We would like to express our gratitude for your continued support of Advance Logistics Investment Corporation (hereinafter referred to as “ADL”).

ADL has achieved steady growth, with a portfolio of 16 properties worth 139.2 billion yen (based on acquisition price) and unrealized gains of 34 billion yen (as of the end of the 12th fiscal period), while improving portfolio quality through carefully selected investments centered on advanced logistics facilities developed by our sponsor, the ITOCHU Group.

In terms of external growth, we were able to acquire three properties (with an acquisition price of 6 billion yen) from third parties other than our two sponsors, ITOCHU Corporation and ITOCHU Property Development, Inc.

Meanwhile, the average occupancy rate for the period was 92.6%, 6.3% lower than the initial forecast, due to the impact of tenant cancellations at two properties, IMP Misato and IMP Tokyo Adachi.
At present, we are receiving requests for new occupancy from multiple tenant candidates for both properties, and we are continuing negotiations to ensure that the replacement of tenants will contribute to maximizing unitholder value.

As a result, the dividend per unit (including distributions in excess of earnings) was 2,785 yen, 1.6% lower than the 2,830 yen announced on April 17, 2024, and 16 yen (0.6%) higher than the 2,769 yen per unit dividend announced on August 5, 2024 when the earnings revision was announced.

With regard to the merger with Mitsui Fudosan Logistics Park Investment Corporation (hereinafter“MFLP”) announced on August 5, 2024, the merger is scheduled to take place on November 1 of this year after obtaining approval at the extraordinary general meetings of unitholders of both investment corporations.

In addition, the asset management company also plans to conduct an absorption-type company split with Mitsui Fudosan Logistics REIT Management, Inc.,　the asset management company of MFLP, to take over the business of asset management related to ADL's logistics facilities, etc., and we intend to continue to be involved in management and work to improve unitholder value after the merger.

We would like to ask all of our stakeholders, including our unitholders, for their continued support and guidance.