16 th Fiscal Period Investor Presentation

November 1, 2023 to April 30, 2024

MIRAI Corporation

AM Company: Mitsui Bussan & IDERA Partners Co., Ltd.
Security Code: 3476 https://3476.jp/en

Executive Summary
16 th FP(April 2024)

Results

1

Net income before income taxes
per unit (Note)

DPU

1,191 yen(+83 yen from the forecast)

Newly acquired assets

External
Growth11.9 B yen(5 properties)

Office occupancy rate

Portfolio
Management

Finance / ESG

97.2%

1,150 yen

188 million yen(±0 yen from the forecast)(51 million yen increase)

Pipeline

Approx.

+Internal reserves

22 B yen◼ 16th FP: Acquired ”Smart Defense & Offense with Aligned
Interest” properties that exceed the implied cap rate
through the first PO in two years(6 properties)◼ Pipeline: Considering a variety of asset types with a balance of
upside and stability

Hotel variable rent

◼ Portfolio strategy: Aim to increase upside potential byconstructing a portfolio based on asset type & their cash flow
characteristics

42 million yen◼ Office: Steady progress in backfilling the bay area office(As of April 30, 2024)(+60.4% from theprevious period)

Average interest rate

0.66%

ESG

PRI participation◼ Debt raising: Lenders’ supportive stance unchanged, prepare
for rising interest rates and continue to manage finances
based on a balance between risk and cost

(As of April 30, 2024)(Signed April 2024)◼ ESG: In addition to acquisition of certifications and participation
in initiatives, promote sustainability efforts throughout our AM
business◼ Hotel: Variable rents increased due to switching from fixed
rent to variable rent (2 hotels) and expansion of inbounddemandNote: Net income before income taxes per unit is calculated by dividing the net income before income taxes by the number of investment units outstanding at the end of the period (1,907,440 units). The same applies hereinafter.

1

2

目次
Section 1. Operational Highlight

・・・・・

P3

Section 2. Financial Summary & Forecasts

・・・・・ P25

Section 3. Portfolio Management

・・・・・ P31

Section 4. Finance / ESG Initiatives

・・・・・ P36

Appendix.

・・・・・ P422

3

Section 1.
Operational HighlightOperational Highlight

Progress of Mid-term Management Plan

MIRAI
Mid-term Management Plan
2025

4

DPU

1,150 yen 1,185

Forecast DPU(Result for the FP endedApril 2024)
Target:yen(FP ending Oct. ’24)

1,210 yen

1,300 yen level (FP ending Apr. ’25)
NAV per Unit

52,220 yen(as of April 30, 2024)

Smart Defense

Offense with
Aligned Interest

In an uncertain market
environment, “smart”
defense to prepare forthe next growth

Going on the offensive
for disciplined growth
while “sharing” views
and perspectives withinvestors

Target: over

53,000 yen

since thestart of Midterm Plan
+

1,550
yen

(+3.1%)

AUM

178.2 B yen

since thestart of Midterm Plan(as of April 30, 2024)+13.6 Byen(+8.3%)

Target:Note: Targets are calculated based on certain assumptions as of June 17, 2024 and is not a guarantee of future achievement. The same applies hereinafter.

200 B yen

Aim to achieve thetarget with hotel
variable rents andrecovery in officeoccupancy as
growth drivers
Continue to
implement measures
to increase portfolio
value to achieve thetargetAdhere to a policy of
selective investment
Aim for external
growth that leads toincreased
unitholders’ value
4Operational Highlight

Mid-term Management Plan: DPU

5

Reached forecasted DPU without drawing down internal reserves and further increased internal
reserves to prepare for the future
Actual Results for the 16 th FP

Forecast DPU (Note)

Net Income before
Income Taxes per Unit

DPUInternal Reserves

17 th FP (ending Oct. 2024)

1,191 yen

1,150 yen

188 million yen

1,185 yen

+83 yen (+7.5%)±0 yen (-%)

98 yen per unit

from the forecast

from the forecast+35 yen (+3.0%)
from the previous period

Internal
reserves &tax burden

42 yen1,191 yen

ActualVariable hotel rents
upswing, etc.

+

80 M yen

1,150 yen

(Reversal ofinternal reserves)

1,108 yen

1,108 yen
Forecast(Reversal ofinternal reserves)

158 M yen

Forecast

188 M yen

57 M yen
Forecast

ActualReversal ofinternal reserves(80) M yen -> 0 yen

ActualPreparation for DPU
stabilization+

51 M yen increase

18 th FP (ending Apr. 2025)

1,210 yen
+25 yen (+2.1%)
from the previous period

Distribution on
EPU basis(No reversal of internal
reserves expected)

Note: This forecast is calculated based on certain assumptions as of June 17, 2024 and subject to change due to conditions such as change in rent income thorough tenant turnovers, acquisition and disposition of assets, and additional unit issuance. The forecast should not be construed as
guarantee of DPU. The same applies hereinafter.

5

Operational Highlight

Mid-term Management Plan: NAV per Unit

6

Unrealized gain steadily increased due to effects of multiple asset replacements and acquisition ofundervalued properties+1,550 yen

Total of asset replacement effects +860 yen(+3.1% since the startof Mid-term Plan)
Acquisition of Properties
with Unrealized Gain

Asset Replacement Effect (a)Asset Replacement Effect (b)

+160円

+700円

+660 yen(Mach 2023)(Properties acquired in the 5th PO)(Disposition of CH Nagano/Orico Hakata+ Acquisition of MIT Sendai)(Dilution due to PO)

52,230 yen
50,670 yen

52,630 yen

53,000 yen
52,220 yen

51,170 yen

April 2022

October 2022

April 2023

October 2023

April 2024

Target12th FP

13th FP

14th FP

15th FP

16th FP(Mid-term Plan)

Unrealized Gain

Unrealized Gain

Unrealized Gain

Unrealized Gain

Unrealized Gain11.2 billion yen

12.1 billion yen

14.0 billion yen

14.7 billion yen

15.5 billion yen
6Operational Highlight

Mid-term Management Plan: AUM

7

Execute external growth through PO and acquisition of “Smart Defense & Offense with Aligned
Interest” assets that outperform implied cap rate
Newly Acquired Assets (16 th FP)
OfficeRetailChanges in AUM
IPO

Hotel

Growth phase 1

Spread of COVID-19/
Asset replacement

Growth phase2(billion yen)200

Acquisition through PO
3rd PO
Dec. 2019

4th PO
Dec. 2021

5th PO
Nov. 2023

200

2nd PO
Oct. 2018

MI Terrace
Hamamatsu

MI CubeShinsaibashi

Kuretake Inn
Hotel Wing
Hotel Kuretakeso
PremiumInternational SelectHiroshima
Nagoya Nayabashi Nagoya Sakae
OtemachiAverage Appraisal NOI Yield

Total Acquisition Price

4.8%

11.95 billion yen

Implied Cap Rate (Note 1)

Total Appraisal Value

4.4%(Note 2)13.73 billion yen

150

1st POMay 2018100

50(Note 3)Note 1: “Implied cap rate” means real estate yield demanded by the investors based on the unit price, which is calculated by the following formula. The same applies hereafter.
Implied cap rate = actual NOI (annualized) for the current period / MIRAI’s market capitalization + net interest-bearing debt at the end of the current period (total interest-bearing debt on MIRAI’s balance sheet + Leasehold and guarantee deposits received - cash and cash deposits intrust)
Note 2: Calculated based on actual results for the fiscal period ended April 30, 2023 (the 14 th fiscal period) and market capitalization as of November 2, 2023.
Note 3: As of April 30, 2024.

7

Operational Highlight

Changes in the Market Environment and Management Strategies

8

Aim to realize return on asset that outperform increases in leasing business expenses and financing
costs

Revenue

Asset◼ Aim to improve upside potential of hotel
variable rents and contracts maturing within
two years✓ Weighted average lease expiry (WALE)
5.9 years (Note 1)✓ Variable (Note 3) + maturity in 2 years or less
51.5%

Debt
Debt

◼ Continued to control costs through duration /floating ratios adjustment while paying
attention to the risk of rising interest rates✓ Weighted Average Debt Expiry (WADE)
3.8 years (Note 2)✓ Floating + maturity in 2 years or less
35.9%

Revenue◼ Continuous consideration of portfolio replacement
Flexible control of fixed/variable CF characteristics◼ No significant change in duration and spreadlevels which are indicators for the lender support

EquityExpenses

Equity + External Growth

Expenses◼ Watching the level of investment unit prices moreclosely than before in light of the impact of risinginterest rates◼ Recover cost increases due to inflation throughoperational efforts utilizing MIRAI’s AM
capabilities◼ Leverage support from sponsor Mitsui & Co. aswell: Switching electricity supplier (Shinagawa)External Growth◼ Promote external growth through asset
acquisitions that exceed implied cap rates andPOs to achieve AUM target in the mid-term
management plan

Note 1: “Weighted average lease expiry” is calculated by dividing the remaining days until the maturity date of lease agreements as of April 30, 2024 of portfolio assets by 365, weighting by the annual rent, and rounded down to the first decimal place.
Note 2: “Weighted Average Debt Expiry” is calculated by dividing the remaining days until the repayment date of borrowings or redemption date of investment corporation bonds as of April 30, 2024 for MIRAI’s interest-bearing debt by 365, weighting by the outstanding interest-bearing debt,
rounding down to the first decimal place.
Note 3: Of the variable rents included in “Variable,” the variable rents for hotels are calculated based on the sum of the forecasts for the 17th and 18th fiscal periods. The same applies hereafter.

8

Operational Highlight

Measures against the Risk of Rising Interest Rates

Revenue

Expenses

Debt

External9
GrowthEquityInternal growth to cover the increase in debt cost from higher interest rates
Lease Contracts and Interest-bearing Debt

DPU Sensitivity (Note 2)(ALM = Asset Liability Management)
AUM

178.2 B yen(Note 1)

10.3 B yen/year

WALE

5.9 years(Existing 3 properties: 67.3% of 2019)

Lease
Contracts

Maturity beyond 2 years 48.5%

Interestbearing Debt

91.9 B yen

Debt Cost

0.78 B yen/year

Interest-

bearing Debt

3.8 years(Variable + maturity in 2 years or less)

51.5%

Maturity in 2 years or less

Assumptions Underlying
Forecasts◼ Refinance: 1.2%◼ Floating rates : 0.4%
(3M TIBOR)

Maturity beyond 2 years 64.1%

Upside potential

Variable rent

6.1%

45.3%

Downside risk

Rate of Increase in Leasing
Business Revenue
+1%

+2%

+3%

+4%

+0.1%

+5

+19

+33

+47

+0.2%

-3

+10

+24

+38

+0.3%

-11

+2

+16

+30

+0.4%

-20

-6

+7

+21

Only variable rents

Floating + maturity in
2 years or less

35.9%
Maturity in 2 years Floating rateor less 21.2%

14.7%

Rate of Increase in Leasing
Business Revenue

Interest Rate
Increase Relative
to the Forecasts

WADE(Note 1)

Upside potential
Variable + maturity in
2 years or lessInterest Rate
Increase Relative
to the Forecasts

Leasing
Business
Revenue

Hotel variable rents◼ 17 th FP forecast: 149 M yen◼ 18 th FP forecast: 188 M yen-> 338 M yen per year

+3%

+6%

+9%

+12%

+0.1%

-3

+1

+6

+11

+0.2%

-12

-7

-2

+2

+0.3%

-20

-15

-10

-5

+0.4%

-29

-24

-19

-14

Note 1: ”Leasing Business Revenue” and “Debt Cost” are the sum of the forecasted figures for the 17th and 18th fiscal periods. “Debt Cost” is the sum of interest expenses, interest expenses on investment corporation bonds, amortization of investment corporation bond issuance costs, andborrowing related expenses.
Note 2: The table “DPU sensitivity” is calculated by dividing the difference per period between the increase in leasing business revenue, which is the sum of the upside potential (variable + maturity in 2 years or less) or variable rents multiplied by the rate of increase, and the increase in
expenses, which is the sum of the downside risk of interest-bearing debt (floating + maturity in 2 years or less) multiplied by the interest rate increase relative to the forecasts by the number of investment units outstanding (1,907,440 units).

9

Operational Highlight

Measures against Inflation in Leasing Business Expenses

Revenue

Expenses

Debt

EquityExternal
10
GrowthRecovered cost increases from inflation through operational efforts utilizing MIRAI’s AM capabilities
Leasing Business Expenses
Results for 16 th FP (Note)
Expenses

Outsourcing
services

NOI

Expense ratio

32.2％

6.8%

9.8%

7.9%

1.5%

5.9%

0.3%

Utilities
expenses

NOI

Taxes and
dues

Loss
insurance
premium◼ September 2024: First contract renewal in five years◼ Plan to curb the cost increase by reviewing the terms
and conditions of insurance coverage throughcooperation with Mitsui & Co. Insurance (agent)

33.1％

10.7%

Outsourcing services
Taxes and dues
Loss insurance premium(Utilities revenue > Utilities expenses)◼ Cost reductions are expected due to the switch of power
suppliers:◼ 2024: Fixed asset tax reassessments (every three
years)◼ The increase in the assessed value of land is offset by
the depreciation of buildings over time
Tax increase is expected to be limited

Expense ratio
6.6%◼ Recent net utilities expenses are positive as cost increases
are passed on to tenants

Shinagawa -2.0%（supplier: Mitsui & Co.) / Kawasaki -12.4%

Forecasts for 18 th FP (Note)
Expenses◼ Increased requests from some PM/BM companies toraise outsourcing fees due to rising labor costs, etc.
◼ Shinagawa: Cost reduction of more than 10% byreviewing BM coverage

8.2%

1.9%
0.7%

5.0%

Utilities expenses
Repair expenses
Other expenses for leasing businessNote: Since new acquisitions (5 properties) were made during the 16th fiscal period, each figure is calculated for the 38 properties held at the beginning of the 16th fiscal period.

10

Operational Highlight

Portfolio Strategy
External Growth Strategy: for the time being

Revenue

Expenses

Debt

External
11
GrowthEquityAim to increase upside potential by construction of portfolio based on cash flow characteristics
Overall Portfolio CF
Status (Based on Rent)

Asset Types

Diversification(Based on
Acquisition Price)

Cash Flow
Characteristics

Breakdown of
Lease
Contracts(Based on Rent)
Variable rent
Within 2
years

OfficeRetail

Hotel

50.7%

21.0%

18.3%

Others(Residence / New Type, etc.)

6.1%

10.0%
48.5%

◼ Rent increase tend to lag
behind the businessdecisions of large
companies◼ Mid-Sized: Rents can beraised in areas with tightsupply and demand◼ Urban: Rents rise as
footfall into the city
center recover◼ Community-based:
Assets that support
portfolio stability◼ Fixed rent: Pursue upsideby switching to variable
rent at contract renewal,
etc.

◼ Assets that support
portfolio stability

Upsidepotential◼ Variable rent: Rents
increased due to recent
increase in inbounddemand51.5%

Aim toraise
variableratio
Upsidepotential

84.9%

Upsidepotential

25.2%

Variable
ratio

18.7%

45.3%

Upside potential
Upsidepotential

12.7%

Variable +maturity in 2 years or lessAim for mid-50%

(Note)

Beyond 2
years

Note: The policy is as of June 17, 2024 and is not a guarantee of future achievement. The same applies hereinafter.

11

Operational Highlight

External Growth Strategy: Pipeline Status

Revenue

Expenses

Debt

EquityExternal
12
GrowthDiverse assets under consideration with a balance of upside and stability in mind
Preferential negotiating rights held +sponsor deals (Note 1)

Total: approx. 22 billion yen (Note 2)

Office 58%

Maturity beyond 2 years 37%

Retail 5%

Maturity in 2 years or less 31%

Sponsor 25%
Mid-sized office
Location: Yokohama

Hotel
Location: Tokyo

CF: Maturity in 2 years
or less

CF: Maturity beyond 2 years* Rent increase clause is available after acertain period of time

CF: Maturity in 2 years
or less

Variable rent 32%

Asset Manager 75%

Mid-sized office
Location: Tokyo

Mid-sized office
Location: Nagoya

Hotel 37%

SponsorRetail (land)
Location: Hokuriku
CF: Maturity beyond
2 years

CF: Variable rent
Sponsor

Hotel
Location: North Kanto
CF: Maturity beyond
2 years

Note 1: Although the properties listed are those for which MIRAI holds preferential negotiating rights or for which MIRAI has received specific information from the sponsors, the acquisition policy may change depending on future negotiations, etc., and there is no guarantee that MIRAI will
acquire the relevant properties.
Note 2: The total price is the sum of the prices estimated by MIRAI’s asset manager, Mitsui Bussan & IDERA Partners Co., Ltd. (hereinafter “the Asset Manager”) based on the information on properties held by MIRAI as of June 17, 2024. There is no guarantee that MIRAI will acquire theproperty at the said price in the future.

12

Operational HighlightMarket Outlook &External Growth Strategy: Investment Strategy

Revenue

Expenses

Debt

EquityExternal
13
GrowthOffice◼

Tokyo metropolitan area: Vacancy rate has peaked out and rents are showing signs of bottoming out / Other metropolitan areas (Osaka, Nagoya, Fukuoka, etc.):
Occupancy rate is relatively stable
In the Tokyo metropolitan area, the teleworking ratio is decreasing and people are returning to the office / Demand for office is improving as the number of workers in
the metropolitan area is also increasing
Occupancy rate in the past has lagged behind the business sentiment index (DI) of large companies, and now the DI is improving due to inflation and other factors◼
◼

Proactively considering Mid-sized offices that can meet a wide range of tenant demand and core regional cities with a stable supply-demand balance
Rents can rise in line with inflation in areas with relatively short contract terms and tight supply and demand◼

MarketOutlook

Investment
Strategy◼

Rents by Class (Central Tokyo)

Vacancy of Mid-sized Office (by Area)

BOJ’s DI and Office Occupancy Rate

(19/01 = 0)
4.5

40,0003.0

30,000Class A
20,000Class BClass C

Sendai

0

-3.0

08/Q1

12/Q1

16/Q1

20/Q1

24/Q1

Source: Prepared by the Asset Manager based on “Office Rent Index” by
Sanko Estate

Nagoya
Osaka

0.0
-1.5

04/Q1

Fukuoka

1.5

10,00000/Q1

23 Wardsof Tokyo

Sapporo
19/01

20/01

21/01

22/01

23/01

24/01

Source: Prepared by the Asset Manager based on “Office Market Report” by
Sanko Estate

40

99%

20

97%

0

95%

-20
-40

93%

-60

91%

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

50,000DI (Large Manufacturers)
Office Occupancy

DI (Large Non-Manufacturers)

Source: CBRE, Q1 2024

13

Operational HighlightMarket Outlook &External Growth Strategy: Investment Strategy

Revenue

Expenses

Debt

EquityExternal
14
GrowthVacancy Rate in Major Commercial
Areas (YoY)

Retail10%MarketOutlook◼ In major commercial areas, vacancies are being filled by businesses (luxury brands, reuse, etc.) that
benefit from the normalization after the COVID-19 disaster and the resurgence of inbound demand◼ Stable and increasing trend in year-on-year retail sales for the past two years◼ Continued inbound demand due to yen depreciation, especially in department stores

8%
6%

4%
2%
0%

Investment
Strategy◼ Actively considering urban retail facilities where demand is expected to increase due to the recovery infootfall◼ Fixed rent assets, which support CF stabilization, are also targets for consideration, but aim to acquire
at discount, while keeping an eye on inflation

Investment
Strategy2024 Q1

Source: Prepared by the Asset Manager based on “Retail Market View”
by CBRE

Total Number of Guests

Hotel
MarketOutlook2023 Q1(Compared to the Same Month in 2019)◼ Total number of guests recovered to the level before the COVID-19 disaster and remained stable◼ Number of foreign overnight guests remained strong on the back of inbound demand due to the weakyen
◼ New supply of budget hotels limited, partly due to rising construction costs

50%
0%
-50%
-100%

◼ Continued focus on variable-rent hotels with potential upside◼ For fixed-rent hotels, consider properties with lower prices or shorter remaining contract terms that canbe switched to variable rents for upside potential

20/01

21/01

Total number of guests

22/01

23/01

24/01

Number of Japanese guests

Number of foreign guests

Source: Prepared by the Asset Manager based on “Lodging Travel
Statistics Survey” by Japan Tourism Agency

14

Operational Highlight

Portfolio Management: Office (1/2)

Revenue

Expenses

Debt

External
15
GrowthEquityProperties in the bay area maintained high occupancy rates due to steady progress in backfilling after
a major tenant moved out
Large-scale Office Occupancy

Acquisition Price

ShinagawaSeasideParktower

Kawasaki Tech
CenterShinjuku
Eastside
SquareTokyo Front
Terrace20.2 B yen

23.1 B yen

10 B yen

10.5 B yen(63.4%)(100.0%)(5.0%)(50.2%)

100.0%

98.7%

100.0%

93.0%(% ownership)

Occupancy Rate(as of April 30, 2024)

Shinagawa Seaside
Parktower

Occupancy Rate Outlook
100%

Cumulative contractedarea since COVID-19(After January 2020)(Note 1)5,233 sqm

95%
90%

Backfilling progresses after MercedesBenz moved out
100.0%
95.2%
100% recovery expected when application
is taken into account

86.6％

85%

“Shinagawa SS” area (Note 2)80%(as of April 30, 2024)

24/04

Tokyo Front
Terrace
Cumulative contractedarea since COVID-19(After January 2020)(Note 1)

24/05

24/06

24/07

24/08

24/09

24/10

Changes in Tenant Diversification (Number of Tenants)
As of Oct. 31,
2019

As of Oct. 31, 2024
(Forecasts)

Shinagawa Seaside Parktower

23

29

Tokyo Front Terrace

22

31

Total

45

60

Property

Tenants moved in after 2023
Property

Area (Note 1)

Shinagawa

1,059 sqm

Shinagawa

Tenant diversification has progressed due toan increase in the number of smaller parcels

Type of Business

Former Location

Reason forrelocation

Manufacture and sales of apparel

GotandaBuilding Demolition

539 sqm

Service industry

Nampeidai, Shibuya-ku

Office consolidation

Shinagawa

318 sqm

Manufacturing industry

Yashio, Shinagawa-ku

Expansion relocation

Occupancy Rate Outlook

Shinagawa

96 sqmDental clinic-

New opening

100%

TFT

101 sqm

Aviation-related business

Higashi Shinagawa

Expansion relocation

TFT

116 sqm

Service industry

GotandaBuilding Demolition

TFT

503 sqm

Insurance agency business

Higashi Shinagawa

Expansion relocation

TFT

133 sqm

Transportation business

Higashi Nihonbashi

Expansion relocation

TFT

116 sqm

Service industry

Higashi Shinagawa

Expansion relocation

TFT

118 sqm

Manufacture and sale of pet supplies

GotandaBuilding Demolition

476 sqm

Import and sales of medical
equipment

Katsushima,
Shinagawa-ku

Reduction relocation

95%
90%
85%

4,119 sqm

Leasing of Offices in the Bay Area (based on Floor Area)

80%

581 sqm Contracts signed
Remained above the area average
94.1%

93.0%

91.0％
“Tennozu” area (Note 2)(as of April 30, 2024)

24/04

24/05

24/06

24/07

24/08

24/09

24/10

TFT
Note 1: The area is the figure equivalent to the quasi co-ownership interest.
Note 2: The average occupancy rates for areas other than Shinjuku are calculated based on surveys conducted by the Asset Manager and may differ from actual figures.

15

Operational Highlight

Portfolio Management: Office (2/2)

Revenue

Expenses

Debt

EquityExternal
16
GrowthStable occupancy in mid-sized offices and steady rent increases in areas with tight supply anddemandOverall Office (Large-scale + Mid-sized)
Mid-sized Office Topics
Occupancy Rate / Rent per Tsubo

58.9%

22/04

BizMiiX
Yodoyabashi

Ehime Building/ Hiroshima

80.2%

22/10

70.4%

85.1%

23/04

93.6%

NOI Result(16th FP)

100%

96.5%

97.5%

96.8%

(from 15th FP)

90%

93.5%

93.8%

92.8%

14,59014,64036 M yen
23/10

24/04

Highest occupancy rate since conversion

6 M yen80%

As of June 2024

3rd-4th floor

3rd floor

Tenant move-out

Offer made to a new tenant(1,138 sqm /(Branch of a major company)

14.0%

Rent level +◼ Examples of Rent Increases (Avg. Rent per Tsubo/Month (Note 1) )At Acquisition

As of April 30, 2024

TCA Building(Osaka)9,060 yen(January 2021)+9.1%

Ehime Building /Hiroshima

10,620 yen(January 2022)+4.4%

14,82018,00095.3%
16,000+April 2024

24% of the property)

99.0%

14,46014,00070%
12,00060%

50%

10,000Results for 15th FP

Results for 16th FP

Forecasts for 17th FP

Forecasts for 18th FP(Oct. 2023)(Apr. 2024)(Oct. 2024)(Apr. 2025)

9,880 yen
Avg. rent per tsubo (forecasts)

11,090 yen

Avg. rent per tsubo (actual)

Avg. occupancy rate during the period (actual)
Rent generating occupancy (actual)(Note 2)

Note 1: Avg. rent per tsubo = Monthly rent as stipulated in the lease agreement / leased area (tsubo). Figures are rounded down to the nearest 10 yen. The same applies hereinafter.
Note 2: Rent generating occupancy rate = leased area * (actual rent / monthly rent) / leasable area. Actual rent is the rent actually received from tenants after taking into account free rent, rent holidays, etc.

Avg. occupancy rate during the period (forecasts)
Rent generating occupancy (forecasts)

16

Operational Highlight

Portfolio Management: Retail (1/2)

Revenue

Expenses

Debt

EquityExternal
17
GrowthExpect continuous generation of upside rents in addition to rent increases in urban properties
Portfolio Analysis Based on Rent Type, etc.

1 property
4.9 B yen

Mi-Nara2 properties
12.3 B yen

THINGS Aoyama
AEON Kasai

4 properties
9.1 B yen

Shibuya WE
MIC Sendai
MIC Machida
MIC Shinsaibashi◼ Weighted average lease
expiry (WALE): 2.4
years

CAINZ Hikone
MV Takatori
Tsurumi Fuga
BM Ginan◼ Hikone / Takatori:
Includes clause for rent
review in case ofchanges in economic
conditions◼ Ginan: Periodic rent
review clause included

Other
Urban

Other
4 properties
Community
10.9 B yen-basedFeatures◼ Variable rent ratio:
38.5%(Results for 16th FP)◼ Aoyama: Sales-linked◼ Kasai: Food department
sales-linked

Other

Variable

Fixed +
UpsideSubject
Properties

UpsideAUM

Rent Increase

Rent Type,etc.

Property Topics
ShibuyaWorld East
Building◼ Tenant replacement: 3F ＋21.7％◼ Tenant replacement: 10F ＋7.1％◼ Rent increase upon renewal:
5F ＋10.4％

MI CubeShinsaibashi◼ Rent increase upon renewal:
B1F ＋7.1％
A restaurant tenant since pre-COVID
Business performance is improving due
to recovering footfall

THINGS
Aoyama◼ Sales for Feb. to Apr. 2024: 147% over2019
Upside rent upon achieving same levelof sales as in 2019 (subject period: FebJan)

AEON Kasai◼ Reopening in Nov. 2023
Strong sales in food department
Variable rents were generated in 16th
FP (Apr. 2024)

TsurumiFuga 1◼ End of October 2024: Renewal project
Seiyu directly operated stores on the 35F to be refurbished and several large
stores are scheduled to open
17

Operational Highlight

Portfolio Management: Retail (2/2)

Revenue

Expenses

Debt

EquityExternal
18
GrowthMi-Nara: NOI exceeded 100 million yen for two consecutive periods due to stable rent and cost
reduction
Performance

Operational Topics

Monthly Rent

◼ New openings in 16 th FP

16 th FP
Variable rent ratio(million yen)

130

(November 2023 to April 2024)

38.5%

⚫

◼ Future Upside

80⚫

Considering replacing large stores⚫

Goldfish / Ikimono Museum Revitalization
Measures⚫

Tie-up project with a hotel in Nara City⚫

Vacant area: 3,083 sqm (7.1%)

30

May

Jun.

Jul.

Aug.
FY2020Results
Monthly Rent

NOI

Sales

3 stores /475 sqm (1.1%)

Sep.

Oct.

Nov.

FY2021Dec.

FY2022

YoY

70.3 M yen+9.6 M yen(Avg. for 16 th FP)（+15.9%）108 M yen

+34 M yen

(16 th FP)（+46.8%）9.31 B yen+0.53 B yen(FY2023)（+6.2%）

Jan.

Feb.

Mar.

Apr.

FY2023

Remarks

Newly Opened Stores (16 th FP)

Variable rents increased by 5.6
million yen (+26.2%) due to thecontribution of the Goldfish /Ikimono (animal) Museum
Exceeded 100 million yen again
following the 15 th FP, which recorded
the highest since the re-renewal+32,000 YoY monthly visitor
increase contributed to the increasein salesWAKUWAKU HIROBA(Local products shop)

Sweets department store Yoshiya

18

Operational Highlight

Portfolio Management: Hotel (1/2)

Revenue

Expenses

Debt

External
19
GrowthEquityCumulative RevPAR for Jan-Apr 2024 exceeded pre-COVID-19 performance for many hotels
Rent Type and Cash Flow Characteristics
Classification

Fixed Rent

Portfolio Diversification

Fixed Rent + Upside

Minimum Guaranteed+ Variable Rent

% of excess GOP
above plan

Actual GOP –(minimum guaranteed
rent + operator fee)

Total

Calculation
Methodof Variable
Rent-

Annual Rent

940 M yen

267 M yen

637 M yen

1,845 M yen- M yen(0.0%)

5 M yen(2.1%)

338 M yen
(53.1%)

344 M yen
(18.7%)

8 / 15.6 B yen(48.1%)

2 / 3.9 B yen(12.0%)

5 / 13.0 B yen(39.9%)

15 /32.6 B yen

1,298

374

718

2,390

(Note)(Variable)
Number of
Hotels / AUM
Number of
Rooms

Subject Hotels◼ Daiwa R Akita◼ Super H Sendai◼ Super H Omiya◼ Comfort Kitakami◼ Wing Ueno
◼ Wing Sakae◼ Kuretake Nayabashi◼ Kuretakeso
Hiroshima◼ Sunroute Niigata◼ EN HOTEL Ise*

Area Diversification
Chugoku
Koshinetsu

Osaka area

◼ Smile Naha
◼ Smile Hakata◼ Smile Sakae◼ Smile Osaka◼ Smile Kyoto

4 hotels / 5.2 B yen of the fixed
rent hotels will have under contract
expiry before 2027

KyushuOperator Diversification
The COURTTokyo area

Daiwa House
Realty Management

GreensHospitality
Operations

Sotetsu Hotel

Based onacquisition
price

Okinawa

Nagoya area Management
Super Hotel

Based onacquisition
price

Kuretakeso

TohokuMinacia

Performance of Fixed Rent Hotels
Hotel Wing
Ueno

◼ RevPAR: ＋35.1％ from FP ended Apr. 2019
◼ Inbound ratio: Approx. 80%

Hotel Wing
Sakae

NEW

Kuretake
Nayabashi

NEW

Kuretakeso
Hiroshima◼ RevPAR: ＋20.4% YoY◼ RevPAR: ＋15.7% YoY◼ Provided as a COVID-19 recovery
accommodation facility until Apr. 2023
NEW ◼ Inbound and business demand is gradually
recovering

Note: Calculated based on lease agreements as of April 30, 2024. For “Fixed Rent + Upside” and “Minimum Guaranteed + Variable Rent” properties, calculated based on the sum of the forecasted figures for the 17th and 18th fiscal periods.

19

Operational Highlight

Portfolio Management: Hotel (2/2)

Revenue

Performance of Variable Rent Hotels

Expenses◼ Two existing hotels other than Naha (Hakataeki-Mae/Nagoya Sakae) recorded the same levelof RevPAR as before COVID-19

RevPAR for Variable Rent Hotels

6.0

3.9 4.0
2.7

4.0

0.4

2.0

1.0 1.4

1.7 1.4 1.7

5.4 5.5

4.7 4.8 5.1

6.1

March 2024
Osaka / Kyoto
Operator change

0.0

Variable Rent
(million yen)

Naha

Hakataeki-Mae◼ 16th FP: Average RevPAR 8,330 yen◼ Same level as before COVID-19 (FP ended Apr.
2019)

NagoyaSakae◼ 16th FP: Average RevPAR 6,200 yen◼ Levels higher than before COVID-19 (FP ended
Apr. 2019)

Osaka
Tennoji◼ Variable rent generated in the first month ofrebranding◼ Efforts underway to increase awareness after
opening of new operator

150
Sluggish operation
due to COVID-19

100

50

0

16
12 35 9 13
25 22
26

Naha

Hakataeki-Mae

Naha:
Provision as a COVID-19
recovery accommodation
facility(Jan. 2022 to May 2023)
77
0.1 10 15

15
17 5
49
45
38
37
17 10 359
8

Nagoya Sakae

Note: RevPAR are rounded down to the nearest 10 yen.

Kyoto

16
1
18

9
13
59 51 5548
31
47 15 10
25
19
18
8

Osaka Tennoji

External
20
Growth◼ Feb. 2024: Inbound surged due to the effect ofChinese New Year
◼ First variable rents generated sincetermination of use as COVID recovery facility(thousand yen)

4.3 4.6

EquityIndividual Hotels (Fixed + Upside / Variable Rent)◼ March 2024: New operator began operations in Osaka/Kyoto

8.0 6.7 7.4 6.6 7.0 6.0

Debt

Kyoto Karasumagojo

Karasuma-gojo◼ Variable rent generated in the first month ofrebranding◼ Expect continued strong inbound demand

Sanroute
Niigata◼ Mar. 2024: Upside rent (5.6 million yen)
◼ Generated first time since 2019 (subject period:
Apr-Mar)

EN
HOTEL
Ise

◼ Jan-Apr. 2024: Average RevPAR 8,530 yen◼ Expect generation of upside rent (subject period:
Jan-Dec)◼ Room interiors undergoing additional renovations
20

Operational Highlight

Financial Strategy: Debt Finance

Revenue

Expenses

Debt

EquityExternal
21
GrowthContinues to maintain a stable financial base / JCR rating outlook changed to “positive”
Financial Highlight (as of the End of 16 th FP)
Interest-bearing Debt

Avg. Interest Rate

91,900 million yen

0.66%

Avg. Procurement Term

Avg. Remaining Maturity

7.1 years

3.8 years

LTV (Note 1)

Appraisal LTV (Note 2)

49.0%

45.2%

Changes in Funding Period and Spread Levels◼ No major changes in duration or spread levels, and lender support remains unchanged◼ Cost control against interest rate hikes through floating rates and shorter loan terms◼ Fixed rate ratio is managed by balancing the recent rise in interest rates and long-term risk
（12th FP=100）

Average procurement term
(left axis)

February 2024: JCR rating outlook changed to positive
JCR

Number of Lender

Fixed Interest Rate Ratio

17 companies
Note 1: LTV ＝Outstanding interest-bearing debt/Total assets
Note 2: Appraisal LTV = Outstanding interest-bearing debt ÷ (Total assets + unrealized gain)

85.3%

Average spread 5-year borrowing period (vs. 12th FP)(right axis)
Average spread 7-year borrowing period (vs. 12th FP)(right axis)

A＋(Positive)＜Reference＞
Time from most recent J-REIT outlook change torating upgrade (JCR)A J-REIT: 2023/8 changed -> 2024/3 upgrade
B J-REIT: 2022/11 changed -> 2024/1 upgrade
C J-REIT: 2022/4 changed -> 2023/4 upgrade
21

Operational Highlight

Financial Strategy: Capital Policy + External Growth

Revenue

Expenses

Debt

EquityExternal
22
GrowthAiming for 200 billion yen in AUM through public offering and external growth that leads to increased
unitholder value
Changes in Implied Cap Rates and Acquisition Yields in Public Offerings

6.0%

1st PO

2nd PO

3rd PO

4th PO

5th PO

5 assets /15.8 billion yen
Avg. appraisal
NOI yield

6 assets /22.8 billion yen
Avg. appraisal
NOI yield

3 assets /9.6 billion yen
Avg. appraisal
NOI yield

4 assets /10.6 billion yen
Avg. appraisal
NOI yield

5 assets /11.9 billion yen
Avg. appraisal
NOI yield

4.7%

5.0%

Vs. ICR+0.1pt5.2%

4.5%

Vs. ICR+0.7pt4.5%

Vs. ICR+0.3pt4.8%

Vs. ICR+0.3ptVs. ICR+0.4pt

4.0%

3.0%
16/12

17/12

18/12

19/12
Implied cap rate

Major PO
Considerations

Implied cap rate DPU growth rate
Acquisition yield

NAV multiple
(PBR)

20/12

21/12

22/12

23/12

Acquisition yield

Aim to achieve 200 billion yen in AUM through public
offering and external growth, which will lead toincreased unitholder value, in order to benefit from risk
diversification and expansion of the investor base.
22

Operational Highlight

Mid-term Management Plan: DPU Target

23

Raise the stabilized DPU through internal growth and external growth that contributes to unitholder
value enhancement

GrowthStrategy◼ Normalization of office rents and internal growthof hotel variable rents will offset the increase in
debt cost from higher interest rates◼ Aiming for external growth that contributes tounitholder value enhancement in order to raise thestabilized DPU

Watching closely for recovery inthe office market, a key inachieving the target+α: External growth that contributes tounitholder value enhancement
Normalization of
office rents (Note)(Free Rent eliminated/
Increase occupancy rate)
About

Hotel variable rent (Note)
About

1,210 yen

Forecast of
April 2025
(18 th FP)

30 yenInternal reserves
98 yen per unit

60 yen1,300 yenlevel

Utilize to stabilize DPU in the event of temporary
revenue declines or one-time expenses in the future

DPU
TargetNote: The Asset Manager's estimate of the upside for offices and hotels as of June 17, 2024. are divided by the number of investment units outstanding (1,907,440 units). The amount of distribution is not guaranteed, and subject to change due to additional issuance of investment units, etc.
The same applies hereinafter.

23

Operational Highlight

ESG Initiatives

24

Participation in PRI and promotion of sustainability initiatives throughout the AM businessParticipation in PRI◼ April 2024
Mitsui & Co. Asset Management
Holdings Group, including asset
manager of MIRAI, signed PRI(Mitsui & Co. Asset Management
Holdings, Ltd. signed)◼ Leveraging on the Group’s
driving force to accelerate
sustainability initiatives

Conducting Events for the Local
Community

Promotion of Environmentally
Friendly AM Business◼ Full-scale resumption of eventsand other activities for thecommunity that had been
restricted by the COVID-19
disaster◼ Continued to install environmentally friendly
equipment and devices such as LEDs
(Hiroshima Rijo-dori Building, Kawasaki
Tech Center, etc.)◼ 16th MEXT-approved event for
local children and collaboration
with local athletes◼ Continue to consider initiatives such as
introduction of electronic contracts anddigitalization of operation reports◼ Eliminated printing of prospectuses at PO in
November 2023 (resource reduction)

LED installation(Hiroshima Rijo-dori
Building)
Energy-saving effects
of installation
Power consumption andCO2 emissions reduced
by about 52%(Estimated value comparedto the previous facility)24

25

Section 2.
Financial Summary & Forecasts

Financial Summary & Forecasts

Financial Summary

26

Fiscal Period

15th FP

16th FP

17th FP

18th FP

From

May. 1, 2023

Nov. 1, 2023

May. 1, 2024

Nov. 1, 2024

To

Oct. 31, 2023

Operating revenue

Apr. 30, 2024

Oct. 31, 2024

Apr. 30, 2025

Results

Results

Changes

Forecasts (Note 1)

Changes

Forecasts (Note 2)

Changes

Forecasts (Note 2)

Changes

A

B

B-A

C

B-C

D

D-B

E

E-D

(million yen)

5,744

5,887

143

5,861

26

6,151

264

6,081

-70

(million yen)

4,740

5,002

261

4,920

81

5,126

124

5,175

48

Office(million yen)

2,307

2,381

73

2,379

1

2,367

-13

2,419

52

Retail(million yen)

1,268

1,250

-18

1,211

38

1,344

93

1,284

-59

Hotel

(million yen)

643

849

206

808

41

893

43

948

54

Residence(million yen)

65

65

-

65

-

65

-

65

-

Others(million yen)

454

454

-

455

-0

455

0

456

0

Other lease business revenue(million yen)

1,003

885

-118

940

-55

1,025

139

905

-119

Operating expenses(million yen)

1,994

1,892

-101

2,016

-123

2,092

199

1,955

-137

NOI

(million yen)

3,750

3,994

244

3,845

149

4,059

64

4,126

66

Depreciation(million yen)

708

772

64

770

2

802

29

817

15

General administrative expenses(million yen)

573

561

-12

564

-2

608

46

598

-9

Non-operating expenses(million yen)

308

387

79

396

-8

383

-4

399

16

Net Profit(million yen)

2,153

2,244

91

2,113

131

2,262

17

2,308

46

(yen)

1,215

1,150

-65

1,150

-

1,185

35

1,210

25

Capital expenditure(million yen)

673

1,042

368

876

166

666

-376

712

46

NCF

(million yen)

3,076

2,952

-124

2,968

-16

3,393

440

3,413

20

FFO per unit

(yen)

1,615

1,581

-34

1,511

70

1,606

25

1,638

32

Payout ratio

%

75.2

72.7

-2.5

76.1

-3.4

73.8

1.1

73.8

0.1

38

43

5

43

-

43

-

43

-

%

98.5

98.3

-0.1

182,547

196,106

13,559

8.8

8.6

-0.2

(million yen)

85,50091,9006,400

91,900-91,900-91,900

-

%

48.9

49.0

0.1

49.3

-0.3

49.2

0.2

49.2

-0.0

(unit)

1,771,440

1,907,440

136,000

1,907,440-

1,907,440-

1,907,440

-

(yen)

44,31044,070

-240

(yen)

52,63052,220-410

Lease business revenue

DPU

Number of properties
Occupancy rate as of the end of fiscal period
Appraisal value
Unrealized gain margin
Outstanding interest-bearing debts
LTV(Note 3)

Total number of outstanding investment units （Note 4）

BPS（Note 4）

NAV per unit （Note 4）(million yen)%

Note 1: This forecast was published in "(REIT) Financial Report for the Fiscal Period ended October 31, 2023 (The 15th Period) " dated on December 15, 2023.
Note 2: This forecast is calculated based on certain assumptions as of June 17, 2024 and subject to change due to conditions such as change in rent income thorough tenant turnovers, acquisition and disposition of assets, and additional unit issuance. The forecast should not be construed as
guarantee of DPU.
Note 3: LTV=Outstanding interest-bearing debt/Total assets.
Note 4: BPS＝Unitholders’ capital/Total number of outstanding investment units. NAV＝Unitholders’ capital + Unrealized gain.

26

Financial Summary & Forecasts

Historical DPU (Compared with Previous Fiscal Period)◼ Assets acquired in 16th FP (+33)◼ Newly acquired assets (+106)◼ Increase in retail/hotel rents (+31)◼ Increase in hotel rents (+18)（yen）◼ Improvement in other assets expenses(+35)*Related to change of hotel operator◼ Decrease in repair expenses (+21)◼ Improvement in net utilities expenses(+19)◼ Drop off of internal reserves/tax (+39)◼ Decrease in office rents (-14)*Benz departure from
Shinagawa, etc.

◼ Decrease in retail rents (-40)◼ Internal reserves/tax (-37)◼ Increase in office rents (+28)◼ Increase in hotel rents (+29)◼ Decrease in repair expenses (+9)◼ Improvement in net utilities
expenses (+6)◼ Increase in insurance premium(-9)◼ Increase in repair
expenses (-21)◼ PO dilution (-86)

27
Increase

Decrease◼ Decrease in retail rents (-31)*Seasonal factors of Mi-Nara,etc.

◼ Deterioration in net utilities
expenses (-20)*Seasonal factors◼ Increase in unit issuancecosts/debt costs (-35)

Legend:◼ Increase in depreciation (-8)◼ Increase in debt costs (-4)◼ Increase in AM fee, etc. (-22)

Occupancy rate

Occupancy rate

Occupancy rate

98.3%

98.2%

98.9%
27

Financial Summary & Forecasts

Historical DPU (Compared with Forecasts)（yen）

Legend:Upswing
in
Hotel
rents
Internal
Improvement
reserve/
Decrease inof nettax
debt costs/
utilities
PO costs Other
expensesleasebusiness
Decreaserevenuein repair(leasing
related）
expenses

Other
lease
business
revenue(leasing related）

Increase in
office rents
Improvementof netutilities
expenses

16th FP(April 2024)

Decrease

28
Increase

Increasein debt
costs, etc.

Tax, etc.
(impact ofretention of
earning in
the previous
period)Increasein repairexpenses/other tax

17th FP(October 2024)
28

Financial Summary & Forecasts

Net Utilities Expenses

29

Profitability improved due to peaking out of fuel cost adjustment surcharge and ongoing operational
efforts
Changes in Unit Price of Fuel Cost Adjustments Surcharge(extra high voltage)（yen/kWh）

Results for
16th FP

Forecasts for17th FP

Forecasts for
18th FP(April 2024)(October 2024)(April 2025)

Utilities
revenue

679 million yen

777 million yen

701 million yen

Utilities
expenses

575 million yen

711 million yen

624 million yen

Netutilities
expenses+103 million yen+65 million yen+77 million yen

Compared
to initial
forecasts+44 million yen+25 million yen-

Source: PPS net

29

Financial Summary & Forecasts

Changes in Appraisal Value
Appraisal Value / Unrealized Gain

30

Changes by Asset Type (properties held continuously)(billion yen)

End of 15 th FP End of 16 th FP

Changes

Office96.0 B yen

95.8 B yen-0.1 B yen(-0.2%)

Retail38.2 B yen

37.8 B yen-0.3 B yen(-1.0%)

Hotel

28.0 B yen

28.5 B yen+0.4 B yen(+1.5%)

Residence

2.5 B yen

2.5 B yen

- B yen(-%)

New Type

17.6 B yen

17.6 B yen-0.0 B yen(-0.1%)

Total

182.5 B yen

182.3 B yen-0.1 B yen(-0.1%)Cap Rate (direct capitalization method)

30

31

Section 3.
Portfolio Management

Portfolio Management

Tenant Diversification (as of End of 16th FP)

32

Diversification of Lease Maturity (based on rent)(million yen)Over
35th FP

Breakdown of Lease Contracts Type (based on rent)

End of 16 th FP
Weighted Average
Lease Expiry

5.9 years

Fixed-term Ratio

32.2%(Remaining 5 years or
more)

32

Portfolio Management

Tenant Diversification (as of End of 16th FP)

33

Top 10 Tenants (based on rent)
Tenant Name

Tenant Diversification
Property

Leased Area

Ratio

1.

Hospitality Operations

5 Smile Hotels(Naha, Hakata, Nagoya, Osaka, Kyoto)

19,670 sqm

5.4%

2.

AEON Retail

AEON Kasai

28,338 sqm

5.2%

3.

HAVI Supply Chain Solutions
Japan

Rokko Island DC

15,563 sqm

4.6%

4.

NTT Comware

Shinagawa Seaside Parktower

6,099 sqm-

5.

Kuretakeso

2 hotels(Nagoya Nayabashi, Hiroshima
Otemachi)

8,220 sqm-

6.

Chubu Telecom

MI Terrace Nagoya Fushimi

6,497 sqm

-

7.

Seiyu

Tsurumi Fuga 1

9,578 sqm-

8.

Minacia

2 Wing International Hotels(Ueno, Nagoya Sakae)

5,903 sqm-

9.

BIGLOBE

Shinagawa Seaside Parktower

4,237 sqm-

10.

Eisei College of Medical Arts &Tokyo Eiseigakuen Senmongakko
Sciences

4,220 sqm-

Top 1034.7%

Lease Contracts Diversification

Top 1030.0%33Portfolio Management

Tenant Replacements and Contract Renewals (Office)Tenant Replacements

34

Contract Renewals (based on leased area)（㎡）

Average Rent
(Moving in)

17,470 yen

21,370 yen

15,240 yen

Contract
RenewalArea

19,819㎡

17,320㎡

16,391㎡

17,490 yen

19,850 yen

10,940 yen

Rent Change
Ratio

+0.0%

+0.0%

▲0.0%

(25 million yen)

89 million yen

27 million yen

Changes in
Rent (Note 2)

0 million yen

0 million yen(0 million yen)

(Note 1)

Average Rent
(Moving out)
(Note 1)

Changes in
Rent (Note 2)

Note 1: Figures are rounded down to the nearest 10 yen.
Note 2: Increase in monthly rent due to tenant replacement or contract renewal x 6.

34

Portfolio Management

Hotel: Performance of Hotels with Variable Rent (Details)
Property

May 2023 –Jul. 2023

15th FPMay 2023 –Oct. 2023

Aug. 2023 –Oct. 2023

Comparedwith 2019Nov. 2023 –Jan. 2024

35

Feb. 2024 –April 2024

16th FP
Nov. 2023 –April 2024

Comparedwith 2019

ADR

6,440 yen

8,070 yen

7,110 yen81%

7,000 yen

7,650 yen

7,370 yen

87%

OCC

60%

42%

51%

62%

46%

60%

53%

62%

RevPAR

3,880 yen

3,360 yen

3,620 yen51%

3,210 yen

4,620 yen

3,910 yen

55%

ADR

8,180 yen

8,640 yen

8,410 yen97%

9,420 yen

9,710 yen

9,570 yen

106%

OCC

78%

79%

78%

90%

82%

92%

87%

94%

RevPAR

6,350 yen

6,850 yen

6,600 yen88%

7,760 yen

8,910 yen

8,330 yen

100%

ADR

6,610 yen

6,840 yen

6,730 yen109%

7,130 yen

7,260 yen

7,200 yen

108%

OCC

74%

82%

78%

82%

85%

87%

86%

98%

4,920 yen

5,580 yen

5,250 yen90%

6,080 yen

6,330 yen

6,200 yen

106%

ADR

-

-

-

-

-

6,590 yen

6,590 yen

-

OCC

-

-

-

-

-

54%

54%

-

RevPAR

-

-

-

-

-

3,570 yen

3,570 yen

-

ADR
Kyoto
Karasuma- OCC
gojo(Note 1)
RevPAR

-

-

-

-

-

11,160 yen

11,160 yen

-

-

-

-

-

-

85%

85%

-

-

-

-

-

-

9,470 yen

9,470 yen-

Naha

Hakataeki-Mae

NagoyaSakae

RevPAR
Osaka
Tennoji(Note 1)

Note 1: The Hotel has been in operation since March 20, 2024.
Note 2: ADR and RevPAR are rounded down to the nearest 10 yen.

35

36

Section 4.
Financial Strategy & ESG Initiatives

Financial Strategy & ESG Initiatives

Financial Strategy: Debt Portfolio

37

Maintain stable financial base backed by the creditworthiness of Mitsui & Co.
Financial Highlight

Diversified Funding Source

LTV

Avg. Interest Rate

Avg. Procurement Term

49.0%

0.66%

7.1 years

LTV
Total Interestbearing Debt
(million yen)
Avg. Interest
Rate
Avg. Remaining
Maturity (years)

49.0%

48.9%

49.0%

85,50085,50091,900

0.59%

0.61%

0.66%

7.3

7.4

7.1

Fixed Interest
Rate Ratio

98.2%

Long-term
Borrowing Ratio

98.2%
14th FP(23/04)100.0%

100.0%
15th FP(23/10)Commitment Line
LenderMizuho Bank

JCR

Limit Amount

3 billion yen

A＋(positive)

Borrowing

0.5 billion yen

R&I

Term

Up to 1 year

85.3%
99.5%
16th FP(24/04)Credit Rating(as of June. 17, 2024)

A (stable)
37

Financial Strategy & ESG Initiatives

Financial Strategy: Refinance / Debt Maturity Ladder (End of 16th FP)
Overview of Refinance in 16 th FP
Borrowingdate

November30, 2023

January
31, 2024

April
30, 2024

Debt Maturity Ladder

LenderBorrowingamountTerm ofmaturity

Interest
rate

Fixed /
Variable
rate

Sumitomo Mitsui
Banking
Corporation, etc.

2.5billion yen

3 years

0.67%

Fixed rate

Sumitomo Mitsui
Banking
Corporation, etc.

3.5
billion yen

5 years

Base rate＋0.28%

Variable rate

Sumitomo Mitsui
Banking
Corporation, etc.

4.0
billion yen

7 years

Base rate＋0.32%

Variable rate

Development
Bank of Japan

1.5
billion yen

7 years

1.24%

Fixed rate

Mizuho Bank

0.5
billion yen

1 yearBase rate+0.70%

Variable rate

Mizuho Bank

1.0
billion yen

7 years
6 months

1.19%

MUFG Bank

1.5
billion yen

3 years

0.82%

Fixed rate

Mizuho Trust &Banking

2.0
billion yen

7 years

Base rate＋0.31%

Variable rate

(Commitment line)

38

Note 1: The loan has a floating interest rate, but fixed debt cost by concluding the interest rate swap agreement is stated.
Note 2: The base rates are three-month Japanese yen TIBOR(million yen)

(Note 1)

Average interest
rate: 0.66%

Fixed rate
(Note 1)38

Financial Strategy & ESG Initiatives

ESG Initiatives (1/3)

39

Promote efforts to address materiality while improving and expanding external certification
Participation in Initiatives

Participation in External Certifications

Principles for Financial Action for the 21st Century

GRESB Real Estate Assessment◼ The principles of conduct for Japanese Financial
Institutions that outline the responsibilities and roles
necessary for the formation of a sustainable society◼ An annual benchmark assessment that measuresenvironmental, social and governance considerations in
the real estate sector

Task Force on Climate-related Financial Disclosures◼ The Asset Manager expressed support for the “Task Force on
Climate-related Financial Disclosures (TCFD)” in February 2023
◼ In addition to supporting the TCFD, joined the “TCFD Consortium”, anorganization of companies in Japan that support the TCFD
Recommendations◼ MIRAI participated in the assessment from 2021 and hasearned 4 Star and Green Star
◼ MIRAI also received the highest A Level for the GRESB
Public Disclosure.
DBJ Green Building Certification / CASBEE for Real Estate/BELS◼ Continue initiatives to increase the share of assets with environmental
certifications◼ New certifications were obtained for thefollowing assets
・BELS: MI Terrace Nagoya Fushimi

Principles for Responsible Investment◼

Mitsui & Co. Asset Management HoldingsGroup, including the Asset Manager,
agrees with the basic philosophy of PRI
and became a ratifying institution in
April 2024.
39

Financial Strategy & ESG Initiatives

ESG Initiatives (2/3)

40% of Assets with Environmental Certification (asof April 30, 2024)

Environmental Performance Targets
Based on the Sustainability Policy, we have established environmental
performance targets in order to appropriately identify and manage theenvironmental impact of our real estate operations and implement operations
that contribute to environmental protection.

◼ Reduce GHG emission intensity of our portfolio by 5% overthe next 5 years◼ Reduce energy consumption intensity of our portfolio by 5%
over the next 5 years

Certified assets *Bold: Newly acquired% of Assets
with Environmental
Certification (note)

71.4％(Note) The target period is from April 2021 to March 2022 as the first year, and from April 2025 to March2026 as the year to achieve the target. In addition, from April 2018 to March 2019 is the base year.

◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼
◼

Shinagawa Seaside Parktower
Kawasaki Tech Center
Shinjuku Eastside SquareTokyo Front Terrace
MI Terrace Nagoya Fushimi
MI Terrace Sendai Hirose-dori
Ehime Building/Hiroshima
BizMiiX Yodoyabashi
Continue to
MI Terrace HamamatsupromoteAEON Kasai
acquisition of
Mi-Naraenvironmental
Rokko Island DC
certification

Green Finance (as of April 30, 2024)

Trends in Reduction Rate

Maximum amount of Green finance

Eligible Green Project

49.0%

LTV (as of April 30, 2024)(the year toachieve the target)
Note: Based on total floor area excluding land asset.

40

Financial Strategy & ESG Initiatives

ESG Initiatives (3/3)

41

Initiatives for Local Communities, Tenants and Employees
Initiatives for Local Communities andTenants

Initiatives to improve and enhance theworkplace environment

Promote community support
activities by holding eventsat properties owned andsponsoring local events

Creating an easy-to-work-in
work environment for asset
management company’s
employees

Focus on initiatives to makethe assets more comfortable
for tenants and users

Focus on developing asystem that enables each
employee to fully
demonstrate his/her abilities
through human resource
development by providing
training support, etc.

Implementation of events forchildren in the community(Approved by the MEXT)＜Examples＞

Volunteer activities in thecommunity by the AssetManager

Communication
Space

Asset Management Fees, etc.
15 th FP

16 th FPAM Fee I

439 million yen

435 million yen

AM Fee II

33 million yen

34 million yen

Ac q u is it io n
Fees－

119 million yen

Disposition
Fees

－

－

Merger Fees－－

＜Examples＞

Broadcasting of local
basketball teamgames on theproperty

Sports club corporate
membership program forsponsor groups

Introducing in-house
BGM and planning inhouse events torevitalize
communication

Name

Remuneration

Executive
Officer

MichioSuganumaーSupervisory
Director

Takehiko
NegishiSupervisory
Director

Hidetomo
Nishii16 th FP
(total)3,676
thousandYen% of Attendance(Board of Directors)(16 th FP)

100％（8/8 times）
100％（8/8 times）
100％（8/8 times）

41

42

Please also refer to “Financial Highlights Data (Excel file)” for the details on
MIRAI IR Library (https://3476.jp/en/ir/library.html).

Appendix 1.
Overview of MIRAIOverview of MIRAI

43

Features of MIRAIPortfolio Strategy

Financial Strategy◼ The portfolio consists mainly of large-scale offices with middle-classrents, which feature stable supply and demand.

◼ Strong bank formation centering on the Mitsui Group.

◼ For retail properties and hotels, emphasis is placed on stability
through long-term fixed contracts.
◼ Pursues upside scenario through the inclusion of Growth Asset.

◼ Ranked among the highest of all J-REITs in terms of conditions forthe debt.
◼ Credit rating JCR: A＋(Positive)/ R&I: A(Stable)
Average Interest
Rate

0.66％

Average
Remaining
Maturity

3.8 years

JCR

R&I

A＋(Positive)

A (Stable)“Smart Defense and Offense with Aligned Interest”

Double Main Sponsors◼ Two mid-term management plans ("Repower 2020" and "ER") andthe "MIRAI Revitalization Plan“, a crisis response plan for COVID-19
disaster, have been formulated since listing, and growth measures
have been implemented based on clear sets of issues.

◼ Double sponsorship by Mitsui & Co. AM Holdings LTD. and IDERA
Capital Management.

◼ June 2022: MIRAI mid-term management plan 2025 "Smart
Defense and Offense with Aligned Interest" (quantitative targets)◼ Currently co-own properties with several real estate vehicles
managed by the Mitsui & Co. group (Shinagawa Seaside Park Tower,
Rokko Island DC, etc.)

1. DPU:1,300 yen level◼ The sponsors proactively support deal sourcing, fundraising andleasing activities.

2. NAV/U: Over 53,000 yen (CAGR about 2%)
3. AUM:

200 billion yen (AA rating in mind)
43

Overview of MIRAI

44

Portfolio Strategy
Portfolio centering on core assets in greater Tokyo area where stable cash flow can be expectedCore Assets
Core Assets
utilizing the strengths of the sponsors
in the real estate business

Growth Assets
Focus on the three major
metropolitan areas of Japan (Note 1)(Investment ratio: 70% or more)
Ratio by Asset Type (Note 2)

Core Plus

OfficeAssets targeting profitability improvement throughupside achieved by leasing, renovation or conversion.

Others 8.8%
Residence 1.2%

Hotel
18.3%

Core Assets

88.4%

Limited inclusion of Growth Assets
utilizing the competitive edge of thesponsors

Mi-NaraAcquisition Price

Office50.7%

4,944 million yen

Retail
21.0%

RetailRatio by Area (Note 2)

New-type (Note 3)
Assets in Blue ocean, with less acquisitioncompetition and market expansion can be
expected.

Others
17.2%

Hotel

NagoyaArea
10.6%
Osaka Area
14.4%

Three
Metropolitan
Area

82.8%

Tokyo Area
57.8%

Note 1: “3 major metropolitan area” refers to greater Tokyo (Tokyo , Kanagawa , Chiba and Saitama ), greater Osaka (Osaka , Kyoto , Hyogo , Nara , Wakayama and Shiga ), and greater Nagoya (Aichi , Mie and Gifu ).
Note 2: The figure is calculated based on the acquisition price and the portfolio as of the end of April 2024.
Note 3: Acquisition of New Type Asset will be made when the Asset Manager's operational structure is ready (or when the legal framework is ready for some asset classes).

Rokko Island DC(quasi-co-ownershipinterests 92.45%)
Acquisition Price

7,996 million yen
44Overview of MIRAI

45

Progress to Date

AUM growth to achieve the mid-term plan target following the portfolio replacement under COVID-19
IPO

Growth phase 1

Listed with
only Core Assets

Started to included Growth Assets(Core Plus/New Type)
Pursue improved profitability/upsidethrough ingenious acquisitions

Portfolio strategy withemphasis of defensivenessthrough property replacement

AUM (based on acquisition price)(billion yen)
250

Growth phase 2

Spread of COVID-19

Achieving the target of mid-term plan
MIRAI acquires"smart defense✕offense with aligned interest"
assets exceeding implied CR
MIRAI Mid-Term Management Plan 2025

May 2018 1st PO
October 2018 2nd PO

December 2019
3rd PO

December 2021
4th PO

November 2023 5th PO

200

150
100

50
0

100.7

115.4

2nd FP(17/04)

3rd FP(17/10)

145.0

143.1

153.4

151.2

153.9

153.9

164.5

163.1

166.2

166.2

178.2

109.6

123.9

4th FP(18/04)5th FP(18/10)

6th FP(19/04)

7th FP(19/10)8th FP(20/04)

9th FP(20/10)10th FP(21/04)11th FP(21/10)12th FP(22/04)13th FP(22/10)14th FP(23/04)15th FP(23/10)16th FP(24/04)

Achievements since IPO
AUM+77.4 B yen(+76.9%)NAV/U

100.7 B yen => 178.2 B yen

Acquisition&
Disposition

Note: As of November 2, 2023

144.2 billion yen
Acquisition 110.8 B yen,
Disposition 33.3 B yen

Index
Weight2,000

・・・

Target5 th PO (November 2023)+6,580 yen(+14.4%)

Smart Defense

Offense with
Aligned Interest
Urban Retail / Hotels
4 assets / 9.3 B yen

45,640 yen => 52,220 yen

Mid-Sized Office
1 asset / 2.6 B yen+0.31%NOI Yield

Implied Cap Rate

4.8%

4.4%

0.25% => 0.56% (Note)

45

Overview of MIRAI

46

Portfolio Transition and NAV Improvement
2 nd FP (17/04)

12 th FP (22/04)

16 th FP (24/04)

15 properties

38 properties

43 properties

164.5

178.2

AUM
(billion yen)

100.7

Portfolio Diversification(based on
Acquisition Price)

Retail21.8%

Others 8.8%

Others 9.5%

Hotel 9.7%

Residence 1.2%
Hotel
16.1%

Core
100.0%

Office68.6%

Osaka Others 6.3%
Area
11.5%

Core
87.5%

Office52.6%

Retail
21.7%

Core
88.4%

Others 17.2%

3 majormetropolitan
areas

NagoyaArea
10.6%

3 majormetropolitan
areas

Area Diversification(based on
Acquisition Price)

3 majormetropolitan
areas

Number of Tenants

103

290

393

LTV

47.0%

48.8%

49.0%

NAV per Unit

45,640 yen

50,670 yen

52,220 yen

93.7%

Tokyo
Area
82.2%

Osaka
Area
15.8%

Office50.7%

Retail21.0%

Others 14.4%
Nagoya
Area
8.9%

Hotel
18.3%

85.6%

Tokyo
Area
60.9%

Osaka
Area
14.4%

82.8%

Tokyo
Area
57.8%

46

Overview of MIRAI

47

Historical DPU and NAV per Unit
DPU
NAV per Unit
51,170 yen

49,190 yen

49,490 yen 49,400 yen

50,670 yen

46,010 yen
1,563 yen
1,451 yen

1,417 yen

+3.1%

Before the announcement of
the mid-term management plan

47,000 yen
45,640 yen

52,630 yen

50,030 yen 50,160 yen

47,920 yen
46,360 yen

52,220 yen

52,230 yen

1,561 yen

1,436 yen

1,429 yen

1,293 yen

1,247 yen

1,289 yen

1,267 yen

1,313 yen

1,305 yen
1,215 yen

1,150 yen

1,185 yen

1,210 yen

16th FP(24/04)17th FP(24/10)18th FP(25/04)815 yen

2nd FP(17/04)

3rd FP(17/10)

4th FP(18/04)5th FP(18/10)

6th FP(19/04)

7th FP(19/10)8th FP(20/04)

9th FP(20/10)10th FP(21/04)11th FP(21/10)12th FP(22/04)13th FP(22/10)14th FP(23/04)15th FP(23/10)(Note 2)

ActualNote 1: Per unit numbers are rounded down to nearest 10 yen. MIRAI implemented a four-for-one investment unit split with April 30, 2019 as record date. For the purpose of comparison, the figures after 6th FP are post split figures.
Note 2: Unrealized gain at the end of 3rd FP adds renewal investment of 844 million yen for Mi-Nara on the book value at the end of the FP.

Forecasts
47

Overview of MIRAI

48

Historical Unit Price(yen)
December 10, 201970,000December 2, 2021 Announcementof inclusion in FTSE EPRA Nareit
Global Real Estate Index Series

Announcement of 3rd PO

December 13, 2021

November 13, 2023

Announcement of 4th PO

Announcement of 5th PO

55,00040,00025,000
19/11

20/5

20/10

21/4

21/10

22/4

22/10

23/4

23/10

24/4

Unit priceFinancial Institutions/Foreign Investors Ratio (Note)
Foreign investors

Financial institutions
90(41.0%)

86(45.8%)

86(43.5%)

85(40.1%)

85(41.1%)

81(40.8%)

86(40.4%)

81(46.5%)

93(41.4%)

91(37.3%)

126(10.6%)

127(10.3%)

141(11.3%)

145(10.6%)

153(11.1%)

178(15.6%)

176(16.7%)

177(14.3%)

186(16.1%)

186(14.7%)

7th FP(19/10)8th FP(20/04)

9th FP(20/10)10th FP(21/04)11th FP(21/10)12th FP(22/04)13th FP(22/10)14th FP(23/04)15th FP(23/10)16th FP(24/04)

Note: The Figures in parentheses indicate the percentage of investment units; the number of investors is only for foreign institutions, while the percentage of investment units is the sum of foreign institutions and foreign individuals.

48

Overview of MIRAI

49

Primary Data (as of the End of 16th FP)
Asset

Debt

Number of Properties
AUM(Based on Acquisition Price)

Outstanding InterestBearing Debt

43
178.2 billion yen

91.9 billion yen

Total Assets LTV

49.0%

Appraisal LTV (Note 3)

45.2%

Appraisal Value

196.1 billion yen

Average Interest Rate

0.66%

Unrealized Gain15.5 billion yen (+8.6%)

Average Remaining
Maturity

3.8 years(Unrealized Gain Rate)

Profitability(Based on Book Value)

Average Property Age(Acquisition Price Weighted
Average)

Total Leasable Floor
Space

NOI yield: 4.4% (Note 1)

NOI yield after depreciation: 3.6%
24.9 years (Note 2)
Approximately 393,000 sqm

Occupancy Rate

98.3%

Asset Type

OfficeRetailHotel(Based on Acquisition Price)

50.7%
21.0%
18.3%

Note 1:16th FP result
Note 2:Excluding land assets
Note 3:Total assets LTV = Outstanding interest-bearing debt / (total assets + unrealized gain)
Note 4:Based on the closing price of investment equity on the last day of 16th FP

Residence1.2%
Others 8.8%

Credit Ratings

JCR:
R&I:

A+
A

(Positive)(Stable)EquityMarket Cap (Note 4)

86.2 billion yen

Unit Price (Note 4)

45,200 yen

NAV per Unit

52,220 yen

DPU
DPU Yield

1,150 yen (16 th FP result)

5.1%
49

50

Appendix 2.
Main Assets of MIRAIMain Assets of MIRAI

51

Large-Scale Office
Shinagawa Seaside Parktower (quasi-co-ownership63.4%)

Shinjuku Eastside Square (quasi-co-ownership5%)

AcquisitionPrice

20,288 M yen

AcquisitionPrice

10,000 M yen

NOI Yield

4.2 %NOI Yield

4.3 %◼ Large office building located in the Shinagawa
Seaside Forest complex, an urban redevelopment
project.
◼ Well-served by public transport, located 2
minutes’ walk from Shinagawa Seaside Station on
the Rinkai Line and 8 minutes’ walk from Aomonoyokocho Station on the Keikyu Line/◼ Appealing to tenants, offering layout flexibility
with column-free floor space and a high level offacilities and equipment.
◼ Acquired after value-added by a sponsor IDERA
Capital.

◼ Large office building situated in Higashi-Shinjuku
built as part of urban redevelopment project◼ High level of visibility and well-served by public
transport, located 1 minute walk from HigashiShinjuku Station on the Tokyo Metro and Toei
Subway Lines and 6 minutes’ walk from the
Shinjuku-Sanchome Station on the Tokyo Metroand Toei Subway Lines◼ Appealing to tenants, offering S-class office spacefor flexibility of layout◼ Acquired from a fund managed by a sponsor,
Mitsui & Co.

Address

4-12-4, Higashi-Shinagawa,Shinagawa-ku, Tokyo

Address

6-27-30, Shinjuku, Shinjuku-ku,
TokyoLand area

17,386.11 sqm(the entire property)

Land area

25,320.28 sqm(the entire property)

Floor area

55,930.90 sqm(the entire property)

Floor area

167,031.19 sqm(the entire property)

Structure

S/RC B2/20F

100% (27)

Occupancy

100% (43)a. September 2002
b/c. July 2003

Date of building

Structure

a.
b.
c.

Occupancy(number of tenants)(Note)

Date of building

Parking SRC 1F
Office/Shop SRC/RC/S
B2/25F
Parking SRC 1F

Note: As of April 2024. The same applies hereinafter.

(number of tenants)

March 2012

51

Main Assets of MIRAI

52

Mid-Sized Office
MI Terrace Nagoya Fushimi

BizMiiX Yodoyabashi

AcquisitionPrice

8,886 M yen

AcquisitionPrice

2,041 M yen

NOI Yield

5.1 %NOI Yield

3.7 %◼ The property offers convenient access, being
located five-minute walk from Yodoyabashi
station of Osaka Metro.

◼ The property is located two-minute walk from Fushimi
station of Nagoya Municipal Subway Higashiyama line
and Tsurumai line. The location offers high convenience
as Fushimi station serves both Higashiyama line andTsurumai line and it is also only 5-minute walk from
Marunouchi station on Sakura-dori line.
◼ Renewal work for common areas such as elevator halls,
hallways, and bathrooms have been carried out in stages
since 2015 and other environmentally conscientious
renovations such as updating the zone air-conditioning
system and introduction of LED lighting were carried out.
◼ The property is competitive as it has updated airconditioning control system and security system to caterfor multi-tenants.

◼ The property is converted to "ready-to-use
serviced office" after acquisition as a budget
type hotel, Hotel WBF Yodoyabashi-Minami.
The tenants of the property moved in fromJanuary 2021.

Address

1-10-1, Nishiki, Naka-ku,
Nagoya-shi, Aichi

Address

3-1-6, Hirano-machi, Chuo-ku,
Osaka-shi, OsakaLand area

1,980.56 sqm

Land area

295.42 sqm

Floor area

14,481.95 sqm

Floor area

1,821.56 sqm

Structure

S 12F

Structure

S 9F

Occupancy

100% (8)Occupancy

93.6% (48)

February 1993

Date of building(number of tenants)

Date of building

Note: The acquisition price is calculated by adding the additional investment related office conversion on the initial acquisition price (hotel).

(Note)(number of tenants)

BizMiiX Yodoyabashi

January 201752

Main Assets of MIRAI

53

RetailAEON Kasai

Mi-NaraAcquisitionPrice

9,420 M yen

AcquisitionPrice

4,944 M yen

NOI Yield

5.0 %NOI Yield

4.3 %◼ Model store in Aeon’s first “Grand Generation’sMall”, which underwent renewal in 2013.
MIRAI has concluded a long-term bulk leaseagreement and stable revenue is expected.
◼ Located in a densely populated area with
sufficient parking facilities and bicycle parking
spaces.
◼ The entire building will be renewed again in
2023. At the same time, the lease term was
extended and variable rent was introduced.

◼ Tourism-oriented retail property which wasreopened in April 2018.
◼ This property is located within a 12-minute
walk and a 5-minute drive by bus from ShinOmiya Station of the Kintetsu Railway. It
faces the main national roads No. 24 and369.
◼ Omiya Street which is adjacent to theproperty, is a street full of registered heritage
temples and shrines. It connects the Nara
park area to the former site of Heijo Palace.

Address

3-9-19, Nishi-Kasai,
Edogawa-ku, Tokyo

Address

1-3-1, Nijo-oji-Minami,
Nara-shi, Nara

Land area

20,063.51 sqm(the entire property)

Land area

53,214.66 sqm(the entire property)

Floor area

38,454.66 sqm

Floor area

72,944.41 sqm
4,543.32 sqm

Structure

a.
b.
c.

a.
b.

Structurea.
b.

Shop SRC 7F
Parking S 3F

Occupancy

100% (1)Occupancy

92.9% (62)(number of tenants)

Date of building

Store RC 5F
Parking SRC 6F
Office SRC 5F(number of tenants)

a.
b.
c.

November 1982
May 1983
April 1983

Date of buildinga.
b.

Mi-NaraSeptember 1989
June 2003

53

Main Assets of MIRAI

54

Hotel
EN HOTEL Ise

Hotel Wing International Select Ueno/Okachimachi
AcquisitionPrice

1,800 M yen

AcquisitionPrice

3,720 M yen

NOI Yield

5.6 %NOI Yield

4.3 %◼ The hotel to be acquired offers convenient
access, being located 4-minute walk from
Iseshi Station of Kintetsu Railway.
◼ In addition to tourist demand visiting Ise Grand
Shrine which is located 15-minute walk fromthe hotel and Ise-Shima area, strong businesstravel demand is also expected as numerous
factories for major corporations are located in
the city.
◼ The tenant and operator is The COURT, a
subsidiary of sponsor IDERA Capital.

Address

2-5-11, Fukiage, Ise-shi, Mie

Land area

1,587.58 sqm

Floor area

4,099.31 sqm

Structure

SRC 10F

Occupancy

100% (1)(number of tenants)

ENHOTEL
Hotel IseEN

◼ It is located 5-minute walk from Ueno Station andOkachimachi station on JR line, 2-minute walkfrom Ueno Station on Ginza line and Hibiya line ofTokyo Metro and is convenient as it is served bymultiple train routes.
◼ The hotel has been completed in April 2018. It has
mainly single rooms totaling 141 guest rooms. It
will cater for both business and tourist demand byoffering 95 single rooms, 29 double rooms, 16
twin rooms and 1 universal access room.
◼ The tenant and operator are Minacia CO., LTD.

Address

2-18-4, Higashi-ueno, Taito-ku,
TokyoLand area

359.09 sqm

Floor area

3,053.09 sqm

Structure

ＲＣ B1/15Ｆ

Occupancy

100% (1)(number of tenants)

Date of building

November 1991

Date of building

April 2018

54

55

Appendix 3.
Portfolio Lists

Portfolio Lists

56

Portfolio List (as of the End of April 2024)
Asset Type

Property Name

Large-Scale

Core

OfficeMid-Sized

Address

Date of Acquisition

Core
RetailCommunityBased

Core Plus% of thePortfolio

Appraisal
NOI Yield

NOI after
Depreciation

Occupancy
Rate

Shinagawa Seaside Parktower

Shinagawa-ku, Tokyo

December 2016

20,288

11.4%

4.2%

3.5％

100.0%

Kawasaki Tech Center

Kawasaki-shi, Kanagawa

December 2016

23,182

13.0%

4.9%

3.5％

98.7%

Shinjuku Eastside Square

Shinjuku-ku, Tokyo

December 2016

10,000

5.6%

3.5％

2.7％

100.0%

Tokyo Front Terrace

Shinagawa-ku, Tokyo

October 2017

10,592

5.9%

3.7％

2.9％

93.0%

MI Terrace Nagoya-Fushimi

Nagoya-shi, Aichi

June 2018

8,886

5.0%

4.7％

4.0％

100.0%

Hiroshima Rijo-dori Building

Hiroshima-shi, Hiroshima

March 2020

2,250

1.3%

5.2％

4.4％

100.0%

BizMiiX Yodoyabashi

Osaka-shi, Osaka

November 2018

2,041

1.1%

4.2％

3.0％

93.6%

TCA Building

Osaka-shi, Osaka

January 2021

2,120

1.2%

4.5％

3.6％

100.0%

Ehime Building/Hiroshima

Hiroshima-shi, Hiroshima

January 2022

2,780

1.6%

5.1％

4.0％

75.8%

MI Terrace Sendai Hirose-doriSendai-shi, Miyagi

November 2022

2,022

1.1%

4.8％

4.2％

86.4%

MI Terrace Kita-Ueno

Taito-ku, Tokyo

March 2023

3,557

2.0%

4.3%

3.7%

100.0%MI Terrace Hamamatsu

Hamamatsu-shi, Shizuoka

December 2023

2,603

1.5%

4.8%

4.1%

98.6%

90,322

50.7%

4.4%

3.5%

97.2%

Shibuya World East Building

Shibuya-ku, Tokyo

December 2016

3,200

1.8%

5.7％

5.3％

100.0%

THINGS Aoyama

Minato-ku, Tokyo

January 2020

2,912

1.6%

3.7％

3.5％

100.0%MI Cube Sendai Clisroad

Sendai-shi, Miyagi

March 2020

1,330

0.7%

4.8％

4.7％

100.0%MI Cube Machida East

Machida-shi, Tokyo

March 2023

1,977

1.1%

4.9%

4.2%

85.9%

MI Cube Shinsaibashi

Osaka-shi, Osaka

March 2024

2,644

1.5%

3.6%

3.6%

100.0%AEON Kasai

Edogawa-ku, Tokyo

December 2016

9,420

5.3%

5.0％

4.0％

100.0%CAINZ Mall Hikone (land)

Hikone-shi, Shiga

March 2021

3,598

2.0%

5.1％

5.1％

100.0%

MaxValu Takatori (land)

Hiroshima-shi, Hiroshima

March 2021

950

0.5%

4.6％

4.6％

100.0%

Tsurumi Fuga 1

Yokohama-shi, Kanagawa

January 2022

5,300

3.0%

4.4％

3.5％

100.0%BIGMOTOR Ginan (land)

Hashima-gun, Gifu

January 2022

1,080

0.6%

4.2％

4.2％

100.0%

Mi-NaraNara-chi, Nara

October 2017

4,944

2.8%

5.5％

2.0％

92.9%

37,355

21.0%

4.8%

3.9%

98.2%

OfficeUrban

AcquisitionPrice(million yen)

Retail56

Portfolio Lists

57

Portfolio List (as of the End of April 2024)
Property Name

Asset Type

Address

Industrial

EducationalCore

New Type

NOI after
Depreciation

Occupancy
Rate

2,108

1.2%

6.3％

4.5％

94.6%

Daiwa Roynet Hotel Akita

Akita-shi, Akita

December 2016

2,042

1.1%

5.8％

4.0％

100.0%

Super Hotel Sendai/Hirose-doriSendai-shi, Miyagi

December 2016

1,280

0.7%

5.8％

4.8％

100.0%(Note1)

Osaka-shi, Osaka

December 2016

1,260

0.7%

6.9％

6.2％

100.0%

Saitama-shi, Saitama

December 2016

1,123

0.6%

5.5％

4.3％

100.0%

Kyoto-shi, Kyoto

December 2016

(Note2)

1,030

0.6%

8.1％

7.3％

100.0%EN HOTEL Ise

Ise-shi, Mie

March 2018

1,800

1.0%

6.0％

4.7％

100.0%

Comfort Hotel Kitakami

Kitakami-shi, Iwate

March 2018

820

0.5%

5.5％

3.2％

100.0%

Hotel Wing International Select Ueno/Okachimachi

Taito-ku, Tokyo

May 2018

3,720

2.1%

4.2％

3.6％

100.0%

Smile Hotel Naha City Resort

Naha-shi, Okinawa

November 2018

4,000

2.2%

4.5％

3.9％

100.0%

Smile Hotel Hakatarki-mae

Fukuoka-shi, Fukuoka

November 2018

3,800

2.1%

3.6％

3.2％

100.0%

Smile Hotel Nagoya-Sakae

Nagoya-shi, Aichi

November 2018

2,950

1.7%

4.4％

3.8％

100.0%

Kuretake Inn Premium Nagoya Nayabashi

Nagoya-shi, Aichi

December 2023

2,470

1.4%

4.9%

4.3%

100.0%

Hotel Wing International Select Nagoya Sakae

Nagoya-shi, Aichi

December 2023

1,700

1.0%

5.5%

4.8%

100.0%

Hotel Kuretakeso Hiroshima Otemachi

Hiroshima-shi, Hiroshima

December 2023

2,540

1.4%

5.5%

4.5%

100.0%

32,643

18.3%

5.1％

4.2％

99.3%

March 2023

2,210

1.2%

5.1%

4.4%

100.0%

November 2018

7,996

4.5%

5.4％

4.1％

100.0%

Hotel
Residence

Appraisal
NOI Yield

December 2016

Smile Hotel Kyoto Karasumagojo

Hotel% of thePortfolio

Niigata-shi, Niigata

Super Hotel Saitama/Omiya

Core

AcquisitionPrice(million yen)

Hotel Sunroute Niigata

Smile Hotel Osaka Tennoji

BudgetDate of Acquisition

Fiel Johoku

Hamamatsu-shi, Shizuoka

Rokko Island DC

Kobe-shi, Hyogo

Odawara Material Storage & Delivery Center (land)

Odawara-shi, Kanagawa

March 2021

2,300

1.3%

4.9％

4.9％

100.0%

Yokohama-Daikokucho Maintenance Center (land)

Yokohama-shi, Kanagawa

March 2022

1,490

0.8%

3.9％

3.9％

100.0%

Tokyo Eiseigakuen Senmongakko

Ota-ku, Tokyo

January 2020

3,900

2.2%

5.8％

5.1％

100.0%

15,686

8.8%

5.3％

4.4％

100.0%

178,217100.0%

4.7%

3.8%

98.3%

New Type
Total Portfolio

Note 1: Effective February 14, 2024, the "Property Name" was changed from "Super Hotel Osaka/Tennoji" to "Smile Hotel Osaka Tennoji", the current tenant's hotel brand. The same applies hereinafter.
Note 2: As of February 20, 2024, the "property name" was changed from "Super Hotel Kyoto/ Karasumagojo" to "Smile Hotel Kyoto Karasumagojo" which is the hotel brand of the current tenant. The same applies hereinafter.

57

Portfolio Lists

58

Assets List (as of the End of April 2024)
OfficeRetailHotel

Residence

OthersResidence

Office1

2

3

ShinagawaSeasideParktower

KawasakiTech Center

Shinjuku
Eastside Square

4

5

6

7

8

9

10

Tokyo Front
Terrace

MI Terrace
NagoyaFushimi

Hiroshima
Rijo-Dori
Building

BizMiiX
Yodoyabashi

TCA Building

Ehime Building/Hiroshima

MI Terrace
Sendai
Hirose-dori

MI Terrace
Kita-Ueno

Retail13

MI Terrace
Hamamatsu

39

Fiel Johoku

Growth Assets

14

Shibuya World
East Building

12

11

THINGS
Aoyama15

16

17

MI Cube Sendai
Clisrord

MI CubeMachida East

MI CubeShinsaibashi

26

27

28

29

30

31

Smile Hotel
Osaka Tennoji

Super Hotel
Saitama/Omiya

Smile Hotel
Kyoto
Karasumagojo

EN HOTEL Ise

Comfort Hotel
Hotel Wing
Smile Hotel
KitakamiInternational Select Naha City
Ueno/Okachimachi
Resort

18

19

AEON
Kasai

CAINZ Mall
Hikone(land)

20

MaxValu
Takatori(land)

21

TsurumiFuga 1

22

BIGMOTOR
Ginan(land)

23

Mi-Nara

40

41

42

Rokko Island Odawara Material Yokohama
Storage & Delivery DaikokuchoDC
MaintenanceCenterCenter(land)(land)

43

Tokyo
Eiseigakuen
Senmongakko

Hotel
24

25

Hotel
Sunroute Niigata

Daiwa
Roynet Hotel
Akita

Super Hotel
Sendai/
Hirose-dori

32

33

34

35

36

37

38

Smile Hotel
Hakataeki-Mae

Smile Hotel
Nagoya-Sakae

Kuretake Inn
Hotel Wing
Hotel Kuretakeso
PremiumInternational Select Hiroshima
NagoyaNagoya Sakae
OtemachiNayabashi

58

Portfolio Lists

Portfolio Map (as of the End of April 2024)

59

59

Portfolio Lists

60

Financial Summary by Property (1/4)
16 th FP: November 2023 － April 2024
Property Name

ShinagawaSeasideParktower

Kawasaki Tech
CenterShinjuku Eastside
SquareTokyo
Front Terrace

MI Terrace
Nagoya-Fushimi

Hiroshima Rijodori Building

BizMiiX
Yodoyabashi

MI Terrace
Sendai
Hirose-dori

Ehime Building/Hiroshima

TCA Building

MI Terrace
Kita-Ueno

MI Terrace
Hamamatsu

Operating days

182

182

182

182

182

182

182

182

182

182

182

152

Operating revenue

699

975

267

262

305

85

66

72

100

72

95

75

Lease business revenue

623

529

240

237

271

67

62

56

87

57

84

62

Other lease business revenue

75

445

27

25

34

18

3

16

12

14

11

12

285

383

59

144

79

21

30

24

33

28

18

17

Operating expense
Outsourcing service expenses

60

74

19

20

25

5

14

6

9

9

6

6

Utilities expenses

90

225

17

28

24

8

2

8

7

6

9

5

Property and other taxes

66

48

18

38

21

6

4

7

12

9

0

2

Repair expenses

2

4

1

25

3

0

0

0

1

2

0

0

Other expenses related to lease business

65

29

2

30

4

0

8

2

2

0

1

0

413

592

208

118

225

64

36

47

67

43

76

58

75

147

37

38

27

9

11

9

10

6

9

7

-

-

-

-

-

-

-

-

-

-

-

-

338

444

170

79

197

55

24

38

56

37

67

50

71

510

2

61

0

17

-

23

79

5

10

8

NOI
Depreciation
Loss on retirement of non-current assets
Income(loss) from real estate leasing business
Capital expenditure
NCF
Book value
NOI yield (Note 2)
NOI yield after depreciation(Note 2)

Note 1: Not disclosed because tenant’s consent was not obtained.
Note 2: Based on book value

342

82

205

56

225

46

36

23

-12

38

66

49

19,98324,209

9,637

11,047

8,844

2,358

1,977

2,288

2,947

2,036

3,597

2,631

4.2%

4.9%

4.3%

2.1%

5.1%

5.5%

3.7%

4.2%

4.6%

4.3%

4.3%

5.3%

3.4%

3.7%

3.6%

1.5%

4.5%

4.7%

2.5%

3.4%

3.9%

3.7%

3.7%

4.6%

60

Portfolio Lists

61

Financial Summary by Property (2/4)
16 th FP: November 2023 － April 2024
Property Name

Shibuya World
East Building

THINGS Aoyama

MI Cube Sendai
Clisroad

MI CubeMachida East

MI CubeShinsaibashi

182

182

182

61

CAINZ MALL
Hikone (land)

AEON Kasai

182

TsurumiFuga 1

182

BIGMOTOR Ginan(land)

182

182

Mi-NaraOperating days

182

Operating revenue

120

43

58

21

560

Lease business revenue

99

37

49

20

415

Other lease business revenue

21

5

8

1

144

Operating expense

182

MaxValu Takatori(land)

182

26

Not

8

17

2

Not

Not

Not

Not

Not

451

Outsourcing service expenses

7

disclosed

1

42

disclosed

disclosed

disclosed

disclosed

disclosed

110

Utilities expenses

5(Note 1)390(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

121

Property and other taxes

7

2

0

0

Repair expenses

0

0

2

0

8

Other expenses related to lease business

5

0

1

0

157

NOI

54

94

54

34

40

19

238

90

21

125

22

108

Depreciation

6

2

0

7

0

45

-

-

21

-

85

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

87

52

33

33

18

192

90

21

103

22

22

7

31

1

5

-

2

-

-

19

-

53

Capital expenditure
NCF
Book value
NOI yield (Note 2)
NOI yield after depreciation(Note 2)

Note 1: Not disclosed because tenant’s consent was not obtained.
Note 2: Based on book value

86

23

33

35

19

236

90

21

105

22

54

3,364

2,971

1,375

1,997

2,688

9,577

3,675

987

5,489

1,101

5,045

5.6%

3.7%

5.1%

4.1%

4.2%

5.0%

5.0%

4.4%

4.6%

4.1%

4.3%

5.2%

3.5%

4.9%

3.4%

4.2%

4.0%

5.0%

4.4%

3.8%

4.1%

0.9%

61

Portfolio Lists

62

Financial Summary by Property (3/4)
16 th FP: November 2023 － April 2024
Property Name

Hotel Sunroute
NiigataSuper Hotel
Sendai/Hirosedori

Daiwa Roynet
Hotel Akita

Smile Hotel
Osaka Tennoji

Super Hotel
Saitama/Omiya

Smile Hotel Kyoto
Karasumagojo

Operating days

182

182

182

182

182

182

Operating revenue

75

69

44

28

35

75

69

44

28

35

-

-

-

-

Lease business revenue
Other lease business revenue
Operating expense

Hotel Wing
International
Select Ueno/
Okachimachi

Comfort Hotel
Kitakami

EN HOTEL Ise

182

182

Smile Hotel
Naha
City Resort

182

Smile Hotel
Hakataeki-Mae

Kuretake Inn
Premium Nagoya
Nayabashi

Smile Hotel
Nagoya-Sakae

182

182

182

44

55

83

65

44

55

83

65

-

0

-

-

-

152

6

9

7

16

5

17

Not

Not

Not

18

8

7

Not

Outsourcing service expenses

1

1

-

0

-

0

disclosed

disclosed

disclosed000

disclosed

Utilities expenses

0

-

-

-

-

-

(Note 1)

(Note 1)

(Note 1)---

(Note 1)

Property and other taxes

2

7

6

3

4

3

7

5

5

Repair expenses

1

-

0

0

-

1

9

1

1

Other expenses related to lease business

0

0

0

11

0

12

0

0

0

69

59

36

11

30

26

55

21

80

37

74

57

53

18

17

6

3

6

3

11

9

10

10

8

7

6

NOI
Depreciation
Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

51

42

30

8

24

23

43

12

69

26

66

49

46

Capital expenditure

-

-

-

23

-

17

21

7

1

55

-

0

-

69

59

36

-11

30

9

34

14

78

-17

74

56

53

2,110

1,825

1,207

1,252

1,038

1,015

1,994

766

3,761

4,058

3,757

2,942

2,625

6.6%

6.6%

6.1%

1.9%

5.9%

5.3%

5.6%

5.7%

4.3%

1.9%

4.0%

3.9%

4.9%

4.9%

4.6%

5.1%

1.3%

4.7%

4.6%

4.4%

3.3%

3.7%

1.3%

3.5%

3.4%

4.3%

NCF
Book value
NOI yield(Note 2)

NOI yield after depreciation(Note 2)

Note 1: Not disclosed because tenant’s consent was not obtained.
Note 2: Based on book value

62

Portfolio Lists

63

Financial Summary by Property (4/4)
16 th FP: November 2023 － April 2024
Property Name

Hotel Wing
International
Select Nagoya
Sakae

Operating days

Hotel Kuretakeso
Hiroshima
Otemachi

152

152

Operating revenue

Fiel Johoku

Rokko Island DC

Odawara Material
Storage andDelivery Center(land)

182

182

182

YokohamaDaikokucho
MaintenanceCenter (land)Tokyo
Eiseigakuen
Senmongakko

182

Portfolio

182

OfficeRetailHotel

Residence

Other

182

182

182

182

182

182

67

5,887

3,078

1,512

774

67

455

Lease business revenue

65

5,002

2,381

1,326

773

65

454

Other lease business revenue

1

885

697

185

0

1

0

Operating expense

Not

Not

11

Not

Not

Not

Not

1,892

1,126

592

125

11

37

Outsourcing service expenses

disclosed

disclosed0

disclosed

disclosed

disclosed

disclosed

402

259

132

7

0

3

Utilities expenses(Note 1)

(Note 1)-

(Note 1)

(Note 1)

(Note 1)

(Note 1)

575

434

140

-

-

-

464

237

125

67

2

31

Property and other taxes

2

Repair expenses

4

89

45

19

19

4

0

Other expenses related to lease business

3

361

149

174

31

3

2

NOI
Depreciation

41

61

55

218

56

29

113

3,994

1,952

919

649

55

417

4

10

8

52

-

-

14

772

390

188

117

8

66

Loss on retirement of non-current assets

-

-

-

-

-

-

-

-

-

-

-

-

-

Income(loss) from real estate leasing business

36

50

47

166

56

29

98

3,221

1,561

731

531

47

350

Capital expenditure

-

-

-

-

-

-

4

1,042

791

120

126

-

4

41

61

55

218

56

29

108

2,952

1,160

799

522

55

413

1,824

2,692

2,291

7,518

2,423

1,514

4,099

180,555

91,561

40,38430,7632,291

15,555

5.5%

5.5%

4.9%

5.8%

4.7%

3.9%

5.5%

4.4%

4.3%

4.6%

4.2%

4.9%

5.4%

4.9%

4.5%

4.1%

4.4%

4.7%

3.9%

4.8%

3.6%

3.4%

3.6%

3.5%

4.1%

4.5%

NCF
Book value
NOI yield(Note 2)

NOI yield after depreciation(Note 2)

Note 1: Not disclosed because tenant’s consent was not obtained.
Note 2: Based on book value

63

Portfolio Lists

64

Appraisal Value Summary (as of April 30, 2024) (1/4)
Book Value
Asset Type

OfficeProperty Name

Appraisal

ChangeValue Calculated

Value

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

Terminal
Capitalization
Rate(million yen)(million yen)(million yen)

Shinagawa Seaside Parktower

19,98322,063

2,079

10.4%

21,04822,1903.7%

21,8733.4%

3.8%

Kawasaki Tech Center

24,20925,000790

3.3%

20,80025,7004.1%

24,700

3.9%

4.3%

Shinjuku Eastside Square

9,637

10,900

1,262

13.1%

10,15011,0503.5%

10,700

3.3%

3.7%

Tokyo Front Terrace

11,047

10,692

-355

-3.2%

10,692

10,742

3.6%

10,6423.3%

3.6%

MI Terrace Nagoya-Fushimi

8,844

10,800

1,955

22.1%

10,90010,9003.5%

10,700

3.3%

3.6%

Hiroshima Rijo-dori Building

2,358

2,520

161

6.8%

2,280

2,600

4.5%

2,490

4.3%

4.7%

BizMiiX Yodoyabashi

1,977

2,230

252

12.8%

1,150

2,360

4.6%

2,170

4.4%

4.8%

TCA Building

2,288

2,210

-78

-3.4%

2,270

2,280

4.1%

2,180

3.9%

4.3%

Ehime Building/Hiroshima

2,947

3,040

92

3.1%

3,340

3,120

4.3%

3,000

4.1%

4.5%

MI Terrace Sendai Hirose-dori

2,036

2,320

283

13.9%

2,410

2,400

4.2%

2,280

4.0%

4.4%

MI Terrace Kita-Ueno

3,597

4,100

502

14.0%

4,050

4,230

3.6%

4,050

3.7%

3.8%

MI Terrace Hamamatsu

2,631

2,770

138

5.3%

1,200

2,900

4.5%

2,730

4.3%

4.7%

91,561

98,645

7,084

7.7%

90,291

100,472-

97,515--

Office(ratio)Capitalization Method

Note: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.

64

Portfolio Lists

65

Appraisal Value Summary (as of April 30, 2024) (2/4)
Book Value
Asset Type

RetailProperty Name

Appraisal

ChangeValue Calculated

Value(ratio)Capitalization Method

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

Terminal
Capitalization
Rate(million yen)(million yen)(million yen)

Shibuya World East Building

3,364

5,640

2,275

67.7%

4,600

5,720

3.1%

5,560

2.9%

3.2%

THINGS Aoyama

2,971

3,330

358

12.1%

3,560

3,430

3.1%

3,280

2.9%

3.3%

MI Cube Sendai Clisroad

1,375

1,450

74

5.4%

1,100

1,480

4.2%

1,440

4.0%

4.4%

MI Cube Machida East

1,997

2,250

252

12.6%

1,970

2,360

4.2%

2,200

4.3%

4.4%

MI Cube Shinsaibashi

2,688

2,850

161

6.0%

2,760

2,920

3.2%

2,820

3.0%

3.4%

AEON Kasai

9,577

9,540

-37

-0.4%

10,000

9,590

4.9%

9,490

4.5%

5.1%

CAINZ MALL Hikone (land)

3,675

4,290

614

16.7%

4,530

4,300

4.5%

4,290

4.5%

-

MaxValu Takatori (land)

987

1,070

82

8.4%

970

1,100

4.2%

1,070

4.2%

-

Tsurumi Fuga 1

5,489

5,760

270

4.9%

5,680

5,860

4.2%

5,710

4.3%

4.4%

BIGMOTOR Ginan (land)

1,101

1,200

98

8.9%

1,190

1,230

4.2%

1,200

4.1%

-

Mi-Nara

5,045

3,300

-1,745-34.6%

6,520

3,380

5.5%

3,270

5.0%

5.5%

Retail38,27340,680

2,406

6.3%

42,88041,370-40,330--Note: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.

65

Portfolio Lists

66

Appraisal Value Summary (as of April 30, 2024) (3/4)
Book Value
Asset Type

Hotel

Property Name

Appraisal

ChangeValue Calculated

Value

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

Terminal
Capitalization
Rate(million yen)(million yen)(million yen)

Hotel Sunroute Niigata

2,110

2,330

219

10.4%

1,190

2,360

5.1%

2,320

4.9%

5.3%

Daiwa Roynet Hotel Akita

1,825

2,210

384

21.1%

978

2,170

5.2%

2,220

5.0%

5.4%

Super Hotel Sendai/Hirose-dori

1,207

1,660

452

37.4%

1,750

1,670

4.4%

1,650

4.2%

4.5%

Smile Hotel Osaka Tennoji

1,252

1,750

497

39.7%

1,230

1,760

4.1%

1,730

3.9%

4.2%

Super Hotel Saitama/Omiya

1,038

1,330

291

28.0%

1,280

1,340

4.5%

1,320

4.3%

4.6%

Smile Hotel Kyoto Karasumagojo

1,015

1,550

534

52.7%

1,370

1,560

4.4%

1,540

4.2%

4.5%

EN HOTEL Ise

1,994

1,910

-84

-4.3%

405

1,920

5.3%

1,910

5.1%

5.5%

766

821

54

7.2%

604

822

4.9%

821

4.7%

5.1%

Hotel Wing International Select Ueno/Okachimachi

3,761

4,190

428

11.4%

3,060

4,270

3.6%

4,160

3.4%

3.8%

Smile Hotel Naha City Resort

4,058

4,090

31

0.8%

2,000

4,220

4.9%

4,030

4.7%

5.1%

Smile Hotel Hakataeki-Mae

3,757

3,710

-47

-1.3%

2,160

3,810

4.1%

3,660

3.9%

4.3%

Smile Hotel Nagoya-Sakae

2,942

2,960

17

0.6%

1,960

3,020

4.3%

2,930

4.1%

4.5%

Kuretake Inn Premium Nagoya Nayabashi

2,625

2,900

274

10.5%

2,650

2,920

4.1%

2,870

3.9%

4.3%

Hotel Wing International Select Nagoya Sakae

1,824

2,200

375

20.6%

2,140

2,220

4.1%

2,180

3.9%

4.3%

Hotel Kuretakeso Hiroshima Otemachi

2,692

3,010

317

11.8%

2,640

3,030

4.5%

2,980

4.3%

4.7%

32,87336,621

3,747

11.4%

25,41737,092-36,321--

Comfort Hotel Kitakami

Hotel(ratio)Capitalization Method

Note: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.

66

Portfolio Lists

67

Appraisal Value Summary (as of April 30, 2024) (4/4)
Book Value
Asset Type

Residence

Other

Property Name

ChangeValue Calculated

Value(ratio)Capitalization Method

Using Cost Approach

Value(million yen)(million yen)

DCF Method

Capitalization
Rate

Value

Discount(million yen)

Rate

Terminal
Capitalization
Rate(million yen)(million yen)(million yen)

Fiel Johoku

2,291

2,510

218

9.5%

1,330

2,640

4.5%

2,460

4.2%

4.6%

Residence

2,291

2,510

218

9.5%

1,330

2,640

-

2,460

-

-

Rokko Island DC

7,518

9,150

1,631

21.7%

9,110

9,950

4.7%

9,097

4.5%

4.9%

Odawara Material Storage and Delivery Center (land)

2,423

2,550

126

5.2%

2,410

2,540

4.2%

2,550

4.1%

-

Yokohama-Daikokucho Maintenance Center (land)

1,514

1,590

75

5.0%

1,500

1,590

3.5%

1,590

3.5%

-

Tokyo Eiseigakuen Senmongakko

4,099

4,360

260

6.4%

2,620

4,410

4.9%

4,340

4.7%

5.1%

15,555

17,650

2,094

13.5%

15,64018,490-17,577--

180,555

196,106

15,5508.6%

175,558

200,064-

194,203

-

-

Other
Total

Appraisal

Note: Figures shown are amounts obtained by multiplying values listed on appraisal reports by quasi-co-ownership stakes for assets with quasi-co-ownership.

67

Portfolio Lists

68

Appraisal Value Summary (Changes from Previous Period) (1/4)
Appraisal Value
Asset Type

OfficeProperty Name

Capitalization Rate
Changes inAppraisal(ratio)Terminal Capitalization Rate

Discount Rate(change)(change)(change)

Shinagawa Seaside Parktower

22,063

-190

-0.9%

3.7%

-

3.4%

-

3.8%

-

Kawasaki Tech Center

25,000

-

-

4.1%

-

3.9%

-

4.3%

-

Shinjuku Eastside Square

10,900

-

-

3.5%

-

3.3%

-

3.7%

-

Tokyo Front Terrace

10,692

-

-

3.6%

-

3.3%

-

3.6%

-

MI Terrace Nagoya-Fushimi

10,800

-

-

3.5%

-

3.3%

-

3.6%

-

Hiroshima Rijo-dori Building

2,520

-

-

4.5%

-

4.3%

-

4.7%

-

BizMiiX Yodoyabashi

2,230

20

0.9%

4.6%

-

4.4%

-

4.8%

-

TCA Building

2,210

-60

-2.6%

4.1%

0.1%

3.9%

0.1%

4.3%

0.1%

Ehime Building/Hiroshima

3,040

10

0.3%

4.3%

-

4.1%

-

4.5%

-

MI Terrace Sendai Hirose-dori

2,320

-

-

4.2%

-

4.0%

-

4.4%

-

MI Terrace Kita-Ueno

4,100

30

0.7%

3.6%

-0.1%

3.7%

-0.1%

3.8%

-0.1%

2,770

-

-

4.5%

-

4.3%

-

4.7%

-

98,645

2,579

2.7%

-

-

-

-

-

-

MI Terrace Hamamatsu
OfficeNote:(million yen)

Changes inAppraisal(amount)(Note)"Changes in Appraisal" of properties acquired in 16th FP are shown as "-", but total of asset type and portfolio reflect the change of them.

68Portfolio Lists

69

Appraisal Value Summary (Changes from Previous Period) (2/4)
Appraisal Value
Asset Type

RetailNote:

Property Name(million yen)

Changes inAppraisal(amount)

Capitalization Rate
Changes inAppraisal(ratio)Terminal Capitalization Rate

Discount Rate(change)(change)(change)

Shibuya World East Building

5,640

80

1.4%

3.1%

-

2.9%

-

3.2%

-

THINGS Aoyama

3,330

-

-

3.1%

-

2.9%

-

3.3%

-

MI Cube Sendai Clisroad

1,450

-

-

4.2%

-

4.0%

-

4.4%

-

MI Cube Machida East

2,250

-

-

4.2%

-0.0%

4.3%

-

4.4%

-

MI Cube Shinsaibashi (Note)

2,850

-

-

3.2%

-

3.0%

-

3.4%

-

AEON Kasai

9,540

-

-

4.9%

-

4.5%

-

5.1%

-

CAINZ MALL Hikone (land)

4,290

-

-

4.5%

-

4.5%

-

-

-

MaxValu Takatori (land)

1,070

20

1.9%

4.2%

-0.1%

4.2%

-

-

-0.1%

Tsurumi Fuga 1

5,760

-10

-0.2%

4.2%

-

4.3%

-

4.4%

0.0%

BIGMOTOR Ginan (land)

1,200

-

-

4.2%

-

4.1%

-

-

-

Mi-Nara

3,300

-480

-12.7%

5.5%

-0.1%

5.0%

-0.1%

5.5%

-0.1%

Retail

40,680

2,460

6.4%

-

-

-

-

-

-

"Changes in Appraisal" of properties acquired in 16th FP are shown as "-", but total of asset type and portfolio reflect the change of them.

69

Portfolio Lists

70

Appraisal Value Summary (Changes from Previous Period) (3/4)
Appraisal Value
Asset Type

Hotel

Property Name(million yen)

Capitalization Rate
Changes inAppraisal(ratio)Terminal Capitalization Rate

Discount Rate(change)(change)(change)

Hotel Sunroute Niigata

2,330

-

-

5.1%

-

4.9%

-

5.3%

-

Daiwa Roynet Hotel Akita

2,210

-

-

5.2%

-

5.0%

-

5.4%

-

Super Hotel Sendai/Hirose-dori

1,660

10

0.6%

4.4%

-

4.2%

-

4.5%

-0.1%

Smile Hotel Osaka Tennoji

1,750

160

10.1%

4.1%

-

3.9%

-

4.2%

-0.1%

Super Hotel Saitama/Omiya

1,330

-

-

4.5%

-

4.3%

-

4.6%

-0.1%

Smile Hotel Kyoto Karasumagojo

1,550

250

19.2%

4.4%

0.4%

4.2%

0.5%

4.5%

0.2%

EN HOTEL Ise

1,910

-

-

5.3%

-

5.1%

-

5.5%

-

821

-

-

4.9%

-

4.7%

-

5.1%

-

Hotel Wing International Select Ueno/Okachimachi

4,190

-

-

3.6%

-

3.4%

-

3.8%

-

Smile Hotel Naha City Resort

4,090

-

-

4.9%

-

4.7%

-

5.1%

-0.0%

Smile Hotel Hakataeki-Mae

3,710

-

-

4.1%

-

3.9%

-

4.3%

-0.0%

2,960

-

-

4.3%

-

4.1%

-

4.5%

-

2,900

-

-

4.1%

-

3.9%

-

4.3%

-

2,200

-

-

4.1%

-

3.9%

-

4.3%

-

3,010

-

-

4.5%

-

4.3%

-

4.7%

-

36,621

8,530

30.4%

-

-

-

-

-

-

Comfort Hotel Kitakami

Smile Hotel Nagoya-Sakae
Kuretake Inn Premium Nagoya Nayabashi(Note)

Hotel Wing International Select Nagoya Sakae (Note)
Hotel Kuretakeso Hiroshima Otemachi
Hotel

Note:

Changes inAppraisal(amount)(Note)"Changes in Appraisal" of properties acquired in 16th FP are shown as "-", but total of asset type and portfolio reflect the change of them.

70

Portfolio Lists

71

Appraisal Value Summary (Changes from Previous Period) (4/4)
Appraisal Value
Asset Type

Residence

Other

Property Name

Note:

Capitalization Rate
Changes inAppraisal(ratio)Terminal Capitalization Rate

Discount Rate(change)(change)(change)

Fiel Johoku

2,510

-

-

4.5%

0.0%

4.2%

-

4.6%

-

Residence

2,510

-

-

-

-

-

-

-

-

Rokko Island DC

9,150

-

-

4.7%

-

4.5%

-

4.9%

-

Odawara Material Storage and Delivery Center (land)

2,550

-10

-0.4%

4.2%

-

4.1%

-

-

-

Yokohama-Daikokucho Maintenance Center (land)

1,590

-

-

3.5%

-

3.5%

-

-

-

Tokyo Eiseigakuen Senmongakko

4,360

-

-

4.9%

-

4.7%

-

5.1%

0.0%

17,650

-10

-0.1%

-

-

-

-

-

-

196,106

13,559

7.4%

-

-

-

-

-

-

Other
Total

(million yen)

Changes inAppraisal(amount)"Changes in Appraisal" of properties acquired in 16th FP are shown as "-", but total of asset type and portfolio reflect the change of them.

71

72

Appendix 4.
Finance / Others

Finance / Others

73

Overview of Loans (as of April 30, 2024) (1/2)
Debt Providers

Amount(million yen)Fixed /
Floating Rate

Interest Rate

Drawdown Date

500

Floating

0.89% (Note 1)

Term

Mturity Date

Principal
Repayment Method

Description

Short-term

Mizuho Bank

November 30, 2023

1.0 years November 29,2024 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Banking Corporation / Resona Bank

8,000

Fixed

0.75% (Note 2)

December 16, 2016

10.0 years November 30,2026 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank

5,000

Fixed

0.59%

December 16, 2016

8.0 years November 29,2024 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank / SBI Shinsei Bank

3,000

Fixed

0.54% (Note 2)

October 26, 2017

7.8 years July 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

The Nanto Bank

1,000

Fixed

0.54%

(Note 2)October 26, 2017

7.8 years July 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Resona Bank

1,000

Fixed

0.71% (Note 2)

October 26, 2017

9.8 years July 30,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Banking Corporation / The Bank of Fukuoka

5,000

Fixed

0.73% (Note 2)

October 31, 201710.0 years October 29,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

SBI Shinsei Bank

1,000

Fixed

0.57%

(Note 2)

March 01, 2018

7.9 years January 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Resona Bank

500

Fixed

0.57% (Note 2)

March 01, 2018

7.9 years January 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumiomo Mitsui Banking Corporation

2,000

Fixed

0.53%

May 15, 2018

7.0 years April 30,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,500

Fixed

0.56%

May 15, 2018

7.0 years April 30,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #1

1,000

Fixed

0.64%

July 26, 201810.0 years July 26,2028-

Unsecured and Non-guaranteed

Long-term

Mizuho Trust & Banking

1,700

Fixed

0.62%

August 01, 201810.0 years July 31,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

2,500

Fixed

0.68%

November 01, 2018

8.0 years October 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumiomo Mitsui Banking Corporation

3,000

Fixed

0.57%

November 01, 2018

7.0 years October 31,2025

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #2

1,000

Fixed

0.80%

July 13, 2020

10.0 years July 12,2030-

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #3

2,000

Fixed

0.70%

September 28, 2021

10.0 years September 26,2031-

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #4

1,000

Fixed

0.98%

September 28, 2021

15.0 years September 26,2036-

Unsecured and Non-guaranteed

Long-term

MUFG Bank

1,500

Fixed

0.38%

October 29, 2021

3.0 years October 31,2024

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Unsecured Bond #5

1,200

Fixed

0.70%

November 30, 2021

10.0 years November 28,2031-

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,500

Fixed

0.40% (Note 2)

November 30, 2021

4.9 years October 30,2026

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

3,300

Fixed

0.46% (Note 2)

November 30, 2021

7.0 years November 30,2028 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

4,000

Fixed

0.51%

November 30, 2021

8.0 years November 30,2029 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

MUFG Bank

1,000

Fixed

0.38%

January 12, 2022

3.0 years December 30,2024 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank

1,000

Fixed

0.38%

(Note 2)January 12, 2022

5.0 years December 30,2026 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

SBI Shinsei Bank

1,000

Fixed

0.43% (Note 2)

January 12, 2022

5.0 years December 30,2026 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumiomo Mitsui Banking Corporation

1,000

Fixed

0.48% (Note 2)

January 12, 2022

7.0 years December 29,2028 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,000

Fixed

0.62%

(Note 2)

March 25, 2022

6.9 years February 28,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Resona Bank

300

Fixed

0.60% (Note 2)

March 25, 2022

6.9 years February 28,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed(Note 2)

(Note 2)

(Note 2)

(Note 2)

Note 1: Base rate is one-month Japanese yen TIBOR rate.
Note 2: MIRAI signed an interest rate swap agreement. Accordingly, the interest rate provided above bas been fixed under the terms of this agreement and will be used in repayment.
Note 3: Base rate is three-month Japanese yen TIBOR rate.

73

Finance / Others

74

Overview of Loans (as of April 30, 2024) (2/2)
Amount(million yen)

Debt Providers

Fixed /
Floating Rate

Interest Rate

Drawdown DateTerm

Mturity Date

Principal
Repayment Method

Description

Long-term

Sumitomo Mitsui Trust Bank / SBI Shinsei Bank / The Juhachi-Shinwa Bank

7,000

Fixed

0.72% (Note 2)

November 30, 2022

5.0 years November 30,2027 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

The Bank of Fukuoka

1,500

Fixed

0.68% (Note 2)

June 19, 2023

5.0 years May 31,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitomo Mitsui Trust Bank / SBI Shinsei Bank / Kansai Mirai Bank / The Chiba Bank

3,500

Fixed

1.05%

October 31, 2023

5.0 years October 31,2028

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitmo Mitsui Banking Corporation / Fukuoka Bank

2,500

Fixed

0.67% (Note 2)

November 30, 2023

3.0 years November 30,2026 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitmo Mitsui Banking Corporation / Aozora Bank / Ogaki Kyoritsu Bank

3,500

Floating

0.54%(Note 3)

November 30, 2023

5.0 years November 30,2028 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitmo Mitsui Banking Corporation / Resona Bank

4,000

Floating

0.58% (Note 3)

November 30, 2023

7.0 years November 29,2030 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Development Bank of Japan

1,500

Fixed

1.24%

November 30, 2023

7.0 years November 29,2030 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

MUFG Bank

1,000

Fixed

0.90%

December 01, 2023

5.0 years November 30,2028 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

SBI Shinsei Bank

1,000

Floating

0.57% (Note 3)

December 01, 2023

7.0 years November 29,2030 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Sumitmo Mitsui Banking Corporation

1,000

Fixed

1.12%

December 01, 2023

7.0 years November 29,2030 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

The 77 Bank

500

Fixed

1.17%

December 01, 2023

7.0 years November 29,2030 Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,000

Fixed

1.19% (Note 2)

January 31, 2024

7.5 years July 31,2031

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

The Nishi-Nippon City Bank

500

Floating

0.53%(Note 3)

March 01, 2024

5.0 years February 28,2029

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Bank

1,000

Floating

0.57% (Note 3)

March 01, 2024

7.0 years February 28,2031

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Trust & Banking

1,000

Floating

0.57%

March 01, 2024

7.0 years February 28,2031

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Kansai Mirai Bank

400

Fixed

0.82% (Note 2)

April 30, 2024

3.1 years May 31,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

MUFG Bank

1,500

Fixed

0.82%

April 30, 2024

3.0 years April 30,2027

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Long-term

Mizuho Trust & Banking

2,000

Floating

0.57%

7.0 years April 30,2031

Bullet Repayment on Maturity

Unsecured and Non-guaranteed

Total/Average

91,900(Note 2)

(Note 3)(Note 3)

April 30, 2024

0.66%

Note 1: Base rate is one-month Japanese yen TIBOR rate.
Note 2: MIRAI signed an interest rate swap agreement. Accordingly, the interest rate provided above bas been fixed under the terms of this agreement and will be used in repayment.
Note 3: Base rate is three-month Japanese yen TIBOR rate.

7.1 years

74

Finance / Others

75

Unitholders’ Composition (as of the End of 16th FP)
Number of Unitholders / Ownership by Investor Type
Number ofInvestment
Units% of Total

vs. Previous
FP (Note)

Number ofUnitholders% of Total

Major Unitholders

vs. Previous
FP

Individuals/Others

741,386

38.9%

1.8%

40,185

97.7%

0.1％

Financial
institutions

771,00940.4%(0.4%)

86

0.2%

Non-Japanese

280,764

14.7%(1.4％)

405

Other Japanese
corporations

114,281

6.0%

0.0%

1,907,440

100.0%

Total

Other Japanese corporations
6.0%
Non-Japanese
14.7%

-

Financial institutions
40.4%

Number ofInvestment
Units% of Total

Custody Bank of Japan, Ltd. (Trust account)

266,324

14.0%(0.0％)The Master Trust Bank of Japan, Ltd. (Trust account)

229,090

12.0%

1.0%

(0.0％)The Nomura Trust and Banking Co., Ltd.
(Investment trust account)

94,461

5.0%

440

1.1%

(0.0％)

STATE STREET BANK WEST CLIENT- TREATY 505234

30,856

1.6%

41,116100.0%-JP MORGAN CHASE BANK 385771

30,753

1.6%

SSBTC CLIENT OMNIBUS ACCOUNT

22,104

1.2%

THE NOMURA TRUST AND BANKING CO., LTD. AS THE
TRUSTEE OF REPURCHASE AGREEMENT MOTHER FUND

21,600

1.1%

MITSUI & CO. ASSET MANAGEMENT HOLDINGS LTD.

20,000

1.0%

IDERA Capital Management Ltd.

20,000

1.0%

STATE STREET BANK AND TRUST COMPANY 505103

18,4281.0%

753,616

39.5%

Other Japanese corporations 1.1%
Non-Japanese 1.0%

Individuals/Others
38.9% Financial institutions
0.2%
Number ofInvestment
Units

Unitholders

Individuals/Others
97.7%

Number ofUnitholders

Total

75

Finance/Others

Introduction of Unitholder Benefit Program (Discounted Hotel Rates)

76

Implement the Benefit Program to increase unitholders’ profits and support the hotel industry
Overview of the Program

Eligible
Unitholders

All unitholders whose names arelisted or recorded on unitholders’registry of MIRAI as of April 30,
2024 and who hold at least one
unit(There are no requirements for thenumber of units held.)

Details of
the Benefit
Program

Preferential rates will be applied
when eligible unitholders stay at
the following applicable hotels

EN HOTEL /Court Hotel etc.
(17 hotels)

2. Hotel Wing International

From July 11, 2024
to June 30, 2025

Note: The number of locations is based on information of domestic locations as of April 2024.

EN Hotel Ise

Kumejima EEF
BEACH HOTEL

Hotel Wing
International SelectUeno/Okachimachi

Hotel Wing
International SelectNagoya Sakae

Smile Hotel
Osaka Tennoji

Smile Hotel
Naha City Resort

Hotel Wing
International(39 hotels)

1. EN HOTEL / Court Hotel etc.
3. Smile Hotel etc. NEW

Period ofValidity

Introduction of Applicable Hotels (Note)

Smile Hotel etc.
(84 hotels)76

Finance/Others

77

Company Profile (as of June 17, 2024)
Asset Manager
Name

Mitsui Bussan & IDERA Partners Co., Ltd.

Address

3-2-1 Nishi-kanda Chiyoda-ku, Tokyo 101-0065, Japan

Management

General Meeting of
Shareholders

Corporate Auditor

Representative Director, President/ Michio Suganuma
Director, Deputy President and CIO
and GM of Investment & Asset Management Division/ Hiroyuki Iwasaki
Director, CFO and GM of Accounting & Administrative Division/ Kunihiro Ueda
Director (part-time)/ Tamotsu Hagino
Director (part-time)/ Seiji Takeuchi
Director (part-time)/ Fumihiko Niwa
Corporate Auditor (part-time)/ Jun Notoya

Board of Directors

Investment
Management
Committee

Compliance
Committee
President
Compliance Officer

Internal Audit Div.

Shareholders

Mitsui & Co. Asset Management Holdings Ltd. (50%)
IDERA Capital Management Ltd. (50%)

Paid-in Capital¥200 million

Registration &Licenses

Building lots and building transaction business; Tokyo Governor's Office license (2) No.98041
Discretionary transaction agent; Minister of Land, Infrastructure, and Transport Approval No.94
Financial Instruments Business Operator (Director of Kanto Finance Bureau (Kinsho) No.2876)

Investment & AssetManagement Div.

Accounting &Administrative Div.

Finance & Planning
Div.

Asset Management
Group

Investment Group

Governance Structure of MIRAI
2 Asset custody agreement

Sponsors
Mitsui & Co. Asset Management Holdings
Ltd.
IDERA Capital Management Ltd.

8 Sponsor support agreement (Note)
Board of Directors

External Asset Manager
Mitsui Bussan & IDERA Partners Co., Ltd.

Asset Custodian
Sumitomo Mitsui Trust Bank, Limited

Asset management
1 agreement

GeneralMeeting ofUnitholders

Executive Director:
Michio Suganuma
Supervisory Director:
Takehiko Negishi
Supervisory Director:
Hideaki Nishii

Note: Sponsor support agreements are entered into separately between each of the sponsor company and the Asset Management Company and MIRAI.

General administrationagreement (accounting)4

General administrationagreement (tax payment)

General Administrator

General administrationagreement(institutional administration)

General Administrator

5

Accounting
AuditorErnst & Young
ShinNihon LLC

General Administrator

3

Reiwa Accounting Holdings Co., Ltd.

Reiwa Tax Corporation
Mizuho Trust & Banking Co., Ltd
Transfer Agent

6 Transfer agency agreement

Sumitomo Mitsui Trust Bank, Limited

Fiscal Agency Agreement(investment corporation
bonds)

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.

7

General Administrator

77

Disclaimer

78

Monetary amounts are rounded down to billions, millions or thousands of yen.
Percentage figures are rounded off to the first decimal place.
This material contains forward-looking business results, plans, and management targets and strategies. Such forward-looking statements are based on current
assumptions and conditions, including those regarding anticipated future developments and business environmental trends, and these assumptions andconditions may not always be correct. Such forward-looking statements assume the investment policy of MIRAI, the market environment, interest rate conditions,business practices and other fact relationships and applicable laws and regulations as of the date this material was published and they do not reflect or take into
consideration any change in circumstances occurring after such date. Forward-looking statements involve known and unknown risks, uncertainties and otherfactors, whether express or implied, and the actual performance, operating results, financial situation and other results of MIRAI may vary significantly due to avariety of factors.
This material is provided for your information and does not constitute a solicitation to buy the investment securities of MIRAI or to conclude any other financial
instrument transaction contract. In making investments, investors should do so based on judgements and responsibilities of their own.
The investment units of MIRAI are closed-end fund investment units, whereby investment units are not redeemable at the request of investors. Investors wishingto liquidate their investment units will in principle need to sell them to third parties. The market value of the investment units will be influenced by investor
supply and demand at securities exchanges and will fluctuate in accordance with the situation for interest rates, economic circumstances, real estate prices, andother market factors. It is therefore possible that investors will not be able to sell the investment units at their acquisition price and, as a result, may suffer losses.
MIRAI plans to make cash distributions to investors, but whether or not distributions are made and the amount of distributions thereof are not guaranteed under
any circumstances. Gains or losses on the sale of real estate, losses on the disposal of fixed assets accompanying the replacement of structures, and otherfactors would cause fiscal-period income to vary greatly, which would result in change in amount of distribution to be made.
Information provided herein does not constitute any of the disclosure documents or performance reports required by the Financial Instruments and Exchange Act
or the Act on Investment Trusts and Investment Corporations or by the Securities Listing Regulations of the Tokyo Stock Exchange.
This material is to be read and used at the responsibility of customers. MIRAI and related persons involved in the preparation and publication of this material will
not bear any responsibility for any damage arising from the use of this material (whether for direct or indirect damage, and regardless of the cause thereof).
While every effort has been made to avoid errors and omissions regarding the information presented in this material, the material has been created as an easy
reference for customers, and the presented information may contain inaccuracies of misprints. MIRAI bears no responsibility for the accuracy. This material issubject to change/discontinuation without notice. MIRAI is not obliged to update or announce any of the information contained in this material (including
forward-looking statements).
MIRAI holds the copyrights to the information appearing in this material. Copying, altering, publishing, distributing, appropriating, or displaying this informationor using it for commercial purposes without the prior approval of MIRAI is prohibited. Also, trademarks (trademarks, logos, and service marks) related to MIRAI
appearing in this material are owned by MIRAI, and copying, altering, publishing, distributing, appropriating, or reproducing such trademarks or using them forcommercial purposes without the permission of MIRAI is prohibited.
This material may include properties which are not held by or planned to be acquired by MIRAI.
This material in intended for the use of residents of Japan only.
@ MIRAI Corporation. All rights reserved.
Asset Manger: Mitsui & IDERA Partners Co., Ltd.
-Financial Instruments Business Operator (Director of Kanto Finance Bureau (Kinsho) No. 2876)
78