(REIT) Financial Report for the Fiscal Period Ended December 2021
February 18, 2022
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 16, 2022
March 24, 2022

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 2021 (from July 1, 2021, to December 31, 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 Dec. 2021
1,402
6.8
654
14.6
551
14.6
550
14.6
Ended June 2021
1,313
2.5
570
(1.9)
481
0.3
480
0.3
Fiscal period

Net income per unit

Return on equity

yen
3,604
3,145

Ended Dec. 2021
Ended June 2021

Ratio of ordinary income to Ratio of ordinary income tototal assets
operating revenue
%
%
%
3.7
1.7
39.3
3.2
1.5
36.6

(2) Dividends

Fiscal period

Dividends
per unit

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

yen
3,604
3,146

million yen
550
480

Ended Dec. 2021
Ended June 2021
(Note 1)

(Note 2)
(Note 3)

Dividends
in excess ofearnings
per unit

Total
dividends
in excess ofearnings

yen
320
426

million yen
48
65

Dividends
per unit

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

yen
3,924
3,572

million yen
599
545

Payout
ratio
%
100.0
100.0

Ratio ofdividends to
net assets
%
3.7
3.2

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 breakdown of total dividends in excess of earnings for the fiscal period ended December 2021 is total dividends from allowance for temporary
difference adjustments of 1 million yen (8 yen per unit) and total dividends from distribution accompanying decrease in capital, etc. under tax law of
47 million yen (312 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 June 2021 and 0.004 for the fiscal period ended December 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
Ended Dec. 2021
Ended June 2021

Total assets
million yen
33,00132,851

Net assets
million yen
14,837
14,832

Net cashprovided by (used in)operating activities
million yen
982
695

Net cashprovided by (used in)investing activities
million yen
(140)
(554)

Equity ratio
%
45.0
45.1

Net assets per unit
yen
97,17997,147(4) Cash Flows
Fiscal period

Ended Dec. 2021
Ended June 2021

Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen
(560)
2,020
(256)
1,738

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

Operating revenue Operating income Ordinary income
mn yen
1,765
1,700

%
25.9
(3.7)

mn yen
825
750

%
26.2
(9.0)

mn yen
675
597

%
22.5
(11.5)

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
674
22.6
3,499
316
3,815
596 (11.5)
3,095
434
3,529

(Reference) Forecast net income per unit (Forecast net income ÷ Forecast number of investment units at end of period)
Fiscal period ending June 2022: 3,499 yen
Fiscal period ending December 2022: 3,095 yen(Note) The rate of period-on-period increase (decrease) for the fiscal period ending June 2022 shows comparison with the actual
figures for the fiscal period ended December 2021, and that for the fiscal period ending December 2022 shows comparison
with the forecast figures for the fiscal period ending June 2022.
* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatements① Changes in accounting policies accompanying amendments to accounting standards, etc.: Yes② 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 Dec. 2021
152,680 units② Number of treasury investment units at end of period
Fiscal period ended Dec. 2021

0 units

Fiscal period ended June 2021
Fiscal period ended June 2021

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 June 2022 (from January 1, 2022, to June 30, 2022) and Fiscal Period Ending
December 2022 (from July 1, 2022, to December 31, 2022)” on page 9.

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

Table of Contents
1. Management Status .......................................................................................................................................................................... 2(1) Management Status ................................................................................................................................................................... 2(2) Investment Risks ...................................................................................................................................................................... 10
2. Financial Statements ....................................................................................................................................................................... 11(1) Balance Sheet .......................................................................................................................................................................... 11(2) Statement of Income ............................................................................................................................................................... 13(3) Statement of Unitholders’ Equity ............................................................................................................................................. 14(4) Statement of Distribution of Cash ............................................................................................................................................ 16(5) Statement of Cash Flows .......................................................................................................................................................... 17(6) Notes on the Going Concern Assumption ................................................................................................................................ 18(7) Notes on Matters Concerning Significant Accounting Policies ................................................................................................. 19(8) Notes on Changes in Accounting Policies ................................................................................................................................. 20-1-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 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 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 1) 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 was 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 2)(Note 1) Amounts are rounded down to the nearest million yen if such applies. Unless otherwise stated, the same shall apply hereinafter.
(Note 2) marimo REIT issued new investment units on January 18, 2022, and February 15, 2022. For details, please refer to “ (Outlook for the Next
Fiscal Period) ② Significant Subsequent Events (A) Issuance of New Investment Units” below.

② Investment Environment
In the fiscal period under review, the Japanese economy experienced negative growth with an annualized real GDP growthrate of -3.6% for the period from July to September 2021 (seasonally adjusted; second preliminary estimate). In comparison
with the period from January to March 2021, year-on-year private demand for the period from July to September 2021
worsened from -0.7% to -1.4%. This can be attributed to the slowdown of economic activities centering on domestic demand,
etc. as a result of the uncertain outlook for the settlement of the COVID-19 pandemic.
Going forward, as the number of COVID-19 cases is increasing again from January 2022 and the time when the pandemic willsubside is unknown, it is assumed that more time will be required for the recovery of economic activities.
(Financial Market)
With the continuation of global monetary easing, the JBA 3-month Japanese Yen TIBOR remained at 0.05909% between June29, 2021, and July 29, 2021; and at 0.05727% between July 30, 2021, and December 28, 2021. After that, it has been at
0.06727% since December 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 (December 2021)” 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 2021 increased by 196.1 billion yen
year on year (+16.4% year on year) to 1.3914 trillion yen in terms of total acquisition price, and actual disposition increasedby 125.5 billion yen year on year (+57.0% year on year) to 345.7 billion yen in terms of total disposition. The increase in actual
acquisition is likely to be attributable to the circumstance that allows for securement of gain on sale of real estate resulting
from the continuation of an accommodative financing environment and 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.

-2-marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(Retail Property Market)
According to “Current Survey of Commerce” by the Ministry of Economy, Trade and Industry, for the period from July to
September 2021, the rate of increase in sales value compared with the same period of the previous year for supermarkets
decreased by 0.4% on average nationally. By area, the Shikoku area was -2.5%, the Kyushu area was -2.2%, the Chugoku area
was -2.1%, and the Chubu area was -1.2%. As for drug stores, the rate of increase was +1.9% on average nationally, withparticularly large increase of +6.6% for the Tohoku area, +4.2% for the Chubu area, and +3.0% for the Shikoku area, showing
an upward trend across the nation. For supermarkets, it is believed that sales decreased as a result of the decline in
consumption activities due to the prolonged COVID-19 pandemic. On the other hand, drug stores are assumed to have been
continuously securing sales of sanitation-related products, etc. due to the prolonged COVID-19 pandemic. The sales value ofsupermarkets 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 2021)” by Japan National Tourism Organization, the numberof international visitors to Japan in the period from January to November 2021 decreased significantly to 230,000 or -94.2%
year on year (including estimates). As a result, according to “Overnight Travel Statistics Survey (October 2021/second
preliminary estimates, November 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 October 2021 was 31.27 million (9.3% year on year) and that of overnight international guests was 0.3 million (-1.1% year on year), indicating the continuationof the situation in which accommodation demand has not recovered for international guests. Guest room occupancy rate bytype of accommodation facility continues to decrease to 51.7% (+1.8% year on year) for business hotels, 41.3% (-1.8% year
on year) for city hotels, and 36.2% (-7.1% year on year) for resort hotels. Close attention should be paid going forward as wellsince the numbers of Japanese and international travelers are likely to fluctuate depending on the COVID-19 pandemic.
(Office Leasing Market)
According to “Japan Office Market View Q3 2021” by CBRE K.K., in the third quarter of 2021, the vacancy rate for major
regional cities appeared to be on an increasing trend year on year, with 3.8% (+2.4 pts year on year) for Nagoya City, 2.7%(+1.6 pts year on year) for Osaka City, 1.6% (+0.9 pts year on year) for Sapporo City, 3.1% (+1.2 pts year on year) for Hiroshima
City, and 3.0% (+1.8 pts year on year) for Fukuoka City. On the other hand, assumed contract rents are on a decreasing trend,with 16,200 yen/tsubo (-1.6% year on year) for Fukuoka City and 11,890 yen/tsubo (-0.3% year on year) for Hiroshima City.
Because demand for offices is expected to change with the re-spread of the COVID-19 pandemic and the prevalence of
telework, 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, interms of cost reduction, expenses were reduced through partial review of the building maintenance contract and review ofelectricity company at ArtizA Matsumoto. Moreover, management efforts to enhance functionality and convenience as well
as resident satisfaction were made, such as implementation of large-scale repair work at ArtizA Sendai Kakyoin. Such efforts
resulted in an occupancy rate of 97.7% and period-average occupancy rate of 97.7% for marimo REIT’s portfolio assets as ofthe end of the fiscal period under review (32 properties; total acquisition price (Note): 30,200 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 December 2021
④ Financing Status
In the fiscal period under review, long-term loans of 3,800 million yen in total were borrowed on August 2, 2021, in order to
conduct early repayment of 3,500 million yen of long-term loans borrowed on August 1, 2016 (Tranche C), which was due forrepayment on August 2, 2021, and 300 million yen of long-term loans borrowed on February 26, 2021 . Other than these, of
long-term loans borrowed on August 1, 2016 (Tranche D: loan balance of 1,357 million yen), funds on hand were used to
execute contractual repayments of 7 million yen on August 2, 2021, and 7 million yen on November 1, 2021. As a result, asat the end of the fiscal period under review (end of December 2021), the balance of loans outstanding was 16,152 million
yen and the ratio of interest-bearing liabilities to total assets (hereinafter, “LTV ratio”) was 48.9%.
(Note)As described in “(Outlook for the Next Fiscal Period) ②Significant Subsequent Events (B) Borrowing of Funds” below, marimo REIT borrowed
long-term loans of 1,200 million yen and 3,770 million yen and short-term loans of 230 million yen on January 19, 2022, to partially fundasset acquisition and incidental expenses. In addition, on February 1, 2022, marimo REIT executed repayment of 7 million yen out of theabovementioned long-term loans (Tranche D) borrowed on August 1, 2016. As a result of these, loan balance of marimo REIT as of the dateof this document stands at 21,345 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 1,402 million yen,operating income of 654million yen, ordinary income of 551 million yen and net income of 550 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 3,604 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 distribute48 million yen, which is the amount roughly equivalent to 20% 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 320 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 8 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 11th fiscal period (fiscal period ended December 2021) was 36,261 million yen,which exceeds the sum total of total book value of real estate, etc. (29,389 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 12th fiscal period (190million 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 29,385
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 79 million yen for the fiscal period ending June 2022 and 79 million yen for the fiscal period ending
December 2022. 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 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 December 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, 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 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) 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 theeight supporting companies (San ju San Bank, Ltd., 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 employees of theAsset Manager and property information obtained based on maintaining favorable relationships with the tenants 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 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 theimplementation of semi-emergency COVID-19 measures in Tokyo in January 2022.
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 December 2021
② Significant Subsequent Events(A) Issuance of New Investment Units
marimo REIT resolved the issuance of new investment units as follows at meetings of the Board of Directors held on January
4, 2022, and January 12, 2022, completed payment on January 18, 2022, regarding the issuance of new investment units
through public offering, and completed payment for the 1,388 investment units on February 15, 2022 regarding the issuanceof new investment units through third-party allotment.
As a result, unitholders’ capital was 19,725 million yen and the total number of investment units issued and outstanding was
192,226 units.
(Issuance of new investment units through public offering) (primary offering)Number of new investment units issued and outstanding
Issue price:

38,158 units
127,627 yen per unit

Total issue price:
Issue amount (paid-in amount)

4,869,991,066 yen
122,783 yen per unit

Total issue amount (paid-in amount)
Payment date

4,685,153,714 yen
January 18, 2022

(Issuance of new investment units through third-party allotment) (the “Third-Party Allotment”)
Number of new investment units issued and outstanding
Issue amount (paid-in amount)
Total issue amount (paid-in amount)
Payment date

1,908 units (upper limit)
122,783 yen per unit
234,269,964 yen (upper limit)
February 15, 2022

Allottee
SMBC Nikko Securities Inc.
(Note) The number of new investment units for which payment has been completed is 1,388 units, and the paid-in
amount is 170,422,804 yen.
(Use of funds)
The proceeds from the primary offering (4,685,153,714 yen) were allocated to part of the acquisition funds andacquisition-related expenses of the acquired assets described in “(C) Acquisition of Assets” below.
The proceeds from the issuance of new investment units through the Third-Party Allotment (170,422,804 yen) will beheld as cash on hand to be allocated to acquisition of specified assets or repayment of borrowings in the future.
(B) Borrowing of Funds
marimo REIT borrowed 5,200 million yen in total from a loan syndicate with Sumitomo Mitsui Banking Corporation asarranger on January 19, 2022, to allocate the funds to part of the acquisition funds and incidental expenses of the 8 properties
described in “(C) Acquisition of Assets” below. Details are as follows.
Lender

Tranche8-A

Tranche8-B

Tranche
8-C

Loan syndicate with
Sumitomo Mitsui
Banking Corporationas arranger(Note 1)
Loan syndicate with
Sumitomo Mitsui
Banking Corporationas arranger(Note 2)
Sumitomo Mitsui
Banking Corporation

Loan amount(million yen)Interest rate
Drawdown Maturity Repayment
Remarks(Note 3)date
date
methodBase rate (JBA 3month Japanese Yen
January 19, Lump-sum Unsecured
January 19,
1,200
TIBOR) (Note 4)
2027
repayment
and2022+0.800%(Note 5) at maturity unguaranteed(floating rate)
Base rate (JBA 3month Japanese Yen
January 19, Lump-sum Unsecured
January 19,
3,770
TIBOR) (Note 4)
2028
repayment
and2022+0.900%(Note 5) at maturity unguaranteed(floating rate)
Base rate (JBA 1month Japanese Yen
January 19, Lump-sum Unsecured
January 19,
230
TIBOR) (Note 4)
2023
repayment
and2022+0.200%(Note 5) at maturity unguaranteed(floating rate)-6-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(Note 1) The loan syndicate consists of Sumitomo Mitsui Banking Corporation, Shinsei Bank, Limited, The Bank of Fukuoka, Ltd., The Gunma Bank,
Ltd., and The Ashikaga Bank, Ltd.
(Note 2) The loan syndicate consists of Sumitomo Mitsui Banking Corporation, The Hiroshima Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, San
ju San Bank, Ltd., Aozora Bank, Ltd., The Higo Bank, Ltd., Chugoku Bank, Ltd., The Nishi-Nippon City Bank, Ltd., and The Yamaguchi Bank,
Ltd.
(Note 3) Not including borrowing expenses, etc. payable to the lender.
(Note 4) The base rate applicable to the calculation period for the interest payable on each interest payment date shall be the JBA 1-month or 3month Japanese Yen TIBOR two business days prior to each interest payment date (however, the drawdown date in the case of the firstinterest 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 1-month or 3-month Japanese Yen TIBOR falls below 0%, then the base rate shall be 0%.
(Note 5) 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.

(C) Acquisition of Assets
marimo REIT acquired the following 7 properties (acquisition price: 8,618 million yen) on January 19, 2022, and is scheduled
to acquire 1 property (planned acquisition price: 982 million yen) on April 1, 2022.
Acquisition(Planned)
Appraisal
Property
date or
Acquisition
value
number
Property nameLocation
Sellerplannedprice(million yen)
(Note 1)acquisition(million yen) (Note 4)
date(Note 3)
Marimo Co., Ltd.

780

856

January 19,
2022

Starship Kobe Gakuentoshi

Kobe-shi, Hyogo Marimo Co., Ltd.

982

1,230

April 1, 2022

Rp-15

ArtizA Mito Izumicho

Mito-shi, Ibaraki Marimo Co., Ltd.

609

707

January 19,
2022

Rp-16

ArtizA Kokura

Kitakyushu-shi,
Fukuoka

Fuyo General
Lease Co., Ltd.

1,849

1,970

January 19,
2022

Rp-17

ArtizA Kurashiki

Kurashiki-shi,
Okayama

Not disclosed(Note 2)590

612

January 19,
2022

Cp-13

Komyoike Act

Sakai-shi, Osaka

Not disclosed(Note 2)

2,040

2,340

January 19,
2022

Op-03

Big B Higashishukugo

Utsunomiya-shi, Kabushiki Kaisha
Tochigi
Toshi Kaihatsu

1,750

1,990

January 19,
2022

Op-04

Ikeshita ES Building

Nagoya-shi, Aichi

Not disclosed(Note 2)

1,000

1,150

January 19,
2022

9,600

10,855-

Rp-13

ArtizA Kitadorimachi

Rp-14

Takasaki-shi,
Gunma

Total (8 properties)(Note 1) “Property number” is the number assigned to the property by combining the asset type classifications of “investment targets” and“investment ratio by region” for the assets acquired by marimo REIT. “Investment targets” are represented by “R” for residential, “C” forretail, “H” for hotel and “O” for office, while “p” is for regional and “t” is for Tokyo metropolitan area. In cases of mixed-use properties ofseveral uses (asset types) in a single building, the investment target classification is based on the asset type that accounts for the largest
percentage of the floor area in each building.
(Note 2) The seller, which is a domestic corporation, is not disclosed, as consent for disclosure has not been obtained from the seller. As of today,
the seller does not fall under the category of interested persons, etc. defined in the Investment Trust Act, nor of interested persons, etc.
defined in the rules on transactions with interested persons, etc., which are the internal rules set by the Asset Manager. Furthermore, theseller has no capital ties, personnel ties or business ties to be specially noted with marimo REIT and the Asset Manager, and the seller does
not fall under the category of related parties of marimo REIT.
(Note 3) “(Planned) acquisition price” indicates the purchase price of each real estate trust beneficiary right stated in each trust beneficiary rightsale and purchase agreement (excluding consumption tax, local consumption tax and other miscellaneous expenses such as broker’s
commissions) for the assets (to be) acquired, rounded down to the nearest million yen.
(Note 4) “Appraisal value” indicates the appraisal value stated in each real estate appraisal report with August 31, 2021, September 30, 2021,
November 1, 2021, or December 1, 2021, as the date of value.

-7-marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(D) Disposition of Assetmarimo REIT disposed the following property on January 26, 2022.
Property
number

Property name

Rp-04

ArtizA Hakataeki-Minami

Location

Buyer

Fukuoka-shi,
Fukuoka

Not disclosed(Note 3)

Disposition Appraisal
price
value
(million yen) (million yen)
(Note 1)
(Note 2)350

294

Disposition
date
January 26,
2022(Note 1) “Disposition price” indicates the sales price stated in the sale and purchase agreement (excluding consumption tax, local consumption tax
and other miscellaneous expenses such as broker’s commissions), rounded down to the nearest million yen.
(Note 2) Appraisal is entrusted to Japan Valuers Co., Ltd., and appraisal value indicates the amount equivalent to 50% of the appraisal value statedin the real estate appraisal report with November 1, 2021, as the date of value, rounded down to the nearest specified unit.
(Note 3) The scheduled buyer is a domestic business corporation in Japan, but details are not disclosed as consent for disclosure has not beenobtained from the buyer.

-8-marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending June 2022 (from January 1, 2022, to June 30, 2022) andFiscal Period Ending December 2022 (from July 1, 2022, to December 31, 2022)
Item

Assumptions

Accounting
period● Fiscal period ending June 2022 (12th fiscal period) (from January 1, 2022, to June 30, 2022) (181 days)● Fiscal period ending December 2022 (13th fiscal period) (from July 1, 2022, to December 31, 2022) (184 days)● The assumption is that marimo REIT will continue to hold the real estate trust beneficiary rights to 38 properties
held as of the date of this document and the real estate trust beneficiary right to 1 property scheduled to beacquired in April 2022 and that there will be no acquisition of new properties other than those through to theend of the fiscal period ending December 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 excluding the newly acquired assets defined below is
calculated on the basis of rent, etc. stated in lease contracts in effect as of the date of this document, historical data,etc. Operating revenue from leasing of the real estate trust beneficiary right to 7 properties acquired on January
19, 2022, and the real estate trust beneficiary right to 1 property scheduled to be acquired on April 1, 2022
(hereinafter, the “Newly Acquired Assets”) is calculated on the basis of the content of lease agreements provided
by the previous beneficiary or current owner, etc. of the Newly Acquired Assets, and past tenants, market trends,
etc., as well as the content of lease agreements in effect on the date of this document or scheduled to be in effecton the planned acquisition date, and by taking into account various factors, such as the assumed occupancy rate
and rent fluctuation projections based on post-acquisition tenant move-in/move-out and rent level projections.
● The assumption is 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 the COVID-19 pandemic
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. (historical data, etc. provided by the previous beneficiary or current
beneficiary, etc. for the Newly Acquired Assets) 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 941 million yen for the fiscal period ending
June 2022 and 988 million yen for the fiscal period ending December 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 2023 for Newly Acquired Asset.
Furthermore, the total amount of fixed asset tax, city planning tax, etc. to be expensed is expected to be 99
million yen for the fiscal period ending June 2022 and 99 million yen for the fiscal period ending December 2022.
Of these, the amount of the effect of the acquisition of the Newly Acquired Asset is expected to be 31 million
yen for the fiscal period ending June 2022 and 31 million yen for the fiscal period ending December 2022.
● Repair expenses for buildings based on medium- to long-term repair plans formulated by the Asset Manager are
expected to be 55 million yen for the fiscal period ending June 2022 and 44 million yen for the fiscal period
ending December 2022. 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 306 million yen for the fiscal period ending June 2022 and
310 million yen for the fiscal period ending December 2022.
● Interest expenses and other borrowing-related expenses are expected to be 138 million yen for the fiscal period
ending June 2022 and 142 million yen for the fiscal period ending December 2022.
● Amortization of investment unit issuance expenses is expected to be 11 million yen for the fiscal period ending
June 2022 and 11 million yen for the fiscal period ending December 2022.
● 5,200 million yen was borrowed with the acquisition of the Newly Acquired Assets on January 19, 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 21,337 million yen at the end of the fiscal period
ending June 2022 and 19,307 million yen at the end of the fiscal period ending December 2022.
● The assumption is the total number of investment units issued and outstanding as of the date of this documentof 192,226 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 2022.

Assets undermanagement

Operatingrevenue

OperatingexpensesNon-operating
expenses

Loans

Investment
units

-9-

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

Assumptions

Dividends
per unit(excluding
dividends
in excess ofearnings)● 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.
● 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 June 2022 and fiscal period ending December 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 June 2022 and fiscal period ending December 2022. As such, forthe fiscal period ending June 2022, total dividends in excess of earnings is expected to be 60 million yen, of
which total dividends of allowance for temporary difference adjustments is 1 million yen and total otherdividends in excess of earnings is 59 million yen, and total dividends in excess of earnings for the fiscal period
ending December 2022 is expected to be 83 million yen, of which total dividends of allowance for temporary
difference adjustments is 1 million yen and other distribution in excess of earnings is 82 million yen (Note 1).

Dividends
in excess ofearnings
per unit(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 12th fiscal period (fiscal period
ending June 2022) and 13th fiscal period (fiscal period ending December 2022) regardless of the forecast above in theevent that such conditions are not met.
In addition, concerning the fiscal period ending June 2022 and fiscal period ending December 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 June 2022 and fiscal period ending
December 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 June 2022 and fiscal
period ending December 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 January 4, 2022, including subsequent amendments).

- 10 -

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

2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
10th fiscal period(As of June 30, 2021)
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
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- 11 -

11th fiscal period(As of Dec. 31, 2021)

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

1,322,727
2,039,931
23,63881,0603,467,357

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

13,440,809(2,150,658)
11,290,151
326,486(64,882)
261,604
118,437(30,531)87,90650,671(16,716)
33,954
17,712,249
1,286
29,387,152

3,458
3,458

3,331
3,331

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

110,84115
10,00013,500134,356
29,524,840

13,997
13,99732,851,710

9,331
9,331
33,001,530

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

(Unit: thousand yen)
10th fiscal period(As of June 30, 2021)
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- 12 -

11th fiscal period(As of Dec. 31, 2021)

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

272,698
2,045,000
178,708916
18,847203,251
45,021
5,399
2,769,843

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

14,107,500
1,268,427
18,35910
15,394,297
18,164,140

14,869,979

14,869,979(9,862)(508,019)(517,881)
14,352,097(10,931)(571,992)(582,923)
14,287,056

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

550,333
550,333
14,837,389
14,837,389
33,001,530

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(2) Statement of Income(Unit: thousand yen)
10th fiscal period
From: Jan. 1, 2021
To: June 30, 2021
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
Bad debt loss
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distributions payable
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)- 13 -

11th fiscal period
From: July 1, 2021
To: Dec. 31, 2021

1,229,035
84,881－
1,313,916

1,237,775
53,067111,784
1,402,627

542,030
120,164
1,635
14,056
2,400
17,634－45,335743,256
570,660

540,495
128,190
1,633
15,6842,400
18,293607
41,279748,585
654,04115
193
13,607
13,816

14
374
6,634
7,022

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

63,70541,4504,665
109,821551,242551,242918(0)917
550,3248
550,333

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(3) Statement of Unitholders’ Equity
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- 14 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
11th fiscal period (from July 1, 2021, to December 31, 2021)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of current period

Allowance fortemporarydifference
adjustments

Other
deduction fromunitholders’capitalTotal
deduction fromunitholders’capitalUnitholders’capital, net(508,019)(517,881)

14,352,097(1,068)(1,068)(63,972)(63,972)(63,972)(1,068)(63,972)(65,041)(65,041)(10,931)(571,992)(582,923)

14,287,056

14,869,979(9,862)

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

14,869,979(Unit: thousand yen)
Unitholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of current period

Total
surplusTotal
unitholders’equityTotal
net assets

480,339

480,339

14,832,437

14,832,437(480,331)(480,331)(480,331)(480,331)(1,068)(1,068)(63,972)(63,972)

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

550,324

550,324

550,324

550,324

Total changes of items during period

69,99369,993

4,951

4,951

Balance at end of current period

550,333

550,333

14,837,389

14,837,389- 15 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(4) Statement of Distribution of Cash10th fiscal period
From: Jan. 1, 2021
To: June 30, 2021
I.

Unappropriated retained earnings

11th fiscal period
From: July 1, 2021
To: Dec. 31, 2021

480,339,604 yen

550,333,180 yen

65,041,680 yen

48,857,600 yen

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

1,221,440 yen
47,636,160 yen

545,372,960 yen

599,116,320 yen[3,572 yen]

[3,924 yen]

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

550,258,720 yen[3,604 yen]

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

1,068,760 yen

1,221,440 yen(attributable toallowance for temporary difference adjustments)][7 yen][8 yen]Other dividends in excess of earnings[Dividends in excess of earnings per unit

63,972,920 yen

47,636,160 yen(attributable toother dividends in excess of earnings)][419 yen][312 yen]

8,324 yen

74,460 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.

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 550,258,720 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 48,857,600 yen, which isthe amount roughly equivalent to 20%
of depreciation for the fiscal period
under review, as dividends in excess ofearnings. This resulted in dividends inexcess of earnings per unit of 320 yen.
Furthermore, included in thedividends in excess of earnings is
distributionofallowance
for
temporary difference adjustments of
1,221,440 yen, resulting in allowancefor temporary difference adjustments
per unit of 8 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- 16 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(5) Statement of Cash Flows(Unit: thousand yen)
10th fiscal period
From: Jan. 1, 2021
To: June 30, 2021
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
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 equipment in 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 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- 17 -

11th fiscal period
From: July 1, 2021
To: Dec. 31, 2021

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)
695,798551,242
248,833
4,665(14)
63,705(9,694)
7,867(11,768)(12,812)
3,200
(279)
227,309(27,833)868
1,045,289
14(62,092)(898)
982,312(554,860)－(0)(554,860)(140,184)78(0)(140,107)

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

3,800,000(3,815,000)(545,070)(560,070)
282,135
1,738,073
2,020,208

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

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marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(7) Notes on Matters Concerning Significant Accounting Policies(1) Property, plant and equipment
1. Method of depreciation
The straight-line method is adopted.
of non-current assets
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.
Investment unit issuance expenses
2. Accounting for
Amortized using the straight-line method over 3 years.
deferred assets(1) Standards for revenue recognition
3. Standards for
The details of main performance obligations concerning revenue generated fromrevenue and expense
contracts between marimo REIT and its customers and the time to fulfil said
recognition
performance obligations (ordinary time to recognize revenue) are as follows.
① 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.
② 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 3,589 thousand yen for the 10th fiscal
period and not applicable for the 11th fiscal period.
The funds (cash and cash equivalents) in the statement of cash flows comprise cash on hand
4. Scope of funds in theand cash in trust, demand deposits and deposits in trust, and short-term investments with astatement of cash flows
maturity 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.
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.

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marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2021
(8) Notes on Changes in Accounting Policies[Notes on Changes in Accounting Policies](Application of Accounting Standard for Revenue Recognition, Etc.)
marimo REIT has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 issued on March 31, 2020;
hereinafter, the “Revenue Recognition Accounting Standard”), etc. from the beginning of the fiscal period under review, anddecided to recognize revenue at the amount expected to be received in exchange for the promised goods or services whencontrol of the goods or services is transferred to the customer. This has minimal impact on the financial statement for the fiscal
period under review.
Furthermore, in accordance with the transitional treatment stipulated in Paragraph 89-3 of the Accounting Standard for
Revenue Recognition, the note related to revenue recognition for the previous fiscal period is not shown.
(Application of Accounting Standard for Fair Value Measurement, Etc.)
marimo REIT has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019;
hereinafter, the “Fair Value Measurement Accounting Standard”), etc. from the beginning of the fiscal period under review, anddecided to apply the new accounting policy set forth in the Fair Value Measurement Accounting Standard, etc. going forwardin accordance with the transitional treatment stipulated in Paragraph 19 of the Fair Value Measurement Accounting Standard
and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10 issued on July 4, 2019). Thishas minimal impact on the financial statement for the fiscal period under review.
[Additional Information][Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments]
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.

11th fiscal period (from July 1, 2021, to December 31, 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 1,221 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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