MIRAI Corporation
Semi Annual Report
For the Fiscal Period ended April 30, 2023 (The 14th Period)

－

1

－

Primary Data◼

Distributions

The 14th Period
The 15th Period
The 16th Period
Actual distributions per unit
Forecast distributions per unit (Note)
Forecast distributions per unit (Note)(Start of cash distribution payment on July (The Fiscal Period ending October 31, (The Fiscal Period ending April 30,2024)
7, 2023)2023)
1,305 yen
1,150 yen
1,150 yen
(Forecast: 1,285 yen)
(Note) These forecasts are calculated based on certain assumptions as of June 14, 2023 and subject to change due to conditions such aschange in rent income thorough tenant turnovers, acquisition and disposition of assets, and additional unit issuance. The forecasts should
not be construed as guarantee of distribution per unit (DPU).

◼

Financial Results
Operating revenue(billion yen)
7
6
5
4
3
2
1
0

◼

Net profit

DPU

(yen)
6.3

5.4
1,561

5.3

4.9

1,800

5.6

5.1

5.2

1,289

1,267

1,600

1,429
1,247

1,313

1,305

2.5

2.3

2.0

2.1

2.2

2.3

2.4

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

1,400
1,200
1,000

Portfolio (as of the End of April 2023)

Stability increased due to progress in MIRAI Mid-Term Management Plan 2025 “Smart Defense & Offense with Aligned Interest”.
Number of properties: 38
Assets Under Management (AUM): 166.2 billion yen
Appraisal value: 181.8 billion yen
Occupancy rate
: 98.2%Net Operating Income (NOI) yield (14th FP result): 4.4% *based on book value
Portfolio Probable Maximum Loss (PML): 2.8%
Ratio by Tenant(based on rent)

Ratio by Asset Type

Ratio by Area(based on acquisiton price)
Residence
Others1.3%(based on acquisiton price)
Others

9.4%

15.4%

Hotel

Nagoyaarea

15.6%
Top 10Core Assets

35.8%

87.6%

8.9%

Others64.2%

RetailOffice

Osaka
area

52.8%

13.8%

Three
Metropolitan
Areas

84.6%

Tokyo
area

61.9%

20.9%
(Note) Ratio by tenant is based on lease contract in place with end tenants as of the end of April 2023.

◼

Finance (as of the End of April 2023)

Stable financial base maintained on the back of Mitsui & Co.’s credit.
Loan To Value (LTV) (based on total assets) : 49.0%
Long-term fixed interest debt ratio: 98.2%Average interest rate
: 0.59%Average remaining maturity: 3.3 years
Rating: Japan Credit Rating Agency, Ltd. (JCR) / A+ (Stable)
Rating and Investment Information, Inc. (R&I) / A (Stable)

－

2

－

◼

ESG
➢ Ratio of assets with environmental certifications (as of June 14, 2023)⚫
Continue to promote acquisition of environmental certification⚫
Ratio of Assets with Environmental Certifications: 76.0% *based on total floor area excluding land assets⚫
Newly certified assets:✓
BizMiiX Yodoyabashi✓
MI Terrace Sendai Hirose-dori✓
Ehime Building/Hiroshima➢

Support for the TCFD (Task Force on Climate-related Financial Disclosures)⚫
March 2023: Expressed support for the TCFD recommendations⚫
Expanded climate-related disclosure on the website⚫
In conjunction with supporting TCFD, joined the TCFD Consortium, a group of companies and organizationsin Japan that support the TCFD➢

Implementation of Energy Conservation Measures⚫
Promote continuous energy conservation and CO2 reduction efforts at properties owned⚫
Annual Energy Savings (Note)✓
Kawasaki Tech Center: Renovation of heat source facilities-3,243 MWh (-13% reduction)✓
Mi-Nara: LED lighting throughout the facility-388MWh (-2% reduction)(Note) Estimated values at the time of construction planning against the annual results of the previous year.

➢

Initiatives for Local Communities, Tenants and Employees⚫
Initiatives for Local Communities and Tenants:
Promote community support activities by holding events at properties owned and sponsoring local events.
Focus on initiatives to make the assets more comfortable for tenants and users.
✓
Providing an asset as an accommodation for patients with mild cases of COVID-19 in Naha-shi, Okinawa✓
Conduct tenant satisfaction surveys⚫
Initiatives to improve and enhance the workplace environment:
Creating an easy-to-work-in work environment for asset management company’s employees.
Focus on developing a system that enables each employee to fully demonstrate his/her abilities through humanresource development by providing training support, etc.
✓ Employee satisfaction survey newly conducted by an outside firm
✓ Establishment of cashless unmanned concession stands for Group employees

－

3

－

1 Overview of Asset Management(1) Operating Results of MIRAI Corporation (hereinafter “MIRAI”)
The 10th Period
From Nov. 1, 2020
to Apr. 30, 2021

PeriodThe 11th Period
From May 1, 2021
to Oct. 31, 2021

The 12th Period
From Nov. 1, 2021
to Apr. 30, 2022

The 13th Period
From May 1, 2022
to Oct. 31, 2022

The 14th Period
From Nov. 1, 2022
to Apr. 30, 2023

Operating revenue(Million yen)

4,973

5,113

5,275

5,666

6,308

Operating expenses(Million yen)

2,652

2,716

2,727

3,054

3,488

Operating income(Million yen)

2,321

2,397

2,547

2,611

2,820

Ordinary income(Million yen)

2,073

2,144

2,245

2,324

2,521

Net income(Million yen)

2,072

2,143

2,244

2,324

2,447

Total assets(Million yen)

161,815

161,226

171,982

172,792

174,479[Changes from the previous period]
Net assets[Changes from the previous period](%)(Million yen)

[1.6][(0.4)]

[6.7]

[0.5]

[1.0]

75,11075,30880,74381,02881,077(%)[(0.4)]

[0.3]

[7.2]

[0.4]

[0.1]

Interest-bearing debt

(Million yen)

78,70078,70084,00084,00085,500Unitholders’ capital (Note 3)(Million yen)

73,51673,51678,49978,49978,499Total number of outstanding investment units(Units)

1,662,240

1,662,240

1,771,440

1,771,440

1,771,440

Net assets per unit

(Yen)

45,18645,30545,58045,74145,769Total distributions(Million yen)

2,072

2,142

2,244

2,325

2,311

Distributions per unit

(Yen)

1,247

1,289

1,267

1,313

1,305

Of which, profit distribution per unit

(Yen)

1,238

1,289

1,267

1,313

1,305

Of which, distributions in excess of earnings per unit

(Yen)

9

-

-

-

-

Ordinary income to total assets (Note 4)

(%)

1.3

1.3

1.3

1.3

1.5

Net income to net assets (Note 4)

(%)

2.8

2.8

2.9

2.9

3.0

Net assets to total assets at end of period (Note 4)

(%)

46.4

46.7

46.9

46.9

46.5

(%)

[(1.0)]

[0.3]

[0.2]

[(0.1)][(0.4)]

(%)

99.3

100.0

100.0

100.1

94.4

[Changes from the previous period]
Payout ratio (Note 4)(Note 1) The fiscal period of MIRAI is six months from May 1 to October 31 and from November 1 to April 30 of the following year.
(Note 2) Unless otherwise stated, all figures are rounded down to the nearest million yen, and percentages are rounded to the first decimal place.
(Note 3) Unitholders’ capital does not take into account changes in unitholders’ capital due to the implementation of distributions in excess of earnings related to the reserve for adjustment of temporary differences, etc.
(Note 4) Calculated based on the following formula.
Ordinary income to total assets

Ordinary income / {(Total assets at beginning of period + Total assets at end of period) / 2} * 100

Net income to net assets

Net income / {(Net assets at beginning of period + Net assets at end of period) / 2} * 100

Net assets to total assets at end of period (%)

Net assets at end of period / Total assets at end of period * 100

Payout ratio

Total distributions (excluding distributions in excess of earnings) / Net income * 100(2) Summary of Operating Results for the Fiscal Period under Review(i) Main History of MIRAIMIRAI is diversified J-REIT. Based on the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951;
including revisions enforced thereafter) (hereinafter “AITIC”), MIRAI was founded on December 4, 2015 with a capital contribution of
150 million yen (750 units), by Mitsui Bussan & IDERA Partners Co., Ltd. (hereinafter the “Asset manager”) as the founding planner
and was listed on the REIT section of the Tokyo Stock Exchange on December 16, 2016 (securities code: 3476). During the fiscal period
under review, MIRAI conducted a public offering in December 2021 and a third-party allotment in January 2022. As of April 30, 2023,
the total number of outstanding investment units are 1,771,440 and MIRAI owns 38 properties (total acquisition price of 166,260 million
yen).
MIRAI positions assets located in the three major metropolitan areas of Japan with high population concentrations as its main investment
targets and aims to obtain mid-to-long term stable cash flows and sustained growth in unitholders’ value by building a portfolio centeredon its “Core Assets” (Note).
(Note) “Core Assets” means the assets that constitute the core of MIRAI’s portfolio. Specifically, among traditional investment properties such as offices, retail properties, hotels, residential and logistics properties. Occupancy
rates of 80% or more must be secured in principle (including cases where such occupancy rates are expected) with MIRAI to determine a stable rental income to be expected.

(ii) Operating Environment and Business Performance
During the fiscal period under review, the Japanese economy continued to pick up, with corporate earnings remaining at a high level
overall and personal consumption increasing moderately despite the impact of rising prices, despite the ongoing impact of rising energy
prices. While there was a remarkable recovery in the hotel sector due to the effect of the government’s nationwide travel support, etc. In
addition, the downside risk of rising utility costs, mainly for offices and commercial facilities, was contained to a certain level due tothe calming of energy prices. In the retail sector, operational methods in COVID-19 crisis are becoming established, preparations areunderway to capture future tourism demand through the opening of a new hands-on facility at Mi-Nara, a retail complex in Nara
Prefecture. In the office leasing market, ongoing leasing activities have begun to show steady results, including success in significantly
raising occupancy rates at the large-scale office in Tokyo area.
－4－

Under such circumstances, MIRAI acquired four properties in total: “MI Terrace Sendai Hirose-dori” (acquisition price: 2,022 million
yen) on November 1, 2022, “MI Terrace Kita-Ueno” (acquisition price: 3,557 million yen) and “MI Cube Machida East” (acquisition
price: 1,977 million yen) on March 30, 2023, and “Fiel Johoku” (acquisition price: 2,210 million yen) on March 31, 2023. In addition,
MIRAI disposed 50% quasi co-ownership of “Orico Hakataeki Minami Building” (disposition price: 1,000 million yen) on November
30, 2022, and “My Square Building” (disposition price: 3,600 million yen) and “MEGA Don Quijote Izumi-Chuo” (disposition price:
2,830 million yen) on March 28, 2023. As a result, as of the end of the 14th fiscal period, MIRAI had 38 properties under management,with a total acquisition price of 166,260 million yen, a total leasable area of 377,023.75 sqm, and occupancy rate of 98.2%.
(iii) Overview of Fund Procurement
During this fiscal period under review, MIRAI borrowed the long-term debt of 7,000 million yen on November 30, 2022 to repay 7,000
million yen in loans maturing on the same date. Furthermore, to fund the acquisition of “Fiel Johoku”, MIRAI borrowed the short-term
debt of 1,500 million yen based on a commitment line on March 31, 2023. The balance of borrowings and investment corporation bonds
as of the end of the 14th fiscal period was 85,500 million yen (of which 1,500 million yen was short-term debt, 20,000 million yen was
current portion of long-term debt, 57,800 million yen was long-term debt and 6,200 million yen was investment corporation bonds).
For the purpose of securing flexible and stable fund procurement and structuring an even stronger financial base, MIRAI has established
a commitment line with a maximum borrowing amount of 3,000 million yen (the balance of unexercised credit line as of the date of thisdocument is 3,000 million yen).
(iv) Operating Results and Distributions
As a result of the above operation, MIRAI recorded operating revenue of 6,308 million yen, operating income of 2,820 million yen,ordinary income of 2,521 million yen and net income of 2,447 million yen for the 14th fiscal period.
Profit distributions for the current fiscal period (excluding distributions in excess of earnings) shall be made in accordance with the
distribution policy set forth in the Articles of MIRAI and in accordance with Article 67.15 of the Act on Special Measures Concerning
Taxation (Law No. 26 of 1957, including subsequent amendments. hereinafter the “Act on Special Measures Concerning Taxation”),
considering that 413,292,461 yen of gain/loss on sales of real estate properties was generated, 136,473,234 yen is retained internally tostabilize future distributions per unit, and 2,311,729,200 yen, which is the total amount of unappropriated retained earnings after
deduction of the amount equivalent to internal reserves, as distributions from earnings, will be paid as distribution (exclusive ofdistributions in excess of earnings), in an attempt to make profit distributions tax-deductible. As a result of the above, the distributions
per investment units for the fiscal period under review (excluding distributions in excess of earnings) was 1,305 yen.
(3) Status of Capital Increase, etc.
Changes in the total number of outstanding investment units and unitholders’ capital over the past five years are as follows.
Date

Total number of outstanding investment units(units)Summary

Changes

BalanceUnitholders' capital (Thousand yen) (Note 1)
Remarks
Changes

Balance

May 23, 2018

Capital increase through public offering

43,300337,050

7,395,250

59,287,585(Note 2)June 12, 2018

Capital increase through third-party allotment

2,160

339,210

368,908

59,656,493(Note 3)

November 1, 2018

Capital increase through public offering

53,500392,710

8,965,583

68,622,077(Note 4)

November 27,
2018

Capital increase through third-party allotment

2,700

395,410452,468

69,074,546(Note 5)

May 1, 2019

Split of investment units

1,186,230

1,581,640-

69,074,546(Note 6)

December 24,
2019

Capital increase through public offering

76,5001,658,140

4,215,609

73,290,155(Note 7)January 21, 2020

Capital increase through third-party allotment

4,100

1,662,240

225,934

73,516,089(Note 8)December 24,
2021

Capital increase through public offering

104,000

1,766,240

4,746,456

78,262,545(Note 9)January 25, 2022

Capital increase through third-party allotment

5,200

1,771,440

237,32278,499,868(Note 10)(Note 1) Changes in unitholders' capital due to the implementation of distributions in excess of earnings related to the reserve for adjustment of temporary differences, etc. have not been taken into account.
(Note 2) New investment units were issued at the price of 176,962 yen per unit (paid-in amount: 170,791 yen) through a public offering for the acquisition of new properties, etc.
(Note 3) New investment units were issued at the price of 170,791 yen per unit through third-party allotment in connection with a public offering for the acquisition of new properties, etc.
(Note 4) New investment units were issued at the price of 173,452 yen per unit (paid-in amount: 167,581 yen) through a public offering for the acquisition of new properties, etc.
(Note 5) New investment units were issued at the price of 167,581 yen per unit through third-party allotment in connection with a public offering for the acquisition of new properties, etc.
(Note 6) MIRAI conducted a four-for-one unit split with April 30, 2019 as the record date and May 1, 2019 as the effective date.
(Note 7) New investment units were issued at the price of 57,037 yen per unit (paid-in amount of 55,106 yen) through a public offering for the acquisition of new properties, etc.
(Note 8) New investment units were issued at the price of 55,106 yen per unit through third-party allotment in connection with a public offering for the acquisition of new properties, etc.
(Note 9) New investment units were issued at the price of 47,238 yen per unit (paid-in amount of 45,639 yen) through a public offering for the acquisition of new properties, etc.
(Note 10) New investment units were issued at the price of 45,639 yen per unit through third-party allotment in connection with a public offering for the acquisition of new properties, etc.

<Changes in Market Prices of Investment Securities>
The market price of MIRAI’s investment securities listed on the Tokyo Stock Exchange REIT Market changed during each fiscal period
as follows:
PeriodThe 10th Period
From Nov. 1, 2020
to Apr. 30, 2021

The 11th Period
From May 1, 2021
to Oct. 31, 2021

The 12th Period
From Nov. 1, 2021
to Apr. 30, 2022

The 13th Period
From May 1, 2022
to Oct. 31, 2022

The 14th Period
From Nov. 1, 2022
to Apr. 30, 2023

Maximum (Yen)

53,500 yen

58,500 yen

56,100 yen

51,700 yen

48,350 yen

Minimum (Yen)36,600 yen

47,400 yen

46,650 yen

46,550 yen

42,750 yen

－

5

－

(4) Results of Distributions, etc.
In accordance with the distribution policy set forth in Article 36 (1) of the Articles of Incorporation of MIRAI, the distribution amountis 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, considering that 413,292,461 yen of gain/loss on sales of real estate properties was generated,
136,473,234 yen is retained internally to stabilize future distributions per unit, and 2,311,729,200 yen, which is the total amount of
unappropriated retained earnings after deduction of the amount equivalent to internal reserves, as distributions from earnings, will be
paid as distribution (exclusive of distributions in excess of earnings).
PeriodThe 10th Period
From Nov. 1, 2020
to Apr. 30, 2021

The 11th Period
From May 1, 2021
to Oct. 31, 2021

The 12th Period
From Nov. 1, 2021
to Apr. 30, 2022

The 13th Period
From May 1, 2022
to Oct. 31, 2022

The 14th Period
From Nov. 1, 2022
to Apr. 30, 2023

2,538,115

2,623,329

2,597,360

2,328,117

2,448,202

Unappropriated retained earnings(Thousand yen)

Retained earnings(Thousand yen)

480,262352,709

3,984

445

136,473

Total amount of cash distributions(Thousand yen)

2,072,813

2,142,627

2,244,414

2,325,900

2,311,729[Distributions per unit](Yen)[1,247][1,289][1,267][1,313][1,305](Thousand yen)

2,057,853

2,142,627

2,244,414

2,325,900

2,311,729(Yen)[1,238][1,289][1,267][1,313][1,305](Thousand yen)

14,960

-

-

-

-

(Yen)

[9]

[-]

[-]

[-]

[-]

Total amount of distributions from the allowance fortemporary differences out of the total amount ofrefunds of investments(Thousand yen)

14,960----[Distribution of allowance for temporary differences
per unit out of refund of investment per unit]

(Yen)

[9]

[-]

[-]

[-]

[-]

(Thousand yen)

-

-

-

-

-

(Yen)

[-]

[-]

[-]

[-]

[-]

Of which, total amount of profit distributions[Profit distributions per unit]
Of which, total amount of investment refunds[Refund of investment per unit]

Total amount of distributions from distribution for
reduction of investment, etc. under the tax law out of
total amount of withdrawal of investment[Distribution from reduction of investment, etc. under
the tax law out of the amount of refund of investment
per unit](5) Future Management Policy and Other Issues(i) Future Portfolio Management Environment
In the office leasing market, while MIRAI needs to continue to carefully consider the future outlook in light of rising energy prices andprice increase in addition to the trends in corporate performance and changes in work styles, it is expected that the move to reevaluate
the importance of attendance in post-COVID-19 will have a positive impact on occupancy. In hotel and retail sectors, rents for someassets are linked to tenants’ performance. For retail assets, MIRAI will take relatively conservative forecasts with reference to past years’
results, while considering a certain degree of renewal effects. On the other hand, Hotels have been generating variable rents on an
ongoing basis, due in part to nationwide travel support, and are expected to serve as a growth driver in the second half of 2023 andbeyond, including the reception of travelers from overseas.
As almost all of the interest-bearing debt procured by MIRAI is long-term and fixed, MIRAI recognizes that the impact of changes in
the financial environment and interest rate fluctuations on its operation results will be minor, and MIRAI will continue to maintain soundfinancial management.
(ii) Future Management Policy and Other Issues
MIRAI has implemented specific measures, such as strategic asset replacements and acquisition of Growth Assets with high profitability
and land assets with defensiveness, with the aim of increasing unitholders’ value based on sustainable growth in distributions per unit
and strategic management of the portfolio. MIRAI plans to promote measures going forward that will contribute to the future growthwith an eye on the post-COVID-19 era, while continuing to be conscious of progress in risk diversification and securing profitability
and stability, under the theme of “Smart Defense & Offense with Aligned Interest”.
(6) Significant Events after the Balance Sheet Date
Not applicable.
2 Overview of MIRAI(1) Status of Unitholders’ Capital
PeriodThe 10th Period(Apr. 30, 2021)

The 11th Period(Oct. 31, 2021)

The 12th Period(Apr. 30, 2022)

The 13th Period(Oct. 31, 2022)

The 14th Period(Apr. 30, 2023)

Total number of investment units authorized(Units)

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

Total number of investment units outstanding(Units)

1,662,240

1,662,240

1,771,440

1,771,440

1,771,440

Total unitholders’ capital(Million yen)

73,51673,51678,49978,49978,499Number of unitholders(Persons)

33,83732,59933,48536,01538,099－6－

(2) Matters Concerning Investment Units
Major unitholders as of April 30, 2023 are as follows:
Number of units owned(Units)Name

Ratio to total units outstanding (%)

Custody Bank of Japan, Ltd. (Trust account)

234,422

13.23

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

210,049

11.86

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

81,971

4.63

STATE STREET BANK WEST CLIENT-TREATY 505234

28,076

1.58

JP MORGAN CHASE BANK 385770

27,621

1.56

SMBC Nikko Securities Inc.

22,603

1.28

The Hachijuni Bank, Ltd.

22,4691.27

JP MORGAN CHASE BANK 385781

22,464

1.27

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

20,796

1.17

MITSUI & CO. ASSET MANAGEMENT HOLDINGS LTD.

20,000

1.13

IDERA Capital Management Ltd.

20,0001.13

710,471

40.11

Total

(3) Matters Concerning Officers, etc.
(i) The Executive Director, Supervisory Director and Accounting Auditor for the 14th period are as follows:
Title

Executive Director

Name

Major concurrent posts outside MIRAI (Note 1)

Michio Suganuma

Representative Director, Mitsui Bussan & IDERA Partners Co., Ltd.

Takehiko Negishi

Lawyer, Vanderfalke Law Office

Hidetomo Nishii

CEO of Accel Partners, Inc.
Certified Public Accountant, Tax Accountant

Ernst & Young ShinNihon LLC-

Supervisory Directors

Accounting Auditor

Total compensation or fee forsix-month period ended April
30, 2023(Thousand yen)
-

3,676

11,800(Note 1) The Executive Director and Supervisory Directors do not own investment units of MIRAI under their own name or other names.
(Note 2) Supervisory Directors may be directors of other corporations not listed above, but do not have any interest in MIRAI including the above.
(Note 3) Remuneration for the accounting auditor includes remuneration for audit of financial statements in English and remuneration for the preparation of the comfort letter in connection with the issuance of investment
corporation bonds.

(ii) Policy on Dismissal and Non-reappointment of the Accounting Auditor
The dismissal of the accounting auditor shall be in accordance with the provisions of the AITIC, and the non-reappointment of theaccounting auditor shall be considered by the Board of Directors of MIRAI in comprehensive consideration of the quality of the audit,
the amount of audit fees and other various circumstances.
(4) Matters Concerning Directors’ Liability Insurance Contracts
The directors’ liability insurance policies that MIRAI has in place are as follows:
Scope of Insured

Summary of Contract

Executive Director andSupervisory Directors(Summary of insured accidents to be covered)
MIRAI has concluded a directors’ liability insurance policy with an insurance company as stipulated in Article 116-3, Paragraph 1 of the AITIC, and the policy
will cover certain damages to be borne by the insured due to claims for damages arising from acts committed by the insured in the course of their duties as directorsof MIRAI(Percentage of premiums paid)
The policy includes an insurance rider pertaining to unitholders’ representative lawsuits, and the premiums for the rider portion are borne by the insured, whileother premiums are borne by MIRAI.
(Measures to ensure that the appropriateness of the execution of duties is not compromised)
The coverage does not apply to damages, etc. incurred by the insured due to criminal acts or acts committed while being aware of the violation of laws andregulations.

－

7

－

(5) Asset Management Company, Asset Custodian and General Administrators
The asset management company, asset custodian and general administrators as of April 30, 2023 are as follows:Business

Name

Asset management company

Mitsui Bussan & IDERA Partners Co., Ltd.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

Transfer agent

Sumitomo Mitsui Trust Bank, Limited

General administrator (institutional administration)

Mizuho Trust & Banking Co.

General administrator (accounting)Reiwa Accounting Holdings Co., Ltd.

General administrator (tax payment)

Reiwakaikeisha Tax Corporation

General administrator related to investment corporation bonds

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

3 Status of MIRAI’s Assets under Management(1) Composition of Assets of MIRAI
Asset type

Category

Real estate

Real estate in trust

The 13th Period
As of October 31, 2022

The 14th Period
As of April 30, 2023

Total amount held
(Million yen)

Ratio to total assets(%)

Total amount held
(Million yen)

Ratio to total assets(%)

Office

2,242

1.3

2,264

1.3

Industrial

2,423

1.4

2,423

1.4

Total of real estate

4,665

2.7

4,688

2.7

Office84,27748.8

86,232

49.4

Retail

36,651

21.2

35,562

20.4

Hotel

25,78314.9

25,783

14.8

Residence

-

-

2,308

1.3

Industrial

9,189

5.3

9,136

5.2

Educational

4,106

2.4

4,118

2.4

Total of real estate in trust

160,007

92.6

163,143

93.5

Deposits and other assets

8,118

4.7

6,646

3.8

Total assets

172,792

100.0

174,479

100.0(Note 1) Total amount held is based on the balance sheet carrying amount (book value after depreciation in the case of real estate in trust) as of the end of the period.
(Note 2) Construction in progress in trust is not included in the real estate in trust.

(2) Major Assets
The outline of major assets owned by MIRAI (top 10 assets in terms of book value) as of April 30, 2023 is as follows:
Name of real estate, etc.

Book value(Million yen)

Leasable area(sqm) (Note 1)

Leased area(sqm) (Note 2)

Occupancy rate(%) (Note 3)

Portion of real estateleasing businessrevenue (%)

Primary use

Kawasaki Tech Center

23,761

22,737.07

22,074.79

97.1

18.7

OfficeShinagawa Seaside Parktower

20,00622,205.78

20,192.36

90.9

12.6

OfficeTokyo Front Terrace

10,9959,720.89

9,267.70

95.3

4.6

OfficeShinjuku Eastside Square

9,704

5,774.45

5,756.58

99.7

4.7

OfficeNot disclosed(Note 4)Retail

5.4

OfficeAEON Kasai

9,543

28,338.45

28,338.45

100.0

MI Terrace Nagoya Fushimi

8,899

11,625.38

11,625.38

100.0

Not disclosed(Note 4)Not disclosed(Note 4)

Rokko Island DC

7,622

15,563.37

15,563.37

100.0

Tsurumi Fuga 1

5,488

9,578.60

9,578.60

100.0

Mi-Nara

5,077

43,329.82

40,504.66

93.5

8.8

Tokyo Eiseigakuen Senmongakko

4,118

4,220.46

4,220.46

100.0

Not disclosed(Note 4)

Total

105,220

173,094.27

167,122.35

96.5

68.9

Industrial
RetailRetail
Educational(Note 1) For “Leasable area”, the area that is rentable based on the lease contract or the building drawings of the building pertaining to each asset is stated. In case of land asset, the area of the land is listed. However, thearea of incidental areas such as parking lots and warehouses is not included.
(Note 2) For "Leased area" is the total area actually leased for each asset. However, the area of incidental areas such as parking lots and warehouses is not included.
(Note 3) “Occupancy rate” is calculated based on the formula of leased area divided by leasable area. The figures are rounded to one decimal place.
(Note 4) Not disclosed due to the absence of a tenant’s consent.

－

8

－

(3) Details of Real Estate and Other Assets
The following is a summary of the assets owned by MIRAI as of April 30, 2023.
Name of real estate, etc.

Location(Note 1)

Type of ownership

Leasable area(sqm)
(Note 2)

Book value at
end of period(Million yen)Appraisal value
at end of period(Million yen)
(Note 3)

Shinagawa Seaside Parktower

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

Trust beneficiaries

22,205.78

20,006

22,570Kawasaki Tech Center

580-16, Horikawa-cho, Saiwai-ku, Kawasaki-shi, Kanagawa

Trust beneficiaries

22,737.07

23,761

24,600Shinjuku Eastside Square

6-27-30, Shinjuku, Shinjuku-ku, Tokyo

Trust beneficiaries

5,774.45

9,704

10,900Tokyo Front Terrace

2-3-14, Higashi-Shinagawa, Shinagawa-ku, Tokyo

Trust beneficiaries

9,720.89

10,995

10,793MI Terrace Nagoya Fushimi

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

Trust beneficiaries

11,625.38

8,899

10,700Hiroshima Rijo-dori Building

3-1-9, Otemachi, Naka-ku, Hiroshima-shi, Hiroshima

Trust beneficiaries

3,611.85

2,347

2,490

BizMiiX Yodoyabashi

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

Trust beneficiaries

1,020.82

1,998

2,250

TCA Building

2-3-19, Motomachi, Naniwa-ku, Osaka-shi, Osaka

Real estate

3,212.81

2,264

2,270

Ehime Building/Hiroshima

2-10, Naka-ku Mikawa-cho, Hiroshima-shi, Hiroshima

Trust beneficiaries

4,700.45

2,869

2,990

MI Terrace Sendai Hirose-dori

1-6-9, Kokubuncho, Aoba-ku, Sendai-shi, Miyagi

Trust beneficiaries

3,804.07

2,043

2,320

MI Terrace Kita-Ueno

2-18-4, Kita-Ueno, Taito-ku, Tokyo

Trust beneficiaries

3,551.61

3,605

4,070

Shibuya World East Building

1-23-18, Shibuya, Shibuya-ku, Tokyo

Trust beneficiaries

1,701.55

3,361

5,420

THINGS Aoyama

4-10-15, Minami-Aoyama, Minato-ku, Tokyo

Trust beneficiaries

997.62

2,943

3,240

MI Cube Sendai Clisroad

2-2-30, Chuo, Aoba-ku, Sendai-shi, Miyagi

Trust beneficiaries

1,023.76

1,376

1,450

MI Cube Machida East

4-5-8, Haramachida, Machida-shi, Tokyo

Trust beneficiaries

2,176.15

2,005

2,250

AEON Kasai

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

Trust beneficiaries

28,338.45

9,543

9,540

CAINZ MALL Hikone (land)

2-1-1, Bamba, Hikone-shi, Shiga

Trust beneficiaries

85,323.95

3,675

4,280

MaxValu Takatori (land)

3-16-18, Takatorikita, Asaminami-ku, Hiroshima-shi, Hirosima

Trust beneficiaries

5,748.81

987

1,050

Tsurumi Fuga 1

2-1, Tsurumi-ku Toyooka-cho, Yokohama-shi, Kanagawa

Trust beneficiaries

9,578.60

5,488

5,810

BIGMOTOR Ginan (land)

7-12, Ginan-cho Yatsurugi, Hashima-gun, Gifu

Trust beneficiaries

6,544.89

1,101

1,200

Hotel Sunroute Niigata

1-11-25, Higashi-Odori, Chuo-ku, Niigata-shi, Niigata

Trust beneficiaries

8,254.80

2,126

2,300

Daiwa Roynet Hotel Akita

2-2-41, Omachi, Akita-shi, Akita

Trust beneficiaries

7,439.36

1,860

2,210

Super Hotel Sendai/Hirose-dori

2-9-23, Chuo, Aoba-ku, Sendai-shi, Miyagi

Trust beneficiaries

3,283.95

1,220

1,670

Super Hotel Osaka/Tennoji

2-3-3, Osaka, Tennoji-ku, Osaka-shi, Osaka

Trust beneficiaries

2,486.39

1,236

1,590

Super Hotel Saitama/Omiya

1-12-6, Sakuragi-cho, Omiya-ku, Saitama-shi, Saitama

Trust beneficiaries

2,946.55

1,052

1,330

Super Hotel Kyoto/Karasumagojo

396-3, Osaka-cho, Gojo-sagaru, Karasuma-dori, Shimogyo-ku,
Kyoto-shi, Kyoto

Trust beneficiaries

2,144.02

1,004

1,290

EN HOTEL Ise (Note 4)

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

Trust beneficiaries

4,099.31

1,982

1,890

Comfort Hotel Kitakami(1) (Hotel) 1-2-1 Kawagishi, Kitakami-shi, Iwate(2) (Retail Store) 1-2-8, Kawagishi, Kitakami-shi, Iwate

Trust beneficiaries

2,961.06

776

808

Hotel Wing International SelectUeno/Okachimachi

2-18-4, Higashi-ueno, Taito-ku, Tokyo

Trust beneficiaries

3,079.33

3,780

4,150

Smile Hotel Naha City Resort

2-32-1, Kume, Naha-shi, Okinawa

Trust beneficiaries

9,698.44

4,016

4,000

Smile Hotel Hakataeki-Mae

3-8-18, Hakataeki-mae, Hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiaries

2,432.72

3,773

3,670

Smile Hotel Nagoya Sakae

4-10-5, Sakae, Naka-ku, Nagoya-shi, Aichi

Trust beneficiaries

2,909.20

2,954

2,960

Fiel Johoku

1-9-20, Johoku, Naka-ku, Hamamatsu-shi, Shizuoka

Trust beneficiaries

8,747.08

2,308

2,500

Mi-Nara1-3-1, Nijo-oji-Minami, Nara-shi, Nara

Trust beneficiaries

43,329.82

5,077

3,780

Rokko Island DC

6-2-12, Koyo-cho-Nishi, Higashinada-ku, Kobe-shi, Hyogo

Trust beneficiaries

15,563.37

7,622

9,070

Real estate

16,529.10

2,423

2,560

36-19, Tsurumi-ku Daikoku-cho, Yokohama-shi, Kanagawa

Trust beneficiaries

3,499.83

1,514

1,600

4-1-1, Omorikita, Ota-ku, Tokyo

Trust beneficiaries

4,220.46

4,118

4,290

377,023.75

167,832

181,861

Odawara Material Storage andDelivery Center (land)
Yokohama-Daikokucho
Maintenance Center (land)Tokyo Eiseigakuen Senmongakko

2842-2 Sakaikyu, Kozu, Odawara-shi, Kanagawa

Total(Note 1) “Location” shows the residence indication of the property.
(Note 2) For “Leasable area”, the area that is rentable based on the lease contract or the building drawings of the building pertaining to each asset is stated. The area of incidental areas such as parking lots and warehouses
is not included. If Asset to be Acquired is a co-ownership or quasi-co-ownership, it is calculated based on the proportion of ownership.
(Note 3) “Appraisal value at end of period” is the appraisal value provided by Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation & Advisory K.K., Japan Real Estate Institute, Japan Valuers Co., Ltd. and Tanizawa
Sogo Appraisal Co., Ltd. in accordance with the Article of MIRAI and the rules set forth by The Investment Trusts Association, Japan.
(Note 4) Due to the termination of the lease agreement with the previous tenant on December 26, 2022, “Property Name” was changed from “Ise City Hotel Annex” to “EN HOTEL Ise”, the current tenant's hotel brand, on
December 27, 2022. The same applies hereinafter.

－

9

－

The leasing status of real estate properties owned by MIRAI is as follows:
The 13th Period(From May. 1, 2022 to Oct. 31, 2022)

The 14th Period(From Nov. 1, 2022 to Apr. 30, 2023)

Total number oftenants[as of end of
period](Note 1)

Occupancy rate
[as of end of
period](%)(Note 1)
(Note 2)

Real estateleasingbusiness
revenue[during theperiod](Million yen)
(Note 3)

Total number oftenants[as of end of
period](Note 1)

Occupancy rate
[as of end of
period](%)(Note 1)
(Note 2)

Real estateleasingbusiness
revenue[during theperiod](Million yen)
(Note 3)

Portion of realestate leasing
business
revenue (%)

Portion of realestate leasing
business
revenue (%)

Shinagawa Seaside Parktower

22

97.1

749

13.5

23

90.9

715

12.6

Kawasaki Tech Center

27

100.0

1,024

18.4

26

97.1

1,062

18.7

Shinjuku Eastside Square

39

98.5

250

4.5

42

99.7

265

4.7

Tokyo Front Terrace

27

81.3

269

4.8

30

95.3

259

4.6

MI Terrace Nagoya Fushimi

8

100.0

304

5.5

8

100.0

309

5.4

Orico Hakataeki Minami Building(Note 5)1

100.0

Not disclosed(Note 4)Not disclosed(Note 4)--Not disclosed(Note 4)Not disclosed(Note 4)My Square Building (Note 5)

9

100.0

83

1.5

-

-

66

1.2

Hiroshima Rijo-dori Building

13

100.0

96

1.7

13

100.0

89

1.6

BizMiiX Yodoyabashi

34

80.2

44

0.8

36

70.4

55

1.0

TCA Building

8

100.0

75

1.4

8

100.0

69

1.2

Ehime Building/Hiroshima

20

98.6

106

1.9

20

98.6

102

1.8

MI Terrace Sendai Hirose-dori

-

-

-

-

18

96.5

81

1.4

MI Terrace Kita-Ueno

-

-

-

-

7

100.0

16

0.3

Shibuya World East Building

8

100.0

110

2.0

8

100.0

114

2.0

Not disclosed(Note 4)1

100.0

Not disclosed(Note 4)Not disclosed(Note 4)

Name of real estate, etc.

THINGS Aoyama

1

100.0

Not disclosed(Note 4)

MI Cube Sendai Clisroad

3

100.0

36

0.7

3

100.0

38

0.7

MI Cube Machida East

-

-

-

-

10

100.0

11

0.2

AEON Kasai

1

100.0

100.0

1

100.0

-

-

CAINZ MALL Hikone (land)

1

100.0

1

100.0

MaxValu Takatori (land)

1

100.0

1

100.0

Tsurumi Fuga 1

1

100.0

1

100.0

BIGMOTOR Ginan (land)

1

100.0

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

1

MEGA Don Quijote Izumi-Chuo(Note 5)

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)1

100.0

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

Hotel Sunroute Niigata

1

94.6

70

1.3

1

94.6

70

1.2

Daiwa Roynet Hotel Akita

1

100.0

69

1.2

1

100.0

69

1.2

Super Hotel Sendai/Hirose-dori

1

100.0

44

0.8

1

100.0

44

0.8

Super Hotel Osaka/Tennoji

1

100.0

37

0.7

1

100.0

37

0.7

Super Hotel Saitama/Omiya

1

100.0

35

0.6

1

100.0

35

0.6

Super Hotel Kyoto/Karasumagojo

1

100.0

1

100.0

EN HOTEL Ise

1

100.0

Comfort Hotel Kitakami

2

100.0

Comfort Hotel Nagano (Note 5)

-

-

31

0.6

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)31

0.5

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

1

100.0

2

100.0

-

-

-

-

1

100.0

Not disclosed(Note 4)Not disclosed(Note 4)

Hotel Wing International SelectUeno/Okachimachi

1

100.0

Smile Hotel Naha City Resort

1

100.0

154

2.8

1

100.0

149

2.6

Smile Hotel Hakataeki-Mae

1

100.0

28

0.5

1

100.0

52

0.9

Smile Hotel Nagoya Sakae

1

100.0

35

0.6

1

100.0

48

0.9

Fiel Johoku

-

-

-

-

1

100.0

12

0.2

Mi-Nara

59

91.5

524

9.4

58

93.5

501

8.8

－

10

－

The 13th Period(From May. 1, 2022 to Oct. 31, 2022)

Total number oftenants[as of end of
period](Note 1)

Occupancy rate
[as of end of
period](%)(Note 1)
(Note 2)

1

100.0

1

100.0

1

100.0

Tokyo Eiseigakuen Senmongakko

1

100.0

Total

302

98.1

Name of real estate, etc.

Rokko Island DC
Odawara Material Storage andDelivery Center (land)
Yokohama-Daikokucho
Maintenance Center (land)

Real estateleasingbusiness
revenue[during theperiod](Million yen)
(Note 3)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

The 14th Period(From Nov. 1, 2022 to Apr. 30, 2023)

Portion of realestate leasing
business
revenue (%)

Total number oftenants[as of end of
period](Note 1)

Occupancy rate
[as of end of
period](%)(Note 1)
(Note 2)

1

100.0

1

100.0

1

100.0

1

100.0

334

98.2

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

5,553

100.0

Real estateleasingbusiness
revenue[during theperiod](Million yen)
(Note 3)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

Portion of realestate leasing
business
revenue (%)

Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)Not disclosed(Note 4)

5,681

100.0

(Note 1) The figures are as of the end of the period.
(Note 2) “Occupancy rate” is calculated based on the formula of leased area divided by leasable area. The figures are rounded to one decimal place.
(Note 3) “Real estate leasing business revenue [during the period]” indicates the leasing business revenue of each asset for the period, rounded down to the nearest million yen.
(Note 4) Not disclosed due to the absence of a tenant’s consent.
(Note 5) MIRAI disposed Comfort Hotel Nagano on May 31, 2022, Orico Hakataeki Minami Building (50% quasi-co-ownership) on October 31, 2022, Orico Hakataeki Minami Building (50% quasi-co-ownership) on
November 30, 2022 and My Square Building and MEGA Don Quijote Izumi-Chuo on March 28, 2023.

(4) Outstanding Contract Amounts, etc. and Current Price of Specified Transactions
The outstanding contract amounts, etc. and current price of specified transactions as of April 30, 2023 is as follows:
Contract amount, etc. (Thousand yen) (Note 1)

ClassificationType

Non-market transactions

Interest rate swap transactions
Receive variable, pay fixed

Amount that exceeds 1 year
63,100,000

Market value (Thousand yen)
(Note 2)49,600,000

129,904(Note 1) The contract amount, etc. is based on the notional principal.
(Note 2) The market value is calculated based on the price provided by the financial institutions with which MIRAI has transactions.

(5) Other Assets
As of the end of the current fiscal period, there are no other specified assets as investment targets other than those listed in (3) Details
of Real Estate and Other Assets.
(6) Assets in Overseas
There is no asset investment outside Japan.
4 Capital Expenditure(1) Schedule of Capital Expenditure
The following is a list of major scheduled capital expenditures for renovations, etc. planned with respect to the assets owned by MIRAI
as of the end of the current fiscal period. Please note that some portions of the scheduled construction amount may be classified as
expenses for accounting purposes as a result.
Estimated construction cost (Thousand yen)
Name of real estate, etc.
(Location)

PurposeScheduled period

TotalamountPayment
for thecurrent
periodTotalamountpaid

After Fiscal period ending October 31, 2023 (15th period)
Kawasaki Tech Center(Kawasaki-shi, Kanagawa)Cubicle renewal work, elevator renewal
work, heat source facilities renewal work,
compartment repair work, etc.

From May 2023
to October 2023

183,131--

AEON Kasai(Edogawa-ku, Tokyo)

Tenant compartment construction, etc.

From May 2023
to October 2023

119,000--

Shinagawa Seaside Parktower(Shinagawa-ku, Tokyo)

Electrical installation work, lighting
equipment installation, air-conditioning
equipment work, compartment repair work,
etc.

From December 2022
to October 2023

93,618--Mi-Nara(Nara-shi, Nara)

Compartment repair work, lighting
equipment installation, etc.

From May 2023
to October 2023

74,440--Tokyo Front Terrace(Shinagawa-ku, Tokyo)

Air-conditioning equipment work,
compartment repair work, etc.

From May 2023
to October 2023

70,544--

Others--

182,973

-

-

－

11

－

(2) Capital Expenditure for the Current Fiscal Period
The following is a summary of major construction work, etc. that fell under the category of capital expenditure conducted during thecurrent fiscal period with respect to the assets owned by MIRAI as of the end of the current fiscal period. The total amount of construction
works applicable to capital expenditures for all assets owned during the current fiscal period was 680,250 thousand yen, and together
with 216,701 thousand yen in repair expenses classified as expenses for the current fiscal period, a total of 896,952 thousand yen in
construction work was conducted.
Name of real estate, etc.
(Location)

Construction cost(Thousand yen)

PurposeConstruction period

Kawasaki Tech Center(Kawasaki-shi, Kanagawa)Elevator renewal work, water supply and drainage
installation, electrical installation work, air-conditioning
equipment work, etc.

From October 2022
to April 2023

162,508

Tokyo Front Terrace(Shinagawa-ku, Tokyo)

Elevator renewal work, compartment repair work, airconditioning equipment work, etc.

From June 2022
to April 2023

157,067

EN HOTEL Ise(Ise-shi, Mie)

Renewal work, etc.

From October 2022
to April 2023

93,162

Shinagawa Seaside Parktower(Shinagawa-ku, Tokyo)

Lighting equipment installation, air-conditioning
equipment work, disaster prevention equipment
installation, etc.

From May 2022
to April 2023

71,451Mi-Nara(Nara-shi, Nara)

Compartment repair work, electrical installation work, etc.

From November 2022
to April 2023

65,507

Ehime Building/Hiroshima(Hiroshima-shi, Hiroshima)

Compartment repair work, water supply and drainage
installation, lighting equipment installation, etc.

From December 2022
to April 2023

37,721-

92,832OthersTotal

680,250(3) Reserve for Long-Term Repair Plan
Not applicable.
5 Expenses(1) Details of Expenses Related to Asset Management, etc.
(Thousand yen)

The 13th Period
From May 1, 2022
to October 31, 2022

Item

Asset management fee (Note)

The 14th Period
From November 1, 2022
to April 30, 2023
469,384

466,526

Asset custody fee

9,291

9,291

Administrative service fees

18,211

19,294

Remuneration for directors

3,676

3,676

Other operating expenses
Total

60,66588,439561,229587,228(Note) In addition to the above, there are disposition fee of 16,700 thousand yen in the 13th fiscal period and 74,300 thousand yen in the 14th fiscal period, and acquisition fee of 97,660 thousand yen that are included in thebook value of individual assets in the 14th fiscal period.

6 Trading during the Fiscal Period under Review(1) Status of Real Estate, Asset-Backed Securities, Infrastructure Assets and Infrastructure-Related Assets etc.
Acquisition

MI Terrace Sendai Hirose-doriDisposition

Acquisition date

Acquisition price(Million yen)
(Note 1)

November 1,
2022

2,022

Name of real estate, etc.

Disposition date-

Disposition price(Million yen)
(Note 1)

Gain/loss on sales(Million yen)
(Note 2)

Book value(Million yen)

-

-

115

Orico Hakataeki Minami Building(50% quasi co-ownership)--

November 30,
2022

1,000

874

My Square Building--

March 28, 2023

3,600

2,940

512

MEGA Don Quijote Izumi-Chuo--

March 28, 2023

2,830

3,003

(214)

MI Terrace Kita-Ueno

March 30, 2023

3,557

-

-

-

-

MI Cube Machida East

March 30, 2023

1,977

-

-

-

-

Fiel Johoku

March 31, 2023

2,210

-

-

-

-

9,766

-

7,430

6,818

413

Total

-

(Note 1) The acquisition/disposition price does not include miscellaneous expenses, property tax, city planning tax, consumption tax and local consumption tax required for the acquisition/disposition of the relevant realestate, etc.
(Note 2) Gain/loss on sale is the amount after deducting book value and other sales expenses from the disposition price.

(2) Other Assets
－

12

－

Not applicable.
(3) Investigation of the Price of Specified Assets(i) Real Estate, etc.
Acquisition/
Disposition

Transaction date

Type of assets

Acquisition/
Disposition
price(Million yen)Appraisal value(Million yen)

MI Terrace Sendai Hirose-doriNovember 1,
2022

Real estate
trust
beneficiary

2,022

MI Terrace Kita-Ueno

March 30, 2023

Real estate
trust
beneficiary

MI Cube Machida East

March 30, 2023

Fiel Johoku

Name of Real Estate, etc.

Appraiser

Appraisal date

2,310

Daiwa Real
Estate Appraisal
Co., Ltd.

September 30,
2022

3,557

4,070

Tanizawa Sogo
Appraisal Co.,Ltd.

March 1, 2023

Real estate
trust
beneficiary

1,977

2,250

Tanizawa Sogo
Appraisal Co.,Ltd.

March 1, 2023

March 31, 2023

Real estate
trust
beneficiary

2,210

2,500

Japan Valuers
Co., Ltd.

February 28,2023

Orico Hakataeki Minami Building(50% quasi co-ownership)

November 30,
2022

Real estate
trust
beneficiary

1,000

894
(Note 3)

Daiwa Real
Estate Appraisal
Co., Ltd.

October 31,
2022

My Square Building

March 28, 2023

Real estate
trust
beneficiary

3,600

3,060

Daiwa Real
Estate Appraisal
Co., Ltd.

October 31,
2022

MEGA Don Quijote Izumi-Chuo

March 28, 2023

Real estate
trust
beneficiary

2,830

2,580

Daiwa Real
Estate Appraisal
Co., Ltd.

October 31,
2022

Acquisition

Disposition(Note 1) For transactions that require appraisal of real estate, etc. pertaining to specified assets in accordance with Article 201, Paragraph 1 of the AITIC, the appraisal is conducted in accordance with Chapter 3, “Appraisalof the Value of Real Estate Subject to Securitization” of the respective sections of the Real Estate Appraisal Standards, and MIRAI has been notified of the results of such appraisal.
(Note 2) The acquisition/disposition price does not include miscellaneous expenses, property tax, city planning tax, consumption tax and local consumption tax required for the acquisition/disposition of the relevant realestate, etc.
(Note 3) The amount is calculated by multiplying the appraisal value for the entire property by the quasi-co-ownership (50%) in the property to be disposed of.

(ii) Others
Not applicable.
(4) Status of Transactions with Interested Parties, etc.
(i) Sales and Purchases with Interested Parties, etc.
Not applicable.
(ii) Amount of fees to be paid
Not applicable.
(5) Status of Transactions with the Asset Manager Pertaining to Its Business Other than Asset Management
As of the end of the current fiscal period, the Asset Manager concurrently engages in the business of building lots and buildings
transaction, but there are no applicable transactions.
7 Status of Accounting(1) Status of Assets, Liabilities, Principal, Profit and Loss, etc.
Please refer to “Balance Sheet”, “Statements of Income”, “Statements of Changes in Net Assets”, “Notes” and “Distribution Information”
below.
(2) Change in the Method of Calculating Depreciation
Not applicable.
(3) Change in Valuation Method for Real Estate and Infrastructure Assets, etc.
Not applicable.
8 Disclosures Related to Beneficiary Certificates of Investment Trusts, etc. Established by MIRAI
Not applicable.
9 Disclosure Regarding Overseas Real Estate Holding Corporation
Not applicable.
10 Disclosure Regarding Real Estate Held by Overseas Real Estate Holding Corporation
Not applicable.
11 Others(1) Notice
－

13

－

(i) General Meeting of Unitholders
Not applicable.
(ii) Board of Directors
Not applicable.
(2) Fractional Amounts and Percentages
In this document, unless otherwise stated, figures less than the stated amount are rounded down to the nearest million yen and percentages
are rounded to the nearest million yen.

－

14

－

－

15

－

－

16

－

－

17

－

Financial Statements(1) Balance Sheet(Thousands of yen)
As of October 31, 2022
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Income 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
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
Construction in progress 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

－

18

－

As of April 30, 2023

4,508,815
2,625,909
259,821
145,581
3
1,176
7,541,307

3,040,495
2,663,616
287,999
151,367
8,414
6,151,893

447,540(22,313)425,226
564
(345)
219
4,770
(278)
4,491
4,235,946*1 37,128,490(5,690,612)
31,437,877
317,976(82,036)
235,939
243,592(77,643)
165,948*1 302,976(91,388)
211,588
127,956,594
207
164,674,040

477,586(29,177)
448,409
564
(440)
124
4,770
(516)
4,253
4,235,946*1 38,577,033(6,162,729)
32,414,304
259,388(68,693)
190,695
232,397(85,174)
147,222*1 358,897(116,743)
242,154
130,149,310
167,832,421

14,842
231
15,07314,018231
14,249242,031
11,006257,986
511,023
165,200,138

228,864
6,597
11,006
186,038
432,506
168,279,178

51,251
51,251
172,792,696

48,26048,260174,479,332

(Thousands of yen)
As of October 31, 2022
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
Deduction from unitholders' capital
Allowance for temporary difference
adjustments
Total deduction from unitholders' capital
Unitholders' capital, net
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

－

19

－

As of April 30, 2023

707,310
11,505
10,500,000
548,634
1,157
605
262,668
667,075
606
11,52912,711,092

781,916
10,7661,500,000
20,000,000
541,9123,740
80,30359,494
687,371
3,218
2,850
23,671,574

6,200,000
67,300,000
143,238
5,410,299
79,053,537
91,764,630

6,200,000
57,800,000
147,499
5,520,440
61,842
69,729,782
93,401,357

78,499,868

78,499,868*4 (1,771)*4 -(1,771)78,498,097

78,499,868

2,328,117

2,448,202

2,328,117
80,826,214

2,448,202
80,948,070

201,852
201,852*3 81,028,066
172,792,696

129,904
129,904*3 81,077,975
174,479,332

(2) Statement of Income and Retained Earnings(Thousands of yen)
For the six-month
period ended
October 31, 2022
Operating revenue
Leasing business revenue
Other leasing business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to leasing business
Loss on sales of real estate properties
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
Interest on tax refund
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
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)

－

20

－

For the six-month
period endedApril 30, 2023

*1 4,590,191*1 4,652,516*1 962,876*1 1,028,489*2 113,324*2 627,957

5,666,391

6,308,963*1 2,493,283*1 2,687,067

469,384
9,291
18,211
3,676
60,665
3,054,513
2,611,878*3 214,665

21
938
350
1,310

25
1,030
1,055

212,922
23,300220,462
23,300

2,990

2,990

49,220288,433
2,324,755
2,324,755
605
18
623
2,324,132
3,984
2,328,117

49,836
3,000
299,590
2,521,467
2,521,467
80,307(6,597)73,7102,447,757
445
2,448,202

466,526
9,291
19,294
3,676
88,4393,488,961
2,820,002

(3) Statement of Changes in Net Assets
The Fiscal Period ended October 2022 (The 13th period from May 1, 2022 to October 31, 2022)(Thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital

Balance at beginning of period

Unitholders’capitalAllowance fortemporarydifference
adjustment

Total deduction
from unitholders’capitalUnitholders’ capital,net

78,499,868(350,732)(350,732)

78,149,135

348,961

348,961

348,961-

348,961

348,961

348,961*1 78,499,868(1,771)(1,771)78,498,097

Changes during period
Dividends of surplus
Reversal of allowance for temporary
difference adjustments
Net income
Net changes in items other thanunitholders’ equity
Total changes during period
Balance at end of period(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning of period

Total surplus

Totalunitholders’equityDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

2,597,360

2,597,360

80,746,496(2,664)(2,664)(2,244,414)(2,244,414)(2,244,414)(2,244,414)(348,961)(348,961)--

2,324,132

2,324,132

2,324,132

2,324,132

Unappropria
ted retained
earnings(undisposed
loss)

Total net
assets80,743,832

Changes during period
Dividends of surplus
Reversal of allowance fortemporary difference
adjustments
Net income
Net changes in items otherthan unitholders’ equity

204,516

204,516

204,516

Total changes during period(269,243)(269,243)

79,717

204,516

204,516

284,234

Balance at end of period

2,328,117

2,328,117

80,826,214

201,852

201,852

81,028,066

－

21

－

The Fiscal Period ended April 2023 (The 14th period from November 1, 2022 to April 30, 2023)(Thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital

Balance at beginning of period

Unitholders’capitalAllowance fortemporarydifference
adjustment

Total deduction
from unitholders’capitalUnitholders’ capital,net

78,499,868(1,771)(1,771)78,498,097

1,771

1,771

1,771

-

1,771

1,771

1,771

*1 78,499,868--

78,499,868

Changes during period
Dividends of surplus
Reversal of allowance for temporary
difference adjustments
Net income
Net changes in items other thanunitholders’ equity
Total changes during period
Balance at end of period(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning of period

Total surplus

Totalunitholders’equityDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

2,328,117

2,328,117

80,826,214

201,852

201,852(2,325,900)(2,325,900)(2,325,900)(2,325,900)(1,771)(1,771)--

2,447,757

2,447,757

2,447,757

2,447,757

Unappropria
ted retained
earnings(undisposed
loss)

Total net
assets81,028,066

Changes during period
Dividends of surplus
Reversal of allowance fortemporary difference
adjustments
Net income
Net changes in items otherthan unitholders’ equity
Total changes during period
Balance at end of period(71,947)(71,947)(71,947)

120,085

120,085

121,856(71,947)(71,947)

49,9082,448,202

2,448,202

80,948,070

129,904

129,904

81,077,975

－

22

－

(4) Statement of Cash Distributions(Yen)
Fiscal Period ended October 2022
(The 13th period from May 1, 2022
to October 31, 2022)
Ⅰ

Unappropriated retained earnings(undisposed loss)
Ⅱ
Capitalization
Reversal of allowance for temporary
difference adjustment
Ⅲ
Distributions[Distributions per unit]
Ⅳ
Retained earnings to be carried forward(retained loss)
Method of calculation of distributions

Fiscal Period ended April 2023
(The 14th period from November 1, 2022
to April 30, 2023)

2,328,117,303

2,448,202,434

1,771,440-

1,771,440-

2,325,900,720[1,313]2,311,729,200[1,305]445,143

136,473,234

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,
2,325,900,720 yen, which is the total amount of
unappropriatedretainedearnings
after
deduction of reversal of allowance fortemporary difference adjustment (as stipulated
in Article 2, Paragraph 2, Item 30 of theOrdinance on Accountings of Investment
Corporations), excluding a fraction of one yen
in distribution per investment unit, will be paid
as distribution (exclusive of distributions inexcess of earnings).

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,
considering that 413,292,461 yen of gain/loss
on sales of real estate properties was generated,
136,473,234 yen is retained internally tostabilize future distributions per unit, and
2,311,729,200 yen, which is the total amount of
unappropriatedretainedearnings
after
deduction of the amount equivalent to internal
reserves, as distributions from earnings, will be
paid as distribution (exclusive of distributions inexcess of earnings).

－

23

－

(5) Statement of Cash Flows(Thousands of yen)
For the six-month
period ended
October 31, 2022
Cash flows from operating activities
Net income before income taxes
Depreciation
Amortization of investment corporation bond issuance
costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes 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
Decrease in property, plant and equipment in trust due
to saleOther, 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
Other payments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
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

－

24

－

For the six-month
period endedApril 30, 2023

2,324,755
660,719

2,521,467
682,796

2,990

2,990

(21)
236,222(2,169)1,739
92,266
156,324
46,117
262,668
6,587
62,573(25)
243,762(28,178)(5,785)42,759(6,722)(203,173)
20,295
13,1661,510,166

6,818,443(12,747)
5,348,192
21(238,536)(984)
5,108,692(8,692)
10,093,103
25(241,179)(605)
9,851,344(9,931)(322,431)(5,528)(29,483)(10,539,241)
-

-

4,261

(102,419)(371,903)

106,809

482,044(0)(1,297)(334,800)(0)(1,805)(10,456,128)(2,242,474)(2,242,474)
2,531,418
4,421,204*1 6,952,622

1,500,000
7,000,000(7,000,000)(2,325,609)(219)(825,828)(1,430,613)
6,952,622*1 5,522,009

(6) Notes to the financial statements[Notes on Assumption of Going Concern]
Not applicable to the 14th Period.
[Organization]
MIRAI Corporation (hereinafter “MIRAI”) is diversified REIT. Based on AITIC, MIRAI was founded on December 4,2015 with a capital contribution of 150 million yen (750 units), by Mitsui Bussan & IDERA Partners Co., Ltd. (hereinafter
the “Asset manager”) as the founding planner and was listed on the REIT section of the Tokyo Stock Exchange on
December 16, 2016 (securities code: 3476). As of April 30, 2023, the numbers of investment units issued and outstandingare 1,771,440 units and MIRAI owns 38 properties (total acquisition price of 166,260 million yen).
MIRAI positions assets located in the three major metropolitan areas of Japan with high population concentrations as its
main investment targets and aims to obtain mid-to-long term stable cash flows and sustained growth in unitholders’ value
by building a portfolio centered on its “Core Assets” (Note).
(Note) “Core Assets” means the assets that constitute the core of MIRAI’s portfolio, which is composed by specificallytraditional investment properties such as offices, retail properties, hotels, residential and logistics properties. Occupancy
rates of 80% or more must be secured in principle (including cases where such occupancy rates are expected) with MIRAI
to determine a stable rental income to be expected.
[Basis of Presenting Financial Statements]
MIRAI maintains its accounting records and prepares its financial statements in accordance with the Japanese Generally
Accepted Accounting Principles (Japanese GAAP), including provisions set forth in the Financial Instrument and Exchange
Act of Japan, the AITIC, the Companies Act of Japan and the related regulations, which are different in certain respects as
to the application and disclosure requirements of International Financial Reporting Standards.
The accompanying financial statements are prepared from the Japanese financial statements of MIRAI, which wereprepared in accordance with Japanese GAAP and were presented in the Securities Report of MIRAI filed with the Kanto
Local Finance Bureau of the Ministry of Finance. The amounts in the financial statements originally prepared in Japanese
have been rounded off to the nearest thousand in the accompanying financial statements unless otherwise specified. MIRAI
does not prepare consolidated financial statements as MIRAI has no subsidiaries.

－

25

－

1.

2.

3.

4.

5.

[Summary of Significant Accounting Policies]
Depreciation
A. Property, plant, and equipment (including trust assets)
The straight-line method is used.
method for noncurrent assets
The useful lives of property, plant and equipment are listed below.
Buildings
2 to 64 years
Structures
2 to 40 years
Machinery and equipment
5 to 29 years
Tool, furniture and fixtures 2 to 15 years
B. Intangible assets
As for software (for internal use), the straight-line method is used with an expected useful life of
5 years.
C. Leased assets
Leased assets related to finance lease transactions that transfer ownership
The same depreciation method is applied as that applied to owned fixed assets.
D. Long-term prepaid expenses
The straight-line method is used.
Accounting for
A. Investment corporation bond issuance costs
deferred assets
Investment corporation bond issuance costs are amortized by the straight-line method over theperiod through redemption.
B. Investment unit issuance expenses
Investment unit issuance expenses are fully expensed as incurred.
A. Accounting for property taxes
Accounting for
Property tax, city planning tax, depreciable asset tax, and the like levied on real estate assets andincome andother properties are accounted for as expenses related to rent business at the amounts
expensescorresponding to the fiscal period.
The amount of property tax, etc. paid to the seller as part of settlement for acquisition of realestate and real estate in trust is not accounted for as expenses but included in acquisition cost of
the respective real estate, etc. In the 13th Period, the property tax, etc. included in the acquisition
cost of real estate was not applicable. In the 14th Period, the property tax, etc. included in theacquisition cost of real estate was 22,133 thousand yen.
B. Accounting standards for revenue
The main performance obligations related to revenue arising from MIRAI’s contracts withcustomers and when it typically satisfies its performance obligations (the ordinary time at whichrevenue is recognized) are as follows.
(a) Disposition of real estate assets and other properties
For disposition of real estate assets and other properties, MIRAI recognizes revenue when thecustomer-buyer obtains control of the real estate and other assets by fulfilling the delivery
obligations stipulated in the sales and purchase agreement.
(b) Utility revenue
Utility revenue is recognized based on the supply of electricity, water, etc. to the customerlessee in accordance with the real estate lease contract and related agreements. As to utilities
charges in cases where MIRAI is acting as an agent, the net amount derived by deducting theamount to be paid to other parties supplying the electricity, gas, etc. from the amount received
by MIRAI as utilities charges from the customer is recognized as revenue.
Hedge accounting A. Hedge accounting method
methodDeferred hedge accounting is applied.
B. Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest on borrowings
C. Hedging policy
MIRAI utilizes derivative transactions to hedge the risks specified in the Articles of Incorporationof the Investment Corporation based on its risk management policy.
D. Method of assessing hedge effectivenessHedge effectiveness is assessed by making a comparison between the cumulative total of cash
flow fluctuations attributable to hedged items and the cumulative total of cash flow fluctuations
attributable to hedging instruments, and examining the ratio of these totals of fluctuations.
Scope of cash and Cash and cash equivalents consist of cash on hand, cash in trust, deposits and deposits in trust
cash equivalents
withdrawable on demand, and short-term investments, which are easily convertible into cash, within the statement of low risk of price fluctuation and with a maturity of less than three months.
cash flows
－

26

－

6.

Other significant
basis forpreparation offinancialstatements

A. Accounting for trust beneficiary right for real estate, etc. as trust asset
With regard to trust beneficiary right for real estate, etc. held as trust asset, all assets and liabilities
as well as all revenue and expense items associated with trust assets are accounted for under therespective account items of the Balance Sheet and Statement of Income and Retained Earnings.
Of the trust assets accounted for under the respective account items, the following items withsignificance are separately indicated on the Balance Sheet.
(a) Cash and deposits in trust(b) Buildings in trust, Structures in trust, Tools, furniture and fixtures in trust and Land in trust,
Construction in progress in trust(c) Leasehold and guarantee deposits received in trust
B. Method of accounting for consumption taxes unqualified for deduction
Consumption taxes unqualified for deduction for tax purposes for noncurrent assets, etc. are
included in acquisition cost for each asset.

[Notes to Significant Accounting Estimates](Evaluation of fixed assets)
1. Amount recorded in financial statements(Thousands of yen)

The 13th Period(as of October 31, 2022)
Property, plant andequipment
Loss on impairment

The 14th Period(as of April 30, 2023)

164,674,040

167,832,421--

2. Information on the contents of significant accounting estimates for identified items
In accordance with the accounting standard for impairment of fixed assets, MIRAI assesses the necessity of recognizing
impairment losses on Fixed assets when there is an indication that impairment may have occurred, considering each property
owned by MIRAI as one asset group.
The estimated undiscounted future cash flows are used to determine whether an impairment loss should be recognized. If it
is determined that an impairment loss should be recognized, the carrying amount is reduced to the recoverable amount, andthe amount of the reduction is recorded as an impairment loss.
In estimating future cash flows, MIRAI has assumed that the impact of COVID-19 outbreak will continue for the time being,
but that the recovery trend will continue over a certain period of time thereafter.
Since it is difficult to accurately predict the timing of the settlement of COVID-19 outbreak and the extent of its impact,changes in the aforementioned assumptions may affect the financial position, operating results and cash flow status of MIRAI
if it is determined that an impairment loss needs to be recorded.

－

27

－

[Additional Information][Notes to Allowance for Temporary Difference Adjustment]

The 13th Period (from May 1, 2022 to October 31, 2022)
1. Reason for occurrence of reversal, assets identified and reversal of allowance(Thousands of yen)
Assets identifiedDeferred gains or losses onhedgesReason for occurrence of reversal

Reversal of allowance fortemporary difference adjustment

Changes in fair value of the derivative

1,771

transactions

2. Specific approach of reversal

Deferred gains or losses on hedges
MIRAI plans to reverse the allowance depending on the changes in fair value of the derivative transactions used forhedging instruments.

The 14th Period (from November 1, 2022 to April 30, 2023)
Not applicable.
[Notes to Balance Sheet]*1. The reduction entry amount of the tangible fixed assets
The reduction entry amount of the tangible fixed assets acquired by government subsidies

The 13th Period(as of October 31, 2022)
Buildings in trust
Tools, furniture, and fixtures in trust(Thousands of yen)
The 14th Period(as of April 30, 2023)

213,030

213,030328

328*2. Commitment line contracts

MIRAI has the commitment line contracts with the banks.
The 13th Period(as of October 31, 2022)
Total amount specified in thecommitment line contracts
Borrowing balance at end of period
Outstanding loan commitments at
end of period(Thousands of yen)
The 14th Period(as of April 30, 2023)

3,000,000

3,000,000-

1,500,000

3,000,000

1,500,000*3. Minimum amount of net assets prescribed in Article 67, Item 4 of the Investment Trusts Act

The 13th Period(as of October 31, 2022)(Thousands of yen)
The 14th Period(as of April 30, 2023)

50,00050,000－28－

*4. Allowance for temporary difference adjustment

The 13th Period (from May 1, 2022 to October 31, 2022)
1. Reason for occurrence of provision and reversal, assets identified and the allowance(Thousands of yen)Thebalance at

Reason for
Assets identifiedDeferred gains
or losses onhedgesoccurrence ofallowance

Initial amountthebeginning

Allowance

Reversalof the 13th
periodThebalance at

Reason for

the endingof the 13th

occurrence ofreversal

periodOccurrence ofrevaluation

Changes in fairlosses frominterest rate

491,890

350,732-

348,961

1,771

value of thederivativetransactions

swap
2. Specific approach of reversal

Deferred gains or losses on hedges
MIRAI plans to reverse the allowance depending on the changes in fair value of the derivative transactions used forhedging instruments.

The 14th Period (from November 1, 2022 to April 30, 2023)
1. Reason for occurrence of provision and reversal, assets identified and the allowance(Thousands of yen)The
Reason for
Assets identified

occurrence ofallowance

Initial amountbalance atthebeginningof the 14th

Allowance

ReversalReason for

the endingof the 14th

occurrence ofreversal

periodperiodDeferred gains
or losses onhedgesThebalance atOccurrence ofrevaluation
losses frominterest rate

491,890

1,771

swap

-

1,771

-

Changes in fairvalue of thederivativetransactions

2. Specific approach of reversal

Deferred gains or losses on hedges
MIRAI plans to reverse the allowance depending on the changes in fair value of the derivative transactions used forhedging instruments.

－

29

－

[Notes to Statement of Income and Retained Earnings]*1. Breakdown of income from real estate leasing business(Thousands of yen)

A. Real estate leasing business revenue
Rent revenue-real estate
Rent income
Land rents received
Facility charges
Other lease business revenue
Utilities charges
Other operating income

The 13th Period

The 14th Period(from May 1, 2022 to October 31, 2022)(from November 1, 2022 to April 30, 2023)

4,191,450
223,945

4,222,248
249,044

174,794

4,590,191

686,476

181,223

4,652,516

740,350

276,399

962,876

Total real estate leasing business revenue

288,138

5,553,067

1,028,489
5,681,005

B. Real estate leasing business expenses
Expenses related to rent businessOutsourcing service expenses
Utilities expenses

377,719389,311634,557
428,777

671,973440,191

Depreciation

90,139659,742

216,701
681,819

Other expenses related to rent business

302,346

287,069

Taxes and dues
Repair expenses

Total real estate leasing business expenses

C. Income from real estate leasing
business (A - B)

－

30

－

2,493,283

2,687,067

3,059,783

2,993,938

*2. Breakdown of gain on sales of real estate properties

The 13th Period (from May 1, 2022 to October 31, 2022)(Thousands of yen)
Comfort Hotel Nagano
Sales of real estate properties revenue

670,000

Sales of real estate properties cost
Other sales expenses

635,209
34,773Gain on sales of real estate properties

17

Orico Hakataeki Minami Building (50% quasi co-ownership)
Sales of real estate properties revenue
Sales of real estate properties cost

1,000,000
874,956

Other sales expenses

11,736

Gain on sales of real estate properties

113,307

The 14th Period (from November 1, 2022 to April 30, 2023)(Thousands of yen)Orico Hakataeki Minami Building (50% quasi co-ownership)
Sales of real estate properties revenue
1,000,000
Sales of real estate properties cost
Other sales expenses

874,518
10,374Gain on sales of real estate properties

115,107

My Square Building
Sales of real estate properties revenue
Sales of real estate properties cost

3,600,000
2,940,780

Other sales expenses

146,369

Gain on sales of real estate properties

512,850*3. Breakdown of loss on sales of real estate properties

The 13th Period (from May 1, 2022 to October 31, 2022)
Not applicable.
The 14th Period (from November 1, 2022 to April 30, 2023)(Thousands of yen)
MEGA Don Quijote Izumi-Chuo
Sales of real estate properties revenue

2,830,000

Sales of real estate properties cost
Other sales expenses

3,003,144
41,521

Loss on sales of real estate properties

214,665[Notes to Statement of Changes in Net Assets]*1. Total number of investment units authorized and total number of investment units issued and outstanding
The 13th Period

The 14th Period(from May 1, 2022 to October 31, 2022)(from November 1, 2022 to April 30, 2023)

Total number of investment units
authorized
Total number of investment units
issued and outstanding－

31

20,000,000 units

20,000,000 units

1,771,440 units

1,771,440 units－

[Notes to Statement of Cash Flows]*1. Relationship between cash and cash equivalents at end of period and the amount on the balance sheet(Thousands of yen)
The 13th Period

The 14th Period(from May 1, 2022 to October 31, 2022)(from November 1, 2022 to April 30, 2023)

Cash and deposits
Cash and deposits in trust
Restricted deposits held in trust(Note)Cash and cash equivalents

4,508,815

3,040,495

2,625,909

2,663,616(182,102)(182,102)

6,952,622

5,522,009(Note) These are deposits that are reserved for the return of security deposits from tenants.
[Lease Transactions]1. Finance lease transactions (as a lessee)
Finance lease transactions that transfer ownership(i) Details of leased assets
It is mainly Buildings in trust.
(ii) Depreciation method
The depreciation method for such assets is the same as the depreciation method applied to proprietary fixed
assets.
2. Operating lease transactions (as a lessor)(Thousands of yen)th

The 13 Period

The 14th Period(from May 1, 2022 to October 31, 2022)(from November 1, 2022 to April 30, 2023)

Future lease payments receivable
Due within one year
Due after one year

4,217,911
31,302,139

4,114,386
27,817,352

Total

35,520,051

31,931,739

－

32

－

[Financial Instruments]
1. Matters concerning the status of financial instruments

A. Policies on financial instruments
MIRAI procures funds mainly by additionally issuing investment units, borrowing funds, or issuing investment
corporation bonds for the purpose of securing funds required for acquisition of assets, repair and other maintenancecosts, payments of dividends, and operation of MIRAI or repayment of debts.
With respect to borrowing of funds and issuance of investment corporation bonds, we consider the balance between
flexibility of financing and financial stability. Specifically, we consider, among other things, the long-term ratio, fixedinterest ratio, diversification of maturities, financing method (borrowings and/or investment corporation bonds) andestablishment of commitment lines.
MIRAI uses derivative transactions for the purpose of hedging interest rate fluctuation risk and other risks anddoes not enter into derivative transactions for speculative or trading purpose.
MIRAI invests surplus funds in securities and monetary claims with a focus on safety and liquidity, and does notengage into speculative investment.
B. Description of financial instruments and associated risks, and the risk management system
Deposits are one means of investing the surplus funds of MIRAI and are exposed to credit risk such as thebankruptcy of deposit financial institutions. MIRAI carefully manages deposits by limiting the term of deposits toa short period of time, taking into consideration safety, liquidity, and other factors, and giving due consideration
to the financial environment and cash flow.
Borrowings and investment corporation bonds are used primarily for acquisition of assets and repayments of debts,
and are exposed to liquidity risk at the time of repayment/redemption. MIRAI strives to mitigate liquidity risk by
diversifying lenders, repayment periods, and means of funds procurement and by securing liquidity on hand by
setting commitment lines and manages liquidity risk by preparing cash flow management sheet and other methods.
Variable interest rate borrowings are exposed to the risk of interest rate fluctuations. Derivative transactions areused to hedge the risk of fluctuations in the interest rate payable for a portion of the borrowings. See “4. Hedge
accounting method” above under “Summary of Significant Accounting Policies” for details about the hedging
instruments, hedged items, hedging policy, and method of assessing hedge effectiveness, etc. in hedge accounting.
C. Description of financial instruments
Fair value of financial instruments comprises value based on market prices or rationally calculated value in thecase the market prices are not available. As certain assumptions are applied in performing calculation of suchvalue, the value may differ if different assumptions are used. In addition, the contract value of derivativetransactions, which is presented in the following section entitled “Notes to Derivatives” is not an exact
representation of market risk attributable to derivative transactions.

－

33

－

2. Matters concerning fair value, etc. of financial instruments

Amounts on the Balance Sheet, fair value and their difference as of October 31, 2022 are as follows;
The fair values of “Cash and deposits” and “Cash and deposits in trust” are omitted because their fair value approximates
their book value due to cash and short term maturities.

(Thousands of yen)Amounton the balance sheet(i) Current portion of long-term

Fair value

10,500,000

borrowings(ii) Investment corporation bonds

Difference

10,500,000-

6,200,000

6,003,200(196,800)(iii) Long-term borrowings

67,300,000

67,285,205(14,794)

Total liabilities

84,000,000

83,788,405(211,594)

201,852

201,852-(iv) Derivative transactions *Amounts on the Balance Sheet, fair value and their difference as of April 30, 2023 are as follows;
The fair values of “Cash and deposits”, “Cash and deposits in trust” and “Short-term borrowings” are omitted because theirfair value approximates their book value due to cash and short term maturities.

(Thousands of yen)Amounton the balance sheet(i) Current portion of long-termborrowings(ii) Investment corporation bonds(iii) Long-term borrowings

Fair value

Difference

20,000,000

20,001,543

1,543

6,200,000

5,963,960(236,040)

57,800,000

57,788,952(11,047)

Total liabilities
84,000,000
83,754,455(245,544)(iv) Derivative transactions *129,904
129,904*Net amounts are shown for credits and liabilities attributable to derivative transactions, and the total of the items
that constitute net liabilities is shown in [].
(Note 1) Matters concerning the method of calculating the Fair value of financial instruments and derivativetransactions.
(i) Current portion of long-term borrowings and (iii) Long-term borrowings
The fair value of these is calculated by discounting such borrowings at rates that would be applied if new
borrowings with the same amount are made under similar terms and conditions.
(ii) Investment corporation bonds
The fair value of these is based on the reference values disclosed by the Japan Securities Dealers
Association.
(iv) Derivative transactions
See “Notes to Derivatives” below.
(Note 2) Leasehold and guarantee deposits received and leasehold and guarantee deposits received in trust are omitted
due to immateriality.
(Note 3) Repayment schedule for borrowings and Investment corporation bonds after the closing date (as of October
31, 2022)(Thousands of yen)
WithinAfter
1-2 years
2-3 years
3-4 years
4-5 years
1 year
5 years
Investment
corporation bonds

-

-

-

-

-

6,200,000

Long-term
borrowings

10,500,000

18,000,000

16,500,000

5,500,000

16,000,000

11,300,000

Total

10,500,000

18,000,000

16,500,000

5,500,000

16,000,000

17,500,000

－

34

－

Repayment schedule for borrowings and Investment corporation bonds after the closing date (as of April 30, 2023)(Thousands of yen)
WithinAfter
1-2 years
2-3 years
3-4 years
4-5 years
1 year
5 years
Investment
corporation bonds

-

-

-

-

-

6,200,000

Long-term
borrowings

20,000,000

11,000,000

8,500,000

14,000,000

13,000,000

11,300,000

Total

20,000,000

11,000,000

8,500,000

14,000,000

13,000,000

17,500,000[Notes to Investment Securities]

The 13th Period (as of October 31, 2022)
Not applicable to the 13th Period.
The 14th Period (as of April 30, 2023)
Not applicable to the 14th Period.
[Notes to Derivatives]

The 13th Period (as of October 31, 2022)
1. Transactions not applicable to hedge accounting
Not applicable to the 13th Period.
2. Transactions applicable to hedge accounting
The following table shows the contract amount on the closing date for derivative transactions, or the amountcorresponding to the principal specified in the contract.
Contract amount
Fair value
Method used
Hedge
(Thousands of yen)Type of derivative Primary hedged
accounting(Thousands
to calculate
Amounttransactions
items
methodof yen)the fair value
over one year

Deferredhedgeaccounting

Interest rate swap
transactions
Receive variable, pay
fixedLong-term
borrowings

63,100,000

52,600,000

201,852

Based onprices andotherconditions
presented byfinancial
institutions

The 14th Period (as of April 30, 2023)
1. Transactions not applicable to hedge accounting
Not applicable to the 14th Period.
2. Transactions applicable to hedge accounting
The following table shows the contract amount on the closing date for derivative transactions, or the amountcorresponding to the principal specified in the contract.
Contract amount
Fair value
Method used
Hedge
(Thousands of yen)Type of derivative Primary hedged
accounting(Thousands
to calculate
Amounttransactions
items
methodof yen)the fair value
over one year

Deferredhedgeaccounting

Interest rate swap
transactions
Receive variable, pay
fixedLong-term
borrowings－

63,100,000

35－

49,600,000

129,904

Based onprices andotherconditions
presented byfinancial
institutions

[Notes to Retirement Benefits]

The 13th Period (as of October 31, 2022)
Not applicable to the 13th Period.
The 14th Period (as of April 30, 2023)
Not applicable to the 14th Period.
[Tax Effect Accounting]
1. Breakdown of major causes of deferred tax assets and deferred tax liabilities(Thousands of yen)th

The 14th Period(as of April 30, 2023)

The 13 Period(as of October 31, 2022)
Deferred tax assets
Enterprise tax not deductible

-

6,597

Deferred losses on hedges--

Subtotal deferred tax assets
Valuation allowance

-

6,597
-

Total deferred tax assets

-

6,597

-

6,597

Deferred tax assets, net

2. Breakdown by major cause of material difference between the effective statutory tax rate and the effective tax rate

after applying tax effect accounting
The 13th Period(as of October 31, 2022)
Effective statutory tax rate
(Adjustments)
Deductible cash distributions
Other
Effective tax rate after applying tax effect accounting[Notes to Equity in Earnings of Affiliates]

The 13th Period (as of October 31, 2022)
Not applicable to the 13th Period.
The 14th Period (as of April 30, 2023)
Not applicable to the 14th Period.
[Transactions with Related Parties]
1. Parent company and principal corporate unitholders

The 13th Period (from May 1, 2022 to October 31, 2022)
Not applicable to the 13th Period.
The 14th Period (from November 1, 2022 to April 30, 2023)
Not applicable to the 14th Period.
2. Subsidiaries and affiliates

The 13th Period (from May 1, 2022 to October 31, 2022)
Not applicable to the 13th Period.
The 14th Period (from November 1, 2022 to April 30, 2023)
Not applicable to the 14th Period.

－

36

－

The 14th Period(as of April 30, 2023)

31.46%

34.59%(31.48%)(31.71%)

0.04%

0.05%

0.03%

2.92%

3. Sister companies

The 13th Period (from May 1, 2022 to October 31, 2022)
Not applicable to the 13th Period.
The 14th Period (from November 1, 2022 to April 30, 2023)
Not applicable to the 14th Period.
4. Directors and principal individual unitholders

The 13th Period (from May 1, 2022 to October 31, 2022)
Paid-in
VotingNature of relationship
Name ofcapitalBusinessrightsNature ofClassify- company Addressordescription oror
Businessholdingtransaction
cationinvestoccupation
Concurrent posts
relationshipindividual
ratio
ment
Executive director

Directoror theMichioclose Suganuma
relativeof MIRAI and--

President of Mitsui-

Bussan & IDERA
Partners

Payments ofasset
Executive director
management feeof MIRAI and
Assetto Mitsui Bussanmanageme
President of& IDERA
Mitsui Bussan & nt company Partners Co.,of MIRAILtd.
IDERA Partners

Co., Ltd.

Co., Ltd.

Balance atTransaction
end ofamountAccount
period(Thousands(Thousandof yen)s of yen)

486,084(Note 3)

Accounts
payable other527,322(Note 1)
(Note 2)

(Note 1) This is a transaction executed by Michio Suganuma as President of a third party (Mitsui Bussan & IDERA Partners
Co., Ltd.), and the fee is in line with the Articles of Incorporation of MIRAI.
(Note 2) Of the above amounts, the transaction amount does not include consumption taxes while the balance at the end of
fiscal period does.
(Note 3) Asset management fee includes disposition fee of 16,700 thousand yen.
The 14th Period (from November 1, 2022 to April 30, 2023)
Paid-in
VotingNature of relationship
Name ofcapitalBusinessrightsNature ofClassify- company Addressordescription oror
Businesscationholdingtransaction
investoccupation
Concurrent posts
individual
relationship
ratio
ment
Executive director

Directoror theMichioclose Suganuma
relativeof MIRAI and--

President of Mitsui
Bussan & IDERA
Partners-

Payments ofasset
Executive director
management feeof MIRAI and
Assetto Mitsui Bussanmanageme
President of& IDERA
Mitsui Bussan & nt company Partners Co.,of MIRAILtd.
IDERA Partners

Co., Ltd.

Co., Ltd.

Balance atTransaction
end ofamountAccount
period(Thousands(Thousandof yen)s of yen)

638,486(Note 3)

Accounts
payable other513,178(Note 1)
(Note 2)

(Note 1) This is a transaction executed by Michio Suganuma as President of a third party (Mitsui Bussan & IDERA Partners
Co., Ltd.), and the fee is in line with the Articles of Incorporation of MIRAI.
(Note 2) Of the above amounts, the transaction amount does not include consumption taxes while the balance at the end of
fiscal period does.
(Note 3) Asset management fee includes disposition fee of 74,300 thousand yen and acquisition fee of 97,660 thousand yen,which were included in the book value of the acquired properties.
[Notes to Asset retirement obligations]

The 13th Period (as of October 31, 2022)
Not applicable to the 13th Period.
The 14th Period (as of April 30, 2023)
Not applicable to the 14th Period.

－

37

－

[Notes to Lease Properties]
MIRAI holds offices, retails, hotels, a residence, industrial assets and an educational asset in Tokyo and other regions. The

amounts on the Balance Sheet changes during the fiscal period, and fair value of lease properties are as follows.
(Thousands of yen)
The 13th Period

The 14th Period(from May 1, 2022 to October 31, 2022)(from November 1, 2022 to April 30, 2023)

Amount on the balance sheet
Balance at the beginning of
the period
Changes during the period
Balance at the end of theperiod166,346,594

164,673,833(1,672,761)

3,158,588

164,673,833

167,832,421

Fair value at the end of the period
176,831,600
181,861,400(Note 1) The amount on the balance sheet is acquisition cost less accumulated depreciation.
(Note 2) The amount on the balance sheet does not include the amount of the construction in progress in trust.
(Note 3) Of the amount of increase (decrease) of the lease properties during the 13th period, the reason of increase ismainly attributable to capital expenditure (495,581 thousand yen) and the reasons of decrease are mainly
attributable to disposition of real estate trust beneficiary rights (1,510,166 thousand yen) and depreciation(658,176 thousand yen). the 14th period, the reason of increase is mainly attributable to acquisition of 4 realestate trust beneficiary rights (9,976,947 thousand yen) and the reason of decrease is mainly attributable todisposition of 3 real estate trust beneficiary rights (6,818,443 thousand yen) depreciation (680,167 thousandyen).
(Note 4) The fair value at the end of the fiscal period is the appraisal value provided by an outside real estateappraiser.
The income concerning lease properties, etc. for the 14th Periods is indicated under “Notes to Statement of Income
and Retained Earnings” above.
[Notes to Revenue Recognition]
1. Disaggregated information on revenue from contracts with customers

The 13th Period (from May 1, 2022 to October 31, 2022)(Thousands of yen)
Sales to external customers

Revenue from contracts withcustomers (Note 1)
Disposition of real estate, etc.
(Note 2)

1,670,000

Utility revenue
Others113,324

686,476

686,476-

4,866,590

Total
2,356,476
5,666,391(Note 1) Leasing business revenue, etc. subject to ASBJ Statement No. 13 “Accounting Standard for Lease Transactions”
is not included in “Revenue from Contracts with Customers” as it is not subject to the Accounting Standard for
Revenue Recognition. The main revenue from contracts with customers is from the gain on sale from real estate
properties and utility revenue.
(Note 2) The amount of proceeds from dispositions of real estate, etc. less costs of sales of real estate, etc. and otherexpenses on sales of real estate, etc., is stated as gain (loss) on sales of real estate, etc. in the statement of income,in accordance with Article 48, Paragraph 2 of the Ordinance on Accountings of Investment Corporations (Cabinet
Office Ordinance No. 47 of 2006).

－

38

－

The 14th Period (from November 1, 2022 to April 30, 2023)(Thousands of yen)
Sales to external customers

Revenue from contracts withcustomers (Note 1)
Disposition of real estate, etc.
(Note 2)4,600,000

Utility revenue

627,957

740,350

740,350-

4,940,655

OthersTotal
5,340,350
6,308,963(Note 1) Leasing business revenue, etc. subject to ASBJ Statement No. 13 “Accounting Standard for Lease Transactions”
is not included in “Revenue from Contracts with Customers” as it is not subject to the Accounting Standard for
Revenue Recognition. The main revenue from contracts with customers is from the gain on sale from real estate
properties and utility revenue.
(Note 2) The amount of proceeds from dispositions of real estate, etc. less costs of sales of real estate, etc. and otherexpenses on sales of real estate, etc., is stated as gain (loss) on sales of real estate, etc. in the statement of income,in accordance with Article 48, Paragraph 2 of the Ordinance on Accountings of Investment Corporations (Cabinet
Office Ordinance No. 47 of 2006). MIRAI records gain on sales of real estate properties as operating revenue
and loss on sales of real estate properties as operating expenses. Therefore, only gain on sales of real estate
properties are shown in the table above.
2. Information that provides a basis for understanding revenue from contracts with customers

The 13th Period (from May 1, 2022 to October 31, 2022)
As stated in the Summary of Significant Accounting Policies.
The 14th Period (from November 1, 2022 to April 30, 2023)
As stated in the Summary of Significant Accounting Policies.
3. Information on relationship between the fulfillment of performance obligations under contracts with customers andcash flows from such contracts and the amount and timing of revenue expected to be recognized from contracts withcustomers that exist at the end of the current period in the subsequent period(1) Balance of contract assets and contract liabilities, etc.
The 13th Period
The 14th Period(from May 1, 2022 to October 31, 2022)(from November 1, 2022 to April 30, 2023)

111,237 thousand yen

125,750 thousand yen

125,750 thousand yen

143,415 thousand yen- thousand yen- thousand yen- thousand yen- thousand yen- thousand yen- thousand yen- thousand yen- thousand yen

Receivables arising from contracts
with customers (at beginning of fiscal
period)Receivables arising from contracts
with customers (at end of fiscal period)

Contract assets (at beginning of fiscal
period)Contract assets (at end of fiscal
period)Contract liabilities (at beginning offiscal period)

Contract liabilities (at end of fiscal
period)(2) Transaction price allocated to remaining performance obligations
The 13th Period (from May 1, 2022 to October 31, 2022)
As of October 31, 2022, the total transaction price allocated to the remaining performance obligation for the
disposition of real estate, etc. was 1,000,000 thousand yen for real estate, etc. for which a sale agreement was signed
on October 28, 2022. It is expected to recognize revenue for this residual performance obligation in the fiscal period
ending April 30, 2023, as delivery of the real estate, etc. was completed on November 30, 2022.
In accordance with Paragraph 19 of the Guidance on Accounting Standard for Revenue Recognition, MIRAI
recognizes utility revenues at the amount it has the right to charge, because MIRAI has the right to receive from thecustomer the amount of consideration that directly corresponds to the value to the customer, the lessee, of the portionof the performance completed by the end of the fiscal period. Accordingly, MIRAI has applied the provisions of
－

39

－

paragraph 80-22(2) of the Accounting Standard for Revenue Recognition and has not included in the notes thetransaction price allocated to the remaining performance obligations.

－

40

－

The 14th Period (from November 1, 2022 to April 30, 2023)
In accordance with Paragraph 19 of the Guidance on Accounting Standard for Revenue Recognition, MIRAI
recognizes utility revenues at the amount it has the right to charge, because MIRAI has the right to receive from thecustomer the amount of consideration that directly corresponds to the value to the customer, the lessee, of the portionof the performance completed by the end of the fiscal period. Accordingly, MIRAI has applied the provisions ofparagraph 80-22(2) of the Accounting Standard for Revenue Recognition and has not included in the notes thetransaction price allocated to the remaining performance obligations.
[Segment Information](ⅰ) Segment information
The 13th Period (from May 1, 2022 to October 31, 2022)
Description is omitted as MIRAI engages in a single segment of the real estate leasing business.
The 14th Period (from November 1, 2022 to April 30, 2023)
Description is omitted as MIRAI engages in a single segment of the real estate leasing business.
(ii) Related information
The 13th Period (from May 1, 2022 to October 31, 2022)
A. Information by product and service
Description is omitted as net sales for external customers in a single product/service category exceed 90% of
the operating revenue on Statement of Income and Retained Earnings.
B. Information by region(a) Net sales
Description is omitted as net sales for external customers in Japan exceed 90% of the operating revenue on
the Statement of Income and Retained Earnings.
(b) Property, plant, and equipment
Description is omitted as the amount of property, plant, and equipment located in Japan exceeds 90% of theproperty, plant, and equipment on the Balance Sheet.
C. Information by major tenant
Description is omitted as net sales for all single external customers are less than 10% of the operating revenue
on the Statement of Income and Retained Earnings.
The 14th Period (from November 1, 2022 to April 30, 2023)
A. Information by product and service
Description is omitted as net sales for external customers in a single product/service category exceed 90% of
the operating revenue on Statement of Income and Retained Earnings.
B. Information by region(a) Net sales
Description is omitted as net sales for external customers in Japan exceed 90% of the operating revenue on
the Statement of Income and Retained Earnings.
(b) Property, plant, and equipment
Description is omitted as the amount of property, plant, and equipment located in Japan exceeds 90% of theproperty, plant, and equipment on the Balance Sheet.
C. Information by major tenant
Description is omitted as net sales for all single external customers are less than 10% of the operating revenue
on the Statement of Income and Retained Earnings.
[Per Unit Information]
The 13th Period

The 14th Period(from May 1, 2022 to October 31, (from November 1, 2022 to April 30,
2022)
2023)

Net assets per unit

45,741 yen

45,769 yen

Net income per unit

1,312 yen

1,381 yen

－

41

－

(Note 1) Net income per unit was calculated by dividing net income by average number of investment units during
period. Diluted net income per unit is not stated as there are no dilutive investment units.
(Note 2) The calculation of net income per unit is based on the following.
(Thousands of yen)
The 13th Period

The 14th Period(from May 1, 2022 to October 31, (from November 1, 2022 to April 30,
2022)
2023)

Net income

2,324,132

2,447,757--

Net income pertaining to common investment units

2,324,132

2,447,757

Average number of investment units during period

1,771,440 units

1,771,440 units

Amount not attributable to common unitholders[Notes to Significant Subsequent Events]
Not applicable.

－

42

－

[Annexed Table](i) Securities
Not applicable.
(ii) Contract Amount and Fair Value of Derivative Transactions and Forward Exchange Contracts(Thousand yen)Type of derivativetransactions

Classification

Contract amountPrimary hedged
items

Method used to
calculatethe fair value

Fair value

Amountover one year

Non-market
transaction

Interest rate swap
transactions

Long-term
borrowings

Receive variable, pay
fixed

63,100,000

49,600,000

129,904

Based on the amountprovided bycounterparty financial
institutions.

(iii) Real Estate, etc.
(Thousand yen)Type of assets

Balance at
beginning of
periodAccumulated depreciation

Amount ofAmount ofBalance at end
increase during decrease during
Depreciationof periodor Accumulated
periodperiodandamortizationamortization

Net balance at
Remarks
end of period

Building

447,540

30,046-

477,586

29,177

6,863

448,409

Structures

564

-

-

564

440

94

124

4,770

-

-

4,770

516

238

4,253

Land

4,235,946--

4,235,946--

4,235,946

Building in trust
Total
property, Structures in trust
plant andequipment Machinery andequipment in trust

37,128,490

2,697,148

1,248,604

38,577,033

6,162,729

631,741

32,414,304(Note)

317,976

7,711

66,299259,388

68,693

6,815

190,695(Note)

243,592-

11,194

232,397

85,174

8,589

147,222(Note)

302,976

57,566

1,644

358,897

116,743

25,824242,154(Note)

127,956,594

7,864,726

5,672,010

130,149,310--

130,149,310(Note)

Construction inprogress in trust

207

-

207

-

-

-

-

(Note)

Subtotal

170,638,658

10,657,198

6,999,960

174,295,896

6,463,474

680,167

167,832,421

29,4981,805-

31,304

17,2852,629

14,018

231

-

-

231

-

-

231

29,7291,805-

31,535

17,285

2,629

14,249170,668,388

10,659,004

6,999,960

174,327,432

6,480,760

682,796

167,846,671

Machinery andequipment

Tools, furniture andfixtures in trust
Land in trust

SoftwareIntangible
Other
assetsSubtotal
Total(Note)(Note) The increase in property, plant and equipment during the period is due to the acquisition of four properties, etc. The decrease is due to the disposition of
three properties, etc.

(iv) Other Specified Assets
Not applicable.

－

43

－

(v) Investment Corporation Bonds(Thousand yen)
Brand name

Balance at
Amount ofAmount ofInterest
Balance at end
Redemption
beginning of increase during decrease during
rateof period
date
periodperiodperiod(%)

Issuance date

First Series ofUnsecured Investment-

1,000,000

0.640 July 26, 2028

July 13, 2020

1,000,000--

1,000,000

0.800

July 12,2030

Repaymentofborrowings(Note 1)

September 28,
2021

2,000,000--

2,000,000

0.700

September
26, 2031

Repaymentofborrowings(Note 1)

September 28,
2021

1,000,000--

1,000,000

0.980

September
26, 2036

Repaymentofborrowings(Note 1)

November 30,
2021

1,200,000--

1,200,000

0.700

November28, 2031

Repaymentofborrowings(Note 1)-6,200,000--

6,200,000-

Corporation Bonds
Fourth Series ofUnsecured Investment
Corporation Bonds
Fifth Series ofUnsecured Investment
Corporation Bonds(Note 1)-

Corporation Bonds

Unsecured Investment

Repaymentofborrowings

1,000,000

Second Series ofThird Series ofCollateral

July 26, 2018

Corporation Bonds

Unsecured Investment

Usage(Green bond)
Total

-

-

-

(Note 1) With special pari passu conditions among the specified investment corporation bond.
(Note 2) The total scheduled repayment amount of the investment corporation bonds after the balance sheet date is as follows.
(Thousand yen)Over 1 year andwithin 2 years

Within 1 year
Investment
corporation bonds-

Over 2 years but
within 3 years-

Over 3 years but
within 4 years
-

－

44

－

Over 4 years but
within 5 years-

Over 5 years-

6,200,000

(vi) Borrowings(Thousand yen)Classification

Short-termborrowings

LenderDrawdown
date

MizuhoBank, Ltd.

March 31,2023-

0.37250

November 30,
2022

2,000,000-

0.37250

November 30,
2022

-

-

2,500,000

0.42180

October 31,
2023

1,000,000--

1,000,000

0.42180

October 31,
2023-

6,500,000-

6,500,000

0.49960

November 30,
2023-

1,500,000-

1,500,000

0.49960-

2,000,000-

2,000,000

0.49960

November 30,
2023-

2,000,000-

2,000,000

0.62125

November 30,
2023-

1,000,000-

1,000,000

0.48000

January 31,
2024

April 28,2017-

2,000,000-

2,000,000

0.45000

April 30,
2024

April 30,2021-

1,500,000-

1,500,000

0.45000

April 30,2024

10,500,000

16,500,000

7,000,000

20,000,000

7,500,000--

7,500,000

0.74500

November 30,
2026

500,000--

500,000

0.74500

November 30,
2026

6,500,000-

6,500,000-

0.49960

November 30,
2023

1,500,000-

1,500,000-

Bulletrepayment (Note Unguaranteed/3)
Unsecuredon
November 30, maturity
0.499602023

2,000,000-

2,000,000-

0.49960

November 30,
2023

5,000,000--

5,000,000

0.59470

November 29,
2024

SubtotalLong-term
borrowings

Bulletrepayment (Note Unguaranteed/
Unsecuredon3)
maturity

0.56264

Sumitomo
Mitsui Trust December 16,
2016
Bank,
LimitedSBI Shinsei
December 16,
Bank,
2016
LimitedSumitomo
Mitsui Trust November 1,
2018
Bank,
LimitedSBI Shinsei
November 1,
Bank,
2018
LimitedSumitomo
Mitsui
December 16,
2016
Banking
Corporation
ResonaDecember 16,
Bank,
2016
Limited.
The Bank ofDecember 16,
Fukuoka,2016
Ltd.
Development
December 16,
Bank of2016
Japan Inc.
MizuhoMarch 1,
2018
Bank, Ltd.
MizuhoTrust &
Banking Co.,
Ltd.
MUFG
Bank, Ltd.

Repayment Repayment
Usage Description
datemethodMarch 31,2024

Subtotal

Current
portion of
long-term
borrowings

AverageAmount ofAmount ofBalance atBalance at interest rate
beginning ofincreasedecrease(Note 1)end of period
periodduring period during period(Note 2)

Sumitomo
Mitsui
December 16,
2016
Banking
Corporation
ResonaDecember 16,
Bank,
2016
Limited.
Sumitomo
Mitsui
December 16,
2016
Banking
Corporation
ResonaDecember 16,
Bank,
2016
Limited.
The Bank ofDecember 16,
Fukuoka,
2016
Ltd.
Sumitomo
Mitsui Trust December 16,
2016
Bank,

-

1,500,000-

1,500,000-

1,500,000-

1,500,000

5,000,000-

5,000,000

2,000,000-

2,500,000

Limited－45－

Bulletrepayment (Note Unguaranteed/on3)
Unsecured
November 30, maturity
2023

Classification

LenderDrawdown
date

Development
December 16,
Bank of2016
Japan Inc.
MizuhoTrust &
April 28,
2017
Banking Co.,

Long-term
borrowings

Ltd.
Sumitomo
Mitsui Trust October 26,
2017
Bank,
LimitedSBI Shinsei
October 26,
Bank,
2017
LimitedThe Nanto
October 26,
2017
Bank, Ltd.
ResonaOctober 26,
Bank,
2017
LimitedSumitomo
Mitsui
October 31,
2017
Banking
Corporation
The Bank of
October 31,
Fukuoka,
2017
Ltd.
SBI Shinsei
March 1,Bank,
2018
LimitedResonaMarch 1,Bank,
2018
LimitedMizuhoMarch 1,
2018
Bank, Ltd.
Sumitomo
Mitsui
May 15, 2018
Banking
Corporation
MizuhoMay 15, 2018
Bank, Ltd.
MizuhoTrust &
August 1,
2018
Banking Co.,Ltd.
MizuhoNovember 1,
2018
Bank, Ltd.
Sumitomo
MitsuiNovember 1,
2018
Banking
Corporation
MUFG
April 30,
2021
Bank, Ltd.
MUFGOctober 29,
2021
Bank, Ltd.
MizuhoNovember 30,
2021
Bank, Ltd.
MizuhoNovember 30,
2021
Bank, Ltd.
MizuhoBank, Ltd. November 30,
2021(GreenLoan)
MUFG
Bank, Ltd.

January 12,
2022

AverageAmount ofAmount ofBalance atBalance at interest rate
beginning ofincreasedecrease(Note 1)end of period
periodduring period during period(Note 2)

Repayment Repayment
Usage Description
datemethod2,000,000-

2,000,000-

0.62125

November 30,
2023

2,000,000-

2,000,000-

0.45000

April 30,2024

2,000,000--

2,000,000

0.54375 July 31, 2025

1,000,000--

1,000,000

0.54375 July 31, 2025

1,000,000--

1,000,000

0.54375 July 31, 2025

1,000,000--

1,000,000

0.70900 July 30, 2027

4,000,000--

4,000,000

0.72750

October 29,
2027

1,000,000--

1,000,000

0.72750

October 29,
2027

1,000,000--

1,000,000

0.57350January 30,
2026

500,000--

500,000

0.57350January 30,
2026

1,000,000-

1,000,000-

0.48000

Bulletrepayment (Note Unguaranteed/on3)
Unsecured
January 31,
maturity2024

2,000,000--

2,000,000

0.52770

April 30,2025

1,500,000--

1,500,000

0.56000

April 30,2025

1,700,000--

1,700,000

0.62000 July 31, 2028

2,500,000--

2,500,000

0.68000

October 30,
2026

3,000,000--

3,000,000

0.56800

October 31,
2025

1,500,000-

1,500,000-

0.45000

April 30,2024

1,500,000--

1,500,000

0.38000

October 31,
2024

1,500,000--

1,500,000

0.39900

October 30,
2026

3,300,000--

3,300,000

0.46240

November 30,
2028

4,000,000--

4,000,000

0.50900

November 30,
2029

1,000,000--

1,000,000

0.38000

December 30,
2024

－

46

－

Long-termborrowings

Sumitomo
Mitsui Trust January 12,
2022
Bank,
LimitedSBI Shinsei
January 12,
Bank,
2022
LimitedSumitomo
MitsuiJanuary 12,
2022
Banking
Corporation
MizuhoMarch 25,
2022
Bank, Ltd.
ResonaMarch 25,
Bank,
2022
LimitedSumitomo
Mitsui Trust November 30,
2022
Bank,
LimitedSBI Shinsei
November 30,
Bank,
2022
LimitedThe Juhachi- November 30,
2022
Shinwa Bank

1,000,000--

1,000,000

0.37950

December 30,
2026

1,000,000--

1,000,000

0.42950

December 30,
2026

1,000,000--

1,000,000

0.47850

December 29,
2028

1,000,000--

1,000,000

0.61500

300,000--

300,000

0.59500-

3,500,000－

3,500,000

0.72000

November 30,
2027-

2,000,000－

2,000,000

0.72000

November 30,
2027-

1,500,000－

1,500,000

0.72000

November 30,
2027

Subtotal

67,300,000

7,000,000

16,500,000

57,800,000

Total

77,800,000

25,000,000

23,500,000

79,300,000

BulletFebruary 28,
repayment (Note Unguaranteed/
2029
on
3)
Unsecured
February 28, maturity
2029(Note 1) The average interest rate indicates a weighted average of interest rates for the period by the number of days.
(Note 2) MIRAI enters into interest rate swaps to avoid the risk of interest rate fluctuations, and the interest rate after taking into account the effect of the interest
rate swaps (fixing the interest rate) is stated.
(Note 3) The funds were used for the purchase of real estate and trust beneficiary rights of real estate, refinancing of borrowings, working capital, etc.
(Note 4) The total scheduled repayment amount of long-term borrowings after the balance sheet date is as follows.
(Thousand yen)
Within 1 year
Long-term
borrowings

20,000,000

Over 1 year andwithin 2 years

Over 2 years but
within 3 years

Over 3 years but
within 4 years

Over 4 years but
within 5 years

8,500,000

14,000,000

13,000,000

11,000,000

－

47

－

Over 5 years
11,300,000