(REIT) Financial Report for the Fiscal Period Ended June 2022
August 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:

September 16, 2022
September 29, 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 June 2022 (from January 1, 2022, to June 30, 2022)(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 2022
1,779
26.9
841
28.6
693
25.7
692
25.8
Ended Dec. 2021
1,402
6.8
654
14.6
551
14.6
550
14.6
Fiscal period

Net income per unit

Return on equity

yen
3,676
3,604

Ended June 2022
Ended Dec. 2021

Ratio of ordinary income to Ratio of ordinary income tototal assets
operating revenue
%
%
%
4.0
1.8
38.9
3.7
1.7
39.3

(2) Dividends

Fiscal period

Dividends
per unit

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

yen
3,601
3,604

million yen
692
550

Ended June 2022
Ended Dec. 2021
(Note 1)

(Note 2)
(Note 3)

Dividends
in excess ofearnings
per unit

Total
dividends
in excess ofearnings

yen
216
320

million yen
41
48

Dividends
per unit

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

yen
3,817
3,924

million yen
733
599

Payout
ratio
%
100.0
100.0

Ratio ofdividends to
net assets
%
3.6
3.7

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 breakdown of total dividends in excess of earnings for the fiscal period ended June 2022 is total dividends from allowance for temporary difference
adjustments of 1 million yen (6 yen per unit) and total dividends from distribution accompanying decrease in capital, etc. under tax law of 40 million
yen (210 yen per unit).
The ratio of decreasing surplus, etc. attributable to distribution in excess of earnings (refund of investments in capital) is 0.004 for the fiscal period
ended December 2021 and 0.003 for the fiscal period ended June 2022.
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 June 2022
Ended Dec. 2021

Total assets
million yen
43,09533,001

Net assets
million yen
19,786
14,837

Net cashprovided by (used in)operating activities
million yen
1,184
982

Net cashprovided by (used in)investing activities
million yen(10,380)(140)

Equity ratio
%
45.9
45.0

Net assets per unit
yen
102,931
97,179(4) Cash Flows
Fiscal period

Ended June 2022
Ended Dec. 2021

Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen
9,168
1,992
(560)
2,020

2. Operating Forecasts for the Fiscal Period Ending December 2022 (from July 1, 2022, to December 31, 2022) andOperating Forecasts for the Fiscal Period Ending June 2023 (from January 1, 2023, to June 30, 2023)(% figures are the rate of period-on-period increase (decrease))
Fiscal periodEnding Dec. 2022
Ending June 2023

Operating revenue Operating income Ordinary income
mn yen
1,806
1,792

%
1.5
(0.8)

mn yen
789
768

%
(6.1)
(2.7)

mn yen
638
622

%
(7.9)
(2.4)

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
637
(7.9)
3,316
327
3,643
621
(2.4)
3,235
411
3,646

(Reference) Forecast net income per unit (Forecast net income ÷ Forecast number of investment units at end of period)
Fiscal period ending December 2022: 3,316 yen
Fiscal period ending June 2023: 3,235 yen(Note) The rate of period-on-period increase (decrease) for the fiscal period ending December 2022 shows comparison with the actual
figures for the fiscal period ended June 2022, and that for the fiscal period ending June 2023 shows comparison with theforecast figures for the fiscal period ending December 2022.
* 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 2022
192,226 units② Number of treasury investment units at end of period
Fiscal period ended June 2022

0 units

Fiscal period ended Dec. 2021
Fiscal period ended Dec. 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 December 2022 (from July 1, 2022, to December 31, 2022) and Fiscal Period Ending
June 2023 (from January 1, 2023, to June 30, 2023)” on page 8.

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022

Table of Contents
1. Management Status .......................................................................................................................................................................... 2(1) Management Status ................................................................................................................................................................... 2(2) Investment Risks ........................................................................................................................................................................ 9
2. Financial Statements ....................................................................................................................................................................... 10(1) Balance Sheet .......................................................................................................................................................................... 10(2) Statement of Income ............................................................................................................................................................... 12(3) Statement of Unitholders’ Equity ............................................................................................................................................. 13(4) Statement of Distribution of Cash ............................................................................................................................................ 15(5) Statement of Cash Flows .......................................................................................................................................................... 16(6) Notes on the Going Concern Assumption ................................................................................................................................ 17(7) Notes on Matters Concerning Significant Accounting Policies ................................................................................................. 18-1-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022

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) on February 5, 2016, andcompleted the registration with the Kanto Local Finance Bureau on March 16, 2016 (Registration No. 113 with the
Director-General of the Kanto Local Finance Bureau). marimo REIT then implemented an issuance of new investment units
through public offering (88,500 units) with July 28, 2016, as the payment due date, and was listed on the Real Estate
Investment Trust Securities Market of Tokyo Stock Exchange, Inc. on July 29, 2016 (securities code: 3470). In the fiscal period
under review, marimo REIT implemented an issuance of new investment units through public offering (38,158 units) on
January 18, 2022, and an issuance of new investment units through third-party allotment accompanying secondary offering
through over-allotment (1,388 units) on February 15, 2022. These resulted in total number of investment units issued andoutstanding of 192,226 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 −0.5% for the period from January to March 2022 (seasonally adjusted; second preliminary estimate). In comparison
with the period from July to September 2021, private demand for the period from January to March 2022 turned to positive
growth from −1.4% to +0.5% year on year. This can be attributed to economic activities centering on domestic demand
gradually resuming with the quasi-emergency COVID-19 measures ending on March 21, 2022, and other impact of the
COVID-19 pandemic subsiding in the period from January to March 2022.
Going forward, it is recognized that vigilance against future impact is required with the number of COVID-19 cases turning toincrease across Japan since July 2022.
(Financial Market)
With the continuation of global monetary easing, the JBA 3-month Japanese Yen TIBOR remained at 0.06727% between
December 29, 2021, and June 30, 2022. With there being no end to the COVID-19 pandemic yet in sight, and the Ukraine
situation, depreciation of the yen and other currency movements, soaring resource prices, and other future uncertainties
impacting financial markets lingering, the impact of volatility in financial markets should be carefully watched still going
forward.
(Real Estate Transaction Market)
According to “ARES Monthly Report (June 2022)” 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 May 2022 decreased by 157.3 billion yen year
on year (−26.9% year on year) to 427.2 billion yen in terms of total acquisition price, and actual disposition decreased by
22.1 billion yen year on year (−16.6% year on year) to 111.4 billion yen in terms of total disposition price. This is likely to be
attributable to actual transactions decreasing under the circumstances of difficulty in securing returns on income fromacquisition of real estate resulting from the continuation of an accommodative financing environment and the rise in realestate prices continuing from the previous period. Going forward, attention should continue to be paid to factors, including
also interest rates and such.
(Residential Leasing Market)
According to the number of households by type of rental housing from 1993 to 2018 for the Tokyo metropolitan area (Note)and the rest of Japan (“Housing and Land Survey” by the Statistics Bureau of the Ministry of Internal Affairs andCommunications), the number of households living in privately owned rental housing is increasing, suggesting that demand
for rental housing is stable and demand for rental housing in Japan is likely to continue to grow.
(Note)“Tokyo metropolitan area” refers to Tokyo, Kanagawa, Chiba, and Saitama 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 2022, the rate of increase in sales value compared with the same period of the previous year for supermarkets
increased by 0.7% on average nationally. By area, it increased for the Kyushu area at +2.1%, the Chugoku area at +1.5%, andthe Shikoku area at +1.2%. For drug stores, the rate of increase was +4.9% on average nationally and particularly by area was+8.3% for the Tohoku area, +6.8% for the Kinki area, and +5.8% for the Shikoku area, showing an upward trend across thenation. With COVID-19 cases yet to subside, the recognition is that the uncertain state of consumption will continue for bothsupermarkets and drug stores.
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 2022)” by Japan National Tourism Organization, the number ofinternational visitors to Japan in the period from January to May 2022 increased significantly to 0.38 million or +344.7% year
on year (including estimates). As a result, according to “Overnight Travel Statistics Survey (April 2022/second preliminary
estimates, March 2022/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 2022 was 33.10 million (+49.8% year on year)
and that of overnight international guests was 0.53 million (+132.6% year on year), indicating that accommodation demandis increasing significantly. Guest room occupancy rate by type of accommodation facility turned to an increasing trend, being
55.5% (+13.4% year on year) for business hotels, 45.1% (+16.8% year on year) for city hotels, and 36.1% (+14.3% year onyear) for resort hotels. The recognition is that the number of Japanese and international travelers will increase as promotions
for local travel for Japanese travelers, including discounts, are underway and entry restrictions for international travelers arealso likely to be relaxed with the COVID-19 pandemic subsiding.
(Office Leasing Market)
According to “Japan Office Market View Q1 2022” by CBRE K.K., in the first quarter of 2022, the vacancy rate for major
regional cities was showing trends that were split depending on the city, with there being cities on the increase year on year
at 5.1% (+3.2 pts year on year) for Nagoya City, 3.6% (+1.9 pts year on year) for Osaka City, and 2.6% (+0.4 pts year on year)
for Fukuoka City, but there being also cities on the decrease year on year at 0.5% (−0.3 pts year on year) for Sapporo City and2.5% (−0.7 pts year on year) for Hiroshima City. On the other hand, assumed contract rents remained pretty much unchanged
at 14,350 yen/tsubo (+0.3% year on year) for Nagoya City, 16,180 yen/tsubo (−0.5% year on year) for Fukuoka City, and11,820 yen/tsubo (−0.6% year on year) for Hiroshima City.
Going forward, because demand for offices is expected to change with the prevalence of working in shared offices, telework,etc., close attention should be paid to occupancy rates and such.
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,interior renovation work (changing the flooring, changing the floor plan, etc.) was conducted at ArtizA Matsumoto in efforts
to increase contract rent. Such efforts resulted in an occupancy rate of 98.0% and period-average occupancy rate of 97.7%
for marimo REIT’s portfolio assets as of the end of the fiscal period under review (39 properties; total acquisition price (Note):
39,550 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 2022
④ Financing Status
In the fiscal period under review, upon the acquisition of real estate trust beneficiary rights to 8 properties, 4,685 million yen
was procured in funds from issuance of new investment units through public offering on January 18, 2022, and 170 million
yen from issuance of new investment units through third-party allotment accompanying secondary offering throughover-allotment on February 15, 2022. In addition, long-term loans of 1,200 million yen and 3,770 million yen and short-termloans of 230 million yen were borrowed on January 19, 2022, and allocated to part of the funds for acquisition of real estate
trust beneficiary rights to 8 properties and related expenses.
Of loans, funds on hand were used to conduct early repayment of short-term loans borrowed on January 19, 2022 (Tranche
8-C: loan amount of 230 million yen) on June 1, 2022. Other than this, of long-term loans borrowed on August 1, 2016
(Tranche D: loan balance of 1,342 million yen), funds on hand were used to execute contractual repayments of 7 million yen
on February 1, 2022, and 7 million yen on May 2, 2022. As a result, as at the end of the fiscal period under review (end ofJune 2022), the balance of loans outstanding was 21,107 million yen and the ratio of interest-bearing liabilities to total assets(hereinafter, “LTV ratio”) was 49.0%.
(Note)As described in “(Outlook for the Next Fiscal Period) ②Significant Subsequent Events (Reference Information) (A) Borrowing of Funds” laterin this document, short-term loans of 300 million yen were borrowed on July 5, 2022, to allocate to part of the funds for acquisition of anasset and incidental expenses thereto, and long-term loans of 2,015 million yen in total were borrowed on August 1, 2022, to allocate to
repayment of long-term loans due for repayment on August 1, 2022 (Tranche 4-A) of 2,015 million yen. In addition, of the abovementioned
long-term loans borrowed on August 1, 2016 (Tranche D), 7 million yen was repaid on August 1, 2022. As a result of these, as of the date ofthis document, the balance of loans outstanding for marimo REIT stands at 21,400 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 1,779 million yen,operating income of 841 million yen, ordinary income of 693 million yen and net income of 692 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 3,601 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
41 million yen, which is the amount roughly equivalent to 13% 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 216 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 6 yen.
In addition, payout ratio (ratio of total dividends including distribution in excess of earnings to the amount of net income
plus depreciation) was 73.5%.
(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 12th fiscal period (fiscal period ended June 2022) was 46,896 million yen, which
exceeds the sum total of total book value of real estate, etc. (39,075 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 13th fiscal period (206 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
39,071 million yen and leasehold rights in trust posted to intangible assets of 3 million yen.
(Note 3) For the 39 properties held by marimo REIT as of the end of the fiscal period under review, the 6-month average of the sum total amount of
the estimated amount of emergency repair expenses, estimated amount of short-term repair expenses and estimated amount of long-term
repair expenses (each falling under the category of renewal expenses (capital expenditures)) stated in the engineering report is 76 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 206 million yen for the fiscal period ending December 2022 and 168 million yen for the fiscal period ending June 2023.
Therefore, even if an amount equivalent to the funds expected as reserve for the purpose of future capital expenditures for maintaining
the function of buildings, etc. or working capital, etc. and certain funds in preparation for investment that would serve to enhance theincome-producing potential of the portfolio are retained from the cash and deposits on hand in an amount equivalent to depreciation on
the last day of each accounting period, there is still expected to be residual free cash flows. Accordingly, the decision was made to executethe abovementioned distribution in excess of earnings as part of cash management under the judgment that it is within the scope thatsound financial stability will be maintained.

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marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
(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 with thenumber of COVID-19 cases turning to increase across Japan since July 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 reviewing contract terms and conditions as appropriate, environmental consideration/initiatives and cost reduction byswitching lighting in common areas to LED, and reduction of tenant solicitation 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 2022
② Significant Subsequent Events
Disposition of Assetmarimo REIT decided on August 18, 2022, to dispose the following property in parts (hereinafter, the “Disposition”) (Note 1).
Disposition Appraisal
Planned
Property
price
value
Property nameLocation
Buyer
disposition
number(million yen) (million yen)date
(Note 2)
(Note 3)

Rt-02

ArtizA Tsuzuki Chuo Koen

Yokohama-shi,
Kanagawa

Total

Not disclosed(Note 4)665

575

September 30,
2022

665

575

January 11,
2023

1,330

1,150

(Note 1) The plan is disposition in two parts, the first of which is planned to be disposition of 50% quasi co-ownership interest on September 30,
2022, and the second to be 50% quasi co-ownership interest on January 11, 2023.
(Note 2) “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 3) Appraisal is entrusted to Daiwa Real Estate Appraisal Co., Ltd., and appraisal value indicates the amount equivalent to 50% of the appraisal
value stated in the real estate appraisal report with June 30, 2022, as the date of value, rounded down to the nearest specified unit.
(Note 4) 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.
(Note 5) The sale and purchase agreement for the Disposition (the “Sale and Purchase Agreement”) falls within forward commitments, etc. bymarimo REIT as stipulated in the Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc. establishedby the Financial Services Agency. Under the Sale and Purchase Agreement, when it turns out that either marimo REIT or the buyer does notintentionally or negligently fulfill obligations stated in the Sale and Purchase Agreement, or materially violates the representations andwarranties matters of marimo REIT or representations and warranties matters of the buyer stipulated in the Sale and Purchase Agreement
and the purpose of the Sale and Purchase Agreement becomes unachievable, the agreement may be cancelled after making such demand.
When such a cancellation is made, the cancelled party shall immediately pay an amount equivalent to 20% of the disposition price (excluding
amount equivalent to consumption tax and local consumption tax) to the counterparty as cancellation penalty. However, since marimo REIT
is the seller under the Sale and Purchase Agreement and there are no particular concerns over execution of the Sale and Purchase
Agreement, marimo REIT believes that it is unlikely for marimo REIT to incur the aforementioned penalty and that the transaction is unlikely
to materially impact the financial standing of marimo REIT.

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marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
(Reference Information)(A) Borrowing of Funds
marimo REIT concluded a loan agreement as follows to allocate to part of the acquisition funds and incidental expenses ofthe property described in “(B) Acquisition of Asset” below on July 5, 2022.
Loan amountInterest rate
Drawdown Maturity Repayment
LenderRemarks(million yen)
(Note 1)date
date
methodBase rate(JBA 3-monthJanuary 23, Lump-sum Unsecured
Sumitomo Mitsui Banking
July 5,300 Japanese Yen TIBOR)
2023
repayment
andCorporation
2022(Note 2) + 0.200%(Note 3) at maturity unguaranteed(floating rate)(Note 1) Not including borrowing expenses, etc. payable to the lender.
(Note 2) The base rate applicable to the calculation period for the interest payable on each interest payment date shall be determined two businessdays prior to each interest payment date (the drawdown date in the case of the first interest calculation period). For the JBA Japanese Yen
TIBOR, please check the website of JBA TIBOR Administration (https://www.jbatibor.or.jp/english/). If the JBA 3-month Japanese Yen TIBOR
falls below 0%, then the base rate shall be 0%.
(Note 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.

marimo REIT borrowed long-term loans of 2,015 million yen in total on August 1, 2022, to allocate to the funds for repaymentof long-term loans due for repayment on August 1, 2022 (Tranche 4-A) of 2,015 million yen. Details are as follows.
Loan amountInterest rate
Drawdown Maturity Repayment
LenderRemarks(million yen)
(Note 2)
date
date
methodLoan syndicate withBase rate
Sumitomo Mitsui(JBA 3-month
August 1, Lump-sum Unsecured
TrancheAugust 1,
Banking Corporation
2,015 Japanese Yen TIBOR)
2025
repayment
and
9
2022
as arranger(Note 3) + 0.600%(Note 4) at maturity unguaranteed(Note 1)
(floating rate)(Note 1) The loan syndicate consists of Sumitomo Mitsui Banking Corporation, The Hiroshima Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited,
Aozora Bank, Ltd., Resona Bank, Limited, Shinsei Bank, Limited, San ju San Bank, Ltd., and The Chugoku Bank, Limited.
(Note 2) Not including borrowing expenses, etc. payable to the lender.
(Note 3) The base rate applicable to the calculation period for the interest payable on each interest payment date shall be determined two businessdays prior to each interest payment date (the drawdown date in the case of the first interest calculation period). For the JBA Japanese Yen
TIBOR, please check the website of JBA TIBOR Administration (https://www.jbatibor.or.jp/english/). If the JBA 3-month Japanese Yen TIBOR
falls below 0%, then the base rate shall be 0%.
(Note 4) If the concerned date is not a business day, then it shall be the next business day, but if that next business day falls into the next calendar
month, then it shall be the business day preceding the concerned date.

(B) Acquisition of Assetmarimo REIT acquired the following 1 property (acquisition price: 520 million yen) on July 5, 2022.
Acquisition Appraisal
Property
price
value
number
Property nameLocation
Seller(million yen) (million yen)
(Note 1)
(Note 2)
(Note 3)
Rp-18

ArtizA Kumamotoshinmachi

Kumamoto-shi,
Marimo Co., Ltd.
Kumamoto

520

524

Acquisition
date
July 5, 2022

(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 properties with several
uses (asset types) in a single building, the investment target classification is based on the asset type that accounts for the largest percentageof the floor area in each building.
(Note 2) “Acquisition price” indicates the purchase price of the real estate trust beneficiary right stated in the trust beneficiary right sale and purchaseagreement (excluding consumption tax, local consumption tax and other miscellaneous expenses such as broker’s commissions) for theasset acquired, rounded down to the nearest million yen.
(Note 4) “Appraisal value” indicates the appraisal value stated in the real estate appraisal report with May 31, 2022, as the date of value.

-7-marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending December 2022 (from July 1, 2022, to December 31, 2022)
and Fiscal Period Ending June 2023 (from January 1, 2023, to June 30, 2023)
Item

Assumptions

Accounting
period● Fiscal period ending December 2022 (13th fiscal period) (from July 1, 2022, to December 31, 2022) (184 days)● Fiscal period ending June 2023 (14th fiscal period) (from January 1, 2023, to June 30, 2023) (181 days)● The assumption is that, of the real estate trust beneficiary rights to 40 properties held as of the date of thisdocument, marimo REIT will continue to hold the real estate trust beneficiary rights to the 39 properties otherthan ArtizA Tsuzuki Chuo Koen through to the end of the fiscal period ending June 2023, that ArtizA Tsuzuki Chuo
Koen will be disposed in parts of 50% quasi co-ownership each in September 2022 and January 2023, and that
there will be no acquisition of new properties or disposition of portfolio properties other than those.
● 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 there will be no delinquent or unpaid rent by tenants.
● Of operating expenses from leasing, the main operating expenses, expenses other than depreciation arecalculated on the basis of historical data, etc. and by reflecting the factors causing fluctuation in expenses.
● Operating income from leasing after operating expenses from leasing (including depreciation) is deducted(excluding gain on sales of real estate properties) is expected to be 948 million yen for the fiscal period ending
December 2022 and 1,007 million yen for the fiscal period ending June 2023.
● 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 the real estate trust beneficiaryrights to 7 properties acquired on January 19, 2022, the real estate trust beneficiary rights to 1 property acquiredon April 1, 2022, and the real estate trust beneficiary rights to 1 property acquired on July 5, 2022 (hereinafter,
the “Newly Acquired Assets”). Furthermore, the total amount of fixed asset tax, city planning tax, etc. to be
expensed is expected to be 98 million yen for the fiscal period ending December 2022 and 133 million yen for
the fiscal period ending June 2023. Of these, the amount of the effect of the acquisition of the Newly Acquired
Assets is expected to be 31 million yen for the fiscal period ending December 2022 and 31 million yen for the
fiscal period ending June 2023.
● Repair expenses for buildings based on medium- to long-term repair plans formulated by the Asset Manager are
expected to be 57 million yen for the fiscal period ending December 2022 and 46 million yen for the fiscal period
ending June 2023. 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 315 million yen for the fiscal period ending December
2022 and 312 million yen for the fiscal period ending June 2023.
● Interest expenses and other borrowing-related expenses are expected to be 139 million yen for the fiscal period
ending December 2022 and 138 million yen for the fiscal period ending June 2023.
● Amortization of investment unit issuance expenses is expected to be 11 million yen for the fiscal period ending
December 2022 and 7 million yen for the fiscal period ending June 2023.
● 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 21,392 million yen at the end of the fiscal period
ending December 2022 and 21,377 million yen at the end of the fiscal period ending June 2023.
● 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 June 2023.
● 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)-8-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
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 2022 and fiscal period ending June 2023, 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 2022 and fiscal period ending June 2023. As such, forthe fiscal period ending December 2022, total dividends in excess of earnings is expected to be 62 million yen,of which total dividends of allowance for temporary difference adjustments is 1 million yen and total otherdividends in excess of earnings is 61 million yen, and for the fiscal period ending June 2023, total dividends inexcess of earnings is expected to be 79 million yen, of which total dividends of allowance for temporary
difference adjustments is 1 million yen and other distribution in excess of earnings is 77 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 13th fiscal period (fiscal period
ending December 2022) and 14th fiscal period (fiscal period ending June 2023) regardless of the forecast above in theevent that such conditions are not met.
In addition, concerning the fiscal period ending December 2022 and fiscal period ending June 2023, 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 2022 and fiscal period
ending June 2023 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 2022 andfiscal period ending June 2023. 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 24, 2022).

-9-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022

2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
11th fiscal period(As of Dec. 31, 2021)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes refund receivable
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Lease and guarantee deposits in trust
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Total deferred assets
Total assets- 10 -

12th fiscal period(As of June 30, 2022)

1,322,727
2,039,931
23,63881,060－3,467,357

1,038,601
2,528,169
20,377
89,219116,940
3,793,308

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

17,846,178(2,404,457)
15,441,721
390,594(72,357)
318,236
118,437(33,454)
84,982
52,046(19,674)
32,371
23,193,368
1,286
39,071,966

3,331
3,331

3,204
3,204

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

162,968
14
10,00013,766
186,748
39,261,920

9,331
9,331
33,001,530

40,57040,57043,095,798

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022

(Unit: thousand yen)
11th fiscal period(As of Dec. 31, 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- 11 -

12th fiscal period(As of June 30, 2022)

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

156,041
4,185,000
208,766
907－
262,679
45,021
10,484
4,868,901

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

16,922,500
1,499,973
18,37810
18,440,863
23,309,764

14,869,979

19,725,556(10,931)(571,992)(582,923)
14,287,056(12,152)(619,628)(631,781)
19,093,775

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

692,259692,259
19,786,034
19,786,034
43,095,798

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
(2) Statement of Income(Unit: thousand yen)
11th fiscal period
From: July 1, 2021
To: Dec. 31, 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)- 12 -

12th fiscal period
From: Jan. 1, 2022
To: June 30, 2022

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

1,560,094
106,586
112,903
1,779,585

540,495
128,190
1,633
15,6842,400
18,293607
41,279748,585
654,041

710,463
143,526
2,075
17,3632,700
21,314－40,884
938,327
841,257

14
374
6,634
7,022

17
164
681
864

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

84,37852,801
11,846
149,026
693,095
693,095
910
0
910
692,18474692,259

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
(3) Statement of Unitholders’ Equity
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

14,869,979(9,862)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)

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)(63,972)(65,041)(65,041)

14,869,979(10,931)(571,992)(582,923)

14,287,056(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- 13 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
12th fiscal period (from January 1, 2022, to June 30, 2022)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of current period

Allowance fortemporarydifference
adjustments

14,869,979(10,931)

Other
deduction fromunitholders’capitalTotal
deduction fromunitholders’capitalUnitholders’capital, net(571,992)(582,923)

14,287,056

Changes of items during period
Issuance of new investment units

4,855,576

4,855,576

Dividends of surplus
Distribution in excess of earnings
attributable to allowance fortemporary difference adjustments
Other distribution in excess ofearnings(1,221)(1,221)(1,221)(47,636)(47,636)(47,636)

Net income
Total changes of items during period

4,855,576(1,221)(47,636)(48,857)

4,806,718

Balance at end of current period

19,725,556(12,152)(619,628)(631,781)

19,093,775(Unit: thousand yen)
Unitholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of current period

550,333

Total
surplus550,333

Total
unitholders’equityTotal
net assets

14,837,389

14,837,389

4,855,576

4,855,576(550,258)(550,258)(1,221)(1,221)(47,636)(47,636)

Changes of items during period
Issuance of new investment units
Dividends of surplus(550,258)(550,258)

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

692,184

692,184

692,184

692,184

Total changes of items during period

141,926

141,926

4,948,644

4,948,644

Balance at end of current period

692,259692,259

19,786,034

19,786,034- 14 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
(4) Statement of Distribution of Cash
11th fiscal period
From: July 1, 2021
To: Dec. 31, 2021
I.

Unappropriated retained earnings

12th fiscal period
From: Jan. 1, 2022
To: June 30, 2022

550,333,180 yen

692,259,231 yen

48,857,600 yen

41,520,816 yen

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

1,153,356 yen
40,367,460 yen

599,116,320 yen

733,726,642 yen[3,924 yen]

[3,817 yen]

550,258,720 yen[3,604 yen]692,205,826 yen[3,601 yen]

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

1,221,440 yen

1,153,356 yen(attributable toallowance for temporary difference adjustments)][8 yen][6 yen]Other dividends in excess of earnings[Dividends in excess of earnings per unit

47,636,160 yen

40,367,460 yen(attributable toother dividends in excess of earnings)][312 yen][210 yen]

74,460 yen

53,405 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.

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 692,205,826 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 41,520,816 yen, which isthe amount roughly equivalent to 13%
of depreciation for the fiscal period
under review, as dividends in excess ofearnings. This resulted in dividends inexcess of earnings per unit of 216 yen.
Furthermore, included in thedividends in excess of earnings is
distributionofallowance
for
temporary difference adjustments of
1,153,356 yen, resulting in allowancefor temporary difference adjustments
per unit of 6 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- 15 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
(5) Statement of Cash Flows(Unit: thousand yen)
11th fiscal period
From: July 1, 2021
To: Dec. 31, 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
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease due to sale of property, plant and 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
Proceeds from refund of lease and guarantee deposits 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 short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 16 -

12th fiscal period
From: Jan. 1, 2022
To: June 30, 2022

551,242
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

693,095
306,196
11,846(17)
84,3783,260(124,462)(11,324)(8,158)46,13422,51259,428226,716(52,126)
4,867
1,262,345
17(76,832)(918)
1,184,612(140,184)78－(0)(140,107)(10,380,371)
－
(266)
(0)
(10,380,637)－－
3,800,000(3,815,000)－(545,070)(560,070)
282,135
1,738,073
2,020,208

230,000(230,000)
4,970,000(15,000)
4,812,491(598,899)
9,168,591(27,434)2,020,208
1,992,774

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended June 2022
(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 June 2022
(7) Notes on Matters Concerning Significant Accounting Policies
1. Method of depreciation(1) Property, plant and equipmentof non-current assets
The straight-line method is adopted.
Furthermore, the useful life of core property, plant and equipment is as follows:
Buildings in trust
2–68 years
Structures in trust
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(1) Standards for revenue recognition
revenue and expense
The details of main performance obligations concerning revenue generated fromrecognition
contracts between marimo REIT and its customers and the ordinary time to fulfil said
performance obligations (ordinary time to recognize revenue) are as follows.
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 not applicable for the 11th fiscal period
and 54,674 thousand yen for the 12th 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 non-deductible consumption tax, etc.
Non-deductible consumption tax, etc. on non-current assets are 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 June 2022
[Additional Information][Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments]
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 rights for leasehold rights in trust and amount in excess ofdepreciation limit and also asset retirement obligation-related expenses led to taxation and accounting discrepancies.
Accordingly, allowance for temporary difference adjustments of 1,221 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.

12th fiscal period (from January 1, 2022, to June 30, 2022)
1. Reason, related assets, etc. and amount of provision
The posting of MRR Omuta’s amortization of leasehold rights for leasehold rights in trust and amount in excess ofdepreciation limit and also asset retirement obligation-related expenses led to taxation and accounting discrepancies.
Accordingly, allowance for temporary difference adjustments of 1,153 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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