MIRAI Corporation
Semi Annual Report
For the Fiscal Period ended October 31, 2022 (The 13th Period)－ 1－

Primary Data

Distributions

The 13th Period
The 14th Period
The 15th Period
Actual distributions per unit
Forecast distributions per unit (Note)
Forecast distributions per unit (Note)(Start of cash distribution payment on (The Fiscal Period ending April 30, 2023) (The Fiscal Period ending October 31,
January 13, 2023)
2023)
1,313 yen
1,285 yen
1,100 yen
(Forecast: 1,285 yen)
(Note) These forecasts are calculated based on certain assumptions as of December 15, 2022 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 forecasts
should not be construed as guarantee of distribution per unit (DPU).

Financial Results
Operating revenue(billion yen)
6

5.3

5.4

1,563

1,561

5.3

Net profit

DPU

5.1

4.9

(yen)
5.6

5.2

1,800
1,600

1,429

4

1,247

1,289

1,267

1,313

2
2.4

2.5

2.3

2.0

2.1

2.2

2.3

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

0



1,400
1,200
1,000

Portfolio (as of the End of October 2022)

Stability increased due to progress in MIRAI Mid-Term Management Plan 2025 “Smart Defense & Offense with Aligned Interest”.
Number of properties: 37
Assets Under Management (AUM): 163.1 billion yen
Appraisal value: 176.8 billion yen
Occupancy rate
: 98.1%Net Operating Income (NOI) yield (13th FP result): 4.5% *based on book value
Portfolio Probable Maximum Loss (PML): 2.9%
Ratio by Tenant

Ratio by Asset Type

Ratio by Area(based on rent)(based on acquisiton price)
Others(based on acquisiton price)
Others

Hotel

9.6%

Nagoyaarea

15.9%
Top 10Core Assets

36.9%

87.4%

Others63.1%
Retail13.6%

9.0%
Office

Osaka
area

52.6%

15.9%

Three
Metropolitan
Areas

86.4%

Tokyo
area

61.4%

21.9%

(Note) Ratio by tenant is based on lease contract in place with end tenants as of the end of October 2022.

Finance (as of the End of October 2022)

Stable financial base maintained on the back of Mitsui & Co.’s credit.
Loan To Value (LTV) (based on total assets) : 48.6%
Long-term fixed interest debt ratio: 100.0%
Average interest rate
: 0.56%
Average remaining maturity: 3.4 years
Rating: Japan Credit Rating Agency, Ltd. (JCR) / A+ (Stable)
Rating and Investment Information, Inc. (R&I) / A (Stable)

－ 2

－



ESG
 Ratio of assets with environmental certifications
Continue to consider increasing the certification rate across the portfolio by acquiring additional environmental
certifications in the future.

Ratio of Assets with Environmental Certifications: 74.3%
 GRESB Real Estate Assessment (ESG benchmark for real estate)
Received 3 Star and Green Star ratings of GRESB Real Estate Assessment in 2022, one rank higher than last
year.
Evaluated points Acquired third-party assurance for environmental performance data
 Promoted green leasing and distributed sustainability guides
 Promotion of Sustainability Disclosure
MIRAI’s first sustainability report was issued in October 2022.
Acquisition of third-party assurance for GHG emissions and other data.
 Ongoing Community Contribution Activities
Promoting community contribution activities through the organization and sponsorship of events.
Conducting various community support activities, mainly in response to COVID-19, in cooperation with local
government.
 Joint Event with a local sports team (in Nara-shi, Nara) Providing as a recovery accommodation facility for patients with mild cases of COVID-19 and vaccinationsites (in Naha-shi, Okinawa / Nara-shi, Nara) Promoting an easy-to-work-in environment for employees
Building a workplace environment in which Asset Manager employees can work comfortably Communication space shared by group companies Booths for web conferencing

Focus on developing a system that enables each employee to fully demonstrate his or her abilities through humanresource development by providing training support, etc.
 Initiatives for tenants and facility usersEfficient installation and renovation of facilities to make property operations more comfortable for tenants andusers Renewal of facilities in each property (LED lighting in common areas, etc. in MI Terrace Nagoya Fushimi)
 Energy saving measures with the cooperation of tenants and users in Shinjuku Eastside Square
Enhancing events and ESG-related information disclosure


－ 3

－

1 Overview of Asset Management(1) Operating Results of MIRAI Corporation (hereinafter “MIRAI”)
The 9th Period
From May 1, 2020
to Oct. 31, 2020

PeriodThe 10th Period
From Nov. 1, 2020
to Apr. 30, 2021

The 11th Period
From May 1, 2021
to Oct. 31, 2021

The 12th Period
From Nov. 1, 2021
to Apr. 30, 2022

The 13th Period
From May 1, 2022
to Oct. 31, 2022

Operating revenue(Million yen)

5,367

4,973

5,113

5,275

5,666

Operating expenses(Million yen)

2,744

2,652

2,716

2,727

3,054

Operating income(Million yen)

2,622

2,321

2,397

2,547

2,611

Ordinary income(Million yen)

2,378

2,073

2,144

2,245

2,324

Net income(Million yen)

2,376

2,072

2,143

2,244

2,324

Total assets(Million yen)

159,222

161,815

161,226

171,982

172,792[Changes from the previous period]
Net assets[Changes from the previous period](%)[(1.1)][1.6][(0.4)]

[6.7]

[0.5]

(Million yen)

75,42875,11075,30880,74381,028[0.2][(0.4)]

[0.3]

[7.2]

[0.4]

Interest-bearing debt

(Million yen)(%)

75,70078,70078,70084,00084,000Unitholders’ capital (Note 3)(Million yen)

73,51673,51673,51678,49978,499Total number of outstanding investment units(Units)

1,662,240

1,662,240

1,662,240

1,771,440

1,771,440

Net assets per unit

(Yen)

45,37745,18645,30545,58045,741

Total distributions(Million yen)

2,375

2,072

2,142

2,244

2,325

Distributions per unit

(Yen)

1,429

1,247

1,289

1,267

1,313

Of which, profit distribution per unit

(Yen)

1,429

1,238

1,289

1,267

1,313

Of which, distributions in excess of earnings per unit

(Yen)

-

9

-

-

-

Ordinary income to total assets (Note 4)

(%)

1.5

1.3

1.3

1.3

1.3

Net income to net assets (Note 4)

(%)

3.1

2.8

2.8

2.9

2.9

Net assets to total assets at end of period (Note 4)

(%)

47.4

46.4

46.7

46.9

46.9

(%)

[0.4]

[(1.0)]

[0.3]

[0.2]

[(0.1)]

(%)

99.9

99.3

100.0

100.0

100.1

[Changes from the previous period]
Payout ratio (Note 4)(Note 1) The fiscal period of MIRAI is six months from May 1 to October 31 and from November 1 to April 30 of the following year.
(Note 2) Unless otherwise stated, all figures are rounded down to the nearest million yen, and percentages are rounded to the first decimal place.
(Note 3) Unitholders’ capital does not take into account changes in unitholders’ capital due to the implementation of distributions in excess of earnings related to the reserve for adjustment of temporary differences, etc.
(Note 4) Calculated based on the following formula.
Ordinary income to total assets

Ordinary income / {(Total assets at beginning of period + Total assets at end of period) / 2} * 100

Net income to net assets

Net income / {(Net assets at beginning of period + Net assets at end of period) / 2} * 100

Net assets to total assets at end of period (%)

Net assets at end of period / Total assets at end of period * 100

Payout ratio

Total distributions (excluding distributions in excess of earnings) / Net income * 100(2) Summary of Operating Results for the Fiscal Period under Review(i) Main History of MIRAIMIRAI is diversified J-REIT. Based on the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951;
including revisions enforced thereafter) (hereinafter “AITIC”), MIRAI was founded on December 4, 2015 with a capital contribution of
150 million yen (750 units), by Mitsui Bussan & IDERA Partners Co., Ltd. (hereinafter the “Asset manager”) as the founding planner
and was listed on the REIT section of the Tokyo Stock Exchange on December 16, 2016 (securities code: 3476). During the fiscal period
under review, MIRAI conducted a public offering in December 2021 and a third-party allotment in January 2022. As of October 31,
2022, the total number of outstanding investment units are 1,771,440 and MIRAI owns 37 properties (total acquisition price of 163,134
million yen).
MIRAI positions assets located in the three major metropolitan areas of Japan with high population concentrations as its main investment
targets and aims to obtain mid-to-long term stable cash flows and sustained growth in unitholders’ value by building a portfolio centeredon its “Core Assets” (Note).
(Note) “Core Assets” means the assets that constitute the core of MIRAI’s portfolio. Specifically, among traditional investment properties such as offices, retail properties, hotels, residential and logistics properties. Occupancy
rates of 80% or more must be secured in principle (including cases where such occupancy rates are expected) with MIRAI to determine a stable rental income to be expected.

(ii) Operating Environment and Business Performance
During the fiscal period under review, the Japanese economy showed signs of picking up as both COVID-19 infection control andeconomic activity progressed, despite the impact of rising energy prices. While the hotel sector was on a track to recovery, MIRAI wasforced to deal with new downside risks, such as rising utilities expenses, especially for offices and retail facilities. In the retail sector,
operational methods in COVID-19 crisis are becoming established, various measures to improve attractiveness had been effective at MiNara, a retail complex in Nara Prefecture. With respect to the office leasing market, cancellations continued to increase due to changes
in work styles, such as teleworking, and deterioration in corporate performance in some of the large-scale offices in Tokyo area, but on
the other hand the vacant spaces were being backfilled.
Under such circumstances, MIRAI disposed “Comfort Hotel Nagano” (disposition price: 670 million yen) on May 31, 2022 and 50%
quasi co-ownership of “Orico Hakataeki Minami Building” (disposition price: 1,000 million yen) on October 31, 2022. As a result, as－ 4－

of the end of the 13th fiscal period, MIRAI had 37 properties under management, with a total acquisition price of 163,134 million yen,a total leasable area of 368,855.24 sqm, and occupancy rate of 98.1%.
(iii) Overview of Fund Procurement
During this fiscal period under review, MIRAI did not raise any funds. As a result, the balance of unitholders’ capital as of the end of
the 13th fiscal period was 78,499 million yen and the total number of outstanding investment units was 1,771,440 units. The balance ofborrowings and investment corporation bonds as of the end of the 13th fiscal period was 84,000 million yen (of which 10,500 million
yen was current portion of long-term borrowings, 67,300 million yen was long-term borrowings and 6,200 million yen was investment
corporation bonds).
For the purpose of securing flexible and stable fund procurement and structuring an even stronger financial base, MIRAI has established
a commitment line with a maximum borrowing amount of 3,000 million yen (the balance of unexercised credit line as of the date of thisdocument is 3,000 million yen).
(iv) Operating Results and Distributions
As a result of the above operation, MIRAI recorded operating revenue of 5,666 million yen, operating income of 2,611 million yen,ordinary income of 2,324 million yen and net income of 2,324 million yen for the 13th fiscal period.
Profit distributions for the current fiscal period (excluding distributions in excess of earnings) shall be made in accordance with the
distribution policy set forth in the Articles of MIRAI and in accordance with Article 67.15 of the Act on Special Measures Concerning
Taxation (Law No. 26 of 1957, including subsequent amendments. hereinafter the “Act on Special Measures Concerning Taxation”),
MIRAI decided to distribute 2,325,900,720 yen, which is the entire amount after deducting the reversal of the provision for adjustmentof temporary differences, etc. (as defined in Article 2, Paragraph 2, Item 30 of the Rules of Account Settlement of Investment
Corporations) from Unappropriated retained earnings, except for fractions of less than one yen, in an attempt to make profit distributions
tax-deductible. As a result of the above, the distributions per investment units for the fiscal period under review (excluding distributions
in excess of earnings) was 1,313 yen.
(3) Status of Capital Increase, etc.
Changes in the total number of outstanding investment units and unitholders’ capital over the past five years are as follows.
Date

Total number of outstanding investment units(units)Summary

Changes

BalanceUnitholders' capital (Thousand yen) (Note 1)
Remarks
Changes

Balance

May 23, 2018

Capital increase through public offering

43,300337,050

7,395,250

59,287,585(Note 2)June 12, 2018

Capital increase through third-party allotment

2,160

339,210

368,908

59,656,493(Note 3)

November 1, 2018

Capital increase through public offering

53,500392,710

8,965,583

68,622,077(Note 4)

November 27,
2018

Capital increase through third-party allotment

2,700

395,410452,468

69,074,546(Note 5)

May 1, 2019

Split of investment units

1,186,230

1,581,640-

69,074,546(Note 6)

December 24,
2019

Capital increase through public offering

76,5001,658,140

4,215,609

73,290,155(Note 7)January 21, 2020

Capital increase through third-party allotment

4,100

1,662,240

225,934

73,516,089(Note 8)December 24,
2021

Capital increase through public offering

104,000

1,766,240

4,746,456

78,262,545(Note 9)January 25, 2022

Capital increase through third-party allotment

5,200

1,771,440

237,32278,499,868(Note 10)(Note 1) Changes in unitholders' capital due to the implementation of distributions in excess of earnings related to the reserve for adjustment of temporary differences, etc. have not been taken into account.
(Note 2) New investment units were issued at the price of 176,962 yen per unit (paid-in amount: 170,791 yen) through a public offering for the acquisition of new properties, etc.
(Note 3) New investment units were issued at the price of 170,791 yen per unit through third-party allotment in connection with a public offering for the acquisition of new properties, etc.
(Note 4) New investment units were issued at the price of 173,452 yen per unit (paid-in amount: 167,581 yen) through a public offering for the acquisition of new properties, etc.
(Note 5) New investment units were issued at the price of 167,581 yen per unit through third-party allotment in connection with a public offering for the acquisition of new properties, etc.
(Note 6) MIRAI conducted a four-for-one unit split with April 30, 2019 as the record date and May 1, 2019 as the effective date.
(Note 7) New investment units were issued at the price of 57,037 yen per unit (paid-in amount of 55,106 yen) through a public offering for the acquisition of new properties, etc.
(Note 8) New investment units were issued at the price of 55,106 yen per unit through third-party allotment in connection with a public offering for the acquisition of new properties, etc.
(Note 9) New investment units were issued at the price of 47,238 yen per unit (paid-in amount of 45,639 yen) through a public offering for the acquisition of new properties, etc.
(Note 10) New investment units were issued at the price of 45,639 yen per unit through third-party allotment in connection with a public offering for the acquisition of new properties, etc.

<Changes in Market Prices of Investment Securities>
The market price of MIRAI’s investment securities listed on the Tokyo Stock Exchange REIT Market changed during each fiscal period
as follows:
PeriodThe 9th Period
From May 1, 2020
to Oct. 31, 2020

The 10th Period
From Nov. 1, 2020
to Apr. 30, 2021

The 11th Period
From May 1, 2021
to Oct. 31, 2021

The 12th Period
From Nov. 1, 2021
to Apr. 30, 2022

The 13th Period
From May 1, 2022
to Oct. 31, 2022

Maximum (Yen)

42,700 yen

53,500 yen

58,500 yen

56,100 yen

51,700 yen

Minimum (Yen)

33,050 yen

36,600 yen

47,400 yen

46,650 yen

46,550 yen－ 5－

(4) Results of Distributions, etc.
In accordance with the distribution policy set forth in Article 36 (1) of the Articles of Incorporation of MIRAI, the distribution amountis to exceed 90% of the distributable income of MIRAI as stipulated in Article 67.15 Paragraph (1) of the Act on Special Measures
Concerning Taxation. Based on this policy, 2,325,900,720 yen, which is the total amount of unappropriated retained earnings after
deduction of reversal of allowance for temporary difference adjustment (as stipulated in Article 2, Paragraph 2, Item 30 of the Ordinanceon Accountings of Investment Corporations), excluding a fraction of one yen in distribution per investment unit, will be paid as
distribution (exclusive of distributions in excess of earnings).
PeriodThe 9th Period
From May 1, 2020
to Oct. 31, 2020

The 10th Period
From Nov. 1, 2020
to Apr. 30, 2021

The 11th Period
From May 1, 2021
to Oct. 31, 2021

The 12th Period
From Nov. 1, 2021
to Apr. 30, 2022

The 13th Period
From May 1, 2022
to Oct. 31, 2022

2,915,631

2,538,115

2,623,329

2,597,360

2,328,117

Unappropriated retained earnings(Thousand yen)

Retained earnings(Thousand yen)

465,489

480,262352,709

3,984

445

Total amount of cash distributions(Thousand yen)

2,375,340

2,072,813

2,142,627

2,244,414

2,325,900[Distributions per unit](Yen)[1,429][1,247][1,289][1,267][1,313](Thousand yen)

2,375,340

2,057,853

2,142,627

2,244,414

2,325,900(Yen)[1,429][1,238][1,289][1,267][1,313)(Thousand yen)-

14,960

-

-

-

(Yen)

[-]

[9]

[-]

[-]

[-]

Total amount of distributions from the allowance fortemporary differences out of the total amount ofrefunds of investments(Thousand yen)-

14,960---[Distribution of allowance for temporary differences
per unit out of refund of investment per unit]

(Yen)

[-]

[9]

[-]

[-]

[-]

(Thousand yen)

-

-

-

-

-

(Yen)

[-]

[-]

[-]

[-]

[-]

Of which, total amount of profit distributions[Profit distributions per unit]
Of which, total amount of investment refunds[Refund of investment per unit]

Total amount of distributions from distribution for
reduction of investment, etc. under the tax law out of
total amount of withdrawal of investment[Distribution from reduction of investment, etc. under
the tax law out of the amount of refund of investment
per unit](5) Future Management Policy and Other Issues(i) Future Portfolio Management Environment
In the office leasing market, MIRAI needs to carefully consider the future outlook in light of rising energy prices and yen’s depreciationin addition to the trends in corporate performance and changes in work styles that MIRAI has been paying attention for a while. In hotel
and retail sectors, rents for some assets are linked to tenants’ performance. For retail assets, MIRAI will take relatively conservative
forecasts with reference to past years’ results, while considering a certain degree of renewal effects. On the other hand, in addition to
special factors such as providing as a recovery accommodation facility for patients with COVID-19, etc., hotels are showing signs ofrecovery. Variable rents were generated at some properties in October 2022 for the first time in the COVID-19 disaster, hence hotels are
expected to serve as a growth driver from 2023 onward, including the reception of travelers from overseas.
As almost all of the interest-bearing debt procured by MIRAI is long-term and fixed, MIRAI recognizes that the impact of changes in
the financial environment and interest rate fluctuations on its operation results will be minor, and MIRAI will continue to maintain soundfinancial management.
(ii) Future Management Policy and Other Issues
MIRAI has implemented specific measures, such as strategic asset replacements and acquisition of Growth Assets with high profitability
and land assets with defensiveness, with the aim of increasing unitholders’ value based on sustainable growth in distributions per unit
and strategic management of the portfolio. MIRAI plans to promote measures going forward that will contribute to the future growthwith an eye on the post-COVID-19 era, while continuing to be conscious of progress in risk diversification and securing profitability
and stability, under the theme of “Smart Defense & Offense with Aligned Interest”.
(6) Significant Events after the Balance Sheet Date
Disposition of an asset
MIRAI disposed the following asset after the end of the 13th Period (October 31, 2022).
Name of the Asset
Orico Hakataeki Minami Building (50% quasi co-ownership)
Type of Specified Asset
Real estate trust beneficiary
Address
3-7-30, Hakataeki-Minami, Hakata-ku, Fukuoka-shi, Fukuoka(Residential Address)
Agreement Date
October 28, 2022
Disposition Date
November 30, 2022
Buyer
RICOH LEASING COMPANY, LTD.
Disposition Price
1,000 million yen (Note)
MIRAI expects to record 114 million yen for the fiscal period ending April 30, 2023 in gain on
Impact on Profit / Losssales of real estate properties (disposition gain) as operating revenue.
(Note) “Disposition Price” shows the sale and purchase value of the asset that is stated in the sale and purchase agreement. The sale and purchase value does not include national or local consumption tax or expenses
necessary for the acquisition, and it is rounded down to the nearest million yen.

(Reference information)
Acquisition of an asset－ 6－

MIRAI acquired the following asset after the end of the 13th Period (October 31, 2022).
Name of the Asset
MI Terrace Sendai Hirose-doriType of Specified Asset
Real estate trust beneficiary
Address
1-6-9, Kokubuncho, Aoba-ku, Sendai-shi, Miyagi(Residential Address)
Agreement Date
October 28, 2022
Acquisition Date
November 1, 2022
Buyer
Not disclosed (Note 1)
Acquisition Price
2,022 million yen (Note 2)(Note 1) “Not disclosed” due to the absence of the buyer’s consent.
(Note 2) “Acquisition Price” shows the sale and purchase value of the asset that is stated in the sale and purchase agreement. The sale and purchase value does not include national or local consumption tax or expenses
necessary for the acquisition, and it is rounded down to the nearest million yen.

2 Overview of MIRAI(1) Status of Unitholders’ Capital
PeriodThe 9th Period(Oct. 31, 2020)

The 10th Period(Apr. 30, 2021)

The 11th Period(Oct. 31, 2021)

The 12th Period(Apr. 30, 2022)

The 13th Period(Oct. 31, 2022)

Total number of investment units authorized(Units)

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

Total number of investment units outstanding(Units)

1,662,240

1,662,240

1,662,240

1,771,440

1,771,440

Total unitholders’ capital(Million yen)

73,51673,51673,51678,49978,499Number of unitholders(Persons)

32,081

33,83732,59933,48536,015(2) Matters Concerning Investment Units
Major unitholders as of October 31, 2022 are as follows:
Number of units owned(Units)Name

Ratio to total units outstanding (%)

Custody Bank of Japan, Ltd. (Trust account)

233,643

13.19

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

226,308

12.78

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

80,866

4.56

STATE STREET BANK WEST CLIENT-TREATY 505234

26,786

1.51

The Hachijuni Bank, Ltd.

22,4691.27

JP MORGAN CHASE BANK 385771

21,689

1.22

MITSUI & CO. ASSET MANAGEMENT HOLDINGS LTD.

20,000

1.13

IDERA Capital Management Ltd.

20,0001.13

SSBTC CLIENT OMNIBUS ACCOUNT

19,330

1.09

STATE STREET BANK AND TRUST COMPANY 505103

16,724

0.94

687,815

38.83

Total

(3) Matters Concerning Officers, etc.
(i) The Executive Director, Supervisory Director and Accounting Auditor for the 13th period are as follows:
Title

Executive Director

Name

Major concurrent posts outside MIRAI (Note 1)

Michio Suganuma

Representative Director, Mitsui Bussan & IDERA Partners Co., Ltd.

Takehiko Negishi

Lawyer, Vanderfalke Law Office

Hidetomo Nishii

CEO of Accel Partners, Inc.
Certified Public Accountant, Tax Accountant

Ernst & Young ShinNihon LLC-

Supervisory Directors

Accounting Auditor

Total compensation or fee forsix-month period ended
October 31, 2022
(Thousand yen)
-

3,676

11,800(Note 1) The Executive Director and Supervisory Directors do not own investment units of MIRAI under their own name or other names.
(Note 2) Supervisory Directors may be directors of other corporations not listed above, but do not have any interest in MIRAI including the above.
(Note 3) Remuneration for the accounting auditor includes remuneration for audit of financial statements in English and remuneration for the preparation of the comfort letter in connection with the issuance of investment
corporation bonds.

－ 7－

(ii) Policy on Dismissal and Non-reappointment of the Accounting Auditor
The dismissal of the accounting auditor shall be in accordance with the provisions of the AITIC, and the non-reappointment of theaccounting auditor shall be considered by the Board of Directors of MIRAI in comprehensive consideration of the quality of the audit,
the amount of audit fees and other various circumstances.
(4) Matters Concerning Directors’ Liability Insurance Contracts
The directors’ liability insurance policies that MIRAI has in place are as follows:
Scope of Insured

Summary of Contract

Executive Director andSupervisory Directors(Summary of insured accidents to be covered)
MIRAI has concluded a directors’ liability insurance policy with an insurance company as stipulated in Article 116-3, Paragraph 1 of the AITIC, and the policy
will cover certain damages to be borne by the insured due to claims for damages arising from acts committed by the insured in the course of their duties as directorsof MIRAI(Percentage of premiums paid)
The policy includes an insurance rider pertaining to unitholders’ representative lawsuits, and the premiums for the rider portion are borne by the insured, whileother premiums are borne by MIRAI.
(Measures to ensure that the appropriateness of the execution of duties is not compromised)
The coverage does not apply to damages, etc. incurred by the insured due to criminal acts or acts committed while being aware of the violation of laws andregulations.

(5) Asset Management Company, Asset Custodian and General Administrators
The asset management company, asset custodian and general administrators as of October 31, 2022 are as follows:Business

Name

Asset management company

Mitsui Bussan & IDERA Partners Co., Ltd.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

Transfer agent

Sumitomo Mitsui Trust Bank, Limited

General administrator (institutional administration)

Mizuho Trust & Banking Co.

General administrator (accounting)Reiwa Accounting Holdings Co., Ltd.

General administrator (tax payment)

Reiwakaikeisha Tax Corporation

General administrator related to investment corporation bonds

Sumitomo Mitsui Trust Bank, Limited, MUFG Bank, Ltd. and Mizuho Bank, Ltd.

3 Status of MIRAI’s Assets under Management(1) Composition of Assets of MIRAI
Asset type

Category

Real estate

Real estate in trust

The 12th Period
As of April 30, 2022

The 13th Period
As of October 31, 2022

Total amount held
(Million yen)

Ratio to total assets(%)

Total amount held
(Million yen)

Ratio to total assets(%)

Office

2,237

1.3

2,242

1.3

Industrial

2,418

1.4

2,423

1.4

Total of real estate

4,656

2.7

4,665

2.7

Office85,11849.5

84,277

48.8

Retail

36,72321.4

36,651

21.2

Hotel

26,50915.4

25,78314.9

Industrial

9,241

5.4

9,189

5.3

Educational

4,098

2.4

4,106

2.4

Total of real estate in trust

161,69094.0

160,007

92.6

Deposits and other assets

5,635

3.3

8,118

4.7

Total assets

171,982

100.0

172,792

100.0(Note 1) Total amount held is based on the balance sheet carrying amount (book value after depreciation in the case of real estate in trust) as of the end of the period.
(Note 2) Construction in progress in trust is not included in the real estate in trust.

－ 8－

(2) Major Assets
The outline of major assets owned by MIRAI (top 10 assets in terms of book value) as of October 31, 2022 is as follows:
Name of real estate, etc.

Book value(Million yen)

Leasable area(sqm) (Note 1)

Leased area(sqm) (Note 2)

Occupancy rate(%) (Note 3)

Portion of real estateleasing businessrevenue (%)

Primary use

Kawasaki Tech Center

23,72522,737.07

22,737.07

100.0

18.4

OfficeShinagawa Seaside Parktower

20,004

22,205.78

21,564.68

97.1

13.5

OfficeTokyo Front Terrace

10,8719,720.89

7,901.98

81.3

4.8

OfficeShinjuku Eastside Square

9,741

5,774.45

5,687.03

98.5

4.5

OfficeRetailOfficeAEON Kasai

9,585

28,338.45

28,338.45

100.0

Not disclosed(Note 4)MI Terrace Nagoya Fushimi

8,921

11,625.38

11,625.38

100.0

5.5

Rokko Island DC

7,674

15,563.37

15,563.37

100.0

Tsurumi Fuga 1

5,509

9,578.60

9,578.60

100.0

Mi-Nara

5,089

43,329.82

39,664.89

91.5

9.4

Not disclosed(Note 4)Not disclosed(Note 4)

Tokyo Eiseigakuen Senmongakko

4,106

4,220.46

4,220.46

100.0

Not disclosed(Note 4)

Total

105,230

173,094.27

166,881.91

96.4

70.7

Industrial
RetailRetail
Educational(Note 1) For “Leasable area”, the area that is rentable based on the lease contract or the building drawings of the building pertaining to each asset is stated. In case of land asset, the area of the land is listed. However, thearea of incidental areas such as parking lots and warehouses is not included.
(Note 2) For "Leased area" is the total area actually leased for each asset. However, the area of incidental areas such as parking lots and warehouses is not included.
(Note 3) “Occupancy rate” is calculated based on the formula of leased area divided by leasable area. The figures are rounded to one decimal place.
(Note 4) Not disclosed due to the absence of a tenant’s consent.

－ 9－

(3) Details of Real Estate and Other Assets
The following is a summary of the assets owned by MIRAI as of October 31, 2022.
Name of real estate, etc.

Location(Note 1)

Type of ownership

Leasable area(sqm)
(Note 2)

Book value at
end of period(Million yen)Appraisal value
at end of period(Million yen)
(Note 3)

Shinagawa Seaside Parktower

4-12-4, Higashi-Shinagawa, Shinagawa-ku, Tokyo

Trust beneficiaries

22,205.78

20,004

22,570Kawasaki Tech Center

580-16, Horikawa-cho, Saiwai-ku, Kawasaki-shi, Kanagawa

Trust beneficiaries

22,737.07

23,72524,600Shinjuku Eastside Square

6-27-30, Shinjuku, Shinjuku-ku, Tokyo

Trust beneficiaries

5,774.45

9,741

10,700Tokyo Front Terrace

2-3-14, Higashi-Shinagawa, Shinagawa-ku, Tokyo

Trust beneficiaries

9,720.89

10,871

11,094MI Terrace Nagoya Fushimi

1-10-1, Nishiki, Naka-ku, Nagoya-shi, Aichi

Trust beneficiaries

11,625.38

8,921

10,800Orico Hakataeki Minami
Building

3-7-10, Hakataeki-minami, hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiaries

1,422.80

874

894

My Square Building

2-10-3, Azabu Juban, Minato-ku, Tokyo

Trust beneficiaries

1,795.74

2,945

3,060

Hiroshima Rijo-dori Building

3-1-9, Otemachi, Naka-ku, Hiroshima-shi, Hiroshima

Trust beneficiaries

3,611.85

2,344

2,540

BizMiiX Yodoyabashi

3-1-6, Hirano-machi, Chuo-ku, Osaka-shi, Osaka

Trust beneficiaries

1,020.82

2,008

2,240

TCA Building

2-3-19, Motomachi, Naniwa-ku, Osaka-shi, Osaka

Real estate

3,212.80

2,242

2,270

Ehime Building/Hiroshima

2-10, Naka-ku Mikawa-cho, Hiroshima-shi, Hiroshima

Trust beneficiaries

4,700.45

2,839

2,990

Shibuya World East Building

1-23-18, Shibuya, Shibuya-ku, Tokyo

Trust beneficiaries

1,701.55

3,367

5,250

THINGS Aoyama

4-10-15, Minami-Aoyama, Minato-ku, Tokyo

Trust beneficiaries

997.62

2,944

3,240

MI Cube Sendai Clisroad

2-2-30, Chuo, Aoba-ku, Sendai-shi, Miyagi

Trust beneficiaries

1,023.76

1,377

1,450

AEON Kasai

3-9-19, Nishi-Kasai, Edogawa-ku, Tokyo

Trust beneficiaries

28,338.45

9,585

9,550

MEGA Don Quijote Izumi-Chuo

5-6-17, Ibuki-no, Izumi-shi, Osaka

Trust beneficiaries

6,891.87

3,011

2,580

CAINZ MALL Hikone (land)

2-1-1, Bamba, Hikone-shi, Shiga

Trust beneficiaries

85,323.95

3,675

4,270

MaxValu Takatori (land)

3-16-18, Takatorikita, Asaminami-ku, Hiroshima-shi, Hirosima

Trust beneficiaries

5,748.81

987

1,050

Tsurumi Fuga 1

2-1, Tsurumi-ku Toyooka-cho, Yokohama-shi, Kanagawa

Trust beneficiaries

9,578.60

5,509

5,800

BIGMOTOR Ginan (land)

7-12, Ginan-cho Yatsurugi, Hashima-gun, Gifu

Trust beneficiaries

6,544.89

1,101

1,200

Hotel Sunroute Niigata

1-11-25, Higashi-Odori, Chuo-ku, Niigata-shi, Niigata

Trust beneficiaries

8,254.80

2,132

2,260

Daiwa Roynet Hotel Akita

2-2-41, Omachi, Akita-shi, Akita

Trust beneficiaries

7,439.36

1,878

2,170

Super Hotel Sendai/Hirose-dori

2-9-23, Chuo, Aoba-ku, Sendai-shi, Miyagi

Trust beneficiaries

3,283.95

1,226

1,670

Super Hotel Osaka/Tennoji

2-3-3, Osaka, Tennoji-ku, Osaka-shi, Osaka

Trust beneficiaries

2,486.39

1,239

1,590

Super Hotel Saitama/Omiya

1-12-6, Sakuragi-cho, Omiya-ku, Saitama-shi, Saitama

Trust beneficiaries

2,946.55

1,058

1,330

Super Hotel Kyoto/Karasumagojo

396-3, Osaka-cho, Gojo-sagaru, Karasuma-dori, Shimogyo-ku,
Kyoto-shi, Kyoto

Trust beneficiaries

2,144.02

1,007

1,290

Ise City Hotel Annex

2-5-11, Fukiage, Ise-shi, Mie

Trust beneficiaries

4,099.31

1,898

1,880

Comfort Hotel Kitakami(1) (Hotel) 1-2-1 Kawagishi, Kitakami-shi, Iwate(2) (Retail Store) 1-2-8, Kawagishi, Kitakami-shi, Iwate

Trust beneficiaries

2,961.06

784

833

Hotel Wing International SelectUeno/Okachimachi

2-18-4, Higashi-ueno, Taito-ku, Tokyo

Trust beneficiaries

3,079.33

3,790

4,050

Smile Hotel Naha City Resort

2-32-1, Kume, Naha-shi, Okinawa

Trust beneficiaries

9,698.44

4,022

4,000

Smile Hotel Hakataeki-Mae

3-8-18, Hakataeki-mae, Hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiaries

2,432.72

3,781

3,590

Smile Hotel Nagoya Sakae

4-10-5, Sakae, Naka-ku, Nagoya-shi, Aichi

Trust beneficiaries

2,909.20

2,962

2,920

Mi-Nara1-3-1, Nijo-oji-Minami, Nara-shi, Nara

Trust beneficiaries

43,329.82

5,089

3,760

Rokko Island DC

6-2-12, Koyo-cho-Nishi, Higashinada-ku, Kobe-shi, Hyogo

Trust beneficiaries

15,563.37

7,674

8,880

Real estate

16,529.10

2,423

2,570

36-19, Tsurumi-ku Daikoku-cho, Yokohama-shi, Kanagawa

Trust beneficiaries

3,499.83

1,514

1,600

4-1-1, Omorikita, Ota-ku, Tokyo

Trust beneficiaries

4,220.46

4,106

4,290

368,855.24

164,673

176,831

Odawara Material Storage andDelivery Center (land)
Yokohama-Daikokucho
Maintenance Center (land)Tokyo Eiseigakuen Senmongakko

2842-2 Sakaikyu, Kozu, Odawara-shi, Kanagawa

Total(Note 1) “Location” shows the residence indication of the property.
(Note 2) For “Leasable area”, the area that is rentable based on the lease contract or the building drawings of the building pertaining to each asset is stated. The area of incidental areas such as parking lots and warehouses
is not included. If Asset to be Acquired is a co-ownership or quasi-co-ownership, it is calculated based on the proportion of ownership.
(Note 3) “Appraisal value at end of period” is the appraisal value provided by Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation & Advisory K.K., Japan Real Estate Institute, Japan Valuers Co., Ltd. and Tanizawa
Sogo Appraisal Co., Ltd. in accordance with the Article of MIRAI and the rules set forth by The Investment Trusts Association, Japan.

－ 10

－

The leasing status of real estate properties owned by MIRAI is as follows:
The 12th Period(From Nov. 1, 2021 to Apr. 30, 2022)

The 13th Period(From May. 1, 2022 to Oct. 31, 2022)

Total number oftenants[as of end of
period](Note 1)

Occupancy rate
[as of end of
period](%)(Note 1)
(Note 2)

Real estateleasingbusiness
revenue[during theperiod](Million yen)
(Note 3)

Total number oftenants[as of end of
period](Note 1)

Occupancy rate
[as of end of
period](%)(Note 1)
(Note 2)

Real estateleasingbusiness
revenue[during theperiod](Million yen)
(Note 3)

Portion of realestate leasing
business
revenue (%)

Portion of realestate leasing
business
revenue (%)

Shinagawa Seaside Parktower

23

96.3

740

14.0

22

97.1

749

13.5

Kawasaki Tech Center

27

100.0

979

18.6

27

100.0

1,024

18.4

Shinjuku Eastside Square

39

98.5

260

4.9

39

98.5

250

4.5

Tokyo Front Terrace

24

83.5

247

4.7

27

81.3

269

4.8

MI Terrace Nagoya Fushimi

8

100.0

293

5.6

8

100.0

304

5.5

Orico Hakataeki Minami Building

1

100.0

Not disclosed(Note 4)Not disclosed(Note 4)1

100.0

Not disclosed(Note 4)Not disclosed(Note 4)My Square Building

9

100.0

77

1.5

9

100.0

83

1.5

Hiroshima Rijo-dori Building

13

100.0

82

1.6

13

100.0

96

1.7

BizMiiX Yodoyabashi (Note 6)

26

58.9

21

0.4

34

80.2

44

0.8

TCA Building

7

100.0

66

1.3

8

100.0

75

1.4

Ehime Building/Hiroshima

21

100.0

58

1.1

20

98.6

106

1.9

Shibuya World East Building

8

100.0

114

2.2

8

100.0

110

2.0

Not disclosed(Note 4)Not disclosed(Note 4)1

100.0

Not disclosed(Note 4)Not disclosed(Note 4)

3

100.0

Name of real estate, etc.

THINGS Aoyama

1

100.0

MI Cube Sendai Clisroad

3

100.0

34

0.6

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

AEON Kasai

1

100.0

MEGA Don Quijote Izumi-Chuo

1

100.0

CAINZ MALL Hikone (land)

1

100.0

MaxValu Takatori (land)

1

100.0

Tsurumi Fuga 1

1

100.0

BIGMOTOR Ginan (land)

1

100.0

Hotel Sunroute Niigata

1

94.6

70

Daiwa Roynet Hotel Akita

1

100.0

Super Hotel Sendai/Hirose-dori

1

Super Hotel Osaka/Tennoji

36

0.7

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

1

100.0

1

100.0

1

100.0

1

100.0

1

100.0

1

100.0

1.3

1

94.6

70

1.3

69

1.3

1

100.0

69

1.2

100.0

44

0.8

1

100.0

44

0.8

1

100.0

39

0.7

1

100.0

37

0.7

Super Hotel Saitama/Omiya

1

100.0

35

0.7

1

100.0

35

0.6

Super Hotel Kyoto/Karasumagojo

1

100.0

1

100.0

31

0.6

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Ise City Hotel Annex

1

100.0

Comfort Hotel Kitakami

2

100.0

Comfort Hotel Nagano (Note 5)

1

100.0

Hotel Wing International SelectUeno/Okachimachi

1

100.0

Smile Hotel Naha City Resort

1

100.0

171

Smile Hotel Hakataeki-Mae

1

100.0

Smile Hotel Nagoya Sakae

1

100.0

Mi-Nara56

91.9

Rokko Island DC
Odawara Material Storage andDelivery Center (land)
Yokohama-Daikokucho
Maintenance Center (land)Tokyo Eiseigakuen Senmongakko

1

100.0

1

100.0

1

100.0

1

100.0

31

0.6

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

1

100.0

2

100.0

-

-

1

100.0

3.2

1

100.0

154

2.8

34

0.6

1

100.0

28

0.5

46

0.9

1

100.0

35

0.6

442

8.4

59

91.5

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

－

11

－

1

100.0

1

100.0

1

100.0

1

100.0

524

9.4

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

The 12th Period(From Nov. 1, 2021 to Apr. 30, 2022)

Name of real estate, etc.

Total number oftenants[as of end of
period](Note 1)

Occupancy rate
[as of end of
period](%)(Note 1)
(Note 2)

Real estateleasingbusiness
revenue[during theperiod](Million yen)
(Note 3)

290

98.1

5,275

Total

The 13th Period(From May. 1, 2022 to Oct. 31, 2022)

Portion of realestate leasing
business
revenue (%)

Total number oftenants[as of end of
period](Note 1)

Occupancy rate
[as of end of
period](%)(Note 1)
(Note 2)

Real estateleasingbusiness
revenue[during theperiod](Million yen)
(Note 3)

Portion of realestate leasing
business
revenue (%)

100.0

302

98.1

5,553

100.0

(Note 1) The figures are as of the end of the period.
(Note 2) “Occupancy rate” is calculated based on the formula of leased area divided by leasable area. The figures are rounded to one decimal place.
(Note 3) “Real estate leasing business revenue [during the period]” indicates the leasing business revenue of each asset for the period, rounded down to the nearest million yen.
(Note 4) Not disclosed due to the absence of a tenant’s consent.
(Note 5) MIRAI disposed Comfort Hotel Nagano on May 31, 2022.

(4) Outstanding Contract Amounts, etc. and Current Price of Specified Transactions
The outstanding contract amounts, etc. and current price of specified transactions as of October 31, 2022 is as follows:
Contract amount, etc. (Thousand yen) (Note 1)

ClassificationType

Non-market transactions

Interest rate swap transactions
Receive variable, pay fixed

Amount that exceeds 1 year
63,100,000

Market value (Thousand yen)
(Note 2)52,600,000

201,852(Note 1) The contract amount, etc. is based on the notional principal.
(Note 2) The market value is calculated based on the price provided by the financial institutions with which MIRAI has transactions.

(5) Other Assets
As of the end of the current fiscal period, there are no other specified assets as investment targets other than those listed in (3) Details
of Real Estate and Other Assets.
(6) Assets in Overseas
There is no asset investment outside Japan.
4 Capital Expenditure(1) Schedule of Capital Expenditure
The following is a list of major scheduled capital expenditures for renovations, etc. planned with respect to the assets owned by MIRAI
as of the end of the current fiscal period. Please note that some portions of the scheduled construction amount may be classified as
expenses for accounting purposes as a result.
Estimated construction cost (Thousand yen)
Name of real estate, etc.
(Location)

TotalamountPayment
for thecurrent
periodFrom November 2022
to April 2023

177,261--

Elevator renewal work, compartment repair
work, electrical installation work, etc.

From November 2022
to April 2023

149,823--

Ise City Hotel Annex(Ise-shi, Mie)

Renewal work, etc.

From January 2023
to April 2023

123,723--

Mi-Nara(Nara-shi, Nara)

Compartment repair work, electricalinstallation work, etc.

From November 2022
to April 2023

92,866--

Shinagawa Seaside Parktower(Shinagawa-ku, Tokyo)

Lighting equipment installation, airconditioning equipment work, etc.

From May 2022
to March 2023

84,053--

Others--155,179--

PurposeScheduled periodTokyo Front Terrace(Shinagawa-ku, Tokyo)

Elevator renewal work, compartment repair
work, etc.

Kawasaki Tech Center(Kawasaki-shi, Kanagawa)Total
amountpaid

After Fiscal period ending April 30, 2023 (14th period)(2) Capital Expenditure for the Current Fiscal Period
The following is a summary of major construction work, etc. that fell under the category of capital expenditure conducted during thecurrent fiscal period with respect to the assets owned by MIRAI as of the end of the current fiscal period. The total amount of construction
works applicable to capital expenditures for all assets owned during the current fiscal period was 495,581 thousand yen, and together
with 90,139 thousand yen in repair expenses classified as expenses for the current fiscal period, a total of 585,721 thousand yen in
construction work was conducted.

－ 12

－

Name of real estate, etc.
(Location)

PurposeConstruction cost(Thousand yen)

Construction period

Shinagawa Seaside Parktower(Shinagawa-ku, Tokyo)

Automatic fire alarm equipment renewal work,
compartment repair work, air-conditioning equipment
work, etc.

Tokyo Front Terrace(Shinagawa-ku, Tokyo)

From June 2020
to October 2022

138,035

Elevator renewal work, air-conditioning equipment work,
etc.

From February 2022
to October 2022

98,639Mi-Nara(Nara-shi, Nara)

Compartment repair work, lighting equipment installation,
etc.

From April 2022
to October 2022

82,971

Kawasaki Tech Center(Kawasaki-shi, Kanagawa)Air-conditioning equipment work, electrical installation
work, etc.

From May 2022
to October 2022

47,954

Orico Hakataeki Minami Building(Fukuoka-shi, Fukuoka)

Air-conditioning equipment work, etc.

From May 2022
to October 2022

27,599-100,380

Others-Total

495,581(3) Reserve for Long-Term Repair Plan
Not applicable.
5 Expenses(1) Details of Expenses Related to Asset Management, etc.
(Thousand yen)

The 12th Period
From November 1, 2021
to April 30, 2022

Item

Asset management fee (Note)

The 13th Period
From May 1, 2022
to October 31, 2022
434,547

469,384

Asset custody fee

8,916

9,291

Administrative service fees

18,58818,211

Remuneration for directors

3,683

3,676

Other operating expenses

57,87460,665

523,610561,229

Total(Note) In addition to the above, there are disposition fee of 16,700 thousand yen in the 13th fiscal period and acquisition fee of 106,500 thousand yen that are included in the book value of individual assets in the 12th fiscal
period.

6 Trading during the Fiscal Period under Review(1) Status of Real Estate, Asset-Backed Securities, Infrastructure Assets and Infrastructure-Related Assets etc.
Acquisition
Name of real estate, etc.
Acquisition date

Disposition

Acquisition price(Million yen)

Disposition date

Disposition price(Million yen)
(Note 1)

Book value(Million yen)

Gain/loss on sale(Million yen)
(Note 2)

Comfort Hotel Nagano--

May 31, 2022

670

635

0

Orico Hakataeki Minami Building(50% quasi co-ownership)--

October 31, 2022

1,000

874

113

Total

-

-

-

1,670

1,510

113

(Note 1) The disposition price does not include miscellaneous expenses, property tax, city planning tax, consumption tax and local consumption tax required for the acquisition of the relevant real estate, etc.
(Note 2) Gain/loss on sale is the amount after deducting book value and other sales expenses from the disposition price.

(2) Other Assets
Not applicable.
(3) Investigation of the Price of Specified Assets(i) Real Estate, etc.
Acquisition/
Disposition

Transaction date

Type of assets

Acquisition/
Disposition
price(Million yen)Appraisal value(Million yen)

Comfort Hotel Nagano

May 31, 2022

Real estate
trust
beneficiary670

Orico Hakataeki Minami Building(50% quasi co-ownership)

October 31,
2022

Real estate
trust
beneficiary

1,000

Name of Real Estate, etc.

Disposition

Appraiser

Appraisal date

588

Daiwa Real
Estate Appraisal
Co., Ltd.

October 31,
2021

890
(Note 3)

Daiwa Real
Estate Appraisal
Co., Ltd.

April 30, 2022

(Note 1) For transactions that require appraisal of real estate, etc. pertaining to specified assets in accordance with Article 201, Paragraph 1 of the AITIC, the appraisal is conducted in accordance with Chapter 3, “Appraisalof the Value of Real Estate Subject to Securitization” of the respective sections of the Real Estate Appraisal Standards, and MIRAI has been notified of the results of such appraisal.
(Note 2) The disposition price does not include miscellaneous expenses, property tax, city planning tax, consumption tax and local consumption tax required for the acquisition of the relevant real estate, etc.
(Note 3) The amount is calculated by multiplying the appraisal value for the entire property by the quasi-co-ownership (50%) in the property to be disposed of.

－ 13

－

(ii) Others
Not applicable.
(4) Status of Transactions with Interested Parties, etc.
(i) Sales and Purchases with Interested Parties, etc.
Not applicable.
(ii) Amount of fees to be paid
Not applicable.
(5) Status of Transactions with the Asset Manager Pertaining to Its Business Other than Asset Management
As of the end of the current fiscal period, the Asset Manager concurrently engages in the business of building lots and buildings
transaction, but there are no applicable transactions.
7 Status of Accounting(1) Status of Assets, Liabilities, Principal, Profit and Loss, etc.
Please refer to “Balance Sheet”, “Statements of Income”, “Statements of Changes in Net Assets”, “Notes” and “Distribution Information”
below.
(2) Change in the Method of Calculating Depreciation
Not applicable.
(3) Change in Valuation Method for Real Estate and Infrastructure Assets, etc.
Not applicable.
8 Disclosures Related to Beneficiary Certificates of Investment Trusts, etc. Established by MIRAI
Not applicable.
9 Disclosure Regarding Overseas Real Estate Holding Corporation
Not applicable.
10 Disclosure Regarding Real Estate Held by Overseas Real Estate Holding Corporation
Not applicable.
11 Others(1) Notice(i) General Meeting of Unitholders
Not applicable.
(ii) Board of Directors
The following is a summary of the major agreements and amendments approved by the Board of Directors of MIRAI during the current
fiscal period.
Approval dateAugust 25, 2022

Item

Overview

Conclusion of memorandum of
understanding regarding unitholders'register administration outsourcing
agreement

In accordance with the revision of the Companies Act (start of electronic provision of unitholders’ meeting materials), which will comeinto effect on September 1, 2022, a memorandum of understanding was signed to add the services of “Request for delivery of
documents containing matters for electronic provision (including withdrawal) and acceptance of objections regarding the notice oftermination of delivery of said documents” to the commission fees list of the “Unitholders’ Register Administration Agreement”
concluded by MIRAI with Sumitomo Mitsui Trust Bank, Limited..

(2) Fractional Amounts and Percentages
In this document, unless otherwise stated, figures less than the stated amount are rounded down to the nearest million yen and percentages
are rounded to the nearest million yen.

－ 14

－

工Y
a better

訛岬需worid

Independent Auditorう s Report

The Board ofDirectors
MIRAI Corporation

OpinionWc have audited he accomptting inancial statcments ofMIRAI Corporation(hè̀Compa呼 "),WhiCh COmprise hc balance sheet as at October 31,2022,and hc statements ofincome and retalned eamings,changes in net assets,cash disttibutions and cash flo、 vs for thesix― month period then ended,and notes to the inancial statements.
In our opinion,the accompanying financial statements present良 五rly,in all lnatcriて 工respects,heニュェance and its
financial position ofthe Company as at October 31,2022,and its inancial perfo主
cash aows for he six― inonth period then cnded in accordance、 vith accounting principles
gcnerally accepted in Japan.

Basis for OPinion
We conductcd olュ r audit in accordance wlth auditing standards generally acccpted in Japan.Ollr
responsibilides under those standards arc nュ 五her described in thc Auditor's Responsibilities fbr

the Audit ofhc Financial Statements section of our repo■ .We are independent ofhe Company
in accordance wl血 he eulical requiremcnts that are relevant to our audit ofhe inancial

statements in Japan,and we have血

lfilled olェ r other ehical rcsponsibilities in accordancc、

hese requlrementso We beheve thatthc audit evidence wc havc obt〔vi血五ned is su∬lcient andappropriate to provide a basis for our opinion.

Other lnformation
The ohcrinfo二 上
ation included in Se■ li Annual RcpoA that contains
1lation comprises the info.l二 二audited financial statements but does not includc the inancial statemcnts and our auditor'sreport thereono Managemcnt is responsible for preparation and disclosllre ofhe oher
infO三 ニェニ
ation,SupcⅣ isory E)irector is responsiblc for overseeing the Company's reporting

prOcess Ofthe oher info主 埋latiOn.
Our Opinion on the financial statements does not covcr the other info二11lation and we do not

express any fo二 二
1l ofassurance conclusion thcreon.

In cOmlection with our audit ofhe inancial statcments,olr responsibihty is to read the oher
info11..ation and,in doing so,consider wheher thc oherinfo二 二ニェation is lnatcrially inconsistent
with he financial statcments or olir kno、 vledgc obtained in the audit or ohc帥 lse appears to bc
materially misstated。

It bascd on hc work we have perfol上 二
lCd,we concludc that hcre is a matcrial misstatement ofulis oher info.上 ユエation,we are rcquircd to report hat fact.

We have nothing to rcportin this regard.

E「nst&Young shinNihon LLC

五Yer訛解解 鏡汁Responsibilities of Management and Supervisott E)irector for the Financial Statements
responsiblc for the preparation and良 五r prcsentation ofthesc flnancial statemcnts
in accordance、 vida accounting principles generally acccpted in Japan,and for such internal
W【 anagementis

linCS is necessary to enablc the preparation offinancial statemcnts
control as lnanagcment detel二 上that arc trce frona rnaterial lnisstatement,whether duc to fraud or eror.
In preparing the ananciτ u statements,Inanagement is rcsponsible for assessing the Company's

ability to continue as a going conccm and disclosing,as required by accounting principlcs
gencrally accepted in Japan,Inatters related to going conccrn.

The SupcⅣ isory E)irector is resPonsible for overseeing the Company's flnancial reporting
process,

Auditor's Responsibilities for the Audit ofthe Financial Statements
Ollr ottcctiVCS arc to obtain reasonablc assurance about whehcr he inancial stttcmcnts as awhole are frce froln material lnisstateコ nent,whether due to fraud or eror,and to issuc anrcauditor's report ttlat includes ollr opiniono W【 isstatements can arisc from fraud or eror and τ
considered material it indi宙 dually or in he aggregatc,hcy could reasonably bc expected toinユ uencc the econonic decisions ofusers taken on the basis ofthesc financial statements.
As pai ofan audit in accordance wlth auditing standards gcnerally acceptcd in Japan,wecxcrcisc professionaljudgment and mttntain profcssional skepticism throughout he audito We
also:

・ Identl,and assess thc risks ofmaterial misstatcment ofthe inancial statcments,wheher
duc to fraud or error,design and perfollll audit procedllres responsivc to those risks,and
obtain audit cvidence that is sufflcicnt and appropriate to provide a basis for ollr opinion.

。 Consider intemaal control relevant to the audit in order to dcsign audit proccdllres that areappropriatc in the circumstanccs for our risk assessments,、

vhilc he puttose ofthe audit ofhc flnancit工 statements is not cxprcssing an opinion on the crectiveness ofthc Company's
intemal control.

。Evaluate thc appropriateness of accounting policies used and the reasonableness ofaccounting cstimates and relatcd disclosllres made by managcment.

・ Concludc on the appropriateness ofrnanagcmcnt's use ofthe going concern basis ofaccounting and,bascd on the audit evidcncc obtainedっ whcther a rnaterial unceiainty exists
relatcd to events or conditions hat may cast significant doubt on hc Company's ability tosts,we arecontinue as a going conccm.Ifwe concludc hat a material llncertttnty e対required to dra、 v attcntion in our auditor's repon to the related disclosllres in thc flnancial

statements oL lf such disclosllrcs arc inadcquate,to modi,olttr Oplnion,Our conclusions are
tllre
based on the audit cvidence obtalned up to the date ofour auditor's report.Howcver,角evcnts or conditions rnay causc thc Company to cease to continue as a going conccm。

・ Evaluatc the overall presentation,structure and content ofthe inancial statements,including
hc discloslttres,and、 vheher the inancial statcmcnts rcpresentthe undcrlying ttansactions
and events in a rnanncr that achieves fhir presentation in accordance、
principles gcncrally accepted in Japan.

Ernst&Young shinNihon LLC

vith accounting

nY
∬
訛干
将諾譜

er

。Obtain suricient appropriate audit evidencc regarding the inancial info三 二
二二
ation ofthe
cntitics or bnsiness activities、 vithin the Company to express an opinion on the inancial

statcmcnts,We are responsible for thc direction,supeⅣ ision and perfo111lanCe Ofthe

Company audit,We remain solely responsible fbr our audit opinion.
Wc communicate with the Executive l)irector regarding,among oher rnatters,thc planncd scope
and tilning ofhe audit and signiicant audit indings,including any signiflcant deficiencics inintemЛ control that wc idcnti,during ollr audit.
We also providc hc Exccutive Dircctor、 vitt a statement that、 ve havc complied、 vith the ehicalrequiremcnts regarding indcpendence that are relcvant to our audit ofthe financial statemcnts inJapan,and to corュ lmlttnicate wida them all rclationships and oher rnatters that rnay rcasonably bethoughtto bcar on ollrindependencc,and、 vhcre applicable,related safeguards.
Interest Required to Bc Disclosed by the Certitted Public Accountants Act ofJapan
Our flllll and its designated engagcment paHncrs do not have any intcrestin thc Company whichis required to be disclosed pllrsuantto thc provisions ofhe Cehiied Pubhc Accountants Act ofJapan.

EHlst&Yoling ShittNihon LLC
Tokyo,Japan
January 27,2023

子え謂Sh苅 i Kaneko
Designated Engagcment Partner
ccnittcd Public AccoШ atant

孝上怒 たr[iroto lnouc

Designated Engageinent Partner

Certiied Pubhc Accountant

Ernst&Young shinNihonし LC

Financial Statements(1) Balance Sheet(Thousands of yen)
As of April 30, 2022
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Income taxes refund receivable
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

－ 15

－

As of October 31, 2022

2,050,206
2,553,099
257,651
147,320
92,26687
5,100,631

4,508,815
2,625,909
259,821
145,581
3
1,176
7,541,307

436,737(16,131)420,605
564
(251)
313
4,770
(39)
4,730
4,230,785*1 37,118,626(5,133,371)
31,985,255
318,733(75,539)
243,194
220,610(69,918)
150,692*1 281,097(67,601)
213,496
129,097,520
93,037
166,439,632

447,540(22,313)425,226
564
(345)
219
4,770
(278)
4,491
4,235,946*1 37,128,490(5,690,612)
31,437,877
317,976(82,036)
235,939
243,592(77,643)
165,948*1 302,976(91,388)
211,588
127,956,594
207
164,674,040

16,087231
16,318

14,842
231
15,073

304,60418
11,00656,134
371,763
166,827,714

242,031
11,006257,986
511,023
165,200,138

54,241
54,241
171,982,587

51,251
51,251
172,792,696

(Thousands of yen)
As of April 30, 2022
Liabilities
Current liabilities
Operating accounts payable
Distributions payable
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits received
Leasehold and guarantee deposits received in trust
Derivatives liabilities
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Deduction from unitholders' capital
Allowance for temporary difference
adjustments
Total deduction from unitholders' capital
Unitholders' capital, net
Surplus
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

*4

－ 16

－

As of October 31, 2022

480,597
10,5037,000,000
502,516
3,471
981
660,487
5,001
17,854
8,681,414

707,310
11,505
10,500,000
548,634
1,157
605
262,668
667,075
606
11,52912,711,092

6,200,000
70,800,000
148,766
5,405,910
2,664
82,557,341
91,238,755

6,200,000
67,300,000
143,238
5,410,299
79,053,537
91,764,630

78,499,868

78,499,868(350,732)*4(1,771)(350,732)
78,149,135(1,771)78,498,097

2,597,360

2,328,117

2,597,360
80,746,496

2,328,117
80,826,214(2,664)(2,664)80,743,832*3
171,982,587

201,852
201,852
81,028,066*3
172,792,696

(2) Statement of Income and Retained Earnings(Thousands of yen)
For the six-month
period endedApril 30, 2022
Operating revenue
Leasing business revenue
Other leasing business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fee
Asset custody fees
Administrative service fees
Remuneration for directors (and other officers)
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed distributions
Interest on tax refund
Subsidy income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance
costs
Borrowing related expenses
Investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)*1

For the six-month
period ended
October 31, 2022

4,452,612
822,390
5,275,003*1 4,590,191

962,876
113,324
5,666,391

*1

*1

－ 17

－

2,203,860
434,547
8,916
18,5883,683
57,874
2,727,470
2,547,532

*1

*2

*1

2,493,283
469,384
9,291
18,211
3,676
60,665
3,054,513
2,611,878

23
1,027
284
516
1,851

21
938
350
1,310

202,668
22,586

212,922
23,300

2,990

2,990

46,74025,7563,000
303,7422,245,641
2,245,641
985
5990
2,244,651
352,7092,597,360

49,220288,433
2,324,755
2,324,755
605
18
623
2,324,132
3,984
2,328,117

(3) Statement of Changes in Net Assets
The Fiscal Period ended April 2022 (The 12th period from November 1, 2021 to April 30, 2022)(Thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalAllowance fortemporarydifference
adjustment

Total deduction
from unitholders’capital73,516,089(478,725)(478,725)

Balance at beginning of period

Unitholders’ capital,net

73,037,364

Changes during period
Issuance of new investment units

4,983,778

4,983,778

Dividends of surplus
Reversal of allowance for temporary

127,992

127,992

127,992

4,983,778

127,992

127,992

5,111,771

78,499,868(350,732)(350,732)

78,149,135

difference adjustments
Net income
Net changes in items other thanunitholders’ equity
Total changes during period
Balance at end of period*1(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning of period

Unappropria
ted retained
earnings(undisposed
loss)
2,623,329

Total surplus

Totalunitholders’equityDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

2,623,329

75,660,693(352,076)(352,076)

Total net
assets75,308,617

Changes during period
Issuance of new investment
units
Dividends of surplus
Reversal of allowance fortemporary difference

4,983,778

4,983,778(2,142,627)(2,142,627)(2,142,627)(2,142,627)(127,992)(127,992)--

2,244,651

2,244,651

2,244,651

2,244,651

adjustments
Net income
Net changes in items otherthan unitholders’ equity

349,412349,412349,412

Total changes during period(25,968)(25,968)

5,085,802

349,412349,4125,435,214

Balance at end of period

2,597,360

2,597,360

80,746,496(2,664)(2,664)80,743,832

－ 18

－

The Fiscal Period ended October 2022 (The 13th period from May 1, 2022 to October 31, 2022)(Thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalAllowance fortemporarydifference
adjustment

Total deduction
from unitholders’capital78,499,868(350,732)(350,732)

78,149,135

348,961

348,961

348,961-

348,961

348,961

348,961

78,499,868(1,771)(1,771)78,498,097

Balance at beginning of period

Unitholders’ capital,net

Changes during period
Dividends of surplus
Reversal of allowance for temporary
difference adjustments
Net income
Net changes in items other thanunitholders’ equity
Total changes during period
Balance at end of period*1(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Total surplus

Totalunitholders’equityDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

2,597,360

2,597,360

80,746,496(2,664)(2,664)(2,244,414)(2,244,414)(2,244,414)(2,244,414)

temporary difference
adjustments(348,961)(348,961)--

Net income

2,324,132

2,324,132

2,324,132

2,324,132

Balance at beginning of period

Unappropria
ted retained
earnings(undisposed
loss)

Total net
assets80,743,832

Changes during period
Dividends of surplus
Reversal of allowance for

Net changes in items otherthan unitholders’ equity

204,516

204,516

204,516

Total changes during period(269,243)(269,243)

79,717

204,516

204,516

284,234

Balance at end of period

2,328,117

2,328,117

80,826,214

201,852

201,852

81,028,066

－ 19

－

(4) Statement of Cash Distributions(Yen)
Fiscal Period ended April 2022
(The 12th period from November 1, 2021
to April 30, 2022)
Ⅰ

Unappropriated retained earnings(undisposed loss)
Ⅱ
Capitalization
Reversal of allowance for temporary
difference adjustment
Ⅲ
Distributions[Distributions per unit]
Ⅳ
Retained earnings to be carried forward(retained loss)
Method of calculation of distributions

Fiscal Period ended October 2022
(The 13th period from May 1, 2022
to October 31, 2022)

2,597,360,578

2,328,117,303

348,961,200

1,771,440

348,961,200

1,771,440

2,244,414,480[1,267]2,325,900,720[1,313]

3,984,898

445,143

In accordance with the distribution policy set
forth in Article 36 (1) of the Articles ofIncorporation of MIRAI, the distribution
amount is to exceed 90% of the distributable
income of MIRAI as stipulated in Article 67.15
Paragraph (1) of the Act on Special Measures
Concerning Taxation. Based on this policy,
2,244,414,480 yen, which is the total amount of
profit as defined in Article 136, Paragraph 1 of
the Act on Investment Trusts and Investment
Corporations of Japan after deduction ofreversal of allowance for temporary difference
adjustment (as stipulated in Article 2, Paragraph2, Item 30 of the Ordinance on Accountings ofInvestment Corporations), excluding a fractionof one yen in distribution per investment unit,
will be paid as distribution (exclusive ofdistributions in excess of earnings).

In accordance with the distribution policy set
forth in Article 36 (1) of the Articles ofIncorporation of MIRAI, the distribution
amount is to exceed 90% of the distributable
income of MIRAI as stipulated in Article 67.15
Paragraph (1) of the Act on Special Measures
Concerning Taxation. Based on this policy,
2,325,900,720 yen, which is the total amount of
unappropriatedretainedearnings
after
deduction of reversal of allowance fortemporary difference adjustment (as stipulated
in Article 2, Paragraph 2, Item 30 of theOrdinance on Accountings of Investment
Corporations), excluding a fraction of one yen
in distribution per investment unit, will be paid
as distribution (exclusive of distributions inexcess of earnings).

－ 20

－

(5) Statement of Cash Flows(Thousands of yen)
For the six-month
period endedApril 30, 2022
Cash flows from operating activities
Net income before income taxes
Depreciation
Amortization of investment corporation bond issuancecosts
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Decrease in property, plant and equipment in trust due
to saleOther, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Refund of leasehold and guarantee deposits received
Proceeds from leasehold and guarantee deposits
received
Refund of leasehold and guarantee deposits received intrust
Proceeds from leasehold and guarantee deposits
received in trust
Payments for restricted bank deposits held in trust
Other payments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment corporation
bonds
Proceeds from issuance of investment units
Distributions paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－ 21

－

For the six-month
period ended
October 31, 2022

2,245,641
641,351

2,324,755
660,719

2,990

2,990

25,756(23)
225,254(30,379)(15,536)(35,090)(110,213)(6,886)35,423(40,609)(21)
236,222(2,169)1,739
92,266
156,324
46,117
262,668
6,587
62,573-

1,510,166

20,682
2,958,361
23(227,166)(1,100)2,730,118(12,747)
5,348,192
21(238,536)(984)
5,108,692(11,455,784)(3,486)(9,931)(322,431)(5,528)2,144-(155,587)(102,419)

511,422

106,809(0)(4,254)(11,105,547)(0)(1,297)(334,800)

14,100,000(10,000,000)-

1,186,268-

4,958,022(2,139,562)
8,104,728(270,701)
4,691,905*1 4,421,204(2,242,474)(2,242,474)
2,531,418
4,421,204*1 6,952,622

(6) Notes to the financial statements[Notes on Assumption of Going Concern]
Not applicable to the 13th Period.
[Organization]
MIRAI Corporation (hereinafter “MIRAI”) is diversified REIT. Based on AITIC, MIRAI was founded on December 4,2015 with a capital contribution of 150 million yen (750 units), by Mitsui Bussan & IDERA Partners Co., Ltd. (hereinafter
the “Asset manager”) as the founding planner and was listed on the REIT section of the Tokyo Stock Exchange on
December 16, 2016 (securities code: 3476). As of October 31, 2022, the numbers of investment units issued and outstandingare 1,771,440 units and MIRAI owns 37 properties (total acquisition price of 163,134 million yen).
MIRAI positions assets located in the three major metropolitan areas of Japan with high population concentrations as its
main investment targets and aims to obtain mid-to-long term stable cash flows and sustained growth in unitholders’ value
by building a portfolio centered on its “Core Assets” (Note).
(Note) “Core Assets” means the assets that constitute the core of MIRAI’s portfolio, which is composed by specificallytraditional investment properties such as offices, retail properties, hotels, residential and logistics properties. Occupancy
rates of 80% or more must be secured in principle (including cases where such occupancy rates are expected) with MIRAI
to determine a stable rental income to be expected.
[Basis of Presenting Financial Statements]
MIRAI maintains its accounting records and prepares its financial statements in accordance with the Japanese Generally
Accepted Accounting Principles (Japanese GAAP), including provisions set forth in the Financial Instrument and Exchange
Act of Japan, the AITIC, the Companies Act of Japan and the related regulations, which are different in certain respects as
to the application and disclosure requirements of International Financial Reporting Standards.
The accompanying financial statements are prepared from the Japanese financial statements of MIRAI, which wereprepared in accordance with Japanese GAAP and were presented in the Securities Report of MIRAI filed with the Kanto
Local Finance Bureau of the Ministry of Finance. The amounts in the financial statements originally prepared in Japanese
have been rounded off to the nearest thousand in the accompanying financial statements unless otherwise specified. MIRAI
does not prepare consolidated financial statements as MIRAI has no subsidiaries.

－ 22

－

1.

2.

3.

4.

5.

[Summary of Significant Accounting Policies]
Depreciation
A. Property, plant, and equipment (including trust assets)
The straight-line method is used.
method for noncurrent assets
The useful lives of property, plant and equipment are listed below.
Buildings
2 to 64 years
Structures
2 to 40 years
Machinery and equipment
5 to 29 years
Tool, furniture and fixtures 2 to 15 years
B. Intangible assets
As for software (for internal use), the straight-line method is used with an expected useful life of
5 years.
C. Long-term prepaid expenses
The straight-line method is used.
Accounting for
A. Investment corporation bond issuance costs
deferred assets
Investment corporation bond issuance costs are amortized by the straight-line method over theperiod through redemption.
B. Investment unit issuance expenses
Investment unit issuance expenses are fully expensed as incurred.
A. Accounting for property taxes
Accounting for
Property tax, city planning tax, depreciable asset tax, and the like levied on real estate assets andincome andother properties are accounted for as expenses related to rent business at the amounts
expensescorresponding to the fiscal period.
The amount of property tax, etc. paid to the seller as part of settlement for acquisition of realestate and real estate in trust is not accounted for as expenses but included in acquisition cost of
the respective real estate, etc. In the 12th Period, the property tax, etc. included in the acquisition
cost of real estate was 49,924 thousand yen. In the 13th Period, the property tax, etc. included in
the acquisition cost of real estate was not applicable.
B. Accounting standards for revenue
The main performance obligations related to revenue arising from MIRAI’s contracts withcustomers and when it typically satisfies its performance obligations (the ordinary time at whichrevenue is recognized) are as follows.
(a) Disposition of real estate assets and other properties
For disposition of real estate assets and other properties, MIRAI recognizes revenue when thecustomer-buyer obtains control of the real estate and other assets by fulfilling the delivery
obligations stipulated in the sales and purchase agreement.
(b) Utility revenue
Utility revenue is recognized based on the supply of electricity, water, etc. to the customerlessee in accordance with the real estate lease contract and related agreements. As to utilities
charges in cases where MIRAI is acting as an agent, the net amount derived by deducting theamount to be paid to other parties supplying the electricity, gas, etc. from the amount received
by MIRAI as utilities charges from the customer is recognized as revenue.
Hedge accounting A. Hedge accounting method
methodDeferred hedge accounting is applied.
B. Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest on borrowings
C. Hedging policy
MIRAI utilizes derivative transactions to hedge the risks specified in the Articles of Incorporationof the Investment Corporation based on its risk management policy.
D. Method of assessing hedge effectivenessHedge effectiveness is assessed by making a comparison between the cumulative total of cash
flow fluctuations attributable to hedged items and the cumulative total of cash flow fluctuations
attributable to hedging instruments, and examining the ratio of these totals of fluctuations.
Scope of cash and Cash and cash equivalents consist of cash on hand, cash in trust, deposits and deposits in trust
cash equivalents
withdrawable on demand, and short-term investments, which are easily convertible into cash, within the statement of low risk of price fluctuation and with a maturity of less than three months.
cash flows

－ 23

－

6.

Other significant
basis forpreparation offinancialstatements

A. Accounting for trust beneficiary right for real estate, etc. as trust asset
With regard to trust beneficiary right for real estate, etc. held as trust asset, all assets and liabilities
as well as all revenue and expense items associated with trust assets are accounted for under therespective account items of the Balance Sheet and Statement of Income and Retained Earnings.
Of the trust assets accounted for under the respective account items, the following items withsignificance are separately indicated on the Balance Sheet.
(a) Cash and deposits in trust(b) Buildings in trust, Structures in trust, Tools, furniture and fixtures in trust and Land in trust,
Construction in progress in trust(c) Leasehold and guarantee deposits received in trust
B. Method of accounting for consumption taxes unqualified for deduction
Consumption taxes unqualified for deduction for tax purposes for noncurrent assets, etc. are
included in acquisition cost for each asset.

[Notes to Significant Accounting Estimates](Evaluation of fixed assets)
1. Amount recorded in financial statements(Thousands of yen)

The 12th Period(as of April 30, 2022)
Property,plant
equipment
Loss on impairment

andThe 13th Period(as of October 31, 2022)

166,439,632

164,674,040--

2. Information on the contents of significant accounting estimates for identified items
In accordance with the accounting standard for impairment of fixed assets, MIRAI assesses the necessity of recognizing
impairment losses on Fixed assets when there is an indication that impairment may have occurred, considering each property
owned by MIRAI as one asset group.
The estimated undiscounted future cash flows are used to determine whether an impairment loss should be recognized. If it
is determined that an impairment loss should be recognized, the carrying amount is reduced to the recoverable amount, andthe amount of the reduction is recorded as an impairment loss.
In estimating future cash flows, MIRAI has assumed that the impact of COVID-19 outbreak will continue for the time being,
but that the recovery trend will continue over a certain period of time thereafter.
Since it is difficult to accurately predict the timing of the settlement of COVID-19 outbreak and the extent of its impact,changes in the aforementioned assumptions may affect the financial position, operating results and cash flow status of MIRAI
if it is determined that an impairment loss needs to be recorded.
[Notes to Changes in Accounting Policies]
Not applicable.

－ 24

－

[Additional Information][Notes to Allowance for Temporary Difference Adjustment]

The 12th Period (from November 1, 2021 to April 30, 2022)
1. Reason for occurrence of reversal, assets identified and reversal of allowance(Thousands of yen)
Assets identifiedDeferred gains or losses onhedgesReason for occurrence of reversal

Reversal of allowance fortemporary difference adjustment

Changes in fair value of the derivative

348,961transactions

2. Specific approach of reversal

Deferred gains or losses on hedges
MIRAI plans to reverse the allowance depending on the changes in fair value of the derivative transactions used forhedging instruments.

The 13th Period (from May 1, 2022 to October 31, 2022)
1. Reason for occurrence of reversal, assets identified and reversal of allowance(Thousands of yen)
Assets identifiedDeferred gains or losses onhedgesReason for occurrence of reversal

Reversal of allowance fortemporary difference adjustment

Changes in fair value of the derivativetransactions

1,771

2. Specific approach of reversal

Deferred gains or losses on hedges
MIRAI plans to reverse the allowance depending on the changes in fair value of the derivative transactions used forhedging instruments.
[Notes to Balance Sheet]*1. The reduction entry amount of the tangible fixed assets
The reduction entry amount of the tangible fixed assets acquired by government subsidies

The 12th Period(as of April 30, 2022)
Buildings in trust
Tools, furniture, and fixtures in trust(Thousands of yen)
The 13th Period(as of October 31, 2022)

213,030

213,030328

328*2. Commitment line contracts

MIRAI has the commitment line contracts with the banks.
(Thousands of yen)
The 13th Period(as of October 31, 2022)

The 12th Period(as of April 30, 2022)
Total amount specified in thecommitment line contracts
Borrowing balance at end of period
Outstanding loan commitments at
end of period

3,000,000

3,000,000--

3,000,000

3,000,000*3. Minimum amount of net assets prescribed in Article 67, Item 4 of the Investment Trusts Act

The 12th Period(as of April 30, 2022)(Thousands of yen)
The 13th Period(as of October 31, 2022)

50,00050,000－ 25－

*4. Allowance for temporary difference adjustment

The 12th Period (from November 1, 2021 to April 30, 2022)
1. Reason for occurrence of provision and reversal, assets identified and the allowance(Thousands of yen)
The

Assets identified

Reason for
occurrence of

Initial amountallowanceThebalance atthebeginningof the 12th

Allowance

Reversal

periodbalance atthe ending

Reason for
occurrence ofof the 12th
periodreversal

Occurrence ofDeferred gains
or losses onhedgesrevaluation
losses from491,890478,725

interest rateswap-

127,992

350,732

Changes in fairvalue of thederivativetransactions

2. Specific approach of reversal

Deferred gains or losses on hedges
MIRAI plans to reverse the allowance depending on the changes in fair value of the derivative transactions used forhedging instruments.

－ 26

－

The 13th Period (from May 1, 2022 to October 31, 2022)
1. Reason for occurrence of provision and reversal, assets identified and the allowance(Thousands of yen)The
Reason for
occurrence ofAssets identified

Initial amountallowanceThebalance atthebeginningof the 13th

Allowance

Reversal

periodbalance atthe ending

Reason for
occurrence ofof the 13th
periodreversal

Occurrence ofDeferred gains
or losses onhedgesrevaluation
losses from491,890

350,732-

348,961

1,771

interest rate
swap

Changes in fairvalue of thederivativetransactions

2. Specific approach of reversal

Deferred gains or losses on hedges
MIRAI plans to reverse the allowance depending on the changes in fair value of the derivative transactions used forhedging instruments.
[Notes to Statement of Income and Retained Earnings]*1. Breakdown of income from real estate leasing business(Thousands of yen)(i) Real estate leasing business revenue
Rent revenue-real estate
Rent income
Land rents received
Facility charges
Other lease business revenue
Utilities charges
Other operating income

The 12th Period

The 13th Period(from November 1, 2021 to April 30, 2022)(from May 1, 2022 to October 31, 2022)

4,081,001
202,072

4,191,450
223,945

169,539569,581
252,809

Total real estate leasing business revenue

4,452,612

174,794

822,390

686,476
276,399

5,275,003

4,590,191

962,876
5,553,067(ii) Real estate leasing business expenses
Expenses related to rent businessOutsourcing service expenses
Utilities expenses
Taxes and dues
Repair expenses
Depreciation
Other expenses related to rent business

370,255
456,817377,719634,557

391,162
64,048428,777
90,139640,320
281,255

659,742
302,346

Total real estate leasing business expenses(iii) Income from real estate leasing
business (i - ii)

－ 27

－

2,203,860

2,493,283

3,071,142

3,059,783

*2. Breakdown of gain on sales of real estate properties

The 12th Period (from November 1, 2021 to April 30, 2022)
Not applicable.
The 13th Period (from May 1, 2022 to October 31, 2022)(Thousands of yen)
Comfort Hotel Nagano
Sales of real estate properties revenue
Sales of real estate properties cost

670,000
635,209

Other sales expenses

34,773Gain on sales of real estate properties

17

Orico Hakataeki Minami Building (50% quasi co-ownership)
Sales of real estate properties revenue
1,000,000
Sales of real estate properties cost
Other sales expenses

874,956
11,736

Gain on sales of real estate properties

113,307[Notes to Statement of Changes in Net Assets]*1. Total number of investment units authorized and total number of investment units issued and outstanding
The 12th Period

The 13th Period(from November 1, 2021 to April 30, 2022)(from May 1, 2022 to October 31, 2022)

Total number of investment units
authorized
Total number of investment units
issued and outstanding

20,000,000 units

20,000,000 units

1,771,440 units

1,771,440 units[Notes to Statement of Cash Flows]*1. Relationship between cash and cash equivalents at end of period and the amount on the balance sheet(Thousands of yen)
The 12th Period

The 13th Period(from November 1, 2021 to April 30, 2022)(from May 1, 2022 to October 31, 2022)

Cash and deposits

2,050,206

4,508,815

Cash and deposits in trust

2,553,099

2,625,909

Restricted deposits held in trust(Note)(182,101)(182,102)

Cash and cash equivalents

4,421,204

6,952,622(Note) These are deposits that are reserved for the return of security deposits from tenants.
[Lease Transactions]Operating lease transactions (as a lessor)(Thousands of yen)th

The 12 Period

The 13th Period(from November 1, 2021 to April 30, 2022)(from May 1, 2022 to October 31, 2022)

Future lease payments receivable
Due within one year
Due after one year

4,336,431

4,217,911

33,194,651

31,302,139

Total

37,531,082

35,520,051

－ 28

－

[Financial Instruments]
1. Matters concerning the status of financial instruments

A. Policies on financial instruments
MIRAI procures funds mainly by additionally issuing investment units, borrowing funds, or issuing investment
corporation bonds for the purpose of securing funds required for acquisition of assets, repair and other maintenancecosts, payments of dividends, and operation of MIRAI or repayment of debts.
With respect to borrowing of funds and issuance of investment corporation bonds, we consider the balance between
flexibility of financing and financial stability. Specifically, we consider, among other things, the long-term ratio, fixedinterest ratio, diversification of maturities, financing method (borrowings and/or investment corporation bonds) andestablishment of commitment lines.
MIRAI uses derivative transactions for the purpose of hedging interest rate fluctuation risk and other risks anddoes not enter into derivative transactions for speculative or trading purpose.
MIRAI invests surplus funds in securities and monetary claims with a focus on safety and liquidity, and does notengage into speculative investment.
B. Description of financial instruments and associated risks, and the risk management system
Deposits are one means of investing the surplus funds of MIRAI and are exposed to credit risk such as thebankruptcy of deposit financial institutions. MIRAI carefully manages deposits by limiting the term of deposits toa short period of time, taking into consideration safety, liquidity, and other factors, and giving due consideration
to the financial environment and cash flow.
Borrowings and investment corporation bonds are used primarily for acquisition of assets and repayments of debts,
and are exposed to liquidity risk at the time of repayment/redemption. MIRAI strives to mitigate liquidity risk by
diversifying lenders, repayment periods, and means of funds procurement and by securing liquidity on hand by
setting commitment lines and manages liquidity risk by preparing cash flow management sheet and other methods.
Variable interest rate borrowings are exposed to the risk of interest rate fluctuations. Derivative transactions areused to hedge the risk of fluctuations in the interest rate payable for a portion of the borrowings. See “4. Hedge
accounting method” above under “Summary of Significant Accounting Policies” for details about the hedging
instruments, hedged items, hedging policy, and method of assessing hedge effectiveness, etc. in hedge accounting.
C. Description of financial instruments
Fair value of financial instruments comprises value based on market prices or rationally calculated value in thecase the market prices are not available. As certain assumptions are applied in performing calculation of suchvalue, the value may differ if different assumptions are used. In addition, the contract value of derivativetransactions, which is presented in the following section entitled “Notes to Derivatives” is not an exact
representation of market risk attributable to derivative transactions.

－ 29

－

2. Matters concerning fair value, etc. of financial instruments

Amounts on the Balance Sheet, fair value and their difference as of April 30, 2022 are as follows;
The fair values of “Cash and deposits” and “Cash and deposits in trust” are omitted because their fair value approximates
their book value due to cash and short term maturities.

(Thousands of yen)Amounton the balance sheet(i) Current portion of long-term

Fair value

7,000,000

borrowings(ii) Investment corporation bonds

Difference

7,000,000-

6,200,000

6,059,460(140,540)(iii) Long-term borrowings

70,800,000

70,787,192(12,807)

Total liabilities

84,000,000

83,846,652(153,347)[2,664][2,664]-(iv) Derivative transactions *Amounts on the Balance Sheet, fair value and their difference as of October 31, 2022 are as follows;
The fair values of “Cash and deposits” and “Cash and deposits in trust” are omitted because their fair value approximates
their book value due to cash and short term maturities.

(Thousands of yen)Amounton the balance sheet(i) Current portion of long-term

Fair value

10,500,000

borrowings(ii) Investment corporation bonds

Difference

10,500,000-

6,200,000

6,003,200(196,800)(iii) Long-term borrowings

67,300,000

67,285,205(14,794)

Total liabilities

84,000,000

83,788,405(211,594)

201,852

201,852-(iv) Derivative transactions **Net amounts are shown for credits and liabilities attributable to derivative transactions, and the total of the items
that constitute net liabilities is shown in [].
(Note 1) Matters concerning the method of calculating the Fair value of financial instruments and derivativetransactions.
(i) Current portion of long-term borrowings and (iii) Long-term borrowings
The fair value of these is calculated by discounting such borrowings at rates that would be applied if new
borrowings with the same amount are made under similar terms and conditions.
(ii) Investment corporation bonds
The fair value of these is based on the reference values disclosed by the Japan Securities Dealers
Association.
(iv) Derivative transactions
See “Notes to Derivatives” below.
(Note 2) Leasehold and guarantee deposits received and leasehold and guarantee deposits received in trust are omitted
due to immateriality.
(Note 3) Repayment schedule for borrowings and Investment corporation bonds after the closing date (as of April 30,
2022)(Thousands of yen)
WithinAfter
1-2 years
2-3 years
3-4 years
4-5 years
1 year
5 years
Investment
corporation bonds

-

-

-

-

-

6,200,000

Long-term
borrowings

7,000,000

20,000,000

11,000,000

8,500,000

14,000,000

17,300,000

Total

7,000,000

20,000,000

11,000,000

8,500,000

14,000,000

23,500,000

－ 30

－

Repayment schedule for borrowings and Investment corporation bonds after the closing date (as of October 31, 2022)(Thousands of yen)
WithinAfter
1-2 years
2-3 years
3-4 years
4-5 years
1 year
5 years
Investment
corporation bonds

-

-

-

-

-

6,200,000

Long-term
borrowings

10,500,000

18,000,000

16,500,000

5,500,000

16,000,000

11,300,000

Total

10,500,000

18,000,000

16,500,000

5,500,000

16,000,000

17,500,000[Notes to Investment Securities]

The 12th Period (as of April 30, 2022)
Not applicable to the 12th Period.
The 13th Period (as of October 31, 2022)
Not applicable to the 13th Period.
[Notes to Derivatives]

The 12th Period (as of April 30, 2022)
1. Transactions not applicable to hedge accounting
Not applicable to the 12th Period.
2. Transactions applicable to hedge accounting
The 12th Period (from November 1, 2021 to April 30, 2022)
The following table shows the contract amount on the closing date for derivative transactions, or the amountcorresponding to the principal specified in the contract.
Contract amount
Fair value
Method used
Hedge
(Thousands of yen)Type of derivative Primary hedged
accounting(Thousands
to calculate
Amounttransactions
items
methodof yen)the fair value
over one year

Deferredhedgeaccounting

Interest rate swap
transactions
Receive variable, pay
fixedLong-term
borrowings

63,100,000

56,100,000(2,664)

Based onprices andotherconditions
presented byfinancial
institutions

The 13th Period (as of October 31, 2022)
1. Transactions not applicable to hedge accounting
Not applicable to the 13th Period.
2. Transactions applicable to hedge accounting
The 13th Period (from May 1, 2022 to October 31, 2022)
The following table shows the contract amount on the closing date for derivative transactions, or the amountcorresponding to the principal specified in the contract.
Contract amount
Fair value
Method used
Hedge
(Thousands of yen)Type of derivative Primary hedged
accounting(Thousands
to calculate
Amounttransactions
items
methodof yen)the fair value
over one year

Deferredhedgeaccounting

Interest rate swap
transactions
Receive variable, pay
fixedLong-term
borrowings－ 31

63,100,000－

52,600,000

201,852

Based onprices andotherconditions
presented byfinancial
institutions

[Notes to Retirement Benefits]

The 12th Period (as of April 30, 2022)
Not applicable to the 12th Period.
The 13th Period (as of October 31, 2022)
Not applicable to the 13th Period.
[Tax Effect Accounting]
1. Breakdown of major causes of deferred tax assets and deferred tax liabilities(Thousands of yen)
The 13th Period(as of October 31, 2022)th

The 12 Period(as of April 30, 2022)
Deferred tax assets
Enterprise tax not deductible

18-

Deferred losses on hedges

838-

Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets

856

-

(838)

-

18

-

18

-

Deferred tax assets, net

2. Breakdown by major cause of material difference between the effective statutory tax rate and the effective tax rate

after applying tax effect accounting
The 12th Period(as of April 30, 2022)
Effective statutory tax rate

The 13th Period(as of October 31, 2022)

31.46%

31.46%(31.44%)0.03%(31.48%)
0.04%

0.04%

0.03%

(Adjustments)

Deductible cash distributions
Other
Effective tax rate after applying tax effect accounting[Notes to Equity in Earnings of Affiliates]

The 12th Period (as of April 30, 2022)
Not applicable to the 12th Period.
The 13th Period (as of October 31, 2022)
Not applicable to the 13th Period.
[Transactions with Related Parties]
1. Parent company and principal corporate unitholders

The 12th Period (from November 1, 2021 to April 30, 2022)
Not applicable to the 12th Period.
The 13th Period (from May 1, 2022 to October 31, 2022)
Not applicable to the 13th Period.
2. Subsidiaries and affiliates

The 12th Period (from November 1, 2021 to April 30, 2022)
Not applicable to the 12th Period.
The 13th Period (from May 1, 2022 to October 31, 2022)
Not applicable to the 13th Period.

－ 32

－

3. Sister companies

The 12th Period (from November 1, 2021 to April 30, 2022)
Not applicable to the 12th Period.
The 13th Period (from May 1, 2022 to October 31, 2022)
Not applicable to the 13th Period.
4. Directors and principal individual unitholders

The 12th Period (from November 1, 2021 to April 30, 2022)
Paid-in
VotingNature of relationship
Name ofcapitalBusinessrightsNature ofClassify- company Addressordescription oror
Businessholdingtransaction
cationinvestoccupation
Concurrent posts
relationshipindividual
ratio
ment
Executive director

Directoror theMichioclose Suganuma
relativeof MIRAI and--

President of Mitsui-

Bussan & IDERA
PartnersCo., Ltd.

Payments ofasset
Executive director
management feeof MIRAI and
Assetto Mitsui Bussanmanageme
President of& IDERA
Mitsui Bussan & nt company Partners Co.,of MIRAILtd.
IDERA Partners
Co., Ltd.

Balance atTransaction
end ofamountAccount
period(Thousands(Thousandof yen)s of yen)

541,047(Note 3)

Accounts
payable other

478,001(Note 1)
(Note 2)

(Note 1) This is a transaction executed by Michio Suganuma as President of a third party (Mitsui Bussan & IDERA Partners
Co., Ltd.), and the fee is in line with the Articles of Incorporation of MIRAI.
(Note 2) Of the above amounts, the transaction amount does not include consumption taxes while the balance at the end of
fiscal period does.
(Note 3) Asset management fee includes acquisition fee of 106,500 thousand yen, which were included in the book value of theacquired properties.
The 13th Period (from May 1, 2022 to October 31, 2022)
Paid-in
VotingNature of relationship
Name ofcapitalBusinessrightsNature ofClassify- company Addressordescription oror
Businessholdingtransaction
cationinvestoccupation
Concurrent posts
relationshipindividual
ratio
ment
Executive director

Directoror theMichioclose Suganuma
relativeof MIRAI and--

President of Mitsui
Bussan & IDERA
PartnersCo., Ltd.

-

Payments ofasset
Executive director
management feeof MIRAI and
Assetto Mitsui Bussanmanageme
President of& IDERA
Mitsui Bussan & nt company Partners Co.,of MIRAILtd.
IDERA Partners
Co., Ltd.

Balance atTransaction
end ofamountAccount
period(Thousands(Thousandof yen)s of yen)

486,084(Note 3)

Accounts
payable other527,322(Note 1)
(Note 2)

(Note 1) This is a transaction executed by Michio Suganuma as President of a third party (Mitsui Bussan & IDERA Partners
Co., Ltd.), and the fee is in line with the Articles of Incorporation of MIRAI.
(Note 2) Of the above amounts, the transaction amount does not include consumption taxes while the balance at the end of
fiscal period does.
(Note 3) Asset management fee includes disposition fee of 16,700 thousand yen.
[Notes to Asset retirement obligations]

The 12th Period (as of April 30, 2022)
Not applicable to the 12th Period.
The 13th Period (as of October 31, 2022)
Not applicable to the 13th Period.

－ 33

－

[Notes to Lease Properties]
MIRAI holds offices, retails, hotels, industrial assets and an educational asset in Tokyo and other regions. The amounts on

the Balance Sheet changes during the fiscal period, and fair value of lease properties are as follows.
(Thousands of yen)
The 12th Period

The 13th Period(from November 1, 2021 to April 30, 2022)(from May 1, 2022 to October 31, 2022)

Amount on the balance sheet
Balance at the beginning of
the period
Changes during the period
Balance at the end of theperiod155,488,025

166,346,594

10,858,568(1,672,761)

166,346,594

164,673,833

Fair value at the end of the period
177,610,600
176,831,600(Note 1) The amount on the balance sheet is acquisition cost less accumulated depreciation.
(Note 2) The amount on the balance sheet does not include the amount of the construction in progress in trust.
(Note 3) Of the amount of increase (decrease) of the lease properties during the 12th period, the reason of increase ismainly attributable to acquisition of 4 real estate trust beneficiary rights (10,997,213 thousand yen) and thereason of decrease is mainly attributable to depreciation (638,798 thousand yen). During the 13th period, thereason of increase is mainly attributable to capital expenditure (495,581 thousand yen) and the reasons ofdecrease are mainly attributable to disposition of real estate trust beneficiary rights (1,510,166 thousand yen)and depreciation (658,176 thousand yen).
(Note 4) The fair value at the end of the fiscal period is the appraisal value provided by an outside real estateappraiser.
The income concerning lease properties, etc. for the 13th Periods is indicated under “Notes to Statement of Income
and Retained Earnings” above.
[Notes to Revenue Recognition]
1. Disaggregated information on revenue from contracts with customers

The 12th Period (from November 1, 2021 to April 30, 2022)(Thousands of yen)

Revenue from contracts withcustomers (Note)
Disposition of real estate, etc.
Utility revenue
OthersSales to external customers--

569,581569,581-4,705,421

Total
569,5815,275,003(Note) Leasing business revenue, etc. subject to ASBJ Statement No. 13 “Accounting Standard for Lease Transactions”
is not included in “Revenue from Contracts with Customers” as it is not subject to the Accounting Standard for
Revenue Recognition. The main revenue from contracts with customers is from the gain on sale from real estate
properties and utility revenue.
The 13th Period (from May 1, 2022 to October 31, 2022)(Thousands of yen)

Revenue from contracts withcustomers (Note 1)
Disposition of real estate, etc.
(Note 2)

Sales to external customers

1,670,000

Utility revenue
Others113,324

686,476

686,476-

4,866,590

Total
2,356,476
5,666,391(Note 1) Leasing business revenue, etc. subject to ASBJ Statement No. 13 “Accounting Standard for Lease Transactions”
is not included in “Revenue from Contracts with Customers” as it is not subject to the Accounting Standard for－ 34－

Revenue Recognition. The main revenue from contracts with customers is from the gain on sale from real estate
properties and utility revenue.
(Note 2) The amount of proceeds from dispositions of real estate, etc. less costs of sales of real estate, etc. and otherexpenses on sales of real estate, etc., is stated as gain (loss) on sales of real estate, etc. in the statement of income,in accordance with Article 48, Paragraph 2 of the Ordinance on Accountings of Investment Corporations (Cabinet
Office Ordinance No. 47 of 2006).
2. Information that provides a basis for understanding revenue from contracts with customers

The 12th Period (from November 1, 2021 to April 30, 2022)
As stated in the Summary of Significant Accounting Policies.
The 13th Period (from May 1, 2022 to October 31, 2022)
As stated in the Summary of Significant Accounting Policies.
3. Information on relationship between the fulfillment of performance obligations under contracts with customers andcash flows from such contracts and the amount and timing of revenue expected to be recognized from contracts withcustomers that exist at the end of the current period in the subsequent period(1) Balance of contract assets and contract liabilities, etc.
The 12th Period
The 13th Period(from November 1, 2021 to April 30, 2022)(from May 1, 2022 to October 31, 2022)

105,238 thousand yen

111,237 thousand yen

111,237 thousand yen

125,750 thousand yen- thousand yen- thousand yen- thousand yen- thousand yen- thousand yen- thousand yen- thousand yen- thousand yen

Receivables arising from contracts
with customers (at beginning of fiscal
period)Receivables arising from contracts
with customers (at end of fiscal period)

Contract assets (at beginning of fiscal
period)Contract assets (at end of fiscal
period)Contract liabilities (at beginning offiscal period)

Contract liabilities (at end of fiscal
period)(2) Transaction price allocated to remaining performance obligations
As of October 31, 2022, the total transaction price allocated to the remaining performance obligation for the
disposition of real estate, etc. was 1,000,000 thousand yen for real estate, etc. for which a sale agreement was signed
on October 28, 2022. It is expected to recognize revenue for this residual performance obligation in the fiscal period
ending April 30, 2023, as delivery of the real estate, etc. was completed on November 30, 2022.
In accordance with Paragraph 19 of the Guidance on Accounting Standard for Revenue Recognition, MIRAI
recognizes utility revenues at the amount it has the right to charge, because MIRAI has the right to receive from thecustomer the amount of consideration that directly corresponds to the value to the customer, the lessee, of the portionof the performance completed by the end of the fiscal period. Accordingly, MIRAI has applied the provisions ofparagraph 80-22(2) of the Accounting Standard for Revenue Recognition and has not included in the notes thetransaction price allocated to the remaining performance obligations.
[Segment Information](ⅰ) Segment information
The 12th Period (from November 1, 2021 to April 30, 2022)
Description is omitted as MIRAI engages in a single segment of the real estate leasing business.
The 13th Period (from May 1, 2022 to October 31, 2022)
Description is omitted as MIRAI engages in a single segment of the real estate leasing business.

－ 35

－

(ii) Related information
The 12th Period (from November 1, 2021 to April 30, 2022)
A. Information by product and service
Description is omitted as net sales for external customers in a single product/service category exceed 90% of
the operating revenue on Statement of Income and Retained Earnings.
B. Information by region(a) Net sales
Description is omitted as net sales for external customers in Japan exceed 90% of the operating revenue on
the Statement of Income and Retained Earnings.
(b) Property, plant, and equipment
Description is omitted as the amount of property, plant, and equipment located in Japan exceeds 90% of theproperty, plant, and equipment on the Balance Sheet.
C. Information by major tenant
Description is omitted as net sales for all single external customers are less than 10% of the operating revenue
on the Statement of Income and Retained Earnings.
The 13th Period (from May 1, 2022 to October 31, 2022)
A. Information by product and service
Description is omitted as net sales for external customers in a single product/service category exceed 90% of
the operating revenue on Statement of Income and Retained Earnings.
B. Information by region(a) Net sales
Description is omitted as net sales for external customers in Japan exceed 90% of the operating revenue on
the Statement of Income and Retained Earnings.
(b) Property, plant, and equipment
Description is omitted as the amount of property, plant, and equipment located in Japan exceeds 90% of theproperty, plant, and equipment on the Balance Sheet.
C. Information by major tenant
Description is omitted as net sales for all single external customers are less than 10% of the operating revenue
on the Statement of Income and Retained Earnings.
[Per Unit Information]
The 12th Period

The 13th Period(from November 1, 2021 to April 30, (from May 1, 2022 to October 31,
2022)
2022)

Net assets per unit

45,580 yen

45,741 yen

Net income per unit

1,291 yen

1,312 yen

(Note 1) Net income per unit was calculated by dividing net income by average number of investment units during
period.
Diluted net income per unit is not stated as there are no dilutive investment units.
(Note 2) The calculation of net income per unit is based on the following.
(Thousands of yen)
The 12th Period

The 13th Period(from November 1, 2021 to April 30, (from May 1, 2022 to October 31,
2022)
2022)

Net income

2,244,651

2,324,132--

Net income pertaining to common investment units

2,244,651

2,324,132

Average number of investment units during period

1,738,544 units

1,771,440 units

Amount not attributable to common unitholders

－ 36

－

[Notes to Significant Subsequent Events]
Disposition of an asset
MIRAI disposed the following asset after the end of the 13th Period (October 31, 2022).
Name of the asset

Orico Hakataeki Minami Building (50% quasi co-ownership)

Type of specified assets

Real estate trust beneficiary

Address (lot number)

3-7-30, Hakataeki-Minami, Hakata-ku, Fukuoka-shi, Fukuoka

Agreement date

October 28, 2022

Disposition dateNovember 30, 2022

Buyer

RICOH LEASING COMPANY, LTD.

Disposition price

1,000 million yen (Note)

Impact on profit andloss

MIRAI expects to record 114 million yen for the fiscal period ending April 30, 2023 ingain on sales of real estate properties (disposition gain) as operating revenue.

(Note) “Disposition Price” shows the sale and purchase value of the asset that is stated in the sale and purchase agreement. The sale andpurchase value does not include national or local consumption tax or expenses necessary for the disposition, and it is rounded down to
the nearest million yen.

－ 37

－

[Annexed Table](i) Securities
Not applicable.
(ii) Contract Amount and Fair Value of Derivative Transactions and Forward Exchange Contracts(Thousand yen)Type of derivativetransactions

Classification

Primary hedged
items

Contract amount

Method used to
calculatethe fair value

Fair value

Amountover one year

Non-market
transaction

Interest rate swap
transactions

Long-term
borrowings

Receive variable, pay
fixed

63,100,000

52,600,000

201,852

Based on the amountprovided bycounterparty financial
institutions.

(iii) Real Estate, etc.
(Thousand yen)Type of assets

Balance at
beginning of
periodAccumulated depreciation

Amount ofAmount ofBalance at end
increase during decrease during
Depreciationof periodor Accumulated
periodperiodandamortizationamortization

Net balance at
Remarks
end of period

Building

436,737

10,803-

447,540

22,3136,181

425,226

Structures

564

-

-

564

345

94

219

4,770

-

-

4,770

278

238

4,491

Land

4,230,785

5,161

-

4,235,946--

4,235,946(Note)

Building in trust
Total
property, Structures in trust
plant andequipment Machinery andequipment in trust

37,118,626

434,757

424,89337,128,490

5,690,612

613,186

31,437,877(Note)

318,733-757

317,976

82,036

6,962

235,939(Note)

220,610

22,981-

243,592

77,643

7,725

165,948(Note)

281,097

21,878-302,976

91,38823,787

211,588(Note)

129,097,520-

1,140,926

127,956,594--

127,956,594(Note)

Construction inprogress in trust

93,037

207

93,037

207

-

-

207

(Note)

Subtotal

171,802,485

495,788

1,659,615

170,638,658

5,964,617

658,176

164,674,040

28,2001,297-

29,49814,6562,543

14,842

231

-

-

231

-

-

231

28,431

1,297-

29,72914,656

2,543

15,073

171,830,917

497,086

1,659,615

170,668,388

5,979,274

660,719

164,689,114

Machinery andequipment

Tools, furniture andfixtures in trust
Land in trust

SoftwareIntangible
Other
assetsSubtotal
Total(Note)(Note) The increase in property, plant and equipment during the period is due to construction work, etc. that falls under capital expenditures. The decrease isdue to the disposition of two properties.

(iv) Other Specified Assets
Not applicable.

－ 38

－

(v) Investment Corporation Bonds(Thousand yen)
Brand name

Balance at
Amount ofAmount ofInterest
Balance at end
Redemption
beginning of increase during decrease during
rateof period
date
periodperiodperiod(%)

Issuance date

First Series ofUnsecured Investment-

1,000,000

0.640 July 26, 2028

July 13, 2020

1,000,000--

1,000,000

0.800

July 12,2030

Repaymentofborrowings(Note 1)

September 28,
2021

2,000,000--

2,000,000

0.700

September
26, 2031

Repaymentofborrowings(Note 1)

September 28,
2021

1,000,000--

1,000,000

0.980

September
26, 2036

Repaymentofborrowings(Note 1)

November 30,
2021

1,200,000--

1,200,000

0.700

November28, 2031

Repaymentofborrowings(Note 1)-6,200,000--

6,200,000-

Corporation Bonds
Fourth Series ofUnsecured Investment(Note 1)-

Corporation Bonds

Unsecured Investment

Repaymentofborrowings

1,000,000

Second Series ofThird Series ofCollateral

July 26, 2018

Corporation Bonds

Unsecured Investment

Usage

Corporation Bonds
Fifth Series ofUnsecured Investment
Corporation Bonds(Green bond)
Total

-

-

-

(Note 1) With special pari passu conditions among the specified investment corporation bond.
(Note 2) The total scheduled repayment amount of the investment corporation bonds after the balance sheet date is as follows.
(Thousand yen)Over 1 year andwithin 2 years

Within 1 year
Investment
corporation bonds-

Over 2 years but
within 3 years-

Over 3 years but
within 4 years
-

－ 39

－

Over 4 years but
within 5 years-

Over 5 years-

6,200,000

(vi) Borrowings(Thousand yen)Classification

Current
portion of
long-term
borrowings

LenderDrawdown
date

Sumitomo
Mitsui Trust December 16,
2016
Bank,
LimitedShinsei
December 16,
Bank,
2016
LimitedSumitomo
Mitsui Trust November 1,
2018
Bank,
LimitedShinseiBank,
LimitedNovember 1,
2018

SubtotalLong-term
borrowings

Sumitomo
Mitsui
December 16,
2016
Banking
Corporation
ResonaDecember 16,
Bank,
2016
Limited.
Sumitomo
Mitsui
December 16,
2016
Banking
Corporation
ResonaDecember 16,
Bank,
2016
Limited.
The Bank ofDecember 16,
Fukuoka,
2016
Ltd.
Sumitomo
Mitsui Trust December 16,
2016
Bank,
LimitedDevelopment
December 16,
Bank of2016
Japan Inc.
MizuhoTrust &
April 28,
2017
Banking Co.,
Ltd.
Sumitomo
Mitsui Trust
Bank,
LimitedShinseiBank,
LimitedThe Nanto
Bank, Ltd.
ResonaBank,
LimitedSumitomo
Mitsui
Banking
Corporation
The Bank ofFukuoka,Ltd.
ShinseiBank,
LimitedAverageAmount ofAmount ofBalance atBalance at interest rate
beginning ofincreasedecrease(Note 1)end of period
periodduring period during period(Note 2)

Repayment Repayment
Usage Description
datemethod5,000,000--

5,000,000

0.37250

November 30,
2022

2,000,000--

2,000,000

0.37250

November 30,
2022-

2,500,000-

2,500,000

0.42180

Bulletrepayment (Note Unguaranteed/
Unsecuredon
3)
October 31, maturity
2023-

1,000,000-

1,000,000

0.42180

October 31,
2023

7,000,000

3,500,000-

10,500,000

7,500,000--

7,500,000

0.74500

November 30,
2026

500,000--

500,000

0.74500

November 30,
2026

6,500,000--

6,500,000

0.49960

November 30,
2023

1,500,000--

1,500,000

0.49960

November 30,
2023

2,000,000--

2,000,000

0.49960

November 30,
2023

5,000,000--

5,000,000

0.59470

November 29,
2024

2,000,000--

2,000,000

0.62125

November 30,
2023

April 30,2024

2,000,000--

2,000,000

0.45000

October 26,
2017

2,000,000--

2,000,000

0.54375 July 31, 2025

October 26,
2017

1,000,000--

1,000,000

0.54375 July 31, 2025

October 26,
2017

1,000,000--

1,000,000

0.54375 July 31, 2025

October 26,
2017

1,000,000--

1,000,000

0.70900 July 30, 2027

October 31,
2017

4,000,000--

4,000,000

0.72750

October 29,
2027

October 31,
2017

1,000,000--

1,000,000

0.72750

October 29,
2027

March 1,2018

1,000,000--

1,000,000

0.57350January 30,
2026

－ 40

－

Bulletrepayment (Note Unguaranteed/3)
Unsecuredonmaturity

Classification

LenderDrawdown
date

ResonaMarch 1,Bank,
2018
LimitedMizuhoMarch 1,
2018
Bank, Ltd.
Sumitomo
Mitsui
May 15, 2018
Banking
Corporation
MizuhoMay 15, 2018
Bank, Ltd.
MizuhoTrust &
August 1,
2018
Banking Co.,Ltd.
MizuhoNovember 1,
2018
Bank, Ltd.
Sumitomo
MitsuiNovember 1,
2018
BankingLong-term
borrowings

Corporation
Sumitomo
Mitsui Trust November 1,
2018
Bank,
LimitedShinseiNovember 1,
Bank,
2018
Limited
MUFGApril 30,
2021
Bank, Ltd.
MUFGOctober 29,
2021
Bank, Ltd.
MizuhoNovember 30,
2021
Bank, Ltd.

AverageAmount ofAmount ofBalance atBalance at interest rate
beginning ofincreasedecrease(Note 1)end of period
periodduring period during period(Note 2)

Repayment Repayment
Usage Description
datemethod500,000--

500,000

0.57350January 30,
2026

1,000,000--

1,000,000

0.48000

January 31,2024

2,000,000--

2,000,000

0.52770

April 30,2025

1,500,000--

1,500,000

0.56000

April 30,2025

1,700,000--

1,700,000

0.62000 July 31, 2028

2,500,000--

2,500,000

0.68000

October 30,
2026

3,000,000--

3,000,000

0.56800

October 31,
2025

2,500,000-

2,500,000-

0.42180

October 31,
2023

1,000,000-

1,000,000-

0.42180

October 31,
2023

1,500,000--

1,500,000

0.45000

1,500,000--

1,500,000

0.38000

Bulletrepayment (Note Unguaranteed/on3)
Unsecured
October 31, maturity
2024

1,500,000--

1,500,000

0.39900

October 30,
2026

3,300,000--

3,300,000

0.46240

November 30,
2028

4,000,000--

4,000,000

0.50900

November 30,
2029

1,000,000--

1,000,000

0.38000

December 30,
2024

1,000,000--

1,000,000

0.37950

December 30,
2026

1,000,000--

1,000,000

0.42950

December 30,
2026

1,000,000--

1,000,000

0.47850

December 29,
2028

1,000,000--

1,000,000

0.61500

February 28,
2029

300,000--

300,000

0.59500

February 28,
2029

Subtotal

70,800,000-

3,500,000

67,300,000

Total

77,800,000

3,500,000

3,500,000

77,800,000

MizuhoNovember 30,
2021
Bank, Ltd.
MizuhoBank, Ltd. November 30,
2021(GreenLoan)
MUFG
January 12,
2022
Bank, Ltd.
Sumitomo
Mitsui Trust January 12,
2022
Bank,
LimitedShinsei
January 12,
Bank,
2022
LimitedSumitomo
MitsuiJanuary 12,
2022
Banking
Corporation
MizuhoMarch 25,
2022
Bank, Ltd.
ResonaBank,
LimitedMarch 25,
2022

April 30,2024

(Note 1) The average interest rate indicates a weighted average of interest rates for the period by the number of days.
(Note 2) MIRAI enters into interest rate swaps to avoid the risk of interest rate fluctuations, and the interest rate after taking into account the effect of the interest
rate swaps (fixing the interest rate) is stated.
(Note 3) The funds were used for the purchase of real estate and trust beneficiary rights of real estate, refinancing of borrowings, working capital, etc.
(Note 4) The total scheduled repayment amount of long-term borrowings after the balance sheet date is as follows.

－ 41

－

(Thousand yen)
Within 1 year
Long-term
borrowings

10,500,000

Over 1 year andwithin 2 years
18,000,000

Over 2 years but
within 3 years

Over 3 years but
within 4 years

Over 4 years but
within 5 years

16,500,000

5,500,000

16,000,000

－ 42

－

Over 5 years
11,300,000