Security Code：3481

Mitsubishi Estate Logistics REIT
Investment Corporation
Investor Presentation Material
April 18, 2018

Asset Management Company:
https://mel-reit.co.jp/en/

Table of Contents
Financial Results for 3rd fiscal Period

42.

Growth Strategy

7

3.

Logistics Market Overview

19

4.

Appendix23

1.

(September 1, 2017 to February 28, 2018)

1

IPO Highlights
 MEL listed on September 14, 2017, with 8 properties at 70.8 bn yen
IPO summary
Asset managementcompany

SponsorMarket response
Mitsubishi Jisho Investment Advisors,
Inc. (MJIA)
Mitsubishi Estate Company, Limited (MEC)

Launch dateAugust 7, 2017

Listing date

September 14, 2017

Number of investment
units offered

206,000 units

Number of investment
units issued andoutstanding

214,000 units

Issue price

260,000 yen

Total amount paid in

51,685 mn yen

Portfolio“Nikkei Veritas Deal of the Year 2017”
Best IPO
1st Prize“Capital Eye Best Deals of 2017”
Real Estate Investment Trust Securities Division
Best Deals of 20178 properties / 70.8 bn yen

2

Features of Mitsubishi Estate Logistics REIT (MEL)
Stable growth strategy using the strengths of “Developer × Real Estate Asset Management Company” in“HYBRID” styleDepending on the changes in market environment and the phases of business cycle, blending each strengths andspecial expertise of both companies will be creatively used while also having the capability to combine the strengths,
in order to steadily expand the asset size and to realize stable management, for the ultimate purpose of maximizing
the unitholder value.

Sponsor

Asset Management Company

Has dedicated to city development in the Marunouchiarea(Tokyo) for over 120 years

Overview Contributing to the society through a variety of businessactivities as a comprehensive real estate developerPromoting the logistics facility business as a growth areaConstant supply of pipeline properties as the sponsor
through its business of developing and managing advanced
types of logistics facilities

Support

Utilization of MEC group’s know-how and corporate
customer relations in the leasing business

Property type (based on acquisition price)
Investment
policyOverview

Support

Established in 2001, when the scheme of real estate
securitization was emerging in Japan

Its track record includes structuring and managing various typesof real estate funds, including the largest private REIT in JapanProven track records in a variety of asset types in investment andasset management

Unique property sourcing capacity with discerning judgement

Flexible acquisition strategy using a wide range of schemes, including
bridge fundsCompetitive real estate fund management capability backed by adiverse deal track record

Investment area (based on acquisition price)

Logistics facilities

Other(note)Tokyo metropolitan area

Other area

80% or more

20% or less

50% or more

50% or less(note) Other means industrial facilities such as plants, R&D facilities and data centers.

3

１．Financial Results for 3rd fiscal Period(September 1, 2017 to February 28, 2018)4

3rd FP (ended Feb. 28, 2018) Financial Results
Operating Results（mn yen）

As of Oct. 13, 2017
3rd FP Forecast (A)

3rd FP Actual (B)Difference（B）－（A）

2,018

2,042

23

Operating Revenues from Leasing

2,018

2,042

23

Operating Expenses from Leasing(excluding depreciation)

197

219

21

1,821

1,822

1

404

403

－1

1,416

1,419

3

177

175

－1

Operating Income

1,238

1,243

5

Ordinary Income

1,031

1,074

42

Net Income

1,030

1,073

43

Operating Revenue

NOI
Depreciation
NOI after Depreciation
Other Operating Expenses

Distribution Per Unit (yen)
5,580

199

4,814

5,015

201

567

565

－2

214,000

214,000

0

27.6％

27.6％

0.0%

NAV Per Unit－

266,775－

Investment Unit Price (As of Feb. 28, 2018)－269,300

－

P/NAV

－

1.01

－

98.5%

99.5%

1.0%

Distribution Per Unit (excluding SCD)
Surplus Cash Distributions (SCD)
Number of investment units issued andoutstanding (units)

Other Statistics
LTV (%)

Period-end Occupancy Rate (%)

Operating revenues (＋23)（unit：mn yen）

・ Increase in reimbursable utilities income (＋12)
・ Increase in operating revenue from leasing due
to the improvement occupancy rate (＋10)
Operating expenses (＋18)

5,381

Distribution Per Unit (including SCD)

Main factors of difference・ Increase in utilities expenses (＋9)
・ Increasing in leasing fees (＋8)
Non-operating profit and loss (+37)
・ Decrease in investment unit issuance expenses(-26)
・ Decrease in interest expenses (-10)

54th FP(ending Aug. 31, 2018) and5th FP(ending Feb. 28, 2019) Financial Forecasts
Operating Results（mn yen）

3rd FP
Actual（A）

4th FP
Forecast（B）(Reference)
5th FP
Forecast

Difference（B）－（A）

2,042

2,171

128

2,136

Operating Revenues from Leasing

2,042

2,171

128

2,136

Operating expenses from Leasing(excluding depreciation)

219

417

197

428

1,822

1,754

－68

1,708

403

432

29

434

1,419

1,321

－98

1,273

175

268

92

257

Operating Income

1,243

1,052

－191

1,008

Ordinary Income

1,074

994

－79

950

Net Income

1,073

993

－79

949

Operating Revenue

NOI
Depreciation
NOI after Depreciation
Other Operating Expenses

Distribution Per Unit (yen)Distribution Per Unit (including SCD)
Distribution Per Unit (excluding SCD)
Surplus Cash Distributions (SCD)
Number of investment Units Issued andOutstanding (units)

5,580

5,249

－331

5,249

5,015

4,643

－372

4,438

565

606

41

811

214,000

214,0000

214,000

27.6%

25.1%

－2.5%

25.2%

NAV Per Unit

266,775－－－

Investment Unit Price (As of Feb. 28, 2018)269,300

－

－

－

1.01

－

－

－

99.5%

99.9%

0.4%

99.9%

P/NAV
Period-end Occupancy Rate (%)

Operating revenues (＋128)（unit：mn yen）

・ Increase in operating revenues from leasing due
to full-period operation (+114)
Operating expenses (＋319)
・ Property tax fully expensed on the 7 assets
acquired in 2017 (＋178)
・ Increase in total general and administrative
expenses (＋92)
Non-operating profit and loss (＋111)
・ Decrease in investment unit issuance expenses(-117)

Other Statistics
LTV (%)

Main factors of difference

6２．Growth Strategy

7

Portfolio Overview
Portfolio list (As of February 28, 2018)
Location

Acquisition price(million yen)

Total floor
space (㎡)

Appraisal
NOI
yield(%)

Occupancy
rate(%)

Buildingage (years)

Logicross Fukuoka Hisayama

Kasuya, Fukuoka

5,770

36,082

5.2

100.0

3.3

Multi

Managed by MJIALOGIPORT Sagamihara(Beneficiary interest 49%)

Sagamihara, Kanagawa

21,364200,252（98,123）

4.7

98.1

4.5

Multi

Managed by MJIALOGIPORT Hashimoto(Beneficiary interest 45%)

Sagamihara, Kanagawa

18,200145,809（65,614）

4.4

100.0

3.1

Multi

Managed by MJIA

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

27,836

4.7

100.0

4.6

Multi

Managed by MJIA

MJ Logipark Funabashi 1

Funabashi, Chiba

5,400

18,262

6.5

100.0

28.2

Multi

Source of acquisition

Developed by
MEC

Sourced by
MJIA

Property nameManaged by MJIA

MJ Logipark Kazo 1

Kazo, Saitama

1,272

7,602

5.7

100.0

12.0

Multi

Managed by MJIA

MJ Logipark Osaka 1

Osaka, Osaka

6,090

39,157

5.0

100.0

10.4

Multi

Managed by MJIA

MJ Logipark Fukuoka 1

Kasuya, Fukuoka

6,130

39,797

5.3

100.0

10.4

Multi

70,879514,800(332,475)

4.9

99.5

7.0

−

Total / Average(note)

Property
type

Figures in parentheses of “LOGIPORT Sagamihara” and “LOGIPORT Hashimoto” are calculated in proportion to the co-ownership interest of trust beneficiary rights in each property owned by the Investment Corporation (49% and45%, respectively). Figures in parentheses in “Total / Average” are the sum of total floor area of each property owned taking into account the co-ownership interest of trust beneficiary rights of each property. Each figure is rounded to
the first decimal place.

Portfolio summary
Number of properties

8

Total appraisal value

74.7bn yen
Total acquisition price

Logicross Fukuoka Hisayama

LOGIPORT Sagamihara

LOGIPORT Hashimoto

MJ Logipark Atsugi 1

MJ Logipark Funabashi 1

MJ Logipark Kazo 1

MJ Logipark Osaka 1

MJ Logipark Fukuoka 1

70.8bn yen
Appraisal NOI Yield

4.9%

8

Portfolio Map

Developed by MEC group
Sourced by MJIA
Head office and branches of MEC

9

Mid-to-long Term Growth Strategy

Asset

Utilization of two growth engines
Developed by MEC
Properties
with preferential
negotiation rights

10 properties
825 thousand ㎡

Sourced by MJIA
Properties
with preferential
negotiation rights

3 properties
181 thousand ㎡

Debt

Flexible property acquisition
using debt capacity

LTV

25.1%

40% ~ 50%

4th FP (Forecast)Stabilized level

EquityStable DPU Growth
Aim for inclusion into global index
by expanding market cap.
DPU
5,249 yen

AUM
70.8 bn yen

200.0 bn yen

IPO

In 4-5 years

4th FP (Forecast)

StableGrowthMarket cap
57.6 bn yen

Expansion

3rd FP

Aim to increase AUM to 200 billion yen in 4 to 5 years mainly by sponsor pipelines

10External Growth Strategy (1)-Pipeline Capability to develop logistics facilities independently based on extensive land information
 Capability to co-develop facilities backed by MEC’s development ability and credibility

Properties with preferential negotiation rightFiscal year ofcompletion

Property nameLocation

Total floor space

Development

Logicross Atsugi

Completed2016

Atsugi, Kanagawa

29 thousand ㎡

Independently

Logicross Kobe Sanda

Completed2017

Kobe, Hyogo

14 thousand ㎡

Independently

LOGIPORT Osaka Taisho

Completed2017

Osaka, Osaka

122 thousand ㎡

Joint

Logicross Narashino

Completed2017

Narashino, Chiba

39 thousand ㎡

Independently

Osaka Nishi-yodogawa Logistic Facility Center

2018

Osaka, Osaka

38 thousand ㎡

Joint

Logicross Nagoya Kasadera

2018

Nagoya, Aichi

80 thousand ㎡

Independently

Tentative name: Logicross Yokohama Kohoku

2019

Yokohama, Kanagawa

16 thousand ㎡

Independently

LOGIPORT Kawasaki Bay

2019

Kawasaki, Kanagawa

296 thousand ㎡

Joint

Tentative name: Logicross Atsugi Ⅱ

2019

Atsugi, Kanagawa

34 thousand ㎡

Independently

Ibaraki, Osaka

31 thousand ㎡/
125 thousand ㎡

Joint

Tentative name: Plan of Moegi Logistic Facility(note)

2020 / 2021

There may be cases where MEL is not granted the preferential negotiation right based on the sponsor support agreement, such as cases where consent for the grant of the preferential negotiation right or thesale has not been obtained from co-owners, quasi-co-owners or joint business partners, if there are any such parties.

 Capability to assess properties backed by experience in continuously acquiring properties from 2001
 Flexible and diversified property acquisition strategy by leveraging the capability to manage real estate funds

Properties with the preferential negotiation right through bridge fund scheme(note1)
Property nameType

Date of acquiring the bridge funds

Total floor space

IHI Group Sakai Factory (Land)

Land of Factory

March 201787 thousand ㎡(note2)

MJ Logipark Kasaugai 1

Logistics facility

March 2017

58 thousand ㎡

MJ Logipark Sendai 1

Logistics facility

June 201736 thousand ㎡(note1) Fund Scheme means a method to acquire properties from development funds to which MJIA provides investment advisory services, a flexible method to acquire properties, etc. by utilizing bridge funds depending on
the capital market environment and the timing of property acquisition.
(note2) The data for IHI Group Sakai Factory (Land) shows that of “site area”.

11External Growth Strategy (2)-MEC’s Logistics Facilities Business
Track record of logistics facilities development by MEC (including properties under planning)(thousand ㎡)
1,500

Total floor space of properties developed by MEC (at completion)(note) Including space of properties sold by MEC and co-owned by other companies

1,000

500

0
FY2012
2012年度FY20132013年度FY20142014年度FY20152015年度FY20162016年度FY20172017年度Mid-term management plan FY2018 - 2020

Lifestyle Property Business
Build strong platform for the industrial property business
Utilize client and partner networks together with solution
planning capabilities to develop quality products including“Logicross” branded properties
Full cooperation with
Tokyo Ryutsu Center (TRC), consolidated subsidiary, tomaximize the asset value
Sponsorship of asset pipeline to the REIT which istargeting to go public

FY20192019年度FY2020~2020年度以降(Forecast)（予定）(Forecast)（予定）(Forecast)（予定）

Key Point No.2：

Key Point No.1：
Realization of profit as a result of reinforced income stream during previous mid-term

Accelerate fee business modelthrough capital recycling

FY20182018年度Initiate business model innovation by capturing the momentum of changes in businessenvironment as new opportunities in order to achieve further growth in 2020’s

Completion of landmark projects(with concentration in Marunouchi area)
will contribute to operating cash flow

Fee business modelthrough capital recycling

Site acquisition/
development

Operation /property
management

Industrial
propertybusinessplatform

Expansion and advancementof overseas business

Investment Management
Aim for the sustainable growthof business by accommodating cross-border investment
demand through the expansion of investment management
platform in Japan, US, Europe and Asia.

Asset
management

12External Growth Strategy (3)-Properties Developed by MEC (1)Logicross AtsugiThe site has good access to Ken-O Expressway, Tomei Expressway and National
Route 129. It is an ideal area for logistics hubs as a delivery hub to the entire Tokyo
metropolitan area including major consumption areas in central Tokyo, connecting
the Tokyo metropolitan area to the Kansai and Tokai areas .
The facility is approx. 20-minute walk from Aiko-Ishida Station on the Odakyu
Odawara Line, and is located along a regular bus route. Therefore its location issuitable for securing necessary workforce.
The facility has received DBJ Green Building Certification.

Location

AccessAtsugi, Kanagawa

0.9km from Atsuginishi IC of Odawara Atsugi Road
2.5km from Atsugi IC of Tomei Expressway

Logicross Kobe SandaThe area is quite close to Kobe-Sanda Interchange on Chugoku Expressway and Rokko Kita Toll Road.
Access convenience is expected to be further improved following the opening of New Meishin
Expressway.
The site’s proximity to a residential area gives it advantage in securing necessary workforce.
The facility was constructed as a build-to-suit logistics facility dedicated to “Sato,” a tenant occupying
the facility, and functions as an integrated logistics base consisting of “PC (processing and distribution
center of fresh fish, dressed meat and cooked meals),” “DC (inventory distribution center of shelf-stableproducts)” and “TC (transfer center of fresh products, daily delivery goods and shelf-stable products)”.

Location

Kobe, Hyogo

Access2.0km from Kobe-Sanda IC of Chugoku Expressway / Rokko
Kita toll road

Completion dateMar. 23, 2017

Completion dateJun. 19, 2017

Total floor space

Approx. 29,900m2

Total floor space

14,464.67m2

Land area

14,782m2

Land area

20,000.93m2

Contractor

KONOIKE CONSTRUCTION

Contractor

Shimizu Corporation

Number of tenant

１(MITAKA SOKO)

Number of tenant１(SATO)13

External Growth Strategy (4)-Properties Developed by MEC (2)Logicross NarashinoThe site has good access to National Route 357, Metropolitan Expressway Bay Shore Route,Higashi-Kanto Expressway and Keiyo Road, and it is an ideal area for logistics hubs as adelivery hub to cover the entire Tokyo metropolitan area such as major consumption areas incentral Tokyo.
The facility is approx. 5-minute walk from Shin-Narashino Station on the JR Keiyo Line,making it advantageous in securing necessary workforce.
The facility has received DBJ Green Building Certification.

Location

Narashino, Chiba

Access5-minute walk from Shin-Narashino Station on the JR Keiyo
Line

Completion dateMar. 30, 2018

Total floor space

Approx. 39,100m2

Land area

Approx. 19,300m2

Contractor

KONOIKE CONSTRUCTION

Number of tenant

１(Japan Realest)

Press release issued by MEC (March 30, 2018)

Completed Logicross Narashino upon the conclusion of the agreement on the lease of the entire building

Entrusted building management and operation services to TRC, founded more than 50 years ago

Further utilize expertise in management developed by Mitsubishi Jisho Group

1.6km from Yatsufunabashi IC of Higashi-Kanto Expressway



Determined the plan to develop Logicross Atsugi II (tentative name)

Expected to develop 14 buildings of total floor area of 1.2 million ㎡ (including completed and planned
projects)



Aim to develop two to four buildings per year mainly in the Tokyo metropolitan, Chukyo and Kansai areas

14

Internal Growth Strategy (1)－Management StructureManagement utilizing MEC Group’s business foundation

Maintainandimprove By using MJIA’s know-how accumulated through composing funds of awide range of asset types and managing private REITs since its
foundation in 2001, MEL aims to maximize property value andimplement stable and steady management

asset value

Utilization of MJIA’s
expertise By entrusting the tenant relation support (TRS) business to the sponsor
and maximizing its commitment to leasing, MEL aims to maintain andimprove the portfolio revenue over the mid-to-long-term

17-year track record ofproviding services to one of
the largest private REITs in For tenant leasing activities for its assets, MEL will build a relationshipwith logistics business operators by using Mitsubishi Estate’s corporate
customer relationship built through office business, commercial facilities
business, etc. in the Marunouchi area in Tokyo through entrusting the
TRS business. In this manner, MEL aims to steadily achieve internal
growth by capturing the market needs

Japan and a number ofOptimize

private funds

costs

Maximize
revenue

TRS by MEC
Tenant relation

Periodically visit tenants and build a strong relationship to extend leasing period, understand their needs for floor increase andrelocation, match vacant lots, prevent leaving, etc.

Tenant recruitment

Soliciting tenant candidates, supporting tenant screening, mediating and negotiating moving in conditions and construction works,
etc.

Proposal of leasing policy

Manage leasing periods on all owned assets and offer strategies to replace tenants

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

Properties developed
by MEC

Properties sourced by
MJIA

Lease Agreement
Corporate
Customer
Relation

Lease Agreement
Logistics Company
Leasing Service Agreement

Cargo Owner

15

Internal Growth Strategy (2)－Tenant Leasing
Achievement of higher occupancy rate

Tenant diversification (As of February 28, 2018)12.5%

100.0%
99.5%

99.9%

99.9%

99.9%

99.9%

99.9%

99.5%

Sun Toshi Tatemono
53.8%

99.0%

8.6%

98.5%
98.5%

98.0%

(note)

Based on leased area

MITSUBISHI ESTATE
Fukuoka Logistics Systems
Company A

8.5%

98.5%

97.5%

SANKYU

9.0%

99.5%

Other

7.6%

Status of lease agreements

97.0%
Listing

Sep. 2017 Oct. 2017 Nov. 2017 Dec. 2017 Jan. 2018 Feb. 2018
3rd FP Actual

3rd FP Forecast

Average contract
periodRemaining lease
contract period

Fixed term lease

6.9 years

3.6 years

100%(As of Oct. 13, 2017)

Lease maturity periods(note)

As of February 28, 2018.

20.0%
17.8%

18.0%

Rent ratio

16.7%

16.0%

70,000

Leasing area

60,00050,000

14.0%
12.0%

8.0%

6.7%

6.0%

7.9%

9.9%

30,000

7.6%

7.2%

20,000

4.4%

4.0%
2.0%

40,000

10.9%

10.0%

2.3%
3.0%

3.0%

2.0%

10,000

0.5%
0

0.0%
3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP 23rd FP

16

Financial Strategy
LTV(Forecast) and capacity to acquire properties
4th FP (LTV: 25.1％)
Up to LTV of 40%

Approx. 1.8 bn yen

Up to LTV of 50%

Approx. 3.7 bn yen

Interest-bearing debt

(note)

Interest-bearing debt

Average remaining debt duration

Average borrowing rate

Approx. 21.5 bn yen

4.91 years

0.43%

As of February 28, 2018.

LenderRepayment schedule

6%

13%

49%

(mn yen)

MUFG Bank

6,000

Sumitomo Mitsui Banking

5,000

Mizuho Bank

4,000

Development Bank of Japan

14%

The Bank of Fukuoka(note)

As of April 16, 2018.

18%

Long-term interest-bearing debt 18,901 million yen

3,000
2,000
1,000
0

Credit rating

Short-term interest-bearing debt 2,618 million yen

4th 5th
4期
FP FP
5期

(note)

6thth 7th
66期
FP
FP FP
7期

th 14th 15th 16th 17th 18th 19th 20th 21th 22th 23th
8thth 9th 10thth11th 12th
th 13
th FP
th FP
th FP 20th FP
th FP
88期FP
10
FP 14
16
18
22
10期FP 12
12期
14期
16期
18期
20期
22期
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP
9期
11期
13期
15期
17期
19期
21期
23期

As of February 28, 2018.

Rating Agency

RatingRemarks

Japan Credit Rating Agency, Ltd.

Long-term issuer rating: AA-

Rating outlook: Stable

Cash management: Policy on utilization of depreciation expense
We expect to target the regular surplus cash distributions (SCD) on an ongoing basis at an amountequivalent to approximately 30% of the depreciation expense for the relevant fiscal period.
17Commitments by Management～Adaptation to Environmental Change～“It is not the strongest of the species that survives,
nor the most intelligent that survives.

It is the one that is most adaptable to change.”
Charles Robert Darwin (Feb. 12, 1809 – Apr. 19, 1882)

Pursuit of “HYBRID” style that is adaptable to change through“Developer × Real estate asset management company” style～Two Commitments～

Mitsubishi Jisho Investment Advisors, Inc.
Masaki Sakagawa, Senior Executive Director

DPU

Aim for stable DPU growthby adopting to the changes in the business environment

AUM

Aim to increase AUM to 200 billion yen in 4-5 years
and to 300 billion yen over the mid-to-long-term

18

３．Logistics Market Overview

19

Logistics Market Overview (1)E-commerce market size(100 bn yen)160

３PL market size(100 bn yen)

Eコマース売上高
Net sales of E-commerce

30

140

Retail market size(100 bn yen)

Net sales of 3PL operators

Department store

Supermarket

Convenience store

E-commerce

160
140

25

120

120
20

100

100

15

80
60

80
60

10

40

40
5

20

0

0
2006年
2006

(note)

2008年
2008

2010年
2010

2012年
2012

2014年
2014

2016年
2016

Data aggregated by CBRE K.K. based on “Basic Conditions (ECommerce Market Survey) of Data-Driven Society in 2016”(April 2017) issued by the Ministry of Economy, Trade andIndustry(Source) CBRE K.K.

20

2006

2008

2010

2012

2014
2016
(fiscal year)(note1) Data aggregated by CBRE K.K. based on “LOGI-BIZ (September
2016)(note2) The fiscal period is from April 1 to March 31 of the following year,
which is not the same as the Investment Corporation’s fiscal
period

0

2000

2002

2004

2006

2008

2010

2012

2014

(note)

Data aggregated by CBRE K.K. based on “Current Survey of2016

Commerce” (June 2017) and “Basic Conditions (E-CommerceMarket Survey) of Data-Driven Society in 2016” (April 2017)
issued by the Ministry of Economy, Trade and Industry(Source) CBRE K.K.

(Source) CBRE K.K.

20

Logistics Market Overview (2)Supply-demand balance and vacancy rate in Tokyo metropolitan area
（thousand ㎡）
2,500

10%

Forecast

9%
2,000

8%
7%

1,500

6%
5%

1,000

4%
3%

500

2%
1%

0

0%
2005

2006

2007

2008

New supply

2009

New demand

2010

2011

2012

2013

Vacancy rate(right axis)

2014

2015

2016

2017

2018

2019

Vacancy rate(1 year after built)(right axis)(note1) In the above figure, “Tokyo metropolitan area” refers to Tokyo, Kanagawa, Chiba, and Saitama.
(note2) New supply refers to “total leasable floor area of newly constructed leasable logistics facilities” and new demand refers to “change in occupied floor area.” Change in occupied floor area is calculated by subtracting tenant withdrawal
floor area from floor area under new agreements.
(note3) Based on data for leasable logistics facilities with 5,000m2 or more of gross floor area owned by real estate investment company, real estate developer, etc. Excluding leasable logistics facilities owned by logistics company, andtherefore not covering all logistics facilities for lease having a gross floor area of 5,000m2 or more.
(Source) CBRE K.K.

21

Logistics Market Overview (3)Supply-demand balance and vacancy rate in Kinki region（thousand ㎡）
1,400

16%

Forecast

14%

1,200

12%

1,000

10%
800
8%
600
6%
400

4%

200

2%

0

0%
2005

2006

2007

2008

New supply

2009

New demand

2010

2011

2012

2013

Vacancy rate(right axis)

2014

2015

2016

2017

2018

2019

Vacancy rate(1 year after built)(right axis)(note1) In the above figure, “Kinki region” refers to Osaka and Hyogo.
(note2) New supply refers to “total leasable floor area of newly constructed leasable logistics facilities” and new demand refers to “change in occupied floor area.” Change in occupied floor area is calculated by subtracting tenant withdrawal
floor area from floor area under new agreements.
(note3) Based on data for leasable logistics facilities with 5,000m2 or more of gross floor area owned by real estate investment company, real estate developer, etc. Excluding leasable logistics facilities owned by logistics company, andtherefore not covering all logistics facilities for lease having a gross floor area of 5,000m2 or more.
(Source) CBRE K.K.

22

４．Appendix

23Income Statement and Balance Sheet
Income Statement
Item
Operating revenue
Lease business revenue
Other lease business
Operating expenses（unit：thousand yen）
Actual（unit：thousand yen）
Item

2,042,440
1,923,172

Current assets

Actual6,730,832

Cash and deposits

1,500,868

119,267

Cash and deposits in trust

2,665,332

798,568

Other current assets

2,564,631

Expenses related to rent business

622,889

Asset management fee

107,897

Asset custody fee

Balance Sheet699

Non-current assets
Property and equipment

71,341,495
71,295,451

Intangible assets

9,626

Investments and other assets

36,417Administrative service fee

12,246

Director’s compensations

2,400

Deferred assets

Commission fee

42,054

Total assets

78,112,648

Other operating expenses

10,380Current liabilities

3,217,683

Operating income

1,243,871

Non-operating income

16

Operating accounts payable

Interest income

16

Short-term borrowings

40,31977,9452,618,000

Non-operating expenses

169,872

Accounts payable

8,926Interest expenses

36,083

Advances received

342,967

Borrowing related expenses

10,026

Other current liabilities

169,844

Investment unit issuance expenses

6,047

Offering costs associated with issuance of investment
Other

117,715-

Non-current liabilities

20,136,148

Long-term borrowings

18,901,000

Tenant leasehold and security deposits in trust

1,235,148

Ordinary income

1,074,015

Total liabilities

23,353,832

Profit before income taxes

1,074,015

Total unitholders’ equity

54,758,816

Profit (Net income)

1,073,410

Unitholders’ capital

53,685,400

Unappropriated retained earnings

1,073,416

Surplus1,073,416

Total net assets

54,758,816

Total liabilities and net assets

78,112,64824

Appraisal Value（unit：mn yen）
At acquisition

Property nameAcquisitiondate

Acquisition
priceBook value
at end of
3rd FP*Figure of MJ Logipark Funabashi 1
is end of 2nd FP

Appraisalvalue

Direct cap rate

3rd FP(Ended Feb. 28, 2018)

Fluctuation
Unrealized
gain

Appraisalvalue

Direct cap rate

Appraisal value

Direct cap rate

Logicross Fukuoka
Hisayama

Sep. 2017

5,770

5,812

5,970

4.9%

6,070

4.8%

100

-0.1%

257

LOGIPORT Sagamihara

Sep. 2017

21,364

21,51022,2004.4%

22,700

4.3%

500

-0.1%

1,189

LOGIPORT HashimotoSep. 201718,20018,32918,7204.2%

18,720

4.2%

0

0.0%

390

MJ Logipark Atsugi 1

Sep. 2017

6,653

6,706

6,860

4.4%

6,860

4.4%

0

0.0%

153

MJ Logipark Funabashi 1

Sep. 2016

5,400

5,363

6,240

5.1%

6,270

5.1%

30

0.0%

906

MJ Logipark Kazo 1

Sep. 2017

1,272

1,285

1,330

5.2%

1,360

5.1%

30

-0.1%

74

MJ Logipark Osaka 1

Sep. 2017

6,090

6,135

6,260

4.8%

6,360

4.6%

100

-0.2%

224

MJ Logipark Fukuoka 1

Sep. 2017

6,130

6,152

6,310

4.8%

6,360

4.8%

50

0.0%

207

－

70,87971,29573,890－74,700

－

810

－

3,404

Total

Net assets per unit

250,866 yen Unrealized gain per unit 15,909 yen

NAV per unit

266,775 yen
25

Financial Standing
Classification
Shortterm

Floating
rate

LenderBalance (million yen)

Borrowing rate

Drawdown date

Maturity date

Remarks

MUFG Bank, Ltd.

1,746

Base rate(JBA 3-month JPY
TIBOR)+0.0700%

Sep. 14, 2017

Sep. 14, 2018(note 1, 2)

Unsecured /Unguaranteed

2,618

-

-

-

-

MUFG Bank

2,600

Development Bank of
Japan

1,400

Base rate(JBA 3-month JPY
TIBOR)+0.1750%

Sep. 29, 2016

Sep. 29, 2019

Sumitomo Mitsui
Banking

Subtotal
Floating
rate

872

720

Mizuho Bank
Development Bank of
Japan

1,491

MUFG Bank

Longterm

430

Sumitomo Mitsui
Banking

2,050

MUFG Bank

1,760

Mizuho Bank

1,330

0.3263%

Sep. 14, 2021

0.3575%

Sep. 14, 2022

0.3913%

Sep. 14, 2023

Fixed rate The Bank of Fukuoka

450

The Bank of Fukuoka

900

0.4288%Sep. 14, 2024

MUFG Bank620

0.4675%

Sep. 14, 2025

MUFG Bank

710

0.5075%

Sep. 14, 2026

MUFG Bank

2,680
0.5500%Sep. 14, 2027

Sumitomo Mitsui
Baking880

Mizuho Bank

880

Unsecured /Unguaranteed

Sep. 14, 2017

Subtotal

18,901

-

-

-

-

Total

21,519----(note1) Since a refund of consumption tax for the fiscal period ending February 2018 is scheduled to take place during the fiscal period ending August 2018, MEL plans to repay short-term borrowings amounting to 2,618
million yen using such tax refund, etc. during the fiscal period ending August 2018.
(note2) As of April 16, 201826

Portfolio (1)Logicross Fukuoka Hisayama
Multi

Location

Kasuya, Fukuoka

Completion date

October 27, 2014

Total floor space

36,082.08m2

Land area

18,136.89m2

Leasable area

34,878.55m2

Acquisition price

5,770 million yen

Appraisal value

6,070 million yen

Appraisal NOI Yield

5.2%

Number of tenant

2

Developed by sponsor

First property of Logicross

Location Profile

Facility Profile

Around the site, many logistics facilities are concentrated for the freight handling within thewide metropolitan area centering on Fukuoka City, the largest consumption market in Kyushu.



Truck berths exist both on the first and the third floor. Trucks could directly climb up the slope roadto the third floor, which enables efficient freight handling.

This facility could function as a delivery hub to cover the entire Kyushu area centering on
northern Kyushu, by using the Kyushu Expressway.



The facility has received DBJ Green Building Certification. It proves to be quite eco-friendly.

Its traffic access is excellent: within 10km to Fukuoka Airport and the port area. Also, thevicinity of Fukuoka IC is an important crossing of many routes, where demands for logistics
facilities are concentrated.

27

Portfolio (2)LOGIPORT Sagamihara (beneficiary interest 49%)
Multi

Location

Sagamihara,
Kanagawa

Completion dateAug. 16, 2013

Total floor space

200,252.53m2

Land area

94,197.27m2

Leasable area

88,609.64m2

Acquisition price

21,364 million yen

Appraisal value

22,700 million yen

Appraisal NOI Yield

4.7%

Number of tenant

17

Developed by sponsor

LOGIPORT Hashimoto (beneficiary interest 45%)

Tokyo metropolitan area

Multi

Location Profile
The area surrounding the facilities hasover time been recognized as fitting fora logistics hub: the gateway to theTokyo metropolitan area for those whocome from western Japan. Therefore
high tenant demands can be expected.

The area is close to the Tomei
Expressway and the Chuo Expressway
via Ebina JCT and Hachioji JCT
respectively, ensuring easier accessfrom outside the Tokyo metropolitan
area.



Profile

The site is close to a dense residential area and is located along a regular bus route,making it an ideal location to secure necessary workforce.

The site directly faces National Route 129 which runs from north to south in thecenter of Kanagawa Pref.



In consideration of BCP, a quake-absorbing structure was adopted for the buildings,
and emergency power generators (capable of running for 72 hours) have beenequipped.
An advanced security system (working 24 hours and 365 days a year) was adopted
for the building.

Developed by sponsor

Tokyo metropolitan area

Location

Sagamihara,
Kanagawa

Completion dateJan. 9, 2015

Total floor space

145,809.59m2

Land area

67,746.26m2

Leasable area

58,537.70m2

Acquisition price

18,200 million yen

Appraisal value

18,720 million yen

Appraisal NOI Yield

4.4%

Number of tenant

12

Profile

The site is a walking distance from Hashimoto Station of JR Yokohama Line, JR Sagami Lineand Keio Sagamihara Line, as well as being close to a residential area. This location isadvantageous to secure necessary workforce for the facilities.



The site directly faces National Route 16, a major circular road of the Tokyo metropolitan
area.



In consideration of BCP, a quake-absorbing structure was adopted for the buildings, andemergency power generators (capable of running for 72 hours) have been equipped.

An advanced security system (working 24 hours and 365 days a year) was adopted for thebuilding.

28

Portfolio (3)MJ Logipark Atsugi 1
Multi

MJ Logipark Funabashi 1
Managed by MJIA

Tokyo metropolitan area

Multi

Location

Atsugi, Kanagawa

Location

Funabashi, Chiba

Completion dateJul. 12, 2013

Completion dateNov. 30, 1989

Total floor space

27,836.15m2

Total floor space

18,262.08m2

Land area

19,780.93m2

Land area

7,481.00m2

Leasable area

28,002.44m2

Leasable area

18,232.07m2

Acquisition price

6,653 million yen

Acquisition price5,400 million yen

Appraisal value

6,860 million yen

Appraisal value

6,270 million yen

Appraisal NOI Yield

4.7%

Appraisal NOI Yield

6.5%

Number of tenant

1

Number of tenant

1

Profile

It is located in the area between the center of the Tokyo metropolitan area and the
Chubu/Kinki regions, so the area could function as a gateway for those who are
visiting Tokyo from western Japan. This would ensure high business potential forthe facility as a logistics hub.



The site is also close from a dense residential area and is located along a regularbus route. So its location should be good at securing necessary workforce.



Its basic specifications include highly versatile functions, including with four freight
elevators and four vertical conveyors.

Managed by MJIA

Tokyo metropolitan area

Profile

Delivery to the center of Tokyo from the site takes approx. 1, enabling the site to meet highdemands for a logistics hub in suburban Tokyo.

Onsite animal quarantine services are available by dispatched quarantine officers near the site.
This could be an advantageous aspect of the facility for merchants of food and beverages.



It consists of a standard temperature space, a cold storage and a freezer. Demand for the freezer
and cold storage functions are expected to further increase.

29Portfolio (4)MJ Logipark Osaka 1
Multi

MJ Logipark Kazo 1
Managed by MJIA

Kinki area

Multi

Managed by MJIA

ProfileTokyo metropolitan area

Location

Osaka, Osaka

Completion date

Sep. 28, 2007

Total floor space

39,157.61m2

Land area

13,028.81m2

Leasable area

39,082.95m2

Acquisition price

6,090 million yen

Appraisal value

6,360 million yen

Appraisal NOI Yield

5.0%

Number of tenant

1

Location

Kazo, Saitama

Completion dateMar. 13, 2006

Total floor space

It is located in a corner of the Nanko area which houses the key functions
necessary for the Osaka Port. This place is one of the most competitive areas in the
Kinki region.
It is a walking distance from Port Town Nishi Station (closest station) and also very
close to a residential area, making the site advantageous in securing workforce.
The building has a north-faced, a south-faced and a west-faced truck berths: atotal of 36 truck berths. This large capacity enables rapid shipping and receiving of
freights.

(note)

This site would accommodate the pickup anddelivery needs to cover the entire Tokyo
metropolitan area, by using the Tohoku
Expressway and the Metropolitan Inter-City
Expressway.



Its basic specifications are versatile, enabling it tomeet a wide range of tenant needs.

Acquisition price

1,272 million yen

7,602.06m2

Appraisal value

1,360 million yen

Land area

7,621.09m2

Appraisal NOI Yield

5.7%

Leasable area

7,678.10m2

Number of tenant

1

MJ Logipark Fukuoka 1
MultiManaged by MJIA

ProfileProfile

It has easy access to the two major cities inFukuoka Pref. (Fukuoka City and Kita-KyushuCity) as well as to adjacent prefectures. Fukuoka
Airport is also within its coverage via Fukuoka IC,
which is a junction of the Fukuoka Urban
Expressway with the Kyushu Expressway.

This is a multi-tenant and rampway-equippedfacility: a rare type of property in Fukuoka Pref.
Five vertical conveyors could be installed for eachfloor in the building.

Location

Kasuya, Fukuoka

Completion date

Sep. 25, 2007

Acquisition price

6,130 million yen

Total floor space

39,797.96m2

Appraisal value

6,360 million yen

Land area

20,297.84m2

Appraisal NOI Yield

5.3%

Leasable area

38,143.21m2

Number of tenant

5

Number of tenant is as of February 28, 2018.

30

Portfolio Data
Area (based on acquisition price)

Convenience in traffic (based on acquisition price)
100% lying inland fromresidential area

16.8%

8.6%

34.3%

8.6%

Tokyo metropolitan area
Kinki area

35.5%

Other area

55.8%

65.7%

Distance from trunk road■Less than 1km■1km or more,
but less than 3km■3km or more,
but less than 5km

74.6%

Total floor area (based on acquisition price)

Distance fromnearest station■Less than 1.5km■1.5km or more,
but less than 3km

Property type (based on acquisition price)

1.8%■1 0 0 , 0 0 0㎡ or more
■5 0 , 0 0 0㎡ or more,

0%but less than 1 0 0 , 0 0 0㎡
■1 0 , 0 0 0㎡ or more,
but less than 5 0 , 0 0 0㎡
■Less than 1 0 , 0 0 0㎡

42.4%

55.8%

Multi tenant
100.0%

マルチ型
MultitenanttenantMulti
BTS型
Build to suits

100%

31

Tenant Diversification
Tenants of logistics facilities (based on leased area)

End users of logistics facilities (based on leased area)

Apparel
衣料品

Others
その他

Logistics
物流

27%

44.6%

3%

Others
その他
5%Electrical andelectronic
電気機器・電子機器
equipment
14.2%
FMCG
日用品
38.4%

Manufacturing
製造

Pharmaceuticals
医薬品

5.7%

14.8%
Retail小売
9.7%

Wholesale
卸売
13.2%

Food &
食品・飲料
Beverages
24.5%

32

Unit Price Performance(yen)(units)285,000

66,50040,00035,000280,000
30,000275,000

279,000 yen
As of Sep. 14, 2017

25,00020,000270,000

269,300 yen
As of Feb. 28, 2018

265,000

15,00010,000260,000
5,000

255,0000

2017/9/14

2017/10/11

2017/11/8
Volume(right axis)(source)2017/12/6

2018/1/3

2018/1/31

2018/2/28

Unit priceBloomberg

33

Unitholders Summary
Unitholder composition

Brake down by unitholders
1.2%

3rd FP (ending Feb. 28, 2018)
Number ofinvestors

Ratio

Number ofunits

10,96895.3％

51,897

24.3％

Financial institutions

135

1.2％

121,210

56.6％

Domestic entities

345

3.0％

20,061

9.4％

Foreign entities andindividuals

42

0.4％

18,090

8.5％

Securities Companies

17

0.1％

2,742

1.3％

11,507100.0％

214,000

100.0％(note)

As of February 28, 2018.

Major unitholders

0.1%

Domestic individuals and others
Financial institutions
Domestic entities
Foreign entities and individuals

95.3%

Securities Companies

Brake down by units
Number ofunits

Number of
total

Japan Trustee Services Bank, Ltd. (Trust Account)

26,09512.19％

Japan Master Trust Bank（Trust Account）

25,88812.09％

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

10,552

4.93％

Mitsubishi Estate Co., Ltd.

8,000

3.73％

NORTHERN TRUST CO． AVFC） RE COLONIAL FIRSTSTATE INVESTMENTS LIMITED

5,046

2.35％

The Hyakujushi Bank, Ltd

4,324

2.02％

The Chugoku Bank

3,826

1.78％

THE IYO BANK, Ltd.

3,652

1.70％

Nomura Trust Bank（Trust Account）

3,631

1.69％

JA-Bank SAGA

3,424

1.60％

94,43844.12％

Total

0.4%

Ratio

Domestic individuals
and others

Total

3.0%

8.5%

1.3%

9.4%
24.3%

Domestic individuals and others
Financial institutions
Domestic entities

56.6%

Foreign entities and individuals
Securities Companies

34

Governance Structure
Same-boat investment in MEL by MEC

Investment in MEL by MEC(note)

Approx.

3.7%

As of February 28, 2018.

Rules concerning the preferential negotiation right on acquisition
In addition to MEL, MJIA manages a private REIT and private funds, investing in offices, residences, commercial
facilities, etc. MEL has the preferential negotiation right on acquisition of its target logistics properties andindustrial properties.

Asset management fee structure consistent with the interests of unitholders
Assetmanagement
fee I

Total assets × 0.2% (maximum)

Asset
management
fee II

Adjusted NOI × 5.0% (maximum)

Asset
management
fee III

Adjusted pre-tax income × Pre-tax EPU × 0.001% (maximum)

35

Structure
Organization

Custodian,
Unitholder Register Administrator,and Administrative Agent (generaladministration)❶

Investment Corporation

Mitsubishi Estate Logistics REIT
Investment Corporation

Mitsubishi UFJ Trust and Banking
Corporation❷

Asset Management Company
Mitsubishi Jisho Investment
Advisors, Inc.

General Meeting of Unitholders❹

Board of Directors

Executive Director: Masaki Sakagawa
Supervisory Director: So Saito
Supervisory Director: Akira Fukano

Administrative Agent(accounting, etc.)

Heiseikaikeisha Tax Corporation❸

SponsorIndependent Auditor
Ernst & Young ShinNihon LLC❶ Asset custody agreement, transfer agency service agreement,
and general administrative agency service agreement❸ Accounting agreement

Mitsubishi Estate Co., Ltd.

❷ Asset management agreement❹ Sponsor support agreement,
trademark license agreement, etc.

36

Asset Management Company
Company overview
Trade name

Mitsubishi Jisho Investment Advisors, Inc.

Establishment

July 2001

Capitalization

150 million yen (As of April 18, 2018)

Shareholders

Mitsubishi Estate Co., Ltd. (MEC) 100%

Main lines ofbusiness

Investment management businessType II financial instruments business
Investment advisory and agency businessCorporate officers

Directors: 6
Auditors: 2
Financial product transactions:
Director-General of the Kanto Local Finance
Bureau Registration (FIBO) No. 1086

Registration andlicenses

Real estate transactions:
Governor of Tokyo License (4) No. 79933
Discretionary transaction agent, etc.:
Minister of Land, Infrastructure, Transport andTourism License No. 64

Organization
Meeting of Shareholders
Independent Auditors

Statutory Auditors
Board of Directors*Chaired by the Chairman

Chairman
Valuation Committee*Chaired by the President

Compliance & Risk
Management Committee*Chaired by the Chairman

PresidentInternal Audit Department

Executive Committee*Chaired by the President

Fund Investment Council
for Internal Reporting

Fund Management Council
for Internal Reporting*Chaired by the President

Transaction
Advisory
Department(note)

Private REITManagement
Department*Chaired by the president

Private FundManagement
Department

Logistics REITManagement
Department

Corporate
Planning
Department

ComplianceDepartment

Because of the lack of chairman, president also chairs “Board of Directors” and “Compliance & Risk Management Committee.”

37

MEMO

38

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 in any productoffered 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 estateappraisal 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 forward-looking
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, and involve known andunknown 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.