CRE : Presentation Materials for the First Two Quarters of the Fiscal Year ending July 31, 2021

(Translated from the Japanese original)

Consolidated Results for First Two Quarters of Fiscal Year ending July 31, 2021 (August 1, 2020 to January 31, 2021)

March 15, 2021

Code: 3458

Listing: First Section of the Tokyo Stock Exchange

Business Vision

No.1 corporate group with Logistics Infrastructure Platform that connects people and things of our world

Logistics Infrastructure Platform

Labor shortage response

BRAIN WAVE Co., Ltd. changed name to HAPILOGI, INC. on November 1, 2020.

Classification of Group Companies

Consolidated subsidiaries

Distribution platform businessSelf-storage business in Thailand Asset manager CRE Logistics REIT, Inc. Asset management business for privately placed funds

CRE Asia

Equity methodaffiliates

Soil remediation-related activities

Sembcorp Infra Services

Logistics facility leasing and development in

VietnamSpecialized leasing/rental of freezer trucks and wing body trucks

Brownfield remediationAutomated warehouseNote: Included in consolidated accounting from third quarter.

CRE Group's Main Business

Flow of salesFlow of COGS

Real estate management business

Master leasing

Property management

Flow of services

Asset management business

Rental

Stock business

Flow business

Contents

• 7 Summary of Consolidated Results for First Two Quarters of Fiscal 2021

• 20 Revisions to Business Forecasts

• 22 Medium-Term Management Plan (Fiscal 2019 to Fiscal 2021)

• 33 Return to Shareholders

• 36 Long-Term Management Strategy

• 42 Logistics Real Estate Market

• 48 Appendix

Topics (As of March 15, 2021)

• ● Began development of logistics facility LogiSquare Atsugi I1

• ● Completed multi-tenant logistics facility LogiSquare Osaka Katano3

• ● Began development of logistics facility LogiSquare Matsudo4

• ● Completed logistics facility LogiSquare Miyoshi II6

• ● Signed partnership agreement with Sankyu Inc. on logistics business5

• ● Notice regarding sale of logistics facilities2

Announced

1: December 17, 2020 2: January 4, 2021 3-4: February 1, 2021 5: March 4, 2021 6: March 15, 2021

Summary of Consolidated Results for

First Two Quarters of Fiscal 2021

Consolidated Results for First Two Quarters of Fiscal 2021

• • LogiSquare Kawagoe II, LogiSquare Kobe Nishi, LogiSquare Saiyama Hidaka (80% of quasi co-ownership interest) sold. Development profit on each building higher than initial target.

• • Initial target assumed sale of LogiSquare Miyoshi II and LogiSqiuare Saiyama Hidaka (20% of quasi co-ownership interest) and formation of CRE master leasing fund, but taking a conservative perspective, management has not incorporated these factors into current forecast.

(Millions of yen)

Fiscal 2020 First Two QuartersFiscal 2021 First Two Quarters

YOY change (%)

Net sales

Gross profit

11,429 2,333

34,752 7,839

204.1% 235.9%

Selling, general and administrative expenses

1,779

1,985

11.6%Amortization of goodwill

118

118

－

Operating profit

Recurring profit

Net income

554 454 304

5,853 5,684 4,032

956.4%

Earnings per share

¥12.11

¥147.37

－ － －

Revised targets for	Initial targets
Fiscal 2021	Progress	(Announced
(Disclosed March 15,	(%)	September 11,
2021)	2020)
75.4%	54,700
－	－
－	－
－	－
117.1%	5,000
126.3%	4,500
139.1%	2,900
139.1%	¥105.88

－

46,100

－

－

5,000 4,500 2,900

¥105.97

Breakdown of Profit

(Millions of yen)

Net income attributable to owners of the parent companyIncome before income taxesOperating profitNon-operating incomeNon-operating expensesRecurring profitExtraordinary incomeExtraordinary expensesIncome taxes and others

Breakdown of non-operating income / expenses

Non-operating income

Equity in income of affiliates

75

Non-operating expenses

Financing costs, etc.

238

Results for Each Reporting Segment

• • Real estate management business: Steady increase in master leasing rental revenues, which represents stock revenue. Sold Company-owned buildings to CRE master leasing fund. (First quarter)

• • Logistics investment business:

• • Asset management business:Higher sales and profit reflects sale of LogiSquare Kawagoe II, LogiSquare Kobe Nishi, LogiSquare Saiyama Hidaka (80% of quasi co-ownership interest). Sold renovated buildings to CRE master leasing fund. (First quarter)

Booked favorable performance fees from CRE Logistics REIT during quarter, in addition to arrangement fees through formation of CRE master lease fund, leading to higher sales and profit

(Millions of yen)

Operating profit (Segment income)

Net Sales

Real estate management business

Logistics investment business

Asset management business

Other operations

Real estate management business

Logistics investment business

Asset management business

Other operations

Adjustment

Fiscal 2020 First Two Quarters

Note: Sales for each reporting segment represent sales to external customers.

Profit from Stock Business

Stock business = Real estate management business + Asset management business

(Millions of yen)

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

2Q FY2020

2Q FY2021

Summary of Consolidated Balance Sheets

• • Key components of real estate for sale: LogiSquare Sayama Hidaka (20% of quasi co-ownership interest), LogiSquare Osaka Katano and four small-sized warehouses

• • Key components of real estate for sale in process: LogiSquare Miyoshi II , LogiSquare Astugi I, LogiSquare Hirakata and BTS (build-to-suit)-type warehouse inToyama

(Millions of yen)

Total assets

Current Assets

（Key components）

Cash and deposits

Accounts receivable-trade

Real estate for sale

Real estate for sale in process

Fixed assets

（Key components）

Tangible fixed assets

Intangible fixed assets

Investments and other fixed assets

※1 Short-term loans payable, etc.＝ Short-term loans payable + Current portion of long-term loans payable + current portion of bond

Total assets

※2 Long-term loans payable, etc. ＝ Bond +Long-term loans payable

Total liabilities

Current liabilities

（Key components）

Short-term loans payable, etc.※1

Accounts payable - trade

Fixed liabilities

（Key components）

Long-term loans payable, etc.※2

Lease and guarantee deposits received

Total net assets

Common stock

Capital surplus

Earned surplus

Total liabilities and net assets

Financial Position (as of July 31, 2020)

Changes in Loan Balance and Changes in Weighted Average Interest

Rate (Consolidated Basis)

(Millions of yen)

30,000

Logistics investmentExcluding logistics investmentWeighted Average Interest Rate

25,000

20,000

15,000

10,000

5,000

0

July 2016

July 2020

July 2017

July 2018

July 2019

（Number）	July 2016	July 2017	July 2018	July 2019	July 2020
Funding sources	15	15	20	24	23

（times）

3.50

1.20%

1.00%

0.80%

0.60%

0.40%

0.20%

0.00%

-0.50

2.50

1.50

0.50

July 2016

Key Indicators (Consolidated Basis)

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%July 2017

July 2018

July 2019

July 2020

*1 Debt-to-equity ratio

＝interest-bearing debt（short-term loans payable + long-term loans payable）/ equity capital *2 Net debt-to-equity ratio ＝ (interest-bearing debt（short-term loans payable + long-term loans payable） - cash and deposits) / equity capital *3 CRE's target upper limit of net debt-to-equity ratio is 2.5 times. (Source: Long-term strategy announced September 12, 2016)

Real Estate Management Business: Floor Space under Management

Change in Floor Space under Management

Million square meters

6

5

4

3

2

1

0

Aug.2010

Nov.2010

Feb.2011

May2011

Aug.2011

Nov.2011

Feb.2012

May2012

Aug.2012

Nov.2012

Feb.2013

May2013

Aug.2013

Note: Calculation method changed, effective March 2013

100%

95%

90%

85%

80%

75%

70%

65%

60%

55%

50%

Nov.2013

Feb.2014

May2014

Aug.2014

Nov.2014

Feb.2015

May2015

Aug.2015

Nov.2015

Feb.2016

May2016

Aug.2016

Nov.2016

Feb.2017

May2017

Aug.2017

Nov.2017

Feb.2018

May2018

Aug.2018

Nov.2018

Feb.2019

May2019

Aug.2019

Nov.2019

Feb.2020

May2020

Aug.2020

Nov.2020

Real Estate Management Business: Floor Space under Management by Area

Master Lease

Property Management

As of January 31, 2021

Diverse Customer Base and Position among Property Management Companies

Tenant Composition in Master LeasePosition among Property Management Companies

Ranking in floor space under management of property management company.

#2

Floor space under management (Million square meters)

6.0

5.0

4.0

3.0

2.0

1.0

0.0

G

Main Customers for Property Management

・LaSalle LOGIPORT REIT

・LaSalle REIT Advisors K.K. ・Star Asia Investment Corporation

・Star Asia Investment Management Co., Ltd. ・Kenedix Retail REIT Corporation ・Kenedix Real Estate Fund Management, Inc. ・United Urban Investment Corporation ・Japan REIT Advisors Co., Ltd. ・Japan Logistics Fund, Inc.

・Mitsui & Co., Logistics Partners Ltd.

・Industrial & Infrastructure Fund Investment Corporation ・Mitsubishi Corp.-UBS Realty Inc.

・Mitsubishi Estate Logistics REIT Investment Corporation ・Mitsubishi Jisho Investment Advisors, Inc.

・CRE Logistics REIT, Inc.

・CRE REIT Advisers, Inc. ・LaSalle Investment Management ・Takara Asset Management Co., Ltd. ・Diamond Realty Management Inc. ・Kokyo Asset Management Co., Ltd. ・Challenger Limited

・Morgan Stanley Capital K.K.

・Daiei Real Estate & Development Co., Ltd. ・Real Link International Investment Advisors, Inc. ・Tozai Asset Management Co., Ltd.

・Mitsui & Co., Realty Management Ltd. ・IDERA Capital Management Ltd. ・FORTRESS INVESTMENT GROUP JAPAN ・Ichigo Estate

・Yamato Home Convenience Co. Ltd. ・TAKARA-SANGYO Co., Ltd. ・UIG Asset Management Co., Ltd. ・UNIVERSE DEVELOPMENT Co., Ltd. ・Yasuda Real Estate Logi Lease Co., Ltd. ・ESR REIT Management Ltd.

・TLC REIT Management Inc. ・SUMITOMO CORPORATION ・Kenedix Investment Partners, Inc.

・Daiwa Real Estate Asset Management Co., Ltd. ・Daiwa Information Service Co., Ltd.

CREDP

・Strategic Partners Co., Ltd.

As of January 31, 2021

Logistics Investment Business: Development Projects

Extensive Development Pipeline

(Million square meters)

1.6

Sales in previous periodsSales in this fiscal yearCompletedUnder developmentPublishedPlan

1.4

1.2

0.8

0.6

0.4

0.2

1

0

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021 onward

Reference: Domestic Logistics Facilities' Utilization Status and CRE's Business Areas

Current Utilization Status

3,305m2

9,917m2

16,528m2

49,587m2

41%

56%

Main areas in CRE's master lease business

＜Per-location available area＞

Main areas in CRE's logistics investment business

＜CRE's floor space under master lease composition＞

Less than 3,305㎡9,917㎡ to under 16,528㎡33,057㎡ to under 49,586㎡

Greater Tokyo Area

（n=655)Outside Greater Tokyo Area

（n=1848)

3%

Note 1: "n" is the number of utilized properties.

3,305㎡ to under 9,917㎡16,528㎡ to under 33,057㎡

More than 49,587㎡

3%

3%

Note 2: Responses received from 118 companies in the Greater Tokyo Area and 159 outside the

Greater Tokyo Area.

Note 3: Available area is actually floor area in use, not total floor area of logistics facilities.

Source: Sumitomo Mitsui Trust Research Institute Co., Ltd.

3% 2% 5%

Less than 660㎡

10%

45%

35%

More than 660㎡ but less than 1,320㎡

More than 1,320㎡ but less than 1,980㎡

More than 1,980㎡ but less than 2,640㎡

More than 2,640㎡ but less than 3,300㎡

More than 3,300㎡

As of January 31, 2021

Revisions to Business Forecasts

Revisions to Consolidated Results Forecasts for Fiscal 2021

(Millions of yen)

Revised targets for Fiscal 2021 (Disclosed March 15, 2021)	Initial targets for Fiscal 2021 (Announced September 11, 2020)	Differences	Fiscal 2020 (Actual)
Amount	％
Net Sales	46,100	54,700	(8,600)	(15.7%)	41,194
Real estate management business	23,600	27,100	(3,500)	(12.9%)	22,563
Logistics investment business	21,600	26,600	(5,000)	(18.8%)	17,645
Asset management business	900	1,000	(100)	(10.0%)	966
Other operations	―	―	―	―	19
Operating profit (Segment income)	5,000	5,000	0	0.0%	4,228
Real estate management business	1,500	2,200	(700)	(31.8%)	2,163
Logistics investment business	4,200	3,700	500	13.5%	2,521
Asset management business	450	500	(50)	(10.0%)	503
Other operations	―	―	―	―	3
Adjustment	(1,150)	(1,400)	250	―	(964)
Recurring profit	4,500	4,500	0	0.0%	4,049
Net income	2,900	2,900	0	0.0%	2,611
Earnings per share	¥105.97	¥105.88	¥0.09	0.1%	¥103.72
Dividend per share	¥23.00	¥23.00	0.00	0.0%	¥22.00
Return on equity	13.5%	12.6%	―	0.9p	13.9%

Note: Sales for each reporting segment represent sales to external customers.

Medium-Term Management Plan

(Fiscal 2019 to Fiscal 2021)

Three-Year Strategies

・Maintain existing earnings base, then drive results higher ・Promote reconstruction of

master leasing properties ・Expand business related to property management ・Further strengthen real estate brokerage capabilities

Real estate management business

・Strengthen ability to purchase development sites

•  Expand investment areas

•  Medium- and long-term development of sites

•  Joint development

•  Soil contaminated sites

・Expand AUM ・Cultivate investor base ・Formation of self-storage funds ・Formation of small warehouse funds

Overseas business

・Brought LogiCom, Inc. under consolidation in December 2018 → Absorbed LogiCom, Inc. in Augu st 2020

・Started construction on LogiSquare Kobe Nishi in June 2019

・Plan to start construction on

LogiSquare Osaka Katano in November 2019

・Fujimino project

・¥97.1 billion in AUM at CRE Logistics REIT

・Formation of small- and medium-sized warehouse funds in April 2019

・Promote leasing and development business for logistics facilities in VSIP Hai Phong Integrated Township and Industrial Park in Vietnam

・Promote self-storage business and investment in real estate-related business in Thailand

・Started construction on VSIP Hai Phong Warehouse III in August 2019 → Completed in April 2020

Ongoing Strategy: Enhanced Lineup of Our Products (Real Estate Management Business)

Large amount

Effective land utilization and profit-making properties ・Idle land utilization and reconstruction

・Change to more profitable real estate

Minimum investment size: Several hundreds of million yenSecuritized product backed by sub-divided real estate investment

・Installation of photovoltaic power generation equipment at logistics properties ・ Allocated to small lots in accordance with Act on Specified Joint Real Estate Ventures

Minimum investment size: Several million yen

Results in fiscal 2020

Formation of private fund

LogiSquare Niiza Solar Power Plant Power output: 898.56kW

Listed on February 7, 2018

Small amount

Ongoing Strategy: Strengthen Soil Contaminated Site Sourcing (Logistics Investment Business)

Capital and Business Alliance

Investment stake of about 20% as of December 2018

Established new company through joint investment

Land Revitalization Investment, Ltd.

Leasing Planning

Real estate capabilities

Ability to provide environmentally friendly solutions for contaminated soil

In-situ remediation technologies

Code: 6092

Listing: Tokyo Stock Exchange Mothers market

The second project

Location	Kamiechi, Atsugi-shi, Kanagawa
Lot area	About 10,032m2
Total floor area	18,000m2 -20,000m2 (scheduled)
Construction start	Spring of 2023
Completion	Summer of 2024

Risk responsiveness

Comparatively high risk tolerance

•  Chemical oxidation & reduction treatment

•  Bioremediation

•  Thermal desorption

The third project

Location	Naka, Shiroi-shi, Chiba
Lot area	About 16,792m2
Total floor area	20,000m2 -33,000m2 (scheduled)
Construction start	Fall of 2021
Completion	Fall of 2022

Ongoing Strategy: Strengthen Self-Storage Business

(Real Estate Management Business and Asset Management Business)

Future Strategies

Self-storage development (Self-storage brand Keep It )

2

Expand floor space under management by Japan Personal Storage Co., Ltd. (Joint venture with Palma Co., Ltd. (hereafter referred to as JPS))

Formation of funds focusing on self-storage

Future Image

After three yearsProperty transferredProperty transferred

Revenue from transferRental revenues of master leasing and property management fees

1

3

Ongoing Strategy: Formation of medium- and small-sized warehouse funds (Real Estate Management Business and Asset Management Business)

• • Formation of fund No.1 in April 2019

• • Formation of fund No.2 in September 2020

Mainly small- and medium-sized warehouses with less than 5,000m2 total floor area

Property transferred

CRE master leasing fund

Investment

Domestic institutional investors

Development Plan in Vietnam

Singapore government-affiliated company

Sembcorp Development Ltd.

Acquisition of new shares through third-party allotment

(30％ of outstanding shares)

Sembcorp Infra Services Pte. Ltd.

CRECRE AsiaSembcorp Infra Services Hai Phong

Sembcorp Logistics Park A (Hai Phong) phase 1	Sembcorp Logistics Park A (Hai Phong) phase 2
Lot area Structure Total floor area	47,083㎡（Phase1+2） 1F 15,000㎡ 1F 14,279㎡

Sembcorp Logistics Park B (Hai Phong)	Development plan (VSIP Hai Phong Warehouse Ⅳ (tentative)) (Phase4)
Lot area About 23,840m2 Structure 1F (scheduled) Total floor area About 14,286m2 Start August 2019 Completion April 2020	Lot area About 29,215m2 Structure 1F (scheduled) Total floor area About 17,529m2 Start Beginning of 2021 (scheduled) Completion End of 2021 (scheduled)

Economic Growth Rate

%20.0

16.0

Hai Phong

Vietnam

Five ASEAN countries

16.3

16.7

12.0

8.0

4.0

0.0

2012 2013 2014 2015 2016 2017 2018 2019

Source： Hai Phong and Vietnam data from Hai Phong Statistical Office and General Statistic Office of Vietnam, and Five ASEAN countries data from Asia Trends Macroeconomic Report, released by Dai-Ichi Life Research Institute Inc.

Five ASEAN countries (Indonesia, Thailand, Malaysia, the Philippines and Vietnam)

Hai Phong city's Component of Economic

Services

Industries and construction

Agriculture, forestry and fisheries

Others

5.97%

Source： Hai Phong People's Committee

Perspective on Earnings

Build Circular Stock and Flow Business Structure

• • Emphasize earnings from stock business

Earnings from core stockEarnings from stock

Grow core stock

Selling, general and administrative expenses

• • Cover selling, general and administrative expenses with earnings from core stock income

  Earnings from core stock = Master lease leasing income + Property management fees + Building maintenance fees + Repairs/maintenance/improvement projects + Management fees during asset management period

  Earnings from stock = Income from real estate management business + Income from asset management business

Earnings from stock

Current

Future

Build Circular Stock and Flow Business Structure

Stock businessFlow business

Return

Risk

Profit Structure that Builds Profit from Flow Business on to Profit from Stock Business

Time

Return to Shareholders

Return Profits to Shareholders in Line with Growth in Stock Business

• • We will draw on earned surplus from the stock business to distribute dividends to shareholders and will strive to steadily increase dividend payments commensurate with continuous growth.

• • We reinvest earned surplus from the flow business into logistics development and M&As to strengthen the stock business, or to purchase treasury stock.

Capital Strategies

Profit from stock business

Profit from flow business

Return to Shareholders

Changes in dividends per share and dividend payout ratio

Consolidated dividend per share

Dividends per share

Dividend payout ratio

(Yen)

25

20

15

10

5

0

FY2017

80%

Fiscal 2021 (plan)

70%

60%

50%

¥23 per share

40%

YOY +¥1（Up 4.5%）

30%

20%

10%

More than 50% of profit from stock business

Note: Based on total number of shares issued (excluding treasury stock) as of July 31, 2020.

0%FY2018

FY2019

FY2020

FY2021

Plan

Note: CRE executed a two-for-one stock split twice, once on November 1, 2016, and again on August 1, 2018, and annual dividend amounts noted in the graph above have been retroactively adjusted to reflect these stock splits

Long-Term Management Strategy

Long-Term Management Strategy: Entire Picture

Creating a Connected Future through Logistics Real Estate Business

Real estate management business

Logistics investment business

Asset management business

Plan 1: Sustainable corporate growth by strengthening stock business

Plan 2 : Establish corporate system to maintain growth

Plan 3 : Return profits to shareholders in line with growth in stock business

Source: Long-term management strategy announced on September 12, 2016

Plan 1: Sustainable corporate growth by strengthening stock business

Sustained growth of real estate management business and asset management business-both stock businesses-will underpin stable management base resilient to changing business conditions

1

Expand revenue and income in real estate management

2

3

4

Expand AUMStrengthen area expansion

Expand business size and reinforce competitiveness through M&A

Source: Long-term management strategy announced on September 12, 2016

Underpinning Long-Term Management Strategy

Business area

New

Now

Established Logistics Infrastructure Platform Specialized leasing/rental of freezer trucks and wing body trucks Worker dispatche-commerce fulfillment Delivery matching service Automated warehouse Logistics solutionConstruction/for e-commerce energy services Search	Established Logistics Infrastructure Platform Global Specialized leasing/rental of freezer trucks and wing body trucks Worker dispatche-commerce fulfillment Delivery matching service Automated warehouse Logistics solutionConstruction/for e-commerce energy services
Provided One-stop Services for Logistics Facilities Asset utilization businessDevelopment businessMaster leasing business Real estate brokerage businessProperty management business Deepen	Provided One-stop Services for Logistics Facilities in ASEAN Asset utilization businessDevelopment businessMaster leasing business Real estate brokerage businessProperty management business Search

Area expansionDomestic

Overseas

Long-Term Strategy in Real Estate Management Business

Expansion in Floor Space under Management

Results in fiscal 2020

Increase in floor space under management of master lease operations

Up about 5% from the end of July 2019

Ratio outside greater Tokyo area*

*Target floor space under management in master leasing and property management categories

Target

About 10 million m2

(As of July 31, 2020)

Long-Term Strategies in Logistics Investment Business and Asset Management Business after REIT Listing

Logistics Real Estate Development

Change in Assets under Management (AUM)

• • Public offerings executed in three consecutive REIT accounting periods.

July 2015 July 2016 July 2017 July 2018 July 2019 July 2020

Total issue price
First public offering in July 2019	3.3 billion yen
Second public offering in January 2020	12.5 billion yen
Third public offering in July 2020	11.2 billion yen

Target

¥161 billion

¥500 billion

July 2016 July 2017 July 2018 July 2019 July 2020

Logistics Real Estate Market

e-commerce Market Expansion

Changes in Scale of B2C e-commerce Market (EC) and Forecast

Scale of EC market in Japan (left scale)

EC ratio in Japan (right scale)EC ratio in U.S. (right scale)

EC ratio in U.K. (right scale)

Source: Prepared by CRE, using B2C market scale and Japan's EC ratio data from Ministry of Economy, Trade and Industry; predictions by Nomura Research Institute for forecasts from 2020 and later; U.S. EC ratio data from U.S. Census Bureau and U.K. EC ratio data from Office for National Statics.

*E-commerce market scale to all business transactions. EC ratio for B2C e-commerce indicates value for sectors selling products as opposed to services.

Net Freight Flow and Small Cargo Flow for Personal Use

(Three-day research)	Weight (tons)	Number
2010	2015	2010	2015
Net freight flow	23,412,000	22,171,000	24,616,000	22,608,000
Mixed cargo, such as home-delivered packages	869,219	731,834	15,561,281	12,564,392
For personal use	6,940	10,104	1,420,025	1,308,670
(Ratio for personal use)	0.8%	1.4%	9.1%	10.4%
Ratio of home-delivered packages for personal use to total	0.03%	0.05%	5.77%	5.79%

Note: The Net Freight Flow Census

targets cargo shipped by mining

industry, manufacturing industry,

wholesale business and warehousing

business and does not include

shipments by retailing industry or

individuals.

Source: Prepared by or with slight revision by CRE, using data from Ministry of Land, Infrastructure and Transport's "2010 Net Freight Flow Census" and "2015 Net Freight Flow Census".

Steady Performance in e-commerce Market after COVID-19

Changes in Domestic Judgment Criteria

(Transport Volume)

Retail Market, e-commerce Market and EC ratio in U.S.

General cargo

Home delivery

Special cargo

e-commerceRetail sales excluding e-commerce

（Millions of dollars）

EC ratio

2020CY4Q

200

150

100

50

0

-50

-100

-150

-200

2018CY1Q

2018CY2Q

2018CY3Q 2018CY4Q 2019CY1Q 2019CY2Q 2019CY3Q 2019CY4Q 2020CY1Q 2020CY2Q 2020CY3Q 2020CY4Q 2021CY1QF

Source: Prepared by CRE, using data of business confidence in trucking industry (flash report) from Japan Trucking Association.

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

2019CY4Q

2020CY1Q

2020CY2Q

2020CY3Q

Source: Prepared by CRE, using U.S. Census Bureau data on quarterly retail e-commerce sales in second quarter of 2020.

Change in Floor Space in Warehouse Construction Starts

• • Floor space in warehouse construction starts has trended above that of stores since 2014.

• • Floor space in warehouse construction starts is approximately 3 times bigger than that of stores in 2020.

(Thousand square meters)

12,000

10,000

8,000

6,000

4,000

2,000

0

2020 （Year）

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: Prepared by CRE, based on data (2017) released by Ministry of Land, Infrastructure, Transport and Tourism, on building construction starts

Annual Completed Floor Space by Area

Greater Tokyo AreaGreater Osaka Area

(Thousand square meters)

3,200

2,800

2,400

2,000

1,600

1,200

800

400

0

2010

2011

2012

2013

2014

2015 2016

2017

2018

2019

2020

2021

2022

Source: As of January 2021, according to our own research

Copyright (C) 2021 CRE, Inc. All rights reserved. 46

Demand for Logistics Properties from Real Estate Finance Market Remains Strong

• • Investment in logistics properties, such as warehouses and distribution centers, in J-REIT holdings has grown to a size comparable to that of investment in retail space, and market presence is expanding.

Asset Size by Use in J-REITs (Acquisition Value Basis) and Regional Investment Strategy

LogisticsRetailOfficeOthers

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Jun. 2012

Dec. 2012

Jun. 2013

Dec. 2013

Jun. 2014

Dec. 2014

Jun. 2015

Dec. 2015

Jun. 2016

Dec. 2016

Jun. 2017

Dec. 2017

Jun. 2018

Dec. 2018

Jun. 2019

Dec. 2019

Jun. 2020

Dec. 2020

Nov. 2012	Daiwahouse-REIT listed (shift to complex-type and diversified REIT due to merger in September 2016)	Feb. 2016	LaSalle LOGIPORT REIT listed	Feb. 2018	CRE Logistics REIT listed
Dec. 2012	GLP J-REIT listed	Aug. 2016	MFLP-REIT listed	Sep. 2018	ITOCHU Advance Logistics Investment Corporation listed
Feb. 2013	Nippon Prologis REIT listed	Sep. 2017	Mitsubishi Estate Logistics REIT listed	Dec. 2019	SOSiLA Logistics REIT listed

Sources: Prepared by CRE, using valuation indicators by Daiwa Securities Co. Ltd.

APPENDIX

Company Profile

Company name	CRE, Inc.
Representative	Tadahide Kameyama, Representative Director, President
Head office	East Tower 19F, Toranomon Twin Bldg., 2-10-1, Toranomon, Minato-ku, Tokyo
Sales offices	Kanagawa, Osaka, Fukuoka, Singapore, Thailand
Main businesses	Leasing, management, development, brokerage and asset management of logistics facilities
Established	December 22, 2009
Paid-in Capital	¥2,240 million (As of July 31, 2020)
Consolidated net sales	¥41,194 million (Fiscal year ended July 31, 2020)
Number of employees	253 (Consolidated basis / As of January 31, 2021)
Listing	First Section of the Tokyo Stock Exchange Code: 3458
Industry sector	Real estate business

History

Expanding warehouse master leasing business

(1964-2005)

Tokyo Olympics

Entered development business (2005-2014)Full-scale entry into real estate fund business

(Since 2014)

Shift to logistics infrastructure platform

(Since 2018)

・Made full-scale entry into development business by utilizing accumulated know-how. ・Growing property management business, reflecting expansion of logistics real estate fund market.

・Started master leasing business for small warehouses.

・Strengthened capabilities for brokerage of master leasing properties.

・Entered J-REIT business, listed and realized 100 billion yen AUM within three years.

・Expanded private fund business in the same timeframe.

・Added logistics infrastructure platform to business domains. ・Made full-scale entry into Thailand and Vietnam, and expanded business area to include ASEAN region.

Tokyo Olympics

1964

1980

1996

Tenko Souken established.

Commercial RE BRAIN WAVE established. established.

2005

Entered logistics investment business. (development)

2009 Dec.

CRE established.

Commercial RE Co., Ltd,Tenko Souken Co., Ltd.

2014 Aug.

Started real estate fund business.

Assumed property management business on August 2010.

Absorbed Tenko Souken Co., Ltd., in July 2011.

Turned into subsidiary in May 2018 and BRAIN WAVE Co., Ltd. changed name to HAPILOGI, INC.

2015 Apr.

2015 Oct.

Second Section ofListed on

2016 Apr.

Stock Exchange

TokyoCapital and business alliance with Enbio Holdings.

Entered the Asian market.

Turned into subsidiary in August 2014.

2016 May

Listed on

First Section of

Tokyo

Stock Exchange.

2018 Feb.

CRE Logistics

REIT listed.

2018 May

Entered distribution platform business.

LogiCom, Inc.

Turned into subsidiary in December 2018 and absorbed in August 2020.

2021

(Scheduled)

Consolidated Financial Highlights

Net Sales

(Millions of yen)

50,000

(Millions of yen)

6,000

Operating Profit

40,475

40,000

30,000

20,000

10,000

0

33,842

33,584

41,194

23,941

Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020

5,000

5,188

4,000

3,000

2,000

1,000

0

3,186

4,386

4,228

1,651

Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020

Recurring Profit

(Millions of yen)

6,000

(Millions of yen)

4,000

Net Income

3,581

4,956

5,000

4,000 3,000 2,000 1,000

0

4,123

3,103

4,049

1,382

Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020

3,000

2,307

2,000

2,611

2,103

1,000

696

0

Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020

Financial Highlights for Each Reporting Segment

Segment Income

Stock Business

Flow Business

Fiscal 2016

(Millions of yen)

5,000

Logistics Investment business

4,233

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

4,000

3,000

2,000

1,000

0

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Development Projects

Status	Name	Location	Total floor area （m2）	Construction start	Completion
Completed	1	LogiSquare Soka	Soka, Saitama	30,073	June, 2012	June, 2013
Completed	2	LogiSquare Yashio	Yashio, Saitama	19,094	March, 2013	January, 2014
Completed	3	LogiSquare Hidaka	Hidaka, Saitama	17,461	July, 2014	March, 2015
Completed	4	LogiSquare Kuki	Kuki, Saitama	44,374	May, 2015	June, 2016
Completed	5	LogiSquare Hanyu	Hanyu, Saitama	38,856	August, 2015	July, 2016
Completed	6	LogiSquare Kuki II	Kuki, Saitama	11,931	July, 2016	February, 2017
Completed	7	LogiSquare Urawa Misono	Saitama, Saitama	52,374	February, 2016	April, 2017
Completed	8	LogiSquare Niiza	Niiza, Saitama	25,888	May, 2016	April, 2017
Completed	9	LogiSquare Moriya	Moriya, Ibaraki	34,221	August, 2016	May, 2017
Completed	10	LogiSquare Chitose	Chitose, Hokkaido	20,886	April, 2017	December, 2017
Completed	11	LogiSquare Tosu	Tosu, Saga	17,788	June, 2017	February, 2018
Completed	12	LogiSquare Kawagoe	Kawagoe, Saitama	7,540	June, 2017	February, 2018
Completed	13	LogiSquare Kasukabe	Kasukabe, Saitama	22,188	June, 2017	June, 2018
Completed	14	LogiSquare Ageo	Ageo, Saitama	19,521	May, 2018	April, 2019
Completed	15	LogiSquare Kawagoe II	Kawagoe, Saitama	14,787	August, 2018	June, 2019
Completed	16	LogiSquare Kobe Nishi	Kobe, Hyogo	16,050	June, 2019	April, 2020
Completed	17	LogiSquare Miyoshi	Miyoshimachi, Iruma-gun, Saitama	40,754	March, 2019	June, 2020
Completed	18	LogiSquare Sayama Hidaka	Hanno, Saitama	84,132	February, 2019	June, 2020
Completed	19	LogiSquare Osaka Katano	Katano, Osaka	80,536	November, 2019	January, 2021
Completed	20	LogiSquare Miyoshi II	Miyoshimachi, Iruma-gun, Saitama	18,135	November, 2019	March, 2021
Under development	21	LogiSquare Shiroi	Shiroi, Chiba	30,400	November, 2021 (plan)	November, 2022 (plan)
Under development	22	LogiSquare Hirakata	Hirakata, Osaka	45,083 (plan)	November, 2021 (plan)	January, 2023 (plan)
Under development	23	LogiSquare Atsugi I	Aikawacho, Kanagawa	18,200 (plan)	April, 2022 (plan)	March, 2023 (plan)
Under development	24	LogiSquare Matsudo	Matsudo, Chiba	15,654 (plan)	Spring of 2022	Spring of 2023
Under development	25	LogiSquare Atsugi II	Astugi, Kanagawa	18,000-20,000	Spring of 2023	Summer of 2024

Stock Information (As of January 31, 2021)

Issued Shares and Shareholders

Ratio of Shareholding by Type of Shareholder

Number of Shares Issued and Outstanding	27,462,600
Number of Shareholders	9,627

Major Shareholders

Shareholder Name	Number of shares (Thousands)	Shareholding ratio (%)
Kyobashi Kosan, Inc.	12,009	43.73
Kenedix, Inc.	4,127	15.02
GOLDMAN, SACHS & CO. REG	3,224	11.74
GOLDMAN SACHS INTERNATIONAL	1,407	5.12
Kokyo Tatemono Co., Ltd.	559	2.04
NORTHERN TRUST CO. (AVFC) SUB A/C NON TREATY	436	1.59
Syuhei Yamashita	344	1.25
Tsuyoshi Ito	228	0.83
THE BANK OF NEW YORK MELLON 140042	214	0.78
Tokyo Weld Co., Ltd.	200	0.73

Individuals and othersOther Japanese corporationsSecurities companiesJapanese financial institutionsOverseas institutionsTreasury stock

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Jul. 2017

Jul. 2018

Jul. 2019

Jul. 2020

Jan. 2021

Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.