(REIT) Financial Report for the Fiscal Period Ended June 2021
August 18, 2021
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:

September 14, 2021
September 28, 2021

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 June 2021 (from January 1, 2021, to June 30, 2021)(1) Operating Results(% figures are the rate of period-on-period increase (decrease))
Fiscal period
Operating revenue
Operating income
Ordinary income
Net income
million yen%
million yen%
million yen%
million yen%
Ended June 2021
1,313
2.5
570
(1.9)
481
0.3
480
0.3
Ended Dec. 2020
1,281
1.2
581
1.8
479
2.4
478
2.4
Fiscal period

Net income per unit

Return on equity

yen
3,145
3,136

Ended June 2021
Ended Dec. 2020

Ratio of ordinary income to Ratio of ordinary income tototal assets
operating revenue
%
%
%
3.2
1.5
36.6
3.2
1.5
37.4

(2) Dividends

Fiscal period

Ended June 2021
Ended Dec. 2020
(Note 1)

(Note 2)
(Note 3)

Dividends
per unit

Total
dividends(excluding
dividends
in excess ofearnings)(excluding
dividends
in excess ofearnings)

yen
3,146
3,136

million yen
480
478

Dividends
in excess ofearnings
per unit

Total
dividends
in excess ofearnings

yen
426
410

million yen
65
62

Dividends
per unit

Total
dividends(including
dividends
in excess ofearnings)(including
dividends
in excess ofearnings)

yen
3,572
3,546

million yen
545
541

Payout
ratio
%
100.0
100.0

Ratio ofdividends to
net assets
%
3.2
3.2

The breakdown of total dividends in excess of earnings for the fiscal period ended December 2020 is total dividends from allowance for temporary
difference adjustments of 1 million yen (7 yen per unit) and total dividends from distribution accompanying decrease in capital, etc. under tax law of
61 million yen (403 yen per unit).
The breakdown of total dividends in excess of earnings for the fiscal period ended June 2021 is total dividends from allowance for temporary difference
adjustments of 1 million yen (7 yen per unit) and total dividends from distribution accompanying decrease in capital, etc. under tax law of 63 million
yen (419 yen per unit).
The ratio of decreasing surplus, etc. attributable to distribution in excess of earnings (refund of investments in capital) is 0.005 for the fiscal period
ended December 2020 and 0.005 for the fiscal period ended June 2021.
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
Total assets
million yen
Ended June 2021
32,851
Ended Dec. 2020
32,652

Net assets
million yen
14,832
14,893Equity ratio
%
45.1
45.6

Net assets per unit
yen
97,147
97,547

(4) Cash Flows
Fiscal period

Ended June 2021
Ended Dec. 2020

Net cashprovided by (used in)operating activities
million yen
695820

Net cashprovided by (used in)investing activities
million yen
(554)
(50)

Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen
(256)
1,738
(548)
1,853

2. Operating Forecasts for the Fiscal Period Ending December 2021 (from July 1, 2021, to December 31, 2021) andOperating Forecasts for the Fiscal Period Ending June 2022 (from January 1, 2022, to June 30, 2022)(% figures are the rate of period-on-period increase (decrease))
Fiscal periodEnding Dec. 2021
Ending June 2022

Operating revenue Operating income Ordinary income
mn yen
1,281
1,293

%
(2.5)
0.9

mn yen
557
559

%
(2.3)
0.4

mn yen
445
447

%
(7.3)
0.4

Dividends per unit
Dividends per unit
Dividends(excluding dividends(including dividends
Net income
in excess ofin excess ofin excess ofearnings per unit
earnings)
earnings)
mn yen
%
yen
yen
yen
444
(7.4)
2,913
488
3,401
446
0.4
2,925
492
3,417

(Reference) Forecast net income per unit (Forecast net income ÷ Forecast number of investment units at end of period)
Fiscal period ending December 2021: 2,913 yen
Fiscal period ending June 2022: 2,925 yen(Note) The rate of period-on-period increase (decrease) for the fiscal period ending December 2021 shows comparison with the actual
figures for the fiscal period ended June 2021, and that for the fiscal period ending June 2022 shows comparison with theforecast figures for the fiscal period ending December 2021.
* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatements① Changes in accounting policies accompanying amendments to accounting standards, etc.: None
② Changes in accounting policies other than ①:None③ Changes in accounting estimates:
None④ Retrospective restatements:
None(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units issued and outstanding (including treasury investment units) at end of period
Fiscal period ended June 2021
152,680 units② Number of treasury investment units at end of period
Fiscal period ended June 2021

0 units

Fiscal period ended Dec. 2020
Fiscal period ended Dec. 2020

152,680units

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 December 2021 (from July 1, 2021, to December 31, 2021) and Fiscal Period Ending
June 2022 (from January 1, 2022, to June 30, 2022)” on page 7.

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021

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 ................................................................................................. 17-1-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021

1. Management Status(1) Management Status(Overview of the Fiscal Period under Review)① 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 Trusts 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 DirectorGeneral of the Kanto Local Finance Bureau). marimo REIT then implemented an issuance of new investment units throughpublic offering (88,500 units) with July 28, 2016, as the payment due date, and listed on the Real Estate Investment Trust
Securities Market of Tokyo Stock Exchange, Inc. on July 29, 2016 (securities code: 3470). These resulted in total number ofinvestment units issued and outstanding of 152,680 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.

② Investment Environment
In the fiscal period under review, the Japanese economy experienced negative growth with an annualized real GDP growthrate of -3.9% for the period from January to March 2021 (seasonally adjusted; second preliminary estimate). In comparison
with the period from July to September 2020, year-on-year domestic demand for the period from January to March 2021
worsened from +2.5% to -0.8%. This can be attributed to the slowdown of economic activities centering on domestic demand,
etc. as a result of the increased number of COVID-19 cases, reimplementation of the state of emergency in January 2021 andsuch.
Going forward, although vaccination for COVID-19 has started, it is assumed that more time will be needed for economic
activities to recover.
(Financial Market)
With the continuation of global monetary easing, the JBA 3-month Japanese Yen TIBOR remained at 0.07909% between
September 29, 2020, and March 29, 2021; and at 0.06909% between March 20, 2021, and June 28, 2021. After that, it has
been at 0.05909% since June 29, 2021. Because the outlook continues to be uncertain due to the impact of the COVID-19
pandemic, etc., the impact of volatility in financial markets should be carefully watched going forward.
(Real Estate Transaction Market)
According to “ARES Monthly Report (June 2021)” published by The Association for Real Estate Securitization, while actual
acquisition of real estate by J-REITs in the period from January to the end of May 2021 decreased by 89.8 billion yen year on
year (-13.3% year on year) to 584.5 billion yen in terms of total acquisition price, actual disposition increased by 9.0 billion
yen (+7.2% year on year) to 133.4 billion yen in terms of total disposition. The decrease in actual acquisition is likely to be
attributable to the decline in investment yield resulting from the continuation of an accommodative financing environment
and the rise in real estate prices while the increase in actual disposition is likely to be attributable to the circumstance thatallows for securement of gain on sale of real estate due to the rise in real estate prices. Going forward, attention should
continue to be paid to factors including the status of COVID-19 and interest rates.
(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 prefectures.

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(Retail Property Market)
According to “Current Survey of Commerce” by the Ministry of Economy, Trade and Industry, for the period from January to
March 2021, the rate of increase in sales value compared with the same period of the previous year for supermarkets
increased by 0.6% on average nationally. By area, the Chubu area was +2.1%, the Hokkaido area was +0.2%, and the Tohoku
area was +0.2%. As for drug stores, the rate of increase was -2.8% on average nationally, with particularly large decrease of 7.3% for the Hokkaido area, -5.6% for the Kyushu area, and -5.0% for the Kinki area, showing a downward trend across thenation. This reassured solid demand for supermarkets regardless of the impact of COVID-19. On the other hand, drug storesassumed to have had a temporary decrease in sales because of the backlash from the special demand seen last year formasks, disinfectants, and other items for preventing COVID-19 infection. 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 May 2021)” by Japan National Tourism Organization, the number ofinternational visitors to Japan in the period from January to May 2021 decreased significantly to 80,000 or -97.8% year on
year (including estimates). As a result, according to “Overnight Travel Statistics Survey (April 2021/second preliminary
estimates, May 2021/first preliminary estimates)” by Japan Tourism Agency of the Ministry of Land, Infrastructure, Transport
and Tourism, the total number of overnight Japanese guests for April 2021 was 22.22 million (+110.4 year on year) and thatof overnight international guests was 0.22 million (-9.3% year on year), indicating the continuation of the situation in whichaccommodation demand has not recovered for international guests. Guest room occupancy rate by type of accommodation
facility has been recovering to 42.8% (+18.1% year on year) for business hotels, 29.4% (+17.4% year on year) for city hotels,and 22.4% (+16.4% year on year) for resort hotels. Close attention should be paid going forward as well since the numbersof Japanese and international travelers are believed to fluctuate depending on the progress of the COVID-19 vaccination
rollout.
(Office Leasing Market)
According to “Japan Office Market View Q1 2021” by CBRE K.K., in the first quarter of 2021, the vacancy rate for major
regional cities appeared to be on an increasing trend in general year on year, with 0.8% (+0.4 pts year on year) for Sapporo
City, 1.7% (+1.3 pts year on year) for Osaka City, 1.9% (+1.3 pts year on year) for Nagoya City, 2.2% (+1.8 pts year on year) for
Fukuoka City, and 3.2% (+1.4 pts year on year) for Hiroshima City. However, assumed contract rents remained flat, with 16,260
yen/tsubo (-1.2% year on year) for Fukuoka City and 11,890 yen/tsubo (+0.2% year on year) for Hiroshima City. However,
because demand for offices is expected to change with the prevalence of telework in response to the yet-to-end COVID-19
pandemic, close attention should be paid to occupancy rates, etc.
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 integrated promotion of property management operations of the Asset Manager and each of the basesof the property management company, Marimo Co., Ltd. (hereinafter, “Marimo”), and efforts to realize stable operation ofproperties under management and reduce downtime were made. In addition, as part of measures for internal growth,
installation of rooftop antenna was implemented at ArtizA Hakata PREMIER, thereby achieving an increase in rent revenue,
etc. In terms of cost reduction, expenses were reduced through partial review of the property management contract andbuilding maintenance contract, replacement of toilets to those with water-saving function at MRR Delta Building, etc. In
addition, management efforts to enhance functionality and convenience as well as resident satisfaction were made, such as
introduction of free Wi-Fi in rooms at ArtizA Higashi-Betsuin. Such efforts resulted in an occupancy rate of 98.0% and periodaverage occupancy rate of 97.5% for marimo REIT’s portfolio assets as of the end of the fiscal period under review (32properties; total acquisition price (Note): 30,450 million yen).
(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.

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marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
④ Financing Status
In the fiscal period under review, long-term loans of 4,840 million yen in total were borrowed in order to repay 4,840 million
yen of long-term loans borrowed on January 23, 2018 (Tranche 3-A), which was due for repayment on February 1, 2021.
Furthermore, long-term loans of 300 million yen were borrowed on February 26, 2021, to partially fund asset acquisition andincidental expenses. Other than these, of long-term loans borrowed on August 1, 2016 (Tranche D: loan balance of 1,372
million yen), funds on hand were used to execute contractual repayments of 7 million yen on February 1, 2021, and 7 million
yen on May 6, 2021. As a result, as at the end of the fiscal period under review (end of June 2021), the balance of loans
outstanding was 16,167 million yen and the ratio of interest-bearing liabilities to total assets (hereinafter, “LTV ratio”) was
49.2%.
(Note) As described in “(Outlook for the Next Fiscal Period) ② Significant Subsequent Events (Reference Information) (A) Borrowing of Funds” below,
marimo REIT borrowed long-term loans of 3,800 million yen in total on August 2, 2021, to allocate the funds for repayment of long-termloans of 3,500 million yen due for repayment on August 2, 2021 (Tranche C) and for early repayment of long-term loans of 300 million yen.
In addition, on August 2, 2021, marimo REIT executed repayment of 7 million yen out of the abovementioned long-term loans (Tranche D)borrowed on August 1, 2016. As a result of these, loan balance of marimo REIT as of the date of this document stands at 16,160 million yen.

⑤ Overview of Business Performance and Distribution
As a result of the above, business performance for the fiscal period under review was operating revenue of 1,313 million yen,operating income of 570 million yen, ordinary income of 481 million yen and net income of 480 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 3,146 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
65 million yen, which is the amount roughly equivalent to 26% 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 426 yen. Furthermore, included in thedividends 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 7 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 10th fiscal period (fiscal period ended June 2021) was 36,506 million yen, which
exceeds the sum total of total book value of real estate, etc. (29,538 million yen) and the total amount of reserve for the planned amountof construction of repair and renewal expenses (capital expenditures) planned to be implemented in the 11th fiscal period (262 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 29,534
million yen and leasehold interest posted to intangible assets of 3 million yen.
(Note 3) For the 32 properties held by marimo REIT as of the end of the fiscal period under review, the 6-month average amount of the sum total
amount of the estimated amount of emergency repair expenses, estimated amount of short-term repair expenses and estimated amountof long-term repair expenses (each falling under the category of renewal expenses (capital expenditures)) stated in the engineering report
is 53 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 53 million yen for the fiscal period ending December 2021 and 53 million yen for the fiscal period ending
June 2022. Therefore, even if an amount equivalent to the funds expected as reserve for the purpose of future capital expenditures formaintaining the function of buildings, etc. or working capital, etc. and certain funds in preparation for investment that would serve toenhance the income-producing potential of the portfolio are retained from the cash and deposits on hand in an amount equivalent todepreciation on the last day of each accounting period, there is still expected to be residual free cash flows. Accordingly, the decision wasmade to execute the abovementioned distribution in excess of earnings as part of cash management under the judgment that it is within
the scope that sound financial stability will be maintained.

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marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
(Outlook for the Next Fiscal Period)① 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, hardware stores and discountstores selling daily necessities, and conducting activities that lead to future external growth, while pursuing close
collaboration with Marimo, which has six 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 1) business, etc., based on the sponsor pipeline and support agreement. Along with this, thepolicy is to keep fully utilizing the abundant property network, property information sourcing strengths, etc. of Marimo andthe eight supporting companies (San ju San Bank, Ltd. (Note 2), The Michinoku Bank, Ltd., The Tokyo Star Bank, Limited, The
Chugoku Bank, Limited, Kansai Mirai Bank, Ltd., The Hiroshima Bank, Ltd., The Ashikaga Bank, Ltd., and ReBITA Inc.) and also
property information obtained based on the network accumulated in the real estate industry by the officers and employeesof the Asset Manager and property information obtained based on maintaining favorable relationships with the tenants ofportfolio 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 1) Urban redevelopment refers to redevelopment to promote reasonable and sound high-level use of land in urban areas and renewal ofurban functions.
(Note 2) The Daisan Bank, Ltd. and The Mie Bank, Ltd. conducted an absorption-type merger on May 1, 2021, with the former being the surviving
company and latter being the disappearing company, and the name was changed to San ju San Bank, Ltd. on the same day. The same shallapply hereinafter.

(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 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 of income-producing
potential and thereby aim for maximization of unitholder value over the medium to long term.
Concerning the impact of the COVID-19 pandemic, it is recognized that vigilance against future impact is required due to thestate of emergency being declared in Tokyo in July 2021 for the fourth time.
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, reduction of utility expenses
by switching the electric power utility, environmental consideration/initiatives and cost reduction by switching lighting incommon areas to LED, and reduction of offering expenses and other various expenses.
(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 staggering of debt maturities, lengthening of borrowing periods and loweringof borrowing interest rates in mind, and shall make efforts to maintain a bank formation comprising several financial
institutions, including city banks, trust banks, and regional financial institutions that fully understand the characteristics ofeach 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.

-5-marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
② Significant Subsequent Events
Not applicable.
(Reference Information)(A) Borrowing of Funds
marimo REIT borrowed long-term loans of 3,800 million yen in total on August 2, 2021, to allocate the funds for repaymentof long-term loans of 3,500 million yen due for repayment on the same day (Tranche C) and for early repayment of long-termloans of 300 million yen. Details are as follows.
Lender

Tranche7

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

Loan amount(million yen)Interest rate
(Note 2)

Drawdown
date

Maturity Repayment
date
method3,800

0.86186％

August 2,
2021

August 3, Lump-sum Unsecured
2026
repayment
and(Note 3) at maturity unguaranteed

Remarks(Note 1) The loan syndicate consists of Sumitomo Mitsui Banking Corporation, The Hiroshima Bank, Ltd., The Bank of Fukuoka, Ltd., San ju San Bank,
Ltd., Shinsei Bank, Limited, Chugoku Bank, Ltd., and The Nishi-Nippon City Bank, Ltd.
(Note 2) Not including borrowing expenses, etc. payable to the lender.
(Note 3) 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.

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marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending December 2021 (from July 1, 2021, to December 31, 2021)
and Fiscal Period Ending June 2022 (from January 1, 2022, to June 30, 2022)
Item

Assumptions

Accounting
period● Fiscal period ending December 2021 (11th fiscal period) (from July 1, 2021, to December 31, 2021) (184 days)● Fiscal period ending June 2022 (12th fiscal period) (from January 1, 2022, to June 30, 2022) (181 days)● The assumption is that marimo REIT will continue to hold the real estate trust beneficiary rights to 32 properties
held as of the date of this document and that there will be no acquisition of new properties other than thosethrough to the end of the fiscal period ending June 2022.
● 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 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 that there will be no delinquent or unpaid rent by tenants.
● Some degree of decrease in operating revenue from leasing, etc. due to the impact of COVID-19 is taken into
account when calculation is made.
● 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 sales of real estate properties) is expected to be 742 million yen for the fiscal period ending
December 2021 and 742 million yen for the fiscal period ending June 2022.
● In general, fixed asset tax, city planning tax, etc. are calculated on a pro-rata basis and reimbursed at the time ofacquisition 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. forfiscal 2022 are expensed starting from the fiscal period ending June 2022 for the real estate trust beneficiaryright to 1 property acquired on February 26, 2021 (hereinafter, the “Newly Acquired Asset”). Furthermore, thetotal amount of fixed asset tax, city planning tax, etc. to be expensed is expected to be 99 million yen for the
fiscal period ending December 2021 and 100 million yen for the fiscal period ending June 2022. Of these, theamount of the effect of the acquisition of the Newly Acquired Asset is expected to be 1 million yen for the fiscal
period ending December 2021 and 1 million yen for the fiscal period ending June 2022.
● Repair expenses for buildings based on medium- to long-term repair plans formulated by the Asset Manager are
expected to be 43 million yen for the fiscal period ending December 2021 and 41 million yen for the fiscal period
ending June 2022. Furthermore, concerning emergency repair expenses possibly arising from unforeseeable
factors causing building damage, etc., the amount generally varies materially from fiscal year to fiscal year anddoes 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 249 million yen for the fiscal period ending December
2021 and 251 million yen for the fiscal period ending June 2022.
● Interest expenses and other borrowing-related expenses are expected to be 106 million yen for the fiscal period
ending December 2021 and 107 million yen for the fiscal period ending June 2022.
● Amortization of investment unit issuance expenses is expected to be 4 million yen for the fiscal period ending
December 2021 and 4 million yen for the fiscal period ending June 2022.
● The assumption is that internal reserves from a portion of depreciation will be used as the source of funds torepay principal of 15 million yen every fiscal period.
● The assumption is that total interest-bearing liabilities will be 16,152 million yen at the end of the fiscal period
ending December 2021 and 16,137 million yen at the end of the fiscal period ending June 2022.
● The assumption is the total number of investment units issued and outstanding as of the date of this documentof 152,680 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 June 2022.
● 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.

Assets undermanagement

Operatingrevenue

OperatingexpensesNon-operating
expenses

Loans

Investment
units
Dividends
per unit(excluding
dividends
in excess ofearnings)-7-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
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 purposeof tax reduction.
● As of the date of this document, marimo REIT deems there to be no specific concerns of substantial deteriorationin the external economic environment, real estate market conditions and financial status of marimo REIT.
● For the fiscal period ending December 2021 and fiscal period ending June 2022, 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 a statethat 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 December 2021 and fiscal period ending June 2022. As such, forthe fiscal period ending December 2021, total dividends in excess of earnings is expected to be 74 million yen,of which total dividends of allowance for temporary difference adjustments is 1 million yen and total otherdividends in excess of earnings is 73 million yen, and for the fiscal period ending June 2022, total dividends inexcess of earnings is expected to be 75 million yen, of which total dividends of allowance for temporary
difference adjustments is 1 million yen and other distribution in excess of earnings is 74 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 end of
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 11th fiscal period (fiscal period
ending December 2021) and 12th fiscal period (fiscal period ending June 2022) regardless of the forecast above in theevent that such conditions are not met.
In addition, concerning the fiscal period ending December 2021 and fiscal period ending June 2022, 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 December 2021 and fiscal period
ending June 2022 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 December 2021 andfiscal period ending June 2022. 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 March 25, 2021).

-8-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021

2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
9th fiscal period(As of Dec. 31, 2020)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
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
SoftwareTotal 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-

10th fiscal period(As of June 30, 2021)

1,153,912
2,116,755
9,634
52,166
3,332,468

1,018,905
2,089,469
13,94369,291
3,191,610

12,958,988(1,719,706)
11,239,282
324,513(51,384)
273,128
118,437(24,683)
93,75438,751(10,247)
28,503
17,584,254
1,286
29,220,208

13,303,100(1,952,765)
11,350,335
328,015(58,389)
269,625
118,437(27,607)
90,83047,834(13,639)
34,195
17,789,771
1,286
29,536,044

3,585
588
4,174

3,458
－
3,458

53,61817
10,00013,57877,21329,301,596

83,00714
10,00013,578106,599
29,646,103

18,663
18,66332,652,728

13,997
13,99732,851,710

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021

(Unit: thousand yen)
9th fiscal period(As of Dec. 31, 2020)
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 -

10th fiscal period(As of June 30, 2021)

60,2228,370,000
161,601957
42,465200,775
48,121
4,057
8,888,200

98,5913,830,000
173,895
896
10,980203,53145,021
4,160
4,367,075

7,512,500
1,340,044
18,320588,870,922
17,759,123

12,337,500
1,296,279
18,33978
13,652,197
18,019,273

14,869,979

14,869,979(8,793)(446,489)(455,282)
14,414,696(9,862)(508,019)(517,881)
14,352,097

478,907478,907
14,893,604
14,893,604
32,652,728

480,339
480,339
14,832,437
14,832,437
32,851,710

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
(2) Statement of Income(Unit: thousand yen)
9th fiscal period
From: July 1, 2020
To: Dec. 31, 2020
Operating revenue
Lease business revenue
Other lease business revenue
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 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
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 -

10th fiscal period
From: Jan. 1, 2021
To: June 30, 2021

1,226,591
54,664
1,281,256

1,229,035
84,881
1,313,916

513,336
120,532
1,630
13,8842,400
14,23433,783699,801
581,454542,030
120,164
1,635
14,056
2,400
17,63445,335743,256
570,660

14
475
144
2,700
3,335

15
193
－
13,607
13,81662,59932,102
10,295
104,996479,793479,793960(0)
959
478,83473
478,907

62,34436,328
4,665
103,338
481,137
481,137898
2
901
480,236103
480,339

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
(3) Statement of Unitholders’ Equity
9th fiscal period (from July 1, 2020, to December 31, 2020)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of current period

Allowance fortemporarydifference
adjustments

14,869,979(7,724)

Other
deduction fromunitholders’capitalTotal
deduction fromunitholders’capitalUnitholders’capital, net(381,753)(389,477)

14,480,501(1,068)(1,068)(64,736)(64,736)(64,736)

Changes of items during period
Dividends of surplus
Distribution in excess of earnings
attributable to allowance fortemporary difference adjustments
Other distribution in excess ofearnings(1,068)Net income
Total changes of items during period
Balance at end of current period－(1,068)(64,736)(65,805)(65,805)

14,869,979(8,793)(446,489)(455,282)

14,414,696(Unit: thousand yen)
Unitholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of current period

Total
surplusTotal
unitholders’equityTotal
net assets

467,732

467,732

14,948,234

14,948,234(467,658)(467,658)(467,658)(467,658)(1,068)(1,068)(64,736)(64,736)

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

478,834

478,834

478,834

478,834

Total changes of items during period

11,175

11,175(54,629)(54,629)

Balance at end of current period

478,907478,907

14,893,604

14,893,604- 12 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
10th fiscal period (from January 1, 2021, to June 30, 2021)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of current period

Allowance fortemporarydifference
adjustments

14,869,979(8,793)Other
deduction fromunitholders’capitalTotal
deduction fromunitholders’capitalUnitholders’capital, net(446,489)(455,282)

14,414,696(1,068)(1,068)(61,530)(61,530)(61,530)

Changes of items during period
Dividends of surplus
Distribution in excess of earnings
attributable to allowance fortemporary difference adjustments
Other distribution in excess ofearnings(1,068)Net income
Total changes of items during period
Balance at end of current period－(1,068)(61,530)(62,598)(62,598)

14,869,979(9,862)(508,019)(517,881)

14,352,097(Unit: thousand yen)
Unitholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of current period

Total
surplusTotal
unitholders’equityTotal
net assets

478,907478,907

14,893,604

14,893,604(478,804)(478,804)(478,804)(478,804)(1,068)(1,068)(61,530)(61,530)

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
Total changes of items during period
Balance at end of current period

480,236

480,236

480,236

480,236

1,431

1,431

(61,167)(61,167)

480,339

480,339

14,832,437

14,832,437- 13 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
(4) Statement of Distribution of Cash
9th fiscal period
From: July 1, 2020
To: Dec. 31, 2020
I.

Unappropriated retained earnings

10th fiscal period
From: Jan. 1, 2021
To: June 30, 2021

478,907,984 yen

480,339,604 yen

62,598,800 yen

65,041,680 yen

1,068,760 yen
61,530,040 yen

1,068,760 yen
63,972,920 yen

541,403,280 yen

545,372,960 yen[3,546 yen]

[3,572 yen]

478,804,480 yen[3,136 yen]

480,331,280 yen[3,146 yen]

Allowance for temporary difference adjustments[Dividends in excess of earnings per unit

1,068,760 yen

1,068,760 yen(attributable toallowance for temporary difference adjustments)][7 yen][7 yen]Other dividends in excess of earnings[Dividends in excess of earnings per unit

61,530,040 yen

63,972,920 yen(attributable toother dividends in excess of earnings)][403 yen][419 yen]

103,504 yen

8,324 yenIn 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 inexcess of the amount equivalent to
90% of the amount of marimo REIT’s
earnings available for distribution
provided in Article 67-15, Paragraph 1of the Act on Special Measures
Concerning Taxation.
Based on such policy, the decision wasmade to distribute 478,804,480 yen,which is the largest integral multipleof the total number of investment
units issued and outstanding at end of
period in an amount not in excess ofunappropriated retained earnings, as
dividends of earnings.
Furthermore, in accordance with thepolicy on distribution of cash provided
in Article 25, Paragraph 2 of the
Articles of Incorporation, marimo REIT
shall execute distribution in excess ofearnings in the fiscal period underreview as part of cash management.
Based on this, the decision was madeto distribute 62,598,800 yen, which isthe amount roughly equivalent to 26%
of depreciation for the fiscal period
under review, as dividends in excess ofearnings. This resulted in dividends inexcess of earnings per unit of 410 yen.
Furthermore, included in thedividends in excess of earnings is
distributionofallowance
for
temporary difference adjustments of
1,068,760 yen, resulting in allowancefor temporary difference adjustments
per unit of 7 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 inexcess of the amount equivalent to
90% of the amount of marimo REIT’s
earnings available for distribution
provided in Article 67-15, Paragraph 1of the Act on Special Measures
Concerning Taxation.
Based on such policy, the decision wasmade to distribute 480,331,280 yen,which is the largest integral multipleof the total number of investment
units issued and outstanding at end of
period in an amount not in excess ofunappropriated retained earnings, as
dividends of earnings.
Furthermore, in accordance with thepolicy on distribution of cash provided
in Article 25, Paragraph 2 of the
Articles of Incorporation, marimo REIT
shall execute distribution in excess ofearnings in the fiscal period underreview as part of cash management.
Based on this, the decision was madeto distribute 65,041,680 yen, which isthe amount roughly equivalent to 26%
of depreciation for the fiscal period
under review, as dividends in excess ofearnings. This resulted in dividends inexcess of earnings per unit of 426 yen.
Furthermore, included in thedividends in excess of earnings is
distributionofallowance
for
temporary difference adjustments of
1,068,760 yen, resulting in allowancefor temporary difference adjustments
per unit of 7 yen.

II. Addition of dividends in excess of earnings
Of which,
Allowance for temporary difference adjustments
Other deduction from unitholders’ capital
III. Dividends[Dividends per unit]
Of which,
Dividends of earnings[Dividends of earnings per unit]

IV. Retained earnings carried forward
Method of calculation of dividends- 14 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
(5) Statement of Cash Flows(Unit: thousand yen)
9th fiscal period
From: July 1, 2020
To: Dec. 31, 2020
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 (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 for lease and guarantee deposits in trust
Payments into restricted deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
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 -

10th fiscal period
From: Jan. 1, 2021
To: June 30, 2021

479,793
243,168
10,295(14)
62,5991,401
59,542
42,4652,148(39,028)
13,914
194
9,993(2,919)883,555
14(62,478)(946)
820,144

481,137
247,1144,665(15)62,344(4,309)－(31,485)(17,125)
31,013
9,946
2,755(29,389)86
756,740
15(59,997)(960)
695,798(50,091)(78)(0)(50,169)(554,860)－(0)(554,860)－(15,000)(533,282)(548,282)
221,692
1,631,808
1,853,501

5,140,000(4,855,000)(541,366)(256,366)(115,427)
1,853,501
1,738,073

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
(6) Notes on the Going Concern Assumption
Not applicable.

- 16 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
(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
2–64 years
Structures in trust
5–58 years
Machinery and equipment in trust
10–27 years
Tools, furniture and fixtures in trust
3–15 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
Accounting for fixed asset tax, etc.
revenue and expense
For fixed asset tax, city planning tax, depreciable asset tax, etc. (hereinafter, “fixed asset
recognition
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 not applicable for the 9th fiscal period
and 3,589 thousand yen for the 10th 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
the basis for preparation
Concerning trust beneficiary rights that have real estate held, etc. as trust assets, allof the financial
accounts of assets and liabilities within trust assets and all accounts of revenue andstatements
expenses from the trust assets are recognized in the relevant account item of thebalance 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.
① Cash and deposits in trust② Buildings in trust; Structures in trust; Machinery and equipment in trust;Tools, furniture and fixtures in trust; Land in trust; Construction in progress in trust③ Leasehold rights in trust④ Lease and guarantee deposits in trust⑤ Current portion of tenant leasehold and security deposits in trust⑥ Tenant leasehold and security deposits in trust(2) Accounting for consumption tax, etc.
The accounting for consumption tax and local consumption tax is that the taxes are
excluded from transaction amounts. Furthermore, non-deductible consumption tax onacquisition of assets is included in the cost of acquisition of each asset.

- 17 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2021
[Additional Information][Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments]
9th fiscal period (from July 1, 2020, to December 31, 2020)
1. Reason, related assets, etc. and amount of provision
The posting of MRR Omuta’s amortization of leasehold interest for leasehold interest 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 1,068 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.

10th fiscal period (from January 1, 2021, to June 30, 2021)
1. Reason, related assets, etc. and amount of provision
The posting of MRR Omuta’s amortization of leasehold interest for leasehold interest 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 1,068 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.

- 18 -