15 th Fiscal Period Investor Presentation
May 1, 2023 to October 31, 2023

MIRAI Corporation

AM Company: Mitsui Bussan & IDERA Partners Co., Ltd.
Security Code: 3476 https://3476.jp/en

Executive Summary

1

ActualExternal
Growthbillion yen

Public offering

Finance

5.5

Averageoccupancy rate

98.5

ESG

4

stars

(Year 2023)

Note: As of December 15, 2023.

%*after Acquisition

GRESB◼ Continue aggressive actions toachieve the Mid-term Management
Plan “Smart Defense & Offensewith Aligned Interest” (formulated
in June 2022)◼ First public offering in two years

billion yen

Portfolio
Management(Internal
Growth)◼ Acquisition of properties in excess of implied cap rates:
Aim for “Smart Defense & Offense with Aligned Interest” by securing yieldfrom acquisition of Mid-sized offices and Hotels and combining them withproperties with upside such as urban retail facilities

Assets (to be)
Acquired

11.9

Next Action

1. Acquisition of “Smart Defense &Offense with Aligned Interest”
properties that exceed implied
cap rates
2. Improve NAV through “Strategic
asset replacement”◼ With strong awareness of the need to address future inflation, considering
investment strategies based on variable/fixed cash flow
characteristics in addition to the portfolio allocation by asset type

◼ Flexible financial strategies to prepare for increased operating costs◼ Controlling debt funding period and fixed debt ratio based on thebalance between risk and cost
◼ Continuing measures to increase unitholder value to recover priceto NAV multiple of 1.0◼ Office: Continue to prioritize occupancy and expect future income
improvement by eliminating free rent
◼ Retail: Continue measures to increase top-line (lease income) at MiNara

3. Realizing the potential value of
properties owned throughunique AM capabilities◼ Hotel: Pursue upside through variable rents, including switching fromfixed to variable rents

4. Healthy financial management
Strengthening ESG measures◼ Select target properties with the aim of raising the percentage ofproperties with environmental certifications in the portfolio (71.6%(Note) )◼ Continue ESG measures to maintain and improve GRESB 4 stars◼ Continue to consider implementation of green finance at each funding
procurement opportunity
1

2

Table of Contents
Section 1. Operational Highlight

・・・・・

P3

Section 2. Financial Summary & Forecasts

・・・・・ P23

Section 3. Progress of MIRAI・・・・・ P29

Section 4. Overview of New Assets

・・・・・ P34

Section 5. Portfolio Management

・・・・・ P46

Section 6. ESG Initiatives

・・・・・ P51

Appendix. Basic Information/Data・・・・・ P55

2

3

Section 1.
Operational HighlightOperational Highlight

Overview of 5th PO / Fundraising (Announced in November 2023)

4

Execute Public Offering and External Growth with “Smart Defense & Offense with Aligned Interest”
properties that outperform Implied Cap Rate
Acquisition (hereinafter “Assets (to be) Acquired”）
Smart Defense
OfficeOffense with Aligned Interest
RetailMI Terrace
Hamamatsu

MI CubeShinsaibashi

Hotel

Kuretake Inn
Hotel Wing
Hotel Kuretakeso
PremiumInternational SelectHiroshima
Nagoya Nayabashi Nagoya Sakae
OtemachiDebt
Total Amount ofLong-term Borrowings

Avg. Term to Maturity

Avg. Interest Rate

6,000 million yen

6.5 years

0.65%(Note 2)

Amount of
Short-term Borrowings◼ Raised long-term debt from seven lenders, including two newlenders

400 million yen◼ Introduced floating interest rates based on the balance between risk
and cost

Equity◼ Plan to raise additional funds to cover the difference from the initialassumption of the PO

Average Appraisal NOI Yield

Total Acquisition Price

Total Paid-in AmountPaid-in Amount

4.8%

11,957 million yen

5,566 million yen

40,929 yen

Implied Cap Rate

4.4%

(Note 1)

Total Appraisal Value

13,710 million yen(Note 2)

NAV per Unit
(after Issuance)

52,450 yen(Note 3)

Type of Allotment

Domestic

Number of Investment Units Offered

136,000 units (including third-party allotment)

Issue Price / Paid-in Amount

42,363 yen / 40,929 yen(closing price on the pricing date: 43,450 yen)

Total Amount of Issue Price / Paid-in Amount

5,761 million yen / 5,566 million yen

Resolution Date / Pricing Date

November 14, 2023 / November 21, 2023

Note 1: Calculated based on actual results for the fiscal period ended April 30, 2023 (14 th FP) and market capitalization as of November 2, 2023.The same applies hereinafter.
Note 2: Average of long-term borrowings of 6,000 million yen. For borrowings with floating interest rates, the average interest rate is calculated based on the base rate as of December 1, 2023.
Note 3: Figure is rounded down to the nearest 10 yen. The same applies hereinafter.

4

Operational Highlight

Change in DPU as a Result of the PO​

5

＋3.0%
1,185 yen
1,150 yen

1,150 yen

1,150 yen
Balance of internal reserves
after reversal
56 million yen(29 yen per unit)

42 yen(Reversal ofinternal reserves)◼ Dilution from issuance of new investment units◼ One-time expenses such as investment unit issuancecosts

1,108 yen

◼ Delayed contribution to earnings from forward
commitment project (MI Cube Shinsaibashi)◼ Renovation costs for renewal projects

etc.

Forecast on
June 14, 2023

Forecast on
Updated forecast
June 14, 2023
(Note)

Updated forecast(Note)

15 th FP
(October 2023)

16 th FP(April 2024)

17 th FP
(October 2024)

Number of Properties: 38

Number of Properties: 38 Number of Properties: 43

Number of Properties: 43

AUM: 166.2 billon yen

AUM: 166.2 billion yen

AUM: 178.2 billion yen

AUM: 178.2 billion yen

Note: This forecast is calculated based on the assumptions stated in the “(REIT) Financial Report for the Fiscal Period ended October 31, 2023” dated December 15, 2023 and actual DPU is subject to change. The forecast should not be construed as guarantee of actual performance or DPU. The
same applies hereinafter.

5

Operational Highlight

Effect of the PO and Acquisition
BeforeAnnouncement ofManagement Plan

6

Effects of Asset Replacement(Note 1)

End of 15th FP(October 31, 2023)

Effect ofAcquisition

After Acquisition(April 30, 2022)

Disposition [-]Acquisition [+]Number of Properties

38

4

4

38

5

43

Total Acquisition Price

164.5 B yen

8.0 B yen

9.7 B yen

166.2 B yen

11.9 B yen

178.2 B yen

Total Appraisal Value

177.6 B yen

8.0 B yen

11.1 B yen

182.5 B yen

13.7 B yen

196.2 B yen

Unrealized Gain11.2 B yen(0.3 B yen)

1.2 B yen

14.7 B yen

1.2 B yen

15.9 B yen

Unrealized Gain Ratio

6.8%(3.8%)

12.2%

8.8%

9.9%

8.9%

Appraisal NOI Yield

4.7%

4.5%

4.7%

4.7%

4.8%

4.7%

NOI Yield after Dep.

3.9%

3.9%

4.1%

3.8%

4.2%

3.8%

4.4%

－

98.5%

99.2%

98.5%

342

39

381

Implied Cap Rate
Average Occupancy Ratio

Number of Tenants

LTV
NAV per Unit

98.1%

100.0%

290

12

96.7%
35
(One tenant is a
residential ML)

48.8%
50,670 yen

Acquisition [+](Note 2)

49.2%
+3.5%

52,450 yen

Note 1: Not all the changes between “Before Announcement of Management Plan (April 30, 2022)” and “15 th FP (October 31, 2023)” are the effects of the Asset Replacement, because some are due to differences in the Appraisal Value of assets other than those subject to Asset Replacement
on each appraisal date, etc.
Note 2: Unrealized Gain after Acquisition ＝ Total Acquisition Price after Acquisition － (total book value of properties held as of October 31, 2023 ＋ total estimated book value of the Assets (to be) Acquired as of the Acquisition Date.

6

Operational Highlight

Overview of Assets (to be) Acquired

7

Assets (to be) Acquired

Total Acquisition Price

Total Appraisal Value

Avg. Appraisal NOI Yield

Avg. NOI Yield after Dep.

5 properties

11,957 M yen

13,710 M yen

4.8%

4.2%

Asset Category​Core Asset

Core Asset

Core Asset

Core Asset

Core Asset

Property Name

MI Terrace Hamamatsu

MI Cube Shinsaibashi

Kuretake Inn Premium
Nagoya Nayabashi

Hotel Wing International
Select Nagoya Sakae

Hotel Kuretakeso
Hiroshima Otemachi

Asset Type

Office(in a Core regional city)

Retail(Urban)Hotel(Fixed rent)

Hotel(Fixed rent)

Hotel(Fixed rent)

Address

Hamamatsu-shi,
Shizuoka

Osaka-shi, Osaka

Nagoya-shi, Aichi

Nagoya-shi, Aichi

Hiroshima-shi,
Hiroshima

Acquisition Price

2,603 million yen

2,644 million yen

2,470 million yen

1,700 million yen

2,540 million yen

Appraisal Value

2,770 million yen

2,830 million yen

2,900 million yen

2,200 million yen

3,010 million yen

Appraisal NOI Yield

4.9%

3.6％

4.9%

5.5%

5.5%

NOI Yield after Dep.

4.1％

3.6％

4.3%

4.8%

4.5%

Completion Date

December 1990

April 2002

August 2017

November 2017

February 2019

Sourcing RouteAsset Manager

Asset Manager

Asset Manager

Asset Manager

Asset Manager

Property
Photographs

7

Operational Highlight

Assets (to be) Acquired: Aim of the Acquisition

8

Acquisition of various asset types in line with the concept of “Smart Defense & Offense with Aligned
Interest”

Continue: Mid-sized office (Smart Defense)◼ Meets the needs of small and medium-sized businesses and boasts a wide tenant base◼ Lower volatility in vacancy rates and unit rents than Large-scale offices, and high tenant retention◼ Particular attention is paid to properties in core regional cities where new supply is limited and the supply-demand balance is stable
MI Terrace Hamamatsu

Acquired a mid-sized office in Hamamatsu, which boasts one of the largest number of offices among governmentdesignated cities

Strengthen : Urban retail (Offense with Aligned Interest)◼ Expected increase in tenant demand due to the recovery of footfall in the downtown area following the lifting of COVID related
restrictions◼ Diverse demand for store openings revived on the back of inbound recovery (luxury brand, duty-free, drugstores, reuse stores, etc.)◼ Proactively consider properties with potential upside in rent levels and asset values
MI Cube Shinsaibashi

Acquired an urban retail facility located in close proximity to the Shinsaibashi-suji Shopping Street, one of the
Kansai region’s leading shopping districts

Resume: Hotel (Offense with Aligned Interest)◼ Market growth is expected to be driven by a full-fledged recovery of inbound tourism, in
addition to a recovery in business travel demand and domestic tourism demand post- COVID-19.
◼ Variable rent: Carefully assess the probability of rent upside
Fixed rent: Focus on acquiring properties at reasonable prices

Kuretake Inn Premium
Nagoya Nayabashi

Hotel Wing International
Select Nagoya Sakae

Hotel Kuretakeso
Hiroshima Otemachi

Acquired fixed-rent hotels with high profitability and unrealized gain in areas with solid business and tourist
demand8

Operational Highlight

Portfolio Management: Office (1/2)

9Large-scale: Increased activity of tenants considering move in / Mid-sized: Remain stable
After Acquisition

Office50.7%

Large-scale Office (as of October 30, 2023)

12
90.3

Acquisition Price(% ownership)properties
Occupancy Rate

B yen

Move-in after
May 2023(incl applications)(Note 1)

Avg. appraisal NOI/after dep. yield

ShinagawaSeasideParktower

KawasakiTech Center

Shinjuku
Eastside
SquareTokyo Front
Terrace20.2 B yen

23.1 B yen

10.0 B yen

10.5 B yen(63.4%)(100.0%)(5.0%)(50.2%)

91.4%

100.0%

100.0%

94.1%

1,695 sqm
(7.6%)

331 sqm(1.5%)

17 sqm
(0.3%)

351 sqm(3.6%)

Mid-sized Office (as of October 30, 2023)

4.4%/3.6%

MI Terrace
NagoyaFushimiNagoya-shi, Hiroshima-shi,
Aichi
Hiroshima◼ Large-scale 4 properties/70.9%

Address◼ Mid-sized

Avg. Occupancy
Rate after
Acquisition

100.0%

Changes in Avg.
Rent

+2.6%

8 Properties/29.1%(based on acquisition price)

Hiroshima
Rijo-dori
Building

97.7%

TCA Building

Ehime
Building/
Hiroshima

Osaka-shi,
Osaka

Hiroshima-shi,
Hiroshima

99.8%

98.5%

Occupancy of Offices in Bay Area
97.1%

95.3%

94.1%

92.8%

81.3%

90.9%

91.4%

90.9%

Estimate based on applications as of Dec. 15 (Note 2)
22/10

23/4
23/10
Shinagawa Seaside Park Tower
Tokyo Front Terrace

Occupancy of BizMiiX Yodoyabashi
23/02/28
89.3%

85.1%

80.2%

86.7%

70.4%

Estimate based on applications as of Dec. 15 (Note 2)

+0.2%

+8.3%

+0.6%
22/10

23/4

23/10

Note 1: Figures in parentheses are the occupied area (including applications) after May 2023 as a percentage of the total leasable floor area of each property.
Note 2: The “Estimate based on applications as of Dec. 15” means that if there are any applications to move into the property as of December 15, 2023, the occupancy rate for each property is calculated by adding the area of the section pertaining to the application to the leased area as of theend of October 2023 and dividing by the total leasable floor area. There is a possibility that applications may be withdrawn or existing tenants may cancel lease, and there is no guarantee or promise that the property will be leased at the said occupancy rate.

9

Operational Highlight

Portfolio Management: Office (2/2)

10Rent Generating Occupancy Rate (Note 1) of Large-scale Office (based on floor area)
15 th FP (Actual)

16 th FP (Forecasts)

17 th FP (Forecasts)

95.4% Average Occupancy Rate:
97.4% Average Occupancy Rate:
96.4%
Rent generating occupancy:
91.6% Rent generating occupancy:
92.2% Rent generating occupancy:
89.7%
(Note
2)
Contract rent per tsubo:16,170 yen Contract rent per tsubo:
16,080 yen Contract rent per tsubo:
16,040 yen
Average Occupancy Rate:100%

Gap will be closed in
the future due toexpiration of freerent, etc.

90%
Rent holiday of
a large tenant

80%

Contracted occupancy (actual)

Rent holiday oflarge tenants◼ Major tenant to move out Shinagawa Seaside Parktower(Mercedes-Benz)◼ Occupancy Rate will remain at around 90% even after thetenant moves out

Contracted occupancy (forecasts)
Rent generating occupancy (actual)
Rent generating occupancy (forecasts)

70%
4

5

6

7

8

9

10

11

12

1

2

3

4

2023
Note 1: Rent generating occupancy rate = leased area * (actual rent / monthly rent) / leasable area. Actual rent is the rent actually received from tenants after taking into account free rent, rent holidays, etc.
Note 2: Contract rent per tsubo = Monthly rent as stipulated in the lease agreement / leased area (tsubo). Figures are rounded down to the nearest 10 yen. The same applies hereinafter.

5

6

7

8

9

10 (month)

2024
10

Operational Highlight

Portfolio Management: Retail

11

Mi-Nara: Recorded highest rent since opening due to synergies between increased existing store sales
and new store openings
After Acquisition

Mi-Nara( million yen)Monthly Rent

Operational Topics

110◼ April 2023: Opening IKIMONO (animal) MUSEUM

103百万円103 million yen

Retail

21.0%

11
373

◼ August 2023: Monthly rent 103 M yen (highest since opening)90

properties
B yen

70

(Future Upside)
50

30

Avg. appraisal NOI/after dep. yield

4.8%/4.0%◼ New openings between January and October 2023:
4 stores/529 tsubo (4.0%)

1
1月

2

3

4

2020

5

6
2021

Average forthe 15th FP

79.8 million yen◼ Urban

5 properties/32.3%◼ Community-based
6 properties/67.7%(based on acquisition price)

7

8

9

10

2022

11

12

2023

YoY

Vacantapprox. 622 tsubo (4.7%)

Consideration for
Asset Replacement

approx. 444 tsubo (3.4%)

Newly Opened Stores (15 th FP)+15.2 million yen(+23.7%)

Increase in Existing
Store Sales

New Store Openings+5.4 million yen+9.8 million yen

IKIMONO (animal) MUSEUM

Ramen Mitsuba

One Love(pet shop)
11

Operational Highlight

Portfolio Management: Hotel (1/2)

12

Switched to variable rent following change of operator, promoting upside-pursuing management
After Acquisition

Change of Hotel Operator (February 2024)
Osaka

Hotel

18.3%

15 properties
326 B yen
2,390 rooms

Avg. appraisal NOI/after dep. yield

4.9%/4.1%

Completion(based on acquisition price)

Monthly Rent

124

108

Assumed variable rent ratio at stable
occupancy (Note 2)60%

6.2 million yen 5.1 million yen(existing contract)

Variable rentMonthly actual GOP – (minimum guaranteed rent + amount equivalent to actual basefee + amount equivalent to actual incentive fee)

Area Diversification
Tokyo
area

Osaka area

◼ Upside (Note 1) + Variable rent
7 properties/51.9%

January 2004

Hotel Portfolio Update (after Acquisition/Change of Operator)

Koshinetsu

8 properties/48.1%

January 2004

Number of Rooms

Chugoku◼ Fixed rent

Hospitality Operations(Smile Hotel)

New Tenant

Super Hotel
Super Hotel
Osaka/Tennoji
Kyoto/(1.26 B yen) Karasumagojo(1.03 B yen)

Switched from fixed rent
to variable rent due tochange of operator

Kyoto

KyushuBased onacquisition
price

Operator Group Diversification
The COURT
Daiwa House
Realty Management
Sotetsu HotelManagement
Super Hotel

Nagoyaarea

GreensBased onacquisition
price

Note 1: Contracts in which, in addition to the fixed rent, variable rent is added when certain conditions are achieved.
Note 2: The ratio is calculated based on the budget used to calculate the minimum guaranteed rent in the contracts with a new tenant, and differs from the actual ratio.

Variable Rent

2 properties/
3.9 billion yen

5 properties/
13.0 billion yen(Niigata and Ise)

(Smile Hotels)

Fixed Rent
Contracts expiring before 2027

Kuretakeso
Okinawa
TohokuHospitality
Operations

UpsideMinacia

4 properties/5.2 billion yen
12Operational Highlight

Portfolio Management: Hotel (2/2)

13

RevPAR for Variable Rent Hotels (3 Existing Hotels)

Variable Rent

◼ Maintained strong operations even after the end of government support for nationwide travel(million yen)100

◼ RevPAR recorded at two hotels other than Smile Hotel Naha City Resort, which has justreopened for business, was close to the same level as before COVID-19(thousand yen)
7.4
7.0
6.7
8
6.6

70

6.0
4.3 4.6
3.9 4.0

5.4 5.5

4.7 4.8

2

0.4

0
21/01

22/01

ADR

6,440 yen78%

8,070 yen

87%

OCC

60%

74%

42%

51%

RevPAR

3,880 yen58%

3,360 yen

44%

ADR

8,180 yen92%

8,640 yen

103%

OCC

78%

88%

79%

92%

RevPAR

6,350 yen81%

6,850 yen

95%

ADR

6,610 yen108%

6,840 yen

110%

OCC

74%

81%

82%

84%

4,920 yen88%

5,580 yen

92%

Note: ADR and RevPAR are rounded down to the nearest 10 yen.

10

22

Comparedwith 2019

Aug. 2023 –Oct. 2023

Comparedwith 2019

7
15

15
49
37

38

9
59

17

45

17
19/01

May 2023 –Jul. 2023

RevPAR

70

Property

Nagoya
Sakae

25

26

13

10

23/01

Performance of Hotels with Variable Rent (15th FP) (Note)

Hakataeki-Mae

9

30

20
20/01

35

40

1.4 1.7 1.4 1.7

1.0

12

60
50

2.7

4

Naha

16

90
80

6

19/01

Naha: Provision as a recovery
accommodation facility forpatients with minor case of
COVID-19(January 2022 to May 2023)

20/01
Naha

5
3
10

Sluggishoperation
due to COVID-19
21/01
Hakataeki-Mae

48

59

51

55

8
22/01

47

15

10

18

19

23/01
Nagoya Sakae

Value Enhancement to Improve Performance (Naha)

Refreshed breakfast area

Replacement of unit baths
13

Operational Highlight

Measures to Address Future Inflation and Rising Interest Rates

14

Flexible financial strategies to prepare for higher operating costs, eyeing upside on the asset side
Asset

Liability

Weighted Average Lease Expiry (Note 1)（WALE）

5.6 years◼ Portfolio composition that leverages the strengths of a diversified portfolio◼ Controlling the balance between assets with upside in response toinflation and long-term fixed contracts that support the downside inaccordance with market conditions

Average Remaining Maturity

3.8 years◼ Base case scenario for long-term interest rates

YCC to be eliminated & negative interest rates lifted in early2024
10-year JGBs to peak at 1.0-1.2% and remain flat

Upside◼ Floating interest rates were introduced amid an upward trend in overall
operating costs

57.7%(based on rent)

Office1.3 years

Urban retail

3.0 years

Immediate policy: Control fixed ratio at around

Variable rent
hotel

15.1 years

90%(Considering changes in line with trends in long-term interest rates)
Changes in Base Rate (5 years) (Note 2)

0.9%

Long-term fixed
contract

0.8%
0.7%
0.6%

42.3%

0.5%

(based on rent)

New type

12.1 years

Neighborhood
retail11.1 years

0.4%

Fixed rent hotel

6.6 years

0.3%
0.2%

May-22Aug-22

Nov-22

Feb-23May-23Note 1: Calculated by dividing the remaining days from December 15, 2023 to the maturity date of lease contracts of portfolio assets (including the Assets (to be) acquired by 365, weighting by the annual rent, and rounded down to the first decimal place.
Note 2: TONA Swap + Euro-Yen TIBOR/TONA spread.

Sep-23

Dec-2314

Operational Highlight

Financial Strategy: Debt Portfolio

15

Strengthened financial base by increasing transactions with new lenders and diversifying funding
sources
Financial Highlight (after Acquisition)
Diversified Funding Source (after Acquisition)
LTV (Note 1)

Avg. Interest Rate

Avg. Remaining Maturity

49.2%

0.62%

7.1 years

LTV
Total Interestbearing Debt
(million yen)
Avg. Interest
Rate
Avg. Remaining
Maturity (years)
Fixed Interest
Rate Ratio
Long-term
Borrowing Ratio

49.0%

85,50048.9%

85,50049.2%

91,900

6.8%

3.8%

26.3%

0.61%

0.62%

Mizuho BankSMTBSBI Shinsei BankMUFG Bank

Mizuho Trust Bank

Fukuoka Bank

Resona Bank

4.9%

DBJ

The Juhachi-Shinwa Bank

5.1%

Nanto Bank

Kansai Mirai Bank

Chiba Bank

Aozora Bank

77 Bank

NISHI-NIPPON CITY BANK

Ogaki Kyoritsu Bank

Bonds

17.8%

5.5%

0.59%

SMBC

7.7%

13.1%

*Reds indicate financial institutions that began doing business in or after 15 th FP

7.3

98.2%
98.2%
23/4/30(14th FP)

7.4

100.0%
100.0%
23/10/31(15th FP)

7.1

87.4%
99.5%
After Acquisition(Note 2)

Commitment Line

Credit Rating

LenderMizuho Bank

JCR

Limit Amount

3 billion yen

A＋ (Stable)

Borrowing

0.5 billion yen

R&I

Term

Up to 1 year

(as of Dec. 15, 2023)

A (Stable)

Note 1: LTV after the Acquisition ＝ interest-bearing debt after the Acquisition / (total assets on balance sheet as of the FP ended October 30, 2023 (15 th FP) (174,746 million yen) ＋ amount of equity raised in the PO (5,566 million yen) ＋ borrowings (to be) executed in conjunction with theAcquisition (6,400 million yen))
Note 2: Figures after the Acquisition have been calculated excluding the 400 million yen in short-term borrowings that are expected to be borrowed on March 1, 2024 for figures other than LTV and total interest-baring debt.

15

Operational Highlight

Financial Strategy: Debt Maturity Ladder (after Acquisition)

16(million yen)
20,0001.2%

15,0000.9%

10,000

Average interest rate: 0.62% 0.6%

5,000

0.3%

0

0.0%

Refinancing amount (lhs)

Average interest rate (rhs)16Operational Highlight

ESG Initiatives

17

Steady progress in ESG measures, including improvement of GRESB Real Estate Assessment
GRESB Real Estate Assessment

Environmental Certification

Green Finance◼ Received a “4 stars” rating, one
notch improvement from theprevious year and “Green Star” forbeing an outstanding participant inboth the management andperformance components in the2023 evaluation.

DBJ Green Building Certification◼ Executed a green loan for MI
Terrace Hamamatsu(S-rank in CASBEE for Real Estate)◼ Also received the highest “A Level”
for the GRESB Public Disclosure,which assesses the width of ESG
disclosure.

3 stars: Tokyo Front Terrace (recertification)
2 stars: MI Terrace Nagoya-Fushimi(recertification)*Improved by one rank from the previous rating

Overview of the Green Loan

1 star: Kawasaki Tech Center (recertification)
LenderAmountTerm

InterestRate

SBI Shinsei
Bank

1.0
B yen

7 years

Base rate MI Terrace＋0.31％ Hamamatsu

CASBEE for Real Estate
S rank: MI Terrace Hamamatsu NEW
A rank: AEON Kasai NEW

Subject
Property% of Assets with Environmental
Certification (as of December 15, 2023)

Green Finance Results(after taking into account quasi coownership interests / excluding land) 71.6%

Total Amount of Eligible Green
Projects

72,688 M yen

LTＶ (as of October 31, 2023)

48.9%

Upper Limit of Green Finance

35,544 M yen

Total Amount of Green Finance(after Borrowing)

6,200 M yen

Green Finance Capacity

29,344 M yen

MI Terrace Nagoya-Fushimi

17

Operational Highlight

Progress of Mid-term Management Plan

18

MIRAI Mid-term Management Plan 2025
◼ Going on the offensive fordisciplined growth while“sharing” views andperspectives with investors◼ In an uncertain market
environment, “smart” defense toprepare for the next growth（Smart Defense）（Offense with Aligned Interest）

DPU

NAV per Unit

AUM

1,185 yen

52,450 yen

178.2 billion yen(Forecast for the FP ending October 2024)(after the Acquisition)(after the Acquisition)

Target: 1,300 yen level

Target: over 53,000 yen

Target: 200 billion yen+35 yen (+3.0%)+1,780円（+3.5%）+13.6 billion yen（+8.3%）

from the previous period’s forecast

since the start of Mid-term Management Plan

since the start of Mid-term Management Plan

Aim to achieve targets with hotel variable
rents and recovery in office occupancy as
growth drivers

Continue portfolio value enhancement
measures to achieve ahead of schedule

Aim for external growth that leads toimproved unitholder value, while adhering toa policy of selective investment

Note: Targets are calculated based on certain assumptions as of December 15, 2023 and is not a guarantee of future achievement. The same applies hereinafter.

18

Operational Highlight

Mid-term Management Plan: DPU Target

19

Raise the stabilized DPU through internal growth and external growth that contributes to unitholder
value enhancement

GrowthStrategy◼ Achievement of 1,300-yen level is possible only
through internal growth (recovery of hotel
variable rents + normalization of office rents)

Significant changes in market conditions,
including interest rates, after the Mid-termManagement Plan was formulated◼ Aiming for external growth that contributes tounitholder value enhancement in order to raise
the stabilized DPU

For the time being, focus on raising DPU
with a common target of 1,300-yen level+α: External growth that contributes tounitholder value enhancement
Normalization of
office rents(Free Rent eliminated)
Recovery of hotel variable rents
compared with
pre-COVID-19 (Note) 100%:+36 yen

1,185 yen

Forecast of
October 2024
(17 th FP)

Internal reserves
29 yen per unit

1,300 yenlevel

Utilize to stabilize DPU in the event of temporary
revenue declines or one-time expenses in the future

DPU Target

Note: The average monthly variable rent of the existing 3 of variable rent hotels (Smile Hotel Naha City Resort, Smile Hotel Hakataeki-mae and Smile Hotel Nagoya Sakae) from November 2018 to October 2019 is used as the pre-COVID-19 level. The difference between 6 months of pre-COVID19 variable rent and expected variable rent for the fiscal period ending October 31, 2024 (17 th FP) are divided by the assumed number of investment units outstanding after the Acquisition (1,907,440 units). The amount of distribution is not guaranteed, and subject to change due toadditional issuance of investment units, etc. The same applies hereinafter.

19

Operational Highlight

Mid-term Management Plan: Portfolio Strategy in the Near Term
Various asset types are being considered in line with the Mid-term Management Plan

Asset Type% of Portfolio(Based on Acquisition Price)
After Acquisition

Office

52.6%

50.7%

Retail

21.7%

21.0%

Hotel

New type/Core (New)/
Others

16.1%

9.5%

18.3%

10.0%

Approach to %of Portfolio

Strongly aware of the need for future inflation
response
Consider investment strategy based on variable/fixedcash flow characteristics in addition to portfolio
allocation by asset type

BeforeManagement Plan
(April 30, 2022)

20

Smart Defense

Offense with
Aligned Interest

賢守

共攻

Versatility
assets (Note)

Mid-sized

Neighborhood
type(Fixed rent)

Urban

Variable rent

Land

Note: This refers to mixed-use properties in the suburbs of central Tokyo that can be converted into satellite offices or can attract service sector tenants.

Fixed rent

Variable rent

Industrial

Logistics

Residence(Student apartments,
company housing, etc.)

20

Operational Highlight

Mid-term Management Plan: Measures to improve NAV

21Achieve steady growth in NAV per unit through strategic asset replacement in line with market
conditions
2nd FP(17/04)

3rd FP(17/10)

4th FP(18/04)5th FP(18/10)

Cumulative
Acquisition
Price (B yen)
Each FP

14.69

20.60

34.88

0.00

11.71

11.71

6th FP(19/04)

7th FP(19/10)8th FP(20/04)

9th FP(20/10)10th FP(21/04)11th FP(21/10)12th FP(22/04)13th FP(22/10)14th FP(23/04)15th FP(23/10)After
Acquisition

56.03

56.03

69.22

69.52

78.48

78.48

89.13

89.13

98.90

98.90

110.86

11.71

13.65

16.51

19.06

25.33

25.33

25.33

26.75

33.39

33.39

33.39

Cumulative
total

Cumulative
Disposition
Price (B yen)
Each FP
Cumulative
total

After Announcement of
Mid-term Management
Plan

Acquisition
Disposition

Asset Replacement andNAV per unit since theannouncement of Mid-termManagement Plan

Assets (to be) Acquired (5 properties)
Jun. – Nov. 2022

March 2023

Acquisition

2.0 B yen

MI Terrace
Sendai Hirose-doriDisposition

Acquisition
MI Terrace
Kita-Ueno

MI CubeMachida East

Fiel Johoku

2.6 B yen
Unrealized gain
per unit

50,670 yen

Orico HakataekiMinami Building

Disposition

6.4 B yen
Unrealized gain
per unit+160 yen

Comfort Hotel
Nagano7.7 B yen+700 yenMy Square
Building

MEGA Don Quijote Izumi-Chuo+3.5%

MI Terrace
Hamamatsu

MI CubeShinsaibashi

Kuretake Inn
Hotel Wing
Hotel Kuretakeso
Premium Nagoya International SelectHiroshima
Nayabashi
Nagoya Sakae
OtemachiNov. 2023 – Mar. 2024

Acquisition 11.9 B yen

Unrealized gain per unit

+640 yen

52,450 yen
21Operational Highlight

Mid-term Management Plan: Capital Policy

22

Promote external growth when asset acquisitions and DPU growth in excess of implied cap rate arepossibleHigh

Investment unit price

Low

Ensure high yields

Acquisition pipeline

Tightening of the cap rate

External growth through PO▲ Unitholder value can be enhanced if DPU growth can be achieved
through asset acquisitions that exceed the implied cap rate, etc.
even when P/NAV is below 1x▲ Progress will be made toward the mid-term target of 200 billion yen in
AUM▲ Increase in liquidity and expansion of investor base through higher
market capitalization▼ DPU growth and timing of implementation depends on unit price level▼ BPU diluted after PO depending on unit price level

Return to unitholders through acquisition of own
investment units▲ Signaling effect on the market that the unit price is undervalued▲ Demonstrate management’s commitment to improving unit price▲ DPU and NAV/U can be improved depending on unit price level▼ Concerns that LTV levels will remain high and debt costs will soar due tohigher interest rates▼ Possibility of certain restrictions on external growth over the mid- tolong-term▼ Risk of not reaching the expected effect (e.g., in case of small
implementation)

Promote external growth through PO if a certain level of unit price and acquisition yield (≒ asset
acquisitions exceeding the implied cap rate) and DPU growth exceeding a certain level can be expected
Note: This is a summary of MIRAI’s current thinking on capital policy, and does not describe specific policies for conducting public offerings or acquiring treasury investment units, nor does it guarantee that such policies will be implemented in the future.

22

23

Section 2.
Financial Summary & Forecasts

Financial Summary & Forecasts

Financial Summary

24

Fiscal Period

14th FP

15th FP

16th FP

17th FP

From

Nov. 1, 2022

May. 1, 2023

Nov. 1, 2023

May. 1, 2024

To

Apr. 30, 2023

Operating revenue

Oct. 31, 2023

Results

Results

ChangesA

B

B-A

Apr. 30, 2024

Forecasts(Note 1)

ChangesC

Forecasts

B-C(Note 2)

Oct. 31, 2024

Changes

D

Forecasts

D-B(Note 2)

ChangesE

E-D(million yen)

6,308

5,744

-564

5,739

4

5,861

117

6,038

177

(million yen)

4,652

4,740

88

4,719

21

4,920

180

5,062

141

Office(million yen)

2,307

2,307

0

2,314

-7

2,379

72

2,344

-35

Retail(million yen)

1,150

1,268

118

1,233

35

1,211

-56

1,301

89

Hotel

(million yen)

728

643

-85

650

-6

808

164

895

86

Residence(million yen)

11

65

54

65

-

65

-

65

-

Others(million yen)

454

454

-

454

-0

455

0

455

0

Other lease business revenue(million yen)

1,028

1,003

-24

1,020

-16

940

-63

976

35

Gain on sales of real estate properties(million yen)

627

-

-627

-

-

-

-

-

-

Operating expenses(million yen)

2,005

1,994

-11

2,121

-127

2,016

22

2,002

-13

NOI

(million yen)

3,675

3,750

74

3,617

132

3,845

95

4,036

190

Depreciation(million yen)

681

708

26

695

13

770

61

802

31

Loss on sales of real estate properties(million yen)

214

-

-214

-

-

-

-

-

-

General administrative expenses(million yen)

587

573

-13

574

-1

564

-9

607

43

Non-operating expenses(million yen)

299

308

8

307

0

396

88

365

-31

Net Profit(million yen)

2,447

2,153

-294

2,038

114

2,113

-39

2,260

146
35

Lease business revenue

DPU

(yen)

1,305

1,215

-90

1,150

65

1,150

-65

1,185

Capital expenditure(million yen)

680

673

-6

723

-49

876

202

896

19

NCF

(million yen)

2,995

3,076

80

2,894

182

2,968

-107

3,139

170

FFO per unit

(yen)

1,533

1,615

82

1,543

72

1,511

-104

1,605

94

Payout ratio

%

85.1

75.2

-9.9

74.5

0.7

76.1

0.9

73.8

-2.3

38

38

-

38

-

43

5

43

-

%

98.2

98.5

0.3

181,861

182,547

685

8.4

8.8

0.4

(million yen)

85,50085,500-85,500-91,9006,400

91,900

-

%

49.0

48.9

-0.1

49.2

-0.3

49.3

0.4

49.3

-0.0

1,771,440-

1,907,440

136,000

1,907,440-

Number of properties
Occupancy rate as of the end of fiscal period
Appraisal value
Unrealized gain margin
Outstanding interest-bearing debts
LTV (Note 3)(million yen)%

Total number of outstanding investment units（Note 4）(unit)

1,771,440

1,771,440-

BPS（Note 4）(yen)

44,31044,310-

NAV per unit （Note 4）(yen)

52,23052,630400Note 1: This forecast was published in "(REIT) Financial Report for the Fiscal Period ended April 30, 2023 (The 14th Period) " dated on June 14, 2023.
Note 2: This forecast is calculated based on certain assumptions as of December 15, 2023 and subject to change due to conditions such as change in rent income thorough tenant turnovers, acquisition and disposition of assets, and additional unit issuance. The forecast should not be construed
as guarantee of DPU.
Note 3: LTV=Outstanding interest-bearing debt/Total assets.
Note 4: BPS＝Unitholders’ capital/Total number of outstanding investment units. NAV＝Unitholders’ capital + Unrealized gain.

24

Financial Summary & Forecasts

Historical DPU (Compared with Previous Fiscal Period)

(yen)

1,400

Legend:25
Increase

Decrease◼ Assets acquired in 16th FP (+30)◼ Assets acquired in 13th FP (+77)◼ Newly acquired assets (+105)◼ Decrease in repair expense (+53)◼ Increase in office/hotel rents (+9)◼ Internal reserves/Drop off of tax (+114)◼ Reversal of internal reserves, etc. (+46)◼ Increase in retail/hotel rents (+53)◼ Decrease in repair expenses (+41)*Related to change of hotel operator

1,200
350

224

260

106

159

141

1,000
1,305
◼ Drop off of gains on sales (-233)

800

600

1,215

1,150

◼ Decrease in retail rents (-41)◼ Assets disposed in 13th FP (-48)◼ Change of hotel operator (-38)◼ Hotel rents (-48)*Ceased use of Naha hotel as arecovery accommodation facility
for patients with COVID-19◼ Increase in unit issuancecosts/debt costs (-41)

1,185◼ Deterioration in net utilities
expenses (-10)* Seasonal factors◼ PO dilution (-87)◼ Increase in depreciation (-17)

14th FP(Actual)◼ Decrease in office rents (-25)*Benz departure from
Shinagawa, etc.

◼ Drop off of internal reserves
reversal(-42)

15th FP(Actual)16th FP(Forecast)

17th FP(Forecast)Occupancy rate

Occupancy rate

Occupancy rate

98.5%

99.2%

98.6%
25

Financial Summary & Forecasts

Historical DPU (Compared with Forecasts)

Legend:

(yen)

1,300

1,250

1,200

Improvementof netutilities
20
expensesUpswinginretail
75
rents

1,150

Other
lease
business
revenue(existingassets)Downward
swing in
office/
hotel
rents

7

38

7

23
Other
lease
business
revenue(increasein repairexpenses,
etc.)

105

1,150

Investment
unit
issuance
expenses

14
Change ofhotel operator(Osaka/Kyoto)

20
Increase in
debt cost,etc.

Contribution
from
Assets(to be)Acquired

1,215

1,100

26
Increase

DecreasePO
dilution

82

Reversal ofinternal
reserves

42

1,150

1,150

1,050

1,000
Forecast
as of Jun.
14

15th FP(October 2023)

ActualForecast
as of Jun.
14

16th FP(April 2024)

Forecast
revisedon Dec. 15

26

Financial Summary & Forecasts

Net Utilities Expenses

27

Profitability improved due to peaking out of fuel cost adjustment surcharge and ongoing operational
efforts
Forecasts for
16 th FP

Forecasts for
17 th FP

(October 2023)(April 2024)(October 2024)

Utilities
revenue

746 million yen

666 million yen

725 million yen

12

Utilities
charge681 million yen

606 million yen

686 million yen

10

Net utilities
expenses+64 million yen+59 million yen+39 million yen

8Compared
to initial
forecasts+133 million yen+44 million yen-◼ Unit price of fuel cost adjustment surcharge, which is linked toenergy prices, peaked out snice the beginning of 2023
◼ Mi-Nara (26% of total utilities charge (Note)) has successfully
reduced gas and electricity consumption by reviewing air
conditioning operation and promoting LED lighting in common
areas◼ Remain conservative in future forecasts in preparation for suddenchanges due to geopolitical risks, etc.

Note: The figure represent the percentage of utilities cost to the portfolio for the fiscal period ended October 31, 2023 (15 th FP).

Changes in Unit Price of Fuel Cost Adjustments Surcharge(extra high voltage)(yen/kWh)Results for
15 th FP

14

Tokyo Electric Power
Kansai Electric Power
Chubu Electric Power

6

4

2

0
5

6

7

8

9

2022

10

11

12

1

2

3

4

5

6

7

2023

8

9

10

11

12

1
2024

27

Financial Summary & Forecasts

Changes in Appraisal Value

28

Appraisal Value / Unrealized Gain

Changes by Asset Type (properties held continuously)(billion yen)
250
8.4%
220

8.8%

8%

7.4%
6.8%
6.2%

6.3%

190

6%
11.2

160

End of 14 th FP End of 15 th FP

10%

9.6

12.1

14

Changes

Office95.9 B yen

96.0 B yen

0.1 B yen(+0.1%)

Retail38.0 B yen

38.2 B yen

0.2 B yen(+0.5%)

Hotel

27.8 B yen

28.0 B yen

0.2 B yen(+0.8%)

Residence

2.5 B yen

2.5 B yen

0.0 B yen(+0.4%)New Type

17.5 B yen

17.6 B yen

0.1 B yen(+0.8%)

Total

181.8 B yen

182.5 B yen

0.6 B yen(+0.4%)

14.7
4%

9.8

Cap Rate (direct capitalization method)
5.0%

130

156

156

166

165

168

168

2%

4.6%
4.5%
4.5%
4.3%
4.1%

4.5%

4.0%
100

3.8%

0%
10th FP

11th FPBook value (lhs)

12th FP

13th FP

Unrealized gain (lhs)

14th FP

15th FP

Unrealized gain (%) (rhs)

3.5%
10th FP
Office11th FP
Retail12th FP
Hotel

13th FP
Residence

14th FPNew Type

15th FP
Total
28

29

Section 3.
Progress of MIRAI

Progress of MIRAIProgress to Date30

AUM growth to achieve the mid-term plan target following the portfolio replacement under COVID-19
crisisIPO

Growth phase 1

Listed with
only Core Assets

Started to included Growth Assets(Core Plus/New Type)
Pursue improved profitability/upsidethrough ingenious acquisitions

AUM (based on acquisition price)(billion yen)
250
200
150
100
50
0

100.7

115.4

109.6

123.9

2nd FP(17/04)

3rd FP(17/10)

4th FP(18/04)5th FP(18/10)

Portfolio strategy withemphasis of defensivenessthrough property replacement

December2019
3rd POMay 2018
1st PO
October 2018
2nd PO

December
2021
4th POMIRAI Mid-Term Management Plan 2025
New Assets
exceeding Implied CR

145.0

143.1

153.4

151.2

153.9

153.9

164.5

163.1

166.2

166.2

6th FP(19/04)

7th FP(19/10)8th FP(20/04)

9th FP(20/10)10th FP(21/04)11th FP(21/10)12th FP(22/04)13th FP(22/10)14th FP(23/04)15th FP(23/10)+77.4 B yen(+76.9%)NAV/U

100.7 B yen => 178.2 B yen

Acquisition&
Disposition

Achieving the target of mid-term plan
MIRAI acquires"smart defense✕offense with aligned interest"
assets exceeding implied CR

11.9

Achievements since IPO
AUM

Growth phase 2

Spread of COVID-19

144.2 billion yen
Acquisition 110.8 B yen,
Disposition 33.3 B yen

Index
Weight

200.0

178.2

New
AssetsAfter 5thPO・・・

Target5 th PO (November 2023)+6,810 yen(+14.9%)Smart Defense

45,640 yen => 52,450 yen

Mid-Sized Office
1 asset / 2.6 B yen+0.31%NOI Yield

0.25% => 0.56%

4.8%

Offense with
Aligned Interest
Urban Retail / Hotels
4 assets / 9.3 B yen
Implied Cap Rate

4.4%

30

Progress of MIRAIPortfolio Transition and NAV Improvement

AUM(billion yen)

2 nd FP (17/04)

12 th FP (22/04)

After 5 th PO (24/03)

15 properties

38 properties

43 properties

164.5

178.2

100.7

Retail21.8%

Residence 1.2%

Hotel
16.1%

core
100.0
Office68.6%

Osaka Others 6.3%
area
11.5%

Area Diversification(based on
Acquisition Price)

Others 8.8%

Others 9.5%

Hotel 9.7%

Portfolio Diversification(based on
Acquisition Price)

31

core
87.5%

Office52.6%

Retail21.7%

Nagoyaarea 8.9%

93.7%

Tokyo area
82.2%

Osaka
area
15.8%

core
88.4%

Office50.7%

Retail21.0%

Others 14.4%

Three major
metropolitan
areas

Hotel
18.3%

Others 17.2%
Nagoyaarea
10.6%

Three major
metropolitan
areas

85.6%

Tokyo area
60.9%

Three major
metropolitan
areas

Osaka
area
14.4%

82.8%

LTV

47.0%

48.8%

49.2%

NAV per Unit

45,640 yen

50,670 yen

52,450 yen

Tokyo area
57.8%

31

Progress of MIRAIHistorical DPU and NAV per Unit

32
After 5th PO

DPU
52,230

NAV per Unit
51,17049,19049,49049,40045,640

Before the announcement of
the mid-term management plan

47,00046,010
1,563
1,451

1,417

52,63050,16050,67047,92046,36050,03052,450 yen

+3.5%

1,561

1,436

1,429

1,293

1,247

1,289

10th FP(21/04)11th FP(21/10)

1,267

1,313

1,305

1,215

1,150

1,185

16th FP(24/04)17th FP(24/10)815

2nd FP(17/04)

3rd FP(1710)

4th FP(18/04)5th FP(18/10)

6th FP(19/04)

7th FP(19/10)8th FP(20/04)

9th FP(20/10)12th FP(22/04)13th FP(22/10)14th FP(23/04)15th FP(23/10)(Note 2)

ActualNote 1: Per unit numbers are rounded down to nearest 10 yen. MIRAI implemented a four-for-one investment unit split with April 30, 2019 as record date. For the purpose of comparison, the figures after 6th FP are post split figures.
Note 2: Unrealized gain at the end of 3rd FP adds renewal investment of 844 million yen for Mi-Nara on the book value at the end of the FP.

Forecasts
32

Progress of MIRAI

Trends in Distribution Yield

33(billion yen)
December 10, 2019

1,200

Announcement 3rd PO

December 2, 2021

December 13, 2021

Announcement of inclusion in FTSE EPRA
Nareit Global Real Estate Index Series

Announcement of 4th PO

10%
9%

900

8%
7%

600

6%
5%

300
19/11

4%
20/2

20/5

20/7

20/10

21/1

21/4

21/7

Market capitalization (left axis)

21/10

22/1

22/4

22/7

22/10

23/1

23/4

23/7

23/10

Distribution yield (right axis) (Note 1)

Financial Institutions/Foreign Investors Ratio (Note 2)
Financial Institutions

Foreign Investors
91(37.3%)

90(41.0%)

86(45.8%)

145(10.6%)

153(11.1%)

81(46.5%)

93(41.4%)

126(10.6%)

127(10.3%)

141(11.3%)

7th FP (19/10)

8th FP (20/04)

9th FP (20/10)

86(43.5%)

85(40.1%)

85(41.1%)

81(40.8%)

178(15.6%)

176(16.7%)

177(14.2%)

186(16.0%)

10th FP (21/04) 11th FP (21/10) 12th FP (22/04) 13th FP (22/10) 14th FP (23/04) 15th FP (23/10)

Note 1: DPU yield is calculated by dividing the annualized actual distribution per unit for each fiscal period by the closing price of investment units on each day.
Note 2: The Figures in parentheses indicate the percentage of investment units; the number of investors is only for foreign institutions, while the percentage of investment units is the sum of foreign institutions and foreign individuals..

33

34

Section 4.
Overview of New Assets

Overview of New Assets

New Assets: Mid-sized Office (continued)

35

Continue to invest in mid-sized offices and in regional core cities with stable cash flows
New Assets

Rents by Class (Central Tokyo)(Yen)Acquisition Price

2,603 M yen

Vacancy of Mid-sized Office (by area)

Class B/C rents
remained steady

Vacancy remained low
in areas with low supply(19/01 = 0)Tokyo
Fukuoka

Appraisal Value

2,770 M yen
Class ANOI Yield

4.9%

NOI Yield after Dep.
MI Terrace Hamamatsu

NagoyaOsaka

Class BClass C

Sendai

4.1%

SapporoMid-Sized Office Portfolio(Before - After)
Number ofproperties

AUM

7 properties

22.5 B yen

8 properties

26.2 B yen

Source: "Office Rent Index" by Sanko Estate Co.

Source: "Office Market Report" by Sanko Estate Co.

◼ In central Tokyo, class B/C buildings, which are considered to be mainly mid-sized offices, have lower volatility in rent
than large and relatively new class A buildings.

◼ Mid-sized offices meet the needs of small and mid-sized enterprises in terms of rent and size, in addition to being usedas branches or annexes of large enterprises.
◼ Approximately 70% of Japanese employees are employed by small and mid-sized enterprises, enabling leasing activities
targeting a wide tenant base.
◼ Vacancy rates remained low even during COVID-19 for mid-sized office in major cities except in the 23 wards of Tokyoand Fukuoka where there is a large supply of new office.
35

Overview of New Assets

New Assets (1)36Core Asset

MI Terrace Hamamatsu

OfficeMid-sized office in a regional core city with stable demand

Acquisition PriceAppraisal Value

2,603 million yen

2,770 million yen

NOI Yield

NOI Yield after Dep.

Standard Floor Plan

Tenant Exclusive Area

4.9%

4.1%

◼ Located within 9-minute walk from “Hamamatsu” station and 8-minute walk from
“Shin-Hamamamatsu” station, in an area with a concentration of office buildings
and it is highly visibile facing National Route 257, a trunk road.

Address

312-32, Tenma-cho, Naka-ku,
Hamamatsu-shi, Shizuoka

Land Area
Gross Floor
Area

Structure

S 9F

1,144.81 sqm

Occupancy Rate

97.3% (33)

6,931.30 sqm

Date of Building(Number of tenants)

December 1990

◼ The standard floor area is approximately 200 tsubo, which is relatively large in amarket where small buildings are the norm. On the other hand, the minimum
dividable section size is approximately 20 tsubo, which also meets the leasingneeds of Hamamatsu City.
◼ With ancillary facilities (e.g. a 60-car mechanical parking garage, conference
rooms for rent), and a full renovation in 2021, it maintains market
competitiveness in a neighborhood market with relatively few new buildings.
◼ CASBEE for Real Estate "S rank".
36

Overview of New Assets

New Assets (1)37Stable Occupancy and High Tenant Retention

Area with Little New Supply and Stable Rent and Vacancy◼ 90% of tenants have been in the asset before 2019(tsubo)◼ High occupancy maintained even with COVID-19

Quarter◼ Current average rent is 8,230 yen excluding 1F while the market rent
is 9,000-10,000 yen, indicating future upside potential.
Occupancy Rates

Source: "Office Market Survey of Hamamatsu City Building" prepared by CBRE.

2022

2023

Number of Offices by City in Shizuoka

1
2
3
4
5

Tenancy Period
Before 2019
Number oftenants
Ratio(based on area)

Averagetenancy period

31
88.9%
13.6 years

2020 andbeyond7

Rent Gap (Note)6(13.2%)

7

11.1%
1.1 years

Top 10 Number of Offices by City

Future Upside
Source: "2021 Economic Census - Activity Survey" by the Ministry of
Economy, Trade and Industry

Number of offices
Osaka
4,879
Nagoya3,484
Yokohama
2,214
Kyoto
2,067
Hamamatsu
1,839
Kobe
1,394
Sakai

1,337

8

Shizuoka

1,302

9Hiroshima

1,109

10

Kawasaki

1,070

Source: "Industrial Trends in 2028” by Hamamatsu City

Note: "Rent Gap" is the difference calculated by subtracting the median market rent from the rent as of the end of August 2023 for tenants occupying the property, and dividing the difference by the relevant market rent level. There is no guarantee that the rent gap will necessarily be eliminated.

37

Overview of New Assets

New Assets: Urban Retail Properties (enhanced)

38

Strengthen investments in urban retail assets, where demand increases due to the recovery of footfall
New Assets

Vacancy of Urban Retail Assets
Acquisition Price

2,644 M yen

Shinsaibashi area:
Vacancy rate rapidly improving

Rents in High Street (by area)
Shinsaibashi area:
Rising to levels above pre-COVID-19(2020Q2=100)

Appraisal Value

2,830 M yen
NOI Yield

3.6%

NOI Yield after Dep.
MI Cube Shinsaibashi

3.6%

Urban Retail Portfolio(Before - After)

Source: "Retail Market View” by CBRE.

Source: "Retail Market View” by CBRE.

Number ofproperties

AUM◼ In May 2023, COVID-19 was reclassified as a category 5 infectious disease. Restrictions on going out were lifted, andfootfall in downtown recovered.

3 properties

7.4 B yen

◼ In urban retail assets in the three major metropolitan areas, the vacancy rate, which rose after COVID-19, is rapidly
improving (e.g. Shinsaibashi). A recovery to rent levels exceeding those before COVID-19 is also expected due to theemergence of multiple demands, including for inbound.
◼ In terms of values, Land Price Survey in 2023 clearly showed a "post COVID-19" trend in commercial areas, confirmingthat land prices are recovering in many areas.

5 properties

12.0 B yen◼ Japanese government has announced a policy to raise the per capita spending target of foreign visitors to 200,000 yen
by 2025, which can be an upside factor for urban retail assets in the future.
38

Overview of New Assets

New Assets (2)39Core Asset

MI Cube Shinsaibashi

RetailUrban retail asset located near Shinsaibashi

Acquisition PriceAppraisal Value

2,644 million yen

2,830 million yen

NOI Yield

NOI Yield after Dep.

1st Floor

2nd Floor

3.6%

3.6%

◼ Located within 1-minute walk from “Shinsaibashi” station and in close proximity to“Shinsaibashi Shopping Street”, one of the major shopping spots in Kansai region.
◼ “Shinsaibashi” area is a shopping district with a mix of a number of small stores,
and recently reopened large-scale retail facilities, which can attract a wide rangeof customers of all ages and demographics.
Structure

S B1F/3F◼ It is located near the intersection of “Shinsaibashi Shopping Street” and “Nagahori
Street”, and the intersection is one of the most expensive areas in “Shinsaibashi”.

263.62 sqm

Occupancy Rate

100% (3)◼ High-end tenants such as luxury brand retailers place importance on anenvironment that allows them to express their unique worldview, and it is a rare
asset that can meet the needs of such tenants for a single tenant lease.

875.04 sqm

Date of Building

Address

1-1-16, Shinsaibashi, Chuo-ku,
Osaka-shi, OsakaLand Area
Gross Floor
Area(Number of tenants)

April 2002

◼ Only 300% of the designated floor area ratio of 800% has been utilized, and it has
upside potential in terms of asset value through future reconstruction.

39

Overview of New Assets

New Assets (2)40

Tenant Composition to Benefit from Inbound Demand

Osaka is Popular among Visitors from East Asia

Tenant Composition

3F
2F
1F

B1F

Osaka

Beauty parlor
Sales of previously
owned luxury
brand products

Restaurant◼ 1-2F will be occupied by the tenant sellingpreviously owned luxury brand products.
◼

Tokyo

Kyoto

previously owned products in Japan are inbetter condition than in other countries,
and yen depreciation has also contributed
to strong inbound demand.

Osaka

Osaka Tokyo

Fukuoka
Kyoto

Chiba

◼ The tenant group has three stores in“Shinsaibashi” area.

Current Inbound Demand is Similar to before COVID-19(13/04=100)

Source: “Survey of Foreign Consumption Trends by Visitors to Japan” by Japan Tourism Agency

Main Attraction Spots in "Shinsaibashi" Area
DotonboriAn iconic spot in Osakawith Ebisu Bridge, Glicoand Kani Doraku signs, etc.
You can also enjoy
theatrical performances at
the Shochikuza Theater,
cruises on the Dotonbori
River and Osaka‘s foodculture (e.g. takoyaki,
kushikatsu, udon etc.).

Source: “Department store duty-free sales (Kansai region)” by Osaka Branch, Bank of Japan

Shinsaibashi
Shopping Street
The most prosperous
shopping district in Minami
from the south side ofNagahori Dori to
Soemoncho Dori, extending
580 meters.
Daimaru Department Store,
trendy sweets, and thelatest fast fashion standside by side.

Source: "Osaka Tourism Bureau Official Guidebook” by Osaka City Tourism Bureau.

40Overview of New Assets

New Assets: Hotel (resumption)

41

Resumed investment in hotels with expectation of inbound demand recovery
New Assets

Number of Domestic Guests and Occupancy of Business Hotels(Millions of people)

Acquisition Price

6,710 M yen
Appraisal Value

8,110 M yen
NOI Yield

5.3%

Kuretake Inn
Premium Nagoya
Nayabashi

Hotel Wing
International
Select Nagoya
Sakae

Hotel Kuretakeso
Hiroshima
OtemachiNOI Yield after Dep.

4.5%

Source: "Lodging Travel Statistics Survey" by Japan Tourism Agency

Hotel Portfolio◼

The number of domestic hotel guests are
increasing due to recovery in businesstravel and domestic tourism demand, andfurther growth in foreign visitors is
expected to provide further upside in the
future.

◼

Budget hotels are valued for their ability
to offset rising labor and other costs withefficiency measures.

◼

For hotels with fixed rents, consider
negotiating rent increases or introducing
variable rents, and changing operators,
including sponsor groups, is an option.
(e.g. EN HOTEL Ise.)

Foreign Visitors to Japan(Before - After)(100,000)

Number of properties

AUM

13 properties

26.5 B yen

15 properties

32.6 B yen

Source: "Foreign Visitors to Japan" by Japan National Tourism Organization

41

Overview of New Assets

New Assets (3)42Core Asset

Kuretake Inn Premium Nagoya Nayabashi

Hotel

Hotel within walking distance from Nagoya station

Acquisition PriceAppraisal Value

2,470 million yen

2,900 million yen

NOI Yield

NOI Yield after Dep.

Single RoomTwin Room

4.9%

4.3%

◼ Located within 7-minute walk from “Fushimi” station and 13-minute walk from
“Nagoya” station, it is in “Fushimi/Marunouchi” area, one of Nagoya's leadingbusiness districts, and is adjacent to “Sakae” area, one of the most popular
downtown. Therefore, it is expected to attract both business travelers and tourists.

Structure

S 14F◼ Opened in September 2017, it is relatively new and offers a balanced
accommodation and is equipped with a large public bath, laundries, vending
machines, etc.

471.16 sqm

Occupancy Rate

100% (1)◼ Number of rooms: 166 (91 premium single rooms, 26 double rooms, 24 twinrooms, 12 deluxe twin rooms, 12 super king rooms and 1 universal room)

3,802.96 sqm

Date of Building

August 2017

◼ Kuretake-so, the operator, is a leading hospitality company in Shizuoka Prefecture
and operates 63 facilities in Japan (as of the end of August 2023).

Address

1-2-12 Meieki Minami,
Nakamura-ku, Nagoya-shi, Aichi

Land Area
Gross Floor
Area(Number of tenants)

42

Overview of New Assets

New Assets (4)43Hotel Wing International Select Nagoya Sakae

Core Asset

Hotel

Budget hotel located near downtown Nagoya

Acquisition PriceAppraisal Value

1,700 million yen

2,200 million yen

NOI Yield

NOI Yield after Dep.

5.5%

Yellow Lily (Twin)

4.8%

Wisteria (Twin)

Hibiscus (Twin)◼ Located within 9-minute walk from “Sakae” station and 6-minute walk from
“Yaba-cho” station, it is in “Sakae” area, one of the most popular downtown andis adjacent to “Fushimi/Marunouchi” area, one of Nagoya's leading business
districts. Therefore, it is expected to attract both business travelers and tourists.
◼ Opened in December 2017, it is relatively new and offers a balanced
accommodation and is equipped with a breakfast corner, laundries, vending
machines, etc.
Structure

S 13F◼ Based on the concept of a “sparkling new hotel”, it features a garden-likeentrance lobby and rooms with flower themes such as roses and cherry blossom.

449.56 sqm

Occupancy Rate

100% (1)◼ Number of rooms: 120 (36 single rooms, 60 double rooms, 23 twin rooms, 1
universal room)

2,819.06 sqm

Date of Building

November 2017

◼ MINACIA, the operator, is a hotel chain operator of “Hotel Wing International”
brand, and operates 41 facilities in Japan (as of the end of August 2023).

Address

3-12-23-2, Sakae, Naka-ku,
Nagoya-shi, Aichi

Land Area
Gross Floor
Area(Number of tenants)

43

Overview of New Assets

New Assets (5)44Core Asset

Hotel Kuretakeso Hiroshima Otemachi

Hotel

Budget hotel for both tourists and business travelers

Acquisition PriceAppraisal Value

2,540 million yen

3,010 million yen

NOI Yield

NOI yield after Dep.

5.5%

Double Room

4.5%

Twin Room(Western)Twin Room(Japanese)◼ Located within 1-minute walk from “Chuden-mae” station and “Chuden-mae” busstop, this location offers convenient access to both streetcars that cover thecenter of Hiroshima City and buses that cover a wide area of the prefecture.
◼ It is within a few minutes' walk or streetcar ride to tourist attraction such as
Hiroshima Peace Memorial Park, etc., and downtown “Hacchobori” area, and isadjacent to the business district. Therefore, it is expected to attract both tourists
and business travelers.
Structure

S 14F◼ Opened in February 2019, it is relatively new and offers a balanced
accommodation, and is equipped 14 multi-story parking spaces to accommodate
tourists and business travelers.

500.57 sqm

Occupancy Rate

100% (1)◼ Number of rooms: 191 (112 single rooms, 34 double rooms, 44 twin rooms(Japanese/Western), 1 accessible room)

4,315.87 sqm

Date of Building

February 2019

◼ Kuretake-so, the operator, is a leading hospitality company in Shizuoka
Prefecture and operates 63 facilities in Japan (as of the end of August 2023).

Address

3-7-3, Otemachi, Naka-ku,
Hiroshima-shi, Hiroshima

Land Area
Gross Floor
Area(Number of tenants)

44

Overview of New Assets

New Assets (3) (4) (5)Nagoya45

Hiroshima Occupancy Recovered since Bottoming out

Number of Guests Recovered to the Level above 2022

Nagoya: Total number of guests and occupancy rate

Hiroshima: Total number of guests and occupancy rate

(Thousands of people)(Thousands of people)

Source: "Lodging Travel Statistics Survey" by Japan Tourism Agency

Source: "Lodging Travel Statistics Survey" by Japan Tourism Agency

The area that can capture both business and tourist demand

The area that can capture both business and tourist demand◼ New Assets are located in the center ofNagoya, consisting of “Sakae area”,“Fushimi area” and "Nagoya Stationarea".

19

NagoyaFushimia

SubwaySubwayItsukushima Shrine

Dome(Miyajima)

Hiroshima Castle

MAZDA Zoom-Zoom
Stadium Hiroshima

153

Kanayama

AtsutaShrineAtomic bomb

Subwayb

Business
Business & Downtown
Downtown
Sightseeing

Tokugawa BaseballGarden Stadium

Sakae

ScienceMuseumShinkansen

Major Tourist Attractions

Highway22◼ Easy access to sightseeing spots suchas Nagoya Castle and Atsuta Shrine.
◼ The area can capture both businessand tourist demand.

SubwayNagoyaCastlea Kuretake innb Hotel Wing

◼ Hiroshima City has one of the largest
business demands in the Chugoku region,
due to the concentration of government
offices and major corporations in addition
to the largest domestic base of a foreign
semiconductor manufacturer inneighboring Higashi-Hiroshima City.

◼ Highly vibrant and busy areas including
Kamiyacho are located in theneighborhood of New Asset.
◼ Future business demand is expected toincrease due to the end of COVID-19

45

46

Section 5.
Portfolio Management

Portfolio Management

Overview of Portfolio (after Acquisition of the Assets to be Acquired)
OfficeAUM(Acquisition
Price)

RetailHotel

47

Residence

New Type

12

11

15

1

4

properties

properties

properties

property

properties

billion yen

billion yen

billion yen

billion yen

billion yen

90.3

37.3

32.6

2.2

15.6

Appraisal
NOI Yield

4.4%

4.8%

4.9%

5.1%

5.3%

NOI Yield
after Dep.

3.6%

4.0%

4.1%

4.4%

4.5%

Occupancy
Rate (Note 1)

96.8%

98.7%

99.3%

100%

100%

Weighted
Average
Lease Expiry

1.3 years

8.1 years

11.1 years

1.2 years

12.1 years

UnrealizedGain(Ratio) (Note 1)

7.6 billion yen（+8.4%）

2.7 billion yen（+7.1%）

3.3 billion yen（+10.1%）

0.2 billion yen（+9.1%）

2.0 billion yen（+13.1%）Feature(Note 2)Large-scale office 70.9%
Average rent
(Note 3)

16,190 yen

32.3%
Neighborhood 67.7%
Urban

Core plus

Note 1: As of October 31, 2023. (in the case of the Assets to be Acquired, as of the scheduled acquisition date)
Note 2: Ratio of “Feature” is based on acquisition price.
Note 3: Large-scale office average monthly rent in Tokyo as of October 31, 2023.

Mi-NaraFixed rent
Upside

48.1%
51.9%

+Variable rent

Student apartment

100%

Industrial
Educational

75.1%
24.9%
47

Portfolio Management

Tenant Diversification (after Acquisition of the Assets to be Acquired)

48

Diversification of Lease Maturity (based on rent) (note)(million yen)
200
160
120
80
40
0
16FP

18FP

20FP

22FP

24FP

26FP

28FP

Breakdown of Lease Contracts Type (based on rent)

Office38.0%

Retail5.6%

2.4% 10.0%
Hotel Residence
1.4% 1.3%

19.0%

32FP

After 34FP

After Acquisition of the Assets to be Acquired

Fixedterm…

Regular lease
48.8%

30FP

15.7%

6.5%

Weighted Average
Lease Expiry

5.6 years

Fixed-term Ratio

33.6%(Remaining 5 years or more)

Note: “Diversification of Lease Maturity (based on rent)” is calculated by dividing the remaining days of lease contracts in effect at December 15,2023 of portfolio assets by 365, weighting by the annual rent, and rounded down to the first decimal place.

48

Portfolio Management

Tenant Diversification (after Acquisition of the Assets to be Acquired)
Top 10 Tenants (based on rent)
Tenant Name

Tenant Diversification
Property

Leased Area

Ratio

1.

AEON Retail

AEON Kasai

28,338 sqm

4.9%

2.

HAVI Supply Chain Solutions
Japan

Rokko Island DC

15,563 sqm

4.7%

3.

Hospitality Operations

3 Smile Hotels(Naha, Hakata, Nagoya)

15,040 sqm

4.1%

4.

NTT Comware

Shinagawa Seaside Parktower

6,099 sqm-

5.

Kuretakeso

2 hotels(Nagoya Nayabashi, Hiroshima Otemachi)

8,220 sqm-

6.

Super Hotel

4 Super Hotels(Sendai, Osaka, Saitama, Kyoto)

10,860 sqm

2.9%

7.

Chubu Telecom

MI Terrace Nagoya Fushimi

6,497 sqm

-

8.

Seiyu

Tsurumi Fuga 1

9,578 sqm-

Minacia

2 Wing International Hotels(Ueno, Nagoya sakae)

5,903 sqm-

Shinagawa Seaside Parktower

4,237 sqm-

9.

10. BIGLOBE

49

Top 1033.9%

Lease Contracts Diversification

Top 1029.9%

49

Portfolio Management

Tenant Replacements and Contract Renewals (Office)Tenant Replacements(㎡)

Contract Renewals (based on leased area)
Moving in

6,000
96.8%

50

Moving out

96.0%

Occupancy

100%

96.8%

4,000

10.4%

Increase
0.6%

Maintain

Decrease
0.5%

80%

2,000
1,842

2,723

0

3,086

-851

-1,707-3,526-2,000

60%

40%

99.4%

99.5%

13th FP(22/10)14th FP(23/04)15th FP(23/10)23,681 sqm

19,967 sqm

17,320 sqm

89.6%

20%

-4,0000%
13th FP(22/10)14th FP(23/04)15th FP(23/10）

Average Rent
(Moving in)

16,220 yen

17,470 yen

21,370 yen

Contract
RenewalArea

Average Rent
(Moving out)

17,980 yen

17,490 yen

19,850 yen

Rent Change
Ratio

+1.7%

+0.0%

+0.0%

(1 million yen)

(25 million yen)

89 million yen

Changes in
Rent (Note)

11 million yen

0 million yen

0 million yen

Changes in
Rent (Note)

Note 1: Figures are rounded down to the nearest 10 yen.
Note 2: Increase in monthly rent due to tenant replacement or contract renewal x 6.

50

51

Section 6.
ESG Initiatives

ESG Initiatives

ESG Initiatives (1/3)

52

Promote efforts to address materiality while improving and expanding external certification
Participation in Initiatives

Participation in External Certifications

Principles for Financial Action for the 21st Century

GRESB Real Estate Assessment◼ The principles of conduct for Japanese Financial
Institutions that outline the responsibilities and roles
necessary for the formation of a sustainable society◼ An annual benchmark assessment that measuresenvironmental, social and governance considerations in
the real estate sector◼ The Asset Manager signed the Principles in September
2020◼ MIRAI participated in the assessment from 2021 and hasearned 4 Star and Green Star

Task Force on Climate-related Financial Disclosures◼ The Asset Manager expressed support for the “Task Force on Climaterelated Financial Disclosures (TCFD)” in February 2023
◼ In addition to supporting the TCFD, joined the “TCFD Consortium”, anorganization of companies in Japan that support the TCFD
Recommendations◼ Conducted scenario analysis and qualitative risk assessment of the Fund’s
operations in support of TCFD

◼ MIRAI also received the highest A Level for the GRESB
Public Disclosure.

DBJ Green Building Certification / CASBEE for Real Estate◼ Continue initiatives to increase the share of assets with environmental
certifications
New certifications were obtained for the following assets
・MI Terrace Hamamatsu (CASBEE for Real Estate: S Rank)
・AEON Kasai (CASBEE for Real Estate: A Rank)*For detail, please visit MIRAI’s website.
(https://3476.jp/en/esg/climate.html)

52

ESG Initiatives

ESG Initiatives (2/3)

53% of Assets with Environmental Certification (as of Dec.
15, 2023)

Environmental Performance Targets
Based on the Sustainability Policy, we have established environmental
performance targets in order to appropriately identify and manage theenvironmental impact of our real estate operations and implement operations
that contribute to environmental protection.

◼ Reduce GHG emission intensity of our portfolio by 5% overthe next 5 years◼ Reduce energy consumption intensity of our portfolio by 5%
over the next 5 years

Certified assets *Bold: Newly acquired
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼

% of Assets
with Environmental
Certification (note)

71.6％(Note) The target period is from April 2021 to March 2022 as the first year, and from April 2025 to March2026 as the year to achieve the target. In addition, from April 2018 to March 2019 is the base year.

Shinagawa Seaside Parktower
Kawasaki Tech Center
Shinjuku Eastside SquareTokyo Front Terrace
MI Terrace Nagoya Fushimi
MI Terrace Sendai Hirose-dori
Ehime Building/Hiroshima
BizMiiX Yodoyabashi
Continue to
MI Terrace HamamatsupromoteAEON Kasai
acquisition of
Mi-Naraenvironmental
Rokko Island DC
certification

Green Finance (as of Dec. 15, 2023)

Trends in Reduction Rate
0%
Target (-5%)-5%Maximum amount of Green finance

Eligible Green Project-10%

Energy Consumption Intensity

48.9%

-15%
-20%
-25%

LTV (as of Oct. 31, 2023)

72,688 M yen
GHG Emission Intensity

35,544 M yen-30%
March 2019(the base year)

March 2021

Note: Based on total floor area excluding land asset.

March 2022

March 2023

March 2026
(the year to achieve
the target)

6,200 M yen
Eligible green projects

Upper limit of green finance

Balance of green finance53

ESG Initiatives

ESG Initiatives (3/3)

54

Initiatives for Local Communities, Tenants and Employees
Initiatives for Local Communities andTenants

Initiatives to improve and enhance theworkplace environment

Promote community support
activities by holding events at
properties owned and sponsoring
local events

Creating an easy-to-work-in work
environment for asset
management company’s
employees

Focus on initiatives to make theassets more comfortable fortenants and users

Focus on developing a system thatenables each employee to fully
demonstrate his/her abilities
through human resource
development by providing training
support, etc.

Donation of books
for children(Nara-shi, Nara)

ExamplesProviding an asset as anaccommodation for patients withmild cases of COVID-19(Naha-shi, Okinawa)

Communication
Space

Asset Management Fees, etc.
14 th FP

15 th FPAM Fee I

428 million yen

439 million yen

AM Fee II

38 million yen

33 million yen

Ac q u is it io n
Fees

97 million yen－

DispositionFees

74 million yen－

Merger Fees－－

ExamplesDonation of sports
equipment to school(Nara-shi, Nara)

Employee satisfaction survey
newly conducted by anoutside firm

Establishment ofcashless unmanned
concession stands forGroup employees

Name

Remuneration

Executive
Officer

MichioSuganumaーSupervisory
Director

Takehiko
NegishiSupervisory
Director

Hidetomo
Nishii15 th FP
(total)3,676
thousandYen% of Attendance(Board of Directors)(15 th FP)

100％(6/6 times)
100％(6/6 times)
100％(6/6 times)

54

55

Please also refer to “Financial Highlights Data (Excel file)” for the details on
MIRAI IR Library (https://3476.jp/en/ir/library.html).

Appendix.
Basic Information/Data

Basic Information/Data

56

Features of MIRAIPortfolio Strategy

Financial Strategy◼ The portfolio consists mainly of large-scale offices with middle-classrents, which feature stable supply and demand.

◼ Strong bank formation centering on the Mitsui Group.

◼ For retail properties and hotels, emphasis is placed on stability
through long-term fixed contracts.
◼ Pursues upside scenario through the inclusion of Growth Asset.

◼ Ranked among the highest of all J-REITs in terms of conditions forthe debt.
◼ Credit rating JCR: A＋（Stable）/ R&I: A（Stable）
Average interest
rate (note)

0.62％

Averageremainingmaturity (note)

3.8 years

JCR

R&I

A＋(Stable)

A (Stable)“Smart Defense and Offense with Aligned Interest”

Double Main Sponsors◼ Two mid-term management plans ("Repower 2020" and "ER") andthe "MIRAI Revitalization Plan“, a crisis response plan for COVID-19
disaster, have been formulated since listing, and growth measures
have been implemented based on clear sets of issues.

◼ Double sponsorship by Mitsui & Co. AM Holdings LTD. and IDERA
Capital Management.

◼ June 2022: MIRAI mid-term management plan 2025 "Smart
Defense and Offense with Aligned Interest" (quantitative targets)◼ Currently co-own properties with several real estate vehicles
managed by the Mitsui & Co. group (Shinagawa Seaside Park Tower,
Rokko Island DC, etc.)

1. DPU :1,300 yen level◼ The sponsors proactively support deal sourcing, fundraising andleasing activities.

2. NAV/U : Over 53,000 yen (CAGR about 2%)

3. AUM :200 billion yen (AA rating in mind)

Note: After Acquisition of the Assets to be Acquired

56

Basic Information/Data

Portfolio Strategy

57

Portfolio centering on core assets in greater Tokyo area where stable cash flow can be expectedCore Assets
Core Assets
utilizing the strengths of the sponsors
in the real estate business

Growth Assets
Focus on the three major
metropolitan areas of Japan (Note 1)(Investment ratio: 70% or more)
Ratio by Asset Type (Note 2)

Core Plus

OfficeOthersResidence 8.8%
1.2%
Hotel
18.3%

Core Assets

88.4%

Limited Inclusion of Growth Assets
utilizing the competitive edge of thesponsors
Assets targeting profitability improvement throughupside achieved by leasing, renovation or conversion.

Mi-NaraAcquisition Price

Office50.7%

4,944 million yen

RetailRetail21.0%

Ratio by Area (Note 2)

New-type (Note 3)

Others
17.2%

Hotel

Nagoya Area
10.6%

Three
Metropolitan
Area

82.8%

Assets in Blue ocean, with less acquisitioncompetition and market expansion can be
expected.
Tokyo Area
57.8%

Osaka Area
14.4%

Note 1:“3 major metropolitan area” refers to greater Tokyo (Tokyo , Kanagawa , Chiba and Saitama ), greater Osaka (Osaka , Kyoto , Hyogo , Nara , Wakayama and Shiga ), and greater Nagoya (Aichi , Mie and Gifu ).
Note 2:The figure is calculated based on the acquisition price and the portfolio after the acquisition of the assets to be acquired.
Note 3:Acquisition of New Type Asset will be made when the Asset Manager's operational structure is ready (or when the legal framework is ready for some asset classes).

Rokko Island DC(quasi-co-ownershipinterests 92.45%)
Acquisition Price

7,996 million yen
57

Basic Information/Data

Portfolio List (after Acquisition of the Assets to be Acquired)
Asset Type

Property Name

Large-Scale

Core

OfficeMid-Sized

Address

Date of Acquisition

Core
RetailCommunityBased

Core Plus% of thePortfolio

Appraisal
NOI Yield

NOI after
Depreciation

Occupancy
Rate

Shinagawa Seaside Parktower

Shinagawa-ku, Tokyo

December 2016

20,288

11.4%

4.4%

3.7％

91.4%

Kawasaki Tech Center

Kawasaki-shi, Kanagawa

December 2016

23,182

13.0%

4.8%

3.7％

100.0%

Shinjuku Eastside Square

Shinjuku-ku, Tokyo

December 2016

10,000

5.6%

3.5％

2.8％

100.0%

Tokyo Front Terrace

Shinagawa-ku, Tokyo

October 2017

10,592

5.9%

3.6％

3.0％

94.1%

MI Terrace Nagoya-Fushimi

Nagoya-shi, Aichi

June 2018

8,886

5.0%

4.7％

4.1％

100.0%

Hiroshima Rijo-dori Building

Hiroshima-shi, Hiroshima

March 2020

2,250

1.3%

5.2％

4.4％

100.0%

BizMiiX Yodoyabashi

Osaka-shi, Osaka

November 2018

2,041

1.1%

3.9％

2.8％

85.1%

TCA Building

Osaka-shi, Osaka

January 2021

2,120

1.2%

4.5％

3.6％

100.0%

Ehime Building/Hiroshima

Hiroshima-shi, Hiroshima

January 2022

2,780

1.6%

4.9％

4.2％

100.0%MI Terrace Sendai Hirose-doriSendai-shi, Miyagi

November 2022

2,022

1.1%

4.8％

4.2％

92.1%

MI Terrace Kita-Ueno

Taito-ku, Tokyo

March 2023

3,557

2.0%

4.3%

3.8%

100.0%MI Terrace Hamamatsu

Hamamatsu-shi,
Shizuoka

December 2023

2,603

1.5%

4.9%

4.2%

97.3%

90,322

50.7%

4.4%

3.6%

96.8%

OfficeUrban

AcquisitionPrice(million yen)

58

Shibuya World East Building

Shibuya-ku, Tokyo

December 2016

3,200

1.8%

5.6％

5.2％

100.0%

THINGS Aoyama

Minato-ku, Tokyo

January 2020

2,912

1.6%

3.7％

3.6％

100.0%MI Cube Sendai Clisroad

Sendai-shi, Miyagi

March 2020

1,330

0.7%

4.8％

4.7％

100.0%MI Cube Machida East

Machida-shi, Tokyo

March 2023

1,977

1.1%

4.9%

4.2%

85.9%

MI Cube Shinsaibashi

Osaka-shi, Osaka

March 2024

2,644

1.5%

3.6%

3.6%

100.0%AEON Kasai

Edogawa-ku, Tokyo

December 2016

9,420

5.3%

5.0％

4.1％

100.0%CAINZ Mall Hikone (land)

Hikone-shi, Shiga

March 2021

3,598

2.0%

5.1％

5.1％

100.0%

MaxValu Takatori (land)

Hiroshima-shi, Hiroshima

March 2021

950

0.5%

4.6％

4.6％

100.0%

Tsurumi Fuga 1

Yokohama-shi, Kanagawa

January 2022

5,300

3.0%

4.4％

3.6％

100.0%BIGMOTOR Ginan (land)

Hashima-gun, Gifu

January 2022

1,080

0.6%

4.2％

4.2％

100.0%

Mi-NaraNara-chi, Nara

October 2017

4,944

2.8%

5.8％

2.4％

95.3%

37,355

21.0%

4.8%

4.0%

98.7%

Retail58

Basic Information/Data

Portfolio List (after Acquisition of the Assets to be Acquired)
Property Name

Asset Type

Hotel

BudgetCore

Address

Date of Acquisition

Industrial

EducationalCore

New Type% of thePortfolio

Appraisal
NOI Yield

NOI after
Depreciation

Occupancy
Rate

Hotel Sunroute Niigata

Niigata-shi, Niigata

December 2016

2,108

1.2%

6.2％

4.5％

94.6%

Daiwa Roynet Hotel Akita

Akita-shi, Akita

December 2016

2,042

1.1%

5.8％

4.0％

100.0%

Super Hotel Sendai/Hirose-doriSendai-shi, Miyagi

December 2016

1,280

0.7%

5.9％

4.9％

100.0%

Super Hotel Osaka/Tennoji

Osaka-shi, Osaka

December 2016

1,260

0.7%

5.3％

4.8％

100.0%

Super Hotel Saitama/Omiya

Saitama-shi, Saitama

December 2016

1,123

0.6%

5.5％

4.3％

100.0%

Super Hotel Kyoto/Karasumagojo

Kyoto-shi, Kyoto

December 2016

1,030

0.6%

5.3％

4.7％

100.0%EN HOTEL Ise

Ise-shi, Mie

March 2018

1,800

1.0%

6.0％

4.8％

100.0%

Comfort Hotel Kitakami

Kitakami-shi, Iwate

March 2018

820

0.5%

5.5％

3.3％

100.0%

Hotel Wing International Select Ueno/Okachimachi

Taito-ku, Tokyo

May 2018

3,720

2.1%

4.2％

3.6％

100.0%

Smile Hotel Naha City Resort

Naha-shi, Okinawa

November 2018

4,000

2.2%

4.4％

3.9％

100.0%

Smile Hotel Hakatarki-mae

Fukuoka-shi, Fukuoka

November 2018

3,800

2.1%

3.6％

3.2％

100.0%

Smile Hotel Nagoya-Sakae

Nagoya-shi, Aichi

November 2018

2,950

1.7%

4.2％

3.7％

100.0%

Kuretake Inn Premium Nagoya Nayabashi

Nagoya-shi, Aichi

December 2023

2,470

1.4%

4.9%

4.4%

100.0%

Hotel Wing International Select Nagoya Sakae

Nagoya-shi, Aichi

December 2023

1,700

1.0%

5.5%

4.9%

100.0%

Hotel Kuretakeso Hiroshima Otemachi

Hiroshima-shi,
Hiroshima

December 2023

2,540

1.4%

5.5%

4.7%

100.0%

32,643

18.3%

4.9％

4.1％

99.3%

Hotel
Residence

AcquisitionPrice(million yen)

59

Fiel Johoku

Hamamatsu-shi,
Shizuoka

March 2023

2,210

1.2%

5.1%

4.4%

100.0%

Rokko Island DC

Kobe-shi, Hyogo

November 2018

7,996

4.5%

5.4％

4.1％

100.0%

Odawara Material Storage & Delivery Center (land)

Odawara-shi, Kanagawa

March 2021

2,300

1.3%

4.9％

4.9％

100.0%

Yokohama-Daikokucho Maintenance Center (land)

Yokohama-shi, Kanagawa

March 2022

1,490

0.8%

3.9％

3.9％

100.0%

Tokyo Eiseigakuen Senmongakko

Ota-ku, Tokyo

January 2020

3,900

2.2%

5.8％

5.1％

100.0%New Type

15,686

8.8%

5.3％

4.5％

100.0%

Total Portfolio

178,217100.0%

4.7%

3.8%

98.5%

59

Basic Information/Data

Assets List (after Acquisition of the Assets to be Acquired)
OfficeRetailHotel

Residence60

OthersGrowth Assets

Office1

2

3

ShinagawaSeasideParktower

KawasakiTech Center

Shinjuku
Eastside Square

4

5

6

7

8

9

Tokyo Front
Terrace

MI Terrace
NagoyaFushimi

Hiroshima
Rijo-Dori
Building

BizMiiX
Yodoyabashi

TCA Building

Ehime Building/Hiroshima

10

MI Terrace
Sendai
Hirose-dori

11

MI Terrace
Kita-Ueno

40

Rokko Island Odawara Material
DC
Storage & Delivery
Center(land)

14

Shibuya World
East Building

42

43

Yokohama
Daikokucho
MaintenanceCenter(land)

Tokyo
Eiseigakuen
Senmongakko

The Assets to be Acquired

Retail13

41

THINGS
Aoyama15

16

MI Cube Sendai
Clisrord

MI CubeMachida East

18

19

AEON
Kasai

CAINZ Mall
Hikone(land)

20

MaxValu
Takatori(land)

21

TsurumiFuga 1

22

BIGMOTOR
Ginan(land)

23

Mi-Nara

12

17

36

MI Terrace
Hamamatsu

MI CubeShinsaibashi

Kuretake Inn
Hotel Wing
Hotel Kuretakeso
PremiumInternational Select Hiroshima
NagoyaNagoya Sakae
OtemachiNayabashi

Hotel
24

25

Hotel
Sunroute Niigata

Daiwa
Roynet Hotel
Akita

37

38

Residence
26

Super Hotel
Sendai/
Hirose-dori

27

28

29

30

31

32

33

Super Hotel
Osaka/Tennoji

Super Hotel
Saitama/Omiya

Super Hotel
Kyoto/
Karasumagojo

EN HOTEL Ise

Comfort Hotel
Hotel Wing
Smile Hotel
KitakamiInternational Select Naha City
Ueno/Okachimachi
Resort34

35

Smile Hotel
Hakataeki-Mae

Smile Hotel
Nagoya-Sakae

39

Fiel Johoku

60Basic Information/Data

Portfolio Map (after Acquisition of the Assets to be Acquired)

61

61

Basic Information/Data

Primary Data (as of the End of 15th FP)
Asset

62

Debt

Number of Properties
AUM(Based on Acquisition Price)

Outstanding InterestBearing Debt

38
166.2 billion yen

85.5 billion yen

Total Assets LTV

48.9%

Appraisal LTV (Note 3)

45.1%

Appraisal Value

182.5 billion yen

Average Interest Rate

0.61%

Unrealized Gain

14.7 billion yen（+8.8%）

Average Remaining
Maturity

3.0 years

Credit Ratings

JCR： A+
R&I： A(Unrealized Gain Rate)

Profitability(Based on Book Value)

Average Property Age(Acquisition Price Weighted
Average)

Total Leasable Floor
Space

NOI yield: 4.4% (Note 1)
NOI yield after depreciation:3.6%
25.1 years (Note 2)
Approximately 377,000 sqm

Occupancy Rate

98.5%

Asset Type

OfficeRetailHotel(Based on Acquisition Price)

52.8%
20.9%
15.6%

Note 1：15th FP result
Note 2：Excluding land assets
Note 3：Total assets LTV=Outstanding interest-bearing debt/(total assets + unrealized gain)
Note 4：Based on the closing price of investment equity on the last day of 15th FP

Residence1.3%
Others 9.4%

(Stable)(Stable)EquityMarket Cap (Note 4)

80.8 billion yen

Unit Price (Note 4)

45,650 yen

NAV per Unit

52,630 yen

DPU
DPU Yield

1,215 yen (15 th FP result)
5.3%
62

Basic Information/Data

Financial Summary by Property (1/4)

63

15 th FP: May 2023 － October 2023
Property Name

ShinagawaSeasideParktower

Kawasaki Tech
CenterShinjuku Eastside
SquareTokyo
Front Terrace

MI Terrace
Nagoya-Fushimi

Hiroshima Rijodori Building

BizMiiX
Yodoyabashi

MI Terrace
Sendai
Hirose-dori

Ehime Building/Hiroshima

TCA Building

MI Terrace
Kita-Ueno

Operating days

184

184

184

184

184

184

184

184

184

184

184

Operating revenue

708

999

258

281

311

86

55

73

101

78

96

621

532

233

236

271

67

51

55

86

63

87

Lease business revenue
Other lease business revenue

86

466

24

44

39

19

3

18

14

15

9

316

404

66

131

83

33

27

24

47

26

21

Outsourcing service expenses

59

77

21

18

25

5

14

5

10

9

5

Utilities expenses

109

241

23

35

27

9

2

10

9

5

9

Property and other taxes

67

49

18

38

21

6

4

6

12

9

-

Repair expenses

15

1

0

17

4

10

0

0

12

0

4

Other expenses related to lease business

64

34

2

22

3

0

5

0

2

1

1

391

595

191

149

227

53

28

48

53

52

75

72

131

37

35

27

8

11

8

9

6

9

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

319

463

154

114

199

45

16

40

44

46

65

52

216

4

64

0

11

-

17

18

-

0

338

378

187

85

227

41

28

31

35

52

74

20,00623,761

9,704

10,995

8,899

2,347

1,998

2,264

2,869

2,043

3,605

3.9%

5.0%

3.9%

2.7%

5.1%

4.5%

2.8%

4.3%

3.7%

5.1%

4.1%

3.2%

3.9%

3.2%

2.1%

4.5%

3.8%

1.7%

3.5%

3.1%

4.5%

3.6%

Operating expense

NOI
Depreciation

Capital expenditure
NCF
Book value
NOI yield(Note 2)

NOI yield after depreciation(Note 2)

Note 1: Not disclosed because tenant’s consent was not obtained.
Note 2: Based on book value

63

Basic Information/Data

Financial Summary by Property (2/4)

64

15 th FP: May 2023 － October 2023
Property Name

Shibuya World
East Building

THINGS Aoyama

MI Cube Sendai
Clisroad

MI CubeMachida East

184

184

184

CAINZ MALL
Hikone (land)

AEON Kasai

184

TsurumiFuga 1

184

BIGMOTOR Ginan(land)

184

184

Mi-NaraOperating days

184

Operating revenue

121

41

63

647

Lease business revenue

101

37

53

471

Other lease business revenue

20

4

10

175

Operating expense

184

MaxValu Takatori(land)

184

21

Not

7

17

Not

Not

Not

Not

Not

535

Outsourcing service expenses

4

disclosed

1

4

disclosed

disclosed

disclosed

disclosed

disclosed

110

Utilities expenses

5(Note 1)2

10(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)177

Property and other taxes

7

2

-

54

Repair expenses

0

0

0

16

Other expenses related to lease business

2

0

1

175

NOI
Depreciation

99

53

33

46

258

90

21

119

22

111

6

1

0

7

42

-

-

21

-

84

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

93

52

32

39

215

90

21

98

22

27

7

1

-

0

119

-

-

24

-

81

92

52

33

45

138

90

21

95

22

29

3,361

2,943

1,376

2,005

9,543

3,675

987

5,488

1,101

5,077

5.9%

3.6%

4.8%

4.6%

5.4%

4.9%

4.3%

4.3%

4.0%

4.4%

5.5%

3.5%

4.7%

3.9%

4.5%

4.9%

4.3%

3.6%

4.0%

1.1%

Capital expenditure
NCF
Book value
NOI yield(Note 2)

NOI yield after depreciation(Note 2)

Note 1: Not disclosed because tenant’s consent was not obtained.
Note 2: Based on book value

64

Basic Information/Data

Financial Summary by Property (3/4)

65

15 th FP: May 2023 － October 2023
Property Name

Hotel Sunroute
NiigataSuper Hotel
Sendai Hirosedori

Daiwa Roynet
Hotel Akita

Super Hotel
Osaka Tennoji

Super Hotel
Kyoto
Karasumagojo

Super Hotel
Saitama Omiya

EN HOTEL Ise(Note 4)

Operating days

184

184

184

184

184

184

Operating revenue

70

69

44

37

35

70

69

44

37

Lease business revenue
Other lease business revenue

Hotel Wing
International
Select Ueno/
Okachimachi

Comfort Hotel
Kitakami

184

184

Smile Hotel
Naha
City Resort

184

Smile Hotel
Hakataeki-Mae

Smile Hotel
Nagoya-Sakae

184

184

184

31

62

62

54

35

31

62

62

54

0

-

-

-

-

0

-

-

-

10

9

6

4

5

4

Not

Not

Not

19

6

7

Outsourcing service expenses

1

1

-

-

-

-

disclosed

disclosed

disclosed

000

Utilities expenses

0

-

-

-

-

-

(Note 1)

(Note 1)

(Note 1)---

Property and other taxes

4

7

6

3

4

3

7

5

5

Repair expenses

3

0

-

-

-

-

10

-

1

Other expenses related to lease business

0

0

0

0

0

0

1

0

0

59

59

37

33

30

26

52

17

80

42

55

46

17

17

6

3

6

2

10

8

10

10

8

7

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

42

41

31

30

24

24

41

8

69

31

47

39

19

-

-

-

-

-

13

0

-

7

0

3

39

59

37

33

30

26

39

17

80

34

55

43

2,126

1,860

1,220

1,236

1,052

1,004

1,982

776

3,780

4,016

3,773

2,954

5.6%

6.3%

6.1%

5.3%

5.8%

5.3%

5.2%

4.5%

4.2%

2.1%

2.9%

3.1%

3.9%

4.5%

5.1%

4.8%

4.6%

4.7%

4.2%

2.2%

3.7%

1.6%

2.5%

2.6%

Operating expense

NOI
Depreciation

Capital expenditure
NCF
Book value
NOI yield(Note 2)

NOI yield after depreciation(Note 2)

Note 1: Not disclosed because tenant’s consent was not obtained.
Note 2: Based on book value

65Basic Information/Data

Financial Summary by Property (4/4)

66

15 th FP: May 2023 － October 2023
Property Name

Fiel Johoku

Operating days

184

Operating revenue

Rokko Island DC

Odawara Material
Storage andDelivery Center(land)

184

184

YokohamaDaikokucho
MaintenanceCenter (land)Tokyo
Eiseigakuen
Senmongakko

184

OfficeRetailHotel

Residence

Other

184

184

184

184

184

184

67

5,744

3,050

1,526

644

67

455

Lease business revenue

65

4,740

2,307

1,268

643

65

454

Other lease business revenue

1

1,003

743

258

0

1

0

Operating expense

184

Portfolio

4

Not

Not

Not

Not

1,994

1,182

668

102

4

36

Outsourcing service expenses

0

disclosed

disclosed

disclosed

disclosed

391

254

126

6

0

3

Utilities expenses-(Note 1)

(Note 1)

(Note 1)

(Note 1)

681

484

196

0

-

-

Property and other taxes

-

452

234

124

63

-

31

Repair expenses

1

127

69

32

23

1

0

Other expenses related to lease business

1

340

140

189

7

1

1

NOI
Depreciation

62

219

56

29

114

3,750

1,867

858

542

62

418

8

52

-

-

14

708

358

164

110

8

66

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

54

166

56

29

99

3,041

1,509

694

431

54

352

0

-

-

-

4

673

388

235

44

0

4

62

219

56

29

109

3,076

1,479

622

497

62

413

2,308

7,622

2,423

1,514

4,118

167,832

88,49735,56225,783

2,308

15,679

5.4%

5.7%

4.6%

3.8%

5.5%

4.4%

4.2%

4.8%

4.2%

5.4%

5.3%

4.7%

4.3%

4.6%

3.8%

4.8%

3.6%

3.4%

3.9%

3.3%

4.7%

4.5%

Capital expenditure
NCF
Book value
NOI yield(Note 2)

NOI yield after depreciation(Note 2)

Note 1: Not disclosed because tenant’s consent was not obtained.
Note 2: Based on book value

66Basic Information/Data

67

Appraisal Value Summary (as of October 31, 2023) (1/3)
Book Value
Asset Type

OfficeProperty Name

Appraisal

ChangeValue Calculated

Value

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

Terminal
Capitalization
Rate(million yen)(million yen)(million yen)

Shinagawa Seaside Parktower

19,98722,253

2,266

11.3%

21,04822,316

3.7%

22,190

3.4%

3.8%

Kawasaki Tech Center

23,84725,000

1,152

4.8%

19,70025,7004.1%

24,700

3.9%

4.3%

Shinjuku Eastside Square

9,672

10,900

1,227

12.7%

10,100

11,1003.5%

10,700

3.3%

3.7%

Tokyo Front Terrace

11,024

10,692

-331

-3.0%

10,692

10,742

3.6%

10,6423.3%

3.6%

MI Terrace Nagoya-Fushimi

8,872

10,800

1,927

21.7%

11,30010,9003.5%

10,700

3.3%

3.6%

Hiroshima Rijo-dori Building

2,350

2,520

169

7.2%

2,260

2,600

4.5%

2,490

4.3%

4.7%

BizMiiX Yodoyabashi

1,987

2,210

222

11.2%

1,090

2,310

4.6%

2,160

4.4%

4.8%

TCA Building

2,274

2,270

-4

-0.2%

2,170

2,350

4.0%

2,240

3.8%

4.2%

Ehime Building/Hiroshima

2,878

3,020

141

4.9%

3,350

3,120

4.3%

2,990

4.1%

4.5%

MI Terrace Sendai Hirose-dori

2,037

2,320

282

13.9%

2,410

2,400

4.2%

2,280

4.0%

4.4%

MI Terrace Kita-Ueno

3,597

4,070

472

13.1%

3,970

4,200

3.7%

4,010

3.8%

3.9%

88,52896,056

7,527

8.5%

88,09197,739-95,102--

Office(ratio)Capitalization Method

Note: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.

67

Basic Information/Data

68

Appraisal Value Summary (as of October 31, 2023) (2/3)
Book Value
Asset Type

RetailProperty Name

Appraisal

ChangeValue Calculated

Value(ratio)Capitalization Method

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

Terminal
Capitalization
Rate(million yen)(million yen)(million yen)

Shibuya World East Building

3,363

5,560

2,196

65.3%

4,510

5,630

3.1%

5,490

2.9%

3.2%

THINGS Aoyama

2,942

3,330

387

13.2%

3,440

3,430

3.1%

3,280

2.9%

3.3%

MI Cube Sendai Clisroad

1,375

1,450

74

5.4%

1,070

1,480

4.2%

1,440

4.0%

4.4%

MI Cube Machida East

1,999

2,250

250

12.5%

1,900

2,360

4.2%

2,200

4.3%

4.4%

AEON Kasai

9,620

9,540

-80

-0.8%

10,000

9,580

4.9%

9,490

4.5%

5.1%

CAINZ MALL Hikone (land)

3,675

4,290

614

16.7%

4,530

4,290

4.5%

4,290

4.5%

-

MaxValu Takatori (land)

987

1,050

62

6.3%

950

1,080

4.3%

1,050

4.2%

-

Tsurumi Fuga 1

5,491

5,770

278

5.1%

5,600

5,870

4.2%

5,720

4.3%

4.4%

BIGMOTOR Ginan (land)

1,101

1,200

98

8.9%

1,190

1,230

4.2%

1,200

4.1%

-

Mi-Nara

5,076

3,780

-1,296-25.5%

6,220

3,700

5.6%

3,810

5.1%

5.6%

Retail

35,634

38,220

2,585

7.3%

39,41038,650-37,970--Note: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.

68Basic Information/Data

69

Appraisal Value Summary (as of October 31, 2023) (3/3)
Book Value
Asset Type

Hotel

Property Name

Value
(ratio)Capitalization Method

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

Terminal
Capitalization
Rate(million yen)

Hotel Sunroute Niigata

2,128

2,300

171

8.0%

1,220

2,360

5.1%

2,320

4.9%

5.3%

Daiwa Roynet Hotel Akita

1,842

2,210

367

19.9%

1,020

2,170

5.2%

2,220

5.0%

5.4%

Super Hotel Sendai/Hirose-dori

1,213

1,650

436

35.9%

1,700

1,670

4.4%

1,630

4.2%

4.6%

Super Hotel Osaka/Tennoji

1,232

1,590

357

29.0%

1,120

1,610

4.1%

1,560

3.9%

4.3%

Super Hotel Saitama/Omiya

1,045

1,330

284

27.2%

1,260

1,340

4.5%

1,310

4.3%

4.7%

Super Hotel Kyoto/Karasumagojo

1,001

1,300

298

29.8%

1,310

1,320

4.0%

1,270

3.7%

4.3%

Ise City Hotel Annex

1,985

1,910

-75

-3.8%

403

1,920

5.3%

1,910

5.1%

5.5%

768

821

52

6.9%

608

822

4.9%

821

4.7%

5.1%

Hotel Wing International Select Ueno/Okachimachi

3,770

4,190

419

11.1%

2,960

4,270

3.6%

4,160

3.4%

3.8%

Smile Hotel Naha City Resort

4,014

4,090

75

1.9%

2,000

4,220

4.9%

4,030

4.7%

5.1%

Smile Hotel Hakataeki-Mae

3,765

3,710

-55

-1.5%

2,160

3,810

4.1%

3,660

3.9%

4.3%

Smile Hotel Nagoya-Sakae

2,949

2,960

10

0.3%

1,920

3,040

4.3%

2,930

4.1%

4.5%

25,71828,061

2,342

9.1%

17,681

28,552-

27,821--Fiel Johoku

2,300

2,510

209

9.1%

1,320

2,640

4.5%

2,460

4.2%

4.6%

Residence

2,300

2,510

209

9.1%

1,320

2,640

-

2,460

-

-

Rokko Island DC

7,570

9,150

1,579

20.9%

8,412

9,198

4.7%

9,097

4.5%

4.9%

Odawara Material Storage and Delivery Center (land)

2,423

2,560

136

5.6%

2,410

2,550

4.2%

2,560

4.1%

-

Yokohama-Daikokucho Maintenance Center (land)

1,514

1,590

75

5.0%

1,500

1,590

3.5%

1,590

3.5%

-

Tokyo Eiseigakuen Senmongakko

4,109

4,360

250

6.1%

2,590

4,410

4.9%

4,340

4.7%

5.1%

15,617

17,660

2,042

13.0%

14,912

17,748-17,587--

167,799

182,507

14,7078.8%

161,415

185,330-

180,940

-

-

Other
Total

Value Calculated(million yen)

Hotel

Other

Change(million yen)

Comfort Hotel Kitakami

Residence

Appraisal

Note: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.

69

Basic Information/Data70

Appraisal Value Summary (Changes from Previous Period) (1/3)
Appraisal Value
Asset Type

OfficeProperty Name(million yen)

Changes inAppraisal(amount)

Capitalization Rate
Changes inAppraisal(ratio)Discount Rate(change)

Terminal Capitalization Rate(change)(change)

Shinagawa Seaside Parktower

22,253

-317

-1.4%

3.7%

-

3.4%

-

3.8%

-

Kawasaki Tech Center

25,000

400

1.6%

4.1%

-0.1%

3.9%

-0.1%

4.3%

-0.1%

Shinjuku Eastside Square

10,900

-

-

3.5%

-

3.3%

-

3.7%

-

Tokyo Front Terrace

10,692

-100

-0.9%

3.6%

-

3.3%

-

3.6%

-

MI Terrace Nagoya-Fushimi

10,800

100

0.9%

3.5%

-0.1%

3.3%

-0.1%

3.6%

-0.1%

Hiroshima Rijo-dori Building

2,520

30

1.2%

4.5%

-0.1%

4.3%

-0.1%

4.7%

-0.1%

BizMiiX Yodoyabashi

2,210

-40

-1.8%

4.6%

-

4.4%

-

4.8%

-

TCA Building

2,270

-

-

4.0%

-0.1%

3.8%

-0.1%

4.2%

-0.1%

Ehime Building/Hiroshima

3,020

30

1.0%

4.3%

-0.1%

4.1%

-0.1%

4.5%

-0.1%

MI Terrace Sendai Hirose-dori

2,320

-

-

4.2%

-0.1%

4.0%

-0.1%

4.4%

-0.1%

MI Terrace Kita-Ueno

4,070

-

-

3.7%

-

3.8%

-

3.9%

-

96,056

102

0.1%

-

-

-

-

-

-

Office70

Basic Information/Data71

Appraisal Value Summary (Changes from Previous Period) (2/3)
Appraisal Value
Asset Type

RetailProperty Name(million yen)

Changes inAppraisal(amount)

Capitalization Rate
Changes inAppraisal(ratio)Discount Rate(change)

Terminal Capitalization Rate(change)(change)

Shibuya World East Building

5,560

140

2.6%

3.1%

-0.1%

2.9%

-0.1%

3.2%

-0.2%

THINGS Aoyama

3,330

90

2.8%

3.1%

-0.1%

2.9%

-0.1%

3.3%

-0.1%

MI Cube Sendai Clisroad

1,450

-

-

4.2%

-0.1%

4.0%

-0.1%

4.4%

-0.1%

MI Cube Machida East

2,250

-

-

4.2%

-

4.3%

-

4.4%

-

AEON Kasai

9,540

-

-

4.9%

-

4.5%

-

5.1%

-

CAINZ MALL Hikone (land)

4,290

10

0.2%

4.5%

-

4.5%

-

-

-

MaxValu Takatori (land)

1,050

-

-

4.3%

-

4.2%

-

-

-

Tsurumi Fuga 1

5,770

-40

-0.7%

4.2%

-

4.3%

-

4.4%

0.0%

BIGMOTOR Ginan (land)

1,200

-

-

4.2%

-

4.1%

-

-

-

Mi-Nara

3,780

-

-

5.6%

-

5.1%

-

5.6%

-

Retail

38,220

200

0.5%

-

-

-

-

-

-

71

Basic Information/Data

72

Appraisal Value Summary (Changes from Previous Period) (3/3)
Appraisal Value
Asset Type

Hotel

Property Name(change)(change)(change)

-

-

5.1%

-0.1%

4.9%

-0.1%

5.3%

-0.1%

Daiwa Roynet Hotel Akita

2,210

-

-

5.2%

-0.1%

5.0%

-0.1%

5.4%

-0.1%

Super Hotel Sendai/Hirose-dori

1,650

-20

-1.2%

4.4%

-

4.2%

-

4.6%

-

Super Hotel Osaka/Tennoji

1,590

-

-

4.1%

-

3.9%

-

4.3%

-

Super Hotel Saitama/Omiya

1,330

-

-

4.5%

-

4.3%

-

4.7%

-

Super Hotel Kyoto/Karasumagojo

1,300

10

0.8%

4.0%

-0.1%

3.7%

-0.1%

4.3%

-0.1%

Ise City Hotel Annex

1,910

20

1.1%

5.3%

-0.1%

5.1%

-0.1%

5.5%

-0.1%

821

13

1.6%

4.9%

-0.1%

4.7%

-0.1%

5.1%

-0.1%

Hotel Wing International Select Ueno/Okachimachi

4,190

40

1.0%

3.6%

-0.1%

3.4%

-0.1%

3.8%

-0.1%

Smile Hotel Naha City Resort

4,090

90

2.3%

4.9%

-0.1%

4.7%

-0.1%

5.1%

-0.1%

Smile Hotel Hakataeki-Mae

3,710

40

1.1%

4.1%

-0.1%

3.9%

-0.1%

4.3%

-0.1%

Smile Hotel Nagoya-Sakae

2,960

-

-

4.3%

-0.1%

4.1%

-0.1%

4.5%

-0.1%

28,061

193

0.7%

-

-

-

-

-

-

Fiel Johoku

2,510

10

0.4%

4.5%

0.0%

4.2%

-

4.6%

-

Residence

2,510

10

0.4%

-

-

-

-

-

-

Rokko Island DC

9,150

80

0.9%

4.7%

-0.1%

4.5%

-0.1%

4.9%

-0.1%

Odawara Material Storage and Delivery Center (land)

2,560

-

-

4.2%

-

4.1%

-

-

-

Yokohama-Daikokucho Maintenance Center (land)

1,590

-10

-0.6%

3.5%

-

3.5%

-

-

-

Tokyo Eiseigakuen Senmongakko

4,360

70

1.6%

4.9%

-0.1%

4.7%

-0.1%

5.1%

-0.1%

17,660

140

0.8%

-

-

-

-

-

-

182,507

645

0.4%

-

-

-

-

-

-

Other
Total

Changes inAppraisal(ratio)Terminal Capitalization Rate

2,300

Hotel

Other

Changes inAppraisal(amount)

Discount Rate

Hotel Sunroute Niigata

Comfort Hotel Kitakami

Residence(million yen)

Capitalization Rate

72

Basic Information/Data73

Overview of Loans (as of October 31, 2023)
Amount(million yen)

Debt Providers

Interest Rate

Drawdown DateTerm

Mturity Date

Principal
Repayment Method

Description

Long-term

Sumitomo Mitsui Banking Corporation / Resona Bank

8,000

0.75%

December 16, 2016

10.0 years November 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank

5,000

0.59% (Note)

December 16, 2016

8.0 years November 29,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Banking Corporation / The Bank of Fukuoka / Resona Bank

10,0000.50% (Note)

December 16, 2016

7.0 years November 30,2023

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Development Bank of Japan

2,000

0.62%

December 16, 2016

7.0 years November 30,2023

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Trust & Banking

2,000

0.45%

April 28, 2017

7.0 years April 30,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank / SBI Shinsei Bank

3,000

0.54% (Note)

October 26, 2017

7.8 years July 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

The Nanto Bank

1,000

0.54% (Note)

October 26, 2017

7.8 years July 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Resona Bank

1,000

0.71% (Note)

October 26, 2017

9.8 years July 30,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Banking Corporation / The Bank of Fukuoka

5,000

0.73% (Note)

October 31, 201710.0 years October 29,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

SBI Shinsei Bank

1,000

0.57% (Note)

March 01, 2018

7.9 years January 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Resona Bank

500

0.57% (Note)

March 01, 2018

7.9 years January 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,000

0.48%

March 01, 2018

5.9 years January 31,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumiomo Mitsui Banking Corporation

2,000

0.53% (Note)

May 15, 2018

7.0 years April 30,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,500

0.56%

May 15, 2018

7.0 years April 30,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Trust & Banking

1,700

0.62%

August 01, 201810.0 years July 31,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

2,500

0.68%

November 01, 2018

8.0 years October 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumiomo Mitsui Banking Corporation

3,000

0.57% (Note)

November 01, 2018

7.0 years October 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

MUFG Bank

1,500

0.45%

April 30, 2021

3.0 years April 30,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

MUFG Bank

1,500

0.38%

October 29, 2021

3.0 years October 31,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,500

0.40% (Note)

November 30, 2021

4.9 years October 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

3,300

0.46% (Note)

November 30, 2021

7.0 years November 30,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

4,000

0.51% (Note)

November 30, 2021

8.0 years November 30,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

MUFG Bank

1,000

0.38%

January 12, 2022

3.0 years December 30,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank

1,000

0.38% (Note)

January 12, 2022

5.0 years December 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

SBI Shinsei Bank

1,000

0.43% (Note)

January 12, 2022

5.0 years December 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumiomo Mitsui Banking Corporation

1,000

0.48% (Note)

January 12, 2022

7.0 years December 29,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,000

0.62% (Note)

March 25, 2022

6.9 years February 28,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Resona Bank

300

0.60% (Note)

March 25, 2022

6.9 years February 28,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank / SBI Shinsei Bank / The Juhachi-Shinwa Bank

7,000

0.72% (Note)

November 30, 2022

5.0 years November 30,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

The Bank of Fukuoka

1,500

0.68% (Note)

June 19, 2023

5.0 years May 31,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank / SBI Shinsei Bank / Kansai Mirai Bank / The Chiba Bank

3,500

1.05% (Note)

October 31, 2023

5.0 years October 31,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #1

1,000

0.64%

July 26, 201810.0 years July 26,2028-

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #2

1,000

0.80%

July 13, 2020

10.0 years July 12,2030-

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #3

2,000

0.70%

September 28, 2021

10.0 years September 26,2031-

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #4

1,000

0.98%

September 28, 2021

15.0 years September 26,2036-

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #5

1,200

0.70%

November 30, 2021

10.0 years November 28,2031-

Unsecured and Non-guaranteed

85,5000.62%

Total/Average(Note)

7.4 years

Note: MIRAI signed an interest rate swap agreement. Accordingly, the interest rate provided above bas been fixed under the terms of this agreement and will be used in repayment.

73

Basic Information/Data

74

Unitholders’ Composition (as of the End of 15th FP)
Number of Unitholders / Ownership by Investor Type
Number ofInvestment
Units% of Total

vs. Previous
FP (Note)

Number ofUnitholders

Major Unitholders

vs. PreviousFP% of Total

Unitholders

Number ofInvestment
Units% of Total

Individuals/Others

657,124

37.1%(1.6%)

36,19897.7%(0.1％)

Custody Bank of Japan, Ltd. (Trust account)

251,278

14.2%

Financial
institutions

723,64140.9%(0.3%)

81

0.2%(0.0％)The Master Trust Bank of Japan, Ltd. (Trust account)

210,962

11.9%

Non-Japanese

285,161

16.1%

1.8％

372

1.0%

0.1％

The Nomura Trust and Banking Co., Ltd.
(Investment trust account)

88,466

5.0%

Other Japanese
corporations

105,514

6.0%

0.1%

407

1.1%

(0.0％)JP MORGAN CHASE BANK 385771

30,9601.7%

1,771,440

100.0%

37,058100.0%-

STATE STREET BANK WEST CLIENT- TREATY 505234

28,222

1.6%

MITSUI & CO. ASSET MANAGEMENT HOLDINGS LTD.

20,000

1.1%

IDERA Capital Management Ltd.

20,0001.1%

SSBTC CLIENT OMNIBUS ACCOUNT

18,001

1.0%

SMBC Nikko Securities Inc.

15,7100.9%

JAPAN SECURITIES FINANCE CO., LTD.

15,5400.9%

699,139

39.5%

Total

NonJapanese
16.1%

Other JapaneseCorporations
6.0%

Number ofInvestment
Units

Financial
institutions
40.9%

-

Financial
instuitutions
0.2%
Individuals/Others
37.1%

NonJapanese
1.0%

Other
Japanese
Corporations
1.1%

Number ofUnitholders

Individuals/Others
97.7%

Total

74

Basic Information/Data

Introduction of Unitholder Benefit Program (Discounted Hotel Rates)

75

Implement the Benefit Program to increase unitholders’ profits and support the hotel industry
Overview of the Program

Eligible
Unitholders

All unitholders whose names arelisted or recorded on unitholders’registry of MIRAI as of October 31,
2023 and who hold at least one
unit

Introduction of Applicable Hotels (Note)EN HOTEL /Court Hotel etc.
(17 hotels)(There are no requirements for thenumber of units held.)

Details of
the Benefit
Program

Preferential rates will be applied
when eligible unitholders stay at
the following applicable hotels
1. EN HOTEL / Court Hotel etc.
2. Hotel Wing International

Period ofValidity

From January 11, 2024
to December 31, 2024

Note: The number of locations is based on information of domestic locations as of October 2023

EN Hotel Ise

KUMEJIMA EEF
BEACH HOTEL

Hotel Wing
International SelectUeno/Okachimachi

Hotel Wing
International SelectNagoya Sakae

Hotel Wing
International(41 hotels)

75

Basic Information/Data

76

Company Profile
Asset Manager
General Meeting of
Shareholders

Name

Mitsui Bussan & IDERA Partners Co., Ltd.

Address

3-2-1 Nishi-kanda Chiyoda-ku, Tokyo 101-0065, Japan

Management

Corporate Auditor

Representative Director, President/ Michio Suganuma
Representative Director, Vice President CIO/ Hiroyuki Iwasaki
Executive Director, CFO and GM of Accounting & Administrative Division/ Kunihiro Ueda
Executive Director, GM of Investment & Asset Management Division/ Satoshi Obara
Director (part-time)/ Tamotsu Hagino
Director (part-time)/ Seiji Takeuchi
Corporate Auditor (part-time)/ Jun Notoya

Shareholders

Mitsui & Co. Asset Management Holdings Ltd. (50%)
IDERA Capital Management Ltd. (50%)

Paid-in Capital¥200 million

Registration &Licenses

Building lots and building transaction business; Tokyo Governor's Office license (2) No.98041
Discretionary transaction agent; Minister of Land, Infrastructure, and Transport Approval No.94
Financial Instruments Business Operator (Director of Kanto Finance Bureau (Kinsho) No.2876)

Investment
Management
Committee

Board of Directors
Compliance
Committee
President
Compliance Officer

Internal Audit Div.
Investment & AssetManagement Div.

Investment GroupAccounting &Administrative Div.

Finance & Planning
Div.

Asset Management
Group

Governance Structure of MIRAI
2 Asset custody agreement

Sponsors
Mitsui & Co. Asset Management HoldingsLtd.

3 General administrationagreement (accounting)

IDERA Capital Management Ltd.

8 Sponsor support agreement (Note)
Board of Directors

External Asset Manager
Mitsui Bussan & IDERA Partners Co., Ltd.

Asset Custodian
Sumitomo Mitsui Trust Bank, Limited

Asset management1agreement

GeneralMeeting ofUnitholders

Executive Director:
Michio Suganuma
Supervisory Director:
Takehiko Negishi
Supervisory Director:
Hideaki Nishii

Note: Sponsor support agreements are entered into separately between each of the sponsor company and the Asset Management Company and MIRAI.

Accounting
AuditorErnst & Young
ShinNihon LLC

General Administrator
Reiwa Accounting Holdings Co., Ltd.

4 General administrationagreement (tax payment)

General Administrator

5 General administrationagreement(institutional administration)

General Administrator
Mizuho Trust & Banking Co., Ltd

6 Transfer agency agreement
Fiscal Agency Agreement
7(investment corporation
bonds)

Reiwa Tax Corporation

Transfer Agent
Sumitomo Mitsui Trust Bank, Limited
General Administrator
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.

76

Disclaimer

77

Monetary amounts are rounded down to billions, 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 conditions, including those regarding anticipated future developments and business environmental trends, and these assumptions andconditions may not always be correct. Such forward-looking statements assume the investment policy of MIRAI, the market environment, interest rate conditions,business practices and other fact relationships and applicable laws and regulations as of the date this material was published and they do not reflect or take into
consideration any change in circumstances occurring after such date. Forward-looking statements involve known and unknown risks, uncertainties and otherfactors, whether express or implied, and the actual performance, operating results, financial situation and other results of MIRAI may vary significantly due to avariety of factors.
This material is provided for your information and does not constitute a solicitation to buy the investment securities of MIRAI or to conclude any other financial
instrument transaction contract. In making investments, investors should do so based on judgements and responsibilities of their own.
The investment units of MIRAI are closed-end fund investment units, whereby investment units are not redeemable at the request of investors. Investors wishingto 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, andother 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, may suffer losses.
MIRAI plans to make cash distributions to investors, but whether or not distributions are made and the amount of distributions 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 otherfactors would cause fiscal-period income to vary greatly, which would result in change in amount of distribution to be made.
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. MIRAI 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 of misprints. MIRAI bears no responsibility for the accuracy. This material issubject to change/discontinuation without notice. MIRAI is not obliged to update or announce any of the information contained in this material (including
forward-looking statements).
MIRAI holds the copyrights to the information appearing in this material. Copying, altering, publishing, distributing, appropriating, or displaying this informationor using it for commercial purposes without the prior approval of MIRAI is prohibited. Also, trademarks (trademarks, logos, and service marks) related to MIRAI
appearing in this material are owned by MIRAI, and copying, altering, publishing, distributing, appropriating, or reproducing such trademarks or using them forcommercial purposes without the permission of MIRAI is prohibited.
This material may include properties which are not held by or planned to be acquired by MIRAI.
This material in intended for the use of residents of Japan only.
@ MIRAI Corporation. All rights reserved.
Asset Manger: Mitsui & IDERA Partners Co., Ltd.
-Financial Instruments Business Operator (Director of Kanto Finance Bureau (Kinsho) No. 2876)
77