(REIT) Financial Report for the Fiscal Period Ended December 2022
REIT Securities Issuer:
Securities Code:
Representative:

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

Listing:
URL:

Asset Manager:
Representative:
Contact:

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

February 17, 2023
Tokyo Stock Exchange
https://www.marimo-reit.co.jp/en/

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

March 16, 2023
March 24, 2023

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 2022 (from July 1, 2022, to December 31, 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 Dec. 2022
1,841
3.5
815
(3.1)
667
(3.7)
666
(3.7)
Ended June 2022
1,779
26.9
841
28.6
693
25.7
692
25.8
Fiscal period

Net income per unit

Return on equity

yen
3,467
3,676

Ended Dec. 2022
Ended June 2022

Ratio of ordinary income to Ratio of ordinary income tototal assets
operating revenue
%
%
%
3.4
1.5
36.2
4.0
1.8
38.9

(2) Dividends

Fiscal period

Dividends
per unit

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

yen
3,467
3,601

million yen
666
692

Ended Dec. 2022
Ended June 2022
(Note 1)Dividends
in excess ofearnings
per unit

Total
dividends
in excess ofearnings

yen
222
216

million yen
42
41

Dividends
per unit

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

yen
3,689
3,817

million yen
709
733

Payout
ratio
%
100.0
100.0

Ratio ofdividends to
net assets
%
3.4
3.6

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 breakdown of total dividends in excess of earnings for the fiscal period ended December 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(Note 2)

41 million yen (216 yen per unit).
The ratio of decreasing surplus, etc. attributable to distribution in excess of earnings (refund of investments in capital) is 0.003 for the fiscal period(Note 3)

ended June 2022 and 0.003 for the fiscal period ended December 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 Dec. 2022
Ended June 2022

Total assets
million yen
43,38443,095

Net assets
million yen
19,71819,786

Net cashprovided by (used in)operating activities
million yen
1,741
1,184

Net cashprovided by (used in)investing activities
million yen(684)(10,380)

Equity ratio
%
45.5
45.9

Net assets per unit
yen
102,581
102,931(4) Cash Flows
Fiscal period

Ended Dec. 2022
Ended June 2022

Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen
(449)
2,601
9,168
1,992

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

Operating revenue Operating income Ordinary income
mn yen
2,140
2,100

%
16.2
(1.8)

mn yen
981
929

%
20.4
(5.3)

mn yen
790
737

%
18.4
(6.6)

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
789
18.4
3,326
358
3,684
736
(6.6)
3,106
411
3,517

(Reference) Forecast net income per unit (Forecast net income ÷ Forecast number of investment units at end of period)
Fiscal period ending June 2023: 3,326 yen
Fiscal period ending December 2023: 3,106 yen(Note) The rate of period-on-period increase (decrease) for the fiscal period ending June 2023 shows comparison with the actual
figures for the fiscal period ended December 2022, and that for the fiscal period ending December 2023 shows comparison
with the forecast figures for the fiscal period ending June 2023.
* 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 accounHng 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 units
Fiscal period ended Dec. 2022
192,226 units② Number of treasury investment units at end of period
Fiscal period ended Dec. 2022
0 units
Fiscal period ended June 2022
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 2023 (from January 1, 2023, to June 30, 2023) and Fiscal Period Ending
December 2023 (from July 1, 2023, to December 31, 2023)” on pages 10-11.

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

Table of Contents
1. Management Status .......................................................................................................................................................................... 2(1) Management Status ................................................................................................................................................................... 2(2) Investment Risks ...................................................................................................................................................................... 11
2. Financial Statements ....................................................................................................................................................................... 12(1) Balance Sheet .......................................................................................................................................................................... 12(2) Statement of Income ............................................................................................................................................................... 14(3) Statement of Unitholders’ Equity............................................................................................................................................. 15(4) Statement of Distribution of Cash............................................................................................................................................ 17(5) Statement of Cash Flows.......................................................................................................................................................... 18(6) Notes on the Going Concern Assumption ................................................................................................................................ 19(7) Notes on Matters Concerning Significant Accounting Policies ................................................................................................. 20-1-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 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 1) on February 5, 2016, andcompleted the registration with the Kanto Local Finance Bureau on March 16, 2016 (Registration No. 113 with the
Director-General of the Kanto Local Finance Bureau). marimo REIT then implemented an issuance of new investment units
through public offering (88,500 units) with July 28, 2016, as the payment due date, and was listed on the Real Estate
Investment Trust Securities Market of Tokyo Stock Exchange, Inc. on July 29, 2016 (securities code: 3470). The total numberof investment units issued and outstanding stands at 192,226 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, 2023, and February 14, 2023. For details, please refer to “(Outlook for the Next
Fiscal Period) ②Signiﬁcant Subsequent Events (A) Issuance of New Investment Units” later in this document.

② Investment Environment
In the fiscal period under review, the Japanese economy experienced negative growth with an annualized real GDP growthrate of -0.8% for the period from July to September of 2022 (seasonally adjusted; second preliminary estimate). In
comparison with the period from January to March of 2022, domestic demand for the period from July to September of 2022
increased from +0.3% to +0.4%. This can be attributed to economic activities centering on domestic demand gradually
resuming with the impact of the COVID-19 pandemic subsiding in the period from July to September of 2022 in comparison
with the period from January to March of 2022.
Going forward, it is recognized that vigilance against future impact continues to be required with the recurrent waves in thenumber of COVID-19 cases.
(Financial Market)
With the continuation of global monetary easing, the JBA 3-month Japanese Yen TIBOR hovered at 0.06727% between July 1,
2022, and August 2, 2022, 0.06364% between August 3, 2022, and September 28, 2022, 0.05364% between September 29,
2022, and December 21, 2022, and 0.06364% between December 22, 2022, and December 30, 2022. With the Bank of Japan
tweaking its monetary easing policy in December 2022, and with also the COVID-19 pandemic, the Ukraine situation,exchange rate fluctuations, price index rises 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 (December 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 November 2022 decreased by 610.6 billion yen
year on year (-43.9% year on year) to 780.6 billion yen in terms of total acquisition price, and actual disposition decreasedby 114.9 billion yen year on year (-33.2% year on year) to 230.8 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 surge in realestate prices continuing from the previous period. With also the Bank of Japan tweaking its monetary easing policy and such,attention should continue to be paid going forward.
(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 2022
(Retail Property Market)
According to “Current Survey of Commerce” by the Ministry of Economy, Trade and Industry, for the period from July to
September of 2022, the rate of increase in sales value compared with the same period of the previous year for supermarkets
was +0.4% on average nationally. By area, the rate of increase was +4.5% for the Kyushu area, +1.9% for the Chugoku area,
and +1.5% for the Shikoku area. For drug stores, the rate of increase was +5.9% on average nationally and by area was +8.2%
for the Tohoku area, +8.0% for the Chugoku area, and +7.8% for the Kinki area, showing an upward trend across the nation.
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 November 2022)” by Japan National Tourism Organization, the numberof international visitors to Japan in the period from January to November of 2022 increased significantly to 2.46 million or+953.1% year on year (including estimates). As a result, according to “Overnight Travel Statistics Survey (October 2022 /second preliminary estimates, November 2022 / first preliminary estimates)” by Japan Tourism Agency of the Ministry ofLand, Infrastructure, Transport and Tourism, the total number of overnight Japanese guests for October 2022 was 42.15
million (+32.7% year on year) and that of overnight international guests was 2.12 million (+579.8% year on year), indicatingthat accommodation demand from international guests is increasing significantly. Guest room occupancy rate by type ofaccommodation facility turned to an increasing trend, being 64.0% (+12.9% year on year) for business hotels, 60.2% (+19.2%
year on year) for city hotels, and 52.2% (+16.9% year on year) for resort hotels. The recognition is that the number of Japaneseand international travelers will increase as a domestic travel subsidy program for Japanese travelers is also underway andentry restrictions for international travelers were generally lifted on October 11, 2022, with the impact of the COVID-19
pandemic subsiding.
(Office Leasing Market)
According to “Japan Office Market View Q3 2022” by CBRE K.K., in the third quarter of 2022, the vacancy rate for major
regional cities was on a rising trend at 6.2% (+3.1 percentage points year on year) for Hiroshima City, 5.1% (+1.3 percentage
points year on year) for Nagoya City, 3.2% (+0.5 percentage points year on year) for Osaka City, and 3.2% (+0.2 percentage
points year on year) for Fukuoka City. On the other hand, assumed contract rents showed trends that were split dependingon the city, being 15,510 yen/tsubo (+1.9% year on year) for Sapporo City, 14,300 yen/tsubo (±0.0% year on year) for Nagoya
City, 16,080 yen/tsubo (-0.7% year on year) for Fukuoka City, and 11,800 yen/tsubo (-0.8% 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,
rooftop antenna addition at ArtizA Kawasaki EAST and such were conducted 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 ofthe end of the fiscal period under review (40 properties; total acquisition price (Note): 39,545 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.

-3-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
④ Financing Status
In the fiscal period under review, a short-term loan of 300 million yen was borrowed on July 5, 2022, and allocated to part ofacquisition funds of real estate trust beneficiary right to 1 property and related expenses. In addition, a long-term loan of
2,015 million yen in total was borrowed on August 1, 2022, to allocate to repayment of a long-term loan of 2,015 million yen(Tranche 4-A) borrowed on August 1, 2019, and due for repayment on August 1, 2022. On top of that, of a long-term loanborrowed on August 1, 2016 (Tranche D: loan balance of 1,327 million yen), funds on hand were used to execute contractual
repayments of 7 million yen on August 1, 2022, and 7 million yen on November 1, 2022. As a result, as at the end of the fiscal
period under review (end of December 2022), the balance of loans outstanding was 21,392 million yen and the ratio ofinterest-bearing liabilities to total assets (hereinafter “LTV ratio”) was 49.3%.
In addition, marimo REIT acquired a long-term issuer rating of “A-/Stable” from Japan Credit Rating Agency, Ltd. (JCR) on
December 13, 2022.
(Note)As described in “(Outlook for the Next Fiscal Period) ②Signiﬁcant Subsequent Events (B) Borrowing of Funds” later in this document, a longterm loan of 1,500 million yen, a long-term loan of 3,950 million yen, and a short-term loan of 260 million yen were borrowed on January
19, 2023, to allocate to part of acquisition funds of assets (to be) acquired (but excluding Nippon Express Komagane Logistics Center) andrelated expenses, and a long-term loan of 2,440 million yen in total was borrowed on January 23, 2023, to allocate to repayment of a longterm loan of 2,140 million yen (Tranche 5-A) due for repayment on January 23, 2023, and a short-term loan of 300 million yen (Contract No.
4) due for repayment on January 23, 2023. In addition, of the abovementioned long-term loan borrowed on August 1, 2016 (Tranche D), 7
million yen was repaid on February 1, 2023. As a result of these, as of the date of this document, the balance of loans outstanding for marimo
REIT stands at 27,095 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 1,841 million yen,operating income of 815 million yen, ordinary income of 667 million yen and net income of 666 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 3,467 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
42 million yen, which is the amount roughly equivalent to 14% 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 222 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 72.4%.
(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 13th fiscal period (fiscal period ended December 2022) was 47,170 million yen,which exceeds the sum total of total book value of real estate, etc. (38,931 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 14th fiscal period(76 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
38,928 million yen and leasehold rights in trust posted to intangible assets of 3 million yen.
(Note 3) For the 40 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 76 million yen for the fiscal period ending June 2023 and 107 million yen for the fiscal period ending December 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.

-4-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 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 seven bases across Japan, through which a wide variety of real estate information
gathered from all over Japan is shared and analysis of asset value and assurance of liquidity and substitutability are verified
with deep insight based on the many years of experience in regional areas.
In addition, the policy is to pursue expansion of asset size while being granted preferential negotiation rights for sales
transactions pertaining to the acquisition of properties, including the “ArtizA” series of rental condominiums developed by
Marimo, income-producing real estate held or purchased by Marimo and retail or hotel properties developed in Marimo’s
urban redevelopment (Note) business, etc., based on the sponsor pipeline and support agreement. Along with this, the policy
is to keep fully utilizing the abundant property network, property information sourcing strengths, etc. of Marimo and thenine supporting companies (San ju San Bank, Ltd., The Michinoku Bank, Ltd., The Tokyo Star Bank, Limited, The Chugoku Bank,
Limited, Kansai Mirai Bank, Ltd., The Hiroshima Bank, Ltd., The Ashikaga Bank, Ltd., ReBITA Inc., and Alpha Court Co., Ltd.
with which a support agreement was newly entered into on January 4, 2023) and also property information obtained basedon the network accumulated in the real estate industry by the officers and employees of the Asset Manager and property
information obtained based on maintaining favorable relationships with the tenants of portfolio properties for the steadyexternal growth of marimo REIT.
Moreover, sale or replacement of properties are considered in cases where deemed appropriate over the medium to longterm in portfolio building in light of market conditions.
(Note)

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

(B) Internal Growth Strategy
Through appropriate management of assets with the provision of property management services, etc., provision of leasing
support, provision of support in renovation of portfolio assets, provision of fixed-rent master lease agreements and othervarious support pertaining to internal growth from Marimo, and with also the planned provision of property information,
provision of leasing support and other various support from Alpha Court Co., Ltd. with which a support agreement wasentered into on January 4, 2023, by setting the securing of stable revenue from leasing over the medium to long term as atarget, 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 there
being waves in the number of COVID-19 cases across Japan still today.
Continuing on from the fiscal period under review, marimo REIT shall work to enhance lease business revenue, such as
maintain asset value and competitiveness by implementing strategic value enhancement work, enhance occupancy rate,
raise rent upon tenant replacement, and increase parking revenue and other incidental revenue, in light of the operational
status of portfolio assets, surrounding competitive property trends and other real estate market conditions.
In addition, along with the measures serving to enhance lease business revenue, marimo REIT shall work to enhance revenue
from leasing by striving for reduction of restoration and other repair and construction expenses, environmental
consideration/initiatives and reduction of utilities expenses and other costs by switching 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 December 2022
② Significant Subsequent Events(A) Issuance of New Investment Units
marimo REIT resolved the issuance of new investment units as follows at the meetings of the Board of Directors held on
January 4, 2023, and January 12, 2023, completed payment for the issuance of new investment units through public offering
on January 18, 2023, and completed payment for the issuance of new investment units through third-party allotment (2,143
investment units) on February 14, 2023.
As a result, unitholders’ capital stands at 25,214 million yen and the total number of investment units issued and outstandingat 237,225 units.
(Issuance of New Investment Units Through Public Offering) (Primary Offering)Number of new investment units issued:
42,856 units
Issue price:

126,652 yen per unit

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

5,427,798,112 yen
121,975 yen per unit

Total issue amount (paid-in amount):

5,227,360,600 yen

Payment date:

January 18, 2023

(Issuance of New Investment Units Through Third-Party Allotment) (the “Third-Party Allotment”)
Number of new investment units issued:

2,143 units (upper limit)

Issue amount (paid-in amount):
Total issue amount (paid-in amount):
Payment date:
Allottee:

121,975 yen per unit
261,392,425 yen (upper limit)
February 14, 2023
SMBC Nikko Securities Inc.

(Note) The number of new investment units issued for which payment has been completed is 2,143 units, and the paidin amount is 261,392,425 yen.
(Use of Funds)
The proceeds from the primary offering (5,227,360,600 yen) were allocated to part of the acquisition funds andacquisition-related expenses of the acquired assets described in “(C) Acquisition of Assets” below, and will be allocatedto part of the acquisition funds and acquisition-related expenses of Coop Sapporo Megumino and Nippon Express
Komagane Logistics Center on March 31, 2023.
The proceeds from the issuance of new investment units through the Third-Party Allotment (261,392,425 yen) will beheld as cash on hand to be allocated to acquisition of specified assets or repayment of borrowings in the future.

-6-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
(B) Borrowing of Funds
marimo REIT borrowed 5,710 million yen in total from a loan syndicate with Sumitomo Mitsui Banking Corporation asarranger on January 19, 2023, to allocate to part of the acquisition funds and acquisition-related expenses of the assets (tobe) acquired described in “(C) Acquisition of Assets” below (but excluding Nippon Express Komagane Logistics Center). Details
are as follows:
Lender

Tranche10-A

Tranche10-B

Tranche10-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)

1,500

3,950

260

Interest rate
(Note 3)
Base rate(JBA 3-month
Japanese Yen TIBOR)(Note 4) + 0.700%(floating rate)
Base rate(JBA 3-month
Japanese Yen TIBOR)(Note 4) + 0.800%(floating rate)
Base rate(JBA 3-month
Japanese Yen TIBOR)(Note 4) + 0.200%(floating rate)

Drawdown
date

Maturity
date

Repayment
methodJanuary 19,
2023

July 19,2027(Note 5)Lump-sum Unsecured
repayment
andat maturity unguaranteed

January 19,
2023

July 19,2028(Note 5)Lump-sum Unsecured
repayment
andat maturity unguaranteed

January 19,
2023

July 19,2024(Note 5)Lump-sum Unsecured
repayment
andat maturity unguaranteed

Remarks(Note 1) The loan syndicate consists of Sumitomo Mitsui Banking Corporation, The Hiroshima Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited,
SBI Shinsei Bank, Limited (Note 6), The Gunma Bank, Ltd., and The Chiba 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., Resona Bank, Limited, The Chugoku Bank, Limited, The Nishi-Nippon City Bank, Ltd., The Yamaguchi
Bank, Ltd., Mizuho Bank, Ltd. and The 77 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 3-month Japanese
Yen TIBOR two business days prior to each interest payment date (however, the drawdown date in the case of the first interest calculation
period). For the JBA Japanese Yen TIBOR, please check the website of JBA TIBOR Administration (https://www.jbatibor.or.jp/english/). If the
JBA 3-month Japanese Yen TIBOR falls below 0%, then the base rate shall be 0%.
(Note 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.
(Note 6) With Shinsei Bank, Limited’s trade name change on January 4, 2023, the trade name has changed from Shinsei Bank, Limited to SBI Shinsei
Bank, Limited. The same shall apply hereinafter.

marimo REIT borrowed a long-term loan of 2,440 million yen on January 23, 2023, to allocate to the funds for repayment ofa long-term loan due for repayment on January 23, 2023 (Tranche 5-A) of 2,140 million yen and a short-term loan due forrepayment on January 23, 2023 (Contract No. 4) of 300 million yen. Details are as follows.
Lender

Tranche11

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

Loan amount(million yen)

2,440Interest rate
(Note 2)

Drawdown
date

Maturity
date

Repayment
methodBase rate(JBA 3-month
Japanese Yen TIBOR)(Note 3) + 0.600%(floating rate)

January 23,
2023

January 23,
2026(Note 4)Lump-sum Unsecured
repayment
andat maturity unguaranteed

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

-7-

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
(C) Acquisition of Assets
marimo REIT acquired the following 11 properties (acquisition price: 9,080 million yen) on January 19, 2023, and is scheduled
to acquire the following 2 properties (planned acquisition price: 2,040 million yen) on March 31, 2023.
(Planned)
Appraisal
Property
Acquisition
value
number
Property nameLocation
Sellerprice(million yen)
(Note 1)(million yen)
(Note 4)(Note 3)Acquisition
date orplannedacquisition
date

Rp-19

Starship Ishibashi Handaimae

Ikeda-shi,
Osaka

Marimo Co., Ltd.

1,100

1,170

January 19,
2023

Rp-20

ArtizA Mito ShiraumeMito-shi,
IbarakiMarimo Co., Ltd.

707

781

January 19,
2023

Rp-21

Grand E’terna Hokudaimae II

Sapporo-shi,
Hokkaido

Marimo Co., Ltd.

570

587

January 19,
2023

Rp-22

Alpha Square Minami 4jo Higashi

Sapporo-shi,
Hokkaido

Alpha Court
Co., Ltd.

840

889

January 19,
2023

Cp-14

Coop Sapporo Megumino

Eniwa-shi,
Hokkaido

Alpha Holdings
Co., Ltd.

870

1,020

March 31,
2023

Cp-15

MRR Chitose

Chitose-shi,
Hokkaido

Alpha Project
Godo Kaisha

471

505

January 19,
2023

Cp-16

MRR Iwamizawa

Iwamizawa-shi,
Hokkaido

Alpha Court
Co., Ltd.

572

625

January 19,
2023

Cp-17

MRR Hakodate

Hakodate-shi,
Hokkaido

Alpha Court
Co., Ltd.

390

436

January 19,
2023

Cp-18

MRR Ebetsu

Ebetsu-shi,
Hokkaido

Alpha Holdings
Co., Ltd.

649

692

January 19,
2023

Cp-19

MrMax Isesakiten

Isesaki-shi,
Gunma

Mr Max Holdings
Ltd.

1,461

1,950

January 19,
2023

Cp-20

MIRAKITA CITY HANAKITA

Himeji-shi,
Hyogo

Marimo Co., Ltd.

570

708

January 19,
2023

Hp-02

Hotel Wing International
Hida-Takayama

Takayama-shi,
Gifu

Marimo Co., Ltd.

1,750

1,930

January 19,
2023

Lp-01

Nippon Express Komagane
Logistics Center

Komagane-shi,
NaganoNot disclosed(Note 2)

1,170

1,220

March 31,2023

11,12012,513－

Total (13 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, “O” for office and “L” for logistics, 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 thelargest percentage of the floor area in each building.
(Note 2) The seller is a domestic corporation in Japan, but details are 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, the seller 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 right saleand 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 1, 2022, or December 1, 2022, as thedate of value.

(D) Disposition of Assetmarimo REIT disposed the following property on January 11, 2023.
Property
number
Rt-02

Property name
ArtizA Tsuzuki Chuo Koen
(portion disposed in the 14th FP)

Location

Buyer

Yokohama-shi,
Kanagawa

Not disclosed(Note 3)-8-

Disposition
price(million yen)
(Note 1)

Appraisalvalue(million yen)
(Note 2)

Disposition
date

665

575

January 11,2023

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 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 of theentire building and site stated in the real estate appraisal report with December 31, 2022, as the date of value, rounded down to the nearest
specified unit.
(Note 3) The buyer is a domestic business corporation in Japan, but details are not disclosed as consent for disclosure has not been obtained fromthe buyer.

-9-marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending June 2023 (from January 1, 2023, to June 30, 2023) andFiscal Period Ending December 2023 (from July 1, 2023, to December 31, 2023)
Item

Assumptions

Accounting
period● Fiscal period ending June 2023 (14th fiscal period) (from January 1, 2023, to June 30, 2023) (181 days)● Fiscal period ending December 2023 (15th fiscal period) (from July 1, 2023, to December 31, 2023) (184 days)● The assumption is that marimo REIT will continue to hold the real estate trust beneficiary rights to 50 properties
held as of the date of this document and the real estate trust beneficiary rights to 2 properties scheduled to beacquired in March 2023 through to the end of the fiscal period ending December 2023, and that there will beno 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 of marimo REIT 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 thisdocument, historical data, etc. Operating revenue from leasing of the real estate trust beneficiary rights to 11
properties acquired on January 19, 2023, and the real estate trust beneficiary rights to 2 properties scheduled
to be acquired on March 31, 2023 (hereinafter, the “Newly Acquired Assets”) is calculated on the basis of thecontent of lease agreements provided by the previous beneficiaries or current owner, etc. of the Newly Acquired
Assets, past tenants, market trends, etc., as well as the content of lease agreements in effect as of the date ofthis document or the scheduled 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.
● Gain on disposition of an asset is expected to be 132 million yen for the fiscal period ending June 2023 (14thfiscal period).
● 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. (historical data, etc. provided by the previous beneficiary or current
beneficiary 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 sale of real estate properties) is expected to be 1,150 million yen for the fiscal period ending
June 2023 and 1,234 million yen for the fiscal period ending December 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 2023 are expensed starting from the fiscal period ending June 2024 for the Newly Acquired Assets.
Furthermore, the total amount of fixed asset tax, city planning tax, etc. to be expensed is expected to be 131
million yen for the fiscal period ending June 2023 and 130 million yen for the fiscal period ending December
2023. Of these, the amount of the effect of the acquisition of the Newly Acquired Assets is expected to be 43
million yen for the fiscal period ending June 2023 and 43 million yen for the fiscal period ending December 2023.
● Repair expenses for buildings based on medium- to long-term repair plans formulated by the Asset Manager are
expected to be 48 million yen for the fiscal period ending June 2023 and 36 million yen for the fiscal period
ending December 2023. 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 376 million yen for the fiscal period ending June 2023 and375 million yen for the fiscal period ending December 2023.
● Interest expenses and other borrowing-related expenses are expected to be 176 million yen for the fiscal period
ending June 2023 and 176 million yen for the fiscal period ending December 2023.
● Amortization of investment unit issuance expenses is expected to be 14 million yen for the fiscal period ending
June 2023 and 14 million yen for the fiscal period ending December 2023.
● 5,710 million yen was borrowed with the acquisition of the Newly Acquired Assets on January 19, 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 27,087 million yen at the end of the fiscal period
ending June 2023 and 27,072 million yen at the end of the fiscal period ending December 2023.
● The assumption is the total number of investment units issued and outstanding as of the date of this documentof 237,225 units.
● The assumption is that there will be no change in the number of investment units due to issuance of new
investment units, etc. through to the end of the fiscal period ending December 2023.

Assets undermanagement

Operatingrevenue

OperatingexpensesNon-operating
expenses

Loans

Investment
units- 10 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
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 2023 and fiscal period ending December 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 June 2023 and fiscal period ending December 2023. As such, forthe fiscal period ending June 2023, total dividends in excess of earnings is expected to be 84 million yen, of
which total dividends of allowance for temporary difference adjustments is 1 million yen and total otherdividends in excess of earnings is 83 million yen, and for the fiscal period ending December 2023, total dividends
in excess of earnings is expected to be 97 million yen, of which total dividends of allowance for temporary
difference adjustments is 1 million yen and other distribution in excess of earnings is 96 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 14th fiscal period (fiscal period
ending June 2023) and 15th fiscal period (fiscal period ending December 2023) regardless of the forecast above in theevent that such conditions are not met.
In addition, concerning the fiscal period ending June 2023 and fiscal period ending December 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 June 2023 and fiscal period ending
December 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 June 2023 and fiscal
period ending December 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 registration
statement (submitted on January 4, 2023, as amended).

- 11 -

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

2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
12th fiscal period(As of June 30, 2022)
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- 12 -

13th fiscal period(As of Dec. 31, 2022)

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

1,692,246
2,451,434
21,11990,352－4,255,153

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

18,322,879(2,684,323)
15,638,556
388,731(79,319)
309,412
123,822(36,475)
87,34657,564(22,198)
35,36622,855,945
1,566
38,928,193

3,204
3,204

3,077
3,077

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

145,61516
10,00013,766
169,398
39,100,668

40,57040,57043,095,798

28,72328,72343,384,546

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

(Unit: thousand yen)
12th fiscal period(As of June 30, 2022)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans 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- 13 -

13th fiscal period(As of Dec. 31, 2022)

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

121,106
300,000
3,452,500
268,624955
62,067
264,886
45,021
23,681
4,538,841

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

17,640,000
1,468,455
18,39822
19,126,876
23,665,717

19,725,556

19,725,556(12,152)(619,628)(631,781)
19,093,775(13,305)(659,995)(673,301)
19,052,254

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

666,574
666,574
19,718,828
19,718,828
43,384,546

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
(2) Statement of Income(Unit: thousand yen)
12th fiscal period
From: Jan. 1, 2022
To: June 30, 2022
Operating revenue
Lease business revenue
Other lease business revenue
Gain on sale of real estate
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Taxes and dues
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distributions payable
Interest on tax refund
Insurance income
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary income
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)- 14 -

13th fiscal period
From: July 1, 2022
To: Dec. 31, 2022

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

1,610,249
125,871
105,233
1,841,354

710,463
143,526
2,075
17,3632,700
21,31440,884
938,327
841,257

763,119
164,371
2,159
19,6393,000
27,314
46,403
1,026,008
815,346

17
164
－
681
864

17
147
83
3,692
3,940

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

87,73452,228
11,846
151,809667,476
667,476957(2)
955
666,52053
666,574

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
(3) Statement of Unitholders’ Equity
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- 15 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
13th fiscal period (from July 1, 2022, to December 31, 2022)(Unit: thousand yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of current period

Allowance fortemporarydifference
adjustments

19,725,556(12,152)

Other
deduction fromunitholders’capitalTotal
deduction fromunitholders’capitalUnitholders’capital, net(619,628)(631,781)

19,093,775(1,153)(1,153)(40,367)(40,367)(40,367)

Changes of items during period
Dividends of surplus
Distribution in excess of earnings
attributable to allowance fortemporary difference adjustments
Other distribution in excess ofearnings(1,153)

Net income
Total changes of items during period
Balance at end of current period－(1,153)(40,367)(41,520)(41,520)

19,725,556(13,305)(659,995)(673,301)

19,052,254(Unit: thousand yen)
Unitholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of current period

Total
surplusTotal
unitholders’equityTotal
net assets

692,259692,259

19,786,034

19,786,034(692,205)(692,205)(692,205)(692,205)(1,153)(1,153)(40,367)(40,367)

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

666,520

666,520

666,520

666,520

Total changes of items during period(25,684)(25,684)(67,205)(67,205)

Balance at end of current period

666,574

666,574

19,718,828

19,718,828- 16 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
(4) Statement of Distribution of Cash12th fiscal period
From: Jan. 1, 2022
To: June 30, 2022
I.

Unappropriated retained earnings

II. Addition of dividends in excess of earnings
Of which,
Allowance for temporary difference adjustments
Other deduction from unitholders’ capital

13th fiscal period
From: July 1, 2022
To: Dec. 31, 2022

692,259,231 yen

666,574,271 yen

41,520,816 yen

42,674,172 yen

1,153,356 yen

1,153,356 yen

40,367,460 yen

41,520,816 yen

733,726,642 yen

709,121,714 yen[3,817 yen]

[3,689 yen]692,205,826 yen

666,447,542 yen[3,601 yen]
1,153,356 yen[3,467 yen]
1,153,356 yen[6 yen][6 yen]40,367,460 yen

41,520,816 yen[210 yen][216 yen]

53,405 yen

126,729 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.

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 666,447,542 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 42,674,172 yen, which isthe amount roughly equivalent to 14%
of depreciation for the fiscal period
under review, as dividends in excess ofearnings. This resulted in dividends inexcess of earnings per unit of 222 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.

III. Dividends[Dividends per unit]
Of which,
Dividends of earnings[Dividends of earnings per unit]
Allowance for temporary difference adjustments[Dividends in excess of earnings per unit
(attributable toallowance for temporary difference adjustments)]
Other dividends in excess of earnings[Dividends in excess of earnings per unit
(attributable toother dividends in excess of earnings)]
IV. Retained earnings carried forward
Method of calculation of dividends- 17 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
(5) Statement of Cash Flows(Unit: thousand yen)
12th fiscal period
From: Jan. 1, 2022
To: June 30, 2022
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
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- 18 -

13th fiscal period
From: July 1, 2022
To: Dec. 31, 2022

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

667,476
313,262
11,846(17)87,734(742)
124,462
54,544(1,133)(14,266)
21,7962,206
532,398
17,353
13,5791,830,501
17(87,622)(910)
1,741,986(10,380,371)
(266)
(0)
(10,380,637)(684,460)－(0)(684,460)

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

300,000－
2,015,000(2,030,000)－(734,097)(449,097)
608,428
1,992,774
2,601,203

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
(6) Notes on the Going Concern Assumption
Not applicable.

- 19 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 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
10–29 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 54,674 thousand yen for the 12th fiscal
period and 2,244 thousand yen for the 13th 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.
- 20 -

marimo Regional Revitalization REIT, Inc. (3470) Financial Report for the Fiscal Period Ended December 2022
[Additional Information][Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments]
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.

13th fiscal period (from July 1, 2022, to December 31, 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.

- 21 -