November 15, 2019
Notice of Surplus Cash Distributions for the 6th Fiscal Period

Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) announced that, on October 17, 2019,its board of directors passed a resolution regarding surplus cash distributions (return of capital) (“SCD”).
In addition to the cash distributions of 4,930 yen per unit, MEL will distribute SCD of 594 yen per unit forthe 6th Fiscal Period. MEL will start to pay the subject cash distributions on November 18, 2019.
This information lays out the tax treatment of the SCD per unit of 594 yen which originates from returnof capital and therefore differs from the cash distribution which originates from retained earnings.
The entire SCD for this period is distributed from unitholders’ capital, (distributions from unitholders’capital” (excluding distributions of reserve for temporary difference). Under the Japanese tax laws, SCD
is considered “return of capital.” This will give arise to the “capital gains/losses from deemed transfer,”
which does not fall under dividend income for tax purposes. Please be aware of this when filing final
income tax returns.
Furthermore, while this document describes the payment of cash distributions and SCD, the Japanesetax treatment as well as matters that should be notified to unitholders based on the provisions of thetax laws, it does not provide an entire explanation of the tax procedures that are required for eachunitholders.
As detailed below, the computation of specific acquisition price per unit and capital gains/losses fromdeemed transfer for each investment unit, as well as the computation of income tax on capital gains
realized in a future sale of the units will differ for each individual unitholder depending on theirparticular circumstances. Please consult your securities firm, your local tax office, or your tax accountant
regarding these matters.

1. Cash Distributions for this Period
The cash distributions for this period are sourced from “retained earnings (cash distributions of 4,930
yen per unit)” and “unitholders’ capital (SCD of 594 yen per unit).” Due to the difference in payment
method depending on the source of the distributions, we have enclosed two difference documents
indicated below for each payment.
(1) For unitholders that have chosen to receive cash distributions via bank transfer:“Statement of Cash Distributions,” “Confirmation of Bank Transfer Details for Cash Distributions,”“Statement of Cash Distributions (for Surplus Cash Distributions arising from reduction in unitholders'capital)” and “Confirmation of Bank Transfer Details for Cash Distributions (for Surplus CashDistributions arising from reduction in unitholders' capital)”(2) For unitholders that have not chosen to receive cash distributions via bank transfer:“Statement of Cash Distributions,” “Receipt for Cash Distributions” and “Receipt for Cash Distributions(for Surplus Cash Distributions arising from reduction in unitholders' capital)”*“Statement of Cash Distributions” also serves as the “Notice of Payment” prepared in accordance withthe provisions of the Act on Special Measures Concerning Taxation and can be used as an attachment
when filing final tax returns.

2. Tax Treatment of the SCD for this Period(1) Category of income of the SCD for this period (Articles 24, 25, etc. of the Income Tax Act)
The entire SCD for this period is distributed from unitholders’ capital. Under the Japanese tax laws,
the portion attributable to capital, etc. is considered “return of capital,” while the remainingportion not attributable to capital, etc. is considered “deemed dividends.” Given that the entire
SCD for this period is being paid out from the portion attributable to capital, etc., there will be noportion considered “deemed dividends.”

“Return of capital” is referred to as a “deemed transfer” for Japanese tax purposes, since it isdeemed that part of the investment units owned by the unitholders has been transferred. Not onlywill a “deemed transfer” require that an adjustment (reduction) be made to the investment unit
acquisition price, in principle, it will also require the computation of “capital gains from deemedtransfer.”Due to the SCD for this period, final tax returns will need to be filed, in principle, if “capital gains
from deemed transfer” is realized (Note). However, unitholders who uses the specified accounts(with the option to withhold tax on income at source selected) to hold their investment units may
not be required to file the final tax returns when recognizing “capital gains from deemed transfer”
for the SCD received in proportion to the number of shares held in these accounts. Please contact
the relevant securities firm, etc. for confirmation regarding the treatment above.

Note: “Capital gains from deemed transfer” will arise for unitholders whose average acquisition priceper unit is lower than 297,000 yen.

(2) Capital gains/losses from deemed transfer (Article 37-11 of the Act on Special Measures ConcerningTaxation)
Pursuant to the Japanese tax laws, “capital gains/losses from deemed transfer” will arise forunitholders since it is deemed that there has been a transfer of some investment units.

Income from transfer, etc. is the amount whereby “(b) Acquisition price of units deemed to havebeen transferred” is subtracted from “(a) Deemed income.”In the SCD for this period, the deemed dividend is “0 yen” and the ratio of net asset value
attributable to a reduction in capital is “0.002.”＝

Total SCD amount－

Deemed dividend (0 yen)(b) Acquisition price of units＝
deemed to have been transferredPrevious totalacquisition price×

Ratio of net asset value
attributable to a reduction incapital (0.002)(a) Deemed income－(b) Acquisition price of units
deemed to have beentransferred(a) Deemed income(c) Capital gains/losses fromdeemed transfer ((a)-(b))＝[Example] Where 10 MEL investment units were acquired at 325,000 yen per unit(a) Deemed income = 594 yen (SCD per unit) × 10 units – 0 yen = 5,940 yen(b) Acquisition price of units deemed to have been transferred= (325,000 yen × 10 units) × 0.002 (ratio of net asset value attributable to a reduction in capital) = 6,500yen(c) Capital gains/losses from deemed transfer = 5,940 yen – 6,500 yen = (560) yen* Based on the above computation, capital gains from deemed transfer will arise for unitholders whose
average acquisition price per investment unit is lower than 297,000 yen.
* If (c) above is a negative figure as a result of the computation, it will be a capital losses from deemedtransfer.
* For the details regarding the computation of capital gains/losses from deemed transfer, please consult
your local tax office or your tax accountant, etc.

(3) Treatment of acquisition price (Article 114 (1) of the Order for Enforcement of the Income Tax Act)
Pursuant to the Japanese tax laws, the acquisition price of each investment unit will be adjusted.

The adjustment formula is indicated below. The ratio of net asset value attributable to a reduction
in capital will be “0.002.”

New acquisition
price per unit

=Previous acquisition= per unit
－priceRatio of net asset
value attributable to a
Previous acquisition－ per unit
× reduction×in capital
price(0.002)[Example] Where 10 MEL investment units were acquired at 325,000 yen per unit(a) Adjustment per unit = 325,000 yen × 0.002 (ratio of net asset value attributable to a reduction incapital) = 650 yen(b) New acquisition price per unit = 325,000 yen – 650 yen = 324,350 yen

(c) New acquisition price = 324,350 yen × 10 units = 3,243,500 yen* Acquisition price adjustment, etc. for unitholders with “specified accounts” at securities firms mayvary depending on the type of account utilized. Please confirm with your securities firm.
* Unitholders who are not using “specified accounts” at securities firms must make adjustments to theacquisition price using the above formula.

(4) Information for individual unitholders
Items prescribed in Article 114 (5) of the Order for Enforcementof the Income Tax Act

Notification

Ratio of net asset value attributable to a reduction in capital

0.002(ratio prescribed in Article 61 (2) (v) of the Order for(rounded up to the third decimal

Enforcement of the Income Tax Act concerning return of capital)

place)(5) Information for corporate unitholders
Items prescribed in Article 23 (4) of the Order for Enforcement ofthe Corporation Tax Act
Matters stipulated in Article 24 (1) of the Corporate Tax Act
which resulted in the delivery of monies or other assets
Applicable date

Notification

Return of capital
November 18, 2019

Total number of investment units outstanding on the reference
date for the return of capital
Deemed dividend per unit

245,815 units
0 yen per unit

Matters prescribed in Article 119-9 (2) of the Order for
Enforcement of the Corporation Tax Act

Notification
0.002

Ratio of net asset value attributable to a reduction in capital(rounded up to the third decimalplace)

Decrease in capital surplus due to return of capital

146,014,110 yen

3. Other Reference Information(1) Matters and procedures required for unitholders that differ from usual cash distributions (originatingfrom “retained earnings”) accompanying SCD (“Distribution from Unitholders’ Capital”) for this period.
Computation of “capital gains/losses from deemed transfer” will be necessary.

In principle, unitholders are required to calculate the “capital gains/losses from deemed transfer”

associated with “return of capital” for tax purposes. However, for unitholders who uses the specified
accounts (with the option to withhold tax on income at source selected) to hold their investment units,
the capital gains/losses from deemed transfer for the SCD received in proportion to the number ofshares held should be calculated automatically in these accounts. Please contact the relevant securities
firm, etc. for confirmation regarding the treatment above.
If the “capital gains from deemed transfer” arises:

In principle, final tax returns will need to be filed. However, a “capital gains from deemed transfer” will
only arise if the average acquisition price is below 297,000 yen with regard to the SCD (594 yen per unit)
for this period. However, unitholders who uses the specified accounts (with the option to withhold tax
on income at source selected) to hold their investment units may not be required to file the final tax
returns when recognizing “capital gains from deemed transfer” for the SCD received in proportion to thenumber of shares held in these accounts. Please contact the relevant securities firm, etc. forconfirmation regarding the treatment above.
If the “capital losses from deemed transfer” is realized and the losses is to be offset against otherrevenue or to be carried over to forthcoming periods:

Final tax returns will need to be filed. However, if the “capital gains/losses from deemed transfer” iscomputed within a specified account of the same securities firm, etc., final tax returns may not need tobe filed, since the capital gains and losses are aggregated within the specified account.
“Adjustments to the acquisition price” will be necessary.

Please contact the relevant securities firm, etc. for confirmation.
If the “capital gains from deemed transfer” is realized for special tax exempted accounts:

The individual unitholders who use the special tax exempt accounts under the Tax Exemption for Small
Investments in Listed Shares (NISA or Junior NISA) to manage their investment units may be allowed forthe tax exempt treatment when recognizing the capital gains from deemed transfer for the SCD.
However, it should be noted that in principle any capital losses from deemed transfer are not recognizedin such special tax exempted accounts. Please contact the relevant securities firm, etc. for confirmation
regarding the details on the above.

(2) Disclaimer
This document outlines matters regarding the tax treatment of SCD for this period and matters thatshould be notified to unitholders based on provisions of the Japanese tax laws. However, thecircumstances will differ for each individual unitholder depending on their particular circumstances. It istherefore the information outlined in this document is not exhaustive.
If you have any questions, please contact the relevant party indicated in “4. Inquiries” below.
Please preserve this document as it may be useful in providing support for the “acquisition price” in theevent the investment units are sold in the future.
This notice will also be posted on our website: https://mel-reit.co.jp/en/

4. Inquiries(1) Inquiries regarding this document
Unitholder Register Administrator:
Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Division
Telephone: 0120-232-711 (toll-free number) (Japanese only)
Operating hours: 9:00 to 17:00 (except Saturdays, Sundays and holidays)(2) Specific inquiries regarding adjustment of acquisition price
Please consult the relevant securities firm, your local tax office or tax accountant, etc.

(3) Inquiries regarding tax filing, etc.
Please consult your local tax office or tax accountant, etc.