SEMIANNUAL REPORTFiscal Period Ended February 28, 2023

To Our Unitholders
Overview
Distributions Per Unit
(FP Ended Feb. 2023 Actual)

7,628 yen

Operating Revenues(FP Ended Feb. 2023 Actual)(As of Mar. 15, 2023)

Asset Size

(As of Feb. 28, 2023)

0.50 %

261.6 bn yen

Net Income

Credit Rating (JCR)

Average Occupancy

7,832 yen

3,432 mn yen

AA (Stable)

100.0%

Distributions Per Unit

Loan-to-Value Ratio

No. of Properties

38.2 %

32 properties

Distributions Per Unit

(FP Ending Aug. 2023 Forecast)(FP Ending Feb. 2024 Forecast)

7,835 yen

7,149 mn yen

Average Interest Rate

(FP Ended Feb. 2023 Actual)(FP Ending Aug. 2023 Forecast)

We would like to express heartfelt appreciation to all
our unitholders for continued support of MEL.
We are pleased to present our Semiannual Report for13th fiscal period ended February 28, 2023
successfully and would like to express our sincere
gratitude for supports of our unitholders andstakeholders.

(As of Feb. 28, 2023)

During the fiscal period ended February 28, 2023, we
successfully acquired 8 properties (total acquisition
price: 45.4 billion yen) through global offering in
October 2022. As a result, the asset size has expanded
to 32 properties, 261.6 billion yen and achieved
strong DPU growth.

(As of Feb. 28, 2023)

Basic Policy
MEL mainly invests in logistics facilities for the ultimate purpose of maximizing unitholder value through management
utilizing the comprehensive strengths of the MEC Group and also in order to contribute to the realization of an affluent
society through development of logistics functions that support the lives of people.

Ken Takanashi

Growth Strategy

1. Building a Long-term Stable Portfolio in order to Maximize Unitholder Value
2. HYBRID External Growth Utilizing the Strength of Both MEC and The Asset Management Company (MJIA)
3. HYBRID Internal Growth Supporting Stable Growth of MEL
4. Long-term Stable Financial Management with Emphasis on Soundness
5. Development of a Solid Governance Structure Focusing on Improving Unitholder Value
Hybrid Model

Executive Director of Mitsubishi Estate
Logistics REIT Investment Corporation
Executive Officer, General Manager of
Logistics REIT Management Department,
Mitsubishi Jisho Investment Advisors, Inc.

In terms of internal growth, the occupancy rate at theend of the fiscal period was 100.0%, maintaining highoccupancy rate, MEL also achieved rent growth for11th consecutive periods due to steady operation by
MJIA and under the strong market conditions driven
by accelerating growth of EC market, etc.

As a result, DPU is 7,628 yen (up 275 yen from the previous period), MEL achieved DPU growth for ninth consecutive period.
MEL announced its management policy based on the “Three Pillars” in April 2019, as a management plan designed tomaximize unitholder value in the medium-to-long term. The management policy is intended to gather the entire MEC Groupto work together in order to improve unitholder value of MEL, focusing on the following three pillars: Alignment (aligninterest with unitholders), Discipline (disciplined growth) and Hybrid (enhance MEL’s unique strategy, the hybrid model). We
will continue to endeavor maximizing our unitholder value by growing through dialogues with our unitholders following ourmanagement policy, “Three Pillars.”
We sincerely appreciate your continued support to MEL and MEC Group and look forward to reporting our further progressin the months and years ahead.

Development / Facilities Management

Investment / Asset Management

SponsorAsset Management Company

Contents
To Our Unitholders… ……………………………………………………………… 1
Operating Highlights… …………………………………………………………… 2

Portfolio………………………………………………………………………………… 8
Unitholder Information…………………………………………………………… 9

HYBRID External Growth… ……………………………………………………… 4
HYBRID Internal Growth… ……………………………………………………… 6

Financial Section… ………………………………………………………………… 10
Other Information…… ……………………………………………………………… 42

ESG Initiatives………………………………………………………………………… 7

MJ Logipark Inzai 1

Mitsubishi Estate Logistics REIT Investment Corporation

1

Operating Highlights
POINT

1

Balance Sheet (summary)

Property and Equipment

Increased by 44.9 billion yen from theprevious fiscal period, mainly due to theacquisition of 8 properties during 13th
fiscal period.

(Millions of yen)Item

Of which, cash and deposits(including cash and deposits in trust)
Fixed assets
Of which, property and equipment

Logicross
Yokohama Kohoku

Total assets(Millions of yen)

FP Ended Feb.
2023

AssetsCurrent assets

POINT

Statement of Income (summary)

Item

FP Ended Feb.
2023

Operating revenues

7,149

14,524

Operating expenses

3,316

12,990Operating income

3,833

Ordinary income

3,433

Net income

3,432

258,539
258,429

Current liabilities

(yen)

POINT

2

Interest-bearing Debt

Balance of the interest-bearing debt
and LTV at the end of the fiscal period
ended Feb. 28, 2023 rose to 105,374
million yen and 38.6% respectively, due
to the borrowings procured to acquire
8 properties during 13th fiscal period.
POINT

3

Unitholders’ Capital, Net

Increased by 20.1 billion yen from theprevious fiscal period, due to the public
offering for funding the assets acquired
during 13th fiscal period.

2

13,402

Of which, Short-term loans payable

4,430

Of which, long-term loans payable due
within one year

6,540

Non-current liabilities

99,457

Of which, investment corporation bonds

2,000

Of which, long-term loans payable

92,404

Total liabilities

112,860

Unitholders' capital, net

156,770

Surplus3,432

Total net assets

160,203

Total liabilities and net assets

273,063

Distributions per unit (including SCD)

7,628

Distributions per unit (excluding SCD)

6,817

Surplus cash distributions (SCD) per unit

811

Increased by 873 million yen from theprevious fiscal period due to thecontribution of rental revenues fromthe 8 properties acquired during 13th
fiscal period and rent growth fromexisting properties.

5

Distributions

Liabilities and net assets

Operating Revenues

POINT

273,063

LOGiSTA·Logicross Ibaraki Saito (B)4Operating Expenses

Increased by 369 million yen from theprevious fiscal period due to an increasein depreciation and facility management
fee for 8 properties acquired during
13th fiscal period, and an increase in
expenses for existing properties due toutilities costs and leasing fee, etc.

POINT

6

Net Income

Increased by 452 million yen from theprevious fiscal period due to theincrease in operating revenues as
described in POINT 4, although nonoperating expenses increased due toincreasing in Interest expense throughthe execution of borrowings to fund theassets acquired during 13th fiscal period
as described in POINT 2.

Mitsubishi Estate Logistics REIT Investment Corporation

3

HYBRID External Growth■ Capability to develop logistics facilities independently based on
extensive land information■ Capability to co-develop facilities backed by MEC’s ability andcredibility for development

Sponsor-developed properties with expected
preferential negotiation right

Logicross

MJ Logipark

Brand of logistics facilities that MEC
develops throughout Japan

Properties which MEL acquired orintends to acquire from 3rd parties

Mitsubishi Estate
Occupancy
100%■ Capability to assess properties backed by experience in continuously
acquiring properties from 2001
■ Flexible and diversified property acquisition strategy by leveraging
PDP and CRE proposals, etc.

MJIA-sourced properties with expected preferential
negotiation rightBridge Fund / 3rd Party Bridge

Occupancy
100%

Occupancy
100%

PDP

PDP

PDP

Occupancy
100%

Occupancy
100%

Occupancy
100%

Logicross Hasuda

Logicross Kasukabe

Logicross Funabashi

MJ Logipark Aisai 1*

MJ Logipark Kakogawa 1*

MJ Logipark Daito 1*(79,000 m2) Completed in 2021

(39,000 m2) Completed in 2021

(23,000 m2) Completed in 2021

(10,000 m2) Completed in 2022

(33,000 m2) Completed in 2022

(11,000 m2) Completed in 2022

Occupancy
100%

New

PDP

New

PDP

Occupancy
100%

Pre-leased
100%

Logicross Zama Komatsubara

Logicross Osaka Katano

Logicross Zama

MJ Logipark Ichinomiya 1*

MJ Logipark Okazaki 1*(44,000 m2) Completed in 2022

(20,000 m2) Completed in 2022

(178,000 m2) To be completed in 2023

(26,000 m2) Completed in 2022

(24,000 m2) To be completed in 2023

PDP (Partnership Development Program)● Development bridge scheme in which MJIA takes the initiative● MJIA leads the project in a manner that compensates the needs of partner companies such as developers, construction

Logicross Sagamihara

Logicross Misato*(170,000 m2) To be completed in 2023

(53,000 m2) To be completed in 2025

Osaka Suminoe Shibatani
Cold Storage Project*(42,000 m2) To be completed in 2025

14 properties* Tentative nameNote: As of Apr. 17, 2023

4

companies and real estate brokers each other● MEL can preferentially consider acquisition after the building is completed and leased up

Other multiple

759,000 m

2

projects
Mitsubishi Estate Logistics REIT Investment Corporation

5

HYBRID Internal Growth▶

ESG Initiatives

Portfolio Summary▶

(As of Feb. 28, 2023)▶

Average occupancy since IPO

Fixed-term lease

Weighted average leaseremaining expiry

99% or more

100%

6.3 years

Topics of 13th FP
Initiative for climate change
MEL has formulated roadmap for reducing GHG (Greenhouse gas) emissions
with a goal of "achieving net zero GHG emissions for the entire value chain
by FY2050", as well as established new goal for GHG emission reductions.
MEL will steady implement each measure to achieve this goal.

Rent Revision Track Record

New goal(m2)

Rent unchanged

120,000

Upward rent revision

Undecided

Blue letter: Average rent growth+8.1%

Scope 1+2

Scope ofcoverage

Base year

Target year

GHG emission
reduction targets

All properties

FY 2021

FY 2030

42% reduction

90,000+0.2%

60,000

+6.5%
+3.1%

30,000+1.8%
0Aug. 31,2018(4th FP)

Feb. 28,2019(5th FP)

Aug. 31,2019(6th FP)

+2.2%

+9.5%

Feb. 29,2020(7th FP)

Aug. 31,2020(8th FP)+8.7%

Feb. 28,2021(9th FP)+5.3%

Scope1 accounts for GHG emission that occur from owned properties.
Scope2 accounts for GHG emissions that generated by purchased electricity consumed by the properties.

+5.0%+13.9%

Certification and Registration of
Eco Action 21
MEL has received
certification andregistration of Eco
Action 21 in March
2023. Eco Action 21 is athird-party certification
and registration program forbusinesses that appropriately
implement environmental initiatives;
establish, operate, and maintain aframework for environmental
management and conduct
environmental communication, basedon the Eco Action 21 Guidelines
established by the Ministry of theEnvironment of Japan.

Initiatives
Aug. 31,2021(10th FP)

Feb. 28,2022(11th FP)

Aug. 31,2022(12th FP)

Feb. 28,2023(13th FP)

Aug. 31,2023(14th FP)

Contributions to Local Communities
Participation in flower bed
maintenance activities ofcommunity near Logicross Atsugi

Promotion of Green Portfolio

Register for Disaster Cooperation Building(LOGIPORT Hashimoto, LOGIPORT Osaka Taisho,
LOGIPORT Sagamihara, Logicross Nagoya Kasadera)

Energy Saving Initiatives

Financial Strategy▶

F inancial Highlights(As of Mar. 15, 2023)

6

LOGIPORT Hashimoto

Long-term Debt Ratio

Fixed Interest Ratio

Average Remaining
Debt Duration

97.2%

93.9%

5.5 years

Average Interest Rate

Credit Rating (JCR)

Forecasted LTV (FP 2023/8)

0.50%

AA (Stable)

38.2%

Cleanup activities aroundour office

LOGIPORT Osaka Taisho

Renovation of cafeteria(LOGIPORT Sagamihara)

Installing insulated sandwich panels

Deploying motion sensors

Use of Renewable Energy

Installation of self- consumption ofIntroducing RE100
solar power (LOGIPORT Kawasaki Bay) (MJ Logipark Sendai 1)
Mitsubishi Estate Logistics REIT Investment Corporation

7

Portfolio (As of February 28, 2023)▶

Portfolio Summary
No. of Properties▶

Total Acquisition Price

32 properties▶

Unitholder Information

Average Property Age

261.6 bn yen 299.3 bn yen

7.2 years

Appraisal NOI Yield

4.7%

Diversification Summary
Area Diversification(Based on acquisition price)
IHI Infrastructure Systems 7.9%
Nippon Express Company 4.7%
Not Disclosed
4.2%
MITSUI-SOKO LOGISTICS
4.1%
Nihon Realest
3.5%
Sankyu3.5%
LONCO JAPAN
3.1%
ORIX Auto
2.9%
Kimura Unity
2.8%
MITAKA SOKO
2.7%
Others60.5%

Main Portfolio(yen)(unit)

66,500(As of Feb. 28, 2023)

35,000500,000

Sponsor-developed Properties /MJIA-sourced Properties(Based on acquisition price)

30,00025,000400,000
20,000350,000

7.4%

15,000

10.7%

32.4%

300,000

54.5%
27.4%

67.6%

10,000250,000

5,000

200,000■ Tokyo Metropolitan Area
■ Osaka Metropolitan Area
■ Nagoya Metropolitan Area
■ Others0

Sept. 14,2017

■ Sponsor-developed Properties■ MJIA-sourced Properties▶

Sponsor-Developed Properties

Feb. 28,
2018

Aug. 31,2018

Feb. 28,2019

Aug. 30,
2019

Logicross Yokohama Kohoku

Logicross Nagoya Kasadera

Acquisition price 15,150 million yen
Occupancy rate 100.0%
BELS ★★★★★
CASBEE S Rank for Real Estate

Acquisition price 7,821 million yen
Occupancy rate 100.0%
CASBEE A Rank for Real Estate

Acquisition price 14,424 million yen
Occupancy rate 100.0%
BELS ★★★★★
CASBEE S Rank for Real Estate▶

Breakdown by Units

Domestic entities
279 unitholders(2.6%)
Financial institutions
175 unitholders(1.6%)

Securities companies
13,058 units(2.5%)

Foreign entities
217 unitholders (2.0%)
Securities companies
20 unitholders(0.1%)

Domestic individuals
and others
9,643 unitholders(93.3%)IR Calendar

Feb.
MJ Logipark Takatsuki 1

MJ Logipark Funabashi 2

Acquisition price 5,500 million yen
Occupancy rate 100.0%
BELS ★★★★★

Acquisition price 4,880 million yen
Occupancy rate 100.0%
CASBEE S Rank for Real EstateFeb. 28,
2022

Aug. 31,2022

Feb. 28,
2023

Aug.

Investment
in MEL by MEC(As of Feb. 28, 2023)

503,485

20,550 units (4.1%)

unitsFinancial institutions
311,720 units(61.9%)

14th fiscal period

Closing of the period ending February

Acquisition price 4,353 million yen
Occupancy rate 100.0%
BELS ★★★★★

Aug. 31,2021

Domestic individuals
and others
36,252 units(7.2%)

Domestic entities
31,930 units(6.3%)

Fiscal period ended February 28, 2023
(September 1, 2022 to February 28, 2023)
Announcement of results: April 17, 2023
Commencement of dividends payments: May 23, 2023

MJ Logipark Inzai 1

Feb. 26,
2021

Foreign entities
110,525 units(21.9%)

13th fiscal period

MJIA-Sourced Properties

Aug. 31,
2020

Breakdown by Unitholders

unitholders

LOGiSTA·Logicross Ibaraki Saito (A)Feb. 28,2020U nitholders Composition (As of Feb. 28, 2023)

10,334

8

403,000 yen

Trading Volume (Right)

Investment Unit Price (Left)

550,000

450,000

Tenant Diversification(Based on leased area)▶

Total Appraisal Value

Change in Investment Unit Price

Mar.

Apr.

Sept.

Oct.

Closing of the period ending AugustFiscal period ending August 31, 2023
(March 1, 2023 to August 31, 2023)
Announcement of results: middle of October 2023 (to be announced)
Commencement of dividends payments: late November 2023 (to be announced)
Announcement of
results for the period
ending February
Commencement of dividends payments for the period ending February

May
Nov.
Announcement of
results for the period
ending August

Jun.

Jul.

Dec.

Jan.

Commencement of dividends payments for the period ending August
Mitsubishi Estate Logistics REIT Investment Corporation

9

Financial Section
BALANCE SHEETASSETS
Current assets:
Cash and deposits (Notes 3, 5)
Cash and deposits in trust (Notes 3, 5)
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Total current assets
Fixed assets:
Property and equipment (Notes 4, 6)
Buildings in trust (Note 12)
Less: accumulated depreciation
Buildings in trust, net
Structures in trust (Note 12)
Less: accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Less: accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Less: accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property and equipment
Intangible assets (Note 4)
Software
Other intangible assets
Total intangible assets
Investments and other assets
Deferred tax assets (Note 13)
Long-term prepaid expenses
Security deposit
Total investments and other assets
Total fixed assets
Total assets¥¥

The accompanying notes are an integral part of these financial statements.

1
10

BALANCE SHEET, continued

Thousands of yen
As ofAugust 31, 2022
February 28, 2023
4,241,958
8,546,883
70,995
24,771
1,777,083
14,661,691¥

3,892,773
9,098,058
72,47733,057
1,427,954
14,524,321

88,264,585(6,468,958)
81,795,626
3,253,880(182,807)
3,071,073
210,718(47,632)
163,085
50,345(10,610)
39,735
128,389,735
213,459,256

106,351,860(7,660,886)
98,690,974
3,720,686(220,386)
3,500,299
210,718(59,529)
151,189
53,242(15,334)
37,907156,048,941
258,429,311

135
491
626

441
441

11
42,022
10,00052,033
213,511,916
228,173,608

18
99,29010,000109,308
258,539,062
273,063,384¥

LIABILITIESCurrent liabilities:
Operating accounts payable
Short-term loans payable (Notes 5, 11)Long-term loans payable due within one year
Accounts payable
Distributions payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
OthersTotal current liabilities
Non-current liabilities
Investment corporation bonds (Note 5, 11)Long-term loans payable (Notes 5, 11)
Tenant leasehold and security deposits in trust (Note 5)
Total non-current liabilities
Total liabilities
NET ASSETS
Unitholders’ equity
Unitholders’ capital
Units authorized:
10,000,000 units as of August 31, 2022 and February 28, 2023
Units issued and outstanding:449,935 units as of August 31, 2022, 503,485 units as ofFebruary 28, 2023
Unitholders’ capital, gross
Deduction from unitholders’ capital
Unitholders’ capital, net
SurplusRetained earnings
Total surplus
Total unitholders’ equity
Total net assets (Note 10)
Total liabilities and net assets

Thousands of yen
As ofAugust 31, 2022
February 28, 2023¥¥

313,4822,700,000
3,310,000
12,075
5,065
745,555835
1,107,517
125,235
10,3378,330,104¥

211,0314,430,000
6,540,000
14,694
4,296
885,627973
1,315,914
9
13,402,546

2,000,000
74,064,000
4,156,439
80,220,439
88,550,544

2,000,000
92,404,000
5,053,797
99,457,797
112,860,343

138,335,652(1,692,595)
136,643,057

158,791,538(2,021,047)
156,770,490

2,980,006
2,980,006
139,623,063
139,623,063
228,173,608

3,432,549
3,432,549
160,203,040
160,203,040
273,063,384¥

The accompanying notes are an integral part of these financial statements.

2
Mitsubishi Estate Logistics REIT Investment Corporation

11

Financial Section
STATEMENT OF INCOME AND RETAINED EARNINGS

Thousands of yen
For the fiscal period ended
August 31, 2022
February 28, 2023

Operating revenues:
Operating rental revenues (Note 7)
Other rental revenues (Note 7)
Total operating revenues
Operating expenses:
Expenses related to property rental business (Note 7)
Asset management fee
Asset custody fee
Administrative service fee
Directors’ compensation
Commission paid
Other operating expenses
Total operating expenses
Operating income
Non-operating income:Interest income
Interest on refund
Surrender value of insurance
Reversal of cash distribution payable
Total non-operating income
Non-operating expenses:
Interest expenses
Interest expenses on Investment corporation bonds
Borrowing related expenses
Investment unit issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes-current (Note 13)
Income taxes-deferred (Note 13)
Total income taxes
Net income¥

Retained earnings brought forward
Unappropriated retained earnings¥

5,934,447
342,352
6,276,799¥

Yen

6,759,061
390,769
7,149,831

2,221,313
527,144
1,690
18,8602,400
136,11239,366
2,946,887
3,329,911

2,450,675
631,224
2,014
22,2222,400
154,063
53,6583,316,258
3,833,573

58
529
587

64
477
165
425
1,132

175,254
7,038
4,328
163,186
349,8072,980,692
2,980,692
844
3
847
2,979,844

225,451
6,961
5,779
163,074
401,267
3,433,438
3,433,438
982
(6)
976
3,432,462

162

87

2,980,006¥

For the fiscal period ended
August 31, 2022
February 28, 2023
Net income per unit (Note 14)

¥

6,623

¥

7,046

The accompanying notes are an integral part of these financial statements.

3,432,549

3
4
12

Mitsubishi Estate Logistics REIT Investment Corporation

13

Financial Section
STATEMENT OF CHANGES IN NET ASSETSFor the fiscal period ended August 31, 2022

For the fiscal period ended February 28, 2023
Thousands of yen
Unitholders' equity

Unitholders' capital
Deduction
fromUnitholders’unitholders’capital, net
capitalUnitholders’ capital,
gross
Balance as of March 1,2022(Note 10)
Change during the
fiscal period
Issuance of new
investment units
Distributions in excess
of retained earnings
Surplus cash
distributions
Net income

Thousands of yen
Unitholders' equity

SurplusTotal
unitholders'
Total surplus
equityUnappropriate
d retained
earnings

Total
net assets¥115,191,501¥(1,427,014)¥113,764,487¥2,540,583

23,144,150-

23,144,150--

23,144,150

23,144,150-(265,580)(265,580)--(265,580)(265,580)---(2,540,421)(2,540,421)(2,540,421)(2,540,421)

-

-

-

2,979,844

2,979,844

2,979,844

2,979,844(265,580)

22,878,569

439,422439,422

23,317,992

23,317,992¥(1,692,595)¥136,643,057¥2,980,006

Total change during the23,144,150
fiscal period
Balance as of August
31, 2022¥138,335,652(Note 10)

¥2,540,583 ¥116,305,071 ¥116,305,071¥2,980,006 ¥139,623,063 ¥139,623,063

Unitholders' capital
Deduction
fromUnitholders’unitholders’capital, net
capitalUnitholders’ capital,
gross
Balance as of
September 1, 2022
(Note 10)
Change during the
fiscal period
Issuance of new
investment units
Distributions in excess
of retained earnings
Surplus cash
distributions
Net income

SurplusTotal
unitholders'
Total surplus
equityUnappropriate
d retained
earnings

Total net
assets¥138,335,652¥(1,692,595)¥136,643,057¥2,980,006

20,455,885-

20,455,885--

20,455,885

20,455,885-(328,452)(328,452)--(328,452)(328,452)---(2,979,919)(2,979,919)(2,979,919)(2,979,919)

-

-

-

3,432,462

3,432,462

3,432,462

3,432,462(328,452)

20,127,433

452,543452,543

20,579,976

20,579,976¥(2,021,047)¥156,770,490¥3,432,549

Total change during the
20,455,885
fiscal period
Balance as of February
28, 2023¥158,791,538(Note 10)

¥2,980,006 ¥139,623,063 ¥139,623,063¥3,432,549 ¥160,203,040 ¥160,203,040

The accompanying notes are an integral part of these financial statements.

5

14

6

Mitsubishi Estate Logistics REIT Investment Corporation

15

Financial Section
STATEMENT OF CASH FLOWS

Thousands of yen
For the fiscal period ended
August 31, 2022
February 28, 2023

Cash flows from operating activities:
Income before income taxes
Depreciation
Investment unit issuance expenses
Interest income
Interest expenses
Interest expenses on investment corporation bonds
Reversal of cash distribution payable
Decrease (Increase) in operating accounts receivable
Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid expenses
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accounts payable
Increase (Decrease) in accrued expenses
Increase (Decrease) in consumption taxes payable
Increase (Decrease) in advances received
OthersSubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchases of property and equipment in trust
Proceeds from tenant leasehold and security deposits in trust
Repayments from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of new investment units
Payment of distributions of retained earnings
Payment of distributions in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal period
Cash and cash equivalents at the end of the fiscal period (Note 3)¥

The accompanying notes are an integral part of these financial statements.

¥

2,980,692
1,096,994
163,186(58)
175,2547,038(529)(32,537)(1,777,083)(2,487)(8,682)
37,838(679)
84,203(281,822)
231,374
137,379
2,810,080
58(168,059)(913)
2,641,165¥

3,433,438
1,246,312
163,074(64)
225,451
6,961(425)(1,482)
349,129(8,286)(57,268)(9,543)
2,619
132,396
208,396(135,563)
5,555,146
64(224,738)(845)
5,329,627(46,390,140)
475,849(31,470)(45,945,761)(46,309,091)
919,812(22,455)(45,411,734)

3,800,000(1,100,000)
21,000,000
22,980,964(2,539,745)(265,296)
43,875,923
571,327
12,217,514
12,788,842

8,710,000(6,980,000)
24,880,000(3,310,000)
20,292,811(2,980,366)(328,349)
40,284,096
201,990
12,788,842
12,990,832¥

NOTES TO FINANCIAL STATEMENTS
1.
a)

ORGANIZATION AND BASIS OF PRESENTATION
Organization
Mitsubishi Estate Logistics REIT Investment Corporation (hereinafter “MEL”) was established on July 14, 2016 underthe “Act on Investment Trust and Investment Corporation” (hereinafter the “Investment Trust Law”), and acquired 1
property worth 5,400 million yen on September 29, 2016, and was listed on the REIT Securities Market of the Tokyo Stock
Exchange on September 14, 2017, with Mitsubishi Estate Co., Ltd. (hereinafter “MEC”), one of the largest comprehensive
developers in Japan, acting as a sponsor. MEL focuses on investing in logistics facilities primarily in the Tokyo
Metropolitan Area. MEL is externally managed by a licensed asset management company, Mitsubishi Jisho Investment
Advisors, Inc. (hereinafter the “Asset Manager” or “MJIA”). As of February 28, 2023, MEL held in the form of trust
beneficiary interest in 32 properties (aggregate acquisition price: 261,659 million yen), and an occupancy rate remained
100% at a high level as of the end of the reporting fiscal period.

b)Basis of Presentation
The accompanying financial statements have been prepared in accordance with the provisions set forth in theInvestment Trust Law, the Japanese Financial Instruments and Exchange Act and their related accounting regulations, andin conformity with accounting principles generally accepted in Japan (hereinafter the “Japanese GAAP”), which are
different in certain respects as to application and disclosure requirements from International Financial ReportingStandards. The accompanying financial statements have been reformatted and translated into English from the financial
statements of MEL prepared in accordance with Japanese GAAP, and filed with the appropriate Local Finance Bureau of
the Ministry of Finance as required by the Financial Instruments and Exchange Act. In preparing these financial
statements, certain reclassifications and modifications have been made to the financial statements issued domestically inorder to present them in a format which is more familiar to readers outside Japan. As permitted by the regulations under
the Financial Instruments and Exchange Act of Japan, amounts of less than one thousand yen have been omitted. As aresult, the totals shown in the accompanying financial statements do not necessarily agree with the sums of theindividual amounts. MEL’s fiscal period is a six-month period that ends at the end of February and August of each year.
MEL does not prepare consolidated financial statements as it has no subsidiaries.

8
7
16

Mitsubishi Estate Logistics REIT Investment Corporation

17

Financial Section
2.
a)lease contract for real estate, etc. and an agreement incidental thereto.
With respect to revenue from utilities charge, in case MEL is determined as an agent, revenue is recognized at net
amount by deducting an amount to be paid to another party from an amount received as electricity and gas charges
supplied from the same other party.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESCash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and cash in trust, floating deposits, deposits in trust and short-term
investments that are very liquid and realizable with a maturity of three months or less when purchased and that are
subject to insignificant risks of changes in value.
b)

Property and Equipment
Property and equipment are stated at cost. Depreciation of property and equipment, including property and equipmentg)related income generated and expenses incurred from assets in trust, are recorded in the relevant balance sheet andstatement of income and retained earnings accounts. Important line items included in accounting for financial assets

in trust, is calculated by the straight-line method over the estimated useful lives as follows:
Buildings
2-63 yearsc)

Structures
Machinery and equipment

10-59 years
8-12 years

Tools, furniture and fixtures

3-15 years

Trust Beneficiary Interests of Real Estate
As to trust beneficiary Interests of real estate, all accounts of assets and liabilities for assets in trust as well as theand liabilities in the MEL’s balance sheet are cash and deposits in trust, buildings in trust, structures in trust,machinery and equipment in trust, tools, furniture and fixtures in trust, land in trust and tenant leasehold and security
deposits in trust.

Intangible Assets
Amortization of intangible assets, including intangible assets in trust, is calculated by the straight-line method over theh)Taxes on Property and Equipment
With respect to property taxes and other taxes including city planning taxes and depreciable asset tax, of a tax

estimated useful lives.

amount assessed and determined, the amount corresponding to the relevant fiscal period is accounted for as rental
expenses.

d)

Of the amounts paid for the acquisitions of real estate properties or trust beneficiary interests of real estate, anamount equivalent to property taxes is capitalized as part of the acquisition costs of the relevant property instead ofe)Long-term Prepaid Expenses
Long-term prepaid expenses are amortized by the straight-line method.
Investment Unit Issuance Expenses
Investment unit issuance expenses are recorded as expenses when incurred.

f)being charged as an expense.

Revenue Recognition
Details of the main performance obligations related to revenues arising from contracts with customers of MEL and the3.

CASH AND CASH EQUIVALENTS
Relationship between cash and cash equivalents in statement of cash flows and accounts and amounts in theaccompanying balance sheet are as follows:
Thousands of yen
As ofAugust 31, 2022
February 28, 2023

normal timing at which such performance obligations are satisfied (the normal timing for recognizing revenue) are as
follows.
(1) Sale of Real Estate
Revenue from sales of real estate is recognized once a buyer, who is a customer, acquires control of a relevant real

Cash and deposits

estate by fulfilling an obligation of delivery stipulated in a contract for sales of real estate.
(2) Utilities Charge
Revenue from utilities charge is recognized by supplying electricity, water, etc. to lessee who is a customer based on a

Cash and cash equivalents

9
18

¥

Cash and deposits in trust

4,241,958¥

8,546,883¥

12,788,842

3,892,773
9,098,058¥

12,990,832

10Mitsubishi Estate Logistics REIT Investment Corporation

19

Financial Section
4.
4.

PROPERTY AND
AND EQUIPMENTEQUIPMENT AND
AND INTANGIBLE ASSETSASSETSPROPERTY
4.
PROPERTY
AND EQUIPMENTINTANGIBLE
AND INTANGIBLE ASSETS
Propertyandequipment
andintangible
assetsasofFebruary 28,
28, 2023 areare as follows:
follows:
PropertyProperty
and equipment
and intangible
assetsassets
as of February
and equipment
and intangible
as of February2023
28, 2023as
are as follows:

agreements.
In addition, aiming for long-term and stable growth, MEL will issue additional investment units while paying due
regard to the dilution of investment units, comprehensively taking into account the financial environment, MEL’s
capital structure and the impact on existing unitholders.

Thousands ofof yenThousands
Thousandsyenof yenType ofof assets
assetsType of assets
Type

Depreciation
Depreciation
Depreciation
BalanceBalance
as ofof as of
Increase
Decrease
Balance
as
NetNetbalanceas asBalanceasIncrease
Decrease
BalanceasNetbalanceasIncrease
Decrease
Balance asbalance
Depreciation
Depreciation
Depreciation of February
September
1,duringthe theduring
duringduring
the ofof February
February
Remarks
Accumulated
September
1,duringtheof Februaryof February Remarks
Remarks
September
1,duringthetheof February
Accumulated
Accumulatedforthefiscalfor thefiscal 28, 2023
for thefiscal2022 2022 fiscal
fiscal period
periodfiscal period
period28, 2023
2023
depreciation
fiscal period
fiscal period
28, 2023depreciation
2023
depreciation period2022
fiscal28,
28,28,
2023
periodperiodBuildingsBuildingsinin
Buildings
in88,264,585
18,087,274¥ 88,264,585¥ 18,087,274¥¥ 88,264,585¥¥ 18,087,274
¥¥
trust
trust
trust
Structuresin trust
trust in trust 3,253,880
3,253,880
466,805
Structures
3,253,880 466,805
466,805
StructuresinProperty Property
Property
Machinery
andMachinery
andMachineryand210,718210,718
andand
210,718-andequipment
equipmentin trust
trust in trust
equipmentinequipment
equipment
equipment
Tools, furnitureandTools, furniture
furnitureandTools,
and50,345 50,345 2,896
2,896 2,896
50,345fixtures ininfixtures
trust in trust
fixturestrust
Land in trust
128,389,735
27,659,205
Land inin trust
trust
128,389,735
27,659,205
Land
128,389,735
27,659,205
Total property
and equipment ¥220,169,165¥220,169,165¥ 46,216,183
Total
propertyandequipment¥
46,216,183
Total property and equipment¥220,169,165 ¥ 46,216,183 ¥¥Software¥9,500¥ - ¥ Software¥
9,500
Intangible
9,500
¥¥
- ¥
Intangible Software Other intangible ¥Intangible
Other
intangible
Other intangible
assets assets
1,000 1,000
assetsassets1,000-assets
assetsTotal intangible assets¥
10,500¥Total intangible
intangible assets
assets
10,500Total¥¥
10,500¥¥-- ¥¥MEL also may invest surplus funds in bank deposits etc. for the purpose of efficiency of fund operations. MEL enters
into derivative transactions solely for the purposes of reducing risks of rising interest rates related to financings andother types of risks. There was no derivative transactions during the reporting period.

106,351,860
7,660,886
1,191,927
98,690,974(Note)¥ -- ¥¥ 106,351,860- ¥ 106,351,860¥ 7,660,886¥ 1,191,927 ¥¥ 98,690,974¥ 98,690,974 (Note)(Note)¥¥ 7,660,886¥¥ 1,191,927-3,720,686
220,386
37,5793,500,299(Note)-3,720,686
3,720,686 220,386
220,386
37,5793,500,299(Note)
37,5793,500,299(Note)--

210,718- 210,718
210,718

--

-

--

¥ ¥ ¥

--

59,52959,52959,52911,896
11,896
11,896

151,189
151,189
151,189(2) Type of financial instruments, related risks and risk management system
Bank loans and investment corporation bonds are mainly made to procure funds for acquisition of properties,-- -repayment of interest bearing debt. Although MEL is exposed to liquidity risks upon repayment, by diversifying thematurities and lending institutions, securing liquidity of cash in hand and managing such liquidity risks by preparing

53,242
15,334
4,724
37,90753,242
15,334
4,724
37,90753,242
15,334
4,724
37,907-- 156,048,941- 156,048,941
156,048,941 (Note)(Note)
156,048,941
156,048,941--156,048,941(Note)- ¥266,385,449¥7,956,137¥7,956,137¥1,246,127¥1,246,127 ¥258,429,311¥258,429,311¥266,385,449¥266,385,449 ¥7,956,137¥1,246,127¥258,429,311-- ¥ 9,5009,500¥ 9,500
9,500 ¥ ¥ 135135 ¥ ¥¥¥¥9,500 ¥
9,500
¥
135
¥
441
1,0001,000
558 558
50 50
441
1,000
558
50
441
--

-- ¥¥

- ¥

10,500 ¥10,05810,500 ¥¥10,05810,50010,058
¥¥

¥

185
¥
185
185
¥¥

441
441
441

--

and monitoring cash flows projection, such risks are maintained under control. In addition, some loans bear floatinginterest rates and are exposed to potential risks of rising interest rates. MEL attempts to mitigate such risks on its
operations by maintaining a conservative loan to value ratio and increasing the ratio of long-term fixed interest rateloans.

-The security deposits which MEL has received from the tenants are exposed to liquidity risk due to cancelation oflease agreement before the maturity date. In the case of trust beneficiary interest in real estate, MEL secures safety(Note) The amount of increase during the fiscal period is primarily attributable to the acquisition of 8 properties.
(Note) The
The amountamount ofof increase
increase during
during thethe fiscal
fiscal period
period isis primarily
primarily attributable
attributable toto thethe acquisitionacquisition ofof 88 properties.
properties.
(Note)

5.
5.
a)
a)

5. FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS
INSTRUMENTS
FINANCIALa) Overview
Overview
Overview(1) Policy for financial instruments(1) Policy
PolicyMEL
for financial
financial
instruments(1)
forprocures instruments
funds for the acquisition of assets and repayment of debt mainly through bank loans, issuance ofMEL
procuresfunds
forthe acquisitionacquisition
ofissuanceassets andandrepaymentof debt
debt
mainly throughthrough bankbank loans,loans, issuanceissuance ofof
MEL procures
funds
for theofassetsrepaymentofinvestment
corporation
bonds or theof new
investment
units.mainly
investmentIncorporation
corporationbonds
orthe issuanceissuanceof new
new corporation
investment bonds,
units. MEL takes consideration in interest rate trend,borrowing funds
oror
issuanceof investment
investment
bonds
the
of
investment
units.
In
borrowingfunds
orissuanceofinvestment
corporation
bonds,
MEL takes
takes
consideration
in interest
interest rate
rate
trend,
debt cost,
floating
or fixed interest
rate, borrowing
or issuanceand repayment
or redemption
date.trend,
In borrowing
funds
or issuanceof investment
corporation
bonds, periodMEL
consideration
in
debt
cost,
floatingorfixedinterest
rate,borrowingorissuance
periodandrepaymentorredemption
date.
the caseborrowing,
lendershall beorlimited
to qualified
institutional
investors
as stipulated
debt cost, In
floating
or of
fixed
interesttherate,borrowingissuance
period andrepaymentor redemption
date.in Article 2,
In
the
case
of
borrowing,thelendershallbelimitedtoqualifiedinstitutional
investors
asstipulated
in Article
Article2,
Paragraph
3,
Item
of
the
Financial
Instruments
andExchange
Act
of
Japan
(limited
toinstitutional
investorsprescribed
In the case of borrowing, the lender shall be limited to qualified institutional investors as stipulated in
2,

Paragraph3, Item
Item67-15of thetheFinancial
Instruments
and Exchange
Exchange
Act inof principle
Japan (limited(limited
to institutional
institutional
investorsprescribedin Article
ofFinancial
the Taxation
Special MeasuresLaw), withno collateral/ no guarantee.
However,
MEL
Paragraph3,ofInstruments
and
Act
of
Japan
to
investorsprescribedmayprovideassetsascollateralinconsiderationoffinancingenvironment
andeconomic
conditions.
In
addition,in Article
Article 67-15
67-15 ofof thethe Taxation
Taxation Special
Special Measures
Measures Law),
Law), with
with inin principle
principle nono collateralcollateral // nono guarantee.
guarantee. However,
However, MEL
MELininorderassets
to flexibly
procure thenecessary funds
to MEL's
operationsuch
as property
acquisition
and repayment
may provide
provideas collateralcollateralin considerationconsideration
ofrelatedfinancingenvironment
andeconomic
conditions.
In addition,
addition,inmayassetsasinoffinancingenvironment
andeconomic
conditions.
In
in
debt
financing,MEL
mayenter into
the related
overdraftagreements,
commitment
line
agreements
or conclude
the reservedorder
toflexibly
procurethenecessary
funds
to
MEL's
operationsuchaspropertyacquisition
andrepayment
order to flexibly procure the necessary funds related to MEL's operation such as property acquisition and repayment
11 commitment line agreements or conclude the reserved
debt financing,financing, MEL
MEL may
may enter
enter into
into thethe overdraft
overdraft agreements,
agreements,
debt
commitment line agreements or conclude the reserved
11
11

20

by accumulating a portion in the trust account, and in the case of real estate, leasehold rights of real estate, andsuperficies, MEL secures safety by accumulating a portion in bank savings account or bank time deposit account.
Moreover, MEL ensures safety by accurately tracking the timing of the tenant move-ins and outs and anticipating thefund demand utilizing historical data.
(3) Supplemental explanation regarding the estimated fair values of financial instruments
The fair value of financial instruments is calculated based on certain assumptions. Accordingly, the fair value offinancial instruments may differ if different assumptions are used.
b)

Estimated fair value of financial instruments
The book value, fair value and differences between the values as of August 31, 2022 are as follows: Financial
instruments for “Cash and deposits”,” Cash and deposits in trust” and “Short-term loans payable” are excluded fromthe following table due to the short maturities and the book value of these instruments which is deemed a reasonableapproximation of the fair value. “Tenant leasehold and security deposits in trust” is also excluded from the following
table since it is immaterial.
12
Mitsubishi Estate Logistics REIT Investment Corporation

21

Financial Section
Thousands of yen
Book value(1) Long-term loans payable due within one year¥

3,310,000

Thousands of yen

Fair value (Note 1)

Difference¥¥

3,311,351

Book value
(1)

1,351

Long-term loans payable due(2) Investment corporation bonds

2,000,000

1,950,000(50,000)(3) Long-term loans payable

74,064,000

75,026,006

962,006(2)

Investment corporation bonds

Total liabilities¥(Note1) Methods to determine fair values of financial instruments

79,374,000

913,357(3)

Long-term loans payable¥

80,287,357¥¥

within one year

6,540,000

100,944,000

applicable to new loans payable under the same terms. In terms of floating interest rate loans payable, since it reflects the market

7,887

1,877,000(123,000)

92,399,962¥(4,037)

100,824,850¥(119,149)(1) Long-term loans payable due within one year and (3) Long-term loans payable
The fair value of long-term loans payable is determined based on the present value of contractual cash flows which would beinterest rate in a short period of time, the fair value is approximately equal to the book value. Thus, the book value is used.

(2) Investment corporation bonds
The fair value is determined based on the reference values published by the Japan Securities Dealers Association .

(2) Investment corporation bonds
The fair value is determined based on the reference values published by the Japan Securities Dealers Association.

(Note2) Repayment schedule for debt after August 31, 2022

(Note 2) Repayment schedule for debt after February 28, 2023

Thousands of yen

Thousands of yen

As of August 31, 2022
Due within oneyear¥ 3,310,000

Due after one to
two years¥-

Due after two to
three years¥-

As of February 28,2023

Due after three to Due after four to
Due after five years
four years
five years
¥

-

¥

-

¥

-

Investment corporation bonds

-

-

-

-

-

2,000,000

Long-term loans payable-

6,540,000

5,900,000

5,970,000

7,910,000

47,744,000¥ 3,310,000¥ 6,540,000¥ 5,900,000¥ 5,970,000¥ 7,910,000¥49,744,000

Total

¥

applicable to new loans payable under the same terms. In terms of floating interest rate loans payable, since it reflects the market

interest rate in a short period of time, the fair value is approximately equal to the book value. Thus, the book value is usedwithin one year

Difference

6,547,887

92,404,000¥(Note 1) Methods to determine fair values of financial instruments

The fair value of long-term loans payable is determined based on the present value of contractual cash flows which would be¥

2,000,000

Total liabilities(1) Long-term loans payable due within one year and (3) Long-term loans payable

Long-term loans payable due

Fair value (Note 1)

Due within one Due after one
year
to two years
Long-term loans payable due
within one year

¥ 6,540,000¥-

Due after two Due after three Due after fourto three years to four years
to five years
¥

-

¥

-

¥

-

Due after five
years
¥

-

Investment corporation bonds

-

-

-

-

-

2,000,000

Long-term loans payable-

4,550,000

8,320,000

9,890,000

13,590,000

56,054,000¥ 6,540,000¥ 4,550,000¥ 8,320,000¥ 9,890,000¥13,590,000¥56,054,000

Total

The book value, fair value, and differences between the values as of February 28, 2023 are as follows: Financial
instruments for “Cash and deposits”,” Cash and deposits in trust”, and “Short-term loans payable” are excluded from thefollowing table due to the short maturities and the book value of these instruments which is deemed a reasonableapproximation of the fair value. “Tenant leasehold and security deposits in trust” is also excluded from the following tablesince it is immaterial.

13
22

14
Mitsubishi Estate Logistics REIT Investment Corporation

23

Financial Section
6.

INVESTMENT AND RENTAL PROPERTIESMEL owns logistics facilities for leasing for the purpose of earning rental income. The book value, changes during thereporting period, and fair value of the properties are as follows:

7.

PROPERTY-RELATED REVENUES AND EXPENSES

The following table summarizes the revenues and expenses generated from property leasing activities for the fiscal
periods ended August 31, 2022 and February 28, 2023.
Thousands of yen
For the fiscal period ended
August 31, 2022
February 28,2023

Thousands of yen
For the fiscal period ended
August 31, 2022
February 28, 2023
Book value (Note 1)
Balance at the beginning of the fiscal period¥

Changes during the fiscal period (Note 2)

168,078,592¥

45,380,664

213,459,256
44,970,055

Balance at the end of the fiscal period¥

213,459,256¥

258,429,311

Fair value at the end of the fiscal period (Note 3)¥

246,147,500¥

299,350,000(Note 1) Book value is measured at deducting accumulated depreciation from acquisition cost.
(Note 2) The increase for the fiscal period ended August 31, 2022 was primarily a result of acquiring Real estate beneficiaryinterests for a total of 46,294,212 thousand yen. The decrease was primarily a result of the recognition ofdepreciation, which amounted to 1,095,994 thousand yen. The increase for the fiscal period ended February 28,
2023 was primarily a result of acquiring Real estate beneficiary interests for a total of 46,138,283 thousand yen.
The decrease was primarily a result of the recognition of depreciation, which amounted to 1,246,127 thousandyen.
(Note 3) The fair value at the end of each fiscal period is determined based on appraised value provided by independent
real estate appraisers.
Income and loss in connection with investment and rental properties are disclosed in “7. PROPERTY-RELATEDREVENUES AND EXPENSES.”

A. Property-related revenues
Operating rental revenues
Rental revenues
Common area charges
Total
Other rental revenues
Received utilities cost
Others
Total
Total property-related revenues
B. Property-related expenses
Rental expenses
Facility management fee
Property and other taxes
Insurance
Repair and maintenanceUtilities cost
Depreciation
Custodian fee

24

¥
¥
¥
¥

¥

OthersTotal rental expenses
C. Operating income from property leasing (A-B)

15¥

5,682,416
252,030
5,934,447¥

220,513
121,839
342,352
6,276,799¥

275,605
475,490
10,631
105,563
231,154
1,095,994
4,047

¥

¥

¥
¥

22,826¥¥2,221,313
4,055,485

6,511,627
247,434
6,759,061
274,781
115,988
390,769
7,149,831

322,841
475,402
9,063
90,105277,105
1,246,127
5,208
24,820¥¥2,450,675
4,699,15616

Mitsubishi Estate Logistics REIT Investment Corporation

25

Financial Section
8.

a)

REVENUE RECOGNITION
Breakdown information on revenue from contracts with customers
The previous period (the fiscal period from March 1, 2022 to August 31, 2022)
Thousands of yen
Revenue from contracts withcustomers
Revenue from utilities charge¥

Net sales to external customers

220,513

Others¥

220,513

Total¥

220,513

6,056,286¥

6,276,799b)

Basic information for understanding revenue from contracts with customers
As stated in “2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES”.

c)

Information on relationship between fulfillment of performance obligations based on contracts with customers andcash flow generated from said contracts, and on amount and fiscal period of revenues expected to be recognized in
the following fiscal period or thereafter from contracts with customers existing at the end of the current fiscal
period.
(1) Balance of contract assets and contract liabilities, etc.

(Note1) Rental business revenue, etc. subject to ASBJ Statement No. 13, "Accounting Standard for Lease Transactions," andtransfers of real estate, etc. subject to ASBJ Statement No. 15, "Practical Guidance on Accounting Practical Guidelines
for Real Estate Securitization Utilizing Special Purpose Companies," are not included in the above amounts because
they are exempt from the revenue recognition accounting standard. Revenues from contracts with major customers

Claims generated from contracts with customers

consist of revenues from utilities.
(Note2) Received utilities cost is the amount recorded as revenues based on the supply of electricity, water, etc. to lessees who

Claims generated from contracts with customers

are customers, based on the lease agreements for real estate, etc. and associated agreements.
The reporting fiscal period (the fiscal period from September 1, 2022 to February 28,2023)
Thousands of yen
Revenue from contracts withcustomers
Revenue from utilities charge

¥

¥

Total

¥

274,781¥¥(balance at beginning of the fiscal period)¥

59,15361,050Contract assets (balance at beginning of the fiscal period)--

Contract assets (balance at end of the fiscal period)

-

-

-

Contract liabilities (balance at end of the fiscal period)

274,781

29,511

59,153(balance at end of the fiscal period)

Contract liabilities (balance at beginning of the fiscal period)

Net sales to external customers

274,781

OthersThousands of yen
For the fiscal period from
For the fiscal period from
September 1, 2021 toSeptember 1, 2022 toAugust 31, 2022
February 28, 2023

¥

-

¥

-

(2) Transaction price allocated to the remaining performance obligations
Not applicable.

6,875,050

Received utilities cost is recognized at the amount that MEL has the right to claim in accordance with Paragraph 19

7,149,831

of the “Accounting Standard Guidance for Revenue Recognition”, as MEL is entitled to receive from the customers
the amount of consideration that directly corresponds to the value to the tenants who are the customers for the(Note1) Rental business revenue, etc. subject to ASBJ Statement No. 13, "Accounting Standard for Lease Transactions," andtransfers of real estate, etc. subject to ASBJ Statement No. 15, "Practical Guidance on Accounting Practical Guidelines
for Real Estate Securitization Utilizing Special Purpose Companies," are not included in the above amounts because
they are exempt from the revenue recognition accounting standard. Revenues from contracts with major customers

portion of performance completed by the end of the period. Accordingly, MEL has applied the provisions of paragraph80-22(2) of the "Accounting Standard for Revenue Recognition" and has not included them in the notes to thetransaction price allocated to its remaining performance obligations.

consist of revenues from utilities.
(Note2) Received utilities cost is the amount recorded as revenues based on the supply of electricity, water, etc. to lessees whoare customers, based on the lease agreements for real estate, etc. and associated agreements.
17
18
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Financial Section
9.

LEASES

10. NET ASSETS

The future minimum rental revenues from tenants subsequent to each fiscal period end under the non-cancelable
operating leases of properties are as follows:

August 31, 2022
Due within one year¥

10,998,039

Due after one year
Total

Thousands of yen
As of72,446,331

Stated Capital
MEL issues only non-par value units in accordance with the Investment Trust Law. The entire amount of the issue priceof new units is designated as stated capital. The Investment Corporation is required to maintain net assets of at least
50,000 thousand yen as required by the Investment Trust Law.
February 28, 2023¥

61,448,292
¥

a)

b)

Distributions
Yen

12,886,130

For the fiscal period ended

78,271,999¥

August 31, 2022

91,158,129
I. Unappropriated retained earnings

February 28, 2023

¥ 2,980,006,749¥ 3,432,549,801

II. Distributions in excess of retained earnings
Deduction from unitholders’ capital
III. Distributions

328,452,550

408,326,335

3,308,372,055

3,840,583,580(Distributions per unit)
Of which, distributions of retained earnings(Of which, distributions in retained earnings
per unit)
Of which, distributions in excess of retained
earnings(Of which, distributions in excess of retained
earnings per unit)
IV. Retained earnings carried forward(7,353)(7,628)2,979,919,505

3,432,257,245(6,623)(6,817)

328,452,550

408,326,335

(730)

(811)

¥

87,244¥

292,556

Pursuant to the “Policy on the Distribution of Funds” as defined in Article 35, Paragraph 1 of the Articles ofIncorporation, the amount of distributions shall be the amount which does not exceed the amount of profits but exceeds
90% of the distributable profit as defined in Article 67-15 of the Special Taxation Measures Act. Based on the policy, MEL
declared distribution amounts of 2,979,919,505 yen and 3,432,257,245 yen for the fiscal periods ended August 31, 2022
and February 28, 2023, respectively. These amounts were equivalent to the maximum integral multiples of number ofinvestment units issued and outstanding as of the end of each fiscal period. Based on the distribution policy as defined in
Article 35, Paragraph 2 of the Articles of Incorporation, MEL shall make Surplus Cash Distributions (SCD), defined as
distributions in excess of retained earnings, as a return of unitholders’ capital, each fiscal period on a continuous basis.
For the reporting fiscal period, as the issuance of the new investment units caused the dilution and the decrease of
distribution per unit, MEL decided to make One-time SCD, of which amount was equivalent to approximately 2.8% of
19

28

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29

Financial Section
MEL’s depreciation expense for the reporting fiscal period, in addition to SCD of 373,585,870 yen, of which amount was
equivalent to approximately 30.0% of depreciation expense, in order to distribute at the same level per unit as every fiscal
period.
Accordingly, for the fiscal period ended August 31, 2022, MEL declared regular SCD of 328,452,550 yen, as a return of

11. INTEREST-BEARING DEBTa) Short term loans and Long-term loans payable
Short-term and long-term loans payable consisted of bank borrowings under loan agreements. The following tablesummarizes the short-term loans payable and long-term loans payable as of August 31, 2022 and February 28, 2023.

unitholders’ capital, which was the amount equivalent to approximately 30.0% of depreciation expense. For the fiscal
period ended February 28, 2023, MEL declared regular SCD of 373,585,870 yen, as a return of unitholders’ capital, which
was the amount equivalent to approximately 30.0% of depreciation expense and One-time SCD of 34,740,465 yen,equivalent to approximately 2.8 percent of MEL’s depreciation expense, as a return of unitholders’ capital.

Thousands of yen
As ofClassification

Repayment date

Weighted-average interest
rate
0.1363%September 14, 2023

0.1758%-430,000

0.2170%--0.1281%-1,800,000

0.2057%-1,500,000(Note 2)October 25, 2023
(Note 3)
November 15, 2023
(Note 4)

Total short-term loans payable

Long-term loans payable due
within one year¥

February 28, 2023

March 1, 2023 (Note 1)
September 14, 2023
Short-term loans payable

August 31, 2022
2,700,000¥¥

2,700,000¥

4,430,000¥

430,000¥-

September 14, 2022

0.3575%September 14, 2022

0.2400%830,000-

September 2, 2023

0.2500%-3,000,000-

1,760,000

September 14, 2023

0.3913%-

1,330,000

2,050,000-

Total Long-term loans payable due within one year
Long-term loans payable2130

700,000

September 2, 2023

0.2500%

September 14, 2023

0.3913%450,000¥

3,310,000¥

6,540,000¥

3,000,000¥-

1,760,000-

1,330,000-

450,000-

1,150,000

1,150,000

September 1, 2024

0.2000%

September 14, 2024

0.4288%900,000

900,000

October 9, 2024

0.1800%1,250,000

1,250,000

1,250,000

1,250,000

March 9, 2025

0.2100%1,350,000

1,350,000

September 1, 2025

0.2000%1,500,000

1,500,000

0.2663%800,000

800,000

22

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31

Financial Section
September 14, 2025
October 9, 2025

300,000

October 25, 2028

0.6575%-1,000,000

620,000

620,000

March 1, 2029

0.5263%500,000

500,000

0.3950%800,000

800,000

500,000

500,000

0.2160%200,000

200,000

1,000,000

1,000,000

1,000,000

1,000,000

500,000

500,000

0.2413%750,000

750,000

0.2132%-2,000,000

March 1, 2026

0.2200%1,000,000

1,000,000

500,000

500,000

September 1, 2026

0.3125%500,000

500,000

1,000,000

1,000,000

0.2500%500,000

500,000

500,000

500,000

0.5075%710,000

710,000

500,000

500,000

0.4538%500,000

500,000

500,000

500,000

October 9, 2026

0.2600%2,400,000

2,400,000

October 26, 2026

0.3300%March 1, 2029

0.5263%

March 9, 2029

0.5013%

March 19, 2029

0.4663%1,000,000

1,000,000

400,000

400,000

September 1, 2029

0.4182%

1,750,000

1,750,000-

1,000,000

September 14, 2029

0.4400%1,491,000

1,491,000-

2,880,000

September 30, 2029

0.4900%4,000,000

4,000,000

March 1, 2027

0.2500%2,000,000

2,000,000

October 25, 2029

0.7625%-1,000,000

March 9, 2027

0.3663%900,000

900,000

March 1, 2030

0.5662%

1,000,000

1,000,000

September 14, 2027

0.5500%1,340,000

1,340,000

March 9, 2030

0.5549%1,050,000

1,050,000

1,340,000

1,340,000

August 30, 2030

0.4683%2,000,000

2,000,000

880,000

880,000

0.5000%500,000

500,000

880,000

880,000

500,000

500,000

October 9, 2027

0.2400%1,250,000

1,250,000

December 2, 2030

0.8375%-1,000,000

October 25, 2027

0.5563%-1,000,000

March 1, 2031

0.6340%1,000,000

1,000,000-

1,000,000-

2,000,000

March 7, 2031
October 27, 2031

500,000

500,000

0.6176%1,000,000

1,000,000

0.9513%-3,000,000-

1,000,000

0.9613%-2,000,000-

1,000,000

March 1, 2028

0.4575%500,000

500,000

March 9, 2028

0.4313%900,000

900,000

800,000

800,000

December 1, 2031

0.9413%-2,000,000

March 1, 2032

0.7025%2,000,000

2,000,000

March 19, 2028

0.3963%800,000

800,000

September 1, 2028

0.4238%900,000

900,000

1,000,000

1,000,000

500,000

500,000

1,000,000

1,000,000

830,000

830,000

1,000,000

1,000,000

807,000

807,000

1,000,000

1,000,000

1,256,000

1,256,000

1,000,000

1,000,000

0.3738%720,000

720,000

0.5000%1,000,000

1,000,000

0.4200%750,000

750,000

0.7102%2,000,000

2,000,000

September 14, 2028

0.5750%

October 10, 2028

23
32

300,000

0.4675%October 27, 2025

September 14, 2026

Long-term loans payable

0.2000%24
Mitsubishi Estate Logistics REIT Investment Corporation

33

Financial Section
October 25, 2032

1.0438%-1,000,000

December 1, 2032

1.0238%-1,000,000-

1,000,000

March 9, 2033

0.6500%1,000,000

1,000,000

Total long-term loans payable
Total

¥

74,064,000¥

92,404,000¥

80,074,000¥

103,374,000

The stated interest rate is the weighted average interest rate during each fiscal period. The redemption schedules forlong-term loans payable subsequent to August 31, 2022 and February 28, 2023 are disclosed in “5. FINANCIAL
INSTRUMENTS”.
(Note 1) The short-term loans payable of 1,100,000 thousand yen was repaid on April 1, 2022, and 2,000,000
thousand yen was repaid on January 4, 2023, in a short-term loans payable of 3,800,000 thousand yen which
MEL borrowed on March 1, 2022.
(Note 2) The short-term loans payable of 2,880,000 thousand yen which MEL borrowed on September 14, 2022 was
repaid on December 14, 2022.
(Note 3) The short-term loans payable of 1,100,000 thousand yen was repaid on November 25, 2022, in a short-termloans payable of 2,900,000 thousand yen which MEL borrowed on October 25, 2022.
(Note 4) The short-term loans payable of 1,000,000 thousand yen was repaid on February 15, 2023, in a short-termloans payable of 2,500,000 thousand yen which MEL borrowed on November 15, 2022.
b)

Short-term investment corporation bonds and Long-term investment corporation bonds
The following table summarizes the Short-term investment corporation bonds and Long-term investment

corporation bonds as of August 31, 2022 and February 28, 2023.

As ofAugust 31, 2022

February 28, 2023

Buildings in trust¥

31,220¥31,220

Structures in trust¥

22,166¥22,166

13. INCOME TAXESMEL is subject to Japanese corporate income taxes on its taxable income. The tax effects of temporary differences thatgive rise to a significant portion of the deferred tax assets and liabilities as of August 31, 2022 and February 28, 2023 are
as follows:
Thousands of yen
As ofAugust 31, 2022
Enterprise tax payable¥

Total deferred tax assets
Net deferred tax assets

February 28, 2023
11

¥

18

11
¥

18

11

¥

18

Reconciliations of major items that caused differences between the statutory tax rate and effective tax rate with respect
to pre-tax income reflected in the accompanying statements of income for the fiscal periods ended August 31, 2022 andFebruary 28, 2023 are as follows:
For the fiscal period ended
August 31, 2022

February 28, 2023

31.46%

31.46%

Deductible cash distributions(31.45%)(31.45%)

Other

0.02%

0.02%

Actual effective income tax rate

0.03%

0.03%

Adjustments:

Thousands of yen
As ofAugust 31, 2022
February 28, 2023
¥

-

¥

-

Series 1¥

2,000,000¥

2,000,000¥

2,000,000¥

2,000,000

0.7000%Thousands of yen

Statutory tax rate

Maturity
Interest rate
Classification
Total Short-term investment corporation bonds
April 14, 2036
Total Long-term investment corporation bonds

12. REDUCTION ENTRY
The amount of reduction entry of property and equipment as of August 31, 2022 and February 28, 2023 are as follows:

MEL has a policy of making cash distributions of earnings in excess of 90% of distributable income as defined in theSpecial Taxation Measures Act for the fiscal period to qualify for conditions, as set forth in the Special Taxation Measures
Act, to achieve a deduction of cash distributions for income tax purposes. Based on this policy, MEL treated the cash
distributions of earnings as a tax deductible distribution as defined in the Special Taxation Measures Act.

25
34

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Financial Section
14. PER UNIT INFORMATION
The following table summarizes per unit information for the fiscal periods ended August 31, 2022 and February 28,
2023.
Yen
For the fiscal period ended
August 31, 2022
February 28, 2023

Net income per unit
Basic net income per unit¥

Weighted average number of units outstanding

6,627
449,600¥

7,046
487,114

Net assets per unit¥
310,318¥
318,188(Note) Basic net income per unit is based on the weighted average number of units issued and outstanding during
the fiscal period. Diluted earnings per unit and related information are not disclosed as no dilutive units were
outstanding.

b)

Related information(1) Information by geographic region(i) Operating revenues
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating
revenues on the statement of income and retained earnings.
(ii) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accounts for over 90% of
the amount of property and equipment on the balance sheet.
(2) Information by each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating
revenues on the statement of income and retained earnings.

17. SIGNIFICANT SUBSEQUENT EVENTS
Not applicable

15. TRANSACTION WITH RELATED PARTIESa)

Transactions and account balances with the parent company and major unitholders
There were no transactions and account balances for the fiscal periods ended August 31, 2022 and February 28, 2023.

b)Transactions and account balances with affiliates
There were no transactions and account balances for the fiscal periods ended August 31, 2022 and February 28, 2023.

c)

Transactions and account balances with companies under common control
There were no transactions and account balances for the fiscal periods ended August 31, 2022 and February 28,

2023.
d)

Transactions and account balances with board of directors and individual unitholders
There were no transactions and account balances for the fiscal periods ended August 31, 2022 and February 28, 2023.

16. SEGMENT AND RELATED INFORMATION(For the fiscal periods ended August 31, 2022 and February 28, 2023)
a)

Segment information
Disclosure is omitted because the real estate leasing business is MEL’s sole business and it has no reportable segment
subject to disclosure.
27

36

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Financial Section
Independent Auditor’s Report

The Board of Directors
Mitsubishi Estate Logistics REIT Investment Corporation
OpinionWe have audited the accompanying financial statements of Mitsubishi Estate Logistics REIT
Investment Corporation (the Company), which comprise the balance sheet as at February 28,
2023, and the statements of income, and retained earnings, changes in net assets, and cash flows
for the six month period then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the Company as at February 28, 2023, and its financial performance and its
cash flows for the six month period then ended in accordance with accounting principles
generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance withthese requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Other Information
The other information comprises the information included in the Semi-Annual Report that
contains audited financial statements but does not include the financial statements and our
auditor’s report thereon. Management is responsible for preparation and disclosure of the otherinformation. The Supervisory Director is responsible for overseeing the Company’s reporting
process of the other information.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management, and the Supervisory Director for the Financial
Statements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of financial statementsthat are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Supervisory Director is responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
・ Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the financial statements is not expressing an opinion on the effectiveness of the Company’s
internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
・ Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation in accordance with accounting
principles generally accepted in Japan.
We communicate with the Executive Director regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

38

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39

Financial Section
We also provide the Executive Director with a statement that we have complied with the ethicalrequirements regarding independence that are relevant to our audit of the financial statements inJapan, and to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, related safeguards.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company whichis required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.
Ernst & Young ShinNihon LLC
Tokyo, JapanMay 30, 2023

/s/ Koichi Yanai
Koichi Yanai
Designated Engagement Partner
Certified Public Accountant/s/ Teruyo Okubo
Teruyo Okubo
Designated Engagement Partner
Certified Public Accountant

40

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41

Other Information
Remuneration Policy for the Asset Management Company’s Directors, Corporate Auditors andEmployeesi) Remuneration for the Asset Management Company’s Directors
 Remuneration decision process. Remuneration for directors is determined by the representative
director upon consultation with the Board of Directors within the total remuneration limit for
directors approved at the General Meeting of Shareholders.
 Remuneration amount. Remuneration of each director is determined by the representative director
based on the remuneration table, which assigns responsibilities and position to each director. The
responsibilities and position of each director are determined by the representative director throughcomprehensive assessment that includes each individual’s abilities and experience.

 Evaluation of employees based on ESG criteria. All employees are evaluated once a year on their
ESG awareness, including compliance and risk management awareness, and the results of thisevaluation are taken into consideration when determining salary increases.

 Retirement allowance program. The Asset Management Company offers a defined contribution
pension plan as well as a retirement plan, with an aim to create a comfortable workplace where
employees will want to work for a long period time.

 Executive officer’s remuneration. Remuneration for executive officers is determined by the
representative director in accordance with the policy for executive officers.

 Bonus. Depending corporate performance, bonuses may be paid to directors upon resolution of
the Board of Directors.

ii) Remuneration for the Asset Management Company’s Corporate Auditors
 Remuneration decision process. Remuneration for corporate auditors is determined at the General
Meeting of Shareholders.
 Remuneration amount. Remuneration of each corporate auditor is determined throughcomprehensive assessment that includes each individual’s abilities and experience.
 Bonus. No bonus will be paid to corporate auditors.

iii) Remuneration for the Asset Management Company’s Employees Remuneration system based on skill development. The Asset Management Company’s salarysystem is based on the level of each employee’s professional skills. In order to motivate
employees to improve their performance and develop their professional skills, the AssetManagement Company has (i) a performance-based bonus system that rewards the employee
based on the performance of the Asset Management Company as well as the employee’s
performance taking into account the employee’s contribution to the performance of the AssetManagement Company and the employee’s work ethic, and (ii) a performance evaluation andpromotion system that evaluates once a year whether to increase the employee’s remuneration
and/or to promotion the employee, in each case based on the employee’s performance and work
ethic.

42

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Other Information
Remuneration for the Asset Management Company’s Directors and Corporate Auditors

Note:

April 1, 2022 to March 31, 2023
Directors

Remuneration
based onresolutions of
the General
Meeting of
Shareholders

Corporate auditors

Total

Number of
person(s)remunerated

Remuneration

Number of
person(s)remunerated

Remuneration

Number of
person(s)remunerated

Remuneration

4¥72,450,000

2¥1,200,000

6¥73,650,000

1. Total number of employees of the Asset Management Company who received remuneration during the fiscal year, excluding 16
employees dispatched from several companies, to which the Asset Management Company paid ¥176,750,999 in total for theirservices for the fiscal year.
2. Variable remuneration refers to bonuses paid to employees, as described in “iii) Remuneration for Asset Management Company’s
Employees” above.

There are potential conflicts of interest between MEL and the Asset Management Company with respect toremuneration for the Asset Management Company’s directors, corporate auditors and employees. We believe thatthe above remuneration policy mitigates such potential conflicts. In addition, the Asset Management Company has
adopted an internal set of rules that apply to all related-party transactions, such as transactions between MEL and theAsset Management Company. These rules require strict compliance by the Asset Management Company with laws
and regulations regarding related-party transactions. They also contain specific procedures to be followed in theevent of a transaction that involves a related party, in order to implement arm’s length terms.

Notes: 1. Remuneration for directors is as per the Companies Act of Japan, Article 361, Paragraph 1, Item 1.
2. Mitsubishi Jisho Investment Advisors, Inc. had four directors (one director served as a part-time role) and two corporate auditors (parttime) as of February 28, 2023.

Remuneration for the Asset Management Company’s Employees
April 1, 2022 to March 31, 2023
All employees (Note 1)
Remuneration
Number of employees

Remuneration based oncompensation rules

44

116

Total

¥1,064,003,743

Fixed¥736,372,773

Variable (Note 2)¥327,630,970

Mitsubishi Estate Logistics REIT Investment Corporation

45

Other Information
Information Required under Article 22(2)(d) of the EU Alternative Investment FundManagers Directive (AIFMD) Material Changes in Information Listed in Article 23 of AIFMD during the Financial Period

Risk Factors
An investment in the units of Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) involves
significant risks. The principal risks with respect to investment in MEL are as follows.

Covered by the Report (Fiscal period ended February 28, 2023 (September 1, 2022 to February
28, 2023))

The principal risks with respect to investment in MEL are as follows:

None.
















46

Any adverse conditions in the Japanese economy and the rest of the world could adversely affect MEL’s
business and results of operations;
MEL’s strategy of mainly investing in logistics facilities may entail risks uncommon to other J-REITs
that invest in a broader range of real estate or real estate-related assets;
Tightening monetary policies by the United States and other major countries, including a potential
switch to tightening monetary policy by Japan in the future, may result in increased market interest rates
in Japan and reduced cash distributions;
MEL may not close any or all of MEL’s anticipated acquisitions or dispositions of properties inconnection with acquisitions or dispositions MEL plans to make;
Increases in prevailing market interest rates could increase MEL’s interest expense and may result in a
decline in the market price of MEL’s units;
MEL faces significant and increasing competition in attracting tenants and it may be difficult to retain
existing tenants or find replacement tenants without reducing rents or incurring additional costs;
MEL may not be able to acquire properties to execute MEL’s growth and investment strategy in amanner that is accretive to earnings;
MEL’s reliance on Mitsubishi Estate Co., Ltd. and the Mitsubishi Estate Group companies could have amaterial adverse effect on its business;
MEL expects to rely on certain properties for a significant portion of its rental revenues;
The past experience of the Mitsubishi Estate Group in the Japanese real estate market is not an indicatoror guarantee of MEL’s future results;
The Asset Management Company manages multiple REITs and property funds and there are potential
conflicts of interest between MEL and other property funds managed by the Asset Management
Company;
There are potential conflicts of interest between MEL and certain Mitsubishi Estate Group companies,
including the Asset Management Company;
Any inability to obtain financing for future acquisitions or refinance MEL’s existing debt could
adversely affect the growth of MEL’s portfolio or financial condition;
MEL may suffer large losses if any of its properties incurs damage from a natural or man-made disaster,
acts of violence or war, or ancillary economic restrictions;

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Other Information
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Most of the properties in MEL’s portfolio are concentrated in the Tokyo metropolitan area and the
Osaka metropolitan area;
Security breaches and other disruptions could compromise MEL’s information and expose us toliability, which could cause its business and reputation to suffer;
MEL’s portfolio contains certain properties located on reclaimed land, which is subject to unique risks,
including land liquefaction;
Most of the logistics facilities in MEL’s current portfolio and anticipated portfolio cater to a single
tenant or a small number of tenants and are typically designed for a specific use, which may make it
difficult to find substitute tenants;
Illiquidity in the real estate market may limit MEL’s ability to grow or adjust MEL’s portfolio;
MEL’s policy to make distributions to its unitholders in excess of its retained earnings is subject touncertainties;
A high loan-to-value ratio, or LTV, may increase MEL’s exposure to changes in interest rates and havea material adverse effect on its results of operations;
A downgrading of MEL’s credit rating may affect its ability to refinance or newly issue investment
corporation bonds;
MEL relies on expert appraisals and engineering, environmental and seismic reports, which are subject
to significant uncertainties;
MEL’s performance depends on the efforts of key personnel of the Asset Management Company;
MEL’s failure to satisfy a complex series of requirements pursuant to Japanese tax regulations would
disqualify it from certain taxation benefits and significantly reduce its distributions to its unitholders;
MEL’s properties for which third parties hold leasehold interests in the land and own the buildings
thereupon may subject it to various risks;Some of the properties MEL owns or that it may acquire in the future may be held in the form of aproperty or trust beneficiary co-ownership interest, and its rights relating to such properties may beaffected by the intentions of other owners; andMEL is subject to increasing scrutiny from certain investors and regulations with respect toenvironmental, social and governance matters, which may adversely affect its ability to market its units
and increase its compliance costs.

In addition, MEL is subject to the following risks:

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risks related to liquidity and other limitations on MEL’s activities under debt financing agreements;
risks related to unforeseen loss, damage or injury suffered by a third party at MEL’s properties;risks related to investment in Japanese anonymous association (tokumei kumiai);
risks related to interests in some properties through preferred shares of Japanese special companies(tokutei mokuteki kaisha);risks related to entering into forward commitment contracts to acquire properties;risks related to any future borrowings or issuances of investment corporation bonds;
risks related to impairment loses in connection with MEL’s properties;risks related to decreases in tenant leasehold deposits and/or security deposits;risks related to MEL’s lack of control over operating costs;
risks related to loss of rental revenues in certain events;
risks related to certain lease agreements at multi-tenant properties;risks related to MEL’s cost of complying with regulations applicable to the properties MEL owns or
intends to acquire;risks related to any property defect or non-conformity;risks related to reliance on industry and market data;risks related to violation of earthquake resistance standards or other building codes;
risks related to the environmental assessments of MEL’s properties made prior to MEL’s ownership;
risks related to climate change;risks related to no legal, regulatory or market definition of, or standardizes criteria for, what constitutes
a “green,” “sustainable” or other equivalently labeled asset or framework;
risks related to unitholders’ limited control over changes in MEL’s investment policies;
risks related to MEL’s dependence on the performance of service providers;risks related to investment in properties with rooftop solar panels;risks related to the Asset Management Company’s limited experience in investing in and operating
industrial properties and land with leasehold interests for existing industrial facilities;risks related to properties outside of Japan;
risks related to tight supervision by the regulatory authorities against J-REITs and their asset managers;
risks related to disagreement by the Japanese tax authorities with the interpretations MEL used todetermine MEL’s taxable income for prior periods;
risks related to not being able to benefit from reductions in certain real estate taxes enjoyed by qualified
J-REITs;risks related to changes in Japanese tax laws;

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Other Information
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risks related to the treatment as a “passive foreign investment company” for U.S. federal income tax
purposes;risks related to the unitholders’ being subject to U.S. Foreign Account Tax Compliance Act
withholding;risks related to the possibility of being declared invalid or limited of MEL’s ownership rights in some ofits properties;risks related to loss of MEL’s rights in a property it owns or intends to acquire;risks related to holding properties through trust beneficiary interests;
risks related to important differences regarding the rights of unitholders in a J-REIT compared to thoseof shareholders in a corporation;risks related to AIFMD, UK AIFMD and ERISA;
risks related to future sales of units by MEL’s major unitholders;risks related to daily price range limitations imposed by Tokyo Stock Exchange;risks related to the Bank of Japan’s policy to buy J-REIT units;risks related to appraisal NAV of MEL’s units;risks related to geopolitical instability caused by the Russian invasion of Ukraine;risks related to sharp rise in oil, electricity, water and other commodity prices;
risks related to instability in the global financial system following the failure of major financial institutions,
including recent bank failures in the United States and other developed economies; andrisks related to uncertainty in the Bank of Japan’s policy as a new Governor of the Bank of Japan has
taken office in April 2023 as well as the effects of its policy on prevailing market interest rates.

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Other Information
Periodic disclosure for financial products referred to in Article 8, paragraphs 1, 2 and 2a, of Regulation(EU)2019/2088 and Article 6, first paragraph, of Regulation (EU) 2020/852
Product name: Mitsubishi Estate Logistics REIT Investment Corporation
Legal entity identifier: 353800YYSGZU31ICQK38
Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) promotes environmental andsocial characteristics, but does not have as its objective a sustainable investment within the meaningof Article 9(1) of Regulation (EU) 2019/2088. MEL has no employees in accordance with theprohibition on having employees under the Act on Investment Trusts and Investment Corporations ofJapan and relies on. Mitsubishi Jisho Investment Advisors, Inc. (the “Asset Management Company”),
to manage and operate the properties in MEL’s portfolio. The Asset Management Company and MEL
are hereinafter referred to collectively as “we,” “us” or “our” unless noted otherwise. In addition,
any “fiscal year” or “FY” hereinafter refers to the fiscal year beginning on April 1 of such year andending on March 31 of the following year.

Environmental and/or social characteristics
Did this financial product have a sustainable investment objective?
☐ Yes

☒ No

☐ It made sustainable investments with ☐ It promoted Environmental/Social (E/S)
an environmental objective: ___%
characteristics andwhile it did not have as its objective asustainable investment, it had a proportion of☐ in economic activities thatqualify____% of sustainable investments
as environmentallysustainable
under the EU Taxonomy☐ with an environmental objective in economic
activities that qualify as environmentally☐ in economic activities that do notsustainable under the EU Taxonomy
qualify as environmentally
sustainable under the EU☐ with an environmental objective in economic
Taxonomy
activities that do not qualify asenvironmentally sustainable under the EU
Taxonomy☐ with a social objective☐ It made sustainable investments with ☒ It promoted E/S characteristics, but did nota social objective: ____%
make any sustainable investments
To what extent were the environmental and/or social characteristics promoted by MEL met?
Headed by our sponsor, Mitsubishi Estate Co., Ltd. (together with its consolidated
subsidiaries and affiliates, the “Mitsubishi Estate Group”), the Mitsubishi Estate Group, to which webelong, implements initiatives on the four key themes of Environment, Diversity & Inclusion,
Innovation and Resilience. Pursuant to the Mitsubishi Estate Group’s long-term management vision,
Mitsubishi Estate Group Sustainable Development Goals 2030, the Mitsubishi Estate Group is
working to contribute to achieving a sustainable society by addressing environmental, social and52

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Other Information
governance, or ESG, issues while providing significant and growing value to a wider range ofstakeholders.
We follow the Mitsubishi Estate Group’s ESG management principles, and we proactively
implement ESG initiatives. Following its establishment of an ESG policy in February 2019, the AssetManagement Company, in collaboration with the Mitsubishi Estate Group, has implemented thefollowing ESG initiatives. Our ESG policy includes our basic policy on how we can contribute to theenvironment, improve our work environment, ensure effective compliance and governance, achievetransparent ESG disclosure and collaborate with each stakeholder on ESG matters.
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Environmental initiatives – climate change response. We implement energy-saving
measures and take steps to reduce greenhouse gas emissions in our portfolio. Towards
these ends, we have installed LED lighting and rooftop solar panels in our properties
along with implementation of renewable energy. We also track energy consumption,
solar power generation and greenhouse gas (“GHG”) emission levels in our portfolio.
Furthermore, we display posters that raise awareness on energy-saving measures incommon areas of our properties.

Environmental initiatives – water and waste management. We seek to reduce water
consumption by installing devices and appliances such as water meters, water-efficient
toilets and smart irrigation systems. We also track water consumption and the recycling
rate in our properties. Moreover, we strive to reduce waste in cooperation with tenants
by promoting 3R (reduce, reuse and recycle) waste programs.

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Environmental initiatives - certification of our properties. To track the environmental
performance of our properties, we rely on certifications issued by third-party
organizations, such as the Development Bank of Japan’s (“DBJ”) Green Building
certification, the Comprehensive Assessment System for Built Environment Efficiency(“CASBEE”) certification, the Building Energy-efficiency Labeling System (“BELS”)
certification, and other equivalent certifications.

Social initiatives – tenants. We endeavor to improve tenant health, safety and comfort
by undertaking renovation work in response to varying needs, and by expanding tenant
support services to help serve such needs. We have established restaurants andconvenience stores on our premises and installed amenities such as shower rooms andmultipurpose restrooms. Our properties are also equipped with disaster-relief vending
machines, secure reserves containing food and beverage in case of emergency, andautomated external defibrillators (”AED”).
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Social initiatives - local communities. We build and maintain good relations with local
residents, governments and other community members by providing and ensuring apleasant and safe environment. We support local communities in the event of disasters
by providing our properties as municipality-designated disaster evacuation sites. We also
participate in community service activities such as community clean-up events with local
residents.

Social initiatives – employee satisfaction. We are committed to respecting thefundamental rights and diversity of our employees, and we endeavor to establish anenvironment that supports a healthy work-life balance. To help achieve these goals, wehave introduced flexible working hours, a defined contribution pension plan and various
leave programs that are tailored to varying needs and circumstances.

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Social initiatives – human resources development. The Asset Management Company
develops human resources with extensive expertise and know-how by offering various
training programs, on topics such as compliance, human rights, risk management andsustainability. We also encourage employees to pursue professional qualifications thatassist them in honing their skills as real estate asset management professionals, and we
subsidize the costs required to obtain and maintain such qualifications.

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Other Information●

How did the sustainability indicators perform?

We use the following indicators to measure the attainment of the E/S characteristics wepromote:
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Environmental initiatives – reduction of GHG emissions.We aim to reduce GHG
emissions by 42% by FY2030 and to achieve net zero by FY2050 from a base year
of FY2021. We classify our annual GHG emissions into three categories: scope 1,
scope 2 and scope 3. In addition to tracking our GHG emissions, we also set a target
to reduce GHG emission intensity by 30 % by FY2030, the latter of which decreasedby 7.1% from FY2019 to FY2020 and by 17.0% from FY2020 to FY2021. In thefiscal period ended February 28, 2023, as a part of our ongoing implementation ofenvironmental initiatives, we installed LED lighting to properties in our portfolio as
needed, discussed how to better utilize renewable energy and reviewed ourelectricity purchase agreements. As a part of these initiatives, we switched to RE100,
meaning 100% of electricity used is generated from renewable energy, at MJ
Logipark Sendai 1 in February 2022.
Environmental initiatives – reduction of energy consumption intensity. We aim to
reduce energy consumption intensity by 15% by FY2030 from a base year of
FY2017. We classify our annual energy consumption into two categories: gas andfuel consumption, and electricity consumption. In addition to tracking our energy
consumption levels, we also track our renewable energy production, as well as ourenergy consumption intensity, the latter of which decreased by 3.2% from FY2019
to FY2020, and by 15.0% from FY2020 to FY2021. In the fiscal period ended
February 28, 2023, as a part of our ongoing implementation of environmental
initiatives, we installed LED lighting to properties in our portfolio as needed.
Environmental initiatives – water management. We have set a target not increasing
our water consumption level until FY2030 from a base year FY2017. In addition to
tracking our water supply usage, we also track our water consumption intensity, thelatter of which decreased by 10.1% from FY2019 to FY2020 and by 10.8% fromFY2020 to FY2021. In the fiscal period ended February 28, 2023, we engaged in

reducing our water consumption by introducing automated water meter reader,water-saving toilets and smart irrigation equipment.
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Environmental initiatives – waste management. We aim to achieve a recycling rateof 70% or higher by FY2030. The recycling rate was 63.4%, in FY2020 and 62.3%,
in FY2021, respectively. In addition to tracking our recycling rate, we also track theamount of waste discharged by weight. In the fiscal period ended February 28, 2023,
as a part of our ongoing waste management initiative, we implemented our thoroughwaste recycling management at each property of our portfolio.

Environmental initiatives - certification of our properties. We have set a target ofachieving a portfolio of which 100% constitutes “Green Buildings” by FY2030. We
consider a property to be a Green Building if it receives a CASBEE certification, a
BELS certification or a DBJ Green Building certification. As of August 31, 2022,
87.6% of our properties were Green Buildings based on gross floor area. As of
February 28, 2023, 88.8% of our properties were Green Buildings based on grossfloor area. In the fiscal period ended February 28, 2023, as a part of our ongoingenvironmental initiatives, we continued improving environmental performance ofour properties and obtaining environmental certificates at our properties byenhancing energy efficiency and utilizing renewable energy.

Social initiatives – tenants. We conduct surveys on a regular basis to measuresatisfaction amongst our tenants. These surveys are conducted either in person or in
the form of a questionnaire. These surveys help formulate future measures that will
help improve tenant health, safety and comfort, and inform our decision-making ona day-to-day basis. For example, as a result of these surveys, we have introduced
thermal cameras and AEDs in Logicross Nagoya Kasadera and LOGIPORT
Sagamihara, as well as measures to prevent damage to property caused by birds in
Logicross Nagoya Kasadera, MJ Logipark Fukuoka 1 and some others. In addition,
we consider and integrate our tenant’s needs and feedbacks in renovations of ourproperties. We conducted a separate survey among the tenants in MJ Logipark
Fukuoka 1 before renovating the lounge. Based on the results of this survey, we
installed amenities such as large TVs, microwave ovens and free Wi-Fi in the lounge
area, and we also redesigned the layout of the lounge area to facilitate individual use.

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Other Information
While we conduct tenant satisfaction surveys on a regular basis, we did not conduct
such surveys during the fiscal periods ended February 28, 2023 and August 31, 2022.
However, we have continuously improved our properties in order to enhance ourtenants’ satisfaction. In the fiscal period ended August 31, 2022, we implemented
the following measures;
Property Name
All logistics facilities
MJ Logipark Fukuoka 1
Logicross Nagoya Kasadera
LOGIPORT Sagamihara
MJ Logipark Osaka 1

MeasureDistributing salt candy for tenants in properties
as a preventive measure for heatstroke
Equipment for repelling birds(i)Installing bird nets, (ii)installing air purifiersin the lounge area
Installing thermal camera
Switching to LED entire building

In the fiscal period ended February 28, 2023, we implemented the following
measures;
Property Name
Logicross Nagoya KasaderaMeasureInstalling disaster prevention stockpiles in theelevators

Social initiatives - local communities. We assess our performance in this area bylooking at the frequency with which we implement community service programs andactivities such as community clean-up events around our properties with local
residents and around our office with local workers, and the designation bymunicipalities of our properties as disaster evacuation sites such as disastercooperation building and tsunami evacuation building. In the fiscal period ended
February 28, 2023, we conducted clean-up projects around the neighborhood of
Logicross Atsugi and the Asset Management Company’s office.

●Social initiatives – employee satisfaction. We conduct a survey to measure employee
satisfaction on an annual basis and strive to increase our ratio of female managers,which stands at 13.8% as of April 1, 2023. From July 2022 to August 2022, we hireda third party survey agency and conducted an employee satisfaction survey on an
anonymous basis, of which results showed 89% of our employees were satisfied ormoderately satisfied with overall working conditions at the Asset Management
Company. As a part of our ongoing initiatives to improve employee satisfaction andcommunications with us, we encourage one-on-one check-ins between employees
and their managers and conduct monthly survey on employee conditions, which wecall condition pulse survey, and annual interview with the human resources
department. As a measure to combat and eliminate workplace harassment, we
provide annual training on harassment prevention to promote better understandingof workplace harassment and reporting policies among our management andemployees, and to help create workplace environment where everyone can feel safe
and comfortable while performing their job. In FY2022, we held our annual training
on harassment prevention in August 2022. Furthermore, we continuously work tokeep our employees informed and up-to-date on the Asset Management Company’scode of conduct guidelines, the “interpretation about code of conducts toimplementing MJIA values,” which contributes to forming common enterprise value
among our employees. We held a training on this code of conduct guidelines inAugust 2022. Moreover, we have set an annual target of 90% of paid leave to betaken by our employees. In addition to tracking the rate of employees taking paid
leave, we also track our employee turnover rate and our rate of employees returning
to work after taking childcare leave, the latter of which stand at 5.9% for FY2022
and 94.1% as of April 1, 2023, respectively.

…and compared to previous periods?
See above.

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What were the objectives of the sustainable investments that the financial product partiallymade and how did the sustainable investment contribute to suchobjectives?
Not applicable.

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Other Information●

How did the sustainable investments that the financial product partially made notcausesignificant harm to any environmental or social sustainable investment objective?

investment decision and in the management process throughout the lifecycle of the properties in our
portfolio.

Not applicable.

What were the top investments of this financial product?

How did this financial product consider principal adverse impacts on sustainability factors?
We consider principal adverse impacts of our investment decisions on sustainability factors.
To this end, we collect on an ongoing basis select information on our existing portfolio regarding theprincipal adverse impact indicators, including exposure to fossil fuels through investment assets,
exposure to energy-inefficient investment assets and energy consumption intensity. We aim to
manage the risk connected to principal adverse impacts from our investment decisions in several ways,
including general screening criteria and due diligence.
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Exposure to fossil fuels through assets. We do not invest in real estate assets involved in
the extraction, storage, transport or manufacture of fossil fuels.

Exposure to energy-inefficient investment assets. We consider properties other than thosethat we consider to be Green Buildings to be energy-inefficient. As of February 28, 2023,
11.2% of our properties were not Green Buildings based on gross floor area, as comparedto 12.4% as of August 31, 2022. We implement as appropriate measures to reduce theirenvironmental impact following acquisition, including by obtaining environmental
certifications such as DBJ, BELS or CASBEE. We are steadily working toward acquiringsuch certifications so that 100% of our logistics properties will be Green Buildings.

Energy consumption intensity. Energy consumption intensity of the properties in our
portfolio was 46.78 kWh/m2 in FY2019, 45.30 kWh/m2 in FY2020 and 38.49 kWh/m2
in FY2021.

Largest investments

Sector

Logistics facilities
OthersReal estate
Real estate% Assets(based on acquisition
price)
94.5%
5.5%

Country
Japan
Japan

What was the proportion of sustainability-related investments?
As of August 31, 2022, 87.6% of the properties in the portfolio were Green Buildings, and12.4% were nonqualified assets based on gross floor area. As of February 28, 2023, 88.8% of theproperties in the portfolio were Green Buildings, and 11.2% were nonqualified assets based on grossfloor area. In the fiscal period ended February 28, 2023, we continued improving environmental
performance of our properties and obtaining environmental certificates at our properties by enhancing
energy efficiency and utilizing renewable energy. Our target is to achieve a portfolio of which 100%(excluding properties where we own only the underlying land) constitutes Green Buildings by
FY2030, and we plan to further increase the number of such assets by continuing to acquire Green
Building certifications for the buildings in our properties.

We believe that investment decisions that negatively affect climate or other environmentrelated resources, or have negative implications for society, can have a significant impact on andpresent risks to unitholder value. To this end, we consider the principal adverse impacts of ourinvestment decisions on the above sustainability factors to be a key factor in making a comprehensive

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Other Information● What was the share of investments made in transitional and enabling activities?
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What was the asset allocation?

Not applicable.
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88.8% is #1 Aligned with
E/S characteristics#1B Other E/Scharacteristics

Investments of MEL
11.2% qualifies as #2 Other

How did the percentage of investments that were aligned with the EU Taxonomy comparewith previous reference periods?
Not applicable.

What was the share of sustainable investments with an environmental objective not aligned with
the EU Taxonomy?
Not applicable.

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In which economic sectors were the investments made?

We aim to build a stable and long-lasting portfolio through selective investments in highly
competitive logistics facilities that meet tenant needs. It is our policy for logistics facilities to makeup at least 80% of our portfolio, and for other types of properties related to or compatible with logistics
facilities to make up no more than 20% of our portfolio based on acquisition price. It is also our policy
for properties located in the Tokyo metropolitan area (which consists of Tokyo, Kanagawa, Saitama,
Chiba and Ibaraki prefectures) to make up at least 50% of our portfolio, and for properties locatedelsewhere in Japan to make up no more than 50% of our portfolio based on acquisition price.

What was the share of socially sustainable investments?
Not applicable.

To what extent were the sustainable investments with an environmental objective aligned with the
EU Taxonomy?
Not applicable.
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Did the financial product invest in fossil gas and/or nuclear energy related activities
complying with the EU Taxonomy?
Not applicable. MEL does not invest in real estate assets involved in fossil gas and/or nuclear
energy-related activities.

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What investments were included under “other,” what was their purpose and were there any
minimum environmental or social safeguards?
As of August 31, 2022, 12.4% of our properties were not Green Buildings based on grossfloor area. As of February 28, 2023, 11.2% of our properties were not Green Buildings based on grossfloor area. The Asset Management Company’s investment decision-making process involves
assessment of material ESG-related risks and opportunities to ensure that our sustainable investment
strategy is implemented. ESG-related risks that are assessed include risks pertaining to earthquakes,
flooding, soil contamination and hazardous substances. With each acquisition opportunity, the AssetManagement Company and we review ESG-related due diligence findings and take into account theacquisition of environmental certifications or future potential to obtain them and energy efficiency
assessment.
As we invest by comprehensively taking into account various factors including E/S, we may
acquire properties that are not Green Buildings in exceptional cases. However, with respect to logistics
properties, we have confirmed through due diligence that such properties are still ESG-conscious
because we regularly acquire properties from the Mitsubishi Estate Group, which emphasizes ESG
considerations in its investment strategy. When we acquire a logistics property that is not a Green
Building, we implement appropriate measures to reduce the environmental impact following
acquisition.

As described in greater detail above and our website, we implement various social initiatives
at our properties including the following:
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How did this financial product perform compared to the reference benchmark?
Not applicable. No specific index has been designated as reference benchmark to determine
whether MEL is aligned with the environmental and/or social characteristics that it promotes
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Reduction of GHG emissions;
Reduction of energy consumption intensity;
Water and waste management; andCertification of our properties.

How does the reference benchmark differ from a broad market index?
Not applicable.

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What actions have been taken to meet the environmental and/or social characteristics during thereference period?
As described in greater detail above, we implement various environmental initiatives at our
properties including the following:

Tenant satisfaction;
Contribution to local communities;
Employee satisfaction;
Human resource development;
Diversity and inclusion; andHuman rights.

How did this financial product perform with regard to the sustainability indicators todetermine the alignment of the reference benchmark with the environmental or social
characteristics promoted?
Not applicable.

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How did this financial product perform compared with the reference benchmark?
Not applicable.

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How did this financial product perform compared with the broad market index?
Not applicable.

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