Japan Logistics Fund, Inc.

Japan Logistics Fund, Inc. Presentation Material for the Fiscal Period ended July 2016 Autumn 2016 Mitsui & Co., Logistics Partners Ltd. http://8967.jp/eng/

Table of Contents Section 1 Executive Summary 3 2 Chapter 1: Fiscal Period ended July 2016 4 3 Chapter 2: Toward achieving stable + Growth 2.0 10 4 Chapter 3: Earnings Overview and Forecasts 19 5 Chapter 4: Market Overview 24 6 To Our Investors 30 2

Executive Summary Results for Period Ended July 2016 Shinkiba II: Acquired a prime property at an appropriate price OBR #3 Kiyosu: Under contract to be 100% pre-let OBR #4 Kasugai: A new OBR working together with a construction company stable + Growth 2.0 Environment: Substantial change for J-REITs and logistics properties External growth: Continuing to buy properties at appropriate prices both by engaging in the acquisition market and by leveraging our own channels Firstcomers advantage: Flexible acquisition strategy adjusting to the real estate market environment Internal growth: Continuing to execute OBR projects that achieve market-beating profitability DPU July 2016 Results: 4,048 DPU January 2017 Forecast: 4,040 DPU July 2017 Forecast: 4,100 DPU * OBR = Own Book Redevelopment refers to the on-balance-sheet redevelopment of properties owned by JLF. Executive Summary 3

Chapter 1 Fiscal Period Ended July 2016

Progress of stable + Growth 2.0 Main scenario: Continue stability and growth When market turns: Pursue upside Continue mid-term plan with quantitative DPU targets and a timeline for reaching those targets amid an uncertain outlook for financial and real estate markets (Yen) 5,000 stable stable + Growth stable + Growth 2.0 4,500 When market turns: Leverage contrarian investing to pursue upside Main scenario: EPU target growth rate 2.0% CAGR 3-year target 4,280 4,000 4,048 (Actual) 4,040 4,100 (Forecast) (Forecast) Floor: About 3,800 3,500 Floor: 3,600 3,000 Floor: 3,200 DPU 2012/07 2013/01 2013/07 2014/01 2014/07 2015/01 2015/07 2016/01 2016/07 2017/01 2017/07 2019/01 (FP 14) (FP 15) (FP 16) (FP 17) (FP 18) (FP 19) (FP 20) (FP 21) (FP 22) (FP 23) (FP 24) (FP 27) * Figures through Fiscal Period 17 (ended Jan 2014) have been adjusted for stock splits. Fiscal Period ended July 2016 : Chapter 1 5

Results Ended July 2016 Newly Acquired Asset M-31 Shinkiba Logistics Center II Expected date of delivery *1 March 16, 2017 Location Gross leasable area (GLA) Main tenant(s) Number of tenants Koto-ku, Tokyo 38,512.20 m 2 DHL Japan Occupancy rate 47.3% Built in: August 2015 1 About 6.0km Negotiated price before the logistics property market overheated and decided the acquisition of a prime property at an appropriate price About 1.8km Advantages of the property Excellent access to the heart of Tokyo, Japan's largest consumer market. Only about 6 km from Tokyo Station. Very convenient transit location: about 1.8 km to the Shinkiba on/off-ramp of the Tokyo Metropolitan Expressway Bay Shore Route. Commuting distance from Shinkiba Station makes securing labor force easy Planned acquisition price Appraisal value (as of July 25, 2016) 15,270 million 17,000 million Discount versus appraisal value 10.2% Appraisal NOI yield (based on planned acquisition price) *2 5.0% Current NOI yield (based on planned acquisition price) *3 2.4% Target tenant segments Home delivery operators who set priority on lead time Retailers who supply city-center retail sites Tenants who handle high value-added products, such as luxury brands, electronics or pharmaceuticals Floors 1 and 2 are in operation as one of DHL's largest global gateways Acquired at an appropriate price Started price negotiations 3 years ago (2013) Sponsor developed the property *1 This property acquisition 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. *2 This is the anticipated NOI yield calculated by the asset manager based on the net operating income amount (assuming 100% occupancy) used in the appraisal document to estimate the property value under the direct capitalization method. *3 This is the anticipated NOI yield calculated by the asset manager based on the current 47.3% occupancy rate. Floors 3 and 4 are currently vacant but under negotiations with multiple tenant candidates Aiming for 100% occupancy by the acquisition date Fiscal Period ended July 2016 : Chapter 1 6

Results Ended July 2016 OBR #3 Kiyosu Logistics Center The benefits of this OBR project After OBR Property overview Location Acquisition price Under contract to be fully pre-let, leveraging the asset manager's know-how and leasing capabilities Kiyosu, Aichi Gross leasable area (GLA) 20,438.09 m 2 Planned completion January 2017 Number of tenants 1 (Planned) occupancy rate 100% 3,010 million (Land: 685 million and Bldg.: 2,325 million) Tenant overview Acquisition price +2,325 million yen (+339.4%) 685 million Rental NOI After OBR *1 (Land + building) +214 million yen (+817.5%) 26 million NOI yield 3,010 million 240 million 8.0% *2 Before OBR (Land) (Market yield 4.9% *3 ) +4.2% 3.8% Tenant Industry Cargo Term of lease Mitsubishi Electric Logistics Corporation Motor truck transportation business Machine-fabricated product, equipment and machinery 3 years Background to the contract Located near major highways and trunklines. Good access to Nagoya Port. Close to densely populated areas, making it easy to secure labor force. The convenience of transportation and ease of securing a labor force matched the needs of Mitsubishi Electric Logistics, which was looking for an export site. Quickly brought the contract to conclusion by promptly assessing the tenant s needs through leveraging MLP's own network. *1 Pre-OBR figures were calculated by annualizing results from the FP ended July 2015. Post-OBR figures reflect the current plan and subject to change. *2 This is NOI yield base on the acquisition price. *3 This is the direct capitalization rate used for the appraisal value of the Komaki Logistics Center as of the end of the FP ended July 2016. Fiscal Period ended July 2016 : Chapter 1 7

Results Ended July 2016 OBR #4 Kasugai Logistics Center The benefits of this OBR project After OBR Property overview Location Acquisition price Leveraging the asset manager's business scheme conceptualization abilities and strong tenant relationships Kasugai, Aichi Gross leasable area (GLA) 22,246.29 m 2 Planned completion May 2017 Building acquisition timing 3,430 million (Land: 830 million and Bldg.: 2,600 million) In principle, 1 year after construction is done How the acquisition price was decided Acquisition price +2,600 million yen (+313.3%) 830 million Rental NOI After OBR (Land + building) +169 million yen (+393.1%) 43 million NOI yield 3,430 million 212 million 6.2% *2 Before OBR (Land) (Market yield 4.9% *3 ) +1.0% 5.2% Planned acquisition price 2,749 million (= The price indicated in the acquisition contract) Tenant overview Tenant Cargo Term of lease 7 years Settsu Warehouse Co., Ltd. Food products, etc. Rental revenue realized by the business partner Expected acquisition price *4 2,600 million In the event the new building generates rental revenue for the business partner (builder and seller) before the building is acquired by JLF, the amount of the rental revenue may be deducted from the acquisition price. Background to the contract The operator is an existing JLF tenant that works in the warehousing business primarily in the Kansai region (Osaka area). We proposed this property to the tenant because we were aware of the tenant's needs to expand into the greater Nagoya area. The property is slated to become the company's major 3PL facility in the greater Nagoya area. *1 Pre-OBR figures were calculated by annualizing results from the FP ended July 2015. Post-OBR figures reflect the current plan and subject to change. *2 This is the anticipated NOI yield calculated by the asset manager based on the expected building acquisition price of 2,600 million yen. *3 This is the direct capitalization rate used for the appraisal value of the Komaki Logistics Center as of the end of the FP ended July 2016. *4 Based on the lease commitment agreement currently concluded and subject to change. Fiscal Period ended July 2016 : Chapter 1 8

Results Ended July 2016 Stability in Earnings and Financials Efforts to enhance DPU stability Stability of earnings base Stability of financial standing Occupancy rate Average remaining life of leases Average NOI yield of our portfolio Better balance Percentage of debt on fixed rates *2 Average remaining maturity on debt Average debt cost 98.2% 6.6 years 6.5% 100.0% 5.4 years 1.0% Lease expiration ladder (based on annual rental revenue) Debt maturity (redemption) ladder (%) (Billion yen) 10 10.0 8 6 Interest-bearing liabilities 717 billion 5.0 4 Loan Investment Corporation Bond 2 0.0 17/01 (FP 23) 19/07 (FP 28) 22/01 (FP 33) 24/07 (FP 38) 27/01 (FP 43) 29/07 (FP 48) 32/01~ (FP 53~) 0 17/01 (FP 23) 19/07 (FP 28) 22/01 (FP 33) 24/07 (FP 38) 27/01 (FP 43) 29/07 (FP 48) 32/01~ (FP 53~) Leases signed with tenants since February 2016 Property name Tenant Lease description Chiba Kita Hitachi Transport Lease renewal (5 years) Souka Not disclosed New tenant (5 years) Kashiwa Not disclosed New tenant (10 years) Kiyosu Mitsubishi Electric Logistics New lease commitment (3 years) Kasugai Settsu Warehouse New lease commitment (7 years) JLF's first privately placed bond issuance (February 2016) Long-term loan Bank of Tokyo Mitsubishi UFJ Amount: Term: 1.7 billion 5 years Debt cost: 1.28% #4 th Investment Corporation Bond (Private offering to qualified institutional investors) Amount: Term: 1.7 billion 12 years Debt cost: 0.57% *1 Figures as of September 12, 2016 *2 Percentage of interest-bearing liabilities for which the debt cost is fixed. Private bond placement Longer maturity Lower funding cost Diversified funding channels Acquired 4-star certification from DBJ Green Building (Yachiyo Logistics Center) Fiscal Period ended July 2016 : Chapter 1 9

Chapter 2 Toward Achieving stable + Growth 2.0

Growth strategy for stable + Growth 2.0 A unique strategy that seeks independent DPU growth that is not swayed by market changes 4 Conservative LTV level 1 Property acquisitions at appropriate prices Contrarian investing 1 2 Property acquisitions at appropriate prices Contrarian investing Continued execution of OBR projects as a means to independent growth 3 Increased resistance to environment changes through growth in unrealized gain 3 2 Large unrealized gain OBR 4 Secure borrowing capacity to fund future growth Toward Achieving stable + Growth 2.0: Chapter 2 11

Environment for J-REITs and Logistics Properties The environment surrounding J-REITs and logistics properties has changed substantially over the past 3 years Financial market Financial environment Long-term interest rate *1 (10-year JGB yield) TSE J-REIT Index *1 Competitors (Logistics REITs) January 2013 (stable + Growth) Monetary easing September 2016 (stable + Growth 2.0) Negative interest rates 0.833% -0.052% 1,141.37 points 1,823.91 points 2 5 Yields sought by real estate investors *3 (%) 5.8 5.6 5.4 5.2 5.0 4.8 4.6 4.4 4.2 4.0 3.8 05/04 06/04 07/04 08/04 09/04 10/04 11/04 12/04 13/04 14/04 15/04 16/04 *3 Expected yield on a multitenant logistics property located in the Tokyo Bay Area Source: Prepared by the asset manager based on information from CBRE s Quarterly Survey to Japanese real estate investors Logistics market Stock of large-scale logistics properties for lease *2 Players in development Tenant demand for logistics properties About 11.8 million m 2 About 17.2 million m 2 Entry by big developers 3PL and e-commerce Entry by trading companies, life insurers and railroad operators E-commerce penetration of retail *1 Closing prices as of January 4, 2013, and September 1, 2016, respectively. *2 Calculated by the asset management company based on the supply of logistics facilities for lease with a GFA of 5,000 m 2 or more. The figures for September 2016 are calculated based on figures through the end of June 2016. Source: CBRE Environmental changes Potential for prolonged monetary easing Structural changes to the environment surrounding logistics properties Logistics properties as a core asset Intensified competition among J-REITs Toward Achieving stable + Growth 2.0: Chapter 2 12

Acquisition Strategy Efforts to grow externally in alignment with the real estate market environment Continue to acquire at appropriate prices Secured borrowing capacity to position JLF for future acquisition opportunities Engaging in the acquisition market Appropriate pricing = Base rate + Appropriate risk premium unique to each property Appropriate risk premium unique to each property Cash flow (CF) certainty Leveraging our own channels Promoted off-market transactions Generated acquisition opportunities Contrarian investing Growth in unrealized gain Stabilized existing portfolio Sound balance sheet The base rate moves with the market but our requirments for the certainty of CF remains constant. Efforts in the acquisition market There are opportunities to acquire largescale assets to grow rapidly Profitability varies substantially depending on the market Continue to focus on expanding the pipeline by leveraging the AM's expertise. Independent sourcing It takes time to set up acquisitions, but creative structuring can lead to high profitability Risk tolerance dictates smaller deals Maintain borrowing capacity while we continue to look for signs of a turn in the market. Contrarian investing Acquisitions of large assets with high profitability can grow DPU substantially Need to judge appropriately based on a midto long-term market outlook Aim for sustainable DPU growth through continued property acquisition in alignment with the market environment Toward Achieving stable + Growth 2.0: Chapter 2 13

Initiatives to Uncover Acquisition Opportunities Combining sponsor support and AM knowhow to uncover acquisition opportunities In progress In progress Answering seller needs through staged acquisitions T-8 Tajimi Logistics Center In progress In progress Sponsor pipelines M-31 Shinkiba Logistics Center II Sale & leaseback to existing tenants T-7 Fukuoka Hakozaki Futo Logistics Center M-24 Shin-Koyasu Logistics Center Co-ownership with subsidiaries of main tenant(s) Joint investments with construction companies T-10 Kasugai Logistics Center M-23 Kashiwa Logistics Center II (land) Joint investments with leasing companies In progress Properties acquired by JLF since 2013 Discount versus appraisal value 8.7% (15 properties. Total acquisition value 76.2 billion) Logistics properties acquired by other J-REITs since 2013 * Discount versus appraisal value 1.9% * Calculated based on logistics property acquisitions announced by J-REITs other than JLF from January 1, 2013, through August 31, 2016. Among those properties for which the acquisition was not completed by August 31, 2016, includes only those for which the acquisition price had been set. Toward Achieving stable + Growth 2.0: Chapter 2 14

Leveraging Firstcomers Advantage Enabling external growth in alignment with the real estate market environment by leveraging two firstcomers advantages Unrealized gain ( billion) 90.0 80.0 Reference: J-REIT average* 1 Unrealized gain as % of portfolio: 10.6% 70.0 28.6% 30.1% 33.2% 66.0bil. 36.0% 70.9bil. (%) 40.0 35.0 30.0 Portfolio NOI yield (based on book value) *2 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% End of Period ended July 2016 6.5% 60.0 50.0 40.0 30.0 22.1% 32.9bil. 25.4% 39.3bil. 23.5% 42.6bil. 24.9% 46.6bil. 52.5bil. 57.6bil. 25.0 20.0 15.0 3.5% 3.0% JLF Logi-REIT A Logi-REIT B Logi-REIT C Logi-REIT D J-REIT Avg. *2 Figures for Logi-REITs were calculated by the asset management company based on information disclosed by the Logi-REITs from the latest available period-end. Excludes JLF. The figure for the J-REIT Avg. were calculated by taking weighted average book values calculated by the asset management company for those REITs with a track record of 6 months, based on data publicly available as of August 31, 2016. (Reference) Profitability of additional acquisitions and portfolio NOI yield (based on book value) *3 20.0 10.0 10.0 5.0 If acquired at 5.5% on average 6.2% If acquired at 5.0% on average 6.0% 0.0 13/01 (FP 15) 13/07 (FP 16) 14/01 (FP 17) 14/7 (FP 18) 15/01 (FP 19) 15/07 (FP 20) 16/01 (FP 21) 16/07 (FP 22) 0.0 If acquired at 4.5% on average 5.8% If acquired at 4.0% on average 5.6% Unrealized gain (lhs) Unrealized gain as % of portfolio (rhs) *1 Figures are average values calculated by the asset management company based on data on other REITs publicly available as of August 31, 2016. Excludes JLF. *3 Represents the NOI yield based on the portfolio as of the end of July 2016 in the event that additional acquisitions were made until portfolio book value reached 300 billion. This is merely an estimate and does not constitute a guarantee of future NOI yields. Toward Achieving stable + Growth 2.0: Chapter 2 15

Secured borrowing capacity Positioning to both stabilize and grow DPU Controlling LTV Highest issuer rating among J-REITs (Yen) (%) 4,400 45.0 4,280 4,000 3,600 26.7% 4,040 4,100 Target LTV under the main scenario of stable + Growth 2.0 LTV: 35.0% 40.0 35.0 30.0 25.0 JCR AA+(Rating outlook: Stable) R&I AA(Rating outlook: Stable) Highest among J-REITs Highest among J-REITs 3,200 14/07 (FP 18) 15/01 (FP 19) 15/07 (FP 20) 16/01 (FP 21) 16/07 (FP 22) 17/01 (FP 23) 17/07 (FP 24) (Forecast)(Forecast) ~ ~ 20.0 19/01 (FP 27) (Forecast) Moody s A1(Outlook: Stable) Real estate sector: Highest in the world DPU (lhs) LTV (Appraisal base, rhs) Secured borrowing capacity by controlling LTV at a conservative level Used as tool to achieve continued external growth Targeting LTV 35% About 34.0 billion Targeting LTV 40% About 59.0 billion Portfolio growth rate: +16.0% * Portfolio growth rate: +27.9% * * Percentage of total acquisition value of portfolio as of the end of July 2016. Toward Achieving stable + Growth 2.0: Chapter 2 16

Criteria for and Benefits of OBR Projects Moving forward, we continue to aim to execute an OBR project every 2-3 years Criteria for executing OBR projects Good location Small writedown on fixed assets due to building age Better profitability than if bought from market Significant untapped FAR OBR #1 Daito Logistics Center OBR #2 Yachiyo Logistics Center OBR #3 Kiyosu Logistics Center OBR #4 Kasugai Logistics Center NOI yield after OBR 9.8% (Actual for Period Ended July 2011) NOI yield after OBR 6.7% (Actual for Period Ended January 2016) NOI yield after OBR 8.0% (Expected *1 ) NOI yield after OBR 6.2% (Expected *1 ) Able to achieve better profitability than if bought from market Will continue to implement OBR projects moving forward Currently about 2-3 OBR-candidate properties *2 Potential to add about 150,000 m 2 to gross floor area (equivalent to about 14% of the portfolio) *3 *1 This is the expected NOI yield calculated by the asset manager based on the current plan. *2 Represents the number of properties considered to be candidates for OBR projects. Does not imply the future redevelopment of the properties has been decided. *3 Represents an estimate of the maximum allowable building size per floor-to-area zoning allowances for current OBR candidates. May differ from the actual area resulting from any real redevelopment project. Toward Achieving stable + Growth 2.0: Chapter 2 17

Resistance to Environmental Changes Rich unrealized gain and low LTV gives us the ability to withstand changes to the market environment Unrealized gain or loss ( billion) 1,500 1,000 500 0-500 -1,000 How far would appraisal values need to drop to eliminate portfolio unrealized gain? JLF 26.5% vs. J-REITs average* 10.5% 10.5% J-REIT Avg.(lhs) JLF(rhs) 26.5% Unrealized gain or loss ( billion) 80 60 40 20 0-20 -40-60 (LTV) 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% How far would appraisal values need to drop to push LTV up to 50%? JLF 46.5% vs. J-REITs average* 15.1% 15.1% J-REIT Avg. JLF 46.5% -1,500-80 0% 5% 10% 15% 20% 25% 30% (Appraisal depreciation) 0.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% (Appraisal depreciation) A portfolio that can absorb even substantial changes in the real estate market environment * Figures were calculated by the asset management company based on information disclosed by other REITs from the latest available period-end. Excludes JLF. Toward Achieving stable + Growth 2.0: Chapter 2 18

Chapter 3 Earnings Overview and Forecasts

Earnings Overview Ended Jan. 2016 Ended Jul. 2016 Period-on-period Ended Jul. 2016 Vs. forecast from FP 21 actual FP 22 actual change FP 22 forecast (as of 3/14/2016) beginning of period (A) (B) (B-A) (C) (B-C) Operating revenue (Million yen) 7,554 7,584 +30 7,592-7 NOI (Million yen) 6,420 6,404-15 6,405 0 Depreciation/Loss on write-offs of non-current assets (Million yen) 1,725 1,727 +1 1,741-14 Net income (Million yen) 3,548 3,562 +13 3,546 +15 DPU (Yen) 4,033 4,048 +15 4,030 +18 FFO per unit (Yen) 5,993 6,010 +17 6,000 +10 Investment units outstanding (Units) 880,000 880,000-880,000 - Number of properties (Properties) 42 42-42 - Appraisal values (Million yen) 264,762 268,150 +3,388 Unrealized gain as % of portfolio (%) 33.2 36.0 +2.8 Interest-bearing liabilities (Million yen) 71,700 71,700-71,700 - LTV (%) 27.1 26.7-0.4 27.7 BPS (Yen) 146,127 146,142 +15 NAV per unit (Yen) 221,149 226,739 +5,591 Vs. previous period Full-period contribution from acquisitions made in previous period (4 properties including Chiba Kita) Expensing of property and other taxes on 6 newly acquired properties Changes in existing properties (tenant turnover, etc.) Decrease in dividends from silent partnership(s) Change in G&A costs. Lower interest costs. Decline in costs associated with issuance of investment units +54-62 -8-9 +2 +37 Vs. forecast from beginning of period Lower costs from writedowns on fixed assets +14 Earnings overview/forecasts: Chapter 3 20

Forecasts Ended Jul. 2016 Ending Jan. 2017 Period-on-period Ending Jul. 2017 Period-on-period FP 22 actual FP 23 forecast* change FP 24 forecasts* change (A) (B) (B-A) (C) (C-B) Operating revenue (Million yen) 7,584 7,678 +93 7,722 +44 NOI (Million yen) 6,404 6,386-18 6,550 +163 Depreciation/Loss on write-offs of non-current assets (Million yen) 1,727 1,704-22 1,789 +84 Net income (Million yen) 3,562 3,555-6 3,607 +51 DPU (Yen) 4,048 4,040-8 4,100 +60 FFO per unit (Yen) 6,010 5,970-40 6,130 +160 Investment units outstanding (Units) 880,000 880,000-880,000 - Number of properties (Properties) 42 42-43 +1 Appraisal values (Million yen) 268,150 Interest-bearing liabilities (Million yen) 71,700 71,700-86,700 +15,000 LTV (%) 26.7 * These forecasts have been calculated based on certain assumptions made as of September 12, 2016, and are subject to change as a result of factors including fluctuations in rental revenue resulting from tenant turnover, the purchase or sale of real estate, and the issuance of additional investment units. Furthermore, these forecasts are no guarantee of the amount of cash distributions. FP 23 forecast (vs. previous period results) FP 24 forecast (vs. previous period forecast) Existing properties (tenant turnover, etc.) Higher costs from repair & maintenance. Lower costs from depreciation and writedowns on fixed assets. Lower G&A expenses Non-operating expenses (higher interest costs, etc.) +1 +2 +2-13 New acquisition (Shinkiba II) Completion of construction of building for Kiyosu OBR Existing properties (tenant turnover, etc.) Lower costs from repair & maintenance, depreciation, and writedowns on fixed assets, etc. Higher G&A expenses Non-operating expenses (higher interest costs, etc.) +102 +113-173 +35-17 -9 Earnings overview/forecasts: Chapter 3 21

Reference: Portfolio Map A portfolio of 43 properties with an AUM of 227.8 billion* * Includes Shin-Kiba Logistics Center II, which is slated to be acquired in March 2017. (Planned acquisition price: 15,270 million). Earnings overview/forecasts: Chapter 3 22

Memo Earnings overview/forecasts: Chapter 3 23

Chapter 4 Market Overview

Supply & Demand Balance in Logistics Properties 4 Major Metropolitan Area (Tokyo, Osaka, Nagoya, Fukuoka) Kinki Area (Osaka) (Thousand m 2 ) 3,600 Forecast 12% (Thousand m 2 ) 1,800 Forecast 12% 3,000 10% 1,500 10% 2,400 8% 1,200 8% 1,800 6% 900 6% 1,200 4% 600 4% 600 2% 300 2% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 New Supply Area New Demand Area Vacancy Rate 0% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 New Supply Area New Demand Area Vacancy Rate 0% Tokyo Metropolitan Area Chubu Area (Nagoya) (Thousand m 2 ) 2,000 1,500 Forecast 9% 8% 7% 6% (Thousand m 2 ) 300 250 200 Forecast 18% 15% 12% 1,000 5% 4% 150 9% 500 3% 2% 1% 100 50 6% 3% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 New Supply Area New Demand Area Vacancy Rate 0% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 New Supply Area New Demand Area Vacancy Rate 0% (Source) CBRE Market Overview: Chapter 4 25

Vacancy Rate by Logistics Property Types (Tokyo Metropolitan Area) Vacancy Rate by Logistics Property Types (w/ GFA larger than 5,000m 2 ) (Reference) Our Portfolio (as of the end of Jul. 2016) 25% Land 7.1% LMT 16.7% 20% 15% By the number of properties Non-LMT 76.2% 10% Land 6.4% LMT 24.5% 5% By GFA *2 0% Non-LMT 69.1% 06/03 06/09 07/03 07/09 08/03 08/09 09/03 09/09 10/03 10/09 11/03 11/09 12/03 12/09 13/03 13/09 14/03 14/09 15/03 15/09 16/03 LMT*1 Non-LMT *1 LMT (Large Multi-Tenant properties) refers to multi-tenant type logistics properties with gross floor area larger than 10,000 tsubo (about 33,000 m 2 ). (Source) CBRE *2 For properties with co-ownership, GFA is calculated by; Total GFA of the property x % of co-ownership Market Overview: Chapter 4 26

Logistics Development Market Heat Map* Tokyo Metropolitan Area Expected increase compared with 2015 stock x x x x x x Kinki Area (Osaka) Expected increase compared with 2015 stock x x x x x x * Figures were calculated by comparing the amount of stock as of the end of 2015 and expected new supply from 2016 to 2018 for logistics properties for lease larger than 5,000m2. (Source) CBRE Market Overview: Chapter 4 27

Development Plans for the Tokyo Metropolitan Area (Properties to be completed in or after September 2016) 2017 70,000m² Apr. 2017 49,000m² Jun. 2017 183,000m² Oct. 2018 140,000m² Feb. 2017 40,000m² Sep. 2016 86,000m² Spring 2017 32,000m² 2018 145,000m² Feb. 2018 35,000m² Jan. 2017 34,000m² Apr. 2017 52,000m² 2018 Total 317,000m² Feb. 2018 144,000m² May. 2017 34,000m² Mar. 2018 135,000m² Jan. 2017 32,000m² Spring 2017 38,000m² Jan. 2018 143,000m² Jul. 2017 148,000m² Sep. 2017 73,000m² Nov. 2017 104,000m² Mar. 2018 112,000m² Spring 2017 45,000m² Sep. 2016 37,000m² Sep. 2018 43,000m² 2017 38,000m² Feb. 2017 119,000m² Jul. 2020 97,000m² Aug. 2019 61,000m² Dec. 2017 64,000m² Sep. 2016 198,000m² Sep. 2016 38,000m² Spring 2018 41,000m² Sep. 2018 100,000m² Oct. 2017 54,000m² Nov. 2016 33,000m² Oct. 2017 88,000m² Oct. 2021 161,000m² 10km Legend Planned completion of construction Gross floor area Source: Prepared by the asset manager based on information from CBRE and Ichigo Real Estate Service. * Properties at least 30,000 m 2 scheduled for completion in or after September 2016. Market Overview: Chapter 4 28

Development Plans for the Kinki and Chubu Area (Properties to be completed in or after March 2016) Kinki Area (Osaka) Chubu Area (Nagoya) Sep. 2016 190,000m² Sep. 2017 243,000m² Jan. 2018 36,000m² Jan. 2017 42,000m² Dec. 2016 61,000 m2 Jul. 2017 88,000m² Aug. 2017 165,000m² Oct. 2017 280,000m² Apr. 2017 51,000m² Oct. 2017 90,000m² Summer 2018 156,000m² Dec. 2017 119,000m² May. 2017 74,000m² Kiyosu Logistics Center (JLF) Jan. 2017 / 20,438m² Jan. 2017 42,000m² Kasugai Logistics Center (JLF) May. 2017 / 22,246m² Feb. 2018 146,000m² Sep. 2017 62,000m² Jan. 2018 122,000m² Jul. 2018 35,000m² May. 2017 36,000m² Jan. 2018 77,000m² Nov. 2016 126,000m² Oct. 2016 31,000m² Mar. 2017 180,000m² Apr. 2017 116,000m² 5km Legend 2km Source: Prepared by the asset manager based on information from CBRE and Ichigo Real Estate Service. * Properties at least 30,000 m 2 scheduled for completion in or after September 2016. Planned completion of construction Gross floor area Market Overview: Chapter 4 29

To Our Investors

To Our Investors With an open mind In June, I took over as President and CEO of Japan Logistics Fund's asset manager, Mitsui & Co., Logistics Partners. By then already half a year had passed since the Bank of Japan introduced negative interest rates, and we have witnessed many things the text books don't prepare us for. The reality is that deflation is difficult to reverse. Just as there are many medicines designed to lower blood pressure, there are none that raise it. Not only is there no quick fix, but it appears as if deflation could linger longer. If interest rates remain low for a long time, we expect to continue to see capital inflows into the real estate market. Even under this environment, it is JLF's mission to provide an investment vehicle for our investors to have peace of mind in investing their money and enable them to save for future needs--for themselves, their family and their offspring. By managing the assets held by JLF, we hope to help our investors accumulate wealth for the future and secure for themselves a fuller life. Based on these beliefs, our employees manage the assets held by JLF with a great deal of motivation and expertise, as well as an open mind. The mid-term plan announced in the previous period, stable + Growth 2.0, is progressing well. Our OBR projects, which redevelop properties that remain on JLF's balance sheet, have delivered high profitability. The two OBR projects currently under way have already been fully pre-let. Also, we have successfully negotiated the acquisition of a large-scale prime asset. Of course, we are not satisfied to stop here. Soichiro Honda, the founder of Honda Motors, is famous for advocating that you fear doing nothing over failing. We will continue to keep an open mind and a discerning eye on market trends while we challenge ourselves to take the action needed to achieve stable distributions and sustainable growth. We will continue to run the business in a way that leverages the strengths of JLF. We appreciate your continued support and kindness. Keita Tanahashi Representative Director, President and CEO Mitsui & Co., Logistics Partners To Investors 31

Disclaimer Disclaimer Monetary amounts are rounded down to millions or thousands of yen. Percentage figures are rounded off to the first decimal place. This material contains forward-looking business results, plans, and management targets and strategies. Such forward-looking statements are based on current assumptions and premises, including those regarding anticipated future developments and business environment trends, and these assumptions and premises may not always be correct. Actual results could differ considerably because of a variety of factors. This material has not been prepared for the purpose of soliciting the purchase of the investment units of Japan Logistics Fund ( JLF ) or to solicit the signing of other financial product transaction contracts. In making investments, investors should do so based on their own judgment and responsibility. The investment units of JLF are closed-end fund investment units, whereby investment units are not redeemable at the request of investors. Investors wishing to liquidate their investment units will in principle need to sell them to third parties. The market value of the investment units will be influenced by investor supply and demand at securities exchanges and will fluctuate in accordance with the situation for interest rates, economic circumstances, real estate prices, and other market factors. It is therefore possible that investors will not be able to sell the investment units at their acquisition price and, as a result, will suffer losses. JLF plans to make cash distributions to investors, but whether distributions are made and the amount thereof are not guaranteed under any circumstances. Gains or losses on the sale of real estate, losses on the disposal of fixed assets accompanying the replacement of structures, and other factors can cause fiscal-period income to vary greatly, causing the amount of distributions paid to investors to change. Information provided herein does not constitute any of the disclosure documents or performance reports required by the Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations or by the Securities Listing Regulations of the Tokyo Stock Exchange. This material is to be read and used at the responsibility of customers. JLF and related persons involved in the preparation and publication of this material will not bear any responsibility for any damage arising from the use of this material (whether for direct or indirect damage, and regardless of the cause thereof). While every effort has been made to avoid errors and omissions regarding the information presented in this material, the material has been created as an easy reference for customers, and the presented information may contain inaccuracies or misprints. JLF bears no responsibility for the accuracy, completeness, suitability, or fairness of the information in this material. JLF holds the copyright to the information appearing in this material. Copying, altering, publishing, distributing, appropriating, or displaying this information or using it for commercial purposes without the prior approval of JLF is prohibited. Also, trademarks (trademarks, logos, and service marks) related to JLF appearing in this material are owned by JLF, and copying, altering, publishing, distributing, appropriating, or reproducing such trademarks or using them for commercial purposes without the permission of JLF is prohibited. Photographs appearing on the cover or within this material are used as illustrations of logistics and they may not be properties held by or planned to be acquired by JLF. Japan Logistics Fund, Inc. All rights reserved. Asset Management Company: Mitsui & Co., Logistics Partners Ltd. - Financial instrument business registered with the Director of the Kanto Local Finance Bureau registration No.400 (financial instruments) - Member of The Investment Trusts Association, Japan