6th Fiscal Period(Fiscal Period Ended
July 31, 2019)

Investor Presentation
Material
Mitsui Fudosan Logistics Park Inc.
(MFLP-REIT)

September 17, 2019

Securities Code3471

Table of Contents
1. Basic Strategy of MFLP-REIT
1-1 Trajectory of Growth of Mitsui Fudosan’s
Logistics Facilities Business
1-2 Four Roadmaps to Stable Growth andTrajectory of Growth
1-3 Steady Implementation of Four Roadmaps

4. Market Overview
…… P3

…… P5

…… P8
…… P9
…… P103. Management Status of MFLP-REIT
3-1 Management Status Highlights
3-2 Our Portfolio…… P153-2-2 Quality…… P17…… P183-3 External Growth
3-4 Internal Growth
3-5 Financial Strategy
3-6 Unitholder Relations

5. Appendix• Statement of Income and Balance Sheet• Individual Property Income Statementfor 6th Fiscal Period• Appraisal Summary for the End of 6th
Fiscal Period• Initiatives for ESG• Investment Unit Price Trends/Status of Unitholders• Mitsui Fudosan’s Major Development/Operation
Track Record…… P32…… P33…… P34…… P35…… P38…… P39…… P12…… P133-2-1 Location
3-2-3 Balance…… P27…… P4

2. Financial Summary
2-1 Financial Highlights
2-2 6th Fiscal Period (Ended July 2019) P/L
2-3 7th Fiscal Period (Ending January 2020)
Earnings Forecast

4-1 Market Overview…… P19…… P21…… P23…… P251

1. Basic Strategy of MFLP-REIT
MFLP-REIT aims to maximize unitholder value through a strategic partnershipwith Mitsui Fudosan, a major property developer that leverages the comprehensive
strengths of its corporate group to create value in its logistics facilities21-1. Trajectory of Growth of Mitsui Fudosan’s Logistics
Facilities Business
Development sites securing capability throughits corporate real estate (CRE) strategy

Cumulative total investment size as of May 2018
32 facilities 480.0 billion yen *Image of growth of properties (to be) developed/operated * by Mitsui Fudosan

Various CRE needs of client firms
Re-establishment ofcorporate logistics

Utilization of idle land

Development ofcorporate infrastructure

Trimming down of balance sheet(Off-balancing)Global development(Establishment of overseas sites)

Proposal of
CRE strategies

MFLP-REIT
IPODevelophigh-quality
properties inprime locations

Sale ofreal estate, etc.

Mitsui Fudosan
established the
Logistics Properties
Department

平成24年度Fiscal2012

Fully leverage the Mitsui FudosanGroup’s broad client network
Retail facility
business
Approx. 2,300 firms *平成27年度Fiscal2015

平成28年度（予定）
Fiscal2016

平成29年度（予定）
Fiscal2017

平成30年度（予定）
Fiscal2018

Strong relationships
with leading 3PL
operators
MFLP Sakai (80%)

Solutions-based asset management
Challenges facing logistics firms

平成31年度（予定）
Fiscal
2019(planned)

平成32年度（予定）
Fiscal
2020(planned)

completed: 620,000 m2* Source: Disclosed financial results materials of Mitsui Fudosan for the fiscal year ended
March 31, 2019End user

平成26年度Fiscal2014

Properties defined in “Right of first look andpreferential negotiation rights agreement” *9 properties 1,000,000 m2
Construction

Leasing capability leveraging client network

Office building
business
Approx. 3,000 firms *平成25年度Fiscal2013

MFLP Hino (75%)

MFLP Ibaraki

MFLP Prologis Park
Kawagoe (50%)

MFLP Hiroshima I

Construction notcompleted: 380,000 m2

Stably-operated
as leasing
progress

MFLP Funabashi II

MFLP Kawaguchi I

MFLP Hiratsuka II

Expansion ofproperties definedin “Right of firstlook andpreferential
negotiation rights
agreement”

MFLP Yokohama
KohokuImproving the efficiency of operations

MFLP-REIT

MFLP-REIT’s asset size

Addressing BCP, etc.

Logistics firm
(3PL operator, etc.)

Labor shortage
Anticipation of future rises indelivery costs

Evolution of solutionsbased asset management

Responding to automation

16 properties
Location

720,000 m2 156.7 billion yen
Quality

Continuous
external
growthBalance* For further details, please refer to “Major properties developed/operated by Mitsui Fudosan” and “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 41.

3

1-2. Four Roadmaps to Stable Growth and Trajectory of
GrowthFiscal 2016 - Fiscal 2018
6th fiscal period

1st – 5th fiscal periods

Asset size

1st follow-on offering

2nd follow-on offering

January 2018

January 2019

Acquisition withborrowed funds, etc.

August 20179 properties
billion yen

Acquisition withborrowed funds, etc.

December 201812 properties
13 properties

7th fiscal period

16 properties

78.7

98.3

103.5

156.7

billion yen

billion yen

billion yen

billion yen

8th fiscal period

Aim to continuously acquire
properties, focused onhigh-quality properties
200.0
covered by “Right of firstlook and preferential
billion yen
negotiation rights
Fiscal 2020
agreement”
target asset size

10 properties

755billion yen
75.5

Fiscal 2020

Fiscal 2019

Fiscal 2021 or after
9th fiscal period or after
Aim for further
expansion ofasset size

300.0
billion yen
Medium-termtarget asset size

LTV *End of 1st
fiscal period

24.5%

End of 2nd
fiscal period

End of 3rd
fiscal period

End of 4th
fiscal period

End of 5th
fiscal period

21.6%

22.5%

23.9%

26.8%

End of 6th
fiscal period

29.1%

27.6%

26.9%

6th fiscal
period7th fiscal
period(Forecast)

8th fiscal
period(Reference)

Distribution per unit
(DPU) *
1st fiscal
period2nd fiscal
period5,198 yen

5,346 yen

3rd fiscal
period5,563 yen

4th fiscal
period5th fiscal
period5,832 yen

6,105 yen

End of 2nd
fiscal period

Continuous DPU growththrough leverage effects

6,541 yen

6,496 yen

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

Medium- tolong-term
stabilized LTV level

40% to 50%
range

Growthpotential
6,346 yen

End of 6th
fiscal periodMarket cap *End of 1st
fiscal period

Fund procurement andLTV management optimalfor the expansion of
acquired asset size

End of 7th fiscal
period (Forecast)(January 31, 2020)

End of 3rd
fiscal period

End of 4th
fiscal period

Inclusion in
EPRA/NAREIT
Index

End of 5th
fiscal period

76.1

71.5

84.4

84.7

90.7

149.1

billion yen

billion yen

billion yen

billion yen

billion yen

billion yen

Expansion of market cap
through public offerings,
etc.

September 2019

* For further details, please refer to “Four Roadmaps to Stable Growth and Trajectory of Growth” on p. 41.

4

1-3. Steady Implementation of Four Roadmaps [1 of 2]
Expansion of Asset Size

No. of properties/Total floor area *Asset size
Adjusted forecast NOI yield *Average NOI yield *Average building age *Top 5 property ratio *Top 5 tenant ratio (logistics facilities only) *End of (January 31, 2019)
5th fiscal period

End of (July 31, 2019)
6th fiscal period

13 properties / 490,000

16 properties / 720,000

m2

103.5 billion yen

156.7 billion yen

5.3%

5.2%

5.0%

4.9%

4.7 years

4.6 years

54.1%

44.6%

43.3%

40.8%

m2

End of (January 31, 2020)
7th fiscal period
or after
Improvement of portfolio quality
and stability
Continuous external growthaccompanied with qualitative
improvement
Property acquisition considering
portfolio yield
Further diversification andimprovement of stability

Fund procurement optimal forthe expansion of asset size

LTV Management

LTV

27.6% ※End of (January 31, 2019)
5th fiscal period

End of (July 31, 2019)
6th fiscal period

LTV *

26.8%

29.1%

Acquisition capacity*(with LTV at 50%)49.0 billion yen

67.0 billion yen* For further details, please refer to “Four Roadmaps to Stable Growth and Trajectory of Growth” on p. 41.

※ end of the fiscal period ending January 2020 (Forecast)

46.8 billion yen
Debt (borrowings)
Average interest rate
0.26%
Average time to maturity
5.4 years

Expansion of acquisition capacity

70.0 billion yen ※EquityP/NAV 1.24 *P/BPU 1.40 *DPU growth potential(long-term only)51-3. Steady Implementation of Four Roadmaps [2 of 2]Distribution per Unit*

Continuous DPU growth
2nd follow-on
offering

6,700

DPU (yen)( ) EPU (yen)6,200

Acquisition withborrowed funds, etc.

5,700

5,563

5,200
4,700

5,346

5,198

Acquisition withborrowed funds, etc.
6,496
1st follow-on
6,415
offering
6,105
5,832

6,541

5,963
(5,783)

5,745(5,811)(5,843)(5,554)(5,497)

5,493

Decrease due to
expenses related to
fixed asset tax and city
planning tax forproperties acquired in
the 6th FP being
recorded (295 yen)

6,492

(5,288)5,190 (5,142)(4,955)

4,923

Earnings forecast for the
8th FP is assumed thatthe total number of theproperties assets held by
MFLP-REIT will be
16 existing properties

4,200
3,700

Forecast *1

ActualForecast *2

ActualForecast *3

ActualFP ended Jan. 2017
(1st FP)FP ended Jul. 2017
(2nd FP)FP ended Jan. 2018
(3rd FP)*1 Announced
on Sep. 13, 2016

*2 Announced
on Mar. 16, 2017

*3 Announced
on Sep. 13, 2017

Forecast *4

ActualForecast *5

ActualForecast *6

ActualForecast *6 Forecast *7

FP ended Jul. 2018
(4th FP)FP ended Jan. 2019
(5th FP)FP ended Jul. 2019
(6th FP)FP ending Jan. 2020
(7th FP)*4 Announced
on Mar. 15, 2018

*5 Announced
on Sep. 14, 2018

*6 Announced
on Mar. 15, 2019

*7 Announced
on Sep. 13, 2019

Expansion of Market Capitalization

Reference *7

FP ending Jul. 2020
(8th FP)

Enhancement of stability ofinvestment unit price and liquidity

End of (January 31, 2019)
5th fiscal period

End of (July 31, 2019)
6th fiscal period

Early inclusion in indexes

Market cap *90.7 billion yen

149.1 billion yen

Expansion of the investor base

NAV per unit *314,345 yen

318,471 yen* For further details, please refer to “Four Roadmaps to Stable Growth and Trajectory of Growth” on p. 41.
※ FP= fiscal period; the same shall apply hereafterContinuous NAV growth6

2. Financial Summary(6th fiscal period: from February 1, 2019 to July 31, 2019)7

2-1. Financial Highlights
End of 6th fiscal period (Actual)

Asset size

Unrealized gain
Occupancy rate

156.7 billion yen
16 properties

Appraisal value *167.6 billion yen
13.8 billion yen
100%

*

*

Balance ofinterest-bearing debt

End of 6th fiscal period (Actual)46.8 billion yen

160
1,600

Debt

167.6

140
1,400
12
properties

120
1,200
100
1,000
80
800
60
600
40
400

9
properties

9
properties

9
properties

10
properties

75.5

78.4

80.8

84.9

IPO
IPO

End
1st
End ofof 1stfiscalperiodfiscal periodEnd
2nd
End ofof 2ndfiscalperiodfiscal period

End of 7th fiscal period(Forecast)End
4th
End ofof 4thfiscalperiodfiscal period

LTV

112.1

End
5th
End ofof 5thfiscalperiodfiscal periodEnd
6th
End ofof 6thfiscalperiodfiscal period

29.1%

24.5%

27.6%

26.9%

23.9%
21.6%

20%

27.6%

26.8%

28%

29.1%

*

End
3rd
End ofof 3rdfiscalperiodfiscal period

105.1

13
properties

Appraisal value
as of March 15,2016

End of 6th fiscal period (Actual)

LTV ratio

16
properties

16 properties(total amount of acquisition price)

Asset

Appraisal Value (billion yen)

22.5%

第1期末
第2期末
End of 1st
End of 2nd 第3期末End of 3rd 第4期末End of 4th 第5期末End of 5th 第6期末End of 6th 第7期末End of 7th 第8期末End of 8th
fiscal period fiscal period fiscal period fiscal period fiscal period fiscal period fiscal
period fiscal
period(予想)(参考)(Forecast) (Reference)

Distribution per Unit (yen)Distribution per unit*

6th fiscal period (Actual)

7,000

6,496 yen

6,500

7th fiscal period (Forecast)

6,541 yen

EquityNAV per unit*

End of 6th fiscal period (Actual)

318,471 yen

6,496

6,000

6,346

6,105
5,832

5,500
5,000

6,541

5,563
5,198

5,346

4,500
4,000

第1期
第2期
第3期
第4期
第5期
第6期
第7期
End
of 1stEndof 2ndEndof 3rdEndof 4thEndof 5thEnd of 6th
End of 7th 第8期
End of 8th
fiscal period fiscal period fiscal period fiscal period fiscal period fiscal period fiscal
period fiscal
period(予想)(参考)(Forecast) (Reference)* For further details, please refer to “Financial Highlights” on p. 41.

8

2-2. 6th Fiscal Period (Ended July 2019) P/L
5th period
Actual(a)

6th period
Forecast(Mar. 15, 2019)

6th period
Actual(b)

Difference(b)-(a)Operating revenue

3,280

4,958

4,969

1,688

Operating expenses

1,720

2,690

2,650

929

772

1,319

1,314

542

1,560

2,267

2,318

758

(Unit: million yen)

Of which, Depreciation(those related to properties only)

Main breakdown of difference

Operating revenue
Increase due to properties acquired in the 6th FP(MFLP Hino (10%), Tsukuba (40%), Inazawa, Atsugi II,
Fukuoka I, MFIP Inzai (80%))+1,541
Increase due to full-period operation of MFLP Tsukuba (60%)+122
Increase in photovoltaic power generation facilities rent revenue(excluding properties acquired in the 6th FP)+31
Decrease in other revenue-6

Operating expenses
Increase due to properties acquired in the 6th FP

Operating income(MFLP Hino (10%), Tsukuba (40%), Inazawa, Atsugi II, Fukuoka I,
MFIP Inzai (80%))+674

Increase due to full-period operation of MFLP Tsukuba (60%)+41(excluding fixed asset tax and city planning tax)

Non-operating income

36

-

3

-33

Expensing of fixed asset tax and city planning tax for properties
acquired in the 4th and 5th FPs(MFLP Hiratsuka, Hino (15%), Komaki (60%), Tsukuba (60%))

Non-operating expenses

Increase in asset management fee
Increase in other operating expenses

76

113

118

42

Ordinary income

1,520

2,154

2,203

682

Absence of insurance income

Profit (Net income)

1,519

2,153

2,202

682

Non-operating expenses

+76
+129
+9

Non-operating income

Distribution per unit (DPU) (yen)

6,105

6,415

6,496

391

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

5,783

5,683

5,811

28

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

322
11.0%

732
21.0%

* For further details, please refer to “Method of calculation of cash distribution based on FFO” on p. 42.

685
19.7%

363
-

-32

Interest expenses+22

Investment unit issuance related expenses+51

Absence of disaster restoration expenses-30<Reference>
Formula for distribution per unit based on FFO *FFO=Profit(Net income)+Source of funds
for distribution

=

① FFO

×

70%

÷

Number ofinvestment units
issued andoutstanding

Distribution
per unit=② Source of funds
for distribution

Depreciation, etc. …①…②9

2-3. 7th Fiscal Period (Ending January 2020) Earnings Forecast
6th period
Actual(a)

7th period
Forecast(b)

Difference(b)-(a)Operating revenue

4,969

5,077

108

Operating expenses

2,650

2,779

129

1,314

1,327

12

2,318

2,298

-20

(Unit: million yen)

Of which, Depreciation(those related to properties only)
Operating income
Non-operating income

3

-

-3

Non-operating expenses

118

82

-35

2,203

2,215

11

Ordinary income<Reference>
8th period
Forecast

Main breakdown of difference

Operating revenue

5,088

Increase due to full-period operation of properties
acquired in the 6th FP (MFLP Hino (10%), Tsukuba (40%),
Inazawa, Atsugi II, Fukuoka I, MFIP Inzai (80%))+142
Decrease in photovoltaic power generation facilities
rent revenue (excluding properties acquired in the 6th FP) -39
Increase in other operating revenue+52,902*
1,331
2,186

Operating expenses
Increase due to full-period operation of properties
acquired in the 6th FP (MFLP Hino (10%), Tsukuba (40%),
Inazawa, Atsugi II, Fukuoka I, MFIP Inzai (80%))+27
Increase in asset management fee+37
Increase in other expenses
+65

0
80
2,106

Non-operating expenses
Profit (Net income)

2,202

2,214

11

Distribution per unit (DPU) (yen)

6,496

6,541

45

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

5,811

5,843

32

685

698

13

19.7%

19.9%

-

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

Absence of investment unit issuance related
expenses

2,105
-32

6,346
5,554
792
* Fixed asset tax and city planning tax forproperties acquired in 6th FP (MFLP Hino
(10%), Tsukuba (40%), Inazawa, Atsugi II,
Fukuoka I, MFIP Inzai (80%)) (159 million yen)
are included.

22.6%

10

3. Management Status of MFLP-REIT
3-1. Management Status Highlights
3-2. Our Portfolio
3-2-1. Location
3-2-2. Quality
3-2-3. Balance

3-3. External Growth3-4. Internal Growth
3-5. Financial Strategy
3-6. Unitholder Relations11

3-1. Management Status Highlights
1. Our Portfolio

2. External Growth
Stable growth utilizing the nationwide high quality portfolio andextensive pipeline of Mitsui Fudosan’s logistics facilities business

Portfolio focusing on location, quality and balance
Focus on Location
Access (time) to nearest train station *1

Access (distance) to nearest
expressway interchange *1

By bus(20-30 minutes)
5.4%

5 km or more
Less than 1 km
5.7%
12.3%

Withinwalking distance(20-25 minutes)
6.1%

Properties defined in “Right offirst look and preferential
negotiation rights agreement” *9 properties 1,000,000 m2* For further details, please refer to Properties defined in “Right of first look and preferential negotiation rights agreement” on p. 41.

3. Internal Growth
3 km or more
but less than
5 km
37.5%

Less than 5 km
94.3%

By bus(20 minutes
or less)
33.7%

Within walking
distance/
Within 20 min.
by busStable management leveraging Mitsui Fudosan Group’s
comprehensive strengths and steady internal growth

94.6%
Many tenants have a relationshipwith Mitsui Fudosan

1 km or more but
less than 3 km
44.5%

Withinwalking distance(20 minutes or less)
54.8%

Focus on Quality
Properties developed by Mitsui
Fudosan *2

Focus on Balance

Financial management with an emphasis on stability

Data center (MFIP)
7.8%

Properties
developed by
Mitsui Fudosan

Rampway
MFLP
27.2%* Occupancy rate on the basis of contracts entered as of September 13, 2019.

4. Financial Strategy

Property type *1

Other
12.7%

100% occupancy rate throughsolution-based asset management *

Box
MFLP
28.1%

End of 6th fiscal period
LTV

Medium- to long-term
stabilized LTV

Average time to maturity(long-term only) *Average interest rate *29.1%

40~50%

5.4 years

0.26%* As of July 31, 2019

87.3%

5. Unitholder Relations
Mitsui
Fudosan
87.3%

Slope MFLP
36.9%

The pie charts above indicate figures excluding MFIP properties (except the pie chart for property type).
*1 Percentages calculated based on acquisition prices are indicated.
*2 Percentages calculated based on total floor area considering quasi co-ownership interest are indicated.

Maximization of unitholder value through establishment of strong
relationship of trust with unitholders
Mitsui Fudosan’s investment in MFLP-REIT(As of July 31, 2019)

7.6%
12

3-2. Our Portfolio [1 of 2]
Stable portfolio with investment focused on MFLPs—leading-edge logistics facilities
developed by Mitsui Fudosan—of relatively young building age
Total acquired assets

Adjusted forecast NOI yield *Average appraisal NOI yield *Average building age *Average occupancy rate *16 properties / 156.7 billion yen

5.2% (after depreciation: 3.5%)

4.6%

4.6 years

100%

Category

Logistics
facilities

Propertyno.

Property nameLocation

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

Adjusted
forecast
NOI yield *(%)

NOI yield *(%)

Appraisal
NOI yield *(%)

Total floor area *1(m2)

Building age *(years)Occupancy
rate *(%)

L-1

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

Ichikawa,
Chiba

15,50017,350

5.0

4.7

4.2

105,019(52,509)

5.7

100

L-2

MFLP Kuki

Kuki,
Saitama

12,50014,000

5.8

5.3

4.7

73,153

5.2

100

L-3

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

Yokohama,
Kanagawa

10,10010,600

5.0

5.0

4.7

100,530(50,265)

10.4

100

L-4

MFLP Yashio

Yashio,Saitama

9,650

10,900

5.3

5.2

4.6

40,728

5.5

100

L-5

MFLP Atsugi

Aiko,
Kanagawa

7,810

8,720

5.7

5.4

4.8

40,942

4.5

100

L-6

MFLP Funabashi Nishiura

Funabashi,
Chiba

6,970

7,740

5.3

5.2

4.7

30,947

4.6

100

L-7

MFLP Kashiwa

Kashiwa,
Chiba

6,300

6,960

5.5

5.2

4.7

31,242

3.8

100

L-8

MFLP Sakai(20% quasi co-ownership interest)

Sakai,
Osaka

4,500

4,880

5.6

5.1

4.7

125,127(25,025)

5.0

100

L-9

MFLP Komaki

Komaki,
Aichi

8,260

8,540

5.1

4.9

4.7

40,597

2.6

100

13

3-2. Our Portfolio [2 of 2]
Category

Location

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

Adjusted
forecast
NOI yield *(%)

NOI yield *(%)

Appraisal
NOI yield *(%)

Total floor area *1(m2)

Building age *(years)Occupancy
rate *
(%)

Hino,
Tokyo

12,533

12,600

4.6

4.3

4.3

205,200(51,300)

3.9

100

Hiratsuka,
Kanagawa

7,027

7,150

4.9

4.7

4.6

33,061

2.8

100

Tsukubamirai,
Ibaraki

9.2

10,100

6.2*2
(5.8)

37,027

8,781

5.8

5.0
25,457

1.5

Inazawa,
Aichi

16,20016,400

5.2

4.8

4.7

72,8832.3

100

Isehara,Kanagawa

13,10013,500

4.7

4.5

4.4

48,976

1.4

100

Kasuya,Fukuoka

5,263

5,400

5.6

5.1

5.0

32,199

2.9

100

-

144,494

154,840

5.2

4.9

4.6

1,043,095(686,318)

4.5

100

MFIP Inzai

Inzai,
Chiba

12,22012,800

5.0

5.0

4.7

40,478

5.5

Not
disclosed

Total or Average-

156,714167,640

5.2

4.9

4.6

1,083,574(726,796)

4.6

100

Propertyno.

Property name

L-10

MFLP Hino(25% quasi co-ownership interest)

L-11

MFLP Hiratsuka

Acquired in 6th FP(10% quasi co-ownership interest)

Acquired in 6th FP(40% quasi co-ownership interest)

L-12
Logistics
facilities

MFLP Tsukuba
Acquired in 6th FP

L-13

MFLP Inazawa

L-14

MFLP Atsugi II

Acquired in 6th FP

Acquired in 6th FP

L-15

MFLP Fukuoka I

Subtotal or Average

Existingbuilding
Annexbuilding

100

Acquired in 6th FP

Industrial realestate(80% quasi co-ownership interest)

I-1* For further details, please refer to “Our Portfolio” on p. 41.
*1: “Total floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*2: The annex building at MFLP Tsukuba qualifies for partial reduction or exemption of fixed asset tax and city planning tax until 2021. The adjusted forecast NOI yield after the end of this tax reduction or exemption treatment is expected to be 5.8%.

14

3-2-1. Location [1]Acquired assets
Rampway MFLP Facilities
Slope MFLP Facilities
Box MFLP Facilities
MFIP Facilities

Properties defined in “Right of firstlook and preferential negotiationrights agreement”
Rampway MFLP Facilities
Slope MFLP Facilities

Box MFLP Facilities

Properties developed by
Mitsui Fudosan
Rampway MFLP Facilities
Slope MFLP Facilities
Box MFLP Facilities
MFIP

Isehara JCT
AtsugiMinami IC

Mitsui Fudosan’s strategic
area

15

3-2-1. Location [2]Geographically diversified portfolio
Location offering excellent access to transportation nodes
Location taking into consideration convenience in terms of commuting to work for employees
Investment area

Greater
Nagoya area

Tokyo
Kyushu area
metropolitan
3.6%
area

76.3%

16.9%

Access (time) to nearest
train station

Access (distance) tonearest expressway interchange
5 km or more
3 km or more but 5.7%
less than 5 km
37.5%

(20-30 minutes)

Within walking
distance

5.4%(20-25 minutes)

By busLess than 1 km
12.3%

6.1%

Shuto
Expressway
Wangan Line

Kansai
area

22.5%

Tokyo
metropolitan
Tokyo-Gaikan
area andExpressway
Kansai area
6.7%

3.1%

Ken-O
Expressway

34.1%

79.5%

Within walking
distance/
Within 20 min.
by busLess than 5 km

94.3%

94.6%

National
Route 16

13.0%

By bus(20 minutes
or less)

33.7%* The pie charts above indicate figures calculated on an acquisition price basis(excluding MFIP properties).

1 km or more but lessthan 3 km
44.5%

Withinwalking distance(20 minutes or less)

54.8%

16

3-2-2. Quality
MFLP-REIT focuses investment in “leading-edge logistics facilities with Mitsui Fudosan quality”
realized by applying Mitsui Fudosan’s know-how as a comprehensive developer
Mitsui Fudosan quality
Basic specifications of leading-edge logistics facilities
High
performance
高機能

Disasterprevention
防災[Column spacing]
At least 10 m
[Effective ceiling height]
At least 5.5 m[Floor load capacity]
At least 1.5 tons/m2

Equipped with• Seismic isolation• Quake-resistance• Emergency
power generation…etc.

Storage space

Large-sized
Largesite
sized site

Effective ceiling heightAt least 5.5 m[Total floor area]
At least 10,000 m2

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

MFLP Sakai＆ Worker

Cafeteria, shops

Emergency power generator

MFLP Sakai

MFLP Kashiwa＆ Tenant

Parcel pickup
lockers

Bicycle rentals

LaLaport
discount tickets＆ Community

Commuter shuttles

Car sharing

BCP measures

ICT LABO＆ Earth
Employees
working
at MFLP

Community space

Adoption of seismic isolation

Promotionof useNeighborhood
storesDiscount
service etc.

Childcare facilities Promotion of use of nearby stores

Solar panels

LED lights* Photos are for illustrative purposes only. An MFLP facility or each portfolio asset is not necessarily equipped with all of the abovementioned standard specifications and features.
Some of the specific examples include also those of properties not held by MFLP-REIT.

17

3-2-3. Balance
Securing growth and stability by building a balanced portfolio through acquisitionof MFLPs developed in consideration of land characteristics and tenant needs
Investment ratio: 80% or more

Investment ratio: 20% or less

Logistics facilities

Industrial real estate

Logistics
needs

Shipping needs

Storage needs

Tenant typeMulti-tenant type

Single tenant type

Rampway MFLP
MFLP Hino
Multi

Slope MFLP
MFLP Atsugi II
Multi

MFLP Fukuoka I
SingleData center, etc.
Mainly long-term BTS type

MFIP

Box MFLP

Investment Ratio
by Property Type *2
Rampway
27.2%

Data center
7.8%
Box
28.1%

(Mitsui Fudosan Industrial Park)

MFIP Inzai

MFLP Tsukuba
Single

BTS

Slope

36.9%
GLP/MFLP
Ichikawa Shiohama
Multi

MFLP Sakai
Multi

MFLP Inazawa
Multi

MFLP Komaki
SingleMFLP Hiratsuka
Other *1

MFLP Funabashi NishiuraSingleMFLP Yashio
Multi

Investment Ratio
by Tenant Type *2
MFLP Kashiwa

BTS Other
7.8% 4.5%

Single

Multi
60.0%
MFLP
Yokohama Daikoku
Multi

MFLP Kuki
Multi

MFLP Atsugi

Single27.7%

Single*1 “Other” refers to a property for which the classification (multi or single) cannot be disclosed in this material as consent for disclosure has notbeen obtained from the lessee.
*2 Figures calculated on an acquisition price basis.

18

3-3. External Growth [1]Stable growth utilizing the growth potential and extensive pipeline of
Mitsui Fudosan’s logistics facilities business
Proposal of
CRE strategies

Various CRE needs of client firms
Re-establishment ofcorporate logistics

Utilization of idle land

Sale ofreal estate, etc.

Global development(Establishment of overseas sites)

Development ofcorporate infrastructure

Further development of
Mitsui Fudosan’s logistics
facilities business

Trimming down of balance sheet(Off-balancing)

Mitsui Fudosan’s major development/operation track record *: 32 facilities 480.0 billion yen 2,700,000 m2 in total floor area
Properties defined in “Right of first look andpreferential negotiation rights agreement” *Properties held by MFLP-REIT

Properties developed/operatedby Mitsui Fudosan
Construction completionin fiscal 2016

Construction completionin fiscal 2020

80%

MFLP
Yokohama Daikoku

MFLP
Funabashi Nishiura

MFLP Komaki
Acquired in 6th FP

MFLP
Sakai

MFLP Ibaraki

Additionally acquired in 6th FP

75%

GLP/MFLP
Ichikawa Shiohama

MFLP Atsugi

MFLP Fukuoka I
Acquired in 6th FP

MFLP Kawaguchi I

MFLP Hino
Acquired in 6th FP

50%

MFLP Prologis Park
Kawagoe

MFLP Hiratsuka II

MFLP Funabashi I

MFLP Osaka I

Construction completionin fiscal 2019

Construction completionin fiscal 2021 or after

MFIP Haneda

Tokyo Rail Gate
EAST

Construction completionin fiscal 2019

Construction completionin fiscal 2021 or after

NEW

MFLP Kawasaki I
MFLP Yashio

MFLP Kashiwa

MFLP Inazawa

Additionally acquired in 6th FP

MFLP Hiroshima I

MFLP Yokohama
KohokuMFLP Funabashi III

Construction completionin fiscal 2019

NEW…

Additionally acquired in 6th FP

MFLP Atsugi II

MFLPTachikawa Tachihi
MFLP Kuki

MFLP Hiratsuka

MFLP Tsukuba

MFIP Inzai

MFLP Funabashi II

Other data centers (2 properties)* For further details, please refer to “Major properties developed/operated by Mitsui Fudosan” and “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 41.

19

3-3. External Growth [2]Building a high-quality portfolio capitalizing on diversification of areas
Kansai area

Tokyo metropolitan area
MFLP Kuki

MFLP Ibaraki

MFLP Tsukuba

Saitama Prefecture
Osaka Prefecture

MFLP Kashiwa
MFLP Osaka I

MFLP Prologis
Park Kawagoe

MFLP Yashio MFIP Inzai
MFLP Kawaguchi I

MFLP Sakai

Tokyo Prefecture

Greater
Nagoya area
MFLP Komaki

Hiroshima area

MFLP Inazawa

MFLP Hiroshima I

Kyushu area MFLP Fukuoka I: Properties held by MFLP-REIT: Properties defined in “Right of first look andpreferential negotiation rights agreement”

MFLP Funabashi Nishiura
MFLP Funabashi II
MFLP Tachikawa Tachihi
MFLP Hino
MFLP Funabashi III
MFLP Funabashi I
Chiba
GLP•MFLP Ichikawa Shiohama

Prefecture

MFLP Rall Gate East
MFIP Haneda

MFLP Kawasaki I
MFLP Atsugi
MFLP Yokohama Kohoku
Kanagawa
MFLP Yokohama Daikoku
Prefecture
MFLP Atsugi II
MFLP Hiratsuka II
MFLP Hiratsuka: Properties developed by Mitsui Fudosan

Properties defined in “Right of first look and preferential negotiation rights agreement” *9 properties 1,000,000 m² (Total floor area)
MFLP-REIT’s asset size
16 properties 720,000 m² (Total floor area) 156.7 billion yen

Further expansion of properties defined in “Right of firstlook and preferential negotiation rights agreement”
Continuous external growth* For further details, please refer to “Properties defined in ‘Right of first look and preferential negotiation rights agreement’” on p. 41

20

3-4. Internal Growth [1]Achieve stable management by leveraging Mitsui Fudosan Group’s platform andclient network
Tenant diversification

Effectively leverage the Mitsui Fudosan Group’s
platform and client network in leasing

Other

Japan Logistic Systems

Suzue Corporation
Lindt

Occupied by many tenants that have a relationshipwith Mitsui Fudosan

MARUBENILOGISTICS

Domestic 3PL②
Domestic 3PL①
Hitachi Transport
System Kanto

Lease
agreement

Tenantdiversification

RakutenNIPPONEXPRESS

E-LogiT
Sagawa Global Logistics

End user

Hitachi Transport
System Metropolitan
Sun Toshi
Tatemono

MISUMI

Owner oflogistics facility

Lease
agreement

Logistics
firm

Kimura Unity

KOKUBU

Logistics
agencyagreement

Daiwa Corporation

Lease agreements

End user

Occupancy rates(3PL operator, etc.)

(%)
100

Can directly approach logistics
firms and end users regardless ofcontract type

Average lease
period *7.0 years

Remaining lease
contract period

Average 3.8 years

98

Averageoccupancy rate

96
94

100%

92
90
Aug. 31, Jan. 31,
2016
2017

Staggering of contract
expiration periods

Fully leverage the Mitsui Fudosan Group’s broad client network

Sep. 13,
2019

32.5%

22.1%
12.3%

Office building
Retail facility businessbusiness
Client network:
Client network:
Approx. 2,300 firms *Approx. 3,000 firms *6.1%

Strong relationships
with leading 3PL
operators* Source: Disclosed financial results materials of Mitsui Fudosan
for the fiscal year ended March 31, 2019

2.8%
7th FP
ending2020/01
*
*

8.6%

7.5%

7.2%

0.7%
8th FP
ending2020/07

9th FP
ending2021/01

10th FP
ending2021/07

11th FP
ending2022/01

12th FP
ending2022/07

13th FP
ending2023/01

14th FP
ending2023/07

The graphs and tables above show figures based on contracted leased areas stated in lease agreements concluded as of
September 13, 2019. Tenant diversification excludes MFIP.
For details of calculation of “Average lease period,” please refer to “Calculation of average lease period” on p. 42.

15th FP or
after

21

3-4. Internal Growth [2]
Steady internal growth through evolution of solutions-based asset management andmaintaining relationships with tenants over the medium to long term
Key points of asset management plans
Challenges facing logistics firms
Labor shortage

Addressing
BCP, etc.

Improving
the efficiency
of operations

Strengthening of proposal capability for specialized solutions
responding to the needs from tenant customers
MFLP Funabashi I/ICT LABO
Establishment of leading-edge ICTrelated products, etc. for improving
efficiency, labor-saving, etc.
MFLP-REIT mutually provides knowhow to and collaborates withcompanies handling such devices, andis strengthening its proposal capability
as a new solution to tenant companies.

End user
MFLP-REIT
Logistics firm
(3PL operator, etc.)

Anticipation of
future rises indelivery costs

Specific examples ofsolutions-based asset
management by Mitsui
Fudosan GroupEnd user
Responding toautomation

MFLP ICT LABO 2.0(scheduled to be operated from winter 2019)

Scheduled to relocate
to MFLP Funabashi&GATE (shared facility building)for expansion●Consulting service for leading-edge ICT-related
products for improving efficiency, labor-saving, etc.
●Consulting support to help tenant companies secure
staff●Matching of 3PL operators and end users●Establishment of comfortable working environment for
employees

Initiatives for improving the satisfaction of tenant companies andemployees
MFLP-REIT conducts various measures for improving CS based on the feedback after
conducting CS survey. In addition, MFLP-REIT improves employee satisfaction by creating
a comfortable working environment and contributes to the securement of employment.

Policy for future internal growth●Negotiation of rent increase through contract renewal, etc.
●Reduction of utility expenses through revision of supply agreement

Thanks party

CS survey

Unmanned convenience store

22

3-5. Financial Strategy [1]Financial management with an emphasis on stability
MFLP-REIT aims to establish stable banking relationships centered on funding from major domestic financial institutions.
In addition, we plan to engage in debt financing with due consideration of several factors such as lengthening of borrowing periods
and staggering of maturity dates.

Debt financing

Total interest-bearing debt

Average time to maturity(long-term only)

Average interest rate

46.8 billion yen

5.4 years

0.26%

Status of Borrowings
The Chiba Bank 2.1%
Sumitomo Life
Insurance Company 2.1%

Interest-bearing debt maturity ladder

Mitsui Sumitomo Insurance 2.6%
The Yamaguchi Bank 2.6%
Nippon Life
Insurance Company 3.2%

(million yen)

6,000

5,600

5,600

5,500

4,900

5,000

20.3%
4.5%
Development Bank
Total amountof Japan 4.5%

The Norinchukin Bank

4,000

4,000

3,400

2,000 2,000

2,100

1,900

2,000

3,100

3,000 2,800

3,000Mizuho Trust &Banking

900

7th FP
ending2020/1

～
～

1,000
0

Shinkin Central
Bank
12th FP 13th FP
ending ending
2022/7 2023/1

14th FP
ending2023/7

Mizuho Bank

15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP 23rd FP 24th FP 25th FP
ending ending ending ending ending ending ending ending ending ending ending
2024/1 2024/7 2025/1 2025/7 2026/1 2026/7 2027/1 2027/7 2028/1 2028/7 2029/1

End of 7th fiscal period(Forecast)End of 8th FP reference

Medium- to long-term
stabilized level

29.1%
46.8 billion yen

27.6%
42.9billion yen

26.9%
41.3 billion yen

40% to 50% range

8.1%

for all 14 financial
Sumitomo
13.5 Mitsui Banking
institutions%
Corporation
46.8 billion yen

9.6%

26th FP
ending2029/7

MUFG Bank

10.7%
10.0%

Sumitomo Mitsui
Trust Bank

The Bank ofFukuoka

Status of LTV and balance of interest-bearing debt
End of 6th fiscal period(Actual)6.2%

Credit rating assignment
Credit rating agency

Rating details

Remarks

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Rating outlook: Stable* The graphs, tables and rating above are as of July 31, 2019.

23

3-5. Financial Strategy [2]Efficient cash management
Based on the characteristics of logistics facilities, such as the ratio of building value to land value being typically high, MFLP-REIT intends to makecash distributions, including distributions in excess of earnings, on an ongoing basis each fiscal period from a perspective of securing stable
distribution levels while managing cash efficiently.

Diagram of cash distribution based on FFO

Leasingbusiness
expenses,
SG&A, etc.

Key points of cash distribution in excess of earnings
Level of distribution

Pay distributions
based on a threshold ofapprox. 70% of FFO

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

FFO

Securing long-term building maintenance funds
Rentalrevenue

Depreciation

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

Distributions
in excessof earnings

Profit *(Net Income)Distributionsof earnings

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

Securing financial stability
Distributions in excess of earnings will not be made if appraisal LTV ratio * exceeds 60%
for each operating period.

* Appraisal LTV ratio =Interest-bearing debt ÷ (Total assets - Book value of portfolio real estate, etc. + Appraisal value)24

3-6. Unitholder Relations
Maximization of unitholder value through establishment of strong relationship oftrust with unitholders
Asset management fee structure consistent with the interests of unitholders
Our aim is to align the interests of the Asset Manager with those of the 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 management fees) × Pre-tax EPU(before deduction of asset management fees) × 0.001% (maximum)

Same-boat investment in MFLP-REIT by Mitsui Fudosan
MFLP-REIT receives 7.6% investment in capital from Mitsui Fudosan. (As of July 31, 2019)
Receiving certain investment in capital leads to alignment of the interests of MFLP-REIT’s unitholders and Mitsui Fudosan and asset management that
pursues mutually greater interests.

7.6%

25

4. Market Overview

264-1. Market Overview [1]Supply-demand balance and vacancy rate [1 of 2]
Greater Tokyo metropolitan area

: Vacancy rate 0–5%

: Submarket areas: New demand in 2018 and the first half of 2019 (January-June): Vacancy rate 5–10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–= 100 thousand m2

Forecast(thousand m2): New supply in 2018 and the first half of 2019 (January-June)* As of June 30, 2019

15%

2,500

13%
2,000

11%

Tohoku/Ken-O
Expwy area

9%

1,500

7%
1,000

5%
3%

500

National Route16 area

Kan-Etsu/Ken-O
Expwy area

1%
0

-1%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (year)
Tokyo-Gaikan
Expwy area

Narita area

(thousand m2)

6%

900

Hachioji area

4%

600

Chiba inland area

1.8%
2%

300
0.4%

0%

0
Q3

Q4

Q1

Q2

Q4

Net
absorption

Q1
Q1
1-3月2

Q2
Q2
4-6月2

Vacancyrate

Kanagawa
inland area
Greater Tokyobay area

2019

2018

2017

New
supplyQ3

Vacancy rate
(Completionover 1 year)* Source: CBRE K.K. (including forecast figures), as of June 30, 2019
* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000 m2 or more.

27

4-1. Market Overview [1]New supply

New demand

Supply-demand balance and vacancy rate [2 of 2]
Greater Nagoya area

Greater Osaka area
Forecast(thousand m2)
2,000
1,500

10%

1,000

2,000

15%

1,500

5%

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

10%(thousand m2)

5%0%2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (year)(thousand m2)

750

18%

500

750

250

14%

14%
12%

500

0

Q3

Q4

Q1

2017

Q2

Q3

Q42
Q4

Q12
Q1

5.4%
250

6%
4%

2%

2%

Q22
Q4

0

0%

Q3

Q4

2017

2019

2018

10%

5%

100
0

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

18%

150

16%
14%
12%

100

Q1

Q2

Q3

Q4
Q42

Q1
Q12

10%

8%

4%

0%

300

10%

8%
6%

4.3%

18%
16%

10%

4.6%

15%

(thousand m2)

16.8%

16%

12%

400

200

500
0

Forecast(thousand m2)

1,000

500
0

Greater Kyushu area
Forecast(thousand m2)
15%

Vacancy rate
(Completionover 1 year)

Vacancy
rate

8%
50

0.0%

4%
2%
0

0%

Q2
Q22

Q3

Q4

Q1

2017

2019

2018

6%

Q2

2018

Q3

Q4
Q42
Q4

Q1
Q12

Q2
Q22

2019

MFLP Ibaraki
Osakainland area

MFLP Komaki
MFLP Inazawa

Other area

MFLP Fukuoka I

Osaka Prefecture

Osaka bay /Kobe area

Fukuoka
Prefecture

Aichi
Prefecture

MFLP Osaka I
MFLP Sakai: New supply in 2018 and the first half of 2019 (January-June): New demand in 2018 and the first half of 2019 (January-June)= 100 thousand m2: Vacancy rate 0 – less than 5%: Submarket areas: Vacancy rate 5% – less than 10%: Mitsui Fudosan’s
strategic areas: Vacancy rate 10%–

* As of June 30, 201928

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

Future demand for
replacement ofaging properties(million m2)

Logistics facilities
40 years old or older
31.9%

Leading-edge
logistics facilities
4.0%
Highly scarceleading-edge
logistics facilities

600

35%

500

30%
25%

400

20%
300
15%
200

10%

100

5%

0

0%
2004

Logistics facilities
less than 40 years
old 64.1%

2006

2007

2008

2009

(As of December 2017)

2011

2012

2013

2014

2015

2016

2017 (year)

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

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

Share of logistics facilities
築40年以上のシェア

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

less than 40 years old

40 years old or older

facilities* Estimates by CBRE K.K. based on “Building Starts” (Ministry of Land, Infrastructure, Transport and Tourism) and“Summary Report on Prices, etc. of Fixed Assets” (Ministry of Internal Affairs and Communications).
For details, please refer to “About analysis of Japan’s logistics facilities stock” on p. 42 of this presentation material.

Tenants / End users of logistics facilities

Over 40 years old

Manufacturing

Other

Other

4%

8%

Logistics

5%

3%

20,000

Manufacturing

Wholesale27%

9%15,000Share bytenantbusiness type10,000Share byend userbusiness type

Retail40%

Retail

5,000

13%
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

0

2010

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

Long-term data on construction starts of logistics facilities(nationwide)(thousand m2)

2005

Source: CBRE K.K.

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

Logistics

Wholesale

71%

20%

Source: CBRE K.K.
* Figures are rounded to the whole number.
* The survey is of rental logistics facilities that are held by real estate investment companies, real estate development
companies, etc. and have total floor area of 5,000 m2 or more as of the end of December 2018.

29

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

Broader demand for leading-edge logistics facilities
Attracting delivery bases of retail stores(convenience stores/drug stores)

3PL market with stable growth

Data center market with significant growth(in Japan)(100 million yen)
35,000Net sales(100 million yen)

Conventional

3.0

Manufacturer

trillion yen

Expansion of the data center market

Store

Wholesaler

2.7

30,000

trillion yen

30,00025,000Consolidation of scattered logistics bases
into a delivery center
25,00020,000After
consolidation

20,00015,000Store

Delivery center

Manufacturer

10,00015,0005,000

Integrating logistics bases of manufacturers
10,0002010 2011 2012 2013 2014 2015 2016 2017 2018
(year)

0

Conventional
Source: Monthly Logistics Business(September 2019)

Warehouse Transport
for parts

Expanding e-commerce market scale

Consolidation of separately located warehousefor parts, assembly plant and warehousefor end products into one base

Scale of E-commerce market
E-commerce ratio

180,000

2017(Estimated)

Transport Warehouse for Transport

end products

MFLP

Retail stores /Consumers

18.0(100 million yen)
210,000

After
consolidation

Assembly plant

Source: “Comprehensive Survey of Data Center Business Market 2018:
Vol. 1 Market Edition” by Fuji Chimera Research Institute, Inc.
(February 21, 2018)

Expanding cloud services market (in Japan)(100 million yen)
60,0004.9

Use as a mixed-use logistics facility

6.2%

trillion yen

50,000

Leading-edge logistics facility

640,000150,000
4

30,000Warehouse

120,000

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

2
90,00060,000(year)

Transport(%)

trillion yen 8

2022(Forecast)02010 2011 2012 2013 2014 2015 2016 2017 2018 (year)

Assembly andprocessing

Research anddevelopment

Office10,0000

Showroom

2017(Estimated)

Source: “E-Commerce Market Survey” by the Ministry of Economy, Trade andIndustry (Announced on May 16, 2019)* Amounts and percentages indicate the scale of B to C market in the e-commercemarket. The target of the calculation of e-commerce ratio is limited to the sales
field.

20,000

Product inspection

Inspection, maintenanceand repair

Photographic
studioetc…
Call center(year)
2021(Forecast)

Source: “Reality and Future Prospective of Cloud Computing
2018: Vol.1 Users’ Questionnaire Analysis and CloudMarket Edition” by Fuji Chimera Research Institute, Inc.
(February 28, 2018)30

5. Appendix

31

Statement of Income and Balance Sheet
Statement of income

Balance sheet(Unit: million yen)

(Unit: million yen)

Item

Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses
Expenses related to rent business5th fiscal period

6th fiscal period(ended Jan. 31, 2019)(ended Jul. 31, 2019)

ActualActual

3,280
3,135
145

1,720
1,338

Asset management fee

310

Asset custody and administrative service fees

20

Directors’ compensations

5

Other operating expenses

46

Operating income
Non-operating income
Non-operating expenses
Interest expenses
Amortization of investment unit issuance
expenses
Offering costs associated with issuanceof investment units
Other
Ordinary income
Profit before income taxes
Income taxes
Profit (Net Income)Unappropriated retained earnings

1,560
36
76

4,969
4,766
202
2,650
2,134
439
22
5
48
2,318

3
118

36

59

‐

18

‐

32

40

8

1,520
1,520
0
1,519
1,519

2,203
2,203
0
2,202
2,202

Item

5th fiscal period

6th fiscal period(ended Jan. 31, 2019)(ended Jul. 31, 2019)

ActualActualCurrent assets
Cash and deposits
Cash and deposits in trust
Consumption taxes receivable
Other current assets
Non-current assets
Property, plant and equipment
Other non-current assets
Total assets

3,129
936
2,035
99
57
101,462
101,395
66
104,591

6,745
1,085
3,074
2,261
324
153,842
153,76181
160,681

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

2,922
205
1,700
444
0
570
0
28,27826,300

7,081
228
5,500
502
0
849
0
44,31541,300

1,978

3,015

31,20173,39072,120-249
71,8701,519
73,390104,591

51,397109,284
107,416-334
107,0812,202
109,284
160,68132

Individual Property Income Statement for 6th Fiscal Period(Unit: million yen)
GLP/MFLP
Ichikawa
Shiohama

MFLP
Kuki

MFLP
Yokohama
Daikoku

MFLP
YashioMFLP
Atsugi

MFLP
Funabashi
Nishiura

MFLP
Kashiwa

MFLP
Sakai

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days

Lease businessrevenue

456

444

331

132

354

4,766

Other
lease businessrevenue

32

34

19

32

25

202

489

479

351

165

379

4,969

Outsourcing
expenses

35

33

28

Utility expenses

17

25

15

4

20

136

Repair expenses

2

11

17

2

1

45

Property-related
taxes

38

42

39

16

23

332

Other expenses

1

2

1

0

1

19

95

115

102

-

-

-

-

43

-

75

-

-

-

-

-

-

819

80

107

85

62

63

50

50

43

88

87

51

89

181

113

52

107

1,314

Operating income (loss)
from real estate leasing

313

256

163

196

162

136

123

77

124

216

121

170

283

212

57

218

2,834

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

393

364

248

259

226

187

173

121

213

304

172

259

464

326

110

325

4,149

Number of days ofasset management

Operatingrevenuefromreal estateleasing

Total

Operatingexpensesfromreal estateleasing

Total

Depreciation*

MFLP
Komaki

MFLP
Hiratsuka

MFLP
Tsukuba

MFLP
Inazawa

181 days 181 days *1 181 days 181 days *2 178 days

18
Not
Not
Not
Not
disclosed * disclosed * disclosed * disclosed *

MFLP
Hino

MFLP
Atsugi II

MFLP
Fukuoka I

MFIP
Inzai

Portfolio
total

178 days 178 days *3 181 days *4

28

-

284
Not
Not
Not
Not
Not
Not
disclosed * disclosed * disclosed * disclosed * disclosed * disclosed *Notdisclosed *Not disclosed, because consent has not been obtained from the lessee.

*1 Acquisition of the 10% quasi co-ownership interest of MFLP Hino was made on February 4, 2019, but the acquisition of the 15% was made in February 2018. Therefore, the number of days of asset management is indicated as 181 days.
*2 Acquisition of the 40% quasi co-ownership interest of MFLP Tsukuba was made on March 1, 2019, but the acquisition of the 60% was made in December 2018. Therefore, the number of days of asset management is indicated as 181 days
*3 Acquisition of the 19% quasi co-ownership interest of MFLP Fukuoka I was made on April 5, 2019, but the acquisition of the 81% was made on February 4, 2019. Therefore, the number of days of asset management is indicated as 178 days.
*4 Acquisition of the 80% quasi co-ownership interest of MFIP Inzai was made on February 4, 2019, but the acquisition of the 20% was made in August 2016. Therefore, the number of days of asset management is indicated as 181 days.

33

Appraisal Summary for the End of 6th Fiscal Period(Unit: million yen)
Acquisitiondate

Acquisition
priceBook value at
end of 6th
fiscal period

End of
6th fiscal period(End of Jul. 2019) (b)End of
5th fiscal period(End of Jan. 2019 (a)Appraisal
value

CR

*1

Appraisal
value

CR

*1

Change(b)-(a)Main factors of change

Appraisal
value

CR

*1

CR

*1

Other

GLP/MFLP Ichikawa
Shiohama (50%)

2016/0915,50015,127

17,2504.1%

17,350

4.1%

100

0.0

-

〇

MFLP Kuki

2016/08

12,50011,945

13,7004.7%

14,000

4.6%

300

-0.1

〇

-

MFLP Yokohama Daikoku(50%)

2016/08

10,1009,780

10,500

4.6%

10,600

4.5%

100

-0.1

〇

-

MFLP Yashio

2016/08

9,650

9,347

10,900

4.4%

10,900

4.4%

0

0.0

-

-

MFLP Atsugi

2016/08

7,810

7,489

8,700

4.6%

8,720

4.6%

20

0.0

-

〇

MFLP Funabashi Nishiura

2016/08

6,970

6,706

7,680

4.5%

7,740

4.5%

60

0.0

-

〇

MFLP Kashiwa

2016/08

6,300

6,050

6,900

4.6%

6,960

4.6%

60

0.0

-

〇

MFLP Sakai (20%)

2016/08

4,500

4,290

4,880

4.7%

4,880

4.6%

0

-0.1

〇

-

MFLP Komaki

2017/08 *3

8,260

8,042

8,530

4.6%

8,540

4.6%

10

0.0

-

〇

MFLP Hino (25%)

2018/02

7,570

4.2%

12,533

12,46812,600

4.2%

-10

0.0

-

(5,040)(4.2%)

〇

7,090

4.5%

7,150

4.5%

60

0.0

-

〇

6,000

4.9%
10,100

4.9%

100

0.0

-

(4,000)(4.9%)〇MFLP Hino (10%)

2019/02

MFLP Hiratsuka

2018/03

MFLP Tsukuba (60%)

2018/12

7,027

6,947

8,781

8,887

MFLP Tsukuba (40%)

2019/03

MFLP Inazawa

2019/02

16,20016,176(16,300)(4.6%)

16,400

4.6%

100

0.0

-

〇

MFLP Atsugi II

2019/02

13,10013,100(13,200)(4.3%)

13,500

4.3%

300

0.0

-

〇

MFLP Fukuoka I

2019/02 *3

5,263

5,265

(5,280)(4.9%)

5,400

4.8%

120

-0.1

〇

-

MFIP Inzai (20%)

2016/08

2,440

4.8%

12,22012,13312,800(10,360)*4(4.7%)*4

4.6%

0

0.0

-

-

112,140

4.5%
167,640

4.5%

1,320

0.0

-

-

(166,320)(4.5%)

MFIP Inzai (80%)

2019/02

Total/average-

156,714

153,761

Amount of difference = Unrealized gain
13,878 million yen*1 CR = Capitalization rate based on direct capitalization method (NCF basis). The average indicates a weighted average based on the appraisal value.
*2 Appraisal value and CR with November 30, 2018 as the appraisal date are indicated in parenthesis for properties acquired in the 6th FP (MFLP Hino 10%, Tsukuba 40%, Inazawa, Atsugi II, Fukuoka I, MFIP Inzai 80%).
In the total/average column, the appraisal value which is the sum of the figures at the end of the 5th FP and the said figures, and the weighted average CR based on the appraisal value are indicated in parenthesis.
*3 The acquisition periods of “MFLP Komaki” and “MFLP Fukuoka I” are divided into two periods, but the initial acquisition dates (Komaki: upon acquisition of 40% quasi co-ownership interest, Fukuoka I: upon acquisition of 81% quasi co-ownership interest) areindicated.
*4 Concerning value increased (390 million yen) along with owning 100%, the entire amount including that for the 20% quasi co-ownership interest is added. The CR of the appraisal value for the entire property (100%) is 4.6%.
*5 Concerning the appraisal value and CR at the end of the 5th FP including the portion acquired in the 6th FP for MFLP Hino, Tsukuba and MFIP Inzai (10%, 40% and 80% quasi co-ownership interest, respectively), the figures compared with the appraisal
value and CR at the end of the 6th FP are indicated.

34

Initiatives for ESG– Environmental Principles and Initiatives for Environment (Environment)
Environmental policies of Mitsui Fudosan Group
Mitsui Fudosan Group seeks reduction of environmental load, diversified
collaboration/cooperation with various entities, improvement of peace of mind,
safety and comfort as well as securement of sustainability.

Cooperation
A wide range ofcollaboration/cooperation
with various entities

Load

Quality

reduction

improvement

Reduction ofenvironmental
load

Improvement ofpeace of mind
and safety andsecurement ofsustainability

 Co-existence with local communities
 Proactive action towards tenants andowners Collaboration/cooperation with design,
construction, energy, manufacturingfirms, etc.
 Further collaboration/cooperation withlocal communities, government, andresearch institutes including universities
 Improvement of peace of mind andsafety Conservation and utilization ofnatural environment (conservationof biodiversity)
 Conservation and utilization oflandscape and townscape Improvement of health and comfort
 Reduction of CO2(including supporting use of low-carbon
transportation) Aquatic conservation
 Reduction of harmful substances Resource saving and reduction ofwaste material

Eco-friendly green buildings
MFLP-REIT has a track record of acquiring CASBEE and DBJ
Green Building Certification for the following properties.
Furthermore, MFLP Sakai has received the Osaka Ecofriendly Construction Award. As such, MFLP-REIT proactively
incorporates environmentally conscious green buildings.
Property nameEvaluation/Award history, etc.

GLP/MFLP Ichikawa
Shiohama

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

MFLP Kuki

CASBEE (New construction) Rank A

MFLP Yokohama Daikoku

DBJ Green Building Certification 5 Stars

MFLP Yashio

CASBEE (New construction) Rank A

MFLP Atsugi

CASBEE Kanagawa Rank A *DBJ Green Building Certification 4 Stars

MFLP Funabashi Nishiura

CASBEE (New construction) Rank A

MFLP Kashiwa

CASBEE (New construction) Rank A

MFLP Sakai

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

MFLP Komaki

CASBEE Aichi Rank A *MFLP Hiratsuka

CASBEE Kanagawa Rank A *MFLP Inazawa

CASBEE Aichi Rank A *MFLP Atsugi II

CASBEE Kanagawa Rank A ** CASBEE Kanagawa and Aichi are not certified by a third-party but an assessment based on self-reporting.

Initiatives for reducing environmental load
MFLP-REIT has put forth efforts on
reducing CO2 emissions throughenergy saving while promoting efficientuse of energy at its portfolio assets byintroducing LED lights, installing solar
panels on the roof and such.

LED lights

Solar panels

Power generation facilities using solar panel (2018 Actual)
Annual power generation
Number of properties established
10 properties

MFLP Atsugi II

16 GWh*MFLP Inazawa* For further details, please refer to “Annual Power Generation by Solar Panel” on p.42.

35

Initiatives for ESG– Initiatives for Society (Social)
Utilizing the know-how of Mitsui Fudosan, the sponsor, the properties owned by MFLP-REIT promote initiatives to offer healthy, pleasant and safe environment
by giving consideration to stakeholders such as occupying tenants, facility users, surrounding environment and local communities.

Provision of acomfortableworkingenvironment

Cafeteria

Initiatives forsecurity andsafetyUnmanned convenience store

Dining hall

Seasonal decoration

Terrace

Initiatives for
local
communities

Creation of community space

Adoption of seismic isolation

Emergency power generator

Remote monitoring using ITVStockpiles for disaster prevention

Commuter shuttles

ICT LABO

Mitsui Fudosan SC discount service
for employees

Issuance of quarterly magazine

Thanks party

Communication space

Personnel training

Work-life balance andbenefit program

BCP measures

Initiatives fortenants
Implemented beautification activities(cleaning)

Emergency temporary toilets

Childcare facilities

Designated as a tsunami evacuationbuilding

Initiatives for employees

Asset Management Company:
Mitsui Fudosan Logistics REIT Management Co., Ltd.

MFLP-REIT focuses on the enhancement of the motivation of employees and the creation of abetter working environment for conducting creative work efficiently. In addition, MFLP-REIT
intends to enrich work-life balance and benefit program as part of the creation of an environment
where employees can choose from various work styles and continue to work safely in addition tovarious training and corporate subsidy systems aiming to let employees maintain and improvetheir expertise in fields such as estate and finance.

Introduction of flexible
working hour system
Defined contribution (DC)pension system
Provision of cafeteria plan

* Photos are for illustrative purposes only. An MFLP facility or each portfolio asset is not necessarily equipped with all of the abovementioned standard specifications and features.
Some of the specific examples include also those of properties not held by MFLP-REIT.

36

Initiatives for ESG– Initiatives for Governance with Consideration for Unitholders’ Interests (Governance)
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 and interests of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

Rules concerning conflicts of interestin asset management
The acquisition and transfer of assets by MFLP-REIT from related partiesare decided by the Asset Management Company via a transparent
decision-making process.

Asset management with emphasis placed onrelationship of trust with unitholders
Asset management fee structure
consistent with the interests of unitholders
The aim is to keep the interests of MFLP-REIT’s unitholders consistent with
the interests of the Asset Management Company.
Asset management fee I

Total assets × 0.1% (maximum)

Asset management fee II

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

Asset management fee III

Pre-tax earnings (before deduction of asset
management fees) × Pre-tax EPU (before
deduction of asset management fees) × 0.001%(maximum)*2

Same-boat investment in MFLP-REIT by Mitsui Fudosan
MFLP-REIT receives 7.6% investment in capital from Mitsui Fudosan.
(As of July 31, 2019)
Receiving certain investment in capital leads to alignment of the interests of
MFLP-REIT’s unitholders and Mitsui Fudosan and asset management that
pursues mutually greater interests.

Timely and proper information disclosure andsecurement of transparency*1: The above chart shows the decision-making flow when a transaction involves a related
party, which requires the approval of MFLP-REIT’s Board of Directors under Article 2012 of the Act on Investment Trusts and Investment Corporations.
*2: If a transaction prescribed in Article 201-2 of the Act on Investment Trusts andInvestment Corporations falls under the criteria for insignificance defined therein, theapproval of MFLP-REIT’s Board of Directors shall be omitted.

MFLP-REIT strives to make timely and proper disclosure of informationnecessary for unitholders to make investment decisions. Upon disclosure,
MFLP-REIT promotes prompt and transparent information disclosure tosecure fairness and equality, and also promotes disclosure of not only
financial information but also non-financial information concerning ESG.

37

Investment Unit Price Trends/Status of Unitholders
Investment unit price firm since IPO
Investment unit price (closing price)
TSE REIT Index (indexed)(yen)
390,000
370,000
350,000
330,000
310,000
290,000

IPO issue price: 270,000 yen

270,000
250,000
230,000
2016/7/31

2016/08/02

2016/10/31

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

Status of unitholders at end of 6th fiscal period(end of July 2019)
Major unitholders

Number of unitholders and number of investment units
by type of unitholder
Number ofunitholders% of total

Number ofinvestment units

Number of investment
units% of total% of total

Individuals/Other

7,602

93.6%

25,931

6.8%

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

68,475

18.1%

Financial
institutions

149

1.8%

211,041

55.7%

Japan Trustee Services Bank, Ltd. (trust account)

46,021

12.1%

Other Japanese
corporations

184

2.3%

35,5089.4%

Mitsui Fudosan Co., Ltd.

28,9007.6%

13,678

3.6%

12,181

3.2%

169,255

44.7%

Non-Japanese

167

2.1%

96,53025.5%

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

Securities
companies

20

0.2%

9,990

2.6%

JP MORGAN CHASE BANK 385632

Total

8,122

100.0%

379,000

100.0%

Total

38

Mitsui Fudosan’s Major Development/Operation Track Record *Fiscal year of*1completion

FY2013

FY2014FY2016

Location

FY2020
FY2021
or after
TBD*2

Properties defined in “Right of firstlook and preferential negotiationrights agreement” *Yokohama, Kanagawa

100,530 m2● (50%)－

GLP/MFLP Ichikawa Shiohama

Ichikawa, Chiba

105,019 m2● (50%)－MFLP Yashio

Yashio, Saitama

40,728 m2●－

MFLP Kuki

Kuki, Saitama

73,153 m2●－

MFLP Sakai

Sakai, Osaka

125,127 m2● (20%)● (80%)MFLP Funabashi Nishiura

Funabashi, Chiba

30,947 m2●－

MFLP Atsugi

Aiko, Kanagawa

40,942 m2●－

MFIP Inzai

Inzai, Chiba

40,478 m2●－

MFLP Hino

Hino, Tokyo

205,200 m2● (25%)● (75%)MFLP Kashiwa

Kashiwa, Chiba

31,242 m2●－

MFLP Funabashi I

Funabashi, Chiba

197,746 m2－－

MFLP Fukuoka I

Kasuya, Fukuoka

32,199 m2●－

MFLP Hiratsuka

Hiratsuka, Kanagawa

33,061 m2●－

MFLP Komaki

Komaki, Aichi

40,597 m2●－

MFLP Inazawa

Inazawa, Aichi

72,883 m2●－

MFLP Ibaraki

Ibaraki, Osaka

230,435 m2－●

Existing building:
37,027 m2
Annex building:
25,457 m2●－

MFLP Tsukuba

Tsukubamirai, Ibaraki

MFLP Atsugi II

Isehara, Kanagawa

48,976 m2●－

MFLP Prologis Park Kawagoe

Kawagoe, Saitama

131,272 m2－● (50%)

MFIP Haneda

Ota, Tokyo

81,030 m2－－

MFLP Hiroshima I

Hiroshima, Hiroshima

71,861 m2－●

MFLP Funabashi II

Funabashi, Chiba

228,884 m2－●

MFLP Kawaguchi I

Kawaguchi, Saitama

54,791 m2－●

MFLP Hiratsuka II

Hiratsuka, Kanagawa

50,027 m2

MFLP Yokohama Kohoku

Yokohama, Kanagawa

50,665 m2－●

MFLP Kawasaki I

Kawasaki, Kanagawa

A: Approx.34,000 m2
B: Approx.16,000 m2－－

Propertydeveloped/operatedby Mitsui Fudosan

Presentation of list of
properties defined in“Right of first look andpreferential negotiationrights agreement”

Prioritized provision of
information upon sale

Preferential negotiation
period●MFLP Tachikawa Tachihi

Tachikawa, Tokyo

Approx. 67,000 m2－－

MFLP Osaka I

Osaka, Osaka

Approx. 48,300 m2－－

Tokyo Rail Gate EAST

Shinagawa, Tokyo

Approx. 161,400 m2－－

MFLP Funabashi III

Funabashi, Chiba

Approx. 270,000 m2－－(Tentative) Ichikawa Shiohama Logistics
Facility Development Project *3

Ichikawa, Chiba

Approx. 183,800 m2－－

Other data centers (2 properties)

－

－

－

－

Flow regarding provision ofright of first look information* For further details, please refer to “Major properties developed/operated by Mitsui Fudosan” and “Property defined in “Right of first look and preferential negotiation rights agreement”” on p. 41.
*1: In the case of MFLP Yokohama Daikoku, it is the fiscal year in which the property began to be under its operation. The fiscal year of completion of the property is fiscal 2009.
The fiscal year of completion of the existing building of MFLP Tsukuba is fiscal 2010.
*2: The percentage figure in parentheses is the percentage of quasi co-ownership interest in the portfolio asset.
*3: Based on materials released by Mitsui Fudosan on August 6, 2018.

Acquisition of property
by MFLP-REIT

MFLP-REIT

FY2019Acquisition by MFLP-REIT

MFLP Yokohama Daikoku

FY2017FY2018

Total floor area

Mitsui Fudosan

FY2015

Propertydeveloped/operated

39

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. Information presented on
this document should not be interpreted, unless otherwise specified, as constituting disclosure documents or asset management report required under Financial
Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
Concerning the information provided in this document, although MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. make every effort toprovide 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
no obligation 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.
The document is prepared solely for use by residents of Japan and is not intended for use by non-residents of Japan.

40Notes on Matters Stated in this Document＊Unless otherwise specified, figures indicated in whole number 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.
[Major properties developed/operated by Mitsui Fudosan]
Descriptions are based on materials released on May 21, 2018 by Mitsui Fudosan. Indicates the area recorded in the property registry or the certificate of completion for completed properties, the area stated on the building confirmation certificate for uncompleted
properties that are properties defined in “Right of first look and preferential negotiation rights agreement,” and the area stated in the material published by Mitsui Fudosan for all other properties. The area for uncompleted properties is the planned area and issubject to change.
“32 facilities 480.0 billion yen 2,700,000 m2” includes properties under development or scheduled to be developed as of the date and their (planned) investment amounts. 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. Nordoes MFLP-REIT guarantee or promise that the plans be materialized. “Tokyo Rail Gate EAST” is included in “32 facilities 480.0 billion yen 2,700,000 m2” in terms of the number of facilities and total floor area, but not in term of the amount. Mitsui Fudosan has noplans to acquire the property as of the date of this document.
[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 theright of first look and preferential negotiation rights agreement executed between the Asset Management Company and Mitsui Fudosan upon the Asset Management Company managing MFLP-REIT’s assets. “Real estate subject to provision of information”
refers to, among real estate, etc. held by Mitsui Fudosan or a real estate fund which accepted investment or monetary contribution of Mitsui Fudosan, those which are judged to have the possibility to be sold to MFLP-REIT at Mitsui Fudosan’s discretion.
The (number of) subject properties and ratio/total floor area indicate figures after considering co-ownership interest (or quasi co-ownership interest).
[Four Roadmaps to Stable Growth and Trajectory of Growth] / [Steady Implementation of Four Roadmaps] / [Financial Highlights] / [Our Portfolio]“LTV”
LTV = Balance of interest-bearing debt ÷ Total assets“Distribution per unit (DPU)“
Includes distribution in excess of earnings. (Number of investment units issued and outstanding: 262,774 units at the end of 5th fiscal period / 379,000 units at the end of 6th and 7th fiscal periods)“Market cap”
FP ended July 2018 (End of 4th FP): Closing price of the investment unit as of the end of the FP ended July 2018 (322,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended July 2018 (262,774 units)
FP ended January 2019 (End of 5th FP): Closing price of the investment unit as of the end of the FP ended January 2019 (345,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended January 2019
(262,774 units)
FP ended July 2019 (End of 6th FP): Closing price of the investment unit as of the end of the FP ended July 2019 (393,500 yen) x the number of MFLP-REIT’s investment units issued and outstanding as of the end of the FP ended July 2019 (379,000 units)“Total floor area"
Figures based on the record on the register, rounding down to the nearest whole number.
“Appraisal value”
Appraisal value indicates figures corresponding to the quasi co-ownership interest ratio of each property. Appraisal values with July 31, 2019 (end of 6th FP) as the appraisal date are indicated.
“Adjusted forecast NOI yield”
Figure arrived at when the NOI assumed in the earnings forecast for the 7th and 8th fiscal periods are adjusted for the amount of fixed asset tax and city planning tax not to be expensed in the 7th fiscal period (MFLP Hino 10%, Tsukuba 40%, Inazawa,
Atsugi II, Fukuoka I, MFIP Inzai 80%) as well as special factors, and divided by total acquisition price.
Subtotal (average) and total (average) for each category indicate the weighted average based on acquisition price.
“NOI yield”
Ratio of net operating income under direct capitalization method stated in real estate appraisal report (“Appraisal NOI”) to acquisition price. “Average NOI yield” and subtotal (average) and total (average) for each category indicate the weighted averagebased on acquisition price.
“Appraisal NOI yield”
Appraisal NOI as a percentage of appraisal value. “Average appraisal NOI yield” and subtotal (average) and total (average) for each category indicate the weighted average based on the appraisal value.
“Building age”
Number of years from the date of construction of the main building of a property acquired in the register to March 15, 2019 for the building age as of the end of the 5th fiscal period and to September 13, 2019 for the building age as of the end of the 6th fiscal
period.
“Average building age” and subtotal (average) and total (average) indicate the weighted average based on the total floor area, considering the quasi co-ownership interest of each property.
“Top 5 property ratio”
The sum of the acquisition prices of the five largest properties as a percentage of the total acquisition price.
“Top 5 tenant ratio (logistics facilities only)”
The total leased area of top five tenants as a percentage of the total leased area.
“Acquisition capacity”
Amount of debt that can be additionally financed supposing that LTV is raised to 50%. The amount indicated is rounded to the nearest billion yen.
“NAV per unit”
End of FP ended January 2019 (End of 5th FP): (Net assets as of the end of FP ended January 2019 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended January 2019) / Number of investment units issued andoutstanding (262,774 units)
End of FP ended July 2019 (End of 6th FP): (Net assets as of the end of FP ended July 2019 + Unrealized gain on appraisal basis – Total distribution amount) (=NAV as of the end of FP ended July 2019) / Number of investment units issued and outstanding(379,000 units)“Unrealized gain”
Figure obtained by subtracting the period-end book value from appraisal value is indicated.
“Occupancy rate”
Leased area as a percentage of leasable area. Based on concluded agreements as of September 13, 2019.
“P/NAV”
Closing price of MFLP-REIT’s investment unit as of the end of FP ended July 2019 (393,500 yen) ÷ NAV per unit at the end of FP ended July 2019
“P/BPU”
Closing price of MFLP-REIT’s investment unit as of the end of FP ended July 2019 (393,500 yen) ÷ ((Net assets as of the end of FP ended July 2019 – Total distribution amount) ÷ Number of investment units issued and outstanding (379,000 units))(= Net asset value per unit as of the end of FP ended July 2019 = Book-value per unit (BPU) )41

Notes on Matters Stated in this Document[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.
[Calculation of average lease term]"Average lease term" is calculated using the weighted average of the lease terms stated in concluded lease agreements as of September 13, 2019 with leased areas. Concerning the subject lease agreements, when a new lease agreement ("recontract") starting on the day immediately following the expiration date of the respective lease agreement is concluded with the same lessee, lease term is deemed to be from the start of the initial lease agreement to the expiration date of the re-contract,
and used in the calculation as such.
[Annual power generation amount of photovoltaic panels]
Actual power generated between January 2018 and the end of December at 10 properties with photovoltaic panel facilities and owned by MFLP-REIT as of September 13, 2019 is indicated.
The total power generation amount of the entire properties is indicated regardless of ownership ratio held by MFLP-REIT.
[About analysis of Japan's logistics facilities stock](1) The "Analysis of Japan's logistics facilities stock" graph is of estimates by CBRE K.K. based on the Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism's "Building Starts" and the Ministry of Internal Affairs andCommunications' "Summary Report on Prices, etc. of Fixed Assets."(2) In the "Analysis of Japan's logistics facilities stock" graph, "Leading-edge logistics facilities" is the figure of each year's sum total of the gross floor area of leading-edge logistics facilities (refers to rental logistics facilities that have gross floor area ofat least 10,000 m2 and, in principle, ceiling height of at least 5.5 m, floor load capacity of at least 1.5 tons/m2 and column spacing of at least 10 m).
(3) In the "Analysis of Japan's logistics facilities stock" graph, "Estimate for logistics facilities 40 years old or older" is the figure of each year's overall stock estimate (as covered by note 5; the same shall apply hereinafter) minus the sum total of thefloor area of which construction was started within the past 40 years.
(4) "Estimate for logistics facilities less than 40 years old" is the figure of the overall stock estimate minus the floor area of "Estimate for logistics facilities 40 years old or older" and "Leading-edge logistics facilities."(5) The overall stock estimate is the sum total of "Estimate for logistics facilities 40 years old or older," "Estimate for logistics facilities less than 40 years old" and "Leading-edge logistics facilities."(6) In the "Analysis of Japan's logistics facilities stock" graph, "Share of leading-edge logistics facilities" is each fiscal year's "Leading-edge logistics facilities" expressed as a percentage of the overall stock estimate (gross floor area basis).
(7) In the "Analysis of Japan's logistics facilities stock" graph, "Share of logistics facilities 40 years old or older" is each fiscal year's "Estimate for logistics facilities 40 years old or older" expressed as a percentage of the overall stock estimate (grossfloor area basis).
(8) "Gross floor area" is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed to be completed after one year has elapsed from construction start.
Accordingly, gross floor area may not match the floor area on the building confirmation certificate, construction completion drawing or register.

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