Summary of Financial Results for the Fiscal Period Ended August 31, 2018 (REIT)
Name of Issuer:

October 15, 2018

Stock Exchange Listing:

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

Securities Code:3481

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

Representative:

Masaki Sakagawa, Executive Director

Asset Management Company:
Representative:
Inquiries:

Mitsubishi Jisho Investment Advisors, Inc.
Akinori Nakajo, President & CEO
Masaki Sakagawa, Senior Executive Director, General Manager, Logistics REITManagement Department
Tel. 81-3-3218-0030

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

November 28, 2018
November 19, 2018

Supplementary Materials for Financial Results:
Investors and Analysts Meeting:Yes
Yes(Values are rounded to the nearest million yen)

1. Financial Results for the Fiscal Period Ended Aug. 31, 2018 (4th Fiscal Period) (from Mar. 1, 2018 to Aug. 31, 2018)(1) Operating Results(Percentages indicate change from the previous period)

Operating revenues%
Fiscal period ended Millions of yen
Aug. 31, 2018
2,186
7.1
Feb. 28, 2018
2,042
964.2

Operating income
Millions of yen%
1,053(15.3)
1,243-

Ordinary income
Millions of yen
%
1,003
(6.6)
1,074
-

Net income
Millions of yen
1,002
1,073

%
(6.6)
-

Return on unitholders’
Ratio of ordinary income Ratio of ordinary income
equityto total assets
to operating revenues
Yen
%
%
%
Fiscal period ended
Aug. 31, 2018
4,684
1.8
1.3
45.9
Feb. 28, 2018
5,389
3.8
2.5
52.6
Note: MEL issued 198,000 new investment units on Sept. 13, 2017 and 8,000 new investment units on Oct. 10, 2017. Net income perunit in the fiscal period ended Feb. 28, 2018 is calculated by the daily weighted average number of investment units (199,149
units).
Net income per unit

(2) Distributions
Distributions Total amount ofDistributions Total amount
Total amount
per unit
per unit of distributions
Ratio ofdistributions Surplus cashof surplus
Payout(excluding(including
distributions(excluding distributions(including
cash
ratio
per unit
to net assets
surplus cash surplus cash
surplus cash surplus cash
distributions
distributions) distributions)distributions) distributions)
Yen Millions of yen
Yen Millions of yen
Yen Millions of yen
Fiscal period ended
%
%
4,685
1,002
607
129
5,292
1,132
Aug. 31, 2018
100.0
1.8
Feb. 28, 2018
5,015
120
1,073
565
5,580
1,194
100.0
2.0
Notes:
1. Total amount of surplus cash distributions are the refund of investment, which falls under the distributions through reduction inunitholders’ capital under taxation law.
2. The ratio of net asset value attributable to a reduction in unitholders’ paid-in capital for the fiscal periods ended Feb. 28, 2018 andAug. 31, 2018, is 0.003 and 0.003, respectively. The payment of surplus cash distributions is deemed a return of capital. This
calculation methodology is pursuant to Article 23, Paragraph 1, Item 3 of the Act on Special Measures Concerning Taxation.
3. With the issuance of new investment units conducted in the fiscal period ended Feb. 28, 2018, the payout ratio is calculated using
the following formula.
Payout ratio = Total amount of distributions (excluding surplus cash distributions)/Net income ×100

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(3) Financial Position
Total assets

Net assets

Millions of yen
75,453
78,112Millions of yen
54,56754,758Cash flows fromoperating activities
Millions of yen
4,118
(468)

Cash flows frominvesting activities
Millions of yen(80)(65,163)

Fiscal period ended
Aug. 31, 2018
Feb. 28, 2018

Unitholders’ equity tototal assets

%
72.3
70.1

Net assets per unit
Yen
254,986
255,882(4) Cash Flows
Fiscal period ended
Aug. 31, 2018
Feb. 28, 2018

Cash flows from
Cash and cash equivalents
financing activities
Millions of yen
Millions of yen
4,397(3,807)
4,166
69,043

2. Forecasts for the Fiscal Periods Ending Feb. 28, 2019 (Sept. 1, 2018 to Feb. 28, 2019) and Aug. 31, 2019 (from Mar.
1, 2019 to Aug. 31, 2019) and the Fiscal Period(Percentages indicate change from the previous period)
Operating revenues Operating income Ordinary income

Fiscal period ending Millions ofyenFeb. 28, 2019
2,488
Aug. 31, 2019
2,529

% Millions of
yen
1,261
13.8
1.7
1,264

% Millions of
%
yen
19.7
1,159 15.6
0.2
1,193 2.9

Distributions
Distributions
per unit
Net income
per unit(including(excluding
SCD)
SCD)
Yen
Yen
Millions of %yen
1,158 15.6
5,445
4,714
4,850
1,192 2.9
5,445

SCD

(Reference) Forecasted net income per unit for fiscal period ending Feb. 28, 2019: 4,714 yen
Forecasted net income per unit for the fiscal period ending Aug. 31, 2019: 4,850 yen*Other(1) Changes in accounting policies, accounting estimates, or restatements(a) Changes in accounting policies due to revisions to accounting standards and other regulations:None(b) Changes in accounting policies due to other reasons:None(c) Changes in accounting estimates:
None(d) Restatements:
None(2) Total number of investment units issued and outstanding(a) Total number of units issued and outstanding at the end of the fiscal period (including treasury units)
As of Aug. 31, 2018
214,000 units
As of Feb. 28, 2018
214,000 units(ii) Number of treasury units at the end of the fiscal period
As of Aug. 31, 2018
0 units
As of Feb. 28, 2018
0 units*Implementation Status of Statutory Audit
At the time of this financial report, the audit procedures for the financial statements pursuant to the Financial
Instruments and Exchange Act have not been completed.
*Explanation on the Appropriate Use of the Forecast of Financial Results and Other Matters of Special Consideration
The forward-looking statements in this material are based on information currently available to us and on certain
assumptions that we believe are reasonable. Actual operating performance may differ substantially due tovarious factors. Furthermore, those statements shall not be deemed a guarantee or any commitment of theamount of future distributions and surplus cash distributions. Please refer to “Forecast Assumptions for the Fiscal
Periods Ending Feb. 28, 2019 and Aug. 31, 2019” on page 3 for assumptions regarding forward-looking
statements.
Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

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Yen
731
595

Forecast Assumptions for the Fiscal Periods Ending Feb. 28, 2019 and Aug. 31, 2019
Items
Accounting
PeriodAssets Under
Management

Operating
Revenues

OperatingExpensesNon-operating
ExpensesAssumption
 Fiscal period ending Feb. 28, 2019 (5th fiscal period): From Sept. 1, 2018 to Feb. 28, 2019 (181 days)
 Fiscal period ending Aug. 31, 2019 (6th fiscal period): From Mar. 1, 2019 to Aug. 31, 2019 (184 days)
 It is assumed that in addition to its 8 properties (the “current properties”) owned by MEL as ofAug. 31, 2018, MEL has acquired the real estate trust beneficiary interests in two new properties(the “two new properties”) on Sept. 3, 2018. It is assumed that there will be no change in theoperational status of the properties held after the acquisitions on Sept. 3, 2018, up until Aug. 31,
2019. Changes include acquisitions of new properties and dispositions of existing properties.
 The actual results may change due to the acquisition of new properties in addition to the two newproperties or the disposition of existing properties, etc.
 Operating rental revenues take into account factors such as market trends and thecompetitiveness, etc. of each property based on information provided by the current owner of thetwo new properties and operating results for the current properties held by Mitsubishi Jisho
Investment Advisors, Inc., (the “Asset Manager”).
 It is assumed tenants will pay rents without delinquency or withholding.
 The forecasts of operating revenues are made on the assumption that there will be no profit orloss from sale of real estate.
 Main items regarding operating expenses are as follows:(Millions of yen)
Fiscal Period Ending
Fiscal Period Ending
Feb. 28, 2019
Aug. 31, 2019
Total Operating Rental Expenses
943
950
Facility Management Fee
59
58
Utilities Cost
98
96
Repair and Maintenance32
32
Property Taxes
185
220
Depreciation
485
488
Total General and Administrative
283
315
Expenses
Asset Management Fee
188
209
Sponsor Support Fee
41
41 Of operating rental expenses, which is the main operating expense, expenses except depreciation
are calculated by taking into account variable factors based on historical data provided by thecurrent owner etc. in the case of the two new properties and historical data after acquisition in thecase of the current properties.
 Depreciation is calculated using the straight-line method and assumed to be 485 million yen and488 million yen for the fiscal periods ending Feb. 28, 2019 and Aug. 31, 2019, respectively.
 Operating rental income (excluding profit from sale of real estate) after deducting operating rental
expenses (including depreciation) is assumed to be 1,545 million yen and 1,579 million yen for the
fiscal periods ending Feb. 28, 2019 and Aug. 31, 2019, respectively.
 Property tax and city planning tax is assumed to be 185 million yen and 220 million yen for the
fiscal periods ending Feb. 28, 2019 and Aug. 31, 2019, respectively. Property tax and city planningtax are generally included in the purchase price of properties on a pro-rated basis of a calendar
year and start to be expensed from the next calendar year. Accordingly, property tax and city
planning tax for the two new properties will be expensed starting from the fiscal period ending
Aug. 31, 2019.
 Building repair and maintenance is assumed to be 32 million yen and 32 million yen for the fiscal
periods ending Feb. 28, 2019 and Aug. 31, 2019, respectively. However, repair and maintenancemay differ substantially from the anticipated amount due to unexpected factors.
 For the fiscal period ending Feb. 28, 2019, it is assumed that 101 million yen will be incurred as
non-operating expenses which includes 65 million yen for interest expenses and other debtrelated costs, 6 million yen as amortization of organization expenses and 29 million yen in relation
to the offerings of the new investment units.
 For the fiscal period ending Aug. 31, 2019, it is assumed that 71 million yen will be incurred as nonoperating expenses which includes 65 million yen for interest expenses and other debt-related
costs and 6 million yen as amortization of organization expenses.

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Interestbearing Debt

Investment
Units

Distributions
Per Unit(excluding
surplus cash
distributions)Surplus CashDistributions
Per Unit The balance of MEL’s interest-bearing debt on an accounting basis as of today is 23,924 million yen
and 23,924 million yen for the fiscal period ending Feb. 28, 2019 and Aug. 31, 2019, respectively.
 LTV at the end of the fiscal periods ending Feb. 28, 2019 and Aug. 31, 2019 is estimated to be
27.1% and 27.1%, respectively. For LTV calculation, please refer to the following formula. The
ratios are rounded to the first decimal place:
LTV(%) = interest-bearing debt / total assets×100 (%)
 However, the actual LTV may differ considerably from this assumption, depending on the final
number of investment units to be issued and the final issue amount.
 It is assumed that the number of investment units currently issued and outstanding will not change
up until Aug. 31, 2019. Currently, there are 245,815 units issued and outstanding.
 Distributions per unit (excluding surplus cash distributions) and surplus cash distributions per unit
for the fiscal periods ending Feb. 28, 2019 and Aug. 31, 2019 are calculated on the basis of the
expected number of investment units issued and outstanding at the end of the fiscal periods ending
Feb. 28, 2019 and Aug. 31, 2019 of 245,815 units.
 Distributions per unit (excluding surplus cash distributions) are calculated based on the premise of
the distribution policy in the Articles of Incorporation of MEL.
 Distributions per unit (excluding surplus cash distributions) may change due to various factors
including any additional acquisitions or dispositions of properties, changes in rent revenues
attributable to tenant moves, changes in the property management environment including
unexpected repair etc.
 Surplus cash distributions per unit are calculated based on the premises of the fund distribution
policy in the Articles of Incorporation of MEL. It is assumed that the surplus cash distributions(including on an ongoing and one-time basis) in the fiscal period ending Feb. 28, 2019 is assumed to
be 179 million yen. For the fiscal period ending Feb. 28, 2019, the amount of distributions per unit
(excluding surplus cash distributions) is expected to temporarily decrease due to a temporary
decline in operating revenues from leasing. It is therefore assumed that 145 million yen as ongoingsurplus cash distributions (an amount equivalent to 30.0% of depreciation of the period) and 34
million yen as surplus cash distributions on a one-time basis (an amount equivalent to 7.0% ofdepreciation of the period) will be distributed for the purpose of equalizing the amount of
distributions per unit (including surplus cash distributions). In addition, it is assumed that the
surplus cash distributions (surplus cash distributions on an ongoing basis) in the fiscal period ending
Aug. 31, 2019, will be equal to 30% of depreciation expenses for the fiscal period, which is assumed
to be 146 million yen. These are the refunds of investment categorized as a distribution from inunitholders’ capital for tax purposes and there are no refunds from a distribution of the allowancefor temporary difference adjustments.
 The amount of depreciation expenses may change depending on the amount of total assets undermanagement, ancillary costs, capital expenditure, the allocation method of purchase prices foreach asset and depreciable life, etc. Surplus cash distributions, which will be based on the amountof depreciation expenses, may change accordingly.
 There may be cases where MEL implements distribution of cash in surplus of the distributableamount to investors on the basis of financial statements related to cash distribution approved
under the Act on Investment Trusts and Investment Corporations (Act No. 198 of June 4, 1951, as
amended) if the board of directors of MEL deems such distribution to be appropriate (1) in light ofthe economic environment, real estate market, lease market or other trends; (2) when the amountof income fails to meet the amount equivalent to 90% of distributable income; (3) when the
distribution amount fails to meet the requirements for the Special Provisions for Taxation on
Investment Corporations; or (4) in other ways to maximize the interest of investors. When MEL
implements distribution of cash in surplus of the distributable amount, it limits the amount to thetotal of the amount of income for the operating period in question and the amount stipulated
under laws and ordinances (inclusive of the rules of the Investment Trusts Association, Japan).
 For the time being, MEL intends to target a level of surplus cash distributions on an ongoing basis
at an amount equivalent to approximately 30% of the depreciation expense for the relevant fiscal
period. Furthermore, to maintain the stability of MEL’s distributions per unit in the event that an
amount of distributions per unit temporarily decreases due to a series of financing actions such as
the issuance of new investment units (including investment unit third-party allotment) or large
scale repair and maintenance, which may result in a temporary dilution of investment units or
incurrence of large expenses, MEL may make distributions as one-time surplus cash distributions.
However, MEL may decide not to make any surplus cash distributions for a fiscal period based on aconsideration of factors such as economic or real estate market conditions and MEL’s, financial
condition or the amount of anticipated profitability, which includes capital gains arising from- 4-

Others

property dispositions.
 In addition, in the event that MEL needs to allocate its cash to emergency capital expenditures forunexpected damages on MEL’s assets, etc., surplus cash distributions per unit may be reduced. MEL
does not plan to pay surplus cash distributions from the perspective of continuing stable financial
management, in case such payment would cause the Appraisal LTV (Note), as defined below, toexceed 60%.
(Note) Appraisal LTV (%) = A /B (%)
A = Total interest bearing liabilities on the balance sheet for the fiscal period related to theoperating period in question (excluding tax loan) + Reversal from security deposit reserves(excluding cases where security deposits are refunded according to leasing agreements withtenants)
B = Total assets on the balance sheet for the fiscal period related to the operating period inquestion – Book value after depreciation of real estate held in the fiscal period in question +Total appraisal value of real estate held in the fiscal period in question – Total cash distributions
to be paid in the next operating period – Total surplus cash distributions to be paid in the next
operating period
 It is assumed that no any revision that will have an impact on the forecast information above will
be made with regard to the laws and regulations, tax system, accounting standards, listing rules of
the Tokyo Stock Exchange and rules of the Investment Trusts Association, Japan, etc.
 It is assumed that no unexpected material change will arise in overall economic trends and realestate market conditions, etc.

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

Category

Beneficiary right intrust

Logistic facility

RegionTokyo metropolitan area (Note 2)
Kansai area (Note 3)
Others
Total
Deposit and other assets
Total assets (Note 3)

Fourth fiscal period (As of Aug. 31, 2018)
Retained amount
Ratio of total assets(Millions of yen)(%)
(Note 1)
52,965
70.2
6,102
8.1
11,863
15.7
70,931
94.0
4,521
6.0
75,453100.0

Fourth fiscal period (As of Aug. 31, 2018)
Amount (Millions of yen)
Ratio of total asset) (%)
20,88654,56775,453

Total liabilities (Note 4)(Note 5)
27.7
Total net assets (Note 4)
72.3
Total assets (Note 4)
100.0
Notes:
1.
The retained amount is the amount allocated in the balance sheet (the book value after depreciation) at the end of thereporting fiscal period (as of Aug. 31, 2018).
2.
Tokyo metropolitan area refers to Tokyo, Kanagawa, Chiba and Saitama prefectures.
3.
Kansai area refers to Osaka, Hyogo Kyoto, Nara and Shiga prefectures.
4.
Total liabilities, total net assets and total assets is the amount allocated in the balance sheet at the end of the reporting fiscal
period (as of Aug. 31, 2018).
5.
Total liabilities include the tenant leasehold and security deposits.

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

Property name
Logicross Fukuoka Hisayama

Logistic
facility

Location

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

Hisayama-machi
Kasuya-gun, Fukuoka

5,770

8.1

5,769

6,070

Sept. 14,2017

21,36430.1

21,40322,800

Sept. 14,2017

18,20025.7

18,244

18,720

Sept. 14,2017

LOGIPORT Sagamihara(Note 5)

Sagamihara-shi,

LOGIPORT Hashimoto(Note 6)

Sagamihara-shi,

MJ Logi Park Atsugi 1

Atsugi-shi, Kanagawa

6,653

9.4

6,673

6,860

MJ Logi Park Funabashi 1

Funabashi-shi, Chiba

5,400

7.6

5,365

6,280

MJ Logi Park Kazo 1

Kazo-shi, Saitama

1,272

1.8

1,279

1,370

MJ Logi Park Osaka 1

Osaka-shi, Osaka

6,090

8.6

6,102

6,500

6,130

8.6

6,094

6,380

MJ Logi Park Fukuoka 1

Kanagawa
Kanagawa

Umi-machi,
Kasuya-gun, Fukuoka

Sept. 14,2017
Sept. 29,2016
Sept. 14,2017
Sept. 14,2017
Sept. 14,
2017

Total
70,879100.0
70,931
74,980Notes:
1.
“Acquisition price” represents the purchase price of each property or beneficiary right in trust as set forth on the relevantpurchase agreement and does not include expenses such as consumption taxes, and is rounded down to nearest million yen.
2.
“Investment ratio” is calculated by dividing the acquisition price for each property by the total acquisition price and is rounded
to second decimal place. Thus the sum of the figures in total may not add up to the figure in the total column.
3.
"Appraisal value as of the end of the reporting fiscal period” represents the appraisal value as set forth on the relevant study
reports by real estate appraisers as of Aug. 31, 2018. Please refer to the below-mentioned ”(4) Overview of Appraisal Reports
as of Aug. 31, 2018”.
4.
“Acquisition date” represents the acquisition date in the relevant sale and purchase agreement.
5.
“Acquisition price” and “Appraisal value” of LOGIPORT Sagamihara is shown with the values corresponding to the quasi coownership interests ratios (49%).
6.
“Acquisition price” and “Appraisal value” of LOGIPORT Hashimoto is shown with the values corresponding to the quasi coownership interests ratios (45%).

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

Logistic
Facility

Property nameLand area(㎡)(Note 1)

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

Year built(Note 4)

Logicross Fukuoka Hisayama

18,136.89

36,082.08

34,878.55

34,878.55

Oct. 2014

LOGIPORT Sagamihara (Note 5)

94,197.27

200,252.53

88,609.64

88,376.62

Aug. 2013

LOGIPORT Hashimoto (Note 6)

67,746.26

145,809.59

58,537.69

58,537.69

Jan. 2015

MJ Logi Park Atsugi 1

19,780.93

27,836.15

28,002.44

28,002.44

Jul. 2013

MJ Logi Park Funabashi 1

7,481.00

18,262.08

18,232.07

18,232.07

Nov. 1989

MJ Logi Park Kazo 1

7,621.09

7,602.06

7,678.10

7,678.10

Mar. 2006

MJ Logi Park Osaka 1

13,028.81

39,157.61

39,082.95

39,082.95

Sept. 2007

MJ Logi Park Fukuoka 1

20,297.84

39,797.96

38,143.21

38,143.21

Sept. 2007

Total

248,290.09

514,800.06

313,164.65

312,931.63-

Notes:
1. “Land area” and “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the mainbuilding and annex. If there is more than one main building, the total floor area is the sum of the total floor area for each mainbuilding.
2. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Aug. 31, 2018, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to thenearest square meter. It does not include the leased area indicated in the lease agreements concerning shops, vending
machines, photovoltaic power generation facilities and parking lots.
3. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Aug. 31, 2018,
based on the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicatedin the lease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
4. “Year built” is the date of construction of the building in the register. If there is more than one main building, the oldest dateshown in the register.
5. “Total leasable area” and “Total leased area” of LOGIPORT Sagamihara is shown with the values corresponding to the quasi coownership interests ratios (49%).
6. 6. “Total leasable area” and “Total leased area” of LOGIPORT Hashimoto is shown with the values corresponding to the quasi
co-ownership interests ratios (45%).

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

Category

Logistic
Facility

Property nameSecurity
Average leasedeposit term / Average
Annual rent
Name of major(Millions of (Millions of remaining leasetenant (Note 5)yen)yen) (Note 6)
term (Years)(Note 7)(Note 8, 9)Not
Not
Mitsubishi Estate
3.6
2
disclosed
disclosed
Co., Ltd.
(2.4)(Note 12)(Note 12)

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

Logicross Fukuoka
Hisayama

34,878.55

34,878.55

100.0

LOGIPORT Sagamihara(Note 10)88,609.64

88,376.62

99.7

17 S･V･D Co., Ltd.

1,260

297

7.4
(3.7)

LOGIPORT Hashimoto(Note 11)58,537.69

58,537.69

100.0

14

KDDI
Corporation

922

225

6.0
(3.4)

MJ Logi Park Atsugi 1

28,002.44

28,002.44

100.0

1

Sun Toshi
Tatemono K.K.

MJ Logi Park Funabashi 1

18,232.07

18,232.07

100.0

1 Fuji Echo Co., Ltd.

MJ Logi Park Kazo 1

7,678.10

7,678.10

100.0

1

MJ Logi Park Osaka 1

39,082.95

39,082.95

100.0

1 Sankyu Inc.

Not
disclosed(Note 12)
Not
disclosed(Note 12)
Not
disclosed(Note 12)
Not
disclosed(Note 12)

Not
disclosed(Note 12)
Not
disclosed(Note 12)
Not
disclosed(Note 12)
Not
disclosed(Note 12)

Not
disclosed(Note 12)
Not
disclosed(Note 12)
Not
disclosed(Note 12)
Not
disclosed(Note 12)

MJ Logi Park Fukuoka 1

38,143.21

38,143.21

100.0

5

Fukuoka Logistics
Systems Corp.

392

179

3.0
(0.9)

Total (Average)

313,164.65

312,931.63

99.9

42

-

4,129

1,204

6.9
(3.3)

Kanda Holdings
Co., Ltd.

Notes:
1. “Total leasable area” equals to the gross leasable space in each property or property in trust as of Aug. 31, 2018, based on leaseagreements and floor plans included in lease agreements, plus available space based on floor plans, rounded down to thenearest square meter. It does not include the leased area indicated in the lease agreements concerning shops, vending
machines, photovoltaic power generation facilities and parking lots.
2. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Aug. 31, 2018,
based on the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicatedin the lease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. “Occupancy” is as of Aug. 31, 2018, calculated by dividing total leased area for each property by the total leasable area. The
total occupancy rate is calculated by dividing the aggregate total leased area for the relevant properties by the aggregate total
leasable area for the relevant properties. Figures are rounded to the first decimal place.
4. “Number of tenants” is based on the lease agreements with tenants for each property or property in trust as of Aug. 31, 2018.
However, if one lessee enters into a multiple number of lease agreements for the same property, the total number of tenants
will be calculated on the assumption that such lessee is one party.
5. “Name of major tenant” is the name of the tenant with the largest leased floor area in the relevant lease agreement for each
property or property in trust as of Aug. 31, 2018.
6. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Aug. 31, 2018.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Aug. 31, 2018, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Aug. 2018 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofAug. 31, 2018 shall not be included.
7. “Security deposits” represent the sum of the outstanding amounts of leasehold/security deposits (the sum of the outstanding
amounts of leasehold/security deposits if a multiple number of lease agreements have been executed), rounded down to thenearest million yen, indicated in the subject lease agreement as of Aug. 31, 2018. However, if there are different provisions forthe sum of outstanding leasehold/security deposits depending on the time period in each lease agreement for each property or
property in trust, the amount of tenant leasehold/security deposits for Aug. 2018 shown in said lease agreement is indicated.
8. “Average lease term” is calculated as the weighted average lease term indicated in the relevant lease agreements for each
property or property in trust as of Aug. 31, 2018, by the rent and figures are rounded to the first decimal place.

- 8-

9.

“Average remaining lease term” is calculated as the weighted average remaining lease term indicated in the relevant leaseagreements for each property or property in trust as of Aug. 31, 2018, by the rent and figures are rounded to the first decimal
place.
10. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Sagamihara is shown with thevalues corresponding to the quasi co-ownership interests ratios (49%).
11. “Total leasable area”, “Total leased area”, “Annual rent” and “Security deposits” of LOGIPORT Hashimoto is shown with thevalues corresponding to the quasi co-ownership interests ratios (45%).
12. We have not obtained permission from the tenant of the properties to disclose the information unstated in this table.

- 9-(4) Overview of Appraisal Report as of Aug. 31, 2018

Category

Property nameAppraiser

Logicross Fukuoka
Tanizawa Sogo
Appraisal Co., Ltd.
Hisayama
LOGIPORTDAIWA REAL ESTATE
Sagamihara (Note 3) APPRAISAL Corporation
LOGIPORT
Japan Real Estate
Hashimoto (Note 4) Institute
MJ Logi Park
Japan Real Estate
Institute
Logistic Atsugi 1
Facility MJ Logi Park
Japan Real Estate
Institute
Funabashi 1
MJ Logi Park
Japan Real Estate
Institute
Kazo 1
MJ Logi Park
Tanizawa Sogo
Appraisal Co., Ltd.
Osaka 1
MJ Logi Park
Japan Real Estate
InstituteFukuoka 1
Total

Return priceIntegrated
Direct capitalization
DCF methodvaluemethodAppraisal
Appraisal
based on Value based
NOI Yield
value
Value based
cost
on direct(%)(Millions ofon DCF
Terminal
Directmethod capitalization
Discountyen)capitalization (Note 1)
capitalization method(Millionsrate (%)
methodrate (%)(Millions ofrate (%)
of yen) (Millions of
yen)
yen)
4.7, 4.9
6,070
6,010
6,080
4.8
6,070
5.0
5.2
(Note 5)22,80016,40022,7004.3

22,800

4.1

4.5

4.7

18,72015,25518,9904.2

18,450

4.0

4.4

4.4

6,860

6,400

6,970

4.4

6,740

4.2

4.6

4.7

6,280

2,930

6,310

5.1

6,240

4.3

5.5

6.5

1,370

1,250

1,390

5.1

1,340

4.9

5.4

5.7

6,500

5,960

6,540

4.5

6,480

4.6

4.7

5.0

6,380

4,410

6,440

4.8

6,310

4.6

5.0

5.3

74,98058,61575,420-74,430--4.9

Notes:
1. “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of each
property in each real estate appraisal report, rounded to the first decimal place.
2. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Sagamihara is shown with the values corresponding to the quasi co-ownership interests ratios (49%).
3. “Appraisal value”, “Integrated value based on cost method”, “Value based on direct capitalization method” and “Value based on
DCF method” of LOGIPORT Hashimoto is shown with the values corresponding to the quasi co-ownership interests ratios (45%).
4. The discount rate for Logicross Fukuoka Hisayama is assessed first to third year as 4.7% and fourth and thereafter as 4.9%(5) Information regarding Major Real Estate Properties
The following summarizes the properties where “annual rent” represents 10% or more of the total portfolio annual
rent as of Aug. 31, 2018.
Property name
LOGIPORT Sagamihara (Note 3)
LOGIPORT Hashimoto (Note 4)
Total

Annual rent (Millions of yen)
(Note 1)
1,260
922
2,182

Percentage of rent(%) (Note 2)
30.5
22.3
52.8

Notes:
1. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Aug. 31, 2018.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Aug. 31, 2018, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Aug. 2018 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofAug. 31, 2018 shall not be included.
2. “Percentage of rent” is the ratio of that property’s total annual rent to the total portfolio annual rent, rounded to the firstdecimal place.
3. “Annual rent” of LOGIPORT Sagamihara is shown with the values corresponding to the quasi co-ownership interests ratios (49%).
4. “Annual rent” of LOGIPORT Hashimoto is shown with the values corresponding to the quasi co-ownership interests ratios (45%).

- 10-

(6) Information regarding Major Tenants
The following summarizes the major tenant where “leased area” represents 10% or more of the total portfolio leased
area as of Aug. 31, 2018.

Tenant Name

Type of industry(Note 1)

Property nameSankyu Inc.

Deliverytransportationindustry

MJ Logi Park Osaka 1

Total

Lease
Leased Percentage
Annual rent
Percentage
area (㎡) of area (%) expiration(Millions ofof rent (%)
date(Note 3)(Note 2)
yen)
Not
Not
Not
disclosed 39,082.95
12.5 disclosed
disclosed(Note 4)(Note 4)(Note 4)Not
Not－
disclosed
disclosed 39,082.95
12.5(Note 4)(Note 4)

Notes:
1. ”Type of industry” refers to either the report from the TOKYO SHOKO RESEARCH, LTD. or the industry based on Ministry ofInternal Affairs and Communications Japan Standard Industry Classification.
2. “Total leased area” equals to the gross floor area of leased space in each property or property in trust as of Aug. 31, 2018,
based on the lease agreements and floor plans included in the lease agreements. It does not include the leased area indicatedin the lease agreements concerning shops, vending machines, photovoltaic power generation facilities and parking lots.
3. Percentage of area refers to the floor area leased to end tenant as a proportion of total leased area. Figures are rounded to thefirst decimal place.
4. We have not obtained permission from the tenant of the properties to disclose the information unstated in this table.

(7) Property Distribution(i) Distribution by category
Number ofproperties

Category
Logistic facility
Others
Total

Acquisition price (Millions of yen)
(Note)
8
8

Ratio (%)
70,879－70,879

100.0
－
100.0

Note: “Acquisition price” represents the purchase price of each property or beneficiary right in trust as set forth on the relevantpurchase agreement and does not include expenses such as consumption taxes, and is rounded down to nearest million yen.

(ii) Distribution by region

RegionTokyo metropolitan area (Note 3)
Kansai area (Note 4)
Others
Total

Number ofproperties

Total floor area(㎡)
(Note 1)

Ratio (%)

5
1
2
8

399,762.41
39,157.61
75,880.04
514,800.06

77.7
7.6
14.7
100.0

Acquisition
price(Millions ofyen)
52,8896,090
11,90070,879Investment
ratio (%)
(Note 2)
74.6
8.6
16.8
100.0

Notes:
1. “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the main building andannex. If there is more than one main building, the total floor area is the sum of the total floor area for each main building.
2. Figures are rounded to the first decimal place.
3. Tokyo metropolitan area refers to Tokyo, Kanagawa, Chiba and Saitama prefectures.
4. Kansai area refers to Osaka, Hyogo, Kyoto, Nara and Shiga prefectures.

- 11-

(iii) Distribution by property age
Property age(Note 1)

2

Total floor area(㎡)
(Note 2)
181,891.67

2
4
8

Number ofproperties

5 years or lessMore than 5 years and 10
years or lessOver 10 years
Total

35.3

Investment
ratio (%)
(Note 3)
23,97033.8

228,088.68

44.3

28,017

39.5

104,819.71
514,800.06

20.4
100.0

18,89270,87926.7
100.0

Ratio (%)

Acquisition price(Millions of yen)

Notes:
1. “Property age” is calculated based on the date recorded in the register up to Aug. 31, 2018.
2. “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the main building andannex. If there is more than one main building, the total floor area is the sum of the total floor area for each main building.
3. Figures are rounded to the first decimal place.

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

Number ofproperties
1
2
5
8

Total floor area
Investment
Acquisition priceratio (%)(㎡)
Ratio (%)
(Millions of yen)
(Note 2)
(Note 1)
7,602.06
1.5
1,272
1.8
46,098.23
9.0
12,05317.0
461,099.77
89.6
57,55481.2
514,800.06
100.0
70,879100.0

Notes:
1. “Total floor area” are the lot area recorded in the register. “Total floor area” is the total floor area of the main building andannex. If there is more than one main building, the total floor area is the sum of the total floor area for each main building.
2. Figures are rounded to the first decimal place.

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

Annual rent
(Millions of yen) (Note 2)
1,745
40
1,089
1,254
4,129

Ratio (%)
42.3
1.0
26.4
30.4
100.0

Notes:
1. “Lease term” is calculated as the weighted average lease term indicated in the relevant lease agreements for each property or
property in trust as of Aug. 31, 2018, by the rent and figures are rounded to the first decimal place. It does not include theleased area indicated in the lease agreements concerning shops, vending machines, photovoltaic power generation facilities
and parking lots.
2. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Aug. 31, 2018.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Aug. 31, 2018, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Aug. 2018 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofAug. 31, 2018 shall not be included.
3. LOGIPORT Sagamihara is shown with the values corresponding to the quasi co-ownership interests ratios (49%), and LOGIPORT
Hashimoto is shown with the values corresponding to the quasi co-ownership interests ratios (45%).

- 12-

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

Annual rent
(Millions of yen) (Note 2)
397
1,060
430
1,061
1,178
4,129

Ratio (%)
9.6
25.7
10.4
25.7
28.5
100.0

Notes:
1. “Remaining lease term” is calculated as the weighted average remaining lease term indicated in the relevant lease agreements
for each property or property in trust as of Aug. 31, 2018, by the rent and figures are rounded to the first decimal place. It does
not include the leased area indicated in the lease agreements concerning shops, vending machines, photovoltaic power
generation facilities and parking lots.
2. “Annual rent” represents the annualized amount of rent (the sum of annualized amounts of rent if a multiple number of leaseagreements have been executed), which is 12 times monthly rent (including common area expenses), rounded down to thenearest million yen, indicated in the relevant lease agreement for each property or property in trust as of Aug. 31, 2018.
However, if there are different provisions for monthly rent (including common area expenses) depending on the time period ineach lease agreement for each property or property in trust as of Aug. 31, 2018, the annualized amount of rent will becalculated based on the monthly rent (including common area expenses) for Aug. 2018 shown in said lease agreement. The
rent-free periods and annual rent holiday periods (meaning that the payment of rents for specific months is exempted) as ofAug. 31, 2018 shall not be included.
3. LOGIPORT Sagamihara is shown with the values corresponding to the quasi co-ownership interests ratios (49%), and LOGIPORT
Hashimoto is shown with the values corresponding to the quasi co-ownership interests ratios (45%).

(8) Details of collateral
Not applicable(9) Capital expenditure for owned properties
1. Future plans for capital expenditure
The following summarizes the major capital expenditure plans in connection with scheduled renovations and otherwork for properties owned by MEL. Estimated construction cost includes the amounts to be expensed foraccounting purposes
Estimate construction cost
(Millions of yen) (Note)
Property namePurposePlanned period(Loacation)
Paid during the Total amount
Total amountreporting period already paid
MJ Logi Park Kazo 1
Renewal work of LED From Nov. 201816
(Kazo-shi, Saitama)lighting
to Dec. 2018
Note: Figures are rounded down to the nearest million yen.

2. Capital expenditure incurred for the reporting fiscal period
MEL conducted construction work worth 99 million yen in the reporting fiscal period which is a sum of capital
expenditures of 69 million yen and repair and maintenance expenses of 30 million yen.
3. Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
First fiscal period

Second fiscal period

Third fiscal period

Fourth fiscal period

July 14, 2016 toFeb. 28, 2017

Mar. 1, 2017 toAug. 31, 2017

Sept. 1, 2017 toFeb. 28, 2018

Mar. 1, 2018 toAug. 31, 2018

31,581 thousand yen

52,635 thousand yen

123,369 thousand yen

21,054 thousand yen

70,734 thousand yen

54,174 thousand yen

-

-

-

52,635 thousand yen 123,369 thousand yen

177,543 thousand yen

Reserved balance at the
beginning of the period
Reserved amount during
31,581 thousand yen
the period
Reversal of reserved
amount during the period
Reserved balance at the
31,581 thousand yen
end of the period- 13-

(10) Overview of property leasing and status of operating income
Fourth fiscal period from Mar. 1, 2018, to Aug. 31, 2018
(Units: Thousands of yen)
Property name

Logicross
Fukuoka Hisayama

LOGIPORT
Sagamihara

LOGIPORT
Hashimoto

MJ Logi Park
Atsugi 1

MJ Logi Park
Funabashi 1

Operating days

184 days

184 days

184 days

184 days

184 days

Not disclosed

Not disclosed(Note)(Note)(A) Property related revenues

672,207

500,171

Property revenues

609,089

461,410

Other property related
revenues

63,117

38,760(B) Property related expenses

278,592

190,274

37,54624,97458,434

43,834980

712

Repair and maintenance

13,556

2,890

Utilities cost

42,744

26,589

Facility management fee
Property taxes
Non-life insurance
premium

Not disclosed(Note)

Custodian fee

61

56

Other expenses

9,319

1,272

43,684

115,948

89,94433,26944,423113,944393,615

309,896

117,725

135,324

157,628

509,563

399,841

150,994

179,747(C) Depreciation(D) Property related income(A-B)(E) NOI (D+C)

Property name

MJ Logi Park
Kazo 1

MJ Logi Park
Osaka 1

MJ Logi Park
Fukuoka 1

Operating days

184 days

184 days

184 days(A) Property related revenues

Total

214,947

2,186,855

Property revenues

196,456

2,043,691

Other property related
revenues

18,490143,164(B) Property related expenses

106,075

860,255

8,438

87,64914,180185,803

422

3,547

Repair and maintenance

5,708

30,163

Utilities cost

18,050104,285

Custodian fee

240

1,382

Other expenses

217

14,404

Facility management fee
Property taxes
Non-life insurance
premium

Not disclosed(Note)

Not disclosed(Note)(C) NOI(=A-B)

9,879

37,05358,817433,019(D) Depreciation

25,978121,242

108,872

1,326,599(E) Operating income from35,858158,295
167,689
1,759,619
property leasing (=C-D)
Note: We have not obtained permission from the tenants of the properties to disclose the information and therefore it has been omitted
from this table.

- 14-