Summary of Financial Results for the Fiscal Period Ended July 31, 2017 (REIT)
REIT Securities Issuer
Securities CodeRepresentative

Mitsui Fudosan Logistics Park Inc.
3471
Masayuki Isobe, Executive Director

Stock Exchange Listing
WebsiteAsset Management Company
Representative
Inquiries

Mitsui Fudosan Logistics REIT Management Co., Ltd.
Chishu Zushi, President and Chief Executive Officer
Tatsu Makino, Director & General Manager of Finance Division
Tel. +81-3-6327-5160

Scheduled date of submission of securities report:
Scheduled date of commencement of distribution payout:

October 25, 2017
October 13, 2017

Supplementary materials for financial results:
Holding investor presentation for financial results:

Yes
Yes (for analysts and institutional investors)

September 13, 2017
Tokyo Stock Exchange
http://www.mflp-r.co.jp/en/(Amounts less than ¥1 million have been rounded down)
1. Financial Results for the Fiscal Period Ended July 31, 2017 (February 1, 2017 to July 31, 2017)(1) Results of Operations(% figures denote rate of period-on-period change)
Operating revenues
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Fiscal period ended
2,548
6.9
1,181(9.7)
1,152
3.7
1,151
3.8
July 31, 2017
Fiscal period ended
2,383
1,307
1,111
1,110－－－－
January 31, 2017
Net income
per unit

Return on unitholders'equity%Ratio of ordinary income
to total assets%

Ratio of ordinary income
to operating revenues%

Yen
Fiscal period ended
5,141
1.9
1.4
45.2
July 31, 2017
Fiscal period ended
9,017
1.9
1.5
46.6
January 31, 2017
Notes:
1. At Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), the fiscal period ended January 31, 2017 was a period of 334 days fromMarch 4, 2016 to January 31, 2017, but the actual asset management period was 183 days from August 2, 2016 to January 31, 2017.
2. Net income per unit for the fiscal period ended January 31, 2017 is calculated by dividing net income by the daily weighted average
number of investment units (123,102 units). Net income per unit for the fiscal period ended January 31, 2017 using the daily weighted
average number of investment units deeming August 2, 2016, the starting date of the actual asset management period, as the beginningof the fiscal period (222,525 units) is ¥4,988.
3. Return on unitholders’ equity and ratio of ordinary income to total assets for the fiscal period ended January 31, 2017 are calculatedusing the respective average of unitholders’ equity and total assets as of August 2, 2016, the starting date of the actual asset
management period, and as of the end of the fiscal period.
4. Presentation of percentage figures for operating revenues, operating income, ordinary income and net income is the rate of period-onperiod change, but this is not applicable for the fiscal period ended January 31, 2017 as it is the first fiscal period.
(2) Distributions
Distributions
per unit(excludingdistributions
in excess ofearnings)
Yen

Total amount ofdistributions(excludingdistributions
in excess ofearnings)
Millions of yen

Distributions
in excess ofearnings
per unit

Total amount ofdistributions
in excess ofearnings

Yen

Millions of yen

Distributions
per unit(includingdistributions
in excess ofearnings)
Yen

Total amount ofdistributions(including
distributions
in excess ofearnings)
Millions of yen

Payoutratio

Ratio ofdistributions
tonet assets%%

Fiscal period ended
5,142
1,151
204455,346
1,197 100.0
1.9
July 31, 2017
Fiscal period ended
4,955
1,10924354
5,198
1,164 100.0
1.9January 31, 2017
Notes:
1. Due to the issuance of new investment units, the payout ratio for the fiscal period ended January 31, 2017 is calculated using thefollowing formula and rounded to the first decimal place.
Payout ratio = Total amount of distributions (excluding distributions in excess of earnings) ÷ Net income × 100
2. The total amount of distributions in excess of earnings for the fiscal period ended July 31, 2017 and the fiscal period ended January31, 2017 is entirely return of capital applicable to distribution reducing unitholders’ capital for tax purposes.
3. The ratio of decreasing surplus attributable to distributions in excess of earnings (return of capital applicable to distribution reducing
unitholders’ capital for tax purposes) for the fiscal period ended July 31, 2017 and the fiscal period ended January 31, 2017 is 0.001
for each. This calculation is based on Article 23, Paragraph 1, Item 4 of the Order for Enforcement of the Corporation Tax Act.
– 1 –(3) Financial Position
Ratio of unitholders’ equity
to total assets
Millions of yen%

Total assets

Net assets

Millions of yen
Fiscal period ended
July 31, 2017
Fiscal period ended
January 31, 2017

Net assets per unit
Yen

78,81159,44775.4

265,392

81,69859,46072.8

265,449

Cash flows fromoperating activities
Millions of yen

Cash flows frominvesting activities
Millions of yen

Cash flows fromfinancing activities
Millions of yen

Cash andcash equivalents
Millions of yen

4,938

(78)

(4,163)

3,780

(745)

(74,520)

78,3503,084(4) Cash Flows

Fiscal period ended
July 31, 2017
Fiscal period ended
January 31, 2017

2. Forecast for the Fiscal Period Ending January 31, 2018 (August 1, 2017 to January 31, 2018)(% figures denote rate of period-on-period change)

Fiscal period ending
January 31, 2018

Net income

Distributions
per unit(excludingdistributions
in excess ofearnings)

Distributions
in excess ofearnings
per unit

Distributions
per unit(includingdistributions
in excess ofearnings)

Operating revenues Operating income

Ordinary income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

YenYen

Yen

2,629

3.2

1,193

1.1

1,163

0.9

1,162

0.95,187306

5,493(Reference) Expected net income per unit for the fiscal period ending January 31, 2018:¥5,188• Other(1) Changes in accounting policies, changes in accounting estimates, or retrospective restatements(i) Changes in accounting policies due to revisions to accounting standards, etc.:
None(ii) Changes in accounting policies other than (i) above:None(iii) Changes in accounting estimates:None(iv) Retrospective restatements:
None(2) Total number of investment units issued and outstanding(i) Total number of investment units issued and outstanding at the end of the fiscal period (including treasury units)
Fiscal period ended July 31, 2017

224,000 units

Fiscal period ended January 31, 2017

224,000 units

Fiscal period ended January 31, 2017

0 units(ii) Number of treasury units at the end of the fiscal period
Fiscal period ended July 31, 2017

0 units• The implementation Status of Statutory Audit
At the time of disclosure of this financial report, the audit procedures for the financial statements pursuant to the Financial Instruments
and Exchange Act have not been completed.
• Appropriate use of the forecast of financial results; other special items
Forecasts of financial results and other forward-looking statements contained in this material are based on information currently
available to and certain assumptions deemed reasonable by MFLP-REIT. Actual operating performance, etc. may differ significantly
from these forecasts due to a variety of factors. Furthermore, these forecasts do not guarantee the above distribution amounts.
For details of assumptions for the above forecast figures, please refer to “Forecast Assumptions for the Fiscal Period Ending January
31, 2018 (August 1, 2017 to January 31, 2018)” described on page 3.

–2–

Forecast Assumptions for the Fiscal Period Ending January 31, 2018 (August 1, 2017 to January 31, 2018)

Item

Assumptions

Calculation

・The fiscal period ending January 31, 2018 (the third fiscal period): August 1, 2017 to January 31, 2018

period(184 days)

・It is assumed that the trust beneficiary interests in real estate (total of nine properties) held by MFLP-REIT

Investment
assetsas of July 31, 2017, plus the trust beneficiary interests in real estate for MFLP Komaki (one property)
acquired on August 4, 2017, to total ten properties (the “acquired assets”) will continue to be held and there
will be no acquisition of new properties other than the acquired assets through to the end of the fiscal period
ending January 31, 2018.
・Actual numbers may change due to the future acquisition of new properties other than the acquired assets
and/or disposal of the acquired assets, etc.
・Leasing business revenues are calculated based on lease contracts already concluded for the acquired assets

Operatingrevenuethat are in effect as of the date of this document, and other factors, including tenant movements and market
trends.
・Calculations assume that there will be no gain or loss on sale of real estate.

・ Leasing business expenses, which are major operating expenses, other than depreciation have been
calculated taking into consideration changes to expenses, with historical results used as a benchmark.
・Depreciation expenses are calculated using the straight-line method. Depreciation is expected to be ¥595
million for the fiscal period ending January 31, 2018.
・Leasing business income (excluding gain on sale of real estate) after the deduction of leasing business
Operatingexpenses

expenses (including depreciation) is expected to be ¥1,527 million for the fiscal period ending January 31,2018.
・Property taxes, city planning taxes and other charges on the acquired assets are expected to be ¥246 million
for the fiscal period ending January 31, 2018.
・Repair expenses for buildings are expected to be ¥22 million for the fiscal period ending January 31, 2018.
However, given the possibility that repair expenses may increase or additional expenses may be incurred
due to difficult-to-forecast factors, the actual results may differ largely from the forecast amount.

Non-operating
expenses・Interest expenses and other expenses related to borrowings are expected to be ¥30 million for the fiscal
period ending January 31, 2018.
・It is assumed that total interest-bearing debt will be ¥18,700 million at the end of the fiscal period ending

Interest-bearing
debt

January 31, 2018.
・The loan to value (LTV) ratio is expected to be 23.4% at the end of the fiscal period ending January 31,
2018. The following formula is used to calculate LTV ratio.
LTV ratio = Total interest-bearing debt ÷ Total assets × 100
・It is assumed that the total number of investment units issued and outstanding is the 224,000 units as ofInvestment
units

today, and there will be no change in the number of investment units by issuing new investment units, etc.
through to the end of the fiscal period ending January 31, 2018.
・Distribution per unit (excluding distribution in excess of earnings) and distribution in excess of earnings
per unit are calculated based on the 224,000 units of expected total number of investment units issued andoutstanding at the end of the fiscal period ending January 31, 2018.

–3–

Item

Assumptions

Distribution・Distribution per unit (excluding distribution in excess of earnings) is calculated in accordance with MFLP-per unit
(excludingREIT’s policy on distribution of cash described in its Articles of Incorporation and assuming that all profits
will be distributed.
・However, distribution per unit (excluding distribution in excess of earnings) may change for a variety ofdistribution
in excess ofearnings)

reasons, including changes in MFLP-REIT’s investment assets, changes in leasing revenues due to tenantmovements, etc., and/or the occurrence of unforeseen repairs and maintenance, etc.
・Distribution in excess of earnings per unit is calculated in accordance with MFLP-REIT’s policy on
distribution of cash described in its Articles of Incorporation and the asset management guidelines for theasset management company. Total distribution in excess of earnings are expected to be ¥68 million for thefiscal period ending January 31, 2018.
・MFLP-REIT emphasizes cash flow generated by asset management, such as the leasing of investment
assets, excluding gain or loss on sale of real estate. For the time being, it is MFLP-REIT’s policy to calculate
the amount distributable, including distribution in excess of earnings, to be around 70% of FFO up to amaximum of 75% of FFO and continually distribute the amount that exceeds the amount of distribution ofearnings, within a scope where financial stability can be secured and owned assets can be maintained for along duration of time, as distribution in excess of earnings determined based on a comprehensive judgmentof the situation (the “continuous distribution in excess of earnings”). However, the continuous distribution
in excess of earnings may be terminated given the economic environment, trends in the real estate market
or leasing market, the situation surrounding owned assets, the percentage of distribution in excess ofearnings accounted for in depreciation during MFLP-REIT’s applicable operating period(*1), and thesituation pertaining to LTV level and retained cash and deposits, among other factors.
・In addition to the continuous distribution in excess of earnings, in cases where the distribution amount for
distribution per unit (including distribution in excess of earnings) is expected to temporarily decline by aDistribution
in excess ofearnings
per unit

certain degree due to such factors as the procurement of funds through the issuance of new investment units,etc., a temporary distribution in excess of earnings may be executed in order to standardize the amount of
the distribution per unit (including distribution in excess of earnings).
・However, from the perspective of continuing to maintain owned assets for a long period of time, in cases
where the above distribution of cash is executed, and where the amount equal to the equivalent ofdepreciation for the applicable operating period minus the amount of the distribution in excess of earnings
for the applicable operating period falls below the standard amount of capital for building maintenance(*2),
the distribution in excess of earnings will be decreased by a maximum amount with in which the distribution
amount does not fall below the total equivalent of the distribution of earnings, and this may lead to cases
where distribution in excess of earnings will not be executed.
・In addition, from the perspective of continuing stable financial management, distribution in excess ofearnings will not be executed in cases where the appraisal LTV ratio(*3) exceeds 60% in the event that theabove distribution of cash is executed.
(*1)

The maximum will be an amount equivalent to 60% of the depreciation for the applicable operating period.
“Standard amount of capital for building maintenance” refers to the “amount equivalent to the capital
expenditure amount noted in the Building Condition Evaluation Report averaged over 12 years,” fromwhich an amount representing six months of capital expenditure is determined and then multiplied by two.
(*3) Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value
after depreciation of owned real estate on the applicable accounts settlement date + Appraisal valueof owned real estate on the applicable accounts settlement date(*2)

・It is assumed that there will be no change in legislation, taxation, accounting standards, listing regulations
Other

imposed by the Tokyo Stock Exchange, rules and requirements imposed by The Investment Trusts
Association, Japan, etc. that will impact the aforementioned forecasts.
・It is assumed that there will be no unforeseen material changes in general economic trends, real estatemarket conditions, etc.

–4–