9th Fiscal Period(Fiscal Period Ended January 31, 2021)

Investor Presentation Material

Mitsui Fudosan Logistics Park Inc.
(MFLP-REIT)
March 12, 2021
Securities Code3471

Table of Contents
3. ESG Initiatives

1. Highlights
1-1 Operating Highlights……

P3

3-1 Initiatives of Mitsui Fudosan Group…… P32

1-2 External Growth……

P4

3-2 Initiatives of MFLP-REIT and Asset Management…… P33

1-3 Internal Growth……

P9

1-4 Financial Strategy…… P10

1-5 Initiatives for ESG…… P11

1-6 DPU growth…… P12

3-4 Initiatives of MFLP-REIT – for Environment…… P35

1-7 9th Fiscal Period (Ended January 2021) P/L…… P13

3-5 Initiatives of MFLP-REIT – for Society…… P361-8 10th Fiscal Period (Ending July 2022) Earnings…… P14

3-6 Initiatives of MFLP-REIT – for Governance…… P37

3-3 Initiatives of MFLP-REIT and Asset Management…… P34Company – Topics

4. Market Overview

Forecast

4-1 Market Overview

2. Growth Strategy of MFLP-REIT
2-1 Continuous Growth through a strategic partnership …… P16…… P18…… P395. Appendix• Our Portfoliowith Mitsui Fudosan
2-2 Four Roadmaps to Stable Growth and Trajectory

Company – ESG Promotion Framework…… P45• Individual Property Income Statement for 9th Fiscal Period …… P47• Appraisal Summary for the End of 9th Fiscal Period…… P48

2-3 Four Roadmaps to Enable Continued Stable Growth …… P19• Statement of Income and Balance Sheet…… P492-4 External Growth Strategy…… P21• Distribution after Adjustment of Temporary Effects…… P502-5-1 Location…… P23• Investment Unit Price Trends/Status of Unitholders…… P51

2-5-2 Quality…… P25• Mitsui Fudosan’s Major Development/Operation Track…… P52

2-5-3 Balance…… P262-6 Internal Growth Strategy…… P27

Notes on Matters Stated in This Document

2-7 Financial Strategy…… P29Disclaimer

of Growth

Record…… P531

1. Highlights2

1-1 Operating Highlights
Accelerating steady growth through strategic partnership with Mitsui Fudosan
External Growth

Financial Strategy• Acquired MFLP Ibaraki and MFLP Kawaguchi I(¥77.4bn) through 4th follow-on offering in Oct. 2020
• Completed purchase agreement for data center
MFIP Inzai II (¥15.15bn) to acquire on Mar. 16.
Asset size to rise to ¥300bn• 3 new properties added to Properties defined in“Right of first look and preferential negotiation rights
agreement”* for a total of 11 properties, 1.1mn m2• LTV* forecast at end of 10th FP 33.8%(post-MFIP Inzai II acquisition): lowest amongst
J-REITs. Maintain strong growth potential• Further strengthen financial soundness. Increase
lenders to 22. Issue 1st Investment Corporationbond. Increase commitment line to ¥8bn.
Credit rating AA- upgraded from stable to positive

Internal Growth

ESG Initiatives• Despite pandemic, average occupancy rate** for9th FP maintained at 100%
• All leases expiring in 9th/10th FPs signed.
100% of 9th FP, 92.8% of 10th FP signings wererenewals• Implemented rigorous COVID-19 infection
prevention measures• Advanced ESG initiatives with launch ofsustainability bond in February(1st Investment Corporation bond)

DPU* Growth
9th fiscal period DPU (Actual) ¥7,283（vs. 7th FP ＋10.6%）
10th fiscal period DPU (Forecast) ¥7,772 (vs. 8th FP ＋11.4%）* For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement”] [Highlights] in the Notes on Matters Stated in this Document on p.53-54** Simple average of occupancy rates at the end of each month during the fiscal period in question3

1-2 External Growth [1] ーProperties Acquired in 9th FPー
Acquisition of highly competitive MFLP Ibaraki and MFLP Kawaguchi I through 4th follow-on
offering
About the 4th follow-on offeringGlobal offering

Launch date / Pricing date

September 16, 2020 / September 29, 2020

Demand ratio

Approx. 10x(of which, overseas demand approx. 15x)

Despite pandemic, enhanced the quality and stability of theportfolio, improving long-term unitholder valueOffering format

Total amount issued /49.83 billion yen /Total number of units issued PO：96,190 units, OA：4,810 units

Acquired 2 highly competitive properties in prime locations

Overview of properties acquired in the 9th FP
Appraisal NOI /Appraisal value *No. of properties / Acquisition price/ Adjusted forecast NOI yield*

Average occupancy rate *4 . 1 ％ / Avg. 4 . 5 ％100％

Average building age *Less than 5 km from expressway interchange

Average lease term remaining *3 . 0 years

100％

3 . 1 year

2 pr oper ties / 7 7 . 4 billion yen

Avg.

MFLP Ibaraki

MFLP Kawaguchi I
Overview of the property

Overview of the property

Location

Ibaraki-shi, Osaka

Location

Kawaguchi-shi, Saitama

Acquisition price

58,900 million yen

Acquisition price

18,500 million yen

Appraisal NOI yield 4.1% //Adjusted forecast 4.6%
NOI yield

Appraisal NOI yield 4.0% //Adjusted forecast 4.4%
NOI yield

Gross floor area

Gross floor area

230,435㎡

Characteristics of the property

Flagship property. One of largest in Osaka inland area. Close to major
expressway interchanges. Superior location for securing work force* For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.53-54.

49,838m2

Characteristics of the property

Located very close to Central Tokyo. Last mile distribution base enabled forhigh frequency receiving and dispatch4

1-2 External Growth [2] ーProperty to be Acquired in 10th FPー
Largely achieve medium-term asset size target of ¥300bn through acquisition of leading-edge,
large-scale data center MFIP Inzai II

MFIP Inzai II

Data center

Anticipated acquisition price / Appraisal value *1 5 . 1 5 billion yen / 1 5 . 2 billion yen

Appraisal NOI /Appraisal value*/ Adjusted forecast NOI yield*

4.7％ / 4.7％

Building age *Occupancy rate *0 . 7 year s

100％

MFIP Inzai II

Characteristics of the property

AccessExcellent access: 1 hour by car from central Tokyo. Outside area
subject to traffic restrictions in event of large-scale earthquake
Seismic performance
Seismic isolation structure: superior seismic performance

Overview of the property
Location
Completion **Inzai-shi, Chiba

Gross floor area *27,268㎡

December, 2020

Sales and purchase
March 12, 2021 /agreement date /March 16, 2021
Planned acquisition date

* For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.53-54.
**Completion date is date that inspection completion certificate is issued

Investment structure
MFLP only owns real estate (land/physical shell), for which it
receives rent payments based on lease agreement51-2 External Growth [2] ーProperty to be Acquired in 10th FPー
Superior location for developing data centers
Location criteria for data center development
1

Sufficient power capacity

2

High quality communication
environment

3

Secure electric power

Naturaldisasterrisk

Low natural disaster risk

Market data

Superiority of MFIP Inzai II’s location1

Large amount of electricity is required to
run high-performance computers2High quality communication environment
necessary for data center operations

3

Minimal natural disaster risk to ensurestable and safe data center operations

Communication
environment

Increasing shift to large-scale, high power density data centers
Particularly strong market growth for cloud-related services
Gross floor area of high power density
data centers

Trends in large-scale data center space (over 2,000㎡)
Annual average
growth rate
（2019~2024）（thousand ㎡）

800

7.7

Annual average
growth rate
（2019~2024）（thousand ㎡）%

Forecast

18.4

1,000
800

600

%

（2019~2024）(billion yen)

18.6

1,500

%

Forecast

1,000

400

200

Annual average
growth rate

Forecast

600

400

0

Cloud-related service revenues
within the data center service market

500

200
2018 2019 2020 2021 2022 2023 2024 (year)
Source: International Data Corporation Japan; “Outlook for Domestic Data Centers,
Gross Floor Area and Power Capacity (2020-2024)” (March 2020)02018 2019 2020 2021 2022 2023 2024 (year)
Source: International Data Corporation Japan; “Outlook for Domestic Data Centers,
Gross Floor Area and Power Capacity (2020-2024)”（March 2020）

0

2019
2019

2020
2020

2021
2021

2022
2022

2023
2023

(year)
2024
2024

Data Center Service Market (2020 – 2024)”, August 2020.

6

Source: International Data Corporation Japan; “Outlook for Domestic

1-2 External Growth [3]Portfolio quality, stability improved significantly through external growth
NAV per unit also continued to rise, enhancing unitholder value
External growth and properties defined in “Right of first look and preferential negotiation rights agreement”*

Medium-term target

300.0 billion yen
virtually achieved

End of July 31,2020(8th fiscal Period)

Properties acquiredin the 9th fiscal period

Properties to be acquiredin the 10th fiscal period

End of July 31,2021(10th fiscal period) (forecast)

No. of properties/
Total floor area＊

18 properties/
950,000㎡

2 properties /280,000㎡

1 property /27,000㎡

21 properties/
1,260,000㎡

Asset size

205.0 billion

77.4 billion

15.15 billion

297.6 billion yen

Adjusted forecast NOI yield /after depreciation＊

5.2% / 3.5%

4.5% / 3.2%

4.7% / 3.0%

5.0% / 3.4%

Average building age＊

4.9 years

3.0 years

0.7 years

4.8 years

Top 5 tenant ratio＊

33.2%(logistics facilities only)

Appraisal value*

28.3%
318.2 billion yen

219.2 billion yen（unrealized gain*）（19.4 billion yen）

（27.4 billion yen）

No. of properties defined in “Right offirst look and preferential negotiationrights agreement” /Total floor area＊

10 properties/
1,180,000㎡

11 properties/
1,100,000 ㎡

Expansion of asset size and growth of NAV per unit
Portfolio quality and stability substantially improved through continued expansion of asset size
Enhanced unitholder value through continued growth in NAV per unit; external growth through acquisition of quality assets and accretive equity financing

NAV per unit

Asset size
（billion yen）

300
200

+45.1%

205.0

297.6

Average annual
growth rate sincelisting+

1000

End of July 31,2020(End of 8th fiscal period)

March, 2021
(Post-MFIP Inzai II acquisition)

34.6 %（yen）

375,000+10.6%

389,825

352,401

Average annual
growth rate sincelisting+

325,000
275,000

End of July 31,2020(End of 8th fiscal period)

March, 2021
(Post-MFIP Inzai II acquisition)* For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement”], [Highlights] in the Notes on Matters Stated in this Document on p.53-54.

9.0 %

7

1-2 External Growth [4] ーImproved Position in J-REIT Marketー
Improved credit rating, raising potential for further inclusion in indicesMarket position amongst J-REITS (asset size ¥250-500 billion)（billion yen）
500

Asset size as of the end of 9th fiscal period
Anticipated acquisitions

400

MFLP-REIT
Asset size
after anticipatedacquisitions

300

200

100

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REIT Core Index

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CreditratingJCR※N.B. Announced on February 19, 2021 that MFLP-REIT would move from the Small cap to Mid cap Index on March 22, 20218

1-3 Internal Growth
Despite the pandemic, there have been no delayed rent payments, rent relief or cancellations
Solid progress in Signing leases as well
Expanding demand for logistics facilities during the pandemic
thousand m2
750
18%

thousand m2
1200

Recent online shopping trends

Osaka area: Supply-demand and vacancy rates

Greater Tokyo: Supply-demand and vacancy rates

18%

yen

22,000
900

12%

500

12%

6%

250

6%

300
0

Q1

Q2

Q3

Q4

2019
New supply

Q1

Q2

Q3

Q4

0.4%
0%

0

Q2

Q1

Q4

Q1

Vacancy rate

Q2

Q3

Q4

1.0%
0%

Vacancy rate (properties completed more than 1 year ago)

* Source: CBRE K.K. (including forecasts) as of December 31, 2020. Survey of rental logistics facilities with total floor areas of greater than 5,000m2
held by real estate investment companies, real estate developers, etc.

2020

52%

2019

48%
46%
44%

14,00012,00054%

50%

16,000

2020

2019

2020
New demand

Q3

2019

18,000

2.5%

0.4%

2020

20,000600

Online Shopping by Number ofHouseholds

Online Spending by Household

42%
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.

40%

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.

*Source: Ministry of Internal Affairs and Communications “Survey of Household Economy [Monthly
Disbursements per Household Using the Internet] by Nation, District and City Class” (as of March 9, 2021)

Status of occupancy rate and lease signings
Occupancy rates: 9th fiscal period, forecasts for10th fiscal period and beyond
Forecast
100%

100%

100%

100%

100%

100%

Solid progress on lease signings (9th, 10th fiscal period)
9th FY lease
expiries
100%

Signing
Rate

100%
Of which
existing tenants100

Aug. 31,2020

Sep. 30,
2020

Oct. 31,2020

Nov. 30,
2020

Dec. 31,2020

Jan. 31,2021

Jul. 31,2021

Jan. 31,2022（End of 9th FP) （End of 10th FP) （End of 11th FP)(Forecast)(Forecast)

10th FP lease
expiries％

Leasessigned/renewed

100％

Of which
existing tenants

92.8

Existing tenants％

New tenants

N.B. Above graphs based on leases for portfolio properties signed as of January 31, 2021 (leased floor space basis), after taking into accountproperty to be acquired during the 10th fiscal period.

91-4 Financial Strategy
Maintain lowest LTV amongst J-REITs and improved acquisition capacity. Enhanced financial
soundness
LTV and acquisition capacity trends
End of 8th Fiscal Period(July 31, 2020)

End of 9th Fiscal Period(January 31, 2021)

End of 10th Fiscal Period(July 31, 2021) (forecast)

LTV

30.2%

31.0%

33.8%

Acquisition capacity（with LTV at 50%)

82 billion yen

109 billion yen

96 billion yen

Stable financial management
Acquisition of MFLP Ibaraki and Kawaguchi I (Oct. 2020), Acquisition of MFIP InzaiⅡ with new borrowings (Mar. 2021) and Issuanceof 1st Investment Corporation bonds (Feb. 2021)
End of 8th Fiscal Period(July 31, 2020)

Acquisition of MFLP
Ibaraki and Kawaguchi I

1st Investment
Corporation bonds(Sustainability bonds)

Acquisition ofMFIP Inzai II

62.9 billion yen

31 billion yen

99.9 billion yen(6.5 billion yen)

3 billion yen

15.5 billion yen(5 billion yen)

(3.5 billion yen)

（2.5 billion yen)

No. of lenders

16 lenders

19 lenders-

11 lenders

22 lenders

Average time to maturity

7.4 years

8.3 years

10 years

8.2 years

7.7 years

0.28%

0.32%

0.50%

0.40%※-

Total interest-bearing debt
（short-term）(long-term only)

Average interest rate

Sumitomo Mitsui Banking
3 billion yen
Corporation
Sumitomo Mitsui Trust
Bank, Limited

3 billion yen

Total

6 billion yen(forecast)

Improved credit rating outlook (Nov. 2020)

Increase of commitment line（Feb. 2021)
Before January, 2021

End of 10th Fiscal Period(July 31, 2021)

After February, 2021
Sumitomo Mitsui Banking
Corporation
Syndicate with Sumitomo
Mitsui Trust Bank, Limited
as arranger
Total*For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.53-54※N.B. Estimates calculated as of the end of February 2021.

Credit rating agency

JCR

Long-term Issuer
RatingAA－

Outlook

Stable ⇒ Positive

3 billion yen
5 billion yen
8 billion yen

10サステナビリティボンドについて

1-5 Initiatives for ESG
Further expanding ESG initiatives: Issued 1st sustainability bond in February 2021
Establish“Sustainability Finance Framework”

JCR assigned MFLP-REIT“SU 1 (F)”,its highest evaluation gradein its Sustainability Finance
Framework Evaluation

Eligible Green Project Criteria:

Properties that address environmental issues

Eligible Social Project Criteria:

Properties that address social issues

Issuance of Sustainability Bonds（1st Investment Corporation Bonds）
Overview

Eligible assets for investment

Name

1st Unsecured Bonds（Sustainability Bonds）

Total issue
amount3 billion yen

Term

10 yearsInterest rate

0.50%

JCR rating

SU 1

No. ofdeclaredinvestors

12

Eligible Green
Project Criteria

Eligible Social
Project Criteria

Eligible Green Project Criteria

3

MFLP KawaguchiⅠ

MFLP Ibaraki

Use of Proceeds: To refinance the acquisition of the above two properties11

1-6 DPU Growth
Strong DPU growth maintained on initiatives in 9th and 10th fiscal periods
MFLP Ibaraki, MFLP Kawaguchi I acquisitions in 9th FP drive DPU of ¥7,283, ＋10.6% vs. 7th FP
Guiding for DPU of ¥7,772, ＋11.4% vs 8th FP on acquisition of MFIP Inzai II+11.4%
DPU

7,772 yen

+10.6%＋489 yenDPU7,283 yen
DPU

＋306 yen

6,977 yen

( Unit: yen )DPU6,584 yen

( Unit: yen )Major positive factors
9th FP acquisitions
Full-term contributions from 8th
FP acquisitions
Major negative factors
Increase in asset mgmt. fees
Decrease in solar panel rents
Increase in other non-operating
expenses, etc.
Other factors
Decrease in distribution in excessof earnings

7th第7期実績
fiscal period
Actual8th
fiscal period
第8期実績
Actual

+435
+107

- 98
- 18
- 22

- 98

Major positive factors
Planned acquisitions in 10th FP
Full-term contributions from 9th
FP acquisitions
Increase in solar panel rents
Major negative factors
Expensing property-related taxes onproperties acquired in 8th/9th FP
Increase in asset mgmt. fees
Increase in other non-operating
expenses, etc.
Other factors
Increase in distribution in excessof earnings

第9期実績
9th
fiscal period
Actual

+325
+934
+95
-716
-167
-302

+322

10th
fiscal period
第10期予想Forecast

12

1-7 9th Fiscal Period (Ended January 2021) P/Lth(Unit: million yen)

Operating revenue

8 fiscalperiodActual
(a)
6,363

th

9 fiscalperiodForecast(Sep. 16, 2020)

8,115

9th period
Actual(b)

Difference(b)-(a)

8,139

1,775

Main breakdown of difference
Operating revenue
Increase due to properties acquired in the 9th FP+1,454(MFLP Ibaraki, MFLP Kawaguchi I)

Operating expenses

3,482

4,385

4,353

870

Increase due to full-period operation of properties acquired in the +307
8th FP (MFLP Sakai (80%), MFLP Prologis Park Kawagoe (50%), MFLP Hiroshima I)

1,661

2,061

2,059

398

Decrease in photovoltaic power generation facilities rent revenue

2,881

3,729

3,786

905

Non-operating income

40

-

12

-28

Increase due to properties acquired in the 9th FP

Non-operating expenses

186

234

217

31

Increase due to full-period operation of properties acquired in the
8th FP (MFLP Sakai (80%), MFLP Prologis Park Kawagoe (50%), MFLP Hiroshima I)

+82

2,735

3,495

3,580

845

Increase in asset management fee+204

Increase in other operating expenses+39

Of which, depreciation(those related to properties only)

Operating income

Ordinary income
Profit (Net income)

2,734

3,494

3,579

845

(excluding properties acquired in the 8th and 9th FP)+52

Decrease in other operating revenue

Operating expenses+544(MFLP Ibaraki, MFLP Kawaguchi I)

Non-operating income
Absence of insurance income

-40
+5
+5

Interest on consumption tax refund

Distribution per unit
(DPU) (yen)Of which,
Distribution of earnings per unit (EPU) (yen)Of which,
Distribution in excess of earnings per unit (yen)Distribution in excess of earnings
expressed as a percentage of depreciation

Average occupancy rate during the period*1

6,977

7,217

7,283

306

-38

Other non-operating revenue

Non-operating expenses
6,200
777

20.6%

99.9%

6,447
770

20.2%

100%

6,604
679

17.9%

100%

404
-98

-

-

* For further details, please refer to [Method of calculation of cash distribution based on FFO] in the Notes on Matters Stated in this Document on p. 53-54.
*1 The simple average of the occupancy rates as of the end of each month in each fiscal period is indicated.

Interest expenses+38

Offering costs associated with issuance of investment units+17

Amortization of investment unit issuance expenses+9

Absence of disaster restoration expenses-35

Other non-operating expenses+2<Reference>
Formula for distribution per unit based on FFO*
FFO＝

Profit (Net income)＋Depreciation, etc.

…①

Source of funds for
distribution

＝

① FFO

×

70%

…②

Distribution per unit＝

②Source of funds for
distribution÷

Number of investment
units issued andoutstanding13

1-8 10th Fiscal Period (Ending July 2021) Earnings Forecastth(Unit: million yen)

Operating revenue

9 fiscalperiod(Actual)
(a)
8,139

th

10 fiscal
periodDifference(Forecast)(b)-(a)
(b)
9,356

1,216

Main breakdown of difference

Operating revenue
Increase due to properties to be acquired in the 10th FP

Operating expenses
Of which, depreciation(those related to properties only)

Operating income
Non-operating income

4,353

5,455

1,101

2,059

2,348

289

3,786

3,900

114

12

-

-12

<Reference>
11th period
Forecast
9,260
+297

(MFIP Inzai II)

5,354 *2

Increase due to full-period operation of properties
acquired in the 9th FP (MFLP Ibaraki, MFLP Kawaguchi I)+874

Increase in photovoltaic power generation facilities rent
revenue (excluding properties acquired in the 9th FP)

+51

2,373

-6

3,905

Decrease in other operating revenue

Operating expenses
Increase due to properties to be acquired in the 10th FP+121(MFIP Inzai II)

Non-operating expenses
Ordinary income
Profit (Net income)Distribution per unit
(DPU) (yen)

217

230

12

3,580

3,670

90

3,579

3,669

90

+370

Expensing of fixed asset tax and city planning tax forproperties acquired in the 8th and 9th FP+386(MFLP Sakai (80%), MFLP Prologis Park Kawagoe (50%), MFLP Hiroshima I,
MFLP Ibaraki, MFLP Kawaguchi I )Increase in asset management fee+90

Increase in other operating expenses

+132

220
3,685
3,684

Non-operating income
7,283

7,772

489

Of which,
Distribution of earnings per unit (EPU) (yen)

6,604

6,771

167

Of which,
Distribution in excess of earnings per unit (yen)679

Distribution in excess of earnings expressed
as a percentage of depreciation

17.9%

Average occupancy rate during the period*1

Increase due to full-period operation of properties
acquired in the 9th FP (MFLP Ibaraki, MFLP Kawaguchi I)

Absence of Interest on consumption tax refund-5

Other non-operating revenue

-6

6,797

Non-operating expenses

100%

1,001

23.1%

100%

322

-

-

7,823

Interest expenses+40

Absence of offering costs associated with issuance ofinvestment units-44

Amortization of investment unit issuance expenses+4

Other non-operating expenses+11*1 The simple average of the occupancy rates as of the end of eachmonth in each fiscal period is indicated.
*2 The fixed asset tax and city planning tax (28 million yen) for theproperties to be acquired in the 10th FP (MFIP Inzai II) is notincluded and will be recorded in and after the 12th FP.

1,026
23.4%

100%

14

2. Growth Strategy of MFLP-REIT
MFLP-REIT aims to maximize unitholder value through a strategic partnership with
Mitsui Fudosan, a major property developer that leverages the comprehensive
strengths of its corporate group to create value in its logistics facilities152-1 Continuous Growth through a strategic partnership with
Mitsui Fudosan
Mitsui Fudosan expanding the development of properties with excellent location and quality
through its CRE strategies
Ability to secure development sites through its corporate real estate (CRE) strategy
Proposal of
CRE strategies

Various CRE needs of client firms
Rebuilding of corporate logistics

Trimming balance sheet(Asset disposal)

Utilization of idle land

Global development(Establishment of overseas sites)

Development of corporate infrastructure

Sale of real estate, etc.

Develop high-quality properties in prime locations

Image of growth of properties (to be) developed/operated *by Mitsui Fudosan

Cumulative total investment size as of March 2021

47 facilities 610.0 billion yen*

Cumulative total investment size as of November 201940 facilities 570.0 billion yen*Transition to“Logistics Properties
Business Division”
at Mitsui Fudosan

Mitsui Fudosan
established the
Logistics Properties
Department

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

MFLPREIT
IPO

Fiscal 2016

Fiscal 2017

Fiscal 2018

* For further details, please refer to [Major properties developed/operated by Mitsui Fudosan] in the Notes on Matters Stated in this Document on p. 53-54.

Fiscal 2019

Fiscal 2020
(Plan)

Fiscal 2021
(Plan)

Fiscal 2022
or after(Plan)

16

2-1 Continuous Growth through a strategic partnership with
Mitsui Fudosan
Achieve continuous external growth on stable supply from Mitsui Fudosan
Solutions-based asset management

Leasing capability leveraging client network

Challenges facing logistics firms
End user

Fully leverage the Mitsui Fudosan Group’s
broad client network

Improving the efficiency ofoperations

MFLP-REIT

Addressing BCP issues, etc.

Office building businessApprox. 3,000 firms*

Retail facility businessApprox. 2,400 firms*

Strong relationships withleading 3PL operators

Logistics firm
(3PL operator, etc.)

Evolution ofsolutions-based
asset management* Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year ended March 31, 2020

Labor shortages
Anticipation of futurerises in delivery costs
Adoption of automation

Operated stably as leasing progresses
Properties defined in“Right of first look and preferential negotiation rights agreement” *Construction completed: 594,000 m2

MFLP Hino(75%)

MFLP Funabashi II

11 properties 1,100,000 m

Construction not completed: 509,000 m2

MFLP Osaka I

MFLP Tosu

NEW

NEW

MFLP Tokorozawa

MFLP Ichikawa
Shiohama II (60%)

NEW

MFLP Hiratsuka II

MFLP Yokohama Kohoku

MFLP Yachiyo Katsutadai

MFLP-REIT’s asset size

21 properties 1,260,000 m
297.6 billion yen

Location
2

2

MFLP Funabashi III

Further expansionof properties
defined in “Right offirst look andpreferential
negotiation rights
agreement”

MFLP Osaka Katano

Properties to be acquiredin the 10th FP

Developedby Mitsui Fudosan

Data center

Quality

93.1％

Continuous
external
growthMFIP Inzai II

Balance

Anticipated acquisition price15.15 billion yen※based on total floor area

* For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement”] in the Notes on Matters Stated in this Document on p. 53-54.

17

2-2 Four Roadmaps to Stable Growth and Trajectory of GrowthFiscal 2016 - Fiscal 2020

Fiscal 2021
9th fiscal
period

1st – 8th fiscal periods
1st follow-on offering
January 2018

Asset size

Acquisition withborrowed funds, etc.

August 20179 properties
75.5 billion yen

10 properties
78.7
billion yen

2nd follow-on offering
January 2019

Acquisition withborrowed funds, etc.

December 201816 properties

24.5%

98.3

103.5

18 properties

billion yen

billion yen

156.7
billion yen

205.0

282.4

billion yen

billion yen

21.6%

2nd fiscal
period

5,346
yen

yen

End of 3rd
fiscal period

22.5%

End of 4th
fiscal period

End of 5th
fiscal period

End of 6th
fiscal period

23.9%

26.8%

29.1%

3rd fiscal
period4th fiscal
period5th fiscal
period

5,563

5,832

6,105

yen

yen

yen

Market cap*
Trends for
NAV per unit*

297.6
billion yen

Aim forfurther
expansionof asset size

MFLP Ibaraki, MFIP Inzai II
Kawaguchi I

End of 2nd
fiscal period

5,198

12th fiscal period and after

Aim to acquire properties in acontinuous manner, focusedon high-quality properties
covered by “Right of first lookand preferential negotiationrights agreement”

12 properties 13 properties

End of 10th FP End of 11th FP
End of 9th(forecast)(forecast)Fiscal Period (July 31, 2021)(January 31, 2022)

End of 8th (January 31, 2021)
End of 7th
fiscal period fiscal period

27.3%

30.2%

31.0％

33.8%

7th fiscal
period8th fiscal
period9th fiscal
period10th FP(forecast)Distribution per unit (DPU)*

1st fiscal
period11th fiscal period

Acquisition with
4th follow-on
borrowed funds, etc.
offering
3rd follow-on
March 2021
September 2020
offering
20 properties 21 properties
January 2020

LTV*
End of 1st
fiscal period

10th fiscal
periodFiscal 2022 and after

End of 2nd
fiscal period
71.5

billion yen

billion yen

314,345 yen

yen

End of 3rd
fiscal period
84.4
billion yen

318,471 yen
End of 6th
fiscal period

292,424 yen

273,318 yen
End of 1st
fiscal period
76.1

6,496

6,584
yen

326,618 yen
305,914 yen

286,378 yen

6th fiscal
periodEnd of 5th
End of 4th fiscal period
fiscal period
84.7
billion yen

90.7

149.1
billion yen

End of 7th
fiscal period

198.9
billion yen

6,977
yen

7,283

7,772

yen

yen

33.2%

Fund procurement andLTV management optimalfor size of acquired assets

billion yen

Medium- to longterm stabilized
LTV level

11th FP(forecast)

7,823
yen

Continuous DPU growththrough leverage effects,
etc.

389,732 yen 389,825 yen
After352,401 yen End of 9th
acquisition of
End of 8th fiscal period MFIP Inzai II
fiscal period

254.4

40% to 50 %
range

284.0
billion yen

Expansion of market cap
through public offerings, etc.

Growthpotential

Enhancementof investment
liquidity

billion yen* For further details, please refer to [Four Roadmaps to Stable Growth and Trajectory of Growth] in the Notes on Matters Stated in this Document on p. 53-54.

18

1

2-3 Four Roadmaps to Enable Continued Stable Growth2

Expansion of Asset Size
Robust sponsor pipeline(Properties defined in “Right of first look andpreferential negotiation rights agreement”*)

11 properties
1.1 million ㎡
3 key focus points
for the portfolio:

Location
Quality
BalanceAcquire properties in prime areas;strong focus on

4th follow-on
offering
September 2020

3rd follow-on
offering
January 2020

Acquisition withborrowed funds, etc.
March 2021

20 properties

portfolio quality and stability

21 properties

18 properties
205.0

282.4
billion yen

297.6
billion yen

Medium-term
asset size target

Billion yen

500 billion yen

End of 8th
Fiscal Period

End of 9th
Fiscal Period

End of 10th FP(forecast)(July 31, 2020)(January 31, 2021)(July 31, 2021)

LTV* Management
Financial strategy withemphasis on stability
Average borrowing rate: 0.31％(as of end-9th FP)
Credit rating: AA- (outlook positive)

Leverage effect generates
growth capacityfrom low LTV level(Forecast as of end-10th FP)

33.8％

Leverage acquisition capacity*

LTV*(Forecast as of end-10th FP)

of 96 billion yen:

Continuous growth

33.8％

33.2％

End of 9th
Fiscal Period

End of 10th FP(forecast)End of 11th FP(forecast)(January 31, 2021)(July 31, 2021)(January 31, 2022)

109.0 billion yen

96.0 billion yen

98.0 billion yen

31.0％

Medium- to long-term
adjusted LTV level40 - 50％

Acquisition
capacity** For further details, please see [Four Roadmaps to Enable Continued Stable Growth] [Properties defined in “Right of first look and preferential negotiation rights agreement”] in the Notes on Matters Stated in this Document on p. 53-54.

19

2

2-3 Four Roadmaps to Enable Continued Stable Growth2ｘｘｘ

Continuous DPU* Growth
Property acquisition
at a reasonable priceDPU (yen)( ) EPU (yen)

6,977
6,496

New issuance ofinvestment units(equity)
5,198

LTV management(debt)(4,955)

FP endedJan. 2017(1st FP)

5,346(5,142)FP ended
Jul. 2017(2nd FP)

5,563(5,288)FP endedJan. 2018(3rd FP)

5,832(5,497)

FP ended
Jul. 2018(4th FP)

7,823(6,771)(6,797)

FP endingJul. 2021(10th FP)FP endingJan. 2021(11th FP)

7,283

6,584
(6,604)

6,105

7,772

(6,200)(5,783)(5,811)

FP endedJan. 2019(5th FP)FP ended
Jul. 2019(6th FP)(5,905)

FP endedJan. 2020(7th FP)FP ended
Jul. 2020(8th FP)FP endedJan. 2021(9th FP)

Mid-term

Expansion of Market Capitalization *Improved liquidity,
unit price stability
on market cap growth284 billion yen(as of End of 9th FP)

Expand investor base byadvancing ESG initiatives
through acquisition of
GRESBE certification, etc.

Market cap*

198.9
billion yen

Continuous NAV growth
NAV* per unit
389,732 yen(as of End of 9th FP)

Aim for inclusion in
major indices such as
TSE REIT Core Index

NAV
per Unit*

254.4
billion yen

284.0
billion yen

End of 7th FP(January 31, 2020)

End of 8th FP(July 31, 2020)

End of 9th FP(January 31, 2021)

326,618yen

352,401yen

389,732yen* For further details, please refer to [Four Roadmaps to Enable Continued Stable Growth] in the Notes on Matters Stated in this Document on p. 53-54.

20

2-4 External Growth Strategy [1]Stable growth leveraging the growth potential and extensive pipeline of Mitsui Fudosan’slogistics facilities business
Mitsui Fudosan’s major development/operation track record * : 47 facilities 610.0 billion yen 3,900,000 m2 in total floor area
Properties held by MFLP-REIT and properties to be acquiredin the 10th FP

Properties defined in “Right of first lookand preferential negotiation rights
agreement” *Properties developed/operatedby Mitsui Fudosan
Construction completionin fiscal 2016

Construction completionin fiscal 2022

MFLP Funabashi I

Tokyo Rail Gate EAST MFLP SHINKIBA II

Construction completionin fiscal 2019

Construction completionin fiscal 2022

Construction completionin fiscal 2023

Construction completionin fiscal 2023

75%

MFLP Yokohama
Daikoku

GLP/MFLP Ichikawa
Shiohama

MFLP Yashio

MFLP Kuki

MFLP Atsugi

MFLP Kashiwa

MFLP Fukuoka I

MFLP Hiratsuka

MFLP Inazawa

MFLP Tsukuba

MFLP Atsugi II

MFLP Sakai

MFLP Hiroshima I

MFLP Ibaraki

MFLP Kawaguchi I

MFIP Inzai

MFLP Hino

MFLP Funabashi II

MFLP Hiratsuka II

MFLP Yokohama
KohokuMFLP Osaka I

MFIP Haneda

MFLP Ebina I

MFLP HIRATSUKA III

NEW

Construction completionin fiscal 2019

Construction completionin fiscal 2022

Construction completionin fiscal 2024

MFLP Tokorozawa

MFLP Kawasaki I(Tentative) Kasuya Town MFLP EBINA MINAMI
Logistics Facility Project

MFLP Funabashi III

NEWConstruction completionin fiscal 2020

Construction completionin fiscal 2022

MFLP Osaka Katano

MFLP Tachikawa
Tachihi

MFLP Yatomi Kisosaki

NEWConstruction completionin fiscal 2022

Construction completionin fiscal 2022

MFLP Tomei Ayase

MFLP SHINKIBA I

Anotherdata center1 property

overseas
2 properties…

Property to be acquiredin the 10th FP

MFLP Tosu

60%

MFLP Funabashi
Nishiura

MFLP Komaki

MFLP Prologis Park
Kawagoe

MFIP Inzai II

MFLP Yachiyo
Katsutadai

MFLP Ichikawa
Shiohama II* For further details, please refer to [Mitsui Fudosan’s Major Development/Operation Track Record], [Properties defined in Right of first look and preferential negotiation rights agreement] in the Notes on Matters Stated in thisDocument on p. 53-54.

21

2-4 External Growth Strategy [2]Superior locations of properties defined in Right of first look and preferential negotiation rights
agreement* and developed by Mitsui Fudosan
Greater Tokyo Area

Greater Osaka Area

Metropolitan Inter-City
Expressway(Ken-O Expressway)

Hyogo
Prefecture
SaitamaPrefecture

Meishin Expressway

Shin-Meishin
Expressway
National Route 16

Second KEIHAN Road

Chugoku Expressway

MFLP Osaka
KatanoTokyo Gaikan Expressway(Gaikan Expressway)
Nishinomiya IC

MFLP
Tokorozawa

MFLP OsakaⅠ
MFLP
Yachiyo Katsutadai

Tokyo
Prefecture

Hanshin Expressway

MFLP
Ichikawa
Tokyo Station ShiohamaⅡ

MFLP
Tachikawa Tachihi
MFLP Hino

Kyoto
Prefecture

MFLP SHINKIBAⅡ

Kinki Expressway

MFLP FunabashiⅠ
MFLP FunabashiⅡ
MFLP Funabashi Ⅲ

MFLP SHINKIBAⅠ

Chiba
Prefecture

Tokyo Rail Gate EAST
MFLP
Yokohama Kohoku

Osaka
Prefecture

Hanwa Expressway

MFIP Haneda
MFLP KawasakiⅠ

Kanagawa
Prefecture

Wangan LineMFLP EbinaⅠ：Properties defined in Right of first look andpreferential negotiation rights agreement

MFLP Tomei Ayase

MFLP EBINA MINAMI
MFLP HIRATSUKAⅢ
MFLP HiratsukaⅡ

Population Density（people/k㎡）：Properties developed by Mitsui Fudosan

0～5,000

5,001～10,000

10,001～*For further details, please refer to [Properties defined in Right of first look and preferential negotiation rights agreement] in the Notes on Matters Stated in this Document on p. 53-54.
*Population distribution data based on Ministry of Land, Infrastructure and Transport’s data on Future Population Estimates by 1km mesh (2018 Estimates)22

2-5-1 Location

1

2

Build a high quality portfolio by taking advantage of area diversification
Tohoku Expressway

Metropolitan Inter-City Expressway(Ken-O Expressway)

Acquired assets
MFLP Kuki L-2

Tsukuba Chuo
IC

Kuki IC

Rampway MFLP Facilities

Shiraoka Shobu IC

MFLP Tsukuba L-12
Kanetsu Expressway

Slope MFLP Facilities

Tsukuba JCT

Saitama Prefecture
Okegawa Kitamoto IC
Joban Expressway

National Route 16
Tsurugashima JCT

MFLP Kashiwa L-7

KawagoeIC

Box MFLP Facilities

Kashiwa IC

MFLP
Tokorozawa

Tokyo Gaikan
Expressway(Gaikan Expressway)

MFIP Facilities
L-16 MFLP Prologis
Park Kawagoe

MFLP
Tachikawa Tachihi

Misato JCT

MFLP
Yashio L-4

MFLP L-19
Kawaguchi I
KohokuOizumiJCT

L-1 MFIP Inzai
Taiei JCT

Misato Minami IC

JCT

Rampway MFLP Facilities

Circular Route

Chuo JCT(tentative name)
Chuo Expressway

Hachioji IC

Ohashi JCT
Hachioji JCT

Slope MFLP Facilities

L-10 MFLP Hino

Tomei JCT(tentative name)Tokyo RailGate EASTMFLP Yokohama
KohokuMFLP Ebina I
MFLP Tomei Ayase

Mitsui Fudosan’s strategicarea

Ebina JCT

Higashi-Kanto
Expressway

MFLP
Funabashi II

Chiba
Prefecture

Ichikawa
Shiohama

MFIP
HanedaMFLP Ichikawa
Shiohama II
Tateyama Expressway

Wangan Line

Tomei Expressway

Atsugi IC

MFLP Hiratsuka II

L-1
MFLP
SHINKIBA I GLP / MFLP

Haneda Airport

L-14 MFLP Atsugi II
IseharaJCT
AtsukiMinami IC

MFLP
Funabashi I

Third Keihin Road

Kanagawa Prefecture

Isehara Oyama
JCT

MFLP
Yachiyo Katsutadai
MFLP
Funabashi III
Keiyo Road

Chidoricho IC
Kasai JCTMFLP Kawasaki I

Sagamihara
Aikawa IC

WanganIchikawa IC

Takaya JCT

MFLP
SHINKIBA IIOi JCT

L-5 MFLP Atsugi

KosugeJCT

MFLP Funabashi Nishiura
L-6
CentralTokyo

Properties developedby Mitsui Fudosan

GaikanMisato-Nishi IC

L-2 MFIP Inzai II

Properties defined in “Right of firstlook and preferential negotiationrights agreement”

Box MFLP Facilities

Soka ICMFLP EBINA MINAMI

Daikoku Futo IC

L-3 MFLP Yokohama Daikoku

MFLP HIATSUKA III
Ebina Minami JCT
Samukawa Kita IC
Samukawa
Minami IC

Kamariya JCT

Kisarazu JCT

Fujisawa IC

L-11 MFLP Hiratsuka＊After acquisition of properties to be acquired in the 10th FP

23

2

2-5-1 Location

2

Build a high quality portfolio by taking advantage of area diversification
Meishin
Expressway

Hyogo
Prefecture

L-13

Shin-Meishin
Expressway

Kusatsu JCT

MFLP Ibaraki
L -18

Takatsuki
Ibaraki- JCT
Sendaiji IC

Suita JCT

Ibaraki IC

Kobe JCT
Chugoku Expressway

L-9

MFLP
Komaki
Aichi
Prefecture

Kyoto
Prefecture

Ikeda Line

MFLP
Inazawa

MFLP Yatomi Kisosaki

MFLP Osaka
KatanoNishinomiya IC

2nd KEIHAN Road

Osaka
Prefecture(tentative name)
Kasuya Town Logistics
Facility Project

2nd Hanna Road
Hanshin Expressway

Kinki Expressway

MFLP Osaka I
Sanbo JCTMFLP Sakai L -8

L-15

Matsubara JCT

MFLP
Fukuoka I

Nishi-Meihan
Expressway

Hiroshima
Prefecture

Fukuoka
Prefecture

OkayamaPrefecture

L-17 MFLP Hiroshima I

MFLP Tosu

Hanwa Expressway

Geographically diversified portfolio

Location offering excellent access totransportation nodes

Location convenient for commuting workers

Investment Target Area

Access (Distance) to Nearest Expressway Interchange

Access (Time) to Nearest Train Station

Hiroshima Kyushu area
1.9%
area
5.4%

Greater
Nagoya area
9.1%

Shuto
Expressway
Wangan Line
12.1%
Tokyo-Gaikan
Greater Expressway
Tokyo area and 10.4%

Greater Osaka National
Route 16
area
Greater Osaka
area
30.5%

83.6%Ken-O
Expressway
18.2%

Within walking distanceBy bus(20-30 minutes) (20-25 minutes)
3.2%
2.9%

5 km or more
3.1%

12.4%

Less than
1 km
19.0%

3 km or more but
less than 5 km
41.8%GreaterTokyo area
53.1%

By bus(20 minutes
or less)
59.1%

Less than
5 km

96.9％

Within walking
distance/Within
20 min. by bus

97.1％

Withinwalking
distance(20 minutes
or less)
34.8％

1 km or more but
less than 3 km
36.1%

* The pie charts above indicate figures for the portfolio after the acquisition of properties to be acquired in the 10th FP calculated on an acquisition price basis (excluding MFIP properties).

24

2-5-2 Quality
MFLP-REIT concentrates investments in leading-edge logistics facilities with Mitsui Fudosan
quality achieved by applying Mitsui Fudosan’s expertise as a comprehensive developer
Mitsui Fudosan quality
Basic specifications of leading-edge logistics facilities
Large-sized site
[Total floor area]

Storage space
Effective ceiling heightAt least 5.5 m

At least 10,000 m2
Column spacing
At least 10 m
Floor load capacity
At least 1.5 tons/m2

MFLP SakaiHigh performance

Disaster prevention[Column spacing]
At least 10 m
[Effective ceiling height]
At least 5.5 m• Equipped with
Seismic isolation• Quake-resistant• Emergency power
generation…etc.

[Floor load capacity]
At least 1.5 tons/m2＆ Worker

Adoption of seismic
isolation

Emergency power
generator

MFLP Kashiwa

MFLP Sakai＆ Tenant

MFLP Ibaraki

Sky lounge

MFLP Hiroshima I

Unmanned store

Sky deck

Commuter shuttles＆ Community

MFLP Hiroshima I

Bicycle sharing＆ EarthMFLP Hino

MFLP Kawaguchi I

Public open space

MFLP Ibaraki

MFLP Ibaraki

Childcare facilities

MFLPKawaguchi
KawaguchiI I
MFLP

Bench that can be converted
to emergency cooking grill

MFLP Kawaguchi I

MFLP Ibaraki

Solar panels

LED lights* Photos are for illustrative purposes only. Not all MFLP facilities or portfolio assets are necessarily equipped with all of the abovementioned specifications and features. Some of the specific examples
may include features of properties not held by MFLP-REIT.

25

2-5-3 Balance
Securing growth and stability by building a balanced portfolio through acquisition of MFLPs
developed in consideration of land characteristics and tenant needs
Investment ratio: 20% or lessIndustrial real estate

Investment ratio: 80% or more
Logistics facilities
Logistics needs

Shipping needs

Storage needs

Tenant typeMulti-tenant type

Single-tenant type

Rampway MFLP

Slope MFLP
Multi

MFLP Ibaraki

SingleSingleMFLP Kawaguchi I

MFLP Fukuoka I

Multi

Multi

SingleMFLP Hiroshima I

MFLP Tsukuba

Multi

Multi

Other*1

MFLP Atsugi II

MFLP Hiratsuka

Multi

Multi

Multi
MFLP Hino

Multi
GLP/MFLP
Ichikawa
Shiohama
Multi
MFLP Yokohama
Daikoku

MFLP Inazawa

SingleMFLP Komaki

Multi
MFLP Kuki

Mainly long-term BTS type
MFIP (Mitsui Fudosan Industrial Park)Box MFLP

MFLP Prologis
Park Kawagoe

MFLP Sakai

Data centers, etc.

MFLP Yashio

BTS
MFIP Inzai II

BTS
MFIP Inzai

Investment Ratio by Property Type*2
Rampway
MFLP
45.5%

SingleInvestment Ratio by Tenant Type*2
BTS
9.2%

MFLP Kashiwa

SingleMFLP Atsugi

Box MFLP
14.8%

Slope
MFLP
30.5%

MFLP Funabashi
Nishiura
SingleData center
9.2%

Other
2.4%

Multi
67.7%
Single20.8%*1 “Other” refers to a property for which the classification (multi or single) cannot be disclosed in this material as consent for disclosure has not been obtained from the lessee.
*2 Figures for the portfolio after the acquisition of properties to be acquired in the 10th FP calculated on an acquisition price basis.

26

2-6 Internal Growth Strategy [1]Achieve stable management by leveraging Mitsui Fudosan Group’s platform and client network
Effectively leverage the Mitsui Fudosan Group’s
platform and client network in leasing

Tenant diversification
Japan Logistic Systems
Major Specialty store retailer ofPrivate label Apparel

Other

Occupied by many tenants that have a relationshipwith Mitsui Fudosan

MARUBENILOGISTICS

Lease
agreementInternational logistics firm
Rakuten
E-LogiT
Hitachi Transport System Metropolitan
JA Mitsui Leasing Tatemono
MISUMIMITSUI-SOKO LOGISTICS

End userOwner of logistics
facility

Logistics
firm

Sagawa Global Logistics

70

Nakano Shokai

Tenants *NIPPON EXPRESS
3PL
Sun Toshi Tatemono

KDDI
KOKUBU

Logistics
agencyagreement

Lease
agreement

About

Kimura Unity
Bic Camera*Tenant numbers reflect total number of leases

DAIWA Corporation

End user

Occupancy rates(3PL operator, etc.)

Status of lease agreements

(%)
100
95

Can directly approach logistics firms andend users regardless of contract type

Office building
Retail facility
Strong relationships
business clientbusiness clientwith leading 3PL
network
network
operators
Approx. 3,000 firms* Approx. 2,400 firms**Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year
ended March 31, 2020

100

100

100

100

100

100

99.1

100

90
85
80

Fully leverage the Mitsui Fudosan Group’s broad client network

100

Jan. 31,2017

Jul. 31,2017

Jan. 31,2018

Jul. 31,2018

Jan. 31,
2019

Jul. 31,2019

Jan. 31,
2020

Jul. 31,2020

Jan. 31,
2021

Average lease
period *7.4 years

Remaining lease
contract period *3.8 years

Staggering of contract expiration periods

40.6%

21.2%
0%
10th FP
ending2021/07

11th FP
ending2022/01

7.7%

7.8%

9.0%

12th FP
ending2022/07

13th FP
ending2023/01

14th FP
ending2023/07

1.0%

2.6%

15th FP
ending2024/01

16th FP
ending2024/0710.2%
17th FP
ending2025/01

18th FP or
after* The graphs above show figures based on leased areas stated in lease agreements concluded as of January 31, 2021 after acquisition of properties
to be acquired in 10th fiscal period.
Tenant diversification excludes MFIP.
* For details of calculation, please refer to [Internal Growth Strategy] in the Notes on Matters Stated in this Document on p. 53-54.

27

2-6 Internal Growth Strategy [2]Steady internal growth through evolution of solutions-based asset management and maintenanceof relationships with tenants over the medium- to long-term
Strengthening capability to propose specialized solutions that
respond to the needs of tenants

Key points of asset management plans
Challenges facing logistics firms
Labor shortages

Addressing BCP
issuesMFLP ICT LABO 2.0

Improving the efficiency
of operations

30 types of leading-edge logistics
automation equipment andsystems, including handlingrobots, on display (first standing
display of its kind in Japan).
Proactively contributing to helping
existing and prospective tenants
address challenges such as labor
shortages by providing
specialized solutions that reducelabor or automate processes

End user

MFLP-REIT

Logistics firm
(3PL operator, etc.)
Anticipation of futurerises in delivery costs

Specific examples ofsolutions-based asset
management by
Mitsui Fudosan GroupEnd user
Adopting
automation● Consulting service for leading-edge ICT-related
products for improving efficiency, labor-saving, etc.
● Consulting support to help tenant companies secure
staff● Matching of 3PL operators and end users● Establishment of comfortable working environment for
tenants’ onsite employees

Initiatives for improving the satisfaction of tenant companies
and employees
MFLP-REIT implements various measures to improve customer satisfaction
based on survey feedback. In addition, MFLP-REIT improves tenant employee
satisfaction by creating a comfortable working environment and contributes tosecuring human resources.

Examples of equipment on display

Autonomous
forklift

Receiving,dispatching

Dual-arm packing& unpacking robot

Packing

Autonomous
storage system

Storing

Concluded business alliance with
Hacobu with an aim to improvethe delivery environment such as
the shortage of drivers and low
loading ratio on trucks.

Policy for future internal growthThanks party

Customer satisfaction
surveyUnmanned store

Negotiation of rent increase throughcontract renewal, etc.

Reduction of utility expenses throughrevision of supply agreement28

2-7 Financial Strategy [1]Financial management with an emphasis on stability
Status of borrowing and LTV *Credit rating assignment

End of 9th fiscal
periodEnd of 10th FP(forecast)End of 11th FP(forecast)

88.3 billion yen

99.9 billion yen(5.9 billion yen)

(2.5 billion yen)

97.4 billion yen

LTV

31.0％

33.8％

33.2％

Average time to maturity(long-term only)

5.8 years

5.6 years

5.1 years

Average interest rate

0.31%

-

-

Ratio of fixed (long-term)
borrowings

93.3％

97.5％

100％

Total interest-bearing debt
(of which, short-term)

Credit rating outlook upgraded fromstable to positive in November 2020
Credit rating
agencyJapan Credit Rating
Agency, Ltd.
(JCR)

Rating details

Long-term issuer rating:AA-

OutlookPositive* As of the end of each period

Lender formation and Investment Corporation Bonds
Initiated new relationships with 6 financial institutions in acquiring MFLP Ibaraki, Kawaguchi I, making further progress on creditor diversification and further
enhancing a robust lender formation. Issued 1st Investment Corporation Bond (Sustainability Bond) in February 2021, further diversifying sources of funds

After new borrowing
associated with acquisitionof MFIP Inzai II
Total lenders: 22
Total borrowings¥100.9bn(Includes Investment
Corporation Bonds)

Sumitomo Mitsui Banking Corporation

14.2 ％The 77 Bank

2.7 ％Sumitomo Mitsui Trust Bank

9.7 ％The Chiba Bank

2.5 ％MUFG Bank

9.5 ％Sumitomo Life Insurance Company

1.8 ％The Bank of Fukuoka

8.9 ％Nippon Life Insurance Company

1.5 ％Mizuho Bank

8.7 ％The Hyakugo Bank

1.0 ％Shinkin Central Bank

8.5 ％The Chugoku Bank

1.0 ％The Norinchukin Bank

5.6 ％Daishi Hokuetsu Bank

1.0 ％Mizuho Trust & Banking

5.4 ％The Joyo Bank

1.0 ％The Yamaguchi Bank

3.9 ％The Yamanashi Chuo Bank

1.0 ％Development Bank of Japan

3.1 ％The Bank of Kyoto

0.5 ％Mitsui Sumitomo Insurance

3.0 ％Investment Corporation Bonds

3.0 %Shinsei Bank

2.8 ％

NEW

New

29

2-7 Financial Strategy [2]Financial management with an emphasis on stability
Interest-bearing debt maturity ladder
In consideration of future financing risk, expand total commitment line to 8,000 million yen, diversify maturities for interest-bearing debt

10,000(million yen)

8,000

■Existing borrowing ■New borrowing ■Investment corporation bonds

Commitment line 8,000 million yen

6,000

2,200

4,000
2,000
0

5,600
3,500

1,900

3,400

2,000

6,600
4,000

3,000 3,600

5,600 5,100 5,700
2,100

3,100

3,300 7,500

500
6,700

7,800

4,400

4,500

1,800

3,000

3,200

800

FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending ending
Jul. 2021 Jan. 2022 Jul. 2022 Jan. 2023 Jul. 2023 Jan. 2024 Jul. 2024 Jan. 2025 Jul. 2025 Jan. 2026 Jul. 2026 Jan. 2027 Jul. 2027 Jan. 2028 Jul. 2028 Jan. 2029 Jul. 2029 Jan. 2030 Jul. 2030 Jan. 2031 Jul. 2031 Jan. 2032 Jul. 2032

N.B. Debt maturity ladder after reflecting borrowings associated with the acquisition of MFIP Inzai II on Mar. 16, 2021

Efficient cash
management

Based on the characteristics of logistics facilities, such as the ratio of building value to land value being typically high, MFLP-REIT intends to makecash distributions, including distributions in excess of earnings, on an ongoing basis each fiscal period from a perspective of securing stable
distribution levels while managing cash efficiently. In addition, in cases where the distribution amount for distributions per unit is expected totemporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units, etc., a oneoff distributions in excess of retained earnings may be executed in order to standardize the amount of the distributions per unit.

Diagram of cash distribution based on FFO
Leasingbusiness
expenses,
SG&A, etc.
Rentalrevenue

Level of distribution
Pay distributions based on a
threshold of approx. 70% of FFO

For the time being, we intend to pay distributions (including distributions in excess of earnings) calculated at
an amount equivalent to approximately 70% of FFO (excluding gain or loss on sale of real estate, etc.) for
the relevant fiscal period on an ongoing basis, in principle.

Securing long-term building maintenance funds

FFO

Distributions in excess of earnings will be paid to the extent that an amount can be retained that is more thandouble the six-month average of capital expenditures stated in the engineering report for each operating
period.

Depreciation
Distributions inexcess of earnings

Profit(Net income)*

Key points of cash distribution in excess of earnings

Distributionsof earnings

Targeted
at 70%* Gain or loss on sale of real estate, etc. is not included in “Profit (Net income)” in the above chart.

Securing financial stability
Distributions in excess of earnings will not be made if appraisal LTV ratio * exceeds 60% for each operating
period.
* Appraisal LTV ratio = Interest-bearing debt ÷ (Total assets - Book value of portfolio real estate, etc. + Appraisal value)30

3. ESG Initiatives

31

3-1 Initiatives of Mitsui Fudosan Group
Group Vision 「of the environment」: Contribute to social and economic development, and preservation

Promoting ESG management
Based on the ideals of coexisting in harmony with society, linking diverse values and achieving a sustainable society as symbolized by
its 「 」 logo, the Group is working to build societies that enrich people’s lives and our planet. Under the 「」 byword, theMitsui Fudosan Group manages its businesses with an awareness of its responsibilities with regard to ESG. MFLP-REIT and theasset management company share the sponsor’s ESG management principles and are proactively implementing initiatives.

Materiality and priority goals in
Mitsui Fudosan Group’s
LT Vision: VISION2025
１

Establish ultra-smart societies by creatingneighborhoods

２

Achieve a society where a diverse workforce can thrive

Major ESG targets (KPI)*
 GHG emissions reductions (vs. FY2019)(SBT initiative certification pending)

by FY2030 -30％ → by FY2050 -100％*For further detail on initiatives please refer to the ESG Report on Mitsui Fudosan’s website
https://www.mitsuifudosan.co.jp/corporate/esg_csr/kpi/index.html

３ Achieve health, safety and security in people’s daily lives
４

Create new industries through open innovation

５

Reduce environmental impact and generate energy

６

Continuously improve compliance and governance

Climate change initiatives and reducing theenvironmental burden Signatory to the UN Global Compact
Signed the UN Global Compact（UNGC）in December 2018, in support of the
10 principles relating to human rights, labor, the environment and anti-corruption

 Affiliation with RE100

Building a Sustainable Society Driving
continual profit growth

In February 2020, became a member of RE100, a global initiative committed toutilizing 100% renewable energy for business operations

 Support TCFD (Task Force on Climate-related Financial Disclosures)
In February 2020 declared support for the disclosure of associated risks andopportunities regarding climate change proposed by the Task Force on Climaterelated Financial Disclosures, TCFD

32

3-2 Initiatives of MFLP-REIT and Asset Management Company– ESG Promotion Framework

Establish internal structure to promote ESG
Policy for ESG Initiatives

Internal structure to promote ESG

Mitsui Fudosan Logistics REIT Management, asset management company
for MFLP REIT, set out a policy for ESG in November 2017 and is focused on
addressing ESG issues on a daily basis, in collaboration with Mitsui Fudosan

Based on its ESG Policy, the asset management company set up an internal
structure to promote environmental and social issues. The Sustainability
Promotion Committee is led by the President, with the CIO and head ofFinance Department as permanent members

ESG Policy
1. Consideration and response to the environment

Main agenda items for Sustainability
Promotion Committee

Environment（1）Energy saving and the reduction of CO2 emissions（2）Conservation of the water resources and promotion of・ Sustainability vision, strategies and organization
・ Sustainability policies and targets

resource saving and waste reduction

・ Participation, support for environmental organizations（3）Utilization of green building certification systems

Social

2. Consideration and response to society（1）Respect for human rights

・ Content of sustainability disclosures
・ Execution of ESG/SDGs financings, etc.

（2）Initiatives to enhance comfort, safety and security（3）Consideration for local communities（4）Initiatives for officers and employees

Establish Sustainability Finance Framework（5）Sustainable procurement

Set up Sustainability Finance Framework in January 2021 to handle
sustainability financings such as issuance of sustainability bonds. Goingforward, will undertake reporting for sustainability financings

3. Consideration and response to governance

Governance（1）Compliance with laws and regulations（2）Information disclosure to unitholders, etc.
（3）Building of appropriate relations with interested parties
including the sponsor

Reporting content

Funding status

Improved
environmental
impactSocialcontributions

Change infunding status33

3-3 Initiatives of MFLP-REIT and Asset Management Company – Topics
Recent developments at MFLP-REIT and asset management company
Issued sustainability bond (1st Investment Corporation Bond)

COVID-19 infection prevention measures

Issued 1st sustainability bond that addresses green and social issues. Strong
demand from investors proactive on ESG issues.

Measures implemented in properties
As part of facility operations, implement infection prevention measures
which give users a continued sense of security

Eligible assets for investment
MFLP Ibaraki

Eligible Green
Project Criteria

Eligible Green Project Criteria

MFLP Ibaraki
CASBEE Osaka-fu：Rank A
MFLP Kawaguchi I
CASBEE Saitama-ken：Rank S
BELS：5 Stars

Thorough disinfection

Temperature
readings

Reminders to avoid
the 3Cs

Avoid crowding atlunch hour

Measures implemented at asset management company
Eligible Social Project Criteria

MFLP KawaguchiⅠ

Eligible Social
Project Criteria
Eligible Green
Project Criteria

MFLP Kawaguchi I
Related to land acquisition/development from
Kawaguchi City, achieve the following
・Contribute to industry in Kawaguchi
・Provide disaster prevention services to local
residents
・Provide recreational space

Sustainability bonds

Declaring investors（Japanese syllabary order）
・Aoi Mori Shinkin Bank・The Kita Osaka Shinkin Bank・The TAKAMATSU SHINKIN BANK
・Chugoku Labour Bank・GUNMAMIRAI Shinkumi Bank ・Tokio Marine Asset Management Co., Ltd.
・Nagano Shinkin Bank・The SAGAMI Shinkin Bank・The Sawayaka Shinkin Bank・Shizuoka Yaizu Shinkin Bank・Manulife General AccountPreventative measures to protect employees in the work place
Off-peakcommutingTelework

Plastic screens

Onlinemeetings

ESG training seminars
To raise employee awareness of ESG/SDGs at asset managementcompany, have held a series of ESG training seminars. In January 2021,
held session led by invited external expert

Conduct employee satisfaction survey
To improve the working environment, asset management company
conducted an employee satisfaction survey in February 2021
SurveyAggregate/
analyze

Work place
improvements

Devise measures

Investments (Singapore) Pte. Ltd.
・The Yokohama Shinkin Bank34

3-4 Initiatives of MFLP-REIT – for Environment

Environment

Implementing initiatives for the preservation of the environment
Initiatives for reducing environmental load

Eco-friendly green buildings

MFLP-REIT has implemented efforts to reduce CO2 emissions throughenergy saving while promoting efficient use of energy at its portfolio assets
by measures like introducing LED lights and installing roof-top solar panels.

MFLP-REIT has a track record of acquiring CASBEE, DBJ Green Building
Certification and BELS for the properties below. MFLP Sakai has received the
Osaka Ecofriendly Construction Award. MFLP-REIT proactively incorporates
environmentally conscious green buildings.

LED lights

Solar panels

Environmental
certifications acquired

85.0%*（based on No. of properties)* Based on 20 properties owned as of the end of January 2021

MFLP KawaguchiⅠ

Multiple properties whereinterior lighting has been
converted to LEDs

MFLP Ibaraki

Multiple properties with large-scaleroof-top solar panel installations toleverage renewable energy

Evaluation/Award history, etc.

Property name

MFLP Kuki

CASBEE (Real estate) Rank S
CASBEE (New construction) Rank A
CASBEE (New construction) Rank A

MFLP Yokohama Daikoku

DBJ Green Building Certification 5 Stars

GLP/MFLP Ichikawa Shiohama

MFLP Yashio

Power generation facilities using solar panels (2020 Actual)
Annual power generation
Number of properties

11 properties

18 GWh** For further details, please refer to [Annual Power Generation by Solar Panel] in the Notes on Matters
Stated in this Document on p. 53-54

Introduction of Green Leases
To further enhance portfolio environmental contributions, MFLP will introduce
green lease clauses in new contracts after April 2021.
The introduction of green lease clauses is an initiative aimed at promoting
environmentally friendly property operations through the joint efforts of MFLPREIT and its tenants, and is designed to involve tenants in promoting ESG
initiatives

CASBEE (New construction) Rank A* CASBEE Kanagawa Rank A

MFLP Atsugi

DBJ Green Building Certification 4 Stars
CASBEE (New construction) Rank A

MFLP Funabashi Nishiura
MFLP Kashiwa

MFLP Komaki

CASBEE (New construction) Rank A
CASBEE (New construction) Rank S
FY2015 Osaka Eco-friendly Construction Award(Commerce, other category)* CASBEE Aichi Rank A

MFLP Hiratsuka* CASBEE Kanagawa Rank A

MFLP Sakai

CASBEE (New construction) Rank A

MFLP Inazawa* CASBEE Aichi Rank A

MFLP Atsugi II* CASBEE Kanagawa Rank A

MFLP Fukuoka I

MFLP Hiroshima I

CASBEE (New construction) Rank A
CASBEE (New construction) Rank A
BELS 5 Stars* CASBEE Hiroshima Rank A

MFLP Ibaraki* CASBEE Osaka-fu Rank A

MFLP Kawaguchi I* CASBEE Saitama-ken Rank S, BELS 5 Stars

MFLP Prologis Park Kawagoe* Evaluation based on the local government notification system.

35

3-5 Initiatives of MFLP-REIT – for Society

SocialProactive measures for the benefit of stakeholders
Utilizing the know-how of Mitsui Fudosan, the sponsor, the properties owned by MFLP-REIT promote initiatives to offer a healthy, pleasant and safe environment out ofconsideration for stakeholders such as tenants, facility users, the surrounding environment and local communities.

Providing a comfortable working environment

Initiatives for security and safety

In response to the needs of the logistics
industry, established 24-hour unmanned shops
in the facilities for the convenience of users
Unmanned store

Adoption of seismic
isolation

Created rest spaces that leverage local scenery
to enhance user satisfaction and promote longterm tenant retention

Adopted seismic isolation technology to not
only ensure the safety of users in the event ofa large-scale earthquake but also mitigate theimpact on goods stored

Emergency power backup capacity enabled
for a maximum of 72 hours in the event of
power failure, contributing to both BCP andsafety in the facilities during a blackout

Sky deck

Emergency power
generator

Initiatives for local communities

Initiatives for tenants
Provide shuttle buses for the convenience ofcommuting users. Also contributes to easing
crowding in local public transport

Supporting local communities in the event ofdisasters by securing designation as disasterevacuation sites from municipalities
Designated as a tsunami
evacuation site

Commuter shuttles

Provide expert solutions in automation andlabor-saving equipment to prospective MFLP
tenants

Provide child-rearing support for both users
and neighboring families by building child carefacilities on siteChildcare facilities

ICT LABO 2.0*Photos are for illustrative purposes only. Not all MFLP facilities or portfolio assets are necessarily equipped with all of the abovementioned specifications and features. Some of the specific examples may include features of properties
not held by MFLP-REIT.

36

3-6 Initiatives of MFLP-REIT – for Governance

GovernanceInitiatives for governance with consideration for unitholders’ interests
MFLP-REIT and the Asset Management Company are working to establish proper governance through the following measures in order to build a solid relationship oftrust that aligns interests of unitholders with those of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

Asset management with emphasis placed on relationshipof trust with unitholders

Rules concerning conflicts of interestin asset management

Asset management fee structure consistent with the interests ofunitholders

The acquisition and transfer of assets by MFLP-REIT from relatedparties are decided by the Asset Management Company via atransparent decision-making process.

Our aim is to align the interests of the Asset Manager with those of unitholders.

Draft by the Investment Team

Deliberation and resolution by the Compliance Committee*2

Examination and approval by the Investment Committee

Instruction to cancel or amend details

Approval by the Chief Compliance Officer

Approval by MFLP-REIT’s Board of Directors

Deliberation and resolution by the Management Committee

Instruction to cancel
or amend details

Submission of the acquisition plan by the Chief Investment
Office Officer to the Management Committee

Reporting to the Board of Directors and MFLP-REIT*1 The above chart shows the decision-making flow when a transaction involves a related party, which requires theapproval of MFLP-REIT’s Board of Directors under Article 201-2 of the Act on Investment Trusts and Investment
Corporations.
*2 If a transaction prescribed in Article 201-2 of the Act on Investment Trusts and Investment Corporations falls under
the criteria for insignificance defined therein, the approval of MFLP-REIT’s Board of Directors shall be omitted.

Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

Operating income (before deduction of asset
management fees and depreciation) × 5.5%
(maximum)

Asset management fee III

Pre-tax earnings (before deduction of asset
management fees) × Pre-tax EPU (before
deduction of asset management fees) × 0.001%(maximum)Same-boat investment in MFLP-REIT by Mitsui Fudosan
MFLP-REIT receives investment in capital from Mitsui Fudosan.
Receiving certain investment in capital leads to alignment of the interestsof MFLP-REIT’s unitholders and Mitsui Fudosan, and asset managementthat pursues mutually greater interests.
The same-boat investment ratio is 5.3%.

Timely and proper information disclosure and ensuringtransparency
MFLP-REIT strives to make timely and proper disclosure of informationnecessary for unitholders to make investment decisions. Upon disclosure,
MFLP-REIT promotes prompt and transparent information disclosure tosecure fairness and equality as well as disclosure of both financial
information and non-financial information concerning ESG.

37

4. Market Overview

38

4-1 Market Overview [1]Supply-demand balance and vacancy rate
[1 of 3]
Greater Tokyo Area

: New supply in 2019 and 2020

: Vacancy rate 0–5%

: Submarket areas: New demand in 2019 and 2020

: Vacancy rate 5–10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–= 100 thousand m2

Forecast*As of the end of December 2020

thousand m2

15%

3,500
3,000

12%

2,500
2,000

9%

1,500

6%

Tohoku/Ken-O Expwy
area

Metropolitan Inter-City
Expressway(Ken-O Expressway)

MFLP Kuki

Tsukuba Chuo IC

Kuki IC

1,000

3%

500
0

Tohoku Expressway

0%2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022(year)

Shiraoka Shobu IC

SaitamaPrefecture

OkegawaKitamoto IC

Kan-Etsu/Ken-O Expwy
area
Tsurugashima JCT

National Route 16

Tokyo-Gaikan Expwy
area

Kanetsu
Expressway
KawagoeIC

MFLP Kashiwa

Soka
IC Gaikan Misato
Nishi IC

18%

Hachioji area

MFLP Tachikawa
Tachihi

Hachioji IC

900

12%

600

MFLP Atsugi

6%

300

0.4%
0.4%

0

MFLP Hino

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

0%

2020年

2019年

Sagamihara
Aikawa IC

Kanagawa
PrefectureNew
demandVacancyrate

Samukawa- Fujisawa
Minami ICIC

Misato Minami IC

CentralCircular RouteMFIP InzaiⅡ

Daiei JCT

MFLP
Yachiyo Katsutadai
MFLP Funabashi
Nishiura

MFLP
Funabashi Ⅲ

Higashi-Kanto
WanganIchikawa IC
Expressway
TakayaJCT
Keiyo Road
Chidoricho IC
Ohashi JCT
Kasai JCT
Chiba
Tomei JCT(tentative name) MFLP SHINKIBAⅡ
inland area
MFLP SHINKIBAⅠ GLP / MFLP
MFLP FunabashiⅡ
Chiba
Ichikawa
Oi JCT
Tokyo Rail Gate
Shiohama
Prefecture
MFLP FunabashiⅠ
EAST
MFLP Ichikawa
MFIP Haneda
ShiohamaⅡ
Daisan Keihin
Road
Haneda Airport
MFLP Yokohama
KohokuMFLP KawasakiⅠ
Tateyama Expressway

MFLP Ebina Ⅰ
MFLP Tomei Ayase
MFLP AtsugiⅡ
Tomei Expressway
Atsugi IC
Daini Tomei Expressway
MFLP EBINA MINAMI
Ebina JCT
Isehara
MFLP HIRATSUKAⅢ
Oyama IC Isehara
Ebina Minami JCTJCT
MFLP HiratsukaⅡ
Samukawa kita IC
MFLP HiratsukaNew
supplyKanagawa
inland area

MFIP Inzai

MFLP
Kawaguchi I

OizumiJCT

Chuo JCT
Chuo Expressway (tentative name)

Hachioji JCT

Narita area

Misato JCT
MFLP Yashio

1200

Joban
Expressway

Kashiwa IC
Tokyo Gaikan Expressway(Gaikan Expressway)

Tokyo
Prefecture

Tsukuba JCT

MFLP Tokorozawa

MFLP Prologis
Park Kawagoe

thousand m2

MFLP Tsukuba

National Route16 area

KamariyaJCT

Wangan Line
Daikoku Futo IC
MFLP Yokohama
Daikoku
Kisarazu JCT

Greater Tokyobay area

Vacancy rate
(Completion over 1 year)* Source: CBRE K.K. (including forecast figures) *As of December 2020
* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000m2 or more.

39

4-1 Market Overview [1]Supply-demand balance and vacancy rate
[2 of 3]
Greater Osaka Area

: New supply in 2019 and 2020

: Vacancy rate 0–5%

: Submarket areas: New demand in 2019 and 2020

: Vacancy rate 5–10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–= 100 thousand m2

Forecast

thousand m2

2,000*As of the end of December 2020

15%
12%

1,500

9%

Other area

1,000
6%
500

Meishin Expressway

Osaka inland area

3%

0

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (year)

Shin-Meishin
Expressway
Kobe JCT

Ibaraki-Sendaiji IC
Takatsuki JCT

MFLP Ibaraki

Chugoku Expressway

Ibaraki IC

Suita JCT

2nd KEIHAN
Road

MFLP Osaka Katano
thousand m2

Nishinomiya IC

750

18%

MFLP OsakaⅠ

Hanshin Expressway
Kobe Line

Kinki Expressway
500

12%

Sanbo JCT

Matsubara JCT

MFLP Sakai
Osaka bay/
Kobe area
250

6%

2nd Hanna
Road

Hanshin Expressway
Wangan Line

Nishi-Meihan
Expressway

Osaka
Prefecture

2.5%
1.0%
0

Q1

Q2

Q3

Q4

Q1

2019

New
supply

Q2

Q3

Q4

0%

Hanwa
Expressway

2020

New
demandVacancyrate

Vacancy rate
(Completion over 1 year)* Source: CBRE K.K. (including forecast figures) *As of December 2020
* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000㎡ or more.

40

4-1 Market Overview [1]Supply-demand balance and vacancy rate
[3 of 3]
Greater Nagoya Area

New supply

New demand

Forecast

2,000

10%

1,000

400

500

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

300

10%

0%

thousand m2

5%

100
0

(year)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

500

10.0%

0%

250

6.4%

16%

14%

14%
100

12%

10%

10%

8%

8%

6%

50

6%

4%

4%

2%
Q1

Q2

Q3

Q4

Q1

2019

Q2

Q3

Q4

0%

0

MFLP Inazawa

Q2

Q3

2019

2020

MFLP Komaki

0.0%
Q1

80%

150

60%

100

40%

50

20%

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

0%
(year)

thousand m2
18%

150

16%
12%

Forecast

200(year)

thousand m2
18%

750

: Mitsui Fudosan’s strategic areas

thousand m2
15%

200
5%

2010

Vacancy rate
(Completion over 1 year)

Hiroshima Area
Forecast

thousand m2
15%

1,500

0

Vacancy rate

Kyushu Area

thousand m2

0[Legend]

Q4

Q1

Q2

Q3

2020

(tentative name)
Kasuya Town Logistics
Facility Project

MFLP
FukuokaⅠ

Q4

100

18%
16%
14%

75

12%
10%

50

8%
6%

25

2.3%

0%

4%
2%

2%
0

Q1

Q2

Q3

Q4

Q１

2019

Q22

Q3

Q4

0%

2020

OkayamaPrefecture
Fukuoka
Prefecture

Hiroshima
Prefecture

MFLP Tosu
Aichi
Prefecture

MFLP
HiroshimaⅠ

MFLP Yatomi Kisosaki* Source: CBRE K.K. (including forecast figures) *As of December 2020
* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000㎡ or more.

41

4-1 Market Overview [2]Stock of logistics facilities in Japan

Future demand for
replacement of aging
properties(As of December 2019)

40%

600

35%
30%

500

million m2

Logistics facilities
40 years old or older
37.2%

Leading-edge
logistics facilities
5.2％

700

Highly scarceleading-edge
logistics facilities

25%
400
20%
300
15%
200

Logistics facilities
less than 40 years old
57.6%

Long-term data on construction starts of logistics facilities (nationwide)

10%

100

5%

0

0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (year)
Estimatefor logistics facilities
築40年以上の推計値
40 years old or older

Estimate for logistics facilities
築40年未満の推計値

Leading-edge(left axis)
axis)
(left
先進的物流施設

築40年以上のシェア
Shareof logistics facilities
40 years old or older

Share of leading-edge logistics
先進的物流施設シェア(right axis)

Tenants/End users of logistics facilities
Other 4%
Manufacturing
2%
Wholesale 8%
Share by tenantbusiness type10,0005,000
0Other 8%Logistics 4%Manufacturing24%

15,000Share byend userbusiness
type

Retail 46%

Retail 17%
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

thousand m2

facilities* Estimates by CBRE K.K. based on “Building Starts” (Ministry of Land, Infrastructure, Transport and Tourism) and “Summary
Report on Prices, etc. of Fixed Assets” (Ministry of Internal Affairs and Communications).
For details, please refer to “About analysis of Japan’s logistics facilities stock” on p. 53-54 of this presentation material.

Over 40 years old
20,000logistics facilities

less than 40 years old(year)
Source: CBRE K.K.
* Figures calculated as the sum total of the floor area of structures with “warehouse” as the use category and “steel-framed structure,”“reinforced concrete structure” or “steel-framed reinforced concrete structure” as the structure type.

Logistics 69%
Source: CBRE K.K.

Wholesale 18%* Figures are rounded to the whole number.
* The survey is of rental logistics facilities that are held by real estate investment companies, real estate development
companies, etc. and have total floor area of 5,000 m2 or more as of the end of December 2020.

42

4-1 Market Overview [3]Mounting demand due to 3PL business ande-commerce market size expansion

Broader demand for leading-edge logistics facilities

Expansion of the data center market

3PLMarket with Stable Growth

Attracting Delivery Bases of Retail Stores(Convenience Stores/Drug Stores)

Sales of Cloud-related Services in the Data
Center Service Market
Annual average
growth rate(hundred million yen)
35,000Conventional
Net sales

3.2 trillion yen

Manufacturing

Store

Wholesaler(2019-2024 years)(billion yen)
1,500

18.6%

Forecast

30,000Consolidation of scattered logistics bases into a delivery center
25,000

1,000

After
consolidation

20,000Store

Delivery center

Manufacturing500

15,00010,000Integrating Logistics Bases of Manufacturers
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0(year)

Conventional

Source: Monthly Logistics Business(September 2020)

Warehouse for Transportparts(hundred million yen)
210,000

180,000

After
consolidation

19.4 trillion yen
Scale of e-commercemarketConsolidation of separately locatedwarehouse for parts, assembly plant andwarehouse for end products into one base
MFLP

2020

2021

2022

2023

2024 (year)

Source: International Data Corporation Japan; “Outlook for Domestic Data Center
Service Market (2020 – 2024)”, dated August 2020.

end products

Retail stores /Consumers

Expanding E-Commerce Market Scale

Transport Warehouse for Transport

Assembly plant

2019

Sales Breakdown of the Data Center
Service Market (2024 Projections)

Transport

(%)

6.8%

8

Non-cloud-related
services

Use as a Mixed-Use Logistics Facility

E-commerce ratio

Leading-edge logistics facilities

634%

150,000
4

Warehouse

120,000

Its intended use includes not only
warehouse, which is its original function,
but also other various uses

2
90,00060,00002010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Assembly andprocessing

Research anddevelopment

OfficeCloud-related
services

66%

Showroom(year)

Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade andIndustry (Announced on July 22, 2020)• Amounts and percentages indicate the scale of B to C market in the e-commercemarket.
The target of the calculation of e-commerce ratio is limited to the sales field.

Other
Product inspection

Inspection,
maintenance and repair

Photographic
studioCall center

Source: International Data Corporation Japan; “Outlook for Domestic Data Center
Service Market (2020 – 2024)”, dated August 2020.

etc…

43

5. Appendix

44

Our Portfolio (After acquisition of properties to be acquired in the 10th FP)
Total acquired assets

Adjusted forecast NOI yield*

21 properties 297.6 billion yen

5.0% (after depreciation: 3.4%)

Category

Appraisal NOI / Appraisal value*

Average

4.4%

Average building age*

Occupancy rate*

4.8 years

100%

Adjusted Appraisal Appraisal
NOI /Total floor area*1
NOI yield*
forecast(m2)
NOI yield* (/Acquisition Appraisal
value* (%)
price)(%)(%)

Building
age*(year)

Occupancy
rate*
(%)

105,019（52,509)

7.0

100

4.6

73,153

6.6

100

5.0

4.6

100,530（50,265)

11.8

100

5.3

5.2

4.4

40,728

6.9

100

9,250

5.6

5.5

4.6

40,942

5.9

100

6,970

7,990

5.3

5.2

4.5

30,947

6.0

100

Kashiwa,
Chiba

6,300

7,180

5.1

5.2

4.5

31,242

5.2

100

MFLP Sakai

Sakai, Osaka

23,60024,700

5.4

4.7

4.5

125,127

6.4

100

L-9

MFLP Komaki

Komaki, Aichi

8,260

8,730

5.1

4.9

4.6

40,597

4.0

100

L-10

MFLP Hino(25% quasi co-ownership interest)

Hino, Tokyo

12,533

12,900

4.5

4.3

4.2

205,200(51,300)

5.3

99.9

L-11

MFLP Hiratsuka

Hiratsuka,
Kanagawa

7,027

7,580

4.9

4.8

4.5

33,061

4.2

100

L-12

MFLP Tsukuba

Tsukubamirai,
Ibaraki

8,781

10,300

6.1※2
（5.8）

5.8

37,0274.9

10.6

25,4572.8

Propertyno.

Property nameLocation

L-1

GLP/MFLP Ichikawa Shiohama(50% quasi co-ownership interest)

Ichikawa,
Chiba

15,50018,350

5.1

4.7

4.0

L-2

MFLP Kuki

Kuki, Saitama

12,50014,500

5.8

5.3

L-3

MFLP Yokohama Daikoku(50% quasi co-ownership interest)

Yokohama,
Kanagawa

10,10011,0005.1

L-4

MFLP Yashio

Yashio,Saitama

9,650

11,500

L-5

MFLP Atsugi

Aiko,
Kanagawa

7,810

L-6

MFLP Funabashi Nishiura

Funabashi,
Chiba

L-7

MFLP Kashiwa

L-8

Logistics
facilities

Existing building
Annex building

Acquisition price Appraisal value*(million yen)(million yen)

100

45

Our Portfolio (After acquisition of properties to be acquired in the 10th FP)
Category

Logistics
facilities

Property no.

Property nameLocation

Acquisition price(million yen)Appraisal value*(million yen)

Adjusted Appraisal Appraisal
NOI /Total floor area*1
NOI yield*
forecast(m2)
NOI yield* (/Acquisition Appraisal
value*(%)
price)(%)(%)

Building
age*(year)

Occupancy
rate*
(%)

L-13

MFLP Inazawa

Inazawa,
Aichi

16,20017,000

5.2

4.8

4.6

72,883

3.7

100

L-14

MFLP Atsugi II

Isehara,Kanagawa

13,10013,900

4.9

4.6

4.3

48,976

2.8

100

L-15

MFLP Fukuoka I

Kasuya,Fukuoka

5,263

5,600

5.6

5.1

4.8

32,199

4.3

100

L-16

MFLP Prologis Park Kawagoe(50% quasi co-ownership interest)

Kawagoe,
Saitama

14,80015,600

4.9

4.5

4.3

117,337（58,668）

2.3

100

L-17

MFLP Hiroshima I

Hiroshima,
Hiroshima

14,48015,100

5.4

5.1

4.9

68,4271.4

100

Ibaraki,Osaka

58,90060,100

4.6

4.2

4.1

230,435

3.4

100

Kawaguchi,
Saitama

18,50019,000

4.4

4.1

4.0

49,8381.3

100

Subtotal or Average-

270,274

290,280

5.0

4.7

4.4

1,509,135(1,193,790)

4.8

100

MFIP Inzai

Inzai,
Chiba

12,22012,800

5.0

5.0

4.7

40,478

6.9

Not
disclosed

MFIP Inzai II

Inzai,
Chiba

15,15015,200

4.7

4.7

4.7

27,2680.7

100

Subtotal or Average-

27,37028,000

4.9

4.8

4.7

67,746

4.4

Not
disclosed

Total or Average-

297,644318,280

5.0

4.7

4.4

1,576,881(1,261,537)

4.8

100

270,274

290,280

5.0

4.7

4.4

1,509,135(1,193,790)

4.8

100

282,494

303,080

5.0

4.7

4.4

1,549,613(1,234,269)

4.9

100

L-18
L-19

I-1
Industrial realestateMFLP Ibaraki
MFLP Kawaguchi I

Properties to be acquired in the 10th FP

I-2

Reference: As of end of 9th fiscal period
Logistics facilities (Property no. L-1 to L-19)

Total (Property no. L-1 to L-19, I-1)

Subtotal* For further details, please refer to [Our Portfolio (After acquisition of properties to be acquired in the 10th FP)] in the Notes on Matters Stated in this Document on p. 53-54.
*1 “Total floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*2 The annex building at MFLP Tsukuba qualifies for partial reduction or exemption of fixed asset tax and city planning tax until 2021. The adjusted forecast NOI yield after the end of this tax reduction or exemption treatment
is expected to be 5.8%.

46

Individual Property Income Statement for 9th Fiscal Period(Unit: million yen)
MFLP
Kuki

MFLP
Yokohama
Daikoku

MFLP
YashioMFLP
Atsugi

184

184

184

184

184

Lease
business
revenue

452

436

322

753

354

429

457

1,095

7,757

Other leasebusiness
revenue

36

35

15

60

27

20

29

34

381

488

472

337

813

382

449

486

1,130

8,139

Outsourcing
expenses

34

31

29

26

33

58

Utilityexpenses

19

26

12

18

18

21

Repairexpenses

3

2

12

12

4

0

2

3

38

42

39

16

38

0

0

0

2

2

1

3

1

1

2

76

99

105

95

-

-

-

-

130

-

97

-

-

-

-

-

48

56

160

-

-

1,412

80

108

87

63

63

50

50

198

88

86

51

95

181

113

56

107

132

282

62

97

2,059

309

258

154

196

154

133

120

484

121

198

119

174

235

202

93

294

296

687

223

208

4,667

389

366

241

259

218

183

170

683

210

285

170

269

417

316

150

401

429

969

285

306

6,727

Number of days ofasset management

Operatingrevenuefrom realestateleasing

Total

Operatingexpensesfrom
real
estateleasing

Propertyrelated taxes

Other
expenses

Total

Depreciation
Operating income(loss) from real estateleasing
NOI from real estateleasing[Operating income (loss)
from real estate leasing +Depreciation])

MFLP
MFLP
Funabashi
Kashiwa
Nishiura

MFLP
MFLP
MFLP
MFLP
Prologis
Hiroshima
Atsugi II Fukuoka I
ParkI
Kawagoe

GLP/MFLP
Ichikawa
Shiohama

184

184

Not
Not
Not
Not
discloseddiscloseddiscloseddisclosed

*

*

*

*

MFLP
Sakai

MFLP
Komaki

MFLP
Hino

184

184

184

62
35

Not
disclosed

*

35
16

MFLP
MFLP
Hiratsuka Tsukuba

184

184

MFLP
Inazawa

184

184

184

184

Not
Not
Not
Not
Not
discloseddiscloseddiscloseddiscloseddisclosed

*

*

*

184

MFLP
Ibaraki

MFLP
Kawaguchi
I

MFIP
Inzai

Total

118

118

184

-

*

*

Not
Not
disclosed disclosed

*

*

477
271
65
489

108

＊ Not disclosed, because consent has not been obtained from the lessee.

47

Appraisal Summary for the End of 9th Fiscal Period(Unit: million yen)
Acquisitiondate

Acquisition
price

End of 9th
fiscal period
Book value

GLP/MFLP Ichikawa Shiohama (50%)

September 2016

15,500End of 8th fiscal period*2(End of Jul. 2020) (a)Change(b)-(a)End of 9th fiscal period(End of Jan. 2021) (b)Main factors of change

Appraisal
value

CR*1

Appraisal
value

CR*1

Appraisal
value

CR*1

CR*1

Other

14,891

17,9504.0%

18,350

3.9%

400

- 0.1

〇

〇

MFLP Kuki

August 2016

12,50011,64414,3004.5%

14,500

4.4%

200

- 0.1

〇

〇

MFLP Yokohama Daikoku (50%)

August 2016

10,100

9,735

10,900

4.4%

11,000

4.3%

100

- 0.1

〇

〇

MFLP Yashio

August 2016

9,650

9,171

11,2004.3%

11,500

4.2%

300

- 0.1

〇

〇

MFLP Atsugi

August 2016

7,810

7,302

9,160

4.5%

9,250

4.4%

90

- 0.1

〇

〇

MFLP Funabashi Nishiura

August 2016

6,970

6,561

7,910

4.4%

7,990

4.3%

80

- 0.1

〇

〇

MFLP Kashiwa

4.5%

7,180

4.4%

60

- 0.1

〇

〇

August 2016

6,300

5,908

7,120

MFLP Sakai

August 2016

23,60023,162

24,2004.5%

24,700

4.4%

500

- 0.1

〇

〇

MFLP Komaki

August 2017*3

8,260

7,781

8,580

4.6%

8,730

4.5%

150

- 0.1

〇

〇

MFLP Hino (25%)

February 2018*3

12,533

12,217

12,6004.2%

12,900

4.1%

300

- 0.1

〇

〇

MFLP Hiratsuka

March 2018

7,027

6,796

7,150

4.5%

7,580

4.4%

430

- 0.1

〇

〇

8,781

8,605

10,100

4.9%

10,300

4.8%

200

- 0.1

〇

-

*3

MFLP Tsukuba

December 2018

MFLP Inazawa

February 201916,20015,63816,6004.6%

17,000

4.5%

400

- 0.1

〇

〇

MFLP Atsugi II

February 201913,10012,762

13,6004.3%

13,900

4.2%

300

- 0.1

〇

〇

MFLP Fukuoka I

February 2019*3

5,263

5,099

5,430

4.8%

5,600

4.7%

170

- 0.1

〇

〇

MFLP Prologis Park Kawagoe (50%)

February 2020

14,80014,716

14,8504.3%

15,600

4.2%

750

- 0.1

〇

〇

MFLP Hiroshima I

March 2020

14,48014,40514,8004.9%

15,100

4.8%

300

- 0.1

〇

-

MFLP Ibaraki

October 2020

58,90058,857（59,200）（4.2%）

60,100

4.0%

900

- 0.2

〇

〇

MFLP Kawaguchi I

October 2020

18,50018,536（18,600）（4.0%）

19,000

3.9%

400

- 0.1

〇

〇

MFIP Inzai

August 2016*3

12,22011,85012,8004.6%

12,800

4.6%

0

0.0

-

-

275,645219,250（297,050）

4.5%（4.4%）

303,080

4.3%

6,030

- 0.1

-

-

15,200

4.0%

-

-

-

-

Total/average-

282,494

Amount of difference =Unrealized gain 27,484 million yen

Reference (as of March 12, 2021) *4

MFIP Inzai II

March 2021
(planned)

15,15015,150--Total/average after acquisition ofproperties to be acquired in the 10th
297,644
290,795
318,280
4.3%
FP*1 CR = Capitalization rate based on direct capitalization method (NCF basis). The average indicates a weighted average based on the appraisal value.
*2 Appraisal value and CR as the appraisal date are indicated in parenthesis for properties acquired in the 9th FP (MFLP Ibaraki, MFLP Kawaguchi I) at the end of the 8th FP.
In the total/average column, the appraisal value which is the sum of the figures at the end of the 8th FP and the said figures, and the weighted average CR based on the appraisal value are indicated in parenthesis.
*3 The acquisition periods of “MFLP Komaki”, “MFLP Hino”, “MFLP Tsukuba”, “MFLP Fukuoka I” and “MFIP Inzai” are divided into multiple periods, but the initial acquisition dates (Komaki: upon acquisition of 40% quasi co-ownership interest, Hino: upon acquisitionof 15% quasi co-ownership interest, Tsukuba: upon acquisition of 60% quasi co-ownership interest, Fukuoka I: upon acquisition of 81% quasi co-ownership interest, Inzai: upon acquisition of 20% quasi co-ownership interest) are indicated.
*4 Book value at the end of 9th fiscal period as of March 12, 2021 indicates planned acquisition price; and appraisal value at the end of 9th fiscal period indicates appraisal value and CR with January 31, 2021, as the date of value.

48

Statement of Income and Balance Sheet
Statement of income

Balance sheet(Unit: million yen)

Item

Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative
service fees
Directors’ compensations
Other operating expenses
Operating income
Non-operating income
Non-operating expenses
Interest expenses
Amortization of investment unit
issuance expenses
Offering costs associated withissuance of investment units
Other
Ordinary income
Profit before income taxes
Income taxes
Profit (Net income)Unappropriated retained earnings

8th fiscal period(ended Jul. 31, 2020)
Actual9th fiscal period(ended Jan. 31, 2021)
Actual

6,363
6,110
253
3,482
2,816
584

8,139
7,757
381
4,353
3,471
788

25

29

5
50
2,881
40
186
81

5
57
3,786
12
217
119

33

43

27

44

43
2,735
2,735
0
2,734
2,734

9
3,580
3,580
0
3,579
3,579

(Unit: million yen)
Item

Current assets
Cash and deposits
Cash and deposits in trust
Consumption taxes receivable
Other current assets
Non-current assets
Property, plant and equipment
Other non-current assets
Deferred assets
Total assets
Current liabilities
Operating accounts payable
Short-term borrowings
Accounts payable
Income taxes payable
Advances received
Other current liabilities
Non-current liabilities
Long-term borrowings
Tenant leasehold and security
deposits in trust
Total liabilities
Total unitholders’ equity
Unitholders’ capital
Deduction from unitholders’capitalUnitholders’ capital, net
Surplus
Total net assets
Total liabilities and net assets

9th fiscal period
8th fiscal period(ended Jul. 31, 2020) (ended Jan. 31, 2021)
ActualActual

8,249
1,460
4,089
2,540
158
199,863
199,79072
131
208,243

9,306
619
5,923
2,655
108
275,722275,65072
175
285,205

7,013
220
5,000
675
0
1,116
0
62,20357,900

8,791
422
5,900
947
0
1,516
4
88,66582,400

4,303

6,265

69,216
139,026
137,143

97,457
187,747
185,362- 851-1,193

136,292
2,734
139,026
208,243

184,168
3,579
187,747
285,205

49

Distribution after Adjustment of Temporary Effects
The right chart is a graph which shows the comparison of the estimatedvalues of distribution after adjustment of temporary effects estimated bymaking the following adjustments based on the forecasted figures for the
10th fiscal period (ending July 2021)and 11th fiscal period (ending January2022) announced on March 12, 2021.
1. As for the property leasing business revenues and property leasing
business expenses for the anticipated acquisition in the 10th FP (MFIP
Inzai II), it is assumed that full-period operation will be implemented in the10th fiscal period (ending July 2021).
2. It is assumed that property-related taxes including fixed asset tax and city
planning tax for the anticipated acquisition in the 10th FP (MFIP Inzai II)
will occur from the beginning of the 10th fiscal period (ending July 2021),
and that 28 million yen will be recorded as expenses in the 10th fiscal
period (ending July 2021) and 11th fiscal period (ending January 2022).
3. The interest expenses of borrowings which fluctuate due to the adjustmentof the management period of the anticipated acquisition in the 10th FP(MFIP Inzai II) have been added to non-operating expenses.
4. Expenses linked to factors such as operating income and profit (netincome) which fluctuate due to the above adjustments.
As a specific example, it is assumed that management fee will increaseby 11 million yen in the 10th fiscal period (ending July 2021) anddecrease by 6 million yen in the 11th fiscal period (ending January 2022).
5. With the exception of the property expected to be acquired in the 10th
fiscal period (MFIP Inzai II), no adjustments have been made to existing
portfolio properties.
Moreover, such DPU after adjustment of temporary effects (estimate) does not aim toestimate distributions for a specific calculation period, and does not have the meaning
as the forecast of distributions, etc. during a specific calculation period. DPU after
adjustment of temporary effects (estimate) is not an indicator stipulated in thecorporate accounting standards (“Japanese GAAP”) which is generally accepted inJapan, and shall not be taken into consideration as an alternative indicator of otherindicators indicated in conformity with the Japanese GAAP. Furthermore, DPU after
adjustment of temporary effects does not guarantee whether or not distribution will bemade in the future as well as the amount of such distribution in any sense. Please
note that the actual DPU during the calculation period for the 10th fiscal period(ending July 2021) and 11th fiscal period (ending January 2022) may differ
significantly from the DPU after adjustment of temporary effects (estimate).

FP ending July 2021(10th FP)
Forecasted DPU, etc.

FP ending January 2022 (11th FP)
Forecasted DPU, etc.

(yen)
8,000

7,772

7,846

7,823

7,795

After
adjustment of
temporaryeffects

Forecast
madethis timeAfteradjustment of
temporaryeffects

7,500
7,000
6,500
6,000
5,500
5,000
0
4,500

Forecast
madethis time*Revenue in even periods and odd periods differ due to seasonal factors. Moreover, the difference of rent forphotovoltaic power generation facilities, which is the main seasonal factor, between the 10th fiscal period(ending July 2021) and 11th fiscal period (ending January 2022) is assumed to be approximately 54 million yen.

50

Investment Unit Price Trends/Status of Unitholders
Investment unit price firm since IPO(yen)

Investment unit price (closing price)
TSE REIT Index (indexed)

610,000
560,000
510,000
460,000
410,000
360,000
310,000

IPO issue price: 270,000 yen
260,000
210,000
160,000/08/02 2016/10/31
2016/7/31

2017/1/31

2017/4/30

2017/7/31

2017/10/31

2018/1/31

2018/4/30

2018/7/31

2018/10/31

2019/1/31

2019/4/30

2019/7/31

2019/10/31

2020/1/31

2020/4/30

2020/7/31

2020/10/31

2021/1/31* The starting point is the price of the first trade at IPO on August 2, 2016.
* The TSE REIT Index is indexed to the August 2, 2016 opening price.

Status of unitholders at end of 9th fiscal period (end of January 2021)
Number of Unitholders and Number of Investment Units
by Type of Unitholder
Number ofunitholders

% of
total

Number ofinvestment units

Major Unitholders

% of
total

Number ofinvestment units

% of
total

Individuals/Other

7,608

92.2%

26,745 units

4.9%

The Master Trust Bank of Japan, Ltd. (trust account)

101,325 units

18.7%

Financial institutions

153

1.9%

293,439 units

54.1%

Custody Bank of Japan, Ltd. (trust account)

67,960 units

12.5%

Other Japanese
corporations

219

2.7%

34,381 units

6.3%

Mitsui Fudosan Co., Ltd.

28,900 units

5.3%

Non-Japanese

253

3.1%

178,616 units

33.0%

26,237 units

4.8%

Securities companies

20

0.2%

8,819 units

1.6%

24,305 units

4.5%

Total

8,253

100.0%

542,000 units

100.0%

248,727 units

45.9%

The Nomura Trust and Banking Co., Ltd.
(Investment Trust Account)
Custody Bank of Japan, Ltd.
(securities investment trust account)
Total

51

Mitsui Fudosan’s Major Development / Operation Track Record
Fiscal yearofcompletion

Fiscal 2013

Fiscal 2014

Propertydeveloped/operated
MFLP Yokohama
Daikoku
GLP/MFLP Ichikawa
Shiohama

Fiscal 2019

● (50%)

Fiscal yearofProperty developed/operated
completion－

Total floor area

Acquisition by
MFLP-REIT(planned)

Properties defined in“Right of first look andpreferential negotiationrightsagreement”/Acquisition
under exclusive
negotiation*

MFLP Tachikawa Tachihi

55,094m2－－

MFLP Osaka I

43,919m2－●● (50%)－MFLP Yachiyo Katsutadai

75,823m2－●

MFLP Yashio

40,728m2●－

MFLP Tosu

35,274m2－●

MFLP Kuki

73,153m2●－

MFIP Inzai II

27,268m2●－

MFLP Sakai

125,127m2●－

MFLP Tokorozawa

21,823m2－

MFLP Funabashi
Nishiura

30,947m2●－

MFLP Funabashi III

268,392m2－

MFLP Atsugi

40,942m2●－

MFLP Osaka Katano

72,827m2

－

NEW

●

MFIP Inzai

40,478m2●－

MFLP Ichikawa Shiohama II

183,991m2－

NEW●（60%）－－

Fiscal 2020

Fiscal 2021

NEW

●
●

MFLP Hino

205,200m2● (25%)● (75%)MFLP Tomei Ayase

Approx.
58,700㎡

MFLP Kashiwa

31,242m2●－

Tokyo Rail Gate EAST

174,404m2－－

MFLP Funabashi I

197,746m2

－

－
－

－

32,199m2●－

MFLP Fukuoka I
MFLP Hiratsuka

33,061m2

●

－

－

－

MFLP Komaki

40,597m2●－

MFLP Yatomi Kisosaki－－

MFLP Inazawa

72,883m2●－

MFLP SHINKIBA I－－

MFLP Ibaraki

230,435m2●－

MFLP Tsukuba

62,484m2

●

－

－

－

MFLP Atsugi II

48,976m2

●

－

－

－

MFLP Prologis Park
Kawagoe

117,337m2● (50%)－

Approx.
122,200 ㎡
Approx.
36,100㎡
Approx.
99,000㎡
Approx.
9,500㎡
Approx.
28,500㎡
Approx.
29,100㎡
Approx.
37,600㎡－－

MFIP Haneda

80,334m2

－

－

－

－

－

MFLP Hiroshima I

68,427m2

●

－

－

－

－

MFLP Funabashi II

227,003m2－●

MFLP Kawaguchi I

49,838m2●－

MFLP Hiratsuka II

48,141m2－●

MFLP Yokohama
Kohoku45,512m2－●*1 In the case of MFLP Yokohama Daikoku, it is the fiscal year in which the property began to be under its operation.
The fiscal year of completion of the property is fiscal 2009. The fiscal year of completion of the existing building of
MFLP Tsukuba is fiscal 2010.

MFLP Kawasaki I

49,801m2－－*2 The percentage figure in parentheses is the percentage of quasi co-ownership interest in the portfolio asset.

Fiscal 2016

Fiscal 2018

100,530m2

Properties defined in“Right of first look andpreferential negotiationrightsagreement”/Acquisition
under exclusive
negotiation*

105,019m2

Fiscal 2015

Fiscal 2017

Total floor area

Acquisition by
MFLP-REIT(planned)＊

MFLP Ebina I
FY2022(tentative) Kasuya Town
Logistics Facility Project

MFLP SHINKIBA II
FY2023
MFLP HIRATSUKA III
FY2024

MFLP EBINA MINAMI

TBD

another data center(1 property)
other overseas
properties (2 properties)* For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights
agreement] [Major properties developed/operated by Mitsui Fudosan] in the Notes on Matters Stated in thisDocument on p. 53-54.

52

Notes on Matters Stated in This Document* Unless otherwise specified, figures indicated in whole numbers are rounded down to the nearest specified unit and figures with a decimal point are rounded to the nearest indicated unit.
* Unless otherwise specified, descriptions are made based on the following.
[Properties defined in “Right of first look and preferential negotiation rights agreement”]“Properties defined in “Right of first look and preferential negotiation rights agreement” refers to properties on the list of right of first look and preferential negotiation properties pertaining to real estate subject to provision of information, presented basedon the Right of first look and preferential negotiation rights agreement executed between the Asset Management Company and Mitsui Fudosan upon the Asset Management Company managing MFLP-REIT’s assets. “Real estate subject to provision of
information” refers to, among real estate, etc. held by Mitsui Fudosan or a real estate fund which accepted investment or monetary contribution of Mitsui Fudosan, those which are judged to have the possibility to be sold to MFLP-REIT at Mitsui
Fudosan’s discretion.
The (number of) subject properties and ratio/total floor area indicate figures after considering co-ownership interest (or quasi co-ownership interest).
[Highlights] / [Four Roadmaps to Stable Growth and Trajectory of Growth] / [Four Roadmaps to Enable Continued Stable Growth] / [Internal Growth Strategy] / [Our Portfolio (After acquisition of properties to be acquired in the 10th FP)]“LTV”
LTV = Balance of interest-bearing debt ÷ Total assets“Distribution per unit (DPU) ”
Includes distribution in excess of earnings. (Number of investment units issued and outstanding: 224,000 units at the end of the 1st/2nd/3rd fiscal periods / 262,774 units at the end of 4th and 5th fiscal periods / 379,000 units at the end of 6th and 7th fiscal
periods / 441,000 units at the end of 8th fiscal period / 542,000 units at the end of 9th/10th/11th fiscal periods)“Occupancy rate”
Leased area as a percentage of leasable area. Based on concluded agreements as of January 31, 2021.
“Appraisal NOI yield”
Ratio of net operating income under direct capitalization method stated in real estate appraisal report (“Appraisal NOI”) to acquisition price. “Average NOI yield” and subtotal (average) and total (average) for each category indicate the weighted averagebased on acquisition price.
“Appraisal NOI / Appraisal value”
Appraisal NOI divided by appraisal value. The subtotal (average) and total (average) of “Appraisal NOI / Appraisal value” for each category indicate the weighted average based on the appraisal value.
“Adjusted forecast NOI yield”
Annualized after subtracting the fixed asset tax and city planning tax for the properties to be acquired in the 10th fiscal period from the NOI assumed in the earnings forecast for the 10th and 11th fiscal periods as well as adjusting special factors, anddividing it by the total acquisition price.
Subtotal (average) and total (average) for each category indicate the weighted average based on acquisition price.
“Building age”
Number of years from the date of construction of the main building of a property acquired in the register to January 31, 2021.
“Average building age” and subtotal (average) and total (average) indicate the weighted average based on the total floor area, considering the quasi co-ownership interest of each property.
“Calculation of remaining lease contract period”"Average lease term" is calculated using the average of the remaining period in the lease terms after January 31, 2021, based on the concluded lease agreements as of January 31, 2021.
Concerning the subject lease agreements, when a new lease agreement ("re-contract") is concluded with the same lessee, the remaining period shall be calculated assuming that the lease period continues from the day immediately following the
expiration date of the previous contract to the expiration date of the re-contract.
“Calculation of average lease term”"Average lease term" is calculated using the average of the lease terms stated in concluded lease agreements as of January 31, 2021 weighted by the leasable floor area.
Concerning the subject lease agreements, when a re-contract starting on the day immediately following the expiration date of the respective lease agreement is concluded with the same lessee, the lease term is deemed to be from the start of the initiallease agreement to the expiration date of the re-contract, and used in the calculation as such.
“Total floor area”
Figures based on the record on the register, rounding down to the nearest whole number.
“Appraisal value”
Appraisal values corresponding to the quasi co-ownership interest ratio of each property with January 31, 2021 (end of 9th FP), as the appraisal date are indicated. Figures as of end of 8th FP use July 31, 2020 as price date and considers the quasi
co-ownership interest of each property.
“Top 5 tenant ratio (logistics facilities only)”
The total leased area of top five tenants as a percentage of the total leased area.
“NAV per unit”“End of FP ended January 2020 (End of 7th FP)”: (Net assets as of the end of FP ended January 2020 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended January 2020) / Number of investment units
issued and outstanding (379,000 units)“End of FP ended July 2020 (End of 8th FP)”: (Net assets as of the end of FP ended July 2020 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended July 2020) / Number of investment units issued andoutstanding (441,000 units)“End of FP ended January 2021(End of 9th FP”: (Net assets as of the end of FP ended January 2021 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended January 2021) / Number of investment units
issued and outstanding (542,000 units)“After acquisition of MFIP Inzai II”: (NAV as of the end of FP ended January 2021 (End of 9th FP) + Unrealized gain on appraisal basis of properties to be acquired in 10th FP (*) / Number of investment units issued and outstanding (542,000 units)*Unrealized gain on appraisal basis of properties acquired in 10th FP: (total) Appraisal value of properties to be acquired in 10th FP – (total) Acquisition price of properties to be acquired in 10th FP.
Calculation of NAV as of the end of each fiscal period based on net assets as of the end of each FP and unrealized gain on appraisal basis less total distribution amount divided by number of investment units issued and outstanding.

53Notes on Matters Stated in This Document“Acquisition capacity”
Amount of debt that can be additionally financed supposing that LTV is raised to 50%. The amount indicated is rounded to the nearest billion yen.
“Unrealized gain”
A period-end book value is indicated for properties held by MFLP-REIT as of the end of 9th FP, and a figure obtained by subtracting the total of acquisition prices from appraisal value is indicated for properties acquired in the 10th FP.
“Market cap”
FP ended January 2020 (End of 7th FP):
Closing price of the investment unit as of the end of the FP ended January 2020 (525,000 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended January 2020 (379,000 units)
FP ended July 2020 (End of 8th FP):
Closing price of the investment unit as of the end of the FP ended July 2020 (577,000 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended July 2020 (441,000 units)
FP ended January 2021 (End of 9th FP):
Closing price of the investment unit as of the end of the FP ended January 2021 (524,000 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended January 2021 (542,000 units).
Market cap as of end of each FP calculated using closing price at end of FP multiplied by number of investment units issued and outstanding as of the end of each FP.

[Method of calculation of cash distribution based on FFO]
(1) Distribution of earnings is determined based on profit (net income) for the applicable operating period.
(2) FFO for the applicable operating period is calculated by adding depreciation to profit (net income) (excluding gain or loss on sale of real estate, etc.) for the applicable operating period.
(3) The amount distributable including distribution in excess of earnings is calculated based on a threshold of an amount equivalent to 70% of FFO for the applicable operating period.
(4) The amount distributable in excess of earnings is calculated by deducting the amount of distribution of earnings (excluding gain or loss on sale of real estate, etc.) from the amount distributable including distribution in excess of earnings.
(5) The amount of continuous distribution in excess of earnings is determined based on a comprehensive judgment on the basis of the amount distributable in excess of earnings.
(6) The distribution in excess of earnings determined in 5. above is to be continuously made each fiscal period in principle, in addition to the distribution of earnings determined in 1. above.
In addition, in cases where the distribution amount for distributions per unit is expected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units, etc., a one-off distribution
in excess of retained earnings may be executed in order to standardize the amount of the distributions per unit.

[Major properties developed/operated by Mitsui Fudosan]
Based on materials released by Mitsui Fudosan on November 5, 2019 and March 4, 2021 Indicates the area recorded in the property registry or the certificate of completion for completed properties, the area stated on the building confirmation
certificate for uncompleted properties that are properties defined in “Right of first look and preferential negotiation rights agreement,” and the area stated in the material published by Mitsui Fudosan for all other properties. The area for uncompleted
properties is the planned area and is subject to change.
“Cumulative total investment size” includes properties under development or scheduled to be developed as of each date of publication and their (planned) investment amount. Properties scheduled to be developed include those targeted or plannedby the Mitsui Fudosan Group as of the date of this document and are subject to change or cancellation.
Furthermore, there are no details concerning the timing of completion of the aforementioned investments that had been finalized as of the date of this document. Nor does MFLP-REIT guarantee or promise that the plans be materialized.
“Tokyo Rail Gate EAST” is included in terms of the number of facilities and total floor area, but not in term of the amount. Mitsui Fudosan has no plans to acquire the property as of the date of this document.
[Annual Power Generation by Solar Panel]
Actual power generated between January and the end of December 2020 at 11 properties with photovoltaic panel facilities and owned by MFLP-REIT as of January 31, 2021, is indicated.
The total power generation amount of the entire properties is indicated regardless of ownership ratio held by MFLP-REIT.
[About analysis of Japan's logistics facilities stock]① The "Analysis of Japan's logistics facilities stock" graph is of estimates by CBRE K.K. based on the Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism's "Building Starts" and the Ministry of Internal Affairs andCommunications' "Summary Report on Prices, etc. of Fixed Assets."② In the "Analysis of Japan's logistics facilities stock" graph, "Leading-edge logistics facilities" is the figure of each year's sum total of the gross floor area of leading-edge logistics facilities (refers to rental logistics facilities that have gross floor areaof at least 10,000 m2 and, in principle, ceiling height of at least 5.5 meters, floor load capacity of at least 1.5 tons/m2 and column spacing of at least 10 m).
③ In the "Analysis of Japan's logistics facilities stock" graph, "Estimate for logistics facilities 40 years old or older" is the figure of each year's overall stock estimate (as covered by note 5; the same shall apply hereinafter) minus the sum total of thefloor area of which construction was started within the past 40 years.
④ "Estimate for logistics facilities less than 40 years old" is the figure of the overall stock estimate minus the floor area of "Estimate for logistics facilities 40 years old or older" and "Leading-edge logistics facilities."⑤ The overall stock estimate is the sum total of "Estimate for logistics facilities 40 years old or older," "Estimate for logistics facilities less than 40 years old" and "Leading-edge logistics facilities."⑥ In the "Analysis of Japan's logistics facilities stock" graph, "Share of leading-edge logistics facilities" is each fiscal year's "Leading-edge logistics facilities" expressed as a percentage of the overall stock estimate (gross floor area basis).
⑦ In the "Analysis of Japan's logistics facilities stock" graph, "Share of logistics facilities 40 years old or older" is each fiscal year's "Estimate for logistics facilities 40 years old or older" expressed as a percentage of the overall stock estimate (grossfloor area basis).
⑧ "Gross floor area" is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed to be completed after one year has elapsed from construction
start. Accordingly, gross floor area may not match the floor area on the building confirmation certificate, construction completion drawing or register.

54

Disclaimer
This document is provided solely for informational purpose with regard to Mitsui Fudosan Logistics Park Inc. (MFLP-REIT) and is not intended to serve as an
inducement or solicitation to trade in any product offered by MFLP-REIT.
Purchase, sale and such of MFLP’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 MFLP-REIT’s investment units or investment corporation bonds. This document should not beinterpreted as constituting disclosure documents or asset management report required under Financial Instruments and Exchange Act or the Act on Investment
Trusts and Investment Corporations.
Concerning the information provided in this document, although MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. make every effort to provide
correct information, its accuracy, adequacy or completeness are not guaranteed regardless of the information being prepared by MFLP-REIT and Mitsui Fudosan
Logistics REIT Management Co., Ltd. or being received from third-parties.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking statements presented by
MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co., Ltd. according to assumptions or judgement based on information available on the date of thisdocument (the date if specified otherwise in the document). Forward-looking statements are based on assumptions such as the investment policy of MFLP-REIT,
applicable laws and regulations, market environment, interest rate environment, business practice and other facts as of the preparation date of this document, anddo not reflect or consider changes in situations after the preparation date. Forward-looking statements include, explicit or implied, uncertainties of existing risks,
unknown risks and other factors, and may materially differ from actual performance, business results, financial status and such of MFLP-REIT.
The content of this document is subject to change or repeal without prior notice. MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. are under noobligation to update or publicly disclose the content of this document (including forward-looking statements).
Duplication or reproduction of any content presented in this document without the prior consent of MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co.,
Ltd. is strictly prohibited.

55