CRE Logistics REIT : Supplementary material for 5th public offering and new acquisition

Securities Code 3487

Supplementary material for 5th public offering and new acquisition

LogiSquare Osaka Katano(1)

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.

September 2, 2021 CRE REIT Advisers, Inc.

Disclaimer

This material is for informational purpose only, and is not intended to solicit, or recommend the purchase or sale of specific securities, financial instruments, or transactions.

This material is not a disclosure material based on the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, or the listing rules of the Tokyo Stock Exchange.

This material contains information on CRE Logistics REIT, Inc. (hereinafter referred to as the "CRE REIT"), as well as tables and data prepared by CRE REIT Advisers, Inc. (hereinafter referred to as the "Asset Manager") based on data and indicators published by third parties. It also includes statements regarding the Asset Manager's current analysis, judgement, and other views on these matters.

Given that the content of this material is unaudited, there are no guarantees provided with respect to its accuracy, completeness, fairness or reliability. In addition, anything other than the analysis and judgment of the Asset Manager and any other past or current facts indicates assumptions or judgments based on the information obtained by the Asset Manager at the time of preparation of this material, and descriptions of these future projections include known and unknown risks and uncertainties. As a result, the actual performance, operating results, and financial position of CRE REIT may differ from those forecasted by CRE REIT and the Asset Manager.

Figures may not correspond to those of other disclosed information due to differences in rounding.

All efforts have been made to ensure that the information included in this material is accurate, but errors may have occurred and may be corrected or modified without a prior notice.

CRE REIT and the Asset Manager are not in any way liable for the accuracy or completeness of any data or indicators used in this material based on disclosed from third parties.

This material includes statements regarding future policies of CRE REIT, but provide no guarantees of the future policies.

For convenience of preparation of charts and data by the Asset Manager, dates indicated in this material may not be business days.

The information contained herein may not be reproduced or presented in whole or in part to any other person in any manner, without the prior consent of CRE REIT and the Asset Manager.

Notes on each page are provided on the relevant page or in the notes section at the end of this document, unless otherwise indicated.

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

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Offering highlights

１． Continuous improvement of unitholder value

・・・ p.5

• This public offering qualifies as "green" financing that takes into consideration the environmental impact, with prospectuses delivered only electronically
• Increased unit price and market capitalization through the past four offerings and accompanying external growth and various measures, thereby improving liquidity of the investment units and expanding its investor base
• Since its listing in February 2018, CRE REIT steadily increases DPU and NAV per unit through the five public offerings

２． Enhancement of the quality of portfolio through the investments in LogiSquare

・・・ p.11

• CRE REIT acquires quality properties that have been developed by CRE and are conveniently close to locations frequented by consumers
• Enhance portfolio diversification, including with respect to location, through acquisition of an asset in the Kansai area

３． Clear growth strategy to continuously improve unitholder value

・・・ p.17

• We seek continuous distributions growth by leveraging our rich pipeline while considering acquisitions with cash on hand
• Leases expiring by June 30, 2022 were renewed smoothly
• New lenders, green loans and green bonds diversifies our funding options
• R&I upgraded our rating outlook to A- (positive), and JCR newly assigned us A (stable)
• Diversification of repayment periods and longer-term loans promotes stable financial management
• We have made progress in our ESG efforts. At the general meeting of unitholders in September 2021, the asset management fee structure will be changed to the more consistent one with the interests of the unitholders

４． Appendix	・・・ p.28
Please refer to notes on the front cover and page 6 onwards for the definitions of the terms appearing on this page
Copyright (C) 2021 CRE Logistics REIT, Inc. All Rights Reserved.	3

Summary of the Fifth Public Offering and the Acquisition of the Property

Acquisition of LogiSquare Osaka Katano, which is new and in a good location

Anticipated acquisition price

22,370 million yen

		Property age							Liabilities
		0.5 years					O-4 LogiSquare Osaka Katano
		Mileage to an interchange				Number of tenants
		approx. 0.8 ｋｍ				5
		Appraisal NOI yield				Implied cap rate (1)(2)
		4.4 ％					3.4 ％
Assets
Improve quality of portfolio through investment in LogiSquare
		The End of
			After acquisition of

Promote reduction of LTV, borrowing from new lenders and

long-term debt
Before the Anticipated			After the Anticipated
			Borrowings			Borrowings
	LTV		Forecast for June 30, 2022			Forecast for June 30, 2022
		44.8 %			44.3 %
	Average remaining term of		As of September 15, 2021			As of September 15, 2021
		(anticipated)			(anticipated)
	interest-bearing debt		3.6 years			3.7 years
	Number of lenders		13			16
	Increase in borrowings	10,400 million yen

Realize external growth that contributes to improvement in distributions per unit and NAV per unit

		the 10th FP		anticipated asset
		(Ended June 30, 2021)
		19 properties		20 properties
Number of properties
					Net
(Anticipated) acquisition price		112,316 million yen		134,686 million yen
					assets
Average appraisal NOI yield	4.8 %	4.7 %
Number of tenants	23	28
Average property age		4.4 years		3.8 years
Occupancy rate	100.0 %	100.0 %
Ratio of properties developed
100.0 %	100.0 %
by CRE

1. Please refer to notes on the front cover and page 6 onwards for the definitions of the terms and the calculation for the figure on this page

Distributions per unit

(including surplus distribution)

NAV per unit

Number of new investment units issued

Total issue value (estimate)

Form of offering

The End of the 10th	After the Fifth PO
FP (Ended June 30, 2021)
Forecast on stabilized	Forecast on stabilized
level after the Fourth PO	level after the Fifth PO
3,374 yen	3,547 yen （+ 5.1%）
	After the Fifth PO
143,278 yen	150,739 yen （+ 5.2%）

64,550 units

(12.9% of total issued and outstanding investment units)

13,232 million yen

Reg. S only

(The transaction will be documented by a Japanese language prospectus. English one will not be prepared.)

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

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