5th Fiscal Period
Asset Management Report

Mitsui Fudosan Logistics Park Inc.
6-8-7 Ginza, Chuo-ku, Tokyo

From: August 1, 2018
To: January 31, 2019

I.

To Our Unitholders
First of all, I would like to convey my sincere appreciation to you, our unitholders, for your continued support of Mitsui Fudosan
Logistics Park Inc. (MFLP-REIT).
The Japanese economy has been continuing to grow at rates exceeding its potential growth rate against the backdrop ofaccommodative financial conditions and support from government cash injection, as overseas economies continue with steady
growth rates. In addition, capital investment has increased with corporate profits and business sentiment both maintaining an
increasing trend and private consumption has also been gradually increasing backed by improvement in the employment and income
situation. In the logistics market, with the 3PL business specializing in outsourced logistics services expanding in market size andthe needs of 3PL providers for rental of multifunctional and highly-convenient logistics facilities on the rise, the demand for leadingedge logistics facilities is expected to continue to increase.
Under such circumstances, MFLP-REIT, which listed on the Tokyo Stock Exchange Real Estate Investment Trust (REIT) Market
on August 2, 2016, has ended its 4th fiscal period in July 2018 with smooth sailing. In addition, in February 2018, MFLP-REIT
carried out its first capital increase through public offering since its listing.
This is entirely due to the support of our unitholders, and for this I would like to express my heartfelt gratitude.
Going forward, I ask our unitholders for their continued support and cooperation, as MFLP-REIT will continue its operation withthe aim of boosting unitholder value.

-2-II. Asset Management Report
1. Overview of Asset Management(1) Management and other performance highlights of the investment corporation
5th period
3rd period
1st period
4th period
2nd period(From August 1,(From August 1,(From March 4,(From February(From February
2018
2017
2016
1, 2018
1, 2017
to January 31,
to January 31,
to January 31,
to July 31, 2018)
to July 31, 2017)
2019)
2018)
2017)

Fiscal period(millions of yen)

3,280

3,148

2,629

2,548

2,383

(millions of yen)

[3,280][3,148][2,629][2,548][2,383](millions of yen)

1,720

1,650

1,390

1,367

1,075

(millions of yen)

[1,338][1,306][1,086][1,071][801]

Operating income(millions of yen)

1,560

1,498

1,239

1,181

1,307

Ordinary income(millions of yen)

1,520

1,445

1,185

1,152

1,111

Net income(millions of yen)

1,519

1,444

1,184

1,151

1,110

Total assets(millions of yen)

104,591

100,250

79,86878,811

81,698(%)[4.3][25.5][1.3][(3.5)][―](millions of yen)

73,39073,40359,43459,44759,460[(0.0)][23.5][(0.0)][(0.0)][―](millions of yen)

28,00024,00018,00017,00020,000(millions of yen)

71,87071,95858,25058,29658,350(units)262,774

262,774

224,000

224,000

224,000(yen)

279,292

279,340

265,334

265,392

265,449

Net income per unit (Note 5)

(yen)

5,783

5,499

5,287

5,141

9,017

Total amount of distributions(millions of yen)

1,604

1,532

1,246

1,197

1,164

(yen)

6,105

5,832

5,563

5,346

5,198

(yen)

[5,783][5,497][5,288][5,142][4,955]

(yen)

[322]

[335]

[275]

[204]

[243]

(%)

1.5

1.6

1.5

1.4

1.5

[Annualized] (Note 7)

(%)

[2.9]

[3.2]

[3.0]

[2.9]

[2.9]

Return on equity (Note 6)

(%)

2.1

2.2

2.0

1.9

1.9

[Annualized] (Note 7)

(%)

[4.1]

[4.4]

[4.0]

[3.9]

[3.8]

Equity ratio at end of period (Note 6)

(%)

70.2

73.2

74.4

75.4

72.8

[Period-on-period change](%)[(3.1)][(1.2)][(1.0)]

[2.7]

[―]

Payout ratio (Note 6)

(%)

100.0

100.0

100.0

100.0

100.0

(days)

184

181

184

181

183

(properties)

13

12

10

9

9

(%)

100.0

100.0

100.0

100.0

100.0

(millions of yen)

772

744

595

560

553

(millions of yen)

36

46

10

10

2

(millions of yen)

2,715

2,587

2,138

2,037

2,135

(millions of yen)

2,292

2,189

1,780

1,713

1,663

FFO per unit (Note 6)

(yen)

8,722

8,331

7,947

7,651

7,426

Ratio of interest-bearing debt to total
assets at end of period (LTV ratio)

(%)

26.8

23.9

22.5

21.6

24.5

Operating revenues[Of which: Property
business revenues]

leasing

Operating expenses[Of which: Property
business expenses]

leasing[Period-on-period change]
Net assets[Period-on-period change]
Interest-bearing debt
Unitholders’ capital, net(Note 4)
Total number of investment units
issued and outstanding
Net assets (Net asset value (NAV))
per unit

Distribution per unit
[Of which: Distribution of
earnings per unit][Of which: Distribution in excess
of retained earnings per unit]
Ratio of ordinary income to total
assets (Note 6)(%)

Other reference information
Number of days of asset management
during period (Note 8)
Number of investment properties at
end of period
Occupancy rate at end of period(Note 9)Depreciation and amortization (Note10)
Capital expenditures
Net operating income (NOI) fromproperty leasing (Note 6)
Funds from operations (FFO) (Note6)-3-

(Note 6)(Note 1) The operating periods of the investment corporation MFLP-REIT are six-month periods every year from February 1 to the last day of July andfrom August 1 to the last day of January in the following year. However, the first operating period (1st fiscal period) is from MFLP-REIT’s
establishment date (March 4, 2016) to the last day of January 2017.
(Note 2) Operating revenues, etc. do not include consumption taxes.
(Note 3) Unless otherwise specified, any numerical figures are rounded down to the nearest specified unit and percentage figures are rounded to the firstdecimal place.
(Note 4) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 5) “Net income per unit” is calculated by dividing net income by the daily weighted average number of investment units. Diluted net income perunit is not stated because there are no dilutive investment units.
(Note 6) The following formulas are used in calculations.
Ratio of ordinary income tototal assets

Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
Total assets at beginning of period for the 1st fiscal period is using total assets as at the starting date of
MFLP-REIT’s actual asset management period (August 2, 2016).

Return on equity

Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
Net assets at beginning of period for the 1st fiscal period is using net assets as at the starting date of MFLPREIT’s actual asset management period (August 2, 2016).

Equity ratio at end of period

Net assets at end of period ÷ Total assets at end of period × 100

Payout ratio

Distribution per unit (excluding distribution in excess of retained earnings) ÷ Net income per unit × 100(rounded to the first decimal place)
Payout ratios for the 1st fiscal period and the 4th fiscal period are calculated by the following formula,because new investment units were issued.
Total amount of distribution (excluding distribution in excess of retained earnings) ÷ Net income × 100

Net operating income (NOI)
from property leasing

Property leasing business revenues − Property leasing business expenses + Depreciation and amortization

Funds from operations (FFO)

Net income + Depreciation and amortization of rental properties + Loss on retirement of non-current assets± Gain (Loss) on sales of real estate properties

FFO per unit

FFO ÷ Total number of investment units issued and outstanding

Ratio of interest-bearing debt tototal assets at end of period(LTV ratio)

Interest-bearing debt at end of period ÷ Total assets at end of period × 100(Note 7) For the 1st fiscal period (fiscal period ended January 31, 2017), annualized figures are calculated based on the number of days of actual asset
management of 183 days (from August 2, 2016 to January 31, 2017).
(Note 8) The calculation period of the 1st fiscal period (fiscal period ended January 31, 2017) of MFLP-REIT is a period of 334 days from March 4, 2016
to January 31, 2017, but the actual asset management period was a period of 183 days from August 2, 2016.
(Note 9) “Occupancy rate at end of period” is leased area of the building expressed as a percentage of leasable area of the building of each real estate intrust on each lease agreement concluded for each property as at the end of the fiscal period, rounded to the first decimal place.
(Note 10) “Depreciation and amortization” is depreciation and amortization of investment and rental property.
(Note 11) The “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28,
February 16, 2018) and relevant Guidance have been adopted from the 5th fiscal period (fiscal period ended January 31, 2019).

-4-

(2) Developments in management of assets in the fiscal period under reviewi) Brief history of the investment corporation
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March 4,2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer, and listed on the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock
Exchange, Inc. (“Tokyo Stock Exchange”) on August 2, 2016 (Securities Code: 3471). MFLP-REIT held assets totaling 13
properties amounting to a total acquisition price of ¥103.5 billion as at the end of the fiscal period under review.
ii) Investment environment and management performance
The Japanese economy has been on an expansionary trend against the backdrop of accommodative financial conditions and support
from government cash injection, as overseas economies continue with steady growth rates. In addition, capital investment has
increased with corporate profits and business sentiment both maintaining excellent levels and private consumption has also been
gradually increasing backed by improvement in the employment and income situation. In the logistics market, with the 3PL business(Note) specializing in outsourced logistics services expanding in market size and the needs of 3PL providers for rental of
multifunctional and highly-convenient logistics facilities on the rise, the demand for leading-edge logistics facilities is expected tocontinue to increase.
Under such circumstances, MFLP-REIT upholds a basic policy of pursuing maximization of unitholder value by achieving
sustainable growth through formation of a strategic partnership in the logistics facilities business with Mitsui Fudosan Co., Ltd.
(“Mitsui Fudosan”). During the fiscal period under review (fiscal period ended January 31, 2019), MFLP-REIT acquired MFLP
Tsukuba (acquisition of 60% quasi co-ownership interest; acquisition price of ¥5,268 million) in December 2018, in accordancewith the aforementioned policy.
Furthermore, MFLP-REIT has conducted steady management of 13 properties held (total acquisition price of ¥103.5 billion) tomaintain an excellent occupancy rate of 100.0% for the entire portfolio as at the end of the fiscal period under review(Note)“3PL business” refers to the third-party logistics business (business of providing logistics services to client companies outsourcing part or all of
their supply chain management functions).

iii) Summary of fund procurement
In the fiscal period under review, MFLP-REIT executed debt financing of ¥4,700 million (short-term loans payable of ¥1,700
million, long-term loans payable of ¥3,000 million) in December 2018 to fund the acquisition of MFLP Tsukuba; and ¥700 million(short-term loans payable) in September 2018 and ¥700 million (short-term loans payable) in October 2018 to repay loans, andexecuted repayments of a total of ¥2,100 million (short-term loans payable) using funds from part of loans procured in the period
under review and internal reserve arising from depreciation, etc. As a result, at the end of the fiscal period under review, the balanceof interest-bearing debt was ¥28,000 million (short-term loans payable of ¥1,700 million, long-term loans payable of ¥26,300
million) and the ratio of interest-bearing debt to total assets (LTV ratio) was 26.8%.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.

Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Stable-5-iv) Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating revenuesof ¥3,280 million, operating income of ¥1,560 million, ordinary income of ¥1,520 million, and net income of ¥1,519 million.
In accordance with the distribution policy as defined in the Articles of Incorporation of MFLP-REIT, distributions for the fiscal
period under review shall be subject to application of special provisions for taxation of investment corporations (Article 67(15) of
the Act on Special Measures Concerning Taxation). Based on this, MFLP-REIT declared the distribution of ¥1,519,622,042, whichis the integral multiple of the total number of investment units issued and outstanding (262,774 units) of unappropriated retained
earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of ¥5,783.
In addition, in accordance with the distribution policy as defined in the Articles of Incorporation, MFLP-REIT shall execute
distributions of cash in excess of retained earnings each fiscal period on a continuous basis in principle (Note 1). Based on this,
MFLP-REIT declared the distribution of ¥84 million, which is the amount almost equivalent to the remaining amount after
subtracting the distribution of earnings of ¥1,519 million from ¥1,604 million or 70% of FFO (Note 2), as return of capital applicable
to distribution reducing unitholders’ capital for tax purposes. Accordingly, MFLP-REIT declared distribution in excess of retained
earnings per unit of ¥322.
(Note 1) In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution 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., atemporary distribution in excess of retained earnings may be executed in order to standardize the amount of the distribution per unit.
However, from the perspective of continuing to maintain owned assets for a long period of time, in cases where the above distribution of cash is
executed, and where the amount equal to the equivalent of depreciation and amortization for the applicable operating period minus the amount of
the distribution in excess of retained earnings for the applicable operating period falls below the standard amount of capital for building maintenance(Note 3), the distribution in excess of retained earnings will be decreased by a maximum amount that the distribution amount does not fall below
the total equivalent of the distribution of earnings, and this may lead to cases where distribution in excess of retained earnings will not be executed.
In addition, from the perspective of continuing stable financial management, distributions in excess of retained earnings will not be executed incases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.
(Note 2) “FFO” is an acronym for funds from operations and refers to the figure calculated by adding depreciation and amortization of rental properties forthe applicable operating period and loss on retirement of non-current assets to net income (excluding gain (loss) on sales of real estate properties,etc.).
(Note 3) “Standard amount of capital for building maintenance” refers to the “amount equivalent to the capital expenditure amount noted in the Building
Condition Evaluation Report averaged over 12 years,” from which an amount representing six months of capital expenditure is determined andthen multiplied by two.
(Note 4) Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value after depreciation of owned real estate on
the applicable accounts settlement date + Appraisal value of owned real estate on the applicable accounts settlement date-6-

(3) Status of capital increase, etc.
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital, net, since theestablishment of MFLP-REIT.

Date

Description

Total number of investment units
issued and outstanding(units)Increase(Decrease)

BalanceUnitholders’ capital, net(Note 1)(millions of yen)
Increase(Decrease)

Remarks

Balance

March 4, 2016

Establishment throughprivate placement

600

600

300

300

(Note 2)June 15, 2016

Split of investment units

600

1,200

―

300

(Note 3)

August 1, 2016

Capital increase throughpublic offering

212,800

214,000

55,44555,745(Note 4)

August 29, 2016

Capital increase throughthird-party allotment

10,000224,000

2,605

58,350(Note 5)

April 21, 2017

Distribution of cash inexcess of retained earnings(return of capital)―

224,000(54)

58,296(Note 6)

Distribution of cash in
October 13, 2017 excess of retained earnings(return of capital)―

224,000(45)

58,250(Note 7)

February 1, 2018

Capital increase throughpublic offering

38,000262,000

13,49571,745(Note 8)February 28, 2018

Capital increase throughthird-party allotment

774

262,774274

72,020(Note 9)April 23, 2018

Distribution of cash inexcess of retained earnings(return of capital)―

262,774(61)

71,958 (Note 10)

Distribution of cash in
October 19, 2018 excess of retained earnings(return of capital)―

262,774(88)

71,870 (Note 11)110,700

373,474

33,617

105,488 (Note 12)5,526

379,000

1,678

107,166 (Note 13)―

379,000(84)

107,081 (Note 14)

February 1, 2019

February 27, 2019

Capital increase throughpublic offering

Capital increase throughthird-party allotment
Distribution of cash in

April 23, 2019

excess of retained earnings(return of capital)(Note 1) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 2) MFLP-REIT was established at an issue price of ¥500,000 per unit.
(Note 3) A two-for-one split of investment units was conducted with June 15, 2016 as the effective date.
(Note 4) New investment units were issued through public offering at an issue price of ¥270,000 (paid-in amount of ¥260,550) per unit for the purpose of
procuring funds for acquisition of new properties.
(Note 5) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥260,550 per unit.
(Note 6) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 16, 2017, distribution of cash in excess of retained earnings-7-

(return of capital) of ¥243 per unit was declared as distribution of cash for the 1st fiscal period (fiscal period ended January 31, 2017), the payoutof which commenced on April 21, 2017.
(Note 7) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2017, distribution of cash in excess of retained earnings(return of capital) of ¥204 per unit was declared as distribution of cash for the 2nd fiscal period (fiscal period ended July 31, 2017), the payout of
which commenced on October 13, 2017.
(Note 8) New investment units were issued through public offering at an issue price of ¥367,581 (paid-in amount of ¥355,139) per unit for the purpose of
procuring funds for acquisition of new properties.
(Note 9) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥355,139 per unit.
(Note 10) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2018, distribution of cash in excess of retained earnings(return of capital) of ¥275 per unit was declared as distribution of cash for the 3rd fiscal period (fiscal period ended January 31, 2018), the payoutof which commenced on April 23, 2018.
(Note 11) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2018, distribution of cash in excess of retained earnings(return of capital) of ¥335 per unit was declared as distribution of cash for the 4th fiscal period (fiscal period ended July 31, 2018), the payout of
which commenced on October 19, 2018.
(Note 12) New investment units were issued through public offering at an issue price of ¥313,986 (paid-in amount of ¥303,680) per unit for the purpose of
procuring funds for acquisition of new properties.
(Note 13) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥303,680 per unit.
(Note 14) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2019, distribution of cash in excess of retained earnings(return of capital) of ¥322 per unit was declared as distribution of cash for the 5th fiscal period (fiscal period ended January 31, 2019), the payoutof which commenced on April 23, 2019.

-8-

[Historical market price of investment securities]
The following are the highest and lowest prices (closing price) by fiscal period on the Tokyo Stock Exchange Real Estate Investment
Trust Securities Market on which MFLP-REIT investment securities are listed.

(Note)

Fiscal period

5th period(From August 1,
2018
to January 31,
2019)

4th period(From February 1,
2018
to July 31, 2018)

3rd period(From August 1,
2017
to January 31,
2018)

2nd period(From February 1,
2017
to July 31, 2017)

1st period(From March 4,2016
to January 31,
2017)

Highest (yen)358,000

377,500

387,500

339,500

341,500

Lowest (yen)300,500

320,500

309,500

303,000

286,300

MFLP-REIT investment securities were listed on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market on August 2, 2016.

(4) Distribution
The following is the distribution, etc. performance up to the fiscal period under review.
5th period
4th period
3rd period
2nd period
1st period(From August 1, (From February (From August 1, (From February (From March 4,
2018
1, 2018
2017
1, 20172016
to January 31,
to July 31,
to January 31,
to July 31,
to January 31,
2019)
2018)
2018)
2017)
2017)

Fiscal period
Total amount of
unappropriated retained
earnings
Retained earnings
Total amount of distributionof cash[Distribution per unit]
Of which: Total amount of
distribution of earnings[Distribution of earnings perunit]
Of which: Total amount ofreturn of capital[Return of capital per unit](thousandsof yen)(thousandsof yen)(thousandsof yen)1,444,484

1,184,529

1,151,857

1,110,063

117

16

17

49

143

1,604,235

1,532,497

1,246,112

1,197,504

1,164,352(yen)[6,105][5,832][5,563][5,346][5,198](thousandsof yen)1,519,622

1,444,468

1,184,512

1,151,808

1,109,920(yen)[5,783][5,497][5,288][5,142][4,955](thousandsof yen)84,61388,02961,60045,69654,432

(yen)

[322]

[335]

[275]

[204]

[243]

―

―

―

―

―

―

―

―

―

―

84,61388,02961,60045,69654,432

[322]

[335]

[275]

[204]

[243]

Of total amount of return ofcapital:(thousands
Total amount of distributionof yen)from allowance for temporary
difference adjustment[Of return of capital per unit:
Distribution from allowance(yen)
for temporary difference
adjustment per unit]
Of total amount of return ofcapital:
Total amount of distribution(thousands
from distribution reducingof yen)unitholders’ capital for tax
purposes[Of return of capital per unit:
Distribution from distribution(yen)reducing unitholders’ capitalfor tax purposes](Note)

1,519,739

For a summary of MFLP-REIT’s distribution policy and distributions for the fiscal period under review, please refer to “(2) Developments inmanagement of assets in the fiscal period under review; iv) Summary of business performance and distributions” presented earlier in this document.

-9-(5) Future management policy
MFLP-REIT has established a strategic and collaborative partnership in the logistics facilities business with Mitsui Fudosan, underwhich it seeks to maximize unitholder value by focusing investments primarily in logistics facilities as a basic policy. Based on thispolicy, in addition to expansion of asset size for the purpose of further stabilizing the revenues base continuing into future periods,
MFLP-REIT will perform stable and efficient financial management by addressing changes in the external and internal environment
to maximize unitholder value.
i) External growth strategy“External growth based on the growth potential and extensive pipeline of Mitsui Fudosan’s logistics facilities business”
MFLP-REIT aims for continuous growth by focusing investments on MFLP facilities (leading-edge logistics facilities with Mitsui
Fudosan quality (Note 1)), utilizing the right of first look and preferential negotiation based on “Right of first look and preferential
negotiation agreement” that was concluded with Mitsui Fudosan, which boasts high growth in the logistics facilities business, and
the Asset Management Company.
(Note 1) Based on the principles of “harmonious coexistence” and “linking diverse values” set by the Mitsui Fudosan Group (Note 2), Mitsui Fudosan’slogistics facilities business keeps up efforts aimed at not only providing logistics facilities space but also creating value beyond conventionalboundaries. In order to achieve this, MFLP-REIT incorporates the highly-specialized and advanced management and operational know-how, etc.
accumulated in the office building business, retail properties business, etc. and the know-how, etc. accumulated through urban development as acomprehensive real estate company. It also captures the diverse needs that change with the times of the various stakeholders associated with logistics
facilities (tenants, people working at the logistics facilities, and local community). MFLP-REIT refers to the quality of logistics facilities realized
through these efforts by the name “Mitsui Fudosan quality.”(Note 2) “Mitsui Fudosan Group” refers to a corporate group comprising Mitsui Fudosan, Mitsui Fudosan’s consolidated subsidiaries, and Mitsui Fudosan’s
associates accounted for using the equity method. The same shall apply hereinafter.

ii) Internal growth strategy“Stable management using the Platform (business foundation) and client network of the Mitsui Fudosan Group”
MFLP-REIT aims for stable management by utilizing the Platform (business foundation) and client network that the Mitsui FudosanGroup has developed over years as a comprehensive real estate company.
iii) Financial strategy“Financial and cash management with an emphasis on stability and efficiency”
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units and borrowings,
and at the same time it will aim to secure both stable distribution levels and efficient cash management for distributions throughcontinuous distributions in excess of retained earnings (return of capital) based on cash flow (FFO).
(6) Significant subsequent eventsi) Issuance of new investment units
Regarding the issuance of new investment units decided in the meetings of the Board of Directors of MFLP-REIT held on January
9, 2019 and January 23, 2019, as stated below, payment for the issuance of said units was completed through public offering on
February 1, 2019 and through a third-party allotment on February 27, 2019.
As a result, the total investment amount (net) is ¥107,166,453,976, and there are 379,000 units of total number of investment units
issued and outstanding.
a.

Issuance of new investment units through public offering (primary offering)Number of new investment units to be issued:
Issue price:

110,700 units (Domestic: 75,900 units, Overseas: 34,800 units)¥313,986 per unit

Total amount of issue price:Amount to be paid in (paid-in amount):¥34,758,250,200¥303,680 per unit

Total amount to be paid in (total paid-in amount):
Payment date:¥33,617,376,000
February 1, 2019- 10 -

b.
Issuance of new investment units through a third-party allotment (third-party allotment)
Number of new investment units to be issued:
5,526 units
Amount to be paid in (paid-in amount):
Total amount to be paid in (total paid-in amount):¥303,680 per unit
¥1,678,135,680

Payment date:
Allottee:February 27, 2019
Daiwa Securities Co. Ltd.

ii) Acquisitions of properties
MFLP-REIT acquired the trust beneficiary interests for the following assets on February 4, 2019, March 1, 2019 and April 5, 2019
(6 properties inclusive of additional acquisition; total amount of acquisition price is ¥53,128 million).

Category

Property nameLocation

L-10

MFLP Hino(Note 2)Hino-shi, Tokyo

L-12

MFLP Tsukuba(Note 3, 6)

Tsukubamirai-shi,
Ibaraki

L-13

MFLP Inazawa

Inazawa-shi, Aichi

16,200February 4, 2019

L-14

MFLP Atsugi II

Isehara-shi, Kanagawa

13,100February 4, 2019

L-15

MFLP Fukuoka I(Note 4, 6)

Sue-machi, Kasuyagun, Fukuoka

I-1

MFIP Inzai(Note 5)

Inzai-shi, Chiba

Logistics facilities

Industrial real estate

Acquisition price(Note 1)(millions of yen)
5,013
(Additional 10%
quasi co-ownershipinterest)
3,512(Additional 40%
quasi co-ownershipinterest)

Property no.

Acquisition dateFebruary 4, 2019

March 1, 2019i) 4,263
i) February 4, 2019ii) 1,000ii) April 5, 2019
Total 5,263
10,040(Additional 80%
February 4, 2019quasi co-ownershipinterest)(Note 1) “Acquisition price” is the purchase price of each trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiaryinterest for the acquired asset, rounded down to the nearest million yen. The transaction price does not include consumption tax and local
consumption tax or the various costs required in the acquisition.
(Note 2) For “MFLP Hino,” the acquisition price is the prorated figure equivalent to the quasi co-ownership interest in this property that MFLP-REIT
additionally acquired (10%).
(Note 3) For “MFLP Tsukuba,” the acquisition price is the prorated figure equivalent to the quasi co-ownership interest in this property that MFLP-REIT
additionally acquired (40%).
(Note 4) For “MFLP Fukuoka I,” the acquisition price noted in the upper section is the prorated figure equivalent to the quasi co-ownership interest in thisproperty that MFLP-REIT initially acquired (81%), and the price noted in the lower section is the prorated figure equivalent to the quasi coownership interest of the same additionally acquired (19%).
(Note 5) For “MFIP Inzai,” the acquisition price is the prorated figure equivalent to the quasi co-ownership interest in this property that MFLP-REIT
additionally acquired (80%).
(Note 6) The sale and purchase agreements relating to “MFLP Tsukuba” and “MFLP Fukuoka I” (19% quasi co-ownership interest) fall under the definitionof “forward commitments, etc.” (as defined as “a postdated sales contract under which payment and delivery shall be made at least one month after
the conclusion of the contract, or any other contract similar thereto” stated in the “Comprehensive Guidelines for Supervision of Financial
Instruments Business Operators, etc.” established by the Financial Services Agency).

- 11 -

iii) Borrowing of funds
MFLP-REIT has borrowed the following funds to apply to part of the acquisition funds and related expenses for the real estate trust
beneficiary interests in the above ii) Acquisitions of properties, as well as to the repayment of loans.

LenderMizuhoBank, Ltd.

Borrowingamount(millions ofyen)Interest rate

Sumitomo
Mitsui Trust
Bank,
LimitedRepayment

Repayment

date

date

methodFebruary 4,
2019

April 5, 2019

Bulletrepayment

2,900

0.08387%

1,100

0.08318%

1,000

0.09591%

April 5, 2019

May 31, 2019

1,000

0.25%

February 4,
2019

1,000

0.1475%1,500

0.1475%2,000

0.36869%

1,000

0.25%

500

0.2313%2,000

0.3988%1,800

0.1863%1,000

The Bank ofFukuoka,Ltd.

Drawdown

March 1,
2019

May 7, 2019

Collateral

UnsecuredNon-guaranteed

BulletUnsecured

repayment

Non-guaranteed

BulletUnsecured

repayment

Non-guaranteed

February 6,
2023

Bulletrepayment

UnsecuredNon-guaranteed

February 4,
2019

February 5,
2024

Bulletrepayment

UnsecuredNon-guaranteed

February 4,

February 5,

BulletUnsecured

2019

2024

repayment

Non-guaranteed

February 4,
2019

August 4,
2028

Bulletrepayment

UnsecuredNon-guaranteed

February 4,

February 6,

BulletUnsecured

2019

2023

repayment

Non-guaranteed

February 4,

February 4,

BulletUnsecured

2019

2026

repayment

Non-guaranteed

February 4,
2019

February 5,
2029

Bulletrepayment

UnsecuredNon-guaranteed

February 4,

February 4,

BulletUnsecured

2019

2025

repayment

Non-guaranteed

0.2313%February 4,
2019

February 4,
2026

Bulletrepayment

UnsecuredNon-guaranteed

500

0.1163%February 4,
2019

February 6,
2023

Bulletrepayment

UnsecuredNon-guaranteed

500

0.1475%February 4,

February 5,

BulletUnsecured

2019

2024

repayment

Non-guaranteed

1,000

0.2313%February 4,
2019

February 4,
2026

Bulletrepayment

UnsecuredNon-guaranteed

600

0.2313%February 4,

February 4,

BulletUnsecured

2019

2026

repayment

Non-guaranteed

Sumitomo
Mitsui
Banking
Corporation
Sumitomo
Mitsui
Banking
Corporation
Sumitomo
Mitsui Trust
Bank,
LimitedMizuhoBank, Ltd.
MUFG Bank,Ltd.
MUFG Bank,Ltd.
The Bank ofFukuoka,
Ltd.
ShinkinCentral Bank
The
Norinchukin
Bank
Mizuho Trust& BankingCo., Ltd.
Mizuho Trust& BankingCo., Ltd.
The Chiba
Bank, Ltd.
The
Yamaguchi
Bank, Ltd.

- 12 -

Borrowing
Lenderamount(millions ofInterest rate

Drawdown
date

Repayment
date

Repayment
methodCollateral

600

0.20869%

February 4,
2019

August 4,
2025

Bulletrepayment

UnsecuredNon-guaranteed

20,000

―

―

―

―

―

yen)
Mitsui
Sumitomo
Insurance
Company,
LimitedTotal- 13 -

2. Overview of the Investment Corporation(1) Status of investments in capital
5th period(January 31,
2019)

4th period(July 31, 2018)

3rd period(January 31,
2018)

2nd period(July 31, 2017)

1st period(January 31,
2017)(units)8,000,000

8,000,000

8,000,000

8,000,000

8,000,000

Fiscal period
Total number ofinvestment units
authorized
Total number ofinvestment units issued
and outstanding
Unitholders’ capital, net(Note)(units)262,774

262,774

224,000

224,000

224,000(millions ofyen)

71,87071,95858,25058,29658,350

Number of unitholders(unitholders)

6,570

7,135

5,073

5,698

6,201

(Note)“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(2) Major unitholders
Of the unitholders as of January 31, 2019, the following are the top ten unitholders in terms of investment unit-holding ratio.
Number ofinvestment
units owned(units)Number of investment units owned
expressed as a percentage of total
number of investment units issued
and outstanding (%)

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

44,642

16.98

Japan Trustee Services Bank, Ltd. (trust account)

35,75313.60

Mitsui Fudosan Co., Ltd.

28,900

10.99

Trust & Custody Services Bank, Ltd. (securities investment trust account)

12,045

4.58

The Nomura Trust and Banking Co., Ltd. (investment trust account)

6,482

2.46

The Chugoku Bank, Limited

5,277

2.00

Aozora Bank, Ltd.

5,067

1.92

JPMorgan Chase Bank 385632

4,833

1.83

The Bank of Kyoto, Ltd.

3,700

1.40

State Street Bank and Trust Company 505012

3,206

1.22

149,905

57.04

Name

Total
(Note)“Number of investment units owned expressed as a percentage of total number of investment units issued and outstanding” is rounded down to thesecond decimal places.

- 14 -

(3) Matters concerning directors, etc.
i) Executive director, supervisory directors and independent auditor in the fiscal period under review

Position

Executive director

Name

Key concurrently-held position, etc.

Masayuki Isobe

Total amount ofcompensation byposition for theapplicable operating
period(thousands of yen)

―

2,400

Izuru Goto

Attorney, City-Yuwa Partners
Corporate Auditor (part-time), Tobishima Corporation

1,500

Tadao Toyoshima

Director (Audit & Supervisory Committee Member),
Square Enix Holdings Co., Ltd.

1,500

―

9,100

Supervisory director

Independent auditor KPMG AZSA LLC(Note 1) None of the executive director or supervisory directors own MFLP-REIT investment units in their own name or in the name of others.
(Note 2) Supervisory directors may be directors of other corporations other than those stated above, but none of them, including those above, have any
interest in MFLP-REIT.
(Note 3) The amount for the independent auditor represents the amount payable as compensation for the audit for the fiscal period under review, plus thecompensation for the audit of English financial statements (¥2,100 thousand).

ii) Policy for deciding on dismissal and refusal of reappointment of the independent auditor
Decisions are made at a meeting of the Board of Directors of MFLP-REIT by taking into account the various circumstances in acomprehensive manner.
(4) Asset management company, custodian, and general administrators
The following are the asset management company, custodian and general administrators as of January 31, 2019.
Entrustment category

Name

Asset management company

Mitsui Fudosan Logistics REIT Management Co., Ltd.

Custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (transfer agent)

Sumitomo Mitsui Trust Bank, Limited

General administrator (institutional)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting)

Heiseikaikeisha Tax Corporation- 15 -

3. Status of Assets under Management of the Investment Corporation(1) Composition of assets of the investment corporation
5th period(As of January 31, 2019)
Type of asset

Use

Geographic classification(Note 1)

4th period(As of July 31, 2018)

Total amount held As a percentage of total Total amount held As a percentage of total(millions of yen)assets (%)(millions of yen)assets (%)(Note 2)
(Note 3)(Note 2)
(Note 3)

Tokyo metropolitan area

86,736

82.9

81,928

81.7

Kansai area

4,333

4.1

4,374

4.4

Other areas

8,131

7.8

8,219

8.2

Subtotal

99,201

94.8

94,522

94.3

Tokyo metropolitan area

2,123

2.0

2,142

2.1

Kansai area

―

―

―

―

Other areas

―

―

―

―

Subtotal

2,123

2.0

2,142

2.1

Real estate in trust total

101,324

96.9

96,664

96.4

Deposits and other assets

3,267

3.1

3,585

3.6

Total assets

104,591

100.0

100,250

100.0

Logistics
facilities

Real estate intrust(Note 4)(Note 5)
Industrial realestate(Note 6)(Note 1) “Tokyo metropolitan area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture, Saitama Prefecture and Ibaraki Prefecture.
“Kansai area” refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, Nara Prefecture and Shiga Prefecture.
(Note 2) “Total amount held” is based on the carrying amount (for real estate in trust, the book value after depreciation and amortization) as of each accounts
settlement date, rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is rounded to the first decimal place.
(Note 4) “Real estate in trust” refers to real estate of trust beneficiary interests that have mainly real estate in trust.
(Note 5) For real estate in trust, the amount does not include the amount of construction in progress in trust.
(Note 6) “Industrial real estate” refers to data centers, communications facilities, research facilities, factories, supply and treatment facilities, and other realestate serving as corporate bases. The same shall apply hereinafter.

- 16 -

(2) Major assets held
The following summarizes the assets held by MFLP-REIT as of January 31, 2019.

Book value
Name of real estate, etc.
(millions of yen)

Leasable area(m²)
(Note 1)

Leased area(m²)
(Note 2)

As a percentage ofOccupancy rate
total property(%)
leasing business(Note 3)revenues (%)

Main use

GLP/MFLP Ichikawa
Shiohama(Note 4)

15,20450,81350,813

100.0

14.7

Logistics
facilities

MFLP Kuki

12,04867,92567,925

100.0

14.5

Logistics
facilities

MFLP Yokohama
Daikoku(Note 4)

9,808

47,92947,929

100.0

10.7

Logistics
facilities

MFLP Yashio

9,396

39,692

39,692100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi

7,552

40,95840,958100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Funabashi
Nishiura

6,757

31,03431,034100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Kashiwa

6,100

31,291

31,291100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Sakai(Note 4)

4,333

22,42922,429100.0

5.0

Logistics
facilities

MFLP Komaki

8,131

40,60540,605100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Hino(Note 4)

7,493

28,08028,080

100.0

7.0

Logistics
facilities

MFLP Hiratsuka

6,998

33,05533,055100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Tsukuba(Note 4)

Existing
Existingbuilding: 22,762 building: 22,762
5,376
Annex building: Annex building:
15,36015,360100.0

Not disclosed(Note 5)

Logistics
facilities

MFIP Inzai

2,123

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Industrial realestateTotal

101,324Not disclosed(Note 5)

Not disclosed(Note 5)

100.0

100.0

(Note 1) “Leasable area” is the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable
based on the lease agreement or floor plan, etc. for such building as of January 31, 2019, and does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.
(Note 2) “Leased area” is the total leased area rounded down to the nearest whole number presented in the lease agreements for buildings in the portfolio
assets of MFLP-REIT as of January 31, 2019 (Excluding lease agreements concerning shops, vending machines, photovoltaic power generation
facilities and parking lots). If a master lease agreement has been executed for assets held by MFLP-REIT, the total leased area represents the sum
total of the area that is actually leased based on the lease agreement signed with end-tenant rounded down to the nearest whole number. Total leased- 17 -

area is calculated based on the assumption that the subject property is actually leased if the subject lease agreement has been executed as of January
31, 2019 even if there is no occupancy / delivery relating to the subject property as of January 31, 2019.
(Note 3) “Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for properties as of January 31, 2019, rounded to the first decimal place. Occupancy rates for the total section are the share of the totalleased area of the properties of the total leasable area of said properties, rounded to the first decimal place.
(Note 4) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai,” “MFLP Hino,” and “MFLP Tsukuba,” leasable area andleased area are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT has acquired (50%, 50%, 20%,
15% and 60%, respectively).
(Note 5) Not disclosed, because consent has not been obtained from the lessee.

- 18 -

(3) Real estate assets in portfolio
The following summarizes the assets held by MFLP-REIT as of January 31, 2019.
Name of real estate,
etc.

Location

Form of ownership

Leasable area(m²)
(Note 1)

Appraisal value atBook value at
end of period
end of period(millions of yen)(millions of yen)
(Note 2)

GLP/MFLP Ichikawa
Real estate trust
1-6-3 Shiohama, Ichikawabeneficiary
Shiohamashi, Chibainterests(Note 3)50,813

17,25015,204

MFLP Kuki

1-10 Kiyokucho, Kuki-shi,
SaitamaReal estate trust
beneficiaryinterests

67,925

13,70012,048MFLP Yokohama
Daikoku(Note 3)43-1 Daikokucho, Tsurumi- Real estate trustku, Yokohama-shi,
beneficiary
Kanagawa
interests

47,92910,5009,808

MFLP Yashio

99-1 Tsubutakita,
Minamiushiroya, Yashioshi, Saitama

Real estate trust
beneficiaryinterests

39,692

10,9009,396

MFLP Atsugi

4021-1 Sakuradai, Nakatsu, Real estate trust
Aikawamachi, Aiko-gun,beneficiary
Kanagawa
interests

40,958

8,700

7,552

MFLP Funabashi
Nishiura

3-10-13 Nishiura,
Funabashi-shi, Chiba

Real estate trust
beneficiaryinterests

31,034

7,680

6,757

MFLP Kashiwa

259-1 Mukaiwari,
Aotashindentobichi,
Kashiwa-shi, Chiba

Real estate trust
beneficiaryinterests

31,291

6,900

6,100

MFLP Sakai(Note 3)

Real estate trust
1-171 Chikkoyawatamachi,
beneficiary
Sakai-ku, Sakai-shi, Osakainterests

22,429

4,880

4,333

MFLP Komaki

2020-1, Higashimae,
Honjo, Komaki-shi, Aichi

Real estate trust
beneficiaryinterests

40,605

8,530

8,131

MFLP Hino(Note 3)3-1-2 Asahigaoka, Hinoshi, Tokyo

Real estate trust
beneficiaryinterests

28,080

7,570

7,493

MFLP Hiratsuka

2-1544-5 Nishishindo,
Hiratsuka-shi, Kanagawa

Real estate trust
beneficiaryinterests

33,055

7,090

6,998

MFLP Tsukuba(Note 3)3-35-2 and 3-35-3,
Real estate trust
Shihogaoka, Tsukubamirai- beneficiaryshi, Ibaraki
interests

building: 22,762
Annex building:
15,360

6,000

5,376

471,933

109,700

99,201

Logistics facilities subtotal- 19 -

Existing

MFIP Inzai(Note 3)2-101-14 Izumino, Inzaishi, Chiba

Real estate trust
beneficiaryinterests

Not disclosed(Note 4)

2,440

2,123

Industrial real estate subtotal

Not disclosed(Note 4)

2,440

2,123

Total

Not disclosed(Note 4)112,140

101,324(Note 1) “Leasable area” is the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable
based on the lease agreement or floor plan, etc. for such building as of January 31, 2019, and does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.
(Note 2) “Appraisal value at end of period” is the appraisal value as of the valuation date of January 31, 2019 by real estate appraisers based on the asset
valuation methods and standards set forth in the Articles of Incorporation of MFLP-REIT and the rules and requirements imposed by The Investment
Trusts Association, Japan. The appraisal of each asset held is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa
Real Estate Appraisal Co., Ltd. and CBRE K.K.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai,” “MFLP Hino,” “MFLP Tsukuba” and “MFIP Inzai,” leasablearea, appraisal value at end of period, and book value at end of period are the prorated figures equivalent to the quasi co-ownership interest in each
property that MFLP-REIT has acquired (50%, 50%, 20%, 15%, 60% and 20%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 20 -

The following is the status of leasing of real estate, etc. held by MFLP-REIT.
5th period(From August 1, 2018 to January 31, 2019)

Name of real estate, etc.

Total number of Occupancy ratetenants[at end of[at end of
period]period](%)(Note 1)
(Note 2)

4th period(From February 1, 2018 to July 31, 2018)

Property
Property
As a
As aleasingleasing
percentage of Total number of Occupancy rate
percentage ofbusinessbusiness
total property
tenants[at end of
total property
revenues
revenues
leasing[at end of
period]leasing[during[duringbusiness
period](%)
business
period]period]revenues(Note 1)
(Note 2)revenues(millions of(millions of
(%)
(%)
yen)
yen)

GLP/MFLP Ichikawa
Shiohama(Note 3)

5

100.0

481

14.7

5

100.0

487

15.5

MFLP Kuki

3

100.0

476

14.5

3

100.0

477

15.2

MFLP Yokohama Daikoku(Note 3)

5

100.0

351

10.7

5

100.0

349

11.1

MFLP Yashio

2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)2

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Atsugi

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Funabashi Nishiura

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Kashiwa

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)

MFLP Sakai (Note 3)

5

100.0

5.0

5

100.0

MFLP Komaki

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)1

100.0

MFLP Hino (Note 3)

16

100.0

16

100.0

MFLP Hiratsuka

Not disclosed(Note 4)100.0

Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)100.0

MFLP Tsukuba

1

100.0

Not disclosed Not disclosed(Note 4)(Note 4)――

Logistics facilities subtotal

Not disclosed(Note 4)100.0

Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)100.0

MFIP Inzai

Not disclosed(Note 4)Not disclosed Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)(Note 4)Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)

Industrial real estate subtotal

Not disclosed(Note 4)Not disclosed Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)(Note 4)Not disclosed Not disclosed Not disclosed(Note 4)(Note 4)(Note 4)Total

Not disclosed(Note 4)

100.0

162

230

3,280

7.0

100.0

Not disclosed(Note 4)

100.0

169

5.4

Not disclosed Not disclosed(Note 4)(Note 4)216

6.9

Not disclosed Not disclosed(Note 4)(Note 4)――Not disclosed Not disclosed(Note 4)(Note 4)

3,148

100.0

(Note 1) “Total number of tenants” is the number of tenants on each lease agreement concluded for each property as of each accounts settlement date. If apass-through master lease agreement has been concluded for the property, it is the total number of end-tenants.
(Note 2) “Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for properties at the end of each accounting period, rounded to the first decimal place. Occupancy rates for the total section are the shareof the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFLP Hino,” property leasing business revenues andfigures expressed as a percentage of total property leasing business revenues are the prorated figures equivalent to the quasi co-ownership interestin each property that MFLP-REIT has acquired (50%, 50%, 20% and 15%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 21 -

(4) Schedule of renewable energy power generation facilities
Not applicable.
(5) Schedule of rights to operate public facilities, etc.
Not applicable.
(6) Status of other assets
Trust beneficiary interests that have real estate as the main assets in trust, etc. are listed all at once in “(3) Real estate assets in
portfolio” presented earlier in this document, and there are no main specified assets invested by MFLP-REIT other than those listed
there in the portfolio as of January 31, 2019.
i) Itemization of investment securities portfolio assets
Not applicable.
ii) Table of status of contract amount, etc. and fair value of specified transactions
Not applicable.
(7) Status of holding of assets by country and region
Not applicable, because there are none in countries and regions other than Japan.

- 22 -

4. Capital Expenditures of Real Estate Held(1) Schedule of capital expenditures
Of the capital expenditures accompanying renovations, etc. currently planned for real estate and real estate in trust of real estate
trust beneficiary interests held by MFLP-REIT, the following are the major planned amounts. There may be cases where the planned
construction amount ends up being in part expensed in accounting instead of being capitalized.
Planned construction amount(millions of yen)
(Note)Name of real estate,
etc.

Location

PurposeScheduled timeTotalamountAmountpaid
duringperiodTotalamountalreadypaid

MFLP Kuki

Kuki, Saitama

Renewal of equipmentof access management
facilities

From October 2019 to
October 2019

5

―

―

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Exterior wall painting(Section 4)

From January 2019 toJune 2019

48

―

―

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

Replacement of headsof foam fire
extinguishing system

From April 2019 toJune 2019

12

―

―

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

From July 2019 to
December 2019

49

―

―

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

From October 2019 to
December 2019

12

―

―

MFLP Yashio

Yashio, Saitama

From June 2019 toJuly 2019

4――

MFLP Hino

Hino, Tokyo

From June 2019 toJuly 20195――(Note)

Exterior wall painting(Section 5)
Replacement of headsof foam fire
extinguishing system
Renewal of equipmentof access management
facilities
Construction for
expansion of bicycle
parking

For “MFLP Yokohama Daikoku,” and “MFLP Hino,” planned construction amount are the prorated figures equivalent to the quasi co-ownershipinterest in each property that MFLP-REIT holds (50% and 25%, respectively). For “MFLP Hino,” the amount stated above includes additional
acquisition of 10% quasi co-ownership interest acquired on February 4, 2019.

(2) Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the fiscal period underreview for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period under review amounted to ¥36 million
and, other than this, there was ¥20 million in repair expenses categorized as operating expenses in the fiscal period under review.
Name of real estate,
etc.

Location

Purpose

PeriodMFLP Yokohama
Daikoku

Yokohama, Kanagawa

Exterior wall painting(Section 2)

From September 2018
to December 2018

Other capital expenditures

21
15

Total
(Note)

Construction amount(millions of yen)
(Note)

36

For “MFLP Yokohama Daikoku,” construction amount is the prorated figure equivalent to the quasi co-ownership interest in the property that
MFLP-REIT holds (50%).

(3) Cash reserves for long-term repair and maintenance plans
Not applicable.

- 23 -

5. Status of Expenses and Liabilities(1) Details of expenses related to asset management(Thousands of yen)
5th period
From: August 1, 2018 To: January
31, 2019

4th period(From February 1, 2018 to July 31,
2018)

310,249

278,845

Asset custody fee

5,012

3,993

Administrative service fees

15,56013,235

Directors’ compensations

5,400

5,400

Audit fee

9,100

9,100

Other expenses

37,20933,699382,531344,272

Item
Asset management fee (Note)

Total(Note) Other than the amount stated above, there is an asset management fee for compensation associated with a property acquisition
factored into the book value of the properties (the 4th period: ¥48,895 thousand; the 5th period: ¥26,343 thousand).

Short-term loans

Category(2) Debt financing status
The following is the status of loans as of January 31, 2019.
Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUse―

0.0982

Nov. 16,2018

Bulletrepayment(Note 3)200―

0.1036

Nov. 16,2018

Bulletrepayment(Note 3)―1,700

0.0832Feb. 4,2019

Bulletrepayment(Note 3)

700

1,700

Sept. 1,
2016

2,000

2,000

0.2713

Sept. 1,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.4213

Sept. 1,
2026

Bulletrepayment(Note 3)Mar. 15,
2018

800

800

0.2400Mar. 15,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

2,000

2,000

0.3050

Sept. 1,
2023

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.3813

Sept. 1,
2025

Bulletrepayment(Note 3)

Aug. 2,
2016

400

400

0.1425

Aug. 2,2022

Bulletrepayment(Note 3)

Aug. 2,
2016

1,700

1,700

0.2113

Aug. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

900

900

0.4895

Sept. 15,
2027

Bulletrepayment(Note 3)

Sept. 1,
2016

2,200

2,200

0.1826

Mar. 1,
2023

Bulletrepayment(Note 3)

LenderSumitomo Mitsui Trust
Bank, Limited

July 17,2018

500

The Bank of Fukuoka,
Ltd.

June 15,2018

Mizuho Bank, Ltd.

Dec. 3,2018

Subtotal

Sumitomo Mitsui
Banking Corporation

Long-term loans

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Borrowingdate

Sumitomo Mitsui Trust
Bank, Limited

Mizuho Bank, Ltd.

MUFG Bank, Ltd.

- 24 -

Remarks

Unsecured
Nonguaranteed

Unsecured
NonguaranteedCategory

LenderBalance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)

Average interest rate(%)
(Note 1)Maturity
date(Note 2)

Repayment
methodUseMar. 15,
2018

800

800

0.2400Mar. 31,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

600

600

0.3237Mar. 1,
2024

Bulletrepayment(Note 3)

Sept. 1,
2016

700

700

0.3425

Sept. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

300

300

0.2188Mar. 15,
2022

Bulletrepayment(Note 3)Mar. 15,
2018

300

300

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)

Aug. 2,
2016

2,100

2,100

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

Aug. 2,
2016

1,300

1,300

0.2169Feb. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

400

400

0.3563Mar. 14,2025

Bulletrepayment(Note 3)

Aug. 2,
2016

1,000

1,000

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)

The Yamaguchi Bank,
Ltd.

Mar. 15,
2018

600

600

0.3319Sept. 13,2024

Bulletrepayment(Note 3)

Mitsui Sumitomo
Insurance Company,
LimitedMar. 15,
2018

600

600

0.3563Mar. 14,2025

Bulletrepayment(Note 3)

Shinkin Central Bank

Dec. 3,
2018

―

2,000

0.2375

Dec. 1,
2023

Bulletrepayment(Note 3)

Sumitomo Life
Insurance Company

Dec. 3,
2018

―

1,000

0.3975

Dec. 3,2026

Bulletrepayment(Note 3)23,30026,30024,00028,000Mizuho Trust & Banking
Co., Ltd.

Development Bank ofJapan Inc.

The Bank of Fukuoka,
Ltd.

Long-term loans

Borrowingdate

Nippon Life Insurance
Company

The Norinchukin Bank

Subtotal
Total(Note 1) “Average interest rate” is the weighted average interest rate during the period, rounded to the fourth decimal places.
(Note 2) If the “Maturity date” is not a business day, it becomes the following business day.
(Note 3) “Use” of funds is for purchase of real estate or real estate trust beneficiary interests, refinancing of loans, working capital, etc.

(3) Status of investment corporation bonds
Not applicable.
(4) Status of short-term investment corporation bonds
Not applicable.
(5) Status of investment unit acquisition rights
Not applicable.

- 25 -

Remarks

Unsecured
Nonguaranteed6. Status of Sale and Purchase during Period(1) Status, etc. of sale and purchase of real estate, etc. and asset-backed securities, etc. and infrastructure assets, etc. andinfrastructure-related assets
Acquisition

Disposition

Acquisition date

Acquisition
price(millions ofyen)(Note 1)MFLP Tsukuba (Note 2)

December 3, 2018

Total

―

Name of real estate, etc.

Disposition date

Disposition
price(millions ofyen)Book value(millions ofyen)

Gain (Loss) on
sale(millions of
yen)

5,268

―

―

―

―

5,268

―

―

―

―

(Note 1) “Acquisition price” is the purchase price of trust beneficiary interest as set forth in the agreement for sale and purchase of trust beneficiary interest for
the acquired asset, rounded down to the nearest million yen. The transaction price does not include consumption tax and local consumption tax or thevarious costs required in the acquisition.
(Note 2) For “MFLP Tsukuba,” the acquisition price is the prorated figure equivalent to the quasi co-ownership interest in this property that MFLP-REIT
acquired (60%).

(2) Status, etc. of sales and purchases of other assets
Other main assets are generally bank deposits or bank deposits within assets in trust.
(3) Investigation into value, etc. of specified assetsi)Real estate, etc.

Acquisitionordisposition

Type of real Name of real estate, Transaction
estateetc.
date

Acquisition

Real estate
trust
beneficiaryinterests

MFLP Tsukuba(Note 3)Acquisition
price or
disposition
price(millions ofyen)(Note 2)

Appraisalvalue(millions ofyen)

Appraisal company

Date ofvaluation

5,268

6,000

Japan Real Estate
Institute

July 31, 2018

5,268

6,000

―

―

December 3,
2018

Total

(Note 1) For transactions requiring appraisal of real estate, etc. of specified assets pursuant to Article 201, Paragraph 1 of the Investment Trust Act, Japan Real
Estate Institute have carried out the appraisal pursuant to “Real Estate Appraisal Standards; Particulars; Chapter 3: Appraisal on Value of Real Estate
Subject to Securitization” and MFLP-REIT has been notified of the appraisal findings.
(Note 2) Acquisition price does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax, consumption tax
and local consumption tax.
(Note 3) For “MFLP Tsukuba,” the acquisition price and appraisal value are the prorated figures equivalent to the quasi co-ownership interest in this property
that MFLP-REIT acquired (60%).

ii) Other
Not applicable.
(4) Status of interested party transactions, etc.
i) Status of sale and purchase transactions with interested parties, etc.
Not applicable.
ii)

Amount of commission fee, etc.
Total amount ofcommission fee, etc.
Category(A)(thousands of yen)

Logistics management fee

81,782

Building management fee

95,158

Breakdown of transactions with interested parties, etc.
Paid toAmount paid (B)(thousands of yen)

As a percentage
of total amount(B/A)

Mitsui Fudosan Co., Ltd.

68,74984.1%

Mitsui Fudosan Facilities Co., Ltd.

65,744

69.1%

Mitsui Fudosan Facilities West Co., Ltd.

7,130

7.5%

- 26 -

(Note)“Interested parties, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26, Paragraph
1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.

iii) Other payments to interested parties, etc.
Other payments to interested parties, etc. are as follows:
Paid toCategory

Amount(thousands of yen)

Mitsui Fudosan Co., Ltd.

Repairs and related work, etc.

2,067

Mitsui Fudosan Building Management Co., Ltd.

Repairs and related work, etc.

2,937

Mitsui Fudosan Facilities Co., Ltd.

Repairs and related work, etc.

18,025

Mitsui Fudosan Facilities West Co., Ltd.

Repairs and related work, etc.

2,225iv) Leasing transaction, etc.
Leasing transactions with interested parties, etc. are as follows:
Name of lessee

Category

Mitsui Fudosan Co., Ltd.

Rent income, etc.

Rental revenues(thousands of yen)
109,537(5) Status, etc. of transactions with the asset management company pertaining to operations of concurrent business engaged
in by the asset management company
Not applicable, because the asset management company (Mitsui Fudosan Logistics REIT Management Co., Ltd.) does not engage
in any type I financial instruments business, type II financial instruments business, real estate brokerage or specified joint real estate
venture as a concurrent business.

- 27 -

7. Accounting(1) Status, etc. of assets, liabilities, principal, and income and loss
For the status, etc. of assets, liabilities, principal, and income and loss, please refer to “Balance Sheets,” “Statements of Income,”“Statements of Changes in Net Assets,” “Notes to Financial Statements” and “Statements of Cash Distributions” presented later inthis document.
(2) Change in method of calculation of depreciation and amortization
Not applicable.
(3) Change in method of valuation of real estate, etc. and infrastructure assets, etc.
Not applicable.
(4) Status, etc. of beneficiary certificates, etc. of investment trust established by itself
Not applicable.

- 28 -

8. Other(1) Noticei) General meeting of unitholders
Not applicable.
ii) Board of directors of the investment corporation
The following summarizes the key items of the major contract conclusions and changes approved at meetings of the Board of
Directors of MFLP-REIT in the fiscal period under review.
Approval date

Item

Summary
Concerning the issuance of new investment
units and secondary offering of investment

January 23, 2019Conclusion of new investment units
underwriting agreement, etc.

units approved at a meeting of the Board of
Directors held on the same date, generaladministrative services concerning newinvestment units underwriting, etc. related
to domestic offering and overseas offering
were entrusted to underwriters (Note).

(Note)The underwriters for domestic offering are Daiwa Securities Co. Ltd., Nomura Securities Co., Ltd., SMBC Nikko Securities Inc. Mizuho Securities Co.,
Ltd. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Okasan Securities Co., Ltd. For overseas offering, the underwriters are Daiwa CapitalMarkets Europe Limited, Nomura International plc, SMBC Nikko Capital Markets Limited, Mizuho International plc, Morgan Stanley & Co. Internationalplc, and Merrill Lynch International.

(2) Rounding of monetary and percentage figures
Unless otherwise specified, monetary figures are rounded down and percentage figures are rounded to the nearest specified unit inthis document.
(3) Disclosure pertaining to corporation holding overseas real estate
Not applicable.
(4) Disclosure pertaining to real estate of corporation holding overseas real estate
Not applicable.

- 29 -

Mitsui Fudosan Logistics Park Inc.
Balance Sheets

AssetsCurrent assets
Cash and deposits (Notes 3 and 4)
Cash and deposits in trust (Notes 3 and 4)
Operating accounts receivable (Note 12)
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property and equipment (Note 5)
Buildings in trust
Structures in trust
Machinery and equipment in trust
Vehicles and transport equipment in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Less: accumulated depreciation
Total property and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax assets (Note 9)
Other
Total investments and other assets
Total non-current assets
Total assets

5th period(As of January 31, 2019)(Thousands of yen)
4th period(As of July 31, 2018)

¥

¥

¥

- 30 -

936,079
2,035,779
35,257
17,47899,7104,977
3,129,283

953,525
1,803,520
132,570
18,017613,050
5,413
3,526,098

52,057,963
1,738,043
2,202,041
2,642
2,175
48,548,367
70,985(3,226,547)
101,395,672

48,397,235
1,637,752
2,202,041
951
46,880,845(2,454,257)
96,664,568

5,996
5,996

7,116
7,116

10,00049,83315
1,050
60,899101,462,568
104,591,851

10,00041,55513
1,050
52,61996,724,304
100,250,403¥

Mitsui Fudosan Logistics Park Inc.
Balance Sheets

Liabilities
Current liabilities
Operating accounts payable (Note 12)
Short-term loans payable (Notes 4 and 7)
Accounts payable (Note 12)
Accrued expenses
Income taxes payable
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable (Notes 4 and 7)
Tenant leasehold and security deposits in trust (Note 4)
Total non-current liabilities
Total liabilities
Net assets (Notes 6 and 10)
Unitholders’ equity
Unitholders’ capital
Units authorized: 8,000,000 units as of January 31, 2019 andJuly 31, 2018
Units issued and outstanding: 262,774 units as of January 31,
2019 and July 31, 2018
Deduction from unitholders’ capital
Unitholders’ capital (net)
Retained earnings
Total unitholders’ equity
Total net assets (Notes 6 and 10)
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

- 31 -

5th period(As of January 31, 2019)(Thousands of yen)
4th period(As of July 31, 2018)

¥

¥

¥

205,661
1,700,000
444,711210
929
570,502382
2,922,397

92,127700,000
322,767222
883
538,269
1,321
1,655,592

26,300,000
1,978,772
28,278,772
31,201,169

23,300,000
1,891,354
25,191,354
26,846,946

72,120,699

72,120,699(249,757)
71,870,942
1,519,739
73,390,682
73,390,682
104,591,851(161,728)
71,958,971
1,444,484
73,403,456
73,403,456
100,250,403¥

Mitsui Fudosan Logistics Park Inc.
Statements of Income

5th period(From August 1, 2018
to January 31, 2019)(Thousands of yen)
4th period(From February 1, 2018
to July 31, 2018)¥¥

Operating revenues (Note 12)
Property-related revenues (Note 8)
Other revenues related to property leasing (Note 8)
Total operating revenues
Operating expenses (Note 12)
Property-related expenses (Note 8)
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Audit fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Insurance income
Interest on refund
Other
Total non-operating income
Non-operating expenses
Interest expense
Offering costs associated with issuance of investment units
Borrowing related expenses
Disaster recovery expenses (Note 2)
Other
Total non-operating expenses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes (Note 9)
Net income (Note 10)
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss) (Note 6)¥

Net income per unit (Note 10)

5th period(From August 1, 2018
to January 31, 2019)¥
5,783

The accompanying notes are an integral part of these financial statements.

- 32 -¥

3,135,601
145,331
3,280,932

3,037,442
111,226
3,148,668

1,338,137
310,249
5,012
15,5605,400
9,100
37,2091,720,669
1,560,262

1,306,126
278,845
3,993
13,2355,400
9,100
33,6991,650,398
1,498,269

14
35,881866
036,762

12
373
501
0
887

36,026
4,983
31,0304,332
76,372
1,520,653
931
(2)
929
1,519,723
16
1,519,739

32,396
12,8184,016
4,573
53,804
1,445,352
885
(0)
885
1,444,466
17
1,444,484

¥
¥

(Yen)
4th period(From February 1, 2018
to July 31, 2018)¥
5,499

Mitsui Fudosan Logistics Park Inc.
Statements of Changes in Net Assets

Number of units
Balance as of February 1,
2018
Issuance of new units
through public offering asof February 1, 2018
Issuance of new units
through allocation to athird party as of February
28, 2018
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of July 31, 2018
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of January 31,
2019

Unitholders’ capital(thousands of yen)
Deduction from
Unitholders’
Unitholders’unitholders’capitalcapital (net)capitalRetained
Total net assets
earnings(thousands of(thousands of
yen)
yen)

224,000¥ 58,350,540¥ (100,128)¥ 58,250,412 ¥ 1,184,529¥ 59,434,941

38,00013,495,282-

13,495,282

13,495,282

774

274,877-

274,877

274,877--(61,600)(61,600)(61,600)

-

-

-

-

(1,184,512)-

1,444,466

1,444,466¥ 71,958,971 ¥ 1,444,484¥ 73,403,456(1,184,512)

-

-

-

262,774¥ 72,120,699¥ (161,728)--(88,029)(88,029)-(88,029)

-

-

-

-

(1,444,468)(1,444,468)

-

-

-

-

1,519,723

1,519,723

262,774¥ 72,120,699¥ (249,757)¥ 71,870,942 ¥ 1,519,739¥ 73,390,682

The accompanying notes are an integral part of these financial statements.

- 33 -

Mitsui Fudosan Logistics Park Inc.
Statements of Cash Flows

5th period(From August 1, 2018
to January 31, 2019)
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Interest income
Interest expense
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expense paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property and equipment in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment units
Payment of distribution of earnings
Payment of distribution in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 3)
The accompanying notes are an integral part of these financial statements.

- 34 -¥¥

1,520,653
773,409(14)
36,026
97,313538(8,278)513,340
157,601
33,96632,233(502)
3,156,287
14(36,038)(885)
3,119,376(Thousands of yen)
4th period(From February 1, 2018
to July 31, 2018)¥

1,445,352
746,082(12)
32,396(99,303)
3,538(2,826)(510,247)(105,961)
22,606
133,825(1,412)
1,664,037
12(32,314)(872)
1,630,863(5,460,010)(46,583)
134,001(5,372,593)(19,760,087)(1,941)
348,667(19,413,361)

3,100,000(2,100,000)
3,000,000(1,443,990)(87,979)
2,468,029
214,8122,757,046
2,971,858

2,100,000(1,400,000)
5,300,000
13,770,159(1,183,977)(61,562)
18,524,619
742,1212,014,924
2,757,046¥

Mitsui Fudosan Logistics Park Inc.
Notes to Financial Statements
1.

Organization and Basis of Presentationa. Organization
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March
4, 2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer with investments in capital of ¥300 million (600 investment units). Registration with the Kanto
Local Finance Bureau of the Ministry of Finance of Japan was completed on March 25, 2016. The investment units were listedon the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock Exchange, Inc. on August 2, 2016
(Securities Code: 3471).
MFLP-REIT started acquisition of properties on August 2, 2016. With Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as a sponsor,
MFLP-REIT invests primarily in logistics facilities with a particular focus on MFLP facilities, that is, leading-edge logistics
facilities with Mitsui Fudosan quality. This focus has been chosen in light of MFLP-REIT’s goal of establishing a portfolio thatemphasizes location, quality and balance.
As of January 31, 2019, MFLP-REIT held 13 properties with the total acquisition price of ¥103.5 billion.
b. Basis of presentation
The accompanying financial statements of MFLP-REIT have been prepared in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial Instruments and Exchange Act of Japan,
the Investment Trust Act and the related regulations, which are different in certain respects as to application and disclosure
requirements of the International Financial Reporting Standards.
The accompanying financial statements are based on the financial statements of MFLP-REIT, which were prepared in accordancewith Japanese GAAP and were presented in its Asset Management Report published for Japanese investors. In preparing theaccompanying financial statements, certain reclassifications and modifications have been made to the financial statements issued
domestically in order to present them in a format which is more familiar to readers outside Japan.
MFLP-REIT’s fiscal period is a six-month period, which ends at the end of January and July of each year.
MFLP-REIT does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying financial
statements and the notes thereto, as permitted by the Financial Instruments and Exchange Act of Japan. As a result, the totals
shown in the financial statements and notes thereto do not necessarily agree with the sum of the individual amounts.

2.

Summary of Significant Accounting Policies
a. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and cash in trust, readily-available bank deposits, readily-available bankdeposits in trust and short-term investments that are readily convertible to cash and realizable with a maturity of three months
or less when purchased and that are subject to an insignificant risk of changes in value.

- 35 -

b. Property and equipment
Property and equipment (including those in trust) are stated at cost, which includes the original purchase price and relatedacquisition costs and expenses. Depreciation of property and equipment is calculated using the straight-line method over theestimated useful lives. The useful lives of principal property and equipment are as follows:
Buildings:
Structures:

2 to 59 years
8 to 45 years

Machinery and equipment:
Vehicles:

14 to 16 years
4 years

Tools, furniture and fixtures:

5 to 15 years

c. Intangible assets
Intangible assets are stated at cost, which includes the original purchase price and related acquisition costs and expenses.
Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives. Amortization ofsoftware for internal use is calculated using the straight-line method over the estimated useful lives of five years at MFLP-REIT.
d. Disaster recovery expenses
Disaster recovery expenses comprise the recovery expenses corresponding to the insurance received for damage from natural
disasters as a result of the typhoons, etc. that occurred in 2018.
e. Taxes on property and equipment
With respect to property taxes, city planning taxes and depreciable asset taxes imposed on real estate properties or trust
beneficiary interests in real estate, of the tax amount assessed and determined, the amount corresponding to the relevant fiscal
period is accounted for as property-related expenses.
Of the amounts paid for the acquisitions of real estate properties or trust beneficiary interests in real estate, the amount equivalent
to property-related taxes is capitalized as part of the acquisition cost of the relevant property instead of being charged as expenses.
Capitalized property-related taxes amounted to ¥111,095 thousand for the 4th period and ¥1,526 thousand for the 5th period.
f. Trust beneficiary interests in real estate
As to trust beneficiary interests in real estate that have real estate properties as assets in trust, all accounts of assets and liabilities
within assets in trust as well as all income generated and expenses incurred from assets in trust are recorded in the relevantbalance sheet and statement of income account items.
The following material items of the assets in trust recorded in the relevant account items are separately presented in theaccompanying balance sheets.
(1) Cash and deposits in trust(2) Buildings in trust, structures in trust, machinery and equipment in trust, vehicles and transport equipment in trust, tools,
furniture and fixtures in trust and land in trust(3) Construction in progress in trust(4) Tenant leasehold and security deposits in trustg. Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.
h. Changes in presentation
MFLP-REIT has transitioned to presenting deferred tax assets under “Investments and other assets” classification and deferred
tax liabilities under “Non-current liabilities” classification since the “Partial Amendments to Accounting Standard for Tax EffectAccounting” (ASBJ Statement No. 28, February 16, 2018) have been adopted from the fiscal period ended January 31, 2019. As
a result, in the balance sheets for the 4th period, “Deferred tax assets” of ¥ 13 thousand previously presented under “Current
assets” is now included in “Deferred tax assets” under “Investments and other assets.”- 36 -

3.

Cash and Cash Equivalents
Reconciliation between cash and cash equivalents and accounts and amounts in the balance sheets is as follows:(Thousands of yen)
5th period(As of January 31, 2019)

4th period(As of July 31, 2018)¥¥

Cash and deposits
Cash and deposits in trust

2,035,779¥

Cash and cash equivalents
4.

936,079

953,525
1,803,520

2,971,858¥

2,757,046

Financial Instruments
a. Status of financial instruments(1) Policy for financial instruments
MFLP-REIT procures funds for acquisition of assets or repayment of debts mainly through issuance of investment units,loans or issuance of investment corporation bonds.
MFLP-REIT generally invests surplus funds in deposits considering safety of the investments although surplus funds
could be invested in securities and monetary claims as a matter of policy.
MFLP-REIT enters into derivative transactions to a limited extent for the purpose of avoiding the risk of interest rate
fluctuation and other risks. MFLP-REIT does not engage in speculative transactions.
(2) Financial instruments, their associated risks and risk management system
Deposits are used for investment of MFLP-REIT’s surplus funds, and are exposed to credit risk such as failure of thefinancial institutions holding the deposits. MFLP-REIT limits the credit risk by restricting the deposit periods to shortterms and selecting financial institutions that have high credit ratings.
Proceeds from loans are used mainly to acquire real estate properties or refinance existing loans. While these loans are
exposed to liquidity risk at the time of repayment, MFLP-REIT mitigates the liquidity risk by diversifying its means offund procurement and lending financial institutions, dispersing repayment dates, establishing commitment lines andsecuring liquidity on hand, and also controls liquidity risk by preparing monthly fund management plans.
In addition, loans with floating interest rates are exposed to the risk of interest rate rising. MFLP-REIT limits the impact
of interest rate rises on its operations by keeping the ratio of interest-bearing debt to total assets at a low level andmaintaining the ratio of fixed-rate long-term loans at a high level.
Tenant leasehold and security deposits in trust are deposits from tenants, and are exposed to liquidity risk at the time thetenants vacate the properties. MFLP-REIT controls the liquidity risk by preparing monthly fund management plans.
(3) Supplementary explanation regarding fair values of financial instruments
The fair value of financial instruments is based on their observable market value, if available. When there is no observable
market value available, fair value is based on a price that is reasonably estimated. Since variable factors are also reflectedin estimating the fair value, different assumptions and factors could result in a different value.
b. Estimated fair value of financial instruments
The carrying amounts, fair values and their differences as of January 31, 2019 and July 31, 2018 are as follows. Financial
instruments for which it is extremely difficult to determine the fair value are excluded from the following tables (Note 2 below):(Thousands of yen)
5th period (As of January 31, 2019)

Carrying amount(1) Cash and deposits¥(2) Cash and deposits in trust

936,079

Fair value¥

2,035,779

Total assets¥

2,971,858¥

Difference

936,079-

2,035,779-

2,971,858-(3) Short-term loans payable

1,700,000

1,700,000-(4) Long-term loans payable

26,300,000

26,362,577¥ 62,577

Total liabilities¥ 28,000,000¥ 28,062,577¥ 62,577- 37 -

(Thousands of yen)
4th period (As of July 31, 2018)

Carrying amount(1) Cash and deposits¥(2) Cash and deposits in trust

953,525

Fair value¥

1,803,520

Total assets¥(3) Short-term loans payable

2,757,046¥

700,000

Difference

953,525-

1,803,520-

2,757,046-

700,000-(4) Long-term loans payable

23,300,000

23,189,445¥ (110,554)

Total liabilities¥ 24,000,000¥ 23,889,445¥ (110,554)(Note 1) Methods to estimate fair values of financial instruments(1) Cash and deposits and (2) Cash and deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(3) Short-term loans payable
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(4) Long-term loans payable
The fair value is determined based on the present value being calculated by discounting the sum of principal and interest by the assumed
interest rate which would be applied if a similar new loan were entered into.
(Note 2) Financial instruments for which it is extremely difficult to determine the fair value(Thousands of yen)
5th period(As of January 31, 2019)
Tenant leasehold and security deposits in trust¥ 1,978,772

4th period(As of July 31, 2018)¥ 1,891,354

Tenant leasehold and security deposits in trust are not subject to fair value disclosure, because a reasonable estimation of future cash flows isdifficult as no market price is available and the actual deposit period cannot be determined even when a contract period is set in the lease
contract since there is a possibility that the leases may be cancelled, renewed or re-signed.
(Note 3) Redemption schedule for monetary claims(Thousands of yen)
5th period (As of January 31, 2019)

Due within one year

Cash and deposits¥

936,079

Cash and deposits in trust¥

2,035,779(Thousands of yen)
4th period (As of July 31, 2018)

Due within one year

Cash and deposits¥

953,525

Cash and deposits in trust¥

1,803,520- 38 -

(Note 4) Repayment schedule for loans(Thousands of yen)
5th period(As of January 31,
2019)

Due within
one year

Short-termloans payable
Long-termloans payable

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

Due after
five years¥ 1,700,000

-

-

-

-

-

-

-

-

¥ 5,300,000¥ 7,100,000¥ 13,900,000(Thousands of yen)
4th period(As of July 31,
2018)

Due within
one year

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

Due after
five years

Short-termloans payable¥ 700,000

-

-

-

-

-

Long-termloans payable

-

-

-

¥ 1,900,000¥ 6,500,000¥ 14,900,000- 39 -

5.

Investment and Rental Properties
MFLP-REIT owns logistics facilities and industrial properties for the purpose of earning rental income. The carrying amount,net changes in the carrying amount during the periods and fair value of these investment and rental properties are as follows:(Thousands of yen)
5th period(From August 1, 2018
to January 31, 2019)

4th period(From February 1, 2018
to July 31, 2018)

Carrying amount¥

Balance at beginning of period

96,664,568¥

77,615,688

Changes during the period

4,660,118

19,048,880

Balance at end of period

101,324,687

96,664,568

Fair value at the end of the period¥

112,140,000¥

105,180,000(Note 1) The carrying amount represents acquisition cost less accumulated depreciation.
(Note 2) Changes in the carrying amount during the 4th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests
in real estate for three properties (¥19,747,009 thousand), and the decrease mainly attributable to depreciation (¥744,962 thousand). Changes
in the carrying amount during the 5th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests in realestate for one property (¥5,395,942 thousand), and the decrease mainly attributable to depreciation (¥772,289 thousand).
(Note 3) The fair value at the end of the period represents the appraisal value or surveyed value by external real estate appraisers.

Information about income and loss from investment and rental properties is stated in Note 8. “Property-related Revenues andExpenses.”- 40 -

6.

Net Assets
a. Stated capital
MFLP-REIT issues only non-par value units in accordance with the Investment Trust Act of Japan and all of the issue prices of
new units are designated as stated capital. MFLP-REIT maintains at least ¥50,000 thousand as the minimum net assets as requiredby the Article 67, Paragraph 4 of the Investment Trust Act of Japan.
b. Distributions
Distributions related to the periods but declared after the balance sheet dates are summarized as follows:(Yen)
5th period(From August 1, 2018 to January 31, 2019)
Total

I. Unappropriated retained earnings

4th period(From February 1, 2018 to July 31, 2018)

Per unit

Total¥ 1,519,739,902¥ 1,444,484,929

84,613,228

88,029,290

Per unit

II. Distributions in excess of retained
earnings
Deduction from unitholders’capitalIII. Distributions

1,519,622,042

Distribution of earnings
Distribution in excess of retained

84,613,228

earnings
Total distributions
IV. Retained earnings carried forward¥¥ 1,604,235,270¥¥

117,860

5,783

1,444,468,678

322

88,029,290

6,105¥ 1,532,497,968
¥

¥

5,497
335

¥

5,832

16,251

In accordance with the distribution policy as defined in the Article 35, Paragraph 1 of the Articles of Incorporation of MFLP-REIT,
distributions shall be in excess of the amount equivalent to 90% of the amount of earnings available for dividends defined in the
Article 67-15 of the Act on Special Measures Concerning Taxation.
Based on this policy, for the fiscal periods ended January 31, 2019 and July 31, 2018, MFLP-REIT declared a distribution amount of¥1,519,622,042 and ¥1,444,468,678, respectively, which are the maximum value of the integral multiple of the total number ofinvestment units issued and outstanding at the end of each period in amounts not in excess of unappropriated retained earnings.
Furthermore, based on the distribution policy as defined in the Article 35, Paragraph 2 of the Articles of Incorporation, MFLP-REIT
executes the distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing unitholders’ capitalfor tax purposes) each fiscal period on a continuous basis.
Based on this policy, for the fiscal period ended January 31, 2019, MFLP-REIT declared the distribution of ¥84,613,228, which is
calculated as being almost equivalent to the remaining amount after subtracting the distribution of earnings of ¥1,519,622,042 from
¥1,604,409,211 or 70% of FFO (funds from operation), as distribution of cash in excess of retained earnings (return of capital
applicable to distribution reducing unitholders’ capital for tax purposes).
For the fiscal period ended July 31, 2018, MFLP-REIT declared the distribution of ¥88,029,290, which is calculated as being almost
equivalent to the remaining amount after subtracting the distribution of earnings of ¥1,444,468,678 from ¥1,532,600,608 or 70% of
FFO (funds from operation), as distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing
unitholders’ capital for tax purposes).
(Note)

MFLP-REIT may execute cash distribution in excess of distributable amount, in an amount it determines within a scope not to exceed the limit stipulated
in the rules and requirements imposed by The Investment Trusts Association, Japan, when MFLP-REIT considers it appropriate, given such factors as
economic environment, trends in the real estate market or leasing market, the situation surrounding owned assets and the financial condition.
In addition, in case that any cash distribution fails to meet the statutory requirements for special tax treatment for investment corporations, MFLP-REIT
may execute cash distribution in excess of distributable amount, in an amount it determines to meet the statutory requirements.

- 41 -

7.

Short-term and Long-term Loans Payable
Short-term and long-term loans payable mainly consisted of bank borrowings under loan agreements. The following tablesummarizes the short-term and long-term loans payable as of January 31, 2019 and July 31, 2018.
(Thousands of yen)
5th period(As of January 31, 2019)
0.0982% unsecured short-term loans¥

0.1036% unsecured short-term loans
0.0832% unsecured short-term loans-

4th period(As of July 31, 2018)¥

500,000

1,700,000

Total short-term loans payable
0.2713% unsecured long-term loans due 2022
0.4213% unsecured long-term loans due 2026

200,000-¥

1,700,000¥

700,000¥

2,000,000
1,500,000¥

2,000,000
1,500,000

0.2400% unsecured long-term loans due 2022
0.3050% unsecured long-term loans due 2023

1,600,000
2,000,000

1,600,000
2,000,000

0.3813% unsecured long-term loans due 2025
0.1425% unsecured long-term loans due 2022

1,500,000
400,000

1,500,000
400,000

0.2113% unsecured long-term loans due 2024
0.4895% unsecured long-term loans due 2027

1,700,000
900,000

1,700,000
900,000

0.1826% unsecured long-term loans due 2023
0.3237% unsecured long-term loans due 2024

2,200,000
600,000

2,200,000
600,000

0.3425% unsecured long-term loans due 2024
0.2188% unsecured long-term loans due 2022

700,000
300,000

700,000
300,000

0.2613% unsecured long-term loans due 2023
0.3125% unsecured long-term loans due 2026

900,000
3,100,000

900,000
3,100,000

0.2169% unsecured long-term loans due 2024
0.3563% unsecured long-term loans due 2025

1,300,000
1,000,000

1,300,000
1,000,000

0.2575% unsecured long-term loans due 2022
0.3319% unsecured long-term loans due 2024

1,000,000
600,000

1,000,000
600,000

0.2375% unsecured long-term loans due 2023
0.3975% unsecured long-term loans due 2026

2,000,000
1,000,000-

Total long-term loans payable(Note)¥

26,300,000¥

23,300,000

The stated interest rates are the weighted average interest rates during the fiscal periods ended January 31, 2019 and July 31, 2018 androunded to the fourth decimal place.

The repayment schedule for loans is disclosed in Note 4. “Financial Instruments.”
MFLP-REIT had the commitment line contracts with two banks as of January 31, 2019 and July 31, 2018.
(Thousands of yen)
5th period(As of January 31, 2019)
Total amount of commitment line contracts¥

6,000,000¥

6,000,000

Loans executed

4th period(As of July 31, 2018)¥

6,000,000¥

6,000,000-

Unused line of credit- 42 --

8.

Property Leasing Business Revenues and Expenses
The following table summarizes the revenues and expenses generated from the property leasing business for the fiscal periods
ended January 31, 2019 and July 31, 2018.
(Thousands of yen)
5th period(From August 1, 2018
to January 31, 2019)

4th period(From February 1, 2018
to July 31, 2018)

A. Property leasing business revenues
Property-related revenues
Rental revenues¥

3,026,801¥

108,799

Common area charges
Total
Other revenues related to property leasing
Utilities charges
Parking lots

108,694¥

3,135,601¥

3,037,442¥

105,030
8,746¥

85,3109,236¥

145,331¥111,226¥

3,280,932¥

3,148,668¥

178,765¥

179,549

31,555

Others
Total
Total property leasing business revenues
B. Property leasing business expenses
Property-related expenses
Outsourcing service expenses

2,928,747

16,679

Utilities expenses
Repair expenses

96,567
20,24778,31732,173

Taxes and dues
Depreciation and amortization

257,608772,289

257,614744,962

Others12,65913,508

Total property leasing business expenses¥

1,338,137¥

1,306,126

C. Operating income from property leasing [A-B]¥

1,942,794¥

1,842,542

Transactions with major unitholders for the fiscal periods ended January 31, 2019 and July 31, 2018 are as follows:(Thousands of yen)
5th period(From August 1, 2018
to January 31, 2019)

4th period(From February 1, 2018
to July 31, 2018)

Operating transactions:Operating revenues
Operating expenses¥¥

109,537
70,817¥¥

141,756
70,891¥

88,426¥

12,106,173

Non-operating transactions:Purchase of trust beneficiary interests in realestate9.

Income Taxes
MFLP-REIT is subject to Japanese corporate income taxes on its taxable income. The tax effects of temporary differences thatgive rise to a significant portion of the deferred tax assets and liabilities as of January 31, 2019 and July 31, 2018 as follows:(Thousands of yen)
5th period(As of January 31, 2019)

4th period(As of July 31, 2018)

Deferred tax assets:
Accrued enterprise tax

¥

15

¥

13

Total deferred tax assets

¥

15

¥

13

Net deferred tax assets

¥

15

¥

13

- 43 -

Reconciliations between the Japanese statutory tax rate and the effective income tax rate with respect to pre-tax income
reflected in the accompanying statements of income for the fiscal periods ended January 31, 2019 and July 31, 2018 are as
follows:
5th period(As of January 31, 2019)

4th period(As of July 31, 2018)

Statutory tax rate

31.51%

31.74%

Adjustments:
Deductible distributions(31.49)(31.72)

0.04

0.04

0.06%

0.06%

Other
Effective income tax rate after application of tax-effectaccounting

10. Per Unit Information
The following table summarizes per unit information for the fiscal periods ended January 31, 2019 and July 31, 2018.
5th period(From August 1, 2018
to January 31, 2019)

4th period(From February 1, 2018
to July 31, 2018)

Earnings per unit:¥

Net income per unit (yen)Weighted average number of units outstanding (unit)

5,783

¥

5,499

262,774

262,659

5th period(As of January 31, 2019)

4th period(As of July 31, 2018)

Net assets per unit (yen)¥279,292¥

279,340

Net income per unit is calculated by dividing net income by the daily weighted average number of investment units outstanding
during the period. Diluted net income per unit is not stated because there are no dilutive investment units.
11. Leases
The future minimum rental revenues from tenants subsequent to January 31, 2019 and July 31, 2018 under non-cancelable
operating leases of properties are as follows:(Thousands of yen)
5th period(As of January 31, 2019)
Due within one year¥

Due after one year

5,598,916

4th period(As of July 31, 2018)¥

11,780,363

Total

¥

- 44 -

17,379,280

5,494,623
10,934,324¥

16,428,947

12. Transactions with Related Parties
Significant transactions and balances with related parties for the fiscal period ended January 31, 2019 are as follows:

Classification

Major
corporateunitholder

Name ofcompany

Mitsui
Fudosan Co.,Ltd.

Mitsui
Fudosan
Logistics
REIT
Management
Co., Ltd.
Mitsui
Fudosan
Building
Management
Co., Ltd.

Subsidiaryof major
corporateunitholder

Mitsui
FudosanFacilities Co.,
Ltd.

Address

Chuo-ku,Tokyo

Statedcapital(millionsof yen)¥ 339,766

Type ofbusiness

Real estatebusiness% ofvotingBusinessrights relationship(owned)Logistics
10.99% management
outsourcing

Type oftransaction(Note 2)

Transaction
amount(thousandsof yen)Logistics
managementfee¥ 68,749

Repairs andrelated work

1,220

Operatingaccounts
payable¥ 13,057

29,242Otherexpensesrelated toproperty
leasing847

Rent
income, etc.

109,537

Operatingaccounts
receivable

Purchase oftrust
beneficiaryinterests inreal estate

88,426-Chuo-ku,Tokyo

Investment
200 managementbusiness

-

Asset
Asset
management management
outsourcing fee (Note 3)

336,593

Accounts
payableChuo-ku,Tokyo

Property
490 managementbusiness-

Building
Repairs andmanagement
related work
outsourcing

2,937

-

Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
management
fee
Repairs andrelated work
Other
Building
management expenses
related tooutsourcing
property
leasing
Other
incomeMitsui
FudosanFacilities
West Co.,Ltd.

Account

Balance at
end ofperiod(thousandsof yen)Osaka-shi,
Osaka

Property
200 managementbusiness-

Building
management
fee
Repairs andBuilding
related work
management
Other
outsourcing
expensesrelated toproperty
leasing-379,328-

65,744
16,602 Operating
accounts
payable14,424

1,423

234

-

7,130
2,131 Operating
accounts
payable94(Note 1) Consumption taxes are not included in the transaction amounts but included in the balances at the end of the period.
(Note 2) Methods to determine terms and conditions of transactions(1) Asset management fee is in accordance with terms set forth in the Articles of Incorporation of MFLP-REIT.
(2) Other terms and conditions of these transactions are determined based on the prevailing market price.
(Note 3) The asset management fee above includes ¥26,343 thousand of a management fee for property acquisitions included in the book value of realestate, etc. individually.

- 45 --

4,508

Significant transactions and balances with related parties for the fiscal period ended July 31, 2018 are as follows:

Classification

Major
corporateunitholder

Subsidiaryof major
corporateunitholder

Name ofcompany

Mitsui
Fudosan Co.,
Ltd.

Address

Chuo-ku,Tokyo

Statedcapital(millionsof yen)Type ofbusiness

Real estate¥ 339,766
business% ofvotingBusinessrights relationship(owned)Logistics
10.99% management
outsourcing

Type oftransaction(Note 2)

Transaction
amount(thousandsof yen)Logistics
managementfee¥ 69,283

Repairs andrelated work

607

Account

Balance at
end ofperiod(thousandsof yen)Operatingaccounts
payable¥ 15,341

58,003

Other
expensesrelated toproperty
leasing

1,000

Rent
income, etc.

141,756

Operatingaccounts
receivable

Purchase oftrust
beneficiaryinterests inreal estate

12,106,173--

Mitsui
Fudosan
Logistics
REIT
Management
Co., Ltd.

Chuo-ku,Tokyo

Investment
200 managementbusiness

-

Asset
Asset
management management
outsourcing fee (Note 3)

327,740

Accounts
payable302,929

Mitsui
Fudosan
Building
Management
Co., Ltd.

Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
Repairs andmanagement
related work
outsourcing

3,957

Operatingaccounts
payable

1,377

12,494 Operating
accounts
payable12,835

Mitsui
FudosanFacilities Co.,Ltd.

Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
management
fee
Repairs andrelated work
Other
Building
management expenses
related tooutsourcing
property
leasing
Other
incomeMitsui
FudosanFacilities
West Co.,Ltd.

Osaka-shi,
Osaka

Daiichi Engei ShinagawaCo., Ltdku, Tokyo
Hino Tokutei
Mokuteki
KaishaChuo-ku,Tokyo

Property
200 managementbusiness-

480

Leasing andotherbusinesses

-

3,311

Real estatebusiness-

Building
management
fee
Repairs andBuilding
related work
management
Other
outsourcing
expensesrelated toproperty
leasing
Repair andmaintenance Repairs andof real estate related work
held
Purchase oftrust
beneficiaryinterests inreal estate

66,665

1,660

214

-

6,242
1,278 Operating
accounts
payable

1,443

88

788

Operatingaccounts
payable527

7,562,921

Operatingaccounts
receivable

53,987(Note 1) Consumption taxes are not included in the transaction amounts but included in the balances at the end of the period.

- 46 --

(Note 2) Methods to determine terms and conditions of transactions(1) Asset management fee is in accordance with terms set forth in the Articles of Incorporation of MFLP-REIT.
(2) Other terms and conditions of these transactions are determined based on the prevailing market price.
(Note 3) The asset management fee above includes ¥48,895 thousand of a management fee for property acquisitions included in the book value of realestate, etc. individually.

13. Segment and Related Information
For the fiscal periods ended January 31, 2019 and July 31, 2018
a. Segment information
Segment information has been omitted as MFLP-REIT engages in a single segment of the property leasing business.
b. Related information(1) Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statements of income.
(2) Information by geographical area(i) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of the total
operating revenues on the statements of income.
(ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheets.
(3) Information on major tenant
For the fiscal period ended January 31, 2019
Disclosure of this information has been omitted because there is no tenant whose operating revenues makes up 10%
or more of total operating revenues.
For the fiscal period ended July 31, 2018
Tenant nameOperating revenues

Nippon Express Co., Ltd.

(Note)

Related segment
Property leasing business(Note) Figures are not disclosed because consent has not been obtained from the tenants.

14. Significant subsequent events
1. Issuance of new investment units
Regarding the issuance of new investment units decided in the meetings of the Board of Directors of MFLP-REIT held on January
9, 2019 and January 23, 2019, as stated below, payment for the issuance of said units was completed through public offering on
February 1, 2019 and through a third-party allotment on February 27, 2019.
As a result, the total investment amount (net) is ¥107,166,453,976, and there are 379,000 units of total number of investment units
issued and outstanding.
a. Issuance of new investment units through public offering (primary offering)Number of new investment units to be issued:
110,700 units (Domestic: 75,900 units, Overseas: 34,800 units)
Issue price:
Total amount of issue price:¥313,986 per unit
¥34,758,250,200

Amount to be paid in (paid-in amount):
Total amount to be paid in (total paid-in amount):¥303,680 per unit
¥33,617,376,000

Payment date:February 1, 2019

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b. Issuance of new investment units through a third-party allotment (third-party allotment)
Number of new investment units to be issued:
5,526 units
Amount to be paid in (paid-in amount):
Total amount to be paid in (total paid-in amount):¥303,680 per unit
¥1,678,135,680

Payment date:
Allottee:February 27, 2019
Daiwa Securities Co. Ltd.

2. Acquisitions of properties
MFLP-REIT acquired the trust beneficiary interests for the following assets on February 4, 2019, March 1, 2019 and April 5, 2019
(6 properties inclusive of additional acquisition; total amount of acquisition price is ¥53,128 million).
Acquisition priceCategory

Property no.

Property nameLocation(Note 1)(millions of yen)

Acquisition date

5,013
MFLP Hino(Note 2)Hino-shi, Tokyo

MFLP Tsukuba

Tsukubamirai-shi,(Note 3, 6)

Ibarakiquasi coownership interest)

L-13

MFLP Inazawa

Inazawa-shi, Aichi

16,200February 4, 2019

L-14

MFLP Atsugi II

Isehara-shi,
Kanagawa

13,100February 4, 2019

MFLP Fukuoka I

Sue-machi,
Kasuya-gun,i) 4,263ii) 1,000i) February 4, 2019

Fukuoka

Total 5,263

Inzai-shi, Chiba(Additional 80%
quasi co-

L-10

Logistics facilities(Additional 10%
quasi co-

L-12

L-15

February 4, 2019ownership
interest)(Note 4, 6)

3,512(Additional 40%

March 1, 2019ii) April 5, 2019

10,040Industrial realestate

I-1

MFIP Inzai(Note 5)February 4, 2019ownership interest)(Note 1) “Acquisition price” is the purchase price of trust beneficiary interests as set forth in each agreement for sale and purchase oftrust beneficiary interest for the acquired asset, rounded down to the nearest million yen. The transaction price does notinclude consumption tax and local consumption tax or the various costs required in the acquisition.
(Note 2) For “MFLP Hino,” the acquisition price is the prorated figure equivalent to the quasi co-ownership interest in this property
that MFLP-REIT additionally acquired (10%).
(Note 3) For “MFLP Tsukuba,” the acquisition price is the prorated figure equivalent to the quasi co-ownership interest in thisproperty that MFLP-REIT additionally acquired (40%).
(Note 4) For “MFLP Fukuoka I,” the acquisition price noted in the upper section is the prorated figure equivalent to the quasi coownership interest in this property that MFLP-REIT initially acquired (81%), and the price noted in the lower section is theprorated figure equivalent to the quasi co-ownership interest of the same additionally acquired (19%).
(Note 5) For “MFIP Inzai,” the acquisition price is the prorated figure equivalent to the quasi co-ownership interest in this property
that MFLP-REIT additionally acquired (80%).
(Note 6) The sale and purchase agreements relating to “MFLP Tsukuba” and “MFLP Fukuoka I” (19% quasi co-ownership interest)
fall under the definition of forward commitments, etc. (as defined as “a postdated sales contract under which payment anddelivery shall be made at least one month after the conclusion of the contract, or any other contract similar thereto” stated in
the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.” established by the
Financial Services Agency).

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3. Borrowing of funds
MFLP-REIT has borrowed the following funds to apply to part of the acquisition funds and related expenses for the real estate
trust beneficiary interests in the above 2. Acquisitions of properties, as well as to the repayment of loans.

LenderMizuho Bank, Ltd.
The Bank of Fukuoka,
Ltd.
Sumitomo Mitsui
Trust Bank, Limited

Borrowingamount(millions of
yen)
2,900
1,100
1,000

Interest rate

Drawdown date

Repayment date

0.08387%

February 4, 2019

April 5, 20190.08318%

March 1, 20190.09591%

April 5, 2019

May 7, 2019
May 31, 2019

Repayment
methodCollateral

BulletUnsecured

repayment

Non-guaranteed

BulletUnsecured

repayment

Non-guaranteed

BulletUnsecured

repayment

Non-guaranteed
UnsecuredNon-guaranteed

Sumitomo Mitsui
Banking Corporation

1,000

0.25%

February 4, 2019

February 6, 2023

Bulletrepayment

Sumitomo Mitsui
Banking Corporation

1,000

0.1475%February 4, 2019

February 5, 2024

Bulletrepayment

UnsecuredNon-guaranteed

Sumitomo Mitsui
Trust Bank, Limited

1,500

0.1475%February 4, 2019

February 5, 2024

Bulletrepayment

UnsecuredNon-guaranteed

Mizuho Bank, Ltd.

2,000

0.36869%

February 4, 2019

August 4, 2028

MUFG Bank, Ltd.

1,000

0.25%

February 4, 2019

February 6, 2023

MUFG Bank, Ltd.

500

0.2313%February 4, 2019

February 4, 2026

BulletUnsecured

repayment

Non-guaranteed

BulletUnsecured

repayment

Non-guaranteed

BulletUnsecured

repayment

Non-guaranteed
UnsecuredNon-guaranteed

The Bank of Fukuoka,
Ltd.

2,000

0.3988%February 4, 2019

February 5, 2029

Bulletrepayment

Shinkin Central Bank

1,800

0.1863%February 4, 2019

February 4, 2025

Bulletrepayment

UnsecuredNon-guaranteed

The Norinchukin
Bank

1,000

0.2313%February 4, 2019

February 4, 2026

Bulletrepayment

UnsecuredNon-guaranteed

500

0.1163%February 4, 2019

February 6, 2023

500

0.1475%February 4, 2019

February 5, 2024

The Chiba Bank, Ltd.

1,000

0.2313%February 4, 2019

February 4, 2026

The Yamaguchi Bank,
Ltd.

600

0.2313%February 4, 2019

February 4, 2026

600

0.20869%

February 4, 2019

August 4, 2025

20,000---Mizuho Trust &Banking Co., Ltd.
Mizuho Trust &Banking Co., Ltd.

Mitsui Sumitomo
Insurance Company,
Limited
Total

*

*

*

- 49 -**

BulletUnsecured

repayment

Non-guaranteed

BulletUnsecured

repayment

Non-guaranteed

BulletUnsecured

repayment

Non-guaranteed

Bulletrepayment

UnsecuredNon-guaranteed

BulletUnsecured

repayment

Non-guaranteed--