January 4, 2021
To All Concerned Parties
Name of REIT Issuer:
CRE Logistics REIT, Inc.
2-10-1, Toranomon, Minato-ku, Tokyo, Japan
Tsuyoshi Ito, Executive Director(TSE Code: 3487)
Asset Management Company
CRE REIT Advisers, Inc.
Tsuyoshi Ito, President
Person of Contact:
Hirohisa Toda, Head of Corporate Planning
Tel: +81-3-5575-3600

Notice Concerning Revision of Forecasts of Operating Results for the Period ending June 30, 2021 andForecasts of Operating Results for the Period ending December 31, 2021
CRE Logistics REIT, Inc. (hereinafter “CRE REIT”) announces revision of its operating results forecast for
the fiscal period ending June 30, 2021, which CRE REIT announced on August 17, 2020, in the “Summary of
Financial Results for the 8th Fiscal Period Ended June 30, 2020,” and a new operating results forecast for the
fiscal period ending December 31, 2021. The operating results forecast for the fiscal period ended December
31, 2020 remains unchanged.
1. Revision of operating results forecast for the fiscal period ending June 30, 2021 (From January 1, 2021 toJune 30, 2021)
OperatingOperating
Ordinary
Net income
revenueincomeincome(million yen)(million yen) (million yen) (million yen)Previous forecast(A)
Revised forecast(B)
Amount ofincrease/decrease(B - A)
Rate ofincrease/decrease

Distributions Distributions
per unit
per unit(including(excluding
Surplussurplussurplus
distributions
distributions) distributions)
per unit
(Yen)
(Yen)
(Yen)

2,591

1,385

1,182

1,181

3,205

2,790

415

3,115

1,718

1,440

1,439

3,303

2,877

426

524

333

257

257

98

87

11

+20.2％+24.1％+21.8％＋21.8％

+3.1%

＋3.1％

+2.7%

(Reference) Fiscal period ending June 30, 2021: Expected total number of investment units issued and outstanding at the end of theperiod: 500,150 units; Expected net income per unit: 2,877 yen

2. Operating results forecast for the fiscal period ending December 31, 2021 (From July 1, 2021 to December
31, 2021)
OperatingOperating
Ordinary
Net income
revenueincomeincome(million yen)(million yen) (million yen) (million yen)

Fiscal period
endingDecember 31,
2021

3,206

1,817

1,573

1,572

1

Distributions Distributions
per unit
per unit(including(excluding
Surplussurplussurplus
distributions
distributions) distributions)
per unit
(Yen)
(Yen)
(Yen)
3,483

3,145

338

(Reference) Fiscal period ending December 31, 2021: Expected total number of investment units issued and outstanding at the e nd of
the period: 500,150 units; Expected net income per unit: 3,144 yen(Note 1) The results forecasts above are calculated based on the assumptions outlined in the attached “Assumptions Underlying the
Operating Results Forecasts for the Fiscal Period Ending June 30, 2021 and the Fiscal Period Ending December 31, 2021.”
Actual operating revenue, operating income, ordinary income, net income, distribution per unit (including surplus
distributions), distribution per unit (excluding surplus distributions) and surplus distributions per unit m ay vary due todifferences from assumptions as a result of future acquisitions or disposal of real estate, etc., fluctuations in rent income due
to changes in lessees, etc., changes in the operating environment such as the occurrence of unexpected repairs, fluctuations ininterest rates, the actual number of issuances and issue value of new investment units to be decided, or the issuance of new
investment units. Moreover, these forecasts do not guarantee the amounts of distributions and surplus distribution s.
(Note 2) Forecasts may be modified if there is expected to be a noticeable discrepancy with the above forecasts.
(Note 3) All amounts are rounded down and percentages are calculated to the second decimal place with fractions less than .05 being
rounded down and .05 and more being rounded up. The same applies hereafter.

3. Reason for the revision
As a result of the issuance of new investment units announced in the “Notice Concerning Issuance of New
Investment Units and Secondary Offering of Investment Units” and the acquisition of assets announced in“Notice Concerning Acquisition of Trust Beneficiary Rights to Real Estate in Japan and Leasing,” both ofwhich were released on January 4, 2021, the assumptions underlying the operating results forecast for the
fiscal period ending June 30, 2021 announced on August 17, 2020, in the “Summary of Financial Results forthe 8th Fiscal Period Ended June 30, 2020,” have been changed, and it has become likely that a difference inthe expected operating revenue of 10% or more will arise. Accordingly, the forecasts for the operating results
and distributions for the fiscal period ending June 30, 2021 have been revised and new forecasts have been
disclosed for the fiscal period ending December 31, 2021.
* CRE Logistic REIT, Inc. website: https://cre-reit.co.jp/en/2

[Attachment 1]
Assumptions Underlying the Operating Results Forecasts for the Fiscal Period Ending June 30, 2021 and the
Fiscal Period Ending December 31, 2021
Items
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 under・It is assumed that (i) CRE REIT will continue to own real estate trust beneficiary rights inmanagement

the total of three properties to be acquired on January 19, 2021 using proceeds from theissuance of new investment units through public offering (the "Fourth PO") pursuant to theresolution of a meeting of the Board of Directors held on January 4, 2021 (“Assets to Be
Acquired”) until December 31, 2021, which will be added to the real estate trust beneficiaryrights in the total of 16 properties held by CRE REIT as of January 4, 2021 (“Assets
Currently Held”), and (ii) there will be no changes (acquisition of new properties,
disposition of properties held, etc.) until December 31, 2021, except for the acquisition of
the Assets to Be Acquired.
・In fact, however, there may be changes mainly due to the acquisition of new properties otherthan the Assets to Be Acquired and the disposal of properties held.

Operating revenue

・Real estate leasing business revenues related to the Assets Currently Held are calculated
based on lease contracts that are in effect as of January 4, 2021 and historical results. It is
expected that one month vacancy period will arise because the lease contract will expire in
one property during the fiscal period ending June 30, 2021, and that for subsequent rents, alease contract will be concluded with a successor tenant at almost the same level. If a passthrough type master lease agreement is concluded or is to be concluded, a lease contractconcluded with the end tenant will become the basis. However, if there is a period for whichan agreement is made on fixing the monthly rent to be received by the trustee from themaster lessee under the master lease contract, real estate leasing business revenues related
to the Assets Currently Held are calculated based on the amount agreed on for this period(the same applies hereinafter). For the Assets Currently Held, no lease contract will expire
during the fiscal period ending December 31, 2021, and all lease contracts will be concluded
at a fixed rent (it is expected that the lease contract with the successor tenant above that is
expected to be concluded during the fiscal period ending June 30, 2021, will also be
concluded at a fixed rent).
・Real estate leasing business revenues related to the Assets to Be Acquired are calculated
based on information on leasing contracts provided by their current owners or beneficiaries.
As for the Assets to Be Acquired, no lease contract will expire during the fiscal period
ending June 30, 2021 and the fiscal period ending December 31, 2021, and all lease contract s
will be concluded at a fixed rent.
・The calculations assume that there will be no delinquencies or defaults on rent payments on
the part of tenants.

Operating expenses

・Regarding real estate leasing expenses, which are the main operating expenses, exp enses
other than depreciation are calculated by taking into consideration change factors such as
expenses assumed to be incurred (taxes and public dues, entrusted property management,
property insurance, repairs, etc.) based on the historical results for the Assets Currently
Held, and for the Assets to Be Acquired, based on information provided by their current
owners or current beneficiaries and lease contracts in effect on January 4, 2021.
・Property taxes, city planning taxes and other charges levied on the Assets Currently Held
are expected to be 266 million yen in the fiscal period ending June 30, 2021 and the fiscal
period ending December 31, 2021.

3

・In general, property taxes, city planning taxes and other charges levied on transacted realestate are settled at the time of acquisition by prorating for the period with the current
owners or the current beneficiaries, but CRE REIT capitalizes the amounts equivalent tosuch settled amounts in the acquisition costs for properties. Therefore, property taxes, city
planning taxes and other charges levied on the Assets to Be Acquired will not be recorded
as expenses for the fiscal period ending June 30, 2021 and the fiscal period ending December
31, 2021, and property taxes, city planning taxes and other charges levied on properties forfiscal year 2022 will be booked as expenses from the fiscal period ending June 30, 2022.
Property taxes, city planning taxes and other charges levied on the Assets to Be Acquired
are expected to be 59 million yen for the fiscal period ending June 30, 2022 and following
periods. Property taxes, city planning taxes and other charges levied on the Assets to Be
Acquired, which will be capitalized in acquisition costs, are expected to total 107 million
yen.
・Depreciation is calculated using the straight line method for both the Assets Currently Heldand the Assets to Be Acquired, and it is expected 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.
・Entrusted property management fees are expected to be 158 million yen for the fiscal period
ending June 30, 2021, and 161 million yen for the fiscal period ending December 31, 2021.
・Because one lease contract will expire in the Asset Currently Held during the fiscal period
ending June 30, 2021, 30 million yen as a leasing expense is expected for the relevant
property in the fiscal period ending June 30, 2021.
Non-operating

・Non-operating expenses for the fiscal period ending June 30, 2021 are expected to be 278

expensesmillion yen. This amount will include the payment of 245 million yen for interest and otherfinancing-related expenses, 10 million yen for expenses related to the issuance of investment
units, 13 million yen for the depreciation of investment unit issuance costs, and 5 million
yen for the depreciation of founding costs.
・Non-operating expenses for the fiscal period ending December 31, 2021 are expected to be
244 million yen. This amount will include the payment of 229 million yen for int erest andother financing-related expenses and 12 million yen for the depreciation of investment unit
issuance costs.
・All current borrowings of CRE REIT are based on a fixed interest rate (substantive fixedinterest rate due to the conclusion of an interest rate swap agreement) and it is assumed for
new borrowings to be made to acquire the Assets to Be Acquired (refer to “Interest -bearingdebt” below) that long-term borrowings (excluding borrowings with the period of 1.0 year)
will also be based on a fixed interest rate by using an interest rate swap agreement. The
amount of interest expenses is calculated based on fixed interest rates for the current
borrowings as well as an interest rate estimated from the current interest rate level for new
borrowings.

Interest-bearing debt

・It is assumed that total interest-bearing debt will be 53,869 million yen at the end of the
fiscal period ending June 30, 2021, and 52,669 million yen at the end of the fiscal period
ending December 31, 2021.
・It is assumed that a total of 10,200 million yen will be newly borrowed on January 19, 2021.
However, the actual amount of borrowing may be changed by the time of the implementationof the borrowing, taking into account factors such as the net proceeds obtained from the
Fourth PO and the issuance of new investment units through private placement that wereresolved at a meeting of CRE REIT’s Board of Directors held on January 4, 2021. Other
details about the new borrowing will be announced after they are determined.

4

・In the fiscal period ending December 31, 2021, while long-term borrowings of 3,574 million
yen will become due on July 30, 2021, it is assumed that the same amount will be refinanced.
・It is assumed that of the long-term borrowings to be made on January 19, 2021, 1,200 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 loan-to-value (LTV) ratio is expected to be 45.5% at the end of the fiscal period ending
June 30, 2021, and 44.9% at the end of the fiscal period ending December 31, 2021. The
following formula is used to calculate the LTV ratio, with numbers rounded off to the firstdecimal place.
LTV ratio = Total interest-bearing debt ÷ Total assets × 100
・The LTV may vary depending on the number and value of the investment units to be issued
this time.
Investment units

・It is assumed that in addition to the total of 423,500 investment units issued and outstanding
as of January 4, 2021, all of the 76,650 investment units, the sum of 73,000 new investment
units to be issued through the Fourth PO and 3,650 investment units that are the maximum
number of new investment units to be issued through private placement, based on a
resolution of CRE REIT’s Board of Directors adopted at a meeting held on January 4, 2021,
will be issued and that there will be no change to the number of investment units due to theissuance of new investment units by the end of the fiscal period ending December 31, 2021
or by other means, excluding the said issuance.
・Distributions per unit (excluding surplus distributions) and surplus distributions per unit arecalculated based on 500,150 units, or the total of the expected numbers of investment units
issued and outstanding at the end of the fiscal periods ending June 30, 2021 and December
31, 2021, respectively.
・(Reference) If all 3,650 investment units, the maximum number of new investment units to
be issued through private placement, are not issued, the expected number of investment
units issued and outstanding at the end of the fiscal period ending June 30, 2021 and thefiscal period ending December 31, 2021 will be 496,500 units. In this case, it is expectedthat distributions per unit (excluding surplus distributions) and surplus distributions per unit
will be 2,899 yen and 429 yen in the fiscal period ending June 30, 2021, and 3,169 yen and
341 yen in the fiscal period ending December 31, 2021.

Distributions per unit

・Distributions per unit (excluding surplus distributions) are calculated in accordance with(excluding surplus

CRE REIT’s policy on the distribution of cash as stipulated in its Articles of Incorporation.

distributions)・Distributions per unit (excluding surplus distributions) may change for a variety of reasons,
including changes in CRE REIT’s investment assets, changes in leasing revenues due totenant movements, etc., and/or the occurrence of unforeseen repairs and maintenance, etc.

Surplus distributions

・Surplus distributions per unit are calculated in accordance with the policies st ipulated in

per unit

CRE REIT’s regulations as well as the asset management guidelines provided in the asset
management company’s internal regulations.
・It is assumed that there will be no specific possibility of significant deterioration in theeconomic environment, the real estate market conditions or CRE REIT’s financial condition.
・While CRE REIT has a policy of continuously implementing surplus distribution every term,in principle, with an amount equivalent to 30% of depreciation as a benchmark, CRE REIT
has decided to implement this policy flexibly to level distributions within the range
equivalent to 30% of depreciation.
・In addition, in cases where distributions per unit are expected to decline temporarily to acertain extent due to the dilution of the investment unit value or a significant financial

5

burden as a result of the procurement of funds through the issuance of new investment units
or for other reasons, CRE REIT may implement a temporary surplus distribution, in addition
to the continuous surplus distributions, with a view to standardizing the amount of
distributions per unit. However, this amount shall not exceed the amount equivalent to 60%
of depreciation for the relevant business period, including the continuous surplus
distributions. In the fiscal period ending June 30, 2021, CRE REIT expects to distribute an
amount equivalent to approximately 7.8% of depreciation as temporary surplus distributions
after distributing an amount equivalent to 30% of depreciation as continuous surplus
distributions, to level distributions, given that one lease contract will expire in the Assets
Currently Held.
・In fact, the amount of distributions exceeding earnings (return of contributions) may change
due to factors such as the economic environment, trends in the real estate market, thesituation surrounding owned assets, and financial conditions, and the surplus distribution of
the amount (return of contributions) may not be undertaken as a result.
Other

・It is assumed that there will be no change in legislation, taxation, accounting standards,
listing regulations imposed by the Tokyo Stock Exchange, rules and requirements imposedby The Investment Trusts Association, Japan, etc., that will impact the aforementioned
forecasts.
・It is assumed that there will be no unforeseen material changes in general economic trends,
real estate market conditions, etc.

6[Attachment 2] <Reference>
Estimate of Temporary Factors - Adjusted Income (Normalized Forecasts after the Fourth PO)
Forecasts for the fiscal
Temporary factors - adjusted
period ending December 31,
estimates
2021(Normalized forecasts after the(Announced today)
Fourth PO)
Operating revenue (Million yen)

3,206

3,206

Operating income (Million yen)

1,817

1,763

Ordinary income (Million yen)

1,573

1,519

Net income (Million yen)

1,572

1,518

3,483

3,374

3,145

3,036

338

338

Distributions per unit
(including surplus distributions) (Yen)Distributions per unit
(excluding surplus distributions) (Yen)

Surplus distributions per unit (Yen)Assumptions Underlying Estimate of Temporary Factors - Adjusted Income
Income adjusted for temporary factors ("Temporary Factors - Adjusted Income") is estimated based on
results forecasts for the fiscal period ending December 31, 2021, announced today, mainly under the following
assumptions.
・It is assumed that operating revenue and real estate leasing expenses (excluding property taxes, city planningtaxes and other charges) will be the same amount as the forecasts for the fiscal period ending December 31,
2021.
・As for property taxes, city planning taxes and other charges on the Assets to Be Acquired, it is assumed that59 million yen, which is the amount expected to be generated every period in and after the fiscal period
ending June 30, 2022, will be posted as real estate leasing expenses.
・It is expected that part of the borrowings will be prepaid in the fiscal period ending December 31, 2021,
using the consumption tax refund, etc. as the source of funding, and it is assumed that total assets will
decline associated with the refund and that asset management fees linked to total assets will decrease. In
addition, net income will decline due to the generation of property taxes, city planning taxes and othercharges on the Assets to Be Acquired, and it is therefore assumed that asset management fees linked to net
income and net income per unit will decrease.
・It is assumed that revenues and expenses other than the above will become the same amounts as in theoperating results forecast for the fiscal period ending December 31, 2021.
The estimate of Temporary Factors - Adjusted Income above neither aims to estimate income for a certain
calculation period nor has meaning as a forecast of income for a certain calculation period. The estimate ofTemporary Factors - Adjusted Income is not an indicator stipulated by corporate accounting standards
generally accepted as fair and appropriate in Japan (hereinafter “Japan GAAP”) and should not be considered
as an alternative indicator for other indicators that are shown according to Japan GAAP. In addition,
distributions per unit adjusted for temporary factors do not guarantee the existence of distributions in the future
and their amount in any sense. Note that actual income, etc. in the fiscal period ending December 31, 2021
and any other certain calculation period may differ materially from the estimated values stated above.

7

Differences from Expected DPU and Normalized DPU・"Effect of the Third PO" and "Effect of the Fourth PO" refer to the impact of assets acquired in the 9th fiscal period andthe impact of assets acquired in the 10th fiscal period (the "Assets to Be Acquired", the same applies

hereinafter) on the distributions per unit.
・"Full-period contribution of assets acquired in the 8th fiscal period" and "Full-period contribution of assets
acquired in the 10th fiscal period" refer to the impact of the full-period operation of assets acquired or to beacquired in the period on the distributions per unit.
・"Expensing of property taxes, city planning taxes and other charges on assets acquired in the 8th and the 9th
fiscal periods" refers to the impact of expensing property taxes, city planning taxes and other charges thatare included in the acquisition costs of the assets acquired in the 8th and the 9th fiscal periods and the full period operation of the assets acquired in the 9th fiscal period on the distributions per unit.
・"Expensing of property taxes, city planning taxes and other charges on assets acquired in the 10th fiscal
period" refers to the impact of a decline in expensing property taxes, city planning taxes and other charges
that are included in the acquisition costs of the assets acquired in the 10th fiscal period on the distributions
per unit.
・"Non-incurring of the Third PO costs and a decline in borrowing costs" refers to the impact of the non incurring of costs related to the issuance of new investment units in the Third PO and a decline in financingrelated expenses related to the borrowing of 7,950 million yen on July 13, 2020, and the refinancing of
3,700 million yen on July 31, 2020 on the distributions per unit.
・"Incurring of the Fourth PO costs and an increase in borrowing costs" and "Non-incurring of the Fourth PO
costs and a decline in borrowing costs" refer to the impact of the incurring and the non -incurring of costs
related to the issuance of new investment units in the Fourth PO and an increase and a decline in financing related expenses related to the new borrowing of 10,200 million yen on January 19, 2021, on the
distributions per unit.
・"Generation of vacancies and costs associated with re-tenant" and "Normalization of re-tenant" refer to theimpact of the generation of temporary items anticipated due to the expiration of one lease contract in the
Assets Currently Held during the fiscal period ending June 30, 2021, and the removal of the temporary items
due to the completion of re-tenant on the distributions per unit.

8

・"Other" refers to the impact of an increase in interest and other financing -related expenses related to theborrowing of 7,950 million yen on July 13, 2020, and the refinancing of 3,700 million yen on July 31, 2020,
as well as the impact of the incurring of costs related to the issuance of new investment units in the Third
PO on the distributions per unit.
・"Decrease in surplus distributions" and "Increase in surplus distributions" refer to the amount of decrease
and increase in surplus distributions per unit in the relevant period from surplus distributions per unit in theprevious period.
・"Surplus distributions per unit on the assumption of 30% depreciation" refers to surplus distributions on theassumption that an amount equivalent to 30% of depreciation (expected value) for the relevant period will
be distributed as surplus distributions. It is different from actual surplus distributions (expected value) in
the period.
・"Forecasts for the 9th fiscal period (ended December 31, 2020)" and "Previous f orecasts for the 10th fiscal
period (ending June 30, 2021)" are based on the assumptions in the "Summary of Financial Results for the
8th Fiscal Period Ended June 30, 2020," on August 17, 2020.

9