Semi-Annual Report
Fiscal Period Ended June 30, 2021

from January 1, 2021 to June 30, 2021

We wish to sincerely thank you for the outstanding support you have provided CRE Logistics REIT, Inc(“CRE REIT”).
We listed our shares on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange on
February 7, 2018, and are pleased to have concluded the seventh fiscal period (10th fiscal period) since listing.
We would like to express our sincere gratitude for your support.
During the 10th fiscal period, we added three properties acquired through the fourth public offering so thatthe total number of properties we held rose to 19, all of which were fully occupied and maintained steady
operation. Consequently, the business results in the fiscal period under review included operating revenue of
3,159 million yen (up 555 million yen from the previous period), operating income of 1,800 million yen (up276 million yen from the previous period), and net income of 1,521 million yen (up 222 million yen from theprevious period). Distributions totaled 1,699 million yen (up 262 million yen from the previous period) byadding 178 million yen of distributions in excess of earnings, corresponding to 31.7% of the depreciation ofproperties held, to net income. As a result, the distributions per unit amounted to 3,398 yen, exceeding theforecast of 3,374 yen by 24 yen.
While we must be careful of any further recession not only in the Japanese economy, but the global economy,caused by the COVID-19 pandemic and the deterioration of consumer confidence and corporate performance,
we expect that the leasing market for logistics real estate will remain strong, based on the further growth inhome shopping and electronic commerce and inventories accumulated by shippers in preparation forcontingencies such as disruption to supply chains.
During the fiscal period under review, we had the first expiration of a lease agreement as the CRE REIT, andwe were able to sign a new lease agreement, including an increased rent, with the existing tenant. We do nothave any lease agreement that will expire in the fiscal period ending December 31, 2021, and have two leaseagreements expiring in the fiscal period ending June 30, 2022, for which new lease agreements have alreadybeen signed with the existing tenants. Based on this strong leasing market for logistics real estate, we will
engage in investments that will further grow cash flow and continue to return the outcomes to our investors.
We hope that we can continue to count on your support.

Executive Director, CRE Logistics REIT, Inc.
President, CRE REIT Advisers, Inc.

Tsuyoshi Ito1

1. Operating Results(1) Operating Resultsi. Overview of the Fiscal Period under Review
A. Major trends of CRE REIT
CRE REIT was established on May 12, 2016, by CRE REIT Advisers, Inc. (the “Asset Manager”) as theorganizer pursuant to the provisions of the Act on Investment Trusts and Investment Corporations (Act No.
198 of 1951, including subsequent amendments) and its shares were listed on the Real Estate Investment Trust
Securities Market of the Tokyo Stock Exchange (“TSE”) on February 7, 2018. (Security Code: 3487) During
the fiscal period under review, three properties, namely LogiSquare Sayama Hidaka (quasi co-ownershipinterest 80%), LogiSquare Kawagoe II and LogiSquare Kobe Nishi were additionally acquired for a totalacquisition price of 20,789 million yen. As of the end of the fiscal period, CRE REIT owned 19 properties,
with a total acquisition price of 112,316 million yen.
B. Operation environment and results
The Japanese economy has been sluggish in response to a decrease in economic activities primarily due to afall in consumption as a result of the COVID-19 pandemic, and prospects continue to be uncertain due toconcerns over employment. In the environment surrounding the J-REIT market, the TSE REIT index remained
strong as a result of an inflow of investment funds in response to the characteristics of properties with stableyields and a downward trend in long-term investment rates.
Meanwhile, demand for logistics real estate is expected to continue growing, given such trends as thesophistication of supply chain management (Note 1) and the rapid expansion of stay-at-home consumption
such as home shopping and electronic commerce, an increase in the number of parcels sent by home delivery
service, and an increase in the use of third-party logistics (3PL) (Note 2) companies. Moreover, as a result of
the expansion of the range of logistics real estate users associated with this market growth, demand is growing
not only for large facilities, but also for multi-functional logistics real estate with high specifications andavailable in various sizes. The increasing difficulty of securing warehouse personnel due to current labor
shortages is creating demand for logistics real estate at locations accessible to more hiring opportunities to beparticularly high.
While attention must be paid to any further recession not only in the Japanese economy, but the global
economy, caused by the COVID-19 pandemic and deterioration of corporate performance, the lease market
for logistics real estate is expected to remain strong given the further expansion of home shopping and ecommerce and inventories accumulated by shippers in preparation for contingencies such as disruption to
supply chains.
Under these circumstances, CRE REIT has been conducting appropriate management and operation of its 19
properties in cooperation with CRE, Inc. (“CRE”) and maintained a high operation status with 100%
occupancy of the overall portfolio as of the end of the fiscal period under review.
Note 1:
Note 2:

Supply chain management refers to an efficient management technique of seamless supply by regarding the flow from parts
manufacturers, assembled product manufacturers, distributors, and to customers as a chain. The same applies hereafter.
Third-party logistics (3PL) means planning the most efficient logistics strategies, proposing the development of logistics systems, andreceiving comprehensive contracts to implement such strategies and development in lieu of shippers. The same applies hereafter.

C. Overview of financing
CRE REIT raised 10,345 million yen through a public offering with a payment date of January 19, 2021, and
517 million yen through a private placement with a payment date of February 10, 2021, and unitholders’capital, net, as of the end of the fiscal period under review, totaled 60,566 million yen. CRE REIT also raised
9,900 million yen through borrowings on January 19, 2021, for asset acquisition and made a prepayment forborrowings of 900 million yen on April 30, 2021. As a result, the balance of interest-bearing liabilities stoodat 52,669 million yen as of the end of the fiscal period under review, and the percentage of interest-bearing
liabilities in total assets as of the end of the fiscal period under review was 44.8%.
The credit ratings received by CRE REIT applicable to both the issuer and bond as of the end of the fiscal
period under review are described below.

2

Rating Agency
Rating and Investment
Information, Inc. (R&I)

Rating Subject
Issuer rating
Bond rating

RatingAA-

Rating Outlook
Positive-

Note: These are not the ratings of the investment units of CRE REIT. There are no credit ratings that have been provided or made publicly
available by credit rating agencies or credit ratings that will be provided or made publicly available by credit agencies with respect to theinvestment units of CRE REIT at CRE REIT’s request.

D. Overview of business performance and distributions
As a result of the management described above, the results for the fiscal period under review included
operating revenue of 3,159 million yen, operating income of 1,800 million yen, ordinary income of 1,522
million yen, and net income of 1,521 million yen.
CRE REIT decided to distribute all undistributed earnings held at the end of the fiscal period under review,
excluding fractions of a yen, assuming that earnings distributions would be added as deductible expenses byapplying the special provisions for the taxation of investment corporations (Article 67-15 (1) of the Act on
Special Measures Concerning Taxation (Act no.26 of 1957, including subsequent revisions)) (“Special
Provisions for Taxation of Investment Corporations”) based on CRE REIT’s distribution policy specified inits certificate of incorporation. As a result, earnings distribution per investment unit came to 3,042 yen. In
addition, CRE REIT plans, in principle, to continuously distribute amounts in excess of earnings in each fiscal
period pursuant to the distribution policy specified in its certificate of incorporation. Based on this, CRE REIT
distributed 178,053,400 yen, an amount nearly equivalent to 31.7% of depreciation for the fiscal period underreview, as a return of contribution corresponding to distributions accompanying the decrease in capital under
the tax law. As a result, distributions in excess of earnings per investment unit amounted to 356 yen (Note).
Note: The six-month average of total expenses for emergency repair and medium- to long-term repair indicated in the engineering report for each
asset held is 55 million yen. As a result of examining the current economic environment, trends in the real estate market and lease market,
CRE REIT’s financial condition, and other factors, CRE REIT decided to distribute funds in excess of profit based on the judgment thatthe distribution would be within the range that the value of assets held and that its financial health would be maintained. The distributions
in excess of earnings for the fiscal period under review will be deducted from the capitalization at the time of payment.

ii. Outlook for the Next Fiscal Period
A. Future investment policy
CRE REIT focuses on investing in high-quality logistics-related facilities (Note 2) that meet the demand oftenants generally in the Tokyo metropolitan area (Note 1). Needs of logistics real estate users have been
increasingly diversified in recent years due to changes in the market structure. CRE REIT considers that
acquiring, holding, and operating high-quality logistics-related facilities having the necessary and sufficient
functions to meet the needs of individual users of logistics real estate represents the originality of its
investment strategies.
CRE REIT uses the comprehensive strengths (Note 4) of the CRE Group (Note 3), which has more than 50
years of experience in the logistics real estate business, to invest in high-quality logistics-related facilities thatmeet the needs of tenants, create stable cash flow, and aim to increase value for investors.
Note 1:
Note 2:
Note 3:Note 4:The Tokyo metropolitan area includes Tokyo, Kanagawa, Chiba, Saitama, Ibaraki, Tochigi, Gunma, and Yamanashi. The same applies
hereafter.
CRE REIT’s concept of high-quality logistics-related facilities meeting tenant needs are logistics-related facilities that have the location,
basic specifications, expandability, and comfort necessary to satisfy tenant needs. The same applies hereafter.
The CRE Group includes CRE and its affiliates. The CRE Group consists of CRE and its subsidiaries and affiliates. The same applies
hereafter.
The CRE Group has its original know-how characterized by total services in logistics real estate covering from the management andoperation (proposing effective use of land, master leasing, property management, and leasing) to development (acquisition, planning,
construction management (management of quality, construction periods, costs, etc. in development projects. The same applies
hereinafter.), sale), holding, and operation (investment and external acquisition). This is in some cases referred to as the comprehensive
strength of the CRE Group.

3

a. Long-term, stable asset management
CRE REIT believes that CRE is able to prepare locations, basic specifications, expandability, andcomfortable use of properties that meet tenant needs, ensure an appropriate balance with rent levels, anddevelop logistics-related facilities to establish long-term lease contracts, which can be expected togenerate stable cash flow.
CRE REIT ensures medium- to long-term stable cash flow by acquiring and operating properties mostly
having long lease terms. CRE REIT also aims to achieve long-term, stable operation using this wideranging operation and management know-how of the CRE Group, promoting cost reduction while raisingcustomer satisfaction, and reducing the risk of vacancies after tenant vacation.
b. External growth strategy
CRE REIT believes that it is able to promote strong external growth by receiving opportunities to acquire
all logistics-related facilities developed and held by CRE (Note) through a sponsor support agreementwith the CRE Group, a logistics real estate developer.
CRE REIT aims to achieve external growth by maximizing the use of pipeline support based on knowhow built on extensive achievements and experience in the operation, leasing, development, investment,
etc. of the CRE Group through the sponsor support agreement.
Note: Unless the grounds for exclusion from application stipulated in the Sponsor Support Agreement apply.

c. Financial policy
The basic policy of CRE REIT is to build a sound and stable financial base for the purpose of increasing
and maintaining medium to long-term revenues. CRE REIT flexibly issues new investment units
according to the characteristics of its portfolio consisting primarily of long-term lease agreements, taking
into account the LTV level and market environment and paying attention to dilution, and conducts
financial operation with a focus on long-term stability by using borrowings with fixed, long-term interest
rates.
While CRE REIT’s LTV level is set to approximately 45% and no more than 50%, in principle, it may
temporarily exceed 50% due to asset acquisition or other factors.
Logistics facilities are characterized by a high ratio of building price to land and building price anddepreciation tends to be comparatively higher than other asset classes. However, the average building age(Note) of CRE REIT’s portfolio is low at 4.3 years, and large capital expenditures are not very likely to
become necessary. Therefore, CRE REIT has set a policy of distributing funds exceeding profit, inprinciple, continuously and in every fiscal period (“continuous distributions in excess of earnings”),
taking into consideration other options, including use for repairs or capital expenditures, repayment ofborrowings, and the acquisition of new properties. For the time being, the level of continuous distributions
in excess of earnings will be an amount equivalent to 30% of depreciation for the corresponding fiscal
period. If a temporary decrease in distribution per unit is expected, CRE REIT will flexibly adjust theamount within the range of the amount equivalent to 30% for the purpose of leveling the amount of
distribution per unit, and will determine the level of distributions in excess of earnings in each fiscal
period based on a comprehensive judgment.
Note: The weighted average of the building ages (the number of years from the year of construction indicated in the real estate register tothe end of the fiscal period under review) of the 19 properties held at the end of the fiscal period under review based on theiracquisition prices, which is rounded to the first decimal place.

4

High-quality Portfolio (1) Stable cash flow

Form of contract that enables stable operation

Inclusion of relatively new properties• Tenants who cancel early before the end of the contract term are required to pay theequivalent of rent for the whole remaining lease term as a penalty for breach of contract. (Note)• Intention for renewal or termination is ascertained a year before contract expiry.

• Mainly composed of newly built properties, andrepair expense and capital expenditure are
relatively low.

Ratio of fixed-term lease contracts

Ratio of fixed-rate rents

Average age

10 years or more
5.7%

Ratio of fixed-termlease contracts

Ratio of fixed-rate
rents

100.0%

100.0%

Less than 3 years
33.3%

5 years or more but lessthan 10 years
20.4%

Average age

4.3 years
3 years or more but less than 5
years
40.6%

Note：Depending on the amount of the penalty and other circumstances, the court may reduce the penalty in part or deny the effect of such provision.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

5

High-quality Portfolio (2) Long-term lease contracts

Contribution to portfolio stability by concluding long-term contracts in consideration of tenant business plans.

Average lease contract term

Average remaining lease term
10 years or more
3.0%

Multi-tenant
21.5%

Less than 5 years
21.8%

10 years or more
48.4%

Average

Average

7.7 years

5.0 years
5 years or more andless than 10 years
46.6%
5 years or more andless than 10 years
29.8%

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

Tenant composition

Less than 5 years
50.4%

Exclusive usage

78.5%
Exclusive usage
78.5%

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High-quality Portfolio (3) Good location
Properties are mostly in locations suited to logistics facilities where strong demand is expected, withtenants’ need to secure labor also taken into consideration.
Ratio in Tokyo Metropolitan Area

Mileage to an interchange

Outside Tokyo
Metropolitan Area
6.8%

Time required from public transportation
facilities

Over 5 km
10.1%

Ratio in Tokyo
Metropolitan Area

Over 3 km and lessthan 5 km
15.3%

93.2％
Tokyo Metropolitan
Area
93.2%

Walk more than 10 mins
15.5%
Less than 1 km
34.6%

Average

Walk within
10 mins

2.9km

84.5％

Over 1 km and lessthan 3 km
40.0%

Walk within 10 mins
84.5%

Example: LogiSquare Urawa Misono
The property is located approximately 700 m from Urawa IC (Tohoku Expressway) and approximately 450 m and a six-minute walk from Urawa Misono Station on the Saitama
Rapid Railway Line.
A large-scale community development project is underway in the surrounding area, which will allow a close proximity between work and the home and be a potential
advantage in securing employee.

Urawa IC

700 m

450 m
6 mins walk

Urawa Misono Station

LogiSquare Urawa Misono
Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

7

Tokyo Metropolitan Area-centered Portfolio
Locations of Assets Held and Pipeline

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

8

Portfolio is Composed of Newly Built and High Occupancy Properties
Developed by CRE
No.

Property nameLocation

Acquisition
price(million yen)Appraisalvalue(million yen)Appraisal
NOI yield(%)

Total floor area
(m2)

Age
Number of Occupancy
Developer(years)tenants
ratio(%)

M-1

LogiSquare Kuki

Kuki-shi, Saitama

9,759

10,8004.8

40,907.13

5.1

1

100.0

ＣＲＥ

M-2

LogiSquare Hanyu

Hanyu-shi, Saitama

6,830

7,130

5.0

33,999.61

5.0

1

100.0

ＣＲＥ

M-3

LogiSquare Kuki II

Kuki-shi, Saitama

2,079

2,270

5.1

11,511.22

4.4

1

100.0

ＣＲＥ

M-4

LogiSquare Urawa Misono

Saitama-shi, Saitama

13,06014,600

4.7

48,738.29

4.3

3

100.0

ＣＲＥ

M-5

LogiSquare Niiza

Niiza-shi, Saitama

6,960

7,520

4.9

25,355.82

4.3

1

100.0

ＣＲＥ

M-6

LogiSquare Moriya

Moriya-shi, Ibaraki

6,157

6,930

5.2

32,904.90

4.2

2

100.0

ＣＲＥ

M-7

LogiSquare Kawagoe

Kawagoe-shi, Saitama

1,490

1,620

5.0

7,542.56

3.4

1

100.0

ＣＲＥ

M-8

LogiSquare Kasukabe

Kasukabe-shi, Saitama

4,900

5,480

5.1

21,315.54

3.1

1

100.0

ＣＲＥ

M-9

LogiSquare Soka

Soka-shi, Saitama

8,109

8,890

4.6

28,817.59

8.0

1

100.0

ＣＲＥ

M-10 LogiSquare Yashio

Yashio-shi, Saitama

5,073

5,500

4.6

19,068.60

7.4

1

100.0

ＣＲＥ

M-11 LogiSquare Mizuho A

Mizuho-machi, Tokyo

2,794

3,100

4.9

13,755.16

14.4

1

100.0

ＣＲＥ

M-12 LogiSquare Mizuho B

Mizuho-machi, Tokyo

3,584

3,930

4.8

16,016.37

14.4

1

100.0

ＣＲＥ

M-13 LogiSquare Ageo

Ageo-shi, Saitama

4,908

5,150

4.6

19,142.84

2.2

2

100.0

ＣＲＥ

M-14 LogiSquare Miyoshi

Miyoshi-machi,
Saitama

11,70012,700

4.6

37,931.49

1.1

1

100.0

ＣＲＥ

M-15 LogiSquare Sayama Hidaka

Hanno-shi,
Saitama

14,066

14,6004.4

73,728.44

1.1

1

100.0

ＣＲＥ

M-16 LogiSquare Kawagoe II（Note）

Kawagoe-shi,
Saitama

3,244

3,380

4.8

14,281.38

2.0

1

100.0

ＣＲＥ

O-1

LogiSquare Tosu

Tosu-shi, Saga

2,823

3,260

5.3

16,739.40

3.4

1

100.0

ＣＲＥ

O-2

LogiSquare Chitose

Chitose-shi, Hokkaido

1,300

1,560

6.6

19,760.00

3.6

1

100.0

ＣＲＥ

O-3

LogiSquare Kobe Nishi

Kobe-shi, Hyogo

3,479

3,620

4.7

16,006.20

1.2

1

100.0

ＣＲＥ

112,316

122,040

4.8

497,522.54

4.3

23

100.0

―

19 properties Total/Average

Note：LogiSquare Kawagoe II has two buildings, but the total floor area is stated the sum of total floor areas presented in the real estate registries of the two buildings. The age is stated based on the real estate registry of the building with the larger total
floor area of the two buildings.

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

9

Overview of Appraisal ValueNo.

Property nameAt the end of the
At the end of the
ChangesBook value
10th FP
9th FP
Acquisition Acquisition at
Unrealized Unrealized
the end ofmonth and
price
gains
gains rate
the
10th
FP
Appraisal
DirectAppraisal
DirectAppraisal
Directyear(million yen) (million yen)(million
yen)
(%)
value
capitalization
value
capitalization
value
capitalization(million yen) rate (%) (million yen) rate (%) (million yen) rate (%)

M-1

LogiSquare Kuki

Jul. 2016

9,759

9,156

10,8004.3

10,500

4.4

+ 300

- 0.1

1,643

17.9

M-2

LogiSquare Hanyu

Jul. 2016

6,830

6,409

7,130

4.7

7,120

4.7

+ 10

―

720

11.2

M-3

LogiSquare Kuki II

Feb. 2018

2,079

2,009

2,270

4.6

2,220

4.7

+ 50

- 0.1

260

12.9

M-4

LogiSquare Urawa MisonoFeb. 201813,06012,757

14,6004.2

14,600

4.2

―

―

1,842

14.4

M-5

LogiSquare Niiza

Feb. 2018

6,960

6,775

7,520

4.5

7,400

4.5

+ 120

―

744

11.0

M-6

LogiSquare Moriya

Feb. 2018

6,157

5,976

6,930

4.5

6,770

4.6

+ 160

- 0.1

953

16.0

M-7

LogiSquare Kawagoe

Jul. 2019

1,490

1,481

1,620

4.4

1,600

4.5

+ 20

- 0.1

138

9.3

M-8

LogiSquare Kasukabe

Jul. 2019

4,900

4,855

5,480

4.3

5,390

4.4

+ 90

- 0.1

624

12.9

M-9

LogiSquare Soka

Feb. 2020

8,109

8,168

8,890

4.0

8,680

4.1

+ 210

- 0.1

721

8.8

M-10 LogiSquare Yashio

Feb. 2020

5,073

5,123

5,500

4.0

5,380

4.1

+ 120

- 0.1

376

7.3

M-11 LogiSquare Mizuho A

Feb. 2020

2,794

2,844

3,100

4.2

3,010

4.3

+ 90

- 0.1

255

9.0

M-12 LogiSquare Mizuho B

Feb. 2020

3,584

3,624

3,930

4.2

3,840

4.3

+ 90

- 0.1

305

8.4

M-13 LogiSquare Ageo

Jul. 2020

4,908

4,916

5,150

4.3

5,050

4.4

+ 100

- 0.1

233

4.8

M-14 LogiSquare MiyoshiJul. 2020

11,70011,66812,7004.2

12,500

4.3

+ 200

- 0.1

1,031

8.8

M-15 LogiSquare Sayama Hidaka

Jan. 2021

14,066

14,17014,6004.1――+ 14,600

―

429

3.0

M-16 LogiSquare Kawagoe II

Jan. 2021

3,244

3,270

3,380

4.4

―

―

+ 3,380

―

109

3.3

O-1

LogiSquare Tosu

Apr. 2018

2,823

2,733

3,260

4.5

3,190

4.6

+ 70

- 0.1

526

19.3

O-2

LogiSquare Chitose

Jul. 2020

1,300

1,311

1,560

5.3

1,530

5.4

+ 30

- 0.1

248

19.0

O-3

LogiSquare Kobe Nishi

Jan. 2021

3,479

3,514

3,620

4.4

―

―

+ 3,620

―

105

3.0

End of 10th FP Total / Average―

112,316

110,767

122,040―

98,780―+ 23,260―

11,272

10.2

Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.

10

2．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
Tools, furniture and fixtures in trust,net
Land in trust

(305)

(453)

377

2,868

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

11

(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
Leasehold and guarantee deposits received
in trust
Other

38,095,000

42,415,000

1,471,842

1,742,256-

13,638

Total non-current liabilities

41,566,842

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

Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus

1,298,917

1,521,688

1,298,917

1,521,688

Total unitholders’ equity

51,140,595

62,088,107

Total net assets (Note 1)

51,140,595

62,088,107

Total liabilities and net assets

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

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

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

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

Fiscal period ended
June 30, 2021

Operating revenue
Leasing business revenue (Note 1)

2,555,517

3,118,710

48,14740,944295-

2,603,960

3,159,654

Expenses related to leasing business (Note 1)

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

Interest expenses
Interest expenses on investment corporation
bonds
Borrowing related expenses

117,539

137,326

3,339

5,247

67,795

101,346

Amortization of organization expenses
Amortization of investment unit issuance
expenses
Amortization of investment corporation bondissuance costs
Other

6,056

5,047

14,422

12,648913

1,370

14,525

15,263

224,593278,250

Ordinary income

1,299,696

1,522,614

Income 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 (Note 1)
Gain on sale of real estate properties (Note 2)
Total operating revenue
Operating expenses

Operating income
Non-operating income

Non-operating expenses

Total non-operating expenses

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed
loss)
The accompanying notes are an integral part of these financial statements.

13(3) Statement of Unitholders' Equity
Fiscal period ended December 31, 2020
(Thousands of yen)
Unitholders’ equity
Unitholders’ capital

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

Unitholders’capitalDeduction
fromunitholders’capital39,420,558(341,956)

10,865,167(102,091)

Surplus

Unitholders’capital, net

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)

Net income
Total changes
during period
Balance at endof period

10,865,167
50,285,726(Note 1)

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(102,091)

10,763,076

329,311

329,311

11,092,387

11,092,387(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 new
investment
units
Distributions
in excess ofearnings
Dividends ofsurplus

Unitholders’capitalDeduction
fromunitholders’capital50,285,726(444,048)

10,862,378(137,637)

Surplus

Unitholders’capital, net

Unappropr
iatedretainedearnings(undisposed loss)Total
surplus49,841,677

1,298,917

1,298,917

10,862,378
61,148,104

Total net
assets51,140,595

51,140,595

10,862,378

10,862,378

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

Net income
Total 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(137,637)

10,724,740

222,771

222,771

10,947,512

10,947,512(581,685)

60,566,418

1,521,688

1,521,688

62,088,107

62,088,107(Note 1)
The accompanying notes are an integral part of these financial statements.

14(4) Statement of Cash Distribution（Yen）
Fiscal period ended
December 31, 2020
I.

Unappropriated retained earnings

Fiscal period ended
June 30, 2021

1,298,917,519

1,521,688,980

137,637,500

178,053,400

1,436,512,000

1,699,509,700(3,392)(3,398)

1,298,874,500

1,521,456,300(3,067)(3,042)

137,637,500

178,053,400

(325)

(356)

43,019Under the distribution policy
established in Paragraph 1, Article
39 of the certificate of incorporationof CRE REIT, the distribution
amount shall exceed the amountequivalent to 90% the profit
available for distributions provided
for in Article 67-15 of the Act on
Special Measures Concerning
Taxation. Based on this policy, CRE
REIT decided to distribute
1,298,874,500 yen, the maximum
integral multiple of the total numberof investment units outstanding,
423,500, which does not exceed theunappropriated retained earnings.
Based on the cash distribution policy
established in Paragraph 2, Article
39 of the certificate of incorporationof CRE REIT, CRE REIT
continuously distributes cash inexcess of profit (contribution
refunds that fall under distributions
accompanying a decrease in capital
under tax law) in every period.
Under this policy, CRE REIT has
decided to distribute 137,637,500
yen, approximately 30% ofdepreciation, as distributions inexcess of earnings (contribution
refunds that fall under distributions
accompanying a decrease in capital
under tax law).

232,680
Under the distribution policy
established in Paragraph 1, Article
39 of the certificate of incorporationof CRE REIT, the distribution
amount shall exceed the amountequivalent to 90% the profit
available for distributions provided
for in Article 67-15 of the Act on
Special Measures Concerning
Taxation. Based on this policy, CRE
REIT decided to distribute
1,521,456,300 yen, the maximum
integral multiple of the total numberof investment units outstanding,
500,150, which does not exceed theunappropriated retained earnings.
Based on the cash distribution policy
established in Paragraph 2, Article
39 of the certificate of incorporationof CRE REIT, CRE REIT
continuously distributes cash inexcess of profit (contribution
refunds that fall under distributions
accompanying a decrease in capital
under tax law) in every period.
Under this policy, CRE REIT has
decided to distribute 178,053,400
yen, approximately 31.7% ofdepreciation, as distributions inexcess of earnings (contribution
refunds that fall under distributions
accompanying a decrease in capital
under tax law).

II. Surplus cash distributions
Deduction from unitholders’ capital
III. Distributions(Distributions per unit)
Of which, earnings distributions(Earnings distributions per unit)
Of which, distributions in excess ofearnings(Distributions in excess of earnings
per unit)
IV. Retained earnings carried forward
Method of calculating distributions

Note:

CRE REIT is able to distribute an amount determined by CRE REIT, not exceeding amounts specified in laws and regulations (including
rules set forth by the Investment Trusts Association) as cash in excess of earnings if CRE REIT deems it appropriate for the purpose ofmaintaining stable distribution or reducing the tax payments of CRE REIT.

15

(5) Statement of Cash Flows(Thousands of yen)
Fiscal period ended
December 31, 2020

Fiscal period ended
June 30, 2021

1,299,696
459,879
6,056
14,422

1,522,614
562,935
5,047
12,648

913

1,370

(17)
120,879(47,422)(318,991)(18,747)(54,399)
37,771
90,064(63,322)(23)
142,573(8,261)(137,372)(15,396)
40,52927,960110,640
1,932

56,792－(61,070)
1,522,505
17(109,417)(893)

10,2702,277,471
23(136,806)(862)

1,412,212

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

309,463

270,413－(345,394)(18,143,500)

696,902(270,413)(20,380,504)

1,750,000(1,750,000)
9,900,000(3,950,000)
1,986,293
10,846,749(1,072,277)－－
9,900,000(900,000)－
10,844,907(1,436,138)

17,710,765
979,476
2,892,033
3,871,510

18,408,768
168,089
3,871,510
4,039,600

Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of organization expenses
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance
costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Decrease in property, plant and equipment in trust due tosaleOther, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment in trust
Proceeds from leasehold and guarantee deposits received intrust
Proceeds from restricted deposit
Payments into restricted deposits
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
Proceeds from issuance of investment units
Distributions paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 1)
The accompanying notes are an integral part of these financial statements.

16(6) Notes to Financial Statements[Notes on going concern assumption]
Not applicable.

[Summary of significant accounting policies]
Basis of presentation
The financial statements have been prepared in accordance with the provisions set forth in the Act on Investment Trusts andInvestment Corporations of Japan and the Japanese Financial Instruments and Exchange Act and their related accounting
regulations. They are also in conformity with accounting principles generally accepted in Japan (“Japanese GAAP”), which
are different in certain aspects as to the application and disclosure requirements from the International Financial ReportingStandards (“IFRS”).
The financial statements have been reformatted and translated into English from the financial statements of CRE REIT
prepared in accordance with Japanese GAAP. In preparing these financial statements, certain reclassifications andmodifications have been made to the financial statements issued domestically in order to present them in a format which ismore familiar to readers outside Japan.
As permitted by the regulations under the Financial Instruments and Exchange Act of Japan, amounts of less than one
thousand yen have been omitted. As a result, the totals shown in the accompanying financial statements do not necessarily
agree with the sums of the individual amounts.
1. Asset valuation
standards andvaluation method
2. Depreciation method
for non-current assets

3. Accounting fordeferred assets

4. Standards forrecognition ofrevenues and expenses

5. Hedge accounting
methodSecurities
Available-for-sale securities
Securities without fair value
Stated at cost determined by the moving average method.
(1) Property, plant and equipment (including assets in trust)The straight-line method is used.
The useful lives of major property, plant and equipment are as stated below.
Buildings:
2 years to 80 years
Structures:
10 years to 80 years
Tools, furniture and fixtures:
3 years to 10 years(2) Intangible assets
The straight-line method is used.
(3) Long-term prepaid expenses
The straight-line method is used.
(1) Organization expenses
Amortized in equal amounts over five years.
(2) Investment unit issuance expenses
Amortized in equal amounts over three years.
(3) Investment corporation bond issuance costs
Amortized in equal amounts over the period until redemption.
Accounting for fixed asset taxes, etc.
Of the amount of fixed asset taxes, city planning taxes, depreciable asset taxes, etc. imposed on realestate owned that was assessed and determined, the amount corresponding to the relevant calculation
period is expensed as Expenses related to leasing business.
The amount corresponding to fixed asset taxes for the first fiscal period that CRE REIT incurred for theacquisition of real estate or trust beneficiary interests in real estate is not expensed, but is included in theacquisition cost of the real estate.
The amount corresponding to fixed asset taxes that was included in the acquisition cost of real estate
was 26,282 thousand yen in the previous fiscal period and 113,643 thousand yen in the fiscal period
under review.
(1) Hedge accounting method
Deferral hedge accounting is used.
Special treatment is used for interest rate swaps meeting the requirements for special treatment.
(2) Hedging methods and hedged transactions
Hedging instruments: Interest rate swap transactions
Hedged items: Interest on loans(3) Hedging policy17

6. Scope of cash (cashand cash equivalents)
in a statement of cashflows
7. Other matters that
become the basis ofpreparing financial
statements

CRE REIT conducts derivative transactions to hedge the risks set forth in its certificate ofincorporation based on rules specifying the basic policy for risk management.
(4) Methods of assessing hedge effectivenessThe evaluation of the effectiveness of interest rate swaps is omitted because they meet therequirements for special treatment.
Cash (cash and cash equivalents) in the statement of cash flows consist of cash on hand, cash in trust,deposits held on call with banks, deposits in trust, and other short-term highly liquid investments with amaturity of three months or less from the acquisition date with an insignificant risk of changes in value.
(1) Accounting for trust beneficiary interests in real estate
For trust beneficiary interests in real estate, all trust assets and liabilities as well as all income
generated and expenses incurred for trust properties are recorded in the applicable accounts in thebalance sheet and the statement of income.
The following material items among assets in trust posted in the trust accounts are listed separately
on the balance sheet.
(i) Cash and deposits in trust(ii) Buildings in trust, structures in trust, tools, furniture and fixtures in trust, and land in trust(iii) Leasehold and guarantee deposits received in trust(2) Accounting for consumption taxes
The accounting treatment of the consumption tax and the local consumption tax is based on the tax
exclusion method.

[Accounting standards not yet applied]“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 29 issued
on March 31, 2020)“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 issued on March 26,
2021)“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on
March 31, 2020)(1) Overview
The International Accounting Standards Board (“IASB”) and the Financial Accounting Standards Board (“FASB”) in the
United States have jointly developed comprehensive accounting standards for revenue recognition and issued “Revenue
from Contracts with Customers” (IFRS 15 in IASB and Topic 606 in FASB) in May 2014. Given the situation where
IFRS 15 will be applied from fiscal years beginning on or after January 1, 2018 and that Topic 606 will be applied fromfiscal years beginning after December 15, 2017, the ASBJ has developed comprehensive accounting standards forrevenue recognition and issued them together with the implementation guidance. The basic policy of the ASBJ when it
developed the accounting standards for revenue recognition was to specify the accounting standards, incorporating thebasic principles of IFRS 15 as a starting point, from the perspective of comparability between financial statements,
which is one of the benefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that if there is an
item to which consideration should be given, such as practices that have been conducted thus far in Japan, alternative
treatments will be added to the extent to which
comparability is not impaired.
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending December 31, 2021.
(3) Impact of applying the accounting standards
The level of the impact on the financial statements of applying the “Accounting Standard for Revenue Recognition” andits guidance is currently under evaluation.
[Notes to the balance sheet]*1. Minimum net asset value specified in Paragraph (4), Article 67 of the Act on Investment Trusts and Investment
Corporations(Thousands of yen)
As of December 31, 2020

As of June 30, 2021
50,00050,00018

[Notes to the statement of income]*1. Breakdown of net revenue in the real estate leasing business(Thousands of yen)
Fiscal period ended
December 31, 2020

Fiscal period ended
June 30, 2021

2,475,227
80,2903,028,184
90,5262,555,517

3,118,710

21,22723,961

26,91916,982

A. Revenue in the real estate leasing businessLeasing business revenue
Rent revenue
Common-area charge income
Subtotal
Other leasing business revenue
Utilities income
Other revenues
Subtotal

48,14740,9442,603,664

3,159,654

Management commissions
Utilities expenses

122,455
22,212

158,238
26,907

Taxes and public dues
Non-life insurance expenses

164,256
8,711

264,010
10,675

Repair expense
Depreciation

18,420459,479

6,578
562,535

6,516

7,661

Total expenses in the real estate leasing business

802,053

1,036,607

C. Net revenue in the real estate leasing business (A-B)

1,801,611

2,123,047

Total revenue in the real estate leasing business
B. Expenses in the real estate leasing business
Expenses related to leasing business

Other expenses related to leasing business*2. Breakdown of gain on sale of real estate properties
Fiscal period ended December 31, 2020
Part of land at the site of LogiSquare Tosu (sale due to expropriation)(Thousands of yen)
Income from sale of real estate
Cost of selling real estate

57,08856,792Gain on sales of real estate properties

295

Fiscal period ended June 30, 2021
Not applicable.
[Notes to statement of unitholders' equity]*1. Total number of authorized investment units and total number of investment units issued and outstanding
Fiscal period ended
Fiscal period ended
December 31, 2020
June 30, 2021
Total number of authorized investment units
Total number of investment units issued andoutstanding

10,000,000 units

10,000,000 units

423,500 units

500,150 units[Notes to statement of cash flows]*1. Cash and cash equivalents at end of fiscal period and their relationship with the amounts of items listed in the balance
sheet

19

Fiscal period ended
December 31, 2020

(Thousands of yen)
Fiscal period ended
June 30, 2021

Cash and deposits
Cash and deposits in trust

2,972,453
2,370,899

1,728,060
3,356,893

Restricted deposits (Note)(1,471,842)(1,045,353)

Cash and cash equivalents

3,871,510

4,039,600

Note: Deposits and deposits in trust withheld to return leasehold and guarantee deposits received from tenants[Notes to lease transactions]Operating lease transactions (lessor side)
Outstanding lease charges
Fiscal period ended
December 31, 2020
Due within 1 year
Due after 1 year
Total

(Thousands of yen)
Fiscal period ended
June 30, 2021

4,635,999
20,302,566

6,243,184
23,531,901

24,938,565

29,775,086[Notes to financial instruments]
1. Matters related to the status of financial instruments(1) Policy for financial instruments
CRE REIT finances the acquisition of new working assets by issuing investment units, borrowing funds from financial
institutions, issuing investment corporation bonds, or using other means.
CRE REIT carefully uses surplus funds, taking into account safety and liquidity and fully considering the market
environment and financing conditions. Derivative trading is used to hedge the risk of interest-rate fluctuations in financing
such as borrowing or other risks while speculative transactions are avoided.
(2) Details of financial instruments, their risks, and risk management system
Deposits are made from CRE REIT’s surplus funds, which are exposed to credit risks such as the bankruptcy of thefinancial institution to which the funds are deposited. CRE REIT controls credit risks by limiting deposit terms to shortterms and depositing funds only at financial institutions with high credit ratings.
Borrowings and investment corporation bonds are used to finance primarily the acquisition of trust beneficiary interests
in real estate and funds required for the operation of CRE REIT. Among them, floating-rate borrowings are exposed to therisk of interest-rate fluctuations, and CRE REIT uses derivative trading as hedging instruments. Derivative trading is aninterest-rate swap, and CRE REIT hedges the risk of interest-rate fluctuations by, in effect, fixing the interest expenses in
the floating-rate financing. Details about the hedge accounting method, hedged items, hedging policy, and the method ofassessing hedge effectiveness are provided in the earlier section, “5. Hedge accounting method,” in the table “Notes onmatters related to significant accounting policies.”
Leasehold and guarantee deposits received from tenants are money deposited by tenants and exposed to liquidity risk
caused by tenants’ vacation before contract expiration. CRE REIT controls liquidity risk by having the Asset Manager
prepare a cash management schedule and control short-term liquidity.
(3) Supplementary explanation about matters related to the fair value of financial instruments
The fair value of financial instruments includes value based on market prices or amounts rationally calculated if no market
price is available. Certain preconditions apply in the calculation of such values, which may vary when different
preconditions apply. The amount of derivative trading contracts in the latter section, “Notes to derivative trading.” do notdirectly indicate market risks associated with derivative trading.
2. Matters related to fair value of financial instruments
The following table presents the book value, fair value, and differences between them as of December 31, 2020. The table
does not include items whose market price is deemed extremely difficult to estimate. (Note 2)20

(Thousands of yen)
Fair Value(Note 1)

Book value

Difference(1) Cash and deposits

2,972,453

2,972,453–(2) Cash and deposits in trust

2,370,899

2,370,899–

Total assets

5,343,353

5,343,353–(1) Current portion of long-term borrowings

3,574,000

3,574,009

9(2) Investment corporation bonds

2,000,000

2,001,600

1,600(3) Long-term borrowings

38,095,000

38,099,282

4,282

Total liabilities

43,669,000

43,674,891

5,891

–

–

–

Derivative trading

The following table presents the book value, fair value, and differences between them as of June 30, 2021. The table
does not include items whose market price is deemed exceptionally difficult to estimate. (Note 2)(Thousands of yen)
Fair Value(Note 1)

Book value

Difference(1) Cash and deposits

1,728,060

1,728,060–(2) Cash and deposits in trust

3,356,893

3,356,893–

Total assets

5,084,954

5,084,954–(1) Current portion of long-term borrowings

8,254,000

8,259,266

5,266(2) Investment corporation bonds

2,000,000

2,001,200

1,200(3) Long-term borrowings

42,415,000

42,424,276

9,276

Total liabilities

52,669,000

52,684,742

15,742–––Derivative trading

Note 1: Method of calculating fair value of financial instruments and matters related to derivative trading
Assets(1) Cash and deposits, (2) cash and deposits in trust
Given that the fair value of these items is close to their book value because they are settled in a short period of time, they are recorded
at book value.
Liabilities(1) Current portion of long-term borrowings, (3) long-term borrowings
Given that the fair value of these items is close to their book value because interest rates are renewed after certain periods of time,they are recorded at book value. Long-term borrowings with floating rates that are subject to the special accounting treatment forinterest-rate swaps are calculated by discounting the combined total of principal and interest treated as unified with the Interest-rate
swap by a reasonably estimated discount rate applicable to similar borrowings.
(2) Investment corporation bonds
Investment corporation bonds are recorded at reference values published by the Japan Securities Dealers Association.
Derivative trading
See the latter section, “Notes to derivative trading.”
Note 2: Financial instruments whose fair value is deemed extremely difficult to estimate(Thousands of yen)
Category

As of December 31, 2020

Leasehold and guarantee deposits received in trust**

1,471,842

As of June 30, 2021
1,742,256

A reasonable estimate of the future cash flow of the amounts of leasehold and guarantee deposits received in trust, which are posted in
the above balance sheet, is not possible due to the unavailability of a market value and the difficulty in making assumptions, such as thetiming of returns, which render it extremely difficult to estimate the fair value. As such, the fair value is not disclosed.

21Note 3: Scheduled redemption amounts of money claims after closing date
As of December 31, 2020

(Thousands of yen)
Due after 1 year Due after 2 year Due after 3 year Due after 4 year
Due within 1
and within 2
and within 3
and within 4
and within 5
year
years
years
years
years

Due after 5
years

Cash and deposits

2,972,453

―

―

―

―

―

Cash and deposits in trust

2,370,899

―

―

―

―

―

5,343,353

―

―

―

―

―

Total
As of June 30, 2021

(Thousands of yen)
Due after 1 year Due after 2 year Due after 3 year Due after 4 year
Due within 1
and within 2
and within 3
and within 4
and within 5
year
years
years
years
years

Due after 5
years

Cash and deposits

1,728,060

―

―

―

―

―

Cash and deposits in trust

3,356,893

―

―

―

―

―

5,084,954

―

―

―

―

―

Total

Note 4: Scheduled repayment amounts of investment corporation bonds and borrowings after the closing date
As of December 31, 2020

(Thousands of yen)
Due after 1 year Due after 2 year Due after 3 year Due after 4 year
Due within 1
and within 2
and within 3
and within 4
and within 5
year
years
years
years
years
Investment corporation bonds
Long-term borrowings
Total

Due after 5
years

―

―

―

―

2,000,000―

3,574,000

6,080,000

6,580,000

6,785,000

5,600,000

13,050,000

3,574,000

6,080,000

6,580,000

6,785,000

7,600,000

13,050,000

As of June 30, 2021

(Thousands of yen)
Due after 1 year Due after 2 year Due after 3 year Due after 4 year
Due within 1
and within 2
and within 3
and within 4
and within 5
year
years
years
years
years
Investment corporation bonds
Long-term borrowings
Total

Due after 5
years

―

―

―

―

2,000,000―

8,254,000

6,080,000

6,580,000

8,705,000

7,900,000

13,150,000

8,254,000

6,080,000

6,580,000

8,705,000

9,900,000

13,150,000[Notes to securities]
Not applicable in the previous fiscal period (ended December 31, 2020) and the fiscal period under review (ended June 30,2021).
[Notes to derivative trading]
1. Derivatives not subject to hedge accounting
Not applicable in the previous fiscal period (ended December 31, 2020) and the fiscal period under review (ended June30, 2021).
2. Derivatives subject to hedge accounting
The table below shows the value of contract or the equivalent of the principal set forth in the contract at the closing dateusing the hedge accounting method.
As of December 31, 202022

Hedge accounting
methodType of derivative trading

Major hedged
itemInterest-rate swap
Special accounting
transactions floating rate
treatment forreceivable, fixed rateinterest-rate swaps
payableLong-term
borrowings(Thousands of yen)
Method ofFair value calculating fair
Due after a year
value

Contract amount

41,669,000

38,095,000―*

As of June 30, 2021
Hedge accounting
methodType of derivative trading

Major hedged
itemInterest-rate swap
Special accounting
transactions floating rate
treatment forreceivable, fixed rateinterest-rate swaps
payableLong-term
borrowings(Thousands of yen)
Method ofFair value calculating fair
Due after a year
value

Contract amount

49,669,000

42,415,000―** Because interest-rate swaps subject to special accounting treatment are treated as unified with the long-term borrowings subject to hedging,their fair value is included in the fair value of “current portion of long-term borrowings” and “long-term borrowings” in the earlier section,“2. Matters related to fair value of financial instruments.” under “Notes to financial instruments.”[Notes to retirement benefits]
Not applicable in the previous fiscal period (ended December 31, 2020) and the fiscal period under review (ended June 30,2021) due to the absence of retirement benefit plan in CRE REIT.
[Notes to tax effect accounting]
1. Breakdown of deferred tax assets and liabilities by major cause(Thousands of yen)
As of December 31, 2020
Deferred tax assets
Amount excluded from deductible expenses ofaccrued enterprise taxes
Total deferred tax assets
Net deferred tax assets

As of June 30, 2021

12

17

12

17

12

17

2. Breakdown of major items that caused a significant difference between the effective statutory tax rate and the actual
effective income tax rate
As of December 31, 2020
Effective statutory tax rate
(Adjustment)
Inclusion of distribution paid in deductible
expenses
Other
Actual effective income tax rate

As of June 30, 2021

31.46%

31.46%(31.44)%(31.44)%

0.05%

0.04%

0.07%

0.06%

[Notes to share of profit and loss of entities accounted for using the equity method]
Not applicable in the previous fiscal period (from July 1 to December 31, 2020) and the fiscal period under review (fromJanuary 1 to June 30, 2021) due to the absence of a company affiliated with CRE REIT.

23

[Notes on transactions with related party]
1. Parent company and major corporate unitholders
Not applicable in the previous fiscal period (from July 1 to December 31, 2020) and the fiscal period under review (fromJanuary 1 to June 30, 2021)
2. Affiliated companies
Not applicable in the previous fiscal period (from July 1 to December 31, 2020) and the fiscal period under review (fromJanuary 1 to June 30, 2021)
3. Companies under common control
Not applicable in the previous fiscal period (from July 1 to December 31, 2020) and the fiscal period under review (fromJanuary 1 to June 30, 2021)
4. Directors and major individual unitholders
Fiscal period ended December 31, 2020
Attributes

Companyor other
names

Address

Capital orinvestment(million yen)

Business or occupation

Directors
and their
relatives

TsuyoshiIto––

Executive Director of CRE
REIT and President of theAsset Manager

Amount ofPercentage of Relationships
Description of transaction
voting rights with relatedtransaction(thousand(owned)partiesyen)
Payment of
Asset
asset
–
management319,751
management
contractor
fees

Item

Balance at
end of period(thousandyen)

Accruedexpenses

169,169

Note 1: The above transaction amounts do not include consumption tax, while the balance at the end of the fiscal period does include consumption
tax.
Note 2. The amount of asset management fees is determined based on the conditions specified in the certificate of incorporation of CRE REIT.
Note 3: The amount of asset management fees includes 89,540 thousand yen, the performance fees for property acquired, added to the book value ofindividual investment properties.

Fiscal period ended June 30, 2021
Attributes

Companyor other
names

Address

Capital orinvestment(million yen)

Business or occupation

Directors
and their
relatives

TsuyoshiIto––

Executive Director of CRE
REIT and President of theAsset Manager

Amount ofPercentage of Relationships
Description of transaction
voting rights with relatedtransaction(thousand(owned)partiesyen)
Payment of
Asset
asset
–
management
373,048
management
contractor
fees

Item

Balance at
end of period(thousandyen)

Accruedexpenses

Note 1: The above transaction amounts do not include consumption tax, while the balance at the end of the fiscal period does include consumption
tax.
Note 2. The amount of asset management fees is determined based on the conditions specified in the certificate of incorporation of CRE REIT.
Note 3: The amount of asset management fees includes 103,945 thousand yen, the performance fees for property acquired, added to the book valueof individual investment properties.

[Notes to asset retirement obligations]Not applicable in the previous fiscal period (from July 1 to December 31, 2020) and the fiscal period under review (fromJanuary 1 to June 30, 2021)[Notes to real state such as rental properties]
CRE REIT holds rental logistics facilities principally in the Tokyo metropolitan area for the purpose of generating rental
revenues. The amounts of items related to these rental properties posted on the balance sheet, changes in the amounts during
the period, and fair value of the properties are presented in the table below.

24

195,748

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

Fiscal period ended
June 30, 2021

Balance sheet amount
Balance at beginning of period
Increase (decrease) during theperiodBalance at end of period
Fair value at the end of period

72,661,746

90,253,043

17,591,296

20,514,870

90,253,043

110,767,914

98,780,000

122,040,000

Note 1: The amounts in the balance sheet represent the results of deducting the accumulated depreciation from the acquisition costs.
Note 2: Of the changes in the amounts in the previous fiscal period, the largest increase was attributable to the acquisition of three properties(LogiSquare Ageo, LogiSquare Miyoshi, and LogiSquare Chitose, totaling 18,068,659 thousand yen), and major decreases resulted fromthe sale of part of the land of LogiSquare Tosu (56,792 thousand yen) and depreciation (459,479 thousand yen). Of the changes in amounts
in the fiscal period under review, the largest increase was caused by the acquisition of three properties (LogiSquare Sayama Hidaka,
LogiSquare Kawagoe II, and LogiSquare Kobe Nishi, totaling 21,058,502 thousand yen), and the largest decrease was due to depreciation(562,535 thousand yen).
Note 3: The fair value at the end of the period was based on the appraisal value or investigation value estimated by external real-property
appraisers.

Profit and loss on operations of rental properties are stated in the earlier section, “Notes to the statement of income.”[Notes to segment information]
Segment information
CRE REIT has only one segment, the real estate leasing business, and the section of segment information is therefore omitted.
Related information
Fiscal period ended December 31, 2020
1. Information about products and services
The statement is omitted because operating revenue from external customers in a single product and service category
accounts for more than 90% of operating revenue on the statement of income.
2. Information by geographical area
(1) Operating revenues
The statement is omitted because operating revenue from external customers in Japan accounts for more than 90% of
operating revenue in the statement of income.
(2) Property, plant and equipment
The statement is omitted because the amount of property, plant and equipment located in Japan accounts for more than
90% of the amount of property, plant and equipment in the balance sheet.
3. Information about major customers
Counterparty

Operating revenues

Nippon Express Co., Ltd.

(Note 1)Sangetsu Corporation.

(Note 1)

CRE, Inc.

(Note 2) 466,806(Thousands of yen)
Related segments
Real estate leasing
business
Real estate leasing
business
Real estate leasing
business

Note 1: Information about rents and other items is not provided due to the absence of tenant approval for the disclosure.
Note 2: The amount includes rents for a certain period in which a fixed amount of monthly rent is received based on a master lease agreement
irrespective of rental agreements with end tenants.

Fiscal period ended June 30, 2021
1. Information about products and services
The statement is omitted because operating revenue from external customers in a single product and service category
accounts for more than 90% of operating revenue on the statement of income.
2. Information by geographical area
(1) Operating revenues

25

The statement is omitted because operating revenue from external customers in Japan accounts for more than 90% of
operating revenue in the statement of income.
(2) Property, plant and equipment
The statement is omitted because the amount of property, plant and equipment located in Japan accounts for morethan 90% of the amount of property, plant and equipment in the balance sheet.
3. Information about major customers(Thousands of yen)Counterparty

Operating revenues

Nippon Express Co., Ltd.
CRE, Inc.

(Note 1)
(Note 2) 933,247

Related segments
Real estate leasing
business
Real estate leasing
business

Note 1: Information about rents and other items is not provided due to the absence of tenant approval for the disclosure.
Note 2: The amount includes rents for a certain period in which a fixed amount of monthly rent is received based on a master lease agreement
irrespective of rental agreements with end tenants.

[Notes to per-unit information](Yen)
Fiscal period ended December 31, 2020

Fiscal period ended June 30, 2021

Net assets per unit

120,757

Net assets per unit

124,138

Net income per unit

3,107

Net income per unit

3,092

Note 1: Net income per unit is calculated by dividing net income by the average number of investment units weighted by the number of days during
the period.
Diluted net income per unit is not stated due to the absence of diluted investment units.
Note 2: The basis of calculating net income per unit is presented below.
Fiscal period ended
December 31, 2020

Net income (thousand yen)Amount not attributable to common
unitholders (thousand yen)
Net income related to common investment
units (thousand yen)
Average number of investment units during
period (units)

Fiscal period ended
June 30, 2021

1,298,833

1,521,645－－

1,298,833

1,521,645

417,956

492,083[Notes to significant subsequent events]
1. Issuance of new investment units
CRE REIT passed a resolution at the Board of Directors’ meetings held on September 2, 2021, and September 9, 2021,
to issue the following new investment units. Payment for the issuance of new investment units through public offering
was completed on September 15, 2021. As a result, total unitholders’ capital (net) as of September 15, 2021 is73,535,457,100 yen and the total number of investment units outstanding is 564,700.
Issuance of new investment units through public offering
Number of new investment units issued
64,550 units
Issue price
210,994 yen per unit
Total amount of issue price
13,619,662,700 yen
Issue amount
203,673 yen per unit
Total issue amount
13,147,092,150 yen
Payment date
September 15, 2021
Initial date of reckoning distributions
July 1, 2021
Use of proceeds
The proceeds from the above public offering were appropriated as part of the funds to acquire the beneficial interests inreal estate trust described in the latter section, “3. Acquisition of assets.”26

2. Borrowings
CRE REIT has borrowed funds listed in the table below for the purpose of acquiring the beneficial interests in realestate trust and appropriating the funds as part of related expenses described in the latter section, “3. Acquisition ofassets.”Category

LenderLoan amount(million yen)

Sumitomo Mitsui
Banking Corporation

600

Mizuho Bank, Ltd

500

The Shizuoka Bank,Ltd.
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
The Bank of Fukuoka
Ltd.
The Hyakujushi Bank,Ltd.
The Yamaguchi Bank,
Ltd.
Sumitomo Mitsui Trust
Bank, Limited

250
250
250

Notes

Base rate (JBA 3month Japanese
Yen TIBOR)+0.475%(Note 1)

Borrowings based
Lumpon individual loansum
Unsecured
September agreements
March 31,
repayment Unguarantee
15, 2021 concluded on
2027
at
d
September 13,
maturity
2021

Base rate (JBA 3month Japanese
Yen TIBOR)+0.500 %(Note 2)

Borrowings based
Lumpon individual loansum
Unsecured
September agreements
September
repayment Unguarantee
15, 2021 concluded on
30, 2027atd
September 13,
maturity
2021

200

200
200
200
650
550

Development Bank ofJapan Inc.

500

Shinsei Bank, Limited

400

Aozora Bank, Ltd.

400
300
250
250
200

Mizuho Bank, Ltd.

1,000

Sumitomo Mitsui
Banking Corporation

1,000

Total

Repaymen Repaymen
t datet method

350

Aozora Bank, Ltd.

The Yamaguchi Bank,
Ltd.
Sumitomo Mitsui Trust
Bank, Limited
The Yamanashi Chuo
Bank, Ltd.
The Hyakujushi Bank,
Ltd.

Borrowing
method350

200

Long-term
borrowings Mizuho Bank, Ltd

Borrowing
date

450

Shinsei Bank, Limited

The Bank of Toyama,Ltd.
The Yamanashi Chuo
Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

Interest rate

9,500

Borrowings based
Lumpon individual loan
Base rate (JBA 1sum
Unsecured
September agreements
Septembermonth Japanese yen
repayment Unguarantee
15, 2021 concluded on
30, 2022
TIBOR) +0.300%
atd
September 13,
maturity
2021
Borrowings based
Lumpon individual loan
Base rate (JBA 1sum
Unsecured
September agreements
Septembermonth Japanese yen
repayment Unguarantee
15, 2021 concluded on
30, 2022
TIBOR) +0.300%
atd
September 13,
maturity
2021
–

–

–

Note 1: The interest rate on borrowings is, in effect, fixed at 0.546% by signing a separate swap agreement.
Note 2: The interest rate on borrowings is, in effect, fixed at 0.576% by signing a separate swap agreement.

27

–

–

–

3. Acquisition of assets
CRE REIT has acquired the following beneficial interests in real estate trust. The acquisition price indicated is the amountof transaction price stated in documents such as the buy-sell agreement for beneficial interests in trust, which does notinclude expenses necessary for the acquisition (intermediary fees, taxes and public dues, etc.) (the transfer amount statedin the sales agreement, etc.).
Property nameDate of acquisition

Acquisition price

Location

LogiSquare Osaka Katano

September 15, 2021

22,370 million yen

Katano-shi, Osaka

Total

–

22,370 million yen–(7) Supplementary schedules
1. Schedule of securities(1) Stocks(Thousands of yen)
Name
Kukishobu Industrial Park
Management Center
Total

Acquisition price

Fair value

Number ofsharesUnit priceAmountUnit priceAmountValuation
profit/loss

Remarks

10,5001

10,5001

10,500-(Note)

10,5001

10,5001

10,500--(Note)The fair value of the unlisted shares is stated at book value(2) Securities other than stocks
Not applicable.
2. Schedule of contract amounts and fair value of derivative transactions and forward exchange transactions(Thousands of yen)Classification

OTC transactions

Contract amount (Note 1)

Type

Fair value(Note 2)

Due after a year

Interest-rate swap transactions
floating rate receivable, fixed rate
payableTotal

49,669,000

42,415,000-

49,669,000

42,415,000-(Note 1) Contract amounts of interest-rate swaps are presented based on notional amounts.
(Note 2) Fair value statement is omitted for those transactions that meet the criteria for special accounting treatment for interest-rate swaps inaccordance with the Accounting Standard for Financial Instruments.

3. Schedule of property, plant and equipment(Thousands of yen)

Types of assets

Accumulated depreciation
Balance at theBalance at the or accumulated Depreciation
Increase during Decrease during
beginning of theend of theamortizationon
the period
the period
periodperiodfor theNet balanceat the end of
the period

Remarks

periodBuildings in trust

47,303,072

11,534,473-

58,837,546

2,760,123

540,809

56,077,422

Structures in trust

2,546,706

375,933-

2,922,640

106,699

21,5782,815,940

682

2,640

-

3,322

453

148

2,868

Land in trust

42,707,322

9,164,359-

51,871,682--

51,871,682

Total

92,557,785

21,077,406-

113,635,191

2,867,277

562,535

110,767,914

Tools, furniture and fixturesin trust(Note)The main reasons for the increase in buildings in trust, structures in trust, and land in trust were the acquisition of LogiSquare Sayama Hidaka,
LogiSquare Kawagoe II, and LogiSquare Kobe Nishi.

4. Schedule of other specified assets
The beneficial interests in real estate trusts are included in "3. Schedules of property, plant and equipment" above.

28(Note)

5. Schedule of investment corporation bonds(Thousands of yen)Issue
CRE Logistics REIT, Inc.
1st unsecured investment
corporation bond with
supplementary pari passu
clause(Green bond)Issue Date

Balance at the
beginning of
the period

September
8, 2020

2,000,000-

2,000,000

0.530%

September
8, 2025

Repaymentof existing
borrowings

Unsecured/
unguarante
ed-2,000,000-

2,000,000

-

-

-

-

Total

Decreaseduring theperiodBalance atthe end of
the period

Interest
rate

Maturitydate

Use

Collateral(Note)The following is the maturity schedule for each year within five years after the balance sheet date.

(Thousands of yen)
Due within 1 year

Due after 1 year
Due after 2 year
Due after 3 year
Due after 4 year
and within 2 years and within 3 years and within 4 years and within 5 years

Investment corporation bonds

-

-

-

-

2,000,000

Total

-

-

-

-

2,000,000

6. Schedule of borrowings(Thousands of yen)Classific
ation

Lenders

Balance at theBalance at the Average Repayment
Increase during Decrease during
beginning of theend of the interest rate
the period
the period
periodperiod(Note 2) due date

Sumitomo Mitsui Banking
Corporation

830,000--

830,000

MUFG Bank, Ltd.

650,000--

650,000

Mizuho Bank, Ltd.

650,000--

650,000

Development Bank of Japan Inc.

650,000--

650,000

Resona Bank, Limited

550,000--

550,000

The Nishi-Nippon City Bank, Ltd.

350,000--

350,000

Sumitomo Mitsui Banking
Corporation

830,000--

830,000

MUFG Bank, Ltd.

650,000--

650,000

Mizuho Bank, Ltd.

650,000--

650,000

Development Bank of Japan Inc.

650,000--

650,000

Long- Resona Bank, Limited
termborrowi The Nishi-Nippon City Bank, Ltd.
ngs
Sumitomo Mitsui Banking(Note 1)
Corporation

550,000--

550,000

350,000--

350,000

830,000--

830,000

MUFG Bank, Ltd.

650,000--

650,000

Mizuho Bank, Ltd.

650,000--

650,000

Development Bank of Japan Inc.

650,000--

650,000

Resona Bank, Limited

550,000--

550,000

The Nishi-Nippon City Bank, Ltd.

350,000--

350,000

Sumitomo Mitsui Banking
Corporation

750,000--

750,000

Mizuho Bank, Ltd.

600,000--

600,000

Development Bank of Japan Inc.

450,000--

450,000

Resona Bank, Limited

400,000--

400,000

The Nishi-Nippon City Bank, Ltd.

200,000--

200,000

29

Use

Remarks

0.536% January 31,(Note 3)2022

0.635% January 31,(Note 3)2023

Unsecured/(Note 4) unguarante
ed0.731% January 31,(Note 3)2024

0.569%(Note 3)

July 29,2022

Classification

Lenders

Balance at theBalance at the Average Repayment
Increase during Decrease during
beginning of theend of the interest rate
the period
the period
periodperiod(Note 2) due date

Sumitomo Mitsui Banking
Corporation

527,000--

527,000

Mizuho Bank, Ltd.

527,000--

527,000

Development Bank of Japan Inc.

527,000--

527,000

Resona Bank, Limited

265,000--

265,000

The Nishi-Nippon City Bank, Ltd.

527,000--

527,000

Sumitomo Mitsui Trust Bank, Ltd.

527,000--

527,000

Sumitomo Mitsui Banking
Corporation

936,000--

936,000

Mizuho Bank, Ltd.

785,000--

785,000

MUFG Bank, Ltd.

785,000--

785,000

Development Bank of Japan Inc.

250,000--

250,000

Resona Bank, Limited

499,000--

499,000

The Nishi-Nippon City Bank, Ltd.

319,000--

319,000

Sumitomo Mitsui Banking
Corporation

927,000--

927,000

Mizuho Bank, Ltd.

680,000--

680,000

310,000--

310,000

325,000--

325,000

420,000--

420,000

443,000--

443,000

Sumitomo Mitsui Banking
Corporation

1,100,000--

1,100,000

Mizuho Bank, Ltd.

1,100,000--

1,100,000

Development Bank of Japan Inc.

850,000--

850,000

Sumitomo Mitsui Trust Bank, Ltd.

800,000--

800,000

The Nishi-Nippon City Bank, Ltd.

700,000--

700,000

The Bank of Fukuoka, Ltd.

650,000--

650,000

Resona Bank, Limited

400,000--

400,000

Sumitomo Mitsui Banking
Corporation

800,000--

800,000

Mizuho Bank, Ltd.

700,000--

700,000

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

Development Bank of Japan Inc.

450,000--

450,000

The Bank of Fukuoka, Ltd.

350,000--

350,000

Sumitomo Mitsui Trust Bank, Ltd.

300,000--

300,000

Resona Bank, Limited

300,000--

300,000

MUFG Bank, Ltd.
Longterm Development Bank of Japan Inc.
borrowings
Resona Bank, Limited(Note 1)The Nishi-Nippon City Bank, Ltd.

30

0.402%(Note 3)

July 31,2023

0.308%(Note 3)

July 30,2021

0.462%(Note 3)

July 31,2024

0.570% January 31,(Note 3)2025

0.639% January 30,(Note 3)2026

Use

Remarks

Unsecured/(Note 4) unguaranteedClassification

Balance at theBalance at the Average Repayment
Increase during Decrease during
beginning of theend of the interest rate
the period
the period
periodperiod(Note 2) due dateLenders

Use

Sumitomo Mitsui Banking
Corporation

1,500,000--

1,500,000

Mizuho Bank, Ltd.

1,400,000--

1,400,000

Development Bank of Japan Inc.

1,200,000--

1,200,000

Sumitomo Mitsui Trust Bank, Ltd.

800,000--

800,000

Resona Bank, Limited

500,000--

500,000

Shinsei Bank, Limited

500,000--

500,000

The Hyakujushi Bank, Ltd.

500,000--

500,000

The Nishi-Nippon City Bank, Ltd.

400,000--

400,000

The Bank of Fukuoka, Ltd.

300,000--

300,000

Sumitomo Mitsui Banking
Corporation

1,000,000--

1,000,000

Mizuho Bank, Ltd.

850,000--

850,000

Resona Bank, Limited

500,000--

500,000

The Nishi-Nippon City Bank, Ltd.

200,000--

200,000-

900,000-

900,000

Mizuho Bank, Ltd.
Longterm Development Bank of Japan Inc.
borrowings
MUFG Bank, Ltd.
(Note 1)
Sumitomo Mitsui Trust Bank, Ltd.

-

800,000-

800,000-

600,000-

600,000-

700,000-

700,000-

400,000-

400,000

Shinsei Bank, Limited-

400,000-

400,000

Aozora Bank, Ltd-

400,000-

400,000

The Bank of Toyama, Ltd-

300,000-

300,000

Sumitomo Mitsui Banking
Corporation-

900,000-

900,000

Mizuho Bank, Ltd.

-

700,000-

700,000

Development Bank of Japan Inc.

-

500,000-

500,000

Sumitomo Mitsui Trust Bank, Ltd.

-

400,000-

400,000

Shinsei Bank Co., Ltd.,-

400,000-

400,000

Aozora Bank, Ltd-

600,000-

600,000

Sumitomo Mitsui Banking
Corporation-

500,000-

500,000

Mizuho Bank, Ltd.

-

500,000-

500,000

Sumitomo Mitsui Banking
Corporation-

900,000

900,000-

41,669,000

9,900,000

900,000

50,669,000 ---

41,669,000

9,900,000

900,000

50,669,000 ---Sumitomo Mitsui Banking
Corporation

Subtotal
Total

0.608%(Note 3)

Remarks

July 31,2026

0.649% January 29,(Note 3)2027

Unsecured/(Note 4) unguarante
ed0.471%(Note 3)

July 31,2025

0.587%(Note 3)

July 30,2027

0.380%

January 31,
2022

0.378%

January 31,
2022(Note 5)-(Note 1) Current portion of long-term borrowings are included in long-term borrowings.
(Note 2) Average interest rate is the weighted average of the number of days and outstanding borrowings during the period, rounded to the fourth
decimal place.
(Note 3) Average interest rates on borrowings with interest-rate swaps used to hedge interest rate risk are stated taking into account the effects ofinterest-rate swaps.
(Note 4) Long-term borrowings are appropriated to acquire the beneficial interests in real estate trust and to refinance.
(Note 5) CRE REIT made a prepayment of the entire amount of 900 million yen on April 30, 2021.
(Note 6) With respect to the above borrowings, the "Loan Agreement" between CRE REIT and each individual financial institution contains a rider
that the borrowings from all financial institutions rank pari passu with each other.
(Note 7) The following is the maturity schedule for each year within five years after the balance sheet date.

Due within 1 year
Long-term borrowings

8,254,000

Due after 1 year
and within 2 years
6,080,000

31

Due after 2 year
and within 3 years
6,580,000

Due after 3 year
and within 4 years
8,705,000(Thousands of yen)
Due after 4 year
and within 5 years
7,900,000