LaSalle LOGIPORT REIT : Financial Results (REIT) for the Fiscal Period Ended February 28, 2022

Financial Results (REIT) for the Fiscal Period Ended February 28, 2022

April 15,2022

• R E I T I s s u e r : LaSalle LOGIPORT REIT

  S t o c k E x c h a n g e L i s t i n g : TSE

• S e c u r i t i e s C o d e : 3466

U R L :https://lasalle-logiport.com/english/

R e p r e s e n t a t i v e : (Title) Executive Director

(Name) Toshimitsu FujiwaraAsset Management Company: R e p r e s e n t a t i v e :LaSalle REIT Advisors K.K. (Title) President and CEO (Name) Toshimitsu FujiwaraC o n t a c t : (Title) Head of Fund Management (Name) Taira Jigami

Telephone [phone]

Scheduled filing date of securities report: May 30,2022 Scheduled date of distribution payment commencement: May 23,2022

Supplementary information for financial results: Yes

Briefing meeting for financial results: Yes (for institutional investors and analysts)

(Amounts are rounded down to the nearest million yen)

1. Financial Results for the Fiscal Period Ended February 28,2022(September 1, 2021 to February 28, 2022)

(1) Management StatusOperating revenuesOperating income

(% figures show period-over-period change) Ordinary income Net income

Fiscal period ended February 28, 2022

Fiscal period ended August 31, 2021

Million yen	%	Million yen	%	Million yen	%	Million yen	%
10,590	(1.1)	5,756	(3.6)	5,174	(2.2)	5,174	(2.1)
10,707	12.7	5,974	12.4	5,288	13.3	5,287	13.3

Net income per unitFiscal period ended February 28, 2022

Fiscal period ended August 31, 2021

Yen 2,898 3,041

Ratio of net income on	Ratio of ordinary	Ratio of ordinary
unitholders' equity	income on total assets	income on operating
(ROE)	(ROA)	revenues

%

% 2.4

%

1.3 48.9

2.6

1.4 49.4

(2) Distributions

Distributions

per unit

(excludingTotal amount of distributionsDistributions per unit

Distributions in Total amount of (including those

those in excess

of retained

earnings per

unit)

Yen

(excluding those in excess of retained earnings) Million yen

excess of retained earnings per unit

Fiscal period ended February 28, 2022

2,899

Fiscal period ended August 31, 2021

2,962

5,174 5,287

Yen 238 231

distributions in excess of retained earnings Million yen

in excess of retained earnings per unit)

424 412

Yen 3,137 3,193

Total amount of distributions (including those in excess of retained earnings) Million yen

Payout ratio %

Net assets distribution ratio

%

5,599 5,699

100.0 2.4

100.0 2.5

Note 1. Due to the issuance of new investment, the payout ratio in the fiscal period ended August 31, 2021 was calculated according to the following formula, shown rounded to two decimal places.

Payout ratio = total amount of distributions (excluding those in excess of earnings per unit) ÷ net income × 100 Note 2. The net assets distribution ratio was calculated according to the following formula.

Distributions per unit (excluding those in excess of retained earnings per unit) / [(net assets per unit at the beginning of the fiscal period + net assets per unit at the end of the fiscal period) ÷ 2] × 100

Note 3. The total amount of distributions in excess of retained earnings was considered to be a refund of investment, which, for tax purposes, falls under a category of distribution as a reduction in unitholders' capital.

Note 4. The rates of reduction in retained earnings due to distributions in excess of retained earnings (a refund of investment categorized as a reduction in distribution from unitholders' capital for tax purposes) in the fiscal period ended August 31, 2021 and February 28, 2022 were 0.002 and 0.003, respectively. Note that the calculation of the rates of reduction in retained earnings are based on Article 23, Paragraph 1, No. 4 of the Order for Enforcement of the Corporation Tax Act.

(3) Financial PositionTotal assets

Net assets

Million yen

Million yenUnitholders' equity ratio %Net assets per unit

YenFiscal period ended February 28, 2022

Fiscal period ended August 31, 2021

385,248 385,675

214,385 214,911

55.6 120,104

55.7 120,398

(4) Cash Flows

Cash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesCash and cash equivalents at period end

Million yen

Million yen

Million yen

Million yenFiscal period ended February 28, 2022

8,081

(1,046)

(6,410) 25,088

Fiscal period ended August 31, 2021

8,706

(39,709)

33,665 24,463

2. Forecasts for the Fiscal Periods Ending August 31, 2022 (March 1, 2022 to August 31, 2022) and February 28, 2023(September 1, 2022 to February 28, 2023)

(% figures show period-over-period change)

Operating revenuesOperating incomeOrdinary incomeMillion yen % Million yen % Million yen

%Fiscal period ended August 31, 2022

10,694 1.0

• 5,627 (2.3) 5,031 (2.8)

  Distributions	Distributions
  per unit	Distributions	per unit
  (excluding those	in excess of	(including those
  in excess of	retained	in excess of
  retained earnings	earnings per	retained earnings
  Net income	per unit)	unit	per unit)
  Million yen

  Yen 2,817

  %

  Yen

  Yen

  • 5,030 (2.8)

    241 3,058

    Fiscal period ended February 28, 2023

    10,748 0.5

• 5,579 (0.8) 4,984 (0.9)

• 4,982 (0.9)

2,791

273 3,064

Reference: Forecasted net income per unit for the period ending August 31, 2022: 2,817 yen ; forecasted net income per unit for the period ending February 28, 2023: 2,791 yen

* Other

(1) Changes in accounting policies, changes in accounting estimates and retrospective restatements

• (i) Changes in accounting policies due to revisions to accounting standards and other regulations : Yes

• (ii) Changes in accounting policies other than (i) above : None

• (iii) Changes in accounting estimates

• (iv) Retrospective restatements

: None : None

Note: Please see the "Notes on Changes in Accounting Policies" on page 19.

(2) Total number of investment units issued and outstanding

Fiscal period ended February 28, 2022

Fiscal period ended August 31, 2021

• (i) Total number of investment units issued and outstanding (including treasury units) at the end of the fiscal period

  1,785,000 units

  1,785,000 units

• (ii) Number of treasury units at the end of the fiscal period

-

-Note: Please see the "Notes on Per Unit Information" on page 28 for the number of investment units used as the basis for calculating net income per unit.

* Presentation of the status of implementation of audit procedures

At the time of the release of these financial results for the fiscal period, auditing procedures for financial statements pursuant to the Financial Instruments and Exchange Act have not been completed.

* Explanation of appropriate use of the forecast of financial results and other matters of special note

The forecasts and other forward-looking statements presented in this material are based on information currently available to LLR and certain assumptions LLR deems to be reasonable. Actual results may differ materially from these forecasts due to a variety of factors. In addition, these forecasts do not guarantee the above distribution amounts.

For further details about the assumptions used in the forecasts above, please refer to the "Forecast Assumptions for the Fiscal Periods Ending August 31, 2022 and February 28, 2023" stated on page 5 below.

END

【Table of Contents】

• 1. Management Policy and Management Status

  (1) Management Status ………………………………………………………………………………………………………… 2

  (2) Investment Risks …………………………………………………………………………………………………………… 9

• 2. Financial Statements

(1)Balance Sheet ……………………………………………………………………………………………………………… 10

3.

(2)	Income Statement ……………………………………………………………………………………………………………	12
(3)	Statement of Unitholders' Equity ……………………………………………………………………………………………	13
(4)	Statements related to Distributions …………………………………………………………………………………………	15
(5)	Statements of Cash Flows …………………………………………………………………………………………………	17
(6)	Notes with respect to Going Concern Assumptions ………………………………………………………………………	18
(7)	Notes on Matters concerning Significant Accounting Policies ……………………………………………………………	18
(8)	Notes on Changes in Accounting Policies ... ………………………………………………………………………………	19
(9)	Notes to the Financial Statements …………………………………………………………………………………………	20
(10)	Changes in Number of Investment Units Issued and Outstanding …………………………………………………………	29
31
44

Reference Information

• (1) Information on Price of the Managed Assets ………………………………………………………………………………

• (2) Capital Expenditures on Portfolio Assets …………………………………………………………………………………

1.

Management Policy and Management Status

(1) Management Status

(Overview of the Fiscal Period)

• (i) Significant developments of the investment corporation

  With LaSalle REIT Advisors K.K. as the organizer, LaSalle LOGIPORT REIT (LLR) was established on October 9, 2015, pursuant to the Investment Trusts Act, and was listed on the J-REIT section of the Tokyo Stock Exchange (Securities Code: 3466) on February 17, 2016.

  The financial statements for the fiscal period ended February 28, 2022 (12th fiscal period) were recently completed, and the total number of issued and outstanding investment units as of the end of this fiscal period is 1,785,000 units.

• (ii) Investment Environment and Management Performance

  In the current fiscal year, the Japanese economy remained uncertain due to downward pressure on the economy caused by the sixth wave of the COVID-19 pandemic led by the Omicron variant, and the prolonged supply constraints, particularly in the shortage of semiconductors. In addition, commodity prices such as crude oil prices have risen significantly due to Russia's invasion of Ukraine. Uncertainty of the future economic outlook is increasing, including the impact from global supply chain disruptions and weakening of Japanese yen. In financial markets, interest rates in Japan are also on an uptrend, as monetary policy normalization by the U.S. Federal Reserve Board (FRB) and other central banks progresses. Although the Bank of Japan has indicated that it will continue with large-scale monetary easing, the future direction is closely watched amid continued uncertainty about the outlook for domestic prices, foreign exchange rates, and other factors.

  In the leasing market for prime logistics facilities, there is a continuing trend toward consolidation and integration of older locations primarily by third-party logistics (3PL) operators, as well as new expansions and diversification of space usage. The further establishment of a nationwide logistics network is expected to also support the expansion of structural demand for prime logistics facilities. In this environment, in the Tokyo metropolitan area logistics facility market, rental demand from a wide range of industries continues, despite a record-high level of new supply and a moderate increase in the vacancy rate to nearly reach the 2% level. In addition, the vacancy rate in the Kinki region continues to decline, and the current vacancy rate is being maintained at the 1% level, resulting in a further tightening of supply and demand.

  Under these conditions, LLR steadily managed its 19 properties (total acquisition price 357,829 million yen, leasable floor area 1,480,909 square-meters) and the overall weighted average portfolio occupancy rate through the fiscal period was in a strong position at 99.0%. LLR's portfolio has 173 tenants as of the end of this fiscal period ended February 28, 2022 and aims for further tenant diversification.

• (iii) Overview of Procurement of Funds

  In the fiscal year, LLR repaid loans and redeemed investment corporation bonds totaling 7,550 million yen. On December 21, 2021, LLR procured the same amount of new borrowings in conjunction with the redemption of the fourth investment corporation bonds of 1,000 million yen. In addition, together with the redemption of the first investment corporation bonds of 4,000 million yen due on February 15, 2022, LLR made the prepayment on February 14 of 1,850 million yen in loans due on February 28 and March 1. In this refinancing, LLR newly issued the eighth investment corporation bonds (Special pari passu conditions among specified investment corporation bonds) (Green Bonds) of 2,000 million yen and newly borrowed 3,850 million yen.

  As far as the 12th fiscal period was concerned, at the end of the current fiscal period, the balance of interest-bearing debt of LLR was 160,620 million yen and LTV was 41.7%.

The change of rating was announced in the current period, the status of LLR's credit ratings assigned as of February 28, 2022 was as follows.

Credit Rating Agency Rating Type Rating Rating Outlook

Stable
JCR
(Japan Credit Rating Agency Ltd.)	Bond Rating (Note) AA	-

Long-term issuer rating

AANote: This was the rating for the 2nd, 3rd, 5th, 6th, 7th and 8th Unsecured Investment Corporation Bonds.

(iv) Overview of Business Performance and Distributions

The operating period for the current fiscal period was 181 days from September 1, 2021 to February 28, 2022. During current fiscal period, LLR generated operating revenues of 10,590 million yen, operating income of 5,756 million yen, ordinary income of 5,174 million yen, and net income of 5,174 million yen.

Furthermore, through application of Article 67, Provision 15(1) of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including subsequent amendments), LLR intends to include distributions as deductible expenses and distribute the entire amount of unappropriated retained earnings (excluding fractional distribution amounts of less than one yen per investment unit). As a result, the distribution amount per investment unit is 2,899 yen.

In addition to this, in accordance with the distribution policy provided for in LLR's Articles of Incorporation, in principle LLR makes ongoing distributions in excess of retained earnings each fiscal period ("Ongoing Distributions in Excess of Retained Earnings") (Note 1). Furthermore, in addition to Ongoing Distributions in Excess of Retained Earnings, LLR may make distributions, of an amount that it determines, as a distribution of the amount of temporary excess profit, but only for the purpose of equalizing the amount of distributions per unit (Note 2) in the event there are one-time reductions up to a certain amount of distributions per unit as a result of: (i) financing activities such as the issuance of new investment units, the issuance of short-term corporate bonds, or borrowings; (ii) large-scale repairs resulting from earthquakes and other natural disasters or fires and other accidents; (iii) payments for the settlement of lawsuits; (iv) losses on sales of real estate; or (v) other reasons.

In the current fiscal period, LLR distributed 424 million yen as an Ongoing Distribution in Excess of Retained Earnings, an amount equivalent to approximately 30% of the 1,419 million yen that was the amount resulting from deducting the total amount of the accumulated depreciation recorded as of the last day of the previous fiscal period from the total amount of accumulated depreciation for the current fiscal period. As a result, the distribution in excess of retained earnings per unit in the current fiscal period was 238 yen (Note 3).

Note 1. LLR's policy is to make distributions in excess of retained earnings each fiscal period after careful consideration is given to alternative uses of cash, such as execution of repairs, capital expenditures, profit generated during the fiscal period, the amount available for distribution, repayment of debts, along with factoring in the prevailing economic environment, the real estate market, the competitiveness of its acquired assets as well as its overall financial condition. Note 2. The amount of distributions which are the sum of the regular distributions in excess of retained earnings and the additional distributions in excess of our retained earnings when additional distributions in excess of retained earnings are made are limited to 60% of the amount resulting from deducting the total amount of the accumulated depreciation recorded as of the last day of the previous fiscal period from the total amount of accumulated depreciation calculated as of the last day of the relevant calculation period.

Note 3. The engineering report for each property prepared by building condition surveyors' estimates that the amount of anticipated semi-annual average of emergency or short-term repair and maintenance expenses and medium- to long-term repair and maintenance expenses is 282 million yen. LLR determines to make distributions in excess of retained earnings, considering that the amount of distributions in excess of retained earnings maintain the value of its portfolio and its financial stability taking into account macroeconomic environment, trends in the real estate market and real estate leasing industry and its financial conditions. Please note that the amount of distributions in excess of retained earnings will be deducted from the balance of LLR's unit holders' equity upon payment.

(Outlook for the Future)

(i)Future Management Policy and Issues to Address

In this environment, LLR will seek to enhance unitholder value through stable long-term growth in cash flows and asset values by engaging in the following activities.

With respect to its external growth strategy, LLR will make the most of the property information provided by the LaSalle

Group (Note 1) as well as LaSalle REIT Advisors' unique capabilities in obtaining property information. Under its sponsor