3rd Fiscal Period (Fiscal Period Ended January 31, 2018)
Investor Presentation Material
March 16, 2018
Mitsui Fudosan Logistics Park Inc. (MFLP-REIT)

Securities Code3471

Table of Contents
1. Basic Strategy of MFLP-REIT

4. Logistics Market Overview

1-1. Trajectory of Growth of Mitsui Fudosan’s

4-1. Logistics Market Overview

……

P25

……

P30

……

P31

……

P32

P33

Logistics Facilities Business and
MFLP-REIT’s First Public Offering……

P3

1-2. Four Roadmaps to Stable Growth andTrajectory of Growth

5. Appendix• Statement of Income and Balance Sheet……

P4• Individual Property Income Statementfor 3rd Fiscal Period

2. Financial Summary
2-1. Financial Highlights…… P6• Appraisal Summary for the End of 3rd

2-2. 3rd Fiscal Period P/L…… P7

Fiscal Period

2-3. 4th Fiscal Period Earnings Forecast…… P8• Mitsui Fudosan’s

2-4. Distribution Trends…… P9

Major Development/Operation Track Record ……
• Initiatives for ESG

3. Management Status of MFLP-REIT
3-1. Portfolio Status…… P123-1-1. Location
3-1-2. Quality
3-1-3. Balance

……
……
……

3-2. External Growth…… P173-3. Internal Growth…… P193-4. Financial Strategy…… P21

3-5. Unitholder Relations…… P23

P13
P15
P16

• Interest Rate Market Data/Status of

……

P34

Interest-Bearing Debt

……

P36

……

P37

• Investment Unit Price Trends/Status ofUnitholders

11. Basic Strategy of MFLP-REIT
MFLP-REIT has established a strategic partnership in the logistics facilities
business with comprehensive developer Mitsui Fudosan under which it
seeks to maximize unitholder value.

21-1. Trajectory of Growth of Mitsui Fudosan’s Logistics Facilities
Business and MFLP-REIT’s First Public Offering
Cumulative total investment size as of July 2017

Image of growth of properties (to be) developed/operatedby Mitsui Fudosan

28 facilities 400.0 billion yen (*1)

Cumulative total investment size as of March 201622 facilities 300.0 billion yen (*1)
Cumulative total investment size as of March 2015

13 facilities 160.0 billion yen (*1)
Transition from Logistics
Properties Department to“Logistics Properties
Business Division”
at Mitsui Fudosan

MFLPREIT IPO

Establishment of“Logistics Properties Department”
in Retail Properties Divisionat Mitsui Fudosan

平成24年度Fiscal2012

平成25年度Fiscal2013

平成26年度Fiscal2014

Property acquired in 3rd and 4th fiscal periods

平成27年度Fiscal2015

MFLP Komaki

Fiscal 2017平成29年度（予定）

Fiscal 2018
平成30年度（予定）

Fiscal 2019平成31年度（予定）

Fiscal 2020
平成32年度（予定）(planned)(planned)(planned)(planned)

Properties defined in “Right of first look and preferential negotiation agreement”
8 properties 750,000 m2 *2
Construction started:
Construction completed: 630,000 m2 *2
120,000 m2 *2
Partially acquired

MFLP Hino (15%)

平成28年度（予定）
Fiscal2016

Partially acquired

MFLP Hiratsuka

Acquisition amount 22.8 billion yen

MFLP Sakai(80%)*3

MFLP Hino(85%) *3

MFLP Inazawa

MFLP Atsugi II

MFLP Fukuoka I(81%) *3

MFLP Ibaraki

MFLP Prologis Park
Kawagoe (50%) *3

Partially acquired[First public offering] Number of newly issued investment units:

38,774 units (13.7 billion yen)

Number of investment units issued and outstanding
after public offering: 262,774 units)
*
*1:
*2:
*3:

MFIP Inzai(80%) *3

Expansion ofproperties defined in“Right of first look andpreferential negotiationagreement”

Numerical figures are rounded down to the nearest specified unit and percentage figures are rounded to one decimal place. The same shall apply hereinafter.
“Cumulative total investment size” is based on materials released at each point in time by Mitsui Fudosan. For details, please refer to “About major properties developed/operated by Mitsui Fudosan” on p. 38.
The floor area subject to the “Right of first look and preferential negotiation agreement” (after taking into consideration the quasi co-ownership interest).
The percentage figure in parentheses is the percentage of quasi co-ownership interest subject to the “Right of first look and preferential negotiation agreement.”31-2. Four Roadmaps to Stable Growth and Trajectory of Growth
Maximization of unitholder value through expansion of asset size and LTV management
Fiscal 2016

Fiscal 2017
3rd fiscal period
4th fiscal period

1st & 2nd fiscal periods

First public
offering

Asset size
9 properties

10 properties

75.5

78.7

billion yen

billion yen
Acquisition of
MFLP Komaki
(40%)

LTV
End of 1st
fiscal period

End of 2nd
fiscal period

End of 3rd
fiscal period

24.5%

21.6%

22.5%

Property acquisition
considering portfolio
yield

5,198 yen

5,364 yen

Implementation of
appropriate LTV
management

Market cap
End of 1st
fiscal period

End of 2nd
fiscal period

End of 3rd
fiscal period

July 31, 2018(End of 4th FP
forecast)

January 31, 2019(End of 5th FP
forecast)

24.2%

3rd fiscal
period5,563 yen

12 properties

Fiscal 2021 or after

200.0
billion yen
Fiscal 2020
target asset size

billion yen
Acquisition of MFLP Hino
(15%), MFLP Komaki (60%)
and MFLP Hiratsuka

Distribution per unit (DPU)
2nd fiscal
periodFiscal 2018 to Fiscal 2020
6th fiscal period or afterContinuous acquisition of properties,
centering on properties defined in“Right of first look andpreferential negotiation agreement”

98.3

Premium offering

1st fiscal
period5th fiscal period

Distribution
growth4th fiscal
period(Forecast)

5,745 yen

23.6%
5th fiscal
period(Forecast)

76.1

71.5

84.4

94.3

billion yen

billion yen

billion yen

Continuous DPU growth throughleverage effects

5,833 yen

After 1st public offering(As of February 28, 2018)billion yen

Fund procurement andLTV management
optimal forthe expansion of asset size

Medium- tolong-term
stabilized LTV level

40% to 50% range

Growthpotential

Expansion of market cap
through public offerings, etc.

4

2. Financial Summary(3rd fiscal period: from August 1, 2017 to January 31, 2018)5

2-1. Financial Highlights
Asset size
(total amount ofacquisition price)

Asset

Appraisal value *1

End of 3rd fiscal period(Actual)4th fiscal period(After property acquisition)

10 properties

12 properties

78.7

billion yen

10 properties

84.9
7.3
100%

billion yen

Unrealized gain
Occupancy rate*2

billion yen

*3

98.3

18.0 billion yen

104.6

12 properties

104.6
7.4
100%

9 properties

24.0 billion yen

*4

22.5%

75.5
65

EquityNAV per unit

*6

4th fiscal period(Forecast)

5,563 yen

5,745 yen

End of 3rd fiscal period(Actual)4th fiscal period(After property acquisition)

297,991 yen

307,116 yen

84.9

78.4

80.8

End of 1st
fiscal period

End of 2nd
fiscal period

End of 3rd
fiscal period

4th fiscal
period(After property
acquisition)

LTV ratio
28%

24.5%

20%

Distribution per
*5
unit

IPO
Appraisal value
as of March 15, 201624.2%

3rd fiscal period(Actual)9 properties

9 properties

billion yen

billion yen

10 properties

85

Debt
LTV ratio

12 properties

105

billion yen

End of 3rd fiscal period End of 4th fiscal period forecast(Actual)(After property acquisition)

Balance of interestbearing debt

Appraisal value (billion yen)

End of 1st
fiscal period

24.2%
21.6%

22.5%

End of 2nd
fiscal period

End of 3rd
fiscal period

End of 4th
fiscal period(Forecast)

23.6%

End of 5th
fiscal period(Forecast)Distribution per unit (yen)
6,000

5,745
5,500

5,563
5,198

5,000

5,833

1st fiscal
period5,346
2nd fiscal
period3rd fiscal
period4th fiscal
period(Forecast)

5th fiscal
period(Forecast)*For details of *1 - *6, please refer to “About financial highlights” on p. 38.

6

2-2. 3rd Fiscal Period (Ended January 31, 2018) P/L
2nd period
Actual(a)Operating revenue
Operating expenses(Unit: million yen)

Of which, Depreciation

Announced
Sep. 13, 2017

3rd period
Forecast

3rd period
Actual(b)

Difference(b)-(a)

2,548

2,629

2,629

80

1,367

1,435

1,390

23

560

595

595

35

1,181

1,193

1,239

57

Main breakdown of difference
Operating revenue
Increase due to newly-acquired MFLP Komaki (40%)
Decrease in photovoltaic power generation facilities
rent revenue
Increase in other operating revenue

+98
-52
+34

Operating expenses
Operating income
Non-operating income

1

-

0

-1

Non-operating expenses

30

30

54

23

Increase due to newly-acquired MFLP Komaki (40%)+38

Decrease in other operating expenses-15

Non-operating expenses
Investment unit issuance related expenses

Ordinary income

1,152

1,163

1,185

32

Profit (Net income)

1,151

1,162

1,184

32

Distribution per unit (DPU) (yen)

5,346

5,493

5,563

217

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

5,142
204
8.2%

5,187
306
11.5%

5,288
275
10.3%

* For details of the formula for distribution per unit based on FFO, please refer also to “Method of calculation of cash distribution based on FFO”
on p. 38 of this presentation material.

146
71
--

+23

<Reference>
Formula for distribution per unit based on FFO *FFO=Profit(Net income)Source offunds for
distribution

=

① FFO

Distribution
per unit=② Source offunds for
distribution+ Depreciation, etc. …①
×

70%

…②

Number ofunits÷ investment
issued andoutstanding72-3. 4th Fiscal Period (Ending July 31, 2018) Earnings Forecast(Unit: million yen)

Operating revenue

3rd period 4th period
ActualForecast Difference(a)(b)(b)-(a)
2,629

3,140

510

Main breakdown of difference

Operating revenue<Reference>
5th period
Forecast
3,197

Increase due to newly-acquired
MFLP Komaki (60%), Hino, Hiratsuka +510

Operating expenses
Of which, Depreciation
Operating income

1,390

1,673

283

595

744

149

1,239

1,467

227

1,722

Increase in photovoltaic power
generation facilities rent revenue+45

Decrease in other operating expenses

-45

754
1,475

Operating expenses-

Increase due to newly-acquired
MFLP Komaki (60%), Hino, Hiratsuka+194

Increase in other operating expenses+89

Non-operating income

0

-

0

Non-operating expenses

54

54

0

39

Ordinary income

1,185

1,413

227

1,435

Profit (Net income)

1,184

1,412

227

1,434

Distribution per unit (DPU) (yen)

5,563

5,745

182

5,833

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

5,288

5,373

85

5,460

275

372

97

373

10.3%

13.1%

-

13.0%

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

8

2-4. Distribution Trends
For the 3rd fiscal period, achieved distribution of 5,563 yen, which is 217 yen higher than the 2nd fiscal period, or up 7.0% fromthe 1st fiscal period
For the 4th fiscal period, projects distribution of 5,745 yen, which is 182 yen higher than the 3rd fiscal period, or up 7.5% from the
2nd fiscal period
While distribution of earnings per unit (EPU) is 100% distribution of the profit increase or decrease, distribution per unit (DPU) is
limited to distribution of 70% of increase or decrease in FFO, including the profit increase or decrease, etc.
<Reference>
Distribution

Distribution

5,833 yen

5,745 yen
Distribution

5,563 yen
Distribution

5,346 yen
Distribution

5,198 yen
Distribution
in excess ofearnings
243 yenDistributionof earnings
4,955 yen

Distribution inexcess of
earnings
204 yenDistributionof earnings
5,142 yen

Increase in
distribution of
earnings+146 yen

Increase in
distribution of
earnings+71 yen[Increase in profit]+361 yen
Increase in operating revenue-103 yen
Increase in operating expenses-7 yenDecrease in non-operating income
Increase in non-operating expenses -105 yen

1st fiscal period 2nd fiscal period
ActualActualDistribution inexcess of
earnings
275 yenIncrease in
distribution of
earnings+85 yenIncrease in
distribution of
earnings+97 yen[Increase in profit]
Increase in operating revenue+212 yen
Increase in operating expenses-162 yen
Decrease in non-operating income-2 yenDecrease in non-operating expenses +37 yen

Distributionof earnings
5,288 yen

3rd fiscal period
ActualDistribution inexcess of
earnings
373 yenDistribution inexcess of
earnings
372 yenDistributionof earnings
5,373 yen

Distributionof earnings
5,460 yen

4th fiscal period
Forecast

5th fiscal period
Forecast ** As to distribution per unit (DPU) for the 6th fiscal period or after, the amount obtained by dividing the amount (65 million yen ×70%), whichtakes into account the fixed asset tax and city planning tax for the three properties acquired in the 4th fiscal period and FFO-based distributions
in excess of earnings, by the number of investment units issued and outstanding, is expected to be subtracted.

9

MEMO

10

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

3-2. External Growth3-3. Internal Growth3-4. Financial Strategy
3-5. Unitholder Relations11

3-1. Portfolio Status (List) (As of March 15 2018)
Stable portfolio with investment focused on MFLPs—leading-edge logistics facilities
developed by Mitsui Fudosan—of relatively young building age
Total acquired assets

Stabilized NOI yield *1

Average appraisal NOI yield

Average building age

Average occupancy rate

12 properties / 98.3 billion yen

5.2% (after depreciation: 3.7%)

4.7%

3.7 years

100%

Category

Logistics
facilities

Appraisal value *2(million yen)Appraisal NOI
yield
(％)

Building
age *4(years)Occupancy
rate *5(%)

105,019(52,509)

4.2

100

4.9

73,153

3.7

100

8.9

100

Property nameLocation

L-1

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

Ichikawa, Chiba

15,50016,6504.3

12,50013,500Total floor area *3
(m2)

L-2

MFLP Kuki

Kuki, Saitama

L-3

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

Yokohama,
Kanagawa

10,10010,5004.8

100,530(50,265)

L-4

MFLP Yashio

Yashio, Saitama

9,650

10,6004.7

40,728

4.0

100

L-5

MFLP Atsugi

Aiko, Kanagawa

7,810

8,620

4.8

40,942

3.0

100

L-6

MFLP Funabashi Nishiura

Funabashi, Chiba

6,970

7,490

4.7

30,947

3.1

100

L-7

MFLP Kashiwa

Kashiwa, Chiba

6,300

6,870

4.7

31,2422.3

100

125,127(25,025)

3.5

100

40,597

1.1

100

L-8

L-9

L-10
L-11

MFLP Sakai(20% quasi co-ownership interest)① MFLP Komaki Acquired in 3rd FP(40% quasi co-ownership interest)② MFLP Komaki Acquired in 4th FP(60% quasi co-ownership interest)
Acquired in 4th FP
MFLP Hino(15% quasi co-ownership interest)

Sakai, Osaka

MFLP Hiratsuka

Acquired in 4th FP

Subtotal or Average
Industrial
real estate

Acquisition price(million yen)

Propertyno.

I-1

MFIP Inzai(20% quasi co-ownership interest)
Total or Average

4,500

4,930

4.8

① 3,249① 3,330① 4.8② 5,011② 5,100② 4.7

Hino, Tokyo

7,520

7,570

4.3

205,200(30,780)

2.4

100

Hiratsuka,
Kanagawa

7,027

7,070

4.6

33,061

1.3

100

96,137102,230

4.7

3.7

100

2,180

2,440

5.0

4.0

Not disclosed-

98,317

104,670

4.7

3.7

100

Subtotal

76,57982,490

4.7

4.2

100

78,75984,930

4.7

4.2

100

Komaki, Aichi

Inzai, Chiba

826,551(449,254)
40,478(8,095)867,029(457,350)

Reference: As of end of 3rd fiscal period
Logistics facilities (Property no. L-1 to L-9 ①)
Total (Property no. L-1 to L-9 ①, and I-1)

588,289(361,053)
628,767(369,149)*1: Stabilized NOI yield is the figure arrived at when the NOI assumed in the earnings forecast for the 5th fiscal period, less the amount of fixed asset tax, city planning tax, etc. not expensed in the said earnings forecast, is divided by acquisition price.
*2: “Appraisal value” figures are the figures with November 30, 2017 as the date of value in the case of MFLP Komaki (60% quasi co-ownership interest), MFLP Hino (15% quasi co-ownership interest) and MFLP Hiratsuka, and with January 31, 2018(end of 3rd fiscal period) as the date of value in the case of the other properties.
*3: “Total floor area” figures in parentheses are the figures after taking into consideration the ownership interest.
*4: “Building age” is the building age from the date of new construction of the main building in the register to March 15, 2018, rounded to one decimal place. “Subtotal” and “Total” are the weighted averages based on acquisition price.
*5: “Occupancy rate” is the occupancy rate on the basis of contracts entered as of March 15, 2018.

12

3-1-1. Location (1)Acquired assets
Rampway MFLP Facilities

Slope MFLP Facilities

Box MFLP Facilities

MFLP Facilities
Right of first look and preferential
negotiation properties defined in therights of first look and preferential
negotiation agreement
Rampway MFLP Facilities

Slope MFLP Facilities

Box MFLP Facilities
Properties developed by
Mitsui Fudosan
Rampway MFLP Facilities

Slope MFLP Facilities

Box MFLP Facilities

Access point

Mitsui Fudosan’s strategic
area

13

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

Access (distance) tonearest expressway interchange

Greater
5 km or moreTokyo
Nagoya area
Within5km,
8.6%
metropolitan area
Kansai area 8.6%
but 3 km or more
86.7%
25.2%
4.7%

Tokyo
metropolitan Shutoarea and Expressway
Wangan Line
Ken-O Kansai area 33.9%

Expressway

28.4%

91.4

Within 1 km
18.5%

Access (time) tonearest train station

By bus(30 min. or less,but more than 20 min.)
8.1%

Withinwalking distance(20 min. or less)
41.2%

Within 5 km

20 min. or less

91.4%

91.9%

Within 3 km,
but 1 km or more
47.8%

By bus(20 min. or less)
50.6%

%

National
Route 16

14.4%

Tokyo-Gaikan
Expressway

10.0%* The pie graphs above are the figures as of March 15, 2018, calculated on an acquisition price basis.

14

3-1-2. Quality
MFLP-REIT focuses investment in “leading-edge logistics facilities with Mitsui Fudosan quality”
realized by applying Mitsui Fudosan’s know-how as a comprehensive developer
Mitsui Fudosan quality
Basic specifications of leading-edge logistics facilities
Storage space

Large-sized
Largesite
sized site

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

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

MFLP SakaiHigh performance

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

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

＆ Worker

Cafeteria, shops

Emergency power generator

MFLP Sakai

MFLP Kashiwa＆ Tenant

Parcel pickup
lockers

Bicycle rentals

LaLaport
discount tickets＆ Community

Commuter shuttles

Car sharing

BCP measures

ICT LABO＆ Earth
Employees
working
at MFLPSpace for exchange

Adoption of seismic isolation

Promotionof useNeighborhood
storesDiscount
service etc.

Childcare facilities Promotion of use of nearby stores

Solar panels

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

15

3-1-3. Balance
Securing growth and stability by building a balanced portfolio through acquisitionof MFLPs developed in consideration of land characteristics and tenant needs
Logistics facilities

Industrial real estate

Investment ratio: 80% or more

Investment ratio: 20% or less

Logistics
needs

Shipping needs

Storage needs

Tenant typeMulti-tenant type

Single tenant type

Rampway MFLP
MFLP Hino
Multi

Slope MFLP
MFLP Komaki

Box MFLP

Mainly long-term BTS type

Rampway
38.3%

Data center
2.2%
Box
30.5%

MFIP
(Mitsui Fudosan Industrial Park)

MFLP Hiratsuka
Other *1

SingleData center, etc.

Investment ratio
by property type

MFIP Inzai
BTS

Slope

29.0%
GLP/MFLP
Ichikawa Shiohama
Multi

MFLP Kuki
Multi

MFLP Yashio
Multi* Acquisition price basis

Investment ratio
by tenant typeBTS Other
2.2% 7.1%

MFLP Sakai
Multi

MFLP Yokohama Daikoku
Multi

MFLP Atsugi
SingleMFLP Funabashi NishiuraSingleMFLP Kashiwa

Multi
60.8%

Single29.8%* Acquisition price basis

Single*1 “Other” refers to a property for which the classification (multi or single) cannot be disclosed in this material as consent for disclosure has not been obtained from the lessee.

163-2. External Growth (1)Stable growth utilizing the growth potential and extensive pipeline of Mitsui Fudosan’s logistics facilities business

Client firms

Various CRE needs
Re-establishment ofcorporate logistics

Utilization of idle land

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

Development ofcorporate infrastructure

Proposal of
CRE strategies
Sale ofreal estate, etc.

Mitsui Fudosan’s major development/operation track record: 28 facilities 400.0 billion yen 2,400,000 m2 in total floor area *1
Construction completionin fiscal 2013 or before

Construction completionin fiscal 2014
Partially acquired
一部取得済

MFLP
Yokohama Daikoku

MFLP Sakai(80%)*3

Construction completionin fiscal 2015

Construction completionin fiscal 2016

Construction completionin fiscal 2017

Construction completionin fiscal 2018

MFLP Fukuoka I(81%)*3

MFLP Inazawa

MFLP Atsugi II

GLP/MFLP
Ichikawa Shiohama

Construction completionin fiscal 2020 or after

MFLP Kawaguchi I

MFLP Osaka I

MFLP Atsugi III

Tokyo Rail Gate
EAST

Partially acquired

MFLP Hino(85%)*3

NEW

Partially acquired

MFIP Inzai(80%)*3

Construction completionin fiscal 2019

MFLP Kashiwa

MFLP Hiratsuka

MFLP Ibaraki

MFLP Prologis Park
Kawagoe (50%)*3

MFLP Haneda

MFLP Yashio

MFLP Kuki

MFLP Komaki

MFLP Tsukuba
MFLP Kawasaki I

MFLP Atsugi

MFLP
Funabashi Nishiura

MFLP Funabashi I

MFLP Funabashi II

Other data centers (2 properties)*1: Based on materials released by Mitsui Fudosan as of July 20, 2017.
For details, please refer to “About major properties developed/operated by Mitsui Fudosan” on p. 38 of this presentation material.
*2: Properties with construction completion slated for fiscal 2017 or after are those planned and are subject to change without prior notice.
*3: The percentage figure in parentheses is the percentage of quasi co-ownership interest subject to the “Right of first look and preferential negotiation agreement.”

Further development of Mitsui Fudosan’s logistics facilities business

Acquiring properties through proposal of corporate real estate (CRE) strategies, etc. by Mitsui Fudosan

Properties held by
MFLP-REIT
Properties defined in“Right of first look andpreferential negotiationagreement”

NEW

Properties newly-announced by Mitsui
Fudosan as of December 15, 201717

3-2. External Growth (2)Continuous acquisition of properties to achieve the target asset size of 200 billion yen by fiscal 2020
Change in size of Mitsui Fudosan’s logistics facilities development and MFLP-REIT’s asset size
Cumulative total of total floor area of properties (to be) developed/operated by Mitsui Fudosan (after subtracting areas of
MFLP-REIT’s portfolio assets and of properties defined in “Right of first look and preferential negotiation agreement”)(construction completion time basis)
Total of total floor area of properties defined in “Right of first look and preferential negotiation agreement”(construction completion time basis)

Further growth of Mitsui
Fudosan’s logistics
facilities businessTotal of total floor area of portfolio assets

August 2016
Listing of
MFLP-REIT

Target asset size

200.0 billion yen
April 2012

April 2015

Establishment of“Logistics Properties
Department”
in Retail Properties
Divisionat Mitsui Fudosan

Transition from
Logistics Properties
Department to“Logistics Properties
Business Division”
at Mitsui Fudosan

Fiscal 2016 Fiscal 2017
(planned)

Fiscal 2018
(planned)

Properties defined in “Right of first look and preferential negotiation agreement”

8 properties 750,000*1
m2 (Total floor area)

MFLP-REIT’s asset size
12 properties 450,000 m2 (Total floor area) 98.3 billion yen

Fiscal 2019 Fiscal 2020
or after(planned)(planned)
Further expansion of properties defined in “Right offirst look and preferential negotiation agreement”

Continuous external growth*1 : The floor area subject to the “Right of first look and preferential negotiation agreement” (after taking into consideration the quasi co-ownership interest).

18

3-3. Internal Growth (1)Stable management utilizing the platform (business foundation) and client network of the Mitsui Fudosan Group
Effectively utilizing the Mitsui Fudosan Group’s client
network in leasing

Status of tenant diversification
Hitachi Transport System

Other

MFLP-REIT believes that it can stably manage its portfolio by utilizing thebroad and strong network that the Mitsui Fudosan Group has developed.

H&M
Suzue Corporation
Sagawa Global Logistics
Domestic major apparelOccupied by an abundant number of tenants that share a
relationship with Mitsui Fudosan

Domestic 3PL
Lease
agreement

NIPPON EXPRESS

Tenantdiversification

Rakuten
Kimura Unity

E-LogiTEnd userDAIWA Co.

KOKUBU

Owner oflogistics facility

Sun Toshi
Tatemono

Logistics
agencyagreement

Lease
agreement

Logistics
firm

Status of lease agreements

Status of occupancy rates(%) 100

End user(3PL operator, etc.)

Average contract
periodRemaining lease
contract period

5.9 years

98

Averageoccupancy rate

96

Average 3.5 years

100%

94

Can directly approach logistics
firms and end users regardless ofcontract type

92
90
Aug. 31,2016

Jan. 31,2017

Mar. 15,
2018

Status of staggering of contract expiration periods
Fully leveraging the Mitsui Fudosan Group’s broad client network
10.8%
Strong relationships
with leading 3PL
operators

4.6%

3.0%
4th FP
ending
2018/07

10.4%

12.0%

10.2%

7.1%

5.6%
1.1%

5th FP
ending
2019/01

6th FP
ending
2019/07

7th FP
ending2020/01

8th FP
ending2020/07

9th FP
ending2021/01

10th FP
ending2021/07

11th FP
ending2022/01

12th FP
ending2022/07～～

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

19.4%

16.0%

13th FP
ending2023/01

14th FP or
after* As of March 2017
* Each graph above is on the basis of leased area as of March 15, 2018.

19

3-3. Internal Growth (2)Steady internal growth through provision of solutions-based asset management andmaintaining relationships with tenants over the medium to long term
Key points of future asset management plans

Specific examples in 3rd fiscal period

Solutions-based asset management

Challenges facing logistics firms

Labor shortage

Addressing
BCP, etc.

Increasing
the efficiency
of operations

Win-Win-Win achieved for all parties; the tenant, end
user and MFLP-REIT
Property manager
Mitsui Fudosan

End user

Issues

Effect

MFLP-REIT(3PL operator, etc.)

End user

Tenant A(3PL)

Tenant B
Sense offuture rises indelivery costs(3PL)
Responding toautomation

There are some sections not
being used (no end user)
Not capable of accommodating
to End user B’s needs for floor
expansion⇒ Risk of cancellation
Current section is not enough to

End user B store any additional freight
100% occupancy rate

MFLP-REIT ⇒Vacancy risk due to tenant’s

Proposal to sub-lease
Tenant A’s unusedsection to End user B

Logistics firm

move-out

Specific examples of solutions-based asset managementby Mitsui Fudosan Group・ Eliminates unused sections

Win・ Satisfies needs for floor
expansion⇒Avoids cancellation risk

Win・ Storage of additional freight
becomes possible

Win・ Eliminates vacancy risk・ Significantly extends contract
expiration periods for both
Tenant A and Tenant B

WinStore End user B’s
additional freight in Tenant
A’s unused section

 Consulting support to help tenant companies secure staff
 Matching of 3PL operators and end users
 Establishment of comfortable environment for those working
within facilities (further upgrading of amenities, grant of
incentives at Mitsui Fudosan retail properties, etc.)

Tenant A

Floor occupied
by A

End user A

Tenant B

Floor occupied
by B

End user B

End
user B Proposal of capital investment within warehouses

203-4. Financial Strategy (1)Financial management with an emphasis on stability
MFLP-REIT will aim to establish a stable bank formation centered on funding from major domestic financial institutions.
In addition, plans are to engage in debt financing with due consideration of such factors as lengthening of borrowing periods andstaggering of maturities.

Status ofdebt financing

Total interest-bearing debt

Status of borrowings*

Average borrowing interest rate

End of 3rd fiscal period

After public offering*

End of 3rd fiscal period

After public offering*

18.0 billion yen

24.7 billion yen

0.28%

0.28%

The Yamaguchi Mitsui Sumitomo
InsuranceBank
The Norinchukin 2.4% 2.4%
Bank 4.5%
Nippon Life
Insurance Company

Interest-bearing debt maturity ladder*
5,000

4,600

6.0years

4,000

3,400

3,000
2,000

3,100
2,000

1,900

1,500
1,000

～
～

12th FP
ending2022/07

13th FP
ending2023/01

14th FP
ending2023/07

15th FP
ending2024/01

16th FP
ending2024/07

17th FP
ending2025/01

Sumitomo
for all 11 financial
Mitsui17.4 Trust
institutions
8.5%
24.7 billion yen
%
Bank

8.5%

1,900

1,400

4th FP
ending
2018/07

The
Bank of
Fukuoka

3,000

1,000
0

6.1%
MizuhoTrust &
7.7% Total amountBanking

Average time to maturity(long-term only)(million yen)

18.2%

Sumitomo
Mitsui
Banking
Corporation

18th FP
ending2025/07900

19th FP
ending2026/01

20th FP
ending2026/07

21st FP
ending2027/01

22nd FP
ending2027/07

Development
Bank of
Japan

12.1%
MizuhoBank

12.1%
Mitsubishi UFJ
Trust andBanking
Corporation

23rd FP
ending2028/01

Status of LTV
End of 3rd fiscal period

End of 4th fiscal period (Forecast)End of 5th fiscal period (Forecast)Medium- to long-term stabilized level

22.5%

24.2%

23.6%

40% to 50% range

Credit rating assignment*
Credit rating agency

Rating details

Remarks

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA-

Rating outlook: Stable*As of March 15, 201821

3-4. Financial Strategy (2)Efficient cash management
Based on the characteristics of logistics facilities, such as the ratio of building value to land value being typically high, MFLP-REIT intends
to make cash distributions, including distributions in excess of earnings, on an ongoing basis each term from a perspective of securing
stable distribution levels while managing cash efficiently.

Diagram of cash distribution based on FFO

Leasingbusiness
expenses,
SG&A, etc.

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

Pay distributions
based on a threshold of
70% of FFO

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

FFO

Securing long-term building maintenance expenditures
Rentalrevenue

Depreciation

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

Distributions
in excessof earnings

Profit *(Net Income)Distributionsof earnings

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

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

* Appraisal LTV ratio =Interest-bearing debt ÷ (Total assets - Book value of portfolio real estate, etc. + Appraisal value)223-5. Unitholder Relations
Maximization of unitholder value through establishment of strong relationship of trust with unitholders

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

Asset
management
fee I

Total assets × 0.1% (maximum)

Asset
management
fee II

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

Asset
management
fee III

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

Same-boat investment in MFLP-REIT by Mitsui Fudosan
MFLP-REIT receives 11% investment in capital from Mitsui Fudosan. (As of March 15, 2018)
Receiving certain investment in capital leads to alignment of the interests of MFLP-REIT’s unitholders and Mitsui Fudosan and asset management that pursues
mutually greater interests.

11.0%

23

4. Logistics Market Overview

244-1. Logistics Market Overview (1)Supply-demand balance and vacancy rate
Greater Tokyo area

New supply

Net absorption

Greater Osaka area
Forecast(thousand m2)

Forecast

11.0%

7.0%

11%

1,500

3.0%

1,000

7%

-1.0%
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

500

3%

0

-1%
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

8%

7.0%
5.0%

500

3.0%
1.0%

0

-1.0%
2010

(year)(thousand m2)

750

9.0%
1,000

1%

(year)(thousand m2)

11.0%

1,500

5%

1.0%
0

13.0%

9%

5.0%
500

15.0%

2,000

13%

9.0%
1,000

Forecast(thousand m2)
15%

2,000

13.0%
1,500

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

(thousand m2)
15.0%

2,000

Vacancy rate

2011

2012

2013

2014

2015

2016

2017

2018

2019

(thousand m2)

750

12.7%

14%

750

18%
16%

12%

14%

6%
500

10%
500

12%

500
8%

3.30%

4%

10%

5.7%

5.1%

6%
250

250

1.1%

4%

2%

0%
Q1

Q2

Q3

2016

Q4

Q1

Q2

Q3

2017

Q4

8%
6%

250

4%
2%

0

(year)

0

0%
Q1

Q2

Q3

2016

Q4

Q1

Q2

Q3

2017

Q4

3.6%

2%
0%

0
Q1

Q2

Q3

2016

Q4

Q1

Q2

Q3

Q4

2017

*1: Source: CBRE K.K. (including forecast figures), as of December 31, 2017
*2: The survey is of rental logistics facilities that are held by real estate investment companies, real estate development companies, etc. and have total floor area of 5,000 m2 or more.

25

4-1. Logistics Market Overview (2)Supply-demand balance and vacancy rate by submarket
Greater Tokyo
area

Greater
Osaka area
Osaka
inland area

Tohoku/Ken-O
Expwy area

Kan-Etsu/Ken-O
Expwy area

Other area

National Route 16 area

Osaka bay /Kobe area
Tokyo-Gaikan Expwy area

Narita area

Greater Nagoya area

Hachioji area

Chiba inland area
Greater
Nagoya area
Kanagawa inland area

: New supply in 2016 and 2017
: Net absorption in 2016 and 2017
= 100 thousand m2

Greater Tokyobay area: Vacancy rate 0–5%

: Submarket areas: Vacancy rate 5–10%: Mitsui Fudosan’s strategicareas: Vacancy rate 10%–
* As at end of December 2017

*1: Source: CBRE K.K. (numerical figures only)*2: The survey is of rental logistics facilities that are held by real estate investment companies, real estate development companies, etc. and have total floor area of 5,000 m2 or more.

26

4-1. Logistics Market Overview (3)Japan’s logistics facilities stock

Mounting demand due to 3PL businessand e-commerce market size expansion

Stock of logistics facilities in 2016
Leading-edge logistics facilities
Approx. 3.5%

Logistics facilities over 40 years old
Approx. 28.6%

600

30%

500

25%

400

20%

300

15%

200

10%

100

5%

0

(100 million yen)

Expanding 3PL market and e-commerce market

Estimate for logistics facilities
築40年未満の推計値
less than 40 years old
Share of leading-edge logistics facilities
先進的物流施設シェア

20,000100,000
10,00050,0000
2005

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

10,000Retail
12%

5,000

2016

2013

2010

2007

2004

2001

1998

1995

1992

1989

1986

1983

1980

1977

1974

1971

1968

1965

1962

0

1959

2008

2009

2010

2011

2012

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

2014

2015

2016

Net sales of 3PL operators
3PL事業者売上高（右軸）(right axis)

Other
3%

(year)

Other

3%

Logistics

9%
Manufacturing

42%

Share bytenantbusiness type
Logistics
72%(year)

2013

Tenants / End users of logistics facilities

Wholesale10%

15,000Source: CBRE K.K.

2007

* Figures compiled by CBRE K.K. based on the data of “Monthly Logistics Business (LOGI-BIZ)” and theMinistry of Economy, Trade and Industry.

Manufacturing
3%

Over 40 years old

2006

Net sales of e-commerce
Eコマース売上高（左軸）(left axis)* Estimates by CBRE K.K. based on “Building Starts” (Ministry of Land, Infrastructure, Transport and Tourism) and“Summary Report on Prices, etc. of Fixed Assets” (Ministry of Internal Affairs and Communications).
For details, please refer to “About analysis of Japan’s logistics facilities stock” on p. 38 of this presentation material.

20,000

0

Leading-edge logistics facilities
先進的物流施設

25,00030,000150,000

0%20042005
20052006
2006 2007
2007 2008
2008 20092009 20102010 2011
2011 20122012 20132013 20142014 2015
2015 20162016 (year)
2004
Estimate for logistics facilities
築40年以上の推計値
40 years old or older
Share of logistics facilities
築40年以上のシェア
40 years old or older(thousand m2)

200,000(100 million yen)(million m2)

Analysis of Japan’s logistics facilities stock

Share byend userbusiness type

Retail36%

Wholesale

10%

Source: CBRE K.K.
* The survey is of rental logistics facilities that are held by real estate investment companies, real estatedevelopment companies, etc. and have total floor area of 5,000 m2 or more as of the end of December 2016.

27

4-1. Logistics Market Overview (4)[Reference] Specific examples of broader demand for leading-edge logistics(including MFLP Hino and properties defined in “Right of first look and preferential negotiation agreement”)
Standard floor area of over 33,000 m2

MFLP Hino

Section A

Rise of Omni channel in commerce business operators

Section B

Rampway foroutgoing trucks

Rampway forincoming trucks

OfficeActual store

Truck berth
Driveway
Truck berth

OfficeSection A

Section B

Section C

Size of logistics facilities development in the metropolitan area

Commerce business
operator

Consumer
Logistics base

Attracting delivery bases of convenience stores
Case example of logistics bases consolidation and subdivision
within a logistics facility, and attracting delivery center equippedwith store-by-store sorting function and chiller Convenience store
Conventional

Wholesaler

Manufacturer

Store

Manufacturer

MFLP Hino

Wholesaler

Consolidation of logistics bases

LOGIPORT Sagamihara

Convenience store

MFLP Funabashi I

Manufacturer
Afterconsolidation

GLP Kawasaki

Delivery center

Store

Manufacturer

0～～

Prologis Park Kawajima

150,000

200,000(Total floorarea (m2))

Integration of logistics bases

Trends inrecent years

Diversification of items other than medicine, such as fresh food and drinks
and increase of the number of stores→ Efficient delivery from large-scale logistics facilities addressing BCP

Consolidation of separately locatedwarehouse for parts, assembly plant andwarehouse for finished products into one baseAfterintegration

MFLP

Transport

Retail stores / Consumers

Selling only medicine

Warehouse forfinishedproducts

Transport

Conventional

Conventional

Assemblyplant

Transport

Capturing logistics demand generated from diversification of
drug store businessTransport

Warehousefor parts* Prepared by the asset management company based on materials on the survey of rental logistics facilities in the metropolitan
area with total floor area of 5,000 m2 or more that were developed by real estate companies, etc. in or after 2002 andcompleted as of December 31, 2016, which CBRE K.K. tallied as of December 2017.

28

5. Appendix

29

Statement of Income and Balance Sheet
Statement of income

Balance sheet(Unit: million yen)

(Unit: million yen)

Item

Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses
Expenses related to rent business

2nd fiscal period

3rd fiscal period(ended July 31, 2017)(ended Jan. 31, 2018

ActualActual

2,548

2,629

2,456

2,523

91

106

1,367

1,390

1,071

1,086

Asset management fee

223

232

Asset custody and administrative service fees

19

17

Directors’ compensations

5

5

Other operating expenses

47

47

1,181
1
30

1,239
0
54

24

26

Operating income
Non-operating income
Non-operating expenses
Interest expenses
Deferred organization expenses--

Investment unit issuance expenses
Other offering costs associated withissuance of investment units
Other

-

23

-

-

6

4

1,152
1,152
0
1,151
1,151

1,185
1,185
0
1,184
1,184

Ordinary income
Profit before income taxes
Income taxes
Profit (Net Income)Unappropriated retained earnings

Item

Current assets
Cash and deposits
Cash and deposits in trust
Consumption taxes receivable
Other current assets
Non-current assets
Property, plant and equipment
Investments and other assets
Total assets
Current liabilities
Operating accounts payable
Short-term borrowings
Accounts payable – other
Income taxes payable
Accrued consumption taxes
Advances received
Other current liabilities
Non-current liabilities
Long-term borrowings
Tenant leasehold and security
deposits in trust
Total liabilities
Total unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Total net assets
Total liabilities and net assets

2nd fiscal period

3rd fiscal period(ended July 31, 2017)(ended Jan. 31, 2018

ActualActual

3,860

2,176

2,365
1,415
79

344
1,670
102
58

74,951

77,691

74,93020

77,633
58

78,811

79,868

913

888

58
272
0
159
421
0

164
317
0
404
1

18,45019,54417,00018,000

1,450

1,544

19,36359,447

20,43359,43458,350(54)
58,296
1,151

58,350(100)
58,2501,184

59,44778,811

59,434
79,86830

3rd Fiscal Period Individual Property Income Statement(Unit: million yen)

184 days

184 days

Portfolio
total

184 days

181 days

184
days

-

184 days

184 days

184 days

184 days

Leasebusiness
revenue

448

436

332

157

2,523

Other
lease businessrevenue

31

33

18

10

106

Total

480

470

350

167

2,629

Outsourcing
expenses

34

30

24

Utilityexpenses

18

24

15

7

75

Repairexpenses

1

4

4

0

12

Propertyrelated taxes

37

43

39

17

244

Other
expenses

1

2

1

0

10

Total

92

105

84

-

-

-

-

36

-

-

490

Depreciation

79

107

85

62

63

50

49

43

35

18

595

Operating income (loss)
from real estate leasing

307

257

180

196

159

133

118

88

58

42

1,542

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

387

364

265

258

223

183

168

131

94

61

2,138

Operatingexpensesfromreal estateleasing

184 days

MFIP
Inzai

MFLP
YashioNotdisclosed *MFLP
Kashiwa

MFLP
Sakai

MFLP
Kuki

Operatingrevenuefromreal estateleasing

MFLP
Atsugi

MFLP
Funabashi
Nishiura

MFLP
Komaki(40% quasi
co-ownershipinterest)

MFLP
Yokohama
Daikoku

Number of days ofasset management

GLP/MFLP
Ichikawa
Shiohama

Notdisclosed *Notdisclosed *Notdisclosed *10

Notdisclosed*

Not
disclosed *146* Not disclosed, because consent has not been obtained from the lessee.

31

Appraisal Summary for the End of 3rd Fiscal Period(Unit: million yen)

Acquisitiondate

Acquisition
priceBook value at
end of 3rd
fiscal period

End of
2nd fiscal period(End of July 2017) (a)End of
3rd fiscal period(End of Jan. 2018) (b)Appraisal
value

Appraisal
value

*1

CR

*1

CR

Change(b)-(a)Appraisalvalue

Main factors of change
*1

*1

CR

CR

Other

GLP/MFLP
Ichikawa Shiohama

2016/0915,50015,363

16,6004.2%

16,650

4.2%

＋50

0

-

-

MFLP Kuki

2016/08

12,50012,256

13,4004.8%

13,500

4.8%

＋100

0

-

○

MFLP
Yokohama Daikoku

2016/08

10,1009,929

10,500

4.6%

10,500

4.6%

0

0

-

-

MFLP Yashio

2016/08

9,650

9,519

10,400

4.5%

10,600

4.5%

＋200

0

-

○

MFLP Atsugi

2016/08

7,810

7,679

8,350

4.7%

8,620

4.6%

+270

-0.1

○

-

MFLP
Funabashi Nishiura

2016/08

6,970

6,857

7,490

4.6%

7,490

4.6%

0

0

-

-

MFLP Kashiwa

2016/08

6,300

6,199

6,710

4.6%

6,870

4.6%

+160

0

-

○

MFLP Sakai

2016/08

4,500

4,405

4,930

4.7%

4,930

4.7%

0

0

-

-

MFIP Inzai

2016/08

2,180

2,160

2,440

4.8%

2,440

4.8%

0

0

-

-

MFLP Komaki

2017/08

3,249

3,244

-

-

3,330

4.7%

-

-

-

-

-

78,75977,61580,820

4.6%

84,930

4.6%

＋780

0

-

-

2018/02

5,011

5,011

-

-

5,100

4.7%

-

-

-

-

MFLP Hino

2018/02

7,520

7,520

7,570

4.3%

-

-

-

-

MFLP Hiratsuka

2018/03

7,027

Amount of difference= Unrealized
gain 7,497 million yen

7,027

-

-

7,070

4.5%

-

-

-

-

Total or Averageas of March 15, 2018-98,317

97,173--

104,670

4.5%

-

-

-

-

(40% quasi co-ownership interest)

Total or Average as ofthe end of 3rd fiscal
periodReference: As of March 15, 2018*2
MFLP Komaki(60% quasi co-ownership interest)*1 CR = Capitalization rate based on direct capitalization method (NCF basis)*2 Book value at end of 3rd fiscal period as of March 15, 2018 indicates acquisition price of each property, and appraisal value at the end of 3rd fiscal period indicates appraisal value with
November 30, 2017 as the date of value.

32

Mitsui Fudosan’s Major Development/Operation Track Record
Fiscal year of*2completion

FY2013

FY2015FY2016FY2017FY2018Acquisition by MFLP-REIT *3

Property defined in “Right offirst look and preferential
negotiation agreement” *4

MFLP Yokohama Daikoku

Yokohama, Kanagawa

100,530 m2● (50%)－

GLP/MFLP Ichikawa Shiohama

Ichikawa, Chiba

105,019 m2● (50%)－MFLP Yashio

Yashio, Saitama

40,728 m2●－

MFLP Kuki

Kuki, Saitama

73,153 m2●－

MFLP Sakai

Sakai, Osaka

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

Funabashi, Chiba

30,947 m2●－

MFLP Atsugi

Aiko, Kanagawa

40,942 m2●－

MFIP Inzai

Inzai, Chiba

40,478 m2● (20%)● (80%)MFLP Hino

Hino, Tokyo

205,200 m2● (15%)● (85%)MFLP Kashiwa

Kashiwa, Chiba

31,242 m2●－

MFLP Funabashi I

Funabashi, Chiba

197,746 m2－－

MFLP Fukuoka I

Kasuya, Fukuoka

32,199 m2－● (81%)MFLP Hiratsuka

Hiratsuka, Kanagawa

33,061 m2●－

MFLP Komaki

Komaki, Aichi

40,597 m2●－

MFLP Inazawa

Inazawa, Aichi

72,883 m2－●

MFLP Ibaraki

Ibaraki, Osaka

230,435 m2－●

MFLP Tsukuba

Tsukubamirai, Ibaraki

25,458 m2－－

MFLP Atsugi II

Isehara, Kanagawa

54,791 m2－●

MFLP Prologis Park Kawagoe

Kawagoe, Saitama

131,298 m2

－
－

－

NEW

● (50%)MFLP Kawaguchi I

Kawaguchi, Saitama

Approx. 54,100 m2

MFLP Atsugi III

Hiratsuka, Kanagawa

Approx. 43,400 m2－－

Ota, Tokyo

Approx. 84,400 m2－－

MFLP Kawasaki I

Kawasaki, Kanagawa

Approx.41,500 m2－－

MFLP Funabashi II

Funabashi, Chiba

Approx. 225,000 m2

－

－

－

－

MFLP Haneda

FY2020MFLP Osaka I

Osaka, Osaka

Approx. 48,300 m2

FY2021

Tokyo Rail Gate EAST

Shinagawa, Tokyo

Approx. 161,000 m2－－

Other data centers (2 properties)

－

－

－

－

TBD
*1:
*2:
*3:
*4:

Total floor area

Flow regarding provision ofright of first look information
Propertydeveloped/operatedby Mitsui Fudosan

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

Prioritized provision of
information upon sale

Preferential negotiation
periodAcquisition of property
by MFLP-REIT

MFLP-REIT

FY2019Location

Mitsui Fudosan

FY2014

Propertydeveloped/operated

For details of Mitsui Fudosan’s major development/operation track record, please refer to p. 38.
In the case of MFLP Yokohama Daikoku, it is the fiscal year in which the property began to be under its operation. The fiscal year of completion of the property is fiscal 2009.
The percentage figure in parentheses is the percentage of quasi co-ownership interest in the portfolio asset.
The percentage figure in parentheses is the percentage of quasi co-ownership interest subject to the “Right of first look and preferential negotiation agreement.”

33

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

• Reduction of CO2(including supportinguse of low-carbon
transportation)• Aquatic conservation• Reduction of harmful
substances• Resource saving andreduction of wastematerial

A wide range of collaboration/
cooperation with various entities• Co-existence with local communities• Proactive action towards tenants andowners• Collaboration/cooperation with design,
construction, energy, manufacturing firms,
etc.
• Further collaboration/cooperation withlocal communities, government, andresearch institutes including universities

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

Solar panels

LED lights

MFLP Sakai

MFLP Kashiwa

Eco-friendly green buildings
Reduction ofenvironmental
load

Improvement ofpeace of mind
and safety andsecurement ofsustainability• Improvement of peace of mind and safety• Conservation and utilization of naturalenvironment (conservation of biodiversity)• Conservation and utilization of landscapeand townscape• Improvement of health and comfort

MFLP-REIT has obtained CASBEE and DBJ Green Building
Certification for the following 10 properties. Furthermore,
MFLP Sakai has received the Osaka Eco-friendly
Construction Award. As such, MFLP-REIT proactively
incorporates environmentally conscious green buildings.

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

Cafeteria, shops

Commuter shuttle

Property name
GLP/MFLP Ichikawa Shiohama

CASBEE (Real estate) Rank S
CASBEE (New construction) Rank A *1

MFLP Kuki

CASBEE (New construction) Rank A *1

MFLP Yashio

CASBEE (New construction) Rank A *1

MFLP Atsugi

CASBEE Kanagawa Rank A *2
DBJ Green Building Certification 4 Stars

MFLP Funabashi Nishiura

CASBEE (New construction) Rank A *1

MFLP Kashiwa

CASBEE (New construction) Rank A

MFLP Sakai

CASBEE (New construction) Rank S *1
FY2015 Osaka Eco-friendly Construction Award(Commerce, other category)

MFLP Yokohama Daikoku

DBJ Green Building Certification 5 Stars

MFLP Komaki

CASBEE Aichi Rank A *2

MFLP Hiratsuka

CASBEE Kanagawa Rank A *2

Implemented beautification activities (cleaning)

Designated as a tsunami evacuation building(MFLP Sakai)

Evaluation/Award history, etc.

*1: Certification has already expired as of March 15, 2018.
*2: CASBEE Kanagawa and Aichi is not certified by a third-party but an assessment based on self-reporting.

34

Initiatives for ESG– Initiatives for Governance with Consideration for Unitholders’ Interests
MFLP-REIT and the Asset Management Company are working to establish proper governance through the following measures in order to build a solid relationship oftrust that aligns interests of unitholders and interests of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders’ rights.

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

*2

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

Total assets × 0.1% (maximum)

Asset
management
fee II

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

Asset
management
fee III

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

Same-boat investment in MFLP-REIT by Mitsui Fudosan
MFLP-REIT receives 11.0% investment in capital from Mitsui Fudosan.
(As of March 15, 2018)
Receiving certain investment in capital leads to alignment of the interests of
MFLP-REIT’s unitholders and Mitsui Fudosan and asset management that
pursues mutually greater interests.

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

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

35

Interest Rate Market Data/Status of Interest-Bearing Debt
10-year Japanese government bond yield and benchmark interest rate trends
(%)

1.3
1
0.7
0.4
0.1
-0.2
-0.5
2013/01/31

2013/07/31

2014/01/31

2014/07/31

2015/01/31

10-year Japanese
government bond yield

Long-term borrowings
LenderAmount(millionyen)*1: Long-term borrowings are all borrowings at fixedinterest rates.
*2: Repayment methods are all bullet repayments.
(As of January 31, 2018)
Interest
rate *1

Borrowingdate *2

Maturity
date

2,000

0.2713%2022/9/1

6 years

1,500

0.4213%2026/9/1

10 years

Sumitomo Mitsui Trust Bank,
Limited2,000

0.3050%2023/9/1

7 years

1,500

0.3813%2025/9/1

9 years400

0.1425%2022/8/2

6 years

Mitsubishi UFJ Trust and Banking
Corporation
Mizuho Trust & Banking Co., Ltd.

1,700

0.2113%2024/8/2

8 years

2,200

0.1826%2023/3/1

6.5 years

600

0.3237%2024/3/1

7.5 years

700

0.3425%2024/9/2

8 years

Development Bank of Japan Inc.

2,100

0.3125%2026/8/3

10 years

The Bank of Fukuoka, Ltd.

1,300

0.2169%2024/2/2

7.5 years

1,000

0.3125%2026/8/3

10 years

500

0.2575%2022/8/4

5 years500

0.2575%2022/8/4

5 years

Nippon Life Insurance Company
The Norinchukin Bank
Total long-term borrowings

18,0002016/01/31

1-month Japanese yen
TIBOR

Sumitomo Mitsui Banking
Corporation

Mizuho Bank, Ltd.

2015/07/31

Borrowing
period2016/07/31

2017/01/31

2018/01/31

10-year swap rate

Commitment lines
Lender2017/07/31

Amount(millionyen)(As of January 31, 2018)
Balance ofborrowings(million yen)Contract
start date

Contract
deadline

Remarks

Sumitomo Mitsui
Banking Corporation

3,000

0

2016/8/2

2020/8/3

Unsecured
Nonguaranteed

Sumitomo Mitsui
Trust Bank, Limited

3,000

0

2016/9/1

2020/8/31

Unsecured
Nonguaranteed

Unsecured
Nonguaranteed

36

Investment Unit Price Trends/Status of Unitholders
Investment unit price firm since IPO
Investment
unit price
投資口価格（終値）(closing price)(yen)
390,000

TSE
REIT Index
東証REIT指数(indexed)

370,000
350,000
330,000
310,000
290,000

IPO issue price: 270,000 yen
270,000
250,000
230,000

2016/08/02
2016/07/31

2016/10/31

2017/01/31

2017/04/30

2017/07/31

2017/10/31

2018/01/31* The starting point is the price of the first trade at IPO.
* The TSE REIT Index is indexed to the August 2, 2016 opening price.

Status of unitholders at end of 3rd fiscal period (end of January 2018)
Number of unitholders and number of investment units
by type of unitholder
Number of
Number of

Major unitholders at end of 3rd fiscal period
Number ofinvestment
units

% of
total

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

41,674

18.6%

Japan Trustee Services Bank, Ltd. (trust account)

34,485

15.4%

Mitsui Fudosan Co., Ltd.

28,900

12.9%

16.3%

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

10,586

4.7%

5,405

2.4%

JPMorgan Chase Bank 385632

6,979

3.1%

224,000

100.0%

122,62454.7%

unitholders% of total

investment
units% of total

Individuals/Other

4,682

92.3%

16,974

7.6%

Financial institutions

106

2.1%

129,385

57.8%

Other Japanese
corporations

154

3.0%

35,82416.0%

Non-Japanese

111

2.2%

36,412

Securities companies

20

0.4%

Total

5,073

100.0%

8

Total

37

Notes on Matters Stated in this Document[About financial highlights]*1
Appraisal value indicates the total of appraisal values indicated in the appraisal reports with January 31, 2018 as the date of value for the portfolio assets as of the end of the 3rd
fiscal period; and such indicated in the appraisal reports with November 30, 2017 as the date of value for the properties acquired in the 4th fiscal period (including MFLP Komaki(60% quasi co-ownership interest)).
*2
Unrealized gain indicates the book value at the end of the fiscal period for the portfolio assets as of the end of the 3rd fiscal period; and the figure obtained by subtracting
appraisal value from the total acquisition price for the properties acquired in the 4th fiscal period.
*3
Occupancy rate is the occupancy rate on a contract basis. The occupancy rate for 4th fiscal period (After property acquisition) is as of March 15, 2018.
*4
LTV ratio = Balance of interest-bearing debt ÷ Total assets*5
Including distribution in excess of earnings. (Number of investment units issued and outstanding: 224,000 units at the end of 3rd fiscal period, 262,774 units forecast for the end of
4th fiscal period)*6
NAV per unit
End of 3rd fiscal period (Actual): (Net assets + Unrealized gain on appraisal basis) (=NAV as of the end of 3rd FP) / Number of investment units issued and outstanding (224,000
units)
4th fiscal period (After property acquisition): (NAV as of the end of 3rd FP + Unrealized gain based on the appraisal value of properties acquired in the 4th FP + Total issue
amount of the first public offering) / Number of investment units issued and outstanding (262,774 units)[About major properties developed/operated by Mitsui Fudosan]
Descriptions of major properties developed/operated by Mitsui Fudosan in this document are based on materials released on July 20, 2017 by Mitsui Fudosan.
“28 facilities 400.0 billion yen 2,400,000 m2” includes 13 properties under development or scheduled to be developed as of the date and their (planned) investment amounts. Properties
scheduled to be developed include those targeted or planned by the Mitsui Fudosan Group as of the release date, and are subject to change or cancellation. Furthermore, there are no
details concerning the timing of completion of the aforementioned investments that had been finalized as of the release date. Nor does MFLP-REIT guarantee or promise that the plans
be materialized. “Tokyo Rail Gate EAST” is included in “28 facilities 400.0 billion yen 2,400,000 m2” in terms of the number of facilities, but not in term of the amount. Furthermore,
Mitsui Fudosan has no plans to acquire the property as of March 15, 2018.
[Method of calculation of cash distribution based on FFO]
1.
Distribution of earnings is determined based on profit (net income) for the applicable operating period.
2.
FFO for the applicable operating period is calculated by adding depreciation to profit (net income) (excluding gain or loss on sale of real estate, etc.) for the applicable operating
period.
3.
The amount distributable including distribution in excess of earnings is calculated based on a threshold of an amount equivalent to 70% of FFO for the applicable operating period.
4.
The amount distributable in excess of earnings is calculated by deducting the amount of distribution of earnings (excluding gain or loss on sale of real estate, etc.) from theamount distributable including distribution in excess of earnings.
5.
The amount of continuous distribution in excess of earnings is determined based on a comprehensive judgment on the basis of the amount distributable in excess of earnings.
6.
The distribution in excess of earnings determined in 5. above is to be continuously made each fiscal period in principle, in addition to the distribution of earnings determined in 1.
above.
[About analysis of Japan’s logistics facilities stock]*1: The “Analysis of Japan’s logistics facilities stock” graph is of estimates by CBRE K.K. based on the Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism’s“Building Starts” and the Ministry of Internal Affairs and Communications’ “Summary Report on Prices, etc. of Fixed Assets.”*2: In the “Analysis of Japan’s logistics facilities stock” graph, “Leading-edge logistics facilities” is the figure of each year’s sum total of the total floor area of leading-edge logistics
facilities (refers to rental logistics facilities that have total floor area of at least 10,000 m2 and, in principle, ceiling height of at least 5.5 m, floor load capacity of at least 1.5 tons/m2
and column spacing of at least 10 m).
*3: In the “Analysis of Japan’s logistics facilities stock” graph, “Estimate for logistics facilities 40 years old or older” is the figure of each year’s overall stock estimate (as defined innote 5; the same shall apply hereinafter) minus the sum total of the floor area of which construction was started within the past 40 years.
*4: “Estimate for logistics facilities less than 40 years old” is the figure of the overall stock estimate minus the floor area of “Estimate for logistics facilities 40 years old or older” and“Leading-edge logistics facilities.”*5: The overall stock estimate is the sum total of “Estimate for logistics facilities 40 years old or older,” “Estimate for logistics facilities less than 40 years old” and “Leading-edge
logistics facilities.”*6: In the “Analysis of Japan’s logistics facilities stock” graph, “Share of leading-edge logistics facilities” is each fiscal year’s “Leading-edge logistics facilities” expressed as apercentage of the overall stock estimate (total floor area basis).
*7: In the “Analysis of Japan’s logistics facilities stock” graph, “Share of logistics facilities 40 years old or older” is each fiscal year’s “Estimate for logistics facilities 40 years old orolder” expressed as a percentage of the overall stock estimate (total floor area basis).
*8: “Total floor area” is compiled based on data on construction starts. In addition, estimates are on the basis of the time of construction completion being that construction is deemed
to be completed after one year has elapsed from construction start. Accordingly, total floor area may not match the floor area on the building confirmation certificate, construction
completion drawing or register.

38

Disclaimer
This document is provided solely for informational purpose with regard to Mitsui Fudosan Logistics Park Inc. (MFLP-REIT) and is not intended to serve as an
inducement or solicitation to trade in any product offered by MFLP-REIT.
Purchase, sale and such of MFLP’s investment units entail the risk of incurring a loss due to fluctuations of the investment unit price.
Please consult with a securities company regarding the purchase of MFLP-REIT’s investment units or investment corporation bonds. Information presented on
this document should not be interpreted, unless otherwise specified, as constituting disclosure documents or asset management report required under Financial
Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
Concerning the information provided in this document, although MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. make every effort toprovide correct information, its accuracy, adequacy or completeness are not guaranteed regardless of the information being prepared by MFLP-REIT and Mitsui
Fudosan Logistics REIT Management Co., Ltd. or being received from third-parties.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking statements presented
by MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co., Ltd. according to assumptions or judgement based on information available on the date of thisdocument (the date if specified otherwise in the document). Forward-looking statements are based on assumptions such as the investment policy of MFLP-REIT,
applicable laws and regulations, market environment, interest rate environment, business practice and other facts as of the preparation date of this document, anddo not reflect or consider changes in situations after the preparation date. Forward-looking statements include, explicit or implied, uncertainties of existing risks,
unknown risks and other factors, and may materially differ from actual performance, business results, financial status and such of MFLP-REIT.
The content of this document is subject to change or repeal without prior notice. MFLP-REIT and Mitsui Fudosan Logistics REIT Management Co., Ltd. are under
no obligation to update or publicly disclose the content of this document (including forward-looking statements).
Duplication or reproduction of any content presented in this document without the prior consent of MFLP-REIT or Mitsui Fudosan Logistics REIT Management Co.,
Ltd. is strictly prohibited.
The document is prepared solely for use by residents of Japan and is not intended for use by non-residents of Japan.