Japan Logistics Fund : REIT Financial Report for the six-month period ended January 31, 2024 (The 37th Period)

REIT Financial Report for the six-month period ended January 31, 2024

(The 37th Period)

		March 15, 2024
Name of REIT issuer:	Japan Logistics Fund, Inc.	Stock exchange listing: Tokyo Stock Exchange
Security code:	8967	URL:https://8967.jp/en/
Representative:	Seiichi Suzuki, Executive Director
Name of asset management company:	Mitsui & Co., Logistics Partners Ltd.
Representative:	Seiichi Suzuki, President & CEO
Contact:	Shintaro Miyata, Finance & IR Dept.
	TEL: [phone]

Scheduled date for submission of Securities Report:	April 26, 2024
Scheduled date for commencing dividend payments:	April 8, 2024
IR Material:	Will be posted on the website
IR Meeting:	Will be held for institutional investors and security analysts
		(Figures are rounded down to the nearest million yen)

1．Performance for the six-month period ended January 31, 2024 (The 37th Period from August 1, 2023 to January 31, 2024)

(1) Operating Results														( % represents change from the previous period)
				Operating Revenue	Operating Income			Ordinary Income	Net Income
	Period ended	Millions of		%	Millions of			%			Millions of		%	Millions of		%
	January 31, 2024	10,147		0.1			5,301			1.2		4,862		1.0		4,861		1.0
	July 31, 2023	10,139		-0.2			5,238			-1.6		4,811		-1.6		4,810		-1.6
				Net Income per Unit	Net Income to				Ordinary Income to	Ordinary Income to
					Net Assets					Total Assets			Operating Revenue
	Period ended			Yen							%		%				%
	January 31, 2024	5,209							3.4				1.8				47.9
	July 31, 2023	5,150							3.4			1.8				47.5
(2) Dividends
				Dividends per	Total Dividends	Distributions		Total
				Unit (excluding		(excluding
						in excess of		Distributions in			Payout	Distributions
				Distributions in	Distributions in
				earnings per		excess of			Ratio	to Net Assets
				excess of		excess of
									Unit		earnings
				earnings)		earnings)
	Period ended	Yen	Millions of yen					Yen	Millions of yen			%			%
	January 31, 2024	5,223			4,861				-		-			99.9			3.4
	July 31, 2023	5,151			4,811				-		-			100.0			3.4
	(Note)	Payout Ratio = Total Dividends/Net Income x 100 (figures are rounded down to the nearest decimal place)
(3) Financial Position
				Total Assets			Net Assets			Net Assets to Total Assets	Net Assets per Unit
	Period ended		Millions of yen		Millions of yen				%			Yen
	January 31, 2024		273,680					142,401					52.0				153,004
	July 31, 2023		274,933					143,294					52.1				153,419
(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 End of
				Activities					Activities						Activities				Period
	Period ended	Millions of yen		Millions of yen			Millions of yen	Millions of yen
	January 31, 2024	6,600					-518				-5,746				15,089
	July 31, 2023	7,405					-565			-4,889			14,753

1

2．Forecasts for the six-month period ending July 2024 (the 38th Period from February 1, 2024 to July 31, 2024) and the six- month period ending January 2025 (the 39th Period from August 1, 2024 to January 31, 2025)

(% represents change from the previous period)

Dividends

per Unit

Distributions

Operating

Operating

Ordinary

Net

(excluding

in Excess of

Revenue

Income

Income

Income

distribution

Earnings per

s in excess

Unit

of earnings)

Period ending

Millions

%

Millions

%

Millions

%

Millions

%

Yen

Yen

of yen

of yen

of yen

of yen

July 31, 2024

10,758

6.0

5,743

8.3

5,309

9.2

5,308

9.2

5,300

-

January 31, 2025

10,231

-4.9

5,267

-8.3

4,830

-9.0

4,829

-9.0

5,300

-

(Reference) Forecast for net income per unit

July 31, 2024:

5,703 yen

January 31, 2025:

5,188 yen

(Note 1)

Dividends per Unit for the period ending July 31, 2024 is based on the assumption that 376 million yen will be retained from

unappropriated retained earnings of 5,308 million yen for the period by utilizing the advanced depreciation method, etc. stipulated

in the Act on Special Measures Concerning Taxation.

(Note 2)

Dividends per Unit for the period ending January 31, 2025 is based on the assumption that unappropriated retained earnings of

4,829 million yen for the period plus a portion of internal reserves (104 million yen) will be reversed as a source of payment.

* Other

1. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections

(i)	Changes in accounting policies due to revisions to accounting standards	None
(ii)	Changes in accounting policies other than (i)	None
(iii) Changes in accounting estimates	None
(iv) Restatement of prior period financial statements after error corrections	None

(2) Number of investment units issued and outstanding

(i) Number of investment units (including treasury investment units) issued and outstanding at the end of each period

January 31, 2024:	930,700 units	July 31, 2023:	934,000 units
(ii) Number of treasury investment units issued and outstanding at end of period
January 31, 2024:	0 unit	July 31, 2023:	0 unit

(Note) For the number of investment units serving as the basis of calculation of net income per unit, please refer to "Per Unit Information" on page28.

• This Financial Report is outside the scope of audit by a certified public accountant or an audit corporation.
• Remarks:

(Note to forward-looking statements)

This document contains forecasts and other forward-looking statements based on the information currently available and on certain assumptions judged as rational by Japan Logistics Fund, Inc. (hereafter referred to as "JLF"), and the actual operating results, etc. may differ significantly from that anticipated by JLF due to various factors. Moreover, the forecasts are not intended to guarantee any amount of dividend distribution and distribution in excess of earnings. For notes regarding assumptions underlying these forecasts, please refer to "1. Management Discussions and Analysis (1) Asset Management Status (ii) Outlook for the Next Six-month Period D. Forecasts" on page 5.

2

Table of Contents

1. Management Discussions and Analysis …………………………………………………… 4

1. Asset Management Status …………………………………………………………………. 4

1. Summary of Results for the six-month period ended January 31, 2024 (The 37th Period) … 4

(ii) Outlook for the Next Six-month Period …………….….….………………………….. 5

1. Investment risks …………………………………………………………………………. 11

2. Financial Statements ………………………………………………………………………. 12

1. Balance Sheet …………………………………………………………………………… 12

(2) Statement of Income and Retained Earnings …………………………………………….	14
(3) Statement of Changes in Net Assets ……………………………………………………..	15

1. Distribution Information …………………………………………………………………... 17
2. Statement of Cash Flows ………………………………………………………………… 18
3. Notes on Assumption of Going Concern ………………………………………………….. 19
4. Summary of Significant Accounting Policies ……………………………………………... 19
5. Notes to Financial Statements ……………………………………………………………... 20
6. Changes in the total number of investment units issued and outstanding…………………. 29

3. Reference Information ……………………………………………………………………... 31

1. Asset composition of JLF ………………………………………………………………….. 31

(2) Investment Securities ………………………………………………………………………	32
(i) Major investment securities	…………………………………………………………….	32
(ii) List of portfolio properties	……………………………………………………………..	33
(iii) Diversification of portfolio	……………………………………………………………	39
(iv) Performance of portfolio properties …………………………………………………...	40
(3) Capital expenditure for assets under management …………………………………………	52
(i) Scheduled capital expenditure …………………………………………………………	52
(ii) Capital expenditure during the six-month period………...………………………………	52
(iii) Reserve for long-term repair plan (reserve for repairs) ……………………………….	52
(4) Overview of tenants and major real estate and other properties …………………………	53

3

Japan Logistics Fund, Inc. (8967) Financial Report for the six-month period ended January 31, 2024 (The 37th Period)

1. Management Discussions and Analysis

1. Asset Management Status

1. Summary of Results for the six-month period ended January 31, 2024 (The 37th Period)
2. 1. Background of JLF
      JLF is the first J- REIT dedicated to "logistics properties" with real estate and other assets used for logistic facilities primarily in the Tokyo Metropolitan, Osaka, Nagoya and Fukuoka areas as investment targets. Based on the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951; including revisions enforced thereafter) (hereinafter, "the Investment TrustAct"), JLF was founded on February 22, 2005 with Mitsui & Co., Logistics Partners Ltd. as the founding planner, and was listed on the REIT section of the Tokyo Stock Exchange, Inc. (hereinafter, "Tokyo Stock Exchange") on May 9 of the same year (security code: 8967).
      As of January 31, 2024 (the end of The 37th Period), JLF owns 52 properties under management with a total acquisition price of 290,590 million yen and total assets of 273,680 million yen.
   2. Investment Environment and Management Performance
      In the six-month period under review, Japan's economy recovered modestly. Exports and industrial production held steady in the face of slowing economic recoveries overseas. Corporate earnings improved, thanks to progress in raising prices, a recovery in the flow of people driven by economic recovery, and a rebound in automotive production as supply constraints eased. These factors drove strong demand for capital goods related to digitalization and automation as capital expenditures gained momentum. Consumer prices (excluding fresh foods) grew in the low 2% range compared to last year, driven by the lingering effects of price increases to cover higher import prices and a moderate increase in service prices. Looking at the financial environment, the Bank of Japan continued flexible operations on short- and long-term interest rates (yield curve control) while the rise in long-term interest rates in Japan paused. Meanwhile, the TSE REIT index fluctuated given uncertainties in the outlook for monetary policy.
      In the logistics leasing market, demand driven mainly by logistics companies was confirmed in the Tokyo MetropolitanArea.Although demand has softened somewhat in the outskirts along the Metropolitan Central Expressway, there has been rent growth in properties in good locations with high specifications and submarkets with limited vacancy. In Osaka, demand was driven by logistics companies as well as manufacturers looking to consolidate space and improve logistics. In Fukuoka, logistics companies handling general consumer goods such as food products and sundries drove demand for new and additional space. In both markets, pre-leasing in buildings coming online by December 2024 look strong. In Nagoya, the rise in new supply catalyzed demand from automotive, machinery and other segments of the manufacturing industry and led to record-high levels of new demand. In other parts of Japan, strong demand outstripped new supply, driven by demand to newly occupy or consolidate space for producing or storing semiconductors and general consumer goods and to establish a footprint outside Tokyo to comply with stricter environmental and labor-force requirements.
      Amid this environment, JLF continues to strive to achieve stability and sustainable growth in DPU and NAVPU. We made progress in securing an external growth pipeline that is mindful of our capital cost by leveraging our know-how related to logistics redevelopment from our track record in Own Book Redevelopment (OBR) (Note 1) to pursue cooperative development projects with

business partners (Note 2). We also continue to achieve strong internal growth, signing multiple lease renewals at higher rent prices.

(Note 1)	"OBR" (Own Book Redevelopment) is the redevelopment of properties owned by JLF itself.
	"Redevelopment" refers to the act of JLF building a new building on land that JLF owns after the existing building has been demolished. JLF
	collaborates with players such as construction companies, who build the new building on land JLF owns. After the building is complete, JLF
	acquires said building at a timing of its discretion. The same applies hereinafter.
(Note 2)	"Cooperative developments with business partners" refers to initiatives where JLF is involved from the initial phases of the development of a
	logistics facility and thereby aims to acquire the property at a discounted price compared to bidding in the real estate acquisition market.

C. Overview of Financial Strategy

During the six-month period under review, JLF refinanced 1,000 million yen of long-term borrowings that matured in September 2023, 2,000 million yen in long-term loans that matured in November 2023, and 6,000 million yen in long-term loans that matured in December 2023. Through these efforts, JLF has increased its resistance to rising interest rate fluctuations by fixing interest rates and diversifying repayment dates and has also reduced funding costs and diversified its sources of funding.

Furthermore, during the six-month period under review, based on the judgment that JLF's investment unit price was undervalued compared to NAVPU, in November 2023 we decided to implement an investment unit buyback program to improve capital cost and

4

Japan Logistics Fund, Inc. (8967) Financial Report for the six-month period ended January 31, 2024 (The 37th Period)

increase unitholder value over the medium to long term. The investment unit buyback program was executed from November through January 2024 under a purchase agreement entered into with a securities brokerage, where the broker purchased shares from the market on the Tokyo Stock Exchange. All investment units acquired through the buyback program were canceled in January 2024. A total of 3,300 investment units (equivalent to 0.35% of the total number of investment units issued and outstanding before the acquisition and cancellation) were acquired and canceled through the buyback program during the six-month period under review for a total acquisition amount of 936 million yen.

As a result, as of the end of the period under review, total interest-bearing liabilities stood at 119,700 million yen, and LTV (loan to value) was 43.7% based on total assets (Note1) and 29.1% based on appraisal value (Note2), maintaining stable financial operations.

(Note 1)	Total assets-based LTV (%) = Interest-bearing debt / total assets x 100 (figures are rounded off to one decimal place)
(Note 2)	Appraisal value-based LTV (%) = Interest-bearing debt / appraisal value at the end of the six-month period x 100 (figures are rounded off to one
	decimal place)

Credit rating of JLF as of July 31, 2023

	Credit Rating Agency			Rating
			Issuer rating	AA-
			(Outlook: Stable)
	Rating and Investment Information,			#2nd unsecured investment corporation bonds
	Inc. (R&I)		Long-term bond rating	#3rd unsecured investment corporation bonds
			#5th unsecured investment corporation bonds
				AA-
			Long-term Issuer rating	AA
			(Outlook: Stable)
	Japan Credit Rating Agency, Ltd.			#6th unsecured investment corporation bonds
			AA
	(JCR)
		Bond rating	#7th unsecured investment corporation bonds
				(Green Bonds)
				AA

D. Performance and Distributions

As a result of the above, JLF posted operating revenue of 10,147 million yen, operating income of 5,301 million yen, ordinary income of 4,862 million yen and net income of 4,861 million yen.

Distributions are subject to special taxation provisions (Special Taxation Measures Law (Act No. 26 of 1957,including subsequent amendments, hereinafter referred to as "Special Taxation Measures Law"), JLF decided to distribute the entire amount of unappropriated retained earnings for the fiscal period, excluding fractions of less than one yen per unit, in an attempt to make the maximum amount of profit distribution deductible for tax purposes, resulting in a distribution per unit of 5,223 yen.

(ii) Outlook for the Next Six-month Period A. Recognition of the Environment

For some time to come, the Japanese economy is expected to undergo downward pressure from the slowing recoveries in economies overseas. Nevertheless, pent-up demand is expected to surface, and a moderate recovery should continue. Thereafter, a positive cycle of income to expenditures should strengthen and lead to growth outstripping the potential growth rate. The main scenario is for inflation rates in countries to gradually decline while economies around the globe continue to grow, albeit with some disparity by nation or region. That said, the risk remains that wage growth could lead to sustained inflation mainly in developed nations. It remains prudent to keep a watchful eye on increasing uncertainties about the impact from the rapid rate hikes implemented on financial and foreign-exchange markets as well as economies and the prices of goods.

In the logistics leasing market, new supply should settle down to historical average levels in the Tokyo Metropolitan Area in 2024 and 2025. Nevertheless, absorption of vacancies in the outskirts of Tokyo may take time, and the slack in supply and demand is expected to remain for some time. Meanwhile, there will continue to be significant amounts of supply coming online in Osaka, Nagoya, and Fukuoka, but vacancy rates are expected to stabilize near or fall from 2023 levels, due to efforts in the logistics industry to comply with stricter environmental and labor-force requirements and manufacturers bolstering supply chains.

Acquisition yields in the logistics acquisition market should remain compressed, given the relatively large yield gap compared to

5

Japan Logistics Fund, Inc. (8967) Financial Report for the six-month period ended January 31, 2024 (The 37th Period)

global markets and investor demand for the defensive nature of logistics cash flows.

Amid this environment, JLF announced its Develop the Value strategy in March 2022. The strategy aims to achieve further stability and growth in DPU and NAVPU through the evolution and deeper development of our various operational strategies, with a target DPU between 5,600 and 5,700 yen.

Moving forward, we will continue to mitigate risk assuming a variety of business environments, maintain stability, and leverage our unique competitive edge to generate growth opportunities and pursue an increase in unitholder value.

B. Future Asset Management Policies and Issues to be Addressed

In such an investment environment, JLF will pursue asset management aimed at achieving stable earnings over the medium to long term based on the following policies.

1. Operational management of portfolio properties

• Leasing management

When renewing leases, we strive to stabilize and grow revenues. We advance long-term leases to stabilize revenues and conduct rent negotiations with an eye on the market environment and tenant circumstances to grow revenues. When a tenant decides to move out, JLF will perform leasing activities based on this policy so that leases are maintained without any discontinuity and revenues are secured by leveraging its sponsor network, intermediary companies well versed in logistics properties and in tenant information for respective regions, as well as the network of the asset management company.

The properties currently held by JLF have an average leasing period of 4.3 years when calculated on a weighted average basis using annual rent, indicating that JLF will continue to earn stable income.

• Strengthening of tenant relations
  JLF will promote the improvement of the overall satisfaction level of tenants by maintaining close contact with existing tenants. Specifically, JLF responds to tenant's needs for expanding rental space and improving the property conditions of existing logistics facilities, making functional improvements in line with the needs of tenants and the industry and implementing renewals.
• Appropriate property maintenance and additional investment
  JLF conducts repairs and renovations of properties owned by keeping related costs at a certain level. In addition, JLF strives to maintain an optimal level of maintenance management of its properties by selecting appropriate property management companies that can provide efficient management in line with the characteristics of each property, improving the management quality of the asset management company, and standardizing various procedures.
  Furthermore, JLF considers OBR , disposition, and asset reshuffle if necessary, taking into consideration tenant requests, the leasing needs of facilities, floor area ratios, and other factors in determining portfolio properties that have locational advantages in the leasing market and those that can gain higher competitiveness through building/facility renewal while identifying properties that no longer offer economic benefits due to the increased maintenance cost burden caused by deterioration over time.

1. Acquisition of new properties

• Sourcing of property information
  Unlike other asset types, logistics properties have limited transaction volumes in the market. Therefore, JLF believes that collecting a broad range of information and making precise investment decisions based on the information gathered lead to achieve high competitiveness. In order to avoid unnecessary price competition, JLF will work to obtain early access to property information and promote negotiated transactions by leveraging the extensive networks of sponsors and the information sourcing channels of the asset management company.
• Specifications of properties for acquisition
  When acquiring properties, JLF will make investment decisions with a focus on the location and versatility of properties which are essential factors in pursuing stable and long-term management of logistics properties. As a general rule, JLF avoids acquiring, in particular, properties with unique structural and facility features that suit only certain types of tenants in certain industries. Rather, JLF's most important criterion for making investment decisions is versatility of specifications that can satisfy broad

logistical demand.

6

Japan Logistics Fund, Inc. (8967) Financial Report for the six-month period ended January 31, 2024 (The 37th Period)

• Diversification of portfolio

To minimize fluctuations in revenue arising from factors such as a tenant's request to lower rent or a tenant moving out of a property, JLF acquires properties that will help reduce risk of over-concentration of tenants by avoiding excessive dependency on single tenant or industry of tenants and diversifying lease period expirations.

1. 1. Financial strategy
   • JLF sets its highest priority on the stability and growth of dividends per unit while making sure to maintain a conservative interest- bearing debt ratio in pursuing financial activities, including raising funds through bank borrowings and increasing capital through public offerings. In public offerings, the policy is to consider the growth of unitholder value, including the growth of distributions per unit and NAV per unit. When pursuing interest-bearing debt financing, JLF will diversify funding sources and repayment due dates. Furthermore, with regard to tenant leasehold and security deposits, JLF will use such deposits to partially fund property acquisitions to exercise efficient cash management.
     In addition, JLF will consider the buyback and cancellation of its own investment units as required as part of its capital policy in order to improve capital efficiency and the return to unitholders.
2. Significant Subsequent Events

JLF has decided the disposition of the following asset on March 15, 2024.

[M-14 Urayasu Logistics Center II]

Asset disposed	Real estate
Planned disposition price	2,060 million yen
Date of contracts	March 15, 2024
Planned date of delivery	March 27, 2024
Buyer	Not disclosed (Note)
Effect on profit and loss	In the six-month period ending July 31, 2024 (February 1, 2024 to July 31, 2024), JLF plans to
	record a gain on sales of real estate in the amount of 682 million yen, of which 376 million yen
	will be reserved in the reserve for reduction entry.

(Note ) The buyer is a domestic investment corporation that remains undisclosed because consent has not been obtained from the buyer. The buyer is not an interested

party or the like under the Investment Trust Act.

7

Japan Logistics Fund, Inc. (8967) Financial Report for the six-month period ended January 31, 2024 (The 37th Period)

[Reference Information]

JLF borrowed the following borrowings after the end of the period up until the date of this report.

	Development Bank of		Nippon Life Insurance		Mitsui Sumitomo
Lender		Company		Insurance
Japan Inc.
		（Green Loan）		Company, Limited
Amount borrowed	2,000 million yen		2,500 million yen		1,000 million yen
Interest rate	1.39250%		1.23000 %		0.83625 %
Date of borrowing			February 29, 2024
Repayment date	February 28, 2034		August 31, 2033		February 28, 2029
Borrowing method/security			Unsecured/non-guaranteed
Repayment method		Lump-sum repayment on due date
Use of funds			To pay existing loans
			Misato Logistics Center
Assets to be appropriated	-		Fukuoka Kashiihama		-
			Logistics Center

JLF has decided the acquisition of the following asset on March 15, 2024.

[O-6 Ishikari Logistics Center]

Asset acquired	Real estate trust beneficiary right (quasi-co-ownership interest 55%)
Acquisition price	1,311 million yen
Acquisition timing	March 29, 2024
Location		2-782-6,Shinko-nishi, Ishikari City, Hokkaido, and others
Asset type		Warehouse
Site		28,817.47 m2 (Note)
Gross floor area	21,844.93 m2 (Note)
Structure		4-story reinforced concrete structure with a flat-topped roof, and others
Built in:		March 3, 1992 and others
Form of ownership	Land: ownership rights	Building: ownership rights
(Note)	Information provided for 100% of the Property as a whole

8

Japan Logistics Fund, Inc. (8967) Financial Report for the six-month period ended January 31, 2024 (The 37th Period)

D. Forecasts

Forecasts for the six-month period ending July 2024 (from February 1, 2024 to July 31, 2024) and the six-month period ending January 2025 (from August 1, 2024 to January 31, 2025) are as follows. Please refer to "Assumptions Underlying the Forecasts for the six- month period ending July 31, 2024 and the six-month period ending January 31, 2025" for the assumptions underlying these forecasts.

(% represents change from the previous period)

Dividends

per Unit

Distributions

Operating

Operating

Ordinary

Net

(excluding

in Excess of

Revenue

Income

Income

Income

distributions

Earnings per

in excess of

Unit

earnings)

Period

Millions

%

Millions

%

Millions

%

Millions

%

Yen

Yen

ended

of yen

of yen

of yen

of yen

July 31,

10,758

6.0

5,743

8.3

5,309

9.2

5,308

9.2

5,300

-

2024

January 31,

10,231

-4.9

5,267

-8.3

4,830

-9.0

4,829

-9.0

5,300

-

2025

(Note1)

The figures above were computed under certain assumptions, and the actual net income, dividends, etc. may differ depending on various factors. In

addition, the forecasts are not intended to guarantee any amount of dividends per unit.

(Note2)

Dividends per Unit for the period ending July 31, 2024 is based on the assumption that 376 million yen will be retained from unappropriated retained

earnings of 5,308 million yen for the period by utilizing the advanced depreciation method, etc. stipulated in the Act on Special Measures Concerning

Taxation.

(Note3)

Dividends per Unit for the period ending January 31, 2025 is based on the assumption that unappropriated retained earnings of 4,829 million yen for

the period plus a portion of internal reserves (104 million yen) will be reversed as a source of payment.

9

Japan Logistics Fund, Inc. (8967) Financial Report for the six-month period ended January 31, 2024 (The 37th Period)

Assumptions Underlying the Forecasts for the six-month period ending July 31, 2024 and the six-month period ending January 31, 2025

	Item			Assumptions
	Calculation period		・ For the six-month period ending July 31, 2024: February 1, 2024 to July 31, 2024
		・ For the six-month period ending January 31, 2025: August 1, 2024 to January 31, 2025
			・ From the 52 properties owned by JLF as of the publication of this document, it is assumed that JLF will dispose
			Urayasu Chidori Logistics Center II (planned disposition price: 2,060 million yen) on March 27, 2024 and
			acquire Ishikari Logistics Center (co-ownership interest: 55%) (planned acquisition price: 1,311 million yen) on
			March 29, 2024, and that no other additional properties will be acquired (including the acquisition of Amagasaki
			Logistics Center, for which a trust beneficiary right purchase agreement is executed) or disposed until January
			31, 2025. The number of properties owned at the end of the six-month period ending July 31, 2024 and January
	Properties owned		31, 2025 is assumed to be 52.
			・ The trust beneficiary rights purchase agreement associated with the acquisition of the Amagasaki Logistics
			Center qualifies as a forward commitment as stipulated by the Comprehensive Guidelines for the Supervision of
			Financial Instruments Operators, etc., set forth by the Financial Services Agency. The scheduled date of
			acquisition of the property has not yet been determined, but it is scheduled to be the date designated by JLF by
			April 2, 2026.
			・ There may be fluctuations, mainly due to the transfer of assets under management.
	Total number of		・The forecasts assume 930,700 units outstanding, the total number of investment units issued and outstanding as
	investment units		of the publication of this document, they are assumed that there will be no issuance of new investment units and
	issued		no buyback or cancellation of owned investment units by the end of the fiscal period ending January 31, 2025.
			・ Among the interest-bearing debt of 119,700 million yen outstanding as of the publication of this document, JLF
			will repay long-term borrowings of 1,000 million yen in the six-month period ending July 2024 by using new
			borrowings.
	Interest-bearing		・ The acquisition of Ishikari Logistics Center (co-ownership interest: 55%), which is assumed to be made on
	debt		March 29, 2024, is assumed to be made with cash and deposits on hand, and no new borrowings, etc. are
			assumed to be procured.
			・The interest-bearing debt outstanding is expected to be 119,700 million yen as of July 31, 2024 and January 31,
		2025.
			・ The rent revenue is estimated based on the lease contracts in effect as of the publication (however, the lease
			contract of Ishikari Logistics Center will be in effect as of the date of the acquisition), and considering the
	Operating revenue		fluctuation factors such as the market environment and rent levels based on negotiations with lessees.
			・ JLF expects to gain 682 million yen as gains on sale of real estate, etc., in the period ending July 31, 2024 in
			connection with the disposition of Urayasu Chidori Logistics Center II.
			・ When acquiring real estate, etc., JLF will include in the acquisition cost the amount equivalent to the fixed asset
			tax and city planning tax ("Property tax, etc.") for the fiscal year of acquisition. The amount equivalent to
			Property tax, etc. to be included in the acquisition cost of Ishikari Logistics Center (quasi co-ownership interest:
			55%), which is scheduled to be acquired on March 29, 2024, is expected to be 6 million yen.
			・ Breakdown of expenses related to the rent business, which comprise the core part of operating expenses, is as
	Operating		follows.
	expenses			For the six-month period	For the six-month period
				ending July 31, 2024	ending January 31, 2025
			Taxes and dues:	906 million yen	904 million yen
			Outsourcing services:	295 million yen	344 million yen
			Repair expenses:	303 million yen	233 million yen
			Depreciation:	1,874 million yen	1,874 million yen

10