Security Code：3481

Fiscal Period Ended August 31, 2019
Asset Management Company:
https://mel-reit.co.jp/en/

October 18, 2019

Table of Contents
1. Overview of 2nd Follow-on Offering and New Acquisition

4

2. Financial Results and Forecasts

8

3. Growth Strategy

11

4. Mitsubishi Estate’s Logistics Facilities Business20

5. Appendix

24

1

Highlights and Updates from April 2019
Achieved AUM of over 100 bn yen through HYBRID external growth Acquired five properties for 30.5 bn yen through 2nd follow-on offering Achieved attractive 8.0% stabilized DPU growth and 3.5% NAV per unit growth

Increased DPU through HYBRID internal growth Maintained high occupancy of 99.9% and achieved rent growth for 3 consecutive periods
 Realized internal growth through unique measures over than rent revision

Further strengthened financial stability backed by high credibility
 Extended maturities and reduced debt cost through debt financing
 Added two new banks, The Shinkumi Federation Bank and The 77 Bank and diversified lenders

Initiatives for ESG
 Received “Green Star” in the 2019 GRESB Real Estate Assessment
 MEL was the only J-REIT to receive “4 Star” rating among the 6 J-REITs that participated for the first time

Financial Results for the Fiscal Period Ended Aug. 2019 (6th) Achieved stable DPU growth of 5,524 yen (+32 yen vs. forecast)2Management Policy Designed to Maximize Unitholders’ Value in Mid-to Long-term
Progress of Management Policy based on “Three Pillars”
Generalmeeting
held onMay 17th

Measures for Future Consideration
Series of Acquisitions

Introduced

Alignment
Align interest
with unitholders

Discipline
Disciplined
growthHybridEnhance MEL’s
unique strategythe Hybrid Model

Asset
management
fee fully
linked to unit
price
performance

Acquired
MJ Logipark
Tsuchiura 1

Propertyacquisition
utilizing LTV

Acquired
new properties

External
growth withattention toexisting
portfolio
yield and
implied cap
rate

Maintained
4% MEC
Investment

Received
GRESB“4 Star” Rating

Continualsame-boat
investmentby sponsor

Initiatives
for ESG;promotegreen
portfolio

Acquired
new properties

Introductionof cumulative
investment

Acquired
new properties

The entire Mitsubishi
Estate Group will work
together to improve
unitholder value

Flexiblefinancing
Flexible
propertyacquisition
throughutilizingbridge funds

Announced
new pipelines

Outsourcing
PM operation

Increase
pipelines
from sponsor

Enhancecollaboration
with Tokyo
RyutsuCenter (TRC)

Securedpipelines
through MJIA
sourcing3

1. Overview of 2nd Follow-on
Offering and New Acquisition

Overview of 2nd Follow-on Offering and 5 New Properties (1)Offering Summary

Overview of 5 new properties

Transaction

Domestic Public Offering(with Extraordinary Report)

Launch date

Sept. 19, 2019

Pricing date

Sept. 30, 2019

Issue price335,887 yen per unit

Total amount issued

20,153 mn yen

No. of Properties /Total Acquisition Price

Average Property Age

Average Occupancy

Average Appraisal NOI Yield/
Average Appraisal NOI Yield excluding Land

5 properties/30,568 mn yen
100.0%

5.0 years

Total Acquisition Price vs.
Total Appraisal Value

96.3%

4.7%/4.9%
Weighted Average
Lease Expiry

13.0 years

Sponsor-developed property

LOGIPORT Osaka Taisho (20% co-ownership interest)
Acquisition price

5,682 mn yen

Appraisal value

6,020 mn yen

Appraisal NOI yield

4.6%

Location
Total floor area
Main tenant

Osaka, Osaka
117,045m2
TOSHIBA LOGISTICSCORPORATION, others

Note： Data at the time of 2nd follow-on offering.

5Overview of 2nd Follow-on Offering and 5 New Properties (2)Asset Management Company (MJIA)-sourced properties
Improved
Pre-leased
Occupancy

MJ Logipark Kasugai 1
Acquisition priceAppraisal value
Appraisal NOI yield

13,670 mn yen
13,900 mn yen
4.8%

CRE

MJ Logipark Nishinomiya 1
Location
Total floor area
Main tenant

Kasugai, Aichi
58,236m2
KIMURA UNITY
Co., Ltd., others

Acquisition price

2,483 mn yen

Location

Appraisal value

2,630 mn yen

Total floor area

Appraisal NOI yield

5.7%

Main tenant

Nishinomiya, Hyogo
13,903m2
F-LINE Co., Ltd.

SponsorRelation

CRE

CRE

MJ Industrial Park Sakai (Land)
Acquisition priceAppraisal value
Appraisal NOI yield

5,600 mn yen
5,780 mn yen
3.8%

MJ Logipark Tsuchiura 1
Location

Sakai, Osaka

Site area

87,476m2

Main tenant

IHI Infrastructure
Systems Co., Ltd.

Acquisition price

3,133 mn yen

Location

Appraisal value

3,420 mn yen

Total floor area

Appraisal NOI yield

5.3%

Main tenant

Tsuchiura, Ibaraki
15,485m2
EntreX Incorporated

Note： Data at the time of 2nd follow-on offering.

6

Accretion and Effect through Offering and Acquisitions
Stabilized DPU

Asset Size

(yen)
（円）

6,000

+8.0%

5,933

(bn yen)（億円）

Property
tax expensed

5,800
5,600

+36.7%

113.7

Achieved over
100bn yen

100

83.2

5,492
80

5,400
5,200

120

Pre-Offering
2019年2月期（第5期）
2019/2 (5th FP)

Post-Offering
取得予定資産取得後
Forecasted 2020/8 (8th FP)

NAV per Unit

Pre-Acquisition
2019年2月期（第5期）
2019/2 (5th FP)

Post-Acquisitions
新規取得予定資産取得後(as of Oct. 9, 2019)（2019年10月9日）

LTV

(yen)
（円）

279,523

280,00060+3.5%

Pre-Offering
2019年8月期（第6期）
2019/2 (5th FP)

新規取得資産取得後
Post-Offering（2020年8月期末）
2020/8 (8th FP)

LTV

Forecasted LTV

27.0%

29.4%

275,000

270,016
270,000

265,000

260,000
Pre-Offering
2019年2月期（第5期）
2019/2 (5th FP)

Post-Offering(Forecast)
取得予定資産取得後（2020年8月期末）

Note： Data at the time of 2nd follow-on offering except for LTV which is calculated based on the borrowings obtained on Oct. 9, 20197

2.

Financial Results andForecasts

Financial Results for the Fiscal Period Ended August 2019
FP Ended Aug.
2019 Forecast(As of Apr. 15,2019)(6th FP)

FP Ended Feb.
2019 Actual(5th FP) (A)FP Ended Aug.
2019 Actual(6th FP) (B)

2,493

2,530

+36

2,532

Operating Rental Revenues

2,493

2,530

+36

2,532

Operating Rental Expenses(excluding depreciation)

455

472

+16

478

2,038

2,058

+20

2,053

Depreciation

484

487

+2

487

Operating Income

1,267

1,253

(13)

1,250

1,171

1,212

+41

1,205

1,170

1,211

+41

1,204

Operating Results（mn yen）
Operating Revenues

NOI

Ordinary Income
Net Income

Difference(B)－(A)

Main Factors of Variance
5th FP Actual vs. 6th FP Actual

数値は要確認《Operating Revenues》 (+36 mn yen)
• No temporary decrease in rental revenues+32 mn yen• 2 properties acquired in 5th FP fully
contributed to operating revenue ＋3.6 mn yen《Operating expenses》 (+50 mn yen)
• Property tax expensed for 2 properties
acquired in 5th FP＋31 mn yen• Increase in AM fee due to 2 properties
acquired in 5th FP+19 mn yen

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

5,492

5,524

+32

5,492

Distributions Per Unit
(excluding SCD)

4,763

4,930

+167

4,898

Surplus Cash Distributions (SCD)Per Unit

729

594

(135)

594

Number of investment units issued
and outstanding (units)245,815

245,815±0245,815

Other Statistics• Decrease property tax due to review in asset
valuation(1.7) mn yen《Non-operating revenues》（＋25 mn yen）
• Received insurance payment from typhoon
damages(5th FP 30 mn yen→6th FP 41 mn yen)
＋11mn yen
• Refund of property tax due to review in asset
valuation+13 mn yen《Non-operating expenses》 ((29) mn yen)

AFFO (mn yen)

1,611

1,647

356

1,611

• No investment units issuance cost (31) mn yen

AFFO Payout ratio

83.8％

82.4%

(1.4)%

83.8％

LTV

27.0%

27.0％

±0％

27.0%

• Repair cost incurred by typhoon damage(5th FP 29 mn yen→6th FP 31 mn yen)
＋2 mn yen

NAV Per Unit (yen)270,016

275,236(5,220)-

Average Occupancy

99.9%

99.9%

±0％

99.9%

9

Forecasts for the Fiscal Periods Ending February and August 2020
(Reference)
FP Ended Aug.
2020 Forecast(8th FP)FP Ended Aug.
2019 Actual(6th FP) (A)FP Ended Feb.
2020 Forecast(7th FP) (B)

2,530

3,213

+682

3,349

Operating Rental Revenues

2,530

3,213

+682

3,349

Operating Rental Expenses(excluding depreciation)

472

516

+44

601

2,058

2,696

+638

2,747

Depreciation

487

587

+100

610

Operating Income

1,253

1,743

+489

1,716

1,212

1,610

+397

1,632

1,211

1,609

+397

1,631

Operating Results（mn yen）
Operating Revenues

NOI

Ordinary Income
Net Income

Difference(B)－(A)

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

Main Factors of Variance
6th FP Actual vs. 7th FP Forecast《Operating Revenues》(+682 mn yen)
• Increase in rent from acquisition of 5 new properties+681 mn yen《Operating expenses》(+193 mn yen)
• Increase in rental expenses (excluding depreciation) from acquisitionof 5 new properties+44 mn yen• Increase in depreciation from acquisition of 5 new properties+100 mn yen• Increase in AM fee from acquisition+40 mn yen• Increase in other general and administrative expenses fromacquisition+9 mn yen《Non-operating revenues》（(55) mn yen）
• No insurance payment from typhoon damages and no refund inproperty tax due to review in asset valuation(55) mn yen《Non-operating expenses》 (+35 mn yen)

5,524

5,839

+315

5,933

4,930

5,263

+333

5,334

Surplus Cash Distributions (SCD)Per Unit

594

576

(18)

599

Number of investment units issued
and outstanding (units)245,815305,815+60,000

305,815

Other Statistics
AFFO (mn yen)

1,647

2,131

+484

2,215

AFFO payout ratio

82.4%

83.8%

+1.4%

81.9%

LTV

27.0％

30.1%

+3.1%

29.4%

Average Occupancy

99.9%

99.9%

±0%

99.9%

• Increase in interest expenses for new borrowings+23 mn yen• Incur investment unit issuance cost

+49 mn yen• No repair cost incurred by typhoon damage(31) mn yen

Main Factors of Variance
7th FP Forecast vs. 8th FP Forecast《Operating Revenues》(+136 mn yen)
• Increase in rent from existing properties• 5 new properties fully contributed tooperating revenue+ 3 mn yen+133 mn yen《Operating expenses》(+162 mn yen)
• Property tax expensed for 5 new properties+98 mn yen• Increase in AM fee from acquisition+41 mn yen• Depreciation fully expensed on 5 new properties+23 mn yen《Non-operating expenses》 ((47) mn yen)
• No investment unit issuance cost(49) mn yen

10

3.

Growth Strategy

Features of Mitsubishi Estate Logistics REIT Investment Corporation (MEL)
Stable Growth Strategy with Hybrid Model “Developer x Real Estate Asset Manager”

Mitsubishi Estate Logistics REIT Investment Corporation
Asset Size/
No. of Properties

AverageOccupancy

Forecasted LTV(2020/8)

Credit Rating（JCR）

113.7bn yen/15properties

Appraisal NOI Yield/
Appraisal NOI Yield(after depreciation)

Debt Cost(excluding
short-term debt)

99.9%

4.8%/3.7%

29.4%

AA-（Stable）

0.39%

Sponsor

Development /Facilities Management

Investment /Asset Management

Dedicated to city development in the Marunouchi area (Tokyo)
for over 120 years

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, such as the largest private REIT in Japan

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Proven track records in a variety of asset types in investment
and asset management

Constant supply of pipeline properties through development /operation of advanced logistics facilities



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 bya diverse deal track record

Support

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

Overview

Asset Management Company

Support12

External Growth Strategy
Capability to develop logistics facilities
independently based on extensive land
information■ Capability to co-develop facilities backed by
MEC’s ability and credibility for development■

LogicrossBrand of logistics facilities that MEC
develops throughout Japan

MJ Logipark

Properties which MEL acquired
or intends to acquire from 3rd parties

MJIA-sourced and operated properties
with expected preferential negotiation rightSponsor-developed properties
with expected preferential negotiation right

MEC Group
Occupancy
100%

Capability to assess properties backed byexperience in continuously acquisitions ofproperties since 2001
■ Flexible and diversified property acquisition
strategy by leveraging the capability to
manage real estate funds■

Bridge Fund
Newly
announced

Occupancy
approx. 95%

Occupancy
99.9%

Logicross Hasuda (tentative name)(79,000㎡) To be completed in FY2020
Osaka Nishi-Yodogawa Logistic Facility Center(38,000㎡) Completed in FY2018 (Jointly)

Occupancy
100%

Newly
announced

Logicross Nagoya Kasadera(80,000㎡) Completed in FY2018 (Independently)

Pre-leased
100%

LOGIPORT Osaka Taisho(117,000㎡) Completed in FY2017 (Jointly)

Occupancy
100%
Logicross Kasukabe (tentative name)(38,000㎡）To be completed in FY2021

Newlyannounced
LOGIPORT Kawasaki Bay（296,000㎡）Completed in FY2019（Jointly）

Logicross Yokohama Kohoku(16,000㎡) Completed in FY 2019（Independently）

Occupancy
100%

Logicross Narashino(39,000㎡) Completed in FY2017 (Independently)
Logicross Funabashi (tentative name)（23,000㎡）To be completed in FY2021

Occupancy
100%

Newly
announced

Logicross Atsugi II(34,000㎡) Completed in FY2019 (Independently)

Saitomoegi Logistics FacilitiesProject (tentative name)(32,000㎡/125,000㎡）To be completed in FY2020/FY2021

Logicross Zama (tentative name)（183,000㎡）To be completed in FY2023

MJ Logipark Sendai 1（36,000㎡）Completed in FY2008

14 properties 1,141,000㎡
Note： As of Oct. 18, 2019.

13

Portfolio of MEL and Pipelines

Note： As of Oct. 18, 2019.

14

Internal Growth Strategy (1)Rent Revision (Based on leased area of warehouse)
Upward rent revision
FP 2018/8
2018年8月期

57%

FP 2019/2
2019年2月期

4%(4th FP)(5th FP)FP 2019/8
2019年8月期

43%

FP 2020/2
2020年2月期
00

5,000

10,000

Average Rent Growthof Increased Portion

+1.8%

+3.2%

+0.2%

+3.4%

+3.1%

+6.8%

+2.2%

+2.5%

62,00040,00060%

88%(7th FP)

Average Rent Growth

11,00096%

40%(6th FP)

Rent unchanged

12% 19,000
15,000 20,000
15,00025,00040,00030,000 35,000

契約期間満了を迎える面積
Lease agreements that expired

9 9 .9 %Fixed-term lease ratio

100.0 %

Weighted average remaining expiry

6.8 years（㎡）
65,00040,00045,000

Lease Agreement Expiration Schedule(㎡)

Average occupancy

賃料比
Rent ratio

Tenant Diversification(%)

90,00020

80,00018

70,00016

IHI Infrastructure Systems
Sankyu15.9%

Kimura Unity

14

60,00012

50,00038.6%

1040,000

7.1%
5.7%

8

30,000

6

20,0005.4%

4

10,0002

002020/2 2021/2 2022/2 2023/2 2024/2 2025/2 2026/2 2027/2 2028/2 2029/2
2020/8 2021/8 2022/8 2023/8 2024/8 2025/8 2026/8 2027/8 2028/8 2029/8

2038/8 2047/8

5.1%
3.3%
4.3%4.8%4.9%

5.0%

MITAKA SOKOSun City Building
Honda Logicom
Mitsubishi Estate
Fukuoka Logistic System
Company A (communications)
Fuji Echo
OthersNote：As of Aug. 31, 2019. Includes the 5 properties acquired in the 7th FP.

15

Internal Growth Strategy (2)■ Competitive real estate fund management capability■ Leasing capability utilizing corporate customer relations andcustomer network■ Proven track record in a variety of asset types andinvestment schemes in investment and asset management■ Utilization of MEC Group’s know-how in the leasing businessLeasing Support utilizing MEC‘s Corporate Customer Relations
MEL will aim to establish business relationships with logistics service providers andshippers and achieve steady internal growth by understanding the needs of themarket and utilizing the corporate customer relations that MEC has built in its officeand commercial facility businesses operated primarily in the Marunouchi area (Tokyo)
through the Tenant Relation Support (TRS) consignment contract.

Realize Internal Growth through Initiatives other than Rent Revisions
Improvement by switching to LED based on Green Lease contract
Overview■■

Attracting existing tenants in office buildings managed by the
Mitsubishi Estate Group■Logicross Fukuoka Hisayama

Attracted the current tenant of the officebuilding managed by MEC as a new tenant of
Logicross Fukuoka Hisayama by capturing thetenant’s needs for a logistics facility. This was
attained due to MEC group’s broad-ranging
corporate customer relations and achieved
rent increases.
Leased Area: Approx. 7,700㎡
Rent Growth : +4.9％

Attracting retailers and wholesalers in the Tokyo Distribution
Center■Logicross Nagoya Kasadera

Attracted a tenant of Tokyo Ryutsu Center Inc.
(TRC), a wholesaler and retailer of liquors
and foods, as a tenant of Logicross Nagoya
Kasadera, capturing the tenant’s needs forestablishing a new logistics base that covers
the Chubu area.
Leased Area: Approx. 3,000㎡

Installed LED lighting at cost to
MEL
Received part of the reduction inelectricity bills and maintenance costs
to be borne by tenant as Green Lease
fee

Effects
MEL’s income will increase by approx. 1.9 mn
yen per term due to the receipt of Green Lease
fee■

Tenants’ electricity bills are reduced substantially■

The latest dimming functions capable ofadjusting grouping and brightness improved
tenants’ convenience■

Review of contract with electricity supplier(Logicross Fukuoka Hisayama, MJ Logipark Fukuoka 1)
Effects

Overview■■

Reviewed the contract with electricity
suppliers and changed the supplierfor two properties■

The contract will be reviewed
periodically

Saved tenants’ electricity bills and improved theirsatisfaction

Review asset evaluation of the properties(MJ Logipark Funabashi 1, LOGIPORT Sagamihara)
Overview■■

Review asset evaluation of theproperties held
Negotiation with relevant
government office regarding
difference from evaluation amount,
if anyEffects■■■

Decreased property tax for two properties(approx. 1.7 mn yen per fiscal period)
Refund of property tax due to review in asset
evaluation (approx. 12 mn yen in 6th FP）
Negotiation is underway for other properties

16

Financial Strategy
Financial Highlights
Long-term debt ratio

94.4%

Reduction in Debt Cost
Average remaining debt duration/
Average remaining debt duration
excluding short-term debt

Fixed interest rate
debt ratio

94.4% 5.8

Credit rating (JCR)

AA-（Stable）

years/

Forecasted LTV(2020/8 FP)

29.4%

6.1

years

0.38 0.39

Debt capacity(up to 40%)

Approx.

20

bn yenOur Lenders
4.1%

%/

%

Debt capacity(up to 50%)

Approx.

48

bn yenAfter borrowings(excluding
short-term debt)

Averagedebt cost

0.47%

0.39%

Averageremainingdebt duration

4.7year

6.1years

LTV

27.0%

29.4%

Debt Maturity Schedule

3.4% 1.1%

4.8%

Average debt cost /Average debt cost
excluding short-term debt

At the endof 6th FP■ MUFG
三菱UFJ銀行
Bank, Ltd.
29.1%

Bank, Ltd.
■ Mizuho
みずほ銀行■ Sumitomo
三井住友銀行
Mitsui Banking Corporation

5.5%

（mn
yen）
（百万円）
10,0008,000Bank of Fukuoka, Ltd.
■ The
福岡銀行

5.6%

Total Debt
Balance:

Norin Chukin Bank
■ The
農林中央金庫36,474 mn yen

8.0%

Central Bank
■ Shinkin
信金中央金庫Bank Limited■ Shinsei
新生銀行■ Development
日本政策投資銀行
Bank of Japan
18.5%

19.9%

■ The
全国信用協同組合連合会
Shinkumi Federation Bank
■ The
七十七銀行
77 Bank, Ltd.

6,000
4,000
2,000
0

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 (year)

Note：As of Oct. 9, 2019. Excludes the third-party allotment loan of 900 mn yen.

17

Initiatives for ESG
GRESB Survey
 Participated in the 2019 GRESB Real Estate Assessment for the first time
 Awarded the prestigious “Green Star” rating and received “4 Star” rating, the second
highest rating out of five
 MEL was the only J-REIT to receive “4 Star” rating among the 6 J-REITs that participated forthe first time

Environment

Social Energy saving initiatives

 Proactive participation in CSR activities

Insulated sandwich
panels for exterior walls

Installation of
motion-detection
sensors

 Use of renewable energy

Enhanced greenery

Improvement by switching
to LED based on Green
Lease contract

Clean up activity after Atsugi
Ayu Firework Festival volunteer
work near MJ Logipark Atsugi 1

 BCP initiatives

Free beverage
service for tenants
at LOGIPORT
Sagamihara

Governance Introduced asset management fee fully
linked to unit price performance
Insulated solar panels

Installation ofprivate power generators

Seismic isolators

 Continual same-boat investment in MEL by
MEC, a sponsor

18Mid-to Long-Term Growth Strategy
Asset size target and transition of DPU
Sponsor-developed properties
Asset Management Company-sourced properties

Asset Size

1st follow-on
offering

70.8 bn yen

LTV83.2 bn yen

83.2 bn yen

2nd Follow-on
Offering

30.5 bn yen

Based onstabilized LTV

25.0%

27.0%

27.0%

+2.4% increase

Based onstabilized DPU+8.0% increase

DPU

5,492 yen

Mid-to-long term
asset size target
300 bn yen
Asset size target
200 bn yen
113.7 bn yen

30.1%

5,839 yen

29.4%

5,933 yen

5,524 yen

Aim for continued growth5,292 yen

NAV PerUnit

269,217 yen

270,016 yen

FP 2018/8

FP 2019/2

275,236 yen

Stabilized LTV
40%～50%+3.5% increase

279,523 yen
Aim for continued growth

FP 2019/8

FP 2020/2

FP 2020/8（Stabilized）

19

4.

Mitsubishi Estate’s Logistics
Facilities BusinessFeatures of MEC Group's Logistics Facility Business
Diversified business portfolio as acomprehensive RE developer

Development

Obtain a variety ofland information

Manage development cost

Tenant solicitation approach unique tocomprehensive RE developer

Consolidate plots of land frommultiple landowners

Corporate customer relations

Collect land information
through relations

Customer network supported bybranches

Explore land information on site

2

Reflect tenants’ needs in landacquisition

Collaboration with TRC

Capture information from tenants ofmanaged facilities

1 Obtain a variety of land information

Logicross Kasukabe(tentative name)Walk around logistics facilities to
identify tenants’ needs

3

Strengthening of value chain
through in-house PM

Efforts such as acquiring
development lands throughland consolidation ofmultiple owners

Operation & Management

Group-wide leasing
Explore tenants’ needs
at various locations

Capture needs of office tenants, etc. for logistics facility development

Joint project4

1

Land Acquisition

MEL’s ability to respond tocomplex schemes forownership interest swaps
were highly rated

Logicross Hasuda(tentative name)

Understand tenants’ needs for facility
specifications

Understand tenants’ usage needs
Utilize relations with tenants ofmanaged facilities

2 Understand tenants’ needs for facility specs

3 Explore tenants’ needs at various locations

Collaborative project making fulluse of relation with office tenant in
Daimaru area

Use the regional network mainly inthe areas where MEC’s head officeand branches are located to achievetenant leasing activities

LOGIPORT Kawasaki Bay

Logicross Kobe Sanda
KansaibranchNeeds oflogistics bases

Information
Management
Department

Facilities21

4 Partnership with TRC
Partnership with TRC
 Outsourcing Operation and Management to TRC

Approx. 50 yearsof experience

Logicross Atsugi

Logicross Kobe Sanda

Logicross Atsugi II

Osaka Nishi-Yodogawa
Logistic Facility Center

Logicross Narashino

Logicross Yokohama Kohoku

 Operation & management of 10 sponsor-developed
properties are outsourced to TRC
 Promoting in-house operation & management by utilizing
TRC’s know-how

MJ Logipark Kasugai 1

Overview of Tokyo Ryutsu Center (TRC) Established in 1967 to operate large distribution facilities that take a critical role forstreamlining logistics in the Tokyo Metropolitan area, and became a consolidated
subsidiary of MEC.
 Rebuilt Logistics Building, B-wing as the first in-premise re-development project(completed in June, 2017, with floor area of 171,300m2) . MEC entered “ProjectManagement Support consignment contract” associated with rebuilding.
C

A
D

B

MJ Logipark Tsuchiura 1

Logicross Nagoya Kasadera

MJ Industrial Park Sakai(Land)

 Personnel Exchange with TRC(As of Apr. 1, 2019)7 seconded

4 accepted Six employees are seconded from MEC to TRC,
while three employees from TRC to MEC
 One employee is seconded from MJIA to TRC,
while one from TRC to MJIA
 Promoting the accumulation of know-how throughpersonnel exchange

22

MEMO

23

5.

Appendix

Portfolio Overview
Portfolio summary
Number of properties

15

properties

Average occupancy

99.9

%

Total acquisition price113.7

bn yenAverage appraisal NOI yield

4.8%

Average NOI yield
after depreciation

3.7%

Property Name

Logicross Fukuoka Hisayama

Property Name

LOGIPORT Sagamihara

Property Name

MJ Logipark Funabashi 1

Property Name

MJ Logipark Atsugi 1

Property Name

MJ Logipark Kazo 1

Acquisition Price

5,770 mn yen

Acquisition Price

21,364 mn yen

Acquisition Price

5,400 mn yen

Acquisition Price

6,653 mn yen

Acquisition Price

1,272 mn yen

Appraisal NOI Yield

5.2%

Appraisal NOI Yield

4.7%

Appraisal NOI Yield

6.5%

Appraisal NOI Yield

4.6%

Appraisal NOI Yield

5.7%

Property Name

Logicross Atsugi

Property Name

LOGIPORT Hashimoto

Property Name

MJ Logipark Osaka 1

Property Name

MJ Logipark Fukuoka 1

Property Name

MJ Logipark Tsuchiura 1

Acquisition Price

8,440 mn yen

Acquisition Price

18,200 mn yen

Acquisition Price

6,090 mn yen

Acquisition Price

6,130 mn yen

Acquisition Price

3,133 mn yen

Appraisal NOI Yield

4.5%

Property Name

Logicross Kobe Sanda

Acquisition Price

3,900 mn yen

Appraisal NOI Yield

Note:

5.1%

Appraisal NOI Yield

4.4%

Property Name

LOGIPORT Osaka Taisho

Acquisition Price

5,682 mn yen

Appraisal NOI Yield

4.6%

Appraisal NOI Yield

5.0%

Property Name

MJ Logipark Kasugai 1

Acquisition Price

13,670 mn yen

Appraisal NOI Yield

4.8%

Appraisal NOI Yield

5.3%

Property Name

MJ Logipark Nishinomiya 1

Acquisition Price

2,483 mn yen

Appraisal NOI Yield

5.7%

Appraisal NOI Yield

Property Name
Acquisition PriceAppraisal NOI Yield

5.3%

MJ Industrial Park Sakai(Land)

5,600 mn yen
3.8%

As of Aug. 31, 2019 except for properties acquired in 7th FP are as of June 30, 2019.

25

Portfolio Data
By Area

By Total Floor Area(based on acquisition price）

By Acquisition Source(based on acquisition price）(based on acquisition price）

1.2%

13.2%
12.0%

20.9%

■ Tokyometropolitan area
■ Osaka
metropolitan area
53.9%
■ Nagoyametropolitan area
■ Others■ 30,000㎡ or more
■ 10,000㎡ or more

27.7%

■ but less than 30,000㎡■ Less than 10,000㎡

71.1%

By Accessibility①(based on acquisition price）

38.4%

61.6%

44.3%

■ Developed by
the sponsor■ Sourced by
55.7% ■ Asset Management
Company

By Accessibility②(based on acquisition price）

17.4%
Distance from main high way■ Within 1km■ Over 1km and within 3km
49.3% ■ Over 3km

Distance fromnearest station■ Within 1.5km■ Over1.5km or more

33.3%

Note: As of Oct. 9, 2019.

26

Portfolio Details
Property Name

Properties
Held as ofthe end of
6th FP(Note 2)

Location

Total Floor Area Appraisal NOI（m2）
yield (%)

Occupancy
Rate（%）

Property Age(years)Property
Type

Logicross Fukuoka Hisayama

Kasuya, Fukuoka

5,770

36,082

5.2

100.0

4.9

Multi

Logicross Atsugi

Atsugi, Kanagawa

8,440

29,895

4.5

100.0

2.5

Multi

Logicross Kobe Sanda

Kobe, Hyogo

3,900

12,879

5.1

100.0

2.2

BTS

LOGIPORT Sagamihara(Beneficiary interest 49%)

Sagamihara,
Kanagawa

21,364200,252(98,123)

4.7

99.7

6.0

Multi

LOGIPORT Hashimoto(Beneficiary interest 45%)

Sagamihara,
Kanagawa

18,200145,809(65,614)

4.4

100.0

4.6

Multi

MJ Logipark Funabashi 1

Funabashi, Chiba

5,400

18,262

6.5

100.0

29.8

Multi

MJ Logipark Atsugi 1

Atsugi, Kanagawa

6,653

27,836

4.6

100.0

6.1

Multi

MJ Logipark Kazo 1

Kazo, Saitama

1,272

7,602

5.7

100.0

13.5

Multi

MJ Logipark Osaka 1

Osaka, Osaka

6,090

39,157

5.0

100.0

11.9

Multi

MJ Logipark Fukuoka 1

Kasuya, Fukuoka

6,130

39,797

5.3

100.0

11.9

Multi

83,219557,575(375,251)

4.9

99.9

7.6

-

Sub total / Average

Properties
Acquired inthe 7th FP(Note 2)AcquisitionPrice(mn yen)

MJ Logipark Tsuchiura 1

Tsuchiura, Ibaraki

3,133

15,485

5.3

100.0

4.8

BTS

LOGIPORT Osaka Taisho(Beneficiary interest 20%)

Osaka, Osaka

5,682

117,045(23,409)

4.6

99.9

1.5

Multi

MJ Logipark Nishinomiya 1

Hyogo, Osaka

2,483

13,903

5.7

100.0

28.5

BTS

MJ Logipark Kasugai 1

Kasugai, Aichi

13,67058,236

4.8

100.0

2.6

Multi

MJ Industrial Park Sakai (Land)

Sakai, Osaka

5,600

-

3.8

100.0

-

Land

Sub total / Average

30,568204,669(111,033)

4.7

100.0

5.2

-

Total / Average

113,787

762,245(486,285)

4.8

99.9

7.1

-

Note 1: “Total Floor Area” of LOGIPORT Sagamihara, LOGIPORT Hashimoto and LOGIPORT Osaka Taisho are shown with the values corresponding to each co-ownership interest (49%,45% and 20%, respectively).
The figure in parentheses in the “Sub-total (Total) / Average” column is the sum of total floor area of properties calculated based on the values corresponding to each co-ownership interest ratio.
Note 2: As of Aug. 31, 2019 except for the “Appraisal NOI yield” for the Properties Acquired in the 7th FP which are as of June 30, 2019.

27

Summary of Latest Appraisals(Units: Millions of yen)

Property Name

Properties
Held as ofthe end of
6th FP

Acquisition
Date

Book Valueat end of
6th FP

5th FP(Ended Feb.28,
2019) （Note 2）

Appraisalvalue

Direct cap
rate

Appraisalvalue

Direct cap
rate

Appraisalvalue

Direct cap
rate

Difference

Unrealized
Gain

Logicross Fukuoka Hisayama

Sept. 2017

5,770

5,683

6,110

4.8%

6,070

4.8%

+40

±0.0%

426

Logicross Atsugi

Sept. 2018

8,440

8,485

8,780

4.3%

8,740

4.3%

+40

±0.0%

294

Logicross Kobe Sanda

Sept. 2018

3,900

3,923

4,100

4.7%

4,050

4.7%

+50

±0.0%

176

LOGIPORT Sagamihara(Beneficiary interest 49%)

Sept. 2017

21,364

21,17523,3004.2%

22,8004.3%+500(0.1)%

2,124

LOGIPORT Hashimoto(Beneficiary interest 45%)

Sept. 201718,20018,071

19,305

4.1%

19,080

4.1%

+225

±0.0%

1,233

MJ Logipark Funabashi 1

Sept. 2016

5,400

5,294

6,440

5.0%

6,440

5.0%

±０

±0.0%

1,145

MJ Logipark Atsugi 1

Sept. 2017

6,653

6,606

6,910

4.3%

6,910

4.3%

±０

±0.0%

303

MJ Logipark Kazo 1

Sept. 2017

1,272

1,272

1,370

5.1%

1,370

5.1%

±０

±0.0%

97

MJ Logipark Osaka 1

Sept. 2017

6,090

6,035

6,670

4.4%

6,520

4.5%

+150

(0.1)%634

MJ Logipark Fukuoka 1

Sept. 2017

6,130

6,000

6,390

4.8%

6,390

4.8%

±０

±0.0%

389

83,21982,55089,375-88,370-+1,005--Sub total

Properties
Acquired inthe 7th FP

AcquisitionPrice

6th FP(Ended Aug. 31,2019)（Note 1）

MJ Logipark Tsuchiura 1

Sept. 2019

3,133

-

3,420

4.8%

-

-

-

-

-

LOGIPORT Osaka Taisho(Beneficiary interest 20%)

Oct. 2019

5,682

-

6,020

4.2%

-

-

-

-

-

MJ Logipark Nishinomiya 1

Oct. 2019

2,483

-

2,630

4.8%

-

-

-

-

-

MJ Logipark Kasugai 1

Oct. 201913,670-13,900

4.5%

-

-

-

-

-

MJ Industrial Park Sakai(Land)

Oct. 2019

5,600

-

5,780

3.7%

-

-

-

-

-

Sub total

30,568-31,750

-

-

-

-

-

-

Total

113,787-

121,125

-

-

-

-

-

-

Note 1: As of Aug. 31, 2019 for the Properties held as of the 6th FP, and as of June 30, 2019 for the Properties acquired in the 7th FP.
Note 2: As of Feb. 28, 2019 for Appraisal value and Direct cap rate at end of 5th FP.

28

Statement of Income and Balance Sheet
Statement of Income
Item
Operating revenues
Operating rental revenues
Other rental revenues
Operating expenses（Unit：Thousands of yen）
Actual2,530,386
2,399,157
131,229
1,276,463
959,140

Asset management fee

209,632
850

Administrative service fee

19,278

Director’s compensations

2,400

Commission paid

57,014

Other operating expenses

28,147

Operating income
Non-operating income
Interest income
Other non-operating income（Unit：Thousands of yen）
Item

Expenses related to property rental business

Asset custody fee

Balance Sheet

1,253,922
55,25525
55,230Current assets

Actual
5,856,848

Cash and deposits

2,627,266

Cash and deposits in trust

3,196,426

Other current assets
Non-current assets
Property and equipment

33,15582,578,642
82,550,517

Intangible assets

6,626

Investments and other assets

21,498Deferred assets

22,175

Total assets

88,457,666

Current liabilities

4,947,542

Operating accounts payable
Long-term loans payable due within one year

97,5234,000,000

Accrued expenses

286,273

Advances received

405,806

Other current liabilities

157,939

Non-operating expenses

96,427

Interest expenses

49,662

Borrowing related expenses

8,915

Long-term loans payable

19,924,000

Amortization of organization expenses

6,047

Tenant leasehold and security deposits in trust

1,541,562

Other non-operating expenses

31,801

Non-current liabilities

21,465,562

Total liabilities

26,413,105

Total unitholders’ equity

62,044,560

Ordinary income

1,212,751

Income before income taxes

1,212,751

Unitholders’ capital, net

60,832,644

Net income

1,211,868

Surplus1,211,916

Unappropriated retained earnings

1,211,916

Total net assets

62,044,560

Total liabilities and net assets

88,457,666

29

Debt
Category
ShorttermLongterm

Lenders

MUFG Bank
ShinkinCentral Bank
Floating
rate
Mizuho Bank
Mizuho Bank
Mizuho Bank
Development Bank of Japan
MUFG Bank
Sumitomo Mitsui Banking Corporation
MUFG Bank
Mizuho Bank
The Bank of Fukuoka
The Bank of Fukuoka
MUFG BankMUFG BankMUFG Bank
Sumitomo Mitsui Banking Corporation
Mizuho Bank
Sumitomo Mitsui Banking Corporation
Fixed
rate
The Norinchukin Bank
Shinsei Bank
Mizuho Bank
The Bank of Fukuoka
Shinkin Central Bank
Sumitomo Mitsui Banking Corporation
MUFG Bank
The Norinchukin BankThe Shinkumi Federation BankMUFG Bank
Mizuho Bank
The 77 Bank
Shinsei Bank
The Bank of Fukuoka
Total

Balance(mn yen)
200
750
900
1,100
720
1,491
430
2,050
1,760
1,330
450
900
620
710
2,680
880
880
830
800
500
830
807
1,256
3,000
4,000
1,250
1,250
200
2,400
400
1,250
750
37,374

Interest Rate

Borrowing Date

Repayment Date

Base rate(JBA 1-month JPY
TIBOR)+0.07000%

Oct. 9, 2019

Oct. 9, 2020

0.32630%

Sept. 14, 2021

0.35750%

Sept. 14, 2022

0.39130%
0.42880%
0.46750%0.50750%

Sept. 14, 2017

Sept. 14, 2023
Sept. 14, 2024
Sept. 14, 2025
Sept. 14, 2026

0.55000%

Sept. 14, 2027

0.24000%
0.39500%
0.45380%

Sept. 14, 2022
Sept. 14, 2025
Sept. 14, 2026

Sept. 14, 2018

0.57500%
0.25000%
0.49000%

0.26000%0.24000%
0.42000％-

Unsecured,
Unguaranteed

Sept. 14, 2028
Sept. 2, 2019
Sept. 30, 20190.18000%
0.21600%

Collateral

Sept. 2, 2023
Sept. 30, 2029
Oct. 9, 2024

Oct. 9, 2019-

Oct. 9, 2025
Oct. 9, 2026
Oct. 9, 2027
Oct. 10, 2028--

Note： As of Oct. 9, 201930

Logistics Market Overview (1)E-commerce Market Size

３PL Market Size（100 bn yen）

（千億円）
（100
bn yen）
200

40

160

30

120

20

80

10

40
0

0
2009

2010

2011

2012

2013

2014

2015

2016

2017

2018 （CY）

2009

2010

2011

2012

Sales of E-commerce

9.3%
9.1%

8

0

4.9%

2017

2018 （FY）

Source: Data created by the Asset Management Company based on "Monthly Logistics Business Sept. 2019“
Note: Each FY refers to a period commencing on April 1 and ending on March 31 of the following year It does not coincidewith the FP of MEL.

180.0
150.0
120.0

5.8%

4.0%

90.0
60.0

2.1%
2009

2016

（100 bn yen）

10

2

2015

Retail Market Size

E-commerce Rate

4

2014

3PL market size

Source: Data compiled by the Asset Management Company based on data from “Establishment of infrastructure for data
malignant society in Japan (FY2018 E-Commerce Market Survey)" (May 2019) by the Ministry of Economy, Trade andIndustry
Note: “Sales of E-commerce " in the above figure is an estimate of the transaction amount on the Internet at B to C (between
enterprises and consumers), and the figure to be estimated is the sum of transaction amount through the Internet among
all goods and services in personal consumption. It is broadly classified into the fields of sales merchandising, service anddigital, and market estimate value is calculated for each and totaled.

6

2013

30.0

2010

2011

Japan
日本

2012

2013

2014

UK
英国

2015

2016

U.S.
米国

Source: Data created by the Asset Management Company based on data from Ministry of Economy,
Trade and Industry (Japan), Office for National Statistics（UK）and U.S. Census Bureau (USA)

2017（CY）

0.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018（CY）

Department store
百貨店

Super market
スーパードラッグストア
Onlineshop

Drug store
インターネット通販

Convenience store
コンビニ

Source: Data compiled by the Asset Management Company based on data from “Current Survey of Commerce FY 2018 ”(March 2019) by the Ministry of Economy, Trade and Industry and "Establishment of infrastructure for data
malignant society in Japan (FY 2018 E-Commerce Market Survey )" (May 2019) by the Ministry of Economy, Tradeand Industry

31

Logistics Market Overview (2)Tokyo Metropolitan Area

Osaka Metropolitan Area

（Thousand ㎡）

（%）

2,500
2,000

14

8

1,200

12

1,000

10

5

800

8

4

600

6

400

4

200

2

3
2

500
0

1,400

6

1,000

1
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 2020（CY）
Q1-2 Forecast
New supply (left axis)
Vacancy rate (right axis)

New demand (left axis)

（%）

9
7

1,500

（Thousand ㎡）

0

0
（CY）
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 2020
Q1-2 Forecast
New demand (left axis)

New supply (left axis)

Forcast new supply (left axis)

Vacancy rate (right axis)

Vacancy rate（after 1 year of completion）(right axis)

Nagoya Metropolitan Area

Forcast new supply (left axis)

Vacancy rate（after 1 year of completion）(right axis)

Kyushu Area

（Thousand ㎡）

（%）

400

40

350

35

300

30

250

（Thousand ㎡）

（%）

160

16

140

14

120

12

25

100

10

200

20

80

8

150

15

60

6

100

10

40

4

50

5

20

2

0

0
0

0

(50)

(5)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 2020（CY）
Q1-2 Forecast
New supply (left axis)
Vacancy rate (right axis)

New demand (left axis)

2009

2010

2011

2012

New supply (left axis)

2013

2014

2015

2016

New demand (left axis)

2017

2018

0
2019（CY）
Q1-2

Vacancy rate (right axis)

Forcast new supply (left axis)

Vacancy rate（after 1 year of completion）(right axis)

Source： CBRE K.K.
Notes:
1. In the above figures, “Tokyo Metropolitan Area” refers to Tokyo, Chiba, Saitama, Kanagawa and Ibaraki prefectures, “Osaka Metropolitan Area” refers to Osaka and Hyogo prefectures, “Nagoya Area” refers to Aichi prefecture and “Kyushu Area” refers
to Fukuoka and Saga prefectures.
2. “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 fromfloor area under new agreements.
Note 3: 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, and therefore not covering all
logistics facilities for lease having a gross floor area of 5,000m2 or more.

32

Unitholders Composition
Major Unitholders (As of Aug. 31, 2019)

Breakdown by Units (As of Aug. 31, 2019)
3.8%

12.6%
9.7%

15.3%

245,815

Units Issued
andOutstanding

58.6%

Domestic individuals
and others
and others
Financial institutions：37,612 units

Domestic entities：23,894 units

Foreign entities
Securities
Companies
Companies

32,372

13.16%The Master Trust Bank of Japan, Ltd. (Trust Account)

28,251

11.49%：30,874 units

Mitsubishi Estate Co., Ltd.

10,0004.06%：9,328 units

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

8,832

3.59%

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

7,132

2.90%

Tokyo Century Corporation

6,069

2.46%

The Chugoku Bank, Limited

5,372

2.18%

The Shinkumi Federation Bank

4,806

1.95%

The Iyo Bank, Ltd.

3,652

1.48%

The Hyakujushi Bank, Ltd

3,500

1.42%

109,98644.74％

0.2%

9,860

Unitholders

95.1%

Ratio

Japan Trustee Services Bank, Ltd. (Trust Account)：144,107 units

Breakdown by
Unitholders (As of Aug. 31, 2019)
1.1%
2.3%
1.4%

Number of
Units

Domestic individuals
and others
and others
Financial institutions：9,372 unitholders

Domestic entities：229 unitholders

Foreign entities：105 unitholders

Securities
Companies
Companies：18 unitholders：136 unitholders

Total

Same-boat Investment by MEC (As of Oct. 18, 2019)
Investment in MEL by MEC

Approx. 4.1%

33

Asset Management Fee Fully Linked to Unit Price Performance
MEL’s Asset Management Fee Structure
Asset management fee Ⅰ（AUM-linked）

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

Asset management fee Ⅱ(Real estate profit-linked)

Adjusted NOI x 5.0% (upper limit)

Adjusted net income before tax x net income before tax per unit x 0.001% (upper limit)“Investment unit price-linked management fee”※
Asset management fee Ⅲ Performance against TSE REIT Index ((a) – (b)) x market capitalization (for fiscal period of each term) x 0.1%
(Unitholder interest-linked) (upper limit)（a）：Fluctuations in MEL’s investment unit price (incl. dividends)（b）：Fluctuations in the TSE REIT Index (incl. dividends)

First J-REIT to Introduce Asset Management Fee Fully Linked to Unit Price Performance Strengthen the alignment between asset management company andunitholder interest by giving incentives to asset management company
for improving unitholders’ value. Align both parties interest by
introducing an asset management fee reflecting above performance.
Investment unit price
TSE REIT Index (incl. dividends)
262,100 yen

X＋DPU

3,851.10pt
YY

262,100 yen
3,851.10pt
Mar. 29, 2019

X＋DPU
Sept. 30, 2019

If MEL’s growth rateis greater(a)-(b)=positive↓
Increase Fee
If TSE REIT Index
growth rate is greater(a)-(b)=negative↓
Decrease Fee

Calculation
PeriodReference date（Previous period）

Reference date（Present period）

DPU toincludeFP EndingFeb. 2020

Last business dayof Mar. 2019

Last business day
of Sept. 2019

FP EndingAug. 2019

FP EndingAug. 2020

Last business day
of Sept. 2019

Last business dayof Mar. 2020

FP EndingFeb. 2020

For the period ending February 2020
＜Example＞
 Closing price of MEL’s investment unit as of Mar. 29, 2019：262,100 yen TSE REIT Index (incl. dividends) as of Mar. 29, 2019：3,851.10pt
 Closing price of MEL’s investment unit as of Sept. 30, 2019：344,500 yen TSE REIT Index (incl. dividends) as of Sept. 30, 2019：4,477.77 pt(a) =（344,500 yen -262,100 yen＋5,524 yen）/ 262,100 yen(b) =（4,477.77 pt - 3,851.10pt ）/ 3,851.10pt

34

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 orsolicitation to trade in any product offered by MEL.
Purchase, sale and such of MEL’s investment units entail the risk of incurring a loss due to fluctuations of the investment unit price.
Please consult with a securities company regarding the purchase of MEL’s investment units or investment corporation bonds. Information presented on this document should not be interpreted,
unless otherwise specified, as constituting disclosure documents or asset management report required under Financial Instruments and Exchange Act or the Act on Investment Trusts andInvestment 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 thisinformation. Furthermore, MEL and Mitsubishi Jisho Investment Advisors, Inc. (the “Asset Management Company”) assume no responsibility for the accuracy of the data, indices and otherinformation release by third parties (including data based on real estate appraisal reports).
This document includes forward-looking statements that reflect MEL’s plans and expectations. Any information contained in this document except facts about the past and present is referred to as
such 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 and unknown risks, uncertainties and other factors, and may be affected by such factors. These factors include risks related to MEL’s internal and external
growth and risks related to the profitability per investment unit. Such risks, uncertainties and other factors may cause MEL’s actual results, performance, achievements or financial position expressedor 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.