August 13, 2021

CRE Logistics REIT, Inc.
Summary of Financial Results (Unaudited)
For the 10th Fiscal Period Ended June30, 2021
(For the Reporting Period from January 1, 2021 to June 30, 2021)(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:

September 22, 2021
September 14, 2021
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen, except for the basic earnings per unit)
1. 10th Fiscal Period ended June 30, 2021 (January 1, 2021-June 30, 2021)(1) Operating results(Percentages represent changes from corresponding period of previous period)
Operating revenues
Operating income
Ordinary income
Net income
Fiscal period ended

June 30, 2021
December 31, 2020

Million yen%

Million yen%

Million yen%

Million yen

%

3,159
2,603

21.3
28.2

1,800
1,523

18.2
32.3

1,522
1,299

17.2
33.9

1,521
1,298

17.2
34.0

Return on
unitholders’ equity

Net income per unit

Ordinary income tototal assets

Ordinary income on
operating revenues

Fiscal period ended

Yen

%

%

%

June 30, 2021
December 31, 2020

3,092
3,107

2.7
2.8

1.4
1.5

48.2
49.9

(Note 1) 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.
(Note 2) The Investment Corporation issued 73,000 new investment units on January 19, 2021 and 3,650 new investment units on February10, 2021. Net
income per unit for the fiscal period ended June 30, 2021 is calculated by dividing net income by the weighted average number of investment
units (492,083 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

June 30, 2021
December 31, 2020

3,042
3,067

1,521
1,298

356
325

Surplus
distributions
per unit

Distributions
per unit(including
surplus
distributions)

Total
distributions(including
surplus
distributions)

Million yen

Yen

Million yen

%

%

178
137

3,398
3,392

1,699
1,436

100.0
100.0

2.5
2.6

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 December 31, 2020 and the fiscal period ended June 30, 2021 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 December 31, 2020 and the fiscal period ended June 30, 2021 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

－

1

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(3) Financial position
Total assets
As ofJune 30, 2021
December 31, 2020

Net assets

Unitholders’ equity ratio

Net assets per unit

Million yen

Million yen%

Yen

117,525
97,111

62,08851,14052.8
52.7

124,138
120,757(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

June 30, 2021
December 31, 2020

2,139
1,412

(20,380)(18,143)

18,40817,710

4,039
3,871

2. Forecast for the 11th Fiscal Period ending December 2021 (July 1, 2021-December 31, 2021) and the 12th Fiscal Period ending
June 2022 (January 1, 2022-June 30, 2022)(Percentages represent changes from corresponding period of previous period)
Operatingrevenues

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

Net income

Surplus
distributions
per unit

Fiscal period ending

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

Yen

Yen

December 31, 2021
June 30, 2022

3,221
3,223

2.0
0.1

1,827
1,761

1.5
(3.6)

1,584
1,519

4.1
(4.1)

1,583
1,518

4.1
(4.1)

3,504
3,375

3,166
3,036

338
339

(Reference) Forecast net income per unit (Forecast net income/ Forecast number of investment units at the end of the fiscal period) for the 11th Fiscal
Period ending December 2021 is 3,166 yen and forecast net income per unit for the 12th Fiscal Period ending June 2022 is 3,036 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)
2. Total number of treasury investment units at
the end of the fiscal period

As of June 30,
2021

500,150 units

As of December
31, 2020

423,500 units

As of June 30,2021

0 units

As of December
31, 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 11th Fiscal Period ending December 2021 (July 1, 2021December 31, 2021)” and the 12th Fiscal Period ending June 2022 (January 1, 2022-June 30, 2022) 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 11th Fiscal Period ending December 2021 (July 1, 2021-December 31, 2021) and the 12th
Fiscal Period ending June 2022 (January 1, 2022-June 30, 2022)
Item
Calculation period

Assumptions- 11th Fiscal Period (Ending December 31, 2021): July 1, 2021-December 31, 2021 (184 days)- 12th Fiscal Period (Ending June 30, 2022): January 1, 2022-June 30, 2022 (181 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”).The operating forecasts herein are based on the assumptionthat the investment corporation will continue to possess these properties until June 30, 2022, as well as theassumption that there will be no fluctuations in the trust beneficial interests in real estate (including newly
acquired properties and the disposal of assets currently held).
- 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 two lease contracts will expire
during the fiscal period ending June 30, 2022, in other hand, we concluded new lease contracts with thetenants. No lease contract will expire during the fiscal period ending December 31, 2021, and all lease
contracts, including those starting during the fiscal period ending June 30, 2022, will be concluded at a fixed
rent.
- The forecasts assume there are no delinquencies or default on rental payments by tenants.

Operating expenses- Expenses of assets currently held other than depreciation that fall under the category of real estate leasing
expenses, which is the investment corporation’s main operating expenses, are calculated based on actual
expenses., reflecting variables, including forecast costs (including taxes and public dues, property
management fees, insurance expenses, repair expenses).
- When real estate is purchased, property tax and city planning tax, etc. are calculated and divided up on a prorated 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 the 11th
fiscal period, but will be posted as property tax and city planning tax, etc. in the 12th fiscal periods. In the
11th fiscal period, property tax and city planning tax, etc. are estimated 260 million yen on assets acquired
before the fiscal period ended December 31, 2020. In the 12th fiscal period, property tax and city planningtax, etc. are estimated 327 million yen on assets currently held.
- Depreciation is based on the straight-line method. Depreciation is forecast to be 563 million yen in the 11th
fiscal period and 565 million yen in the 12th fiscal period.
- Property management fees are expected to be 161 million yen in the 11th fiscal period and 163 million yen
in the 12th fiscal period.

Non-operating
expenses- Non-operating expenses for the 11th fiscal period are expected to total 242 million yen. Of this, it is estimatedthat 228 million yen is for interest expenses and other financial related costs, and 11 million yen is fordepreciation of investment unit issuance costs.
- Non-operating expenses for the 12th fiscal period are expected to total 242 million yen. Of this, it is estimatedthat 225 million yen is for interest expenses and other financial related costs, and 11 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: 52,369 million yen as ofDecember 31, 2021 and 52,369 million yen as of June 30, 2022.
- In the fiscal year ending December 31, 2021, it is assumed that the investment corporation refinance 4,274
million yen to repay 3,574 million yen which mature on July 30, 2021 and 1,000 million yen which mature
on January 31, 2022.
- In the fiscal period ending June 30, 2022, while long-term borrowings of 3,680 million yen will mature on
January 31, 2022, it is assumed that the same amount will be refinanced.
- The LTV is expected to be around 44.6% as of December 31, 2021, and about 44.8% as of June 30, 2022.
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 June 30, 2022 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－3－based on a total number of investment units issued of 500,150 for the fiscal period ending December 31,
2021 and the fiscal period ending June 30, 2022.

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 December 31, 2020

As of June 30, 2021

AssetsCurrent assets
Cash and deposits

2,972,453

1,728,060

Cash and deposits in trust

2,370,899

3,356,893

Operating accounts receivable

150,615

158,876

Prepaid expenses

126,459

141,856

Consumption taxes receivable

845,221982,593

6,465,650

6,368,281

47,303,072

58,837,546

Accumulated depreciation(2,219,314)(2,760,123)

Buildings in trust, net

45,083,758

56,077,422

2,546,706

2,922,640(85,121)(106,699)

2,461,585

2,815,940

Tools, furniture and fixtures in trust

682

3,322

Accumulated depreciation

(305)

(453)

Tools, furniture and fixtures in trust, net

377

2,868

Land in trust

42,707,322

51,871,682

Total property, plant and equipment

90,253,043

110,767,914

Other

1,666

1,266

Total intangible assets

1,666

1,266

Investment securities

10,50010,500Long-term prepaid expenses

316,581314,648

12

17

Leasehold and guarantee deposits

10,00010,000Total investments and other assets

337,093

335,166

90,591,804

111,104,347

Organization expenses

5,047

-

Investment unit issuance expenses

36,413

41,235Investment corporation bond issuance costs

12,792

11,422

Total deferred assets

54,25352,657

97,111,707

117,525,286

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

Structures in trust
Accumulated depreciation
Structures in trust, net

Intangible assets

Investments and other assets

Deferred tax assets

Total non-current assets
Deferred assets

Total assets

－

5

－

(Thousands of yen)
As of December 31, 2020

As of June 30, 2021

Liabilities
Current liabilities
Operating accounts payable

130,116

170,6453,574,000

8,254,000

219,985

253,712858

970

473,494

584,135

5,814

2,820

4,404,270

9,266,284

Investment corporation bonds

2,000,000

2,000,000

Long-term borrowings

38,095,000

42,415,000

Leasehold and guarantee deposits received intrust

1,471,842

1,742,256-

13,63841,566,842

46,170,894

45,971,112

55,437,179

50,285,726

61,148,104(444,048)(581,685)

49,841,677

60,566,418

Unappropriated retained earnings(undisposed loss)

1,298,917

1,521,688

Total surplus

1,298,917

1,521,688

51,140,595

62,088,107

51,140,595

62,088,107

97,111,707

117,525,286

Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Advances received
Other
Total current liabilities
Non-current liabilities

Other
Total non-current liabilities
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

－

6

－

(2) Statements of Income(Thousands of yen)
Fiscal period ended
December 31, 2020

Fiscal period ended
June 30, 2021

Operating revenue
Leasing business revenue

2,555,517

3,118,710

48,14740,944295-

2,603,960

3,159,654

Expenses related to leasing business

802,053

1,036,607

Asset management fees

230,211

269,103

Asset custody fees

2,285

2,750

Administrative service fees

15,234

17,552

Remuneration for directors (and other officers)

4,500

4,500

Other operating expenses

25,93328,484

Total operating expenses

1,080,218

1,358,998

1,523,742

1,800,656

Interest income

1723Interest on tax refund

530

185

Total non-operating income

547

208

117,539

137,326

Interest expenses on investment corporation bonds

3,339

5,247

Financing fees

67,795

101,346

Amortization of organization expenses

6,056

5,047

Amortization of investment unit issuance expenses

14,422

12,648

913

1,370

Other

14,525

15,263

Total non-operating expenses

224,593278,250

Ordinary profit

1,299,696

1,522,614

Profit before income taxes

1,299,696

1,522,614

Income taxes - current

861

974

Income taxes - deferred

1

(5)

863

968

1,298,833

1,521,645

84

43

1,298,917

1,521,688

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

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

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 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
fromunitholders'
capital39,420,558(341,956)

10,865,167(102,091)

Surplus

Unitholder
s' capital

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
assetsUnappropri
ated
retainedearnings(undisposed loss)(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

Fiscal period ended June 30, 2021
(Thousands of yen)
Unitholders' equity
Unitholders' capital

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

Surplus

Unitholders'
capitalDeduction
fromunitholders'
capitalUnitholders'
capitalUnappropr
iatedretainedearnings(undisposed loss)Total
surplus50,285,726(444,048)

49,841,677

1,298,917

1,298,917

10,862,378(137,637)

Total net
assets51,140,595

51,140,595

10,862,378

10,862,378

10,862,378(137,637)(137,637)(137,637)

ProfitTotal changes
during period
Balance at endof period

Totalunitholders' equity(1,298,874)(1,298,874)(1,298,874)(1,298,874)

1,521,645

1,521,645

1,521,645

1,521,645

10,862,378(137,637)

10,724,740

222,771

222,771

10,947,512

10,947,512

61,148,104(581,685)

60,566,418

1,521,688

1,521,688

62,088,107

62,088,107

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8

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(4) Statements of Cash Flows(Thousands of yen)
Fiscal period ended
December 31, 2020

Fiscal period ended
June 30, 2021

Cash flows from operating activities
Profit before income taxes
Depreciation

1,299,696

1,522,614

459,879

562,935

Amortization of deferred organization expenses

6,056

5,047

Amortization of investment unit issuance expenses

14,422

12,648

913
(17)

1,370
(23)

Decrease (increase) in operating accounts receivable

120,879(47,422)

142,573(8,261)

Decrease (increase) in consumption taxes refund receivable(318,991)(137,372)

Decrease (increase) in prepaid expenses(18,747)(15,396)

Increase (decrease) in operating accounts payable(54,399)

40,529

Increase (decrease) in accrued expenses

37,771

27,960

Increase (decrease) in advances received

90,064(63,322)

110,640

Amortization of investment corporation bond issuance costs
Interest income
Interest expenses

Decrease (increase) in long-term prepaid expenses
Decrease in property, plant and equipment in trust due to sale

1,932
－

Other, net

56,792(61,070)

10,270Subtotal

1,522,505

2,277,471

Interest received

17(109,417)

23(136,806)

(893)

(862)

1,412,212

2,139,825(18,107,569)(21,077,406)

309,463－

270,413

Proceeds from restricted deposit
Payments into restricted deposits(345,394)

696,902(270,413)(18,143,500)(20,380,504)

1,750,000(1,750,000)－

9,900,000(3,950,000)

9,900,000(900,000)Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Proceeds from leasehold and guarantee deposits received in trust

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings－

Proceeds from issuance of investment corporation bonds

1,986,293－

Proceeds from issuance of investment units
Distributions paid

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

10,844,907(1,436,138)

Net cash provided by (used in) financing activities

17,710,765

18,408,768

Net increase (decrease) in cash and cash equivalents

979,476

168,089

Cash and cash equivalents at beginning of period

2,892,033

3,871,510

Cash and cash equivalents at end of period

3,871,510

4,039,600－

9－