Securities Code 3471

13 th Fiscal Period(Fiscal Period Ended January 31, 2023)

Investor Presentation
Material

Mitsui Fudosan Logistics Park Inc. (MFLP-REIT)
0

MEMO

1

Table of Contents
1. Highlights

4. Appendix…… P04•Our Portfolio…… P47

1-1 External Growth…… P05•Individual Property Income Statement…… P49

1-2 Internal Growth…… P11for 13th Fiscal Period

1-3 Initiatives for ESG…… P12

1-4 Financial Strategy

Operating Highlights…… P50…… P13•Appraisal Summary for the End of 13th Fiscal
Period

1-5 DPU Growth…… P14•Statement of Income and Balance Sheet…… P51

1-6 14th Fiscal Period (Ended July 2023) P/L…… P15•External Evaluation and Certifications…… P52•Investment Unit Price Trends/Status ofUnitholders…… P53…… P54

2. Growth Strategy of MFLP-REIT……

P19• Mitsui Fudosan’s Major Development /

……

P21

Operation Track Record

2-2 Internal Growth Strategy

……

P28

2-3 Initiatives for ESG

……

P31

2-4 Financial Strategy

……

P35

2-5 DPU Growth

……

P37

Basic Strategy and Four Roadmaps
2-1 External Growth Strategy(Expansion of Asset Size)

Notes on Matters Stated in This Document

Disclaimer

3. Market Overview
3-1 Market Overview…… P402

1. Highlights

3

1

Operating Highlights

Continued steady growth through strategic partnership with Mitsui Fudosan
13th Fiscal Period (FP) Financial Summary••••

Financial Summary

Distributions per unit (DPU)*

13th FP: Revenue, Profit, DPU up for 12 consecutive FPs
Operating revenue 10.9 billion yen (+0.35 bn vs 12th FP act.)
Ordinary income
4.2 billion yen (+0.03 bn vs 12th FP act.)
Net income
4.2 billion yen (+0.04 bn vs 12th FP act.)• 13th FP actual
8,401 yen (+6.4% vs 11th FP act.)• 14th FP forecast 8,772 yen (+5.0% vs 12th FP act.)• Average annual growth of 8.4% since IPO

1-1 External Growth• Acquire MFLP Osaka Katano (16.5 bn yen) in February 2023.
Asset size up to 358.7 billion yen, further improving portfolio
stability• Of 11 ROFL* properties (1.01mn ㎡), 8 properties(0.83mn ㎡) already completed: continue to have access toexternal growth opportunities

1-2 Internal Growth• Market firm on continued strong demand for logistics facilities• End-13 th FP occupancy rate* remained high at 99.8%, expect
to stay at around 100% in the 14th and 15th FPs• 84.7% of floor space up for lease renewal in 14 th FP has beensigned (or spoken for)• Majority of utilities expenses are borne by tenants: impact ofrising energy costs on MFLP-REIT is limited

1-3 ESG Initiatives
Acquire top 5 Star GRESB rating; acquire both GreenStar
rating and top A level GRESB rating for disclosure for second
consecutive year
• Completed green power supply framework; common areas of
7 Greater Tokyo properties now on green power• Solid progress on the environmental KPIs set in March 2022•

1-4 Financial Strategy• End-13th FP (act.) and end-14th FP (forecast) LTV* 35.9% and39.0% respectively. Projected acquisition capacity* as of end-14th
FP (at 50% LTV): 77.0 billion yen.
• First J-REIT to leverage Sustainability-Linked Loanframework to raise funds (10.0 billion yen)

* For further details, please refer to [Highlights] [ROFL: Properties defined in “Right of first look and preferential negotiation rights agreement”] in the Notes on Matters Stated in this Document on p.55-56

4

1-1. External Growth 1 - Property acquired in the 14th fiscal period -Key points and impact of MFLP Osaka Katano acquisition
Key points of the acquisition• Located in inland Osaka market, where demand is strong. Acquire a superior, highfunctionality advanced logistics facility developed by Mitsui Fudosan at a reasonable price• Achieve enhanced portfolio stability• Acquisition funded by cash on hand and debt, enabling continuous DPU growth
MFLP Osaka Katano

Impact of acquisition
End of 13th fiscal period(January 31, 2023)

MFLP Osaka Katano

After the acquisitionof MFLP Osaka Katano

No. of properties/
Asset Size

24 properties /342.2 billon yen

1 property /16.5 billion yen

25 properties /358.7 billon yen

Adjusted forecast
NOI yield*

4.9%

5.1%

4.9%

Average building age*

6.3 years

1.4 years

6.1 years

Green Building certification*

96.3%

100％

96.4%

LTV

35.9%

39.0%

LTV-based capacity for
acquisitions (LTV at 50%)

95.0 billion yen

LTV remains low evenafter acquisition, maintainhigh acquisition capacity

Forecast DPU for 14th FP(FP ending July 2023)

Before the acquisitionof MFLP Osaka Katano(As of September 14, 2022)

8,263 yen

* For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.55-56.

As a result of MFLP Osaka Katanoacquisition, forecast DPU up 6.2％

77.0 billion yen
After the acquisitionof MFLP Osaka Katano(As of March 14, 2023)

8,772 yen5

1

-1. External Growth 1 - Property acquired in the 14th fiscal period -MFLP Osaka Katano

Slope

Daini-Keihan
Road

Approx.
1.0 kmfrom IC

LED

Emergency
Cafeteria
power/Shopsgenerator

LoungeCASBEENew construction
Rank A

Solar
panelsOverview of the property
Land

Leasehold interest (fixed-term landlease right for business purpose),
Proprietary ownership

Adjusted forecast
NOI yield*

5.1％

Age of building

Property type

1.4 years

Slope

Location Advantages

Appraisal NOI yield*

5.0 %• Located along National Route 1 and Daini-Keihan Road, approximately 1 km from the Katano
Minami Interchange and 1.2 km from the Neyagawa Kita Interchange, the property has easy
access to the Chugoku Expressway and Meishin Expressway, making it an excellent location as arelay base for western and eastern Japan.
• Located within 15 km of downtown Osaka and 25 km of downtown Kyoto. The suburban city of
Katano has a large population and a large number of households as a bedroom town . Excellent
location as a distribution base in close proximity to consumption areas.
• Easy commute to the nearest station, JR Hoshida Station, a 12-minute walk away, making it
easy to secure employees.

Land

Leasehold interest (fixed-term landlease right), Proprietary ownership

Features of Building

Location

Katano-shi, Osaka

Completion

September 2021

Acquisition dateFebruary 1, 2023

Acquisition price

16,500 million yen

Appraisal value*

16,500 million yen

Adjusted forecast
NOI yield

5.1 % (after depreciation: 1.8 ％)(breakdown)

79.6% / 20.4%(lease term)to July 30, 2070

Buildings

Proprietary ownership

Structure

RC/4F

Property type

Slope

Truck berth

1F(double-sided)/3F

Emergency power
generator

Capable of generating electricity
for 72 hours

Main tenant

NTT LOGISCO Inc.

Green Building
certification

CASBEE New construction
Rank A

Gross floor area*

68,528㎡

Leasable area*

67,264㎡• Double-sided with truck
berths on the north and south
sides of the first floor which canaccommodate high frequency
of arrivals and departures.
• In addition to the “CASBEE
New Construction
Certification” Rank A, ESGconscious facility operations
include green power supply bysolar panels, emergency
generator capable ofgenerating electricity for 72
hours, and LED lighting.

* For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.55-56

Firm market conditions for otherarea in Keihan (between Kyoto andOsaka) area
thousand ㎡

150

15%

100

10%

50

2.1%

5%
0.0%

0

0%
Q1

Q2

New supply

Q3

2021

Q4

New demand

Q1

Q2

Q3

2022

Vacancy rate

Q4

Vacancy rate(logistics facilities 1 year
old or older)

Source: CBRE K.K. (including forecast figures) (February 2023)* Survey of rental logistics facilities held by real estate investment companies,
real estate development companies, etc. with total floor area of 5,000 m2 or more.

61-1. External Growth 1 - Property acquired in the 14th fiscal period -MFLP Osaka Katano

Daini-Keihan
Road

Slope

Approx.
1.0 kmfrom IC

LED

Emergency
Cafeteria
power/Shopsgenerator

LoungeCASBEENew construction
Rank A

Solar
panelsNear junction of major routes for West and East Japan in a commuter town close to both Osakaand Kyoto, well-suited as a base for deliveries to consumers

Convenient commute; surrounding area
Convenient commute to thenearest station, JR Hoshida
Station, a 12-minute walk away,
making it easy to secure
employees.
As part of a rezoning project, thearea north of Hoshida station is
being actively developed, withmultiple projects for retailfacilities, condominiums anddetached housing. This should
improve prospects for hiring andboost the population in thesurrounding area.

Favorable demographics: access toconsumers and ease of hiring

MFLP Osaka Katano
Retailfacility

Factory
Retail12 minutes facility

Detached
housing

on foot

0

5

15

20 (ten thousandpeople)Population
Number ofHouseholds0

Detached
housing

10

5

10(ten thousandhouseholds)■ Average for cities/towns/villages in Osaka Prefecture
Hoshida Sta.

(excluding City of Osaka)
Condominium
project■ Average for city of Katano and 2 neighboring cities(Hirakata/Neyagawa)* Above chart created by Mitsui Fudosan Logistics Asset Management
based on annual population estimates released by Osaka Prefecture (2022)

7

1-1. External Growth 1 - Property acquired in the 14th fiscal period -MFLP Osaka Katano

Slope

Efficient facility operations

LED

Emergency
Cafeteria
power/Shopsgenerator

CASBEENew construction
Rank A

LoungeSolarpanelsGreen power supply by solar panels

Truck berths on North and South side at ground level:
enabled for frequent arrivals and departures. Set up for
efficient facility operations with separate entry and exit points
for trucks and one-way travel onsite
Truck route

Approx.
1.0 kmfrom IC

Daini-Keihan
Road

This property has both roof-top garden space and solar panels installed on the roof.
Able to provide green power in both common and tenant areas: enabled to provide green power
to tenants for use in dedicated tenant areas.

■ Image of power supply
Solar panels*

Truck
exit

(Planned installation June 2023)
Roof-topgardenTruck berthGreen power

Green power
Property(Acquired February 2023)

Commonarea

Truck berth

Dedicated
tenant area

Power Co.

Truck
entrance

Electric power* With regard to solar panels, will monitor generation capacity
and usage, MFLP-REIT plans to acquire them

ESG-conscious facility operations
CASBEE New
Construction
Certification

LED lighting

Consideration forthe surrounding
environment

LoungeRanked A under CASBEE
New Construction
Certification, an assessmentof comprehensive building
environmental performance

Use LED lighting which
reduces energy
consumption versus
incandescent lighting

Out of consideration forresidents in surrounding
areas, taller trees
planted onsite

Created a pleasant work environment for workers byproviding a stylish lounge

Emergency power
generator
Onsite 72-hour backup
power generation facilities
capabilities as a part of
BCP measures available
for part of the facility81-1. External Growth 2

Solid progress toward achieving medium-term asset size target of 500 billion yen

Properties
covered by the“Right of firstlook andpreferential
negotiation rights
agreement”

11 properties

Construction completed
8 properties 830,000 ㎡
LeasedLeasedMFLP Hino(75%)

LeasedMFLP Tokorozawa
LeasedLeasedUnder construction
3 properties 180,000 ㎡
LeasedMFLP Ichikawa Shiohama II(60%)
LeasedNEW

SG Realty MFLP
Fukuoka Kasuya(50%)

Osaka City, Konohana-ku,
Torishima Logistics Project(50%)

MFLP Yatomi Kisosaki
NEW

Leased

1,010,000 ㎡
MFLP Funabashi II

MFLP Funabashi III

MFLP Tomei Ayase(50%)

MFLP Zama(41.5%)

MFLP Shinkiba I

Acquisition from

Propertyacquiredin 14th FP
16.5 billion yen

properties covered by the“Right of first look andpreferential negotiation
MFLP Osaka Katano

MFLP-REIT’s
asset size

rights agreement”

24 properties

25 properties
358.7 billion yen

20 properties

16 properties

billion yen

13 properties

billion yen

January 31,
2018

297.6

billion yen

Aim for continuous
external growthbillion yen

156.7

10 properties

78.7

282.4

25 properties
358.7 billion yen

Propertyacquired in
the 14th FP

21 properties

342.2

1,490,000 ㎡

Medium-term
asset size target
500.0 billion yen

103.5

billion yen

billion yen

January 31,
2019

January 31,
2020

January 31,
2021

January 31,
2022

January 31,
2023

After theacquisition of theproperty acquiredin the 14 th FP

91-1. External Growth 3 – Advantage of portfolio and pipeline -Superior locations of properties defined in Right of First Look and Preferential
Negotiation Rights Agreement and developed by Mitsui Fudosan
Greater Tokyo area

Greater Osaka area

：Logistics facilities properties heldby MFLP-REIT：Industrial real estate*1 properties heldby MFLP-REIT：Properties defined in Right of first look andpreferential negotiation rights agreement：Properties developed by Mitsui Fudosan*1 For further details, please refer to [Industrial real estate] in the Notes on Matters Stated in this Document on p.55-56.
*2 Population distribution data based on Ministry of Land, Infrastructure and Transport’s data on Future Population Estimates by 1 k㎡ (2018 Estimates)

Population Density*2（people/k㎡）

0～5,000
5,001～10,000
10,001～101-2. Internal Growth

Maintain high occupancy on strong demand, strength of Mitsui Fudosan’s leasing
Increase in demand for floor space in logistics facilities■ Market conditions of Greater Tokyo area
thousand ㎡■ Market conditions of Greater Osaka area

Forecast

10%■ Market conditions of Greater Nagoya area

Forecast

1,500

10%

Forecast

1,000

15%

4,000
3,000

1,000

10%

5%

2,000

5%

4.1%

8.1%

500

1.3%

500

5%

1,000
0.7%
0

0%
2019

2020

New supply

2021

2022

New demand

2023

2024

2019

2020

Vacancy rate(logistics facilities 1 year old or older)

Vacancy rate

Status of lease signings and occupancy rates(thousand ㎡)

250

100%

100%

100%

99.9%

99.8%

100%

(forecast)

End-FP occupancy rate

200

2021

2022

0%

2023

0

2024

0%
2019

2020

2021

2022

2023

2024

Source: CBRE K.K. (including forecast figures) (February 2023)* Survey of rental logistics facilities held by real estate investment companies,
real estate development companies, etc. with total floor area of 5,000 m2 or more.

Impact of rising energy costs■ Breakdown of power cost by facility type (based on floor area)

100%(forecast)

100%

89.3%

1.6%

1.0%

0

316

Majority of electricity costs borne by tenants (MFLP-REIT only bears electricity costs forcommon areas in multi-tenant properties). MFLP-REIT’s exposure to power costs is limited

Unsigned

Multi-tenant properties*
16 properties

Spoken for
Signed

150

132

129
116

Unsigned
4.0%

100

83
96.0%

48

50

Single-tenant properties/BTS* 9 properties

Tenant leased area/Tenant indirectly
responsible(MFLP REIT pays provider on behalf of tenants)
about 83%

15.3%
15.0%

Tenant directly
responsible(Tenant pays
provider directly)

69.6%

29
0

0%
9th FP(21/1)

10th FP(21/7)

11th FP(22/1)

12th FP(22/7)

13th FP(23/1)

14th FP(23/7)

15th FP(24/1)* Figures based on leased floor area based on signed contracts in place as of January 31, 2023.
Figures prior to 13th FP based on leased floor area for all contracts which expired during the relevant period.

Common areas /MFLP REIT bears cost
about 17%*

MFLP REIT’s exposure to
power costs limited* For further details, please refer to [Multi-tenant properties/Single-tenant properties/BTS] in the Notes on
Matters Stated in this Document on p.55-56.
* The ratio of electricity costs for common areas to electricity costs for multi-tenant properties in the 12thand 13th fiscal periods.

11

1-3. Initiatives for ESG

Further strengthening of ESG initiatives
GRESB Real Estate Assessment

Progress on Environmental KPIs

MFLP-REIT acquired top GRESB rating of 5 Star in the 2022
GRESB Real Estate Assessment. Also rated GreenStar, andreceived the top rating of A level under GRESB’s disclosure
assessment, both for the second consecutive year.

Promoting transition to green power
Transition to green power use in common areas from October 2022 at 7 multitenant properties in Greater Tokyo. Also preparing framework to supply green
power for use in dedicated tenant space in response to tenants needs. Plan tostart green power use in common areas for properties in the Greater Nagoya,Greater Osaka and Hiroshima areas. By October 2023, in combination withadditional Greater Tokyo properties adopting green power, 14 properties will
have transitioned to using green power in common areas. Also considering
additional installation of solar power facilities and a scheme to use generated
green power on site or to transmit to other MFLP-REIT properties.

■ Trend in green power use ratio in common areas for multitenant properties
7/15
properties

14/16
properties

MFLP Osaka Katano, acquired early in the 14th FP, has received a
CASBEE New Construction Certification of A; LED lighting is alreadyinstalled.
Making good progress toward environmental KPIs in conjunction with
LED lighting conversions at existing properties and the adoption of green
leases for new contracts. Will continue to enhance initiatives to achieveenvironmental KPIs.

■ Progress on KPIs
Targets

End of 12th FP

After the acquisitionof MFLP Osaka Katano

Logistics facilities

Maintain at least 95%

96.3％(ref. 21/22 properties)

96.4%(ref. 22/23 properties)

Portfolio

Maintain at least 90%

92.5％(ref. 21/24 properties)

92.8%(ref. 22/25 properties)

Owner-managed portion

100％ by 2023

91.6％*1*2（ref. 13/15 properties）

97.5%*1*2(ref. 15/16 properties)

Tenant-managed portion

100％ by 2030

83.6％*1（ref. 16/24 properties）

84.4%*1(ref. 17/25 properties)

At least 75% by 2025
At least 90% by 2030

23.1%*3

28.3%*3

Green Building certification

LED lighting adoption ratio

Green leases adoption ratio

As of October 2022

Launch dedicated ESG site
To enhance stakeholders’ understandingof MFLP-REIT’s and the AssetManagement Company’s ESG initiatives,
the ESG page on MFLP-REIT’s website
will be revamped, with the launch of a
dedicated ESG site.

Forecast
as of October 2023

Portfolio*1 Calculations based on total floor area adjusted to reflect quasi co-ownership interests.
*2 Exclude single tenant properties from the denominator of properties owned by MFLP-REIT.
*3 Calculations based on leasable floor area adjusted to reflect quasi co-ownership interests.

Objectives under consideration■ Inclusion in major indices such as ESG Indices■ Quantitative scenario analysis

121-4. Financial Strategy

LTV management and stable financial operation
Major changes in financial metrics

Interest-bearing debt and borrowing related toacquisition of MFLP Osaka Katano

End of 14th
fiscal period

End of 15th
fiscal period(January 31, 2023)(July 31, 2023)(forecast)(January 31, 2024)(forecast)

Total interestbearing debt

120.7 billion yen

135.7 billion yen

132.7 billion yen

LTV

35.9%

39.0%

38.5%

End of 13th
fiscal period•

Impact of rising interest rates limited by staggering maturities andshifting to fixed debt. Borrowed 16.5 billion yen for acquisition of MFLP
Osaka Katano, all on fixed rates with staggered maturities(million yen)
14,000

LTV-based capacity for
acquisitions (LTV to 50%)

95.0 billion yen

77.0 billion yen

79.0 billion yen

Average interest rate

0.39%

0.46%

-

■Existing LT (fixed) debt/bonds■Existing LT (floating) debt

■ ST debt to acquire MFLP Osaka Katano■ LT debt to acquire MFLP Osaka Katano

12,00010,0008,000

Average time to maturity(long-term only)

8.2 years

8.3 years

8.3 years(long-term only)

98.3%

98.5%

98.5%

Commitment line

10.0 billion yen

10.0 billion yen

10.0 billion yen

Fixed interest ratio

6,000

4,000
2,000
0

第14期 第16期 第18期 第20期 第22期 第24期 第26期 第28期 第30期 第32期 第34期

ESG Finance* Reflects debt maturities after the borrowings on February 1, 2023.

■Sustainability Linked Loan

■Green Bonds / Green Loans

MFLP-REIT has developed a Sustainability Linked Loan Framework, a first for a J-REIT and borrowed 10.0 billion yen
as a Sustainability Linked Loan from syndicate of 21 banks arranged by Sumitomo Mitsui Banking Corporation in
February 2023. The Framework has received a “Second Opinion” by R&I, a third-party organization.

Second bond issued November 2022 was a Green Bond. Also
continued to borrow Green Loans. Going forward, will continue to
use ESG financing to promote ESG-friendly asset management

LenderSyndicate of 21
banks arranged by
Sumitomo Mitsui
Banking Corporation

AmountBorrowing period

Sustainability Performance Target (SPT)
Reducing CO2 emissions intensity (Scope 1 and 2) oflogistics facilities from 2016 by the following percent

10.0 billion yen
4 - 10 years

by 2024

by 2027

by 2030

60%

90%

100%
=Environmental KPI
set by MFLP-REIT* If the CO2 emission intensity as of the SPT determination year is higher than in 2016,
the applicable interest rate for the remaining period will be increased by 0.01% or 0.02%.

Insentive

0.02% / 0.01% reductionin the applicable interest
rate for the remaining term
upon achievement of SPT*

Received opinion from R&I that the SPT
is a sufficiently ambitious goal

Name

Total issue amountTerm

2nd Unsecured Bonds

2.0 billion yen

10 years

Eligible assets

Eligible Green
Project Criteria
MFLP Osaka I

MFLP Hiratsuka II

MFLP Yachiyo
Katsutadai

13

1-5. DPU Growth

Achieve continuous DPU growth through property acquisitions and stable asset management
Grow DPU by selecting optimal funding method, reflecting scale of property to be acquired
Achieve continuous DPU growth, supported by
the acquisition of MFLP Osaka Katano in 14 th FP
and continued stable operations

Achieve high DPU growth as a result of full period
contribution from 3 properties acquired in 12 th FP
and continued stable operations

Aim for upside

+5.0%
+6.4%

8,772yen
8,353yen

7,816yen

8,401yen

8,735yen

8,263yen

7,895yen+6.2%

7,283yen
6,977yen

MFLP Ibaraki
MFLP
Kawaguchi I
Acquisition price77.4 billion yen

MFIP Inzai II

MFLP Yachiyo
Katsutadai
2 other properties

MFLP Osaka
KatanoAcquisition price15.1 billion yen

Acquisition price44.6 billion yen

Acquisition price16.5 billion yen

4th PODebt

5th PO

Debt

Negative factors
・Seasonal factors related
to solar power generation
・Free rent granted as aresult of tenant changes

Forecast annual growth rate (per year) (include 14th fiscal period) ＋8.4%
FP ended Jul. 2020
(8th FP) Actual
No. ofproperties

18

FP ended Jan. 2021
(9th FP) Actual

FP ended Jul. 2021
(10th FP) Actual

FP ended Jan. 2022
(11th FP) Actual

FP ended Jul. 2022
(12th FP) Actual

20

21

21

24

FP ended Jul. 2023
FP ended Jan. 2023
(14th FP)
(13th FP) Actual Previous Forecast*1

Revised Forecast*2

24

24

25

FP ended Jan. 2024
(15th FP) Actual

25

Expansion of NAV per unit*3
End of 1st fiscal period(January 31, 2017)

NAV per unit

273,318 yen

After the acquisition of theproperty acquired in 14th FP

463,661 yen

Average annual growth rate of NAV per unit from January 31, 2017 +9.2%*1 Announced on September 14, 2022 *2 Announced on March 14, 2023
*3 For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.55-56

Aim to further stabilize theunit price as well as
achieving better liquidity

14

1

-6.

13th Fiscal Period (Ended January 2023) P/L
12th fiscal
periodActual(a)

13th fiscal
periodForecast(Sep. 14,2022)

13th fiscal
periodActual(b)

10,607

10,864

10,960

353

6,148

6,398

6,455

307

2,708

2,730

2,707

-0

4,459

4,466

4,504

45

Non-operating income

0

-

3

2

Non-operating expenses

293

286

302

8

Ordinary income

4,166

4,180

4,206

39

Profit (Net income)

4,165

4,179

4,205

40

(Unit: million yen)

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

Operating income

Difference(b)-(a)Major breakdown of difference
Operating revenue
Increase on completed lease signings for floor area inseveral existing properties
Increase in utilities charge
Decrease in solar power generation facilities rent
revenue
Decrease in other operating revenue

+259
+198
-67
-36

Operating expenses
Increase in repair expenses
Increase in utilities expense
Increase in asset management fees
Decrease in other operating expenses

+121
+179
+44
-37

Non-operating expenses
Distribution per unit
(DPU) (yen)

8,353

8,396

8,401

48

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

7,231

7,255

7,301

70

Of which,
Distribution in excess of earnings per unit (yen)1,122Distribution in excess of earnings expressed asa percentage of depreciation+10-2

Increase in interest expenses
Decrease in other non-operating expenses<Reference>
Formula for distribution per unit based on FFO*

23.9%

1,141
24.1%

1,100
23.4%

-22
-

FFO

＝

Profit (Net income)＋Source of funds for
distribution

＝

① FFO

Distribution per unit＝

②Source of funds for
distribution

Depreciation, etc.

…①

×

70%

…②

÷

Number of investment
units issued andoutstanding* For further details, please refer to [Method of calculation of cash
distribution based on FFO] in the Notes on Matters Stated in thisDocument on p.55-56.

15

1

-6.

14th Fiscal Period (Ending July 2023) Earnings Forecast
13th fiscal
periodActual(a)

14th fiscal
periodForecast(b)

Difference(b)-(a)Operating revenue

10,960

11,587626

Operating expenses

6,455

7,002

546

2,707

2,985

277

4,504

4,584

79

Non-operating income

3

-

-3

Non-operating expenses

302

350

48

Increase due to properties acquired in the 14th FP
Expensing of fixed asset tax and city planning tax forproperties acquired in the 12th FP(Unit: million yen)

Of which, depreciation(depreciation related to properties only)

Operating income

4,206

4,234

28

Profit (Net income)

4,205

4,233

28

Increase due to property acquired in the 14th FP (MFLP
Osaka Katano)(excluding property acquired in the 14th FP)

Increase in solar power generation facilities rent
revenue (excluding property acquired in the 14th FP)
Decrease in other operating revenue(MFLP Osaka Katano)(MFLP Yachiyo Katsutadai, Hiratsuka II and Osaka I)(excluding property acquired in the 14th FP)

Increase in utilities expense

8,772

+26

7,106*
2,993

+65
-43

4,548
-

+376

+121
-72

(excluding property acquired in the 14th FP)+57

Increase in asset management fees

+24
+37

Increase in other operating expenses

8,401

+577

Operating expenses

Decrease in repair expenses

Distribution per unit
(DPU) (yen)11,655

Operating revenue
Increase in utilities charge

Ordinary income

15th period
Forecast

Main breakdown of difference

371

352
4,195
4,194

8,735

Non-operating expenses

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

7,301

7,349

48

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

1,100

1,423

323

1,452

Distribution in excess of earnings expressed asa percentage of depreciation

23.4%

27.5%

-

28.0%

Increase in interest expenses

Decrease in other non-operating expenses* Excludes the fixed asset tax and city planning tax (55 million yen) for the property acquired in the 14 th FP (MFLP Osaka Katano).

+75
-26

7,283

16

MEMO

17

2. Growth Strategy of MFLP-REIT

18

2

Basic Strategy and Four Roadmaps

Maximize unitholder value through a strategic partnership with Mitsui Fudosan

Mitsui Fudosan
Logistics Park Inc.

External Growth

Own

Develop

Strategic
Partnership
Internal Growth

Strong development capabilities as
a comprehensive developer
Superior land sourcing ability
enabled by CRE strategies

Superior leasing capability
leveraging Group’s network

ManageStable Management

Maximize unitholder value

Evolutional solutions-based
asset management

Expansion of logistics
facilities business19

2

Basic Strategy and Four Roadmaps

Leveraging growth in asset size as main driver of steady DPU growthFiscal 2022

Fiscal 2016 - 2021

Fiscal 2023 and after

13th fiscal
period

1st – 12th fiscal periods

14th fiscal
period15th fiscal
periodAcquisition withborrowed funds, etc.
February 2023
25 properties
24 properties

Acquisition with
5th follow-on
borrowed funds, etc.
offering
March 2021
January 2022
4th follow-on
24 properties
21 properties
offering
20 properties

Asset Size

Aim to acquire properties
in a continuous manner,
focused on high-quality
properties covered by“Right of first look andpreferential negotiationrights agreement”

September 2020

9 properties

75.5

・・・・・

282.4

297.6

billion yen

billion yen

342.2
342.2

342.2

358.7

billion yen

billion yen

End of 12th
fiscal period

End of 13th
fiscal period

End of 14th
fiscal period(forecast)End of 15th
fiscal period(forecast)billion yen
billion yen

16th fiscal period and after

Aim for further
500.0 expansion ofbillion yen asset size
Medium-term
asset size target

billion yen

Average annual growth rate since listing +27.1%

LTV
End of 1st
fiscal period

24.5％

・・・・・

LTV-based capacity for
acquisitions(LTV to 50%)

End of 9th
fiscal period

End of 10th
fiscal period

End of 11th
fiscal period

31.0％

33.6％

33.1％

36.5％

35.9％

39.0％

38.5％

109.0
billion yen

97.0
billion yen

100.0billion yen

91.0
billion yen

95.0
billion yen

77.0
billion yen

79.0
billion yen

9thfiscal period

10thfiscal period

11thfiscal period

12thfiscal period

13thfiscal period

14thfiscal period(forecast)

15th
fiscal period(forecast)

7,283

7,816

7,895

8,353

yen

yen

yen

8,401
yen

8,772
yen

（July 31, 2022） （January 31, 2023） （July 31, 2023） （January 31, 2024）

Distribution per unit(DPU)
1stfiscal period

5,198
yen

・・・・・

yen

8,735
yen

Fund procurement and LTV
management optimal forsize of acquired assets

Continuous DPU growththrough leverage effects,
etc.

40% to 50％
Medium- tolong-term
stabilized LTV level

Growthpotential

Average annual growth rate (per year) +8.4%

Market Cap*
End of 1st
fiscal period

76.1

End of 9th
fiscal period

・・・・・

End of 10th
fiscal period

End of 11th
fiscal period

End of 12th
fiscal period

Expansion of market
End of 13th
fiscal period

332.7

306.7

billion yen

301.2

billion yen

billion yen

billion yen

billion yen

389,732 yen

407,663 yen

423,819 yen

450,386 yen

463,661 yen

284.0

261.2

cap through public
offerings, etc.
Inclusion in major indices

Aim forenhancement ofinvestment
liquidity

billion yen
273,318 yen
NAV per unit

Average annual growth rate of NAV per unit from January 31, 2017 +9.2%* For further details, please refer to [Our Basic Strategy and Four Roadmaps] in the Notes on Matters Stated in this Document on p.55-56.

20

2-1. External Growth Strategy (Expansion of Asset Size) 1

CRE Strategy: Mitsui Fudosan increasing quality developments in superior locations
Ability to secure development sites through its corporate real estate (CRE) strategy
Propose CRE
strategies

Various CRE needs of client firms
Rebuilding of corporate
logistics capabilities

Utilization ofidle land

Trimming balance
sheet(Asset disposal)

Development ofcorporate
infrastructure

Global development(Establishment ofoverseas sites)

Examples of superior location and high quality of
Mitsui Fudosan developments

Sale of realestate, etc.

Growth image for properties (to be)
developed/operated by Mitsui Fudosan*■ MFLP Shinkiba I ・ MFLP Shinkiba II

Cumulative total investment size as of January 2023

56 facilities 700.0 billion yen *Urban-type logistics facilities enabled for last one mile deliveries in
response to growth of e-commerce
Location characteristics
・Within 2km of Shuto Expressway WanganLine’s Shinkiba Entry/Exit, 10km from Haneda
Airport. Surrounding area labor force
population more than 1.08 million.
・Within 10km of Tokyo Station: superiority fordeliveries to central Tokyo・ Within 20 minutes walking distance to
Shinkiba Station: easy commute

Property features

・Leveraging superior urban location, installed
glass walls in certain areas which allow tenantcompanies and customers to visually confirm
warehouse operations (MFLP Shinkiba I )MFLP Shinkiba I

・ Plan to transition to green power use incommon areas using solar power and securegreen building certifications for both MFLP
Shinkiba I/II

External Image Perspective

MFLP Shinkiba I

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

MFLP Shinkiba II
Location

MFLPREIT
IPO

Mitsui
Fudosanestablishedthe Logistics
Properties
Department

Fiscal
2012

Fiscal
2013

Fiscal
2014

Fiscal2015* For further details, please refer to [Major properties developed/operated by Mitsui Fudosan] in the Notes on Matters Stated in this Document on p.55-56.

Fiscal2016

Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

FiscalFiscal2023
2022
or（planned） after（planned）

21

2-1. External Growth Strategy (Expansion of Asset Size) 2

Stable growth leveraging the growth potential and extensive pipeline of Mitsui
Fudosan’s logistics facilities business
Mitsui Fudosan’s major development/operation track record : 56 facilities 700.0 billion yen 4,500,000 m2 in gross floor area
Properties held by MFLP-REIT

Properties covered by “Right of first look andpreferential negotiation rights agreement”

25 properties 1,490,000 m2 358.7 billion yen

11 properties 1,010,000 m2
LeasedCompleted

75%

MFLP Yokohama
Daikoku

MFLP Atsugi

MFLP Inazawa

MFLP Hiroshima I

MFLP Hino

LeasedCompleted

MFLP Funabashi II
LeasedCompleted

Properties developed/operatedby Mitsui FudosanCompleted

Construction completionin fiscal 2016

Construction completionin fiscal 2022

Construction completion in
fiscal 2024

MFLP Tokorozawa

MFLP Funabashi I

Tokyo Rail Gate EASTMFLP Nagoya Iwakura

Completed

Construction completionin fiscal 2019

Construction completionin fiscal 2022

Construction completionin fiscal 2024

MFIP Haneda

MFLP Ebina I

MFLP・LOGIFRONTTokyo Itabashi

Construction completionin fiscal 2019

Construction completion in
fiscal 2022

Construction completion in
fiscal 2025

MFLP Yokohama
KohokuMFLP Hiratsuka III

MFLP Ichinomiya

Construction completionin fiscal 2019

Construction completion in
fiscal 2023

Construction completionin fiscal 2025

MFLP Kawasaki I

MFLP Shinkiba II

MFLP Misato

Construction completionin fiscal 2020

Construction completionin fiscal 2023

LeasedLeased60%

MFLP Funabashi III
GLP・MFLP Ichikawa MFLP Kashiwa
Shiohama

MFLP Tsukuba

MFLP Ibaraki

MFLP Osaka I

LeasedCompleted

MFLP Ichikawa
Shiohama II
LeasedCompleted

Acquired in
14th FP50%

MFLP Tomei Ayase
LeasedMFLP Yashio

MFLP Fukuoka I

MFLP Atsugi II

MFLP Kawaguchi I

Completed

SG Realty MFLP
Fukuoka Kasuya

Construction
completed
830,000 ㎡

MFLP Osaka Katano

MFLP Shinkiba I
Construction completionin fiscal 2022

MFLP Kuki

MFLP Hiratsuka

MFLP Sakai

MFLP Yachiyo
Katsutadai

MFIP Inzai
41.5%

Construction completionin fiscal 2023

MFLP Komaki

MFLP Prologis Park
Kawagoe

MFLP Hiratsuka II

MFIP Inzai II

Underconstruction
180,000 ㎡

MFLP Tachikawa
Tachihi

MFLP Ebina Minami

Construction completionin fiscal 2020

Construction completionin fiscal 2024

MFLP Tosu

MFLP Sendai Natori I

Another data center1 property

Overseas
4 properties…

MFLP Zama

MFLP Yatomi
Kisosaki

MFLP Funabashi
Nishiura

Construction completionin fiscal 2023

50%
Osaka City, Konohana-ku,Torishima Logistics Project22

2-1. External Growth Strategy (Expansion of Asset Size) 3 Emphasis on Location

1
3

Build a high quality portfolio by taking advantage of geographical diversification
Greater Tokyo Area

LegendLogistics facilities
properties held by
MFLP-REIT
L-XX

Logistics facilities NO.

L-XX

Logistics facilities NO.
acquired in the 14th FP

Industrial real estate
properties held by
MFLP-REIT
I-XX

Industrial real estateNO.
Properties covered
by “Right of first lookand preferential
negotiation rights
agreement”*
Properties developedby Mitsui Fudosan

Mitsui Fudosan’s
strategic area23

2

-1. External Growth Strategy (Expansion of Asset Size) 3 Emphasis on Location

2
3

Build a high quality portfolio by taking advantage of geographical diversification
Greater Nagoya area

Greater Osaka area

Tohoku area

Hiroshima area

Kyushu area

■Geographically diversified portfolio◼ Location offering excellent access totransportation nodes

Investment area

Access (distance) to nearest expressway
interchange

Hiroshima area
4.4％

Kyushu area
1.6％
Shuto Expressway
Wangan Line
9.8％

Greater
Nagoya area
7.4％

GreaterTokyo area
and Greater
Osaka area National
Greater
Osaka area
34.1％

86.7％

Route 16
15.6％

Ken-O
Expressway
18.7％

Tokyo-Gaikan
Expressway
8.5％

GreaterTokyo area
52.6％

3 - 5 km
34.1％

5 km ormore
7.9％

Less than 1 km
24.7％

■Location convenient for commuting workers
Access (time) to nearest train station
By bus(20-30 minutes)
2.4％

By bus(20 minutes
or less)
57.4％

Less than
5 km

92.1％
1 - 3 km
33.3％

* The pie charts above are calculated on an acquisition price basis after acquisition of property in the 14th FP (excluding MFIP properties).

Within walking
distance(20-25 minutes)
2.6％

Within walking
distance/Within
20 min. by bus

97.6％

Within walking
distance(20 minutes
or less)
37.5％

24

2

-1. External Growth Strategy (Expansion of Asset Size) 3 Emphasis on Location

3
3

Superior locations of properties defined in Right of First Look and Preferential
Negotiation Rights Agreement and developed by Mitsui Fudosan
Greater Tokyo area

Greater Osaka area

：Logistics facilities properties heldby MFLP-REIT：Industrial real estate properties heldby MFLP-REIT：Properties defined in Right of first look andpreferential negotiation rights agreement：Properties developed by Mitsui Fudosan

Population Density*1（people/k㎡）

0～5,000
5,001～10,000
10,001～*1 Population distribution data based on Ministry of Land, Infrastructure and Transport’s data on Future Population Estimates by 1 k㎡ (2018 Estimates)25

2-1. External Growth Strategy (Expansion of Asset Size) 4 Emphasis on Quality

MFLP-REIT concentrates investments in leading-edge logistics facilities. Mitsui Fudosan quality
achieved by applying Mitsui Fudosan’s expertise as a comprehensive developer
Mitsui Fudosan quality■ Basic specifications of leading-edge logistics facilities

Large sites[Gross floor area]
Approx. at least
10,000 ㎡

Storage space
Effective ceiling heightAt least 5.5 m

Column spacing
At least 10 m
Floor load tolerance
At least 1.5 tons/m2
MFLP SakaiHigh performance

Disaster prevention[Column span]
At least 10 m
[Effective ceiling height]
At least 5.5 m[Floor load tolerance]

Equipped with• Seismic isolation• Earthquakeresistance• Building Damage
Assessment System,etc.

At least 1.5 tons/㎡■ ＆ Worker
Unmanned store■ ＆ Tenant
Cafeteria

Commuter shuttles

Installation ofseismic isolation

MFLP Sakai

Bicycle sharing

MFLP Kashiwa■ Building age*2
over
10 years
5.8％

7-10 years
32.5％
MFLP Yachiyo Katsutadai

MFLP Yachiyo Katsutadai

Bench that can be converted
to emergency cooking grill

Solar panels

1-3 years
14.3％

Avg.
building age
6.1 years
3-7 years
47.3％

MFLP Hiroshima I■ ＆ Earth■ ＆ Community
Childcare facilities

MFLP Ibaraki

Emergency power
generator

LED lights■ Properties developedby Mitsui Fudosan*2

94.2％

MFLP Hino*1*2

MFLP Kawaguchi I

MFLP Yachiyo Katsutadai

MFLP Osaka I

Photos are for illustrative purposes only. Not all MFLP facilities or portfolio assets are necessarily equipped with all of the abovementioned specifications and features.
Figures are calculated based on the total gross floor area after acquisition of property in the 14th FP, considering the quasi co-ownership interests.

26

2-1. External Growth Strategy (Expansion of Asset Size) 5 Emphasis on Balance

Securing growth and stability by building a balanced portfolio through acquisitionof MFLPs/MFIPs which reflect location characteristics and tenant needs
Investment ratio: 80% or more

Investment ratio: 20% or less

Logistics facilities

Industrial real estate

Shipping needs

Storage needs

Multi-tenant type

Single-tenant type

Rampway MFLP
Multi

MFLP Yokohama
Daikoku
Multi

Slope MFLP
Multi

GLP・MFLP
Ichikawa Shiohama
Multi

SingleMFLP Atsugi
Multi

MFLP Kuki
Multi

SingleMFLP Kashiwa
Multi

Mainly long-term BTS type

MFIP( Mitsui Fudosan Industrial Park )Box MFLP
Multi

Data centers, etc.

SingleMFLP Funabashi
Nishiura

BTS

MFIP Inzai

BTS

MFIP Inzai II

Other*1■ Investment ratio
by property type*2
MFLP Hino
Multi

MFLP Sakai

MFLP Komaki

Multi

Multi

MFLP Inazawa
Multi

MFLP Yashio
SingleData center
7.6％

MFLP Hiratsuka
SingleRampway
MFLP
37.8％
MFLP Prologis Park
Kawagoe

MFLP Ibaraki

MFLP Atsugi II
SingleMFLP Hiroshima I
SingleMFLP Tsukuba

MFLP Fukuoka I

Box MFLP
15.8％

Slope MFLP
38.8％

Multi

■ Investment ratio
by tenant type*2
MFLP Kawaguchi I
SingleMFLP Yachiyo
Katsutadai

MFLP Osaka I

BTS 7.6％

MFLP Hiratsuka II

Other*1
6.6％

Other*1

Multi
62.0％
MFLP Osaka Katano*1 “Other” refers to a property for which the classification (multi or single) cannot be disclosed in this material as consent for disclosure has not been obtained from the lessee.
*2 Figures calculated on an acquisition price basis after acquisition of property in the 14th FP.

Single
23.8％

27

2

-2. Internal Growth Strategy 1

Achieve stable management by leveraging Mitsui Fudosan Group’s platform and client network
Effectively leverage the Mitsui FudosanGroup’s platform and client network forleasing
Occupied by many tenants that havea relationship with Mitsui Fudosan
Lease
agreement
End userOwner of logistics
facility

Logistics
agencyagreement

Lease
agreement
Logistics
firm

Lease agreements

Tenant diversification
Hitachi Transport System Metropolitan
Nakano Shokai
Other

Average lease
Period *Japan Logistics Systems
Major Specialty store
retailer of Private
label Apparel

About

HIGASHI NIPPON
Average remaining
EXPRESSlease period *NTT LOGISCO
Rakuten
Tenants*
MEIKONMARUBENI LOGISTICS
e-LogiTBic Camera
Sagawa Global Logistics
MISUMIMITSUI SOKO LOGISTICSNIPPON EXPRESSKDDI
SANGETSU
KOKUBU SHUTOKENSun Toshi Tatemono* Number of tenants shown here is
DAIWA CORPORATION
total number of leases; excludes MFIPs.

80

9.1 years
4.4 years

Staggering of lease expiration dates
End user（thousand ㎡）(3PL operator, etc.)

400
700

720

ActualUnsigned
SignedSigned
350

316

Can directly approach logistics firms and end users
regardless of contract type

300

250

200

Fully leverage the Mitsui Fudosan Group’s
broad client network

150

129

116
100

Office building
businessclient network
Approx. 3,000 firms

Retail facility businessclient network
Approx. 2,400 firms

Strong relationships
with leading 3PL
operators*Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year
ended March 31, 2022

40
(132)

4.0%

167

168

167

17th FP(25/1)

18th FP(25/7)

19th FP(26/1)

83
69.6%

64

48

50

29

96.0%
30.4%

0
9th FP(21/1)

10th FP(21/7)

11th FP(22/1)

12th FP(22/7)

13th FP(23/1)

14th FP(23/7)

15th FP(24/1)

16th FP(24/7)

After
20th FP(26/7)

96.7 MFIPs).
*2 Figures are based on the leasable floor area after acquisition of properties in the 14th FP for leases in force as of January 31, 2023 (excluding%
Figures for all periods prior to the 13 th FP and the 14th FP in brackets reflect the leasable floor area for all leases expiring in the relevant period.
* For further details, please refer to [Internal Growth Strategy] in the Notes on Matters Stated in this Document on p.55-56.

28

2-2. Internal Growth Strategy 2

Steady and Stable Property Management
Impact of rising energy costs

Status of End-FP occupancy rate
100%

100%

100%

99.9%

99.8%

100%
(forecast)■ Breakdown of power cost by facility type (based on floor area)

100%(forecast)

100.0%

Majority of electricity costs borne by tenants (MFLP-REIT only bears electricity costs forcommon areas in multi-tenant properties). MFLP-REIT’s exposure to power costs is limited

Average occupancy rateduring FP (Actual)

9th FP(21/1)

10th FP(21/7)

11th FP(22/1)

12th FP(22/7)

13th FP(23/1)

100%

100%

99.7%

98.5%

99.9%

14th FP(23/7)

15th FP(24/1)

Tenant leased area/Tenant indirectly
responsible(MFLP REIT pays provider on behalf of tenants)
about 83%

Status of Lease Signings
129,396㎡
6.3%
7.7%

Unsigned
Spoken for
New leases
Renewals

Single-tenant properties/BTS 9 properties

Multi-tenant properties
16 properties

80.0%
0.0%

Rent reduced

132,361㎡

Common areas /MFLP REIT bears cost

15.3%

about 17%*

Unchanged
Rent raised

112,062㎡

Tenant directly
responsible(Tenant pays
provider directly)

MFLP REIT’s exposure to
power costs limited* The ratio of electricity costs for common areas to electricity costs for multi-tenant properties in the 12th and13th fiscal periods.

15.0%

47.0%

32.9%
83,359㎡
80,046㎡

4.0%
5.5%

3.5%

■ Trend and outlook for MFLP REIT’s utilities expenses

6.8%

Trend and outlook for utilities expenses for the overall portfolio is shown below.
Going forward, MFLP REIT aims for further improvements in utilities expenses
through measures such as reviewing contracts with electric power suppliers, further
adoption of LED lighting and installation of solar power generation facilities

85.9%
66.1%
53.0%

90.5%

(Unit: million yen)

67.1%

93.2%

Utilities
expense12th FP
第12期契約満了

13th FP
第13期契約満了

12th FP Actual(22/7)

13th FP Actual(23/1)

372

551

14th FP

15th FP

Forecast(23/7)

Forecast(24/1)

610

726

14th FP
第14期契約満了

29

2-2. Internal Growth Strategy 3

Evolution of solutions-based asset management by Mitsui Fudosan GroupKey points of asset management plans
End user
MFLP-REIT

Challenges facing logistics
firms

Strengthening capability to propose specialized
solutions that respond to the needs of tenants■ MFLP ICT LABO 2.0

Improving the efficiency of operations

Logistics firm

（3PL operator, etc.）

Specific examples ofsolutions-based asset
management by
Mitsui Fudosan Group

Addressing BCP
issuesLabor shortages

Anticipation of futurerises in delivery costs

Adopting automation• Consulting service for leading-edge ICT-related products toimprove efficiency, save labor, etc.
• Consulting support to help tenant companies secure staff• Matching of 3PL operators and end users• Establishment of comfortable working environment for
tenants’ onsite employees

・ Showroom enabled for ICT equipment
demos. Fully automated logistics system on
display, using leading-edge ICT technology
encompassing the full process from receiving
merchandise to dispatch.
・ Provide specialized automation/laborsaving solutions for tenants and prospective
tenants to address labor shortages and otherserious challenges for the logistics industry.

Examples of equipment on display

Services leveraging leading-edge ICT technologies
Support tenants’ efforts to hire and promote ESG initiatives by focusing
on providing services that enhance operational efficiency within thefacility and worker satisfaction.
ICT: Improve operating efficiency
Wide-angle lens camera

Beacon

ICT: Improve worker services
Onlinereservation

Autonomous
forklift

Receiving,dispatching

Dual-arm packing& unpacking robot

Packing

Autonomous
storage system

Storing

Telephonereservation■ Alliances with ventures: aiming to provide solutions to logistics issues
Cloud
reservation
mgmt. system
Facial recognition

LED lightingwith motion sensor* Photos are for illustrative purposes only.

Fitness

Visualizationof usage at
peak times

Business alliance with K.K. Hacobu
Alliance with Hacobu, operator of IT platform MOVO, which leverages big
data to address driver shortages and other logistics industry issues.
Cafeteria

Washroom/
powderroom

Stake in joint venture Gaussy, Inc
Take an investment stake in joint venture Gaussy, which focuses on digitaltransformation for use in logistics facilities and provides warehouse robot
subscription service Roboware and sharing warehouse service WareX.

30

2 -3. Initiatives for ESG 1 / Sharing the Mitsui Fudosan Group Management Principles
Contribute to social and economic development and conserving theenvironment, based on Group Vision 「」Mitsui Fudosan Group’s ESG Principles
Under the principles of coexisting in harmony with society, linking diverse
values, and achieving a sustainable society that are represented by the Group
logo “ ” the Mitsui Fudosan Group holds “” as its Group Visionand is committed to make contributions to social and economic development,
and to global environmental preservation.
The “” principle reflects our awareness of the fact that the urban
development by the Mitsui Fudosan Group has to be in tune with the planet,and our vision of a society that enriches both people and the planet.

Sharing of the ESG Principles with Mitsui FudosanGroup
As a member of the Mitsui Fudosan Group, the Asset Management Company
shares the Mitsui Fudosan Group ESG Principles, and by building a highly
energy-efficient portfolio centered on MFLP facilities (leading-edge logistics
facilities with ‘Mitsui Fudosan quality’ ), will promote contributing to ourstakeholders in order to achieve a sustainable society.

Share
Mitsui FudosanGroup’s ESG
management
principles

Develop a highly
energy efficient
portfolio, focusedon MFLP

Consideration
for stakeholders tobuild a sustainable
society

Asset Management Co.’s efforts to promote ESG
MFLP-REIT Management Co., Ltd, the asset management company of Mitsui
Fudosan Logistics Park Investment Corporation, has established the "ESG
(Environment, Society, Governance) Policy" in November 2017, and isaddressing on ESG issues in collaboration with Mitsui Fudosan.

■Organizational chart
Sustainability Promotion
Subcommittees

Sustainability Promotion Committee【Members】

Instruct

・Chairperson: President & CEO

Investment Criteria Scrutiny
Subcommittee(chief sustainability officer)

LM Cooperation Subcommittee

・Standing member: Chief Investment Officer
Disclosure Subcommittee(sustainability executive officer)
・Standing member: Chief Finance Officer

Submitagendaitems

・Secretariat

Human Capital Subcommittee■ESG-related policies and rules
ESG (Environment, Society and Governance) Policy
Consideration andresponse to theenvironment

Consideration andresponse to society

Consideration andresponse togovernance

Climate Change Resilience Policy

Sustainability Promotion Framework Rules

Greenhouse Gas Emissions Reduction Policy

Sustainability Promotion Committee Rules

Energy Efficiency Policy

Operational manual for EMS (Energy
Management System)

Sustainable Procurement Policy

31

2-3. Initiatives for ESG 2 -for Environment

Environment

Proactively secure green building certifications, conservation efforts
Support for various environmental initiatives

Monitoring of environmental KPIs

The Asset Management Company declares its support for the recommendations of Latest performance and progress against environmental KPIs generally on
the Task Force on Climate-related Financial Disclosures and is a member of the
track. Aim to achieve targets by promoting initiatives to reduce environmental
TCFD Consortium. From FY2022, it has also declared its support for the Japan
impact in the future.
Climate Initiative, and is working to create a framework for disclosing financial
2016 (base year)2021■ CO2 emissions intensity (t-CO₂/㎡)
information related to climate change. Also became a signatory to the Principles
for Financial Action for the 21st Century in March 2023. By acting on the principles,
0.016
0.017
Whole building (Scope1・2・3)(reduction 7.8%)
Reduction of at least 30% by 2030
it will undertake its investment management in a responsible manner for theformation of a sustainable society.
0.060
0.048
Owner-managed portion (Scope1・2)

Eco-friendly green buildings

Reduction of at least 100% by 2030

(reduction 19.8%)

Tenant-managed portion (Scope3)

0.014
Reduction of at least 24% by 2030

0.014
(reduction 2.3%)■ Water usage intensity (㎥/㎡)

2016 (base year)

2021

0.07
Not to increase
above base-year level

0.07(maintain)

Targets2021

at least 70% by 2030

70.1%

Logistics facilities

Proactively securing green building certifications. 96.4% of logistics facilities
had green certifications and 59.0% of logistics facilities had ZEB certifications*.

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

■Installing roof-top solar panels
Annual solar power generation(2022 Actual)

18.9

GWh*

■ Waste recycling rate
Logistics facilities* Above data excludes data centers (industrial real estate) as a result of NDAs in place with tenants.
Industrial real estate is excluded from disclosures.
Targets

After the acquisitionof MFLP Osaka Katano

Logistics facilities

Maintain at least 95%

96.4％

Portfolio

Maintain at least 90%

92.8％

Targets

After the acquisitionof MFLP Osaka Katano

Owner-managed portion

at least 100% by 2023

97.5％*1*2

Tenant-managed portion

at least 100% by 2030

84.4％*1

Targets

After the acquisitionof MFLP Osaka Katano

at least 75% by 2025
at least 90% by 2030

28.3%*3■ Green Building certification ratio■ LED lighting adoption ratio(12 properties)■ Green leases adoption ratio
MFLP Ibaraki* For further details, please refer to [ZEB certification] [Annual solar power generation] in the Notes on
Matters Stated in this Document on p.55-56.
*1 Calculations based on total floor area adjusted to reflect quasi co-ownership interests.
*2 Exclude single tenant properties from the denominator of properties owned by MFLP-REIT.
*3 Calculations based on leasable floor area adjusted to reflect quasi co-ownership interests.

Portfolio

32

2-3. Initiatives for ESG 3 -for Social

SocialOngoing initiatives for our many stakeholders
Initiatives for stakeholders
Utilizing the know-how of Mitsui Fudosan, the sponsor, the properties owned by MFLP-REIT promote initiatives to offer a healthy, pleasant and safe environment outof consideration for stakeholders such as tenants, facility users, the surrounding environment and local communities.
Participating in local community activities

Rest area

Cafeteria

Measures to prevent the spread of
COVID-19

Emergency power generator

By participating in local cleanup activities, the asset management company
is actively working to contribute to the local community and raise
environmental awareness among employees.

Cooperation with support group for the disabled (Group Happy Smile)Group Happy Smile

Hand sanitizer

Contactless buttons

Childcare facilities

Disaster response readiness

An organization that plans and provides a place where people withdisabilities can sell independently produced products, as well as a place
where they can introduce and sell their artwork to society.

Catering food truck

Art Exhibition* Photos are for illustrative purposes only. Not all MFLP facilities or portfolio assets are necessarily equipped withall of the abovementioned specifications and features.

33

2

Governance-3. Initiatives for ESG 4 - for GovernanceInitiatives for governance: Taking unitholders’ interests into consideration
MFLP-REIT and the Asset Management Company are working to establish proper governance through the following measures in order to build a solid relationship oftrust that aligns interests of unitholders with those of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

Rules concerning conflicts of interest in asset
management

Asset management with emphasis placed onrelationship of trust with unitholders

The acquisition and transfer of assets by MFLP-REIT from related parties are
decided by the Asset Management Company via a transparent decision-making
process.

Approval by the Chief Compliance Officer
Deliberation and resolution by the Compliance Committee*2

Examination and approval by the Investment Committee

Instruction to cancel or amend details

Draft by the Investment Team

Approval by MFLP-REIT’s Board of Directors

Deliberation and resolution by the Management
Committee

Instruction to cancel
or amend details

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

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

■Asset management fee structure consistent with theinterests of unitholders
Our aim is to align the interests of the Asset Manager with those of unitholders.
Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

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

Asset management fee III

Pre-tax earnings (before deduction of asset managementfees) × Pre-tax EPU (before deduction of asset
management fees) × 0.001% (maximum)■Mitsui Fudosan’s investment in MFLP-REIT
Mitsui Fudosan has a 5.0% stake in MFLP-REIT (as of end of January, 2023) .
Accepting a certain level of capital investment leads to the alignment of theinterests of MFLP-REIT’s unitholders and Mitsui Fudosan, and enables the
pursuit of greater mutual interests in asset management.

■Adoption of cumulative investment unit ownership program
Ownership of the investment units by employees of the Asset Management
Company through the program elevates the motivation of employees toimprove the performance of MFLP-REIT, with the aim of enhancing its
medium- to long-term unitholder value.

Timely and proper information disclosure andensuring transparency
MFLP-REIT strives to make timely and proper disclosure of informationnecessary for unitholders to make investment decisions. With regard to
disclosure, MFLP-REIT focuses on prompt and transparent information
disclosure in a fair and equitable manner, and, in addition to financial information,
also discloses non-financial information related to ESG.

34

2

-4. Financial Strategy

Stable financial management: Progress in diversifying financial institutions and maturities
Interest-bearing debt maturity ladder and lender formation(million yen)
14,000■Existing borrowings ■ Borrowings related to the acquisition of the property acquired in 14th FP ■Investment corporation bonds
12,00010,000Commitment line 10,000 million yen
6,500

1,600

8,000

2,200
1,300

6,000

5,600

4,000
2,000

6,600

5,600
4,000

5,900
3,000

5,600

6,300

8,500

7,500
5,700

7,800

7,200

8,900
6,700

7,600

5,100

3,600

400

3,000

2,100

1,300
3,600

2,000

2,000

0
FP
ending2023/7

FP
ending2024/1

FP
ending2024/7

FP
ending2025/1

FP
ending2025/7

FP
ending2026/1

FP
ending2026/7

FP
ending2027/1

FP
ending2027/7

FP
ending2028/1

FP
ending2028/7

FP
ending2029/1

FP
ending2029/7

FP
ending2030/1

FP
ending2030/7

FP
ending2031/1

FP
ending2031/7

FP
ending2032/1

FP
ending2032/7

FP
ending2033/1

FP
ending2033/7

FP
ending2034/1* Reflects debt maturities after the borrowings on February 1, 2023.

Lender formation
After the acquisition of MFLP Osaka Katano(As of February 1, 2023)

End of 13th fiscal period (January 31, 2023)
Investment Corporation Bonds

Daishi Hokuetsu
Bank
The Hyakugo
Bank
The Chugoku
Bank
The Yamanashi
Chuo Bank

Sumitomo Mitsui
Banking Corporation

The 77 Bank
1.5 %
1.5 %

Nippon Life
Insurance Company

Sumitomo Life
1.5 % Insurance Company

Borrowings related to theacquisition of MFLP
Osaka Katano

Mizuho Bank

Total lenders: 27
Total borrowings

The Yamagata
Bank

The Chiba Bank
Shinkin Central
Development
Bank
Bank
of Japan
1.2 %(Includes Investment
SBI Shinsei Bank
Corporation Bonds)
0.8 %Mitsui Sumitomo
Insurance
0.8 %MUFG BankThe Yamaguchi Bank
0.8 %Mizuho Trust & Banking
0.8 %Sumitomo Mitsui Trust Bank
The Norinchukin Bank
The Bank of
0.8 %Fukuoka

The Bank of Kyoto

0.4 %Resona BankThe Joyo Bank
Momiji Bank
The Keiyo BankThe Iyo Bank

1.5 %¥120.7 bn

Total
Lenders

21

Total
￥16.5
borrowings bn

Investment…
Sumitomo Mitsui
Banking Corporation

The 77 Bank
Development Bankof Japan

Nippon Life Insurance
Company
The Chiba Bank
Sumitomo Life
Insurance Company
Mitsui Sumitomo Insurance
SBI Shinsei Bank

Mizuho Bank

Total lenders: 29
Total borrowings¥137.2 bn

The Bank ofFukuoka(Includes Investment
Corporation Bonds)

The Yamaguchi Bank
Mizuho Trust & Banking
The Norinchukin BankMUFG Bank

Daishi Hokuetsu
Bank

1.6 %

The Hyakugo Bank

1.3 %The Chugoku Bank

1.3 %The Yamanashi Chuo
Bank

1.3 %

The Joyo Bank

1.0 %Resona Bank

1.0 %Momiji Bank

1.0 %The Keiyo Bank

1.0 %Sumitomo Mitsui The Yamagata Bank
Trust BankThe Iyo Bank
Shinkin Central Bank
The Bank of Kyoto

New lenders

1.0 %
0.7 %
0.7 %

Kiraboshi Bank

0.4 %The Hachijuni Bank

0.4 %

35

2

-4.Financial Strategy

Efficient cash management■ Key points of cash distribution in excess of earnings

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

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

Securing long-term building
maintenance funds

Securing financial
stability

Distributions in excess of earnings
will be paid to the extent that an
amount can be retained that is morethan double the six-month averageof capital expenditures stated in theengineering
reportfor
each
operating period.

Distributions in excess ofearnings will not be made if
appraisal LTV ratio*2 exceeds
60% for each operating period.

* Appraisal LTV ratio = Interest-bearing debt ÷ (Total assets - Book value of portfolio real estate, etc. + Appraisal value)■ Diagram of cash

■ Trends in distributions in excess of earnings and retained earnings

distribution based on
FFO

Conduct efficient cash flow management by allocating retained earnings to paying down debt
Currently considering measures to further enhance unitholder value while remaining mindful of cash management(million yen)

Debt repayment
Capex
Retained earnings

227

Distributions in excess of earnings

110
Leasingbusiness
expenses,
SG&A,
etc.

FFO
Rentalrevenue

Deprecia-tion

Profit(Net
income)*Pay distributions
based on a
threshold ofapprox. 70% of
FFO

521
178

Deprecia
-tion
2,059

991

Deprecia
-tion
2,344

1,618
86

Distributionsof earnings

Targeted
at 70%* Gain or loss on sale of real estate, etc. is notincluded in “Profit (Net income)” in the above chart.

9th FP

70%

Profit(Net
income)3,708

Distributions ofearnings
3,708

10th FP

Deprecia
-tion
2,708

338

886

1,869
128

70
%

Profit(Net
income)3,741

Distributions ofearnings
3,740

11th FP

Deprecia
-tion
2,707

1,846

64
633

646

538

Distributions
in excess ofearnings

Distributions ofearnings
3,579

Deprecia
-tion
2,372

527

368

Profit(Net
income)
3,579

610

70
%

Profit(Net
income)4,165

Distributions ofearnings
4,165

12th FP

70%

Profit(Net
income)4,205

Distributions ofearnings
4,205

13th FP

70
%

36

2

-5. DPU Growth

Continue to achieve high DPU growth through external growth
Aim for continuous external growth, focused on high-quality properties covered by“Right of first look and preferential negotiation rights agreement”

Expansion of Asset Size

MFLP Komaki

MFLP Hino
2 other properties MFLP Tsukuba

1st PO

Debt

MFLP Inazawa
5 other properties

MFLP Sakai
2 other properties

MFLP Ibaraki
MFLP Kawaguchi I

MFIP Inzai II

MFLP Yachiyo Katsutadai
2 other properties

MFLP Osaka
Katano2nd PO

3rd PO

4th PODebt

5th PO

Debt

Debt

Fund procurement

New investment units and LTV management optimal for size of acquired assets
25

24

39.0%
38.5%

21

20

36.5%

18
33.6%

16

12
No. ofproperties

9

10

13

30.2%

29.1%

21.6%

7,816

26.8%

(7,231)

6,977(6,842)6,496( ) EPU (yen)

5,563
5,198

6,584

5,346

8,772

8,735

(7,301)(7,349)(7,283)(6,902)(6,604)(6,200)

6,105
5,832

8,401

7,895

7,283

22.5%

DPU (yen)

8,353

27.3%

23.9%
LTV

33.1%

31.0%

36.0%

(5,783)(5,811)

FP endedJan. 2019(5th FP)FP ended
Jul. 2019(6th FP)(5,905)(5,497)(5,288)(5,142)(4,955)

FP endedJan. 2017(1st FP)FP ended
Jul. 2017(2nd FP)FP endedJan. 2018(3rd FP)FP ended
Jul. 2018(4th FP)FP endedJan. 2020(7th FP)FP ended
Jul. 2020(8th FP)FP endedJan. 2021(9th FP)FP ended
Jul. 2021(10th FP)FP endedJan. 2022(11th FP)FP ended
Jul. 2022(12th FP)FP endingJan. 2023(13th FP)FP endingJul. 2023(14th FP)
Forecast

FP endingJan. 2024(15th FP)
Forecast

37

MEMO

38

3. Market Overview

39

3-1. Market Overview

Market Overview 1
Supply-demand balance andvacancy rate 1 3：New supply in 2021 and 2022

：Vacancy rate 0–5%

：Submarket areas：New demand 2021 and 2022

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

Greater Tokyo Area

*As of the end of December 2022

Forecast

thousand ㎡

4,000

15%

3,500
12%

3,000

Tohoku/Ken-O
Expwy area

2,500

9%
National Route16 area

2,000
6%

1,500

Kan-Etsu/KenO Expwy area

1,000

3%

Tokyo-Gaikan
Expwy area

500
0

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
（year）

Narita area

thousand ㎡

1,200

18%

Hachioji area

Chiba
inland area

900
12%
600
4.1%

6%

300

Kanagawa
inland area

0.7%

0

0%
Q1

Q2

Q3

Q4

Q2

Q3

Q4

2022

2021
New supply

Q1

New demand

Vacancy rate

Greater Tokyo
Bay area
Vacancy rate(logistics facilities 1 year
old or older)

Source: CBRE K.K. (February 2023)* Survey of rental logistics facilities held by real estate investment companies,
real estate development companies, etc. with total floor area of 5,000 m2 or more.

：Logistics facilities properties heldby MFLP-REIT：Industrial real estate properties heldby MFLP-REIT：Properties developedby Mitsui Fudosan

40

3-1. Market Overview

Market Overview 1
Supply-demand balance andvacancy rate 2 3：New supply in 2021 and 2022

：Vacancy rate 0–5%

：Submarket areas：New demand 2021 and 2022

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

Greater Osaka Area

*As of the end of December 2022

Forecast

thousand ㎡

2,000

15%
12%

1,500

9%

Osaka inland area

Other area in
Keihan (between
Kyoto and Osaka)

1,000
6%
500

3%

0

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

（year）

thousand ㎡

750

18%

500

12%
Osaka Bay/
Kobe area

250

6%
1.3%
1.0%

0

0%
Q1

Q2

Q3

Q4

Q2

Q3

Q4

2022

2021
New supply

Q1

New demand

Vacancy rate

Vacancy rate(logistics facilities 1 year
old or older)

Source: CBRE K.K. (February 2023)* Survey of rental logistics facilities held by real estate investment companies,
real estate development companies, etc. with total floor area of 5,000 m2 or more.

：Logistics facilities properties heldby MFLP-REIT：Properties developedby Mitsui Fudosan

41

3-1. Market Overview

Market Overview 1
Supply-demand balance and vacancy rate 3
Greater Nagoya Area

New supply

New demand

3

Kyushu Area
Forecast

thousand m2

Chugoku Area
Forecast

thousand ㎡

1,000

15%

750

15%

0%

50

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

0%

0

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

（year）（year）

thousand ㎡
18%

10%

5%
100

500

20%
100

5%

thousand m2

30%

10%
200

0

200

150

300

250

Forecast

thousand ㎡

400

10%
500

Mitsui Fudosan’s
strategic areas

Vacancy rate(logistics facilities 1 year
old or older)

Vacancy rate
：Properties developedby Mitsui Fudosan：Logistics facilities properties heldby MFLP-REIT（year）

thousand ㎡

150

18%

100
18%

400

75
12%

300

100

15%

12%
12%

8.1%

50

9%

200
6%

50

6%
25

1.6%

100

3.1%

0

Q1

Q2

Q3
2021

Q4

Q1

Q2

Q3

Q4

0%

2022

Source: CBRE K.K. (February 2023)* Survey of rental logistics facilities held by real estate investment companies,
real estate development companies, etc. with total floor area of 5,000 m2 or more.

0

Q1

Q2

Q3
2021

Q4

Q1

Q2

Q3
2022

Q4

6%
3%

0.8%
0%

0

Q1

Q2

Q3
2021

Q4

Q1

Q2

Q3

Q4

0%

2022

42

3

-1. Market Overview

Market Overview 2
Stock of logistics facilities in Japan*
Logistics facilities
40 years old or older
44.8%
Future demand for
replacement ofaging properties

Logistics facilities
less than 40 years old
49.1%(million m2)
700

Leading-edge
logistics facilities
6.1％

Highly scarceleading-edge
logistics facilities(As of December 2022)

50%

600
40%
500
400

30%

300

20%

200
10%
100
0

0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021（year）
築40年未満の推計値
less than 40 years old

Share of logistics facilities

先進的物流施設シェア
facilities(right axis)* Estimates by CBRE K.K. based on “Building Starts” (Ministry of Land, Infrastructure, Transport and Tourism) and “Summary Report on Prices, etc. of Fixed
Assets” (Ministry of Internal Affairs and Communications). Top left pie chart created by Asset Management Company, based on data the above graph.
For further details, please refer to [About analysis of Japan's logistics facilities stock] in the Notes on Matters Stated in this Document on p.55-56.

Tenant demand to increase floor space in logistics facilities
Survey “Priority/Focus Initiatives for the Next 3 Years (FY2022)”0%Over 40 years old
thousand m2

10%Open new logistics facilities,
increase floor area, number of facilities

20,00013%

Working environment for employees,
improving safety features

15,00010%

ESG initiatives 2% 2%

1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

* Figures calculated as the sum total of the floor area of structures with “warehouse” as the use category and “steel-framed structure,”“reinforced concrete structure” or “steel-framed reinforced concrete structure” as the structure type.

Other

1% 1%

11%
8%
11%

10%

Upgrade omni-channel
2% 3%
to reflect ESG issues
Assessing situation for now 2% 1%

60%
7%

16%

15%
12%

50%

18%

16%

15%

Refurbish existing facilities
and equipment（year）

40%
16%

17%

13%

Consolidate/relocate facilities

5,000

30%

15%

9%

Enhance transport and delivery network

10,00020%33%Adopt/upgrade automationequipment/facilities

Source: CBRE K.K. (February 2023)

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

Share of leading-edge logistics

築40年以上のシェア
40 years old or older

Long-term data on construction starts of logistics
facilities (nationwide)0

Estimate for logistics facilities

Estimate for logistics facilities
築40年以上の推計値
40 years old or older

7%6%

Top priority

2nd priority

3rd priority

Source: CBRE K. K. “ Tenant Survey on use of Logistic Facilities 2022” (as of June 2022)

43

3-1. Market Overview

Market Overview 3
Rising demand on back of growth in e-commerce market scale
Expanding e-commerce Market Scale

210,000
E-commerce ratio(the whole world)
E-commerce ratio(USA)

Trend in percentage of households
engaged in net shopping

Trend in net shopping expenditures

20.7

（yen）

trillion yen（%）(hundred million yen)

180,000

Rise of e-commerce penetration

20
19.6%

FY202226,000FY2019E-commerce ratio(Japan)
Scale of E-commerce market

15

12.9%
10

120,000

22,000

800
20

48%
46%

0

400

44%

5

(year)

600

18,00016,00060,00014,00042%

12,00040%
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

10200
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Broader demand for leading-edge
logistics facilities

Attracting demand from retailers for delivery
Mounting demand due to 3PL
business and e-commerce market centers (Convenience Stores/Drug Stores)
size expansion
Conventional
3PL Market : Stable Growth(hundred million yen)0

Source: Ministry of Internal Affairs and Communications “Survey of Household Economy” “Monthly expenditures per household utilizing the Internet”
nationwide, stratified into districts and urban areas.(as of February 7, 2023)

Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade and Industry(Announced on August 12, 2022)* Amounts and percentages indicate the scale of B to C market in the e-commerce market.
The basis for the calculation of the e-commerce ratio is limited to merchandise sales.

Manufacturing

4.5

30

1,000

20,0008.8%

90,000

Leased floor area related to mail order sales(thousand ㎡)

52%
50%

150,000(%)

Related to mail order sales (%)

FY201954%

24,000（thousand ㎡）
1,200

FY202256%

e-commerce operators: Increase in leased floor area,
share of leased floor area

Source: Japan Logistics Field Institute, Inc.

Expansion of the data center
marketForecast of operational racks at hyperscaledata centers
Avg. annual
growth rate

Store

Wholesaler

0(year)

Consolidation of scattered logistics bases into a delivery center（Units）
120,000(2020-2025 years)

20.5%

trillion yen

45,000Net sales
40,00090,000After
consolidation
Manufacturing

Delivery center

Store

35,00030,00060,000Integrating Logistics Bases of Manufacturers
30,00025,000Conventional

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
（year）
Source: Monthly Logistics Business (September 2022)

Warehouse
Transport
for endproducts

Consolidation of separately locatedwarehouses for parts, assembly plants
and warehouses for end products into
one base

15,00010,000Transport

Assembly plantAfter
consolidation

MFLP

Transport0

Retail stores/ Consumers

20,000Warehouse for Transport
parts

2019
2020
2021
2022
2023
2024
2025
(year)
Source: Fuji Chimera Research Institute , Inc.
‘Overview of Data Center Business Market Research 2021(Market section)’(March 2021)* 2019 is prospective data point; all data points for 2020 and beyond are forecasts)

44

MEMO

45

4. Appendix

46

4

Appendix

Our Portfolio 1 2 (After acquisition of properties acquired in the 14th FP)
Total acquisition price

Adjusted forecast NOI yield

Appraisal NOI / Appraisal value

Average building age

Occupancy rate

25 properties 358.7 billion yen

4.9 % (after depreciation 3.3 %)4.1 %6.1 years

99.8 %

Category

Logistics
facilities

Propertyno.

Property nameLocation

Acquisition
price(million yen)Appraisalvalue(million yen)

Adjusted
forecast
NOI yield(%)

Appraisal
NOI yield(%)

Appraisal
NOI /Appraisalvalue* (%)

Gross floor
area*1(㎡)

Total leasable
floor area* *2(㎡)

Building
age(years)Occupancy
rate
(%)

L-1

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

Ichikawa,
Chiba

15,50019,800

4.9

4.9

3.8

105,019（52,509）50,813

9.0

100

L-2

MFLP Kuki

Kuki, Saitama

12,50015,400

5.7

5.1

4.2

73,15367,925

8.6

100

L-3

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

Yokohama,
Kanagawa

10,10011,400

5.2

4.9

4.3

100,530（50,265）

47,939

13.8

100

L-4

MFLP Yashio

Yashio,Saitama

9,650

12,000

5.3

5.2

4.2

40,72839,692

8.9

100

L-5

MFLP Atsugi

Aiko,
Kanagawa

7,810

10,200

5.9

5.5

4.2

40,942

40,958

7.9

100

L-6

MFLP Funabashi Nishiura

Funabashi,
Chiba

6,970

8,390

5.3

5.2

4.3

30,94731,034

8.0

100

L-7

MFLP Kashiwa

Kashiwa,
Chiba

6,300

8,000

5.7

5.4

4.2

31,242

31,291

7.2

100

L-8

MFLP Sakai

Sakai, Osaka

23,60027,600

5.4

4.9

4.2

125,127

112,148

8.4

100

L-9

MFLP Komaki

Komaki, Aichi

8,260

8,980

4.9

4.7

4.3

40,59738,806

6.0

100

L-10

MFLP Hino(25% quasi co-ownership interest)

Hino, Tokyo

12,533

13,900

4.7

4.2

3.8

205,200（51,300）

46,801

7.3

100

L-11

MFLP Hiratsuka

Hiratsuka,
Kanagawa

7,027

8,230

5.0

4.8

4.1

33,06133,055

6.2

100

MFLP Tsukuba

Tsukubamirai,
Ibaraki

37,02737,938

12.6

L-12

8,781

11,200

5.8

5.8

4.5
25,45725,600

4.8

Existing building
Annex building

100

L-13

MFLP Inazawa

Inazawa,
Aichi

16,20018,900

4.8

4.9

4.2

72,88368,922

5.7

100

L-14

MFLP Atsugi II

Isehara,Kanagawa

13,10015,300

4.7

4.5

3.9

48,97648,0324.8

100* For further details, please refer to [Our portfolio] in the Notes on Matters Stated in this Document on p.55-56.
*1 “Gross floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*2 “Total leasable floor area” figures are the figures after taking into consideration the ownership interest.

47

4

Appendix

Our Portfolio 2 2 (After acquisition of properties acquired in the 14th FP)
Category

Logistics
facilities

Propertyno.

Location

Acquisition
price(million yen)Appraisalvalue(million yen)

Adjusted
forecast
NOI yield(%)

Appraisal
NOI yield(%)

Appraisal
NOI /Appraisalvalue* (%)

Gross floor
area*1(㎡)

Total leasable
floor area* *2(㎡)

Building
age(years)Occupancy
rate
(%)

L-15

MFLP Fukuoka I

Kasuya,Fukuoka

5,263

6,250

5.2

5.1

4.3

32,19932,216

6.3

100

L-16

MFLP Prologis Park Kawagoe(50% quasi co-ownershipinterest)

Kawagoe,
Saitama

14,80017,450

4.7

4.7

4.0

117,337（58,668）

56,723

4.3

94.2

L-17

MFLP Hiroshima I

Hiroshima,
Hiroshima

14,48016,300

5.3

5.1

4.5

68,427

66,665

3.4

100

L-18

MFLP Ibaraki

Ibaraki,Osaka

58,90067,900

4.7

4.3

3.8

230,435

208,811

5.4

100

L-19

MFLP Kawaguchi I

Kawaguchi,
Saitama

18,50020,200

4.3

4.1

3.8

49,838

48,119

3.3

100

L-20

MFLP Yachiyo Katsutadai

Yachiyo,Chiba

18,00018,600

4.6

4.2

4.1

74,624

69,830

2.4

100

L-21

MFLP Osaka I

Osaka,
Osaka

13,90014,200

4.0

4.0

3.9

43,91943,880

2.5

100

L-22

MFLP Hiratsuka II

Hiratsuka,
Kanagawa

12,70013,400

4.5

4.2

4.0

48,141

46,525

3.3

100

Katano,Osaka

16,50016,500

5.1

5.0

5.0

68,52867,2641.4

100

小計（平均）-

331,374

380,100

4.9

4.7

4.1

1,744,349（1,429,005）

1,360,997

6.1

99.8

I-1

MFIP Inzai

Inzai,
Chiba

12,22014,000

5.0

5.0

4.3

40,478Not
Disclosed

8.9

Not
Disclosed

I-2

MFIP Inzai II

Inzai,
Chiba

15,15016,700

4.8

4.8

4.3

27,26830,9062.7

100

Subtotal or Average-

27,37030,700

4.9

4.9

4.3

67,746

Not
Disclosed

6.4

Not
Disclosed

Total or Average-

358,744

410,800

4.9

4.7

4.1

1,812,096（1,496,752）

Not
Disclosed

6.1

99.8

L-23

Industrial
real estate

Property nameAcquired in 14th FP

MFLP Osaka Katano

References : As of end of 13th fiscal period
Logistics facilities(Property no. L-1 to L-22)

subtotal

314,874

363,600

4.9

4.7

4.0

1,675,820（1,360,476）

1,293,733

6.3

99.7

Total or Average(Property no. L-1 to L-22, I-1,I-2)-

342,244394,300

4.9

4.7

4.1

1,743,567（1,428,223）

Not
Disclosed

6.3

99.8

*1 “Gross floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*2 “Total leasable floor area” figures are the figures after taking into consideration the ownership interest.

48

4

Appendix

Individual Property Income Statement for 13th Fiscal Period(Unit: million yen)
GLP/
MFLP
Ichikawa
Shiohama

MFLP
Kuki

Number of days ofasset management

184

184

184

Lease
business
revenue

452

440

340

775

358

OperatingOtherrevenue
leasefrom realbusiness
estaterevenueleasing

41

46

22

91

Total

494

487

362

867

Outsourcing
expenses

41

34

27

Utilities
expenses

28

38

19

60

30

6

24

16

11

10

39

42

39

81

38

Operating Repair
expenses expenses
from
real
Propertyestate
relatedleasingtaxes
Other
expenses
Total

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

MFLP
YokoMFLPhama
YashioDaikoku

184

MFLP
MFLP
FunaMFLP
MFLP
Atsugi bashi Kashiwa Sakai
Nishiura

184

184

184

184

Not
Not
Not
Not
disclosed disclosed disclosed disclosed
*
*
*
*

61

MFLP
Komaki184

Notdisclosed
*

4

MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
MFLP
Prologis
MFLP
Atsugi Fukuoka
HiroHino Hiratsuka Tsukuba Inazawa
Park
IbarakiII
I
shima I
Kawagoe

MFLP
MFLP
MFLP
Yachiyo MFLP
KawaHiraKatsu- Osaka I
guchi Itsuka II
tadai

MFIP
Inzai

MFIP
Inzai II

Total

184

184

184

184

-

184

184

425

479

1,738

10,245

34

24

41

139

714

393

449

520

1,878

10,960

25

33

108

26

28

98

1

2

32

46

59

164

1

2

99

45

184

184

184

184

184

184

Not
Not
Not
Not
Not
disclosed disclosed disclosed disclosed disclosed
*
*
*
*
*

184

184

Not
Not
Not
Not
Not
Not
disclosed disclosed disclosed disclosed disclosed disclosed
*
*
*
*
*
*

688

551

247

930

2

2

1

118

142

105

-

-

-

-

219

-

126

-

-

-

-

-

101

127

504

-

-

-

-

-

-

2,563

80

110

89

63

63

49

50

205

89

87

51

94

182

114

56

107

133

426

93

151

91

86

97

130

2,707

295

234

168

191

164

126

122

442

62

179

114

152

208

190

88

240

259

948

294

308

223

228

209

233

5,688

376

344

257

254

227

175

172

647

152

267

165

247

391

304

144

348

392

1,374

388

460

315

314

306

364

8,396

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

1

184

145

49

4

Appendix

Appraisal Summary for the End of 13th Fiscal Period(Unit: million yen)
End of 12th fiscal period*(End of Jul. 2022) (a)*1
AppraisalCR
value
19,4003.7%

End of 13th fiscal period*(End of Jan. 2023) (b)*1
AppraisalCR
value
19,8003.7%

Change(b)-(a)Appraisalvalue

Acquisitiondate

Acquisition
price

GLP/MFLP Ichikawa Shiohama (50%)

September 2016

15,500End of 13th
fiscalperiodBook value
14,617

400

0.0

-

〇

MFLP Kuki

August 2016

12,50011,306

15,2004.1%

15,400

4.0%

200

-0.1

〇

〇

MFLP Yokohama Daikoku (50%)

August 2016

10,1009,551

11,2004.2%

11,400

4.1%

200

-0.1

〇

〇

MFLP Yashio

August 2016

9,650

8,943

12,000

4.0%

12,000

4.0%

0

0.0

-

-

Main factors of change
CR

*1

CR

*1

Other

MFLP Atsugi

August 2016

7,810

7,059

10,000

4.1%

10,200

4.0%

200

-0.1

〇

〇

MFLP Funabashi Nishiura

August 2016

6,970

6,362

8,390

4.1%

8,390

4.1%

0

0.0

-

-

MFLP Kashiwa

August 2016

6,300

5,710

7,810

4.2%

8,000

4.1%

190

-0.1

〇

-

MFLP Sakai

August 2016*

23,60022,57827,5004.1%

27,600

4.1%

100

0.0

-

〇

MFLP Komaki

August 2017*

8,260

7,454

8,930

4.2%

8,980

〇

4.1%

50

-0.1

〇

MFLP Hino (25%)

February 201812,533

11,887

13,9003.8%

13,900

3.8%

0

0.0

-

-

MFLP Hiratsuka

March 2018

7,027

6,596

8,110

4.1%

8,230

4.0%

120

-0.1

〇

〇

MFLP Tsukuba

December 2018*

8,781

8,231

11,000

4.5%

11,200

4.4%

200

-0.1

〇

〇

MFLP Inazawa

February 201916,20014,95018,4004.2%

18,900

4.1%

500

-0.1

〇

〇

MFLP Atsugi II

February 201913,10012,31815,0003.9%

15,300

3.8%

300

-0.1

〇

〇

MFLP Fukuoka I

February 2019*

5,263

4,874

6,110

4.3%

6,250

4.2%

140

-0.1

〇

-

MFLP Prologis Park Kawagoe (50%)

February 2020

14,80014,28817,0503.9%

17,450

3.8%

400

-0.1

〇

〇

MFLP Hiroshima I

March 2020

14,48013,87916,0004.5%

16,300

4.4%

300

-0.1

〇

〇

MFLP Ibaraki

October 2020

58,90057,231

67,1003.7%

67,900

3.7%

800

0.0

-

〇

MFLP Kawaguchi I

October 2020

18,50018,16920,1003.7%

20,200

3.7%

100

0.0

-

〇

MFLP Yachiyo Katsutadai

February 2022

18,00017,881

18,2004.1%

18,600

4.0%

400

-0.1

〇

〇

MFLP Osaka I

February 2022

13,90013,844

14,2003.8%

14,200

3.8%

0

0.0

-

-

MFLP Hiratsuka II

February 2022

12,70012,647

13,0004.0%

13,400

3.9%

400

-0.1

〇

〇

MFIP Inzai

August 2016*

12,22011,45913,6004.3%

14,000

4.2%

400

-0.1

〇

-

MFIP Inzai II

March 2021

15,15014,77816,3004.4%

16,700

4.3%

400

-0.1

〇

-

Total/average-342,244326,622

388,500

4.0%

394,300

4.0%

5,800

-0.1

-

-

*

Reference (as of February 1, 2023)*

Difference＝Unrealized gain* 67,677 million yen

MFLP Osaka Katano

February 2023

16,50016,500--16,500

4.8%

-

-

-

-

Total/average after acquisition ofproperties acquired in the 14th FP-

358,744

343,122--

410,800

4.0%

-

-

-

-

* For further details, please refer to [Appraisal Summary for the End of 13th Fiscal Period] in the Notes on Matters Stated in this Document on p.55-56.
*1 CR = Capitalization rate based on direct capitalization method (NCF basis). The average indicates a weighted average based on the appraisal value.

50

4Appendix

Statement of Income and Balance Sheet
Statement of income
12th fiscal period(ended Jul. 31, 2022)
Actual(Unit: million yen)
13th fiscal period(ended Jan. 31, 2023)
Actual

10,607

10,96010,054

10,245

553

714

6,148

Expenses related to rent business
Asset management fee
Asset custody and administrative
service fees
Directors’ compensations

Item
Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses

Other operating expenses
Operating income

Balance sheet
12th fiscal period(ended Jul. 31, 2022)
Actual(Unit: million yen)
13th fiscal period(ended Jan. 31, 2023)
Actual

9,759

9,741

686

1,966

Cash and deposits in trust

6,894

7,685

6,455

Consumption taxes receivable

1,848

-

5,011

5,271

Other current assets

330

90

1,023

1,067

329,115

326,695

329,102326,670

34

37

Item
Current assets
Cash and deposits

Non-current assets
Property, plant and equipment
Other non-current assets

6

6

72

72

4,459

4,504

12

25

142

114

Total assets

339,016

336,551

Current liabilities

17,581

14,304

364

791

Deferred assets

Non-operating income

03

Non-operating expenses

293

302

Operating accounts payable

216

224

Short-term borrowings

5,200

-

7

10

Current portion of long-term loans payable
Accounts payable

9,000

9,600

1,173

1,257

Interest expenses
Interest expenses on investment
corporation bonds
Amortization of investment corporationbonds
Amortization of investment
unit issuance expenses
Offering costs associated withIssuance of investment units
Other

1

1

Income taxes payable

00

Income consumption taxes payable

-

789

1,829

1,851

43

43

16

-

7

21

Ordinary income

4,166

4,206

Investment corporation bonds

Profit before income taxes

4,166

4,206

0

0

Long-term borrowings
Tenant leasehold and security deposits in trust

Income taxes

Advances received

Profit (Net income)

4,165

4,205

Unappropriated retained earnings

4,165

4,205

Other current liabilities
Non-current liabilities

14

14

116,597

118,015

3,000

5,000

106,700

106,100

6,897

6,915

Total liabilities

134,179

132,320

Total unitholders’ equity

204,837

204,230

Unitholders’ capital

203,299

203,299

Deduction from unitholders’ capital-2,628-3,274

Unitholders’ capital, net
Surplus
Total net assets

200,671
4,165
204,837

200,025
4,205
204,230

Total liabilities and net assets

339,016

336,551

51

4

AppendixExternal Evaluation and Certifications
DBJ Green Building certification
DBJ Green Building Certification aims to encourage the spread of real estate(“Green Buildings”) that takes into account environmental performance anddisaster preparedness, as well as the societal needs of various stakeholders,
including local communities. This is assessed using a proprietary scoringmodel developed by Development Bank of Japan Inc., resulting in selected
properties that address the needs of the times being given a ranking of 1 to
5 on a 5-star scale.

CASBEECASBEE (Comprehensive Assessment System for Built Environment
Efficiency) is a comprehensive system, created under the leadership of the
Ministry of Land, Infrastructure, Transport and Tourism, for evaluating thequality of buildings. In addition to the original goals of reduced energy
consumption and the use of building materials with low environmental impacts,
it also takes into account the comfort of the interior and the landscape.

BELS
BELS is a third-party evaluation system that displays the energy-saving
performance of buildings. From April 2016, real estate companies and otherentities are required to make efforts to display the energy-saving
performance of buildings based on the Act on the Improvement of Energy
Consumption Performance of Buildings (“Building Energy Efficiency Act”).
The specific method of display is set out in the energy conservation
performance display guidelines for buildings prescribed by the Ministry ofLand, Infrastructure, Transport and Tourism, and BELS is assessed using
these guidelines as a base, resulting in an evaluation and 5-star scale.

ZEB
ZEB (Net Zero Energy Building) is a building that aims to achieve a zeroenergy balance through substantial reductions in annual primary energy
consumption. This is achieved by saving as much energy as possible via
better thermal insulation of the building and highly energy efficient equipment,
etc., coupled with creating energy by solar power generation or other energy
generating methods, while maintaining a comfortable environment. In the
BELS certification system, the certification of the level of ZEB is presented infour stages: “ZEB,” “Nearly ZEB,” “ZEB Ready,” and “ZEB Oriented.”

Property name

DBJ Green
Building *GLP・MFLP Ichikawa Shiohama
MFLP Kuki

MFLP Yokohama Daikoku

Rank A*
★★★

★★★★*

★★★★★

ZEB Ready★★★★★

ZEB Ready★★★★

ZEB Ready★★★★★

ZEB Ready★★★★★

ZEB Ready

Rank A*

MFLP Kashiwa

Rank A*★★★★★

Rank S*MFLP Komaki

Rank A*★★★★

MFLP Hiratsuka
MFLP Inazawa

ZEB

Rank A*

Rank A*

MFLP Hino

BELS

★★★★

Rank A*

MFLP Funabashi Nishiura

MFLP Sakai *1

Rank S*

Rank A*★★★★★

MFLP Yashio
MFLP Atsugi

CASBEECASBEE(New(Real estate) *construction) *Rank A*★★★★

Rank A*

MFLP Atsugi II

Rank A*
Rank A*

MFLP Fukuoka I

Rank A*

MFLP Prologis Park Kawagoe

★★★★

★★★★★

MFLP Hiroshima I★★★★

Rank A*★★★★★

ZEB Ready

MFLP Ibaraki★★★★

Rank A*★★★★★

ZEB Ready

MFLP Kawaguchi I★★★★

Rank S*★★★★★

ZEB Ready★★★★★

Nearly ZEB

11

9

Rank A*

MFLP Yachiyo Katsutadai
MFLP Osaka I

Rank A*

MFLP Hiratsuka II

Rank A*

Acquired in the 14th FP
MFLP Osaka Katanocertifications acquired Total

Rank A

10

10

12* For further details, please refer to [Green Building certification] in the Notes on Matters Stated in this Document on p.55-56.
*1 In addition to the above green certifications, MFLP Sakai also won the FY2015 Osaka Environmentally Friendly Building Award(Retail and other facilities category).

52

4

Appendix

Investment Unit Price Trends/Status of Unitholders（yen）

Investment unit price (closing price)

660,000

TSE REIT Index (indexed)

560,000

460,000

360,000

IPO issue price: 270,000 yen
260,000

160,000
2016/8/2

2017/10/31

2017/1/31

2017/4/30

2017/7/31

2017/10/31

2018/1/31

2018/4/30

2018/7/31

2018/10/31

2019/1/31

2019/4/30

2019/7/31

2019/10/31

2020/1/31

2020/4/30

2020/7/31

2020/10/31

2021/1/31

2021/4/30

2021/7/31

2021/10/31

2022/1/31

2022/4/30

2022/7/31

2023/1/31* The starting point is the price of the first trade at IPO on August 2, 2016.
* The TSE REIT Index is indexed to the August 2, 2016 opening price.

Status of unitholders at the end of 13th fiscal period (end of January 2023)◼ Number of Unitholders and Number of Investment Units by Type of Unitholder ■ Major Unitholders
Number ofinvestment
units

Number ofinvestment
units% of total

Custody Bank of Japan, Ltd. (trust account)

109,826units

19.1%

54.6%

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

92,484units

16.1%

6.4%

Mitsui Fudosan Co., Ltd.

28,900units

5.0%

25,651units

4.5%

12,336units

2.1%

269,197units

46.7%

Number ofunitholders% of total

Individuals/Other

7,341

91.5%

27,887units

4.8%

Financial institutions

165

2.1%

314,581units

Other Japanese
corporations

222

2.8%

36,808units% of total

Non-Japanese

275

3.4%

170,842units

29.7%

The Nomura Trust and Banking Co., Ltd.
(Investment Trust Account)

Securities companies

19

0.2%

25,882units

4.5%

SMBC Nikko Securities Inc.

Total

8,022

100.0%

576,000units

100.0%

Total

53

4

Appendix

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

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Property developed/operated

100,530㎡● (50%)-

GLP/MFLP Ichikawa Shiohama

105,019㎡● (50%)-

MFIP Inzai

40,478㎡●-

MFLP Yashio

40,728㎡●

MFLP Kuki

73,153㎡

MFLP Sakai
MFLP Funabashi Nishiura

Fiscal yearofcompletion

Property developed/operated

Total floor area

Acquisition
by MFLPREIT

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

MFIP Inzai II

27,268㎡

MFLP Tachikawa Tachihi

55,094㎡--

MFLP Osaka I

43,919㎡●--

MFLP Yachiyo Katsutadai

74,624㎡

●

-

●

-

MFLP Tosu

35,248㎡--

125,127㎡●-

MFLP Tokorozawa

21,721㎡-●

30,947㎡●-

MFLP Funabashi III

270,321㎡-●

MFLP Osaka Katano

68,528㎡●-

MFLP Ichikawa Shiohama II

166,099㎡-● (60%)

Fiscal 2020

Fiscal 2021

MFLP Atsugi

40,942㎡●

MFLP Hino

205,200㎡● (25%)MFLP Kashiwa

31,242㎡●-

MFLP Tomei Ayase

61,441㎡-● (50%)MFLP Funabashi I

197,746㎡--

Tokyo Rail Gate EAST

165,272㎡--

MFLP Fukuoka I

32,199㎡●-

MFLP Ebina I

121,909㎡--

MFLP Hiratsuka

33,061㎡●-

35,626㎡-● (50%)MFLP Komaki

40,597㎡●-

SG Realty MFLP
Fukuoka Kasuya

9,604㎡-●

72,883㎡●

MFLP Shinkiba I

MFLP Inazawa-

98,792㎡-●

MFLP Ibaraki

230,435㎡●

MFLP Yatomi Kisosaki-

Approx. 28,500㎡--

MFLP Tsukuba

62,484㎡●

MFLP Hiratsuka III-

Approx. 28,500㎡--

MFLP Atsugi II

48,976㎡●

MFLP Shinkiba II-

134,508㎡-● (41.5%)

117,337㎡● (50%)MFLP Zama

MFLP Prologis Park Kawagoe-

59,350㎡

80,334㎡---● (50%)

MFIP Haneda

Osaka City, Konohana-ku,
Torishima Logistics Project

MFLP Hiroshima I

68,427㎡●-

MFLP Ebina Minami

Approx. 37,470㎡--

MFLP Sendai Natori I

Approx. 44,793㎡--

MFLP Nagoya Iwakura

Approx. 58,444㎡--

MFLP・LOGIFRONT Tokyo Itabashi

Approx. 256,100㎡--

MFLP Ichinomiya

Approx. 66,043㎡--

MFLP Misato

Approx. 38,826㎡--

another data center (1 property)

-

-

-

other overseas properties(4 properties)

-

-

-

227,003㎡● (75%)-

49,838㎡●-

MFLP Hiratsuka II

48,141㎡●-

MFLP Kawasaki I

45,512㎡
49,801㎡-

Fiscal 2022

Fiscal 2023●

MFLP Kawaguchi I

MFLP Yokohama Kohoku*

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

MFLP Yokohama Daikoku

MFLP Funabashi II
Fiscal 2019

Total floor
area

Acquisition
by MFLPREIT-

Fiscal 2024

Fiscal 2025-

For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement] [Major
properties developed/operated by Mitsui Fudosan] in the Notes on Matters Stated in this Document on p.55-56.

TBD*1 MFLP Yokohama Daikoku is listed under the fiscal year in which the property began its operations. The fiscal year of completion of
the property is fiscal 2009. The fiscal year of completion of the existing building of MFLP Tsukuba is fiscal 2010.
*2 The percentage figures in parentheses is the percentage of quasi co-ownership interest in the portfolio asset.

54Notes on Matters Stated in this Document* Unless otherwise specified, figures indicated in whole numbers are rounded down to the nearest specified unit and figures with a decimal point are rounded to the nearest indicated unit.
* Unless otherwise specified, descriptions are made based on the following.
[Highlights] / [Basic Strategy and Four Roadmaps] / [Internal Growth Strategy] / [Our Portfolio]“Distribution per unit (DPU) ”
Includes distribution in excess of earnings. (Number of investment units issued and outstanding: 224,000 units at the end of the 1st/2nd/3rd fiscal periods / 262,774 units at the end of 4th and 5th fiscal periods / 379,000 units at the end of 6th and 7th fiscal periods /441,000 units at the end of 8th fiscal period / 542,000 units at the end of 9th/10th/11th fiscal periods / 576,000 units at the end of 12 th/13th/14th/15th fiscal periods)“Occupancy rate”
Leased area as a percentage of leasable area. Based on concluded agreements as of January 31, 2023 (end of 13 th fiscal period).
Average occupancy rate during the fiscal period is the simple average of the occupancy rate as of the end of each month during the fiscal period. Based on concluded agreements“LTV”
LTV = Balance of interest-bearing debt ÷ Total assets“Acquisition capacity”
Amount of debt that can be additionally financed assuming that LTV is raised to 50%. The amount indicated is rounded to the nearest billion yen.
“Adjusted forecast NOI yield”
Annualized after subtracting the fixed asset tax and city planning tax for the property acquired in the 14 th fiscal period from the NOI assumed in the earnings forecast for the 14 th and 15th fiscal periods as well as adjusting special factors, and dividing it by the totalacquisition price.
Subtotal (average) and total (average) for each category indicate the weighted average based on acquisition price.
“Building age”
Number of years from the date of construction of the main building of a property acquired in the register to January 31, 2023 (end of 13th fiscal period).
“Average building age” and subtotal (average) and total (average) indicates the weighted average based on the total floor area, considering the quasi co-ownership interest of each property.
“Green Building certification”
Calculations based on leasable floor area adjusted to unreflect quasi co-ownership interests.
“Appraisal NOI yield”
Ratio of net operating income under direct capitalization method stated in real estate appraisal report (“Appraisal NOI”) to acquisition price. “Average NOI yield” and subtotal (average) and total (average) for each category indicate the weighted average based on
acquisition price.
“Appraisal value”
Appraisal values corresponding to the quasi co-ownership interest ratio of each property as the appraisal date are indicated. Appraisal values with January 31, 2023 (end of 13th FP) as the appraisal date are indicated for properties owned as of the end of
13th FP, and those with November 30, 2022 as the appraisal date are indicated for properties acquired in 14th FP.
“Total floor area”
Figures based on the record on the register, rounding down to the nearest whole number.
“Leasable area”
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, 2023(end of 13 th FP).
(not include the leased area indicated in the lease agreements concerning shops, vending machines, solar power generation facilities, parking lots, nursery centers and the like)“Multi-tenant properties/Single-tenant properties/BTS”
Multi-tenant properties mean “GLP・MFLP Ichikawa Shiohama”, ”MFLP Kuki”, ”MFLP Yokohama Daikoku”, “MAFLP Yashio”, “MALP Sakai”, “MALP Komaki”, “MFLP Hino”, “MFLP Inazawa”, “MFLP Atsugi II”, “MFLP Prologis Park Kawagoe”, “MFLP Hiroshima I”,“MFLP Ibaraki”, “MFLP Kawaguchi I”, “MFLP Yachiyo Katsutadai”, MFLP Hiratsuka II” and “MFLP Osaka Katano”. Single-tenant properties mean “MFLP Atsugi”, “MFLP Funabashi Nishiura”, “MFLP Kashiwa”, “MFLP Hiratsuka”, MFLP Tsukuba”, “MFLP Fukuoka I”,
and “MFLP Osaka I”. BTS mean “MFIP Inzai”, “MFIP Inzai II”.
“NAV per unit”“End of FP ended January 2017 (End of 1 st FP)”: (Net assets as of the end of FP ended January 2017 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended January 2017) / Number of investment units issued andoutstanding (224,000 units)“After acquisition of property in the 14th FP”: (NAV as of the end of FP ended January 2023 (End of 13th FP) + Unrealized gain on appraisal basis of property acquired in 14th FP (*) /Number of investment units issued and outstanding (576,000 units)* Unrealized gain on appraisal basis of property acquired in 14th FP: Appraisal value of property acquired in 14th FP – Acquisition price of property acquired in 14th FP.
*Calculation of NAV as of the end of each fiscal period based on net assets as of the end of each FP and unrealized gain on appraisal basis less total distribution amount divided by number of investment units issued and outstanding.
“Market cap”
End of FP ended January 2023 (End of 13 th FP):
Closing price of the investment unit as of the end of the FP ended January 2023 (453,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended January 2023 (576,000 units).
Market cap as of end of each FP calculated using closing price at end of FP multiplied by number of investment units issued and outstanding as of the end of each FP.
“Calculation of average lease term”"Average lease term" is calculated using the average of the lease terms stated in concluded lease agreements as of January 31, 2023 weighted by the leasable floor area.
With regard to the lease agreements to be included in the calculation, when a re-contract starting on the day immediately following the expiration date of the respective lease agreement is concluded with the same lessee, the lease term is deemed to be from the startof the initial lease agreement to the expiration date of the re-contract, and used in the calculation as such.
“Calculation of remaining lease contract period”"Average lease term" is calculated using the average of the remaining period in the lease terms after January 31, 2023, based on the concluded lease agreements as of January 31, 2023.
With regard to the lease agreements to be included in the calculation, when a new lease agreement ("re-contract") is concluded with the same lessee, the remaining period shall be calculated assuming that the lease period continues from the day immediately
following the expiration date of the previous contract to the expiration date of the re-contract.
“Appraisal NOI / Appraisal value”
Appraisal NOI divided by appraisal value. The subtotal (average) and total (average) of “Appraisal NOI / Appraisal value” for each category indicate the weighted average based on the appraisal value.
[Properties defined in “Right of first look and preferential negotiation rights agreement”]“Properties defined in “Right of first look and preferential negotiation rights agreement” refers to properties on the list of right of first look and preferential negotiation properties pertaining to real estate subject to provision of information, presented based on the Right offirst look and preferential negotiation rights agreement executed between the Asset Management Company and Mitsui Fudosan upon the Asset Management Company managing MFLP-REIT’s assets. “Real estate subject to provision of information” refers to, among
real estate, etc. held by Mitsui Fudosan or a real estate fund which accepted investment or monetary contribution of Mitsui Fudosan, those which are judged to have the possibility to be sold to MFLP-REIT at Mitsui Fudosan’s discretion.
The (number of) subject properties and ratio/total floor area indicate figures after considering co-ownership interest (or quasi co-ownership interest).

55

Notes on Matters Stated in this Document[Industrial real estate]
Real estate which is used to provide the framework for industrial activity such as data centers, communications facilities, research facilities, manufacturing plants and supply/treatment facilities.
[Method of calculation of cash distribution based on FFO]
(1) Distribution of earnings is determined based on profit (net income) for the applicable operating period.
(2) FFO for the applicable operating period is calculated by adding depreciation to profit (net income) (excluding gain or loss on sale of real estate, etc.) for the applicable operating period.
(3) The amount distributable including distribution in excess of earnings is calculated based on a threshold of an amount equivalent to 70% of FFO for the applicable operating period.
(4) The amount distributable in excess of earnings is calculated by deducting the amount of distribution of earnings (excluding gain or loss on sale of real estate, etc.) from the amount distributable including distribution in excess of earnings.
(5) The amount of continuous distribution in excess of earnings is determined based on a comprehensive judgment on the basis of the amount distributable in excess of earnings.
(6) The distribution in excess of earnings determined in 5. above is to be continuously made each fiscal period in principle, in addition to the distribution of earnings determined in 1. above.
In addition, in cases where the distribution amount for distributions per unit is expected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units, etc., a one-off distribution in excess ofretained earnings may be executed in order to standardize the amount of the distributions per unit.
[Major properties developed/operated by Mitsui Fudosan]
Based on materials released by Mitsui Fudosan on November 5, 2019, April 21, 2022 and financial third quarter results materials of Mitsui Fudosan for the fiscal year ending March 31, 2023 indicates the area recorded in the property registry or the certificate ofcompletion for completed properties, the area stated on the building confirmation certificate for uncompleted properties that are properties defined in “Right of first look and preferential negotiation rights agreement,” and the area stated in the material published by Mitsui
Fudosan for all other properties. The area for uncompleted properties is the planned area and is subject to change.
“Cumulative total investment size” includes properties under development or scheduled to be developed as of each date of publication and their (planned) investment amount. Properties scheduled to be developed include those targeted or planned by the Mitsui
Fudosan Group as of the date of this document and are subject to change or cancellation.
Furthermore, there are no details concerning the timing of completion of the aforementioned investments that had been finalized as of the date of this document. Nor does MFLP-REIT guarantee or promise that the plans be materialized.
“Tokyo Rail Gate EAST” is included in terms of the number of facilities and total floor area, but not in term of the amount. Mitsui Fudosan has no plans to acquire the property as of the date of this document.
[ZEB certification]
ZEB (Net Zero Energy Building) is a building that aims to achieve a zero energy balance through substantial reductions in annual primary energy consumption. This is achieved by saving as much energy as possible via better thermal insulation of the buildi ng and highly
efficient equipment, coupled with creating energy by photovoltaic power generation (or other energy generating methods), whi le maintaining a comfortable environment. In the BELS certification system, the certification of the level of ZEB is presented in four stages:“ZEB,” “Nearly ZEB,” “ZEB Ready,” and “ZEB Oriented.” “ ZEB Ready” is awarded to buildings that achieve primary energy reduction of 50% or higher.
[Annual solar power generation]
Actual power generated between January and the end of December 2022 at 12 properties with solar power generation facilities and owned by MFLP-REIT as of January 31, 2023 is indicated.
The total power generation amount of the entire properties is indicated regardless of ownership ratio held by MFLP-REIT.
[About analysis of Japan's logistics facilities stock](1) The "Analysis of Japan's logistics facilities stock" graph is of estimates by CBRE K.K. based on the Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism's "Building Starts" and the Ministry of Internal Affairs and Communications’"Summary Report on Prices, etc. of Fixed Assets."(2) In the "Analysis of Japan's logistics facilities stock" graph, "Leading-edge logistics facilities" is the figure of each year's sum total of the gross floor area of leading-edge logistics facilities (refers to rental logistics facilities that have gross floor area of at least 10,000 m2
and, in principle, ceiling height of at least 5.5 meters, floor load capacity of at least 1.5 tons/m2 and column spacing of at least 10 m).
(3) In the "Analysis of Japan's logistics facilities stock" graph, "Estimate for logistics facilities 40 years old or older" is the figure of each year's overall stock estimate (as covered by note 5; the same shall apply hereinafter) minus the sum total of the floor area of whichconstruction was started within the past 40 years.
(4) "Estimate for logistics facilities less than 40 years old" is the figure of the overall stock estimate minus the floor area of "Estimate for logistics facilities 40 years old or older" and "Leading-edge logistics facilities."(5) The overall stock estimate is the sum total of "Estimate for logistics facilities 40 years old or older," "Estimate for logistics facilities less than 40 years old" and "Leading-edge logistics facilities."(6) In the "Analysis of Japan's logistics facilities stock" graph, "Share of leading-edge logistics facilities" is each fiscal year's "Leading-edge logistics facilities" expressed as a percentage of the overall stock estimate (gross floor area basis).
(7) In the "Analysis of Japan's logistics facilities stock" graph, "Share of logistics facilities 40 years old or older" is each fiscal year's "Estimate for logistics facilities 40 years old or older" expressed as a percentage of the overall stock estimate (gross floor area basis).
(8) "Gross floor area" is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed to be completed after one year has elapsed from construction start. Accordingly,
gross floor area may not match the floor area on the building confirmation certificate, construction completion drawing or register.
[Appraisal Summary for the End of 13th Fiscal Period]
For appraisal values for properties where MFLP holds quasi co-ownership interests, the appraisal value reflects the ratio of quasi co-ownership interest.
The acquisition periods of “MFLP Sakai”, “MFLP Komaki”, “MFLP Hino”, “MFLP Tsukuba”, “MFLP Fukuoka I” and “MFIP Inzai” are divided into multiple periods, but the initial acquisition dates (Sakai: upon acquisition of 20% quasi co-ownership interest, Komaki: uponacquisition of 40% quasi co-ownership interest, Hino: upon acquisition of 15% quasi co-ownership interest, Tsukuba: upon acquisition of 60% quasi co-ownership interest, Fukuoka I: upon acquisition of 81% quasi co-ownership interest, Inzai: upon acquisition of 20%
quasi co-ownership interest) are indicated.
Book value of “MFLP Osaka Katano” at the end of 13th fiscal period as of February 1, 2023 indicates acquisition price; and appraisal value and CR at the end of 13th fiscal period indicates appraisal value with November 30, 2022 as the date of value.
Unrealized gain is a figure obtained by subtracting the period-end book value from appraisal value.
[Green Building certification]
With regard to “DBJ Green Building Certification”, only the certification for MFLP Atsugi has expired.
With regard to “CASBEE New Construction Certification” the certifications for all certified properties except for MFLP Prologis Park Kawagoe have expired.
With regard to “CASBEE Real Estate Certification”, there are 2 types of certification of comprehensive building environment efficiency: an assessment conducted by either an external body or the relevant local government, a system mainly employed by ordinancedesignated cities. With the exception of GLP/MFLP Ichikawa Shiohama, all certifications were based on applications for assessments under CASBEE-based systems established by local governments. The certifications for GLP/MFLP Ichikawa Shiohama have expired.

56

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

57

MEMO

58

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