Fiscal Period Ended
August 31, 2022
Securities Code：3481

Asset Management Company
November 1, 2022

Table of Contents
1. Highlights, Financial Results and Forecasts

2

2. Growth strategy

6

3. ESG Initiatives

11

4. Mid-to Long-Term Growth Strategy

15

5. Appendix

17

Logicross Yokohama Kohoku

Highlights, Financial Results and Forecasts

Highlights Since October 2022

2023/2（13th FP）
Financial Result (DPU)

DPU

7,628 yenvs 12th ＋275 yen（＋3.7％）

Hybrid External Growth⚫ Successfully completed global offering in October 2022 to acquire 8 properties worth 45.4 bn yen withsponsor-developed and MIJA-sourced properties. Expanded the asset size to 32 properties worth 261.6 bn yen⚫ Achieved stabilized DPU growth of 6.0% after the global offering (vs Pre-Offering） (Note 1)

Hybrid Internal Growth⚫ Expect to achieve rent growth for 11 consecutive fiscal periods with steady leasing strategy and maintained its

upward trend

Average rent growth(Note 2)
13th FP +5.0%
14th FP (forecast) +8.1%
Contribution to DPU (Note 3)
13th FP +37yen
14th FP+41yen⚫ Achieved internal growth through initiatives other than rent revisions including improving utilities P/Lby self-consumption of solar power, etc.

Financial Strategy⚫ LTV remained low level at 38.2% (14th FP forecast) despite the use of debt for property acquisitions⚫ Promoting ESG finance through Green Loan and Sustainability Linked Loan funding

ESG⚫ Formulated the Transition Plan and established new KPIs

⚫ Certification and Registration of Eco Action 21⚫ Attained GRESB Real Estate Assessment 5 Stars (the highest rating) for 3 consecutive years
Note 1: Calculated as of Oct. 14, 2022. when 6th Follow-on offering was resolved.
Note 2: Average rent growth for the leases is expired or will be expired during the relevant period, and lease contracts that are not yet contracted are assumed to be unchanged for the calculation.
Note 3: Contribution to DPU is calculated by dividing 6 months contribution of the increase/decrease in monthly rent of each tenant whose lease contract was expired in the previous FP by the total number of investment units at the end of therelevant FP and rounding down to the nearest whole number

3

NOI Transition
Achieved steady NOI growth through External Growth thanks to Properties Acquired in 13th FP
and Internal Growth thanks to rent growth on existing properties, etc.
(mn yen)External
GrowthThanks to Properties
Acquired in 13thFP＆

Internal
GrowthNOI Growth throughInternal Growth

Continue NOI growth driven bysteady internal growth fromexisting properties

Thanks to Rent Growth
on Existing PropertiesNOI Growth through External Growth
Achieved NOI growth through fullcontribution of revenue from properties
acquired in 13th FP, offsetting property tax fromproperties acquired in 12th FP and 13th FP (10properties) that will start to be expensed.

External
Increase in Change inInternal
GrowthoperatingoperatingGrowthby revenue
expenses ofincomeby rent
contribution growth, etc. properties mainly dueof properties on existing acquired in to increaseacquired in13th FPin leasing
properties
13th FP
cost onexisting
properties,etc.

12th FP Actual（Aug. 2022）

External
Growthby full
contributionof revenue
fromproperties
acquired in13th FP

13th FP Actual（Feb. 2023）

Internal Temporary
Growthrevenueby rent
loss forgrowth, etc. existingon existing property
properties

Property Change intax that
operatingwill start
incometo bemainly due
expensed to increase
in repaircost, etc.

Internal
Growthby rent
growth, etc.
on existing
properties

14th FP Forecast（Aug. 2023）

Change inoperatingincomedue toincreasing
in repaircost, etc.

15th FP Forecast（Feb. 2024）

4

DPU Transition
DPU for 13th FP is 7,628 yen due to increasing NOI through External Growth and Internal Growth.
For 14th FP, DPU is expected to be 7,832 yen through full revenue contribution from Properties
Acquired in 13th FP.
(yen)
For 15th FP, aiming for Further DPU growth through Internal Growth

Increase in NOI
Increase in general andadministrative expense
Increase indepreciation
Increase ininterest paid
Change in other nonoperating P/L

＋358
‐106
‐39
‐56
＋37

(offering cost, etc.)

Increase in one-time
SCD(dilution due to mid-period
offering）＋69

Increase in NOI
Increase in general andadministrative expense
Increase in depreciation
Increase ininterest paid
Change in other nonoperating P/L

＋108
‐121
‐140
-65
＋321

(absence of offering cost, etc.)

Increase in one-time
SCD(temporary decline in utilities P/L,
temporary increase in repair cost,
temporary revenue loss fromexisting property）

Increase in NOI
Decrease in generaland administrative
expenseIncrease indepreciation
Increase ininterest paid
Decrease in one-time
SCD

＋93
+14
‐24
‐10
‐78

Estimated amount from rent growth forlease expiring in the 14th FP (Note)＋58

Internal Growth +113yen
DPU Contribution ＋1.4%
Almost half of the renewals withtenants scheduled to expire in the
15th FP have been signed. Aiming
for further internal growth throughnegotiations with remaining tenants

12th FP Actual（Aug. 2022）

13th FP Actual（Feb. 2023）

14th FP Forecast（Aug. 2023）

Status of Rent
undecided
Revision
Negotiations for
Agreed15th FP

Singed15th FP Forecast（Feb. 2024）

Note : Estimated amount is calculated by dividing 6 months contribution of the increase/decrease in monthly rent of each tenant whose lease contract will be expired in 14th FP by the total
number of investment units(assuming no change from the end of 13th FP), and rounding down to the nearest decimal place, and lease contracts that are not yet contracted are assumed to
be unchanged for the calculation.

5

Growth Strategy

Internal Growth Strategy
Examples of Recent
Rent Revision

Rent Revision Track Record and Lease Agreement Expiration Schedule (Note 1)
Expect to achieve rent growth for 11 consecutive fiscal periods through FP 2023/8 (14th FP)
with upward trend expected to continue for FP 2024/2 (15th FP)
Floor area of tenants whose warehouse leaseagreements are set to expire

Upward rent revision (left axis)

（㎡）

99.9%

99.9%

99.9%

99.9%

99.9%

99.8%

Rent unchanged (left axis)
99.8%

99.7%

99.8% 100.0%

120,000
+1.8％

+0.2％

+3.1％

+2.2％

+9.5％

+8.7％

+13.9％

+6.5％

+5.3％

Average occupancy rate in fiscal period (right axis)
Upward trend
expected
to continue

90,000100%

Average
Remaining
Lease Term (Note 2)

Fixed-term
Lease Ratio (Note 2)

6.3 years

100%

13
th
FP

95%

60,00085%＋7.4%

39,000㎡
Nagoya＋5.7%

30,000㎡

90%

30,000Rent
GrowthOsaka
Metropolitan
Area/
Approx.

Metropolitan
Area/
Approx.

14
th
FP

Other
Area/
Approx.

＋6.4%

8,300㎡

Tokyo
0Aug. 31,2018(4th FP)

Feb. 28,2019(5th FP)

Aug. 31,2019(6th FP)Feb 29,2020(7th FP)

Aug. 31,2020(8th FP)

Feb. 28,2021(9th FP)

Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31,
2021
2022
2022
2023
2023
2024
2024
2025
2025
2026
2026
(10th FP) (11th FP) (12th FP) (13th FP) (14th FP) (15th FP) (16th FP) (17th FP) (18th FP) (19th FP) (20th FP)

Improved utilities profit/loss by introducing self-consumption of solar power(LOGIPORT Kawasaki Bay)

Self-consumption solar power generation results since full operation in Aug. 2022
Approx. 30% of electricity consumption is covered by self-consumption
solar power generation (13th FP Actual)（1,000kwh）

1,000
500

→Contributed to improvement of utilities P/L

Total electricity consumption of this facility

Electricity purchase from self-consumption solar power generation0
Aug-22
Sep-22Oct-22
Nov-22
Dec-22
Jan-23Feb. 28,2027(21st FP)

Aug. 31,2027(22nd FP)

Feb. 29,2028(23rd FP)

80%

Metropolitan
Area/
Approx.

＋11.7%

27,000㎡

Accumulation of Steady Growth

Initiatives other than Rent Revisions

千Average rent growthUndecided (left axis)+5.0％ +8.1％

Area/
Floor Area

（yen）Estimated accumulated contribution to DPU of continuous internal growth400356yenRent revision
Initiatives other than rent revision
314yenRefund of property tax due to300
275yenreview in asset valuation+42yen216yen+38yen200
147yen104yen100
58yen
0

Feb-23

Aug. 31, 2020
(8th FP)

Feb. 28, 2021
(9th FP)

Aug. 31, 2021
(10th FP)

Feb. 28, 2022
(11th FP)

Aug. 31, 2022 Feb. 28, 2023
(12th FP)
(13th FP)

Aug. 31, 2024
(14th FP)

Note 1: as of Mar. 1, 2023. Lease contracts that are not yet contracted are assumed to be unchanged for the calculation for 14th FP
Note 2: as of Feb. 28, 2023

7

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

Impact of Rising Energy Costs

Inflation-resistant Portfolio with Long-term Stability

Minimal Impact of Rising Energy Costs on MEL’s P/L

Remaining Lease Term by Property Type (Based on Leased Area)

Classification of Utilities Cost Burden by Property Type
（Based on total floor area）（m2）

Multi (excluding whole-building leases): Avg.2.7 years
BTS/Land/Single: Avg. 15.8 years(Ratio to the totalleased area)

450,000

Common area

Exclusive area

38%

82.8%

300,000

13%

00%less than 3yrs

3yrs or more -5yrs or more -7yrs or more -less than 5 yrs

less than 7 yrs

less than 10 yrs

more than 10yrs

Multi-tenant (excluding whole-building leases)
Remaining term ofRent increase according to theless than 5 years
rent gap with the market level
80.9%⚫ Reflect the rising trend of market rent by renewing contracts with shorter
contract terms⚫ Minimize impact under the market with the concern for inflation

BTS/Land/Single
Remaining term of
5 years or more
70.7%

Multi-tenant(excluding whole-building leases)
61.1%

25%

150,000

Tenants bearing cost
including common area

4.6%

Burdenon MEL

52.8%

Chilled and Frozen

BTS / Single-tenant
38.9%
3.6%

35.9%

3.1%

Tenant direct burden
Tenant pays utilities cost directly

Tenant Indirect burden
Paid in advance by MEL

Limitedburden on MEL

Tenants bearing
cost on wholebuilding

Utilities expenses is charged
directly to the tenants

Ratio of Utilities P/L to NOI

-0.3％

0.2％
FP2022/2（Actual）

P/L transition affectedby rising energy cost

FP2024/2(Forecast)Measures to control utilities P/LLong-term operation withstability and efforts toaddress inflation⚫ Achieve long-standing stability through longer-term lease contracts which
generate rental income more resistant to downward pressure⚫ Handle inflation impacts by incorporating contract provisions which allow for
rent revision in the middle of the contract period⚫ Review tenant invoicing prices and practices, etc. Implemented at 7 properties⚫ Installation of Self-consumption of solar power Installed at 1 property

Other properties are underconsideration

7 out of 10 multi-tenant properties have taken
actions to improve profit/loss
Remaining properties are being addressed

Note：As of Feb. 28, 2023

8

Pipeline to Realize External Growth Strategy
Aim for further external growth leveraging 14 properties (with expected preferential negotiation rights) with total
floor area of 759,000m2 including 9 completed properties with total floor area of 289,000m2
Total Floor
Area

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

FP2024/2

100%
Occupancy

79,000m2

Completedin 2021

Included inbridge scheme

Logicross Kasukabe100%
Occupancy

39,000m2

Completedin 2021

Included inbridge scheme

Logicross Funabashi

100%
Occupancy

23,000m2

Completedin 2021

Included inbridge scheme

44,000m2

Completedin 2022

20,000m2

Completedin 2022

Logicross Osaka Katano

Logicross

FP2023/8

Logicross Hasuda

Logicross Zama Komatsubara

Brand of logistics facilities
MEC develops throughout Japan

Schedule
until FP2023/2

100%
Occupancy

FP2024/8

FP2025/2 and after

Logicross Hasuda

Logicross Zama

178,000m2

Development

Completion Planned
November 2023

Logicross Sagamihara

170,000m2

Development

Completion Planned
December 2023

Logicross Misato*

53,000m2

Osaka Suminoe Shibatani Cold Storage Project*

42,000m2

Logicross Zama

MJIA-sourced properties withexpected preferential
negotiation rights

Construction andDevelopment (Planned)

Completion Planned
2025
Completion Planned
2025 Spring

MJ Logipark Aisai 1*

PDP

100%
Occupancy

10,000m2

Completedin 2022

MJ Logipark Kakogawa 1*

PDP

100%
Occupancy

33,000m2

Completedin 2022

MJ Logipark Daito 1*

PDP

100%
Occupancy

11,000m2

Completedin 2022

MJ Logipark Ichinomiya 1*

PDP

100%
Occupancy

26,000㎡

Completedin 2022

MJ Logipark Okazaki 1*

PDP

100%
Pre-leased

24,000㎡

Logicross SagamiharaNEW

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

Total*Tentative name759,000㎡

Completion planned
2023 Autumn

289,000㎡

289,000㎡

663,000㎡

MJ Logipark Kakogawa 1*
663,000㎡

759,000㎡

Note: MEC Group-developed properties with expected preferential negotiation rights and MJIA-sourced properties with expected preferential negotiation rights are highlighted
in blue and in green, respectively as of Apr. 17, 2023

9

Financial Strategy
Financial Highlight (As of Mar. 15, 2023)
Long-term Debt Ratio

Total Debt Balance

Fixed Interest Rate Ratio

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

105,374 mn yen

97.2 ％

93.9 %

Average Interest Rate

Forecasted LTV

Acquisition Capacity(all / excluding short-term)(Note1)(FP 2023/8 (14thFP))(LTV up to 50%)

0.50 %/ 0.51 %38.2 %

Approx.

Continued stable financial management by achieving
both low funding costs and a long average remaining
debt duration among J-REITs (Note2)
Average debt cost
related expenses)
including borrowing（

Average remaining debt duration
1

2

3

4

5

Credit Rating (JCR)

AA（stable）

Debt Maturity Schedule

Continued Stable Financial Management0

64.0 bn yen

5.5 years /5.6 years

6（mn yen）
18,000Long-term borrowings
Investment Corporation Bonds

Short-term borrowings

15,0000.30%
12,000J-REIT averagedebt cost：0.73%

9,000

0.80%

6,000
3,000

1.30%
3.50％

J-REIT averageremaining debt
duration：4.2yrs

0（Year）

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

10

ESG Initiatives

ESG Initiatives
Formulate Roadmap for Reducing GHG
Emissions and Establish New KPIs Basedon SBT⚫ As a strategy based on the TCFD recommendations, MEL
has formulated roadmap for reducing GHG emissions. In
this roadmap, MEL applied for SBTi certification with theaim of achieving science-based emission reductions as well
as clearly stating its goal of net-zero GHG emissions by
FY2050 and established new KPIs written in below.

Scope１＋2

Scope ofcoverage

Base year

Target year

GHG emission
reduction
targets

All properties

FY 2021

FY 2030

42% reduction

SBT (Science Based Targets) is GHG emission reduction targets
set by companies for the next 5 to 15 years, alignment with thelevels required by the Paris Agreement (which aims to curb
global temperature rise to well-below 2°C above pre-industrial
levels and pursuing effort to limit warming to 1.5°C). SBTi is aninternational initiative jointly administered by CDP, the United
Nations Global Compact (UNGC), the World Resources Institute(WRI), and the World Wide Fund for Nature (WWF) torecognize companies that set SBT targets.

Certification and Registration of
Eco Action 21⚫ MEL has received certification andregistration of Eco Action 21 in March 2023.
Eco Action 21 is a third-party certification
and registration program for businesses
that appropriately implement environmental
initiatives; establish, operate, and maintaina framework for environmental
management and conduct environmental
communication, based on the Eco Action 21
Guidelines（Note) established by the Ministryof the Environment of Japan.
Note: The guidelines were established by the Ministry of the Environment and set forth
14 action items (requirements) based on the PDCA cycle, which consists of the threeelements ; "environmental management system," "environmental performanceassessment," and "environmental reporting".

GRESB Real Estate Assessment (2022)⚫ GRESB Rating: 5 Stars(the highest rating) for
3 consecutive years andGreen Star for 4
consecutive years⚫ GRESB Public Disclosure(5-level rating):
Level A (the highest rating)for 3 consecutive years

12Transition Plan

（Roadmap for Reducing GHG Emissions :Scope1,2 and 3）
MEL has formulated roadmap for reducing GHG emissions and established new KPIs based.
Going forward, MEL have set a goal of "achieving net zero GHG emissions for the entire value chain by FY2050" and will steady
implement each measure to achieve this goal.
Increasedemissions byasset size
expansion

FY2021

FY2030GHG Emissions
Introduction of renewableenergyGHG emissions of FY
2021 (based FY)

FY2040
Reduction of power
consumption
Net GHG emissions

Measures to reduce emissions and its
Reduction rate

Measures to reduce GHG emissions

FY2050
Achieve
Net Zero

Scope1,2 and 3
GHG emissions

Scope1,2 and 3
GHG emissions
reduction

Emissions
reduction rate

Increased emissions by asset size expansion＋260％

GHG emissions reduction rate （vs FY ended March 2021)▲100%

・Switching to LED lighting equipment

Reduction of power
consumption

・Update to high-efficiency air conditioning equipment▲8%・Refurbishment of freezing and refrigeration equipment
・Installation of solar power generation

Introduction ofrenewableenergy・Switch to energy derived from renewable energy
・GHG reduction by better energy mix▲352%

・Utilization of Environmental Value

13

ESG FinanceInitiatives for Financing Utilizing ESG Assessments by Third-parties
Entities
Sustainability Linked Loan
Green Finance Framework(Note 1)
Green Finance Framework
MEL has obtained a Green 1(F) (highest for JCR
Green Finance Evaluation) rating evaluation forthe competence of its Green Finance Framework
Use of Proceeds
Eligible Assets
Eligible Assets are assets or projects that satisfy eitherof the following requirements⚫ The assets for which MEL has obtained or plans to
obtain the following third-party certificationI.
5-star, 4-star or 3-star DBJ Green Building
Certification
II. S rank, A rank or B+ rank in Certification for
CASBEE for Real Estate
III. 5-star, 4-star or 3-star BELS Evaluation⚫ Renewable energy generation facilities associatedwith buildings (limited to solar power generation
facilities on the premises)⚫ Equipment designed to reduce environmental
impacts (limited to equipment that achieves 30%
or higher energy efficiency before introduction)⚫ MEL executed its first Sustainability Linked Loan
with The Norinchukin Bank in March 2022.

Status of SPTs achievements
Green Loan
Allocated

Total 18,450 million yen
obtained

BELS: ★★★★★
CASBEE: S Rank for real estate

Logicross Atsugi II
BELS: ★★★★★
(ZEB Ready)
CASBEE: S Rank for real estate

Use of Proceeds

ResultSPTs

Green Bond
Allocated

Total 2,000 million yen
obtained

Examples for Eligible Assets

LOGiSTA ・LogicrossIbaraki Saito(A)⚫ As a result of our continuous commitment to ESG
initiatives, we have achieved multiple SPTs. The
spread incentive has been given to the Sustainability
Linked Loans procured in March 2022

Green Equity
Allocated

5th Follow-on Offering
Total 22,042 million yen
obtained

Green Equity Framework

MEL obtained a second-party opinion for theGreen Equity Framework from DNV(Note2)①30% reduction in CO2emissions(compared to FY2017)

34.7%

Achieved② Increase in the ratio ofGreen Properties to 100%

87.6%

Not achieved

23.3%

Achieved

５StarsAchieved③15% reduction in energy
consumption(compared with FY2017)④Continuous attainment of
4 Stars in GRESB Real Estate
Assessment

Status of Sustainability Linked Loan
Financing
LenderBalance（mn yen）

Borrowing dateterm

The Norinchukin
Bank

2,000

Mar. 2022

10 yrs2,000

Oct. 2022

9 yrs

SBI Shinsei Bank

2,000

Dec. 2022

9 yrs

Note 1: As of Mar. 14, 2023
Note 2: Of those SPTs,① through ③ are verified based on FY2021 results, and ④ is verified on FY2022 results.

14Mid-to Long-Term Growth Strategy

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

MJIA-Sourced

4th
Follow-on
Offering

LTV

2nd
Follow-on
Offering

1st
Follow-on
Offering

DPU

27.0%

30.0%

27.0%

Carefully monitor themarket and acquire
properties throughequity offerings andflexible use of LTV

142.1 bn yen

29.4%

31.4%

32.7%

32.4%

36.0%

38.6%

268,610yen 269,287yen 274,642yen

38.2%

As of
Mar. 31, 2023
196.6 bn yen

5,292yen 5,492yen 5,524yen 5,907yen 6,003yen

292,564yen 297,440yen

Aim for Further
Growth in
Asset Size

Stabilized LTV
40%～50%As ofMar. 1, 201856.9 bn yen

NAV Per
Unit (Note)

216.2 bn yen

113.7 bn yen 113.7 bn yen

83.2 bn yen 83.2 bn yen
70.8 bn yen
25.0%

261.6 bn yen

3rd
Follow-on 170.4 bn yen 170.4 bn yen
Offering

Asset Size

Market Cap

5th
Follow-on
Offering

Asset Size
Target
300 bn yen

6thFollow-on
Offering

6,619yen 6,764yen 7,174yen

Aim for further inclusion
in major indices7,353yen 7,628yen 7,832yen 7,835yen
Aim to increase DPU
through disciplined
growth323,072yen

343,144yen 350,110yen

375,616yen

391,835yen

Aim to steadily grow NAV
per unit and maximize
unitholder value

FP 2018/8 FP 2019/2 FP 2019/8 FP 2020/2 FP 2020/8 FP 2021/2 FP 2021/8 FP 2022/2 FP 2022/8 FP 2023/2 FP 2023/8 FP 2024/2(4th FP)(5th FP)(6th FP)(7th FP)(8th FP)(9th FP)(10th FP) (11th FP) (12th FP) (13th FP) (14th FP) (15th FP)
Note：NAV Per Unit shows after paying Surplus Cash Distributions NAV

16

Appendix

Financial Results for the Fiscal Period Ended Feb. 2023
Operating Results (mn yen)

FP EndedAug. 2022
Actual(12th FP)(A)FP Ended
Feb. 2023
Actual(13th FP)(B)

6,276

7,149

Operating Rental Revenues

6,276

Operating Rental Expenses(excluding depreciation)
NOI

Operating Revenues

Depreciation
General and Administrative Expense(As of Oct. 14,2022)(13th FP)

7,099

7,149

+873

7,099

1,125

1,204

+79

1,175

5,151

5,945

+793

5,924

1,095

1,246

+150

1,244

725

865

+140

853

3,833

-349

‐400

Ordinary Income

2,980

3,433

Net Income

2,979

3,432

Non-operating Profit and Loss

1

2
3

+503

3,826

-50

-427

+452

3,399

+452

3,398

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

7,353

7,628

+275

7,628

6,623

6,817

+194

6,749

730

811

+81

879

Ratio of SCD to Depreciation

30.0%

32.8％

＋2.8％

35.6％

449,935

503,485+53,550

503,485

Number of Investment Units Issued andOutstanding (units)

Main Factors of Variance12th FP Actual vs. 13th FP Actual

FP Ended Feb.
2023 Forecast

+873

3,329

Operating Income

Difference（B）－（A）

Other Statistics
AFFO (mn yen)

3,898

4,606

+707

4,487

LTV

36.0%

38.6%

+2.6%

37.7%

NAV per Unit (yen)375,616

391,835+16,219‐

Average Occupancy

99.8%

100.0％+0.1%

100.0％

1（Contribution to Net Income）

・Increase in revenue from properties
acquired in 13th FP+784mn yen

・Rent increase and other revenue increase
from existing properties+88mn yen

Rent increase
Increase in utilities revenues
Decrease in other revenues+42mn yen
+54mn yen
-6mn yen

2・Increase in Operating Revenues (above①)
・Increase in expenses from properties
acquired in 13th FP
Increase in depreciation
Increase in Operating expenses+873mn yen-166mn yen-144mn yen-22mn yen・Increase in expenses from existing properties
Increase in leasing fee
Increase in utilities cost
Decrease in repair cost

-62mn yen・Increase in general and administrative expenses-140mn yen-29mn yen
-45mn yen
+15mn yen

3・Increase in Operating Income (above②)+503mn yen

・Change in non-operating profit and loss

-50mn yen

Increase in interest paid

-50mn yen

Properties Acquired in 13th FP
Total Acquisition Price 45.4 bn yen
LOGiSTA･Logicross Ibaraki Saito(A) (45% co-ownership interest)

MJ Logipark Takatsuki 1

18

Forecasts for the Fiscal Periods Ending Aug. 2023 and Feb. 2024
FP Ended
Feb. 2023
Actual(13th FP)(A)FP EndingAug. 2023
Forecast(14th FP)(B)

7,149

7,547

Operating Rental Revenues

7,149

Operating Rental Expenses(excluding depreciation)
NOI

Operating Results (mn yen)

Difference（B）－（A）

1(Reference)
FP Ending Feb.
2024 Forecast(15th FP)

+397

7,604

7,547

+397

7,604

1,204

1,547

+342

1,557

5,945

6,000

+54

6,047

1,246

1,316

+70

1,328

865

926

+61

919

3,833

3,756

‐400

‐271

Ordinary Income

3,433

3,485

Net Income

3,432

3,484

Operating Revenues

Depreciation
General and Administrative Expense
Operating Income
Non-operating Profit and Loss2
3

Distributions per Unit
(excluding SCD)（Contribution to Net Income）

1

7,832

+374mn yen

・Increase in utilities revenues+18mn yen

2・Increase in Operating Revenues (above①)+397mn yen

・Increase in Operating Expenses-474mn yen

Property tax for properties acquired in 12th and 13th FP-246mn yen

Increase in utilities cost

-37mn yen

＋128

-276

Increase in repair cost

-33mn yen

+51

3,522

Increase in depreciation-70mn yen
-61mn yen

+51

3,521

Increase in general and administrative
expenses

1

3
7,628

・Full contribution of revenues fromproperties acquired in 13th FP

3,798

‐76

Distributions Per Unit (yen)Distributions per Unit
(including SCD)

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

+204

7,835

・Decrease in operating income(above②)-76mn yen・Improve of non-operating profit and loss

+128mn yen

Increase in interest paid

6,817

6,920

+103

6,994

Surplus Cash Distributions (SCD)
per Unit

811

912

+101

841

Ratio of SCD to Depreciation

32.8％

34.9％

＋2.1％

31.9％

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

503,485±0503,485

Other Statistics
AFFO (mn yen)

4,606

4,468

‐137

4,246

LTV

38.6%

38.2%

-0.4%

38.2％

Average Occupancy

100.0％

100.0％±0％

100.0%

Absence of investment unit issuance expenses

1-32mn yen
+162mn yen

Main Factors of Variance14th FP Forecast vs. 15th FP Forecast（Contribution to Net Income）

・Increase in operating revenues mainly due toincrease in rental revenues＋57mn yen・Increase in operating expenses mainly due toincrease in repair cost

-15mn yen

19

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

No. of Properties /Asset Size

32 properties/
261.6 bn yen

Sponsor-developed
Properties / MJIAsourced Properties

67.6%/
32.4%

AverageOccupancy Rate

Avg. Appraisal NOI
Yield

100.0%

4.7%

Forecasted LTV(14th FP)

38.2%

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

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

Investment /Asset Management

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

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

Note: As of Feb. 28, 2023

20

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

Measures continued from the past andto be taken in the future

Alignment

Discipline

HybridAlign interest with unitholders

Achieve disciplined growth

Enhance MEL’s unique strategy
Hybrid Model

External growth utilizing LTV

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

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

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

ESG

Promotion of efforts for
Net-zero GHG emissions by FY2050

ESG

Initiatives to Accomplish
KPIs and Targets

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

Measuresexecuted andachieved

ESG
ESG
ESG
ESG

Flexible property acquisition strategy utilizing bridge funds

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

Flexible financing, carefully watching
the market conditions

Expanding pipelines through MJIA’svarious sourcing methods,
such as CRE proposals and PDP
Track record in PM consignmentand built-up knowledge throughutilization of technology at Sponsor Group✓ Continued growth through execution of follow-on offerings based on “Three Pillars” (Oct. 2022, Mar. 2022, Mar. 2021,
Sept. 2020 and Oct. 2019)✓ Acquisition of the highest rating “5 Stars” from GRESB for three consecutive years (Oct. 2022, Oct. 2021 and Nov. 2020)✓ Supported the recommendation by the TCFD and Established KPI and Targets, formulated Transition Plan
(Dec. 2021, Apr. 2023)✓ Introduction of cumulative investment for employees of Sponsor and MJIA (Mar. 2021)✓ Inclusion in the FTSE EPRA Nareit Global Real Estate Index Series (Jun. 2020)✓ Introduction of the asset management fee structure fully linked to unit price performance, first among J-REITs (May 2019)21

Strategy for Achieving Hybrid External Growth(1)Asset Size: 261.6 bn yen
Properties Acquired in 13th FP

Sponsor-developed
Average Appraisal NOI Yield: 4.5%

MJIA-sourced
Average Appraisal NOI Yield: 5.2%

Acquisition of Sponsor-developed modern
and state-of-the-art properties at fair prices

Acquisition of properties on favorable terms byleveraging MJIA’s well-contemplated strategy

Sponsor’s Independent Development

PDP (Partnership Development Program)• MJIA leads the project in a manner that balances the• MEC obtains comprehensive land information

through its customer networks supported by branches
and group-wide information sharing

Total acquisition price:62.0 bn yen
Avg. Appraisal NOI Yield: 4.7%

• MEC carries out challenging development projects

which involve coordination with public administrationand stakeholders and land consolidation of multiple
property owners by leveraging MEC Group’s advanced
development capabilities

with general trading conglomerates, other real estatedevelopers and foreign-affiliated funds, leveraging the
MEC Group’s credibility, abilities in coordination among
various stakeholders and expertise in development

Logicross
Yokohama
KohokuLogicross
NagoyaKasaderabuilding is completed and leased up

Saito (A & B)

MJ Logipark
Takatsuki 1

MJ Logipark
Inzai 1

Seller Broker Tenant Constructor Developer
MJ Logipark Funabashi 2

Total acquisition price:
114.8 bn yen
Avg. Appraisal NOI Yield: 4.4%

LOGiSTA･• MEC plans to continue joint development projects under LogicrossIbaraki

win-win relationships with various partners• MEL can preferentially consider acquisition after the

Total acquisition price: 14.7 bn yen
Avg. Appraisal NOI Yield: 5.1%

MJIA arranges entire development
process by matching each partner’s needs

Sponsor’s Joint Development• MEC engages in joint development of logistics properties

requirements of each partner

LOGIPORT
Kawasaki Bay

CRE (Corporate Real Estate)• Properties are acquired based on strategic proposals
tailored to the portfolio of the seller, leveraging thecredibility of MEC Group and the network of MJIA

Total acquisition price:23.4 bn yen
Avg. Appraisal NOI Yield: 4.8%

• Some properties may be inspected and evaluated fortheir location's suitability for logistics facilities withconsideration for possibilities of future redevelopment

MJ Logipark
Higashi Osaka 1

MJ Industrial Park
Kawanishi (Land)

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

Book value
Anticipatedacquisition
price

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

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

Anticipatedacquisition
price

Anticipatedacquisition
price

Anticipatedacquisition
price

Term

Note：Calculated as of Feb. 28, 2023.

22

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

Contribution of MJIA

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

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

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

MJIA’s Strengths Shown in the Properties Acquired in 13th FP

MJ Logipark Funabashi 2• Obtained land information from a close broker without bidding• Examined its development plan and cash flow simulation• Invite developer by providing exit strategy
Functions offered by MJIA(Note)
Sourcing

Operation
Management

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

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

Leasing

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

Planning

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

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

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

Sourcing

Planning

Land
Acquisition

Development
SupportLeasing

Operation
Management

Exit
Strategy

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

23

Strategy for Achieving Hybrid Internal GrowthSponsor

MJIA

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

Realize Internal Growth by MJIA’s Unique Initiatives
Realized internal growth by leveraging MJIA’s
proprietary know-how based on extensive experience ofreal estate fund management capabilities

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

Profit Improvement Measures (example）

TRS Services
Aim to realize internal growth over the medium-to-long-term by outsourcing tenant
relation, tenant recruitment and proposal of leasing policy to the Sponsor

Green Lease contract•

MJ Logipark Fukuoka 1, etc.

TRS outsourcing
Through concentrated control
of tenant relation for theproperties held by MEL,
leasing information could beaccumulated effectively andefficiently for future use.

Switching to LED based on
●●●

Lease
Agreement

Corporate
Customer
Relation

Example of tenant leasing by MEC
Successfully invited the existing tenant of theoffice building managed by the MEC Groupby meeting their needs for logistics facilities.

•

Logistics
Companies
Leasing services
Agreement

Cargo Owner
Logicross Fukuoka Hisayama

aggregate total Approx.＋4mn yen/FP(Note)

Installed LED lighting at the cost of MEL, andMEL receipts Green Lease fee as a portion of
the reduction in cost to be borne by tenant
Improved tenant convenience and satisfaction
with the latest dimming functions and reduced
electricity costs significantly

Cost Reduction Measures （example）(Note)
Review Asset Evaluation of
aggregate total Approx. △2.2mn yen/FP
the Properties• Review asset evaluation of the properties.
LOGIPORT Sagamihara, etc.
Realized to decrease property tax bynegotiating with relevant government officeregarding difference from evaluation• Gained refund of property tax due to review
in asset valuation

Partnership with Tokyo Ryutsu Center (TRC)••

TRC has been a consolidated subsidiary of MEC since 2016. Operation and management of
15 properties, including sponsor-developed properties, are outsourced to TRC
Promoting the accumulation of know-how thorough personnel exchange with TRC, MEC and MJIA

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

Logicross Nagoya Kasadera

Note：The figures are accumulated increase in revenues or decreases in expenses for each measure implemented in the past.

24

Portfolio Summary

Logistics facility /Others

Property Age

Area Diversification

Tenant Diversification（Based on
acquisition price）（Based on
acquisition price）（Based on
acquisition price）(Based on leased area)
Ratio of Top
10 Tenants

5.5％
13.0%

Avg.
7.2 years

39.5%

7.4%
10.7%

50.0%

27.4%

37.1%

54.5%

60.5%

7.9%
4.7%
4.2%
4.1%
3.5%
101
3.5%
Companies
3.1%
2.9%
2.8%

94.5%

2.7%

Logistics
facility～5 yrsOthers

10 yrs ～5-10 yrs

Tokyo
Metropolitan
Area

Osaka
Metropolitan
Area

IHI Infrastructure Systems

SANKYU INC.

NagoyaMetropolitan
Area

OthersNIPPON EXPRESS
Not Disclosed

LONCO JAPANORIX Auto Corporation.

MITSUI-SOKO LOGISTICS Co., Ltd.

Kimura-Unity Co., Ltd.

Nihon Realest Co., Ltd.

MITAKA SOKO Co., Ltd.
OthersNote: As of Feb. 28, 2023

25

Portfolio Overview
Sponsor-Developed Properties

MJIA-Sourced PropertiesLOGiSTA･Logicross Ibaraki Saito(A) (45% co-ownership interest)

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

Logicross Yokohama Kohoku

MJ Logipark Inzai 1

MJ Logipark Takatsuki 1

MJ Logipark Funabashi 2

Logicross Fukuoka Hisayama

Logicross Atsugi

Logicross Kobe Sanda

MJ Logipark Higashi Osaka 1

MJ Industrial Park Kawanishi (Land)

MJ Logipark Funabashi 1

Logicross Osaka

Logicross Nagoya Kasadera

Logicross Narashino

MJ Logipark Atsugi 1

MJ Logipark Kazo 1

MJ Logipark Osaka 1

Logicross AtsugiⅡ

LOGIPORT Sagamihara(49% co-ownership interest)

LOGIPORT Hashimoto(45% co-ownership interest)

MJ Logipark Fukuoka 1

MJ Logipark Tsuchiura 1

MJ Logipark Nishinomiya 1

LOGIPORT Osaka Taisho(37.5% co-ownership interest)

LOGIPORT Kawasaki Bay(45% co-ownership interest)

MJ Logipark Kasugai 1

MJ Logipark Kazo 2

MJ Logipark Sendai 1

MJ Industrial Park Sakai(Land)

MJ Industrial Park Kobe (Land)

MJ Industrial Park Chiba-Kita (Land)

Properties Acquired in 13th FP

26

Portfolio Map

Tokyo Metropolitan Area
1

Logicross Atsugi

2

Logicross Narashino

3

Logicross AtsugiⅡ

4

Logicross Yokohama Kohoku

5

LOGIPORT Sagamihara

6

LOGIPORT Hashimoto

7

LOGIPORT Kawasaki Bay

8

MJ Logipark Funabashi 1

9

MJ Logipark Atsugi 1

10

MJ Logipark Kazo 1

11

MJ Logipark Tsuchiura 1

12

MJ Logipark Kazo 2

13

MJ Logipark Inzai 1

14

MJ Logipark Funabashi 2

15

MJ Industrial Park Chiba-Kita (Land)

16

Logicross Hasuda

17

Logicross Kasukabe

18

Logicross Misato*

19

Logicross Funabashi

20

Logicross Sagamihara

21

Logicross Zama

22

Logicross Zama Komatsubara*Tentative name27

Portfolio Map

Nagoya Metropolitan Area
23

Logicross Nagoya Kasadera

24

MJ Logipark Kasugai 1

25

MJ Logipark Aisai 1*

26

MJ Logipark Ichinomiya 1*

27

MJ Logipark Okazaki 1**Tentative name

Osaka Metropolitan Area
28

Logicross Kobe Sanda

29

Logicross Osaka

30

LOGIPORT Osaka Taisho

31

LOGiSTA･Logicross Ibaraki Saito (A)32

LOGiSTA･Logicross Ibaraki Saito (B)33

MJ Logipark Osaka 1

34

MJ Logipark Nishinomiya 1

35

MJ Logipark Takatsuki 1

36

MJ Logipark Higashi Osaka 1

37

MJ Industrial Park Sakai (Land)38

MJ Industrial Park Kobe (Land)

39

MJ Industrial Park Kawanishi (Land)

40

Logicross Osaka Katano

41

Osaka Suminoe Shibatani Cold Storage Project*

42

MJ Logipark Daito 1*

43

MJ Logipark Kakogawa 1*

Other
44

Logicross Fukuoka Hisayama

45

MJ Logipark Fukuoka 1

46

MJ Logipark Sendai 1

28

Features of MEC Group’s Logistics Facilities Business (1)Development and operational management capabilities of logistics facilities
by leveraging the strengths of Mitsubishi Estate, a comprehensive developer, and its group companies
Extensive Information
Strengths as aAdvanced Development Capabilities
Utilizing Customer Relations
Gathering Capabilities
Comprehensive
Coordination among Stakeholders andCorporate Customer Relations
Developer
the Administration◼ Information gatheringand leasing
capabilities byleveraging client
network throughoffice and retailfacility business andthe branch network◼ Advanced
development
capabilities based ondiverse experience

Utilizing Group-Wide
Network◼ Obtaining a variety ofland information
through group-wide
information sharing
Logicross Nagoya
Kasadera

Logicross Hasuda◼ MEL’s ability to respondto complex schemes forownership interest swaps
were highly rated

LOGIPORT Kawasaki
Bay◼ Collaborative project
making full use of relation
with office tenant in
Otemachi, Marunouchi and
Yurakucho area

◼ In the development plan for the “next-gen corelogistics facility” in Joyo, Kyoto, MEC plans todevelop the building after implementing a land
readjustment as the project proponent.(details on

Customer Network Supported by Branches

the next page)

Consolidation of Plots of Land from
Multiple Landowners◼ Efforts such as acquiring
development lands
through landconsolidation of multiple
owners◼ Use of the regional
Logicross Kobe Sanda
network mainly in theareas where MEC’s head
office and branches arelocated to achieve tenantleasing activities

Logicross KasukabeStrength ofOperation &Management

Land Acquisition ＆Development
Strengths of the

Logistics Facilities
Business◼ Tenant relationshipactivities incollaboration with
TRC, which has
extensive experiencein the operation oflogistics facilities◼ Logistics Solutions
through Use ofTechnologies

Collaboration with TRC◼ Established in 1967, TRC has been in
the logistics facilities business forover 50 years. TRC has been
consolidated subsidiary of MEC since
2016.
◼ Promotion of accumulation of knowhow through personnel exchange◼ Achieved over 1 million m2 area of PM
consignment

(#)

40

TRC’s Track Record in PM(10,000m2)
Consignment
150

30

92.2

20
10
0

109.9

115.6

100

56.9
3.9

50

26.3

End of End of End of End of End of End of
Mar.
Mar. Mar. Mar. Mar.
Mar.
2018 2019 2020 2021 2022 2023

No. of properties (left)

0

Area (right)

Logistics Solutions through Use ofTechnologies, etc.（details on the next page）◼ Launch of job opening website for Logicross◼ Launch of a co-working showroom that aims
to solve problems through logistics tech
◼ Launch of project for first “next-gen corelogistics facility” directly connected toexpressway IC in Japan◼ Solutions for Warehouse Operation Using
AI-based Analytics◼ Introduction of AI robot cleaner

29

Features of MEC Group’s Logistics Facilities Business (2)Logistics Solutions through Use of Technologies, etc.
New

Launch of job opening website for Logicross●MEC launches a joint job opening site with IDEM
on website of Logicross as a part of its efforts tosolve the social issue of employment shortages fortruck drivers, warehouse workers, and otherworkers.

Solutions for Warehouse Operation Using AI-based Analytics

Image of job opening website●It allows tenants in Logicross to post job openings
in Logicross facility free of charge.

Launch of a co-working showroom that aims to solve
problems through logistics tech●“Seminar and Co-working Space” is available
for exhibiting companies to hold seminars, etc.

Measurement andanalysis of traffic
flow and idle time
for review oflocation changes
and pick-up
procedures

Improve job safety

Improve efficiency in in-warehouse works
Arrivalmanagement

Warehousemanagement

Shipping
management

Prevent
accidents bymeasuringtraffic lines andstagnant
operation●AI-based solution for managing truck berths●“TRC LODGE”, a permanent exhibition space
where visitors can learn the latest logistics
tech to help solve problems of all sizes faced
by logistics companies is launched●“Time Share Warehouse” is an experimental
space where companies can rent the entire
latest warehouse for an hour or more to test
and demonstrate new products●AI-based solution for measuring works inside the warehouse“TRC LODGE”, a permanent exhibition space

Use for daily warehouse
operation including
minimization of waiting time
Minimize waiting time of truck drivers●Solution for entrance control
Time Share
Warehouse

Seminar andCo-working Space

Launch of project for first “next-gen core logistics
facility” directly connected to expressway IC in Japan●A development project of a “next-gen core logistics
facility” directly connected to an expressway
interchange, the first in Japan, was launched in Aodani
Advance Maintenance Area in the hillside area in theeast of Joyo, Kyoto

Rendering●A dedicated rampway directly connected to an IC will enable the facility toaccept trucks under fully autonomous driving and truck platooning, which are
anticipated to allow next-generation mobility to access the facility directlyfrom the expressway, without passing through local roads and eventually
address social challenges, including ever-increasing demand for cargotransportation and serious shortage of truck drivers

Enhancement of safety of trucks,
public vehicles and pedestrians
coming in and out of the facility

Identify issues to be
improved in daily
operation
Detectpedestrians

Introduction of AI robot cleaner● “Whiz”, an AI robot cleaner was introduced at
Logicross Ebina“Whiz”, an AI robot cleaner● Part of the janitorial services that used to be
human labor is covered by the robot● The possibility of introducing the robot to Logicrossproperties to be completed is under review, withan aim to establish a new method or property
management in the era of labor shortage andcontactless mode under the COVID-19 pandemic

30

Logistics Market Overview (1): Supply-Demand Trends by Region
Tokyo Metropolitan Area

Osaka Metropolitan Area

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

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

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

(%）

4,000

14

3,500

12

3,000

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

(%）

1,200

12

800

8

400

4

1,600

16

10

2,500

8

2,000
6

1,500

4

1,000

2

500
0

0
2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023 2024
Forecast

Nagoya Metropolitan Area
New supply (left axis)
Vacancy rate (right axis)

0

0

2009

(year)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023 2024
Forecast(year)

Kyushu Area

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

(%）

800

60

New supply (left axis)

New demand (left axis)

Vacancy rate (right axis)(thousand m2）

(%）

400

16

300

12

200

8

100

4

50
600
40
400

30
20

200
10
0

0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023 2024
Forecast(year)

0

0
2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023 2024
Forecast(year)

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

31

Logistics Market Overview (2): Supply-Demand of Large Logistics Properties
Logistics Tenants’ Expansion Plan Over the Next Three Years
Floor area

41%

34%

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

21%

2022

2%
2%

50%

（n=62）
2021

No. of sites

19%

44%

31%

4%

39%

44%

（n=34）

6% 5%

41%

12%

3%

90%

100%

3%
0%
10%+ growth20%
0–10% growth40%
No change

60%
0–10% reduction

0%

80%
100%
10%+ reduction

Source: CBRE "Japan Logistics Occupier Survey 2022" (June 2022)

BTS facilities for lease (exclusive facilities)

21%

Purchase of land for development of own facility

15%

Consolidation of sites/facilities
Rebuilding of own facilities

15%

New development with developer/investor

11%
14%
13%

Purchase of existing facilities for own use

6%
3%
1%
3%

Other
Logistics operators (n=187)
Consignor firms (n=87)

54%

34%

Sale-and-leaseback

24%
16%
21%

Installation/ upgrade of facilities/ systems

17%

Increase in volume of cold storage items

Reducing rental expenses
Expanding regional network
Enhancing aseismic/ BCP qualities of facilities

25%

Increase in volume of home delivery parcels
Decrease in cargo volume handled

7%

Discontinuation/ sale of existing sites
13%

Logistics operators (n=171)

20%

40%

Consignor firms (n=77)

60%

Manufacturer

Wholesale

RetailOthersOther/N/A

Other

35%
35%

78%

45%

32%

23%
19%

12%
12%
14%
12%
9%
10%
9%
6%
13%
4%
5%
2%
3%
3%
4%
5%

0%

20%

40%

60%

80%

0
2020
2021
Building Completion Year

2022

2023

Business inventories have been increased since the Pandemic,
solid demand for logistics facilities is expected

All

30
2019

80%

Increase in Business Inventories

60

2018

70%

Source: CBRE "Japan Logistics Occupier Survey 2022" (June 2022)

90

2017

21%
16%

Increase in volume of goods stored

120

2016

60%
Decrease

Obsolescence/ usability of building/ facilities

33%

10%

0%

E-commerce

50%

Relocating sites to achieve efficient network

Trend in Facility Area Usage per Tenant by Industry
Logistics・3PL

40%

Business expansion

59%

Source: CBRE "Japan Logistics Occupier Survey 2022" (June 2022)（1,000㎡／Tenant）

30%
No Change

Source: CBRE "Japan Logistics Occupier Survey 2022" (June 2022)

Existing and new multi-tenant facilities
available for lease

Consignment to 3PL

20%

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

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

Discontinuation/ sale of own facilities

10%

Increase

Average※Estimate
Source: SUMITOMO MITSUI TRUST RESEARCH INSTITUTE CO., LTD.
Note 1: As of end of Nov. 2022. Only tenants with disclosed estimate values are considered for 2023
Note 2: Tenant information is obtained from public information as well as local information and is not exhaustive. Usage area is for reference only
Note 3: Some tenants may have been replaced since completion as the data used is current information, not at the point of completion

1.7
1.5
1.3
1.1
0.9

Finished goods and merchandise2020 1Q

2020 3Q

2021 1Q

Work in progress2021 3Q

Raw materials and Supplies

2022 1Q

2022 3Q

Source: Data compiled by the Asset Management Company based on All Industries (excluding Finance andInsurance) of “Financial Statements Statistics of Corporations by Industry, Quarterly” by Ministry of
Finance, Japan. The figures are re-indexed to 1Q2020 as the base number

32

Logistics Market Overview (3)：Increase in Logistics Demand
Trend in Retail E-Commerce Market Size and Number of Deliveries（100bn yen）

E-Commerce Market Size (Retail) (Left Axis)
Number of Deliveries (Right Axis)

3PL Market Size（million）（100bn yen）

7,500

50

200

6,000

40

150

4,500

30

100

3,000

20

50

1,500

10

250

0

Forecast002005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 （year）
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026

2010

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

Japan

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 （FY）

Note:

Each fiscal year is the period beginning on April 1 and ending on March 31 of the following year, which does not coincide with thefiscal period of MEL
Source: Compiled by the Asset Management Company based on “Monthly Logistics Business Sep. 2022”

Retail Market Size

E-commerce Penetration Rate（%）

3PL Sales

U.S.A.

U.K.

Department StoreSupermarket

Convenience Store

Drugstore

E-commerce（100bn yen）
160

40

32

26.5

120
24

14.5

16

80
7.2

8

8.8

4.0
0

2.1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

(year)

Source: Data compiled by the Asset Management Company based on “FY2021 Global Economy Survey for Formulating an Integrated Domestic
and External Economic Growth Survey (E-Commerce Market Survey)” by the Ministry of Economy, Trade and Industry (August 2022), as
well as data disclosed by Office for National Statistics (UK) and U.S. Census Bureau. Data disclosed herein are until 2022 for U.S. and UK,
and until 2021 for Japan

40
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(year)

Source: Data compiled by the Asset Management Company based on “Monthly Report on the Current Survey of Commerce Dec 2022” (February2023), and “FY2021 Global Economy Survey for Formulating an Integrated Domestic Growth Survey (E-Commerce Market Survey)” by
the Ministry of Economy, Trade and Industry (August 2022)

33

ESG Initiatives (Environment)
Environment
Promotion of Green Portfolio
Ratio of Green
Properties in
Portfolio(Total Floor Area basis)

88.8%

Logicross Fukuoka Hisayama

Building-Housing EnergyEfficiency Labeling System(BELS)

Comprehensive Assessment
System for Built Environment
Efficiency (CASBEE)

Evaluate and indicate energy conservation Evaluate comprehensively environmental
performance of new and existing buildings performance of buildings, incl. reduction ofenvironmental burden and consideration
for scenery16

17

properties

properties-

S Rank for real estate

Logicross Atsugi★★★★★

S Rank for real estate

Logicross Kobe Sanda★★★★

A Rank for real estate

Logicross Osaka★★★★★

S Rank for real estate

Logicross Nagoya Kasadera★★★★★

S Rank for real estate

Logicross Narashino★★★★★

S Rank for real estate

Logicross Atsugi II★★★★★
(ZEB Ready)

S Rank for real estate-

A Rank for real estate

LOGIPORT Sagamihara★★★★

S Rank for real estate

LOGIPORT Hashimoto★★

S Rank for real estate

LOGIPORT Osaka Taisho★★★★★
(ZEB Ready)

S Rank for real estate

LOGIPORT Kawasaki Bay

★★★★★
(ZEB)

S Rank for real estate

LOGiSTA・LogicrossIbaraki Saito (A)★★★★★

S Rank for real estate

LOGiSTA・LogicrossIbaraki Saito (B)★★★★★
(ZEB Ready)

S Rank for real estate

Logicross Yokohama Kohoku

MJ Logipark Kasugai １

Sign and Participation in International Initiatives-

S Rank for real estate

MJ Logipark Kazo 1

★★★★★

-

MJ Logipark Fukuoka 1★★★★★
(ZEB Ready)

S Rank for real estate

MJ Logipark Inzai 1

★★★★★

-

MJ Logipark Takatsuki 1

★★★★★

-

MJ Logipark Funabashi 2-

S Rank for real estate

Energy Saving Initiatives and Reduction of Paper Use

Size change
Insulated sandwich
panels for exterior
walls

Renovation with LED
installation
based on Green Lease
Contract

Reuse of OA floor
panels of officebuildings in
Marunouchi

Change of the size of
asset management
reports to reduce
paper use

Use of Renewable Energy for Reducing Carbon
Emissions / BCP Initiatives

Installation of solar panels

Seismic isolators

Installation of
emergency power
generators

Introduction of
RE100(MJ Logipark
Sendai 1)

34

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

KPIs / Targets

GHG emission
intensity(Note 1)

30% reduction
Energy consumption
intensity(Note 1)

15% reduction
Water consumption
intensity(Note 1)

Not increase
Waste recycling(Note 2)

70%

10.0%
0%
-10.0%-20.0%-30.0%-40.0%

6.5%-21.3%

Installation of LED lighting and motion sensor-30.0%

Renewal of air-conditioning equipment
FY 2018

FY 2019

FY 2020

FY 2021

9.5%

20.0%
10.0%
0%
-10.0%-20.0%-30.0%

-6.8%

-9.7%
-23.3%FY 2017(Base year)

FY 2018

FY 2019

FY 2020

FY 2021

FY 2030(Target year)

Achievementtarget-15.0%

0.0%

Installation of water-saving toilets and soundimitating devices-27.6%

AchievementtargetWater saving with tenants

FY 2021

FY 2030(Target year)-18.9%FY 2018

73.3%

80.0%

FY 2019

66.6%

FY 2020

63.4%

62.3%

54.9%

Installation of smart watering systems

70.0%

Promotion of Recycling
Achievementtarget50.0%
FY 2017(Base year)

Installation of solar panels
Purchase of renewable energy-9.8%

FY 2017(Base year)

Promotion of appropriate temperature settingin air conditioner

FY 2030(Target year)

11.9%

20.0%
10.0%
0%
-10.0%-20.0%-30.0%

60.0%

Achievementtarget-34.7%FY 2017(Base year)

70.0%-15.3%

Initiatives to reduce environmental burden(Examples)

FY 2018

FY 2019

FY 2020

FY 2021

FY 2030(Target year)

Implementation of trash sorting procedures(Note 1) Achievement target: by FY2030, compared with FY2017(Note 2) Achievement target: by FY2030

35

ESG Initiatives (Social)SocialProactive Participation in CSR Activities⚫ Participation in flower bed⚫ Register for Disaster Cooperation Building
maintenance activities ofcommunity near Logicross Atsugi(LOGIPORT Sagamihara, LOGIPORT Hashimoto,
Logicross Nagoya Kasadera, LOGIPORT Osaka
Taisho)LOGIPORT Hashimoto

Tenant Satisfaction Survey⚫ Conducted a tenant satisfaction survey in hardware/software aspects, in collaboration witha third party agency for the purpose of hearing opinions of tenants to improve building
management, meet their potential needs and increase their comfort. Improvements
implemented as a result of the survey include installation of thermos cameras and AEDs,
and measures to ease bird damages

LOGIPORT Osaka Taisho

Logicross Nagoya Kasadera
Logicross Nagoya
Kasadera⚫ Clean-up activities around
MJIA’s office⚫ Renovation of cafeteria(LOGIPORT Sagamihara)

Logicross Nagoya Kasadera

MJ Logipark Sendai 1

Collaboration with Local Educational Institute andImprovement in Tenant Satisfaction⚫ Conducted a survey to employees and reflected the result on the renovation of theemployee lounge. Also, a wall design contest involving local universities and vocational
schools was held and the design of the winner is used for the lounge’s wall design of
MJ Logipark Fukuoka 1⚫ Free salt candy service for tenants in⚫ Securing reserves in case of

emergency (food, beverage &portable toilet)

properties as a preventive measure forheatstroke(for all properties held as of Aug. 2022)⚫ Donation of 1,900 unused surgical masks

stored to the Chiyoda Ward Health Center⚫ Donation of unused calendars to elementary
schools in developing countries throughsupport organizations as a substitute fornotebooks⚫ Donation of disaster prevention supplies

that are no longer needed to volunteer
firefighters and rescue teams in developing
countries through support organizations

BeforeAfter

Measures for Employees’ Comfort andOffering a Comfortable Working Environment
Various initiatives are implemented in order to maximize asset management performance byimproving productivity, skills and motivation of employees

Initiatives in MJIA
● Introduction of flexible working hours● Installation of community spaces within office area
● Invitation of personnel from group companies andoutside professionals● Specialized training for capacity building of employees● Annual employee satisfaction survey

Installation of community spaces
within office area

36

ESG Initiatives (Governance)
Governance
Asset Management Fee Structure

Measures to Address Conflict of Interests
in Asset Management⚫ Introduced an asset management fee structure reflecting theperformance of investment unit price for the purpose of aligninginterest with unitholders⚫ Any asset acquisition from or sale to an interested person of MEL
should be determined through a transparent decision-making process
at MJIA

Asset management
fee I (AUM-linked)

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

Asset management
fee II (Real estate
profit-linked)

Adjusted NOI × 5.0% (upper limit)

Examination by Compliance Department(a): Fluctuations in MEL’s investment unit price (incl. dividends)(b): Fluctuations in the TSE REIT Index (incl. dividends)

Investment unit price of MEL

TSE REIT Index (incl. dividends)
X + DPUY

If MEL’s growth rate issmaller（As of February 28, 2023）

Approval by MEL’s Board of Directors*If necessary

Decrease fee

Reference date (Present period)

Continued Investmentby the Sponsor*Needs to be attended by an external expert (legal counsel)

Capital Contribution Ratio

Approx. 4.1%

MJIA

Reference date (Previous period)

Deliberation by Compliance & Risk Management
Committee

MEL

Increase fee

X + DPU

President and Executive Officer Approval

If MEL’s growth rate is
greaterY

Deliberation by Executive Committee*Needs to be attended by a third party appraiser(If voted down)“Fee linked to Investment Unit Price”
Performance against TSE REIT Index ((a)-(b)) × market cap(for fiscal period of each term) × 0.1% (upper limit)

MJIA

Adjusted net income before tax × net income before tax per
unit × 0.001% (upper limit)
First among J-REITs
Asset management
fee III (unitholderinterest-linked)

Proposal by Logistics REIT Management
Department

Report to Board of Directors*If necessary, after completion of acquisition or sale

Cumulative Investment for Employees⚫ Introduced cumulative investment for officers and employees ofSponsor and MJIA with the aim of continuous increase inunitholder’s value and provision of benefits to officers andemployees

37

MEC Group’s Initiatives for ESG
MEC Group 2030 Sustainable Development Goals 2030

MEC Developed first Logistics Facility that Meets “ZEB Standard”

MEC Group are committed to providing even greater value to a wider
range of stakeholders in the four key themes of “Environment”,“Diversity & Inclusion”, “Innovation” and “Resilience”

1. Environment

2. Diversity & Inclusion

Sustainable urban developmentthat proactively addresses climatechange and environmental issues

Urban development that responds
to lifestyle and human resources
trends and facilitates active
participation for all

3. Innovation

4. Resilience

Innovative urban development that
continuously renews society

Dynamic, flexible urban
development that builds disasterresilient communities andprioritizes safety and security

Reduce GHG emissions and promote the use of renewable energy
In March 2022, MEC Group sets a target to meet
the SBTi's 1.5°C scenario, in compliance with "TheNet-Zero Standard," which was published by the
SBTi in October 2021. (In June 2022, MEC Group
received SBT Net-Zero certification from SBTi.)

Logicross Zama Komatsubara

Logicross Zama Komatsubara, a logistics facility completed in March
2022, became the first property for MEC to obtain ZEB(Note1)
certification, the highest rank rating under the BELS(Note2) BuildingHousing Energy-Efficiency Labeling System. In the Logicross Series,
which is logistics facilities developed by MEC, MEC sets the company's
policy to obtain BELS certification in principle for all properties
completed after Logicross Ebina, which is completed in November
2020.
Note1:Net Zero Energy Building
Note2: A third-party certification system that evaluates and displays energy conservation
performance based on the "Evaluation Guidelines for Energy Conservation Performance Labelingfor Nonresidential Buildings" established by the Ministry of Land, Infrastructure, Transport andTourism.

Promotion of Use of Renewable Power in Logistics Facilities

LOGIPORT Kawasaki Bay

In addition, in line with the targets set inaccordance with the Net-Zero Standard, MEC
Group aims to achieve RE100 by FY2025 for its
renewable energy electricity ratio target.
Logicross Ebina

MEC is working to install solar panels on
the roof space of the Logicross series oflogistics facilities where such installations
are possible. At LOGIPORT Kawasaki Bay,completed in May 2019 and LogicrossEbina, completed in November 2020, theinitiative uses the PPA* model.
PPA: Power Purchase Agreement
A third-party ownership model for selfsufficient solar power generation facilities

38

Overview of the 6th Follow-on Offering
Offering Type

Global Offering（Reg.S+144A）

Launch Date

Oct. 14, 2022

Pricing Date

Oct. 19, 2022

Issue Price

394,875 yen

Number of Units

Public Offering: 51,000 units（Including for the sponsor: 2,200 units）

8

Third-party Allotment: 2,550 units
Total Capital Raised

No. of properties

20.4 bn yen

Total AcquisitionPrice

Total Appraisal
Value

45.4 bn yen

50.6

Properties

Average Appraisal
NOI Yield

4.5

Average Occupancy
Rate％

MJIA-sourced only:

5.0%

100.0

％

bn yenAverage Building
Age

2.7

years

Sponsor-developed (Jointly)

Sponsor-developed (Jointly)

Sponsor-developed (Independently)

LOGiSTA･LogicrossIbaraki Saito (A) (45%)

LOGiSTA･LogicrossIbaraki Saito (B) (45%)

Logicross Yokohama Kohoku

MJ Logipark Funabashi 2

Acquisition price: 15,150 mn yen
Appraisal NOI yield: 4.2%

Acquisition price: 3,900 mn yen
Appraisal NOI yield: 4.3%

Acquisition price: 7,821 mn yen
Appraisal NOI yield: 4.1%

Acquisition price: 4,880 mn yen
Appraisal NOI yield: 5.3%

MJIA-sourced (PDP)

MJIA-sourced (PDP)

MJIA-sourced (CRE)

MJIA-sourced (PDP)

MJIA-sourced (CRE)

MJ Logipark Inzai 1

MJ Logipark Takatsuki 1

MJ Logipark Higashi Osaka 1

MJ Industrial Park Kawanishi (Land)

Acquisition price: 4,353 mn yen
Appraisal NOI yield: 5.1%

Acquisition price: 5,500 mn yen
Appraisal NOI yield: 4.8%

Acquisition price: 1,687 mn yen
Appraisal NOI yield: 5.3%

Acquisition price: 2,125 mn yen
Appraisal NOI yield: 4.4%

Note1：Calculated as of Oct. 14, 2022, when the 6th Follow-on offering was resolved. However, Total Capital Raised is calculated based on the Amount to be paid in determined on Oct. 19, 2022.

39

Effects of the 6th Follow-on Offering
Tax-stabilized DPU

Asset Size（bn yen）

300+45.4 bn yen

261.6bn yen

（yen）
8,000

200

7,000

100

6,000

Post-6th
Follow-on Offering

FP 2022/8

NAV per Unit（yen）
400,000
380,000

7,832yen

7,392yen

216.3bn yen

0

+6.0%

5,000
0

Pre-6thFollow-on Offering

Post-6th
Follow-on Offering

LTV・Acquisition Capacity+4.3%

391,835yen

375,616yen

LTV
Pre-6th Follow-on Offering

Forecasted LTV
Aug. 2023（14th FP）

35.４%

38.2%

Acquisition
CapacityUp
to 50%
LTV●bn
yen

64 bn yen

360,000
340,000
320,000
300,000
0 0
300,000

FP 2022/8

FP 2023/2

Note：Calculated as of Oct.14, 2022, when the 6th Follow-on offering was resolved. NAV per unit for FP 2023/2 is as of Feb. 28, 2023. and Forecasted LTV for the fiscal period ending Aug. 2023 (14th FP) and Acquisition Capacity
are calculated with the forecast as of Feb. 28, 2023.

40

Overview of Portfolio(1)Property Name

Location

Acquisition Price(mn yen)

Ratio
(%)

AppraisalValue(mn yen)Appraisal
NOI Yield
(%)

Total
Leasable
Area (㎡)Occupancy
Rate（%）

Year built

Property
Type

Logicross Fukuoka Hisayama

Kasuya, Fukuoka

5,770

2.2

7,910

6.1

34,878.55

100.0

Oct. 2014

Multi

Logicross Atsugi

Atsugi, Kanagawa

8,440

3.2

9,470

4.5

29,895.80

100.0Mar. 2017

Multi

Logicross Kobe Sanda

Kobe, Hyogo

3,900

1.5

4,420

5.1

12,844.35

100.0

Jun. 2017

BTS

Logicross Osaka

Osaka, Osaka

9,743

3.7

10,3004.3

35,616.58

100.0

Sept. 2018

Multi

Logicross Nagoya Kasadera

Nagoya, Aichi

14,424

5.5

17,8005.0

62,289.08

100.0

Jan. 2019

Multi

Logicross Narashino

Narashino, Chiba

11,851

4.5

12,400

4.3

39,132.05

100.0

Mar. 2018

Multi

Logicross Atsugi II

Atsugi, Kanagawa

9,838

3.8

10,600

4.4

34,580.85

100.0Jul. 2019

Multi

Logicross Yokohama Kohoku

Yokohama, Kanagawa

7,821

3.0

8,130

4.1

16,371.24

100.0

May 2019

Multi

LOGIPORT Sagamihara(49% co-ownership interest)

Sagamihara, Kanagawa

21,3648.2

24,5004.6

88,609.64

99.7

Aug. 2013

Multi

LOGIPORT Hashimoto(45% co-ownership interest)

Sagamihara, Kanagawa

18,2007.0

21,780

4.6

58,487.96

100.0

Jan. 2015

Multi

LOGIPORT Osaka Taisho(37.5% co-ownership interest)

Osaka, Osaka

10,4844.0

12,225

4.6

40,081.56

100.0

Feb. 2018

Multi

LOGIPORT Kawasaki Bay(45 % co-ownership interest)

Kawasaki, Kanagawa

36,00013.8

40,995

4.3

117,762.91

99.9

May 2019

Multi

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

Ibaraki, Osaka

15,1505.8

15,7004.2

45,983.59

100.0

May 2021

Multi

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

Ibaraki, Osaka

3,900

1.5

3,990

4.3

14,012.95

100.0

Apr. 2021

Multi

Note: As of Feb. 28, 2023

41

Overview of Portfolio(2)AppraisalValue(mn yen)Appraisal
NOI Yield(%)

Occupancy
Rate（%）

Year Build

PropertyType

18,232.07

100.0

Nov. 1989

Multi

5.0

28,002.44

100.0

Jul. 2013

Multi

1,620

5.7

7,678.10

100.0Mar. 2006

Multi

2.3

8,160

5.8

39,082.95

100.0

Sept. 2007

Multi

6,130

2.3

7,260

5.7

38,143.21

100.0

Sept. 2007

Multi

Tsuchiura, Ibaraki

3,133

1.2

3,650

5.3

15,485.00

100.0

Oct. 2014BTS

MJ Logipark Nishinomiya 1

Nishinomiya, Hyogo

2,483

0.9

2,720

5.7

13,777.07

100.0

Mar. 1991

BTS

MJ Logipark Kasugai 1

Kasugai, Aichi

13,6705.2

15,2004.8

57,866.98

100.0

Jan. 2017Multi

MJ Logipark Kazo 2

Kazo, Saitama

1,637

0.6

1,740

5.0

7,349.18

100.0

Dec. 1998BTS

MJ Logipark Sendai 1

Tagajo, Miyagi

7,388

2.8

7,670

5.1

39,098.87

100.0

Mar. 2009Multi

MJ Logipark Inzai 1

Inzai, Chiba

4,353

1.7

5,190

5.1

20,980.63

100.0

Jul. 2021

Multi

MJ Logipark Takatsuki 1

Takatsuki, Osaka

5,500

2.1

6,530

4.8

20,897.84

100.0

May 2021

Multi

MJ Logipark Higashi Osaka 1

Higashiosaka,Osaka

1,687

0.6

2,050

5.3

10,185.04

100.0

Apr. 1991

BTS

MJ Logipark Funabashi 2

Funabashi, Chiba

4,880

1.9

6,570

5.3

19,219.10

100.0

Feb.2022

Multi

MJ Industrial Park Sakai（Land）

Sakai, Osaka

5,600

2.1

5,780

3.8

87,476.71

100.0

-

Land

MJ Industrial Park Kobe（Land）

Kobe, Hyogo

4,970

1.9

5,720

5.1

31,743.99

100.0

-

Land

MJ Industrial Park Chiba-Kita（Land）

Chiba, Chiba

1,800

0.7

1,990

4.4

14,986.64

100.0

-

Land

MJ Industrial Park Kawanishi (Land)

Kawanishi, Hyogo

2,125

0.8

2,630

4.4

9,353.48

100.0

-

Land

100.0

299,350

4.7

1,110,106.41

100.0

-

-

Location

Acquisition Price(mn yen)

Ratio
(%)

MJ Logipark Funabashi 1

Funabashi, Chiba

5,400

2.1

7,060

7.3

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

2.5

7,590

MJ Logipark Kazo 1

Kazo, Saitama

1,272

0.5

MJ Logipark Osaka 1

Osaka, Osaka

6,090

MJ Logipark Fukuoka 1

Kasuya, Fukuoka

MJ Logipark Tsuchiura 1

Property Name

Total / Average

261,659

Total
Leasable
Area (㎡)Note: As of Feb. 28, 2023

42

Summary of Latest Appraisals(1)（mn yen)

Property Name

Acquisition Date
(Note 1)

Acquisition PriceBook Valueat end of
13th FP

13th FP (Ended Feb.28,2023) (Note 2)

12th FP (Ended Aug. 31,2023) (Note 3)

Appraisal
value

Appraisalvalue

Direct cap
rate (%)

Direct cap rate(%)

Difference
Appraisalvalue

Direct cap rate(%)

Unrealized
gain

Logicross Fukuoka Hisayama

Sept. 2017

5,770

5,383

7,910

4.3

7,810

4.4

+100

-0.1

2,526

Logicross Atsugi

Sept. 2018

8,440

8,249

9,470

4.0

9,440

4.0

+30

±0

1,220

Logicross Kobe Sanda

Sept. 2018

3,900

3,811

4,420

4.4

4,400

4.4

+20

±0

608

Logicross Osaka

Sept.2020

9,743

9,648

10,3004.0

10,300

4.0

±0

±0

651

Logicross Nagoya Kasadera

Sept.2020

14,424

14,33517,8004.0

17,300

4.1

+500

-0.1

3,464

Logicross Narashino

Mar. 2021

11,851

11,81812,4004.0

12,400

4.0

±0

±0

581

Logicross Atsugi II

Mar. 2022

9,838

9,904

10,6004.0

10,500

4.0

+100

±0

695

Logicross Yokohama Kohoku

Oct. 2022

7,821

7,903

8,130

3.8

8,110

3.8

+20

±0

226

LOGIPORT Sagamihara(49% co-ownership interest)

Sept. 2017

21,364

20,43424,5003.9

24,500

4.0

±0

-0.1

4,065

LOGIPORT Hashimoto(45% co-ownership interest)

Sept. 201718,20017,47521,7803.8

21,600

3.9

+180

-0.1

4,304

LOGIPORT Osaka Taisho(37.5% co-ownership interest)

Oct. 201910,484

10,33012,225

3.9

12,187

3.9

+37

±0

1,894

LOGIPORT Kawasaki Bay(45 % co-ownership interest)

Mar. 2022

36,00035,98940,995

3.7

40,680

3.8

+315

-0.1

5,005

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

Oct. 2022

15,15015,28915,7004.0

15,700

4.0

±0

±0

410

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

Oct. 2022

3,900

3,941

3,990

4.1

3,980

4.1

+10

±0

48

MJ Logipark Funabashi 1

Sept. 2016

5,400

5,256

7,060

5.2

6,690

4.9

+370

+0.3

1,803

MJ Logipark Atsugi 1

Sept. 2017

6,653

6,375

7,590

4.1

7,190

4.1

+400

±0

1,214

Note 1: “Acquisition date” represents the acquisition date in the relevant sale and purchase agreement. If multiple purchase agreements have been concluded due to additional acquisitions, the earliest acquisition date is indicated.
Note 2: As of Feb. 28, 2023.
Note 3: As of Aug. 31, 2022. However, for Logicross Yokohama Kohoku, LOGiSTA·Logicross Ibaraki Saito(A) (45 % co-ownership interest), LOGiSTA·Logicross Ibaraki Saito(B) (45 % co-ownership interest), MJ Logipark Inzai 1, MJ Logipark Takatsuki 1, MJ Logipark Higashi Osaka 1,
MJ Logipark Funabashi 2 and MJ Industrial Park Kawanishi(Land), appraisal value and direct cap rate are as of Sept. 1, 2022.

43

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

Property Name

Acquisition PriceBook Valueat end of
13th FP

13th FP (Ended Feb.28,2023) (Note 2)

12th FP (Ended Aug. 31,2022) (Note 3)

Appraisal
value

Appraisalvalue

Direct cap
rate (%)

Direct cap rate(%)

Difference
Appraisalvalue

Direct cap rate(%)

Unrealizedgain

MJ Logipark Kazo 1

Sept. 2017

1,272

1,215

1,620

4.3

1,560

4.5

+60

-0.2

404

MJ Logipark Osaka 1

Sept. 2017

6,090

5,862

8,160

4.1

8,120

4.2

+40

-0.1

2,297

MJ Logipark Fukuoka 1

Sept. 2017

6,130

5,641

7,260

4.5

7,230

4.6

+30

-0.1

1,618

MJ Logipark Tsuchiura 1

Sept. 2019

3,133

3,082

3,650

4.5

3,570

4.6

+80

-0.1

567

MJ Logipark Nishinomiya 1

Oct. 2019

2,483

2,548

2,720

4.7

2,710

4.7

+10

±0

171

MJ Logipark Kasugai 1

Oct. 201913,67013,36915,2004.2

15,100

4.2

+100

±0

1,830

MJ Logipark Kazo 2

Sept.2020

1,637

1,675

1,740

4.3

1,720

4.3

+20

±0

64

MJ Logipark Sendai 1

Sept.2020

7,388

7,237

7,670

4.7

7,660

4.7

+10

±0

432

MJ Logipark Inzai 1

Oct. 2022

4,353

4,392

5,190

4.1

5,180

4.1

+10

±0

797

MJ Logipark Takatsuki 1

Oct. 2022

5,500

5,556

6,530

3.9

6,510

3.9

+20

±0

973

MJ Logipark Higashi Osaka 1Oct. 2022

1,687

1,762

2,050

4.2

2,050

4.2

±0

±0

287

MJ Logipark Funabashi 2

Dec. 2022

4,880

4,932

6,570

3.8

6,500

3.8

+70

±0

1,637

MJ Industrial Park Sakai（Land）

Oct. 2019

5,600

5,666

5,780

3.7

5,780

3.7

±0

±0

113

MJ Industrial Park Kobe（Land）

Mar. 2021

4,970

5,202

5,720

4.0

5,720

4.0

±0

±0

517

MJ Industrial Park Chiba-Kita（Land）

Mar. 2021

1,800

1,914

1,990

4.3

1,980

4.3

+10

±0

75

MJ Industrial Park Kawanishi (Land)

Oct. 2022

2,125

2,221

2,630

3.9

2,600

3.9

+30

±0

408

261,659

258,429299,350‐

296,777---

40,920Total

Note 1: “Acquisition date” represents the acquisition date in the relevant sale and purchase agreement. If multiple purchase agreements have been concluded due to additional acquisitions, the earliest acquisition date is indicated.
Note 2: As of Feb. 28, 2023.
Note 3: As of Aug. 31, 2022. However, for Logicross Yokohama Kohoku, LOGiSTA·Logicross Ibaraki Saito(A) (45 % co-ownership interest), LOGiSTA·Logicross Ibaraki Saito(B) (45 % co-ownership interest), MJ Logipark Inzai 1, MJ Logipark Takatsuki 1, MJ Logipark Higashi Osaka 1,
MJ Logipark Funabashi 2 and MJ Industrial Park Kawanishi(Land), appraisal value and direct cap rate are as of Sept. 1, 2022.

44

Financial Data
Lender Formation
Balance（mn yen）

No. of Lenders

25

Total Debt Balance

105,374 mn yen

Ratio

MUFG Bank, Ltd.

17,20016.3％

Mizuho Bank, Ltd.

13,46012.8％

Sumitomo Mitsui Banking Corporation

11,260

10.7％

The Norinchukin Bank

8,250

7.8%

The Resona Bank, Ltd.

6,000

5.7％

Shinkin Central Bank

5,906

5.6％

The Bank of Fukuoka, Ltd.

5,307

5.0％

SBI Shinsei Bank, Limited

4,750

4.5％

The Shinkumi Federation Bank

4,750

4.5％

The Yamaguchi Bank, Ltd.

4,000

3.8%

The Chiba Bank, Ltd.

3,300

3.1％

Daiwa Next Bank, Ltd.

3,000

2.8%

The Yamagata Bank, Ltd.

3,000

2.8%

Development Bank of Japan Inc.

2,491

2.4%

Investment Corporation Bonds

2,000

1.9%

The 77 Bank, Ltd.

1,900

1.8％

The Yamanashi Chuo Bank, Ltd.

1,500

1.4%

The NISHI-NIPPON CITY BANK, Ltd.

1,500

1.4％

The Hachijuni Bank, Ltd.

1,000

0.9％

The Gunma Bank, Ltd.

1,000

0.9％

Kansai Mirai Bank, Limited
Daishi Hokuetsu Bank, Ltd.

1,000

0.9%

1,000

0.9％

Sumitomo Mitsui Trust Bank, Limited

500

0.5％

The Keiyo Bank, Ltd.

500

0.5％

The Chugoku Bank, Ltd.

500

0.5％

The Bank of Toyama, Ltd.

300

0.3%

105,374

100%

Total
Note: As of Mar. 15, 2023

45

Statement of Income and Balance Sheet
Statement of Income
Item
Operating revenues
Operating rental revenues
Other rental revenues

Operating expenses
Expenses related to property rental business
Asset management fee
Asset custody fee(Unit：Thousands of yen)

7,149,831
6,759,061
390,769
3,316,258
2,450,675
631,224
2,014
22,222

Director’s compensations

2,400

Other operating expenses

207,722

Non-operating income(Unit：Thousands of yen)

Item

ActualAdministrative service fee

Operating income

Balance Sheet

3,833,573
1,132

Current assets

Actual
14,524,321

Cash and deposits

3,892,773

Cash and deposits in trust

9,098,058

Other current assets

1,533,489

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

258,539,062
258,429,311
441
109,308

Total assets

273,063,384

Current liabilities

13,402,546

Operating accounts payable

211,031

Short-term loans

4,430,000

Long-term loans payable due within one year

6,540,000

Interest income

64

Accrued expenses

885,627

Reversal of distributions payable

425

Advances received

1,315,914

other non-operating revenues

643

Non-operating expenses

401,267Interest expenses

225,451

Interest expenses on investment corporation bonds

6,961

Borrowing related expenses

5,779

Investment unit issuance expenses

163,074

Ordinary income

3,433,438

Net income

3,432,462

Unappropriated retained earnings

3,432,549

Other current liabilities
Non-current liabilities

19,97499,457,797

Investment Corporation Bonds

2,000,000

Long-term loans payable

92,404,000

Tenant leasehold and security deposits in trust

5,053,797

Total liabilities

112,860,343

Total unitholders’ equity

160,203,040

Unitholders’ capital, net

156,770,490

Surplus3,432,549

Total net assets

160,203,040

Total liabilities and net assets

273,063,384

46

Unitholders Composition
Major Unitholders（Note2)

Breakdown by Units (Note 1)

Number of
Units

Ratio
(%)

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

96,677

19.20

Custody Bank of Japan, Ltd. (Trust Account)

96,590

19.18

2.5%

7.2%
21.9%

6.3%

503,485
units
61.9%

Domestic individuals
and others：36,252 units

Financial institutions：311,720 units

Domestic entities：31,930 units

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

26,523

5.26

Foreign entities：110,525 units

Mitsubishi Estate Co., Ltd.

20,550

4.08

Securities Companies：13,058 units

STATE STREET BANK WEST CLIENT – TREATY 505234

8,296

1.64

SSBTC CLIENT OMNIBUS ACCOUNT

6,732

1.33

The Shinkumi Federation Bank

6,520

1.29

BNP PARIBAS LUXEMBOURG/2S/BNP PARIBASLUXEMBOURG/2S/JASDEC/SECURITIES-AIFM

6,469

1.28

STATE STREET BANK AND TRUST COMPANY 505103

6,119

1.21

JP MORGAN CHASE BANK 385781

6,044

1.20

280,520

55.67

Breakdown by Unitholders (Note 1)
2.6%

2.0%

0.1%

1.6%

10,334

Domestic individuals
and others：9,643 unitholders

Financial institutions：175 unitholders

Domestic entities：279 unitholders

Foreign entities：217 unitholders

Securities Companies：20 unitholders

unitholders

93.3%

Total

Same-boat Investment by MEC
Investment in
MEL by MEC

c. 4.1%

Note1: As of Feb. 28, 2023. The ratio is rounded down to the second decimal place.
Note2: As of Feb. 28, 2023. The ratio is rounded down to the third decimal place.

47

MEMO

MEMO

MEMO

Disclaimer
This document is provided solely for informational purpose with regard to Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) and is not intended to serve as an inducement or solicitation to trade inany product offered by MEL.
Purchase, sale and such of MEL’s investment units entail the risk of incurring a loss due to fluctuations of the investment unit price.
Please consult with a securities company regarding the purchase of MEL’s investment units or investment corporation bonds. Information presented on this document should not be interpreted, unless otherwise
specified, as constituting disclosure documents or asset management report required under Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
The information contained in this document is the best available at the time of publication, however, no assurances can be given regarding the accuracy, validity and completeness of this information.
Furthermore, MEL and Mitsubishi Jisho Investment Advisors, Inc. (the “Asset Management Company”) assume no responsibility for the accuracy of the data, indices and other information release by third parties(including data based on real estate appraisal reports).
This document includes forward-looking statements that reflect MEL’s plans and expectations. Any information contained in this document except facts about the past and present is referred to as such forwardlooking statements. These forward-looking statements are based on the current assumptions and beliefs of MEL or the Asset Management Company in light of the information currently available to them, andinvolve known and unknown risks, uncertainties and other factors, and may be affected by such factors. These factors include risks related to MEL’s internal and external growth and risks related to the
profitability per investment unit. Such risks, uncertainties and other factors may cause MEL’s actual results, performance, achievements or financial position expressed or implied by these forward-looking
statements. MEL and the Asset Management Company undertake no obligation to publicly update any forward-looking statements after the date of this document.
The content of this document is subject to change or repeal without prior notice.
Duplication or reproduction of any content presented in this document without the prior consent of MEL or Mitsubishi Jisho Investment Advisors, Inc. is strictly prohibited.
The document is prepared solely for use by residents of Japan and is not intended for use by non-residents of Japan