CRE Logistics REIT : Financial Results Briefing for the 11th Fiscal Period Ended December 31, 2021

Securities Code 3487

Financial Results Briefing for the 11th Fiscal Period

Ended December 2021 (July 1, 2021 to December 31, 2021)

LogiSquare Osaka Katano

Located in a suitable logistics area in inland Osaka, near the boarder between Osaka and Kyoto Prefectures. Located approximately 0.8 km from the Katano Minami IC on the Daini-Keihan Road with excellent access to major roads. Located in an industrial area and can be operated 24 hours a day.

February 17, 2022 CRE REIT Advisers, Inc.

Contents

Contents

Glossary

1.	Financial Results and Forecasts	2
2.	Growth Strategies	12
3.	Characteristics of CRE Logistics REIT, Inc.	25
4.	Market Environment	36
5. Appendix	44

Term	Definition
Appraisal value	The appraisal value or an investigated value as of the end of the period is stated based on the
Certificate of Incorporation of the Investment Corporation and the Regulation on Accountings of
	Investment Corporations (Cabinet Office Order No.47 of 2006 including subsequent revisions)
Unrealized gains	(Appraisal value) - (Book value) as of the end of the period
LTV	(Outstanding balance of interest-bearing debt) / (Total Assets)
LTV based on	(Outstanding balance of interest-bearing debt) / (Total assets + Unrealized gains)
appraisal value
NAV	Net assets + Unrealized gains - Total amount of distributions
NAV per unit	(Net assets + Unrealized gains - Total amount of distributions) / Total number of investment units
outstanding
Acquisition price	Acquisition price is the purchase agreement price for each of the trust beneficiary rights stated in
the sales agreement and does not include national and local consumption taxes or sales
	commission and other expenses that are incurred in the acquisition.
NOI yield	Ratio of actual NOI of the portfolio assets to their acquisition price
Appraisal NOI yield	Ratio of the appraisal NOI of each current asset (based on the relevant real estate appraisal report
with valuation dated as of December 31, 2021) to the acquisition price of each current asset
CRE	CRE, INC.
CRE Group	CRE, INC. and its subsidiaries and affiliates

• This material is not a disclosure material under the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations or the Securities Listing Regulations of the Tokyo Stock Exchange.
• As of the date of this material, the auditing procedures for financial statements pursuant to the Financial Instruments and Exchange Act have not been completed.
• The purpose of this material is to provide information and not to offer, solicit the purchase of or sell certain products. When you make an investment, please do so at your own discretion and risk.
• The market price of investment securities of the Investment Corporation will be affected by the demand and supply of investors at an exchange and will fluctuate under the influence of the interest rate environment, economic conditions, the real estate market conditions and other factors surrounding the market. Accordingly, the investment securities may possibly not be sold at a higher price than the acquisition price, and investors could suffer a loss as a result.
• The investment securities of the Investment Corporation need to be purchased and sold through a securities company with which you undertake business. At that time, please read the contents of the document provided before concluding the contract (or a prospectus) carefully.
• While this material contains forward-looking statements and results forecasts, these statements do not guarantee the future results and financial conditions of the Investment Corporation.
• Unless otherwise noted, in this material, monetary amounts are rounded down to the nearest indicated unit, and areas, numbers of years and ratios are rounded off to the nearest indicated unit. Any average or ratio pertaining to assets is the weighted average based on the acquisition price, unless otherwise noted.

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

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1. Financial Results and Forecasts

LogiSquare Osaka Katano
Good location to secure employment, within walking distance of Hoshida Station, a rapid train stop on the JR Gakkentoshi Line, which is about 1 km away (about a 13-minute walk), and a 2-minute walk	2
from the Hoshidakita 5-chome bus stop

1. Financial Results and Forecasts

Summary

External

Growth

Internal

Growth

Financial

Management

ESG

Other

• Due to the 5th public offering in September 2021, the distribution per unit for the fiscal period ended
  December 2021 resulted at 3,524 yen, the highest ever for CRE REIT.
• All tenant whose contract expire in the fiscal period ending December 2022 and June 2023 renewed

with rent increase.

• All tenants whose contracts expire by December 2023 have been renewed.
• Continuing to reduce through each public offering, LTV has reached to 44.0%, the lowest ever for CRE REIT.
• Lenders increased from 12 (end of June 2021) to 16 (end of January 2022), and the diversification of lenders

has progressed.

• Newly issued 10-yearGreen bond. (November 2021)
• Newly acquired A (stable) rating from JCR. (August 2021)
• Received 3 Stars and Green Star in the GRESB Real Estate Assessment, and the highest A Level for the GRESB Public Disclosure.
• Over 80% of the properties produce solar power, and 80% of the total consumption is covered with renewable energy (from April to September 2021).
• Green finance for both equity and debt in the 5th public offering.

Delivered all prospectuses electronically.

• Included in the FTSE EPRA Nareit Global Real Estate Index Series (December 2021)

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

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1. Financial Results and Forecasts

Summary of the Fifth Public Offering in September 2021

• Financed through green equity offerings and green loans.

New Initiatives

• Allocated all new investment units only to domestic and overseas institutional investors.

• Delivered all prospectuses electronically in consideration of the environment.

Increase in the ratio of institutional investors	Market capitalization increase and investment
	unit liquidity improve

		12.3%			9.4%	Individuals/others	8,000		Trading turnover (left axis)			Payment	150,000
						Market capitalization (right axis)
		6.2%			5.3%
									5th PO
				2.5%							120,000
		3.1%				Other domestic	6,000
institutional		institutional
		corporations
					58.2%	Securities companies							90,000
	ofRatio	61.6%		ofRatio	4,000
4%	8%
.78			82.			Financial institutions							60,000
investors	16.8%	investors	24.6%
	2,000						30,000
						Overseas investors
		10th FP			11th FP		0	2020	7/1	2021	7/16	2022	0
					(Million yen)	1/1	1/6	1/28	(Million yen)
		(2021/6)			(2021/12)

Number of new investment units issued

Total issue value

Increase in borrowings

Form of offering

Summary of the fifth public offering and the acquisition of the property

64,550 units	O‐4 LogiSquare Osaka Katano			22,370 million yen
Acquisition price
(12.9% of total issued and outstanding
investment units)
13,147 million yen		Appraisal NOI yield	4.4 %
9,500 million yen		Property age		1.0 years
Reg. S only		Distance to an
(The transaction will be documented by a			0.8 km
Japanese language prospectus. English one will		interchange
not be prepared.)

Copyright (C) 2022 CRE Logistics REIT, Inc. All Rights Reserved.

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