MFLP Mitsui Fudosan Logistics Park Inc. Development / Operation Track Record slide image

MFLP Mitsui Fudosan Logistics Park Inc. Development / Operation Track Record

3 -1. Market Overview Market Overview 2 Stock of logistics facilities in Japan* (million m²) 700 Leading-edge Logistics facilities 600 40 years old or older logistics facilities 500 6.1% 44.8% 400 300 Future demand for replacement of aging properties Highly scarce 200 leading-edge 100 logistics facilities 0 Logistics facilities. (As of December 2021) MFLP Mitsui Fudosan Logistics Park Inc. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Estimate for logistics facilities 40 years old or older Share of logistics facilities 40 years old or older Estimate for logistics facilities less than 40 years old Share of leading-edge logistics facilities 50% 40% 30% 20% 10% 0% (year) Leading-edge logistics facilities (left axis) (right axis) less than 40 years old 49.1% * Estimates by CBRE K.K. based on "Building Starts" (Ministry of Land, Infrastructure, Transport and Tourism) and "Summary Report on Prices, etc. of Fixed Assets" (Ministry of Internal Affairs and Communications). Top left pie chart created by Asset Management Company, based on data the above graph. Long-term data on construction starts of logistics facilities (nationwide) Tenant demand to increase floor space in logistics facilities Survey "Priority/Focus Initiatives for the Next 3 Years (FY2022)" Over 40 years old thousand m² 20,000 15,000 10,000 5,000 0 0% Open new logistics facilities, increase floor area, number of facilities Adopt/upgrade automation equipment/facilities Working environment for employees, improving safety features Enhance transport and delivery network Consolidate/relocate facilities Refurbish existing facilities and equipment ESG initiatives Upgrade omni-channel to reflect ESG issues Assessing situation for now 10% 20% 30% 40% 50% 60% (year) Source: CBRE K.K. (May 2023) Other ■Top priority 2nd priority 3rd priority Figures calculated as the sum total of the floor area of structures with "warehouse" as the use category and "steel-framed structure," "reinforced concrete structure" or "steel-framed reinforced concrete structure" as the structure type. Source: CBRE K. K. " Tenant Survey on use of Logistic Facilities 2022" (as of June 2022) 40 40
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