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Investor Presentation Material 9th Fiscal Period (Fiscal Period Ended January 31, 2021) Investor Presentation Material Mitsui Fudosan Logistics Park Inc. (MFLP-REIT) March 12, 2021 Securities Code 3471 Table of Contents 1. Highlights 3. ESG Initiatives 1-1 Operating Highlights …… P3 3-1 Initiatives of Mitsui Fudosan Group …… P32 1-2 External Growth …… P4 3-2 Initiatives of MFLP-REIT and Asset Management …… P33 1-3 Internal Growth …… P9 Company – ESG Promotion Framework 1-4 Financial Strategy …… P10 3-3 Initiatives of MFLP-REIT and Asset Management …… P34 1-5 Initiatives for ESG …… P11 Company – Topics 1-6 DPU growth …… P12 3-4 Initiatives of MFLP-REIT – for Environment …… P35 1-7 9th Fiscal Period (Ended January 2021) P/L …… P13 3-5 Initiatives of MFLP-REIT – for Society …… P36 1-8 10th Fiscal Period (Ending July 2022) Earnings …… P14 3-6 Initiatives of MFLP-REIT – for Governance …… P37 Forecast 4. Market Overview 4-1 Market Overview …… P39 2. Growth Strategy of MFLP-REIT 5. Appendix 2-1 Continuous Growth through a strategic partnership …… P16 • Our Portfolio …… P45 with Mitsui Fudosan • Individual Property Income Statement for 9th Fiscal Period …… P47 2-2 Four Roadmaps to Stable Growth and Trajectory …… P18 • Appraisal Summary for the End of 9th Fiscal Period …… P48 of Growth • Statement of Income and Balance Sheet …… P49 2-3 Four Roadmaps to Enable Continued Stable Growth …… P19 • Distribution after Adjustment of Temporary Effects …… P50 2-4 External Growth Strategy …… P21 • Investment Unit Price Trends/Status of Unitholders …… P51 2-5-1 Location …… P23 • Mitsui Fudosan’s Major Development/Operation Track …… P52 2-5-2 Quality …… P25 Record 2-5-3 Balance …… P26 2-6 Internal Growth Strategy …… P27 Notes on Matters Stated in This Document …… P53 2-7 Financial Strategy …… P29 Disclaimer 1 1. Highlights 2 1-1 Operating Highlights Accelerating steady growth through strategic partnership with Mitsui Fudosan External Growth Financial Strategy • Acquired MFLP Ibaraki and MFLP Kawaguchi I (¥77.4bn) through 4th follow-on offering in Oct. 2020 • LTV* forecast at end of 10th FP 33.8% • Completed purchase agreement for data center (post-MFIP Inzai II acquisition): lowest amongst MFIP Inzai II (¥15.15bn) to acquire on Mar. 16. J-REITs. Maintain strong growth potential Asset size to rise to ¥300bn • Further strengthen financial soundness. Increase • 3 new properties added to Properties defined in lenders to 22. Issue 1st Investment Corporation “Right of first look and preferential negotiation rights bond. Increase commitment line to ¥8bn. agreement”* for a total of 11 properties, 1.1mn m2 Credit rating AA- upgraded from stable to positive Internal Growth ESG Initiatives • Despite pandemic, average occupancy rate** for • Implemented rigorous COVID-19 infection 9th FP maintained at 100% prevention measures • All leases expiring in 9th/10th FPs signed. • Advanced ESG initiatives with launch of 100% of 9th FP, 92.8% of 10th FP signings were sustainability bond in February st renewals (1 Investment Corporation bond) DPU* Growth 9th fiscal period DPU (Actual) ¥7,283(vs. 7th FP +10.6%) 10th fiscal period DPU (Forecast) ¥7,772 (vs. 8th FP +11.4%) * For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement”] [Highlights] in the Notes on Matters Stated in this Document on p.53-54 ** Simple average of occupancy rates at the end of each month during the fiscal period in question 3 1-2 External Growth [1] ーProperties Acquired in 9th FPー Acquisition of highly competitive MFLP Ibaraki and MFLP Kawaguchi I through 4th follow-on offering About the 4th follow-on offering Offering format Global offering Launch date / Pricing date September 16, 2020 / September 29, 2020 Despite pandemic, enhanced the quality and stability of the Approx. 10x Demand ratio portfolio, improving long-term unitholder value (of which, overseas demand approx. 15x) Acquired 2 highly competitive properties in prime locations Total amount issued / 49.83 billion yen / Total number of units issued PO:96,190 units, OA:4,810 units Overview of properties acquired in the 9th FP Appraisal NOI / No. of properties / Acquisition price Adjusted forecast NOI yield* Average occupancy rate * Appraisal value * / 2 properties / 77.4 billion yen Avg. 4.1% / Avg. 4.5% 100 % Average building age * Less than 5 km from expressway interchange Average lease term remaining * 3.0 years 100 % 3.1 year MFLP Ibaraki MFLP Kawaguchi I Overview of the property Overview of the property Location Ibaraki-shi, Osaka Location Kawaguchi-shi, Saitama Acquisition price 58,900 million yen Acquisition price 18,500 million yen Appraisal NOI yield 4.1% / Appraisal NOI yield 4.0% / /Adjusted forecast 4.6% /Adjusted forecast 4.4% NOI yield NOI yield Gross floor area 230,435㎡ Gross floor area 49,838m2 Characteristics of the property Characteristics of the property Flagship property. One of largest in Osaka inland area. Close to major Located very close to Central Tokyo. Last mile distribution base enabled for expressway interchanges. Superior location for securing work force high frequency receiving and dispatch * For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.53-54. 4 1-2 External Growth [2] ーProperty to be Acquired in 10th FPー Largely achieve medium-term asset size target of ¥300bn through acquisition of leading-edge, large-scale data center MFIP Inzai II MFIP Inzai II Data center Anticipated acquisition price / Appraisal value * Appraisal NOI / Appraisal value* / Adjusted forecast NOI yield* 15.15 billion yen / 15.2 billion yen 4.7% / 4.7% Building age * Occupancy rate * 0.7 years 100 % MFIP Inzai II Characteristics of the property Access Excellent access: 1 hour by car from central Tokyo. Outside area subject to traffic restrictions in event of large-scale earthquake Seismic performance Overview of the property Seismic isolation structure: superior seismic performance Location Inzai-shi, Chiba Gross floor area * 27,268㎡ Investment structure Sales and purchase March 12, 2021 / Completion ** December, 2020 agreement date / MFLP only owns real estate (land/physical shell), for which it March 16, 2021 Planned acquisition date receives rent payments based on lease agreement * For further details, please refer to [Highlights] in the Notes on Matters Stated in this Document on p.53-54. 5 **Completion date is date that inspection completion certificate is issued 1-2 External Growth [2] ーProperty to be Acquired in 10th FPー Superior location for developing data centers Location criteria for data center development Superiority of MFIP Inzai II’s location 1 Sufficient power capacity 1 Large amount of electricity is required to run high-performance computers 2 High quality communication Secure electric power 2 High quality communication environment environment necessary for data center operations Natural Communication disaster environment 3 Low natural disaster risk risk 3 Minimal natural disaster risk to ensure stable and safe data center operations Increasing shift to large-scale, high power density data centers Market data Particularly strong market growth for cloud-related services Gross floor area of high power density Cloud-related service revenues Trends in large-scale data center space (over 2,000㎡) data centers within the data center service market Annual average Annual average Annual average growth rate growth rate growth rate (2019~2024) (thousand ㎡) (2019~2024) (2019~2024) (thousand ㎡) (billion yen) % 7.7 18.4% % 1,000 1,500 18.6 800 Forecast Forecast Forecast 800 600 1,000 600 400 400 500 200 200 0 0 0 (year) (year) (year) 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Source: International Data Corporation Japan; “Outlook for Domestic Data Centers, Source: International Data Corporation Japan; “Outlook for Domestic Data Centers, Source: International Data Corporation Japan; “Outlook for Domestic Gross Floor Area and Power Capacity (2020-2024)” (March 2020) Gross Floor Area and Power Capacity (2020-2024)”(March 2020) Data Center Service Market (2020 – 2024)”, August 2020. 6 1-2 External Growth [3] Portfolio quality, stability improved significantly through external growth NAV per unit also continued to rise, enhancing unitholder value Medium-term target 300.0 billion yen External growth and properties defined in “Right of first look and preferential negotiation rights agreement”* virtually achieved End of July 31,2020 Properties acquired Properties to be acquired End of July 31,2021 th (8th fiscal Period) in the 9th fiscal period in the 10 fiscal period (10th fiscal period) (forecast) 18 properties/ 21 properties/ No. of properties/ 2 properties /280,000㎡ 1 property /27,000㎡ Total floor area* 950,000㎡ 1,260,000㎡ Asset size 205.0 billion 77.4 billion 15.15 billion 297.6 billion yen Adjusted forecast NOI yield / 5.2% / 3.5% 4.5% / 3.2% 4.7% / 3.0% 5.0% / 3.4% after depreciation* Average building age* 4.9 years 3.0 years 0.7 years 4.8 years Top 5 tenant ratio* 28.3% (logistics facilities only) 33.2% Appraisal value* 219.2 billion yen 318.2 billion yen (unrealized gain*) (19.4 billion yen) (27.4 billion yen) No. of properties defined in “Right of 10 properties/ 11 properties/ first look and preferential negotiation 1,180,000 rights agreement” /Total floor area* ㎡ 1,100,000 ㎡ Expansion of asset size and growth of NAV per unit Portfolio quality and stability substantially improved through continued expansion of asset size Enhanced unitholder value through continued growth in NAV per unit; external growth through acquisition of quality assets and accretive equity financing Asset size NAV per unit (billion yen) 389,825 +45.1% 297.6 Average annual (yen) +10.6% Average annual 300 growth rate since 375,000 growth rate since 205.0 listing 352,401 listing 200 + 34.6% + % 325,000 9.0 100 0 275,000 End of July 31,2020 March, 2021 End of July 31,2020 March, 2021 (End of 8th fiscal period) (Post-MFIP Inzai II acquisition) (End of 8th fiscal period) (Post-MFIP Inzai II acquisition) 7 * For further details, please refer to [Properties defined in “Right of first look and preferential negotiation rights agreement”], [Highlights] in the Notes on Matters Stated in this Document on p.53-54.
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