Summary of Financial Results for the Fiscal Period Ended August 31, 2020 (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:

Masaki Sakagawa, Executive Director

Asset Management Company:
Representative:
Inquiries:

Mitsubishi Jisho Investment Advisors, Inc.
Haruhiko Araki, President & CEO
Masaki Sakagawa, Executive Vice President, 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:

Nov. 27, 2020
Nov. 20, 2020

Supplementary Materials for Financial Results:
Investors and Analysts Meeting:

Yes
Yes

October 15, 2020

(Values are rounded down to the nearest million yen)
1. Financial Results for the Fiscal Period Ended August 31, 2020 (8th Fiscal Period) (from Mar. 1, 2020 to Aug. 31, 2020)(1) Operating Results(Percentages indicate change from the previous period)

Operating revenues
Operating income% Millions of yen%
Fiscal period ended Millions of yen
Aug. 31, 2020
3,342
4.4
1,729
(1.1)
Feb. 29, 2020
3,200
26.5
1,749
39.5

Ordinary income
Net income
Millions of yen% Millions of yen
1,655
1.3
1,654
1,633
34.7
1,632

%
1.4
34.7

Return on unitholders’
Ratio of ordinary income Ratio of ordinary income
equityto total assets
to operating revenues
Fiscal period ended
Yen
%
%
%
Aug. 31, 2020
5,410
2.0
1.4
49.5
Feb. 29, 2020
5,563
2.3
1.6
51.0
Note: MEL issued new investment units of 57,150 units and 2,850 units on Oct. 7, 2019 and Nov. 7, 2019, respectively. For the fiscal
period ended Feb. 29, 2020, net income per unit is calculated by dividing net income by the day-weighted average number ofinvestment units outstanding during the period 293,461 units.
Net income per unit

(2) Distributions

Distributions Total amount ofDistributions Total amount
Total amount
per unit
per unit of distributions
Ratio ofdistributions Surplus cash
Payoutof surplus(excluding(including
distributions(excluding distributions(including
ratio
cash
per unit
to net assets
surplus cash surplus cash
surplus cash surplus cash
distributions
distributions) distributions)distributions) distributions)
Yen Millions of yen
Yen Millions of yen
Yen Millions of yen
Fiscal period ended%%
Aug. 31, 2020
5,411
1,654
592
181
6,003
1,835
100.0
2.0
5,338
1,632
569
174
5,907
1,806
Feb. 29, 2020
100.0
2.1
Notes:
1. Total amount of surplus cash distributions are the refund of investment, which falls under the distributions through reduction inunitholders’ capital under taxation law.
2. The ratio of net asset value attributable to a reduction in unitholders’ paid-in capital for the fiscal periods ended Feb. 29, 2020 and Aug.
31, 2020, is 0.003 and 0.002, respectively. The payment of surplus cash distributions 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 Feb. 29, 2020, the payout ratio is calculated using
the following formula.
Payout ratio = Total amount of distributions (excluding surplus cash distributions)/Net income ×100

(3) Financial Position
Total assets
Fiscal period ended
Aug. 31, 2020Feb. 29, 2020

Net assets

Millions of yen
120,476
121,425

Millions of yen
81,64881,800Cash flows fromoperating activities
Millions of yen
3,496
1,312

Cash flows frominvesting activities
Millions of yen
17(30,475)

Unitholders’ equity tototal assets

%
67.8
67.4

Net assets per unit
Yen
266,987
267,484(4) Cash Flows
Fiscal period ended
Aug. 31, 2020Feb. 29, 2020

Cash flows from
Cash and cash equivalents
financing activities
Millions of yen
Millions of yen
7,894(2,906)
7,287
30,626

2. Forecasts for the Fiscal Periods Ending Feb. 28, 2021 (from Sept. 1, 2020 to Feb. 28, 2021) and Aug. 31, 2021 (fromMar. 1, 2021 to Aug. 31, 2021)(Percentages indicate change from the previous period)
Distributions
Distributions
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
Feb. 28, 2021
4,222
2,177 25.8
2,040 23.3
2,039 23.3
26.3
6,520
5,857
Aug. 31, 2021
4,215 (0.2)
2,074 (4.7)
1,978 (3.1)
1,977 (3.1)
6,438
5,677
(Reference) Forecasted net income per unit for the fiscal period ending Feb. 28, 2021: 5,857 yen
Forecasted net income per unit for the fiscal period ending Aug. 31, 2021: 5,677 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:None(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 Aug. 31, 2020
305,815 units
As of Feb. 29, 2020
305,815 units(b) Number of treasury units at the end of the fiscal period
As of Aug. 31, 2020
0 units
As of Feb. 29, 2020
0 units
Note: Please refer to “Notes Concerning Per Unit Information” on page 24 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 surplus cash distributions. Please refer to “Forecast Assumptions for the Fiscal Periods
Ending Feb. 28, 2021 and Aug. 31, 2021” on page 6 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
663
761

Index1. Results of Operations(1) Results of Operations ...................................................................................................................................................................... 2(A)Overview of the Eighth Fiscal Period ended August 31, 2020 …............................................................................................. 2(i) Major Operational Results of MEL ........................................................................................................................................... 2(ii) Investment Environment and Operational Results of the Eighth Fiscal Period ended August 31, 2020............................ 2(iii) Overview of Financing ............................................................................................................................................................ 2(iv) Overview of Financial Results and Distributions .................................................................................................................... 3(B) Outlook for Next Fiscal Period .................................................................................................................................................... 3(i) Future Management Policies ………………................................................................................................................................... 3(ii) Significant Subsequent Events ................................................................................................................................................ 4(iii) Earnings Forecast ................................................................................................................................................................... 5(2) Risk Factors ……..………………….......................................................................................................................................................... 8
2. Financial Statements(1) Balance Sheet .................................................................................................................................................................................. 9(2) Statement of Income and Retained Earnings .................................................................................................................................. 11(3) Statement of Changes in Net Assets................................................................................................................................................ 12(4) Statement of Cash Distribution ....................................................................................................................................................... 13(5) Statement of Cash Flows ................................................................................................................................................................. 14(6) Notes Concerning Going Concerns Assumption .............................................................................................................................. 14(7) Notes Concerning Significant Accounting Policies .......................................................................................................................... 15(8) Notes Concerning Financial Statements ......................................................................................................................................... 18(9) Change in Number of Investment Units Issued and Outstanding ................................................................................................... 25
3. Reference Information(1) Composition of MEL’s Assets .......................................................................................................................................................... 27(2) Investment Assets …………................................................................................................................................................................ 27(i) Overview of Portfolio ................................................................................................................................................................. 28(ii) Overview of Properties……………………………….……………………………………………………………………………………..................................... 29(iii) Overview of Tenant Agreements ………………..…….…………………………………................................................................................. 30(iv) Overview of Appraisal Reports …….......................................................................................................................................... 32(v) Information Regarding Major Real Estate Properties ………....................................................................................................... 33(vi) Information Regarding Major Tenants…………………………………………………………………………......................................................... 33(vii) Property Distribution ……………………………………………………………………………………………………....................................................... 34(viii) Details of Collateral ……... ……………………………………………………………………………………………....................................................... 36(ix) Capital Expenditure for Owned Properties………..…………………………………………………………......................................................... 36(x) Overview of Property Leasing and Status of Operating Income …..…………………………………....................................................... 37-1-

1. Results of Operations(1) Results of Operations(A)Overview of the Eighth Fiscal Period ended August 31, 2020(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).
As of the end of the reporting fiscal period (Aug. 31, 2020), MEL owned 15 properties (aggregate acquisition
price: 113,787 million yen).
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 Eighth Fiscal Period ended August 31, 2020
During the reporting fiscal period (ended on Aug. 31, 2020), despite the recent signs of recovery, the Japanese
economy faced severe situation as the real economy was hugely affected by the restrictions on economic
activities caused by the global pandemic of COVID-19. Although the economy is expected to slowly recover as
economic activities are resuming with safety precautions taken against the disease, economic uncertainties will
most likely to continue, and it is essential to closely monitor the impacts on the financial and capital markets
going forward. The actual GDP (gross domestic product) for the second quarter of 2020 (from April to June)
recorded a negative growth for the third consecutive quarter with 27.8% decrease on an annualized basis as aresult of slowdown in consumer spending caused by the Japanese government’s declaration of the state of
emergency, as well as the slowdown in export activities.
Investors in the real estate transaction market have become more selective of property types and are highly
motivated to invest in sectors with resilience such as logistics facilities and residential. Investors continue tolook for potential investment opportunities under the current global low interest rate environment and the levelof cap rates of logistics facilities remain low due to stable cash flow.
In the J-REIT market, the Tokyo Stock Exchange REIT Index suffered its worst single-day drop since therecording begun in 2003, dropping by 19% to 1,145.53 point from the previous trading day on March 19, 2020,(53% in comparison to the level as of the end of December 2019). The index then achieved some degree ofrecovery to 1,747.53 point (81% in comparison to the level as of the end of December 2019) as of August 31,
2020.
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
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 (Aug. 31, 2020), MEL owned 15 properties (aggregate acquisition
price: 113,787 million yen) and the occupancy rate remained high, at 99.9% as of the end of the reporting fiscal
period.
(iii) Overview of Financing
MEL aims for financial management with emphasis on soundness and LTV control and also efficient cash
management.

-2-

a. Debt Financing
MEL’s financial strategy is to take consideration of proportion of short and long-term borrowings, thebalance between floating and fixed-interest rate borrowings and maintain a well-diversified maturity profile.
MEL prepaid short-term loan of 1,100 million yen (original repayment date: Oct. 9, 2020) on July 9, 2020
with cash on hand including consumption tax refund for the properties acquired during fiscal period ended
Feb. 29, 2020).
As a result, the balance of MEL’s interest-bearing debt as of the end of the reporting fiscal period (Aug. 31,
2020), was 35,374 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 29.4% as of the end of the reporting fiscal period.
b. Credit Rating
MEL’s credit rating as of the end of the reporting fiscal period (Aug. 31, 2020) was as follows:
Rating Agency
Rating Object
RatingOutlookJapan Credit Rating Agency, Ltd.
Long-term issuer rating
AAStable(iv) Overview of Financial Results and Distributions
As a result of these investment activities and financings, MEL generated operating revenues of 3,342 million
yen, operating income of 1,729 million yen, ordinary income of 1,655 million yen, net income of 1,654 million
yen and distributions per unit of 6,003 yen per unit for the reporting fiscal period.
MEL’s distributions for the same period were 5,411 yen per unit, which included MEL’s profit distributions indeductible 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 distribute all unappropriatedretained earnings for the reporting period, excluding fractions less than one yen. MEL declared the distribution
amount of 1,654,764,965 yen which was the amount equivalent to the maximum integral multiples of numberof investment units issued and outstanding (305,815 investment units) as of the reporting 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). In addition, 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 181,042,480 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 592 yen.

Notes:
1. 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 the amount of anticipatedprofitability, 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 the Appraisal LTV (Note 2), as defined below, to exceed 60%.
2. 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 arerefunded 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,” based on the accumulated expertiseof Mitsubishi Estate Group.

-3-

a. External Growth Strategy
MEL takes advantage of the following two unique features in a hybrid manner: pipeline support from MEC
based on the sponsor support agreement and MJIA’s property sourcing capacity based on its capability toassess investment projects. MEL aims to achieve stable external growth by leveraging strengths of both MEC
and MJIA according to market circumstances (hybrid external growth).
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
a. Issuance of New Investment Units
MEL issued new investment units based on the resolution made by the board of directors on Aug. 13, 2020
and Aug. 24, 2020 and the payment was completed on Sept. 1, 2020 and Sept. 30, 2020 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 and outstanding: 40,500 units
Issue price: 431,701 yen per unit
Total amount issued: 17,483,890,500 yen
Issue amount: 417,236 yen per unit
Net proceeds: 16,898,058,000 yen
Payment date
: September 1, 2020
<Issuance of New Investments Units through the Third-Party Allotment>
Number of units issued and outstanding: 1,922 units
Issue amount: 417,236 yen per unit
Net proceeds: 801,927,592 yen
Payment date
: September 30, 2020
Allotee: SMBC Nikko Securities Inc.
(Reference Information)(A) Property Acquisition
MEL acquired the following properties from the settlement date (Aug. 31, 2020) on and after.
Category

Property Name

Location

Acquisition Price(Millions of yen)

Acquisition
Date

Seller

Logicross Osaka
Osaka,
Domestic business company
5,874(60% co-beneficiary interest)
Osaka(Note 1)
Logicross Nagoya Kasadera
Nagoya,Domestic business company
8,705(60% co-beneficiary interest)
Aichi(Note 1)
Sept. 1,
Logistics
LOGIPORT Osaka Taisho (Note 2)
Osaka,
4,802
OTL2 Godo Kaisha
Facilities (17.5% additional co-beneficiary interest) Osaka
2020
Kazo,
Domestic business company
MJ Logipark Kazo 2
1,637
Saitama(Note 1)
Tagajo,
MJ Logipark Sendai 1
7,388
SD Logistic Fund 6 Godo Kaisha
Miyagi
Total
28,407
Notes:
1. Not disclosed as the seller’s consent has not been obtained.
2. “LOGIPORT Osaka Taisho (17.5% additional co-beneficiary interest)” refers to the 17.5% additional co-beneficiary interest of LOGIPORTOsaka Taisho, and “LOGIPORT Osaka Taisho” refers to the 20% initial co-beneficiary interest of LOGIPORT Osaka Taisho, which was
acquired by MEL on Oct. 9, 2019. The same shall apply throughout this document.

-4-

(iii) Earnings Forecast
Forecasts for the fiscal period ending February 28, 2021 (from Sept. 1, 2020 to Feb. 28, 2021) 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
2,039
6,520
5,857

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Feb. 28, 2021
4,222
2,177
2,040
(Reference)
Fiscal period ending Feb. 28, 2021: Expected number of investment units outstanding at the end of the period: 348,237 units;
Expected Net income per unit: 5,857yen

SCD
Yen
663

Forecasts for the fiscal period ending August 31, 2021 (from Mar. 1, 2021 to Aug. 31, 2021) 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
1,977
6,438
5,677

Millions of yen
Millions of yen
Millions of yen
Fiscal period ending
Aug. 31, 2021
4,215
2,074
1,978
(Reference)
Fiscal period ending Aug. 31, 2021: Expected number of investment units outstanding at the end of the period: 348,237 units;
Expected Net income per unit: 5,677 yen

SCD
Yen
761

The forecast information is calculated based on the assumptions described in “Forecast Assumptions for the Fiscal
Periods Ending Feb. 28, 2021 and Aug. 31, 2021”.
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 surplus cash distributions), and surplus cash
distributions 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.

-5-Forecast Assumptions for the Fiscal Periods Ending Feb. 28, 2021 and Aug. 31, 2021

Items
Accounting
PeriodAssets Under
Management

Operating
Revenues

OperatingExpensesAssumption
 Fiscal period ending Feb. 28, 2021 (9th fiscal period): From Sept. 1, 2020 to Feb. 28, 2021 (181 days)
 Fiscal period ending Aug. 31, 2021 (10th fiscal period): From Mar. 1, 2021 to Aug. 31, 2021 (184 days)
 In addition to its 15 properties MEL owned as of Aug. 31, 2020 (“Properties Owned as of the End of
8th Fiscal Period”), MEL acquired Logicross Osaka, Logicross Nagoya Kasadera, LOGIPORT Osaka
Taisho (17.5% additional co-beneficiary interest), MJ Logipark Kazo 2 and MJ Logipark Sendai 1 on
Sept. 1, 2020 (“Properties Acquired during the 9th Fiscal Period”), and currently MEL owns 19
properties.
 It is assumed there will be no material change (including acquisition of new properties anddispositions of existing properties) in the operational status of the 19 properties MEL owned as ofOct. 15, 2020, up until Aug. 31, 2021.
 The actual results may change due to the acquisition of new properties or the disposition ofexisting properties, etc.
 Operating rental revenues take into account factors such as market trends and thecompetitiveness, etc. of each property based on information provided by the seller of theProperties Acquired during the 9th Fiscal Period and operating results held by the AssetManagement Company for the Properties Owned as of the End of 8th Fiscal Period.
 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
Feb. 28, 2021
Aug. 31, 2021
Total Operating Rental Expenses
1,552
1,617
Facility Management Fee
202
206
Utilities Cost
135
129
Repair and Maintenance Expenses
8752
Property Taxes
314
418
Depreciation
770
780
Total General and Administrative Expenses
493
523
Asset Management Fee
347
367
Sponsor Support Fee
7071 Of operating rental expenses, which is the main operating expense, expenses except depreciation
are calculated 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 during the 9th Fiscal
Period will be expensed starting from the fiscal period ending Aug. 31, 2021.
 Operating rental income (excluding profit from sale of real estate) after deducting operating rental
expenses (including depreciation) is assumed to be 2,670 million yen and 2,598 million yen for the
fiscal periods ending Feb. 28, 2021 and Aug. 31, 2021, respectively.
 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.

-6-Non-operating
Expenses

Interestbearing Debt

Investment
Units

Distributions
Per Unit(excluding
surplus cash
distributions)Surplus CashDistributions
Per Unit For the fiscal period ending Feb. 28, 2021, it is assumed that 136 million yen will be incurred as nonoperating expenses, which includes 93 million yen for interest expenses and other debt-related costs,
6 million yen as amortization of organization expenses and 37 million yen in relation to the offeringsof the new investment units.
 For the fiscal period ending Aug. 31, 2021, it is assumed that 96 million yen will be incurred as nonoperating expenses, which includes 92 million yen for interest expenses and other debt-related
costs and 4 million yen as amortization of organization expenses.
 The balance of MEL’s interest-bearing debt on an accounting basis as of today is 47,574 million yen.
 It is assumed that, MEL will repay the short-term debt of 1,300 million yen obtained on Sept. 1, 2020
using cash on hand including the proceeds of tax refund during the fiscal period ending Aug. 31, 2021.
 The total expected amount of interest-bearing debt at the end of the fiscal periods ending Feb. 28,
2021 and Aug. 31, 2021 is estimated to be 47,574 million yen and 46,274 million yen, respectively.
 LTV at the end of the fiscal periods ending Feb. 28, 2021 and Aug. 31, 2021 is estimated to be 31.5%
and 30.9%, 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 Aug. 31, 2021. Currently, there are 348,237 units issued and outstanding.
 Distributions per unit (excluding surplus cash distributions) and surplus cash distributions per unit for
the fiscal periods ending Feb. 28, 2021 and Aug. 31, 2021 are calculated based on 348,237 investment
units, which is the total number of investment units expected to be issued and outstanding at the endof the fiscal periods ending Feb. 28, 2021 and Aug. 31, 2021.
 Distributions per unit (excluding surplus cash distributions) are calculated based on the premise of
the distribution policy in the Articles of Incorporation of MEL.
 Distributions per unit (excluding surplus cash distributions) 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.
 Surplus cash distributions per unit are calculated based on the assumption that the cash
distributions will be distributed in accordance with the fund distribution policy of the Articles ofIncorporation of MEL. It is assumed that the surplus cash distributions (on an ongoing basis) in thefiscal period ending Feb. 28, 2021 will be 230 million yen, assuming that an amount equivalent to
30% of depreciation of the period will be distributed. For the fiscal period ending Aug. 31, 2021, theamount of distributions per unit (excluding surplus cash distributions) is expected to temporarily
decrease due to a temporary decline in operating rental revenues. It is therefore assumed that 234
million yen as ongoing surplus cash distributions (an amount equivalent to 30.0% of depreciation of
the period) and 31 million yen as surplus cash distributions on a one-time basis (an amountequivalent to 4.0% of depreciation of the period) will be distributed for the purpose of equalizing
the amount of distributions per unit (including surplus cash distributions).
 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 foreach asset and depreciable life, etc. Surplus cash distributions, which will be based on the amountof depreciation expenses, may change accordingly.
 There may be cases where MEL implements distribution of cash in surplus of the distributableamount to 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 the board of directors of MEL deems such distribution to be appropriate (1) in light ofthe economic environment, real estate market, lease market or other trends; (2) when the amountof 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) in other ways to maximize the interest of investors. When MEL
implements distribution of cash in surplus of the distributable amount, it limits the amount to thetotal of the amount of income for the operating period in question and the amount stipulated underlaws and ordinances (inclusive of the rules 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-7-

Others

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
incurrence of 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 aconsideration 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 fromproperty 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 theoperating period in question (excluding tax loan) + Reversal from security deposit reserves(excluding cases where security deposits are refunded according to leasing agreements withtenants)
B = Total assets on the balance sheet for the fiscal period related to the operating period inquestion – 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
 It is assumed that no any revision that will have an impact on the forecast information above will
be made with regard to the laws and regulations, tax system, accounting standards, listing rules of
the Tokyo 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 realestate market conditions, etc.

(2) Risk Factors
No significant changes have occurred to the risk factors since the most recent Securities Report (filed on May 29,2020) and the Securities Registration Statement (filed on Aug. 13, 2020); therefore, their descriptions are not stated
here.

-8-

2. Financial Statements(1) Balance Sheet
Thousands of yen
As ofFebruary 29, 2020
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
Fixed assets:
Property and equipment
Buildings in trust
Less: accumulated depreciation*1

Buildings in trust, net

August 31, 2020

3,003,699
4,283,495
21,44815,967
1,005,408
1,010

3,504,701
4,389,936
27,45914,807
15,8458,331,030

7,952,750

48,149,573(2,402,658)*1

45,746,915

Structures in trust
Less: accumulated depreciation*1

Structures in trust, net

1,759,218(64,520)
1,694,698

48,174,980(2,987,424)
45,187,555*1

1,760,155(81,973)
1,678,181

Machinery and equipment in trust

26,03941,356

Less: accumulated depreciation(599)(1,989)Machinery and equipment in trust, net

25,44039,367

5,697
(676)

11,091(1,515)

5,020

9,576

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

65,551,550

65,551,550

Total property and equipment

113,023,624

112,466,230

Intangible assets
Software
Other intangible assets

4,885
741

3,935
691

Total intangible assets

5,626

4,626

16
38,695
10,00011
33,07810,00048,71243,090113,077,964

112,513,946

16,127
16,127

10,07910,079121,425,122

120,476,777

Investments and other assets
Deferred tax assets
Long-term prepaid expenses
Security deposit
Total investments and other assets
Total fixed assets
Deferred assets:
Organization expenses
Total deferred assets
Total assets-9-Thousands of yen
As
February 29, 2020

August 31, 2020

LIABILITIESCurrent liabilities:
Operating accounts payable
Short-term loans payable
Accounts payable
Distributions payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Advances received
Deposits received

89,8912,050,000
9,754
6,394
355,054944
558,49216

90,602950,000
8,322
6,017
419,864837
204,777
528,045-

Total current liabilities

3,070,548

2,208,467

34,424,000
2,129,916

34,424,000
2,195,412

36,553,916

36,619,412

39,624,465

38,827,879

80,744,051(576,021)

80,744,051(750,029)

Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities
NET ASSETS
Unitholders’ equity
Unitholders’ capital
Unitholders’ capital, gross
Deduction from unitholders’ capital

80,168,030

79,994,021

SurplusRetained earnings

Unitholders’ capital, net

1,632,627

1,654,877

Total surplus

1,632,627

1,654,877

Total unitholders’ equity

81,800,657

Total net assets*2

Total liabilities and net assets

81,800,657
121,425,122-10-

81,648,898*2

81,648,898
120,476,777

(2) Statement of Income and Retained Earnings
Thousands of yen
For the fiscal period from
For the fiscal period from
Sept. 1, 2019 toMar. 1, 2020 toFeb. 29, 2020
Aug. 31, 2020

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
Insurance income
Refund of Property taxes
Total non-operating income
Non-operating expenses:
Interest expenses
Borrowing related expenses
Amortization of organization expenses
Amortization of investment unit issuance expenses
Losses due to disaster
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

-11-

*1
*1

3,046,460
154,419
3,200,880*1*1

3,179,904
162,864
3,342,769*1

1,076,349
251,817
1,099
18,6242,400
66,301
34,562
1,451,155
1,749,725*1

1,187,243
307,446
1,150
16,7842,400
66,88030,886
1,612,790
1,729,97833
15,442
5,279
20,755

36
2,174
2,211

65,512
3,055
6,047
47,254
11,885
3,200
136,956
1,633,525
1,633,525
949
(3)
946
1,632,579
48
1,632,627

68,8801,723
6,047
76,651
1,655,538
1,655,538
842
5
848
1,654,690
187
1,654,877

(3) Statement of Changes in Net Assets
The Previous Period (from Sept. 1, 2019 to Feb. 29, 2020)
Thousands of yen
Unitholders' equity
Unitholders' capital

Balance as of
Sept. 1, 2019
Change during
the period
Issuance of new
investments
Distributions inexcess ofretainedearnings
Surplus cash
distributions
Net income
Total change
during theperiodBalance as ofFeb. 29, 2020

Unitholders’capital, gross

Deduction ofunitholders’capital61,262,651

SurplusTotal
unitholders'equityTotal net
assetsUnitholders’capital, net

Unappropriatedretainedearnings

Total surplus(430,007)

60,832,644

1,211,916

1,211,916

62,044,560

62,044,560

19,481,400-

19,481,400--

19,481,400

19,481,400-(146,014)(146,014)--(146,014)(146,014)---(1,211,867)(1,211,867)(1,211,867)(1,211,867)

-

-

-

1,632,579

1,632,579

1,632,579

1,632,579

19,481,400(146,014)

19,335,385

420,711420,71119,756,096

19,756,096*1 80,744,051(576,021)

80,168,030

1,632,627

1,632,627

81,800,657

81,800,657

The Reporting Period (from Mar. 1, 2020 to Aug. 31, 2020)
Thousands of yen
Unitholders' equity
Unitholders' capital

Balance as of Mar.
1, 2020
Change during theperiodDistributions inexcess of retained
earnings
Surplus cash
distributions
Net income
Total change
during the period
Balance as of Aug.
31, 2020

Surplus

Total net
assetsUnitholders’capital, gross

Deduction ofunitholders’capitalUnitholders’capital, net

Unappropriatedretained earnings

Total surplus

Totalunitholders'equity80,744,051(576,021)

80,168,030

1,632,627

1,632,627

81,800,657

81,800,657-(174,008)

-

-

-

-

(174,008)--

1,654,690(1,632,440)(1,632,440)(174,008)-(1,632,440)(174,008)

1,654,690(1,632,440)-(174,008)

22,24922,249*1 80,744,051(750,029)(174,008)

1,654,877

1,654,877(151,759)(151,759)-

79,994,021-12-

1,654,690

81,648,898

1,654,690

81,648,898

(4) Statement of Cash Distribution
Yen
For the fiscal period from
Sept. 1, 2019 toFeb. 29, 2020

For the fiscal period from
Mar. 1, 2020 toAug. 31, 2020

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

1,632,627,605
174,008,735

181,042,480

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

1,806,449,205(5,907)
1,632,440,470

1,835,807,445(6,003)
1,654,764,965(5,338)(5,411)

174,008,735

181,042,480

(569)

(592)

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

1,654,877,226

187,135
Pursuant to the “Policy on theDistribution of Funds” as defined in
Article 35, Paragraph 1 of the Articles ofIncorporation,theamountofdistributions shall be the amount which
does not exceed the amount of profits
but exceeds 90% of the distributableprofit as defined in Article 67-15 of theSpecial Taxation Measures Act. Based on
the policy, MEL declared distribution
amount of 1,632,440,470 yen. This
amount was equivalent to the maximum
integral multiples of number ofinvestment units issued and outstanding(305,815 units) as of the end of fiscal
period. Based on the distribution policy
as defined in Article 35, Paragraph 2 of
the Articles of Incorporation, MEL shallmake Surplus Cash Distributions (SCD),
defined as distributions in excess ofretained earnings, as a return ofunitholders’ capital, each fiscal period on
a continuous basis. Accordingly, MEL
declared SCD of 174,008,735 yen as areturn of unitholders’ capital, which was
the amount equivalent to approximately
30% of depreciation expense.

112,261Pursuant to the “Policy on the Distributionof Funds” as defined in Article 35,
Paragraph 1 of the Articles ofIncorporation,theamountofdistributions shall be the amount which
does not exceed the amount of profits but
exceeds 90% of the distributable profit as
defined in Article 67-15 of the Special
Taxation Measures Act. Based on thepolicy, MEL declared distribution amountof 1,654,764,965 yen. This amount was
equivalent to the maximum integral
multiples of number of investment units
issued and outstanding (305,815 units) asof the end of fiscal period. Based on the
distribution policy as defined in Article 35,
Paragraph 2 of the Articles ofIncorporation, MEL shall make Surplus
Cash Distributions (SCD), defined as
distributions in excess of retained
earnings, as a return of unitholders’capital, each fiscal period on a continuous
basis. Accordingly, MEL declared SCD of
181,042,480 yen as a return ofunitholders’ capital, which was theamount equivalent to approximately 30%
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 suchexcess distribution amount is appropriate.

-13-(5) Statement of Cash Flows

Cash flows from operating activities:
Income before income taxes
Depreciation
Amortization of investment unit issuanceInterest income
Interest expenses
Insurance income
Reduction entry of tangible fixed assets
Losses due to disaster
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
Insurance income due to disaster
Payments due to disaster
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 of long-term loans payable
Proceeds from issuance of new investment units
Payment of distributions of retained earnings
Payment of distributions in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period (Note 3)

Thousands of yen
For the period ended
For the fiscal period from
For the fiscal period from
Sept. 1, 2019 toMar. 1, 2020 toFeb. 29, 2020
Aug. 31, 2020

(6) Notes Concerning Going Concerns Assumption
Not applicable-14-

1,633,525
581,736
47,254(33)
65,512(15,442)
3,200
11,885653(1,005,408)(5,667)(27,211)(10,476)(1,782)
66,326(138,971)
152,685
5,806
1,363,593
33(63,058)
15,442(2,249)(886)
1,312,875

1,655,538
605,448(36)
68,880(6,010)1,005,408
1,159
5,617
11,159(1,432)64,162
204,777(30,446)(8,803)
3,575,421
36(68,232)(9,635)(949)
3,496,640(31,063,835)(47,866)

615,973

78,145(27,619)(12,650)(30,475,481)

17,6282,950,000(900,000)
14,500,000(4,000,000)
19,434,145(1,212,050)(145,986)
30,626,108
1,463,502
5,823,693*1 7,287,195(1,100,000)(1,632,883)(173,942)(2,906,826)
607,443
7,287,195*1 7,894,638

(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
12 years
Tools, furniture and fixtures 4-10 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 significant matters which constitutethe basis for preparation of financial
statements

estimated useful lives.
(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
Organization Expenses
All organization expenses are amortized over five years using straight-line
method.
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.
(1) 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(2) Accounting treatment of consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusiveof consumption taxes.

-15-

(Accounting standards issued but not yet effective)
・“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued
on Mar. 31, 2020)
・“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 issued on Mar. 31,
2020)
・“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on
Mar. 31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the UnitedStates have jointly developed comprehensive accounting standards for revenue recognition and issued “Revenue fromContracts with Customers” (IFRS 15 (IASB) and Topic 606 (FASB)) in May 2014. Given the situation where IFRS 15 will beapplied from fiscal years beginning on or after January 1, 2018 and that Topic 606 will be applied from fiscal years
beginning after December 15, 2017, the ASBJ has developed comprehensive accounting standards for revenue recognition
and issued them together with the implementation guidance. The basic policy of the ASBJ when it developed theaccounting standards for revenue recognition was to specify the accounting standards, incorporating the basic principles
of IFRS 15 as a starting point, from the perspective of comparability between financial statements, which is one of thebenefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which
consideration should be given, such as practices that have been conducted thus far in Japan, alternative treatments will be
added to the extent to which comparability is not impaired.
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending February 28, 2022.
(3) Impact of applying the accounting standards
The impact of applying “Accounting Standard for Revenue Recognition” and its guidance on The financial statements iscurrently under evaluation.
・“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019)
・”Accounting Standard for Financial Instruments” (ASBJ Statement No.10 issued on July 4, 2019)
・“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued on July4, 2019)
・“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on
Mar. 31, 2020)(1) Overview
The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13 “Fair Value
Measurement” (IASB) and Topic 820 “Fair Value Measurement” (FASB)). The ASBJ repeatedly considered the guidance
regarding fair value of financial instruments and disclosure in order to improve the comparability with such international
accounting standards, and issued “Accounting Standard for Fair Value Measurement” and “Implementation Guidance on
Accounting Standard for Fair Value Measurement.”(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending February 28, 2022.
(3) Impact of applying the accounting standards
The impact of applying the “Accounting Standard for Fair Value Measurement” and its guidance on The financial
statements is currently under evaluation.
・“Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31 issued on Mar. 31, 2020)-16-

(1) Overview
Paragraph 125 of International Accounting Standard 1 (IAS 1), “Presentation of Financial Statements,” (issued by the
IASB in 2003) requires disclosure of information about the “assumptions the entity makes about the future, and othermajor sources of estimation uncertainty.” In this regard, there has been a request that the major sources of estimation
uncertainty should be disclosed in the notes to financial statements under Japanese GAAP to provide useful information
to users of financial statements. In response to this request, the ASBJ developed and issued “Accounting Standard forDisclosure of Accounting Estimates.”
The Accounting Standards Committee's basic policy for the development of this standard is not to expand individual
notes, but to indicate the principles (disclosure purposes). Specific disclosures are to be determined by corporates basedon the purpose of disclosure, and are to be developed based on the rules set forth in IAS No. 1, Item 125.
(2) Scheduled date of application
The accounting standard will be applied from the end of the fiscal period ending August 31, 2021.
・“Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections” (ASBJ Statement
No. 24 issued on Mar. 31, 2020)(1) Overview
The ASBJ’s Standards Advisory Council recommended that the ASBJ consider enhancing disclosures for notes relating to“accounting policies and methods adopted in the cases where the relevant accounting standards were not clear.” In
response to such recommendations, the ASBJ issued the revised “Accounting Standard for Accounting Policy Disclosures,
Accounting Changes and Error Corrections.”(2) Scheduled date of application
The accounting standard will be applied from the end of the fiscal period ending August 31, 2021.

-17-

(8) Notes Concerning Financial Statements(Notes Concerning Balance Sheet)*1 Reduction entry of tangible fixed assets
Feb. 29, 2020

Buildings in trust
Structures in trustThousands of yen
As of31,2207,008

Aug. 31, 2020

31,2207,008*2 Minimum net assets as required by Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
Feb. 29, 2020

Thousands of yen
As of50,000Aug. 31, 2020
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
Sept. 1, 2019 toMar. 1, 2020 toFeb. 29, 2020
Aug. 31, 2020

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)

2,910,265
136,194
3,046,460

3,035,383
144,521
3,179,904

104,384
50,035
154,419
3,200,880

111,023
51,841
162,864
3,342,769

135,358
215,768
5,435
21,59699,216
580,736
2,301
15,935

104,652
313,996
4,957
41,40699,083
604,448
2,427
16,272

1,076,349

1,187,243

2,124,531

2,155,525(Notes Concerning Statement of Unitholders’ Equity)
For the fiscal period from
Sept. 1, 2019 toFeb. 29, 2020

For the fiscal period from
Mar. 1, 2020 toAug. 31, 2020

Number of investment units authorized

10,000,000 units

10,000,000 units

Number of investment units issued andoutstanding

305,815 units

305,815 units-18-

(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
Thousands of yen
For the fiscal period from
For the fiscal period from
Sept. 1, 2019 toMar. 1, 2020 toFeb. 29, 2020
Aug. 31, 2020

Cash and deposits

3,003,699

3,504,701

Cash and deposits in trust

4,283,495

4,389,936

Cash and cash equivalents

7,287,195

7,894,638(Notes Concerning to Lease Contracts)
Operating lease transactions (as lessor)
Unearned rental revenue

Thousands of yen
For the fiscal period from
For the fiscal period from
Sept. 1, 2019 toMar. 1, 2020 toFeb. 29, 2020
Aug. 31, 2020

Due within one year

6,432,330

5,853,529

Due after one year

38,098,308

34,518,339

Total

44,530,639

40,371,869(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 or theissuance of new investment units.
In borrowing funds, MEL takes consideration in interest rate trend, debt cost, floating or fixed interest rate,borrowing period and repayment 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.
MEL generally invests surplus funds in bank deposits, considering the safety and liquidity of the investment andalso reflecting the market environment and cash positions of MEL itself. MEL enters into derivative transactions
solely for the purposes of reducing risks of rising interest rates related to financings and other types of risks. MEL
does not use derivative transactions for speculative purposes. Not applicable for the reporting period.
(2) Type of Financial Instruments, related Risks and Risk Management System
Bank loans are mainly made to procure funds for acquisition of properties, repayment of bank loans. Although
MEL is exposed to liquidity risks upon repayment, by diversifying the maturities and lending institutions, securingliquidity of cash in hand and managing such liquidity risks by preparing and monitoring cash flows projection, suchrisks are maintained under control. In addition, some loans bear floating interest rates and are exposed topotential 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 based on their quoted market price, if available. When there is no-19-

quoted market price available, fair value is based on a price that is reasonably estimated. Since various
assumptions and factors are reflected in estimating the fair value, different assumptions and factors could resultin a different value.
2.

Estimated Fair Value of Financial Instruments
The book value, fair value and differences between the values as of Feb. 29, 2020 are as follows: Financial
instruments for which the fair value is extremely difficult to estimate are excluded from the following table (see Note
2 below).
Thousands of yen
Book value

Fair value (Note 1)

Difference(1) Cash and deposits

3,003,699

3,003,699-(2) Cash and deposits in trust

4,283,495

4,283,495-

7,287,195

7,287,195-

Total assets(3) Short-term loans payable

2,050,000

2,050,000-(4) Long-term loans payable

34,424,000

34,909,833

485,833

Total liabilities

36,474,000

36,959,833

485,833

The book value, fair value and differences between the values as of Aug. 31, 2020 are as follows: Financial
instruments for which the fair value is extremely difficult to estimate are excluded from the following table (see Note
2 below).
Thousands of yen
Book value

Fair value (Note 1)

Difference(1) Cash and deposits

3,504,701

3,504,701-(2) Cash and deposits in trust

4,389,936

4,389,936-

7,894,638

7,894,638-

Total assets(3) Short-term loans payable

950,000

950,000-(4) Long-term loans payable

34,424,000

34,648,574

224,574

Total liabilities
35,374,000(Note 1) Methods to estimate fair values of financial instruments

35,598,574

224,574(1) Cash and deposits and (2) Cash and deposits in trust (3) Short-term loans payable
Due to the short maturities, the book value of these instruments is deemed a reasonable approximation of thefair value, and therefore, the book value is used as the fair value.
(4) 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 short period of time, the fair value is approximately equal tothe book value. Thus, the book value is used.
(Note 2) Financial instruments for which the fair value is extremely difficult to estimate
Thousands of yen
As ofFeb. 29, 2020
Tenant leasehold and security deposits in trust *2,129,916-20-

Aug. 31, 2020
2,195,412

* Because tenant leasehold and security deposits and tenant leasehold and security deposits in trust have no observable andavailable market price and it is impracticable to reasonably estimate their future cash flows, their fair value is not assessedherein.
(Note 3) Redemption schedule for monetary claims after Feb. 29, 2020

Cash and deposits
Cash and deposits in trust
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fourto two years to three years
to five years
years
one yearyears
3,003,699
4,283,495
7,287,195-

Redemption schedule for monetary claims after Aug. 31, 2020

Cash and deposits
Cash and deposits in trust
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fourto two years to three years
to five years
years
one yearyears
3,504,701
4,389,936
7,894,638-(Note 4) Repayment schedule for debt after Feb. 29, 2020

Short-term loans payable
Long-term loans payable
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fourto two years to three years
to five years
years
one yearyears
2,050,000
2,211,000
3,310,000
6,540,000
3,400,000 18,963,000
2,050,000
2,211,000
3,310,000
6,540,000
3,400,000 18,963,000

Repayment schedule f or debt after Aug. 31, 2020

Short-term loans payable
Long-term loans payable
Total

Thousands of yen
Due after
Due after four Due after fiveDue within Due after one Due after two
three to fourto two years to three years
to five years
years
one yearyears
950,000
2,211,000
3,310,000
6,540,000
3,400,000 18,963,000
950,000
2,211,000
3,310,000
6,540,000
3,400,000 18,963,000(Notes Concerning Investment Securities)
For the periods ended Feb. 29, 2020 and Aug. 31, 2020
Not applicable(Notes Concerning Derivative Transactions)
For the periods ended Feb. 29, 2020 and Aug. 31, 2020
Not applicable-21-

(Notes Concerning Retirement Payment)
For the periods ended Feb. 29, 2020 and Aug. 31, 2020
Not applicable(Notes Concerning Deferred Tax Accounting)
1. Primary components of deferred tax assets and deferred tax liabilities

Thousands of yen
As ofFeb. 29, 2020
Enterprise tax payable
Subtotal deferred tax assets
Total deferred tax assets
Net deferred tax assets

Aug. 31, 2020
16
16
16
16

11
11
11
11

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
Feb. 29, 2020
Aug. 31, 2020
Statutory tax rate
31.51%
31.46%
Adjustments:
Deductible cash distributions(31.49%)(31.45%)
Other
0.04%
0.04%
Actual effective income tax rate
0.06%
0.05%

(Notes Concerning Equity Earnings of Affiliate Companies)
For the periods from Sept. 1, 2019, to Feb. 29, 2020, and from Mar. 1, 2020, to Aug. 31, 2020
Not applicable(Notes Concerning Related Party Transaction)
1. Transactions with Account Balances with the Parent company and Major Unit Holders
For the periods from Sept. 1, 2019, to Feb. 29, 2020, and from Mar. 1, 2020, to Aug. 31, 2020
Not applicable
2.

Transactions and Account Balances with Affiliates
For the periods from Sept. 1, 2019, to Feb. 29, 2020, and from Mar. 1, 2020, to Aug. 31, 2020
Not applicable

3.

Transactions and Account Balances with Companies under Common Control
For the periods from Sept. 1, 2019, to Feb. 29, 2020, and from Mar. 1, 2020, to Aug. 31, 2020
Not applicable

4.

Transaction and Account Balances with Board of Directors and Individual Unitholders
For the periods from Sept. 1, 2019, to Feb. 29, 2020, and from Mar. 1, 2020, to Aug. 31, 2020
Not applicable(Notes Concerning Asset Retirement Obligations)
For the periods ended Feb. 29, 2020 and Aug. 31, 2020
Not applicable-22-

(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
Sept. 1, 2019 toMar. 1, 2020 toFeb. 29, 2020
Aug. 31, 2020

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

82,550,517

113,023,624

Changes during the period (Note 2)

30,473,107(557,394)

Balance at the end of the period

113,023,624

112,466,230

Fair value at the end of the period (Note 3)
122,500,000
123,615,000(Note 1) Book value is calculated by deducting accumulated depreciation from acquisition cost.
(Note 2) The increase for the fiscal period ended Feb. 29, 2020 was primarily a result of acquiring five new properties for a total of
31,015,705 thousand yen. The decrease was primarily a result of the recognition of depreciation, which amounted to580,736 thousand yen. The increase for the fiscal period ended Aug. 31, 2020 was primarily a result of the recognition of
CAPEX which amounted 47,053 thousand yen. The decrease was primarily a result of the recognition of depreciation, whichamounted to 604,448 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 Sept. 1, 2019, to Feb. 29, 2020
(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 Mar. 1, 2020, to Aug. 31, 2020
(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-23-

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
Sept. 1, 2019 toFeb. 29, 2020
Net assets per unit

For the fiscal period from
Mar. 1, 2020 toAug. 31, 2020

267,484

266,987

Net income per unit
5,563
5,410
(Note 1) Net income per unit is calculated by dividing net income for the period by the weighted average number of investment
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
Sept. 1, 2019 toMar. 1, 2020 toFeb. 29, 2020
Aug. 31, 2020
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)

1,632,579

1,654,690--

1,632,579

1,654,690

293,461

305,815(Notes Concerning Significant Subsequent Events)
1. Issuance of New Investment Units
MEL issued new investment units based on the resolution made by the board of directors on Aug. 13, 2020
and Aug. 24, 2020 and the payment was completed on Sept. 1, 2020 and Sept. 30, 2020 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 and outstanding: 40,500 units
Issue price: 431,701 yen per unit
Total amount issued: 17,483,890,500 yen
Issue amount: 417,236 yen per unit
Net proceeds: 16,898,058,000 yen
Payment date
: September 1, 2020
<Issuance of New Investments Units through the Third-Party Allotment>
Number of units issued and outstanding: 1,922 units
Issue amount: 417,236 yen per unit
Net proceeds: 801,927,592 yen
Payment date
: September 30, 2020
Allotee: SMBC Nikko Securities Inc.

-24-

(9) Change in Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital from the date ofestablishment to the end of Aug. 31, 2020 are as follows:
Date

Type of Issue

July 14, 2016

Private placement
for incorporation

Sept. 28, 2016

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

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

Note

200,000

200,000

2,000

2,000

(Note 2)

Private offering

1,800,000

2,000,000

18,00020,000(Note 3)June 15, 2017

Reverse split ofinvestment units-

2,000,000(12,000)

8,000(Note 4)

Sept. 13, 2017

Public offering

49,678,200

51,678,200

198,000

206,000(Note 5)

2,007,200

53,685,400

8,000

214,000(Note 6)

(120,910)

53,564,490-

214,000(Note 7)

7,216,429

60,780,919

30,300244,300(Note 8)360,821

61,141,741

1,515

245,815(Note 9)(129,898)

61,011,843-

245,815(Note 10)

(179,199)

60,832,644-

245,815(Note 11)18,556,033

79,388,677

57,150302,965(Note 12)925,366

80,314,044

2,850

305,815(Note 13)(146,014)

80,168,030-

305,815(Note 14)

(174,008)

79,994,021-

305,815(Note 15)

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

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)

Notes:
1. “Unitholders’ capital” is the amount after deducting the “Deduction from unitholders’ capital.”
2. Investment units were issued at an issue price of 100,000 yen per unit upon the incorporation of MEL.
3. Investment units were issued at an issue price of 100,000 yen per unit.
4. A 0.4-for-1 reverse split of investment units was conducted, with June 15, 2017 as the effective date.
5. New investment units were issued through public offering at an issue price of 260,000 yen (paid-in amount of 250,900yen) per unit.
6. New investment units were issued through third-party allotment at a paid-in amount of 250,900 yen per unit.
7. Cash distributions for the fiscal period ended Feb. 2018 in the amount of 565 yen per unit as return of capital. It was
decided on Apr. 13, 2018 and started payment on May 21, 2018.
8. 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.
9. New investment units were issued through third-party allotment at a paid-in amount of 238,166 yen per unit.
10. 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.
11. 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.
12. 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.
13. New investment units were issued through third-party allotment at a paid-in amount of 324,690 yen per unit.

-25-

14. 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.
15. Cash distributions for the fiscal period ended Feb. 2020 in the amount of 569yen per unit as return of capital. It was
decided on Apr. 17, 2020 and started payment on May 20, 2020.

-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)

Eighth fiscal period(As of Aug. 31, 2020)
Retained amount
Ratio of total assets(Millions of yen)(%)
(Note 1)
63,44352.7
18,14815.1
13,712
11.4
11,495
9.5
5,666
4.7
112,466
93.4
8,010
6.6
120,476
100.0

Eighth fiscal period(As of Aug. 31, 2020)

Ratio of total asset(%)

Total liabilities (Note 5)(Note 6)
38,82732.2
Total net assets (Note 5)
81,648
67.8
Total assets (Note 5)
120,476
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 Aug. 31, 2020).
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 Aug. 31, 2020).
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 Aug. 31, 2020 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 nameAcquisition Investment Book value Appraisal value Acquisition
price (Millions ratio (%) (Millions of(Millions ofdateof yen) (Note 1) (Note 2)yen)yen)(Note 3)(Note 4)

Logicross Fukuoka Hisayama

Hisayama,
Kasuya, Fukuoka

5,770

5.1

5,596

6,150

Sept. 14,2017

Logicross Atsugi

Atsugi, Kanagawa

8,440

7.4

8,416

9,200

Sept. 3,2018

Logicross Kobe Sanda

Kobe, Hyogo

3,900

3.4

3,891

4,230

Sept. 3,
2018

LOGIPORT Sagamihara(Note 5)

Sagamihara,

21,36418.8

20,94923,500

Sept. 14,2017

LOGIPORT Hashimoto(Note 6)

Sagamihara,
Kanagawa

18,20016.0

17,897

20,295

Sept. 14,
2017

Osaka, Osaka

5,682

5.0

5,706

6,020

Funabashi, Chiba

5,400

4.7

5,239

6,560

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

5.8

6,540

7,020

MJ Logipark Kazo 1

Kazo, Saitama

1,272

1.1

1,252

1,430

MJ Logipark Osaka 1

Osaka, Osaka

6,090

5.4

5,978

6,830

MJ Logipark Fukuoka 1

Umi,
Kasuya, Fukuoka

6,130

5.4

5,899

6,440

MJ Logipark Tsuchiura 1

Tsuchiura, Ibaraki

3,133

2.8

3,147

3,420

MJ Logipark Nishinomiya 1

Nishinomiya, Hyogo

2,483

2.2

2,571

2,640

MJ Logipark Kasugai 1

Kasugai, Aichi

13,67012.0

13,712

14,100

MJ Industrial Park Sakai(Land)

Sakai, Osaka

5,600

4.9

5,666

5,780

113,787

100.0

112,466

123,615

LOGIPORT Osaka Taisho(Note 7)
Logistics MJ Logipark Funabashi 1
facilities

OthersLocation

Kanagawa

Total

Oct. 9,2019
Sept. 29,2016
Sept. 14,2017
Sept. 14,2017
Sept. 14,2017
Sept. 14,2017
Sept. 2,2019
Oct. 9,2019
Oct. 9,2019
Oct. 9,2019-

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 Aug. 31,
2020. 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.
“Acquisition price” and “Appraisal value” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiaryinterest ratios (49%).
6.
“Acquisition price” and “Appraisal value” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiaryinterest ratios (45%).
7.
“Acquisition price” and “Appraisal value” of LOGIPORT Osaka Taisho is shown with the values corresponding to the co-beneficiaryinterest ratios (20%).

-28-

(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

Logistics
Facilities

OthersProperty nameLand area(㎡)(Note 1)

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

LOGIPORT Sagamihara (Note 5)

94,197.27

200,252.53(98,123.73)

88,609.64

88,316.94

Aug. 2013

LOGIPORT Hashimoto (Note 6)

67,746.26

145,809.59(65,614.31)

58,487.96

58,436.88

Jan. 2015

LOGIPORT Osaka Taisho(Note 7)55,929.57

117,045.04(23,409.00)

21,376.84

21,356.90

Feb. 2018

MJ Logipark Funabashi 1

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 Industrial Park Sakai (Land)87,476.71-

87,476.71

87,476.71-

511,375.52

762,245.13(486,285.01)

551,837.67

551,473.95

-

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 statedcorresponding to each co-beneficiary interest (49%, 45% and 20%). “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 to the first decimal place
2. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Aug. 31, 2020, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to the nearest
square meter. It does not include the leased area indicated in the lease agreements concerning shops, vending machines,
photovoltaic power generation facilities and parking lots.
3. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Aug. 31, 2020, 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.
4. “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.
5. “Total leasable area” and “Total leased area” of LOGIPORT Sagamihara is shown with the values corresponding to the cobeneficiary interest ratios (49%).
6. “Total leasable area” and “Total leased area” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiaryinterest ratios (45%).
7. “Total leasable area” and “Total leased area” of LOGIPORT Osaka Taisho is shown with the values corresponding to the cobeneficiary interest ratios (20%).

-29-

(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

Property nameSecurity
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
Mitsubishi Estate
4.0
2
disclosed
disclosed(1.7)
Co., Ltd.
(Note 10)(Note 10)Not
Not
MITAKA SOKO
10.0
1
disclosed
disclosed(6.6)
Co., Ltd.
(Note 10)(Note 10)
Not
Not
Fresh Creator
30.0
1
disclosed
disclosed(26.8)
Co., Ltd.
(Note 10)(Note 10)

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

Logicross Fukuoka
Hisayama

34,878.55

34,878.55

100.0

Logicross Atsugi

29,895.80

29,895.80

100.0

Logicross Kobe Sanda

12,844.35

12,844.35

100.0

LOGIPORT Sagamihara(Note 11)88,609.64

88,316.94

99.7

18 S･V･D Co., Ltd.

1,274

299

7.2
(2.8)

LOGIPORT Hashimoto(Note 12)58,487.96

58,436.88

99.9

13

KDDI
Corporation

932

228

6.4
(2.8)

LOGIPORT Osaka Taisho(Note 13)

21,376.84

21,356.90

99.9

11

Toshiba Logistics
Corporation

310

74

5.5
(3.7)

MJ Logipark Funabashi 1

18,232.07

18,232.07

100.0

1 Fuji Echo Co., Ltd.

Logistics
Facilities MJ Logipark Atsugi 1

28,002.44

28,002.44

100.0

1

Sun Toshi
Tatemono K.K.

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

MJ Logipark Kazo 1

7,678.10

7,678.10

100.0

1Kanda Holdings
Co., Ltd.

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

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)

MJ Logipark Fukuoka 1

38,143.21

38,143.21

100.0

5

Fukuoka Logistics
Systems Corp.

396

179

3.0
(1.7)

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 Industrial Park Sakai(Land)

87,476.71

87,476.71

100.0

1

IHI Infrastructure
Systems Co., Ltd

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

Total (Average)

551,837.67

551,473.95

99.9

60

－

6,442

2,120

Others20.0(17.9)
10.0
(8.6)
5.1
(3.2)
Not
disclosed(Note 10)
9.7
(6.1)

Notes:
1. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Aug. 31, 2020, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to the nearest
square meter. 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 Aug. 31, 2020, 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. “Occupancy” is as of Aug. 31, 2020, calculated by dividing total leased area for each property by the total leasable area. The total

-30-

4.
5.
6.

7.

8.
9.
10.
11.
12.
13.

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 first decimal place.
“Number of tenants” is based on the lease agreements with tenants for each property or property in trust as of Aug. 31, 2020.
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.
“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 Aug. 31, 2020
“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 Aug. 31, 2020. 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 Aug. 31, 2020, the annualized amount of rent will be calculated based on
the monthly rent (including common area expenses) for Aug. 2020 shown in said lease agreement. The rent-free periods andannual rent holiday periods (meaning that the payment of rents for specific months is exempted) as of Aug. 31, 2020 shall not be
included.
“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 Aug. 31, 2020. 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 Aug. 2020 shown in said lease agreement is indicated.
“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 Aug. 31, 2020, by the rent and figures are rounded to the first decimal place.
“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 Aug. 31, 2020, by the rent and figures are rounded to the first decimal
place.
Not disclosed as the tenant’s consent has not been obtained.
“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%).
“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%).
“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 (20%).

-31-

(iv) Overview of Appraisal Reports (as of Aug. 31, 2020)

Category

Property name

Logicross Fukuoka
Hisayama

Appraiser

Tanizawa Sogo
Appraisal Co., Ltd.
Tanizawa Sogo
Logicross Atsugi
Appraisal Co., Ltd.
Logicross Kobe
Tanizawa Sogo
Sanda
Appraisal Co., Ltd.
DAIWA REAL ESTATE
LOGIPORTAPPRAISAL
Sagamihara (Note 6)
Corporation
LOGIPORT
Japan Real Estate
Hashimoto (Note 7) Institute
LOGIPORT Osaka
Japan Real Estate
Taisho (Note 8)
Institute
MJ Logipark
Japan Real Estate
Logistics Funabashi 1
Institute
Facilities
MJ Logipark
Japan Real Estate
Atsugi 1
Institute
MJ Logipark
Japan Real Estate
Kazo 1
Institute
MJ Logipark
Tanizawa Sogo
Osaka 1
Appraisal Co., Ltd.
MJ Logipark
Japan Real Estate
Fukuoka 1
Institute
MJ Logipark
Japan Real Estate
Tsuchiura 1
InstituteTanizawa Sogo
MJ Logipark
Appraisal Co., Ltd.
Nishinomiya 1
Tanizawa Sogo
MJ Logipark
Appraisal Co., Ltd.
Kasugai 1
MJ Industrial Park
Japan Real Estate
OthersSakai (Land)
Institute
Total

Return priceIntegrated
Direct capitalization
DCF methodvaluemethodAppraisal
Appraisal
based on Value based
Appraisalvalue
NOI Yield
Value basedcostNOIon direct(Millions of(%)
Directon DCF
Terminal
method capitalization(Note 1)
Discountyen)(Note 2)
capitalization method
capitalization(Millionsrate (%)
method(Millions ofrate (%)
rate (%)
of yen)(Millions of
yen)
yen)
4.7, 4.9
6,150
5,810
6,120
4.8
6,160
5.0
299
5.2
(Note 3)
4.1, 4.2
9,200
9,220
9,280
4.1
9,170
4.3
381
4.5
(Note 4)
4.5,4.6
4,230
3,890
4,250
4.6
4,220
4.8
197
5.1
(Note 5)23,50016,60023,3004.2

23,600

4.0

4.4

996

4.7

20,295

15,525

20,565

4.0

19,980

3.8

4.2

825

4.5

6,020

5,860

6,120

4.2

5,920

4.0

4.4

259

4.6

6,560

3,080

6,590

4.9

6,530

4.1

5.3

352

6.5

7,020

6,910

7,110

4.2

6,920

4.0

4.4

302

4.5

1,430

1,300

1,450

4.9

1,410

4.7

5.1

72

5.7

6,830

5,800

6,840

4.3

6,830

4.2, 4.4(Note 9)

4.5

305

5.0

6,440

4,460

6,490

4.8

6,380

4.6

5.0

325

5.3

3,420

2,910

3,460

4.8

3,380

4.6

5.0

165

5.3

2,640

2,770

2,700

4.8

4.9

140

5.7

14,10012,80014,400

4.5

4.7

658

4.8

5,780

-

5,840

3.7

5,710

3.5

3.8

214

3.8

123,615

96,935124,515-

122,730

-

-

5,497

4.8

4.5, 4.7(Note10)
4.5,4.6
13,900(Note11)2,620

Notes:
1. “Appraisal NOI” is the net operating income by the direct capitalization method stated in the appraisal report, rounded to thenearest 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. The discount rate for Logicross Fukuoka Hisayama is assessed first year as 4.7% and second and thereafter as 4.9%.
4. The discount rate for Logicross Atsugi is assessed first to seventh year as 4.1% and eighth and thereafter as 4.2%.
5. The discount rate for Logicross Kobe Sanda is assessed first to seventh year as 4.5% and eighth to eleventh as 4.6%.
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 (20%).
9. The discount rate for MJ Logipark Osaka 1 is assessed first year as 4.2% and second to eleventh as 4.4%.
10. The discount rate for MJ Logipark Nishinomiya 1 is assessed first to ninth year as 4.5% and tenth and thereafter as 4.7%.
11. The discount rate for MJ Logipark Kasugai 1 is assessed first to third year as 4.5% and fourth and thereafter as 4.6%.

-32-

(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 Aug. 31, 2020.
Annual rent (Millions of yen)
(Note 1)
1,274
932
Not disclosed (Note 5)

Property name
LOGIPORT Sagamihara (Note 3)
LOGIPORT Hashimoto (Note 4)
MJ Logipark Kasugai 1

Percentage of rent(%) (Note 2)
19.8
14.5
Not disclosed (Note 5)

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 Aug. 31, 2020.
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 Aug. 31, 2020, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Aug. 2020 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 ofAug. 31, 2020 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 firstdecimal place.
3. “Annual rent” of LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiary interest ratios (49%).
4. “Annual rent” of LOGIPORT Hashimoto is shown with the values corresponding to the co-beneficiary interest ratios (45%).
5. Not disclosed as the tenant’s consent has not been obtained.

(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 Aug. 31, 2020.

Tenant Name

IHI
Infrastructure
Systems Co.,Ltd

Annual rent
Leased Percentage Lease
Percentage
area (㎡) of area (%) expiration(Millions ofof rent (%)yen)(Note 2) (Note 3)
dateType of industry(Note 1)

Property name

Manufacturing of
metal products forconstruction(excluding steel
frame)

MJ Industrial Park Sakai(Land)

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

15.9

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 Aug. 31, 2020,
based on the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicatedin the lease 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 first decimal place.
4. Not disclosed as the tenant’s consent has not been obtained.

-33-

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

Category
Logistics facilities
Others
Total

Acquisition price (Millions of yen)
(Note 1)14
115

Investment Ratio (%)(Note 2)

108,187
5,600
113,787

95.1
4.9
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 second decimal place. 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)>
RegionNumber ofproperties

Tokyo 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

7
4
1
2
14
Number ofproperties

Total floor area(㎡)
(Note 2)445,143.21
182,985.40
58,236.48
75,880.04
762,245.13

Ratio (%)
58.4
24.0
7.6
10.0
100.0

Acquisition price(Millions of yen)

Investment
ratio (%)

64,462
23,755
13,67011,900113,787

56.7
20.9
12.0
10.5
100.0

7
5
1
2
15

Notes:
1. MJ Industrial Park Sakai (Land) is not included in the calculation.
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
4
5 years or more and 10 years
5
10 years or more
5
Total
14

Total floor area(㎡)
218,056.65
425,465.35
118,723.13
762,245.13

Ratio (%)
28.6
55.8
15.6
100.0

Investment
Acquisition price(Millions of yen)ratio (%)
31,692
29.3
55,12050.9
21,375
19.8
108,187
100.0

Notes:
1. MJ Industrial Park Sakai (Land) is not included in the calculation.
2. “Property age” is calculated based on the date recorded in the register up to Aug. 31, 2020.

-34-

d. Distribution by total floor area (Note)
Total floor area
Less than 10,000㎡
10,000㎡or more and less than30,000㎡
30,000㎡ or more
Total

Number ofproperties
1
6
7
14

Total floor area
Acquisition price Investment
Ratio (%)(㎡)
(Millions of yen) ratio (%)
7,602.06
1.0
1,272
1.2
118,261.78
15.5
30,00927.7
636,381.29
83.5
76,90671.1
762,245.13
100.0
108,187100.0

Note: MJ Industrial Park Sakai (Land) is not included in the calculation.

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)
3,008
53
1,724
1,655
6,442

Ratio (%)
46.7
0.8
26.8
25.7
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 Aug. 31, 2020, 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 Aug. 31, 2020.
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 Aug. 31, 2020, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Aug. 2020 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 ofAug. 31, 2020 shall not be included. Same applies below (vii) Property Distribution.
3. LOGIPORT Sagamihara is shown with the values corresponding to the co-beneficiary interest ratios (49%), LOGIPORT Hashimotois shown with the values corresponding to the co-beneficiary interest ratios (45%) and LOGIPORT Osaka Taisho is shown withthe values corresponding to the co-beneficiary interest ratios (20%). 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 (%)
843
829
1,982
1,982
803
6,442

13.1
12.9
30.8
30.8
12.5
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 Aug. 31, 2020, 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.

-35-

(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)

Purpose

MJ Logipark Funabashi 1(Funabashi, Chiba)

Repair work ofoffice building

MJ Logipark Kazo 1(Kazo, Saitama)

Repair work ofelevator

Planned period
From May
2021 to Aug.
2021
From Aug. 2021
to Aug. 2021

Estimated construction cost (Note)TotalamountPaid during thereporting period

Total amountalready paid

62

-

-

13

-

-

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

b. Capital expenditure incurred for the reporting fiscal period
MEL conducted construction work worth 88 million yen in the reporting fiscal period which is a sum of capital
expenditures of 47 million yen and repair and maintenance expenses of 41 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

Fourth fiscal
periodFifth fiscal
periodSixth fiscal
period(Thousands of yen)
Seventh fiscal
Eighth fiscal
periodperiodMar. 1, 2018 toAug. 31, 2018

Sept. 1, 2018 toFeb. 28, 2019

Mar. 1, 2019 toAug. 31, 2019

Sept. 1, 2019 to Mar. 1, 2020 toFeb. 29, 2020
Aug. 31, 2020

123,369

177,543

238,887

297,841

376,229

54,174

61,34458,95478,38871,910

-

-

-

-

-

177,543

238,887

297,841

376,229

448,139-36-

(x) Overview of Property Leasing and Status of Operating Income
Eighth fiscal period from Mar. 1, 2020, to Aug. 31, 2020
(Units: Thousands of yen)

Property name

Logicross
Fukuoka
Hisayama

LogicrossAtsugi

Logicross
Kobe Sanda

LOGIPORT
Sagamihara

LOGIPORT
HashimotoOperating days

184 days

184 days

184 days

184 days

184 days(A) Property related revenues

695,238

501,010

Property revenues
Other property related
revenues

637,632

464,21257,606

36,798(B) Property related expenses

263,835

185,758

Facility management fee

31,47817,89557,053

43,460

996

726

8,915

9,675

Utilities cost

38,24822,566

Custodian fee

61

56

10,593643

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Other expenses(C) Depreciation

43,801

34,693

16,198116,488

90,735(D) Property related income(=A-B)

116,212

157,685

83,897431,403315,251(E) NOI (=C+D)

160,013

192,378

100,095

547,891

405,986

Property name

LOGIPORT
Osaka Taisho

MJ Logipark
Funabashi 1

MJ Logipark
Atsugi 1

MJ Logipark
Kazo 1

MJ Logipark
Osaka 1

Operating days

184 days

184 days

184 days

184 days

184 days

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)(A) Property related revenues

156,759

Property revenues
Other property related
revenues

148,557(A) Property related expenses

58,013

Facility management fee

6,147

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

17,814 Not disclosed(Note)
170

Utilities cost

5,950

Custodian fee

20

Other expenses

106

8,202

1,079

(B) Depreciation

26,72639,39033,28910,42338,070(C) Property related income(=A-B)

98,746

136,813

118,557

26,279

119,849(D) NOI (=C+D)

125,472

176,203

151,847

36,702

157,920

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

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Property name

MJ Logipark
Fukuoka 1

MJ Logipark
Tsuchiura 1

MJ Logipark
Nishinomiya 1

MJ Logipark
Kasugai 1

MJ Industrial
Park Sakai(Land)

Operating days

184 days

184 days

184 days

184 days

184 days

Total(A) Property related revenues

211,055

3,342,769

Property revenues
Other property related
revenues

197,9033,179,904

13,151

162,864(A) Property related expenses

101,244

1,187,243

Facility management fee

8,636

104,652

Property taxes
Non-life insurance
premium
Repair and maintenanceexpenses

14,119 Not disclosed(Note)
402
8,016

41,406

Utilities cost

9,311

99,083Custodian fee

240

2,427

Other expenses

261

16,272Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

313,996
4,957(B) Depreciation

60,255

12,89412,086

69,392-604,448(C) Property related income(=A-B)

109,81170,11047,489216,089

107,328

2,155,525(D) NOI (=C+D)

170,066

83,00559,576285,482

107,328

2,759,973

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

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