(REIT) Financial Report for the Fiscal Period Ended December 2023
February 19, 2024
Listing: Tokyo Stock Exchange
URL: https://www.marimo-reit.co.jp/en/

REIT Securities Issuer:
Securities Code:
Representative:

marimo Regional Revitalization REIT, Inc.
3470
Takashi Kitagata, Executive Director

Asset Manager:
Representative:
Contact:

Marimo Asset Management Co., Ltd.
Takashi Kitagata, CEO
Katsuhiro Shimada, Financial Management Officer
TEL: +81-3-6205-4755

Scheduled date of commencement of dividends payment:
Scheduled date of submission of securities report:

March 15, 2024
March 28, 2024

Preparation of supplementary financial results briefing materials:
Holding of financial results briefing session:

Yes
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)
1. Status of Management and Assets for the Fiscal Period Ended December 2023 (from July 1, 2023, to December 31, 2023)(1) Operating Results(% figures are the rate of period-on-period increase (decrease))

Ended Dec. 2023
Ended June 2023

Operating revenue
million yen
%
2,081
(2.8)
2,141
16.3

Operating income
million yen
%
899
(8.6)
985
20.8

Net income per unit

Return on equity

yen
3,002
3,436

Ended Dec. 2023
Ended June 2023

Ordinary income
million yen%
711(11.1)
800
19.9

Net income
million yen%
712(10.9)
799
20.0

Ratio of ordinary income to Ratio of ordinary income to
net assets
operating revenue
%
%
%
2.8
1.3
34.2
3.6
1.6
37.4

(2) Dividends
Dividends per
unit

Dividends per
Total
Dividends
Total
unit
dividends
in excess dividends(excluding dividends (excluding dividends of earnings in excess (including dividends (including dividends
in excess ofin excess ofin excess ofin excess of
per unit of earnings
earnings)

yen
3,003
3,370

Ended Dec. 2023
Ended June 2023
(Note 1)

(Note 2)
(Note 3)

Total
dividends

earnings)
million yen
712
799

earnings)

yen
449
343

million yen
106
81

yen
3,452
3,713

earnings))
million yen
818
880

Payoutratio

Ratio ofdividends
to netassets

%
100.0
100.0

%
2.8
3.2

The breakdown of total dividends in excess of earnings for the fiscal period ended June 2023 is total dividends from allowance for temporary difference
adjustments of 1 million yen (5 yen per unit) and total dividends from distribution accompanying decrease in capital, etc. under tax law of 80 million
yen (338 yen per unit).
The breakdown of total dividends in excess of earnings for the fiscal period ended December 2023 is total dividends from allowance for temporary
difference adjustments of 1 million yen (5 yen per unit) and total dividends from distribution accompanying decrease in capital, etc. under tax law of
105 million yen (444 yen per unit).
The ratio of decreasing surplus, etc. attributable to distribution in excess of earnings (refund of investments in capital) is 0.004 for the fiscal period
ended June 2023 and 0.005 for the fiscal period ended December 2023.
Payout ratio is the figure calculated by the following formula, rounded to the first decimal place.
Payout ratio = Total dividends (excluding dividends in excess of earnings) ÷ Net income × 100(3) Financial Position
Fiscal period
Ended Dec. 2023
Ended June 2023

Total assets
million yen
55,06655,234

Net assets
million yen
25,12925,297

Net cashprovided by (used in)operating activities
million yen
1,450
1,322

Net cashprovided by (used in)investing activities
million yen(106)(11,724)

Equity ratio
%
45.6
45.8

Net assets per unit
yen
105,930
106,641(4) Cash Flows
Fiscal period

Ended Dec. 2023
Ended June 2023

Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen
(887)
2,827
10,1722,371

2. Operating Forecasts for the Fiscal Period Ending June 2024 (from January 1, 2024, to June 30, 2024) andOperating Forecasts for the Fiscal Period Ending December 2024 (from July 1, 2024, to December 31, 2024)(% figures are the rate of period-on-period increase (decrease))
Fiscal period

Operating revenue Operating income Ordinary income

Ending June 2024
Ending Dec. 2024

mn yen
2,093
2,096

%
0.5
0.2

mn yen
857
863

%
(4.7)
0.8

mn yen
658
663

%
(7.4)
0.7

Dividends per unit
Dividends per unit
Dividends(excluding dividends(including dividends
in excess of
Net income
in excess ofin excess ofearnings per unit
earnings)
earnings)
mn yen
%
yen
yen
yen
657
(7.7)
2,771
484
3,255
662
0.7
2,791
485
3,276

(Reference) Forecast net income per unit (Forecast net income ÷ Forecast number of investment units at end of period)
Fiscal period ending June 2024: 2,771 yen
Fiscal period ending December 2024: 2,791 yen(Note) The rate of period-on-period increase (decrease) for the fiscal period ending June 2024 shows comparison with the actual
figures for the fiscal period ended December 2023, and that for the fiscal period ending December 2024 shows comparison
with the forecast figures for the fiscal period ending June 2024.
* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatements
Changes in accounting policies accompanying amendments to accounting standards, etc.: None
Changes in accounting policies other than:
None
Changes in accounting estimates:
None
Retrospective restatements:
None(2) Total Number of Investment Units Issued and Outstanding
Total number of investment units issued and outstanding (including treasury investment units) at end of period
Fiscal period ended Dec. 2023
237,225 units
Fiscal period ended June 2023
237,225 units
Number of treasury investment units at end of period
Fiscal period ended Dec. 2023
0 units

Fiscal period ended June 2023

0

units

* Financial reports are exempt from the audit by a certified public accountant or an auditing firm.
* Special note
The operating forecasts and other forward-looking statements contained in this document are based on information currently
available to and certain assumptions deemed reasonable by marimo Regional Revitalization REIT, Inc. (hereinafter “marimo REIT”).
Accordingly, the actual operating results, etc. may differ materially due to various factors. In addition, the forecasts are not aguarantee of the amount of dividends.
Furthermore, for details on the assumptions underlying the forecast figures above, please refer to “Assumptions Underlying the
Operating Forecasts for the Fiscal Period Ending June 2024 (from January 1, 2024, to June 30, 2024) and Fiscal Period Ending
December 2024 (from July 1, 2024, to December 31, 2024)” on page 7.

Table of Contents
1. Management Status .......................................................................................................................................................................... 2(1) Management Status ................................................................................................................................................................... 2(2) Investment Risks ........................................................................................................................................................................ 8
2. Financial Statements ......................................................................................................................................................................... 9(1) Balance Sheet ............................................................................................................................................................................ 9(2) Statement of Income ............................................................................................................................................................... 11(3) Statement of Unitholders’ Equity............................................................................................................................................. 12(4) Statement of Distribution of Cash ............................................................................................................................................ 14(5) Statement of Cash Flows.......................................................................................................................................................... 15(6) Notes on the Going Concern Assumption ................................................................................................................................ 16(7) Notes on Matters Concerning Significant Accounting Policies ................................................................................................. 17(8) Notes on Matters Concerning Financial Statements ................................................................................................................ 19- 1 -1. Management Status(1) Management Status(Overview of the Fiscal Period under Review)
Brief History of the Investment Corporation
marimo REIT was incorporated under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as
amended; hereinafter the “Investment Trust Act”) with Marimo Asset Management Co., Ltd. (hereinafter, the “AssetManager”) as the organizer and investments in capital of 200 million yen (2,000 units) (Note) on February 5, 2016, andcompleted the registration with the Kanto Local Finance Bureau on March 16, 2016 (Registration No. 113 with the
Director-General of the Kanto Local Finance Bureau). marimo REIT then implemented an issuance of new investment units
through public offering (88,500 units) with July 28, 2016, as the payment due date, and was listed on the Real Estate
Investment Trust Securities Market of Tokyo Stock Exchange, Inc. on July 29, 2016 (securities code: 3470). The total numberof investment units issued and outstanding stands at 237,225 units as of the end of the fiscal period under review.
(Note)

Amounts are rounded down to the nearest million yen if such applies. Unless otherwise stated, the same shall apply hereinafter.

Investment Environment
In terms of the Japanese economy during the fiscal period under review (ended December 2023), the annualized real GDP
growth rate for the period from July to September 2023 decreased by 2.9% (seasonally adjusted; second preliminary
estimate) compared with the previous quarter. Going forward, with the employment and income environment improving
and various government policies having an effect as well, gradual recovery may be expected to continue. However, it isrecognized that there is a risk that a downturn in overseas economies such as the impact of global financial tightening andconcerns about the future of the Chinese economy exerts downward pressure on the Japanese economy and that attention
should be paid to the impact of rising commodity prices, the situation in the Middle East, and volatility in financial and capital
markets.
(Financial Market)
The JBA 3-month Japanese Yen TIBOR has fluctuated since June 30, 2023. It was 0.07000% from June 30, 2023, to December
6, 2023, and 0.08000% from December 7, 2023, to December 29, 2023. With surging resource and energy prices against the
backdrop of the Ukraine situation, Western governments continuing to implement financial tightening policies, attention
focused on developments in the Bank of Japan’s monetary policy, and other future uncertainties impacting financial markets
lingering, the impact of volatility in financial markets should still be carefully watched going forward.
(Real Estate Transaction Market)
According to the “ARES Monthly Report (December 2023)” published by The Association for Real Estate Securitization, actual
acquisition of real estate by J-REITs in the period from January to the end of November 2023 increased by 224.1 billion yen
year on year (+28.7% year on year) to 1.0048 trillion yen in terms of total acquisition price, and actual disposition increasedby 117.0 billion yen year on year (+50.7% year on year) to 347.8 billion yen in terms of total disposition price. This is likely
attributable to healthy real estate acquisition appetite among investors both in Japan and abroad as the accommodative
financing environment continues, which is driving the transaction market. Attention should continue to be paid going forward
to the Bank of Japan’s monetary easing policies and such.
(Residential Leasing Market)
According to the number of households by type of rental housing from 1993 to 2018 for the Tokyo metropolitan area (Note)and the rest of Japan (“Housing and Land Survey” by the Statistics Bureau of the Ministry of Internal Affairs andCommunications), the number of households living in privately owned rental housing is increasing, suggesting that demand
for rental housing is stable and demand for rental housing in Japan is likely to continue to grow.
(Note)“Tokyo metropolitan area” refers to Tokyo, Kanagawa, Chiba, and Saitama prefecture.

- 2 -(Retail Property Market)
According to the “Current Survey of Commerce” by the Ministry of Economy, Trade and Industry, for the period from July to
September 2023, the rate of increase in sales value compared with the same period of the previous year for supermarkets
was +4.7% on average nationally. By area, the rate of increase was +7.2% for the Kyushu area, +5.7% for the Hokkaido area,
and +5.4% for the Kanto area, showing an upward trend across the nation. For drugstores, the rate of increase was +9.3% on
average nationally, and by area, it was +11.7% for the Kinki area, +10.8% for the Chubu area, and +9.0% for the Shikoku area,
showing an upward trend across the nation.
For both supermarkets and drugstores, price increases for daily necessities such as food products and everyday goods wererecognized as having an impact.
The sales value of supermarkets and drug stores selling daily necessities is expected to remain stable in the long term.
(Hotel Market)
According to “Visitor Arrivals to Japan (estimate for November 2023)” by the Japan National Tourism Organization, thenumber of international visitors to Japan in the period from January to November 2023 continued to increase, rising
significantly to 22.33 million or +807.1% year on year (including estimates), exceeding 20 million in total. As a result, according
to the “Overnight Travel Statistics Survey (October 2023 / second preliminary estimates, November 2023 / first preliminary
estimates)” by the Japan Tourism Agency of the Ministry of Land, Infrastructure, Transport and Tourism, the total number ofovernight Japanese guests for October 2023 was 41.52 million (-1.1% year on year), while that of overnight international
guests was 12.26 million (+485.4% year on year), indicating that accommodation demand from international guests isincreasing significantly. Guest room occupancy rate by type of accommodation facility increased: 74.5% (+10.0% year onyear) for business hotels, 75.0% (+14.1% year on year) for city hotels, and 57.5% (+5.4% year on year) for resort hotels.
Even though there was negative growth in the total number of overnight Japanese guests, travel demand remains after the
restrictions of the pandemic, and it is very unlikely that it will drop significantly compared with the pre-pandemic level. It is
recognized that the total number of overnight international guests is being boosted by the exchange rate, as the yen remains
weak, and it is expected to continue increasing.
(Office Leasing Market)
According to “Japan Office Market View Q3 2023” by CBRE K.K., in the third quarter of 2023, the vacancy rate for major
regional cities was 3.4% (+0.2 percentage points year on year) for Osaka City, 5.3% (+0.2 percentage points year on year) for
Nagoya City, 2.0% (+1.0 percentage points year on year) for Sapporo City, 5.6% (-0.6 percentage points year on year) for
Hiroshima City, and 4.8% (+1.6 percentage points year on year) for Fukuoka City. While vacancy rates were observed to risein some regional cities, overall demand remains strong nationally, and vacancies are being filled in existing buildings.
Assumed contract rents in major regional cities were 14,700 yen/tsubo (-0.7% year on year) for Osaka City, 14,350 yen/tsubo(+0.3% year on year) for Nagoya City, 15,700 yen/tsubo (+1.2% year on year) for Sapporo City, 11,830 yen/tsubo (+0.3% year
on year) for Hiroshima City, and 16,050 yen/tsubo (-0.2% year on year) for Fukuoka City. Going forward, because demand for
offices in each regional city is expected to change with the prevalence of working in shared offices, working from home, etc.
and the presence of new supply, close attention should be paid to occupancy rates and such.
(Logistics Facility Market)
With regard to the logistics business environment, demand for logistics facilities is strong due to lifestyle changes triggeredby the pandemic (online shopping, e-commerce), and this demand is expected to increase even after the gradual easing oftravel restrictions since July 2022. Furthermore, an increase in demand for logistics real estate is also anticipated based on
the trend toward increased individual consumption with the easing of restrictions. In the context of this market environment,
logistics real estate users are becoming more diverse and demand is growing not just for large-scale logistics real estate but
for logistics real estate of various sizes with a range of facilities and features.

- 3 -Management Performance
During the fiscal period under review, leasing activities according to the characteristics of each region and setting of terms
and conditions for seeking tenants according to the characteristics and occupancy status of individual properties, etc. were
implemented through the promotion of integrated property management operations of the Asset Manager and various
property management companies, including Marimo Co., Ltd. (hereinafter “Marimo”), and efforts to realize stable operationof properties under management and reduce downtime were made. In addition, at Starship Kobe Gakuentoshi, adjacentland was acquired for free with a view to improving the property’s value, and as part of measures for internal growth, interiorrenovation work (replacing water heaters, washbasins, gas stoves, etc.) was carried out at ArtizA Hakata PREMIER. Moreover,at ArtizA Awajieki-higashi, on-site parking was subleased to a third party, which is expected to increase contract rent. Suchefforts resulted in an occupancy rate of 99.0% and period-average occupancy rate of 98.5% for marimo REIT’s portfolio assets
as of the end of the fiscal period under review (52 properties; total acquisition price (Note): 50,140 million yen).
With regard to sustainability initiatives, based on the recognition that initiatives considering ESG (environmental, social, andgovernance) contribute to improving customer profits over the medium to long term, the Asset Manager established a
Sustainability Policy in December 2023. Going forward, it also plans to move forward with preparation for acquisition of
GRESB Real Estate Assessment such as developing an internal structure.
(Note)“Acquisition price” is the sale and purchase price of the real estate trust beneficiary right stated in the trust beneficiary right sale andpurchase contract for the acquired asset, not including consumption tax and local consumption tax or brokerage fees and other various
expenses.

Financing Status
In the fiscal period under review, a long-term loan (Tranche 12) of 1,290 million yen was borrowed on August 1, 2023, topartially fund the repayment of a long-term loan (Tranche D) of 1,297 million yen borrowed on August 1, 2016, due forrepayment on August 1, 2023. As a result, at the end of the fiscal period under review (end of December 2023), the balanceof loans outstanding was 26,820 million yen and the ratio of interest-bearing liabilities to total assets (hereinafter “LTV ratio”)
was 48.7%.
(Note)As described in “(Outlook for the Next Fiscal Period)
Significant Subsequent Events (Reference Information) (B) Borrowing of Funds” laterin this document, a long-term loan of 2,420 million yen was borrowed on February 1, 2024, to partially fund the repayment of a long-termloan of 2,420 million yen (Tranche 6-A) due for repayment on the same date. As a result of this, as of the date of this document, the balanceof loans outstanding for marimo REIT stands at 26,820 million yen.

Overview of Business Performance and Distribution
As a result of the above, business performance for the fiscal period under review was operating revenue of 2,081 million yen,operating income of 899 million yen, ordinary income of 711 million yen, and net income of 712 million yen.
In addition, concerning dividends, in accordance with the distribution policy provided in marimo REIT’s Articles ofIncorporation, the decision was made to distribute the entire amount of unappropriated retained earnings, excluding
fractions of dividends per unit of less than 1 yen, by application of special provisions for taxation on investment corporations(Article 67-15 of the Act on Special Measures Concerning Taxation). This resulted in dividends per unit of 3,003 yen.
In addition to this, marimo REIT shall execute distribution of cash in excess of earnings (hereinafter “distribution in excess ofearnings”) in the fiscal period under review as part of cash management. Based on this, the decision was made to distribute
106 million yen, which is the amount roughly equivalent to 28% of depreciation for the fiscal period under review, as
dividends in excess of earnings. This resulted in dividends in excess of earnings per unit of 449 yen. Furthermore, included in
the dividends in excess of earnings is distribution of allowance for temporary difference adjustments of 1 million yen,resulting in allowance for temporary difference adjustments per unit of 5 yen.
In addition, payout ratio (ratio of total dividends including distribution in excess of earnings to the amount of net income
plus depreciation) was 75.0%.
(Note 1) Distribution in excess of earnings shall be executed only when total appraisal value of real estate, etc. held as at the end of the accounting
period (refers to the appraisal value in the real estate appraisal report obtained with the end of the accounting period as the date of value
for real estate, etc. held by marimo REIT; the same shall apply hereinafter) exceeds total book value of real estate, etc. for the concerned
accounting period plus total planned capital expenditures (refers to the total amount of reserve for capital expenditures) for the concerned
accounting period’s next period, but after also considering other options, such as utilization for repair expenses and capital expenditures
and allocation to funds for repayment of borrowings or acquisition of new properties.
Total appraisal value of real estate, etc. at the end of the 15th fiscal period (fiscal period ended December 2023) was 58,959 million yen,which exceeds the sum total of total book value of real estate, etc. (49,469 million yen) and the total amount of reserve for the planned
amount of construction of repair and renewal expenses (capital expenditures) planned to be implemented in the 16th fiscal period(103 million yen).
(Note 2) The breakdown of total book value of real estate, etc. is the sum total of the carrying amount of property, plant and equipment of
49,466 million yen and leasehold rights in trust posted to intangible assets of 2 million yen.

- 4 -(Note 3) For the 52 properties held by marimo REIT as of the end of the fiscal period under review, the 6-month average of the sum total amount of
the estimated amount of emergency repair expenses, estimated amount of short-term repair expenses and estimated amount of long-term
repair expenses (each falling under the category of renewal expenses (capital expenditures)) stated in the engineering report is 87 million
yen. In addition, the planned amount of repairs (those falling under the category of capital expenditures) currently assumed by marimo
REIT is no more than 103 million yen for the fiscal period ending June 2024 and 126 million yen for the fiscal period ending December 2024.
Therefore, even if an amount equivalent to the funds expected as reserve for the purpose of future capital expenditures for maintaining
the function of buildings, etc. or working capital, etc. and certain funds in preparation for investment that would serve to enhance theincome-producing potential of the portfolio are retained from the cash and deposits on hand in an amount equivalent to depreciation on
the last day of each accounting period, there is still expected to be residual free cash flows. Accordingly, the decision was made to executethe abovementioned distribution in excess of earnings as part of cash management under the judgment that it is within the scope thatsound financial stability will be maintained.

(Outlook for the Next Fiscal Period)
General Management Outlook(A) External Growth Strategy
The policy is to build a stable and highly profitable diversified portfolio, centering on regional areas, by increasing
opportunities to acquire mainly “residential” properties, for which leasing demand is relatively stable with the increase in
the number of households, and “retail” properties, such as food supermarkets, drug stores, home improvement stores anddiscount stores selling daily necessities, and conducting activities that lead to future external growth, while pursuing close
collaboration with Marimo, which has seven bases across Japan, through which a wide variety of real estate information
gathered from all over Japan is shared and analysis of asset value and assurance of liquidity and substitutability are verified
with deep insight based on the many years of experience in regional areas.
In addition, the policy is to pursue expansion of asset size while being granted preferential negotiation rights for sales
transactions pertaining to the acquisition of properties, including the “ArtizA” series of rental condominiums developed by
Marimo, income-producing real estate held or purchased by Marimo and retail or hotel properties developed in Marimo’s
urban redevelopment (Note) business, etc., based on the sponsor pipeline and support agreement. Along with this, the policy
is to keep fully utilizing the abundant property network, property information sourcing strengths, etc. of Marimo and thenine supporting companies (San ju San Bank, Ltd., The Michinoku Bank, Ltd., The Tokyo Star Bank, Limited, The Chugoku Bank,
Limited, Kansai Mirai Bank, Limited, The Hiroshima Bank, Ltd., The Ashikaga Bank, Ltd., ReBITA inc., and Alpha Court Co., Ltd.)and also property information obtained based on the network accumulated in the real estate industry by the officers andemployees of the Asset Manager and property information obtained based on maintaining favorable relationships with thetenants of portfolio properties for the steady external growth of marimo REIT.
Moreover, sale or replacement of properties are considered in cases where deemed appropriate over the medium to longterm in portfolio building in light of market conditions.
(Note)

Urban redevelopment refers to redevelopment to promote reasonable and sound high-level use of land in urban areas and renewal ofurban functions.

(B) Internal Growth Strategy
Through appropriate management of assets with the provision of property management services, etc., provision of leasing
support, provision of support in renovation of portfolio assets, provision of fixed-rent master lease agreements and othervarious support pertaining to internal growth from Marimo, and with also the planned provision of property information,
provision of leasing support and other various support from Alpha Court Co., Ltd., by setting the securing of stable revenue
from leasing over the medium to long term as a target, marimo REIT shall aim for stability of revenue and enhancement ofincome-producing potential and thereby aim for maximization of unitholder value over the medium to long term.
With respect to rising commodity prices, the situations in Ukraine and the Middle East, and financial and capital market
trends, it is recognized that close attention should be paid to future impact.
Continuing on from the fiscal period under review, marimo REIT shall work to enhance lease business revenue, such as
maintain asset value and competitiveness by implementing strategic value enhancement work, enhance occupancy rate,
raise rent upon tenant replacement, and increase parking revenue and other incidental revenue, in light of the operational
status of portfolio assets, surrounding competitive property trends and other real estate market conditions.
In addition, along with the measures serving to enhance lease business revenue, marimo REIT shall work to enhance revenue
from leasing by striving for reduction of restoration and other repair and construction expenses, environmental consideration
by switching lighting in common areas to LED, and reduction of tenant solicitation expenses and other various expenses.

- 5 -(C) Financial Strategy
marimo REIT shall engage in financing that would be for the realization of building of a stable asset management base,efficiency of asset management and soundness of financial standing over the medium to long term.
marimo REIT shall execute debt financing with the staggering of debt maturities, lengthening of borrowing periods, loweringof borrowing interest rates, and fixing of borrowing interest rates in mind, and shall make efforts to maintain a bankformation comprising several financial institutions, including city banks, trust banks, and regional financial institutions thatfully understand the characteristics of each region.
Issuance of new investment units shall be decided in light of the financial environment in due consideration of the dilutionof existing unitholders’ rights and accompanying investment unit transaction price trends, etc., and also comprehensively
taking into account various factors, such as the demand for funds for acquisition of properties, level of LTV ratio andrepayment plan for interest-bearing liabilities.
Significant Subsequent Events
Not applicable.
(Reference Information)
Borrowing of Funds
marimo REIT borrowed a long-term loan of 2,420 million yen on February 1, 2024, partially fund the repayment of a longterm loan due for repayment on the same date (Tranche 6-A) of 2,420 million yen. Details are as follows.
Lender

Tranche13

Loan syndicate with
Sumitomo Mitsui
Banking Corporationas arranger(Note 1)

Loan amount(million yen)

2,420Interest rate
(Note 2)

Drawdown
date

Maturity
date

Repayment
methodBase rate(JBA 3-month
Japanese Yen TIBOR)(Note 3) + 0.55%(floating rate)

February 1,
2024

February 1,
2027(Note 4)Lump-sum Unsecured
repayment
andat maturity unguaranteed

Remarks(Note 1) The loan syndicate consists of Sumitomo Mitsui Banking Corporation, The Hiroshima Bank, Ltd., The Bank of Fukuoka, Ltd., Sumitomo Mitsui
Trust Bank, Limited, The Higo Bank, Ltd., SBI Shinsei Bank, , Limited, San ju San Bank, Ltd., and Resona Bank, Limited.
(Note 2) Not including borrowing expenses, etc. payable to the lender.
(Note 3) The base rate applicable to the calculation period for the interest payable on each interest payment date shall be the JBA 3-month Japanese
Yen TIBOR two business days prior to each interest payment date (however, the drawdown date in the case of the first interest calculation
period). For the JBA Japanese Yen TIBOR, please check the website of JBA TIBOR Administration (https://www.jbatibor.or.jp/english/). If the
JBA 3-month Japanese Yen TIBOR falls below 0%, then the base rate shall be 0%.
(Note 4) If the concerned date is not a business day, then it shall be the next business day, but if that next business day falls into the next calendar
month, then it shall be the business day preceding the concerned date.

- 6 -Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending June 2024 (from January 1, 2024, to June 30, 2024) andFiscal Period Ending December 2024 (July 1, 2024, to December 31, 2024)
Item

Assumptions

Accounting
periodFiscal period ending June 2024 (16th fiscal period) (from January 1, 2024, to June 30, 2024) (182 days)
Fiscal period ending December 2024 (17th fiscal period) (from July 1, 2024, to December 31, 2024) (184 days)

Assets undermanagement

The assumption is that marimo REIT will continue to hold the real estate trust beneficiary rights to 52 properties
held as of the date of this document through to the end of the fiscal period ending December 2024 and that
there will be no acquisition of new properties or disposition of portfolio properties other than those.

Operatingrevenue

OperatingexpensesNon-operating
expenses

Loans
Investment
units
Dividends
per unit(excluding
dividends
in excess ofearnings)

In actual practice, change may arise due to acquisition of new properties, disposition of portfolio properties, etc.
Operating revenue from leasing of the portfolio assets of marimo REIT is calculated on the basis of rent, etc.
stated in lease contracts in effect as of the date of this document, historical data, etc..
The assumption is there will be no delinquent or unpaid rent by tenants.
Of operating expenses from leasing, the main operating expenses, expenses other than depreciation arecalculated on the basis of historical data, etc. and by reflecting the factors causing fluctuation in expenses.
Operating income from leasing after operating expenses from leasing (including depreciation) is deducted(excluding gain on sale of real estate properties) is expected to be 1,151 million yen for the fiscal period ending
June 2024 and 1,156 million yen for the fiscal period ending December 2024.
In general, fixed asset tax, city planning tax, etc. are calculated on a pro-rata basis and reimbursed at the timeof acquisition with the previous beneficiary, etc. upon transactions of real estate, etc., but because the amountequivalent to the reimbursement is included in the cost of acquisition, fixed asset tax, city planning tax, etc. are
expensed starting from the fiscal year following the year of acquisition.
Furthermore, the total amount of fixed asset tax, city planning tax, etc. to be expensed is expected to be 175
million yen for the fiscal period ending June 2024 and 175 million yen for the fiscal period ending December
2024.
Repair expenses for buildings based on medium- to long-term repair plans formulated by the Asset Manager
are expected to be 48 million yen for the fiscal period ending June 2024 and 37 million yen for the fiscal period
ending December 2024. Furthermore, concerning emergency repair expenses possibly arising fromunforeseeable factors causing building damage, etc., the amount generally varies materially from fiscal year tofiscal year and does not arise periodically, etc., which may result in repair expenses for each accounting period
differing materially from the forecast amount.
Depreciation is calculated under the straight-line method inclusive of incidental expenses and other future
additional capital expenditures, and is expected to be 383 million yen for the fiscal period ending June 2024 and384 million yen for the fiscal period ending December 2024.
Interest expenses and other borrowing-related expenses are expected to be 184 million yen for the fiscal period
ending June 2024 and 186 million yen for the fiscal period ending December 2024.
Amortization of investment unit issuance expenses are expected to be 14 million yen for the fiscal period ending
June 2024 and 14 million yen for the fiscal period ending December 2024.
The assumption is that total interest-bearing liabilities will be 26,820 million yen at the end of the fiscal period
ending June 2024 and 26,820 million yen at the end of the fiscal period ending December 2024.
The assumption is the total number of investment units issued and outstanding as of the date of this documentof 237,225 units.
The assumption is that there will be no change in the number of investment units due to issuance of new
investment units, etc. through to the end of the fiscal period ending December 2024.
Dividends per unit (excluding dividends in excess of earnings) is calculated based on the assumption that
distribution will be in accordance with the policy on distribution of cash provided in marimo REIT’s Articles ofIncorporation.
Dividends per unit (excluding dividends in excess of earnings) may vary due to various factors, such as fluctuationin rent revenue accompanying change in assets under management, change in tenants or other event, or
incurrence of unexpected repairs.

- 7 -

Item

Dividends
in excess ofearnings
per unit

Assumptions
Dividends in excess of earnings per unit is calculated in accordance with the policy provided in marimo REIT’s
Articles of Incorporation and the management guidelines that are the internal rules of the Asset Manager.
Distribution in excess of earnings is calculated based on the assumption that the sum total amount of taxation
and accounting discrepancies are distributed as allowance for temporary difference adjustments for the
purpose of tax reduction.
As of the date of this document, marimo REIT deems there to be no specific concerns of substantial
deterioration in the external economic environment, real estate market conditions and financial status ofmarimo REIT.
For the fiscal period ending June 2024 and fiscal period ending December 2024, there are high needs to retain
certain funds to respond in the event that opportunities for acquiring new properties as investment that would
serve to enhance the income-producing potential of the portfolio or such arise, but in light of marimo REIT’s
financial status, projected likelihood of refinancing borrowings, etc., the view is that marimo REIT is not in astate that calls for prioritized allocation of funds to reduce interest-bearing liabilities, etc. in both concerned
accounting periods. As of the date of this document, execution of distribution in excess of earnings is deemed
to be reasonable for the fiscal period ending June 2024 and fiscal period ending December 2024. As such, forthe fiscal period ending June 2024, total dividends in excess of earnings is expected to be 114 million yen, of
which total dividends of allowance for temporary difference adjustments is 1 million yen and total otherdividends in excess of earnings is 113 million yen, and for the fiscal period ending December 2024, total
dividends in excess of earnings is expected to be 115 million yen, of which total dividends of allowance fortemporary difference adjustments is 1 million yen and other distribution in excess of earnings is 113 million yen(Note 1).
(Note 1) Distribution in excess of earnings shall be executed only when total appraisal value of real estate, etc. held as at the endof the accounting period (refers to the appraisal value in the real estate appraisal report obtained with the end of theaccounting period as the date of value for real estate, etc. held by marimo REIT) exceeds total book value of real estate,etc. for the concerned accounting period plus total planned capital expenditures (refers to the total amount of reserve forcapital expenditures) for the concerned accounting period’s next period, but after also considering other options, such asutilization for repair expenses and capital expenditures and allocation to funds for repayment of borrowings or acquisitionof new properties. To that end, distribution in excess of earnings is not executed even in the 16th fiscal period (fiscal period
ending June 2024) and 17th fiscal period (fiscal period ending December 2024) regardless of the forecast above in theevent that such conditions are not met.
In addition, concerning the fiscal period ending June 2024 and fiscal period ending December 2024, as of the date of thisdocument, marimo REIT adopts the policy of distributing as cash in excess of earnings an amount decided by marimo REIT
each accounting period that is not to exceed the amount provided in the rules of The Investment Trusts Association, Japan(hereinafter “JITA”), no more than the amount equivalent to 30% of depreciation for the concerned accounting period andwithin the scope not to exceed payout ratio (Note 2) of 75%. Accordingly, the distribution in excess of earnings may nottake place or the amount of dividends in excess of earnings may decrease in the event of conflict with these limits.
Moreover, in the event that substantial deterioration in the external economic environment, real estate market conditions,financial status of marimo REIT, etc. or such newly arise in the future, the policy as of the date of this document to execute
distribution in excess of earnings as part of cash management in the fiscal period ending June 2024 and fiscal period ending
December 2024 may be changed and there may also be cases where the distribution in excess of earnings may not takeplace or the amount of dividends in excess of earnings may decrease even in the fiscal period ending June 2024 and fiscal
period ending December 2024. For instance, each accounting period’s limits on the amount of dividends in excess ofearnings like those above may be revised in the case that large-scale additional incorporation of new assets or other factors
lead to large fluctuation in the revenue and expense structure of the portfolio or such newly arising, in the case of materialchange in the financial environment, real estate investment trust market conditions, etc. or in other cases in the period
up to when the distribution in excess of earnings for the concerned accounting period is ultimately executed.
(Note 2) “Payout ratio” refers to the ratio of total dividends including distribution in excess of earnings to the amount of net income
plus depreciation.

Other

The assumption is that there will be no amendment of laws and regulations, tax systems, accounting standards,
listing regulations, JITA rules, etc. that will impact the forecast figures above.
The assumption is that there will be no unforeseen material change in general economic trends, real estatemarket conditions, etc.

(2) Investment Risks
Disclosure is omitted, because there is no significant change from “Investment Risks” in the most recent securities report(submitted on September 28, 2023).

- 8 -2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
14th fiscal period(As of June 30, 2023)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes refund receivable
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Lease and guarantee deposits in trust
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Total deferred assets
Total assets- 9 -15th fiscal period(As of Dec. 31, 2023)

1,241,619
3,510,551
17,985
115,747
310,097
5,196,002

1,681,570
3,472,446
16,180137,464−
5,307,661

23,181,696(3,021,782)
20,159,914
507,248(89,378)
417,870
123,822(39,496)
84,326
60,766(24,719)
36,046
29,041,025
3,004
49,742,188

23,277,188(3,381,878)
19,895,310
507,248(100,861)
406,387
123,822(42,517)
81,30569,029(29,707)
39,321
29,043,817
55
49,466,197

2,950
2,950

2,823
2,823

212,69315
10,00013,766
236,474
49,981,613

223,17012
10,00013,766
246,948
49,715,968

56,631
56,631
55,234,247

42,43242,43255,066,063

(Unit: thousand yen)
14th fiscal period(As of June 30, 2023)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Current portion of tenant leasehold and security deposits in trust
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Allowance for temporary difference adjustments
Other deduction from unitholders’ capital
Total deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets- 10 -

15th fiscal period(As of Dec. 31, 2023)

150,048
3,717,500
254,873927−
322,425
64,962
10,5284,521,265

128,5424,435,000
273,728
854
69,125321,351
64,962
6,969
5,300,532

23,110,000
2,286,553
18,41843
25,415,015
29,936,281

22,385,000
2,232,609
18,43744
24,636,091
29,936,624

25,214,309

25,214,309(14,459)(701,516)(715,976)
24,498,333(15,645)(781,698)(797,344)
24,416,964

799,633
799,633
25,297,966
25,297,966
55,234,247

712,474
712,474
25,129,439
25,129,439
55,066,063

(2) Statement of Income(Unit: thousand yen)
14th fiscal period
From: Jan. 1, 2023
To: June 30, 2023
Operating revenue
Lease business revenue
Other lease business revenue
Gain on sale of real estate
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Taxes and dues
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distributions payable
Interest on tax refund
Insurance income
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on receipt of donated non-current assets
Total extraordinary income
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 11 -

15th fiscal period
From: July 1, 2023
To: Dec. 31, 2023

1,929,080
116,182
96,7282,141,991

1,980,257
101,571−
2,081,828

880,352
175,478
2,661
21,8443,000
28,30545,306
1,156,949
985,041

879,764
193,062
2,748
24,8973,000
21,86656,6391,181,978899,849

20
199
2,453
−
2,673

24
465
−
104
594

108,552
64,526
14,198187,277
800,437

109,982
65,012
14,198189,193711,250−−
800,437929
1
930
799,506
126
799,633

1,900
1,900
713,150858
3
861
712,289185
712,474

(3) Statement of Unitholders’ Equity
14th fiscal period (from January 1, 2023, to June 30, 2023)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of current period

Allowance fortemporarydifference
adjustments

19,725,556(13,305)

Other
deduction fromunitholders’capitalTotal
deduction fromunitholders’capital(659,995)(673,301)

Unitholders’capital, net(19,052,254)

Changes of items during period
Issuance of new investment units

5,488,753

5,488,753

Dividends of surplus
Distribution in excess of earnings
attributable to allowance fortemporary difference adjustments
Other distribution in excess ofearnings(1,153)(1,153)(1,153)(41,520)(41,520)(41,520)

Net income
Total changes of items during period

5,488,753(1,153)(41,520)(42,674)5,446,078

Balance at end of current period

25,214,309(14,459)(701,516)(715,976)

24,498,333(Unit: thousand yen)
Unitholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of current period

666,574

Total
surplus666,574

Total
unitholders’equityTotal
net assets

19,718,828

19,718,828

5,488,753

5,488,753(666,447)(666,447)(1,153)(1,153)(41,520)(41,520)

Changes of items during period
Issuance of new investment units
Dividends of surplus(666,447)(666,447)

Distribution in excess of earnings
attributable to allowance fortemporary difference adjustments
Other distribution in excess ofearnings
Net income

799,506

799,506

799,506

799,506

Total changes of items during period

133,059

133,059

5,579,138

5,579,138

Balance at end of current period

799,633

799,633

25,297,966

25,297,966- 12 -

15th fiscal period (from July 1, 2023, to Dec. 31, 2023)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of current period

Allowance fortemporarydifference
adjustments

25,214,309(14,459)

Other
deduction fromunitholders’capitalTotal
deduction fromunitholders’capital(701,516)(715,976)

24,498,333(1,186)(1,186)(80,182)(80,182)(80,182)

Unitholders’capital, net

Changes of items during period
Dividends of surplus
Distribution in excess of earnings
attributable to allowance fortemporary difference adjustments
Other distribution in excess ofearnings(1,186)

Net income
Total changes of items during period
Balance at end of current period−(1,186)(80,182)(81,368)(81,368)

25,214,309(15,645)(781,698)(797,344)

24,416,964(Unit: thousand yen)
Unitholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of current period

Total
surplusTotal
unitholders’equityTotal
net assets

799,633

799,633

25,297,966

25,297,966(799,448)(799,448)(799,448)(799,448)(1,186)(1,186)(80,182)(80,182)

Changes of items during period
Dividends of surplus
Distribution in excess of earnings
attributable to allowance fortemporary difference adjustments
Other distribution in excess ofearnings
Net income

712,289

712,289

712,289

712,289

Total changes of items during period(87,159)(87,159)(168,527)(168,527)

Balance at end of current period

712,474

712,474

25,129,439

25,129,439- 13 -

(4) Statement of Distribution of Cash
14th fiscal period
From: Jan. 1, 2023
To: June 30, 2023
I. Unappropriated retained earnings
II. Addition of dividends in excess of earnings
Of which,
Allowance for temporary difference adjustments
Other deduction from unitholders’ capital

712,474,341 yen
106,514,025 yen

1,186,125 yen

1,186,125 yen

80,182,050 yen

105,327,900 yen
818,900,700 yen[3,713 yen]

[3,452 yen]

799,448,250 yen

712,386,675 yen[3,370 yen]
1,186,125 yen[3,003 yen]
1,186,125 yen[5 yen][5 yen]80,182,050 yen

105,327,900 yen[338 yen][444 yen]

185,172 yen
In accordance with the policy on
distribution of cash provided in
Article 25, Paragraph 1 of marimo
REIT’s Articles of Incorporation,
dividends shall be the amount of
distribution in excess of the amountequivalent to 90% of the amount ofmarimo REIT’s earnings available for
distribution provided in Article 6715, Paragraph 1 of the Act on Special
Measures Concerning Taxation.
Based on such policy, the decision
was made to distribute 799,448,250
yen, which is the largest integral
multiple of the total number ofinvestment units issued andoutstanding at end of period in an
amount not in excess ofunappropriated retained earnings,
as dividends of earnings.
Furthermore, in accordance withthe policy on distribution of cash
provided in Article 25, Paragraph 2of the Articles of Incorporation,
marimoREIT
shall
executedistribution in excess of earnings in
the fiscal period under review aspart of cash management. Based on
this, the decision was made to
distribute 81,368,175 yen, which isthe amount roughly equivalent to
22% of depreciation for the fiscal
period under review, as dividends inexcess of earnings. This resulted individends in excess of earnings perunit of 343 yen. Furthermore,
included in the dividends in excessof earnings is distribution ofallowance for temporary difference
adjustments of 1,186,125 yen,resulting in allowance for temporary
difference adjustments per unit of 5
yen.

87,666 yen
In accordance with the policy on
distribution of cash provided in
Article 25, Paragraph 1 of marimo
REIT’s Articles of Incorporation,
dividends shall be the amount of
distribution in excess of the amountequivalent to 90% of the amount ofmarimo REIT’s earnings available for
distribution provided in Article 6715, Paragraph 1 of the Act on Special
Measures Concerning Taxation.
Based on such policy, the decision
was made to distribute 712,386,675
yen, which is the largest integral
multiple of the total number ofinvestment units issued andoutstanding at end of period in an
amount not in excess ofunappropriated retained earnings,
as dividends of earnings.
Furthermore, in accordance withthe policy on distribution of cash
provided in Article 25, Paragraph 2of the Articles of Incorporation,
marimoREIT
shall
executedistribution in excess of earnings in
the fiscal period under review aspart of cash management. Based on
this, the decision was made to
distribute 106,514,025 yen, which isthe amount roughly equivalent to
28% of depreciation for the fiscal
period under review, as dividends inexcess of earnings. This resulted individends in excess of earnings perunit of 449 yen. Furthermore,
included in the dividends in excessof earnings is distribution ofallowance for temporary difference
adjustments of 1,186,125 yen,resulting in allowance for temporary
difference adjustments per unit of 5
yen.

[Dividends per unit]
Of which,
Dividends of earnings[Dividends of earnings per unit]
Allowance for temporary difference adjustments[Dividends in excess of earnings per unit
(attributable to allowance for temporary
difference adjustments)]
Other dividends in excess of earnings[Dividends in excess of earnings per unit
(attributable to other dividends in excess of

Method of calculation of dividends

799,633,422 yen
81,368,175 yen

880,816,425 yen

III. Dividends

earnings)]
IV. Retained earnings carried forward

15th fiscal period
From: July 1, 2023
To: Dec. 31, 2023

- 14 -

(5) Statement of Cash Flows(Unit: thousand yen)
14th fiscal period
From: Jan. 1, 2023
To: June 30, 2023
Cash flows from operating activities
Net income before income taxes
Depreciation
Amortization of investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease due to sale of property, plant and equipmentin trust
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Payments into restricted deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -

15th fiscal period
From: July 1, 2023
To: Dec. 31, 2023

800,437
375,354
14,198(20)
108,552
3,134

713,150
379,734
14,198(24)
109,982
1,805(310,097)

310,097(62,067)(25,394)
21,915(22,929)57,53969,125(21,716)(16,906)
19,646(1,074)542,109−(67,078)(13,249)
1,422,404
20(99,374)(957)
1,322,093(10,476)(5,783)
1,561,758
24(110,773)(931)
1,450,078(11,724,285)(0)(11,724,285)(106,296)(0)(106,296)

260,000(560,000)
7,890,000(2,155,000)
5,446,646(709,003)
10,172,642(229,548)
2,601,203
2,371,654−−
1,290,000(1,297,500)−(880,491)(887,991)
455,789
2,371,654
2,827,443

(6) Notes on the Going Concern Assumption
Not applicable.

- 16 -

(7) Notes on Matters Concerning Significant Accounting Policies
1. Method of depreciation(1) Property, plant and equipmentof non-current assets
The straight-line method is adopted.
Furthermore, the useful life of core property, plant and equipment is as follows:
Buildings in trust
2–68 years
Structures in trust
4–58 years
Machinery and equipment in trust
10–29 years
Tools, furniture and fixtures in trust
5–15 years(2) Intangible assets
The straight-line method is adopted.
Furthermore, the remaining or useful life of core intangible assets is as follows:
Leasehold rights in trust
19 years
Software5 years(3) Long-term prepaid expenses
The straight-line method is adopted.
2. Accounting forInvestment unit issuance expenses
deferred assets
Amortized using the straight-line method over 3 years.
3. Standards for(1) Standards for revenue recognition
revenue and expense
The details of main performance obligations concerning revenue generated fromrecognition
contracts between marimo REIT and its customers and the ordinary time to fulfil said
performance obligations (ordinary time to recognize revenue) are as follows:
Sale of real estate, etc.
For the sale of real estate, etc., marimo REIT recognizes revenue when the buyer,
who is a customer, gains control of the real estate, etc. by performing the delivery
obligations stipulated in the contract on sale of real estate.
Utilities income
For utilities income, marimo REIT recognizes revenue in accordance with the supplyof electricity, water, etc. to the lessee, who is a customer, based on the details of
the lease agreement of real estate, etc. and agreements incidental to it.
Of utilities income, in the case that marimo REIT deems itself to be an agent, thenet amount obtained by deducting the amount it pays to other related parties fromthe amount it receives as charges for electricity, gas, etc. supplied by said otherrelated parties is recognized as revenue.
(2) Accounting for fixed asset tax, etc.
For fixed asset tax, city planning tax, depreciable asset tax, etc. (hereinafter “fixed asset
tax, etc.”) on real estate or trust beneficiary rights that have real estate as trust assets
held, the accounting is that, of the tax amount assessed and determined, the amountcorresponding to the concerned accounting period is expensed as expenses related torent business.
Furthermore, the amount equivalent to fixed asset tax, etc. in the initial fiscal year borneby marimo REIT upon acquisition of real estate or trust beneficiary rights that have realestate as trust assets is not recognized as expenses but included in the cost of acquisitionof the concerned real estate, etc. The amount equivalent to fixed asset tax, etc. includedin the cost of acquisition of real estate, etc. was 81,037 thousand yen for the 14th fiscal
period and nil for the 15th fiscal period.
4. Scope of funds in the
The funds (cash and cash equivalents) in the statement of cash flows comprise cash on handstatement of cash flows
and cash in trust, demand deposits and deposits in trust, and short-term investments with amaturity of 3 months or less from the date of acquisition that are readily convertible to cash
and that are subject to an insignificant risk of changes in value.
5. Other matters serving as (1) Accounting for trust beneficiary rights that have real estate, etc. as trust assets
Concerning trust beneficiary rights that have real estate held, etc. as trust assets, all
the basis for preparationaccounts of assets and liabilities within trust assets and all accounts of revenue andof the financial
expenses from the trust assets are recognized in the relevant account item of thestatements
balance sheet and the statement of income. Furthermore, the following material itemsof the trust assets recognized in the relevant account item are separately listed on thebalance sheet.
Cash and deposits in trust
Buildings in trust; Structures in trust; Machinery and equipment in trust;Tools, furniture and fixtures in trust; Land in trust; Construction in progress in trust
Leasehold rights in trust
Lease and guarantee deposits in trust
Current portion of tenant leasehold and security deposits in trust
Tenant leasehold and security deposits in trust(2) Accounting for non-deductible consumption tax, etc.
Non-deductible consumption tax, etc. on non-current assets are included in the cost of
acquisition of each asset.
- 17 -

[Additional Information][Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments]
14th fiscal period (from Jan. 1, 2023, to June 30, 2023)
1.

Reason, related assets, etc. and amount of provision
The posting of MRR Omuta’s amortization of leasehold rights for leasehold rights in trust and amount in excess ofdepreciation limit and also asset retirement obligation-related expenses led to taxation and accounting discrepancies.
Accordingly, allowance for temporary difference adjustments of 1,186 thousand yen was posted in the statement of
distribution of cash.

2.

Specific method of reversal
For the allowance for temporary difference adjustments of the amortization of leasehold rights for leasehold rights in trust
and amount in excess of depreciation limit, the plan is reversal of the corresponding amount at the time of inclusion in
deductible expenses upon redemption and sale of leasehold rights and accompanying building removal and also building
sale, etc.
In addition, for the allowance for temporary difference adjustments of the asset retirement obligation-related expenses,
the plan is reversal of the corresponding amount at the time of inclusion in deductible expenses upon building removal
and sale, etc.

15th fiscal period (from July 1, 2023, to Dec. 31, 2023)
1.

Reason, related assets, etc. and amount of provision
The posting of MRR Omuta’s amortization of leasehold rights for leasehold rights in trust and amount in excess ofdepreciation limit and also asset retirement obligation-related expenses led to taxation and accounting discrepancies.
Accordingly, allowance for temporary difference adjustments of 1,186 thousand yen was posted in the statement of
distribution of cash.

2.

Specific method of reversal
For the allowance for temporary difference adjustments of the amortization of leasehold rights for leasehold rights in trust
and amount in excess of depreciation limit, the plan is reversal of the corresponding amount at the time of inclusion in
deductible expenses upon redemption and sale of leasehold rights and accompanying building removal and also building
sale, etc.
In addition, for the allowance for temporary difference adjustments of the asset retirement obligation-related expenses,
the plan is reversal of the corresponding amount at the time of inclusion in deductible expenses upon building removal
and sale, etc.

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(8) Notes on Matters Concerning Financial Statements[Notes to Balance Sheet]
Note 1: Assets Pledged as Collateral and Collateralized Liabilities
Assets pledged as collateral are as follows.
(Unit: thousand yen)
14th fiscal period(As of June 30, 2023)

15th fiscal period(As of Dec. 31, 2023)

Buildings in trust

620,342

612,526

Structures in trust
Land in trust

31,745
1,975,860

31,055
1,975,860

Total

2,627,949

2,619,443

Collateralized liabilities are as follows.
(Unit: thousand yen)
14th fiscal period(As of June 30, 2023)
Tenant leasehold and security deposits
in trust
Total

15th fiscal period(As of Dec. 31, 2023)
498,888

490,548

498,888

490,548

2. Contingent Liabilities
14th fiscal period (from Jan. 1, 2023, to June 30, 2023)
Not applicable.
15th fiscal period (from July 1, 2023, to Dec. 31, 2023)
With regard to Yamada Denki Tecc Land Mihara Store, which is an investment asset of marimo REIT, the end tenant Yamada
Holdings Co., Ltd. filed a lawsuit for reduction of rent (“the Lawsuit”) against Marimo Co., Ltd., the master lessee of theproperty, with the Tokyo District Court on October 16, 2023, of which the primary claim was a rent reduction of approximately
30% of the current rent for August 2022 and thereafter.
marimo REIT believes that the request for rent reduction in the Lawsuit lacks reasonable grounds and intends to plead tothat effect in future court proceedings through the master lessee against whom the Lawsuit has been filed.
It is possible that the outcome of the Lawsuit will have an impact on marimo REIT’s performance, but at present, it is notpossible to predict the amount of the impact.

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