ITOCHU Advance Logistics Investment : (Delayed)Investor Presentation Material for the Fiscal Period Ended January 2022

Ticker Symbol: 3493

ITOCHU Advance Logistics Investment Corporation

to 3km Kashiwa IMP

Seventh Fiscal Period (Ended January 2022) Investor Presentation Material

(March 17, 2022)

Modern highway.

Wonder this is how it would looked like if it had existed in the past...

President Message

In the 7th FP (ending January 2022), although still in the midst of the COVID-19, we continued to perform well and increased income, revenue and distribution, and we have not received any notification from our tenants of incidents that would have a significant impact on their facility operations as of March 17, 2022. I believe this is largely thanks to the generous support we receive from our investors and stakeholders, for which I am truly grateful.

Distribution per Unit (DPU) has increased to 2,755 yen from the latest forecast (2,724 yen) due to the full period contribution of income by 2properties acquired in April last years and internal growth such as increase in rent, reduction of operating expenses of the Investment Corporation including property management costs and interest expenses. We have also worked for improvement of NOI and initiatives for ESG. We plan DPU for the 8th FP (ending July 2022), 2,689 yen (latest forecast of 2,683 yen) and for the 9th FP (ending February 2023(7months fiscal period due to fiscal period change)), 3,239 yen.

As announced on January 27, 2022, ITOCHU REIT Management Co., Ltd. plans to merge with AD Investment Management Corporation, which is also a J- REIT asset management company in the ITOCHU Group, to which Advance Residence Investment Corporation ("ADR") entrusts the management of its asset effective from June 1, 2022. The merger is a business restructuring to enhance the real estate asset management business of ITOCHU Group and is intended to share and upgrade the management know-how of both companies, consolidate and expand opportunities to obtain property information, improve operational productivity through efficient use of human resources, and secure excellent human resources through the management of multiple investment corporations. This will expand the scope of our asset management business, and under stronger sponsorship than ever before, we intend to further enhance the value of our unitholders. The merger relates to the asset management company, and there are no plans to merge the investment corporations managed by the two

companies. We plan to hold 4th general meeting of unitholders of the Investment Corporation on April 27 of this year and the following three amendments to the Articles of Incorporation of the Investment Corporation will be proposed at the meeting. The first is to change the fiscal period of the Investment Corporation to February/August in order to avoid duplication and rationalize the account closing operations in the new company. Second, to link the effects of strengthening of the revenue by expanding the asset size held by the Investment Corporation and rationalization of account closing operations described above to the improvement of unitholder value, the management fee structure of the Investment Corporation will be changed (nearly 10% reduction of total management fee compared to the current structure). And third, the name of the Investment Corporation will be changed to "Advance Logistics Investment Corporation". This change is intended to unify the names of investment corporations managed by the new asset management company under "Advance," and is a part of strengthening its brand strategy by ITOCHU Group. As announced on the website of IAL on March 17, 2022, sponsorship of ITOCHU Group will not weaken, but rather will be further strengthened after the merger, so there is absolutely no need to be concerned.

The logistics real estate market, although in the middle of the sixth wave of the COVID-19 pandemic, has not suffered any significant impact. Instead, the robust demand for logistics operators is becoming apparent mainly due to the change in consumption structure owing to consumers' increase use of online shopping. However, we will continue forward with external and internal growth, ESG initiatives, solid cash management. Additionally, in furtherance of our commitment to be the J-REIT that is valued by our stakeholders, IAL will continue to work hard for reinforcing governance and other management systems with an awareness of its social responsibilities and public missions.

We are fully aware of our mission to meet the expectation of our investors and stakeholders. We will remain committed to making aggressive moves after the merger as well in order to be the J-REIT of your choice. We respectfully ask for your continued and long-lasting support.

March17, 2022

Junichi Shoji

Representative Director, President & CEO

ITOCHU REIT Management Co., Ltd.

1

Table of Contents

Merger of the Asset Management Company	P.3
(Scheduled on June 1, 2022)
Response to COVID-19	P.4
Financial Highlights	P.5
Financial Results	P.7
Change of Management Fee Structure	P.9
(Reduction in the Upper Limit Fee Rate)
Growth Strategies	P.11
Portfolio	P.23
Market Overview	P.25
Appendix	P.28
Notes on the Statements	P.38
Refer to the notes on page 38 for the statements marked with an asterisk (*) in this document

2

Merger of the Asset Management Company

(Scheduled on June 1, 2022)

Change management structure to manage multiple funds through merger. Steadily realize the effects of merger to enhance unitholder value and enhance cooperative relationship with the sponsor.

Aims and Effects of Merger

1. Expansion of investment opportunities and acquisition of property information
2. Sharing know-how of each company
3. Strengthen human resource development and recruitment capabilities

Change Article of Incorporation of IAL

1. Change of trade Name of IAL

Unify the trade name of the managing REITs to "Advance" as part of brand strategy.

2. Change of financial period

Change fiscal period of IAL from January/July to February/August to eliminate overlap of busy periods for account closing with ADR etc (start from 9th FP). Thus, 9th FP shall be 7 months irregular FP from August 1, 2022 to February 28, 2023.

3. Change of Management Fee

• Review the current management fee structure to enhance unitholder value linked with strengthened revenue base through asset size expansion and by rationalization effect of account closing operations, etc. (Total compensation reduced by nearly 10%)

• Subject to approval at the general unitholders meeting on April 27, 2022.

Order of Consideration for Asset Acquisition

Principle of Listed REIT Priority

Name	1st	2nd
Logistics	ADL(IAL)	ADP
facilities
Rental	ADR	ADP
residences
Others	ADP	－

Overview of the Merger of Management Company

• Before Merger ＞

ITOCHU REIT			AD Investment Management Co., Ltd.
Management Co., Ltd.
AM				AM
ITOCHU Advance		Advance Residence		Advance Private
Logistics Investment			Investment		Investment
Corporation(IAL)			Corporation(ADR)		Corporation(ADP)
【Listed/Logistics】			【Listed/Residence】	【Unlisted/Comprehensive】

＜After Merger (plan) ＞

(New Merged Company) ITOCHU REIT Management Co., Ltd.

AM

Investment		Investment		Investment
Corporation		Corporation		Corporation
【Listed/Logistics】	【Listed/Residence】	【Unlisted/Comprehensive】

3

Response to COVID-19

Business progressed without major problems during the 6th wave of COVID-19

Tenant

Asset

Management

Company

Preventive measures are taken by tenants such as measuring employees' body temperature, keeping social distancing at offices and employees' lounges, or placing division panels, best for its own workplace management. Operations are being carried out without any major problems.

• Received approval from the Tokyo Metropolitan Government to practice "Telework Tokyo Rules".
• Asset management is operated without delay under remote works and sliding commuting hours.

IAL portfolio of tenant industry and goods can expect stable Cash Flow despite COVID-19

									(As of January 31, 2022)
			Tenant Industry and Goods Composition
	High Ratio of E-commerce and Major 3PL tenants shows resilience	Primarily consumer related goods shows stable demands
			in recession and stable Cash flow	despite economic environment
			Tenant industry	Major goods handled by Tenant
			(based on annual rent)	(based on annual rent)
			Manufacturer 1.8%	Casual		Others
	Retail 5.5%	Clothing		3.1%
	3.7％
			E-commerce*
	3PL*		38.6%
54.0	%	E-commerce						Consumer
+ major 3PL				Various
	Sportswear
				related goods
			77.6%	30.0	％		Everyday
				Sundries	96.9%
					48.7	％
				Foods &
				Beverages
			Major 3PL*	14.5％
			39.0%
※ The calculation of goods are based on hearings from tenants. Accordingly, different types of goods may be handled at some parts of space.						4

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