1st Fiscal Period
Asset Management Report

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

From: March 4, 2016
To: January 31, 2017

I.
1.

Asset Management Report
Overview of Asset Management(1) Management and other performance highlights of the investment corporation
1st period(From March 4, 2016
to January 31, 2017)

Fiscal period
Operating revenues(millions of yen)

2,383

(millions of yen)

2,383

(millions of yen)

1,075

(millions of yen)801

Operating income(millions of yen)

1,307

Ordinary income(millions of yen)

1,111

Net income(millions of yen)

1,110

Total assets(millions of yen)

81,698(%)―(millions of yen)

59,460(%)―

Interest-bearing debt

(millions of yen)

20,000Unitholders’ capital(millions of yen)

58,350Total number of investment units issued and outstanding(units)224,000

Net assets (Net asset value (NAV)) per unit

(yen)

265,449

Net income per unit (Note 4)

(yen)

9,017

Total amount of distribution(millions of yen)

1,164

(yen)

5,198

Of which: Distribution of earnings per unit

(yen)

4,955

Of which: Distribution in excess of retained earnings per
unit

(yen)

243

Ratio of ordinary income to total assets (Note 5)

(%)

1.5

[Annualized] (Note 6)

(%)

2.9

Return on equity (Note 5)

(%)

1.9

[Annualized] (Note 6)

(%)

3.8

Equity ratio at end of period (Note 5)

(%)

72.8

[Period-on-period change](%)―

Payout ratio (Note 5)

(%)

100.0

(days)

183(properties)

9

Occupancy rate at end of period (Note 8)

(%)

100.0

Depreciation and amortization (Note 9)(millions of yen)

553

Capital expenditures(millions of yen)

2

Net operating income (NOI) from property leasing (Note 5)(millions of yen)

2,135

Funds from operations (FFO) (Note 5)(millions of yen)

1,663

(yen)

7,426

Of which: Real estate leasing business revenues
Operating expenses
Of which: Real estate leasing business expenses[Period-on-period change]
Net assets[Period-on-period change]

Distribution per unit

Other reference information
Number of days of asset management during period (Note 7)
Number of investment properties at end of period

FFO per unit (Note 5)-2-

Ratio of interest-bearing debt to total assets at end of period(LTV ratio) (Note 5)

(%)

24.5

(Note 1) The operating periods of the investment corporation Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”) are six-month periods every year fromFebruary 1 to the last day of July and from August 1 to the last day of January in the following year. However, the first operating period (1stfiscal period) is from MFLP-REIT’s establishment date (March 4, 2016) to the last day of January 2017.
(Note 2) Operating revenues, etc. do not include consumption tax, etc.
(Note 3) Unless otherwise specified, any numerical figures are rounded down to the nearest specified unit and percentage figures are rounded to one
decimal place.
(Note 4) “Net income per unit” is calculated by dividing net income by the daily weighted average number of investment units (123,102 units). In
addition, net income per unit using the daily weighted average number of investment units deeming August 2, 2016, the actual starting date ofasset management, as the beginning of the fiscal period (222,525 units) is 4,988 yen.
(Note 5) The following formulas are used in calculations.
Ratio of ordinary income to total
assetsOrdinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
Total assets at beginning of period for the 1st fiscal period is using
total assets as at the starting date of MFLP-REIT’s actual asset management period (August 2, 2016).

Return on equity

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

Equity ratio at end of period

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

Payout ratio

Payout ratio for the 1st fiscal period is calculated by the following formula due to changes in the number ofinvestment units during the period attributable to conducting capital increase through public offering
during the period (rounded down to one decimal place).
Total amount of distribution (excluding distribution in excess of retained earnings) ÷ Net income × 100

Net operating income (NOI)
from property leasing

Real estate leasing business revenues - Real estate leasing business expenses + Depreciation andamortization

Funds from operations (FFO)

Net income + Depreciation and amortization ± Gain (Loss) on sales of real estate properties

FFO per unit

FFO ÷ Total number of investment units issued and outstanding

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

Interest-bearing debt at end of period ÷ Total assets at end of period × 100(Note 6) For the 1st fiscal period, annualized figures are calculated based on the number of days of actual asset management of 183 days (from August 2,
2016 to January 31, 2017).
(Note 7) The calculation period of the fiscal period ended January 31, 2017 of MFLP-REIT is a period of 334 days from March 4, 2016 to January 31,
2017, but the actual asset management period was a period of 183 days from August 2, 2016.
(Note 8) “Occupancy rate” is leased area of the building expressed as a percentage of leasable area of the building of each real estate in trust on eachlease agreement concluded for each property as at January 31, 2017, rounded to one decimal place.
(Note 9) “Depreciation and amortization” is depreciation and amortization of investment and rental property.

-3-(2) Developments in management of assets in the fiscal period under review① Brief history of the investment corporation
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March 4,2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer with investments in capital of 300 million yen (600 investment units). Registration with the Kanto
Local Finance Bureau of the Ministry of Finance of Japan was completed on March 25, 2016 (Registration No. 114 with the
Director-General of the Kanto Local Finance Bureau). In addition, MFLP-REIT conducted a two-for-one split of investment units
on June 15, 2016 as the effective date.
Later, new investment units were issued through public offering (212,800 investment units) on August 1, 2016 as the payment
date, and the investment units were listed on the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock
Exchange, Inc. (“Tokyo Stock Exchange”) on August 2, 2016 (Securities Code: 3471). On August 29, 2016, new investment units
were issued through third-party allotment (10,000 investment units).
As a result of these issuances, the total number of investment units issued and outstanding is 224,000 as at the end of the fiscal
period under review.
② Investment environment and management performance
The Japanese economy has continued to be in a state of moderate recovery as shown by steady improvements in the employment
and income situations, while exports and production appeared sluggish due in part to the effect of slowdown in emerging
economies and certain sections of private consumption. In the logistics market, with the 3PL business of specializing inoutsourced logistics services expanding in market size and the needs of 3PL providers (Note) for rental of multifunctional andhighly-convenient logistics facilities on the rise, it is expected that the demand for leading-edge logistics facilities continues toincrease.
Under such circumstances, MFLP-REIT formed a strategic partnership in the logistics facilities business with Mitsui Fudosan Co.,
Ltd. (“Mitsui Fudosan”) to maximize unitholder value by achieving sustainable growth as a basic policy, and was listed on theTokyo Stock Exchange Real Estate Investment Trust Securities Market on August 2, 2016.
(Note)“3PL providers” refer to third-party logistics providers (providers of logistics services to which client companies outsource part or all of their
supply chain management functions).

③ Summary of fund procurement
MFLP-REIT procured 55,445 million yen from a capital increase through public offering on August 1, 2016 as the payment dateand 2,605 million yen from a capital increase through third-party allotment on August 29, 2016 as the payment date. As a result,unitholders’ capital amounted to 58,350 million yen as at the end of the fiscal period under review. In addition, funds wereborrowed in line with acquisition of assets in the fiscal period under review, resulting in outstanding balance of loans of 20,000
million yen at the end of the fiscal period under review. Funds are obtained through multiple loans in order to disperse maturities
and diversify procurement sources.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.
Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Stable-4-④ Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in revenues of 2,383
million yen, operating income of 1,307 million yen, ordinary income of 1,111 million yen, and net income of 1,110 million yen.
In accordance with the distribution policy as defined in the Articles of Incorporation of MFLP-REIT, distributions for the fiscal
period under review shall be subject to application of special provisions for taxation of investment corporations (Article 67-15 of
the Act on Special Measures Concerning Taxation). Based on this, MFLP-REIT declared the distribution of 1,109,920,000 yen,which is the integral multiple of the total number of investment units issued and outstanding (224,000 units) of unappropriatedretained earnings. Accordingly, MFLP-REIT declared distribution per unit of 4,955 yen.
In addition, in accordance with the distribution policy as defined in the Articles of Incorporation, MFLP-REIT shall execute
distributions of cash in excess of retained earnings each fiscal period on a continuous basis in principle (Note 1). Based on this,
MFLP-REIT declared the distribution of 54 million yen, which is the amount almost equivalent to the remaining amount after
subtracting the distribution of earnings of 1,109 million yen from 1,164 million yen or 70% of FFO (Note 2), as return of capital
applicable to distribution reducing unitholders’ capital for tax purposes. Accordingly, MFLP-REIT declared distribution in excess
of retained earnings per unit of 243 yen.
(Note 1) In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution per unit isexpected to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units,etc., a temporary distribution in excess of retained earnings may be executed in order to standardize the amount of the distribution per unit.
However, from the perspective of continuing to maintain owned assets for a long period of time, in cases where the above distribution of cash is
executed, and where the amount equal to the equivalent of depreciation and amortization for the applicable operating period minus the amount of
the distribution in excess of retained earnings for the applicable operating period falls below the standard amount of capital for building
maintenance (Note 3), the distribution in excess of retained earnings will be decreased by a maximum amount that the distribution amount does
not fall below the total equivalent of the distribution of earnings, and this may lead to cases where distribution in excess of retained earnings will
not be executed.
In addition, from the perspective of continuing stable financial management, distributions in excess of retained earnings will not be executed incases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.
(Note 2) “FFO” is an acronym for funds from operations, and refers to the figure calculated by adding depreciation and amortization of rental properties
for the applicable operating period to net income (excluding gain (loss) on sales of real estate properties, etc.).
(Note 3) “Standard amount of capital for building maintenance” refers to the “amount equivalent to the capital expenditure amount noted in the Building
Condition Evaluation Report averaged over 12 years,” from which an amount representing six months of capital expenditure is determined andthen multiplied by two.
(Note 4) Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets as at the balance sheet as at the applicable accounts settlement date − Amount of book value after depreciation and amortizationof owned real estate as at the applicable accounts settlement date + Appraisal value of owned real estate as at the applicable accounts
settlement date-5-(3) Status of capital increase, etc.
The following are the changes in the total number of investment units issued and outstanding and unitholders’ capital since theestablishment of MFLP-REIT up to January 31, 2017.

Date

Total number of investment
units issued and outstanding(units)Description

Increase(Decrease)

Unitholders’ capital(millions of yen)
Remarks
Increase(Decrease)

Balance

Balance

March 4, 2016

Establishment through private
placement

600

600

300

300

(Note 1)

June 15, 2016

Split of investment units

600

1,200

―

300

(Note 2)

August 1, 2016

Capital increase through public
offering

212,800

214,000

55,44555,745(Note 3)

August 29, 2016

Capital increase through thirdparty allotment

10,000224,000

2,605

58,350(Note 4)(Note 1) MFLP-REIT was established at an issue price of 500,000 yen per unit.
(Note 2) A two-for-one split of investment units was conducted on June 15, 2016 as the effective date.
(Note 3) New investment units were issued through public offering at an issue price of 270,000 yen (paid-in amount of 260,550 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 4) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of 260,550 yen per unit.

[Historical market price of investment securities]
The following is the high and low (closing price) of the fiscal period under review on the Tokyo Stock Exchange Real Estate
Investment Trust Securities Market on which MFLP-REIT investment securities are listed.

(Note)

Fiscal period

1st period(From March 4, 2016
to January 31, 2017)High (yen)341,500

Low (yen)

286,300

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

(4) Distribution
The following is the distribution, etc. performance for the fiscal period under review.
1st period(From March 4, 2016
to January 31, 2017)

Fiscal period
Total amount of unappropriated retained earnings(thousands of yen)

Retained earnings(thousands of yen)

143

Total amount of distribution of cash

(thousands of yen)

1,164,352(yen)[5,198](thousands of yen)

1,109,920(yen)[4,955](thousands of yen)

54,432

(yen)

[243]

(thousands of yen)

―

(yen)

―

Of total amount of return of capital:
Total amount of distribution from distribution
reducing unitholders’ capital for tax purposes(thousands of yen)

54,432[Of return of capital per unit:
Distribution from distribution
reducing unitholders’ capital for tax purposes]

(yen)

[243]

[Distribution per unit]
Of which: Total amount of distribution of earnings[Distribution of earnings per unit]
Of which: Total amount of return of capital[Return of capital per unit]
Of total amount of return of capital:
Total amount of distribution from allowance fortemporary difference adjustment[Of return of capital per unit:
Distribution from allowance fortemporary difference adjustment per unit](Note)

1,110,063

For a summary of MFLP-REIT’s distribution policy and distributions for the fiscal period under review, please refer to “(2) Developments inmanagement of assets in the fiscal period under review; ④ Summary of business performance and distributions” presented earlier in thisdocument.

-6-(5) Future management policy
MFLP-REIT has established a strategic and collaborative partnership in the logistics facilities business with Mitsui Fudosan、
under which it seeks to maximize unitholder value by focusing investments primarily in logistics facilities as a basic policy.
Based on this policy, in addition to expansion of asset size for the purpose of further stabilizing the revenue base continuing into
future periods MFLP-REIT will perform stable and efficient financial management by addressing changes in the external andinternal environment to maximize unitholder value.
① External growth strategy
External growth based on the growth potential and extensive pipeline of Mitsui Fudosan’s logistics facilities business
MFLP-REIT aims for continuous growth by focusing on MFLP facilities (leading-edge logistics facilities with Mitsui Fudosan
quality (Note 1)), utilizing the right of first look and preferential negotiation based on “Right of first look and preferential
negotiation agreement” that was concluded with Mitsui Fudosan, which boasts high growth in the logistics facilities business.
(Note 1) Based on the principles of “harmonious coexistence” and “linking diverse values” set by the Mitsui Fudosan Group (Note 2), Mitsui Fudosan’slogistics facilities business keeps up efforts aimed at not only providing logistics facilities space but also creating value beyond conventionalboundaries. In order to achieve this, MFLP-REIT incorporates the highly-specialized and advanced management and operational know-how, etc.
accumulated in the office building business, retail properties business, etc. and the know-how, etc. accumulated through urban development andother innovative precedents as a comprehensive real estate conglomerate. It also captures the diverse needs that change with the times of thevarious bodies associated with logistics facilities (tenants, people working at the logistics facilities, and local community). MFLP-REIT refers to
the quality of logistics facilities realized through these efforts by the name “Mitsui Fudosan quality.”(Note 2) “Mitsui Fudosan Group” refers to a corporate group comprising Mitsui Fudosan, Mitsui Fudosan’s consolidated subsidiaries, and Mitsui
Fudosan’s associates accounted for using the equity method.

② Internal growth strategy
Stable management using the Platform (business foundation) and client network of the Mitsui Fudosan Group
MFLP-REIT aims for stable management by utilizing the Platform (business foundation) and client network that the Mitsui
Fudosan Group has developed over years as a comprehensive real estate conglomerate.
③ Financial strategy
Financial and cash management with an emphasis on stability and efficiency
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units and borrowings,
and at the same time it will aim to secure stable distribution levels and efficient cash management for distributions throughcontinuous distributions in excess of retained earnings (return of capital) based on cash flow (FFO).
(6) Significant subsequent events
Not applicable.

-7-2. Overview of the Investment Corporation(1) Status of investments in capital
1st period(January 31, 2017)

Fiscal period
Total number of investment units authorized(units)8,000,000

Total number of investment units issued and outstanding(units)224,000(millions of yen)

58,350(unitholders)

6,201

Unitholders’ capital
Number of unitholders(2) Major unitholders
Of the unitholders as of January 31, 2017, the following are the top ten unitholders in terms of investment unit-holding ratio.
Number ofinvestment
units
owned
(units)Name

Number of investment units owned
expressed as a percentage of
total number of investment units
issued and outstanding(%)

Japan Trustee Services Bank, Ltd. (trust account)40,16817.93

Mitsui Fudosan Co., Ltd.

28,90012.90

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

26,377

11.77

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

13,822

6.17

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

7,629

3.40

JPMorgan Chase Bank 385632

6,113

2.72

Nomura Bank (Luxembourg) S.A.

4,881

2.17

The Bank of Kyoto, Ltd.

3,700

1.65

The Chugoku Bank, Limited

3,696

1.65

The Chukyo Bank, Ltd.

3,165

1.41

138,451

61.80

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

-8-(3) Matters concerning directors, etc.
① Executive director, supervisory directors and independent auditor in the fiscal period under review

Position

Executive director

Name

Key concurrently-held position, etc.

―

4,400

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

2,750

―

2,750

―

12,100

Masayuki Isobe
Izuru Goto

Supervisory director

Total amount ofcompensation
by position
for the applicable
operating period(thousands of yen)

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

② Policy for deciding on dismissal and refusal of reappointment of the independent auditor
Decisions are made at a meeting of the Board of Directors of MFLP-REIT by taking into account the various circumstances in acomprehensive manner.
(4) Asset management company, custodian, and general administrators
The following are the asset management company, custodian and general administrators as of January 31, 2017.
Entrustment category

Name

Asset management company

Mitsui Fudosan Logistics REIT Management Co., Ltd.

Custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (transfer agent)

Sumitomo Mitsui Trust Bank, Limited

General administrator (institutional)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting)

Heiseikaikeisha Tax Corporation-9-3. Status of Assets under Management of the Investment Corporation(1) Composition of assets of the investment corporation
The following is the composition of assets of MFLP-REIT as of January 31, 2017.
1st period(as of January 31, 2017)
Type of asset

Use

Geographic classification(Note 1)

Total amount held(millions of yen)
(Note 2)

As a percentage of
total assets(%)(Note 3)

Tokyo metropolitan area

68,782

84.2

Kansai area

4,489

5.5

Other areas――

73,272

89.7

2,200

2.7

Kansai area――

Other areas

―

―

2,200

2.7

Real estate in trust total

75,472

92.4

Deposits and other assets

6,225

7.6

Total assets

81,698100.0

Logistics
facilities

Real estate intrust(Note 4)

Subtotal
Tokyo metropolitan area
Industrial
real estate

Subtotal(Note 1) “Tokyo metropolitan area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture, Saitama Prefecture and Ibaraki Prefecture.
“Kansai area” refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, Nara Prefecture and Shiga Prefecture.
(Note 2) “Total amount held” is based on the carrying amount as of January 31, 2017, rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is rounded to one decimal place.
(Note 4) “Real estate in trust” refers to real estate of trust beneficiary interests that have mainly real estate in trust.

- 10 -

(2) Major assets held
The following summarizes the assets held by MFLP-REIT as of January 31, 2017.

Name ofreal estate, etc.

Leasable area
Book value(m²)(millions of yen)
(Note 1)

Leased area(m²)
(Note 2)

As a percentage
of total
Occupancy rate
real estate(%)
leasing business(Note 3)revenues(%)

Main use

GLP/MFLP
Ichikawa Shiohama(Note 4)

15,52350,81350,813

100.0

16.1

Logistics
facilities

MFLP Kuki

12,46967,92567,925

100.0

19.4

Logistics
facilities

MFLP
Yokohama Daikoku(Note 4)

10,08247,92947,929

100.0

13.5

Logistics
facilities

MFLP Yashio

9,643

39,692

39,692100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi

7,806

40,95840,958100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP
Funabashi Nishiura

6,958

31,03431,034100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Kashiwa

6,299

31,291

31,291100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Sakai(Note 4)

4,489

22,42922,429100.0

6.9

Logistics
facilities

MFIP Inzai(Note 4)2,200

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)75,472Not disclosed(Note 5)

Not disclosed(Note 5)

100.0

100.0

Total

Industrial realestate(Note 1) “Leasable area” is the floor area available for leasing of the building of each real estate in trust as at January 31, 2017 and is the sum total of thefloor area deemed to be leasable based on the lease agreement or building drawing, etc., rounded down to the nearest whole number.
(Note 2) “Leased area” is the sum total of leased area of the building on each lease agreement for each real estate in trust as at January 31, 2017, rounded
down to the nearest whole number. If a pass-through master lease agreement has been concluded for the real estate in trust, it is the sum total of
the floor area actually contracted for leasing and leased to end-tenants, rounded down to the nearest whole number.
(Note 3) “Occupancy rate” is leased area of the building expressed as a percentage of leasable area of the building of each real estate in trust on each leaseagreement concluded for each property as at January 31, 2017, rounded to one decimal place.
(Note 4) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFIP Inzai,” “Leasable area” and “Leased area” arethe prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT has acquired (50%, 50%, 20% and 20%,
respectively).
(Note 5) Not disclosed, because consent has not been obtained from the lessee.

- 11 -

(3) Real estate assets in portfolio
The following summarizes the assets held by MFLP-REIT as of January 31, 2017.

Name ofreal estate, etc.

Location

GLP/MFLP Ichikawa
1-6-3 Shiohama,
Shiohama
Ichikawa-shi, Chiba(Note 3)Form ofownership

Leasable area(m²)
(Note 1)

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

Real estate
trust beneficiaryinterests

50,81315,80015,523

MFLP Kuki

1-10 Kiyokucho,
Kuki-shi, Saitama

Real estate
trust beneficiaryinterests

67,925

13,20012,469MFLP
Yokohama Daikoku(Note 3)43-1 Daikokucho,
Real estate
Tsurumi-ku, Yokohama-shi, trust beneficiary
Kanagawa
interests

47,92910,30010,082

MFLP Yashio

99-1 Tsubutakita,
Minamiushiroya,
Yashio-shi, Saitama

Real estate
trust beneficiaryinterests

39,692

9,990

9,643

MFLP Atsugi

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

40,958

8,120

7,806

MFLP
Funabashi Nishiura

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

Real estate
trust beneficiaryinterests

31,034

7,210

6,958

MFLP Kashiwa

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

Real estate
trust beneficiaryinterests

31,291

6,570

6,299

MFLP Sakai(Note 3)

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

22,429

4,810

4,489

Logistics facilities subtotal

332,074

76,00073,272Not disclosed(Note 4)

2,400

2,200

Industrial real estate subtotal

Not disclosed(Note 4)

2,400

2,200

Total

Not disclosed(Note 4)78,40075,472MFIP Inzai(Note 3)2-101-14 Izumino,
Inzai-shi, Chiba

Real estate
trust beneficiaryinterests(Note 1) “Leasable area” is the floor area available for leasing of the building of each real estate in trust as at January 31, 2017 and is the sum total of thefloor area deemed to be leasable based on the lease agreement or building drawing, etc., rounded down to the nearest whole number.
(Note 2) “Appraisal value at end of period” is the appraisal value as of the valuation date of January 31, 2017 by real estate appraisers based on the asset
valuation methods and standards set forth in the Articles of Incorporation of MFLP-REIT and the rules and requirements imposed by The
Investment Trusts Association, Japan. The appraisal of each asset held is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal
Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. and CBRE K.K.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFIP Inzai,” “Leasable area,” “Appraisal value at endof period” and “Book value at end of period” are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLPREIT has acquired (50%, 50%, 20% and 20%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 12 -

The following is the status of leasing of real estate, etc. held by MFLP-REIT.
1st period(From March 4, 2016 to January 31, 2017)

Name of real estate, etc.

Total number oftenants[at end of period](Note 1)

Occupancy rate
[at end of period](%)(Note 2)

Real estate leasing
business revenues[during period](millions of yen)

As a percentage of
total
real estate leasing
business revenues(%)

GLP/MFLP Ichikawa Shiohama(Note 3)

5

100.0

383

16.1

MFLP Kuki

3

100.0

462

19.4

MFLP Yokohama Daikoku(Note 3)

5

100.0

322

13.5

MFLP Yashio

2

100.0

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

MFLP Atsugi

1

100.0

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

MFLP Funabashi Nishiura

1

100.0

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

MFLP Kashiwa

1

100.0

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

MFLP Sakai(Note 3)

5

100.0

23

100.0

Logistics facilities subtotal
MFIP Inzai(Note 3)164

6.9

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

Industrial real estate subtotal

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

Not disclosed(Note 4)

100.0

2,383

100.0

(Note 1) “Total number of tenants” is the number of tenants on each lease agreement concluded for each property as at January 31, 2017. If a pass-throughmaster lease agreement has been concluded for the property, it is the total number of end-tenants.
(Note 2) “Occupancy rate” is leased area of the building expressed as a percentage of leasable area of the building of each real estate in trust on each leaseagreement concluded for each property as at January 31, 2017, rounded to one decimal place.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFIP Inzai,” “Real estate leasing business revenues”
and “As a percentage of total real estate leasing business revenues” are the prorated figures equivalent to the quasi co-ownership interest in each
property that MFLP-REIT has acquired (50%, 50%, 20% and 20%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 13 -

(4) Schedule of renewable energy power generation facilities
Not applicable.
(5) Schedule of rights to operate public facilities, etc.
Not applicable.
(6) Status of other assets
Trust beneficiary interests that have real estate as the main assets in trust, etc. are listed all at once in “3. Real estate assets in
portfolio” presented earlier in this document, and there are no main specified assets invested by MFLP-REIT other than thoselisted there in the portfolio as of January 31, 2017.
① Itemization of investment securities portfolio assets
Not applicable.
② Table of status of contract amount, etc. and fair value of specified transactions
Not applicable.
(7) Status of holding of assets by country and region
Not applicable, because there are none in countries and regions other than Japan.

- 14 -

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

Location

PurposeScheduled period

TotalamountAmountpaid
duringperiodTotalamountalreadypaid

MFLP Atsugi

Aiko, Kanagawa

Truck waiting yard
chock

From March 2017
to March 2017

1

―

―

MFLP
Yokohama Daikoku

Yokohama, Kanagawa

Switching to LED

From May 2017
to June 2017

15

―

―

MFLP Sakai

Sakai, Osaka

Expansion of bicycle
From June 2017and motorcycle parking
to June 2017
space

1

―

―

MFLP
Yokohama Daikoku

Yokohama, Kanagawa

Switching to LED

15

―

―

From November 2017
to December 2017

(Note 1) For “MFLP Yokohama Daikoku” and “MFLP Sakai,” “Planned construction amount” are the prorated figures equivalent to the quasi coownership interest in each property that MFLP-REIT holds (50% and 20%).
(Note 2) Rounded down to the nearest million yen.

(2) Capital expenditures during period
For real estate, etc. held by MFLP-REIT, capital expenditures in the fiscal period under review amounted to 2 million yen and,other than this, there was 36 million yen in repair expenses categorized as operating expenses in the fiscal period under review.
For each asset held as of January 31, 2017, no capital expenditures incurred in the fiscal period under review amounted to 1
million yen or more per project.
(3) Cash reserves for long-term repair and maintenance plans
Not applicable.

- 15 -

5. Status of Expenses and Liabilities(1) Details of expenses related to asset management(Thousands of yen)Item

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

Asset management fee (Note)

219,777

Asset custody fee

4,979

Administrative service fees

8,958

Directors’ compensation

9,900

Audit fee

3,000

Other expenses

27,668
Total(Note)

274,285

Other than the amount shown above for “Asset management fee,” there was a management fee for property acquisitions included in thebook value of real estate, etc. individually (188,775 thousand yen).

- 16 -

Short-term loans

Category(2) Debt financing status
The following is the status of loans as of January 31, 2017.

LenderBorrowingdate

Balance
Balanceat beginningat endof periodof period(millions of yen) (millions of yen)

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

Repayment
methodUse

Remarks

Sumitomo Mitsui
Banking Corporation

Aug. 31,
2016

―

1,000

0.1004

Feb. 28,
2017

Bulletrepayment(Note 3)

Sumitomo Mitsui Trust
Bank, Limited

Jan. 31,
2017

―

1,000

0.1000Feb. 28,
2017

Bulletrepayment(Note 3)

Mizuho Bank, Ltd.

Jan. 31,
2017

―

1,000

0.1000Feb. 28,
2017

Bulletrepayment(Note 3)―3,000

Sept. 1,
2016

―

2,000

0.2713

Sept. 1,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

―

1,500

0.4213

Sept. 1,
2026

Bulletrepayment(Note 3)

Sept. 1,
2016

―

2,000

0.3050

Sept. 1,
2023

Bulletrepayment(Note 3)

Sept. 1,
2016

―

1,500

0.3813

Sept. 1,
2025

Bulletrepayment(Note 3)

Aug. 2,
2016

―

400

0.1425

Aug. 2,2022

Bulletrepayment(Note 3)

Aug. 2,
2016

―

1,700

0.2113

Aug. 2,2024

Bulletrepayment(Note 3)

Unsecured

Sept. 1,
2016

―

2,200

0.1826

Mar. 1,
2023

Bulletrepayment(Note 3)

Nonguaranteed

Sept. 1,
2016

―

600

0.3237Mar. 1,
2024

Bulletrepayment(Note 3)

Sept. 1,
2016

―

700

0.3425

Sept. 2,2024

Bulletrepayment(Note 3)Development Bank ofJapan Inc.

Aug. 2,
2016

―

2,100

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

The Bank of Fukuoka,
Ltd.

Aug. 2,
2016

―

1,300

0.2169Feb. 2,2024

Bulletrepayment(Note 3)

Nippon Life Insurance
Company

Aug. 2,
2016

―

1,000

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)―17,000―20,000Unsecured

Subtotal

Sumitomo Mitsui
Banking Corporation

Sumitomo Mitsui Trust
Bank, Limited

Nonguaranteed

Long-term loans

Mizuho Bank, Ltd.

Mitsubishi UFJ Trustand Banking
Corporation

Mizuho Trust & Banking
Co., Ltd.

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

(3) Status of investment corporation bonds
Not applicable.
(4) Status of short-term investment corporation bonds
Not applicable.
(5) Status of subscription rights to investment units
Not applicable.

- 17 -

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

Disposition

Acquisitiondate

Acquisition
price(millions of yen)
(Note 1)

Disposition
dateBook value(millions of yen)

Gain (Loss)on sale(millions of yen)

GLP/MFLP Ichikawa
Shiohama (Note 2)

Sept. 1, 2016

15,500----MFLP Kuki

Aug. 2, 2016

12,500----MFLP Yokohama
Daikoku (Note 2)Aug. 2, 2016

10,100----MFLP Yashio

Aug. 2, 2016

9,650

-

-

-

-

MFLP Atsugi

Aug. 2, 2016

7,810

-

-

MFLP Funabashi
Nishiura

Aug. 2, 2016

6,970

-

-

-

-

MFLP Kashiwa

Aug. 2, 2016

6,300

-

-

-

-

MFLP Sakai (Note 2)Aug. 2, 2016

4,500

-

-

-

-

MFIP Inzai (Note 2)Aug. 2, 2016

2,180

-

-

-

-

Total

-

75,510----Name ofreal estate, etc.

Disposition price(millions of yen)-

(Note 1) “Acquisition price” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax, consumption tax
and local consumption tax.
(Note 2) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFIP Inzai,” “Acquisition price” are the prorated figuresequivalent to the quasi co-ownership interest in each property that MFLP-REIT holds (50%, 50%, 20% and 20%, respectively).

(2) Status, etc. of purchases and sales of other assets
Main assets other than the real estate, etc. and asset-backed securities, etc. and infrastructure assets, etc. and infrastructure-related
assets above are generally bank deposits or bank deposits within assets in trust.

- 18 -

(3) Investigation into value, etc. of specified assets① Real estate, etc.
Acquisitionordisposition

Acquisition

Acquisition price ordisposition priceAppraisal value(millions of yen)(millions of yen)
(Note 2)Type ofreal estate

Name ofreal estate, etc.

Transaction
dateReal estate
trust
beneficiaryinterests

GLP/MFLP
Ichikawa Shiohama(Note 3)

Sept. 1, 2016

15,500Real estate
trust
beneficiaryinterests

MFLP Kuki

Aug. 2, 2016

Real estate
trust
beneficiaryinterests

MFLP
Yokohama Daikoku(Note 3)

Real estate
trust
beneficiaryinterests

Appraisal company

Date of value

15,800Japan Real Estate InstituteJan. 31, 201712,50013,200The Tanizawa Sōgō
Appraisal Co., Ltd.

Jan. 31, 2017

Aug. 2, 2016

10,10010,300Daiwa Real EstateAppraisal Co., Ltd.

Jan. 31, 2017

MFLP Yashio

Aug. 2, 2016

9,650

9,990

Japan Real Estate InstituteJan. 31, 2017

Real estate
trust
beneficiaryinterests

MFLP Atsugi

Aug. 2, 2016

7,810

8,120

Japan Real Estate InstituteJan. 31, 2017

Real estate
trust
beneficiaryinterests

MFLP
Funabashi NishiuraAug. 2, 2016

6,970

7,210

Japan Real Estate InstituteJan. 31, 2017

Real estate
trust
beneficiaryinterests

MFLP Kashiwa

Aug. 2, 2016

6,300

6,570

Japan Real Estate InstituteJan. 31, 2017

Real estate
trust
beneficiaryinterests

MFLP Sakai (Note 3)Aug. 2, 2016

4,500

4,810

The Tanizawa Sōgō
Appraisal Co., Ltd.

Jan. 31, 2017

Real estate
trust
beneficiaryinterests

MFIP Inzai (Note 3)Aug. 2, 2016

2,180

2,400

CBRE K.K.

Jan. 31, 201775,51078,400

-

-

Total

(Note 1) For transactions requiring appraisal of real estate, etc. of specified assets pursuant to Article 201, Paragraph 1 of the Investment Trusts Act, theappraisal is implemented pursuant to “Real Estate Appraisal Standards; Particulars; Chapter 3: Appraisal on Value of Real Estate Subject toSecuritization” and MFLP-REIT has been notified of the appraisal findings.
(Note 2) “Acquisition price” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax, consumption tax
and local consumption tax.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFIP Inzai,” “Acquisition price” and “Appraisal value” arethe prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT holds (50%, 50%, 20% and 20%, respectively).

② Other
Not applicable.

- 19 -

(4) Status of transactions with stakeholders, etc.
① Status of purchase and sale transactions with stakeholders, etc.
Amount of purchase or sale, etc. (Note 2)
Category

Amount of purchase, etc.
(thousands of yen)

Total amountAmount of sale, etc.
(thousands of yen)

75,510,000-

Breakdown of status of transactions with stakeholders, etc. (Note 1)
Mitsui Fudosan Co., Ltd.

30,730,000 (40.7%)-(%)

Ichikawa Shiohama Tokutei Mokuteki Kaisha

15,500,000 (20.5%)-(%)

Kuki Tokutei Mokuteki Kaisha

12,500,000 (16.6%)-(%)

Daikoku Godo Kaisha

10,100,000 (13.4%)-(%)

Sakai Chikkoyawata Tokutei Mokuteki Kaisha

4,500,000 (6.0%)-(%)

Inzai Tokutei Mokuteki Kaisha

2,180,000 (2.9%)-(%)

75,510,000 (100.0%)

-(

%)

Total

(Note 1) “Stakeholders, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26,
Paragraph 1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts
Association, Japan.
(Note 2) “Amount of purchase or sale, etc.” does not include the various costs required in the acquisition of the real estate, etc., property tax, city planning tax,
consumption tax and local consumption tax.

② Amount of commission fee, etc.

Category

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

Logistics management fee

Building management fee(Note)Breakdown of transactions with stakeholders, etc.
Payee

Amount paid(B)(thousands of yen)

As a percentage
of total amount(B/A)

66,315 Mitsui Fudosan Co., Ltd.

55,762

84.1%

Mitsui Fudosan Building
Management Co., Ltd.

325

0.4%

Mitsui Fudosan Facilities Co., Ltd.

52,293

71.3%

First Facilities West Co., Ltd.
(currently, Mitsui Fudosan Facilities
West Co., Ltd.)

7,161

9.8%

76,769“Stakeholders, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26,
Paragraph 1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts
Association, Japan.

(5) Status, etc. of Transactions with the Asset Management Company Pertaining to Operations of Concurrent Business
Engaged in by the Asset Management Company
Not applicable, because the asset management company (Mitsui Fudosan Logistics REIT Management Co., Ltd.) does not engage
in any type I financial instruments business, type II financial instruments business, real estate brokerage or specified joint realestate venture as a concurrent business.

- 20 -

7. Accounting(1) Status, etc. of assets, liabilities, principal, and income and loss
For the status, etc. of assets, liabilities, principal, and income and loss, please refer to “Balance Sheet,” “Statement of Income,”“Statement of Changes in Net Assets,” “Notes to Financial Statements” and “Distributions” presented later in this document.
(2) Change in method of calculation of depreciation and amortization
Not applicable.
(3) Change in method of valuation of real estate, etc. and infrastructure assets, etc.
Not applicable.
(4) Status, etc. of beneficiary certificates, etc. of investment trust established by itself
Not applicable- 21 -

8. Other(1) Notice① General meeting of unitholders
The 1st General Meeting of Unitholders of MFLP-REIT was held in the fiscal period under review. The following are the key
items of proposals approved at the meeting.
Approval date

Item
Partial amendments to the
Articles of Incorporation

June 6, 2016
Appointment of
1 substitute executive director

Summary
The Articles of Incorporation of MFLP-REIT were partially amended. In
addition, Chishu Zushi was appointed as a substitute executive director
to provide for any vacancy in the position of executive director or any
shortfall in the number of executive directors as provided by laws andregulations. Chishu Zushi is the president and chief executive officer of
MFLP-REIT’s asset management company Mitsui Fudosan Logistics
REIT Management Co., Ltd.

② Board of directors of the investment corporation
The following summarizes the key items of the major contract conclusions and changes approved at meetings of the Board of
Directors of MFLP-REIT in the fiscal period under review.
Approval date

Item

Summary

Conclusion ofasset custody agreement

Business operations pertaining to custody of the assets held by MFLPREIT were entrusted to Sumitomo Mitsui Trust Bank, Limited.

Conclusion ofgeneral administrative service
agency agreement (institutional)

General administrative services concerning the operation of theadministrative instruments of MFLP-REIT were entrusted to Sumitomo
Mitsui Trust Bank, Limited.

Conclusion ofasset management agreement

Business operations pertaining to asset management of MFLP-REIT
were entrusted to Mitsui Fudosan Logistics REIT Management Co., Ltd.

Conclusion ofmemorandum on succession of
position and memorandum ontransfer agency fee

Agreement was reached for MFLP-REIT to succeed Mitsui Fudosan
Logistics REIT Management Co., Ltd.’s position in the March 1, 2016transfer agency service contract concluded between Mitsui Fudosan
Logistics REIT Management Co., Ltd. and Sumitomo Mitsui Trust
Bank, Limited, and on the transfer agency fee.

Conclusion ofgeneral administrative service
agency agreement (accounting)General administrative services concerning financials, accounting andtax payments of MFLP-REIT were entrusted to Heiseikaikeisha Tax
Corporation.

June 15, 2016

Conclusion ofmemorandum on first amended
contract and management fee of
asset management agreement

The management fee rate and timing of payment provided in the March
7, 2016 asset management contract concluded between Mitsui Fudosan
Logistics REIT Management Co., Ltd. and MFLP-REIT were amended.

July 25, 2016

Conclusion of
new investment units
underwriting agreement, etc.

Concerning the issuance of new investment units and secondary offeringof investment units approved at a meeting of the Board of Directors heldon the same date, general administrative services concerning newinvestment units underwriting, etc. were entrusted to underwriters(Note).

March 7, 2016

(Note)The underwriters are Daiwa Securities Co. Ltd., Nomura Securities Co., Ltd., SMBC Nikko Securities Inc., Mizuho Securities Co., Ltd.,
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Merrill Lynch Japan Securities Co., Ltd., UBS Securities Japan Co., Ltd. and Okasan
Securities Co., Ltd.

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

- 22 -

Mitsui Fudosan Logistics Park Inc.
Balance Sheet(Thousands of yen)
1st period(As of January 31, 2017)
AssetsCurrent assets
Cash and deposits (Notes 3 and 4)
Cash and deposits in trust (Notes 3 and 4)
Operating accounts receivable (Note 12)
Prepaid expenses
Deferred tax assets (Note 9)
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property and equipment (Note 5)
Buildings in trust
Structures in trust
Machinery and equipment in trust
Tools, furniture and fixtures in trust
Land in trust
Less: accumulated depreciation and amortization
Total property and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets¥

1,066,015
2,018,416
35,8117,511
27
3,076,364
317
6,204,464

37,104,731
1,159,158
1,813,671
640
35,948,155(553,487 )
75,472,868
10,476
10,476¥- 23 -

10,0001,050
11,05075,494,395
81,698,860

Mitsui Fudosan Logistics Park Inc.
Balance Sheet(Thousands of yen)
1st period(As of January 31, 2017)
Liabilities
Current liabilities
Operating accounts payable (Note 12)
Short-term loans payable (Notes 4, 7 and 12)
Accounts payable (Note 12)
Accrued expenses (Note 12)
Income taxes payable
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable (Notes 4, 7 and 12)
Tenant leasehold and security deposits in trust (Note 4)
Total non-current liabilities
Total liabilities
Net assets (Notes 6 and 10)
Unitholders’ equity
Unitholders’ capital
Units authorized: 8,000,000 units as of January 31, 2017
Units issued and outstanding: 224,000 units as of January 31, 2017
Retained earnings
Total unitholders’ equity
Total net assets (Notes 6 and 10)
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

- 24 -¥

131,461
3,000,000
262,266
133
1,584
400,97282
3,796,501
17,000,000
1,441,755
18,441,755
22,238,257

58,350,540¥

1,110,063
59,460,603
59,460,603
81,698,860

Mitsui Fudosan Logistics Park Inc.
Statement of Income(Thousands of yen)
1st period(From March 4, 2016
to January 31, 2017)
Operating revenues (Note 12)
Property-related revenues (Note 8)
Other property-related revenues (Note 8)
Total operating revenues
Operating expenses (Note 12)
Property-related expenses (Note 8)
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensation
Audit fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Other
Total non-operating income
Non-operating expenses
Interest expense
Organization expenses (Note 12)
Investment unit issuance expenses
Offering costs associated with issuance of investment units
Other
Total non-operating expenses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes (Note 9)
Net income (Note 10)
Unappropriated retained earnings (Note 6)¥

2,308,592
74,6272,383,220
801,073
219,777
4,979
8,958
9,900
3,000
27,6681,075,359
1,307,860
6
0
6

¥
¥

24,01556,34847,58356,331
11,967
196,246
1,111,620
1,585
(27 )
1,557
1,110,063
1,110,063(Yen)
1st period(From March 4, 2016
to January 31, 2017)¥
9,017

Net income per unit (Note 10)

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

- 25 -

Mitsui Fudosan Logistics Park Inc.
Statement of Changes in Net Assets
1st period (from March 4, 2016 to January 31, 2017)(Thousands of yen)
Number of units
Balance as of March 4, 2016
Issuance of new units for establishment as of March 4,
2016
Unit split as of June 15, 2016
Issuance of new units through public offering as ofAugust 1, 2016
Issuance of new units through allocation to a third party
as of August 29, 2016
Net income
Balance as of January 31, 2017-

Unitholders’capital¥Retained earnings-¥-

Total net assets
¥

-

600

300,000-

300,000

600

-

-

-

212,800

55,445,040-

55,445,040

10,0002,605,500-

2,605,500--

1,110,063

1,110,063

1,110,063¥ 59,460,603

224,000

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

- 26 -¥

58,350,540-¥

Mitsui Fudosan Logistics Park Inc.
Statement of Cash Flows(Thousands of yen)
1st period(From March 4, 2016
to January 31, 2017)
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Interest income
Interest expense
Increase in operating accounts receivable
Increase in prepaid expenses
Increase in consumption taxes receivable
Increase in operating accounts payable
Increase in accounts payable
Increase in advances received
Other, net
SubtotalInterest income received
Interest expense paid
Income taxes paid
Net cash used in operating activities
Cash flows from investing activities:
Purchase of property and equipment in trust
Purchase of intangible assets
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Payments for lease and guarantee deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment units
Net cash provided by financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 3)
The accompanying notes are an integral part of these financial statements.

- 27 -¥

1,111,620
554,211(6 )24,015(35,811 )(7,511 )(3,076,364 )
44,883
262,266
400,972(234 )(721,959 )
6(23,881 )
0(745,835 )(75,939,779 )(11,200 )(11,743 )
1,453,499(10,000 )(1,050 )(74,520,273 )¥

13,200,000(10,200,000 )
17,000,000
58,350,540
78,350,540
3,084,431
3,084,431

Mitsui Fudosan Logistics Park Inc.
Notes to Financial Statements
Fiscal Period Ended January 31, 2017
1.

Organization and Basis of Presentationa. Organization
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March
4, 2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer with investments in capital of 300 million yen (600 investment units). Registration with the Kanto
Local Finance Bureau of the Ministry of Finance of Japan was completed on March 25, 2016. The investment units were listedon the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock Exchange, Inc. on August 2, 2016
(Securities Code: 3471).
MFLP-REIT started acquisition of properties on August 2, 2016. With Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as asponsor, MFLP-REIT invests primarily in logistics facilities with a particular focus on MFLP facilities, that is, leading-edge
logistics facilities with Mitsui Fudosan quality. This focus has been chosen in light of MFLP-REIT's goal of establishing aportfolio that emphasizes location, quality and balance.
b. Basis of presentation
The accompanying financial statements of MFLP-REIT have been prepared in accordance with accounting principles
generally accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial Instruments and Exchange Act
of Japan, the Investment Trust Act and the related regulations, which are different in certain respects as to application anddisclosure requirements of the International Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of MFLP-REIT, which wereprepared in accordance with Japanese GAAP and were presented in its Asset Management Report published for Japanese
investors. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to
the financial statements issued domestically in order to present them in a format which is more familiar to readers outside
Japan.
MFLP-REIT’s fiscal period is a six month period, which ends at the end of January and July of each year. However, theaccompanying financial statements have been prepared and presented for the period of 334 days from March 4, 2016
(establishment date) to January 31, 2017, as this is the first fiscal period since its establishment.
MFLP-REIT does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying financial
statements and the notes thereto, as permitted by the Financial Instruments and Exchange Act of Japan. As a result, the totals
shown in the financial statements and notes thereto do not necessarily agree with the sum of the individual amounts.

2.

Summary of Significant Accounting Policies
a. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and cash in trust, readily-available bank deposits, readily-available bankdeposits in trust and short-term investments that are readily convertible to cash and realizable with a maturity of three months
or less when purchased and that are subject to an insignificant risk of changes in value.
b. Property and equipment
Property and equipment (including those in trust) are stated at cost, which includes the original purchase price and relatedacquisition costs and expenses. Depreciation and amortization of property and equipment is calculated using the straight-line
method over the estimated useful lives. The useful lives of principal property and equipment are as follows:
Buildings:
2 to 59 years
Structures:
Machinery and equipment:

9 to 14 years
14 to 16 years- 28 -

Tools, furniture and fixtures:

8 to 15 years

c. Intangible assets
Intangible assets are stated at cost, which includes the original purchase price and related acquisition costs and expenses.
Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives.
d. Organization expenses
Organization expenses are recorded as expenses when incurred.
e. Investment unit issuance expenses
Investment unit issuance expenses are recorded as expenses when incurred.
f. Taxes on property and equipment
With respect to property taxes, city planning taxes and depreciable asset taxes imposed on real estate properties or trust
beneficiary interests in real estate, of the tax amount assessed and determined, the amount corresponding to the relevant fiscal
period is accounted for as property-related expenses.
Of the amounts paid for the acquisitions of real estate properties or trust beneficiary interests in real estate, the amountequivalent to property-related taxes is capitalized as part of the acquisition cost of the relevant property instead of being
charged as expenses. Capitalized property-related taxes amounted to 190,271 thousand yen for the fiscal period ended January
31, 2017.
g. Trust beneficiary interests in real estate
As to trust beneficiary interests in real estate that have real estate properties as assets in trust, all accounts of assets andliabilities within assets in trust as well as all income generated and expenses incurred from assets in trust are recorded in therelevant balance sheet and statement of income account items.
The following material items of the assets in trust recorded in the relevant account items are separately presented in theaccompanying balance sheet.
(1) Cash and deposits in trust(2) Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust and land intrust(3) Tenant leasehold and security deposits in trusth. Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.
3.

Cash and Cash Equivalents
Reconciliation between cash and cash equivalents and accounts and amounts in the balance sheet is as follows:(Thousands of yen)
1st period(As of January 31, 2017)
Cash and deposits¥

Cash and deposits in trust

1,066,015
2,018,416

Cash and cash equivalents¥- 29 -

3,084,431

4.

Financial Instruments
a. Status of financial instruments(1) Policy for financial instruments
MFLP-REIT procures funds for acquisition of assets or repayment of debts mainly through issuance of investment units,loans or issuance of investment corporation bonds.
MFLP-REIT generally invests surplus funds in deposits considering safety of the investments although surplus funds
could be invested in securities and monetary claims as a matter of policy.
MFLP-REIT enters into derivative transactions to a limited extent for the purpose of avoiding the risk of interest rate
fluctuation and other risks. MFLP-REIT does not engage in speculative transactions.
(2) Financial instruments, their associated risks and risk management system
Deposits are used for investment of MFLP-REIT’s surplus funds, and are exposed to credit risk such as failure of thefinancial institutions holding the deposits. MFLP-REIT limits the credit risk by restricting the deposit periods to shortterms and selecting financial institutions that have high credit ratings.
Proceeds from loans are used mainly to acquire real estate properties or refinance existing loans. While these loans are
exposed to liquidity risk at the time of repayment, MFLP-REIT mitigates the liquidity risk by diversifying its means offund procurement and lending financial institutions, dispersing repayment dates, establishing commitment lines andsecuring liquidity on hand, and also controls liquidity risk by preparing monthly fund management plans.
In addition, loans with floating interest rates are exposed to the risk of interest rate rising. MFLP-REIT limits theimpact of interest rate rises on its operations by keeping the ratio of interest-bearing debt to total assets at a low leveland maintaining the ratio of fixed-rate long-term loans at a high level.
Tenant leasehold and security deposits are deposits from tenants, and are exposed to liquidity risk at the time the tenants
vacate the properties. MFLP-REIT controls the liquidity risk by preparing monthly fund management plans.
(3) Supplementary explanation regarding fair values of financial instruments
The fair value of financial instruments is based on their observable market value, if available. When there is noobservable market value available, fair value is based on a price that is reasonably estimated. Since variable factors arealso reflected in estimating the fair value, different assumptions and factors could result in a different value.
b. Estimated fair value of financial instruments
The carrying amounts, fair values and their differences as of January 31, 2017 are as follows. Financial instruments for which
it is extremely difficult to determine the fair value are excluded from the following table (Note 2 below).
(Thousands of yen)
1st period (As of January 31, 2017)

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

1,066,015

Fair value¥

2,018,416

Total assets(3) Short-term loans payable

Difference

1,066,015-

2,018,416-¥

3,084,431¥

3,084,431-¥

3,000,000¥

3,000,000-(4) Long-term loans payable

17,000,000

16,724,027¥ (275,972)

Total liabilities¥ 20,000,000¥ 19,724,027¥ (275,972)(Note 1) Methods to estimate fair values of financial instruments(1) Cash and deposits and (2) Cash and deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(3) Short-term loans payable
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(4) Long-term loans payable
The fair value is determined based on the present value being calculated by discounting the sum of principal and interest by the assumed
interest rate which would be applied if a similar new loan were entered into.

- 30 -

(Note 2) Financial instruments for which it is extremely difficult to determine the fair value(Thousands of yen)
1st period(As of January 31, 2017)
Tenant leasehold and security deposits in trust¥ 1,441,755

Tenant leasehold and security deposits in trust are not subject to fair value disclosure, because a reasonable estimation of future cash flows
is difficult as no market price is available and the actual deposit period cannot be determined even when a contract period is set in the lease
contract since there is a possibility that the leases may be cancelled, renewed or re-signed.
(Note 3) Redemption schedule for monetary claims after January 31, 2017
(Thousands of yen)
Due within one year
Cash and deposits¥ 1,066,015

Cash and deposits in trust¥ 2,018,416(Note 4) Repayment schedule for loans after January 31, 2017
(Thousands of yen)
Due within
one year5.

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

Due after
five years

Short-termloans payable¥ 3,000,000

-

-

-

-

-

Long-termloans payable

-

-

-

-

-

¥ 17,000,000

Investment and Rental Properties
MFLP-REIT owns logistics facilities and industrial properties for the purpose of earning rental income. The carrying amount,net changes in the carrying amount during the period and fair value of these investment and rental properties are as follows:(Thousands of yen)
1st period(From March 4, 2016
to January 31, 2017)
Carrying amount
Balance at the beginning of the period-

Changes during the period¥

Balance at the end of the period

75,472,868
75,472,868

Fair value at the end of the period¥

78,400,000(Note 1) The carrying amount represents acquisition cost less accumulated depreciation and amortization.
(Note 2) Changes in the carrying amount during the period consisted of the increase mainly attributable to acquisition of trust beneficiary interests inreal estate totaling nine properties (75,510,000 thousand yen), and the decrease mainly attributable to depreciation and amortization(553,488 thousand yen).
(Note 3) The fair value at the end of the period represents the appraisal value or surveyed value by external real estate appraisers.

Information about income and loss from investment and rental properties is stated in Note 8. “Property-related Revenues andExpenses.”- 31 -

6.

Net Assets
a. Stated capital
MFLP-REIT issues only non-par value units in accordance with the Investment Trust Act of Japan and all of the issue prices of
new units are designated as stated capital. MFLP-REIT maintains at least ¥50,000 thousand as the minimum net assets as
required by the Article 67, Paragraph 4 of the Investment Trust Act of Japan.
b. Distributions
Distributions related to the period but declared after the balance sheet date are summarized as follows:(Yen)
1st period(From March 4, 2016 to January 31, 2017)
Total

I. Unappropriated retained earnings¥

Per unit

1,110,063,072

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

54,432,000

III. Distributions
Distribution of earnings

1,109,920,000

Distribution in excess of retained earnings¥

Total distributions
IV. Retained earnings carried forward¥

1,164,352,000¥

143,072

4,955
243

54,432,000
¥

5,198

In accordance with the distribution policy as defined in the Article 35, Paragraph 1 of the Articles of Incorporation of MFLP-REIT,
distributions shall be in excess of the amount equivalent to 90% of the amount of earnings available for dividends defined in the
Article 67-15 of the Act on Special Measures Concerning Taxation.
Based on this policy, MFLP-REIT declared a distribution amount of 1,109,920,000 yen, which is the maximum value of the integral
multiple of the total number of investment units issued and outstanding at the end of the period in an amount not in excess ofunappropriated retained earnings.
Furthermore, based on the distribution policy as defined in the Article 35, Paragraph 2 of the Articles of Incorporation, MFLP-REIT
executes the distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing unitholders’capital for tax purposes) each fiscal period on a continuous basis.
Based on this policy, MFLP-REIT declared the distribution of 54,432,000 yen, which is calculated as being almost equivalent to theremaining amount after subtracting the distribution of earnings of 1,109,920,000 yen from 1,164,485,764 yen or 70% of FFO (funds
from operation), as distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing
unitholders’ capital for tax purposes).
(Note) MFLP-REIT may execute cash distribution in excess of distributable amount, in an amount it determines within a scope not to exceed the limit
stipulated in the rules and requirements imposed by the Investment Trusts Association, Japan, when MFLP-REIT considers it appropriate, given suchfactors as economic environment, trends in the real estate market or leasing market, the situation surrounding owned assets and the financial condition.
In addition, in case that any cash distribution fails to meet the statutory requirements for special tax treatment for investment corporations, MFLP-REIT
may execute cash distribution in excess of distributable amount, in an amount it determines to meet the statutory requirements.

- 32 -

7.

Short-term and Long-term Loans Payable
Short-term and long-term loans payable mainly consisted of bank borrowings under loan agreements. The following tablesummarizes the short-term and long-term loans payable as of January 31, 2017.
(Thousands of yen)
1st period(As of January 31, 2017)0.1004% unsecured short-term loans¥

1,000,000

0.1000% unsecured short-term loans
0.1000% unsecured short-term loans

1,000,000
1,000,000

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

3,000,000¥

2,000,000
1,500,000

0.3050% unsecured long-term loans due 2023
0.3813% unsecured long-term loans due 2025

2,000,000
1,500,000

0.1425% unsecured long-term loans due 2022
0.2113% unsecured long-term loans due 2024

400,000
1,700,000

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

2,200,000
600,000

0.3425% unsecured long-term loans due 2024
0.3125% unsecured long-term loans due 2026

700,000
2,100,000

0.2169% unsecured long-term loans due 2024
0.3125% unsecured long-term loans due 2026

1,300,000
1,000,000

Total long-term loans payable(Note)¥

17,000,000

The stated interest rates are the weighted average interest rates during the fiscal period ended January 31, 2017 and rounded to the fourth
decimal place.

The repayment schedule for loans after January 31, 2017 are disclosed in Note 4. “Financial Instruments.”
MFLP-REIT had the commitment line contracts with two banks as of January 31, 2017.
(Thousands of yen)
1st period(As of January 31, 2017)
Total amount of commitment line contracts¥ 6,000,000

Loans executed-

Unused line of credit¥ 6,000,000- 33 -

8.

Property-related Revenues and Expenses
The following table summarizes the revenues and expenses generated from the real estate leasing business for the fiscal
period ended January 31, 2017.
(Thousands of yen)
1st period(From March 4, 2016
to January 31, 2017)
A. Real estate leasing business revenues
Property-related revenues
Rental revenues¥

Common area charges

2,221,941
86,650

Total
Other revenues related to property leasing
Utilities charges
Parking lots¥

2,308,592¥

56,616
8,543

Others

9,467

Total
Total property-related revenues
B. Real estate leasing business expenses
Property-related expenses
Outsourcing service expenses¥

74,627¥2,383,220¥

144,243

Utilities expenses
Repair expenses

56,61636,308Depreciation and amortization
Others553,488
10,417

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

801,073¥

1,582,146

Transactions with major unitholders for the fiscal period ended January 31, 2017 are as follows:(Thousands of yen)
1st period(From March 4, 2016
to January 31, 2017)
Operating transactions:Operating revenues
Operating expenses
Non-operating transactions:Purchase of trust beneficiary interests in real estate
9.

¥80,689¥56,756¥32,089,499

Income Taxes
MFLP-REIT is subject to Japanese corporate income taxes on its taxable income. The tax effects of temporary differencesthat give rise to a significant portion of the deferred tax assets and liabilities as of January 31, 2017 are as follows:(Thousands of yen)
1st period(As of January 31, 2017)
Deferred tax assets:
Non-deductible accrued enterprise tax¥

27

Total deferred tax assets¥

27

Net deferred tax assets¥

27- 34 -

Reconciliations between the Japanese statutory tax rate and the effective income tax rate with respect to pre-tax income
reflected in the accompanying statement of income for the fiscal period ended January 31, 2017 are as follows.
1st period(As of January 31, 2017)
Statutory tax rate
Adjustments:

32.31%

Deductible distributions
Other(32.26)0.09

Effective income tax rate after application of tax-effect accounting

0.14%

10. Per Unit Information
The following table summarizes per unit information for the fiscal period ended January 31, 2017.
1st period(From March 4, 2016
to January 31, 2017)
Earnings per unit:¥

Net income per unit (yen)9,017(¥ 4,988)

Weighted average number of units outstanding (unit)

123,102

1st period(As of January 31, 2017)
Net assets per unit (yen)¥ 265,449

Net income per unit is calculated by dividing net income by the daily weighted average number of investment units
outstanding (123,102 units) during the period. In addition, net income per unit using the daily weighted average number ofinvestment units deeming August 2, 2016, the actual starting date of asset management, as the beginning of the fiscal period(222,525 units), is also presented in parentheses. Diluted net income per unit is not stated because there are no dilutive
investment units.
11. Leases
The future minimum rental revenues from tenants subsequent to each fiscal period end under non-cancelable operatingleases of properties are as follows.
(Thousands of yen)
1st period(As of January 31, 2017)
Due within one year¥

Due after one year

4,365,595
13,458,267

Total

¥

- 35 -

17,823,863

12. Transactions with Related Parties
Significant transactions and balances with related parties for the fiscal period ended January 31, 2017 are as follows:

Classification

Major
corporateunitholder

Name ofcompany

Address

Statedcapital(millionsof yen)Type ofbusiness

MitsuiChuo-ku,Real estate
Fudosan Co.,¥ 339,766
Tokyo
business
Ltd.

Mitsui
Fudosan
Logistics
Chuo-ku,
REIT
TokyoManagement
Co., Ltd.

Investment
200 managementbusiness

Mitsui
FudosanChuo-ku,
Building
Tokyo
Management
Co., Ltd.

Property
490 managementbusiness

Mitsui
FudosanChuo-ku,
Facilities Co., Tokyo
Ltd.

% of
votingBusinessrights relationship(owned)Logistics
management
fee
Other
propertyLogistics
related12.90% management
expensesoutsourcing
Rent
income, etc.

-

Inzai Tokutei
Mokuteki
KaisyaKuki Tokutei
Mokuteki
KaisyaSakai
Chikkoyawata
Tokutei
Mokuteki
KaisyaDaikoku
Godo Kaisya

Osaka-shi,
Osaka

Account

Balance at
end ofperiod(thousandsof yen)Operatingaccounts
payable¥ 14,856

Operatingaccounts
receivable

26,252¥ 55,762

993

80,689Purchase ofreal estate

32,089,499--

Payment oforganizer
fee

50,000--408,552

Accounts
payable237,360

325 Operating
accounts
payable13,992

999

Assetmanagement
Asset
outsourcing managementfee (Notes 2 and
3)

Property
490 managementbusiness--

Subsidiaryof major
corporateunitholder
Mitsui
FudosanFacilities
West Co.,
Ltd.

Type oftransaction

Transaction
amount(thousandsof yen)Property
200 managementbusiness-

Building
Building management
feemanagement
outsourcing Repairs andrelated work
Building
management
fee
Building
Repairs andmanagement related work
outsourcing
Otherpropertyrelated
expenses
Building
management
fee
Building
Repairs andmanagement related work
outsourcing
Otherpropertyrelated
expenses

52,29314,802

Operatingaccounts
payable15,069Operatingaccounts
payable

1,286

7,528

956

7,161
192

118

Chuo-ku,
Tokyo

853

Real estatebusiness--

Purchase ofreal estate

2,303,661

Operatingaccounts
payableChuo-ku,Tokyo

31

Real estatebusiness--

Purchase ofreal estate

13,128,185--

Chuo-ku,
Tokyo

1,661

Real estatebusiness--

Purchase ofreal estate

4,750,582--

Chuo-ku,Tokyo

3

Real estatebusiness--

Purchase ofreal estate

10,585,606--(Note 1) Consumption taxes are not included in the transaction amounts but included in the balances at the end of the period.
(Note 2) Methods to determine terms and conditions of transactions(1) Asset management fee is in accordance with terms set forth in the Articles of Incorporation of MFLP-REIT.
(2) Other terms and conditions of these transactions are determined based on the prevailing market price.
(Note 3) The asset management fee above includes 188,775 thousand yen of a management fee for property acquisitions included in the book valueof real estate, etc. individually.

- 36 -

13. Segment and Related Informationa. Segment information
Segment information has been omitted as MFLP-REIT engages in a single segment of the real estate leasing business.
b. Related information(1) Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statement of income.
(2) Information by geographical area(i) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of thetotal operating revenues on the statement of income.
(ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheet.
(3) Information on major tenant

Tenant nameOperating revenues

Related segment

Hitachi Transport System, Ltd.

(Note)

Real estate leasing business

Sun Toshi Tatemono Kabushiki Kaisha(Note)

Real estate leasing business

DAIWA CORPORATION, Ltd.

(Note)

Real estate leasing business(Note) Figures are not disclosed as the permission from the tenants has not been granted.

14. Significant Subsequent Events
Not applicable.
***- 37 -**