Summary of Financial Results for the Fiscal Period Ended February 28, 2022 (REIT)
Name of Issuer:
Stock Exchange Listing:

Mitsubishi Estate Logistics REIT
Investment Corporation (“MEL”)
Tokyo Stock Exchange

Securities Code:3481

Website:https://mel-reit.co.jp/en/

Representative:

Ken Takanashi, Executive Director

Asset Management Company:
Representative:
Inquiries:

Mitsubishi Jisho Investment Advisors, Inc.
Tetsuya Masuda, President & CEO
Ken Takanashi, Executive Officer, General Manager,
Logistics REIT Management Department
Tel. +81-3-3218-0030

Scheduled Date of Filing of Securities Report:
Scheduled Date of Commencement of Distributions Payments:

May. 30, 2022
May. 20, 2022

Supplementary Materials for Financial Results:
Investors and Analysts Meeting:

Yes
Yes

April 15, 2022

(Values are rounded down to the nearest million yen)
1. Financial Results for the Fiscal Period Ended February 28, 2022 (11th Fiscal Period) (from Sept. 1, 2021 to Feb. 28, 2022)(1) Operating Results(Percentages indicate change from the previous period)

Operating revenues
Operating income
Ordinary income
Net income% Millions of yen% Millions of yen% Millions of yen%
Fiscal period ended Millions of yen
Feb. 28, 2022
5,028
1.5
2,640
3.3
2,541
6.7
2,540
6.7
Aug. 31, 2021
4,953
17.8
2,555
15.9
2,382
14.9
2,381
14.9

Ratio of ordinary income Ratio of ordinary income
to total assets
to operating revenues
Fiscal period ended
Yen
%
%
%
Feb. 28, 2022
6,495
2.2
1.4
50.5
Aug. 31, 2021
6,108
2.2
1.4
48.1
Note: MEL issued new investment units of 41,000 units and 1,898 units on Mar. 5, 2021 and Apr. 6, 2021, respectively. For the fiscal
period ended Aug. 31, 2021, net income per unit is calculated by dividing net income by the day-weighted average number ofinvestment units outstanding during the period 389,872 units.
Net income per unit

(2) Distributions

Return on unitholders’EquityDistributions
per unit
Distributions
Ratio of
Total amount of
Total amount
Total amount of per unit
Payout(excluding
distributions
distributions SCD per unitof distributions
SCD(including
ratio
surplus cash
to net assets(including SCD)
(excluding SCD)
SCD)
distributions(“SCD”))
Yen Millions of yen
Yen Millions of yen
Yen Millions of yen
Fiscal period ended%%
Feb. 28, 2022
6,495
2,540
679
265
7,174
2,806 100.0
2.2Aug. 31, 2021
6,089
2,381
675
264
6,764
2,645 100.0
2.1
Notes:
1. Total amount of SCD are the refund of investment, which falls under the distributions through reduction in unitholders’ capital undertaxation law.
2. The ratio of net asset value attributable to a reduction in unitholders’ paid-in capital for the fiscal periods ended Aug. 31, 2021 andFeb. 28, 2022, is 0.003 and 0.002, respectively. The payment of SCD is deemed a return of capital. This calculation methodology is
pursuant to Article 23, Paragraph 1, Item 4 of the Act on Special Measures Concerning Taxation.
3. With the issuance of new investment units conducted in the fiscal period ended Aug. 31, 2021, the payout ratio is calculated using
the following formula.
Payout ratio = Total amount of distributions (excluding SCD)/Net income ×100

(3) Financial Position
Total assets
Fiscal period ended
Feb. 28, 2022
Aug. 31, 2021

Net assets

Millions of yen
180,403
181,206

Millions of yen
116,305
116,410

Cash flows fromoperating activities
Millions of yen
4,273
4,252

Cash flows frominvesting activities
Millions of yen(154)(28,171)

Unitholders’ equity tototal assets

%
64.5
64.2

Net assets per unit
Yen
297,352
297,621(4) Cash Flows
Fiscal period ended
Feb. 28, 2022
Aug. 31, 2021

Cash flows from
Cash and cash equivalents
financing activities
Millions of yen
Millions of yen
12,217(3,545)
11,64326,0902. Forecasts for the Fiscal Periods Ending Aug. 31, 2022 (from Mar. 1, 2022 to Aug. 31, 2022) and Feb. 28, 2023 (fromSept. 1, 2022 to Feb. 28, 2023)(Percentages indicate change from the previous period)
Distribution
Distributions
s per unit
Operating revenues Operating income Ordinary income
Net income
per unit(including(excluding
SCD)
SCD)
Millionsof%Millionsof%Millionsof%Millions
of
%
Yen
Yen
Fiscal period ending
yen
yen
yen
yen
Aug. 31, 2022
6,198
3,332 26.2
2,958 16.4
2,957 16.4
23.3
7,307
6,574
Feb. 28, 2023
6,224
0.4
3,279 (1.6)
3,101 4.8
3,100
4.8
7,628
6,890
(Reference) Forecasted net income per unit for the fiscal period ending Aug. 31, 2022: 6,574 yen
Forecasted net income per unit for the fiscal period ending Feb. 28, 2023: 6,890 yen

SCD*Other(1) Changes in accounting policies, accounting estimates, or restatements(a) Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes(b) Changes in accounting policies due to other reasons:None(c) Changes in accounting estimates:
None(d) Restatements:
None(2) Total number of investment units issued and outstanding(a) Total number of units issued and outstanding at the end of the fiscal period (including treasury units)
As of Feb. 28, 2022
391,135 units
As of Aug. 31, 2021
391,135 units(b) Number of treasury units at the end of the fiscal period
As of Feb. 28, 2022
0 units
As of Aug. 31, 2021
0 units
Note: Please refer to “Notes Concerning Per Unit Information” on page 23 for the based calculation for the forecasted net
income per unit.

*Implementation Status of Statutory Audit
At the time of this financial report, the audit procedures for the financial statements pursuant to the Financial
Instruments and Exchange Act have not been completed.
*Explanation on the Appropriate Use of the Forecast of Financial Results and Other Matters of Special Consideration
The forward-looking statements in this material are based on information currently available to us and on certain
assumptions that we believe are reasonable. Actual operating performance may differ substantially due to various
factors. Furthermore, those statements shall not be deemed a guarantee or any commitment of the amount of
future distributions and SCD. Please refer to “Forecast Assumptions for the Fiscal Periods Ending Aug. 31, 2022 andFeb. 28, 2023” on page 7 for assumptions regarding forward-looking statements.
Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Yen
733
738

Index1. Results of Operations(1) Results of Operations ...................................................................................................................................................................... 2(A)Overview of the Current Fiscal Period …....................................................................................................................................... 2(i) Major Operational Results of MEL ........................................................................................................................................... 2(ii) Investment Environment and Operational Results of the Current Fiscal Period……………………………………….......................... 2(iii) Overview of Financing ............................................................................................................................................................ 3(iv) ESG Initiatives ………………......................................................................................................................................... 3(v) Overview of Financial Results and Distributions .................................................................................................................... 4(B) Outlook for the Next Fiscal Period ........................................................................................................................................ 4(i) Future Management Policies ………………................................................................................................................................... 4(ii) Significant Subsequent Events ................................................................................................................................................ 5(iii) Earnings Forecast ................................................................................................................................................................... 6(2) Risk Factors ……..………………….......................................................................................................................................................... 9
2. Financial Statements(1) Balance Sheet .................................................................................................................................................................................. 10(2) Statement of Income and Retained Earnings .................................................................................................................................. 12(3) Statement of Changes in Net Assets................................................................................................................................................ 13(4) Statement of Cash Distributions...................................................................................................................................................... 14(5) Statement of Cash Flows ................................................................................................................................................................. 15(6) Notes Concerning Going Concerns Assumption .............................................................................................................................. 15(7) Notes Concerning Significant Accounting Policies …....................................................................................................................... 16(8) Notes on Changes in Accounting Policies ……………........................................................................................................................... 17(9) Notes on Changes in Display method ……......................................................................................................................................... 17(10) Notes Concerning Financial Statements ........................................................................................................................................ 17(11) Change in Number of Investment Units Issued and Outstanding .................................................................................................. 25
3. Reference Information(1) Composition of MEL’s Assets .......................................................................................................................................................... 27(2) Investment Assets …………................................................................................................................................................................ 27(A) Major Components of Investment Securities…………………………………..…………………………………………………………………………………… 27(B) Investment Properties ………………………………….…………………………………..…………………………………………………………………………………… 27(C) Other Major Investment Assets………………………………………………………..…………………………………………………………………………………… 27(i) Overview of Portfolio ................................................................................................................................................................. 28(ii) Overview of Properties……………………………….……………………………………………………………………………………..................................... 30(iii) Overview of Tenant Agreements ………………..…….…………………………………................................................................................. 32(iv) Overview of Appraisal Reports …….......................................................................................................................................... 34(v) Information Regarding Major Real Estate Properties ………....................................................................................................... 36(vi) Information Regarding Major Tenants…………………………………………………………………………......................................................... 36(vii) Property Distribution ……………………………………………………………………………………………………....................................................... 37(viii) Details of Collateral ……...……………………………………………………………………………………………....................................................... 39(ix) Capital Expenditure for Owned Properties………..…………………………………………………………......................................................... 39(x) Overview of Property Leasing and Status of Operating Income …..…………………………………....................................................... 40-1-

1. Results of Operations(1) Results of Operations(A)Overview of the Current Fiscal Period(i) Major Operational Results of MEL
Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) was established on July 14, 2016 under the“Act on Investment Trust and Investment Corporation” (“Investment Trust Law”), and was listed on the REIT
Securities Market of the Tokyo Stock Exchange on September 14, 2017 (securities code: 3481).
Mitsubishi Estate Co., Ltd. (“MEC”), one of the largest comprehensive developers in Japan, acting as a sponsor.
MEL focuses on investing in logistics facilities. MEL’s asset management company, Mitsubishi Jisho Investment
Advisors, Inc. (“Asset Management Company” or “MJIA”) has boasting an extensive track record in real estate
fund management since its establishment in 2001. Through “HYBRID” (Note) utilization of the strengths of bothcompanies, MEL aims for maximization of unitholder value by striving for the building of a high-quality portfolioand steady and stable asset management as a listed real estate investment corporation investing mainly in
logistics facilities. Focusing on “location”, ”building features” and “stability,” we aim to build a long-term andstable portfolio through selective investments in highly competitive logistics facilities that meet tenant needs.
Furthermore, MEL announced its management policy based on the “Three Pillars” on April 17, 2019, as amanagement plan designed to maximize unitholder value in the medium- to long-term. The management policy
is intended to gather the entire MEC Group to work together and improve unitholder value of MEL, focusing on
the following three pillars: Alignment (align interest with unitholders), Discipline (disciplined growth) and Hybrid(enhance MEL’s unique strategy, the hybrid model).
MEL owned 22 properties (aggregate acquisition price: 170,404 million yen), at the end of the reporting fiscal
period (Feb. 28, 2022).
Note: ”HYBRID,” as in the English term “hybrid” meaning a combination of two things, is used in the context of utilization of
the strengths of MEC and MJIA to refer to the strengths of both companies being utilized creatively and at times
combined depending on the situation and thereby making the most of these in the management of MEL.

(ii) Investment Environment and Operational Results of the Current Fiscal Period
During the reporting fiscal period ended February 2022, the Japanese economy began to recover from the fullcancellation of the state of emergency for COVID-19 at the end of September 2021. However, the economic
recovery kept getting better and then worse again as a result of rising resource prices, anticipation of higher
interest rate and a rapid expansion of highly infectious variant: "Omicron". Although the economy is expected
to slowly recover as economic activities are resuming with the progress in COVID-19 vaccination, it is necessary
to closely monitor trends in geopolitical risks such as the situation in Ukraine and trends in the financial andcapital markets going forward. The actual GDP (gross domestic product) for the fourth quarter of 2021 (fromOct. to Dec.) recorded a positive growth for the first time in two quarters with 4.6% increase on an annualizedbasis backed by the increase in personal consumption and corporate capital investment, etc.
In the real estate transaction market, domestic and overseas investors remain willing to invest due to factors
such as the size of one of the largest markets in Asia and lower funding rates compared to other countries, andtransactions are also active even in the COVID-19 pandemic. In addition, we will need to closely monitor theinterest rate trends. However, investors continue to look for potential investment opportunities and cap rates oflogistics facilities remain low due to stable cash flow. Recently, long-term bond yields have been fluctuated witha temporary decline related to geopolitical risks such as the situation in Ukraine. Nevertheless, attention should
continue to be paid to long-term interest trends associated with inflation and uncertainty about the outlook forthe economy as a whole.
Although J-REIT market remained weak due to concerns about the deterioration of the credit market due tothe China Evergrande liquidity crisis and rising domestic long-term interest rates from September to November
2021, it recovered in a positive response to long-term interest rates that remains steady at a low level in
December 2021. Since the beginning of 2022, the market has continued to show heavy upward pressure due tothe spread of the Omicron variant and concerns over a rise in domestic and overseas interest rates. Within
2021, the trend of TSE REIT Index was from 2,000 points to around 2,100 points. From the beginning of 2022,
however, it temporarily fell below 1,800 points due to concerns about the quantitative tightening of U.S.
finances. Since February of this year, volatility has been rising due to the deterioration of the situation in
Ukraine. Although the adjustment since the beginning of 2022 has come to a pause recently, we believe it will
be necessary to continue to closely monitor the increase in volatility associated with the deterioration of thereal estate leasing market, risk-off caused by geopolitical risks, and changes in the interest rate environment.
In the logistics facilities market, a rapid increase of e-commerce use has drawn attention and further increasein demand for logistics facilities is expected, driven by the increased online-based consumption and inventories.
Under these circumstances, the demand for logistics facilities continues to be strong and vacancy rates remain-2-low, despite a large volume of new supply. Although the trend of new supply is expected to continue, tenantleasing activities for properties under development are proceeding well, and no significant impact is expectedon MEL’s portfolio.
As of the end of the reporting fiscal period (Feb. 28, 2022), MEL owned 22 properties (aggregate acquisition
price: 170,404 million yen) and the occupancy rate remained high, at 99.6%.
(iii) Overview of Financing
During the reporting fiscal period (Feb. 28, 2022), MEL successfully refinanced short-term loan of 500 million
yen with a repayment date of Sept. 1, 2021 and long-term loan of 2,211 million yen with a repayment date of
Sept. 14, 2021. Moreover, MEL prepaid short-term loan of 900 million yen with cash on hand including
consumption tax refund for the properties acquired during fiscal period ended Aug. 31, 2021 on Dec. 9, 2021.
As of the end of the reporting fiscal period (Feb. 28, 2022), the balance of MEL’s interest-bearing debt was
58,374 million yen and MEL’s loan-to-value ratio (the ratio of aggregate balance of interest-bearing debt to
MEL’s total assets, hereinafter “LTV”) was 32.4%.
MEL’s credit rating as of the end of the reporting fiscal period (Feb. 28, 2022) was as follows:
Rating Agency
Rating Object
RatingOutlookJapan Credit Rating Agency, Ltd.
Long-term issuer rating
AAPositive(iv) ESG Initiatives
MEL is committed to endeavoring to enhance consideration towards the environment, social contributions
and corporate governance to improve the sustainability of society. We recognize that this is an important social
responsibility for a listed enterprise to assume, and also believe that it is essential for maximizing our unitholder
value. In addition, MJIA established the Sustainability Committee in February 2019 with the aim of improving
sustainability and enhancing unitholder value on a company-wide basis. In January 2022, it was raised to aformal committee, and in April 2022, the Sustainability Management Office was established to appoint person in
charge. In these ways, our commitment to sustainability has been enhanced and clarified further.
In December 2021, MJIA expressed support for the recommendations of the Task Force on Climate-Related
Financial Disclosures (TCFD) (Note 1) and joined the TCFD Consortium, a group of domestic companies that
support TCFD recommendations. MEL will continue to share the sustainability objectives, and continues toembed sustainability into our business with MJIA.
In December 2021, MEL identified important issues (materiality) related to ESG that need to be addressed insustaining its business model in order to achieve sustainable growth and increase corporate value over the
medium to long term, and established policies, targets, and key performance indicators (KPIs) for eachmateriality. MEL recognizes that risks and opportunities related to climate change are of paramount importanceto its business, and is promoting efforts to reduce carbon emissions and further information disclosure. In
January 2022, we published our first Sustainability Report. MEL’s main KPIs and targets in key materiality andthe progress is as follows.
Targets (by FY 2030)
Achievement status
30% reduction (based on FY
CO2 emissions intensity (t-CO2/m2)
21.3% reduction (FY2020)
2017)
Energy consumption intensity
15% reduction (based on FY
9.7% reduction (FY2020)(kWh/m2)
2017)
Water consumption intensity
No increase (based on FY 2017) 18.9% reduction (FY2020)(m3/m2)
Waste recycling rate
70% or more
63.4% reduction (FY2020)
Green building certification (Note 2)
100%
87.6% (As of March 4, 2022)
acquisition rate (Note 3)
Our efforts for sustainability were highly evaluated in the 2021 survey of the Global Real Estate Sustainability
Benchmark (GRESB) Real Estate Assessment (Note 4), and it received the highest "5 Stars" for the second
consecutive year and the "Green Star" for the third consecutive year. Furthermore, in the 2021 GRESB
Disclosure Assessment, which measures the level of enhancement of ESG information disclosure, we received
an "A" rating, the highest level for two consecutive years, in recognition of our excellence in disclosing
information on environmental considerations and sustainability initiatives.

Notes:
1. "TCFD(Task Force on Climate-related Financial Disclosures" is an international initiative established by the Financial Stability-3-

Board (“FSB”) at the request of the G20 for the purpose of discussing the disclosures of climate-related financial informationand the responses by financial institutions.. In addition, TCFD Consortium was established for the purpose of encouraging
companies and financial institutions that endorse TCFD to work together to promote initiatives, to effectively disclose
corporate information, and to discuss efforts to link disclosed information to appropriate investment decisions by financial
institutions, etc.
2. "Green Building Certification" refers to either DBJ Green Building certification, BELS assessment or CASBEE real estatecertification.
3. "Green Building Certification acquisition rate" is calculated based on total floor area of properties, excluding land.
4. "GRESB Real Estate Assessment" is a benchmark assessment that measures the sustainability considerations of real estatecompanies and investment managers established by the European pension fund group. It is used by major institutional
investors in Europe, the United States, and Asia when selecting investment targets, etc. "Green Star" ratings are awarded
to companies that excel in both the "management component" and "performance component" of sustainability assessment.

(v) Overview of Financial Results and Distributions
As a result of these investment activities and financings, MEL generated operating revenues of 5,028 million
yen, operating income of 2,640 million yen, ordinary income of 2,541 million yen, net income of 2,540 million
yen and distributions per unit of 7,174 yen for the reporting fiscal period.
MEL’s distributions for the reporting fiscal period were 6,495 yen per unit, which included MEL’s profit
distributions in deductible expenses in accordance with the Section 1 of Article 67-15 of the Act on Special
Taxation Measures Law (a customary practice of J-REITs). The distribution amount was determined to distributeall unappropriated retained earnings for the reporting period, excluding fractions less than one yen. MEL
declared the distribution amount of 2,540,421,825 yen which was the amount equivalent to the maximum
integral multiples of number of investment units issued and outstanding (391,135 investment units) as of thereporting fiscal period.
In addition to the above distributions arising from earnings, MEL intends to regularly distribute cash in excessof the amount of retained earnings (“Regular Surplus Cash Distributions”) in each fiscal period in accordancewith MEL’s distribution policy set forth in its articles of incorporation (Note 1). Furthermore, to maintain thestability of MEL’s distributions per unit in the event that it is expected that an amount of distributions per unit
temporarily decreases by a certain degree due to financing actions or incurrence of large repair andmaintenance, MEL may decide to make distributions as one-time surplus cash distributions (“One-time Surplus
Cash Distributions,” collectively with the Regular Surplus Cash Distributions, “SCD”).
Accordingly, MEL made Regular Surplus Cash Distributions of 265,580,665 yen, equivalent to 30% of MEL’s
depreciation expense for the reporting fiscal period and the total amount of SCD per unit for the reporting fiscal
period was 679 yen.

Notes:
1.

2.

However, MEL may decide not to make any surplus cash distributions for a fiscal period based on a consideration of factors
such as economic or real estate market conditions and MEL’s, financial condition or the amount of anticipated profitability,
which includes capital gains arising from property dispositions. In addition, MEL does not plan to pay surplus cash
distributions from the perspective of continuing stable financial management, in case such payment would cause theAppraisal LTV (Note 2), as defined below, to exceed 60%.
Appraisal LTV (%) = A /B (%)
A = Total interest bearing liabilities on the balance sheet for the fiscal period related to the operating period in question(excluding tax loan) + Reversal from security deposit reserves (excluding cases where security deposits are refunded
according to leasing agreements with tenants)
B = Total assets on the balance sheet for the fiscal period related to the operating period in question – Book value after
depreciation of real estate held in the fiscal period in question + Total appraisal value of real estate held in the fiscal
period in question – Total cash distributions to be paid in the next operating period – Total surplus cash distributions
to be paid in the next operating period(B) Outlook for the Next Fiscal Period(i) Future Management Policies
MEL aims to build a high-quality portfolio and manage assets in a stable and steady manner, and eventually tomaximize unitholder value, through selective investments in highly competitive logistics facilities that meettenant needs with a focus on “location,” “building features” and “stability” and considered sustainability, basedon the accumulated expertise of Mitsubishi Estate Group.
a. External Growth Strategy
MEL aims to achieve stable and steady external growth (hybrid external growth) by utilizing both the realestate development track record accumulated as a comprehensive developer of Mitsubishi Estate that MEL
enters into sponsor support agreements with, its ability to develop and operate modern and state-of-the-art
logistics facilities that capture various development strategies and tenant needs and the Asset Management-4-Company’s ability to select investment projects (discernment) and its acquisition strategy through flexible anddiverse schemes in line with market and environmental changes.
b. Internal Growth Strategy
MEL aims to achieve internal growth that maximizes the value of properties and contributes to MEL’s steady
growth by making the most of MEC’s leasing capability based on relationships with a wide variety of corporate
customers fostered as a comprehensive real estate developer and MJIA’s capability to stably manage logistics
facilities backed by its track record of fund management (hybrid internal growth).
c. Financial Strategy
MEL lays the foundation on long-lasting stable financial management leveraging MEC Group’s expertise infinancial strategy and credibility cultivated over the long term, and controls LTV in consideration of growthpotential. In addition, MEL is committed to efficient cash management in order to achieve improvements inunitholder value.
(ii) Significant Subsequent Events
Issuance of New Investment Units
MEL issued new investment units based on the resolution made by the board of directors on Feb. 7, 2022
and Feb. 16, 2022 and the payment was completed on Mar. 1, 2022 and Mar. 23, 2022 for the issuance of new
investment units through public offering and third-party allotment, respectively.
<Issuance of New Investment Units through Public Offering>Number of units issued: 56,000 units
Issue price: 406,965 yen per unit
Total amount issued: 22,790,040,000 yen
Issue amount: 393,608 yen per unit
Net proceeds: 22,042,048,000 yen
Payment date
: Mar. 1, 2022
<Issuance of New Investments Units through the Third-Party Allotment>
Number of units issued: 2,800 units
Issue amount: 393,608 yen per unit
Net proceeds: 1,102,102,400 yen
Payment date
: Mar. 23, 2022
Allotee: SMBC Nikko Securities Inc.
(Reference Information)
Property Acquisition
MEL acquired the following properties from the settlement date (Feb. 28, 2022) on and after.
Category

Property Name

LOGIPORT Kawasaki Bay (45% trust
Logistics beneficiary co-ownership interest)
Facilities
Logicross Atsugi ll

Location
Kawasaki,Kanagawa
Atsugi,
Kanagawa

Acquisition Price(Millions of yen)

36,0009,838

Total
Note: Not disclosed as the seller’s consent has not been obtained.

45,838-5-Acquisition
Date
Mar. 1,
2022-

SellerDomestic business company(Note)
Domestic business company(Note)-

(iii) Earnings Forecast
Forecasts for the fiscal period ending August 31, 2022 (from Mar. 1, 2022 to Aug. 31, 2022) are follows.

Operating revenues Operating income Ordinary income

Distributions
Distributions
per unit
Net income
per unit(including(excluding
SCD)
SCD)
Millions of yen
Yen
Yen
2,957
7,307
6,574

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Aug. 31, 2022
6,198
3,332
2,958
(Reference)
Fiscal period ending Feb. 28, 2022: Expected number of investment units outstanding at the end of the period: 449,935 units;
Expected net income per unit: 6,574 yen

SCD
Yen
733

Forecasts for the fiscal period ending February 28, 2023 (from Sept. 1, 2022 to Feb. 28, 2023) are follows.
Operating revenues Operating income Ordinary income

Distributions
Distributions
per unit
Net income
SCD
per unit(including(excluding per unit
SCD)
SCD)
Millions of yen
Yen
Yen
Yen
3,100
7,628
6,890
738

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Feb 28, 2022
6,224
3,279
3,101
(Reference)
Fiscal period ending Aug. 31, 2022: Expected number of investment units outstanding at the end of the period: 449,935 units;
Expected net income per unit: 6,890 yen

The forecast information is calculated based on the assumptions described in “Forecast Assumptions for the Fiscal
Periods Ending Aug. 31, 2022 and Feb. 28, 2023”.
Note: Forecast calculations are based on the assumptions as of the date hereof. Actual operating revenues, operating income, ordinary
income, net income, distributions per unit (excluding SCD), and SCD per unit may vary due to changes in MEL’s operational
environment and circumstances. Therefore, these forecasts should not be deemed a commitment or guarantee of the amount of
future cash distributions.

-6-Forecast Assumptions for the Fiscal Periods Ending Aug. 31, 2022 and Feb. 28, 2023

Items
Accounting
PeriodAssumption
 Fiscal period ending Aug. 31, 2022 (12th fiscal period): From Mar. 1, 2022 to Aug. 31, 2022 (184 days)
 Fiscal period ending Feb. 28, 2023 (13th fiscal period): From Sept. 1, 2022 to Feb. 28, 2023 (181 days)
 In addition to its 22 properties MEL owned as of Feb. 28, 2022 (“Properties Owned as of the End of
11th Fiscal Period”), MEL acquired LOGOPORT Kawasaki Bay (45% co-beneficiary interest) andLogicross Atsugi II on Mar. 1, 2022 (“Properties Acquired during the 12th Fiscal Period”), andcurrently MEL owns 24 properties.
Assets Under  It is assumed there will be no material change (including acquisition of new properties andManagement
dispositions of existing properties) in the operational status of the 24 properties MEL owned as ofApr. 15, 2022, up until Feb. 28, 2023.
 The actual results may change due to the acquisition of new properties or the disposition of existing
properties, etc.
 Operating rental revenues take into account factors such as market trends and the competitiveness,
etc. of each property based on information provided by the seller of the Properties Acquired during
the 12th Fiscal Period and operating result held by the Asset Management Company for the
Operating
Properties Owned as of the End of 11th Fiscal Period.
Revenues It is assumed tenants will pay rents without delinquency or withholding.
 The forecasts of operating revenues are made on the assumption that there will be no profit or loss
from sale of real estate.
 Main items regarding operating expenses are as follows:(Millions of yen)
Fiscal Period Ending
Fiscal Period Ending
Aug. 31, 2022
Feb. 28, 2023
Total Operating Rental Expenses
2,140
2,168
Facility Management Fee
286
285
Utilities Cost
148
163
Repair and Maintenance Expenses
93
96
Property Taxes
474
475
Depreciation
1,100
1,108
Total General and Administrative Expenses
725
777
Asset Management Fee
525
591
OperatingSponsor Support Fee
109
107
Expenses Of operating rental expenses, which is the main operating expense, expenses except depreciation arecalculated by taking into account various factors based on historical data.
 Property taxes and city planning taxes are generally included in the purchase price of properties on a
pro-rata basis of the calendar year and will begin to be expensed from the following calendar year.
Accordingly, property taxes and city planning taxes for the Properties Acquired in 12th Fiscal Period
will be expensed starting from the fiscal period ending Aug. 31, 2023.
 For building repair expenses, the amount assumed to be necessary for each property is based on the
repair and maintenance plans of the Asset Management Company. However, repair expenses may
differ substantially from the anticipated amount due to unexpected factors. For building repair
expenses, the amount assumed to be necessary for each property is based on the repair andmaintenance plans of the Asset Management Company. However, repair expenses may differ
substantially from the anticipated amount due to unexpected factors.
 For the fiscal period ending Aug. 31, 2022, it is assumed that 374 million yen will be incurred as nonoperating expenses, which includes 179 million yen for interest expenses and other debt-related
costs and 195 million yen in relation to the offerings of the new investment units and issuance of the
Non-operating
investment corporation bonds.
Expenses For the fiscal period ending Feb. 28, 2023, it is assumed that 178 million yen will be incurred as nonoperating expenses, which includes 178 million yen for interest expenses and other debt-related
costs.

-7-

Interestbearing Debt

Investment
Units

Distributions
Per Unit(excluding
SCD)

SCD Per Unit

 The balance of MEL’s interest-bearing debt on an accounting basis as of today is 82,074 million yen.
 It is assumed that MEL will repay the short-term debt of 2,000 million yen obtained on Mar. 1, 2022
using cash on hand including the proceeds of tax refund during the fiscal period ending Feb. 28, 2023.
 The total expected amount of interest-bearing debt at the end of the fiscal periods ending Aug. 31,
2022 and Feb. 28, 2023 is estimated to be 82,074 million yen and 80,074 million yen, respectively.
 LTV at the end of the fiscal periods ending Aug. 31, 2022 and Feb. 28, 2023 is estimated to be 36.0%
and 35.4%, respectively. For LTV calculation, please refer to the following formula. The ratios arerounded to the nearest tenth:
LTV (%) = interest-bearing debt / total assets × 100 (%)
 It is assumed that the number of investment units currently issued and outstanding will not change up
until Feb. 28, 2022. Currently, there are 449,935 units issued and outstanding.
 Distributions per unit (excluding SCD) and SCD per unit for the fiscal periods ending Aug. 31, 2022 andFeb. 28, 2023 are calculated based on 449,935 investment units, which is the total number ofinvestment units expected to be issued and outstanding at the end of the fiscal periods ending Aug.
31, 2022 and Feb. 28, 2023.
 Distributions per unit (excluding SCD) are calculated based on the premise of the distribution policyin the Articles of Incorporation of MEL.
 Distributions per unit (excluding SCD) may change due to various factors including any additional
acquisitions or dispositions of properties, changes in rent revenues attributable to tenant moves,changes in the property management environment including unexpected repair etc.
 SCD per unit are calculated based on the assumption that the cash distributions will be distributed inaccordance with the fund distribution policy of the Articles of Incorporation of MEL. It is assumed thatthe total amount of SCD will be 329 million yen for the fiscal period ending Aug. 31, 2022 and 332
million yen for the fiscal period ending Feb. 28, 2023, respectively. There is no distribution from
temporally differences adjustment allowance.
 The amount of depreciation expenses may change depending on the amount of total assets undermanagement, ancillary costs, capital expenditure, the allocation method of purchase prices for each
asset and depreciable life, etc. Surplus cash distributions, which will be based on the amount ofdepreciation expenses, may change accordingly.
 There may be cases where MEL implements distribution of cash in surplus of the distributable amountto investors on the basis of financial statements related to cash distribution approved under the Act
on Investment Trusts and Investment Corporations (Act No. 198 of June 4, 1951, as amended) if theboard of directors of MEL deems such distribution to be appropriate (1) in light of the economic
environment, real estate market, lease market or other trends; (2) when the amount of income fails
to meet the amount equivalent to 90% of distributable income; (3) when the distribution amount fails
to meet the requirements for the Special Provisions for Taxation on Investment Corporations; or (4) inother ways to maximize the interest of investors. When MEL implements distribution of cash insurplus of the distributable amount, it limits the amount to the total of the amount of income for theoperating period in question and the amount stipulated under laws and ordinances (inclusive of therules of the Investment Trusts Association, Japan).
 For the time being, MEL intends to target a level of surplus cash distributions on an ongoing basis at
an amount equivalent to approximately 30% of the depreciation expense for the relevant fiscal
period. Furthermore, to maintain the stability of MEL’s distributions per unit in the event that an
amount of distributions per unit temporarily decreases due to a series of financing actions such as
the issuance of new investment units (including investment unit third-party allotment) or large scale
repair and maintenance, which may result in a temporary dilution of investment units or incurrenceof large expenses, MEL may make distributions as one-time surplus cash distributions. However, MEL
may decide not to make any surplus cash distributions for a fiscal period based on a consideration offactors such as economic or real estate market conditions and MEL’s, financial condition or theamount of anticipated profitability, which includes capital gains arising from property dispositions.
 In addition, in the event that MEL needs to allocate its cash to emergency capital expenditures forunexpected damages on MEL’s assets, etc., surplus cash distributions per unit may be reduced. MEL
does not plan to pay surplus cash distributions from the perspective of continuing stable financial
management, in case such payment would cause the Appraisal LTV (Note), as defined below, toexceed 60%.
(Note) Appraisal LTV (%) = A /B (%)
A = Total interest bearing liabilities on the balance sheet for the fiscal period related to the operating
period in question (excluding tax loan) + Reversal from security deposit reserves (excluding cases-8-Others

where security deposits are refunded according to leasing agreements with tenants)
B = Total assets on the balance sheet for the fiscal period related to the operating period in question– Book value after depreciation of real estate held in the fiscal period in question + Total appraisal
value of real estate held in the fiscal period in question – Total cash distributions to be paid in thenext operating period – Total surplus cash distributions to be paid in the next operating period
 It is assumed that no any revision that will have an impact on the forecast information above will bemade with regard to the laws and regulations, tax system, accounting standards, listing rules of theTokyo Stock Exchange and rules of the Investment Trusts Association, Japan, etc.
 It is assumed that no unexpected material change will arise in overall economic trends and real estatemarket conditions, etc.

(2) Risk Factors
No significant changes have occurred to the risk factors since the most recent Securities Report (filed on Nov. 29,2021) and the Securities Registration Statement (filed on Feb. 7, 2022); therefore, their descriptions are not stated
here.

-9-

2. Financial Statements(1) Balance Sheet
Thousands of yen
As ofAugust 31, 2021
ASSETS
Current assets:
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other current assets
Total current assets

February 28, 2022

5,380,624
6,836,890
38,45722,284
1,890

4,669,730
6,973,856
43,411
21,978594,077
12,303,054

Fixed assets:
Property and equipment
Buildings in trust
Less: accumulated depreciation
Buildings in trust, net
Structures in trust
Less: accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Less: accumulated depreciation
Machinery and equipment in trust, net*1*1

Tools, furniture and fixtures in trust
Less: accumulated depreciation
Tools, furniture and fixtures in trust, net

69,323,806(4,572,054)
64,751,752
2,413,488(126,726)
2,286,761
202,323(24,328)
177,994
28,674(4,392)
24,281

Land in trust
Total property and equipment
Intangible assets
Software
Other intangible assets
Total intangible assets
Investments and other assets
Deferred tax assets
Long-term prepaid expenses
Security deposit

101,608,148
168,848,938

Total investments and other assets
Total fixed assets
Total assets-10-

12,280,146*1

69,433,894(5,420,209)
64,013,685*1
2,415,040(150,817)
2,264,223
202,323(35,872)
166,450
33,200(7,116)26,083
101,608,148
168,078,592

2,035
591
2,626

1,085
541

11
41,711
10,00051,722
168,903,287

14
33,33910,00043,354
168,123,573

181,206,341

180,403,720

1,626

Thousands of yen
AsAugust 31, 2021
LIABILITIESOperating accounts payable
Short-term loans payable
Long-term loans payable due within one year
Accounts payable
Distributions payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Advances received
Deposits received
OthersTotal current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities

February 28, 2022

306,660
1,400,000
2,211,000
11,1594,808
566,362826
877,391
63,77196
5,442,075

189,127
3,310,000
12,754
4,632
647,119904
281,822876,14383
5,322,587

2,000,000
53,663,000
3,691,040

2,000,000
53,064,000
3,712,060
58,776,060

59,354,040
64,796,116

64,098,648

NET ASSETS
Unitholders’ equity
Unitholders’ capital
Unitholders’ capital, gross
Deduction from unitholders’ capital
Unitholders’ capital, net
SurplusRetained earnings
Total surplus
Total unitholders’ equity
Total net assets*2

Total liabilities and net assets

115,191,501(1,162,998)
114,028,503

115,191,501(1,427,014)

2,381,722

2,540,583

2,381,722
116,410,225
116,410,225

2,540,583
116,305,071
116,305,071
180,403,720

181,206,341-11-

113,764,487*2

(2) Statement of Income and Retained Earnings
Thousands of yen
For the fiscal period ended
For the fiscal period from For the fiscal period from
Mar. 1, 2021 to
Sept. 1, 2021 toAug. 31, 2021
Feb. 28, 2022

Operating revenues:
Operating rental revenues
Other rental revenues
Total operating revenues
Operating expenses:
Expenses related to property rental business
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
Compensation income for damage or loss
Refund of Property taxes
Reversal of distributions payable
Total non-operating income
Non-operating expenses:
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of organization expenses
Investment unit issuance expenses
Investment corporation bond issuance expenses
Reduction entry of tangible fixed assets
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

-12-

*1
*1

4,720,745
232,341
4,953,086*1*1

4,798,577
230,320
5,028,898*1

1,801,259
398,037
1,558
21,662
2,400
101,640
70,591
2,397,151
2,555,935*1

1,744,322
475,962
1,570
17,686
2,400
102,961
43,502
2,388,405
2,640,493

55
829
604
2,284
3,773

57
36,387
737
37,182112,251
5,343
3,959
4,032
35,343111,309
6,916
2,899
-

16,411
177,341
2,382,367
2,382,367
834
4
839
2,381,528
193
2,381,722

15,157
136,283
2,541,392
2,541,392
913
(3)
909
2,540,482
101
2,540,583

(3) Statement of Changes in Net Assets
The Reporting Period (from Sept. 1, 2021 to Feb. 28, 2022)
Thousands of yen
Unitholders' equity
Unitholders' capital

Total net
assets

Deduction ofunitholders’capitalUnitholders’capital, net

Unappropriat
ed retained
earnings

Total surplus

Totalunitholders'equity115,191,501△1,162,998

114,028,503

2,381,722

2,381,722

116,410,225

116,410,225-(264,016)(264,016)--(264,016)(264,016)---(2,381,621)(2,381,621)(2,381,621)(2,381,621)

-

-

-

2,540,482

2,540,482

2,540,482

2,540,482-(264,016)(264,016)

158,861

158,861(105,154)(105,154)*1 115,191,501(1,427,014)

113,764,487

2,540,583

2,540,583

116,305,071

116,305,071

Unitholders’capital, grossBalance as of Sept.
1, 2021
Change during theperiodDistributions inexcess of retained
earnings
Dividends ofsurplus
Net income
Total change during
the period
Balance as of Feb.
28, 2022

SurplusThe Previous Period (from Mar. 1, 2021 to Aug. 31, 2021)
Thousands of yen
Unitholders' equity
Unitholders' capital

Balance as of Mar. 1,
2021
Change during theperiodIssuance of new
investments
Distributions inexcess of retained
earnings
Dividends ofsurplus
Net income
Total change during
the period
Balance as of Aug.
31, 2021

Surplus

Total net
assetsUnitholders’capital, gross

Deduction ofunitholders’capitalUnitholders’capital, net

Unappropriat
ed retained
earnings

Total surplus

Totalunitholders'equity98,444,036(931,072)

97,512,964

2,073,248

2,073,248

99,586,213

99,586,213

16,747,464-

16,747,464--

16,747,464

16,747,464-(231,925)

-

-

-

-

(231,925)--

2,381,528(2,073,054)

2,381,528(2,073,054)(231,925)-(2,073,054)(231,925)

2,381,528(2,073,054)

16,747,464(231,925)

16,515,539

308,473

308,473

16,824,012

16,824,012*1 115,191,501(1,162,998)

114,028,503

2,381,722

2,381,722--13-

2,381,528

116,410,225 116,410,225

(4) Statement of Cash Distributions
Yen
For the fiscal period from
Mar. 1, 2021 toAug. 31, 2021

For the fiscal period from
Sept. 1, 2021 toFeb. 28, 2022

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

2,381,722,226
264,016,125

265,580,665

III. Distributions(Distributions per unit)
Of which, distributions of retained earnings(Of which, distributions in retained

2,645,637,140(6,764)
2,381,621,015

2,806,002,490(7,174)2,540,421,825(6,089)(6,495)

264,016,125

265,580,665

(675)

(679)

101,211

162,064円

earnings per unit)
Of which, distributions in excess ofretained earnings(Of which, distributions in excess ofretained earnings per unit)
IV. Retained earnings carried forward
Calculation method of distribution amount

2,540,583,889

Pursuant to the “Policy on the Pursuant to the “Policy on theDistribution of Funds” as defined in Distribution of Funds” as defined in
Article 35, Paragraph 1 of the Articles of Article 35, Paragraph 1 of the Articles ofIncorporation,theamountof Incorporation,theamountofdistributions shall be the amount which distributions shall be the amount which
does not exceed the amount of profits does not exceed the amount of profits
but exceeds 90% of the distributable but exceeds 90% of the distributableprofit as defined in Article 67-15 of the profit as defined in Article 67-15 of theSpecial Taxation Measures Act. Based on Special Taxation Measures Act. Based on
the policy, MEL declared distribution the policy, MEL declared distribution
amount of 2,381,621,015 yen. This amount of 2,540,421,825 yen. This
amount was equivalent to the maximum amount was equivalent to the maximum
integral multiples of number of integral multiples of number ofinvestment units issued and outstanding investment units issued and outstanding(391,135 units) as of the end of fiscal (391,135 units) as of the end of fiscal
period. Based on the distribution policy as period. Based on the distribution policy as
defined in Article 35, Paragraph 2 of the defined in Article 35, Paragraph 2 of the
Articles of Incorporation, MEL shall make Articles of Incorporation, MEL shall make
Surplus Cash Distributions (SCD), defined Surplus Cash Distributions (SCD), defined
as distributions in excess of retained as distributions in excess of retained
earnings, as a return of unitholders’ earnings, as a return of unitholders’capital, each fiscal period on a continuous capital, each fiscal period on a continuous
basis. Accordingly, MEL declared SCD of basis. Accordingly, MEL declared SCD of
264,016,125 yen as a return of 265,580,665 yen as a return ofunitholders’ capital, which was the unitholders’ capital, which was theamount equivalent to approximately 30% amount equivalent to approximately 30%
of depreciation expense.
of depreciation expense.
Note: MEL is permitted to distribute cash in excess of the amount of retained earnings if the amount of the accounting income is smaller than
90% of its distributable retained earnings on a tax basis to the extent that such distribution amount does not exceed the amount of
MEL’s depreciation for the same fiscal period, and if MEL determines that such excess distribution amount is appropriate.

-14-(5) Statement of Cash Flows

Cash flows from operating activities:
Income before income taxes
Depreciation
Investment unit issuance expenses
Investment corporation bond issuance expenses
Interest income
Interest expenses
Interest expenses on investment corporation bonds
Reversal of distributions payable
Compensation income for damage or loss
Loss on reduction entry of tangible fixed assets
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 intrust
Repayments from tenant leasehold and security deposits
in trust
Net cash provided by 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 from long-term loans payable
Proceeds from issuance of investment corporation bonds
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 period
Cash and cash equivalents at the end of period

Thousands of yen
For the period ended
For the fiscal period from
For the fiscal period from
Mar. 1, 2021 to
Sept. 1, 2021 toAug. 31, 2021
Feb. 28, 2022
2,382,367
882,10335,343
16,411(55)
112,251
5,343(2,284)(14,832)
615,612(628)
1,003
41,049(10,191)
67,176
161,834
67,8024,360,307
55(107,225)(924)
4,252,212

2,541,392
887,512(29,046,707)(175,529)
35,200-(57)
111,309
6,916(737)(36,387)
15,157
4,954
594,077(306)
8,371(58,169)
1,595
83,773281,822(1,248)(44,444)
4,395,532
57(121,243)(835)
4,273,511

895,083(14,179)(20,172)*1(6) Notes Concerning Going Concerns Assumption
Not applicable-15-(28,171,796)(154,509)

3,500,000(4,100,000)
10,300,000
1,983,588
16,712,121(2,072,871)(231,878)
26,090,959
2,171,375
9,472,211
11,643,587(1,400,000)
2,711,000(2,211,000)(2,381,210)(263,864)(3,545,074)
573,927
11,643,587
12,217,514*1

(7) Notes Concerning Significant Accounting Policies
1. Method of depreciation of non-current
assets(1) Property and equipment
Property and equipment are stated at cost. Depreciation of property andequipment, including property and equipment in trust, is calculated by thestraight-line method over the estimated useful lives as follows:
Buildings
2-63 years
Structures
10-58 years
Machinery and equipment
8-12 years
Tools, furniture and fixtures 3-15 years(2) Intangible assets
Intangible assets are stated at cost. Amortization of intangible assets, including
intangible assets in trust, is calculated by the straight-line method over the

2. Accounting method of deferred charges
3. Revenue and expense recognition

4. Cash and cash equivalents as stated in theStatement of Cash Flows
5. Other basic matters for preparing financial
statements

estimated useful lives.
(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
Not applicable.
(1) Recognition standard for revenues
Details of the main performance obligations related to revenues arising fromcontracts with customers of MEL and the normal timing at which such
performance obligations are satisfied (the normal timing for recognizing revenue)
are as follows.
(a)Sale of real estate
Income from the sale of real estate is recorded as income when the buyer,
who is the customer, acquires control of the relevant real estate by fulfillingthe obligation of delivery stipulated in the contract for the sale of real estate.
(b)Utilities charge
Revenues from utilities are recorded according to the supply of electricity,water, etc. to the lessee who is the customer based on the lease contract forreal estate, etc. and the agreement incidental thereto.
Among the revenue from utilities, if the tenant is determined as an agent by
MEL, the net amount obtained by deducting the amount to be paid to the otherparty from the amount received as electricity and gas charges supplied by theother party is recognized as revenue.
(2) Accounting treatment of property taxes and other taxes
With respect to property taxes, city planning taxes and depreciable asset taxes,of the tax amount assessed and determined, the amount corresponding to therelevant fiscal period is accounted for as rental expenses.
Of the amounts paid for the acquisitions of real estate properties or beneficiaryright in trust of real estate, the amount equivalent to property taxes is capitalized
as part of the acquisition cost of the relevant property instead of being charged
as an expense.
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 andrealizable with a maturity of three months or less when purchased and that are
subject to insignificant risks of changes in value.
Accounting treatment of trust beneficiary interests of real estate
As to trust beneficiary interests of real estate, all accounts of assets andliabilities within assets in trust, as well as all income generated and expenses
incurred from assets in trust, are recorded in the relevant balance sheets andincome statement accounts. Of which, the following significant trust assets areshown separately on the balance sheet.
(a) Cash and deposits in trust(b) Buildings in trust, structures in trust, machinery and equipment in trust,
tools in trust, furniture and fixtures and land in trust(c) Tenant leasehold and security deposits in trust-16-(8) Notes on Changes in Accounting Policies
Application of Accounting Standard for Revenue Recognition
The "Accounting Standard for Revenue Recognition" (Accounting Standard Board of Japan ("ASBJ") Statement No. 29,
March 31, 2020; hereinafter the "Revenue Recognition Accounting Standard") has been applied from the beginning of
the fiscal period ended Feb. 28, 2022. Under this accounting standard, revenue is recognized in an amount expected tobe received in exchange for goods or services when control of promised goods or services is transferred to a customer.
There is no impact from this change on the fiscal period ended Feb. 28, 2022.
In accordance with the transitional treatment outlined in Paragraph 89‐3 of Accounting Standard for Revenue
Recognition, the note related to the Revenue Recognition for the previous fiscal period is not presented.
(9) Notes on Changes in Display Method
Application of Accounting Standard for Fair Value Measurement
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafter the "Fair
Value Measurement Accounting Standard") has been applied from the beginning of the fiscal period ended Feb. 28,
2022. In accordance with the transitional treatment provided for in Paragraph 19 of the “Accounting Standard for Fair
Value Measurement” and Article 44–2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019), the Fair Value Measurement Accounting Standard will henceforth be applied on an ongoing basis. Thereis no impact from this change on the fiscal period ended Feb. 28, 2022.
In accordance with the provisions of Article 2, Paragraph 5 of the Supplementary Provisions of the Cabinet Office
Ordinance for Partial Revision of the Ordinance on Terminology, Forms, and Preparation Methods of Financial
Statements, etc. (Cabinet Office Ordinance No. 61, September 24, 2021), the matters listed in Article 8-6-2, Paragraph
1, Item 3 of the Ordinance on Terminology, Forms, and Preparation Methods of Financial Statements, etc. after therevision have been omitted.
(10) Notes Concerning Financial Statements(Notes Concerning Balance Sheet)*1 Reduction entry of tangible fixed assets

Buildings in trust
Structures in trust

Aug. 31, 2021

Thousands of yen
As of31,2207,008

Feb. 28, 2022

31,22022,166*2 Minimum net assets as required by Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
Aug. 31, 2021

Thousands of yen
As of50,000-17-

Feb. 28, 2022
50,000(Notes Concerning Statement of Income and Retained Earnings)*1 Operating income from property leasing is as follows:

Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2021 to
Sept. 1, 2021 toAug. 31, 2021
Feb. 28, 2022

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

4,533,464
187,280
4,720,745

4,606,378
192,198
4,798,577

144,882
87,458232,341
4,953,086

151,770
78,550230,320
5,028,898

208,222407,913
7,306
142,071
131,715881,103
3,676
19,251
1,801,259
3,151,826

212,078
407,631
7,202
62,387
144,931886,5123,710
19,867
1,744,322
3,284,575(Notes Concerning Statement of Unitholders’ Equity)

For the fiscal period from
Mar. 1, 2021 toAug. 31, 2021

For the fiscal period from
Sept. 1, 2021 toFeb. 28, 2022

Number of investment units authorized

10,000,000 units

10,000,000 units

Number of investment units issued andoutstanding

391,135 units

391,135 units(Notes Concerning Statement of Cash Flow)*1. Relationship between cash and cash equivalents in statement of cash flows and accounts and amounts in theaccompanying balance sheet

Cash and deposits

Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2021 to
Sept. 1, 2021 toAug. 31, 2021
Feb. 28, 2022
5,380,624
4,669,730

Cash and deposits in trust

6,973,856

6,836,890

Cash and cash equivalents

11,643,587

12,217,514(Notes Concerning to Lease Contracts)
Operating lease transactions (as lessor)
Unearned rental revenue

Due within one year

Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2021 to
Sept. 1, 2021 toAug. 31, 2021
Feb. 28, 2022
8,951,097
8,732,265

Due after one year

58,945,497

55,564,422

Total

67,677,762

64,515,520-18-

(Notes Concerning Financial Instruments)
1. Overview(1) Policy for Financial Instruments
MEL procures funds for the acquisition of assets and repayment of debt mainly through bank loans, issuance ofinvestment corporation bonds or the issuance of new investment units.
In borrowing funds or issuance of investment corporation bonds, MEL takes consideration in interest rate trend,
debt cost, floating or fixed interest rate, borrowing or issuance period and repayment or redemption date.
In the case of borrowing, the lender shall be limited to qualified institutional investors as stipulated in Article 2,
Paragraph 3, Item of the Financial Instruments and Exchange Act of Japan (limited to institutional investorsprescribed in Article 67-15 of the Taxation Special Measures Law), with in principle no collateral / no guarantee.
However, MEL may provide assets as collateral in consideration of financing environment and economic
conditions. In addition, in order to flexibly procure the necessary funds related to MEL's operation such as
property acquisition and repayment debt financing, MEL may enter into the overdraft agreements, commitmentline agreements or conclude the reserved 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.
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 and other types of risks. There was no derivative transactions during the reporting period.
(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 and monitoring cash flows projection, such risks are maintained under control. In addition, some loans
bear floating interest 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 rate loans.
The security deposits which MEL has received from the tenants are exposed to liquidity risk due to cancelationof lease agreement before the maturity date. In the case of trust beneficiary interest in real estate, MEL securessafety by accumulating a portion in the trust account, and in the case of real estate, leasehold rights of real estate,and superficies, 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 andanticipating the fund 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.
2. Estimated Fair Value of Financial Instruments
The book value, fair value and differences between the values as of Aug. 31, 2021 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 because of lack of materiality.
Thousands of yen
Book value(1) Long-term loans payable due within one

Fair value (Note 1)

Difference

2,211,000

2,211,276

276(2) Investment corporation bonds

2,000,000

2,035,749

35,749(3) Long-term loans payable

53,663,000

54,043,474

380,474

Total liabilities

57,874,000

58,290,500

416,500

year(Note) Methods to estimate fair values of financial instruments(1) Long-term loans payable due within one year, (2) Investment corporation bonds 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 be 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 shortperiod of time, the fair value is approximately equal to the book value. Thus, the book value is used.

-19-

The book value, fair value and differences between the values as of Feb. 28, 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 because of lack of materiality.
Thousands of yen
Book value(1) Long-term loans payable due within one

Fair value (Note 1)

3,310,000

year

Difference

3,316,298

6,298(2) Investment corporation bonds

2,000,000

1,973,800(26,200)(3) Long-term loans payable

53,064,000

53,888,893

824,893

Total liabilities

58,374,000

59,178,991

804,991(Note 1) Methods to estimate fair values of financial instruments(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 be 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 shortperiod of time, the fair value is approximately equal to the book value. Thus, the book value is used.
(2) Investment corporation bonds
Calculated based on the reference values published by the Japan Securities Dealers Association.
(Note 2) Repayment schedule for debt after Aug. 31, 2021
Thousands of yen
Due within one Due after one to Due after two to Due after three Due after four
to five years
year
two years
three years
to four years
Long-term loans payable due
within one year
Investment

corporationbonds
Long-term loans payable
Total

Due after fiveyears

2,211,000

-

-

-

-

-

-

-

-

-

-

2,000,000-

3,310,000

6,540,000

5,900,000

4,970,000

32,943,000

2,211,000

3,310,000

6,540,000

5,900,000

4,970,000

32,943,000

Due within one Due after one to Due after two to Due after three Due after four
to five years
year
two years
three years
to four years

Due after five
years

Repayment schedule f or debt after Feb. 28, 2022
Thousands of yen

Long-term loans payable due
within one year
Investment

corporationbonds
Long-term loans payable
Total

3,310,000

-

-

-

-

-

-

-

-

-

-

2,000,000-

6,540,000

4,550,000

6,320,000

5,010,000

30,644,000

3,310,000

6,540,000

4,550,000

6,320,000

5,010,000

32,644,000(Notes Concerning Investment Securities)
For the periods ended Aug. 31, 2021 and Feb. 28, 2022
Not applicable(Notes Concerning Derivative Transactions)
For the periods ended Aug. 31, 2021 and Feb. 28, 2022
Not applicable(Notes Concerning Retirement Payment)
For the periods ended Aug. 31, 2021 and Feb. 28, 2022
Not applicable-20-

(Notes Concerning Deferred Tax Accounting)
1. Primary components of deferred tax assets and deferred tax liabilities

Thousands of yen
As ofAug. 31, 2021
Enterprise tax payable
Subtotal deferred tax assets
Total deferred tax assets
Net deferred tax assets

Feb. 28, 2022
11
11
11
11

14
14
14
14

2. Reconciliations of major items that caused differences between statutory tax rate and effective tax rate after applying
Deferred tax accounting
For the fiscal period ended
Aug. 31, 2021
Feb. 28, 2022
Statutory tax rate
31.46%
31.46%
Adjustments:
Deductible cash distributions(31.45%)(31.45%)
Other
0.03%
0.02%
Actual effective income tax rate
0.04%
0.04%

(Notes Concerning Equity Earnings of Affiliate Companies)
For the periods from Mar. 1, 2021, to Aug. 31, 2021, and from Sept. 1, 2021, to Feb. 28, 2022
Not applicable(Notes Concerning Related Party Transaction)
1. Transactions with Account Balances with the Parent company and Major Unit Holders
For the periods from Mar. 1, 2021, to Aug. 31, 2021, and from Sept. 1, 2021, to Feb. 28, 2022
Not applicable
2.

Transactions and Account Balances with Affiliates
For the periods from Mar. 1, 2021, to Aug. 31, 2021, and from Sept. 1, 2021, to Feb. 28, 2022
Not applicable

3.

Transactions and Account Balances with Companies under Common Control
For the periods from Mar. 1, 2021, to Aug. 31, 2021, and from Sept. 1, 2021, to Feb. 28, 2022
Not applicable

4.

Transaction and Account Balances with Board of Directors and Individual Unitholders
For the periods from Mar. 1, 2021, to Aug. 31, 2021, and from Sept. 1, 2021, to Feb. 28, 2022
Not applicable(Notes Concerning Asset Retirement Obligations)
For the periods ended Aug. 31, 2021 and Feb. 28, 2022
Not applicable-21-

(Notes Concerning Rental Properties)
MEL owns logistics facilities for leasing for the purpose of earning rental income. The book value, changes during thereporting fiscal period and fair value of the properties are as follows:
Thousands of yen
For the fiscal period from
For the fiscal period from
Mar. 1, 2021 to
Sept. 1, 2021 toAug. 31, 2021
Feb. 28, 2022

Book value (Note 1)
Balance at the beginning of the period

140,675,424

168,848,938

Changes during the period (Note 2)

28,173,514(770,346)

Balance at the end of the period

168,848,938

168,078,592

Fair value at the end of the period (Note 3)
189,300,000
191,520,000(Note 1) Book value is calculated by deducting accumulated depreciation from acquisition cost.
(Note 2)The increase for the fiscal period ended Aug. 31, 2021 was primarily a result of acquiring new properties for a total of
28,886,168 thousand yen. The decrease was primarily a result of the recognition of depreciation, which amounted to881,103 thousand yen. The increase for the fiscal period ended Feb. 28, 2022 was primarily a result of the recognition of
CAPEX which amounted 131,323 thousand yen. The decrease was primarily a result of the recognition of depreciation, whichamounted to 886,512 thousand yen.
(Note 3) The fair value at the end of the period is determined based on appraised value provided by independent real estateappraisers.

Income and loss in connection with investment and rental properties are disclosed in “Notes Concerning Statementsof Income and Retained Earnings.”(Notes Concerning Segment and Related Information)
1. Segment Information
Disclosure is omitted because the real estate leasing business is MEL’s sole business and it has no reportablesegment subject to disclosure.
2. Related Information
For the period from Mar. 1, 2021, to Aug. 31, 2021
(1) Information by Products and Services
Description of this information is not stated herein as operating revenues generated from external customers for asingle product and service have exceeded 90% of total operating revenues on the statement of income and retained
earnings.
(2) Information by Geographic Region(a) 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.
(b) 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.
(3) 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.
For the period from Sept. 1, 2021, to Feb. 28, 2022
(1) Information by Products and Services
Description of this information is not stated herein as operating revenues generated from external customers for asingle product and service have exceeded 90 % of total operating revenues on the statement of income and retained
earnings.

-22-

(2) Information by Geographic Region(a) 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.
(b) 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.
(3) 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.
(Notes Concerning Per Unit Information)
Yen

For the fiscal period from
Mar. 1, 2021 toAug. 31, 2021
Net assets per unit

297,621

For the fiscal period from
Sept. 1, 2021 toFeb. 28, 2022
297,352

Net income per unit
6,108
6,495
(Note 1) Net income per unit is calculated by dividing net income for the period by the weighted average number of investments
units issued and outstanding based on the number of days during the applicable reporting periods. Diluted net income
per unit is not stated as there is no dilutive equity issued and outstanding.
(Note 2) The basis for calculation of the profit per unit is as follows:
For the fiscal period from
For the fiscal period from
Mar. 1, 2021 to
Sept. 1, 2021 toAug. 31, 2021
Feb. 28, 2022
Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common unitholders(Thousands of yen)
Average number of investment units during theperiod (Unit)

2,381,528

2,540,482--

2,381,528

2,540,482

389,872

391,135(Notes Concerning Significant Subsequent Events)
Issuance of New Investment Units
MEL issued new investment units based on the resolution made by the board of directors on Feb. 7, 2022
and Feb. 16, 2022 and the payment was completed on Mar. 1, 2022 and Mar. 23, 2022 for the issuance of new
investment units through public offering and third-party allotment, respectively.
<Issuance of New Investment Units through Public Offering>Number of units issued: 56,000 units
Issue price: 406,965 yen per unit
Total amount issued: 22,790,040,000 yen
Issue amount: 393,608 yen per unit
Net proceeds: 22,042,048,000 yen
Payment date
: Mar. 1, 2022
<Issuance of New Investments Units through the Third-Party Allotment>
Number of units issued: 2,800 units
Issue amount: 393,608 yen per unit
Net proceeds: 1,102,102,400 yen
Payment date
: Mar. 23, 2022
Allotee: SMBC Nikko Securities Inc.

-23-

(Notes on Revenue Recognition)

1. Breakdown information on revenue from contracts with customers
The Reporting Period (from Sept. 1, 2021 to Feb. 28, 2022)

Thousands of yen

Revenue from contracts withcustomers

Net sales to external customers

151,770

151,770-

4,877,127

Received utilities cost
OthersNote1:

Note2:

Total
151,7705,028,898
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 forReal 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 consist ofrevenues from utilities.
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.

2. Basic information for understanding revenue from contracts with customers
As stated in “(7) Notes Concerning Significant Accounting Policies”.

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

Thousands of yen
For the fiscal period from
Sept. 1, 2021toFeb. 28, 2022

Claims generated from contracts with customers (balance at
beginning of fiscal year)
Claims generated from contracts with customers (balance at end of
fiscal year)

32,55329,511

Contract assets (balance at beginning of fiscal year)-

Contract assets (balance at end of fiscal year)-

Contract liabilities (balance at beginning of fiscal year)-

Contract liabilities (balance at end of fiscal year)-(2) Transaction price allocated to the remaining performance obligations
Not applicable.
Revenue from utilities is recognized at the amount that the Company has the right to claim in accordance withparagraph 19 of the accounting standard guidance for revenue recognition, as the Company is entitled to receive from thecustomer the amount of consideration that directly corresponds to the value to the lessee that is the customer for the
portion of performance completed by the end of the period. Accordingly, the Company has applied the provisions ofparagraph 80-22(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.

-24-

(11) Change in Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital for the most recent five
years until Feb. 28, 2022 are as follows:
Date

Type of Issue

June 15, 2017

Reverse split ofinvestment units

Sept. 13, 2017

Public offering

Oct. 10, 2017
May 21, 2018
Sept. 10, 2018
Oct. 11, 2018
Nov. 19, 2018
May 21, 2019
Oct. 7, 2019Nov. 7, 2019Nov. 18, 2019
May 20, 2020
Sept. 1, 2020
Sept. 30, 2020
Nov. 20, 2020
Mar. 5, 2021
Apr. 6, 2021
May 20, 2021
Nov. 19, 2021

Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus cash
distribution(return on capital)
Surplus cash
distribution(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus CashDistributions(return on capital)
Public offering
Capital increase
through third-party
allotment
Surplus CashDistributions(return on capital)
Surplus CashDistributions(return on capital)

Unitholders’ Capital(Thousands of yen)(Note 1)
Increase /Total
Decrease

Number of Investment Units
Issued and Outstanding (Units)
Increase /Total
DecreaseNote-

2,000,000(12,000)

8,000(Note 2)

49,678,200

51,678,200

198,000

206,000(Note 3)

2,007,200

53,685,400

8,000

214,000(Note 4)(120,910)

53,564,490-

214,000(Note 5)

7,216,429

60,780,919

30,300244,300(Note 6)360,821

61,141,741

1,515

245,815(Note 7)

(129,898)

61,011,843-

245,815(Note 8)(179,199)

60,832,644-

245,815(Note 9)18,556,033

79,388,677

57,150302,965(Note 10)925,366

80,314,044

2,850

305,815(Note 11)(146,014)

80,168,030-

305,815(Note 12)(174,008)

79,994,021-

305,815(Note 13)

16,898,058

96,892,079

40,500346,315(Note 14)801,927

97,694,006

1,922

348,237(Note 15)

(181,042)

97,512,964-

348,237(Note 16)

16,006,482

113,519,446

41,000389,237(Note 17)740,982

114,260,429

1,898

391,135(Note 18)

(231,925)

114,028,503－

391,135(Note 19)

(264,016)

113,764,487－

391,135(Note 20)

Notes:
1. “Unitholders’ capital” is the amount after deducting the “Deduction from unitholders’ capital.”
2. A 0.4-for-1 reverse split of investment units was conducted, with June 15, 2017 as the effective date.
3. New investment units were issued through public offering at an issue price of 260,000 yen (paid-in amount of 250,900yen) per unit.
4. New investment units were issued through third-party allotment at a paid-in amount of 250,900 yen per unit.
5. Cash distributions for the fiscal period ended Feb. 2018 in the amount of 565 yen per unit as return of capital. It was-25-

decided on Apr. 13, 2018 and started payment on May 21, 2018.
New investment units were issued through public offering at an issue price of 246,772 yen (paid-in amount of 238,166
yen) per unit.
7. New investment units were issued through third-party allotment at a paid-in amount of 238,166 yen per unit.
8. Cash distributions for the fiscal period ended Aug. 2018 in the amount of 607 yen per unit as return of capital. It was
decided on Oct. 15, 2018 and started payment on Nov. 19, 2018.
9. Cash distributions for the fiscal period ended Feb. 2019 in the amount of 729 yen per unit as return of capital. It was
decided on Apr. 15, 2019 and started payment on May 21, 2019.
10. New investment units were issued through public offering at an issue price of 335,887 yen (paid-in amount of 324,690
yen) per unit.
11. New investment units were issued through third-party allotment at a paid-in amount of 324,690 yen per unit.
12. Cash distributions for the fiscal period ended Aug. 2019 in the amount of 594 yen per unit as return of capital. It was
decided on Oct. 17, 2019 and started payment on Nov. 18, 2019.
13. Cash distributions for the fiscal period ended Feb. 2020 in the amount of 569 yen per unit as return of capital. It was
decided on Apr. 17, 2020 and started payment on May 20, 2020.
14. New investment units were issued through public offering at an issue price of 431,701 yen (paid-in amount of 417,236
yen) per unit.
15. New investment units were issued through third-party allotment at a paid-in amount of 417,236 yen per unit.
16. Cash distributions for the fiscal period ended Aug. 2020 in the amount of 592 yen per unit as return of capital. It was
decided on Oct. 15, 2020 and started payment on Nov. 20, 2020.
17. New investment units were issued through public offering at an issue price of 403,650 yen (paid-in amount of 390,402
yen) per unit.
18. New investment units were issued through third-party allotment at a paid-in amount of 390,402 yen per unit.
19. Cash distributions for the fiscal period ended Mar. 2021 in the amount of 666 yen per unit as return of capital. It was
decided on Apr. 15, 2021 and started payment on May. 20, 2021.
20. Cash distributions for the fiscal period ended Mar. 2021 in the amount of 675 yen per unit as return of capital. It was
decided on Oct. 15, 2021 and started payment on Nov. 19, 2021.
6.

-26-

3. Reference Information(1) Composition of MEL’s Assets
Type of assets

Category

Beneficiary right intrust

RegionTokyo metropolitan area (Note 2)
Osaka metropolitan area (Note 3)
Nagoya metropolitan area (Note 4)
OthersOthers
Total
Deposit and other assets
Total assets (Note 5)

Logistics
facilities

Amount(Millions of yen)

11th fiscal period(As of Feb. 28, 2022)
Retained amount
Ratio of total assets(Millions of yen)(%)
(Note 1)
76,32442.3
32,46618.0
27,983
15.5
18,520
10.3
12,7837.1
168,078
93.2
12,325
6.8
180,403
100.0

11th fiscal period(As of Feb. 28, 2022)

Ratio of total asset(%)

Total liabilities (Note 5)(Note 6)
64,098
35.5
Total net assets (Note 5)
116,305
64.5
Total assets (Note 5)
180,403
100.0
Notes:
1.
The retained amount is the amount allocated in the balance sheet (the book value after depreciation) at the end of the reporting
fiscal period (as of Feb. 28, 2022.)
2.
Tokyo metropolitan area refers to Tokyo, Kanagawa, Chiba, Saitama and Ibaraki prefectures.
3.
Osaka metropolitan area refers to Osaka, Hyogo, Kyoto, Nara and Shiga prefectures.
4.
Nagoya metropolitan area refers to Aichi, Mie and Gifu prefectures.
5.
Total liabilities, total net assets and total assets is the amount allocated in the balance sheet at the end of the reporting fiscal
period (as of Feb. 28, 2022).
6.
Total liabilities include the tenant leasehold and security deposits.

(2) Investment Assets(A) Major Components of Investment Securities
Not applicable(B) Investment Properties
Not applicable(C) Other Major Investment Assets
The real estate trust beneficiary interests held by MEL as of the end of Feb. 28, 2022 are as follows.

-27-

(i) Overview of Portfolio
The following summarizes (location, acquisition price, investment ratio, book value, appraisal value, acquisition date) thereal estate or the real estate properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Property nameLocation

Appraisal
Acquisition price Investment Book value value
Acquisition date(Millions of yen) ratio (%) (Millions of (Millions of(Note 4)(Note 2)yen)
yen)(Note 1)
(Note 3)

Logicross Fukuoka Hisayama

Hisayama,
Kasuya, Fukuoka

5,770

3.4

5,467

7,650

Sept. 14, 2017

Logicross Atsugi

Atsugi, Kanagawa

8,440

5.0

8,313

9,440

Sept. 3, 2018

Logicross Kobe Sanda

Kobe, Hyogo

3,900

2.3

3,844

4,400

Sept. 3, 2018

Logicross Osaka (Note 5)

Osaka, Osaka

5.7

9,753

10,300➀Sept. 1, 2020
➁Mar. 9, 2021

Logicross Nagoya Kasadera(Note 5)

Nagoya, Aichi

8.5

14,477

16,900➀Sept. 1, 2020
➁Mar. 9, 2021

Logicross Narashino

Narashino, Chiba

7.0

11,921

12,400Mar. 9, 2021

LOGIPORT Sagamihara(Note 6)

Sagamihara,
Kanagawa

21,364

12.5

20,64824,000

Sept. 14, 2017

Logistics LOGIPORT Hashimoto
Facilities (Note 7)

Sagamihara,
Kanagawa

18,20010.7

17,64921,600

Sept. 14, 2017

6.2

10,424

11,850➀Oct. 9, 2019
➁Sept. 1, 2020

3.2

5,330

6,690

Sept. 29, 2016

Others➀5,874➁3,868
Total:9,743➀8,705➁5,719Total:14,424
11,851

LOGIPORT Osaka Taisho(Note 8)Osaka, Osaka

MJ Logipark Funabashi 1

Funabashi, Chiba➀5,682➁4,802
Total:10,484
5,400

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

3.9

6,440

7,190

Sept. 14, 2017

MJ Logipark Kazo 1

Kazo, Saitama

1,272

0.7

1,221

1,520

Sept. 14, 2017

MJ Logipark Osaka 1

Osaka, Osaka

6,090

3.6

5,883

7,130

Sept. 14, 2017

MJ Logipark Fukuoka 1

Umi,
Kasuya, Fukuoka

6,130

3.6

5,750

6,720

Sept. 14, 2017

MJ Logipark Tsuchiura 1

Tsuchiura, Ibaraki

3,133

1.8

3,108

3,490

Sept. 2, 2019

MJ Logipark Nishinomiya 1

Nishinomiya, Hyogo

2,483

1.5

2,560

2,690

Oct. 9, 2019

MJ Logipark Kasugai 1

Kasugai, Aichi

13,6708.0

13,506

14,700Oct. 9, 2019

MJ Logipark Kazo 2

Kazo, Saitama

1,637

1.0

1,690

1,720

Sept. 1 2020

Tagajo, Miyagi

7,388

4.3

7,303

7,670

Sept. 1 2020

Sakai, Osaka

5,600

3.3

5,666

5,780

Oct. 9, 2019

Kobe, Hyogo

4,970

2.9

5,202

5,710

Mar. 9, 2021

Chiba, Chiba

1,800

1.1

1,914

1,970

Mar. 19, 2021

MJ Logipark Sendai 1
MJ Industrial Park Sakai(Land)
MJ Industrial Park Kobe
(Land)
MJ Industrial Park ChibaKita (Land)
Total

170,404
100.0 168,078 191,520
Notes:
1.
“Acquisition price” represents the purchase price of each property or beneficiary right in trust as set forth on the relevantpurchase agreement and does not include expenses such as consumption taxes, and is rounded down to nearest million yen.
2.
“Investment ratio” is calculated by dividing the acquisition price for each property by the total acquisition price and is rounded tosecond decimal place. Thus, the sum of the figures in total may not add up to the figure in the total column.
3.
"Appraisal value” represents the appraisal value as set forth on the relevant study reports by real estate appraisers as of Feb. 28,
2022. Please refer to the below mentioned” (iv) Overview of Appraisal Reports”.
4.
“Acquisition date” represents the acquisition date in the relevant sale and purchase agreement.
5.
“Total Acquisition price” and “Appraisal value” of Logicross Osaka and Logicross Nagoya Kasadera is shown with the values
corresponding to the co-beneficiary interest ratios (100%). “Acquisition price” and “Acquisition date” are shown with the number
on the top refers to the 60 % co-beneficiary interest acquired on Sept. 1, 2020, and the bottom refers to the 40% co-beneficiaryinterest acquired on Mar. 9, 2021.

-28-

6.
7.
8.

“Acquisition price” and “Appraisal value” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiaryinterest ratios (49%).
“Acquisition price” and “Appraisal value” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiaryinterest ratios (45%).
“Total Acquisition price” and “Appraisal value” of LOGIPORT Osaka Taisho is shown with the values corresponding to the cobeneficiary interest ratios (37.5%). “Acquisition price” and “Acquisition date” are shown with the number on the top refers to the
20 % co-beneficiary interest acquired on Oct. 9, 2019, and the bottom refers to the 17.5% co-beneficiary interest acquired on
Sept. 1, 2020.

-29-

(ii) Overview of Properties
The following summarizes (land area, total floor area, total leasable area, total leased area, year built) the real estate or
the real estate properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Property nameLand area(㎡)(Note 1)

Total floor area Total leasable area Total leased area(㎡) (Note 1)(㎡) (Note 2)(㎡) (Note 3)

Year built(Note 4)

Logicross Fukuoka Hisayama

18,136.89

36,082.08

34,878.55

34,878.55

Oct. 2014

Logicross Atsugi

14,782.03

29,895.80

29,895.80

29,895.80

Mar. 2017

Logicross Kobe Sanda

20,000.93

12,879.33

12,844.35

12,844.35

Jun. 2017

Logicross Osaka

18,176.07

36,619.48

35,616.58

35,616.58

Sept. 2018

Logicross Nagoya Kasadera

33,224.00

72,376.03

62,289.08

62,289.08

Jan. 2019

Logicross Narashino

19,386.40

36,437.92

39,132.05

39,132.05

Mar. 2018

LOGIPORT Sagamihara (Note 5)

94,197.27

200,252.53(98,123.73)

88,609.64

88,376.62

Aug. 2013

LOGIPORT Hashimoto (Note 6)

67,746.26

145,809.59(65,614.31)

58,487.96

57,215.57

Jan. 2015

LOGIPORT Osaka Taisho(Note 7)55,929.57

117,045.04(43,891.89)

40,081.57

38,492.07

Feb. 2018

Logistics
MJ Logipark Funabashi 1
Facilities

7,481.00

18,262.08

18,232.07

18,232.07

Nov. 1989

MJ Logipark Atsugi 1

19,780.93

27,836.15

28,002.44

28,002.44

Jul. 2013

MJ Logipark Kazo 1

7,621.09

7,602.06

7,678.10

7,678.10

Mar. 2006

MJ Logipark Osaka 1

13,028.81

39,157.61

39,082.95

39,082.95

Sept. 2007

MJ Logipark Fukuoka 1

20,297.84

39,797.96

38,143.21

38,143.21

Sept. 2007

MJ Logipark Tsuchiura 1

22,914.37

15,485.00

15,485.00

15,485.00

Oct. 2014

MJ Logipark Nishinomiya 1

23,008.83

13,903.42

13,777.07

13,777.07

Mar. 1991

MJ Logipark Kasugai 1

38,972.99

58,236.48

57,866.98

57,866.98

Jan. 2017

MJ Logipark Kazo 2

11,454.21

7,349.18

7,349.18

7,349.18

Dec. 1998

MJ Logipark Sendai 1

19,877.94

36,854.27

39,098.87

39,098.87

Mar. 2009

MJ Industrial Park Sakai (Land)87,476.71-

87,476.71

87,476.71-

MJ Industrial Park Kobe (Land)40,050.71-

31,743.99

31,743.99-

MJ Industrial Park Chiba-Kita(Land)

14,986.64-

14,986.64

14,986.64-

668,531.49

951,882.01(696,404.78)

800,758.79

797,663.88-

Others

Total

Notes:
1.
“Land area” and “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the mainbuilding and annex. If there is more than one main building, the total floor area is the sum of the total floor area for each mainbuilding. Figures in parentheses for LOGIPORT Sagamihara, LOGIPORT Hashimoto and LOGIPORT Osaka Taisho are stated

-30-

2.

3.
4.
5.
6.
7.

corresponding to each co-beneficiary interest (49%, 45% and 37.5%). “Total” are the sum of total floor area of each property
owned taking into account the co-beneficiary interest of each property. Each figure is rounded down to the nearest hundredth“Total leasable area” equals to the gross leasable space in each property or property in trust as of Feb. 28, 2022, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to the nearest
hundredth. It does not include the leased area indicated in the lease agreements concerning shops, vending machines,
photovoltaic power generation facilities and parking lots.
“Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Feb. 28, 2022, basedon the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in thelease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
“Year built” is the date of construction of the building in the register. If there is more than one main building, the oldest dateshown in the register.
“Total leasable area” and “Total leased area” of LOGIPORT Sagamihara is shown with the values corresponding to the cobeneficiary interest ratios (49%).
“Total leasable area” and “Total leased area” of LOGIPORT Hashimoto is shown with the values corresponding to the cobeneficiary interest ratios (45%).
“Total leasable area” and “Total leased area” of LOGIPORT Osaka Taisho is shown with the values corresponding to the cobeneficiary interest ratios (37.5%).

-31-

(iii) Overview of Tenant Agreements
The following summarizes (total leasable area, total leased area, occupancy, number of tenants, name of major tenant,annual rent, security deposit, average lease term and average remaining lease term) the real estate or the real estate
properties in trust owned by MEL at the end of the reporting fiscal period:
Category

Logistics
Facilities

Property name

NumberTotal leasable Total leased Occupancyofarea (㎡)(%)
area (㎡)tenants(Note 3)(Note 1)
(Note 2)
(Note 4)

Security
Average lease
Annual rent
deposit term / Average
Name of major(Millions of (Millions of remaining leasetenant (Note 5)
term (Years)yen) (Note 6)yen)(Note 7)(Note 8, 9)
Not
Not
5.0
AXions GROUP
disclosed
disclosed(4.0)(Note 10)(Note 10)Not
Not
MITAKA SOKO
10.0
disclosed
disclosed(5.1)
Co., Ltd.
(Note 10)(Note 10)
Not
Not
Fresh Creator
30.0
disclosed
disclosed(25.3)
Co., Ltd.
(Note 10)(Note 10)
Not
Not
Not
e-LogiT co Ltd
disclosed
disclosed
disclosed(Note 10)(Note 10)(Note 10)

Logicross Fukuoka
Hisayama

34,878.55

34,878.55

100.0

2

Logicross Atsugi

29,895.80

29,895.80

100.0

1

Logicross Kobe Sanda

12,844.35

12,844.35

100.0

1

Logicross Osaka

35,616.58

35,616.58

100.0

2

Logicross Nagoya
Kasadera

62,289.08

62,289.08

100.0

10 YAGAMI Co., LTD

Logicross Narashino

39,132.05

39,132.05

100.0

1

LOGIPORT Sagamihara(Note 11)88,609.64

88,376.62

LOGIPORT Hashimoto(Note 12)58,487.96

LOGIPORT Osaka Taisho(Note 13)

939

400

6.7
(3.8)

Nihon Realest.,
Ltd.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

99.7

18 S･V･D Co., Ltd.

1,287

304

7.3
(2.3)

57,215.57

97.8

15

KDDI
Corporation

961

241

6.3
(3.3)

40,081.57

38,492.07

96.0

SBS Toshiba
10 Logistics
Corporation

559

134

5.7
(2.5)

MJ Logipark Funabashi 1

18,232.07

18,232.07

100.0

1 Fuji Echo Co., Ltd.

MJ Logipark Atsugi 1

28,002.44

28,002.44

100.0

1

Sun Toshi
Tatemono K.K.

MJ Logipark Kazo 1

7,678.10

7,678.10

100.0

1Kanda Holdings
Co., Ltd.

MJ Logipark Osaka 1

39,082.95

39,082.95

100.0

1 Sankyu Inc.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

MJ Logipark Fukuoka 1

38,143.21

38,143.21

100.0

4

Fukuoka Logistics
Systems Corp.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)401

179

MJ Logipark Tsuchiura 1

15,485.00

15,485.00

100.0

1

EntreX
Incorporated

MJ Logipark
Nishinomiya 1

13,777.07

13,777.07

100.0

1 F - LINE CO., Ltd

MJ Logipark Kasugai 1

57,866.98

57,866.98

100.0

2

Kimura-Unity Co.,Ltd.

MJ Logipark Kazo 2

7,349.18

7,349.18

100.0

1MS JAPAN
Co.,Ltd.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)

100.0

Toho
Transportation
3and Warehouse
Co., Ltd.

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)424

188

MJ Logipark Sendai 1

39,098.87

39,098.87

-32-

Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)Not
disclosed(Note 10)
2.9
(0.7)
20.0
(16.4)
10.0
(7.1)
5.1
(1.7)
10.0
(7.8)
3.5
(0.6)

Category

OthersProperty name

NumberTotal leasable Total leased Occupancyof(%)
area (㎡)area (㎡)tenants(Note 3)(Note 1)
(Note 2)
(Note 4)

MJ Industrial Park Sakai(Land)

87,476.71

87,476.71

100.0

1

MJ Industrial Park Kobe
(Land)

31,743.99

31,743.99

100.0

1

MJ Industrial Park ChibaKita (Land)

14,986.64

14,986.64

100.0

1

Total (Average)

800,758.79

797,663.88

99.6

79

Security
Average lease
Annual rent
deposit term / Average(Millions of (Millions of remaining leaseterm (Years)yen) (Note 6)yen)(Note 7)(Note 8, 9)
Not
Not
Not
IHI Infrastructure
disclosed
disclosed
disclosed
Systems Co., Ltd(Note 10)(Note 10)(Note 10)
Not
Not
Not
ORIX Autodisclosed
disclosed
disclosed
Corporation(Note 10)(Note 10)(Note 10)
Not
Not
Not
Kinugawa Rubber
disclosed
disclosed
disclosed
Industrial Co., Ltd.
(Note 10)(Note 10)(Note 10)
10.5
9,668
3,644
－
(6.7)
Name of major
tenant (Note 5)

Notes:
1. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Feb. 28, 2022, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to the nearest
hundredth. It does not include the leased area indicated in the lease agreements concerning shops, vending machines,
photovoltaic power generation facilities and parking lots.
2. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Feb. 28, 2022, based on
the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. “Occupancy” is as of Feb. 28, 2022, calculated by dividing total leased area for each property by the total leasable area. The total
occupancy rate is calculated by dividing the aggregate total leased area for the relevant properties by the aggregate total leasablearea for the relevant properties. Figures are rounded to the nearest tenth.
4. “Number of tenants” is based on the lease agreements with tenants for each property or property in trust as of Feb. 28, 2022.
However, if one lessee enters into a multiple number of lease agreements for the same property, the total number of tenants will
be calculated on the assumption that such lessee is one party.
5. “Name of major tenant” is the name of the tenant with the largest leased floor area in the relevant lease agreement for each
property or property in trust as of Feb. 28, 2022
6. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Feb. 28, 2022. However,if there are different provisions for monthly rent (including common area expenses) depending on the time period in each leaseagreement for each property or property in trust as of Feb. 28, 2022, the annualized amount of rent will be calculated based on themonthly rent (including common area expenses) for Feb. 2022 shown in said lease agreement. The rent-free periods and annual
rent holiday periods (meaning that the payment of rents for specific months is exempted) as of Feb. 28, 2022 shall not be included.
7. “Security deposit” represent the sum of the outstanding amounts of leasehold/security deposits (the sum of the outstanding
amounts of leasehold/security deposit if a multiple number of lease agreements have been executed), rounded down to thenearest million yen, indicated in the subject lease agreement as of Feb. 28, 2022. However, if there are different provisions for thesum of outstanding leasehold/security deposit depending on the time period in each lease agreement for each property or
property in trust, the amount of tenant leasehold/security deposit for Feb. 2022 shown in said lease agreement is indicated.
8. “Average lease term” is calculated as the weighted average lease term indicated in the relevant lease agreements for each
property or property in trust as of Feb. 28, 2022, by the rent and figures are rounded to the first decimal place.
9. “Average remaining lease term” is calculated as the weighted average remaining lease term indicated in the relevant leaseagreements for each property or property in trust as of Feb. 28, 2022, by the rent and figures are rounded to the first decimal
place.
10. Not disclosed as the tenant’s consent has not been obtained.
11. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Sagamihara is shown with the values
corresponding to the co-beneficiary interest ratios (49%).
12. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Hashimoto is shown with the values
corresponding to the co-beneficiary interest ratios (45%).
13. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Osaka Taisho is shown with thevalues corresponding to the co-beneficiary interest ratios (37.5%).

-33-

(iv) Overview of Appraisal Reports (as of Feb. 28, 2022)
Return priceCategory

Property
nameLogicross
Fukuoka
Hisayama
LogicrossAtsugi
Logicross
Kobe Sanda

Logicross
Osaka
Logicross
NagoyaKasadera
Logcross
Narashino
LOGIPORT
Sagamihara(Note 6)

Logistics
Facilities

Appraiser

Tanizawa
Sogo
Appraisal
Co., Ltd.
Tanizawa
Sogo
Appraisal
Co., Ltd.
Tanizawa
Sogo
Appraisal
Co., Ltd.
Japan Real
EstateInstituteJapan Real
EstateInstituteJapan Real
EstateInstitute
DAIWA
REAL
ESTATEAPPRAISAL
Corporation
Japan Real
EstateInstitute

LOGIPORT
Hashimoto(Note 7)
LOGIPORT
Japan Real
Osaka Taisho Estate
Institute(Note 8)Japan RealMJ Logipark
EstateFunabashi 1
Institute
MJ Logipark Japan Real
EstateAtsugi 1
InstituteJapan RealMJ Logipark
EstateKazo 1
InstituteTanizawa
MJ Logipark Sogo
Appraisal
Osaka 1
Co., Ltd.
Japan RealMJ Logipark
EstateFukuoka 1
Institute
MJ Logipark Japan Real
EstateTsuchiura 1
InstituteTanizawa
MJ Logipark Sogo
Nishinomiya 1 Appraisal
Co., Ltd.
Tanizawa
MJ Logipark Sogo
Appraisal
Kasugai 1
Co., Ltd.
Tanizawa
MJ Logipark Sogo
Appraisal
Kazo 2
Co., Ltd.

Appraisal
value
date

Direct capitalization
DCF method
Appraisal
Integrated
methodAppraisal
Appraisal
NOI
value based on Value basedvalue
NOI Yield
Value based(Millionscost method
on direct
DirectTerminal(Millions of(%)(Millions of capitalization capitalizati on DCF
Discount capitalizat of yen) (Note 2)
yen)method
(Note
1)
yen)
rate (%)
methodon rateion rate(Millions of(Millions of
(%)
(%)
yen)
yen)

Feb. 28,
2022

7,650

6,980

7,670

4.5

7,640

4.4,4.6(Note 3)

4.7

350

6.1

Feb. 28,
2022

9,440

9,330

9,540

4.0

9,390

4.0,4.1(Note 4)

4.2

382

4.5

Feb. 28,
2022

4,400

4,000

4,440

4.4

4,380

4.3,4.4(Note 5)

4.6

197

5.1

Feb. 28,2022

10,3009,610

10,5004.0

10,100

3.8

4.2

421

4.3

Feb. 28,2022

16,90016,30017,1004.2

16,700

4.0

4.4

720

5.0

Feb. 28,2022

12,40012,70012,6004.0

12,200

3.8

4.2

505

4.3

Feb. 28,2022

24,00016,60023,900

4.1

24,000

3.9

4.3

999

4.7

Feb. 28,2022

21,60020,70021,915

3.9

21,240

3.7

4.1

856

4.7

Feb. 28,2022

11,85010,80012,037

4.0

11,662

3.8

4.2

486

4.6

Feb. 28,
2022

6,690

3,590

6,710

4.9

6,670

4.1

5.3

354

6.6

Feb. 28,
2022

7,190

7,660

7,290

4.1

7,080

3.9

4.3

302

4.5

Feb. 28,
2022

1,520

1,290

1,540

4.6

1,500

4.4

4.8

72

5.7

Feb. 28,
2022

7,130

5,890

7,180

4.2

7,110

4.1,4.3(Note 9)

4.4

312

5.1

Feb. 28,
2022

6,720

4,640

6,790

4.7

6,650

4.5

4.9

333

5.4

Feb. 28,
2022

3,490

2,860

3,530

4.7

3,450

4.5

4.9

165

5.3

Feb. 28,
2022

2,690

2,910

2,770

4.7

2,650

4.4,4.7(Note 10)

4.9

141

5.7

Feb. 28,2022

14,70012,60015,1004.3

14,500

4.3,4.4(Note 11)

4.5

659

4.8

Feb. 28,
2022

1,720

1,630

1,800

4.3

1,690

4.4

4.5

82

5.0

-34-

Return priceCategory

Logistics
Facilities

OthersDirect capitalization
DCF method
Appraisal
Integrated
methodAppraisal
Appraisal
NOI
value based on Value basedvalue
NOI Yield
Value based
cost method
on direct
DirectTerminal (Millions(Millions of
(%)
of
yen)
(Millions of capitalization capitalizati on DCF
Discount capitalizat
yen)
(Note
2)
methodyen)rate (%)
methodon rateion rate (Note 1)(Millions of(Millions of
(%)
(%)
yen)
yen)

Appraiser

Appraisal
value
date

MJ Logipark Japan Real
EstateSendai 1
Institute

Feb. 28,
2022

7,670

5,210

7,730

4.7

7,610

4.3

4.7

380

5.2

Feb. 28,
2022

5,780

-

5,840

3.7

5,710

3.5

3.8

214

3.8

Feb. 28,
2022

5,710

-

5,780

4.0

5,710

3.9,4.0(Note 12)

4.0

254

5.1

Feb. 28,
2022

1,970

-

2,030

4.3

1,970

4.2,4.3(Note 13)

4.4

79

4.4

191,520

155,300

193,792-

189,612

-

-

8,274

4.9

Propertyname

MJ Industrial Japan RealPark Sakai
EstateInstitute(Land)
MJ Industrial Tanizawa
Sogo
Park Kobe
Appraisal(Land)
Co., Ltd.
MJ Industrial Tanizawa
Sogo
Park ChibaAppraisal
Kita (Land)
Co., Ltd.
Total

Notes:
1. “Appraisal NOI” is the net operating income by the direct capitalization method stated in the appraisal report, rounded down to
the nearest million yen.
2. “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of each
property in each real estate appraisal report, rounded to the first decimal place.
3. “Discount rate” for Logicross Fukuoka Hisayama is assessed from first to fourth year as 4.4% and fifth year and thereafter as
4.6%.
4. “Discount rate” for Logicross Atsugi is assessed first to fifth year as 4.0% and sixth and thereafter as 4.1%.
5. “Discount rate” for Logicross Kobe Sanda is assessed first to fifth year as 4.3% and sixth to 11th as 4.4%.
6. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiary interest ratios (49%).
7. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiary interest ratios (45%).
8. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Osaka Taisho is shown with the values corresponding to the co-beneficiary interest ratios (37.5%).
9. “Discount rate” for MJ Logipark Osaka 1 is assessed first year as 4.1% and second to 11th year as 4.3%.
10. “Discount rate” for MJ Logipark Nishinomiya 1 is assessed first to seventh year as 4.4% and eighth and thereafter as 4.7%.
11. “Discount rate” for MJ Logipark Kasugai 1 is assessed first to second year as 4.3% and third and thereafter as 4.4%.
12. “Discount rate” for MJ Industrial Park Kobe (Land) is assessed first to eighth year as 3.9% and ninth and thereafter as 4.0%.
13. “Discount rate” for MJ Industrial Park Chiba-Kita (Land) is assessed first to fourth year as 4.2% and fifth and thereafter as 4.3%.

-35-

(v) Information Regarding Major Real Estate Properties
The following summarizes the properties where “annual rent” represents 10% or more of the total portfolio annual
rent as of Feb. 28, 2022.
Annual rent (Millions of yen)
(Note 1)
1,287

Property name
LOGIPORT Sagamihara (Note 3)

Percentage of rent(%) (Note 2)
13.3

Notes:
1. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Feb. 28, 2022.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Feb. 28, 2022, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Feb. 2022 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofFeb. 28, 2022 shall not be included.
2. “Percentage of rent” is the ratio of that property’s total annual rent to the total portfolio annual rent, rounded to the nearest
tenth.
3. “Annual rent” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiary interest ratios (49%).

(vi) Information Regarding Major Tenants
The following summarizes the major tenant where “leased area” represents 10% or more of the total portfolio
leased area as of Feb. 28, 2022.
Annual rent
Leased Percentage Lease
Percentage(Millions ofarea (㎡) of area (%) expirationof rent (%)yen)(Note 2) (Note 3)
date

Tenant Name

Type of industry(Note 1)

Property nameIHI
Infrastructure
Systems Co.,Ltd

Manufacturing of
metal products forconstruction(excluding steel
frame)

MJ Industrial Park Sakai(Land)

Not
disclosed(Note 4)Not
disclosed(Note 4)87,476.71

11.0

Not
disclosed(Note 4)

Notes:
1. ”Type of industry” refers to the report from the TOKYO SHOKO RESEARCH, LTD.
2. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Feb. 28, 2022, basedon the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicated in thelease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. “Percentage of area” refers to the floor area leased to end tenant as a proportion of total leased area. Figures are rounded to
the nearest tenth.
4. Not disclosed as the tenant’s consent has not been obtained.

-36-

(vii) Property Distribution
a. Distribution by category
Number ofproperties

Category
Logistics facilities
Others
Total

Acquisition price (Millions of yen)
(Note 1)19
322

Investment Ratio (%)(Note 2)

158,033
12,370170,404

92.7
7.3
100.0

Notes:
1. “Acquisition price” represents the purchase price of each property or beneficiary right in trust as set forth on the relevantpurchase agreement and does not include expenses such as consumption taxes, and is rounded down to nearest million yen.
Same applies below (vii) Property Distribution.
2. “Investment ratio” is calculated by dividing the acquisition price for each property by the total acquisition price and is rounded
to the nearest hundredth. Thus, the sum of the figures in total may not add up to the figure in the total column. Same applies
below (vii) Property Distribution.

b. Distribution by region<Based on total floor area (Note 1)>
RegionTokyo metropolitan area (Note 3)
Osaka metropolitan area (Note 4)
Nagoya metropolitan area (Note 5)
Others
Total<Based on acquisition price>
RegionTokyo metropolitan area (Note 3)
Osaka metropolitan area (Note 4)
Nagoya metropolitan area (Note 5)
Others
Total

9
5
2
3
19

Total floor area(㎡)
(Note 2)488,930.31
219,604.88
130,612.51
112,734.31
915,882.01

10
7
2
3
22

Acquisition price(Millions of yen)
79,75043,27028,094
19,288170,404

Number ofproperties

Number ofproperties

Ratio (%)
51.4
23.1
13.7
11.8
100.0
Investment
ratio (%)
46.8
25.4
16.5
11.3
100.0

Notes:
1. MJ Industrial Park Sakai (Land), MJ Industrial Park Kobe (Land)and MJ Industrial Park Chiba-Kita (Land) are not included in thecalculation.
2. “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the main building andannex. If there is more than one main building, the total floor area is the sum of the total floor area for each main building.
Same applies below (vii) Property Distribution.
3. Tokyo metropolitan area refers to Tokyo, Kanagawa, Chiba, Saitama and Ibaraki prefectures.
4. Osaka metropolitan area refers to Osaka, Hyogo, Kyoto, Nara and Shiga prefectures.
5. Nagoya metropolitan area refers to Aichi, Mie and Gifu prefectures.

c. Distribution by property age (Note 1)
Number of
Property age
properties(Note 2)Less than 5 years
6
5 years or more and6less than 10 years
10 years or more
7
Total
19

Total floor area(㎡)
305,253.60

32.1

Investment
Acquisition price(Millions of yen)ratio (%)
58,84237.2

483,701.83

50.8

68,79043.5

162,926.58
951,882.01

17.1
100.0

30,400
158,033

19.2
100.0

Ratio (%)

Notes:
1. MJ Industrial Park Sakai (Land), MJ Industrial Park Kobe (Land)and MJ Industrial Park Chiba-Kita (Land) are not included in thecalculation.
2. “Property age” is calculated based on the date recorded in the register up to Feb. 28, 2022.

-37-

d. Distribution by total floor area (Note)
Total floor area
Less than 10,000㎡
10,000㎡or more and less than 30,000㎡
30,000㎡ or more
Total

Number ofproperties
2
6
11
19

Total floor area
Acquisition price Investment
Ratio (%)(㎡)
(Millions of yen) ratio (%)
14,951.24
1.6
2,909
1.8
118,261.78
12.4
30,00919.0
818,668.99
86.0
125,11479.2
951,882.01
100.0
158,033
100.0

Note: MJ Industrial Park Sakai (Land), MJ Industrial Park Kobe (Land)and MJ Industrial Park Chiba-Kita (Land) are not included in thecalculation.

e. Distribution by lease term
Lease term
(Note 1)
10 years or more
7 years or more and less than 10 years
5 years or more and less than 7 years
Less than 5 years
Total

Annual rent
(Millions of yen) (Note 2)(Note 3)

4,354
361
3,383
1,569
9,668

Ratio (%)

45.0
3.7
35.0
16.2
100.0

Notes:
1. “Lease term” is calculated as the weighted average lease term indicated in the relevant lease agreements for each property or
property in trust as of Feb. 28, 2022, by the rent and figures are rounded to the first decimal place. It does not include theleased area indicated in the lease agreements concerning shops, vending machines, photovoltaic power generation facilities
and parking lots.
2. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Feb. 28, 2022.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Feb. 28, 2022, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Feb. 2021 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofFeb. 28, 2022 shall not be included. Same applies below (vii) Property Distribution.
3. LOGIPORT Sagamihara, LOGIPORT Hashimoto and LOGIPORT Osaka Taisho is shown with the values corresponding to the cobeneficiary interest ratios (49%, 45% and 37.5% respectively). Same applies below (vii) Property Distribution.

f. Distribution by remaining lease term
Remaining lease term
(Note)
7 years or more
5 years or more and less than 7 years
3 years or more and less than 5 years
1 year or more and less than 3 years
Less than 1 year
Total

Annual rent
(Millions of yen)

Ratio (%)

1,888
870
1,768
4,053
1,086
9,668

19.5
9.0
18.3
41.9
11.2
100.0

Note: “Remaining lease term” is calculated as the weighted average remaining lease term indicated in the relevant leaseagreements for each property or property in trust as of Feb. 28, 2022, by the rent and figures are rounded to the firstdecimal place. It does not include the leased area indicated in the lease agreements concerning shops, vending machines,
photovoltaic power generation facilities and parking lots.

-38-

(viii) Details of Collateral
Not applicable(ix) Capital Expenditure for Owned Properties
a. Future plans for capital expenditure
The following summarizes the major capital expenditure plans in connection with scheduled renovations and otherwork for properties owned by MEL. Estimated construction cost includes the amounts to be expensed for accounting
purposes.

Property name
(Location)

Estimated construction cost
(Millions of yen) (Note)
Total
Paid during the
Total amountamount reporting period
already paid

PurposePlanned period

MJ Logipark Kazo 1(Kazo, Saitama)

Repair work ofelevator

From May. 2022
to Aug. 2022

12

-

-

MJ Logipark Sendai 1(Tagajo, Miyagi)

Waterproof
repair for roadsurface

From Apr. 2022
to Aug. 2022

85

-

-

Note: Figures are rounded down to the nearest million yen.

b. Capital expenditure incurred for the reporting fiscal period
MEL conducted construction work worth 193 million yen in the reporting fiscal period which is a sum of capital
expenditures of 131 million yen and repair and maintenance expenses of 62 million yen.
c. Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans

Reserved balance at the
beginning of the period
Reserved amount during
the period
Reversal of reserved
amount during the period
Reserved balance at theend of the period

Eighth fiscal
periodNinth fiscal
periodSept. 1, 2019 toFeb. 29, 2020

Mar. 1, 2020 toAug. 31, 2020

Sept. 1, 2020 toFeb. 28, 2021

297,841

376,229

448,139554,768

659,295

78,38871,910106,629

104,527

101,182

-

-

-

-

-

376,229

448,139554,768

659,295

760,477-39-

10th fiscal
period(Thousands of yen)
11th fiscal
periodSeventh fiscal
periodMar. 1, 2021 to Sept. 1, 2021 toAug. 31, 2021
Feb. 28, 2022

(x) Overview of Property Leasing and Status of Operating Income
11th fiscal period from Sep. 1, 2021, to Feb. 28, 2022
(Units: Thousands of yen)

Property name

Logicross
Fukuoka
Hisayama

LogicrossAtsugi

Logicross
Kobe Sanda

Logicross
Osaka

Logicross
NagoyaKasadera

Operating days

181 days

181 days

181 days

181 days

181 days(A) Property related revenues

505,278

Property revenues

469,694

Other property related
revenues

35,583(B) Property related expenses

183,405

Facility management fee

40,589Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

34,776744
3,455

Utilities cost

24,272Custodian fee

150

Other expenses

2,572(C) Depreciation

43,876

34,776

16,29253,024

76,844(D) Property related income(=A-B)

131,663

153,260

83,639170,149

321,872(E) NOI (=C+D)

175,540

188,037

99,932

223,173

398,717

Property name

Logicross
Narashino

LOGIPORT
Sagamihara

LOGIPORT
Hashimoto

LOGIPORT
Osaka Taisho

MJ Logipark
Funabashi 1

Operating days

181 days

181 days

181 days

181 days

181 days(A) Property related revenues

694,910515,738

281,625

Property revenues
Other property related
revenues

642,086

478,074

267,015

52,824

37,664

14,610(B) Property related expenses

269,120

188,212106,265

30,677

23,161

11,50856,95643,293981

715

33,194 Not disclosed(Note)
516

17,031

4,305

525

Utilities cost

33,97624,258

10,962Custodian fee

61

56

37

10,955946

365

51,838118,480

91,475

49,15444,372

230,341

425,789

327,526

175,360

137,167

282,179544,269

419,001

224,515

181,540

Facility management fee
Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed(Note)

Other expenses(C) Depreciation(D) Property related income(=A-B)(E) NOI (=C+D)

Note: Not disclosed as the tenant’s consent has not been obtained-40-

(Units: Thousands of yen)
Property name

MJ Logipark
Atsugi 1

MJ Logipark
Kazo 1

MJ Logipark
Osaka 1

MJ Logipark
Fukuoka 1

MJ Logipark
Tsuchiura 1

Operating days

181 days

181 days

181 days

181 days

181 days(A) Property related revenues

210,132

Property revenues

196,528

Other property related
revenues

13,603(B) Property related expenses

115,107

Facility management fee

25,294

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed Not disclosed(Note)(Note)

Not disclosed(Note)

13,800 Not disclosed(Note)
395
5,095

Utilities cost

9,081

Custodian fee

240

Other expenses

365(C) Depreciation

33,16010,42339,48960,835

12,894(D) Property related income(=A-B)

118,689

25,599113,703

95,02470,192(E) NOI (=C+D)

151,850

36,023

153,192

155,860

83,087

Property name

MJ Logipark
Nishinomiya 1

MJ Logipark
Kasugai 1

MJ Logipark
Kazo 2

MJ Logipark
Sendai1

MJ Industrial
Park Sakai(Land)

Operating days

181 days

181 days

181 days

181 days

181 days(A) Property related revenues

235,633

Property revenues
Other property related
revenues

212,369(B) Property related expenses

124,923

23,264

Facility management fee
Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

26,289Not disclosed Not disclosed(Note)(Note)

Not disclosed(Note)

20,734 Not disclosed(Note)
375
3,370

Utilities cost

13,412Custodian fee

290

Other expenses

530(C) Depreciation

12,24469,801

7,603

59,921-(D) Property related income(=A-B)

46,360241,980

27,943

110,710

107,329(E) NOI (=C+D)

58,604

311,781

35,546

170,632

107,329

Note: Not disclosed as the tenant’s consent has not been obtained-41-

(Units: Thousands of yen)
Property nameOperating days

MJ Industrial MJ Industrial
Park Kobe Park Chiba-Kita(Land)(Land)
181 daysTotal

181 days(A) Property related revenues

5,028,898

Property revenues
Other property related
revenues

4,798,577(B) Property related expenses

1,744,322

Facility management fee

212,078

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

230,320

Not disclosed(Note)

Not disclosed(Note)

407,631
7,202
62,387

Utilities cost

144,931

Custodian fee

3,710

Other expenses

19,867(C) Depreciation--

886,512(D) Property related income(=A-B)

127,40742,8633,284,575(E) NOI (=C+D)

127,40742,863

4,171,088

Note: Not disclosed as the tenant’s consent has not been obtained-42-