February 16, 2021

CRE Logistics REIT, Inc.
Summary of Financial Results (Unaudited)
For the 9th Fiscal Period Ended December 31, 2020(For the Reporting Period from July 1, 2020 to December 31, 2020)(Translated from the Japanese original)
Corporate Information
Code: 3487 Listing: Tokyo Stock Exchange(URL: https://cre-reit.co.jp/en/)
Representative: Tsuyoshi Ito, Executive Director
Asset management company:
Representative:
Person of Contact:
Tel:

CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Hirohisa Toda, Head of Corporate Planning+81-3-5575-3600

Scheduled date to file securities report:
Scheduled date to commence payment of distributions:Preparation of supplementary material on financial results:
Financial report presentation meeting:March 30, 2021
March 19, 2021
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen, except for the basic earnings per unit)
1. 9th Fiscal Period ended December 31, 2020 (July 1, 2020-December 31, 2020)(1) Operating results(Percentages represent changes from corresponding period of previous period)
Operating revenues
Operating income
Ordinary income
Net income
Fiscal period ended

December 31, 2020
June 30, 2020

Million yen%

Million yen%

Million yen%

Million yen

%

2,603
2,030

28.2
28.5

1,523
1,151

32.3
39.0

1,299
970

33.9
41.2

1,298
969

34.0
41.3

Return on
unitholders’ equity

Net income per unit

Ordinary income tototal assets

Ordinary income on
operating revenues

Fiscal period ended

Yen

%

%

%

December 31, 2020
June 30, 2020

3,107
2,872

2.8
2.9

1.5
1.5

49.9
47.8

(Note 1) The Investment Corporation issued 88,000 new investment units on January 21, 2020. Net income per unit for the fiscal period ended June
30,2020 is calculated by dividing net income by the weighted average number of investment units (337,579 units) based on the number of days
during the period.
(Note 2) The Investment Corporation issued 72,750 new investment units on July 13, 2020 and 3,500 new investment units on August 12, 2020. Net
income per unit for the fiscal period ended December 31,2020 is calculated by dividing net income by the weighted average number of investment
units (417,956 units) based on the number of days during the period.

(2) Distributions
Distributions
per unit(excluding
surplus
distributions)

Total
distributions(excluding
surplus
distributions)Fiscal period ended

Yen

Million yen

Yen

December 31, 2020
June 30, 2020

3,067
2,792

1,298
969

325
294

Surplus
distributions
per unit

Distributions
per unit(including
surplus
distributions)

Total
distributions(including
surplus
distributions)

Million yen

Yen

Million yen

%

%

137
102

3,392
3,086

1,436
1,071

100.0
100.0

2.6
2.5

Total surplus
distributions

Payout ratio

Distributions to
net assets ratio(Note 1) The entire amount of total surplus distributions is the return of contributions that falls under the distribution associated with the investment
decrease for tax purposes.
(Note 2) The percentage of decreased surplus as a result of surplus distributions (the return of contributions that falls under the distribution associatedwith the investment decrease for tax purposes) in the fiscal period ended June 30, 2020 and the fiscal period ended December 31, 2020 was
0.003, respectively. The calculation of the percentage of decreased surplus is based on Article 23, Paragraph 1, Item 4 of the Order for
Enforcement of the Corporation Tax Act.
(Note 3) The payout ratio in the fiscal period ended June 30, 2020 and the fiscal period ended December 31, 2020 is calculated based on the following
formula because the Investment Corporation issued new investment units.
Payout ratio = Total amount of distributions (excluding surplus distributions) ÷ Net income × 100

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1

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(3) Financial position
Total assets
As ofDecember 31, 2020
June 30, 2020

Net assets

Unitholders’ equity ratio

Net assets per unit

Million yen

Million yen%

Yen

97,11177,736

51,14040,04852.7
51.5

120,757
115,329(4) Cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the fiscal period

Fiscal period ended

Million yen

Million yen

Million yen

Million yen

December 31, 2020
June 30, 2020

1,412
1,297

(18,143)(20,084)

17,71020,320

3,871
2,892

2. Forecast for the 10th Fiscal Period ending June 2021 (January 1, 2021-June 30, 2021) and the 11th Fiscal Period ending December
2021 (July 1, 2021-December 31, 2021)(Percentages represent changes from corresponding period of previous period)
Operatingrevenues

OperatingincomeFiscal period ending

MillionyenJune 30, 2021
December 31, 2021

3,155 21.2
3,217
2.0

%

Millionyen

Ordinary
incomeDistributions
Distributions
per unit (including
per unit
surplus(excluding surplus
distributions)distributions)

Net income%

Millionyen%

1,789 17.5
1,828
2.2

1,510
1,584

16.2
4.9

Millionyen

Surplus
distributions
per unit

%

Yen

Yen

Yen

1,509 16.2
1,583
4.9

3,374
3,504

3,018
3,166

356
338

(Reference) Forecast net income per unit (Forecast net income/ Forecast number of investment units at the end of the fiscal period) for the 10th Fiscal
Period ending June 2021 is 3,018 yen and forecast net income per unit for the 11th Fiscal Period ending December 2021 is 3,166 yen.

* Other(1) Changes in accounting policies, changes in accounting estimates and retrospective restatements
1. Changes in accounting policies associated with revision of accounting standards, etc.: None
2. Changes in accounting policies associated with other than 1: None
3. Changes in accounting estimates: None
4. Restatements: None

(2) Total number of investment units issued and outstanding
1. Total number of investment units issued andoutstanding at the end of the fiscal period(including treasury investment units)

As of December
31, 2020

423,500 units

2. Total number of treasury investment units at
the end of the fiscal period

As of December
31, 2020

0 units

As of June 30, 2020 347,250 units
As of June 30, 2020

0 units* Summary of financial results is not inside the scope of audit procedure by certified public accountants or audit corporations.
* Remarks on appropriate use of forecasts of performance and other special notes
Forward-looking statements presented in this financial results, including forecasts of performance, are based on information
currently available to the Investment Corporation and on certain assumptions the Investment Corporation deems to be reasonable.
As such, actual operating and other results may differ materially from these forecasts as a consequence of various factors. Moreover,the forecasts set forth herein should not be construed as a guarantee of distribution amounts.
Refer to the section on “Assumptions for Operating Forecasts for the 10th Fiscal Period ending June 2021 (January 1, 2021-June30, 2021) and the 11th Fiscal Period ending December 2021 (July 1, 2021-December 31, 2021)” for details on the underlying
assumptions for the forecasts above.

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2

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Assumptions for Operating Forecasts for the 10th Fiscal Period ending June 2021 (January 1, 2021-June 30, 2021) and the 11th Fiscal
Period ending December 2021 (July 1, 2021-December 31, 2021)
Item
Calculation period

Assumptions- 10th Fiscal Period (Ending June 30, 2021): January 1, 2021-June 30, 2021 (181 days)- 11th Fiscal Period (Ending December 31, 2021): July 1, 2021-December 31, 2021 (184 days)

Assets undermanagement- The investment corporation possesses the trust beneficial interests in real estate in a total of 19 properties(hereinafter referred to as “assets currently held”)—16 properties held as of December 31,2020 (hereinafterreferred to as “acquired assets before the fiscal period ended December 31, 2020”) and three properties
acquired on January 19, 2021 (hereinafter referred to as “acquired assets for the fiscal period ending June 30,2021”).The operating forecasts herein are based on the assumption that the investment corporation willcontinue to possess these properties until December 31, 2021, as well as the assumption that there will be nofluctuations in the trust beneficial interests in real estate (including newly acquired properties and the disposalof currently-held assets).
- However, there is a possibility that fluctuations in the portfolio will occur due to factors including the newacquisition of properties or the disposal of assets currently held.

Operating revenues- Real estate lease business revenues are calculated based on leasing contracts that are effective as of the dateof submission of this financial results and actual performance in the past. The lease contract will expire in
one property during the fiscal period ending June 30, 2021, in other hand, we have agreed to conclude a newlease agreement with the tenant occupying the property, and the rent in such agreement is assumed. No lease
contract will expire during the fiscal period ending December 31,2021, and all lease contracts will beconcluded at a fixed rent.
- The forecasts assume there are no delinquencies or default on rental payments by tenants.

Operating expenses- Expenses other than depreciation that fall under the category of real estate leasing expenses, which is theinvestment corporation’s main operating expenses, are actual expenses incurred on acquired assets before thefiscal period ended December 31, 2020. Regarding those acquired assets for the fiscal period ending June 30,
2021, expenses were forecast reflecting variables, including forecast costs (including taxes and public dues,
property management fees, fire insurance expenses, repair expenses) based on information obtained from theprevious owner, or the beneficiary who previously held the trust beneficiary interests.
- Property tax and city planning tax, etc. for acquired assets before the fiscal period ended December 31, 2020are expected to total 266 million yen in the fiscal period ending June 30, 2021 and 266 million yen in thefiscal period ending December 31, 2021.
- In addition, when real estate is purchased, property tax and city planning tax, etc. are calculated and divided
up on a pro-rated basis for calendar year with the previous beneficiary of trust interests. The investment
corporation incorporates this amount into the acquisition cost of the property. In light of this, property tax
and city planning tax, etc. on acquired assets for the fiscal period ending June 30, 2021 are not posted in the10th Fiscal Period and 11th Fiscal Period, but will be posted as property tax and city planning tax, etc. in the
12th Fiscal Periods. In the event that the property tax and city planning tax, etc. on acquired assets for the
fiscal period ending June 30, 2021 were posted as expense, the amount is estimated at 59 million yen for eachsix-month period starting from the 12th Fiscal Period. Note that the total amount of property tax and city
planning tax, etc. to be incorporated into the acquisition cost for the acquired assets for the fiscal period
ending June 30, 2021 is estimated at 107 million yen.
- Depreciation is based on the straight-line method. Depreciation is forecast to be 563 million yen in the fiscal
period ending June 30, 2021 and 564 million yen in the fiscal period ending December 31, 2021.
- Property management fees are expected to be 158 million yen in the fiscal period ending June 30, 2021 and161 million yen in the fiscal period ending December 31, 2021.

Non-operating
expenses- Non-operating expenses for the 10th Fiscal Period are expected to total 278 million yen. Of this, it isestimated that 245 million yen is for interest expenses and other financial related costs, 10 million yen is forcosts related to offerings new investment units, 13 million yen is for depreciation of investment unit issuancecosts, and 5 million yen is for depreciation of founding costs.
- Non-operating expenses for the 11th Fiscal Period are expected to total 244 million yen. Of this, it is estimatedthat 229 million yen is for interest expenses and other financial related costs, and 12 million yen is fordepreciation of investment unit issuance costs.

Interest-bearing debt

- The total interest-bearing debt at the end of each fiscal period is as follows: 53,569 million yen as of June 30,
2021, and 52,369 million yen as of December 31, 2021.
- It is assumed that the investment corporation refinance 3,274 million yen to repay 3,574 million yen whichmature on July 30, 2021 in the fiscal period ending December 31, 2021.
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3－

- It is assumed that of the long-term borrowings made on January 19, 2021, 900 million yen with a borrowing
period of 1.0 year will be prepaid in the fiscal period ending December 31, 2021, using the consumption tax
refund, etc. as the source of funding for the prepayment.
- The LTV is expected to be around 45.3% as of June 30, 2021, and about 44.7% as of December 31, 2021.
The following equation was used to calculate LTV. The figure is rounded to the second decimal point.
LTV = Interest-bearing debt / Total Assets x 100

Investment units- The assumptions for these forecasts are based on a total number of investment units issued of 500,150, as ofthe submission of these financial results. The forecasts do not factor in any assumption of a change in thenumber of investment units through December 31, 2021 due to factors such as the issuance of new investment
units.
- The distributions per unit (excluding surplus distributions) and the surplus distributions per unit are calculated
based on a total number of investment units issued of 500,150 for the fiscal period ending June 30, 2021 andthe fiscal period ending December 31, 2021.

Distributions per unit
(excluding surplus
distributions)- The distributions per unit (excluding surplus distributions) is calculated based on the assumption that
distributions are carried out in accordance with the policies for monetary distributions set forth in theregulations of the investment corporation.
- There is a possibility that the amount of the distributions per unit (excluding surplus distributions) couldchange owing to various factors, including changes in rental income, or unexpected maintenance work due
to a change in assets under management or a change in tenants.

Distributions per unitof surplus profit- The surplus distributions per unit is calculated in accordance with the policy stipulated in the operationalguidelines—the regulations of the investment corporation and the internal regulations of the asset
management company.
- These assumptions do not include any specific possibility of a substantial deterioration in the economic
climate, real estate market or the financial condition of the investment corporation.
- While the investment corporation has a policy of implementing surplus distribution every term with anamount equivalent to 30% of depreciation as a benchmark, the investment corporation has decided to
implement this policy flexibly to equalize distributions within the range equivalent to 30% of depreciation.
- Moreover, in the event that the distributions per unit is expected to temporarily fall below a certain level due
to dilution in the value of the investment unit or a considerable financial burden owing to the procurement of
capital through the issuance of new investment units or other factors, the investment corporation may
continue to distribute surplus profit plus a one-off distribution that exceeds the profit level in the period forthe purpose of maintaining the ordinary level of the distributions per unit. However, this amount, which
includes the ongoing surplus distribution, shall not exceed the equivalent to 60% of total depreciation for the
relevant business period.
- In actuality, the amount of distributions exceeding profit (return of contributions) is likely to fluctuate due tochanges in the economic climate, real estate market trends, asset portfolio, and financial position, and there
is a possibility the investment corporation will not implement distributions (return of contributions) in surplus
distributions for the period.

Other- The forecasts were built based on the assumption that there will be no revisions to laws and ordinances, thetax system, accounting standards, listing regulations set forth by the Tokyo Stock Exchange, Inc., and theregulations stipulated by the Investment Trusts Association, Japan, that would have an impact on the forecasts
stated above.
- The forecasts are also based on the assumption that there will be no unexpected major changes to general
economic trends and the real estate market.

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4

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3. Financial Statements(1) Balance Sheet(Thousands of yen)
As of June 30, 2020

As of December 31, 2020

AssetsCurrent assets
Cash and deposits

2,232,080

2,972,453

Cash and deposits in trust

1,786,401

2,370,899

Operating accounts receivable

103,193

150,615

Prepaid expenses

107,712

126,459

Consumption taxes receivable

526,229845,2214,755,617

6,465,650

37,879,973

47,303,072

Accumulated depreciation(1,778,799)(2,219,314)

Buildings in trust, net

36,101,174

45,083,758

1,952,901

2,546,706(66,218)(85,121)

1,886,682

2,461,585

Tools, furniture and fixtures in trust

682

682

Accumulated depreciation

(244)

(305)

Tools, furniture and fixtures in trust, net

438

377

34,610,101

42,707,322

63,350-72,661,746

90,253,043

Other

2,066

1,666

Total intangible assets

2,066

1,666

Investment securities

10,50010,500Long-term prepaid expenses

253,258

316,581

13

12

Leasehold and guarantee deposits

10,00010,000Total investments and other assets

273,772

337,093

72,937,585

90,591,804

Organization expenses

11,104

5,047

Investment unit issuance expenses

32,41736,413-

12,792

43,522

54,25377,736,725

97,111,707

Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust

Structures in trust
Accumulated depreciation
Structures in trust, net

Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets

Investments and other assets

Deferred tax assets

Total non-current assets
Deferred assets

Investment corporation bond issuance costs
Total deferred assets
Total assets－5－

(Thousands of yen)
As of June 30, 2020

As of December 31, 2020

Liabilities
Current liabilities
Operating accounts payable

184,515130,1163,700,000

3,574,000

170,751

219,985890

858

Advances received

383,430

473,494

Other

67,5495,814

4,507,138

4,404,270-

2,000,000

Long-term borrowings

32,019,000

38,095,000

Leasehold and guarantee deposits received intrust

1,162,379

1,471,842

Total non-current liabilities

33,181,379

41,566,842

37,688,517

45,971,112

39,420,558

50,285,726(341,956)(444,048)

39,078,601

49,841,677

Unappropriated retained earnings(undisposed loss)

969,606

1,298,917

Total surplus

969,606

1,298,917

40,048,208

51,140,595

40,048,208

51,140,595

77,736,725

97,111,707

Current portion of long-term borrowings
Accrued expenses
Income taxes payable

Total current liabilities
Non-current liabilities
Investment corporation bonds

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Deduction from unitholders' capital
Unitholders' capital, net
Surplus

Total unitholders' equity
Total net assets
Total liabilities and net assets

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6

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(2) Statements of Income(Thousands of yen)
Fiscal period ended
June 30, 2020

Fiscal period ended
December 31, 2020

Operating revenue
Leasing business revenue

2,001,134

2,555,517

29,41948,147-295

2,030,554

2,603,960

Expenses related to leasing business

662,830

802,053

Asset management fee

176,310230,211

Asset custody fee

1,763

2,285

Administrative service fees

12,23015,234

Remuneration for directors (and other officers)

4,500

4,500

Other operating expenses

21,55225,933

Total operating expenses

879,187

1,080,218

1,151,366

1,523,742

Interest income

1417Interest on tax refund

717

530

Total non-operating income

732

547

89,884

117,539-

3,339

Borrowing related expenses

58,741

67,795

Amortization of organization expenses

6,056

6,056

Amortization of investment unit issuance expenses

11,352

14,422

-

913

Other

15,627

14,525

Total non-operating expenses

181,663

224,593

Ordinary profit

970,436

1,299,696

Profit before income taxes

970,436

1,299,696

Income taxes - current

892

861

Income taxes - deferred

0

1

892

863

969,543

1,298,833

62

84969,606

1,298,917

Other leasing business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses

Operating profit
Non-operating income

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

Amortization of investment corporation bondissuance costs

Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)

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7

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(3) Statements of Changes in Net Assets
Fiscal period ended June 30, 2020
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of
periodChanges during
periodIssuance of
newinvestment
units
Distributions
in excess ofearnings
Dividends ofsurplus

Unitholders'
capitalDeduction from
unitholders'
capital27,302,166(247,330)

12,118,392(94,626)

Surplus

Unitholder
s' capital

Total surplus

Totalunitholde
rs' equity

27,054,836

686,297686,297

27,741,133

27,741,133

12,118,392

12,118,392

12,118,392(94,626)(94,626)(94,626)

ProfitTotal changes
during period
Balance at endof period

Total net
assetsUnappropri
ated
retainedearnings(undisposed loss)(686,234)(686,234)(686,234)(686,234)

969,543

969,543

969,543

969,543

12,118,392(94,626)

12,023,765

283,309283,30912,307,074

12,307,074

39,420,558(341,956)

39,078,601

969,606

969,606

40,048,208

40,048,208

Fiscal period ended December 31, 2020
(Thousands of yen)
Unitholders' equity
Unitholders' capital

Balance at
beginning of
periodChanges during
periodIssuance of
newinvestment
units
Distributions
in excess ofearnings
Dividends ofsurplus

Unitholders'
capitalDeduction from
unitholders'
capital39,420,558(341,956)

10,865,167(102,091)

Surplus

Unitholder
s' capital

Unappropri
ated
retainedearnings(undisposed loss)Total surplus

Totalunitholde
rs' equity

39,078,601

969,606

969,606

40,048,208

40,048,208

10,865,167

10,865,167

10,865,167(102,091)(102,091)(102,091)

ProfitTotal changes
during period
Balance at endof period

Total net
assets(969,522)(969,522)(969,522)(969,522)

1,298,833

1,298,833

1,298,833

1,298,833

10,865,167(102,091)

10,763,076

329,311

329,311

11,092,387

11,092,387

50,285,726(444,048)

49,841,677

1,298,917

1,298,917

51,140,595

51,140,595

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8

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(4) Statements of Cash Flows(Thousands of yen)
Fiscal period ended
June 30, 2020

Fiscal period ended
December 31, 2020

Cash flows from operating activities
Profit before income taxes

970,436

1,299,696

Depreciation

363,669

459,879

Amortization of deferred organization expenses

6,056

6,056

Amortization of investment unit issuance expenses

11,352

14,422

Amortization of investment corporation bondissuance costs－

913

Interest income

(14)

(17)

Interest expenses

89,884

120,879(1,385)(47,422)(286,473)(318,991)

Decrease (increase) in prepaid expenses(13,162)(18,747)

Increase (decrease) in operating accounts payable

85,884(54,399)

Increase (decrease) in accrued expenses

39,68837,771

Increase (decrease) in advances received

98,28490,064

Decrease (increase) in long-term prepaid expenses(47,345)(63,322)

Decrease in property, plant and equipment in trust
due to sale－

56,792Other, net

62,253(61,070)

Subtotal

1,379,129

1,522,505

14

17(80,772)(109,417)

(874)

(893)

1,297,497

1,412,212

Purchase of property, plant and equipment in trust(19,868,220)(18,107,569)

Proceeds from leasehold and guarantee deposits
received in trust

173,168

309,463

Payments into restricted deposits(389,110)(345,394)(20,084,161)(18,143,500)

Proceeds from short-term borrowings－

1,750,000

Repayments of short-term borrowings－(1,750,000)

Proceeds from long-term borrowings

9,000,000

9,900,000

Repayments of long-term borrowings－(3,950,000)

Proceeds from issuance of investment corporation
bonds

－

1,986,293

12,100,768

10,846,749(780,165)(1,072,277)

Decrease (increase) in operating accounts
receivable
Decrease (increase) in consumption taxes refund
receivable

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from issuance of investment units
Distributions paid

20,320,602

17,710,765

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

1,533,938

979,476

Cash and cash equivalents at beginning of period

1,358,094

2,892,033

Cash and cash equivalents at end of period

2,892,033

3,871,510－

9－