7th Fiscal Period
Asset Management Report

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

From: August 1, 2019
To: January 31, 2020

I.

To Our Unitholders
Mitsui Fudosan Logistics Park Inc. (MFLP-REIT), which listed on the Tokyo Stock Exchange Real Estate Investment Trust (REIT)
Market on August 2, 2016, has ended its 7th fiscal period in January 2020 with smooth sailing.
I would like to convey my sincere appreciation to you, our unitholders, for your continued support of MFLP-REIT.
The difficult situation in the Japanese economy is expected to continue due to the impact of the spread of the novel coronavirus
disease (COVID-19) in Japan and overseas. Furthermore, the outlook of the economy depends on when the spread subsides and themagnitude of the impact on the Japanese and global economy. However, it is believed that the Japanese economy will improve,
supported by accommodative financial conditions and economic measures by the government, in addition to the expectation thatpent up demand will be actualized and production will recover after the impact of the spread of COVID-19 subsides in Japan andoverseas.
In the logistics market, we do not currently see any significant alterations. Furthermore, with the 3PL business, which specializes
in outsourced logistics services, the scale of e-commerce markets and the aggregated needs of delivery and logistics bases on an
expansionary trend, we believe that the demand for advanced logistics facilities is extremely stable. However, we are thoroughly
observing the impact of COVID-19, which includes economic and societal trends, financial and real estate market trends, etc.
Going forward, I ask our unitholders for their continued support and cooperation, as MFLP-REIT will continue its operation withthe aim of boosting unitholder value.

-2-II. Asset Management Report
1. Overview of Asset Management(1) Management and other performance highlights of the investment corporation
7th period
6th period
5th period
3rd period
4th period(From August 1, (From February (From August 1,(From August 1,(From February
2019
1, 201920182017
1, 2018
to January 31, to July 31, 2019) to January 31,
to January 31,
to July 31, 2018)
2020)
2019)
2018)

Fiscal period(millions of yen)

5,064

4,969

3,280

3,148

2,629

(millions of yen)

[5,064][4,969][3,280][3,148][2,629](millions of yen)

2,748

2,650

1,720

1,650

1,390

(millions of yen)

[2,175][2,134][1,338][1,306][1,086]

Operating income(millions of yen)

2,315

2,318

1,560

1,498

1,239

Ordinary income(millions of yen)

2,238

2,203

1,520

1,445

1,185

Net income(millions of yen)

2,237

2,202

1,519

1,444

1,184

Total assets(millions of yen)

157,023

160,681

104,591

100,250

79,868(%)[(2.3)][53.6][4.3][25.5][1.3](millions of yen)

109,060

109,284

73,39073,40359,434[(0.2)][48.9][(0.0)][23.5][(0.0)](millions of yen)

42,90046,80028,00024,00018,000(millions of yen)

106,822

107,081

71,87071,95858,250(units)379,000

379,000

262,774

262,774

224,000(yen)

287,758

288,349

279,292

279,340

265,334

Net income per unit (Note 4)

(yen)

5,904

5,823

5,783

5,499

5,287

Total amount of distributions(millions of yen)

2,495

2,461

1,604

1,532

1,246

(yen)

6,584

6,496

6,105

5,832

5,563

(yen)

[5,905][5,811][5,783][5,497][5,288]

(yen)

[679]

[685]

[322]

[335]

[275]

(%)

1.4

1.7

1.5

1.6

1.5

[Annualized]

(%)

[2.8]

[3.4]

[2.9]

[3.2]

[3.0]

Return on equity (Note 5)

(%)

2.0

2.4

2.1

2.2

2.0

[Annualized]

(%)

[4.1]

[4.9]

[4.1]

[4.4]

[4.0]

Equity ratio at end of period(Note 5)

(%)

69.5

68.0

70.2

73.2

74.4

[Period-on-period change]

(%)

[1.4]

[(2.2)][(3.1)][(1.2)][(1.0)]

Payout ratio (Note 5)

(%)

100.0

100.0

100.0

100.0

100.0

(days)

184

181

184

181

184

(properties)

16

16

13

12

10

(%)

99.1

100.0

100.0

100.0

100.0

(millions of yen)

1,326

1,314

772

744

595

(millions of yen)

91

86

36

46

10

(millions of yen)

4,215

4,149

2,715

2,587

2,138

(millions of yen)

3,564

3,517

2,292

2,189

1,780

(yen)

9,405

9,280

8,722

8,331

7,947

Operating revenues[Of which: Property leasing
business revenues]
Operating expenses[Of which: Property leasing
business expenses][Period-on-period change]
Net assets[Period-on-period change]
Interest-bearing debt
Unitholders’ capital, net(Note 3)
Total number of investment
units issued and outstanding
Net assets (Net asset value(NAV)) per unit

Distribution per unit
[Of which: Distribution of
earnings per unit][Of which: Distribution inexcess of retained earnings
per unit]
Ratio of ordinary income tototal assets (Note 5)(%)

Other reference information
Number of days of asset
management during period
Numberofinvestment
properties at end of period
Occupancy rate at end of period(Note 6)
Depreciation and amortization(Note 7)
Capital expenditures
Net operating income (NOI)
from property leasing (Note 5)
Funds from operations (FFO)(Note 5)
FFO per unit (Note 5)-3-

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

(%)

27.3

29.1

26.8

23.9

22.5

(Note 1) Operating revenues, etc. do not include consumption taxes.
(Note 2) Unless otherwise specified, any numerical figures are rounded down to the nearest specified unit and percentage figures are rounded to the firstdecimal place.
(Note 3) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 4) “Net income per unit” is calculated by dividing net income by the daily weighted average number of investment units. Diluted net income perunit is not stated because there are no dilutive investment units.
(Note 5) The following formulas are used in calculations.
Ratio of ordinary income tototal assets

Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100

Return on equity

Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100

Equity ratio at end of period

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

Payout ratio

Distribution per unit (excluding distribution in excess of retained earnings) ÷ Net income per unit × 100(rounded to the first decimal place)
Payout ratios for the 4th fiscal period and the 6th fiscal period are calculated by the following formula,because new investment units were issued.
Total amount of distribution (excluding distribution in excess of retained earnings) ÷ Net income × 100

Net operating income (NOI)
from property leasing

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

Funds from operations (FFO)

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

FFO per unit

FFO ÷ Total number of investment units issued and outstanding

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

Interest-bearing debt at end of period ÷ Total assets at end of period × 100(Note 6) “Occupancy rate at end of period” is leased area of the building expressed as a percentage of leasable area of the building of each real estate intrust on each lease agreement concluded for each property as at the end of the fiscal period, rounded to the first decimal place.
(Note 7) “Depreciation and amortization” is depreciation and amortization of investment and rental property.

-4-(2) Developments in management of assets in the fiscal period under reviewi) Brief history of the investment corporation
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March 4,2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer, and listed on the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock
Exchange, Inc. (“Tokyo Stock Exchange”) on August 2, 2016 (Securities Code: 3471). MFLP-REIT held assets totaling 16
properties amounting to a total acquisition price of ¥156.7 billion as at the end of the fiscal period under review.
ii) Investment environment and management performance
The Japanese economy has been on a moderate expansionary trend, with a functioning virtuous cycle from income to spending,despite signs of weakness in exports, production and corporate sentiment, mainly affected by a slowdown in overseas economies,
natural disasters and the spread of infectious diseases. In addition, amid the accommodative financial conditions, capital investment
is expected to continue on a modest increase, with emphasis on urban redevelopment investment, labor-saving investment to address
labor shortage, and R&D investment in growth areas, despite a slowdown of the temporary increase, especially in manufacturing,
due to the impact of a slowdown in overseas economies, as well as the accumulation of capital stock as a deceleration force whenlooking at the long term. As the impact of the consumption tax hike gradually recedes, private consumption is expected to follow a
trajectory of moderate increase amid continued improvement in employment and income situation. In the logistics market, with the
3PL business (Note) specializing in outsourced logistics services expanding in market size and the needs of 3PL providers for rentalof multifunctional and highly-convenient logistics facilities on the rise, the demand for leading-edge logistics facilities is expected
to continue to increase.
Under such circumstances, upholding a basic policy of pursuing maximization of unitholder value by achieving sustainable growththrough formation of a strategic partnership in the logistics facilities business with Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”),
MFLP-REIT has conducted steady management of the 16 properties held as at the end of the fiscal period under review (totalacquisition price of ¥156.7 billion) to maintain an excellent occupancy rate of 99.1% for the entire portfolio as at the end of the
fiscal period under review.
(Note)“3PL business” refers to the third-party logistics business (business of providing logistics services to client companies outsourcing part or all of
their supply chain management functions).

iii) Overview of financing
In the fiscal period under review, MFLP-REIT executed debt financing of ¥400 million (short-term loans payable) in October 2019and ¥1,600 million (short-term loans payable) in November 2019 to repay short-term loans payable, and executed repayments of a
total of ¥5,900 million (short-term loans payable) using funds from part of short-term loans payable procured in the fiscal period
under review and internal reserve arising from depreciation, etc. As a result, at the end of the fiscal period under review, the balanceof interest-bearing debt was ¥42,900 million (short-term loans payable of ¥1,600 million; long-term loans payable of ¥41,300
million) and the ratio of interest-bearing debt to total assets (LTV ratio) was 27.3%.
The following is the rating obtained by MFLP-REIT as at the end of the fiscal period under review.
Credit rating agency

Rating details

OutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Stable-5-iv) Summary of business performance and distributions
Through the management described above, business performance for the fiscal period under review resulted in operating revenuesof ¥5,064 million, operating income of ¥2,315 million, ordinary income of ¥2,238 million, and net income of ¥2,237 million.
In accordance with the distribution policy as defined in the Articles of Incorporation of MFLP-REIT, distributions for the fiscal
period under review shall be subject to application of special provisions for taxation of investment corporations (Article 67-15 of
the Act on Special Measures Concerning Taxation). Based on this, MFLP-REIT declared the distribution of ¥2,237,995,000, whichis the integral multiple of the total number of investment units issued and outstanding (379,000 units) of unappropriated retained
earnings. Accordingly, MFLP-REIT declared distribution of earnings per unit of ¥5,905.
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 ¥257 million, which is the amount almost equivalent to the remaining amount after
subtracting the distribution of earnings of ¥2,237 million from ¥2,495 million or 70% of FFO (Note 2), as return of capital applicable
to distribution reducing unitholders’ capital for tax purposes. Accordingly, MFLP-REIT declared distribution in excess of retained
earnings per unit of ¥679.
(Note 1) In addition to the continuous distributions in excess of retained earnings, in cases where the distribution amount for distribution per unit is expected
to temporarily decline by a certain degree due to such factors as the procurement of funds through the issuance of new investment units, etc., atemporary distribution in excess of retained earnings may be executed in order to standardize the amount of the distribution per unit.
However, from the perspective of continuing to maintain owned assets for a long period of time, in cases where the above distribution of cash is
executed, and where the amount equal to the equivalent of depreciation and amortization for the applicable operating period minus the amount of
the distribution in excess of retained earnings for the applicable operating period falls below the standard amount of capital for building maintenance(Note 3), the distribution in excess of retained earnings will be decreased by a maximum amount that the distribution amount does not fall below
the total equivalent of the distribution of earnings, and this may lead to cases where distribution in excess of retained earnings will not be executed.
In addition, from the perspective of continuing stable financial management, distributions in excess of retained earnings will not be executed incases where the appraisal LTV ratio (Note 4) exceeds 60% in the event that the above distribution of cash is executed.
(Note 2) “FFO” is an acronym for funds from operations and refers to the figure calculated by adding depreciation and amortization of rental properties forthe applicable operating period and loss on retirement of non-current assets to net income (excluding gain (loss) on sales of real estate properties,etc.).
(Note 3) “Standard amount of capital for building maintenance” refers to the “amount equivalent to the capital expenditure amount noted in the Building
Condition Evaluation Report averaged over 12 years,” from which an amount representing six months of capital expenditure is determined and thenmultiplied by two.
(Note 4) Appraisal LTV ratio (%) = A/B × 100 (%)
A = Total interest-bearing debt on the applicable accounts settlement date
B = Total assets on the balance sheet on the applicable accounts settlement date – Amount of book value after depreciation of owned real estate on
the applicable accounts settlement date + Appraisal value of owned real estate on the applicable accounts settlement date-6-

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

Date

Description

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

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

Remarks

Balance

March 4, 2016

Establishment throughprivate placement

600

600

300

300

(Note 2)June 15, 2016

Split of investment units

600

1,200

―

300

(Note 3)

August 1, 2016

Capital increase throughpublic offering

212,800

214,000

55,44555,745(Note 4)

August 29, 2016

Capital increase throughthird-party allotment

10,000224,000

2,605

58,350(Note 5)

April 21, 2017

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

224,000(54)

58,296(Note 6)

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

224,000(45)

58,250(Note 7)38,000262,000

13,49571,745(Note 8)(Note 9)February 1, 2018

Capital increase throughpublic offering

February 28, 2018

Capital increase throughthird-party allotment

774

262,774274

72,020April 23, 2018

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

262,774(61)

71,958 (Note 10)

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

262,774(88)

71,870 (Note 11)

February 1, 2019

Capital increase throughpublic offering

110,700

373,474

33,617

105,488 (Note 12)

February 27, 2019

Capital increase throughthird-party allotment

5,526

379,000

1,678

107,166 (Note 13)―

379,000(84)

107,081 (Note 14)

October 15, 2019

Distribution of cash inexcess of retained
earnings (return ofcapital)―379,000(259)

106,822 (Note 15)

February 3, 2020

Capital increase throughpublic offering

59,000438,000

28,289135,111 (Note 16)

February 27, 2020

Capital increase throughthird-party allotment

3,000

441,000

1,438

136,549 (Note 17)

Distribution of cash in
April 23, 2019

excess of retained earnings(return of capital)-7-

Distribution of cash in
April 23, 2020

excess of retained earnings(return of capital)―

441,000(257)

136,292 (Note 18)(Note 1) “Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(Note 2) MFLP-REIT was established at an issue price of ¥500,000 per unit.
(Note 3) A two-for-one split of investment units was conducted with June 15, 2016 as the effective date.
(Note 4) New investment units were issued through public offering at an issue price of ¥270,000 (paid-in amount of ¥260,550) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 5) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥260,550 per unit.
(Note 6) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 16, 2017, distribution of cash in excess of retained earnings(return of capital) of ¥243 per unit was declared as distribution of cash for the 1st fiscal period (fiscal period ended January 31, 2017), the payoutof which commenced on April 21, 2017.
(Note 7) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2017, distribution of cash in excess of retained earnings(return of capital) of ¥204 per unit was declared as distribution of cash for the 2nd fiscal period (fiscal period ended July 31, 2017), the payout of
which commenced on October 13, 2017.
(Note 8) New investment units were issued through public offering at an issue price of ¥367,581 (paid-in amount of ¥355,139) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 9) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥355,139 per unit.
(Note 10) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2018, distribution of cash in excess of retained earnings(return of capital) of ¥275 per unit was declared as distribution of cash for the 3rd fiscal period (fiscal period ended January 31, 2018), the payoutof which commenced on April 23, 2018.
(Note 11) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 14, 2018, distribution of cash in excess of retained earnings(return of capital) of ¥335 per unit was declared as distribution of cash for the 4th fiscal period (fiscal period ended July 31, 2018), the payout of
which commenced on October 19, 2018.
(Note 12) New investment units were issued through public offering at an issue price of ¥313,986 (paid-in amount of ¥303,680) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 13) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥303,680 per unit.
(Note 14) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 15, 2019, distribution of cash in excess of retained earnings(return of capital) of ¥322 per unit was declared as distribution of cash for the 5th fiscal period (fiscal period ended January 31, 2019), the payoutof which commenced on April 23, 2019.
(Note 15) By resolution of the Board of Directors of MFLP-REIT at its meeting held on September 13, 2019, distribution of cash in excess of retained earnings(return of capital) of ¥685 per unit was declared as distribution of cash for the 6th fiscal period (fiscal period ended July 31, 2019), the payout of
which commenced on October 15, 2019.
(Note 16) New investment units were issued through public offering at an issue price of ¥495,747 (paid-in amount of ¥479,476) per unit mainly for the
purpose of procuring funds for acquisition of new properties.
(Note 17) New investment units were issued with Daiwa Securities Co. Ltd. as the allottee at a paid-in amount of ¥479,476 per unit.
(Note 18) By resolution of the Board of Directors of MFLP-REIT at its meeting held on March 13, 2020, distribution of cash in excess of retained earnings(return of capital) of ¥679 per unit was declared as distribution of cash for the 7th fiscal period (fiscal period ended January 31, 2020), the payoutof which commenced on April 23, 2020.

-8-

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

Fiscal period

7th period(From August 1,
2019
to January 31,
2020)

6th period(From February 1,
2019
to July 31, 2019)

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

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

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

Highest (yen)534,000

396,000

358,000

377,500

387,500

Lowest (yen)395,500

325,500

300,500

320,500

309,500(4) Distribution
The following is the distribution, etc. performance up to the fiscal period under review.
7th period
6th period
5th period
4th period
3rd period(From August 1, (From February (From August 1, (From February (From August 1,
2019
1, 20192018
1, 20182017
to January 31,
to July 31,
to January 31,
to July 31,
to January 31,
2020)
2019)
2019)
2018)
2018)

Fiscal period
Total amount of
unappropriated retained
earnings
Retained earnings
Total amount of distributionof cash[Distribution per unit]
Of which: Total amount of
distribution of earnings[Distribution of earnings perunit]
Of which: Total amount ofreturn of capital[Return of capital per unit]
Of total amount of return ofcapital: Total amount of
distribution from allowancefor temporary difference
adjustment[Of return of capital per unit:
Distribution from allowancefor temporary difference
adjustment per unit]
Of total amount of return ofcapital: Total amount of
distribution from distribution
reducing unitholders’ capitalfor tax purposes[Of return of capital per unit:
Distribution from distribution
reducing unitholders’ capitalfor tax purposes](Note)(thousandsof yen)2,238,074

2,202,626

1,519,739

1,444,484

1,184,529

79

257

117

16

17

2,495,336

2,461,984

1,604,235

1,532,497

1,246,112(yen)[6,584][6,496][6,105][5,832][5,563](thousandsof yen)2,237,995

2,202,369

1,519,622

1,444,468

1,184,512(yen)[5,905][5,811][5,783][5,497][5,288](thousandsof yen)257,341

259,615

84,61388,02961,600

(yen)

[679]

[685]

[322]

[335]

[275]

(thousandsof yen)

―

―

―

―

―

(yen)

―

―

―

―

―

(thousandsof yen)257,341

259,615

84,61388,02961,600

(yen)

[679]

[685]

[322]

[335]

[275]

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

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

ii) Internal growth strategy“Stable management using the Platform (business foundation) and client network of the Mitsui Fudosan Group”
MFLP-REIT aims for stable management by utilizing the Platform (business foundation) and client network that the Mitsui FudosanGroup has developed over years as a comprehensive real estate company.
iii) Financial strategy“Financial and cash management with an emphasis on stability and efficiency”
MFLP-REIT will manage its finances stably, including funds raised through the issuance of new investment units and borrowings,
and at the same time it will aim to secure both stable distribution levels and efficient cash management for distributions throughcontinuous distributions in excess of retained earnings (return of capital) based on cash flow (FFO).
(6) Significant subsequent eventsi) Issuance of new investment units
Regarding the issuance of new investment units decided in the meetings of the Board of Directors of MFLP-REIT held on January
8, 2020 and January 22, 2020, as stated below, payment for the issuance of said units was completed through public offering on
February 3, 2020 and through a third-party allotment on February 27, 2020.
As a result, the total investment amount (net) is ¥136,549,737,748, and there are 441,000 units of total number of investment units
issued and outstanding.
a.

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

59,000 units (Domestic: 35,400 units, Overseas: 23,600 units)¥495,747 per unit

Total amount of issue price:Amount to be paid in (paid-in amount):¥29,249,073,000¥479,476 per unit

Total amount to be paid in (total paid-in amount):
Payment date:¥28,289,084,000
February 3, 2020

- 10 -

b.
Issuance of new investment units through a third-party allotment (third-party allotment)
Number of new investment units to be issued:
3,000 units
Amount to be paid in (paid-in amount):
Total amount to be paid in (total paid-in amount):¥479,476 per unit
¥1,438,428,000

Payment date:
Allottee:February 27, 2020
Daiwa Securities Co. Ltd.

ii) Acquisitions of properties
MFLP-REIT acquired the trust beneficiary interests for the following assets on February 5, 2020, March 2, 2020 and April 6, 2020
(3 properties inclusive of additional acquisition; total amount of acquisition price is ¥48,380 million).
Acquisition priceCategory
Property no.
Property nameLocation(Note 1)(millions of yen)i) 16,710
MFLP Sakai
L-8
Sakai-shi, Osakaii) 2,390(Note 2, 3)
Total 19,100
MFLP Prologis Park
14,800
L-16
Kawagoe
Kawagoe-shi, Saitama(50% quasi co(Note 4)ownership interest)
Logistics facilities

L-17

MFLP Hiroshima I(Note 3)Hiroshima-shi,
Hiroshima

14,480Acquisition datei) February 5, 2020ii) April 6, 2020
February 5, 2020

March 2, 2020

(Note 1) “Acquisition price” is the purchase price of each trust beneficiary interest as set forth in each agreement for sale and purchase of trust beneficiaryinterest for the assets acquired, rounded down to the nearest million yen. The transaction price does not include consumption tax and local
consumption tax or the various costs required in the acquisition. The transaction price does not include consumption tax and local consumption tax
or the various costs required in the acquisition.
(Note 2) Regarding the “Acquisition price” and “Acquisition date” for “MFLP Sakai,” the additionally acquired interest that was acquired on February 5,2020 is described in (i), and the interest to be acquired additionally on April 6, 2020 is described in (ii).
(Note 3) The sale and purchase agreements relating to “MFLP Sakai” (10% quasi co-ownership interest) and “MFLP Hiroshima I” fall under the definitionof “forward commitments, etc.” (as defined as “a postdated sales contract under which payment and delivery shall be made at least one month after
the conclusion of the contract, or any other contract similar thereto” stated in the “Comprehensive Guidelines for Supervision of Financial
Instruments Business Operators, etc.” established by the Financial Services Agency).
(Note 4) For “MFLP Prologis Park Kawagoe,” “Acquisition price” is the prorated figure equivalent to the quasi co-ownership interest in this property that
MFLP-REIT acquired (50%).

- 11 -

iii) Borrowing of funds
MFLP-REIT has borrowed the following funds to apply to part of the acquisition funds and related expenses for the real estate trust
beneficiary interests in the above ii) Acquisitions of properties, as well as to the repayment of loans.
Borrowing
Repayment
LenderamountInterest rate
Drawdown date Repayment datemethod(millions of yen)
Base rate (JBA 1The Bank ofmonth yen TIBOR)
March 2,
November 30,
BulletFukuoka,
2,500+0.035%2020
2020
repayment
Ltd.
(Note 1)
Sumitomo
Base rate (JBA 3Mitsui Trustmonth yen TIBOR)
March 2,
Bullet2,000
June 2, 2020Bank,
+0.035%2020
repayment
Limited(Note 2)

UnsecuredNon-guaranteed

MUFG Bank,Ltd.
MUFG Bank,Ltd.
ShinkinCentral Bank
The
Norinchukin
Bank
Shinsei Bank,
LimitedSumitomo
Mitsui
Banking
Corporation
Sumitomo
Mitsui
Banking
Corporation
Sumitomo
Mitsui Trust
Bank,
LimitedThe
Yamaguchi
Bank, Ltd.
Mitsui
Sumitomo
Insurance
Company,
LimitedSumitomo
Life
Insurance
Company
The Chiba
Bank, Ltd.
The 77 Bank,Ltd.
The Bank ofFukuoka,Ltd.
MizuhoBank, Ltd.
Mizuho Trust& BankingCo., Ltd.
Total

Collateral

UnsecuredNon-guaranteed

February 5,
2020

February 5,
2027

Bulletrepayment

UnsecuredNon-guaranteed

February 5,
2020
February 5,
2020

February 5,
2030
February 5,
2029

Bulletrepayment
Bulletrepayment

UnsecuredNon-guaranteed
UnsecuredNon-guaranteed

0.3360%February 5,
2020

February 7,
2028

Bulletrepayment

UnsecuredNon-guaranteed

800

0.3809%February 5,
2020

February 5,
2029

Bulletrepayment

UnsecuredNon-guaranteed

1,700

0.2000%March 2,2020

March 4,2024

Bulletrepayment

UnsecuredNon-guaranteed

1,700

0.3723%

March 2,2020

March 4,2030

Bulletrepayment

UnsecuredNon-guaranteed

800

0.1059%March 2,2020

March 3,2025

Bulletrepayment

UnsecuredNon-guaranteed

900

0.3723%

March 2,2020

March 4,2030

Bulletrepayment

UnsecuredNon-guaranteed

800

0.1836%

March 2,2020

March 2,2027

Bulletrepayment

UnsecuredNon-guaranteed

800

0.2182%

March 2,2020

March 2,2028

Bulletrepayment

UnsecuredNon-guaranteed

500

0.1836%

March 2,2020

March 2,2027

Bulletrepayment

UnsecuredNon-guaranteed

900

0.3723%

March 2,2020

March 4,2030

Bulletrepayment

UnsecuredNon-guaranteed

1,800

0.4942%

April 6 2020

April 8 2030

Bulletrepayment

UnsecuredNon-guaranteed

1,200

0.4942%

April 6 2020

April 8 2030

Bulletrepayment

UnsecuredNon-guaranteed

500

0.4942%

April 6 2020

April 8 2030

Bulletrepayment

UnsecuredNon-guaranteed

21,100

―

―

―

―

―

800

0.2385%800

0.4272%1,600

0.3809%1,000(Note 1) The first payment date is April 2, 2020, and will be the 2nd of every month and the repayment date (in the case this is not a business day, thefollowing business day). The base rate used for the calculation period of interest to be paid on the payment date is JBA 1-month yen TIBOR
published by JBA TIBOR Administration as of two business days prior to the previous payment date (however, drawdown date for the first time)- 12 -

of each payment date. However, in the case that interest calculation period is less than 1 month, it will be the base rate corresponding to theapplicable period calculated based on the method set forth in the contract.
(Note 2) The payment date is the repayment date The base rate used for the calculation period of interest to be paid on the payment date is JBA 3-month yen
TIBOR published by JBA TIBOR Administration as of two business days prior to the drawdown date. Please refer to the JBA TIBOR Administration
website (http://www.jbatibor.or.jp/rate/) for JBA yen TIBOR.

- 13 -

2. Overview of the Investment Corporation(1) Status of investments in capital
7th period(January 31,
2020)

6th period(July 31, 2019)

5th period(January 31,
2019)

4th period(July 31, 2018)

3rd period(January 31,
2018)(units)8,000,000

8,000,000

8,000,000

8,000,000

8,000,000

Fiscal period
Total number ofinvestment units
authorized
Total number ofinvestment units issued
and outstanding
Unitholders’ capital, net(Note)(units)379,000

379,000

262,774

262,774

224,000(millions ofyen)

106,822

107,081

71,87071,95858,250

Number of unitholders(unitholders)

6,680

8,122

6,570

7,135

5,073

(Note)“Unitholders’ capital, net” is the amount of “Unitholders’ capital” less “Deduction from unitholders’ capital.”(2) Major unitholders
Of the unitholders as of January 31, 2020, the following are the top ten unitholders in terms of investment unit-holding ratio.
Number ofinvestment
units owned(units)Number of investment units owned
expressed as a percentage of total
number of investment units issued
and outstanding (%)

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

77,973

20.57

Japan Trustee Services Bank, Ltd. (trust account)

46,74812.33

Mitsui Fudosan Co., Ltd.

28,900

7.62

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

12,797

3.37

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

11,737

3.09

SSBTC Client Omnibus Account

7,374

1.94

The Chugoku Bank, Limited

6,168

1.62

State Street Bank West Client - Treaty 505234

4,170

1.10

SMBC Nikko Securities Inc.

4,059

1.07

The Hokkoku Bank, Ltd.

4,030

1.06

203,956

53.81

Name

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

- 14 -

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

Position

Executive director

Name

Key concurrently-held position, etc.

Masayuki Isobe

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

―

2,400

Izuru Goto

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

1,500

Tadao Toyoshima

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

1,500

―

10,000Supervisory director

Independent auditor KPMG AZSA LLC(Note 1) None of the executive director or supervisory directors own MFLP-REIT investment units in their own name or in the name of others.
(Note 2) Supervisory directors may be directors of other corporations other than those stated above, but none of them, including those above, have any
interest in MFLP-REIT.
(Note 3) The amount for the independent auditor represents the amount payable as compensation for the audit for the fiscal period under review, plus thecompensation for the audit of English financial statements (¥2,200 thousand).

ii) Policy for deciding on dismissal and refusal of reappointment of the independent auditor
Decisions are made at a meeting of the Board of Directors of MFLP-REIT by taking into account the various circumstances in acomprehensive manner.
(4) Asset management company, custodian, and general administrators
The following are the asset management company, custodian and general administrators as of January 31, 2020.
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)Reiwa Accounting Holdings Co., Ltd.

General administrator (tax payment)

Reiwakaikeisha Tax Corporation- 15 -

3. Status of Assets under Management of the Investment Corporation(1) Composition of assets of the investment corporation
7th period(As of January 31, 2020)
Type of asset

Use

Geographic classification(Note 1)

6th period(As of July 31, 2019)

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

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

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

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

107,085

68.2

107,851

67.1

Kansai area

4,253

2.7

4,290

2.7

Other areas

29,161

18.6

29,485

18.4

Subtotal

140,500

89.5

141,627

88.1

Tokyo metropolitan area

12,026

7.7

12,133

7.6

Kansai area

―

―

―

―

Other areas

―

―

―

―

Subtotal

12,026

7.7

12,133

7.6

Real estate in trust total

152,526

97.1

153,761

95.7

Deposits and other assets

4,496

2.9

6,920

4.3

Total assets

157,023100.0

160,681

100.0

Tokyo metropolitan area
Logistics
facilities

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

- 16 -

(2) Major assets held
The following summarizes the assets held by MFLP-REIT as of January 31, 2020.

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

Leasable area(m²)
(Note 1)

Leased area(m²)
(Note 2)

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

Main use

GLP/MFLP Ichikawa
Shiohama(Note 4)

15,04750,81344,50987.6

8.8

Logistics
facilities

MFLP Kuki

11,84367,92567,925100.0

9.4

Logistics
facilities

MFLP Yokohama
Daikoku(Note 4)9,770

47,92947,929100.0

7.0

Logistics
facilities

MFLP Yashio

9,284

39,692

39,692100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi

7,426

40,95840,958100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Funabashi
Nishiura

6,656

31,03431,034100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Kashiwa

6,000

31,291

31,291100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Sakai(Note 4)

4,253

22,42922,429100.0

3.3

Logistics
facilities

MFLP Komaki

7,954

40,60540,605100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Hino(Note 4)

12,38046,80146,801

100.0

7.6

Logistics
facilities

MFLP Hiratsuka

6,896

33,05533,055100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Tsukuba

Existing
Existingbuilding: 37,938 building: 37,938
8,792
Annex building: Annex building:
25,60025,600100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Inazawa

15,99768,922

68,922100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Atsugi II

12,98748,03248,032100.0

Not disclosed(Note 5)

Logistics
facilities

MFLP Fukuoka I

5,209

32,21632,216100.0

Not disclosed(Note 5)

Logistics
facilities

MFIP Inzai

12,026

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Not disclosed(Note 5)

Industrial realestate- 17 -

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

152,526

Leasable area(m²)
(Note 1)

Leased area(m²)
(Note 2)Not disclosed(Note 5)

Not disclosed(Note 5)

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

99.1

Main use

100.0(Note 1) “Leasable area” is the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable
based on the lease agreement or floor plan, etc. for such building as of January 31, 2020, and does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.
(Note 2) “Leased area” is the total leased area rounded down to the nearest whole number presented in the lease agreements for buildings in the portfolio
assets of MFLP-REIT as of January 31, 2020 (Excluding lease agreements concerning shops, vending machines, photovoltaic power generation
facilities and parking lots. Lease agreements for said buildings hereinafter referred to as “Subject Lease Agreements” in (B)). If a master leaseagreement has been executed for each portfolio asset held by MFLP-REIT as of January 31, 2020, the total leased area represents the sum total of
the area that is actually leased based on the Subject Lease Agreement signed with end-tenant rounded down to the nearest whole number. Totalleased area is calculated based on the assumption that the subject property is actually leased if the Subject Lease Agreement has been executed asof January 31, 2020 even if there is no occupancy / delivery relating to the subject property as of January 31, 2020.
(Note 3) “Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for each property held by MFLP-REIT as of January 31, 2020, rounded to the first decimal place. Occupancy rates for the total section
are the share of the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.
(Note 4) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFLP Hino,” leasable area and leased area are theprorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT holds as of January 31, 2020 (50%, 50%, 20% and25%, respectively).
(Note 5) Not disclosed, because consent has not been obtained from the lessee.

- 18 -

(3) Real estate assets in portfolio
The following summarizes the assets held by MFLP-REIT as of January 31, 2020.

Name of real estate,
etc.

Location

Form of ownership

Leasable area(m²)
(Note 1)

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

GLP/MFLP Ichikawa
Real estate trust
1-6-3 Shiohama, IchikawaShiohama
beneficiaryshi, Chiba(Note 3)interests

50,813

17,90015,047MFLP Kuki

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

67,925

14,30011,843

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

47,92910,9009,770

MFLP Yashio

99-1 Tsubutakita,
Minamiushiroya, Yashioshi, Saitama

Real estate trust
beneficiaryinterests

39,692

11,1009,284

MFLP Atsugi

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

40,958

9,140

7,426

MFLP Funabashi
Nishiura

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

Real estate trust
beneficiaryinterests

31,034

7,890

6,656

MFLP Kashiwa

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

Real estate trust
beneficiaryinterests

31,291

7,110

6,000

MFLP Sakai(Note 3)

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

22,429

4,760

4,253

MFLP Komaki

Real estate trust
2020-1 Higashimae, Honjo,
beneficiary
Komaki-shi, Aichi
interests

40,605

8,570

7,954

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

Real estate trust
beneficiaryinterests

46,801

12,60012,380MFLP Hiratsuka

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

Real estate trust
beneficiaryinterests

33,055

7,150

6,896

MFLP Tsukuba

3-35-2 and 3-35-3,
Real estate trust
Shihogaoka, Tsukubamirai- beneficiaryshi, Ibaraki
interests

building: 37,938
Annex building:
25,60010,1008,792

MFLP Inazawa

2-1 Okudaosawa-cho,Inazawa-shi, Aichi

Real estate trust
beneficiaryinterests

68,922

16,50015,997MFLP Atsugi II

84-1 Ishida, Isehara-shi,
Kanagawa

Real estate trust
beneficiaryinterests

48,032

13,50012,987MFLP Fukuoka I

Real estate trust
16-10 Shinbaru, Sue-machi,
beneficiary
Kasuya-gun, Fukuoka
interests

32,216

5,430

5,209

Logistics facilities subtotal

665,246

156,950

140,500- 19 -

Existing

Name of real estate,
etc.

MFIP Inzai

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

Location

Form of ownership

Leasable area(m²)
(Note 1)2-101-14 Izumino, Inzaishi, Chiba

Real estate trust
beneficiaryinterests

Not disclosed(Note 4)

12,80012,026

Industrial real estate subtotal

Not disclosed(Note 4)

12,80012,026Total

Not disclosed(Note 4)

169,750

152,526(Note 1) “Leasable area” is the total floor area (rounded down to the nearest whole number) of each asset held by MFLP-REIT that is deemed to be leasable
based on the lease agreement or floor plan, etc. for such building as of January 31, 2020, and does not include the leased area indicated in the leaseagreements concerning shops, vending machines, photovoltaic power generation facilities, parking lots, nursery centers and the like.
(Note 2) “Appraisal value at end of period” is the appraisal value as of the valuation date of January 31, 2020 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 “MFLP Hino,” leasable area, appraisal value at end of
period, and book value at end of period are the prorated figures equivalent to the quasi co-ownership interest in each property that MFLP-REIT
holds as of January 31, 2020 (50%, 50%, 20% and 25%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

- 20 -

The following is the status of leasing of real estate, etc. held by MFLP-REIT.
7th period(From August 1, 2019 to January 31, 2020)

Name of real estate, etc.

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

6th period(From February 1, 2019 to July 31, 2019)

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

GLP/MFLP Ichikawa
Shiohama (Note 3)

5

87.6

447

8.8

5

100.0

489

9.9

MFLP Kuki

3

100.0

475

9.4

3

100.0

479

9.6

MFLP Yokohama Daikoku(Note 3)

5

100.0

352

7.0

5

100.0

351

7.1

MFLP Yashio

2

100.0

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

100.0

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

MFLP Atsugi

1

100.0

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

100.0

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

MFLP Funabashi Nishiura

1

100.0

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

100.0

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

MFLP Kashiwa

1

100.0

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

100.0

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

MFLP Sakai(Note 3)

8

100.0

3.3

8

100.0

MFLP Komaki

1

100.0

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

100.0

MFLP Hino(Note 3)

16

100.0

16

100.0

MFLP Hiratsuka

Not disclosed(Note 4)100.0

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

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

MFLP Tsukuba

1

100.0

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

100.0

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

MFLP Inazawa

2

100.0

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

100.0

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

MFLP Atsugi II

2

100.0

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

100.0

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

MFLP Fukuoka I

1

100.0

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

100.0

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

Logistics facilities subtotal

Not disclosed(Note 4)99.1

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

Not disclosed Not disclosed(Note 4)(Note 4)MFIP Inzai

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

Industrial real estate subtotal

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

Not disclosed(Note 4)

99.1

164

385

5,064

7.6

100.0

Not disclosed(Note 4)

100.0

165

3.3

Not disclosed Not disclosed(Note 4)(Note 4)
379

4,969

7.6

100.0

(Note 1) “Total number of tenants” is the total number of the lease agreements for buildings in the portfolio assets held by MFLP-REIT as of each accounts
settlement date. If a master lease agreement has been executed for each portfolio asset held by MFLP-REIT as of each accounts settlement date, itis the total number of the end-tenants. However, if one lessee enters into a multiple number of the Subject Lease Agreements for the same buildingof assets held by MFLP-REIT as of each accounts settlement date, the number of tenants is calculated on the assumption that such lessee is one- 21 -

party.
(Note 2) “Occupancy rate” is the share of the leased area of the buildings in the leasable area for said buildings in the real estate in trust in lease agreements
concluded for each property held by MFLP-REIT at the end of each accounting period, rounded to the first decimal place. Occupancy rates for the
total section are the share of the total leased area of the properties of the total leasable area of said properties, rounded to the first decimal place.
(Note 3) For “GLP/MFLP Ichikawa Shiohama,” “MFLP Yokohama Daikoku,” “MFLP Sakai” and “MFLP Hino,” property leasing business revenues andfigures expressed as a percentage of total property leasing business revenues are the prorated figures equivalent to the quasi co-ownership interestin each property that MFLP-REIT holds as of each accounts settlement date (50%, 50%, 20% and 25%, respectively).
(Note 4) Not disclosed, because consent has not been obtained from the lessee.

(4) Schedule of renewable energy power generation facilities
Not applicable.
(5) Schedule of rights to operate public facilities, etc.
Not applicable.
(6) Status of other assets
Trust beneficiary interests that have real estate as the main assets in trust, etc. are listed all at once in “(3) Real estate assets in
portfolio” presented earlier in this document, and there are no main specified assets invested by MFLP-REIT other than those listed
there in the portfolio as of January 31, 2020.
i) Itemization of investment securities portfolio assets
Not applicable.
ii) Table of status of contract amount, etc. and fair value of specified transactions
Not applicable.
(7) Status of holding of assets by country and region
Not applicable, because there are none in countries and regions other than Japan.

- 22 -

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

Location

GLP/MFLP
Ichikawa Shiohama

Ichikawa, Chiba

Replacement ofelectric power meter

GLP/MFLP
Ichikawa Shiohama

Ichikawa, Chiba

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Kuki

Kuki, Saitama

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yashio

Yashio, Saitama

MFLP Sakai

Sakai, Osaka

MFLP Sakai
MFLP Sakai(Note)

PurposeScheduled timeTotalamountAmountpaid
duringperiodTotalamountalready
paid

From April 2020
to May 2020

3

―

―

Replacement of
membrane filters for
septic tank

From July 2020
to August 2020

3

―

―

Installation of bird
netting

From December 2019
to February 2020

4

―

―

In April 2020

5

―

―

From September 2020
to January 2021

4

―

―

From September 2020
to January 2021

3

―

―

From February 2020
to August 2020

49

―

―

From March 2020
to July 2020

9

―

―

In March 2020

8

―

―

Installation of LED
lighting

From May 2020
to June 2020

18

―

―

Exterior wall painting(Section 7)
Installation of
additional security
cameras (3rd stage)
Replacement ofequipment attached tosecurity cameras
Installation of LED
lighting

From July 2020
to December 2020

49

―

―

From September 2020
to November 2020

5

In May 2020

3

―

―

In February 202010

Sakai, Osaka

Replacement of fire
extinguishing system

From May 2020
to June 20203

Sakai, Osaka

Replacement ofelectric power meter

In August 2020

12

Replacement of fire
extinguishing system
Replacement of main
vertical conveyor
chain (Section 1)
Replacement of main
vertical conveyor
chain (Section 2)Exterior wall painting(Section 6)
Installation of
additional security
cameras (2nd stage)
Replacement of headsof foam fire
extinguishing system

For “GLP/MFLP Ichikawa Shiohama” and “MFLP Yokohama Daikoku,” planned construction amount are the prorated figures equivalent to thequasi co-ownership interest in each property that MFLP-REIT holds (50% and 50%, respectively).

- 23 -

(2) Capital expenditures during period
The following summarizes the major construction work falling under capital expenditures conducted during the fiscal period underreview for real estate, etc. held by MFLP-REIT. Capital expenditures in the fiscal period under review amounted to ¥91 million
and, other than this, there was ¥36 million in repair expenses categorized as operating expenses in the fiscal period under review.
Name of real estate,
etc.

Location

MFLP Kuki

Kuki, Saitama

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

MFLP Yokohama
Daikoku

Yokohama, Kanagawa

PurposeReplacement ofequipment for accessmanagement
Exterior wall painting(Section 5)
Installation of
additional security
cameras (1st stage)
Replacement of headsof foam fire
extinguishing system
Repair work in public
open space

Other capital expenditures

Construction amount(millions of yen)
(Note)

From December 2019
to January 2020

5

From July 2019
to December 201949

From September 2019
to December 20197

From October 2019
to November 20198

From October 2019
to December 2019

4
16

Total
(Note)

Period91

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

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

- 24 -

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

7th period(From August 1, 2019 toJanuary 31, 2020)

Asset management fee (Note)

6th period(From February 1, 2019 toJuly 31, 2019)482,669

439,926

Asset custody fee

8,034

5,229

Administrative service fees

20,40017,000

Directors’ compensations

5,400

5,400

Audit fee

9,100

9,100

Other expenses

46,85538,950572,459

515,606

Total(Note) Other than the amount stated above, there is an asset management fee of ¥144,102 thousand associated with a property acquisition
factored into the book value of the properties for the 6th period. There is no applicable fee other than the amount stated above forthe 7th period.

- 25 -

Short-term loans

Category(2) Debt financing status
The following is the status of loans as of January 31, 2020.

LenderMizuho Bank, Ltd.

The Bank of Fukuoka,
Ltd.

BorrowingdateLong-term loans

Sumitomo Mitsui Trust
Bank, Limited

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

Repayment
methodUse

Apr. 5,
2019

2,900

―

0.1060Nov. 29,2019

Bulletrepayment(Note 3)Apr. 22,
2019

1,600

―

0.1086

Oct. 22,2019

Bulletrepayment(Note 3)

Nov. 29,
2019

―

1,600

0.1032

Nov. 30,
2020

Bulletrepayment(Note 3)

July 31,
2019

1,000

―

0.1078Oct. 31,2019

Bulletrepayment(Note 3)

5,500

1,600

Sept. 1,
2016

2,000

2,000

0.2713

Sept. 1,
2022

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.4213

Sept. 1,
2026

Bulletrepayment(Note 3)Mar. 15,
2018

800

800

0.2400Mar. 15,
2022

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2500Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)

Sept. 1,
2016

2,000

2,000

0.3050

Sept. 1,
2023

Bulletrepayment(Note 3)

Sept. 1,
2016

1,500

1,500

0.3813

Sept. 1,
2025

Bulletrepayment(Note 3)Feb. 4,
2019

1,500

1,500

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)

Aug. 2,
2016

400

400

0.1425

Aug. 2,2022

Bulletrepayment(Note 3)

Aug. 2,
2016

1,700

1,700

0.2113

Aug. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

900

900

0.4895

Sept. 15,
2027

Bulletrepayment(Note 3)Feb. 4,
2019

2,000

2,000

0.3687

Aug. 4,2028

Bulletrepayment(Note 3)

Sept. 1,
2016

2,200

2,200

0.1826

Mar. 1,
2023

Bulletrepayment(Note 3)Mar. 15,
2018

800

800

0.2400Mar. 31,
2022

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2500Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.2313Feb. 4,2026

Bulletrepayment(Note 3)

Subtotal

Sumitomo Mitsui
Banking Corporation

Balance atBalance at end
beginning ofof period
period(millions of yen)(millions of yen)Mizuho Bank, Ltd.

MUFG Bank, Ltd.

- 26 -

Remarks

Unsecured
Nonguaranteed

Unsecured
NonguaranteedCategory

LenderMizuho Trust & Banking
Co., LtdLong-term loans

Development Bank ofJapan Inc.

The Bank of Fukuoka,
Ltd.

Nippon Life Insurance
Company

The Norinchukin BankThe Yamaguchi Bank,Ltd.

Mitsui Sumitomo
Insurance Company,
Limited

Borrowingdate

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

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

Repayment
methodUse

Sept. 1,
2016

600

600

0.3237Mar. 1,
2024

Bulletrepayment(Note 3)

Sept. 1,
2016

700

700

0.3425

Sept. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

300

300

0.2188Mar. 15,
2022

Bulletrepayment(Note 3)Mar. 15,
2018

300

300

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.1163Feb. 6,2023

Bulletrepayment(Note 3)Feb. 4,
2019

500

500

0.1475

Feb. 5,2024

Bulletrepayment(Note 3)

Aug. 2,
2016

2,100

2,100

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

Aug. 2,
2016

1,300

1,300

0.2169Feb. 2,2024

Bulletrepayment(Note 3)Mar. 15,
2018

400

400

0.3563Mar. 14,2025

Bulletrepayment(Note 3)Feb. 4,
2019

2,000

2,000

0.3988Feb. 5,2029

Bulletrepayment(Note 3)

Aug. 2,
2016

1,000

1,000

0.3125

Aug. 3,2026

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)

Aug. 4,
2017

500

500

0.2575

Aug. 4,2022

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.2613Mar. 15,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,000

1,000

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.3319Sept. 13,2024

Bulletrepayment(Note 3)Feb. 4,
2019

600

600

0.2313Feb. 4,2026

Bulletrepayment(Note 3)Mar. 15,
2018

600

600

0.3563Mar. 14,2025

Bulletrepayment(Note 3)Feb. 4,
2019

600

600

0.2087

Aug. 4,2025

Bulletrepayment(Note 3)- 27 -

Remarks

Unsecured
NonguaranteedCategory

LenderBorrowingdate

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

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

Repayment
methodUse

Dec. 3,
2018

2,000

2,000

0.2375

Dec. 1,
2023

Bulletrepayment(Note 3)Feb. 4,
2019

1,800

1,800

0.1863Feb. 4,2025

Bulletrepayment(Note 3)

Sumitomo Life
Insurance Company

Dec. 3,
2018

1,000

1,000

0.3975

Dec. 3,2026

Bulletrepayment(Note 3)

The Chiba Bank, Ltd.

Feb. 4,
2019

1,000

1,000

0.2313Feb. 4,2026

Bulletrepayment(Note 3)41,30041,30046,80042,900Remarks

Long-term loans

Shinkin Central Bank

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

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

- 28 -

Unsecured
Nonguaranteed6. Status of Sale and Purchase during Period(1) Status, etc. of sale and purchase of real estate, etc. and asset-backed securities, etc. and infrastructure assets, etc. andinfrastructure-related assets
Not applicable.
(2) Status, etc. of sales and purchases of other assets
Other main assets are generally bank deposits or bank deposits within assets in trust.
(3) Investigation into value, etc. of specified assetsi)Real estate, etc.
Not applicable.
ii) Other
Not applicable.
(4) Status of interested party transactions, etc.
i) Status of sale and purchase transactions with interested parties, etc.
Not applicable.
ii)

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

Logistics management fee

128,965

Building management fee

155,838(Note)Breakdown of transactions with interested parties, etc.
Paid toAmount paid (B)(thousands of yen)

As a percentage
of total amount(B/A)

Mitsui Fudosan Co., Ltd

112,71787.4%

Mitsui Fudosan Facilities Co., Ltd.

101,01464.8%

Mitsui Fudosan Facilities West Co., Ltd.

32,436

20.8%“Interested parties, etc.” refers to stakeholders, etc. of the asset management company with which MFLP-REIT has concluded an asset managementagreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations and Article 26, Paragraph
1, Item 27 of the Rules on Management Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.

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

Amount(thousands of yen)

Mitsui Fudosan Co., Ltd.

Repairs and related work, etc.

2,984

Mitsui Fudosan Building Management Co., Ltd.

Repairs and related work, etc.

21,843

Mitsui Fudosan Facilities Co., Ltd.

Repairs and related work, etc.

26,710Mitsui Fudosan Facilities West Co., Ltd.

Repairs and related work, etc.

5,592iv) Leasing transaction, etc.
Leasing transactions with interested parties, etc. are as follows:
Name of lessee

Category

Mitsui Fudosan Co., Ltd.

Rent income, etc.

Rental revenues(thousands of yen)
133,640(5) Status, etc. of transactions with the asset management company pertaining to operations of concurrent business engaged
in by the asset management company
Not applicable, because the asset management company (Mitsui Fudosan Logistics REIT Management Co., Ltd.) does not engage
in any type I financial instruments business, type II financial instruments business, real estate brokerage or specified joint real estate
venture as a concurrent business.

- 29 -

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

- 30 -

8. Other(1) Noticei) General meeting of unitholders
The 3rd General Meeting of Unitholders of MFLP-REIT was held during the fiscal period under review. The following summarizes
the key proposals approved at the General Meeting of Unitholders.
Approval date
October 29, 2019

Item
Appointment of Directors

Summary
Directors of MFLP-REIT were reelected at
the General Meeting of Unitholders.

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

Item

Summary
MFLP-REIT canceled the accounting work
agreement concluded between
Heiseikaikeisha Tax Corporation upon

September 13, 2019Conclusion of accounting work agreement

mutual consent and has entrusted
administrative work relating to accountingof MFLP-REIT to Reiwa Accounting
Holdings Co., Ltd.
MFLP-REIT canceled the tax-payment
work agreement concluded between
Heiseikaikeisha Tax Corporation upon

September 13, 2019Conclusion of tax-payment work agreement

mutual consent and has entrusted
administrative work relating to tax paymentof MFLP-REIT to Reiwakaikeisha Tax
Corporation.
Concerning the issuance of new investment
units and secondary offering of investment

January 22, 2020

Conclusion of new investment units
underwriting agreement, etc.

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

(Note)The underwriters for domestic offering are Daiwa Securities Co. Ltd., Nomura Securities Co., Ltd., SMBC Nikko Securities Inc. Mizuho Securities Co.,
Ltd. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Okasan Securities Co., Ltd. For overseas offering, the underwriters are Daiwa CapitalMarkets Europe Limited, Nomura International plc, SMBC Nikko Capital Markets Limited, Mizuho International plc, Morgan Stanley & Co. Internationalplc, and Merrill Lynch International(2) Rounding of monetary and percentage figures
Unless otherwise specified, monetary figures are rounded down and percentage figures are rounded to the nearest specified unit inthis document.
(3) Disclosure pertaining to corporation holding overseas real estate
Not applicable.
(4) Disclosure pertaining to real estate of corporation holding overseas real estate
Not applicable.

- 31 -

Mitsui Fudosan Logistics Park Inc.
Balance Sheets

AssetsCurrent assets
Cash and deposits (Notes 3 and 4)
Cash and deposits in trust (Notes 3 and 4)
Operating accounts receivable (Note 12)
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property and equipment (Note 5)
Buildings in trust
Structures in trust
Machinery and equipment in trust
Vehicles and transport equipment in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Less: accumulated depreciation
Total property and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax assets (Note 9)
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses (Note 2)
Total deferred assets
Total assets

7th period(As of January 31, 2020)(Thousands of yen)
6th period(As of July 31, 2019)

¥

¥

¥

- 32 -

877,488
3,281,157
145,158
26,727
1,886
4,332,418

1,085,379
3,074,601
284,297
25,701
2,261,176
14,201
6,745,357

82,304,372
2,855,278
2,985,372
2,642
5,737
70,241,485
20,416(5,868,484)
152,546,820

82,222,802
2,847,469
2,984,550
2,642
4,222
70,241,485(4,541,488)
153,761,683

3,756
3,756

4,876
4,876

10,00054,1749
1,050
65,233
152,615,811

10,00065,09216
1,050
76,159
153,842,719

74,891
74,891
157,023,120

93,614
93,614
160,681,690¥

Mitsui Fudosan Logistics Park Inc.
Balance Sheets

Liabilities
Current liabilities
Operating accounts payable (Note 12)
Short-term loans payable (Notes 4 and 7)
Accounts payable (Note 12)
Accrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable (Notes 4 and 7)
Tenant leasehold and security deposits in trust (Note 4)
Total non-current liabilities
Total liabilities
Net assets (Notes 6 and 10)
Unitholders’ equity
Unitholders’ capital
Units authorized: 8,000,000 units as of January 31, 2020 andJuly 31, 2019
Units issued and outstanding: 379,000 units as of January 31,2020 and July 31, 2019
Deduction from unitholders’ capital
Unitholders’ capital (net)
Retained earnings
Total unitholders’ equity
Total net assets (Notes 6 and 10)
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

- 33 -

7th period(As of January 31, 2020)(Thousands of yen)
6th period(As of July 31, 2019)

¥

¥

¥

266,060
1,600,000
580,570
312
791
340,592
851,554114
3,639,996

228,467
5,500,000
502,181312
944
849,898
114
7,081,918

41,300,000
3,022,824
44,322,824
47,962,821

41,300,000
3,015,304
44,315,304
51,397,223

107,416,211

107,416,211(593,985)
106,822,225
2,238,074
109,060,299
109,060,299
157,023,120(334,370)
107,081,840
2,202,626
109,284,466
109,284,466
160,681,690¥

Mitsui Fudosan Logistics Park Inc.
Statements of Income

7th period(From August 1, 2019
to January 31, 2020)(Thousands of yen)
6th period(From February 1, 2019
to July 31, 2019)¥¥

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’ compensations
Audit fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Insurance income
Interest on refund
Other
Total non-operating income
Non-operating expenses
Interest expense
Amortization of investment unit issuance expenses
Offering costs associated with issuance of investment units
Borrowing related expenses
Disaster recovery expenses (Note 2)
Other
Total non-operating expenses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes (Note 9)
Net income (Note 10)
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss) (Note 6)¥

Net income per unit (Note 10)

7th period(From August 1, 2019
to January 31, 2020)¥
5,904

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

- 34 -¥

4,815,248
248,825
5,064,073

4,766,132
202,987
4,969,119

2,175,841
482,669
8,034
20,4005,400
9,100
46,8552,748,301
2,315,772

2,134,534
439,926
5,229
17,0005,400
9,100
38,9502,650,140
2,318,979

16
25,696693
026,407

18
3,010
13
0
3,042

59,756
18,722
4,983
20,098103,561
2,238,617793
7
801
2,237,816
257
2,238,074

59,004
18,722
32,792
4,016
2,230
1,800
118,566
2,203,454
947
(0)
946
2,202,508
117
2,202,626

¥
¥

(Yen)
6th period(From February 1, 2019
to July 31, 2019)¥
5,823

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

Number of units
Balance as of February 1,
2019
Issuance of new units
through public offering asof February 1, 2019
Issuance of new units
through allocation to athird party as of February
27, 2019
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of July 31, 2019
Distribution in excess ofretained earnings
Dividends of earnings
Net income
Balance as of January 31,
2020

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

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

110,700

33,617,376-

33,617,376-

33,617,376

5,526

1,678,135-

1,678,135-

1,678,135--(84,613)(84,613)-(84,613)

-

-

-

-

(1,519,622)(1,519,622)-

2,202,508

2,202,508¥107,081,840 ¥ 2,202,626¥109,284,466

-

-

-

379,000¥ 107,416,211¥ (334,370)--(259,615)(259,615)-(259,615)

-

-

-

-

(2,202,369)(2,202,369)

-

-

-

-

2,237,816

2,237,816

379,000¥ 107,416,211¥ (593,985)¥106,822,225 ¥ 2,238,074¥109,060,299

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

- 35 -

Mitsui Fudosan Logistics Park Inc.
Statements of Cash Flows

7th period(From August 1, 2019
to January 31, 2020)
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Amortization of investment unit issuance expenses
Interest income
Interest expense
Insurance income
Disaster recovery expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expense paid
Insurance income received
Disaster recovery expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property and equipment in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment units
Payment of distribution of earnings
Payment of distribution in excess of retained earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 3)
The accompanying notes are an integral part of these financial statements.

- 36 -¥¥

2,238,617
1,328,115
18,722(16)
59,756(25,696)
20,098
164,547(1,025)
10,9172,261,176
340,592
40,42057,2501,656
12,314
6,527,449
16(59,756)287(14,598)(947)
6,452,451(Thousands of yen)
6th period(From February 1, 2019
to July 31, 2019)¥

2,203,454
1,316,061
18,722(18)
59,004(3,010)2,230(249,039)(8,222)(15,258)(2,161,465)
15,191
144,133
279,396(9,491)
1,591,685
18(58,902)
3,010(2,230)(932)
1,532,649(100,044)(2,400)9,920(92,524)(53,760,799)(60,770)
1,097,303(52,724,267)

2,000,000(5,900,000)(2,201,806)(259,455)(6,361,262)(1,335)
4,159,980
4,158,645

12,700,000(8,900,000)
15,000,000
35,183,174(1,518,873)(84,562)
52,379,739
1,188,122
2,971,858
4,159,980¥

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

Organization and Basis of Presentationa. Organization
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”), a Japanese real estate investment corporation, was established on March
4, 2016 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951, including subsequent
amendments; the “Investment Trust Act”), by Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “Asset Management
Company”) as the organizer with investments in capital of ¥300 million (600 investment units). Registration with the Kanto
Local Finance Bureau of the Ministry of Finance of Japan was completed on March 25, 2016. The investment units were listedon the Real Estate Investment Trust Securities Market (J-REIT section) of Tokyo Stock Exchange, Inc. on August 2, 2016
(Securities Code: 3471).
MFLP-REIT started acquisition of properties on August 2, 2016. With Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as a sponsor,
MFLP-REIT invests primarily in logistics facilities with a particular focus on MFLP facilities, that is, leading-edge logistics
facilities with Mitsui Fudosan quality. This focus has been chosen in light of MFLP-REIT’s goal of establishing a portfolio thatemphasizes location, quality and balance.
As of January 31, 2020, MFLP-REIT held 16 properties with the total acquisition price of ¥156.7 billion.
b. Basis of presentation
The accompanying financial statements of MFLP-REIT have been prepared in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial Instruments and Exchange Act of Japan,
the Investment Trust Act and the related regulations, which are different in certain respects as to application and disclosure
requirements of the International Financial Reporting Standards.
The accompanying financial statements are based on the financial statements of MFLP-REIT, which were prepared in accordancewith Japanese GAAP and were presented in its Asset Management Report published for Japanese investors. In preparing theaccompanying financial statements, certain reclassifications and modifications have been made to the financial statements issued
domestically in order to present them in a format which is more familiar to readers outside Japan.
MFLP-REIT’s fiscal period is a six-month period, which ends at the end of January and July of each year.
MFLP-REIT does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying financial
statements and the notes thereto, as permitted by the Financial Instruments and Exchange Act of Japan. As a result, the totals
shown in the financial statements and notes thereto do not necessarily agree with the sum of the individual amounts.

2.

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

- 37 -

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

2 to 59 years
8 to 50 years

Machinery and equipment:
Vehicles:

14 to 17 years
4 years

Tools, furniture and fixtures:

5 to 15 years

c. Intangible assets
Intangible assets are stated at cost, which includes the original purchase price and related acquisition costs and expenses.
Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives. Amortization ofsoftware for internal use is calculated using the straight-line method over the estimated useful lives of five years at MFLP-REIT.
d. Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method over a three-year period.
e. Disaster recovery expenses
Disaster recovery expenses comprise the recovery expenses corresponding to the insurance received for damage from natural
disasters as a result of the typhoons, etc. that occurred in 2019 and 2018.
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 amount equivalent
to property-related taxes is capitalized as part of the acquisition cost of the relevant property instead of being charged as expenses.
Capitalized property-related taxes amounted to ¥264,449 thousand for the 6th period and none for the 7th period.
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 and liabilities
within assets in trust as well as all income generated and expenses incurred from assets in trust are recorded in the relevantbalance sheet and statement of income account items.
The following material items of the assets in trust recorded in the relevant account items are separately presented in theaccompanying balance sheets.
(1) Cash and deposits in trust(2) Buildings in trust, structures in trust, machinery and equipment in trust, vehicles and transport equipment in trust, tools,
furniture and fixtures in trust and land in trust(3) Construction in progress in trust(4) Tenant leasehold and security deposits in trusth. Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.
i. Changes in presentation“Insurance income” and “Disaster recovery expenses” under “Cash flows from operating activities” are separately presented
from the 7th period due to an increase in materiality. To reflect this change in presentation, figures in the statements of cash
flows for the 6th period were reclassified.
As a result, in the statements of cash flows for the 6th period, under “Cash flows from operating activities,” “Insurance income”
is presented as negative ¥3,010 thousand and “Disaster recovery expenses” is presented as ¥2,230 thousand above the subtotal,- 38 -

and “Insurance income received” is presented as ¥3,010 thousand and “Disaster recovery expenses paid” is presented as negative¥2,230 thousand below the subtotal.
3.

4.

Cash and Cash Equivalents
Reconciliation between cash and cash equivalents and accounts and amounts in the balance sheets is as follows:(Thousands of yen)
7th period(As of January 31, 2020)

6th period(As of July 31, 2019)

Cash and deposits
Cash and deposits in trust¥

877,488
3,281,157¥

1,085,379
3,074,601

Cash and cash equivalents¥

4,158,645¥

4,159,980

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 the liquidity risk by preparing monthly fund management plans.
In addition, loans with floating interest rates are exposed to the risk of interest rate rising. MFLP-REIT limits the impact
of interest rate rises on its operations by keeping the ratio of interest-bearing debt to total assets at a low level andmaintaining the ratio of fixed-rate long-term loans at a high level.
Tenant leasehold and security deposits in trust are deposits from tenants, and are exposed to liquidity risk at the time thetenants vacate the properties. MFLP-REIT controls the liquidity risk by preparing monthly fund management plans.
(3) Supplementary explanation regarding fair values of financial instruments
The fair value of financial instruments is based on their observable market value, if available. When there is no observable
market value available, fair value is based on a price that is reasonably estimated. Since variable factors are also reflectedin estimating the fair value, different assumptions and factors could result in a different value.

- 39 -

b. Estimated fair value of financial instruments
The carrying amounts, fair values and their differences as of January 31, 2020 and July 31, 2019 are as follows. Financial
instruments for which it is extremely difficult to determine the fair value are excluded from the following tables (Note 2 below):(Thousands of yen)
7th period (As of January 31, 2020)

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

877,488

Fair value¥

3,281,157

Total assets¥(3) Short-term loans payable

4,158,645¥

1,600,000

Difference

877,488

-3,281,157-

4,158,645-

1,600,000-(4) Long-term loans payable

41,300,000

41,380,542¥ 80,542

Total liabilities¥ 42,900,000¥ 42,980,542¥ 80,542(Thousands of yen)

6th period (As of July 31, 2019)

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

1,085,379

Fair value¥

3,074,601

Total assets¥(3) Short-term loans payable

4,159,980¥

5,500,000

Difference

1,085,379-

3,074,601-

4,159,980-

5,500,000-(4) Long-term loans payable

41,300,000

41,568,584¥ 268,584

Total liabilities¥ 46,800,000¥ 47,068,584¥ 268,584(Note 1) Methods to estimate fair values of financial instruments(1) Cash and deposits and (2) Cash and deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(3) Short-term loans payable
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at that bookvalue.
(4) Long-term loans payable
The fair value is determined based on the present value being calculated by discounting the sum of principal and interest by the assumed
interest rate which would be applied if a similar new loan were entered into.
(Note 2) Financial instruments for which it is extremely difficult to determine the fair value(Thousands of yen)
7th period(As of January 31, 2020)
Tenant leasehold and security deposits in trust¥ 3,022,824

6th period(As of July 31, 2019)¥ 3,015,304

Tenant leasehold and security deposits in trust are not subject to fair value disclosure, because a reasonable estimation of future cash flows isdifficult as no market price is available and the actual deposit period cannot be determined even when a contract period is set in the lease
contract since there is a possibility that the leases may be cancelled, renewed or re-signed.
(Note 3) Redemption schedule for monetary claims(Thousands of yen)
7th period (As of January 31, 2020)

Due within one year

Cash and deposits¥

877,488

Cash and deposits in trust¥

3,281,157(Thousands of yen)
6th period (As of July 31, 2019)

Due within one year

Cash and deposits¥

1,085,379

Cash and deposits in trust¥

3,074,601- 40 -

(Note 4) Repayment schedule for loans(Thousands of yen)
7th period(As of January 31,
2020)

Due within
one year

Short-termloans payable
Long-termloans payable

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

Due after
five years¥ 1,600,000

-

-

-

-

-

-

-

¥ 5,300,000¥ 9,600,000¥ 7,900,000¥ 18,500,000(Thousands of yen)
6th period(As of July 31,
2019)

5.

Due within
one year

Due after one to
two years

Due after two to
three years

Due after three tofour years

Due after four tofive years

Due after
five years

Short-termloans payable¥ 5,500,000

-

-

-

-

-

Long-termloans payable--¥ 1,900,000¥ 9,000,000¥ 8,900,000¥ 21,500,000

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 periods and fair value of these investment and rental properties are as follows:(Thousands of yen)
7th period(From August 1, 2019
to January 31, 2020)

6th period(From February 1, 2019
to July 31, 2019)

Carrying amount
Balance at beginning of period¥

153,761,683¥

101,324,687

Changes during the period(1,235,279)

52,436,996

Balance at end of period

152,526,403

153,761,683

Fair value at the end of the period¥

169,750,000¥

167,640,000(Note 1) The carrying amount represents acquisition cost less accumulated depreciation.
(Note 2) Changes in the carrying amount during the 6th period consisted of the increase mainly attributable to acquisition of trust beneficiary interests
in real estate for six properties (¥53,665,177 thousand), and the decrease mainly attributable to depreciation (¥1,314,941 thousand). Changes
in the carrying amount during the 7th period consisted of the decrease mainly attributable to depreciation (¥1,326,995 thousand).
(Note 3) The fair value at the end of the period represents the appraisal value or surveyed value by external real estate appraisers.

Information about income and loss from investment and rental properties is stated in Note 8. “Property Leasing Business
Revenues and Expenses.”- 41 -

6.

Net Assets
a. Stated capital
MFLP-REIT issues only non-par value units in accordance with the Investment Trust Act of Japan and all of the issue prices of
new units are designated as stated capital. MFLP-REIT maintains at least ¥50,000 thousand as the minimum net assets as requiredby the Article 67, Paragraph 4 of the Investment Trust Act of Japan.
b. Distributions
Distributions related to the periods but declared after the balance sheet dates are summarized as follows:(Yen)
7th period(From August 1, 2019 to January 31, 2020)
Total

I. Unappropriated retained earnings

6th period(From February 1, 2019 to July 31, 2019)

Per unit

Total¥ 2,238,074,062¥ 2,202,626,192

257,341,000

259,615,000

Per unit

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

2,237,995,000
257,341,000

earnings
Total distributions
IV. Retained earnings carried forward¥¥ 2,495,336,000¥¥

79,0625,905

2,202,369,000

679

259,615,000

6,584¥ 2,461,984,000
¥

¥

5,811
685

¥

6,496

257,192

In accordance with the distribution policy as defined in the Article 35, Paragraph 1 of the Articles of Incorporation of MFLP-REIT,
distributions shall be in excess of the amount equivalent to 90% of the amount of earnings available for dividends defined in the
Article 67-15 of the Act on Special Measures Concerning Taxation.
Based on this policy, for the fiscal periods ended January 31, 2020 and July 31, 2019, MFLP-REIT declared a distribution amount of¥2,237,995,000 and ¥2,202,369,000, respectively, which are the maximum value of the integral multiple of the total number ofinvestment units issued and outstanding at the end of each period in amounts not in excess of unappropriated retained earnings.
Furthermore, based on the distribution policy as defined in the Article 35, Paragraph 2 of the Articles of Incorporation, MFLP-REIT
executes the distribution of cash in excess of retained earnings (return of capital applicable to distribution reducing unitholders’ capitalfor tax purposes) each fiscal period on a continuous basis.
Based on this policy, for the fiscal period ended January 31, 2020, MFLP-REIT declared the distribution of ¥257,341,000, which is
calculated as being almost equivalent to the remaining amount after subtracting the distribution of earnings of ¥2,237,995,000 from
¥2,495,368,859 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).
Based on this policy, for the fiscal period ended July 31, 2019, MFLP-REIT declared the distribution of ¥259,615,000, which is
calculated as being almost equivalent to the remaining amount after subtracting the distribution of earnings of ¥2,202,369,000 from
¥2,462,214,609 or 70% of FFO (funds from operation), as distribution of cash in excess of retained earnings (return of capital
applicable to distribution reducing unitholders’ capital for tax purposes).
(Note)

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

- 42 -

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, 2020 and July 31, 2019.
(Thousands of yen)
7th period(As of January 31, 2020)
0.1060% unsecured short-term loans-

0.1086% unsecured short-term loans
0.1078% unsecured short-term loans-

6th period(As of July 31, 2019)¥1,600,000
1,000,000

0.1032% unsecured short-term loans¥

1,600,000

Total short-term loans payable¥

1,600,000¥

2,000,000¥

0.2713% unsecured long-term loans due 2022¥

2,900,000

5,500,000
2,000,000

0.4213% unsecured long-term loans due 2026
0.2400% unsecured long-term loans due 2022

1,500,000
1,600,000

1,500,000
1,600,000

0.2500% unsecured long-term loans due 2023
0.1475% unsecured long-term loans due 2024

2,000,000
3,000,000

2,000,000
3,000,000

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

2,000,000
1,500,000

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

400,000
1,700,000

0.4895% unsecured long-term loans due 2027
0.3687% unsecured long-term loans due 2028

900,000
2,000,000

900,000
2,000,000

0.1826% unsecured long-term loans due 2023
0.2313% unsecured long-term loans due 2026

2,200,000
3,100,000

2,200,000
3,100,000

0.3237% unsecured long-term loans due 2024
0.3425% unsecured long-term loans due 2024

600,000
700,000

600,000
700,000

0.2188% unsecured long-term loans due 2022
0.2613% unsecured long-term loans due 2023

300,000
900,000

300,000
900,000

0.1163% unsecured long-term loans due 2023
0.3125% unsecured long-term loans due 2026

500,000
3,100,000

500,000
3,100,000

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

1,300,000
1,000,000

1,300,000
1,000,000

0.3988% unsecured long-term loans due 2029
0.2575% unsecured long-term loans due 2022

2,000,000
1,000,000

2,000,000
1,000,000

0.3319% unsecured long-term loans due 2024
0.2087% unsecured long-term loans due 2025

600,000
600,000

600,000
600,000

0.2375% unsecured long-term loans due 2023
0.1863% unsecured long-term loans due 2025

2,000,000
1,800,000

2,000,000
1,800,000

0.3975% unsecured long-term loans due 2026

1,000,000

1,000,000

Total long-term loans payable(Note)¥

41,300,000¥

41,300,000

The stated interest rates are the weighted average interest rates during the fiscal periods ended January 31, 2020 and July 31, 2019 androunded to the fourth decimal place.

The repayment schedule for loans is disclosed in Note 4. “Financial Instruments.”
MFLP-REIT had the commitment line contracts with two banks as of January 31, 2020 and July 31, 2019.
(Thousands of yen)
7th period(As of January 31, 2020)
Total amount of commitment line contracts¥

Loans executed

6,000,000

6th period(As of July 31, 2019)¥-

Unused line of credit¥- 43 -

6,000,000

6,000,000-¥

6,000,000

8.

Property Leasing Business Revenues and Expenses
The following table summarizes the revenues and expenses generated from the property leasing business for the fiscal periods
ended January 31, 2020 and July 31, 2019.
(Thousands of yen)
7th period(From August 1, 2019
to January 31, 2020)

6th period(From February 1, 2019
to July 31, 2019)

A. Property leasing business revenues
Property-related revenues
Rental revenues
Common area charges
Total
Other property-related revenues
Utilities charges¥

4,635,333
179,914¥

4,587,276
178,855¥

4,815,248¥

4,766,132¥

191,289¥

143,571

Parking lots
Others

20,32937,206

Total
Total property leasing business revenues

18,247
41,168¥248,825¥

202,987¥

5,064,073¥

4,969,119¥

287,794
171,591¥

284,400
136,929

B. Property leasing business expenses
Property-related expenses
Outsourcing service expenses
Utilities expenses
Repair expenses
Taxes and dues
Depreciation and amortization
Others36,545
332,689

45,700332,697

1,326,995
20,224

1,314,941
19,864

Total property leasing business expenses¥

2,175,841¥

2,134,534

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

2,888,231¥

2,834,585

Transactions with major unitholders for the fiscal periods ended January 31, 2020 and July 31, 2019 are as follows:(Thousands of yen)
7th period(From August 1, 2019
to January 31, 2020)
Operating transactions:Operating revenues
Operating expenses
Non-operating transactions:Purchase of trust beneficiary interests in realestate9.

6th period(From February 1, 2019
to July 31, 2019)-¥

167,340-¥

121,311-¥33,786,303

Income Taxes
MFLP-REIT is subject to Japanese corporate income taxes on its taxable income. The tax effects of temporary differences thatgive rise to a significant portion of the deferred tax assets and liabilities as of January 31, 2020 and July 31, 2019 are as
follows:(Thousands of yen)
7th period(As of January 31, 2020)

6th period(As of July 31, 2019)

Deferred tax assets:
Accrued enterprise tax

¥

9

¥

16

Total deferred tax assets

¥

9

¥

16

Net deferred tax assets

¥

9

¥

16

- 44 -

Reconciliations between the Japanese statutory tax rate and the effective income tax rate with respect to pre-tax income
reflected in the accompanying statements of income for the fiscal periods ended January 31, 2020 and July 31, 2019 are as
follows:
7th period(As of January 31, 2020)

6th period(As of July 31, 2019)

Statutory tax rate

31.51%

31.51%

Adjustments:
Deductible distributions(31.50)(31.49)

0.03

0.03

0.04%

0.04%

Other
Effective income tax rate after application of tax-effectaccounting

10. Per Unit Information
The following table summarizes per unit information for the fiscal periods ended January 31, 2020 and July 31, 2019.
7th period(From August 1, 2019
to January 31, 2020)

6th period(From February 1, 2019
to July 31, 2019)

Earnings per unit:¥

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

5,904

¥

5,823

379,000

378,206

7th period(As of January 31, 2020)

6th period(As of July 31, 2019)

Net assets per unit (yen)¥287,758¥

288,349

Net income per unit is calculated by dividing net income by the daily weighted average number of investment units outstanding
during the period. Diluted net income per unit is not stated because there are no dilutive investment units.
11. Leases
The future minimum rental revenues from tenants subsequent to January 31, 2020 and July 31, 2019 under non-cancelable
operating leases of properties are as follows:(Thousands of yen)
7th period(As of January 31, 2020)
Due within one year¥

Due after one year

8,376,060

6th period(As of July 31, 2019)¥17,826,163

Total

¥

- 45 -

26,202,224

8,386,574
19,027,754¥

27,414,328

12. Transactions with Related Parties
There are no significant transactions and balances with related parties for the fiscal period ended January 31, 2020.
Significant transactions and balances with related parties for the fiscal period ended July 31, 2019 are as follows:

Classification

Major
corporateunitholder

Name ofcompany

Mitsui
Fudosan Co.,Ltd.

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

Mitsui
FudosanFacilities Co.,
Ltd.

Address

Chuo-ku,Tokyo

Statedcapital(millionsof yen)¥ 339,766

Type ofbusiness

Real estatebusiness% ofvotingBusinessrights relationship(owned)Type oftransaction(Note 2)

Logistics
management
fee
Repairs andrelated work
Other
expensesrelated to
Logistics
7.62%
property
management(Note 3)
leasing
outsourcing
Rent
income, etc.

Account

Balance at
end ofperiod(thousandsof yen)2,384 Operating
accounts
payable¥ 93,468

Transaction
amount(thousands ofyen)¥ 117,828

1,098

167,340

Operatingaccounts
receivable

Purchase oftrust
beneficiaryinterests inreal estate

33,786,303-

223,013-

Chuo-ku,Tokyo

Investment
200 managementbusiness

-

Asset
Asset
management management
outsourcing fee (Note 4)

584,028

Accounts
payable476,157

Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
Repairs andmanagement
related work
outsourcing

16,398Operatingaccounts
payable702

29,974 Operating
accounts
payable36,730Chuo-ku,Tokyo

Property
490 managementbusiness-

Building
management
outsourcing

Subsidiaryof major
corporateunitholder
Mitsui
FudosanFacilities
West Co.,Ltd.

Osaka-shi,
Osaka

Daiichi Engei
Co., Ltd

Shinagawaku,
Tokyo

480

Leasing andotherbusinesses-

Hino Tokutei
Mokuteki
KaishaChuo-ku,Tokyo

11

Real estatebusiness-

Inzai Tokutei
Mokuteki
KaishaChuo-ku,Tokyo

96

Real estatebusiness-

Property
200 managementbusiness- 46 --

Building
management
outsourcing

Building
management
fee
Repairs andrelated work
Other
expensesrelated toproperty
leasing
Other
incomeBuilding
management
fee
Repairs andrelated work
Other
expensesrelated toproperty
leasing

Repair andmaintenance Repairs andof real estate related work
held
Purchase oftrust
beneficiaryinterests inreal estate
Purchase oftrust
beneficiary

95,200

2,496

239

-

-

33,581
3,571 Operating
accounts
payable

6,754

218

1,581

Operatingaccounts
payable930

5,041,351

Operatingaccounts
receivable

5,334

10,089,565--

interests inreal estate(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) Mitsui Fudosan Co., Ltd. is listed as a major corporate unitholder for the fiscal period ended July 31, 2019 but it is no longer a major corporate
unitholder because the percentage of voting rights owned fell below 10% as of February 4, 2019 as a result of the issuance of new investment
units on February 1, 2019. The transaction amounts include transactions conducted after February 4, 2019.
(Note 4) The asset management fee above includes ¥144,102 thousand of a management fee for property acquisitions included in the book value ofreal estate, etc. individually.

13. Segment and Related Information
For the fiscal periods ended January 31, 2020 and July 31, 2019a. Segment information
Segment information has been omitted as MFLP-REIT engages in a single segment of the property leasing business.
b. Related information(1) Information by product and service
Disclosure of this information has been omitted as revenues from external customers in a single product and service
category exceed 90% of the total operating revenues on the statements of income.
(2) Information by geographical area(i) Operating revenues
Disclosure of this information has been omitted as revenues from external customers in Japan exceed 90% of the total
operating revenues on the statements of income.
(ii) Property and equipment
Disclosure of this information has been omitted as the amount of property and equipment located in Japan exceeds
90% of the total amount of property and equipment on the balance sheets.
(3) Information on major tenant

Tenant nameOperating revenues

Japan Logistic Systems Corp.

(Note)

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

14. Significant Subsequent Events
1. Issuance of new investment units
Regarding the issuance of new investment units decided in the meetings of the Board of Directors of MFLP-REIT held on January
8, 2020 and January 22, 2020, as stated below, payment for the issuance of said units was completed through public offering on
February 3, 2020 and through a third-party allotment on February 27, 2020.
As a result, the total investment amount (net) is ¥136,549,737,748, and there are 441,000 units of total number of investment units
issued and outstanding.
a. Issuance of new investment units through public offering (primary offering)Number of new investment units issued:
59,000 units (Domestic: 35,400 units, Overseas: 23,600 units)
Issue price:
Total amount of issue price:¥495,747 per unit
¥29,249,073,000

Amount paid in (paid-in amount):
Total amount paid in (total paid-in amount):¥479,476 per unit
¥28,289,084,000

Payment date:February 3, 2020

- 47 -

b. Issuance of new investment units through a third-party allotment (third-party allotment)
Number of new investment units issued:
3,000 units
Amount to be paid in (paid-in amount):
Total amount to be paid in (total paid-in amount):¥479,476 per unit
¥1,438,428,000

Payment date:
Allottee:February 27, 2020
Daiwa Securities Co. Ltd.

2. Acquisitions of properties
MFLP-REIT acquired the trust beneficiary interests for the following assets on February 5, 2020, March 2, 2020 and April 6, 2020
(3 properties inclusive of additional acquisition; total amount of acquisition price is ¥48,380 million).
Acquisition priceCategory
Property no.
Property nameLocation(Note 1)
Acquisition date(millions of yen)i) 16,710
MFLP Sakaii) February 5, 2020
L-8
Sakai-shi, Osakaii) 2,390ii) April 6, 2020
(Note 2, 3)
Total 19,100
MFLP Prologis Park
14,800L-16
February 5, 2020
Kawagoe
Kawagoe-shi, Saitama(50% quasi co(Note 4)ownership interest)
Logistics facilities
MFLP Hiroshima I(Note 3)

L-17

Hiroshima-shi,
Hiroshima

14,480March 2, 2020

(Note 1) “Acquisition price” is the purchase price of each trust beneficiary interest as set forth in each agreement for sale and purchase of trust beneficiaryinterest for the assets acquired, rounded down to the nearest million yen. The transaction price does not include consumption tax and local
consumption tax or the various costs required in the acquisition. The transaction price does not include consumption tax and local consumption tax
or the various costs required in the acquisition.
(Note 2) Regarding the “Acquisition price” and “Acquisition date” for “MFLP Sakai,” the additionally acquired interest that was acquired on February 5,2020 is described in (i), and the interest to be acquired additionally on April 6, 2020 is described in (ii).
(Note 3) The sale and purchase agreements relating to “MFLP Sakai” (10% quasi co-ownership interest) and “MFLP Hiroshima I” fall under the definitionof “forward commitments, etc.” (as defined as “a postdated sales contract under which payment and delivery shall be made at least one month after
the conclusion of the contract, or any other contract similar thereto” stated in the “Comprehensive Guidelines for Supervision of Financial
Instruments Business Operators, etc.” established by the Financial Services Agency).
(Note 4) For “MFLP Prologis Park Kawagoe,” “Acquisition price” is the prorated figure equivalent to the quasi co-ownership interest in this property that
MFLP-REIT acquired (50%).

3. Borrowing of funds
MFLP-REIT has borrowed the following funds to apply to part of the acquisition funds and related expenses for the real estate trust
beneficiary interests in the above 2. Acquisitions of properties, as well as to the repayment of loans.
Borrowing
Repayment
LenderamountInterest rate
Drawdown date Repayment datemethod(millions of yen)
Base rate (JBA 1The Bank ofmonth yen TIBOR)
March 2,
November 30,
BulletFukuoka,
2,500+0.035%2020
2020
repayment
Ltd.
(Note 1)
Sumitomo
Base rate (JBA 3Mitsui Trustmonth yen TIBOR)
March 2,
Bullet2,000
June 2, 2020Bank,
+0.035%2020
repayment
Limited(Note 2)

UnsecuredNon-guaranteed

MUFG Bank,Ltd.
MUFG Bank,Ltd.
ShinkinCentral Bank
The
Norinchukin
Bank

800

0.2385%800

0.4272%1,600

0.3809%1,000

0.3360%Collateral

UnsecuredNon-guaranteed

February 5,
2020

February 5,
2027

Bulletrepayment

UnsecuredNon-guaranteed

February 5,
2020
February 5,
2020

February 5,
2030
February 5,
2029

Bulletrepayment
Bulletrepayment

UnsecuredNon-guaranteed
UnsecuredNon-guaranteed

February 5,
2020

February 7,
2028

Bulletrepayment

UnsecuredNon-guaranteed- 48 -

Lender
Shinsei Bank,
LimitedSumitomo
Mitsui
Banking
Corporation
Sumitomo
Mitsui
Banking
Corporation
Sumitomo
Mitsui Trust
Bank,
LimitedThe
Yamaguchi
Bank, Ltd.
Mitsui
Sumitomo
Insurance
Company,
LimitedSumitomo
Life
Insurance
Company
The Chiba
Bank, Ltd.
The 77 Bank,Ltd.
The Bank ofFukuoka,Ltd.
MizuhoBank, Ltd.
Mizuho Trust& BankingCo., Ltd.
Total

Borrowingamount(millions of yen)Interest rate

800

0.3809%February 5,
2020

1,700

0.2000%

1,700

Repayment
methodCollateral

February 5,
2029

Bulletrepayment

UnsecuredNon-guaranteed

March 2,2020

March 4,2024

Bulletrepayment

UnsecuredNon-guaranteed

0.3723%

March 2,2020

March 4,2030

Bulletrepayment

UnsecuredNon-guaranteed

800

0.1059%March 2,2020

March 3,2025

Bulletrepayment

UnsecuredNon-guaranteed

900

0.3723%

March 2,2020

March 4,2030

Bulletrepayment

UnsecuredNon-guaranteed

800

0.1836%

March 2,2020

March 2,2027

Bulletrepayment

UnsecuredNon-guaranteed

800

0.2182%

March 2,2020

March 2,2028

Bulletrepayment

UnsecuredNon-guaranteed

500

0.1836%

March 2,2020

March 2,2027

Bulletrepayment

UnsecuredNon-guaranteed

900

0.3723%

March 2,2020

March 4,2030

Bulletrepayment

UnsecuredNon-guaranteed

1,800

0.4942%

April 6 2020

April 8 2030

Bulletrepayment

UnsecuredNon-guaranteed

1,200

0.4942%

April 6 2020

April 8 2030

Bulletrepayment

UnsecuredNon-guaranteed

500

0.4942%

April 6 2020

April 8 2030

Bulletrepayment

UnsecuredNon-guaranteed

21,100

―

―

―

―

―

Drawdown date Repayment date

(Note 1) The first payment date is April 2, 2020, and will be the 2nd of every month and the repayment date (in the case this is not a business day, thefollowing business day). The base rate used for the calculation period of interest to be paid on the payment date is JBA 1-month yen TIBOR
published by JBA TIBOR Administration as of two business days prior to the previous payment date (however, drawdown date for the first time)of each payment date. However, in the case that interest calculation period is less than 1 month, it will be the base rate corresponding to theapplicable period calculated based on the method set forth in the contract.
(Note 2) The payment date is the repayment date The base rate used for the calculation period of interest to be paid on the payment date is JBA 3-month yen
TIBOR published by JBA TIBOR Administration as of two business days prior to the drawdown date. Please refer to the JBA TIBOR Administration
website (http://www.jbatibor.or.jp/rate/) for JBA yen TIBOR.

*

*

*

- 49 -**