･Logicross Ibaraki Saito(A) (45% co-ownership interest)

MJ Logipark Takatsuki 1

27

Forecasts for the Fiscal Periods Ending Feb. 2024 and Aug. 2024
FP Ended
Feb. 2023
Actual(14th FP)(A)FP EndingAug. 2023
Forecast(15th FP)(B)

7,510

7,783

Operating Rental Revenues

7,510

Operating Rental Expenses(excluding depreciation)
NOI

Operating Results (mn yen)
Operating Revenues

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

Difference（B）－（A）

1(Reference)
FP Ending Feb.
2024 Forecast(16th FP)

+272

7,872

7,783

+272

7,872

1,465

1,542

+77

1,509

6,045

6,241

+195

6,363

1,317

1,366

+49

1,390

927

954

3,800

3,919

-292

-318

Ordinary Income

3,507

3,600

Net Income

3,506

3,599

+27

2

+119

Distributions per Unit
(excluding SCD)

1+219mn yen

・Increase in operating revenues mainly due torent growth in existing properties+53mn yen・Increase in Operating Revenues (above①)+272mn yen

・Increase in Operating Expenses-153mn yen

Increase in operating expenses for properties acquired in15th FP
Increase in leasing fee

3,989-40mn yen
-12mn yen-336

-43mn yen

Increase in utilities cost

-18mn yen

+92

3,652

Increase in depreciation for existing properties-15mn yen

+92

3,651

Increase in general and administrative
expenses other than above-23mn yen

7,832

7,963

+131

8,080

6,965

7,149

+184

7,252

Surplus Cash Distributions (SCD)
per Unit

867

814

-53

828

Ratio of SCD to Depreciation

33.2%

30.0％

-3.2％

30.0％

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

503,485±0503,485

Other Statistics
FFO per Unit (yen)

9,581

9,863

+282

10,015

AFFO per Unit (yen)

9,032

8,553

-479

9,644

LTV

38.0%

40.3%

2.3%

40.2％

100.0%

100.0%±0％

100.0%

Average Occupancy

2・Increase in revenues fromproperties acquired in 15th FP

983

Distributions Per Unit (yen)Distributions per Unit (including SCD)（Contribution to Net Income）

1

Increase in repair cost

-26

3

Main Factors of Variance14th FP Actual vs. 15th FP Forecast

3・Increase in operating income(above②)+119mn yen

・Change of non-operating profit and loss

-26mn yen

1

Increase in interest paid from new borrowings and bonds-43mn yen

Absence of investment corporation bond issuance cost

+18mn yen

Main Factors of Variance15th FP Forecast vs. 16th FP Forecast（Contribution to Net Income）

・Increase in operating revenues mainly due toproperties acquired in 15th FP and rent growthof existing properties
・Increase in operating expenses mainly due toincrease in property tax for properties acquiredin 15th FP＋89mn yen
-19mn yen28

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

100.0%

4.7%

Forecasted LTV(16th FP)

40.2%

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
Growth（JCR）AA(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 September. 29, 2023

29

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

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)
 Supported the recommendation by the TCFD and Established KPI and Targets, formulated Transition Plan
(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)30

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

Period31

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 Kakogawa 1• Obtained land and developer information from a close broker• Examined 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• Support for selection of Property Management and Building
Management• Support for periodic reportings regarding operational
management

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

Development
SupportLeasing

Operation
Management

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

Operation
Management

Land
Acquisition

MJ Logipark Inzai 1

Sourcing
Leasing

Planning

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
Functions offered by MJIA(Note)
Sourcing

Planning

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

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

32

Strategy for Achieving Hybrid Internal GrowthSponsorUtilize Accumulated Know-How and Relations with Customers of MEC Group

MJIA

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

Corporate
Customer
Relation

Example of tenant leasing by MEC

Logistics Companies
Leasing services
Agreement

Cargo Owner

Logicross Fukuoka Hisayama

Aggregate total Approx.＋4 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

33

Portfolio Summary

Logistics facility /Others（Based on acquisition price）

Property Age（Based on acquisition price）

Area Diversification（Based on acquisition price）

Tenant Diversification(Based on leased area excluding Land)
Ratio of Top
10 Tenants

6.1%

5.2%
4.7%

7.9%

23.6%

4.6%

10.4%

Avg.
7.5 years

46.8%

38.2%

52.6%
61.8%

29.2%

29.6%

3.9%
3.9%
91
3.5%
Companies 3.2%
3.2%
3.0%
3.0%

93.9%

Logistics
facility
Others～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 Aug. 31 including properties acquired in 15 FP

34

Portfolio Overview
Sponsor-Developed Properties

MJIA-Sourced Properties

Logicross Fukuoka Hisayama

Logicross Atsugi

Logicross Kobe Sanda

MJ Logipark Kakogawa 1

MJ Industrial Park Koriyama（Land）

MJ Logipark Funabashi 1

Logicross Osaka

Logicross Nagoya Kasadera

Logicross Narashino

MJ Logipark Atsugi 1

MJ Logipark Kazo 1

MJ Logipark Osaka 1

Logicross AtsugiⅡ

LOGIPORT Sagamihara(49% co-ownership interest)

LOGIPORT Hashimoto(45% co-ownership interest)

MJ Logipark Fukuoka 1

MJ Logipark Tsuchiura 1

MJ Logipark Nishinomiya 1

LOGIPORT Osaka Taisho(37.5% co-ownership interest)

LOGIPORT Kawasaki Bay(45% co-ownership interest)

Logicross Yokohama Kohoku

MJ Logipark Kasugai 1

MJ Logipark Kazo 2

MJ Logipark Sendai 1

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

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

MJ Logipark Funabashi 2

MJ Logipark Inzai 1

MJ Logipark Takatsuki 1

MJ Industrial Park Chiba-Kita (Land)

MJ Industrial Park Kawanishi (Land)

MJ Logipark Higashi Osaka 1

MJ Industrial Park Sakai(Land)

MJ Industrial Park Kobe (Land)

Properties Acquired in 15th FP

35

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 name36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*

Others45

Logicross Fukuoka Hisayama

46

MJ Logipark Fukuoka 1

47

MJ Logipark Sendai 1

48

MJ Industrial Park Koriyama（Land）*Tentative name37

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

Coordination among stakeholders
Utilizing Group-wide Network and the administration

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

Logicross Nagoya Kasadera

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 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
30
20
10
0

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

26.3
End of
Mar.
2019

56.9

End of
Mar.
2020

92.2

End ofMar.
2021

109.8 115.6

End of
Mar.
2022

End ofMar.
2023(10,000m2)

150.6

End ofSept.
2023

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

Utilizing Customer Relations

Consolidation of plots of land frommultiple landowners

Logicross Hasuda

Operation & Management

200
150
100
50
0



Solutions for Warehouse Operation
Using AI-based Analytics

Introduction of AI robot cleaner

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

38

KPI Progress in TCFD
Progress toward Goal Achievements by FY2030
KPI’s track record

KPIs / Targets-15.3%

GHG emission intensity

30% reduction

6.5%

FY 2017

FY 2018

FY 2019-21.3%FY 2020

Initiatives to reduce environmental burden(Examples)-34.7%-35.2%FY 2021

FY 2022(Base year)

Target-42.0%-8.4%

42% reduction

15% reduction

9.5%

FY 2017

FY 2018

FY 2019-9.7%

FY 2020-23.3%FY 2021-24.4%FY 2022

FY 2018-9.8%

Target -15.0%

FY 2030

FY 2019

Target 0.0%
-18.9%FY 2020-27.6%FY 2021-31.4%FY 2022(Base year)

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

FY 2030

Water saving with tenantsInstallation of smart watering systems(Target year)

Waste recycling
FY 2017

Promotion of appropriate temperature settingin air conditioner(Target year)

11.9%(Base year)

Renewal of air-conditioning equipment(Target year)-6.8%(Base year)

FY 2017

Installation of LED lighting and motion sensor

Installation of self consumption solar panels

FY2030(Base year)

73.3%

70%

FY2022

FY2021

Water consumption
intensity

Not increase

FY 2030(Target year)

GHG emission(Scope 1+2)

Energy consumption
intensity

Target -30%

FY 2018

66.6%

FY 2019

63.4%

62.3%

70.2%

FY 2020

FY 2021

FY 2022

Target 70.0%

FY 2030

Promotion of Recycling
Implementation of trash sorting procedures(Target year)

39

ESG Initiatives（1）Environment

SocialCoexistence with Local Communities

Ratio of Green Properties
 Promote acquisition of green building certification toward the goalof 100% of green properties in our portfolio by FY2030

88.8%

As of Feb. 2023

 Cleanup and flower bed maintenancevolunteer activity (Logicross Atsugi)

 Ecosystem conservation projectin the moat of the Imperial Palace

91.5%

As of Oct.20, 2023

Contributions to the Environment through Our Portfolio

Tenant Satisfaction Survey<Example>
Renovations of the lounge（MJ Logopark Fukuoka1）

 Conducting periodic tenantsatisfaction surveys to improvetenant satisfaction. In response to
the results, AED installation andlounge renovations, etc., were
implemented.

BCP Initiatives
Installation of solar panels

Installation of sandwich
panels for exterior walls

 Register for Disaster Cooperation
Building and Designation as a
Tsunami Evacuation Facility
LOGIPORT Hashimoto Seismic isolators(LOGIPORT Sagamihara)

LOGIPORT Osaka Taisho

Logicross Nagoya Kasadera

Installation of LED
lightings withmotion detected sensor

Public green space40

ESG Initiatives（2）SocialGovernance
Board Member of MEL

Initiatives for Employees of MJIA

 Aiming to further improve governance, added a supervisory director
in May 2023.
 Member: four people（one Executive Director, three Supervisory Director）

Implementing various initiatives in order to maximize asset management
performance by improving productivity, skills and motivation of employees Comfortable Working Environment•

 Conducted “Workcation”

Ken Takanashi

Executive Director (Executive Director of MJIA)

So Saito

Supervisory Director (Lawyer)

Akira Fukano

Supervisory Director (Certified Public Accountant)

Yanaka Naoko

Supervisory Director (Lawyer)

Male to Female Ratio(Male 3, Female 1)•

Board of Directors
meeting attendance
rate in 2022
100%（16/16）

Investment by MEC••

In Asset management Company,
subsidy system for Workcation has
been introduced to improve teamwork
Through activities such as group workand curling, promote employee
communication

 Introduction of flexible working hours
 Invitation of personnel from group companies and outside professionals
 Specialized training for capacity building of employees Annual employee satisfaction survey

 Continuous Commitment by sponsor

Numbers of Unit／
Ratio

20,550 Units／ Approx. 4.1％

Measures to Address Conflict of Interests in MJIA Any asset acquisition from or sale to an interested person of MEL should bedetermined through a transparent decision-making process at MJIA

Asset Management Fee Structure Introduced an asset management fee structure reflecting theperformance of investment unit price for the purpose of aligninginterest with unitholders

41

Major Initiatives and External Certification

GRESB Real Estate
GRESB Rating: 5 Stars(the highest rating)for 4 consecutive years

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

Eco action 21

Obtaining SBTi
Certification(Near-Term Targets)

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

Participation in
JCI

Participation
in UNGC

Participate in as a member of
Mitsubishi Estate Group.

42

Portfolio
Property Name

Location

AcquisitionPrice(mn yen)AppraisalValue(mn yen)Sponsor-Developed Properties

Appraisal
NOI
Yield
(%)
6.0
4.5
5.1
4.3
5.0
4.2
4.4
4.1

Total Leasable
Area (㎡)

Ratio toPortfolio(%)

Occupancy
Rate(%)

Building
Age(years)34,878.55
29,895.80
12,844.35
35,616.58
62,289.08
39,132.05
34,580.85
16,371.24

2.1
3.1
1.4
3.6
5.3
4.4
3.6
2.9

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

8.9
6.5
6.2
4.9
4.6
5.4
4.1
4.2

Multi
Multi
BTS
Multi
Multi
Multi
Multi
Multi

PropertyType

MJIA-Sourced Properties

Kasuya, Fukuoka
Atsugi, Kanagawa
Kobe, Hyogo
Osaka, Osaka
Nagoya, Aichi
Narashino, Chiba
Atsugi, Kanagawa
Yokohama, Kanagawa

5,770
8,440
3,900
9,743
14,424
11,851
9,838
7,821

7,880
9,550
4,450
10,30017,80012,60010,8008,160

LOGIPORT Sagamihara (49%)

Sagamihara, Kanagawa

21,36424,5004.7

88,609.64

7.9

99.7

10.0

Multi

LOGIPORT Hashimoto (45%)
LOGIPORT Osaka Taisho (37.5%)
LOGIPORT Kawasaki Bay (45%)
LOGiSTA･Logicross Ibaraki Saito (A) (45%)
LOGiSTA･Logicross Ibaraki Saito (B) (45%)

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
Sakai, Osaka
Kobe, Hyogo
Chiba, Chiba
Kawanishi, Hyogo

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
5,600
4,970
1,800
2,125
261,659

21,735
12,225
41,625
15,700
4,030
7,060
7,750
1,620
8,140
7,380
3,650
2,740
15,200
1,780
7,670
5,160
6,540
2,050
6,550
5,780
5,720
1,980
2,630
300,755

4.6
4.6
4.2
4.2
4.3
7.3
5.0
5.7
5.8
5.7
5.3
5.6
4.8
5.0
4.9
5.0
4.8
5.3
5.3
3.8
5.1
4.4
4.4
4.7

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
87,476.71
31,743.99
14,986.64
9,353.48
1,110,106.41

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
2.1
1.8
0.7
0.8
96.5

100.0
100.0
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

8.6
5.5
4.3
2.3
2.3
33.7
10.1
17.4
15.9
15.9
8.8
32.4
6.6
24.7
14.4
2.1
2.3
32.3
1.5
7.7

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

Kakogawa, Hyogo
Koriyama, Fukushima

7,423
2,000
9,423
271,082

7,750
2,340
10,090310,845

4.6
5.0
4.7
4.7

32,258.13
80,925.09
113,183.22
1,223,289.63

2.7
0.7
3.5
100.0

100.0
100.0
100.0
100.0

1.1
1.1
7.5

Multi
Land
-

Logicross Fukuoka Hisayama
Logicross Atsugi
Logicross Kobe Sanda
Logicross Osaka
Logicross Nagoya Kasadera
Logicross Narashino
Logicross Atsugi II
Logicross Yokohama Kohoku

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 Industrial Park Sakai (Land)
MJ Industrial Park Kobe (Land)
MJ Industrial Park Chiba-Kita (Land)
MJ Industrial Park Kawanishi (Land)
Sub total / Average
MJ Logipark Kakogawa 1
MJ Industrial Park Koriyama (Land)
Sub total / Average
Total / Average

Properties Acquired in 15th FP
Note : As of Aug. 31, 2023. However as of July 1, 2023 for Appraisal Value of properties acquired in the 15th FP.

43

Summary of Latest Appraisals (1)（mn yen)

Property Name

Acquisition Date
(Note 1)

Acquisition PriceBook Valueat end of
14th FP

14th FP (Ended Aug.31,2023) (Note 2)

13th FP (Ended Feb. 28,2023) (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

5,338

7,880

4.3

7,910

4.3

-30

±0

2,541

Logicross Atsugi

Sept. 2018

8,440

8,214

9,550

3.9

9,470

4.0

+80

-0.1

1,335

Logicross Kobe Sanda

Sept. 2018

3,900

3,795

4,450

4.3

4,420

4.4

+30

-0.1

654

Logicross Osaka

Sept.2020

9,743

9,601

10,3004.0

10,300

4.0

±0

±0

698

Logicross Nagoya Kasadera

Sept.2020

14,424

14,25917,8004.0

17,800

4.0

±0

±0

3,540

Logicross Narashino

Mar. 2021

11,851

11,766

12,6003.9

12,400

4.0

+200

-0.1

833

Logicross Atsugi II

Mar. 2022

9,838

9,858

10,8003.9

10,600

4.0

+200

-0.1

941

Logicross Yokohama Kohoku

Oct. 2022

7,821

7,876

8,160

3.8

8,130

3.8

+30

±0

283

LOGIPORT Sagamihara (49%)

Sept. 2017

21,364

20,33824,5004.0

24,500

3.9

±0

+0.1

4,161

LOGIPORT Hashimoto (45%)

Sept. 201718,20017,385

21,735

3.8

21,780

3.8

-45

±0

4,349

LOGIPORT Osaka Taisho (37.5%)

Oct. 201910,484

10,28012,225

3.8

12,225

3.9

±0

-0.1

1,944

LOGIPORT Kawasaki Bay (45%)

Mar. 2022

36,00035,837

41,625

3.6

40,995

3.7

+630

-0.1

5,787

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

Oct. 2022

15,15015,21815,7004.0

15,700

4.0

±0

±0

481

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

Oct. 2022

3,900

3,924

4,030

4.1

3,990

4.1

+40

±0

105

MJ Logipark Funabashi 1

Sept. 2016

5,400

5,268

7,060

5.2

7,060

5.2

±0

±0

1,791

MJ Logipark Atsugi 1

Sept. 2017

6,653

6,344

7,750

4.0

7,590

4.1

+160

-0.1

1,405

MJ Logipark Kazo 1

Sept. 2017

1,272

1,204

1,620

4.3

1,620

4.3

±0

±0

415

MJ Logipark Osaka 1

Sept. 2017

6,090

5,861

8,140

4.1

8,160

4.1

-20

±0

2,278

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 Aug. 31, 2023.
Note 3: As of Feb. 31, 2023.

44

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

Property Name

Acquisition PriceBook Valueat end of
14th FP

14th FP (Ended Aug.31,2023) (Note 2)

13th FP (Ended Feb. 28,2023) (Note 3)

Appraisal
value

Appraisalvalue

Direct cap
rate (%)

Direct cap rate(%)

Difference
Appraisalvalue

Direct cap rate(%)

Un realizedgain

MJ Logipark Fukuoka 1

Sept. 2017

6,130

5,672

7,380

4.4

7,260

4.5

+120

-0.1

1,707

MJ Logipark Tsuchiura 1

Sept. 2019

3,133

3,069

3,650

4.5

3,650

4.5

±0

±0

580

MJ Logipark Nishinomiya 1

Oct. 2019

2,483

2,539

2,740

4.6

2,720

4.7

+20

-0.1

200

MJ Logipark Kasugai 1

Oct. 201913,67013,32915,2004.2

15,200

4.2

±0

±0

1,870

MJ Logipark Kazo 2

Sept.2020

1,637

1,668

1,780

4.2

1,740

4.3

+40

-0.1

111

MJ Logipark Sendai 1

Sept.2020

7,388

7,185

7,670

4.5

7,670

4.7

±0

-0.2

484

MJ Logipark Inzai 1

Oct. 2022

4,353

4,361

5,160

4.1

5,190

4.1

-30

±0

798

MJ Logipark Takatsuki 1

Oct. 2022

5,500

5,527

6,540

3.9

6,530

3.9

+10

±0

1,012

MJ Logipark Higashi Osaka 1Oct. 2022

1,687

1,749

2,050

4.2

2,050

4.2

±0

±0

300

MJ Logipark Funabashi 2

Dec. 2022

4,880

4,908

6,550

3.8

6,570

3.8

-20

±0

1,641

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

1,980

4.3

1,990

4.3

-10

±0

65

MJ Industrial Park Kawanishi (Land)

Oct. 2022

2,125

2,221

2,630

3.9

2,630

3.9

±0

±0

408

261,659

257,393

300,755‐

299,350---

43,361

Subtotal

MJ Logipark Kakogawa 1

Sept. 2023

7,423

-

7,750

4.3

-

-

-

-

-

MJ Industrial Park Koriyam (Land)

Sept. 2023

2,000

-

2,340

4.5

-

-

-

-

-

Subtotal

9,423-

10,090

-

-

-

-

-

-

Total

271,082-

310,845

-

-

-

-

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 Aug. 31, 2023. However as of July 1, 2023 for properties acquired in the 15th FP.
Note 3: As of Feb. 28, 2023

45

Financial Data
Lender Formation
No. of Lenders

26
New Lender：Nippon Life Insurance Company

Balance（mn yen）
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Norinchukin Bank
Shinkin Central Bank

14.6%

15,87514.0%

11,260

10.0%

8,750

7.7%

6,406

5.7%

The Resona Bank, Ltd.

6,000

5.3%

5,607

5.0%

4,750

4.2%

SBI Shinsei Bank, Limited
The Shinkumi Federation Bank

4,750

4.2%

Investment Corporation Bonds

4,500

4.0%

The Yamaguchi Bank, Ltd.
Daiwa Next Bank, Ltd.
The Yamagata Bank, Ltd.
Development Bank of Japan Inc.
The 77 Bank, Ltd.

113,049 mn yen

16,460

The Bank of Fukuoka, Ltd.

The Chiba Bank, Ltd.

Total Debt Balance

Ratio

4,000

3.5%

3,300

2.9%

3,300

2.9%

3,000

2.7%

2,491

2.2%

The Yamanashi Chuo Bank, Ltd.

1,900

1.7%

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

NEW

Sumitomo Mitsui Trust Bank, Limited
The Keiyo Bank, Ltd.
The Chugoku Bank, Ltd.
The Bank of Toyama, Ltd.
Total

1,000

0.9%

1,000

0.9%

500

0.4%

500

0.4%

500

0.4%

300

0.3%

113,049100%

Note: As of Sept. 29, 2023

46

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)

(Unit：Thousands of yen)

Item

Actual7,510,976
7,131,181
379,793
3,710,612
2,782,852
694,940

Asset custody fee

2,170Administrative service fee

22,675

Director’s compensations

3,200

Other operating expenses

204,772

Operating income

Balance Sheet

3,800,364

Non-operating income

366Interest income

66

Reversal of distributions payable299

Non-operating expenses

293,006

Interest expenses

259,356

Interest expenses on investment corporation bonds

9,380

Borrowing related expenses

6,242

Investment corporation bond issuance expenses

18,025

Ordinary income

3,507,724

Net income

3,506,820

Unappropriated retained earnings

3,507,112

Current assets

Actual
13,867,331

Cash and deposits

4,493,995

Cash and deposits in trust

9,263,118

Other current assets
Total fixed assets
Property and equipment
Intangible assets
Investments and other assets
Total assets

Current liabilities
Operating accounts payable
Long-term loans payable due within one year

110,217
257,490,292
257,393,814
391
96,086271,357,624

7,979,100
415,959
4,780,000

Accrued expenses

970,677

Accrued consumption tax, etc.

473,644

Advances received
Other current liabilities
Non-current liabilities

1,323,550
15,269103,509,246

Investment Corporation Bonds

4,500,000

Long-term loans payable

93,904,000

Tenant leasehold and security deposits in trust

5,105,246

Total liabilities

111,488,347

Total unitholders’ equity

159,869,277

Unitholders’ capital, net

156,362,164

Surplus3,507,112

Total net assets

159,869,277

Total liabilities and net assets

271,357,624

47

Unitholders Composition
Major Unitholders（Note2)

Breakdown by Units (Note 1)

Number of
Units

Ratio
(%)

Custody Bank of Japan, Ltd. (Trust Account)

106,929

21.23

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

99,186

19.69

2.6%

7.7%
19.0%

503,485
units

6.3%

64.1%

Domestic individuals
and others：39,115 units

Financial institutions：323,039 units

Domestic entities：32,078 units

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

27,263

5.41

Foreign entities：95,741 units

Mitsubishi Estate Co., Ltd.

20,550

4.08

Securities Companies：13,512 units

STATE STREET BANK WEST CLIENT – TREATY 505234

8,729

1.73

JP MORGAN CHASE BANK 385781

7,016

1.39

SSBTC CLIENT OMNIBUS ACCOUNT

6,685

1.32

STATE STREET BANK AND TRUST COMPANY 505103

6,565

1.30

The Shinkumi Federation Bank

6,520

1.29

SMBC Nikko Securities Inc.

4,832

0.95

294,275

58.44

Breakdown by Unitholders (Note 1)
1.6%

2.4%

1.9%

0.1%

10,820unitholders

93.7%

Domestic individuals
and others：10,142 unitholders

Financial institutions：178 unitholders

Domestic entities：270 unitholders

Foreign entities：211 unitholders

Securities Companies：19 unitholders

Total

Investment by MEC
Investment in
MEL by MEC

c. 4.1%

Note1: As of Aug. 31, 2023. The ratio is rounded down to the first decimal place.
Note2: As of Aug. 31, 2023. The ratio is rounded down to the second decimal place.

48

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