(REIT) Financial Report for the Fiscal Period ended April 30, 2024
(The 16th Period)
June 17, 2024
Name of REIT issuer:
Security code:
Representative:

MIRAI Corporation
3476
Michio Suganuma, Executive Director

Name of asset manager:
Representative:
Contact:

Mitsui Bussan & IDERA Partners Co., Ltd.
Michio Suganuma, Representative Director, President
Kunihiro Ueda, Director, CFO
TEL: +81-(0)3-6632-5960

Scheduled date for submission of securities report:
Scheduled date for commencing dividend payments:
IR Material:
IR Meeting:Stock exchange listing: Tokyo Stock Exchange
URL: https://3476.jp/en/

July 26, 2024
July 12, 2024

Will be posted on the website
Will be held for institutional investors and securities analysts(Figures are rounded down to the nearest million yen)
1. Performance for the Fiscal Period ended April 2024 (from November 1, 2023 to April 30, 2024)(1) Operating Results(% represents change from the previous period)
Operating Revenue
Operating Profit
Ordinary Profit
Net profit
Period ended
Million yen%
Million yen%
Million yen%
Million yen
%
5,887
2.5
2,660
7.8
2,273
5.2
2,244
4.3
Apr. 30, 2024
Oct. 31, 2023
5,744
(9.0)
2,467
(12.5)
2,160(14.3)
2,153(12.0)Net Profit per Unit

Net Profit to Net Assets

Ordinary Profit toTotal Assets

Ordinary Profit toOperating Revenue

Period ended
Yen
%
%
%
1,190
2.7
1.3
38.6
Apr. 30, 2024
Oct. 31, 2023
1,215
2.7
1.2
37.6
(Note) Net profit per unit is calculated by dividing the net income by the day-weighted average number of investment units. (Fiscal
period ended October 31, 2023: 1,771,440 units, Fiscal period ended April 30, 2024: 1,886,264 units)(2) Distributions
Distributions per
Unit

Distributions in
Total
excess ofDistributions inDistributions to(excluding distributions
Payout Ratio
earnings per
excess of
Net Assets(excluding distributions inin excess of earnings)
Unitearnings
excess of earnings)
Period ended
Yen
Million yen
Yen
Million yen
%
%
1,150
2,193
97.7
2.5
Apr. 30, 2024
Oct. 31, 2023
1,215
2,152
100.0
2.6
(Note 1) Payout ratio = Total distributions (excluding distributions in excess of earnings) / Net profit * 100(Note 2) Distributions to net assets are calculated based on total distributions (excluding distributions in excess of earnings).
Total Distributions(3) Financial Position
Total Asset
Period ended
Apr. 30, 2024
Oct. 31, 2023

Net Asset

Million yen
187,562
174,746

Net Assets to Total Assets

Million yen
86,986
81,393

%
46.4
46.6

Net Assets per Unit
Yen
45,60345,947(4) Cash Flows
Operating Activities
Period ended
Apr. 30, 2024
Oct. 31, 2023

Million yen
2,683
2,923

Investing Activities
Million yen(12,611)
(671)

－

1

－

Cash and Cash Equivalents
at End of Period
Million yen
Million yen
9,782
5,314
(2,314)
5,460

Financing Activities

2. Forecasts for the Fiscal Period ending October 2024 (from May 1, 2024 to October 31, 2024) andFiscal Period ending April 2025 (from November 1, 2024 to April 30, 2025)(% represents change from the previous period)
Distributions per Distributions in
Unit (excluding
Operating Revenue Operating Profit
Ordinary Profit
Net Profit
excess of earnings
Distributions in excess
per Unitof earnings)
MillionMillionMillionMillion
%
%
%
%
yen
yen
yen
yen
Oct. 31, 2024
6,151
4.5
2,648
(0.4)
2,265
(0.3)
2,262
0.8
Apr. 30, 2025
6,081
(1.1)
2,709
2.3
2,309
1.9
2,308
2.0
(Reference) Forecasted net profit per unit (Forecasted net profit / Forecasted unit at end of period)
The Fiscal Period ending October 2024:
Forecasted unit at end of period 1,907,440 units Forecasted net profit per unit 1,185 yen
The Fiscal Period ending April 2025:
Forecasted unit at end of period 1,907,440 units Forecasted net profit per unit 1,210 yen
Period ending

Yen

Yen

1,185
1,210

-

* Others(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements due tocorrections of errors(i) Changes in accounting policies due to revisions to accounting standards(ii) Changes in accounting policies other than (i)(iii) Changes in accounting estimates(iv) Restatement of prior period financial statements due to corrections of errors

None
None
None
None

(2) Number of investment units issued and outstanding(i) Number of investment units (including treasury units) issued and outstanding at the end of each period
As of Apr. 30, 2024
1,907,440 units As of Oct. 31, 2023
1,771,440 units(ii) Number of treasury units issued and outstanding at end of period
As of Apr. 30, 2024
0 unit As of Oct. 31, 2023
0 unit* Financial Report is not subject to audit by certified public accountants or audit corporations.
* Special noteThis document contains forecasts and other forward-looking statements based on the information currently available and on
certain assumptions judged as rational by MIRAI Corporation (hereinafter “MIRAI”), and the actual operating results and so on
may differ significantly from that anticipated by MIRAI due to various factors. Moreover, the forecasts are not intended toguarantee any amount of dividend distribution and distribution in excess of earnings. For notes regarding assumptions underlying
these forecasts, please refer to “Assumptions Underlying Forecasts for the Fiscal Periods Ending October 31, 2024 and April 30,2025” on page 3.

－

2

－

Assumptions Underlying Forecasts for the Fiscal Periods Ending October 31, 2024 and April 30, 2025
Item
Calculation period

Portfolio assets
Total number ofinvestment units
issuedInterest-bearing debt

Assumptions

・・

The Fiscal Period Ending October 2024: May 1, 2024 to October 31, 2024 (184 days)
The Fiscal Period Ending April 2025: November 1, 2024 to April 30, 2025 (181 days)
The forecasts assume that MIRAI owns 43 assets as real estate and real estate trust beneficiaries (hereinafter the“Portfolio assets”) as of the released of this document.
It assumes that there is no movement of the “Portfolio assets” (acquisition of new assets and/or dispositions of assets).
Changes may occur in reality due to changes in the “Portfolio assets”.

・・

It is assumed that total number of investment units outstanding is 1,907,440 units.
No changes in the number of investment units due to any issuances of new units are assumed until April 30, 2025.

・Of the interest-bearing debt of 91,900 million yen as of today. MIRAI assumed that the current portion of long-term
debt of 1,500 million yen that will mature during the fiscal period ending October 31, 2024 and the short-term debt of
500 million yen and the current portion of long-term debt of 9,500 million yen that will mature during the fiscal period
ending April 30, 2025 would be refinanced into long-term debt.
The interest-bearing debt outstanding as of October 31, 2024 and April 30, 2025 is expected to be 91,900 million yen.
The LTV (based on total assets) as of October 31, 2024 and April 30, 2025 is expected to be approximately 49%.
The calculation of the LTV (based on total assets) uses the following formula.
LTV (based on total assets) (%) = total amount of interest-bearing debt outstanding / total assets
Lease business revenue from the “Portfolio assets” is calculated primarily by taking into account leasing contracts
effective as of today, trends in the real estate leasing market (vacancy rates, rent levels, etc.) and status of negotiation
with tenants.
Variable rent generated from the hotels with variable rent (“Smile Hotel Osaka Tennoji”, “Smile Hotel Kyoto
Karasumagojo”, “Smile Hotel Naha City Resort”, “Smile Hotel Hakataeki-Mae” and “Smile Hotel Nagoya-Sakae”)
are estimated to be 149 million yen for the fiscal period ending October 31, 2024, and 188 million yen for the fiscal
period ending April 30, 2025.
Expenses for the lease business other than depreciation are based on past records and information provided by theprevious owners, etc. while reflecting other variable factors into consideration.
In principle, the fixed asset tax, city planning tax, and depreciation asset tax (the “Fixed Asset and City Planning
Taxes”) of “Asset to be Acquired” during a fiscal year will be settled on the acquisition date with previous owners inproportion to holding period for the assets. Such costs are to be capitalized without having any impact to profit and/or
loss in the fiscal period of the acquisition.
Total repair expenses for buildings are calculated based on the repair plans developed by Mitsui Bussan & IDERA
Partners Co., Ltd., the asset manager of MIRAI and takes into account the engineering reports and appraisal reports,
and are accrued in each fiscal period. It should be noted, however, that the actual repair expenses in each fiscal period
may differ considerably from the estimates, mainly due to urgent repair expenses for any damages of assets arisingfrom unexpected factors, significant yearly fluctuations in the amount of repair expenses and the nature of repair
expenses whereby they do not arise on a regular basis.
Depreciation including incidental expenses is calculated using the straight-line method.
The breakdown of expenses for the lease business is as follows.
Fiscal Period Ending
Fiscal Period Ending
October 31, 2024
April 30, 2025
Outsourcing services:
403 million yen
393 million yen
Utilities expenses:
711 million yen
624 million yen
Taxes and dues:
504 million yen
498 million yen
Repair expenses:
130 million yen
112 million yen
Other expenses for leasing business:
341 million yen
325 million yen
Depreciation:
802 million yen
817 million yen
Other operating expenses (asset management fees, administrative servicing fees, etc.) are estimated to be 608 million
yen for the fiscal period ending October 31, 2024, and 598 million yen for the fiscal period ending April 30, 2025.
Interest expenses and borrowing-related expenses are estimated to be 383 million yen for the fiscal period ending
October 31, 2024, and 399 million yen for the fiscal period ending April 30, 2025.
Distributions per unit (excluding distributions in excess of earnings) are calculated based on the cash distribution policy
described in the Articles of Incorporation of MIRAI.
The amount of distributions per unit (excluding distributions in excess of earnings) may fluctuate due to various factors
such as acquisitions and sales of assets, changes in rent income caused by tenant relocations, unexpected repairs
incurred, and interest rate fluctuations.
Derivatives transactions (interest rate swaps transaction) will be continuously in place during the fiscal periods ending
October 31, 2024 and April 30, 2025. It is estimated that deferred losses on hedges as deduction from net assets (asspecified in Item 30-B, Clause 2, Article 2 of the Calculation Rules for Investment Corporations) is not incurred. It is
calculated based on the assumption that there is no change in the market value of interest rate swaps.
As described above, no change in the amount of deferred losses on hedges as deduction from net assets is assumed in
the fiscal periods ending October 31, 2024 and April 30, 2025, and distributions in excess of earnings related to theallowance for temporary difference adjustment are not scheduled at present.
Distributions in excess of earnings by decreasing unitholders’ capital under taxation are not scheduled at present.
The forecasts assume that no revisions that may impact the above projections will be made to laws and regulations,taxation, accounting standards, listing rules, the rules of the Investment Trust Association, Japan, or others.
The forecasts assume no unforeseeable significant changes in the general economic trends and real estate market
conditions.

・
・
・

・
・
・
・

Operating revenue

・

・
・

・

Operating expense・・・
Non-operating
expenses・・Distributions per unit
(Excluding
distributions in excessof earnings)

Distributions inexcess of earnings per
unit

Others

・

・

・

・
・
・

－

3

－

3. Financial Statements(1) Balance Sheet(Thousands of yen)
As of October 31, 2023
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Income taxes refund receivable
Consumption taxes refund receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets－

4－

As of April 30, 2024

2,999,870
2,642,403
255,782
138,4603
21
6,036,541

2,634,983
2,861,830
259,360
135,568
211,91787
6,103,747

494,930(37,401)
457,528
564
(534)
30
4,770
(755)
4,014
288
(24)
263
4,235,946
39,163,201(6,815,786)
32,347,414
260,160(74,303)
185,857
259,599(93,681)
165,918
400,846(147,650)
253,196130,149,310
167,799,480

500,478(45,924)454,553564(564)
023,156(1,300)21,856288(48)
239
4,235,946
42,572,316(7,527,564)
35,044,752
283,058(80,243)
202,815
284,554(103,713)
180,841
448,524(181,599)
266,925
140,147,895
180,555,825

11,208231
11,439

9,063
231
9,295

182,918
11,006
659,927
853,851
168,664,772

244,201
2,474
11,006594,055
851,737
181,416,858

45,27045,270174,746,584

42,27942,279187,562,886

(Thousands of yen)
As of October 31, 2023
Liabilities
Current liabilities
Operating accounts payable
Distributions payable
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits received
Leasehold and guarantee deposits received in trust
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

－

5

－

As of April 30, 2024

739,858
8,517
18,000,000
551,975
1,311
605
81,355698,930
698
5,404
20,088,656

632,6388,488
500,000
11,000,000
539,233
1,515
30,751
757,547
5,599
23,832
13,499,607

6,200,000
61,300,000
147,499
5,499,837
117,168
73,264,506
93,353,162

6,200,000
74,200,000
149,526
6,057,157
470,140
87,076,824
100,576,431

78,499,868

84,066,212

2,289,760

2,382,321

2,289,760
80,789,628

2,382,321
86,448,533

603,792
603,792
81,393,421
174,746,584

537,921537,92186,986,454
187,562,886

(2) Statement of Income and Retained Earnings(Thousands of yen)
For the six-month
period ended
October 31, 2023
Operating revenue
Leasing business revenue
Other leasing business revenue
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fee
Asset custody fees
Administrative service fees
Remuneration for directors (and other officers)
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed distributions
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance
costs
Borrowing related expenses
Investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

－

6

－

For the six-month
period endedApril 30, 2024

4,740,629
1,003,523
5,744,152

5,002,253
885,250
5,887,503

2,702,512
472,932
9,499
23,034
3,676
64,801
3,276,457
2,467,695

2,665,610
469,970
10,20820,861
3,676
56,746
3,227,073
2,660,429

25
957
982

22
617
640

231,086
23,300264,791
23,300

2,990

2,990

50,811
308,188
2,160,489
2,160,489
605
6,597
7,202
2,153,286
136,473
2,289,760

71,07722,7693,000
387,928
2,273,141
2,273,141
30,755(2,474)28,2802,244,860
137,460
2,382,321

(3) Statement of Changes in Net Assets
The Fiscal Period ended October 2023 (The 15th period from May 1, 2023 to October 31, 2023)(Thousands of yen)
Unitholders’ equity
Surplus
Unitholders’ capital
Balance at beginningof period
Changes during
periodDividends ofsurplus

Unappropriated retained
earnings (undisposed
loss)

78,499,868

2,448,202

2,448,202

80,948,070(2,311,729)(2,311,729)(2,311,729)

2,153,286

2,153,286

2,153,286-(158,442)(158,442)(158,442)

78,499,868

2,289,760

2,289,760

80,789,628

Net income
Net changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
periodTotal unitholders’ equity
Total surplus(Thousands of yen)
Valuation and translation adjustments
Total valuation and translation
adjustments

Deferred gains or losses on hedges
Balance at beginningof period
Changes during
periodDividends ofsurplus129,904

129,904

81,077,975(2,311,729)

Net income
Net changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
periodTotal net assets

2,153,286
473,888473,888473,888473,888473,888

315,446

603,792

603,792

81,393,421

－

7

－

The Fiscal Period ended April 2024 (The 16th period from November 1, 2023 to April 30, 2024)(Thousands of yen)
Unitholders’ equity
Surplus
Unitholders’ capital
Balance at beginningof period
Changes during
periodIssuance of new
investment units
Dividends ofsurplus

Unappropriated retained
earnings (undisposed
loss)

78,499,868

2,289,760

2,289,760

5,566,344

80,789,628

5,566,344(2,152,299)(2,152,299)(2,152,299)

2,244,860

2,244,860

2,244,860

5,566,344

92,561

92,561

5,658,905

84,066,212

2,382,321

2,382,321

86,448,533

Net income
Net changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
periodTotal unitholders’ equity
Total surplus(Thousands of yen)
Valuation and translation adjustments
Total valuation and translation
adjustments

Deferred gains or losses on hedges
Balance at beginningof period
Changes during
periodIssuance of new
investment units
Dividends ofsurplus603,792

603,792

81,393,421

5,566,344(2,152,299)

Net income
Net changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
periodTotal net assets

2,244,860(65,871)(65,871)(65,871)(65,871)(65,871)5,593,033

537,921537,92186,986,454

－

8

－

(4) Distribution Information(Yen)
Fiscal Period ended October 2023
(The 15th period from May 1, 2023
to October 31, 2023)
Ⅰ

Unappropriated retained earnings(undisposed loss)
Ⅱ
Distributions[Distributions per unit]
Ⅲ
Retained earnings to be carried forward(retained loss)
Method of calculation of distributions

Fiscal Period ended April 2024
(The 16th period from November 1, 2023
to April 30, 2024)

2,289,760,022

2,382,321,096

2,152,299,600[1,215]2,193,556,000[1,150]137,460,422

188,765,096

In accordance with the distribution policy set
forth in Article 36 (1) of the Articles ofIncorporation of MIRAI, the distribution
amount is to exceed 90% of the distributable
income of MIRAI as stipulated in Article 67.15
Paragraph (1) of the Act on Special Measures
Concerning Taxation. Based on this policy,
2,152,299,600 yen, which is the amount of
unappropriated retained earnings for the fiscal
period less 136,473,234 yen retained prior to theprevious period due to gain on sales of realestate, etc. and the remaining amount, excluding
a fraction of one yen in distribution perinvestment unit, will be paid as distribution(exclusive of distributions in excess ofearnings).

In accordance with the distribution policy set
forth in Article 36 (1) of the Articles ofIncorporation of MIRAI, the distribution
amount is to exceed 90% of the distributable
income of MIRAI as stipulated in Article 67.15
Paragraph (1) of the Act on Special Measures
Concerning Taxation. Based on this policy,
188,765,096 yen is retained internally tostabilize future distributions, and 2,193,556,000
yen, which is the total amount of unappropriatedretained earnings after deduction of the amountequivalent to internal reserves, as distributions
from earnings, will be paid as distribution(exclusive of distributions in excess ofearnings).

－

9

－

(5) Statement of Cash Flows(Thousands of yen)
For the six-month
period ended
October 31, 2023
Cash flows from operating activities
Net income before income taxes
Depreciation
Amortization of investment corporation bond issuancecosts
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Refund of leasehold and guarantee deposits received
Proceeds from leasehold and guarantee deposits
received
Refund of leasehold and guarantee deposits received intrust
Proceeds from leasehold and guarantee deposits
received in trust
Payments for restricted bank deposits held in trust
Proceeds from restricted bank deposits held in trust
Other payments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment units
Distributions paid
Other payments
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－

10

－

For the six-month
period endedApril 30, 2024

2,160,489
709,471

2,273,141
773,665

2,990

2,990

(25)
254,386
32,217
12,90722,769(22)
288,091(3,577)2,891-(211,917)(8,625)
10,063
21,86011,55945,946
7,706
3,260,948
25(256,815)(80,307)2,923,850(118,438)(12,741)(81,355)
58,616(61,283)
38,8402,971,670
22(287,887)(604)
2,683,201(26,811)(623,921)-(26,120)(13,143,606)(1,200)-3,227(115,036)(116,346)

94,433

673,666(182,000)
182,103(671,233)(700)(12,611,081)(1,500,000)
5,000,000(3,500,000)(2,313,021)(1,331)(2,314,352)(61,735)
5,522,009
5,460,273

500,000
22,400,000(16,500,000)
5,543,574(2,151,711)(9,442)
9,782,420(145,459)
5,460,273
5,314,813