To Our Unitholders

I am pleased to announce that ITOCHU Advance Logistics Investment Corporation, or IAL (stock symbol: R-IAL; securities code: 3493), has successfully closed its third fiscal period (ended January 2020) with increased revenues, profits, and distributions, continuing the solid performance seen in the previous fiscal periods. In the summary of third fiscal period financial results dated on March 16, 2020 (please refer to “IR Library” page under “Investor Relations” section of our website), we announced our distributions per unit (DPU) of 2,395 yen, a 29-yen increase from the initial forecast of 2,366 yen. As disclosed, we expect further DPU growth for the fourth and fifth fiscal periods (ending July 2020 and January 2021), forecasting 2,382 yen (up from initial forecast of 2,310 yen) and 2,497 yen, respectively.

The main driver for such DPU growth is the acquisition of two properties (in the aggregated amount of approximately 25.2 billion yen) using the funds raised in IAL’s first post-IPO equity financing executed in February 2020 and accompanying debt financing. With the acquisition, IAL’s portfolio (on an acquisition cost basis) grows to 84.1 billion yen from the previous 58.8 billion yen. I believe that the success of the deal is largely thanks to the generous support we receive from our unitholders and stakeholders, for which I am truly grateful.

IAL’s sponsor, ITOCHU Group has an extensive track record in logistics real estate development and also has particular competitive strengths in consumer goods such as apparel and food, which are parcels commonly handled by tenant companies. As it is expected that the logistics real estate market will see continued strong tenant demand with the tail-wind of expanding e-commerce, among other things, IAL remains committed to building quality portfolio under its “collaborative growth relationship” with ITOCHU Group, as well as to ensure stable financial and cash management. Additionally, in furtherance of our commitment to be the J-REIT that is valued by its stakeholders, IAL will continue to work hard for reinforcing governance with an awareness of its social responsibilities and public missions.

We respectfully ask for your continued and long-lasting support.

March 16, 2020
Junichi Shoji
Executive Director
ITOCHU Advance Logistics Investment Corporation

Junichi Shoji

Junichi Shoji
Executive Director
ITOCHU Advance Logistics Investment Corporation

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