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

12 th Fiscal Period Investor Presentation
Fiscal Period Ended April 30, 2022 (12 th FP)
November 1, 2021 to April 30, 2022

1

Table of Contents
Section 1. Operational Highlight

・・・・・

P2

Section 2. MIRAI Mid-Term Management Plan 2025
“Smart Defense/Offense with Aligned Interest”

・・・・・ P20

Section 3. External Growth Strategy/Market Trends

・・・・・ P26

Section 4. Portfolio Management

・・・・・ P30

Section 5. Finance & ESG Initiatives

・・・・・ P37

Appendix. Basic Information/Data Collection

・・・・・ P43

1

2

Section 1.
Operational HighlightOperational Highlight3

Executive Summary
Mid-term Management Plan 2025 “Smart Defense & Offense with Aligned Interest”

DPU

Result for 12th FP◼ 7 yen(+0.6%) compared with the forecast◼ “Smart Defense”: DPU 1,300 yen level(assumes no hotel variable rent)◼ “Offense with Aligned Interest”: New DPU target to be
set after 2023

◼ Controlled PO dilution with result in linewith expectation

AUM◼ Acquired 4 “Defensive” assets for 10.6
billion yen

163.9

Portfolio
Management

Occupancy Rate

ESG

Next Action

1,267yen

External
GrowthFinanceResultsbillion yen

98.1%

Rating by JCR◼ Portfolio control: Hotel disposition◼ Aiming to acquire assets with defensiveness for “Smart
Defense” and growth potential for “Offense with Aligned
Interest”◼ Tokyo Front Terrace: Firmly maintaining
occupancy rate
◼ BizMiiX Yodoyabashi/Mi-Nara: Steady
improvement◼ Occupancy rates in large-scale offices are recovering
due to appropriate measures◼ First PO in 2 years/First green finance◼ Limited impact of rising interest rate (only 7 billion yen
refinancing during the year)

A+(stable)◼ LTV (based on total assets): 48.8%(end of 12 thFP)

Percentage ofenvironmental
certification◼ First GRESB 2 star/Green star

74.4%

◼ Mid-term Management Plan target: 200 billion yen◼ Ongoing social contributions (providing
our asset as a recovery accommodation
facility for people with COVID-19, etc.)

Note: The Figures are as of April 30, 2022 except for the AUM figure. AUM is as of May 31, 2022 (after disposition of Comfort Hotel Nagano).

◼ Anticipate recovery of hotel variable rents as aninternal growth driver◼ Steady expansion of foreign investors due to index
inclusion effect◼ Improvement of GRESB evaluation (target), TCFD
and ESG report disclosure to start◼ Continue to consider switching to renewable energy
while monitoring cost balance3Operational Highlight4

Distributions per Unit (DPU)
Maintain DPU of 1,285 yen through meticulous portfolio management(yen)

decreaseincrease

1,400◼ Providing Naha hotel as a recovery
accommodation facility for patientswith COVID-19 (+22)◼ Income from restoration of a largescale office/reduction in
outsourcing service expenses, etc.
(+25)

1,300

48

1,260

◼ Step up rent of assets acquired in12th FP (Ginan/Daikokucho) (+14)◼ Non-operating expenses (reductionof PO expense etc.) (+8)

◼ Rent recovery of Office/BizMiiX/
Mi-Nara (+24)

44

54

1,200

◼ Full-period contribution from assets
acquired in 12th FP (+54)

1,267◼ BizMiiX Yodoyabashi & Mi-Naradelayed progress (-32)

62

71

1,285
◼ Increase in property and other tax(Asset acquired in 2021, etc.) (-17)

1,285◼ End of Providing Naha hotel as arecovery accommodation facility forpatients with COVID-19 (-56)◼ Increase in general andadministrative expenses (increasedAUM) (-20)◼ Increase in net utilities expense
(-10)

71

◼ Increase in depreciation, etc. (-14)

1,100
12th FP(forecast)

12th FP(actual)13th FP(forecast)(Note)

14th FP(forecast) (Note)

Occupancy rate

Occupancy rate

Occupancy rate

98.1%

98.7%

98.9%

Note: This forecast is calculated based on certain assumptions as of June 14, 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 forecast should not be construed as
guarantee of DPU. The same applies hereinafter.

4

Operational Highlight5

MIRAI Mid-term Management Plan: Overview

MIRAI Mid-term Management Plan 2025

Smart Defense
2022
MarketEnvironment

GrowthStrategy

Post COVID-19

Offense with Aligned Interest
Reopening◼ COVID-19 expected to subside◼ The Russian-Ukrainian Crisis◼ Inflationary impact◼ Recovery of domestic footfall(Office worker/Retail)◼ Revival of inbound demand◼ In an uncertain market environment,“smart” defense to prepare for the next
growth (Smart Defense)◼ Going on the offensive for disciplined
growth while "sharing" views andperspectives with investors(Offense with Aligned Interest)

2025
Achievement of
Quantitative
targets① DPU② NAV/U③ AUM(Rating AA)↓
Sponsors

Note: May be referred to as “MIRAI”. The same applies hereinafter.

Remain committed to the support structure
for the sustainable growth of
MIRAI Corporation (Note)

Reduction ofrisk premium
5Operational Highlight

6

MIRAI Mid-term Management Plan: Quantitative Targets

MIRAI Mid-term Management Plan 2025

Offense with Aligned Interest

Smart Defense
DPU

1,300

Smart
Defense:NAV per Unit
yen levelOver53,000AUM
yen

200 billion yen

1,285 yen

50,670 yen

163.9 billion yen(Forecast for the FP ending October 2022)(As of April 30, 2022)(As of May 31, 2022)

Plan to set “Offense with
Aligned Interest” target
after 2023

Compound average growth rate
(CAGR) of around 2%
Aiming for disciplined growth in linewith investors’ perspectives

Continue to be selective ininvestment
Aim to achieve AA rating as soon as
possibleNote: Targets are calculated based on certain assumptions as of June 15, 2022 and is not a guarantee of future achievement. The same applies hereinafter.

6

Operational Highlight

7

MIRAI Mid-term Management Plan: DPU Target
Pursue “Smart Defense” strategy aiming to maintain 1,300 yen DPU in preparation for future growth

Smart
DefenseExternal growth(premium PO)/

Portfolio replacement

strategy◼ Apparent downside risk in JREITs, especially in office sector◼ Execute appropriate portfolio
1,230
management (Smart Defense)◼ Assuming no hotel variable rent

(Upside)Portfolio replacement/
Stabilization of
BizMiiX & Mi-Nara

1,285 yen
April 2023
(14 th FP)
forecast(Downside)
Change inoffice occupancy

Stabilization of offices
Recovery of hotel
variable rent/
Compared with
pre-COVID-19 (Note)
70% : +64 yen
100%: +92 yen

To be set after

Offense with
Aligned Interest strategy

1,300 yen
level

2023

◼ Recovery of hotel variable
rent following reopening◼ Aim for upside by acquiring
asset in line with investors’
perspectives (Offense with
Aligned Interest)

Offense with
Aligned Interest

Smart
DefenseTargetTargetNote: The average monthly variable rent of hotels with variable rents (Smile Hotel Naha City Resort, Smile Hotel Hakataeki-mae, and Smile Hotel Nagoya-sakae) from November 2018 to October 2019 is used as the pre-COVID-19 level, and the figure is calculated by multiplying the variable rent
revenue per fiscal period (six months) by the respective percentages and dividing by the number of investment units outstanding as of June 15, 2022. The amount of distribution is not guaranteed, and subject to change due to additional issuance of investment units, etc. The same
applies hereinafter.

7

Operational Highlight8

External Growth Strategy: Portfolio Strategy in the Near Term
Various asset types are being considered for the concept of the Mid-term Management Plan

Asset type

% of Portfolio (Note 1)(As of May 31, 2022)

Office52.8%

Retail21.8%

New type/Core (New)/
Others

9.6%

Hotel

15.8%

% of Portfolio
in the near-term (Note 2)

Smart Defense

Offense with
Aligned Interest

賢守

共攻

50~60%

Mid-sized

Maintain
within the range

About 25%
Increase

Up to 20%
Increase

Up to 15%
Control within acertain range

Land

Neighborhood
type(Fixed rent)

Utility assets (Note 3)

Urban

Variable rent

Industrial

Logistics

Residence(Student apartments,
company housing, etc.)

Fixed rent

Variable rent

Note 1: Based on acquisition price.
Note 2: It is an image formulated by the asset management company based on the current real estate market conditions and investment strategy, and there is no guarantee that the said investment ratio will be achieved in the future, as it may be affected by various factors such as changes in
the market environment in the future.
Note 3: This refers to mixed-use properties in the suburbs of central Tokyo that can be converted into satellite offices or can attract service sector tenants.

8

Operational Highlight9

External Growth Strategy: Priority Investment Targets
Mainly “Smart Defense" projects are currently under consideration, while resuming preparation of“Offence with Aligned Interest" projects for upside①Solid tenant demand②Strong cash flow/intrinsic real estate value◼ Industrial assets that is an important basefor tenants and has a high probability ofcontinued use (Mitsui’s knowledge isutilized)◼ Mid-sized office that can accommodate awider range of tenant demand than largescale office◼ Neighborhood shopping center supported
by stable consumer demand◼ Market trends, such as changes in the
supply-demand balance and competitors’
store openings, are carefully evaluatedMid-sized office
Neighborhood type

③New core assets that contribute to improved stability◼ Started to consider residential assets(including student apartments andcompany housing) and logistics facilities,
which are highly valued for their stability◼ Avoid acquisitions that are highly
competitive, and aim to acquire off-market
through group collaboration utilizing
development and bridge functions◼ Land asset is carefully evaluated forcontinuity of use based on actual demand,tenant substitutability, and the possibility ofsite conversion (high intrinsic real estatevalue)

Industrial
Land④Upside Expectations in Post-COVID-19◼ Urban retail facilities expected to see a
rapid demand recovery as footfall recovers

Residence
Logistics◼ Utility assets that allow flexible leasing to
office and other tenants according tomarket conditions

Urban
Utility9

Operational Highlight10

External Growth Strategy: Specific Measures
Aiming for external growth through highly agile strategies and collaboration with sponsors in achallenging acquisition environment
Initiatives

Pipeline
Expansion

Steadyaccumulation ofbridge projects

Further strengthen
CRE strategy

Asset
Replacement

Portfolio control

SponsorSupportSecuring quality
deals
Expand sourcing
methods

Specific Measures◼ 2 Office assets: three major metropolitan areas + mid-scale project inreginal core cities◼ 1 Retail asset: Urban asset in three major metropolitan areas

Assets held in
bridge vehicle

About

8.5

billion yen◼ Strengthened collaboration with “CCReB Advisors”, a CRE specialist◼ Enhance defensiveness: Seek for land/industrial assets◼ May 2022: Disposition of Comfort Hotel Nagano (lowered hotel ratio)

Hotel ratio◼ Consider replacement that will lead to the portfolio quality andprofitability improvement

15.8%◼ Consider development projects in collaboration with Mitsui & Co. Real
Estate Ltd.
◼ Utilize the bridge function of JA Mitsui Leasing Tatemono Co., Ltd◼ Joint investment with the Mitsui & Co. group to acquire quality projects
10

Operational Highlight(Reference) Real Estate Asset Management Business in the Mitsui & Co. Group11
Strengthening and accelerating collaboration with Mitsui & Co. group, which aims to expand realestate AM peripheral business
Bridge Function

Pipeline Construction

Joint Investment

Commence discussions on providing a bridgefunction that can flexibly meet the needs ofasset types and holding periods, etc.

Considering joint proposals for developmenttype projects involving CRE proposals andcollaboration with the Solutions Unit

Considering a joint investment scheme thatleverages on the strengths of having diverse
investor base

JA Mitsui Leasing, Ltd.

Mitsui ＆ Co. Real Estate Ltd.

Diversified J-REIT
Mitsui Bussan & IDERA Partners Co., Ltd.

Private REIT/fund
Mitsui & Co., Realty Management Ltd.

Logistics J-REIT
Mitsui & Co. AssetManagement Holdings LTD.

Mitsui & Co., Logistics Partners Ltd.

11

Operational Highlight12

Portfolio Management: Overview of Portfolio (as of April 30, 2022)
OfficeHotel

Retail (excluding Growth)

GrowthAUM(Acquisition
Price)

11 properties
86.6 billion yen

9 properties
30.7 billion yen

13 properties
26.5 billion yen

5 properties
20.6 billion yen

Appraisal NOI
Yield

4.5%

4.8%

4.7%

5.1%

NOI Yield after
Depreciation

3.8%

4.3%

3.8%

3.7%

Occupancy Rate

96.7%

100.0%

99.2%

95.8%

Remaining
Lease Term

1.6 years

6.7 years

9.0 years

11.5 years

Unrealized Gain(ratio)6.9 billion yen(+8.0%)

2.4 billion yen(+7.9%)

1.5 billion yen(+5.9%)

0.2 billion yen(+1.0%)

Feature (Note 1)

Large-scale office
74.0%
Average rent (Note 2) 16,250yen

Urban
24.2%
Neighborhood 75.8%

Fixed rent
59.5%
Variable rent 40.5%(Minimum guaranteed)

Responding to the Risk of Rising Electricity Rates◼

Hedged some risks against electricity rate hikes due to soaring energy prices and peakseason demand, etc. through introduction of multi-year contracts.

◼

The top 3 assets with highest utilities expenses (12th FP results) are shown on the right.

Note1: Ratio of “Feature” is based on acquisition price.
Note2: Large-scale office average monthly rent in Tokyo as of April 30, 2022.

AssetsCore plus
Industrial
Education

Utilities
Expenses (12th FP)

24.0%
57.1%
18.9%

Electric Power
Company

Contract
Term

Kawasaki Tech Center

180 million yen

AJuly 31, 2023

Mi-Nara99 million yen

BMarch 31, 2023

Shinagawa Seaside Parktower

90 million yen

CJuly 31, 2023

12

Operational Highlight13

Portfolio Management: Large-scale Office (1/2)
One remaining issue: Tokyo Front Terrace recovered 90% occupancy on agreement basis
Acquisition price(% Ownership)

billion yen(63.4%)

billion yen(100%)

billion yen(5%)

billion yen(50.2%)◼ 15 previews / many under serious considerations

6,877
tsubo

◼ Vacancy rate in the overall area remains high as the area struggles to filllarge cancellations◼ Core tenants with DC/research facility use are highly stable and continue toenjoy full occupancy◼ Profitability/stability is improving due to CPU tenant's server enhancement,
etc.

34,935
tsubo

5,848
tsubo

◼ Re-signed a contract with a major video game manufacturer, one of the
major tenants, through July 2027
◼ Progress has also been made for the expansion of two additional floors by amajor IT company on the back of the building grade, etc.

◼ Tenants’ move-in from May 2021 to April 2022: 5 contracts /387
tsubo(+6.6%)◼ Contracts and agreement concluded since May 2022: 4 contracts/482
tsubo(+8.2%)◼ Occupancy rate assumption at the end of the 13th FP: 89.7%

vs“Shinagawa Seaside” area

89.3%

100.0%End of 12th FP

vs“Kawasaki” area

End of 12th FP

82.1%

98.5%

vs
“Shinjuku” area 94.5%

End of 12th FP

83.5%

vs
“Tennozu” area 93.2%

Key issueTokyo Front
Terrace10.5◼ Successful leasing strategy by taking advantage of the building's high grade
and reasonable rent per tsubo

96.3%

End of 12 th FP

StableShinjuku Eastside
Square

10.0

tsubo

◼ Although there was a relatively large cancellation (233 tsubo), an application
has already been received

Occupancy rate (Note 2)

StableKawasakiTech Center

23.1

10,595Current Status and Future Outlook

StableShinagawaSeaside Parktower

20.2

Total area (Note 1)

Note 1: The figures for properties with quasi-co-ownership are also based on the entire property (100%).
Note 2: The average occupancy rates for areas other than Shinjuku are calculated based on surveys conducted by the Asset Manager and may differ from actual figures. The occupancy rate for "Shinjuku" is calculated by the Asset Manager based on the average vacancy rate (5.55%) by districtin Shinjuku published in Miki Shoji's "Office Market Tokyo Business District / As of May 2022".

13

Operational Highlight

14

Portfolio Management: Large-scale Office (2/2)
Rent Base Occupancy Rate of Large-scale Office (Note)100%

13 th FP (forecast)
93.6%

12 th FP (actual)
93.3%

95%

14 th FP (forecast)
94.6%

90%
Rent holiday
of large tenants

85%

Rent holiday
of large tenants

Rent holiday
of large tenants

ActualLeasing results were in line with the previous forecast
Increased number of previews and applications
Conservative outlook on earnings forecast

Forecast

80%
11 12
2020

1

2

3

4

5

6

7

2021

8

9

10 11 12

1

2

3

4

5

6

7

2022

Note: The figures represent the ratio of the total amount of each monthly rent to the total amount of the estimated monthly rent at the time of future full occupancy of each property as of June 15, 2022.

89

10 11 121

2

3

4 (month)2023
14Operational Highlight

15

Portfolio Management: BizMiiX Yodoyabashi & Mi-Nara
Steady progress made in comprehensive measures, continue improvement toward stabilized
operation & upside
BizMiiX Yodoyabashi

Mi-NaraLeasing Progress (Occupancy Rate Trends)

Monthly Rent
92.0%

100%

40%

0%

①+under proposal

58.9%

12

45
36

38

1

2

3

4

5

6
Outlook7

8
Actual◼

Contract term over 1 year: 76.8% / Renewal rate: 81.8% (Note 1)
Split/short-term use can meet diverse needs; renewal rate is high◼

Tenants move-out: 2 of 32 tenants (since opening)Zero leaving due to dissatisfaction with the facility

Tenant Attributes: Balanced
mix of startups, listed/large companies, and small and medium-sizedcompanies

63

63
55

58

62

58

53

56

55

Ratio of variable rent: 36.4%

20
0

60

36

(21/5-22/4)
1

2

3

4

5

2021

◼

54

①contract+application

As of June 9,
2022
11

57

40

37.4%

20%

(21/5-22/4)

80
60

56.1%

31.7%

Annual sales about 10.0 billion yen

57.7%

52.9%

60%

(million yen)
Annual sales
100

about 5.0 billion yen(20/5-21/4)

75.6%

80%

Late April 2021
Further Renewal

6

7

8

9

10

2021

11

12

1

2

3

4

2022

After further renewal(21/5-22/4)

After implementation of
improvement measures(Mid-term target) (Note 2)

58 million yen

64 million yen

Attracting tourism
demand and pursuing
upside to further
increase sales

COVID-19 subsiding

Effective use of vacantsections(about 1,000 tsubo)“RETRIP (22/4)”
Ranking 1st

Invited core tenant ”LOPIA”

Replacement of
unprofitable tenants

Goldfish Museum
visitor surges(supermarket)

Note 1: Of the tenants whose contracts expire at the end of June 2022, those tenants whose contracts have already been renewed are included.
Note 2: The mid-term targets after implementation of the improvement measures are targets as of June 15, 2022, calculated under certain conditions, and are not guaranteed to be achieved in the future.

15

Operational Highlight16

Portfolio Management: Hotel
Hotels in regional areas are firm/
Expect early recovery of variable rents due to resumption of domestic travel
Fixed Rent Hotels

Variable Rent Hotels
RevPAR of Regional Hotels (Note)

10 of 13 hotels

15.7

110

billion yen

71

78
65

59

55

66

82

72
57

92

84
67

65

Average RevPAR for 3 Hotels

3 of 13 hotels(compared to the same month in 2019/%)

10.7(quarterly/thousand yen)
6.7

7.4
6.6

Naha

7.0

billion yen

Providing as a recovery
accommodation facility forpatients with COVID-19

6.0

3.9 4.0

82

80

2.7

0.4
1
Daiwa Roynet
Hotel Akita

2

3

Comfort Hotel
Kitakami

4

5

6

7

8

9 10 11 12 1

2021

2

3

Trends in Contract Renewals (Contract Expiration: Dec. 2022)
Comfort Hotel Nagano

Acquisition price:

Acquisition price:

1,800 million yen
NOI:50 million yen
Rooms:(12th FP)143

◼ Fixed rent increase + further upside
expected due to increased tourism
demand

1.4 1.7 1.4 1.7

4

2022

Ise City Hotel Annex

1.0

580 million yen

Smile Hotel Naha
City Resort

Smile Hotel
Hakataeki-Mae

19/01

20/01

21/01

22/01

Variable Rent Recovery and DPU Impact
Comparedwith preCOVID-19

60%

70%

80%

90%

100%

DPU
Impact+55 yen+64 yen+73 yen+83 yen+92 yen

NOI:17 million yen (12th FP)
Rooms:76◼ Disposed on May 31, 2022
◼ Unrealized losses eliminated bydisposition at a price higher than bookvalue

Note: For ”RevPAR of Regional Hotels“, the figures are for hotels owned by MIRAI, other than those located in greater Tokyo, greater Osaka, greater Nagoya, as well as Fukuoka and Okinawa prefectures for which RevPAR is disclosed and weighted by the number of rooms available for sale, andare compared to the same month in 2019 after January 2021.

16

Operational Highlight17

Financial Activities

Minor impact of interest rate hikes: all debts are long-term debt with fixed interest rate while refinancing
is limited for the time being
Financial Highlight (as of the End of 12 th FP)

LTV

Average interest
rate

0.56％

Long-term fixed ratio

100％
Commitment line

3.0 billion yen(unused)Average remaining
maturity

3.9 years

Interest-bearing debt

84.0 billion yen
RatingJCA A+ (stable)
R&I A (stable)

Refinance interest rate

Fiscal period(Refinancing amount up to
the previous period)

48.8％

Resistance to Rising Interest Rate (DPU Impact) (Note)

0.4%

0.6%

0.8%

1.0%

14 th FP(23/04)(0 billion yen)

－

－

－

－

15 th FP(23/10)(7.0 billion yen)

(1)

(4)

(8)

(12)

16 th FP(24/04)(10.5 billion yen)

(1)

(6)

(12)

(18)

◼ Long-term debt executed in March 2022: 7 years duration / about 0.6%
◼ JGB 10-year yield has been stable at 0.20~0.25% since the beginning of thisyear
◼ Controlling DPU impact by shortening the duration, etc.

Note: Calculated by multiplying the balance of loans that will mature by the end of previous fiscal period and the difference between interest rate of such loans and refinancing interest rate for each fiscal period (six months), then dividing by the number of investment units outstanding as ofJune 15, 2022 (1,771,440 units). The same applies hereinafter.

17

Operational Highlight18

Effect of Inclusion in Global Index
Ratio of foreign investors increased after inclusion in FTSE/EPRA Nareit Global Index(billion yen)

December 10, 2019

December 2, 2021

December 13, 2021

120

Announcement of 3rd

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

Announcement of
4th PO

PO

10%

9%

90

8%
7%

60

6%
5%

30
2019/5

4%

2019/7

2019/102020/1

2020/42020/72020/10Market capitalization (left)

Foreign Investor(Note 2)2021/12021/42021/72021/102022/12022/4

DPU yield (right) (Note 1)

126(10.6%)

127(10.3%)

141(11.3%)

145(10.6%)

153(11.1%)

178(15.6%)

7th FP（19/10）

8th FP（20/04）

9th FP（20/10）

10th FP（21/04）

11th FP（21/10）

12th FP（22/04）

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

18

Operational Highlight19

ESG Initiatives
Focus on obtaining GRESB 3 star rating/
Steadily continue enhancement measures including disclosures, etc.
Increase Ratio of Assets withEnvironmental Certifications

GRESB Real Estate

Future Initiatives◼ April 2022: Obtained certification at Mi-Nara(first retail facility owned by MIRAI) Aim toincrease ratio of assets with environmental
certifications through acquisition of newcertifications
andmaintenanceandimprovement of existing certifications◼ First participation in 2021 (2 star)◼ Multiple improvement measures arebeing implemented for the 2022
rating upgrade◼ Continue to implement initiatives tofurther improve sustainability

Ratio of Assets with Environmental
Certifications(Note)

Obtain Third-Party Assurance on
Environmental Data

11th FP60.9 ％

12 th FP

74.4 ％

Tenant Engagement Measures

2021

Mi-Nara (Nara-shi, Nara)

2 star /Green star

Properties withexcellentenvironmental &social awarenessNote: Based on total floor area excluding land with leasehold interest. The same applies hereinafter.

Aiming to improve
the rating in 2022
(3 star)

Major measures to be
implemented in the future

Publication of
Sustainability Report

TCFD Disclosures
Initiatives to Improve
GovernanceOngoing Social
Contribution Activities
19

20

Section 2.
MIRAI Mid-Term Management Plan 2025
“Smart Defense/Offense with Aligned Interest”

MIRAI Mid-Term Management Plan 2025 “Smart Defense/Offense with Aligned Interest”

21

Progress to Date
Entering AUM expansion phase (Phase 2) after portfolio replacement during COVID-19 crisis
Began management withcore assets only

Started to include growth assets (core plus/new type)Pursue improved profitability/upside through ingenious acquisitions

December 2016
IPO

May 2018
1st PO

October 2018
2nd PO

December 2019
3rd POAUM 100.7 billion yen
15 properties

Acquisition of superior coreassets with sponsor support

Acquisition of newtype assets withsponsor support

Portfolio diversification
through acquisition ofvarious assets

Shinjuku
Eastside
SquarePhoto legend:​

Shibuya World
East Building

OfficeMI Terrace
Hotel Wing
Nagoya-Fushimi International SelectUeno/Okachimachi

Retail

Hotel

Rokko
Island DC

Smile Hotel
Hakataeki-Mae

My Square
Building

Tokyo
Eiseigakuen
Senmongakko

New Typephase 2

Portfolio strategy with emphasis on defensiveness
June 2020
Announced Revitalization Plan
Conversion of a hotel to an
office/renewal of a retail facility
focusing on post-COVID-19

BizMiiX Yodoyabashi

ShinagawaSeasideParktower

AUM expansion

新型コロナの拡大
Spreadof COVID-19​

AUM expansion phase 1

Building a stable foundation

Nov. 2020 to Mar. 2021
Revitalization Plan
Asset Replacement
Replacement to improve
defensiveness and profitability<Acquisition>

December 2021
4th PO

Return to AUM
expansion andimprove portfolio
defensiveness

Mi-NaraMarch/April 2020
Asset Acquisition/Partial Disposition
Ehime Building/Hiroshima

Cover the decrease in DPU throughacquisitions using debt capacity anddisposition gain
<Partial<Acquisition>
Disposition>

Tsurumi Fuga 1<Disposition>

Changes in AUM (Based on Acquisition Price)

Hiroshima
Rijo-dor
Building

MI CubeSendai
Clisroad

BIGMOTOR Ginan Yokohama-Daikokucho(land)
Maintenance Center(land)

Rokko
Island DC(billion yen)
180
160
140
120
100
80
0

100.7
2nd FP(17/04)

115.4

109.6

3rd Fp(17/10)

4th FP(18/04)123.9

5th FP(18/10)

145.0

143.1

6th FP(19/04)

7th FP(19/10)

153.4

151.2

153.9

153.9

8th FP(20/04)

9th FP(20/10)10th FP(21/04)11th FP(21/10)164.5

12th FP(22/04)21

MIRAI Mid-Term Management Plan 2025 “Smart Defense/Offense with Aligned Interest”

22

Track Record of Active Management
Aim to improve the portfolio quality through continuous asset replacement

AUM

2nd FP(17/04)

3rd FP(17/10)

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

6th FP(19/04)

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

9th FP(20/10)10th FP(21/04)11th FP(21/10)12th FP(22/04)

115.4

109.6

123.9

145.0

143.1

153.4

151.2

153.9

153.9

164.5

100.7

(billion yen)

Cumulative
AcquisitionPrice(billion yen)Totalacquisition

89.13

27 properties/
89.1 billion yen

69.22
56.03

IPO (16/12)
AUM: 1,007 B yen

14.69

each FP

78.48

78.48

25.33

25.33

69.52

56.03

34.88
20.60

cumulative total

Cumulative
Disposition
Price

0.00
11.71

(billion yen)each FP
cumulative total

Total
Disposition

6 properties/
25.3 billion yen

11.71

11.71

13.65

16.51

19.06
25.33

(including partial disposition)

22

MIRAI Mid-Term Management Plan 2025 “Smart Defense/Offense with Aligned Interest”

23

Portfolio Transition and NAV Improvement
Achieve AUM expansion and NAV per unit growth through highly agile strategy

AUM(Number of Properties)

2nd FP (17/04)

8th FP (20/04)

12th FP (22/04)

15

34

38

100.7 billion yen

NAV per Unit

45,640 yen

49,490 yen

Retail
21.8%

+7.2%

Core
100.0%

Hotel
19.0%
Office68.6%

164.5 billion yen

50,670 yen+2.4%

Others 7.8%

Hotel 9.7%

Portfolio Diversification(Based on
Acquisition Price)

153.4 billion yen

Others 9.5%

Core
89.0%

Office55.4%

Retail
17.8%

Hotel
16.1%

Core
87.5%

Office52.6%

Retail21.7%

Avg. Appraisal NOI
Yield/
after Depreciation

4.6%/3.9%

4.9%/4.1%

4.7%/3.9%

LTV

47.0%

48.3%

48.8%

Occupancy Rate

98.9%

99.8%

98.1%

Major Asset Acquisition
Shinagawa Seaside Parktower

Shinjuku Eastside Square

My Square Building

Tokyo Eiseigakuen Senmongakko

Ehime Building/Hiroshima

Tsurumi Fuga 123

MIRAI Mid-Term Management Plan 2025 “Smart Defense/Offense with Aligned Interest”

24

Historical DPU & NAV per Unit
Overcoming COVID-19 crisis and returning to a growth phase
Promote “Repower 2020” and increase stabilized DPU

Recognition of capital gain throughdisposition of MIUMIU Kobe

Impact of COVID-19

DPU
Contribution from disposition (Note 1)
Contribution from remaining assets other than disposition

45,640 yen

49,490 yen

1,563 yen

1,561 yen

1,293 yen

1,417 yen

1,436 yen

1,289 yen

1,267 yen

11th FP(Oct. 2021)

12th FP(Apr. 2022)

1,429 yen

1,265 yen

1,262 yen

815 yen

3rd FP (Note3)(Oct. 2017)

1,247 yen

47,000 yen
46,010 yen

1,451 yen

2nd FP(Apr.2017)

49,400 yen

50,120 yen

47,920 yen

NAV per unit (Note 2)

46,360 yen

49,190 yen

50,670 yen

50,010 yen

4th FP(Apr. 2018)

5th FP(Oct. 2018)

6th FP(Apr. 2019)

7th FP(Oct. 2019)

8th FP(Apr. 2020)

1,141 yen

9th FP(Oct. 2020)

1,045 yen

10th FP(Apr. 2021)

Note 1: Sum of 1) lease business profit of disposed assets during the period, 2) disposition gain as well as tax expense expected regarding disposition gain, 3) expenses for mid-term profitability improvement measure in relations to the asset under management and 4) investment unit issuancecost, are divided by the total number of investment units issued.
Note 2: Per unit numbers are rounded down to nearest 10 yen. MIRAI implemented a four-for-one investment unit split with April 30, 2019 as record date. For the purpose of comparison, the figures after 6 th FP are post split figures.
Note 3: Unrealized gain at the end of 3rd FP adds renewal investment of 844 million yen for Mi-Nara on the book value at the end of the fiscal period.​24

MIRAI Mid-Term Management Plan 2025 “Smart Defense/Offense with Aligned Interest”

25

Overview of Quantitative Targets
Formulate Mid-Term Management Plan 2025 “Smart Defense/Offense with Aligned Interest”

DPU

1,300

Smart
Defense:NAV per Unit
yen levelOver53,000AUM
yen

200 billion yen

1,285 yen

50,670 yen

163.9 billion yen(Forecast for the FP ending October 2022)(As of April 30, 2022)(As of May 31, 2022)◼ “Smart Defense” for now in light of uncertain
market environment and slow down in officemarket◼ Work to secure a pipeline with growth potential
in preparation for “Offense with Aligned
Interest” at the time of reopening◼ Target set at CAGR of around 2%◼ Aim to achieve this goal by acquiring properties
at a discount without competition, improving
the earnings of existing properties, andimplementing asset replacement and inflation
effects.

◼ Ensure portfolio quality through selective
investment and replacement strategy rather
than aggressive expansion of AUM◼ Set realistic targets based on certain standard
from the perspective of liquidity and credit
ratings

Average growth rate in the market (Note)

Percentage of AA rating or higher among
REIT with more than AUM of 200 billion

Average growth rate in the market (Note)

2.5%(2019-2021: Diversified)Note: Calculated by the Asset Manager based on the disclosed materials of each J-REITs

1.9%(End of April 2018 - End of April 2022:
Diversified/small and mid-sized)

91.9%(Excluding hotel REITs)
25

26

Section 3.
External Growth Strategy/Market Trends

External Growth Strategy/Market Trends

27

OfficeContinue to focus on mid-sized and regional core cities with emphasis on rent and occupancy stability
Tokyo 23 Wards/
Vacancy and Ratio of Floor Area Available for Lease by Size
Ratio of floor area available
for small and mid-sized
office remain stable.

8%

6%

4%

2%

0%

Vacancy rate: Large

Vacancy rate: Small/Mid

Floor area offered rate: Large

Floor area offered rate: Small/Mid

Source: Prepared by the Asset Manager based on XYMAX REAL ESTATE INSTITUTE Corporation, Office Vacancy Monthly Report in Tokyo April
2022

Investment Attractiveness Survey (Asia-Pacific)
2020

2021

2022

1

Tokyo

Tokyo

Tokyo

2

Beijing

Singapore

Shanghai

3

SydneySeoul

Singapore

4

Singapore

Shanghai

Sydney5

Shanghai

Ho Chi Minh

Beijing6

Seoul

BeijingHong Kong

7

Bangalore

ShenzhenSeoul

8Hong Kong

SydneyJapan:
other regional cities

9

Melbourne

Osaka

Ho Chi Minh

10

ManilaMelbourne

Osaka

Source: CBRE, Investor Intentions Survey◼ While tenants are becoming more active in anticipation of the COVID-19 subsiding, they are mainly needs for relatively small-sized offices
and there are signs of improvement in vacancy rates ahead of mid-sized offices that can flexibly respond to these needs◼ Tokyo continues to be the most important investment destination for investors due to the impact of the weak yen and its relative
undervaluation to other major cities around the world◼ On the other hand, the attractiveness of Japan’s regional cities is increasing, given the stable demand due to balanced supply anddemand and low of telework27External Growth Strategy/Market Trends

28

RetailWatch for market recovery in urban commercial districts for “Offense with Aligned Interest”

Asking Rent and Number of Space for Lease in Major Commercial
Districts in Tokyo & Osaka

Footfall Trends at Stations in Major Commercial Districts(2019=100)
100%

Average of all floors

89.7

90%
80%

82.5
75.3

91.7

90.2

80.4

76.9

Ginza

Omotesando

Shinjuku

Shibuya

Shinsaibashi(Osaka)21/1Q

35,09740,08535,71437,245

19,51622/1Q

41,60941,91135,34934,89822,276

21/1Q

393

446

294

215

349

22/1Q

349

361

249

241

270

83.2
76.1
Asking rent
(yen/tsubo)

70%(Fukuoka)

2022(~May 29)

Tenjin Sta.

(Hiroshima)

Hiroshima Sta.

(Miyagi)

Sendai Sta.

(Hokkaido)

2021

Source: V-RESAS, AGOOP Corp. “Current Population Data” (used on June 9, 2022)

Susukino Sta.

(Aichi)

Sakae Sta.

(Osaka)Namba Sta.

(Tokyo)2020

Shibuya Sta.

(Tokyo)Shinjuku Sta.

(Tokyo)Shinbashi Sta.

60%

Number ofSpace forlease

Source: Prepared by the Asset Manager based on NIKKEI REAL ESTATE MARKET REPORT (excerpts)◼ Although there are differences by region, there is a marked trend toward footfall recovery at stations in majorcommercial districts since the start of 2022 (Hokkaido and Sendai are expected to increase from summer onward)◼ Asking rents in the major commercial districts in Tokyo and Osaka, the benchmark areas, also began to increase
compared to the same period of the previous year.
◼ Possible signs for improvement in occupancy, such as a declining trend in the floor areas available for lease.
28External Growth Strategy/Market Trends

29

Hotel
Expect some recovery on domestic demand alone + further boost from inbound demand
Number of Domestic Travelers (total)(million)
350
300

Share of Domestic Residents in Domestic Overnight Stays
97.0%

284.5

291.6

296.8

295.5

284.9

100%

291.7
260.0

250
150.4

150
-2.2%

2.5%

2014

2015

1.8%

-0.4%

-3.6%

2016

2017

2018

Number of domestic travelers (total)

20%

132.0

2.4%

50
0

100%

60%

80%
60%

200

100

90.7%

120%

2019

-48.4%-12.2%

2020

2021

2022
(estimated)

Compared with last year

Source: Prepared by the Asset Manager based on JTB, Forecast of Travel Trends for 2022 (January-December)

-20%

40%
20%
0%

-60%

Share of domestic Population against sum ofDomestic population and International arrivals

Share of Domestic travelers in overnight stays

Source: CBRE, Retail market recovery in sight◼ Domestic travel in 2022 is expected to recover to 90% of the pre-COVID-19 outbreak level◼ Japan has one of the highest share of domestic residents among overall travelers in the world, with domestic residents
accounting for over 90% of all overnight stays in Japan◼ Expect certain level of recovery in the hotel industry even before the recovery of inbound demand, driven by domestic
demand that is expected to recover soon
29

30

Section 4.
Portfolio Management

Portfolio Management

31

Tenant Diversification (as of the End of 12th FP)
Diversification of Lease Maturity (based on rent) (Note 1)
25%(Note 2) Average remaining term:

5.2 years

Office:1.6 years

Retail (excluding Growth assets):

6.7 years

Hotel:

9.0 years

Growth assets:

11.5 years

20%
15%

◼

Continue to be conscious of the fixedterm ratio and aim to build a highly
defensive portfolio for “Smart Defense”.

◼

Each of the land assets with leaseholdinterest is leased on a fixed-term basis
for a period of 10 years or more, andstable operation is expected over the
long-term.

◼

In order to ensure the stability ofearnings, MIRAI will diversify the
portfolio fromwide perspectives,
including lease maturity, tenant industries,
and uses.

10%
5%
0%

12FP

14FP

16FP

18FP

20FP

22FP

24FP

26FP

28FP

30FP

Breakdown of Lease Contracts Type (based on rent)

Office42.6%

End of 12th FP

Fixed-term lease
47.8%

Regular lease
52.1%

Retail5.0%

8.5%
Hotel Others
1.6% 2.9%

12.3%

13.1%

13.9%

Average remaining
term

5.2 years

Fixed-term ratio(Remaining 5 years
or more)28.6%

Note 1: “Diversification of lease maturity (based on rent)” is calculated by dividing the remaining days of lease contracts in effect at the end of April, 2022 of portfolio assets by 365, weighting by the annual rent, and rounded down to the first decimal place.
Note 2: ”Average remaining term” is calculated by dividing the remaining days of lease contracts in effect as of the end of 12th FP of portfolio assets by 365, weighting by the annual rent, and rounded down to the first decimal place.

31

Portfolio Management

32

Tenant Diversification (as of the End of 12th FP)
Top 10 Tenants (based on rent)
Tenant Name

Tenant Diversification
Property

Ratio

1. HAVI Supply Chain Solutions Japan

Rokko Island DC

2. AEON Retail

AEON Kasai/Shinagawa Seaside Parktower-

3. NTT Comware

Shinagawa Seaside Parktower-

4.

3 Smile Hotels (Naha, Hakata and Nagoya)

4.3%

5. Super Hotel

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

3.2%

6. Chubu Telecom

MI Terrace Nagoya-Fushimi-

7. Seiyu

Tsurumi Fuga 1-

8. BIGLOBE

Shinagawa Seaside Parktower-

Hospitality Operations

5.2%

36.8%

Lease Contracts Diversification

9. Eisei College of Medical Arts & Sciences Tokyo Eiseigakuen Senmongakko-

10. (Not disclosed)-

Kawasaki Tech Center

Top 10

Top 1034.0%32

Portfolio Management

33

Tenant Replacement
Moving in & out (Offices and Urban Retail Assets)(sqm)

Moving in

4,000

Moving out

2,000

2,067

2,895

2,365

2,442

2,781

1,002

0

-780

-1,162-2,598-2,984-2,000-3,325-2,526-4,000
7th FP(Oct. 2019)
Occupancy rate
at end of period

8th FP(Apr. 2020)

9th FP(Oct. 2020)

10th FP(Apr. 2021)

11th FP(Oct. 2021)

12th FP(Apr. 2022)

100.0%

99.8%

96.2%

98.1%

97.8%

98.1%

Impact tooccupancy rate

+0.3%

(0.0%)+0.1%(0.1%)(0.3%)+0.1%

Increase/decrease in rent

35 million yen

6 million yen

16 million yen

6 million yen(34 million yen)

14 million yen(Entire portfolio)(Note)

Note: The amount of increase in monthly rents due to tenant replacement * 6.

33

Portfolio Management

34

Contract Renewal
Rent Renewal (based on Leasable Area) (Offices and Urban Retail Assets) *excluding rent abatement due to COVID-19
Decrease
5.2%

100%
16.4%

19.2%

Maintain

Increase

1.8%

25.1%

80%
54.7%
60%

40%

83.6%

80.8%

94.5%

97.9%

74.9%

45.3%

20%

0.3%

0%
7th FP(Oct. 2019)

8th FP(Apr. 2020)

9th FP(Oct. 2020)

10th FP(Apr. 2021)

11th FP(Oct. 2021)

0.2%
12th FP(Apr. 2022)

Contract
renewal area

13,886 sqm

13,664 sqm

20,807 sqm

10,840 sqm

15,141 sqm

14,356 sqm

Rent increase/decrease ratio

+1.8%

+4.4%

+1.8%

+4.0%

+0.1%

0.2%

Increase in rent

7 million yen

16 million yen

10 million yen

11 million yen

0 million yen

0 million yen(Note)

Note: The amount of increase in monthly rents due to rent revision * 6.

34

Portfolio Management

35

Hotel Portfolio Update (as of the End of 12th FP)
Area diversification

Fixed-rent properties

10/13

Operator group diversification

Daiwa Royal

Osaka area

Sotetsu HotelManagement

Tokyo area

Koshinetu

Number of rooms

1,989

KyushuGreensBased onacquisition
price

Nagoyaarea

Based onacquisition
price

Minacia

Average remaining term

9.0

Hospitality
Partners

Okinawa

TohokuSuper Hotel

Property◼ Maintain a cooperative relationship with
operators and negotiations to capitalize onmarket recovery

Nov. 2021Jan. 2022

Comparedwith 2019Feb. 2022Apr. 2022

RevPAR Trends (Note)
Comparedwith 2019

ADR

5,560 yen69%

5,540 yen

63%

OCC

100%

120%

100%

115%

RevPAR

5,560 yen83%

5,540 yen

72%

ADR

3,860 yen

43%

3,860 yen

42%

OCC

66%

74%

73%

77%

RevPAR2,550 yen32%

2,830 yen

33%

ADR
NagoyaOCC
Sakae
RevPAR

4,550 yen68%

4,420 yen

67%

54%

63%

64%

69%

2,440 yen

43%

2,830 yen46%

Hakataeki-Mae◼ 2 fixed rent hotel contracts expiring
within 3 years and 5 within 3~5 years

years

Performance of Hotels with Variable Rent (12th FP) (Note)

Naha◼ Hotels are assets that is resilient to
inflation, and MIRAI will maintain a certain
ratio of hotels in its portfolio

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

6th FP(19/04)

7th FP(19/10)7,170 yen

7,170 yen

8th FP(20/04)

9th FP(20/10)7,520 yen

5,850 yen

12th FP(22/04)5,550 yen

900 yen

1,290 yen
Provided as a recovery
accommodation facility
for COVID-19 patients

4,500 yen
890 yen5,910 yen

11th FP(21/10)4,200 yen

420 yen
8,340 yen

10th FP(21/04)4,730 yen

1,140 yen

2,120 yen

2,000 yen

2,680 yen

2,260 yen

1,770 yen

2,630 yen

35

Portfolio Management

36

Changes in Appraisal Value
Changes by Asset Type (properties held continuously)

Appraisal Value / Unrealized Gain(billion yen)
200

6.8%
6.2%

6.0%
180

5.6%

7%

End of 11th FP End of 12 th FP

Changes

6.3%
6%

5.6%

Office90.8 B yen

91.3 B yen

0.5 B yen(+0.6%)

Retail30.8 B yen

30.9 B yen

0.0 B yen(+0.1%)

Hotel

27.9 B yen

28.0 B yen

0.1 B yen(+0.5%)

Others15.7 B yen

15.7 B yen

-

(-%)

Total

165.3 B yen

166.0 B yen

0.7 B yen (+0.4%)

11.2
160

8.7

8.6

9.6

9.8

5%

8.7
140

4%
166.3
155.3

120

100

144.6

7th FPBook value (lhs)

152.8

155.6

155.5
3%

8th FP

9th FP

10th FP

Unrealized gain (lhs)

11th FP

12th FP

2%

Unrealized gain (%) (rhs)

36

37

Section 5.
Finance & ESG Initiatives

Finance & ESG Initiatives

38

Financial Activities (1/2)
Maintain solid financial base to withstand rising interest rates environment backed
by the creditworthiness of Mitsui & Co.
Financial Highlights

Diversified Funding Source

Average remaining
maturity

LTV

48.8%

3.9 years
48.8%

LTV

Interest-bearing debt

84,000 M yen
48.8%

48.6%

1.2%
2.4%
3.6%

7.4%
三井住友銀行
SMBC

三井住友信託銀行
SMTB

みずほ銀行
Mizuho Bank

新生銀行
Shinsei Bank

4.5%

三菱UFJ銀行
MUFG Bank

りそな銀行
Resona Bank

4.8%

Mizuho Trust Bank
みずほ信託銀行

Fukuoka Bank
福岡銀行

日本政策投資銀行
DBJ

南都銀行
Nanto Bank

4.4%

28.6%

7.1%

18.5%
17.6%

Averageremainingmaturity
Interestbearingdebt

3.9 years

3.4 years

78,700(million yen)

10 th FP

Credit Rating

3.3 years

84,00078,700Commitment Line

投資法人債
Bonds

11th FP

12 th FP

LenderMizuho BankJapan Credit Rating Agency (JCR)

Limitamount3.0 billion yen

A＋ (Stable)

Borrowings

None

Rating and Investment Information
(R＆I)

Term

Up to 1 year

A (Stable)
38

Finance & ESG Initiatives

39

Financial Activities (2/2)
All existing debts have long-term fixed interest rate/
Mindful of the average interest rate upon refinancing
Debt Maturity Ladder(million yen)
20,000◼ Total refinancing amount due by the 15th FP (fiscal period ending October 31, 2023): 10.5 billion yen◼ Controlling the duration to minimize the impact on DPU while taking into account the trend of interest rate hikes

1.2%◼ The impact on DPU is limited to -18 yen even with a refinancing rate of 1%

0.9%

15,000

Average interest rate: 0.56%

10,000

0.6%

5,000

0.3%

0

0.0%

Refinancing amount (lhs)

Average interest rate (rhs)39

Finance & ESG Initiatives

40

ESG Initiatives (1/3)
Promote efforts to realize materiality while improving and expanding external certifications
Participation in initiatives/external certifications, etc.

Materiality and SDGs

Principles for Financial Action for the 21st Century◼ MIRAI and the Asset Manager have identified materiality in order torealize sustainable society as part of our corporate social responsibility◼ A principles of conduct for Japanese Financial
Institutions that outline the responsibilities and roles
necessary for the formation of a sustainable society

Materiality (Material issues)◼ The Asset Manager signed the Principles in September
2020

Adaptation to climate change (reduction of GHG
emission and energy consumption, utilization ofrenewable energy etc.)

E
GRESB Real Estate Assessment◼ An annual benchmark assessment that measuresenvironmental, social and governance considerationsin the real estate sector◼ MIRAI participated in the assessment from 2021 andhas earned ２ Stars and Green Star

Related SDGs

Structuring a portfolio with minimal
environmental impact (reduction of water
consumption and of waste consumption,acquisition of environmental certification etc.)
Creating a work environment that takes into
consideration the health, safety, and well-beingof employees

S

Consideration for tenants’ safety and security

Support for the promotion of local communities

DBJ Green Building Certification◼ Certification system established by the Development
Bank of Japan to support environmentally and sociallyconscious real estate◼ New certification (3 Stars) in Mi-Nara in April 2022

Strength of governance system and risk
management

G
Promotion of disclosure

40

Finance & ESG Initiatives

41

ESG Initiatives (2/3)
Steady progress in improving environmental targets/
GF limit lifted through increased % of assets with environmental certificate
Environmental Targets/Recent Initiative
Targets (Note)◼ Reduce GHG emission intensity (GHG emission / gross floor area) of
our portfolio by 5% over the next 5 years

Green Finance Framework (GF)
As of the end of 11th FP(End of Oct. 2021)

As of the end of 12 th FP(End of Apr. 2022)% of assets
with certificate
60.9％% of assets
with certificate
74.4％◼ Reduce energy consumption intensity (energy consumption / grossfloor area) of our portfolio by 5% over the next 5 years

Introducing Renewable Energy◼ Shinjuku Eastside Square has switched to electricity derived
from 100% renewable energy source◼ Future properties to be switched will be determined based on
cost impact

Total assets with environmental certificate

85,889 million yen

Broadcasting of ESG Videos, etc. on Monitors Installed inCommon Areas

Total amount of eligible green projects

53,821 million yen◼ Monitors installed in elevator halls of office buildings

LTV◼ In addition to news bulletins, ESG awareness-raising videos
and emergency evacuation routes are shown

Upper limit of green finance

26,264 million yen◼ Promote providing information and raising ESG awareness totenants

Total amount of green finance

5,200 million yen

Note: The target period is from the fiscal year ending March 31, 2022 to the fiscal year ending March 31, 2026 (target achievement year). The base year is the fiscal year ended March 31, 2019.

48.8%

41

Finance & ESG Initiatives

42

ESG Initiatives (3/3)
Ongoing contributions to local communities/
Starting to enhance sustainability disclosures in the future
Contributions to the Local Community
Cycle &Bus Rides(Mi-Nara)

EARTH
HOUR
(Kawasaki)

Participation in ademonstration
experiment of healthenhancing andenvironmentally friendly
measures promoted by alocal transportationcompany

Participation in energysaving events to prevent
global warming

Promotecooperation witheducational
institutions(Mi-Nara)
Cooperation with auniversity in industryacademia partnershipand new projects foreducational facilities
owned by MIRAIStrengthening Sustainability Disclosure

Disclosed the GRI Standard
Reference Table, aninternational disclosure
standard for sustainability
report in March 2022
(GRI: Global Sustainability Standards)

Future Initiatives

GRI Standards

Publication of ESG Report

TCFD Disclosures

Publication of ESG reports
to further enhancesustainability information
disclosure

Prepare for “TCFD”, aframework for addressing
climate change (TCFD: Task
Force on Climate-related Financial
Disclosures)

Recoveryaccommodation
facility for patientswith mild cases of
COVID-19(Naha)
Continued to provide asa recovery
accommodation facility(from October 11, 2021
to October 31, 2022
(scheduled))Obtain Third-party
Assurance forEnvironmental Data

Obtain third-party
assurance to ensure
objectivity of disclosed
environmental data

42

43

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

Appendix.
Basic Information/Data

Basic Information/Data Collection

44

Features of MIRAIPortfolio Strategy

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

◼ Strong bank formation centering on the Mitsui Group.

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

◼ Ranked among the highest of all J-REITs in terms ofconditions for the debt.

0.56%

Averageinterest rate

“Smart Defense and Offense with Aligned Interest”

Averageremainingmaturity

3.9 years

JCR

R&I

A+ (Stable)

A (Stable)

Double Main Sponsors◼ Two mid-term management plans ("Repower 2020" and "ER") andthe "MIRAI Revitalization Plan“, a crisis response plan for COVID19 disaster, have been formulated since listing, and growthmeasures have been implemented based on clear sets of issues.

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

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

1. DPU :1,300 yen level→ To be Re-established after 2023

◼ The sponsors proactively support deal sourcing, fundraising andleasing activities.

2. NAV/U : Over 53,000 yen (CAGR about 2%)
3. AUM :200 billion yen (AA rating in mind)

44

Basic Information/Data Collection

45

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

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

Ratio by Asset Type(Note 2)

Limited Inclusion of Growth Assets
utilizing the competitive edge of thesponsors

Core Plus

OfficeOthers9.6%

Assets targeting profitability improvement throughupside achieved by leasing, renovation or conversion.

Hotel
16.1%

Mi-NaraAcquisition Price

Core Assets

87.5%

Office52.6%

4,944 million yen

Retail
21.7%

RetailRatio by area (Note 2)

New-type (Note 3)

Others
14.4%
Nagoya Area
8.9%

Hotel

Osaka Area
15.8%

Three
metropolitan
area

85.6%

Assets in Blue ocean, with less acquisition competition
and market expansion can be expected.

Tokyo Area
60.9%

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

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

7,996 million yen
45Basic Information/Data Collection

46

Portfolio List (as of April 30, 2022)
Asset Type

Large-Scale

OfficeMid-Sized

Property Name

Address

Date of
Acquisition

Core
RetailCommunity-Based% of thePortfolio

Appraisal
NOI Yield(Note 3)

NOI after
Depreciation(Note 3

Occupancy
Rate

Shinagawa Seaside Parktower

Shinagawa-ku, Tokyo

December 2016

20,288

12.3%

4.5%

3.9％

96.3％

Kawasaki Tech Center

Kawasaki-shi, Kanagawa

December 2016

23,182

14.1%

5.1%

4.1％

100.0％

Shinjuku Eastside Square

Shinjuku-ku, Tokyo

December 2016

10,000

6.1%

3.7％

3.0％

98.5％

Tokyo Front Terrace

Shinagawa-ku, Tokyo

October 2017

10,592

6.4%

4.0％

3.5％

83.5％

MI Terrace Nagoya-Fushimi

Nagoya-shi, Aichi

June 2018

8,886

5.4%

4.8％

4.2％

100.0％

Orico Hakataeki Minami Building

Fukuoka-shi, Fukuoka

August 2018

1,680

1.0%

4.7％

4.1％

100.0％My Square Building

Minato-ku, Tokyo

December 2019

2,800

1.7%

4.2％

3.8％

100.0％

Hiroshima Rijo-dori Building

Hiroshima-shi, Hiroshima

March 2020

2,250

1.4%

5.3％

4.5％

100.0％

BizMiiX Yodoyabashi

Osaka-shi, Osaka

November 2018

2,041

1.2%

2.8％

1.7％

58.9％

TCA Building

Osaka-shi, Osaka

January 2021

2,120

1.3%

4.6％

4.0％

100.0％

Ehime Building/Hiroshima

Hiroshima-shi, Hiroshima

January 2022

2,780

1.7%

4.9％

4.4％

100.0％

86,620

52.6%

4.5％

3.8％

96.7％

OfficeUrban

AcquisitionPrice(million yen)

Shibuya World East Building

Shibuya-ku, Tokyo

December 2016

3,200

1.9%

5.6％

5.2％

100.0％

THINGS Aoyama

Minato-ku, Tokyo

January 2020

2,912

1.8%

3.7％

3.5％

100.0％MI Cube Sendai Clisroad

Sendai-shi, Miyagi

March 2020

1,330

0.8%

4.9％

4.8％

100.0％AEON Kasai

Edogawa-ku, Tokyo

December 2016

9,420

5.7%

5.3％

4.4％

100.0％MEGA Don Quijote Izumi-Chuo

Izumi-shi, Osaka

December 2016

3,000

1.8%

4.4％

3.7％

100.0％CAINZ Mall Hikone (land)

Hikone-shi, Shiga

March 2021

3,598

2.2%

5.1％

5.1％

100.0％

MaxValu Takatori (land)

Hiroshima-shi, Hiroshima

March 2021

950

0.6%

4.6％

4.6％

100.0％

Tsurumi Fuga 1

Yokohama-shi, Kanagawa

January 2022

5,300

3.2%

4.4％

3.6％

100.0％BIGMOTOR Ginan (land)

Hashima-gun, Gifu

January 2022

1,080

0.7%

4.2％

4.2％

100.0％

30,790

18.7%

4.8％

4.3％

100.0％

Retail46

Basic Information/Data Collection

47

Portfolio List (as of April 30, 2022)
Asset Type

Core

Hotel

BudgetProperty Name

Address

Date of
Acquisition

Growth

Educational(Note 3)

NOI after
Depreciation(Note 3

Occupancy
Rate

December 2016

2,108

1.3%

6.2％

4.7％

94.6％

Daiwa Roynet Hotel Akita

Akita-shi, Akita

December 2016

2,042

1.2%

5.9％

4.1％

100.0％

Super Hotel Sendai/Hirose-doriSendai-shi, Miyagi

December 2016

1,280

0.8%

5.9％

5.0％

100.0％

Super Hotel Osaka/Tennoji

Osaka-shi, Osaka

December 2016

1,260

0.8%

5.3％

4.8％

100.0％

Super Hotel Saitama/Omiya

Saitama-shi, Saitama

December 2016

1,123

0.7%

5.5％

4.3％

100.0％

Super Hotel Kyoto/Karasumagojo

Kyoto-shi, Kyoto

December 2016

1,030

0.6%

5.3％

4.7％

100.0％Ise City Hotel Annex

Ise-shi, Mie

March 2018

1,800

1.1%

5.4％

4.5％

100.0％

Kitakami-shi, Iwate

March 2018

820

0.5%

5.3％

3.0％

100.0％

Nagano-shi, Nagano

March 2018

580

0.4%

5.8％

4.2％

100.0％

Hotel Wing International Select Ueno/Okachimachi

Taito-ku, Tokyo

May 2018

3,720

2.3%

4.3％

3.8％

100.0％

Smile Hotel Naha City Resort

Naha-shi, Okinawa

November 2018

4,000

2.4%

4.4％

3.9％

100.0％

Smile Hotel Hakatarki-mae

Fukuoka-shi, Fukuoka

November 2018

3,800

2.3%

3.1％

2.7％

100.0％

Smile Hotel Nagoya-Sakae

Nagoya-shi, Aichi

November 2018

2,950

1.8%

3.5％

2.9％

100.0％

26,513

16.1%

4.7％

3.8％

99.2％

(Note)

Hotel

Industrial

Appraisal
NOI Yield

Niigata-shi, Niigata

Comfort Hotel Kitakami

Community-based% of thePortfolio

Hotel Sunroute Niigata

Comfort Hotel Nagano

RetailAcquisitionPrice(million yen)

Mi-NaraNara-shi, Nara

October 2017

4,944

3.0%

4.2％

1.3％

91.9％

Rokko Island DC

Kobe-shi, Hyogo

November 2018

7,996

4.9%

5.5％

4.2％

100.0％

Odawara Material Storage & Delivery Center (land)

Odawara-shi, Kanagawa

March 2021

2,300

1.4%

4.9％

4.9％

100.0％

Yokohama-Daikokucho Maintenance Center (land)

Yokohama-shi, Kanagawa

March 2022

1,490

0.9%

4.0％

4.0％

100.0％

Tokyo Eiseigakuen Senmongakko

Ota-ku, Tokyo

January 2020

3,900

2.4%

5.8％

5.2％

100.0％

164,554100.0%

4.7%

3.9%

98.1%

Total Portfolio

Note: This property was disposed on May 31, 2022.

47

Basic Information/Data Collection

48

Assets List (as of April 30, 2022)
OfficeRetail

Hotel

Other

Office1

2

3

ShinagawaSeasideParktower

KawasakiTech Center

Shinjuku
Eastside Square

4

5

6

7

8

9

10

11

Tokyo Front
Terrace

MI Terrace
NagoyaFushimi

Orico
HakataekiMinami
Building.

My Square
Building

Hiroshima
Rijo-Dori
Building

BizMiiX
Yodoyabashi

TCA Building

Ehime Building/Hiroshima

Retail12

13

Shibuya World
East Building

THINGS
AoyamaGrowth Assets
14

15

MI Cube Sendai
Clisrord

16

AEON
Kasai

MEGA
Don Quijote
Izumi-Chuo

17

CAINZ Mall
Hikone(land)

18

MaxValu
Takatori(land)

19

TsurumiFuga 1

20

34

BIGMOTOR
Ginan(land)

Mi-Nara

35

36

37

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

38

Tokyo
Eiseigakuen
Senmongakko

Hotel
21

22

Hotel
Sunroute Niigata

Daiwa
Roynet Hotel
Akita

23

Super Hotel
Sendai/
Hirose-dori

24

25

26

27

28

29

30

31

Super Hotel
Osaka/Tennoji

Super Hotel
Saitama/Omiya

Super Hotel
Kyoto/
Karasumagojo

Ise City
Hotel Annex

Comfort Hotel
Kitakami

Comfort Hotel
Hotel Wing
Smile Hotel
NaganoInternational Select Naha City
(Disposed) Ueno/Okachimachi
Resort32

33

Smile Hotel
Hakataeki-Mae

Smile Hotel
Nagoya-Sakae

48

Basic Information/Data Collection

Portfolio Map (as of April 30, 2022)

49

49

Basic Information/Data Collection

50

Primary Data (as of the End of 12th FP)
Asset

Debt

Number of Properties
AUM(Based on Acquisition Price)

Outstanding InterestBearing Debt

38
164.5 billion yen

84 billion yen

Total Assets LTV

48.8%

Appraisal LTV (Note 3)

45.8%

Appraisal Value

177.6 billion yen

Average Interest Rate

0.56%

Unrealized Gain11.2 billion yen (+6.8%)

Average Remaining
Maturity

3.9 years(Unrealized Gain Rate)

Profitability(Based on Book Value)

Average Property Age(Acquisition Price Weighted Average)

Total Leasable Floor Space
Occupancy Rate
Asset Type
(Based on Acquisition Price)

NOI yield: 4.5% (Note 1)
NOI yield after depreciation: 3.7%

Credit Ratings

JCR: A+ (Stable)
R&I: A (Stable)

Equity26.4 years (Note 2)

Market Cap (Note 4)

89.6 billion yen

365,000 sqm

Unit Price (Note 4)

50,600 yen

NAV per Unit

50,670 yen

98.1%
Office:52.6%
Retail:18.7%(Core Assets Only)

Note 1：12th FP result
Note 2：Excluding land assets
Note 3：Total assets LTV=Outstanding interest-bearing debt/(total assets + unrealized gain)
Note 4：Based on the closing price of investment equity on the last day of 12th FP

Hotel:
16.1%
Growth: 12.5%

DPU
DPU Yield

1,267 yen (12 th FP result)
5.0%

50

Basic Information/Data Collection

51

Financial Summary
Fiscal Period

11th FP

12th FP

13th FP

14th FP

From

May. 1, 2021

Nov. 1, 2021

May. 1, 2022

Nov. 1, 2022

To

Oct. 31, 2021

Operating revenue

Apr. 30, 2022

Oct. 31, 2022

Apr. 30, 2023

Results

Results

Changes

Forecasts (Note 1)

Changes

Forecasts (Note 2)

Changes

Forecasts (Note 2)

Changes

A

B

B-A

C

B-C

D

D-B

E

E-D

(million yen)

5,113

5,275

161

5,178

96

5,492

217

5,393

-98

(million yen)

4,262

4,452

190

4,463

-10

4,591

138

4,579

-11

Office(million yen)

2,180

2,232

52

2,259

-26

2,317

84

2,351

34

Retail(million yen)

999

1,077

77

1,091

-14

1,173

96

1,186

13

Hotel

(million yen)

662

717

54

687

29

665

-51

585

-79

Industrial(million yen)

296

302

6

302

0

311

9

332

21

Educational(million yen)

122

122

-

122

-

122

-

122

-

Other lease business revenue(million yen)

851

822

-29

714

107

900

78

814

-86

Gain on sales of real estate properties(million yen)

-

-

-

-

-

0

0

-

0

Operating expenses(million yen)

1,582

1,563

-19

1,471

92

1,710

146

1,585

-124

NOI

(million yen)

3,531

3,711

180

3,706

4

3,781

70

3,807

26

Depreciation(million yen)

609

640

30

635

4

657

16

675

18

General administrative expenses(million yen)

524

523

0

531

-8

559

36

559

0

Non-operating expenses(million yen)

255

303

47

305

-2

287

-16

295

8

Net Profit(million yen)

2,143

2,244

101

2,232

11

2,276

31

2,276

0

(yen)

1,289

1,267

-22

1,260

/

1,285

18

1,285

-

Capital expenditure(million yen)

443

500

57

643

-143

569

69

694

125

NCF

-98

Lease business revenue

DPU(million yen)

3,088

3,211

123

3,063

147

3,212

0

3,113

FFO per unit

(yen)

1,656

1,629

-27

1,619

10

1,656

27

1,666

10

Payout ratio

%

77.8

77.8

-0.1

77.8

0.0

77.6

-0.0

77.1

-0.5

34

38

4

38

-

37

-1

37

-

%

97.8

98.1

0.3

-

-

165,350

177,610

12,260

6.3

6.8

0.4

(million yen)

78,70084,0005,300

84,000-84,000-84,000

-

%

48.8

48.8

0.0

48.7

0.1

48.9

0.1

48.9

-

(unit)

1,662,240

1,771,440

109,200

1,771,440-

1,771,440-

1,771,440

-

(yen)

44,22744,31487(yen)50,16050,672

512

Number of properties
Occupancy rate as of the end of fiscal period
Appraisal value(million yen)

Unrealized gain margin%

Outstanding interest-bearing debts
LTV (Note 4)
Total number of outstanding investment units

BPS（Note 5）

NAV per unit （Note 5）（Note 4）Note 1: This forecast was published in "(REIT) Financial Report for the Fiscal Period ended October 31, 2021 (The 11 th Period)" dated on December 13, 2021.
Note 2: This forecast is calculated based on certain assumptions as of June 14, 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 forecast should not be
construed as guarantee of DPU.
Note 3: LTV=Outstanding interest-bearing debt/Total assets.
Note 4: BPS＝Unitholders’ capital/Total number of outstanding investment units. NAV＝Unitholders’ capital + Unrealized gain. The same shall apply hereinafter.

51

Basic Information/Data Collection

52

Financial Summary by Property (1/4)

12 th FP: November 2021 - April 2022
Property Name

ShinagawaSeasideParktower

Shinjuku
Eastside
SquareKawasakiTech Center

Tokyo
Front Terrace

Orico
Hakataeki
Minami
Building

MI Terrace
NagoyaFushimi

Operating days

181

181

181

181

181

Operating revenue

740

979

260

247

Lease business revenue

656

549

234

Other lease business revenue

84

429

Operating expense

Hiroshima
Rijo-dori
Building

My Square
Building

181

BizMiiX
Yodoyabashi

TCA Building

Ehime
Building/Hiroshima

181

181

181

181

109

293

77

82

21

66

58

227

262

68

66

19

53

52

26

19

30

8

16

2

13

6

260

345

53

111

76

Not

16

21

36

18

10

Outsourcing service expenses

55

77

19

20

26

disclosed

4

5

16

5

6

Utilities expenses

90

180

13

22

19

(Note 1)

4

5

2

6

3

Property and other taxes

63

49

17

36

20

5

5

4

3

0

Repair expenses

11

8

-

7

5

1

2

0

1

0

Other expenses related to lease business

39

28

2

24

4

1

1

13

0

0

480

633

207

136

217

37

60

61

-14

48

47

65

120

38

25

27

4

5

7

11

6

4

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

415

513

169

110

189

33

54

53

-25

42

43

27

97

5

96

11

-

18

9

1

4

-

NOI
Depreciation

Capital expenditure
NCF

452

536

201

39

205

37

41

52

-15

43

47

19,93423,8009,775

10,801

8,943

1,727

2,942

2,341

2,018

2,237

2,832

NOI yield (Note 2)

4.9%

5.4%

4.3%

2.5%

4.9%

4.4%

4.1%

5.3%

-1.4%

4.4%

5.7%

NOI yield after depreciation (Note 2)

4.2%

4.3%

3.5%

2.1%

4.3%

3.9%

3.7%

4.6%

-2.5%

3.8%

5.1%

Book value

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

52

Basic Information/Data Collection

53

Financial Summary by Property (2/4)

12 th FP: November 2021 - April 2022
Property Name

ShibuyaWorld East
Building

Operating days

181

Operating revenue

114

Lease business revenue
Other lease business revenue
Operating expense

MI CubeSendai
Clisroad

THINGS
Aoyama181

AEON Kasai

MEGA
Don Quijote
Izumi-Chuo

CAINZ MALL
Hikone (land)

181

181

181

181

MaxValu
Takatori(land)

TsurumiFuga 1

181

BIGMOTOR
Ginan (land)

109

109

Hotel
Sunroute
Niigata

Daiwa
Roynet Hotel
Akita

181

181

34

70

69

101

30

70

69

13

3

0

-

19

Not

6

Not

Not

Not

Not

Not

Not

10

9

Outsourcing service expenses

4

disclosed1

disclosed

disclosed

disclosed

disclosed

disclosed

disclosed

1

1

Utilities expenses

4(Note 1)

2(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)0-

Property and other taxes

6

2

4

7

Repair expenses

0

0

3

-

Other expenses related to lease business

2

0

0

0

NOI

95

63

27

260

68

104

22

78

7

59

59

Depreciation

6

2

0

41

10

-

-

13

-

17

17

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

89

61

26

218

58

104

22

64

7

42

42

-

-

-

86

0

-

-

-

-

-

-

Capital expenditure
NCF

95

63

27

173

67

104

22

78

7

59

59

Book value

3,373

2,946

1,378

9,626

3,020

3,675

987

5,530

1,101

2,141

1,895

NOI yield (Note 2)

5.7%

4.3%

4.0%

5.4%

4.6%

5.8%

4.6%

4.8%

2.1%

5.6%

6.4%

NOI yield after depreciation (Note 2)

5.3%

4.2%

3.9%

4.6%

3.9%

5.8%

4.6%

3.9%

2.1%

4.0%

4.5%

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

53

Basic Information/Data Collection

54

Financial Summary by Property (3/4)

12 th FP: November 2021 - April 2022
Super Hotel
Ise City Hotel
Kyoto
Annex
KarasumagojoSuper Hotel
Sendai
Hirose-doriSuper Hotel
Osaka
TennojiSuper Hotel
Saitama
Omiya

Operating days

181

181

181

181

Operating revenue

44

39

35

44

37

-

Property Name

Hotel Wing
International
ComfortHotel Nagano Select Ueno/
Okachimachi

ComfortHotel
Kitakami

Smile Hotel
NagoyaSakae

Smile Hotel
HakataekiMae

Smile Hotel
Naha
City Resort

181

181

181

31

171

34

46

35

31

169

34

44

1

-

0

1

-

1

6

4

4

3

Not

Not

Not

Not

9

6

7

Outsourcing service expenses

-

-

-

-

disclosed

disclosed

disclosed

disclosed

000

Utilities expenses

-

-

-

-

(Note 1)

(Note 1)

(Note 1)

(Note 1)---

Property and other taxes

5

3

4

3

7

5

5

Repair expenses

0

-

-

-

1

-

1

Other expenses related to lease business

0

0

0

0

0

0

0

37

34

30

27

50

24

17

70

161

27

39

Depreciation

6

3

6

3

7

9

4

10

9

8

8

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

31

31

24

23

42

14

12

60

152

19

30

-

-

-

-

7

-

-

-

18

-

13

37

34

30

27

42

24

17

70

142

27

25

1,232

1,242

1,065

1,010

1,905

794

635

3,800

4,024

3,789

2,969

6.2%

5.6%

5.8%

5.4%

5.3%

6.2%

5.5%

3.7%

8.1%

1.5%

2.7%

5.1%

5.1%

4.6%

4.7%

4.5%

3.8%

4.0%

3.2%

7.6%

1.0%

2.1%

Lease business revenue
Other lease business revenue
Operating expense

NOI

Capital expenditure
NCF
Book value
NOI yield(Note 2)

NOI yield after depreciation (Note 2)

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

181

181

181

181

54

Basic Information/Data Collection

Financial Summary by Property (4/4)

55

12 th FP: November 2021 - April 2022

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

55

Basic Information/Data Collection

56

Appraisal Value Summary (as of April 30, 2022) (1/2)
Book Value
Asset Type

OfficeProperty Name

ChangeValue Calculated

Value

Capitalization Method

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

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

Shinagawa Seaside Parktower

19,934

22,570

2,635

13.2%

20,922

22,6333.8%

22,4433.5%

3.9%

Kawasaki Tech Center

23,80024,600799

3.4%

18,00025,2004.2%

24,3004.0%

4.4%

Shinjuku Eastside Square

9,775

10,650

874

8.9%

9,900

10,8503.6%

10,450

3.4%

3.8%

Tokyo Front Terrace

10,801

11,094292

2.7%

10,542

11,094

3.8%

11,0943.5%

3.8%

MI Terrace Nagoya-Fushimi

8,943

10,600

1,656

18.5%

10,10010,7003.8%

10,500

3.6%

3.9%

Orico Hakataeki Minami Building

1,727

1,780

52

3.1%

1,680

1,790

4.2%

1,780

3.8%

4.4%

My Square Building

2,942

3,050

107

3.6%

1,440

3,110

3.5%

3,030

3.3%

3.7%

Hiroshima Rijo-dori Building

2,341

2,540

198

8.5%

2,200

2,620

4.5%

2,510

4.3%

4.7%

BizMiiX Yodoyabashi

2,018

2,210

191

9.5%

1,090

2,380

4.6%

2,140

4.4%

4.8%

TCA Building

2,237

2,270

32

1.4%

2,100

2,350

4.1%

2,240

3.9%

4.3%

Ehime Building/Hiroshima

2,832

2,980

147

5.2%

3,050

3,080

4.4%

2,940

4.2%

4.6%

OfficeRetailAppraisal(ratio)87,356

94,344

6,988

8.0%

81,024

95,808-93,427--

Shibuya World East Building

3,373

5,000

1,626

48.2%

4,280

5,110

3.4%

4,890

3.2%

3.6%

THINGS Aoyama

2,946

3,240

293

9.9%

3,370

3,330

3.2%

3,200

3.0%

3.4%

MI Cube Sendai Clisroad

1,378

1,450

71

5.2%

1,070

1,480

4.3%

1,440

4.1%

4.5%

AEON Kasai

9,626

9,580

-46

-0.5%

9,850

9,660

4.9%

9,500

4.5%

5.1%

MEGA Don Quijote Izumi-Chuo

3,020

2,570

-450

-14.9%

3,260

2,600

5.0%

2,560

4.8%

5.2%

CAINZ MALL Hikone (land)

3,675

4,270

594

16.2%

4,530

4,280

4.5%

4,270

4.5%

-

MaxValu Takatori (land)

987

1,040

52

5.3%

1,040

1,070

4.3%

1,040

4.2%

4.4%

Tsurumi Fuga 1

5,530

5,800

269

4.9%

5,450

5,890

4.2%

5,760

4.3%

4.4%

BIGMOTOR Ginan (land)

1,101

1,190

88

8.0%

1,190

1,220

4.2%

1,190

4.1%

4.3%

Mi-Nara

5,081

3,750

-1,331-26.2%

6,160

3,910

5.6%

3,680

5.1%

5.6%

Retail

36,72337,890

1,166

3.2%

40,20038,550-37,530--Note 1: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.
Note 2: “CAINZ MALL Hikone (land)”, “Odawara Material Storage and Delivery Center (land)” and "Yokohama Daikoku-cho Maintenance Plant (land with leasehold interest)" have been appraised using the capitalization method over a definite term (Inwood method) and terminal cap rate has notbeen calculated.

56

Basic Information/Data Collection

57

Appraisal Value Summary (as of April 30, 2022) (2/2)
Book Value
Asset Type

Hotel

Property Name

Value Calculated

Value(ratio)Capitalization Method

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

Terminal
Capitalization
Rate(million yen)(million yen)

Hotel Sunroute Niigata

2,141

2,260

118

5.5%

1,220

2,270

5.3%

2,250

5.1%

5.5%

Daiwa Roynet Hotel Akita

1,895

2,170

274

14.5%

1,050

2,130

5.4%

2,180

5.2%

5.6%

Super Hotel Sendai/Hirose-dori

1,232

1,670

437

35.5%

1,700

1,690

4.4%

1,640

4.2%

4.6%

Super Hotel Osaka/Tennoji

1,242

1,590

347

27.9%

1,080

1,610

4.1%

1,560

3.9%

4.3%

Super Hotel Saitama/Omiya

1,065

1,330

264

24.9%

1,230

1,340

4.5%

1,310

4.3%

4.7%

Super Hotel Kyoto/Karasumagojo

1,010

1,290

279

27.6%

1,250

1,310

4.1%

1,260

3.8%

4.4%

Ise City Hotel Annex

1,905

1,810

-95

-5.0%

428

1,820

5.1%

1,800

4.9%

5.3%

Comfort Hotel Kitakami

794

828

33

4.3%

586

828

5.2%

828

5.0%

5.4%

Comfort Hotel Nagano

635

588

-47

-7.5%

261

588

5.0%

588

4.8%

5.2%

Hotel Wing International Select Ueno/Okachimachi

3,800

4,050

249

6.6%

2,880

4,100

3.8%

4,030

3.6%

4.0%

Smile Hotel Naha City Resort

4,024

3,990

-34

-0.9%

1,900

4,120

5.0%

3,930

4.8%

5.2%

Smile Hotel Hakataeki-Mae

3,789

3,580

-209

-5.5%

1,890

3,730

4.3%

3,520

4.1%

4.5%

Smile Hotel Nagoya-Sakae

2,969

2,920

-49

-1.7%

1,790

3,050

4.5%

2,870

4.3%

4.7%

26,50928,076

1,566

5.9%

17,26528,586-

27,766--

Rokko Island DC

7,727

8,880

1,152

14.9%

8,468

8,921

4.9%

8,828

4.7%

5.1%

Odawara Material Storage and Delivery Center (land)

2,418

2,560

141

5.8%

2,390

2,550

4.2%

2,560

4.1%

-

Yokohama-Daikokucho Maintenance Center (land)

1,514

1,580

65

4.3%

1,490

1,580

3.5%

1,580

3.5%

-

Tokyo Eiseigakuen Senmongakko

4,098

4,280

181

4.4%

2,420

4,330

5.0%

4,260

4.8%

5.2%

Other
Total

Change(million yen)

Hotel
Other

Appraisal

15,75817,300

1,541

9.8%

14,76817,381-

17,228--166,346

177,610

11,264

6.8%

153,257

180,325-

175,952--

Note 1: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.
Note 2: “CAINZ MALL Hikone (land)”, “Odawara Material Storage and Delivery Center (land)” and "Yokohama Daikoku-cho Maintenance Plant (land with leasehold interest)" have been appraised using the capitalization method over a definite term (Inwood method) and terminal cap rate has notbeen calculated.

57

Basic Information/Data Collection

58

Appraisal Value Summary (Changes from Previous Period) (1/2)
Appraisal Value
Asset Type

OfficeProperty Name

Changes inAppraisal(amount)

Changes inAppraisal(ratio)Discount Rate(change)

Terminal Capitalization Rate(change)(change)

Shinagawa Seaside Parktower

22,570

-

-

3.8%

-0.1%

3.5%

-0.1%

3.9%

-0.2%

Kawasaki Tech Center

24,600

100

0.4%

4.2%

-0.1%

4.0%

-0.1%

4.4%

-0.1%

Shinjuku Eastside Square

10,650

-

-

3.6%

-0.1%

3.4%

-0.1%

3.8%

-0.1%

Tokyo Front Terrace

11,094

-

-

3.8%

-0.1%

3.5%

-0.1%

3.8%

-0.2%

MI Terrace Nagoya-Fushimi

10,600

300

2.8%

3.8%

-0.1%

3.6%

-0.1%

3.9%

-0.2%

Orico Hakataeki Minami Building

1,780

-

-

4.2%

-

3.8%

-

4.4%

-

My Square Building

3,050

40

1.3%

3.5%

-0.1%

3.3%

-0.1%

3.7%

-0.1%

Hiroshima Rijo-dori Building

2,540

70

2.8%

4.5%

-0.1%

4.3%

-0.1%

4.7%

-0.1%

BizMiiX Yodoyabashi

2,210

10

0.5%

4.6%

-

4.4%

-

4.8%

-

2,270

10

-

4.1%

-

3.9%

-

4.3%

-

2,980

-

-

4.4%

-

4.2%

-

4.6%

-

94,344

3,510

3.7%

-

-

-

-

-

-

Shibuya World East Building

5,000

50

1.0%

3.4%

-

3.2%

-

3.6%

-

THINGS Aoyama

3,240

-10

-0.3%

3.2%

-

3.0%

-

3.4%

-

MI Cube Sendai Clisroad

1,450

-

-

4.3%

-

4.1%

-

4.5%

-

AEON Kasai

9,580

-

-

4.9%

-0.1%

4.5%

-

5.1%

-

MEGA Don Quijote Izumi-Chuo

2,570

-10

-0.4%

5.0%

-

4.8%

-

5.2%

-

CAINZ MALL Hikone (land)

4,270

10

-

4.5%

-

4.5%

-

-

-

MaxValu Takatori (land)

1,040

-

-

4.3%

-

4.2%

-

4.4%

-

5,800

-

-

4.2%

-

4.3%

-

4.4%

-

1,190

-

-

4.2%

-

4.1%

-

4.3%

-

3,750

-

-

5.6%

-

5.1%

-

5.6%

-

37,890

7,030

18.6%

-

-

-

-

-

-

TCA Building
Ehime Building/Hiroshima
OfficeRetail(million yen)

Capitalization Rate

(Note 1)

Tsurumi Fuga 1(Note 1)BIGMOTOR Ginan (land)
Mi-NaraRetail(Note 1)

(Note 1)

(Note 1)

Note 1: "Changes in Appraisal" of properties acquired in 12FP are shown as "-", but total of asset type and portfolio reflect the change of them.
Note 2: “CAINZ MALL Hikone (land)”, “Odawara Material Storage and Delivery Center (land)” and "Yokohama Daikoku-cho Maintenance Plant (land with leasehold interest)" have been appraised using the capitalization method over a definite term (Inwood method) and terminal cap rate has notbeen calculated.

58

Basic Information/Data Collection

59

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

Hotel

Property Name(million yen)Total(change)

Terminal Capitalization Rate(change)(change)

2,260

-30

-1.3%

5.3%

-

5.1%

-

5.5%

-

Daiwa Roynet Hotel Akita

2,170

-

-

5.4%

-

5.2%

-

5.6%

-

Super Hotel Sendai/Hirose-dori

1,670

100

6.0%

4.4%

-

4.2%

-

4.6%

-

Super Hotel Osaka/Tennoji

1,590

-30

-1.9%

4.1%

-

3.9%

-

4.3%

-

Super Hotel Saitama/Omiya

1,330

80

6.0%

4.5%

-

4.3%

-

4.7%

-

Super Hotel Kyoto/Karasumagojo

1,290

-10

-0.8%

4.1%

-

3.8%

-

4.4%

-

Ise City Hotel Annex

1,810

-

-

5.1%

-

4.9%

-

5.3%

-

Comfort Hotel Kitakami

828

-

-

5.2%

-

5.0%

-

5.4%

-

Comfort Hotel Nagano

588

-

-

5.0%

-

4.8%

-

5.2%

-

Hotel Wing International Select Ueno/Okachimachi

4,050

10

0.2%

3.8%

-

3.6%

-

4.0%

-

Smile Hotel Naha City Resort

3,990

20

0.5%

5.0%

-

4.8%

-

5.2%

-

Smile Hotel Hakataeki-Mae

3,580

-

-

4.3%

-

4.1%

-

4.5%

-

Smile Hotel Nagoya-Sakae

2,920

-

-

4.5%

-

4.3%

-

4.7%

-

28,076

140

0.5%

-

-

-

-

-

-

Rokko Island DC

8,880

-

-

4.9%

-

4.7%

-

5.1%

-

Odawara Material Storage and Delivery Center (land)

2,560

-

-

4.2%

-

4.1%

-

-

-

Yokohama-Daikokucho Maintenance Center (land) (Note 1)

1,580

-

-

3.5%

-

3.5%

-

-

-

Tokyo Eiseigakuen Senmongakko

4,280

-

-

5.0%

-

4.8%

-

5.2%

-

17,300

1,580

9.1%

-

-

-

-

-

-

177,610

12,260

6.9%

-

-

-

-

-

-

Other
(Note 1)

Changes inAppraisal(ratio)Discount Rate

Hotel Sunroute Niigata

Hotel (Note 1)
Other

Changes inAppraisal(amount)

Capitalization Rate

(Note 1)

Note 1: "Changes in Appraisal" of properties acquired in 12FP are shown as "-", but total of asset type and portfolio reflect the change of them.
Note 2: “CAINZ MALL Hikone (land)”, “Odawara Material Storage and Delivery Center (land)” and "Yokohama Daikoku-cho Maintenance Plant (land with leasehold interest)" have been appraised using the capitalization method over a definite term (Inwood method) and terminal cap rate has notbeen calculated.

59

Basic Information/Data Collection

60

Overview of Loans (as of April 30, 2022)
Amount(million yen)

Debt Providers

Interest Rate

Drawdown DateTerm

Mturity Date

Principal
Repayment Method

Description

Long-term Loan

Sumitomo Mitsui Banking Corporation/Resona Bank

8,000

0.75% (Note)

December 16, 2016

10.0 years November 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumitomo Mitsui Trust Bank

5,000

0.59% (Note)

December 16, 2016

8.0 years November 29,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

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

10,0000.50% (Note)

December 16, 2016

7.0 years November 30,2023

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Development Bank of Japan

2,000

0.62%

December 16, 2016

7.0 years November 30,2023

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumitomo Mitsui Trust Bank/Shinsei Bank

7,000

0.37% (Note)

December 16, 2016

6.0 years November 30,2022

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Trust & Banking

2,000

0.45%

April 28, 2017

7.0 years April 30,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumitomo Mitsui Trust Bank/Shinsei Bank

3,000

0.54% (Note)

October 26, 2017

7.8 years July 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

The Nanto Bank

1,000

0.54% (Note)

October 26, 2017

7.8 years July 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Resona Bank

1,000

0.71% (Note)

October 26, 2017

9.8 years July 30,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumitomo Mitsui Banking Corporation/The Bank of Fukuoka

5,000

0.73% (Note)

October 31, 201710.0 years October 29,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Shinsei Bank

1,000

0.57% (Note)

March 01, 2018

7.9 years January 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Resona Bank

500

0.57% (Note)

March 01, 2018

7.9 years January 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Bank

1,000

0.48%

March 01, 2018

5.9 years January 31,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumiomo Mitsui Banking Corporation

2,000

0.53% (Note)

May 15, 2018

7.0 years April 30,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Bank

1,500

0.56%

May 15, 2018

7.0 years April 30,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Trust & Banking

1,700

0.62%

August 01, 201810.0 years July 31,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Bank

2,500

0.68%

November 01, 2018

8.0 years October 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumiomo Mitsui Banking Corporation

3,000

0.57% (Note)

November 01, 2018

7.0 years October 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumitomo Mitsui Trust Bank/Shinsei Bank

3,500

0.42% (Note)

November 01, 2018

5.0 years October 31,2023

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term LoanMUFG Bank

1,500

0.45%

April 30, 2021

3.0 years April 30,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term LoanMUFG Bank

1,500

0.38%

October 29, 2021

3.0 years October 31,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Bank

1,500

0.40% (Note)

November 30, 2021

4.9 years October 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Bank

3,300

0.46% (Note)

November 30, 2021

7.0 years November 30,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Bank

4,000

0.51% (Note)

November 30, 2021

8.0 years November 30,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term LoanMUFG Bank

1,000

0.38%

January 12, 2022

3.0 years December 30,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumitomo Mitsui Trust Bank

1,000

0.38% (Note)

January 12, 2022

5.0 years December 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Shinsei Bank

1,000

0.43% (Note)

January 12, 2022

5.0 years December 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Sumiomo Mitsui Banking Corporation

1,000

0.48% (Note)

January 12, 2022

7.0 years December 29,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Mizuho Bank

1,000

0.62% (Note)

March 25, 2022

6.9 years February 28,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Resona Bank

300

0.60% (Note)

March 25, 2022

6.9 years February 28,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term Loan

Unsecured Bond #1

1,000

0.64%

July 26, 201810.0 years July 26,2028-

Unsecured and Non-guaranteed

Long-term Loan

Unsecured Bond #2

1,000

0.80%

July 13, 2020

10.0 years July 12,2030-

Unsecured and Non-guaranteed

Long-term Loan

Unsecured Bond #3

2,000

0.70%

September 28, 2021

10.0 years September 26,2031-

Unsecured and Non-guaranteed

Long-term Loan

Unsecured Bond #4

1,000

0.98%

September 28, 2021

15.0 years September 26,2036-

Unsecured and Non-guaranteed

Long-term Loan

Unsecured Bond #5

1,200

0.70%

November 30, 2021

10.0 years November 28,2031-

Unsecured and Non-guaranteed

84,0000.56%

Total/Average

7.5 years

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

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Basic Information/Data Collection

61

Unitholders’ Composition (as of the End of 12th FP)
Number of Unitholders / Ownership by Investor Type
Number ofInvestment
Units% of Total

vs. Previous
FP (Note)

Number ofUnitholders% of Total

Major Unitholders

vs.
PreviousFP

Unitholders

Number ofInvestment
Units% of Total

Individuals/Others

621,160

35.1%(1.9%)

32,69997.7% (0.2%)

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

253,997

14.3%

Financial
institutions

771,43643.5%(2.3%)

86

0.3% (0.0%)

Custody Bank of Japan, Ltd. (Trust account)

180,605

10.2%

Non-Japanese

277,198

15.6%

4.5%

300

0.9%

0.1%

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

74,299

4.2%

Other Japanese
corporations

101,646

5.7%(0.4%)

400

1.2%

0.1%

Custody Bank of Japan, Ltd.
(Securities investment trust account)

65,6693.7%

1,771,440

100.0%

33,485100.0%-The Hachijuni Bank, Ltd.

27,469

1.6%

STATE STREET BANK WEST CLIENT-TREATY 505234

25,532

1.4%

SSBTC CLIENT OMNIBUS ACCOUNT

20,462

1.2%

MITSUI & CO. ASSET MANAGEMENT HOLDINGS LTD.

20,000

1.1%

IDERA Capital Management Ltd.

20,0001.1%

JP MORGAN CHASE BANK 385771

19,857

1.1%

707,890

40.0%

Total

NonJapanese
15.6%

NonJapanese
Financial 0.9%
instuitutions
0.3%

Other JapaneseCorporations
5.7%

Number ofInvestment
Units

Financial
institutions
43.5%

-

Other
Japanese
Corporations
1.2%

Individuals/Others
35.1%
Number ofUnitholders

Individuals/Others
97.7%

Total

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Basic Information/Data Collection

Introduction of Unitholder Benefit Program (Discounted Hotel Rates)

62

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

Eligible
Unitholders

All unitholders whose names arelisted or recorded on unitholders’registry of MIRAI as of April 30,
2022 and who hold at least one
unit

Introduction of Applicable Hotels (Note)

Greens Hotels

Choice Hotels(27 hotels)(73 hotels)

Hotel Wing
International(36 hotels)(There are no requirements for thenumber of units held.)

Details of
the Benefit
Program

Preferential rates will be applied
when eligible unitholders stay at
the following applicable hotels
1. Greens Hotels
2. Choice Hotels
3. Hotel Wing International

Period ofValidity

From July 14, 2022
to June 30, 2023

Note: The number of locations is based on information of domestic locations as of April 2022.

62Basic Information/Data Collection

63

Company Profile (as of April 30, 2022)
Asset Manager
Name

Mitsui Bussan & IDERA Partners Co., Ltd.

Address

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

Management

General Meeting of
Shareholders

Representative Director, President/ Michio Suganuma
Representative Director, Vice President CIO/ Hiroyuki Iwasaki
Executive Director, CFO and GM of Accounting & Administrative Division/ Nobuaki Takuchi
Executive Director, GM of Investment & Asset Management Division/ Akira Nagahama
Director (part-time)/ Tamotsu Hagino
Director (part-time)/ Takuya Yamada
Corporate Auditor (part-time)/ Yutaka Koike

Shareholders

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

Paid-in Capital¥200 million

Registration &Licenses

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

Corporate Auditor
Investment
Management
Committee

Board of Directors
Compliance
Committee
President
Compliance Officer

Internal Audit Div.
Investment & AssetManagement Div.

Investment GroupAccounting &Administrative Div.

Finance & Planning
Div.

Asset Management
Group

Governance Structure of MIRAI
2 Asset custody agreement

Sponsors

3 General administrationagreement (accounting)

Mitsui & Co. Asset Management
Holdings Ltd.
IDERA Capital Management Ltd.

4 General administrationagreement (tax payment)

7 Sponsor support agreement (Note)

General administration
5 agreement (institutional
administration)

Board of Directors

External Asset Manager

Mitsui Bussan & IDERA
Partners Co., Ltd.

Asset management1agreement

GeneralMeeting ofUnitholders

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

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

Asset Custodian
Sumitomo Mitsui Trust Bank, Limited
General Administrator
Reiwa Accounting Holdings Co., Ltd.
General Administrator
Reiwa Tax Corporation
General Administrator
Mizuho Trust & Banking Co., Ltd

Accounting
Auditor

6 Transfer agency agreement

Transfer Agent

Ernst & Young
ShinNihon LLC

Fiscal Agency Agreement(investment corporation
7 bonds)

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

63

Disclaimer

64

Monetary amounts are rounded down to billions, millions or thousands of yen.
Percentage figures are rounded off to the first decimal place.
This material contains forward-looking business results, plans, and management targets and strategies. Such forward-looking statements are based on current
assumptions and conditions, including those regarding anticipated future developments and business environmental trends, and these assumptions andconditions may not always be correct. Such forward-looking statements assume the investment policy of MIRAI, the market environment, interest rate conditions,business practices and other fact relationships and applicable laws and regulations as of the date this material was published and they do not reflect or take into
consideration any change in circumstances occurring after such date. Forward-looking statements involve known and unknown risks, uncertainties and otherfactors, whether express or implied, and the actual performance, operating results, financial situation and other results of MIRAI may vary significantly due to avariety of factors.
This material is provided for your information and does not constitute a solicitation to buy the investment securities of MIRAI or to conclude any other financial
instrument transaction contract. In making investments, investors should do so based on judgements and responsibilities of their own.
The investment units of MIRAI are closed-end fund investment units, whereby investment units are not redeemable at the request of investors. Investors wishingto liquidate their investment units will in principle need to sell them to third parties. The market value of the investment units will be influenced by investor
supply and demand at securities exchanges and will fluctuate in accordance with the situation for interest rates, economic circumstances, real estate prices, andother market factors. It is therefore possible that investors will not be able to sell the investment units at their acquisition price and, as a result, may suffer losses.
MIRAI plans to make cash distributions to investors, but whether or not distributions are made and the amount of distributions thereof are not guaranteed under
any circumstances. Gains or losses on the sale of real estate, losses on the disposal of fixed assets accompanying the replacement of structures, and otherfactors would cause fiscal-period income to vary greatly, which would result in change in amount of distribution to be made.
Information provided herein does not constitute any of the disclosure documents or performance reports required by the Financial Instruments and Exchange Act
or the Act on Investment Trusts and Investment Corporations or by the Securities Listing Regulations of the Tokyo Stock Exchange.
This material is to be read and used at the responsibility of customers. MIRAI and related persons involved in the preparation and publication of this material will
not bear any responsibility for any damage arising from the use of this material (whether for direct or indirect damage, and regardless of the cause thereof).
While every effort has been made to avoid errors and omissions regarding the information presented in this material, the material has been created as an easy
reference for customers, and the presented information may contain inaccuracies of misprints. MIRAI bears no responsibility for the accuracy. This material issubject to change/discontinuation without notice. MIRAI is not obliged to update or announce any of the information contained in this material (including
forward-looking statements).
MIRAI holds the copyrights to the information appearing in this material. Copying, altering, publishing, distributing, appropriating, or displaying this informationor using it for commercial purposes without the prior approval of MIRAI is prohibited. Also, trademarks (trademarks, logos, and service marks) related to MIRAI
appearing in this material are owned by MIRAI, and copying, altering, publishing, distributing, appropriating, or reproducing such trademarks or using them forcommercial purposes without the permission of MIRAI is prohibited.
This material may include properties which are not held by or planned to be acquired by MIRAI.
This material in intended for the use of residents of Japan only.
@ MIRAI Corporation. All rights reserved.
Asset Manger: Mitsui & IDERA Partners Co., Ltd.
-Financial Instruments Business Operator (Director of Kanto Finance Bureau (Kinsho) No.2876)
64