GLP J REIT : SUMMARY OF FINANCIAL RESULTS (REIT) For the 19th Fiscal Period Ended August 31,2021

GLP J-REIT (3281)

Financial Results for the fiscal period ended August 31, 2021

SUMMARY OF FINANCIAL RESULTS (REIT)

For the 19th Fiscal Period Ended August 31, 2021

< Under Japanese GAAP>

				October 13, 2021
Name of REIT Issuer:	GLP J-REIT	Stock Exchange Listing: TSE
Securities Code:	3281			URLhttps://www.glpjreit.com/
Representative:	(Name) Yoshiyuki Miura, (Title) Executive Director
Name of Asset Manager:	GLP Japan Advisors Inc.
Representative:	(Name) Yoshiyuki Miura, (Title) President
Contact:	(Name) Shinji Yagiba, (Title) CFO
	TEL: [phone]
Scheduled date to file securities report:	November 26, 2021
Scheduled date to commence distribution payments:	November 18, 2021
Supplementary materials for financial results:		・No (Japanese / English)
Yes
Holding of financial results briefing session:		・No (For institutional investors and analysts, in both Japanese and English)
Yes

(Amounts are rounded down to the nearest million yen)

1. Financial Results for the Fiscal Period Ended August 31, 2021 (From March 1, 2021 to August 31, 2021)

(1) Operating Results					[Percentages indicate period-on-period changes]
		Operating revenues	Operating income	Ordinary income	Net income
	Period ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	August 31, 2021	23,855	8.5	13,062	5.6	11,763	5.4	11,761	7.8
	February 28, 2021	21,978	10.5	12,367	13.7	11,156	15.1	10,914	12.6
		Net income		Return on		Ordinary income to	Ordinary income to
		per unit		unitholders' equity	total assets		operating revenues
	Period ended		Yen		%		%		%
	August 31, 2021		2,680		2.9		1.5		49.3
	February 28, 2021		2,631		3.0		1.6		50.8

(2) Distributions

	Distributions	Optimal payable distribution	Distributions	Payout	Distributions
	(excluding OPD*)	(OPD)	(including OPD)
	Per Unit	Total	Per Unit	Total	Per Unit	Total	ratio	to net assets
Period ended	Yen	Million yen	Yen	Million yen	Yen	Million yen	%	%
August 31, 2021	2,619	11,760	429	1,926	3,048	13,686	99.9	2.9
February 28, 2021	2,513	10,915	476	2,067	2,989	12,983	100.0	2.9

• "OPD" stands for "Optimal Payable Distribution" that means distributions in excess of retained earnings.

(Note 1) For the periods ended August 31, 2021 and February 28, 2021, payout ratio was calculated as follows since new investment units were issued during the period:

Payout ratio = Total distributions (excluding OPD) / Net income x 100 Payout ratio is rounded down to the first decimal place.

(Note 2) Payout ratio and distributions to net assets ratio were calculated on the basis of excluding OPD.

(Note 3) All of the amounts of OPD for the periods ended August 31, 2021 and February 28, 2021 are the refund of investment categorized as a distribution from in unitholders' capital for tax purposes. The OPD for the periods ended August 31, 2021 and February 28, 2021 includes a temporary OPD of 145 yen and 199 yen per unit, respectively. Please see "(iv) Overview of Financial Results and Cash Distributions" on page 4.

GLP J-REIT (3281)

Financial Results for the fiscal period ended August 31, 2021

(Note 4) Retained earnings decreased at a rate of 0.005 for the period ended August 31, 2021 and 0.006 for the period ended February 28, 2021, respectively, due to OPD (a refund of investment categorized as a distribution from unitholders' capital for tax purposes). These rates were calculated based on Article 23, Paragraph 1, Item 4 of the Order for Enforcement of the Corporation Tax Act.

(3) Financial Position

		Total assets	Net assets	Unitholders' equity to	Net assets per unit
		total assets
	Period ended	Million yen	Million yen	%	Yen
	August 31, 2021	785,480	415,543	52.9	92,541
	February 28, 2021	742,022	390,101	52.6	89,809
(4) Cash Flows
		Net cash provided by	Net cash provided by	Net cash provided by	Cash and cash
		(used in) operating	(used in) investing	(used in) financing	equivalents at the end
		activities	activities	activities	of the period
	Period ended	Million yen	Million yen	Million yen	Million yen
	August 31, 2021	21,503	(50,301)	30,520	25,904
	February 28, 2021	14,641	(97,829)	88,044	24,180

2. Earnings Forecast for the Fiscal Periods Ending February 28, 2022 (From September 1, 2021 to February 28, 2022) and August 31, 2022 (From March 1, 2022 to August 31, 2022)

										[Percentages indicate period-on-period changes]
			Operating	Operating	Ordinary	Net		Distributions	OPD per	Distributions
					per unit	per unit
			revenues	income	income	income		unit
				(excluding OPD)	(including OPD)
		Period ending	Million yen	%	Million yen	%	Million yen	%	Million yen	%		Yen	Yen	Yen
		February 28, 2022	23,332	(2.2)	12,347	(5.5)	11,025	(6.3)	11,023	(6.3)		2,454	294	2,748
		August 31, 2022	23,286	(0.2)	12,167	(1.5)	10,812	(1.9)	10,810	(1.9)		2,407	296	2,703
	(Reference) Estimated net income per unit: For the fiscal period ending February 28, 2022	2,454 yen
					For the fiscal period ending August 31, 2022	2,407 yen

(Note) For the period ended August 31, 2021, GLP J-REIT reported gain on sales of GLP Okegawa, which contributed to the operating results. The decrease in operating results for the period ending February 28, 2022 is due mainly to no such gain on sales of property and equipment.

• Other
• 1. Changes in accounting policies, changes in accounting estimates and retroactive restatement

(a)	Changes in accounting policies due to revisions to accounting standards	None
	and other regulations:
(b)	Changes in accounting policies due to other reasons:	None
(c)	Changes in accounting estimates:	None
(d)	Retroactive restatement:	None

(2) Number of investment units issued and outstanding

(a) Number of investment units issued and outstanding, including treasury units:

As of August 31, 2021	4,490,369	Units	As	of	February	28,	2021	4,343,664	Units
(b) Number of treasury units:
As of August 31, 2021	0	Units	As	of	February	28,	2021	0	Units

(Note) Please refer notes to "Per Unit Information" on page 31 for the number of investment units used as the basis for calculating the net income per unit.

GLP J-REIT (3281)

Financial Results for the fiscal period ended August 31, 2021

• The financial information on this report is not included in the scope of the external audit.
• Other special matters

The forward-looking statements in this material are based on the information currently available to us and certain assumptions we believe reasonable. Actual operating performance may differ substantially due to various factors. Furthermore, those statements do not guarantee the amounts of future distributions and distributions in excess of retained earnings. Please refer to "Assumptions Underlying Earnings Forecasts for the 20th Fiscal Period Ending February 28, 2022 (From September 1, 2021 to February 28, 2022) and the 21st Fiscal Period Ending August 31, 2022 (From March 1, 2022 to August 31, 2022)" on page 7 - 9 for assumptions regarding the forward-looking statements.

This is an English language translation of the original Japanese announcement of the financial statements ("Kessan Tanshin"). This translation is provided for information purpose only. Should there be any discrepancy between this translation and the Japanese original, the Japanese original shall prevail.

		GLP J-REIT (3281)
	Financial Results for the fiscal period ended August 31, 2021
Table of contents
1. Operating Conditions...........................................................................................................................................	2
(1)	Operating Conditions...............................................................................................................................	2
2. Financial Statements..........................................................................................................................................	10
(1)	Balance Sheets .......................................................................................................................................	10
(2)	Statements of Income ............................................................................................................................	12
(3)	Statements of Changes in Net Assets.....................................................................................................	13
(4)	Statements of Distributions....................................................................................................................	14
(5)	Statements of Cash Flows......................................................................................................................	17
(6)	Notes Concerning Going Concern Assumption.....................................................................................	18
(7)	Notes Concerning Significant Accounting Policies...............................................................................	18
(8)	Notes to Financial Statements................................................................................................................	19
(9)	Changes in Number of Investment Units Issued and Outstanding ........................................................	33
3. Reference Information .......................................................................................................................................	36
(1)	Price Information on Investment Assets ................................................................................................	36
(2)	Status of Capital Expenditure ................................................................................................................	47

1

GLP J-REIT (3281)

Financial Results for the fiscal period ended August 31, 2021

1. Operating Conditions

(1) Operating Conditions

[Overview of the Current Fiscal Period]

1. Brief Background of GLP J-REIT
   GLP J-REIT is a real estate investment corporation ("J-REIT") specializing in logistics facilities, and it primarily invests in modern logistics facilities. GLP J-REIT was founded in accordance with the Act on Investment Trusts and Investment Corporations (hereinafter the "Investment Trust Act") with GLP Japan Advisors Inc. as the founder. It had its units listed on the Real Estate Investment Trust Market of the Tokyo Stock Exchange on December 21, 2012 (securities code: 3281).
   Having the GLP Group (Note) as the sponsor group and investing in highly functional modern logistics facilities while taking advantage of the wealth of experience and management resources, GLP J-REIT aims to earn stable income and achieve steady growth in assets under management over the medium and long term. Since starting its operation as a listed J-REIT with 30 properties (total acquisition price of 208,731 million yen) in January 2013, GLP J-REIT has been steadily expanding its assets through the continuous acquisition of properties. As of the end of the current fiscal period, GLP J-REIT owns 86

properties (total acquisition price of 788,031 million yen).

(Note) The GLP Group consists of GLP Holdings Limited, the holding company of the Sponsor of GLP J-REIT, and its group companies.

(ii) Investment Environment and Business Performance

During the current fiscal period, the Japanese economy is expected to show positive growth due to factors such as the recovery of corporate capital spending, despite the continued sluggishness of consumer spending caused by the COVID-19 pandemic. As for the future outlook, although uncertainty remains due to concerns about the spread of variants, there are expectations that the economy will pick up with the progress of vaccinations and other factors.

In the logistics facilities leasing market, we believe demand remains strong, reflecting logistics industry business concerns such as labor shortage and supply chain optimization, in addition to a trend of new expansion, consolidation and integration of logistics facilities among e-commerce service and third-party logistics (3PL) companies. Under these circumstances, the balance of supply and demand for modern logistics facilities remains stable, as shown by the pre-leased ratio (Note 2) for large multi-tenant logistics facilities planned to be newly supplied in 2021, which is approximately 70% in the Tokyo metropolitan area and 90% in the Greater Osaka area as of the end of June 2021.

In the logistics real estate market, reflecting continuing monetary easing, steady demand for properties and the prospect of stable rental income, institutional investors such as pension funds and insurance companies remain eager to invest in the market, and their funds continue to flow in. As a result, capitalization rates continue to trend low while real estate prices stay high.

Under these circumstances, taking advantage of the strong demand for logistics properties, GLP J-REIT sold its trust beneficiary right of GLP Okegawa on May 31, 2021, in order to return the gain on sale to

2