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

February17, 2022

CRE Logistics REIT, Inc.

Summary of Financial Results (Unaudited)

For the 11th Fiscal Period Ended December 31, 2021

(For the Reporting Period from July1, 2021 to December 31, 2021)

(Translated from the Japanese original)

Corporate Information

Code: 3487 Listing: Tokyo Stock Exchange

(URL: https://cre-reit.co.jp/en/)

Representative: Tsuyoshi Ito, Executive Director

Asset management company:	CRE REIT Advisers, Inc.
Representative:	Tsuyoshi Ito, President
Person of Contact:	Hirohisa Toda, Executive Officer, Head of Corporate Planning and General Affairs
Tel:	[phone]

Scheduled date to file securities report:				March 29, 2022
Scheduled date to commence payment of distributions:		March 22, 2022
Preparation of supplementary material on financial results:	Yes
Financial report presentation meeting:				Yes (for institutional investors and analysts)
		(Amounts truncated to the nearest million yen, except for the basic earnings per unit)
1. 11th Fiscal Period ended December 31, 2021 (July 1, 2021- December 31, 2021)
(1) Operating results				(Percentages represent changes from corresponding period of previous period)
	Operating revenues		Operating income			Ordinary income		Net income
Fiscal period ended	Million yen	%		Million yen		%		Million yen		%	Million yen		%
December 31, 2021	3,595	13.8			2,088		16.0		1,799		18.2	1,798		18.2
June 30, 2021	3,159	21.3			1,800		18.2		1,522		17.2	1,521		17.2
	Net income per unit			Return on			Ordinary income to	Ordinary income on
		unitholders' equity		total assets		operating revenues
Fiscal period ended		Yen					%				%			%
December 31, 2021		3,343					2.6				1.4			50.1
June 30, 2021		3,092					2.7				1.4			48.2

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

(Note 2) The Investment Corporation issued 64,550 new investment units on September 15, 2021. Net income per unit for the fiscal period ended December 31, 2021 is calculated by dividing net income by the weighted average number of investment units (538,038 units) based on the number of days during the period.

(2) Distributions

	Distributions	Total			Distributions	Total
	per unit	distributions	Surplus	Total surplus	per unit	distributions		Distributions to
	(excluding	(excluding	distributions	(including	(including	Payout ratio
	distributions	net assets ratio
	surplus	surplus	per unit	surplus	surplus
	distributions)	distributions)			distributions)	distributions)
Fiscal period ended	Yen	Million yen	Yen	Million yen	Yen	Million yen	%	%
December 31, 2021	3,186	1,799	338	190	3,524	1,990	100.0	2.5
June 30, 2021	3,042	1,521	356	178	3,398	1,699	100.0	2.5

(Note 1) The entire amount of total surplus distributions is the return of contributions that falls under the distribution associated with the investment decrease for tax purposes.

(Note 2) The percentage of decreased surplus as a result of surplus distributions (the return of contributions that falls under the distribution associated with the investment decrease for tax purposes) in the fiscal period ended June 30, 2021 and the fiscal period ended December 31, 2021 was 0.003, respectively. The calculation of the percentage of decreased surplus is based on Article 23, Paragraph 1, Item 4 of the Order for Enforcement of the Corporation Tax Act.

(Note 3) The payout ratio in the fiscal period ended June 30, 2021 and the fiscal period ended December 31, 2021 is calculated based on the following formula because the Investment Corporation issued new investment units.

Payout ratio = Total amount of distributions (excluding surplus distributions) ÷ Net income × 100

－ 1 －

(3) Financial position

	Total assets	Net assets	Unitholders' equity ratio	Net assets per unit
As of	Million yen	Million yen	%	Yen
December 31, 2021	140,743	75,334	53.5	133,406
June 30, 2021	117,525	62,088	52.8	124,138
(4) Cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of the fiscal period
Fiscal period ended	Million yen	Million yen	Million yen	Million yen
December 31, 2021	3,024	(22,338)	20,614	5,340
June 30, 2021	2,139	(20,380)	18,408	4,039

2. Forecast for the 12th Fiscal Period ending June 2022 (January 1, 2022-June 30, 2022) and the 13th Fiscal Period ending December

2022 (July 1, 2022-December 31, 2022)		(Percentages represent changes from corresponding period of previous period)
	Operating	Operating	Ordinary	Net income	Distributions	Distributions	Surplus
	per unit (including	per unit
	revenues	income	income		distributions
				surplus	(excluding surplus
										per unit
										distributions)	distributions)
Fiscal period ending	Million	%	Million	%	Million		%	Million	%	Yen	Yen	Yen
yen	yen	yen		yen
June 30, 2022	3,875	7.8	2,096	0.4	1,801		0.1	1,800	0.1	3,529	3,188	341
December 31, 2022	3,884	0.2	2,092	(0.2)	1,810		0.5	1,809	0.5	3,547	3,205	342

(Reference) Forecast net income per unit (Forecast net income/ Forecast number of investment units at the end of the fiscal period) for the 12th Fiscal Period ending June 2022 is 3,188 yen and forecast net income per unit for the 13th Fiscal Period ending December 2022 is 3,205 yen.

• Other
• 1. Changes in accounting policies, changes in accounting estimates and retrospective restatements
  2. 1. Changes in accounting policies associated with revision of accounting standards, etc.: Yes
     2. Changes in accounting policies associated with other than 1: None
     3. Changes in accounting estimates: None
     4. Restatements: None
  3. Total number of investment units issued and outstanding

1. Total number of investment units issued and outstanding at the end of the fiscal period (including treasury investment units)
2. Total number of treasury investment units at the end of the fiscal period

As of December	564,700	units	As of June 30,	500,150	units
31, 2021	2021
As of December	0	units	As of June 30,	0	units
31, 2021	2021

• Summary of financial results is not inside the scope of audit procedure by certified public accountants or audit corporations.
• Remarks on appropriate use of forecasts of performance and other special notes

Forward-looking statements presented in these financial results, including forecasts of performance, are based on information currently available to the Investment Corporation and on certain assumptions the Investment Corporation deems to be reasonable. As such, actual operating and other results may differ materially from these forecasts as a consequence of various factors. Moreover, the forecasts set forth herein should not be construed as a guarantee of distribution amounts.

Refer to the section on "Assumptions for Operating Forecasts for the 12th Fiscal Period ending June 2022 (January 1, 2022-June 30, 2022) and the 13th Fiscal Period ending December 2022 (July 1, 2022-December 31, 2022)" for details on the underlying assumptions for the forecasts above.

－ 2 －

Assumptions for Operating Forecasts for the 12th Fiscal Period ending June 2022 (January 1, 2022-June 30, 2022) and the 13th Fiscal Period ending December 2022 (July 1, 2022-December 31, 2022)

Item	Assumptions
Calculation period	- 12th Fiscal Period (Ending June 30, 2022): January 1, 2022-June 30, 2022 (181 days)
- 13th Fiscal Period (Ending December 31, 2022): July 1, 2022-December 31, 2022 (184 days)
	- The investment corporation possesses the trust beneficial interests in real estate in a total of 20 properties
	(hereinafter referred to as "assets currently held").The operating forecasts herein are based on the assumption
Assets under	that the investment corporation will continue to possess these properties until December 31, 2022, as well as
the assumption that there will be no fluctuations in the trust beneficial interests in real estate (including newly
management
acquired properties and the disposal of assets currently held).
	- However, there is a possibility that fluctuations in the portfolio will occur due to factors including the new
	acquisition of properties or the disposal of assets currently held.
	- Real estate lease business revenues are calculated based on leasing contracts that are effective as of the date
	of submission of these financial results and actual performance in the past. Even though the two lease
Operating revenues	contracts will expire during the fiscal period ending June 30, 2022, and one lease contract will expire during
the fiscal period ending December 31, 2022, we concluded new lease contracts with the tenants. All lease
	contracts will be concluded at a fixed rent.
	- The forecasts assume there are no delinquencies or default on rental payments by tenants.
	- Expenses of assets currently held other than depreciation that fall under the category of real estate leasing
	expenses, which is the investment corporation's main operating expenses, are calculated based on actual
	expenses., reflecting variables, including forecast costs (including taxes and public dues, property
	management fees, insurance expenses, repair expenses).
Operating expenses	- Property tax and city planning tax, etc. are estimated 388 million yen in the 12th fiscal period and 388 million
yen in the 13th fiscal period on assets currently held.
	- Depreciation is based on the straight-line method. Depreciation is forecast to be 642 million yen in the 12th
	fiscal period and 644 million yen in the 13th fiscal period.
	- Property management fees are expected to be 202 million yen in the 12th fiscal period and 205 million yen
	in the 13th fiscal period.
	- Non-operating expenses for the 12th fiscal period are expected to total 294million yen. Of this, it is estimated
	that 271 million yen is for interest expenses and other financial related costs, and 14 million yen is for
Non-operating	depreciation of investment unit issuance costs.
expenses	- Non-operating expenses for the 13th fiscal period are expected to total 281 million yen. Of this, it is estimated
	that 266 million yen is for interest expenses and other financial related costs, and 11 million yen is for
	depreciation of investment unit issuance costs.
	- The total interest-bearing debt at the end of each fiscal period is as follows: 61,869 million yen as of June 30,
	2022 and 61,869 million yen as of December 31, 2022.
	- In the fiscal period ending June 30, 2022, while long-term borrowings of 3,680 million yen matured on
	January 31, 2022, and the same amount was refinanced.
Interest-bearing debt	- In the fiscal period ending December 31, 2022, while long-term borrowings of 2,400 million yen will mature
	on July 29, 2022, it is assumed that the same amount will be refinanced.
	- The LTV is expected to be around 43.9% as of June 30, 2022, and around 44.0% as of December 31, 2022.
	The following equation was used to calculate LTV. The figure is rounded to the second decimal point.
	LTV = Interest-bearing debt / Total Assets x 100
	- The assumptions for these forecasts are based on a total number of investment units issued of 564,700, as of
	the submission of these financial results. The forecasts do not factor in any assumption of a change in the
	number of investment units through December 31, 2022 due to factors such as the issuance of new investment
Investment units	units.
	- The distributions per unit (excluding surplus distributions) and the surplus distributions per unit are calculated
	based on a total number of investment units issued of 564,700 for the fiscal period ending June 30, 2022 and
	the fiscal period ending December 31, 2022.
	- The distributions per unit (excluding surplus distributions) is calculated based on the assumption that
Distributions per unit	distributions are carried out in accordance with the policies for monetary distributions set forth in the
regulations of the investment corporation.
(excluding surplus
- There is a possibility that the amount of the distributions per unit (excluding surplus distributions) could
distributions)
change owing to various factors, including changes in rental income, or unexpected maintenance work due
	to a change in assets under management or a change in tenants.
	－ 3 －

	- The surplus distributions per unit is calculated in accordance with the policy stipulated in the operational
	guidelines-the regulations of the investment corporation and the internal regulations of the asset
	management company.
	- These assumptions do not include any specific possibility of a substantial deterioration in the economic
	climate, real estate market or the financial condition of the investment corporation.
	- While the investment corporation has a policy of implementing surplus distribution every term with an
	amount equivalent to 30% of depreciation as a benchmark, the investment corporation has decided to
	implement this policy flexibly to equalize distributions within the range equivalent to 30% of depreciation.
Distributions per unit	- Moreover, in the event that the distributions per unit is expected to temporarily fall below a certain level due
to dilution in the value of the investment unit or a considerable financial burden owing to the procurement of
of surplus profit
capital through the issuance of new investment units or other factors, the investment corporation may
	distribute continuous surplus profit plus a one-off distribution that exceeds the profit level in the period for
	the purpose of maintaining the ordinary level of the distributions per unit. However, total amount of the
	continuous surplus distribution and a one-off distribution shall not exceed the equivalent to 60% of total
	depreciation for the relevant business period.
	- In actuality, the amount of distributions exceeding profit (return of contributions) is likely to fluctuate due to
	changes in the economic climate, real estate market trends, asset portfolio, and financial position, and there
	is a possibility the investment corporation will not implement distributions (return of contributions) in surplus
	distributions for the period.
	- The forecasts were built based on the assumption that there will be no revisions to laws and ordinances, the
	tax system, accounting standards, listing regulations set forth by the Tokyo Stock Exchange, Inc., and the
Other	regulations stipulated by the Investment Trusts Association, Japan, that would have an impact on the forecasts
stated above.
	- The forecasts are also based on the assumption that there will be no unexpected major changes to general
	economic trends and the real estate market.

－ 4 －

3. Financial Statements

(1) Balance Sheet

				(Thousands of yen)
			As of June 30, 2021	As of December 31, 2021
	Assets
	Current assets
	Cash and deposits		1,728,060	2,738,067
	Cash and deposits in trust	3,356,893	3,930,134
	Operating accounts receivable		158,876	145,642
	Prepaid expenses	141,856	153,526
	Consumption taxes receivable		982,593	666,276
	Total current assets	6,368,281	7,633,647
	Non-current assets
	Property, plant and equipment
	Buildings in trust		58,837,546	67,620,215
	Accumulated depreciation	(2,760,123)	(3,352,910)
	Buildings in trust, net		56,077,422	64,267,304
	Structures in trust	2,922,640	3,163,201
	Accumulated depreciation		(106,699)	(129,400)
	Structures in trust, net	2,815,940	3,033,800
	Tools, furniture and fixtures in trust		3,322	3,322
	Accumulated depreciation	(453)	(740)
	Tools, furniture and fixtures in trust, net		2,868	2,582
	Land in trust	51,871,682	65,374,983
	Total property, plant and equipment		110,767,914	132,678,671
	Intangible assets
	Other		1,266	866
	Total intangible assets	1,266	866
	Investments and other assets
	Investment securities	10,500	10,500
	Long-term prepaid expenses		314,648	338,437
	Deferred tax assets	17	9
	Leasehold and guarantee deposits		10,000	10,000
	Total investments and other assets	335,166	358,947
	Total non-current assets		111,104,347	133,038,485
	Deferred assets
	Investment unit issuance expenses		41,235	45,381
	Investment corporation bond issuance costs	11,422	26,049
	Total deferred assets		52,657	71,431
	Total assets	117,525,286	140,743,564

－ 5 －