MIRAI Corporation
Semi Annual Report
For the Fiscal Period ended April 30, 2022 (The 12th Period)－ 1－

Primary Data

Distributions

The 12th Period
The 13th Period
The 14th 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, 2023)
14, 2022)
2022)
1,267 yen
1,285 yen
1,285 yen
(Forecast: 1,260 yen)
(Note) These forecasts are calculated based on certain assumptions as of June 14, 2022 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 DPU.

Financial Results
Operating revenue(billion yen)
6

4

4.9

5.3

5.4

1,563

1,561

Net profit

5.3

DPU

(yen)

5.1

4.9

1,800

5.2

1,600

1,429

1,436

1,247

1,289

1,267

1,400

2
2.2

2.4

2.5

2.3

2.0

2.1

2.2

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

1,200

0

1,000

(Note) MIRAI implemented a four-for-one investment unit split with April 30, 2019 as record date. For the purpose of comparison, thefigures before 6th FP are post-split figures.

Portfolio (as of the End of April 2022)

Acquired 4 new properties worth 10.6 billion yen from the end of the fiscal period ended October 31, 2021.
Number of properties: 38
AUM: 164.5 billion yen
Appraisal value: 177.6 billion yen
Occupancy rate
: 98.1%NOI yield (12th FP result): 4.5% *based on book value
Portfolio PML: 2.9%
Ratio by Tenant

Ratio by Asset Type

Ratio by Area(based on rent)(based on acquisiton price)
Others(based on acquisiton price)
OthersHotel

9.5%
Nagoyaarea

16.1%
Top 10Core Assets

36.8%

87.5%

Others63.2%
Retail14.4%

8.9%
Office

Osaka
area

52.6%

15.8%

Three
Metropolitan
Areas

85.6%

60.9%

21.7%

(Note) Ratio by tenant is based on lease contract in place with end tenants as of the end of April 2022.



Tokyo
area

Finance (as of the End of April 2022)

Stable financial base maintained on the back of Mitsui & Co.’s credit.
LTV (based on total assets): 48.8%Long-term fixed interest debt ratio : 100.0%
Average interest rate
: 0.56%
Average remaining maturity: 3.9 years
Rating: Japan Credit Rating Agency, Ltd. (JCR) / A+ (Stable)
Rating and Investment Information, Inc. (R&I) / A (Stable)

－ 2

－



ESG
 Increase ratio of assets with environmental certifications

April 2022: Obtained DBJ Green Building Certification at Mi-Nara (first retail facility owned by MIRAI)
Aim to increase ratio of assets with environmental certifications through acquisition of new certifications andmaintenance and improvement of existing certifications
Ratio of Assets with Environmental Certifications (Note): 60.9% ▶ 74.4%
(Note) Based on total floor area excluding land with leasehold interest.
 GRESB Real Estate Assessment (ESG benchmark for real estate)First participation in 2021(2 star)Multiple improvement measures are being implemented for the 2022 rating upgrade
Obtain third-party assurance on environmental data / Tenant Engagement Measures
2021: 2 star / Green star ▶ Aiming to improve the rating in 2022

 Contributions to the Local Community
Cycle & Bus Rides (Mi-Nara)
Participation in a demonstration experiment of health-enhancing and environmentally friendly measures
promoted by a regional local transportation company
Recovery accommodation facility for patients with mild cases of COVID-19

Continued to provide as a recovery accommodation facility(from October 11, 2021 to October 31, 2022 (scheduled))
 Strengthening Sustainability DisclosureDisclosed the GRI Standards Reference Table, an international disclosure standard for sustainability report on
MIRAI’s website
Plans to enhance sustainability-related disclosures in the future
Future Initiatives

ESG Report: Publication of ESG reports to further enhance sustainability information disclosure
TCFD Disclosures: Prepare for TCFD, a framework for addressing climate-related disclosure
Third-party Assurance for Environmental Data: Obtain third-party assurance to ensure objectivity of disclosed
environmental data

－ 3－

1 Overview of Asset Management(1) Operating Results of MIRAI Corporation (hereinafter “MIRAI”)
The 8th Period
From Nov. 1, 2019
to Apr. 30, 2020

PeriodThe 9th Period
From May 1, 2020
to Oct. 31, 2020

The 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

Operating revenue(Million yen)

5,448

5,367

4,973

5,113

5,275

Operating expenses(Million yen)

2,583

2,744

2,652

2,716

2,727

Operating income(Million yen)

2,865

2,622

2,321

2,397

2,547

Ordinary income(Million yen)

2,595

2,378

2,073

2,144

2,245

Net income(Million yen)

2,594

2,376

2,072

2,143

2,244

Total assets(Million yen)

161,027

159,222

161,815

161,226

171,982[Changes from the previous period]
Net assets[Changes from the previous period](%)(Million yen)
(%)

[5.2]

[(1.1)][1.6][(0.4)][6.7]

75,57275,42875,11075,30880,743

[6.6]

[0.2]

[(0.4)]

[0.3]

[7.2]

Interest-bearing debt

(Million yen)

77,70075,70078,70078,70084,000Unitholders’ capital (Note 3)(Million yen)

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

1,662,240

1,662,240

1,662,240

1,662,240

1,771,440

Net assets per unit

(Yen)

45,46445,37745,18645,30545,580Total distributions(Million yen)

2,594

2,375

2,072

2,142

2,244

Distributions per unit

(Yen)

1,561

1,429

1,247

1,289

1,267

Of which, profit distribution per unit

(Yen)

1,561

1,429

1,238

1,289

1,267

Of which, distributions in excess of earnings per unit

(Yen)

-

-

9

-

-

Ordinary income to total assets (Note 4)

(%)

1.7

1.5

1.3

1.3

1.3

Net income to net assets (Note 4)

(%)

3.5

3.1

2.8

2.8

2.9

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

(%)

46.9

47.4

46.4

46.7

46.9

(%)

[0.6]

[0.4]

[(1.0)]

[0.3]

[0.2]

(%)

100.0

99.9

99.3

100.0

100.0

[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, 2022,
the total number of outstanding investment units are 1,771,440 and MIRAI owns 38 properties (total acquisition price of 164,554 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 be affected by COVID-19. Occupancy rates in the hotel sector
have been affected by the spread of infection, MIRAI must continue to monitor the future trend. In the retail sector, although operational
methods in COVID-19 crisis are becoming established, the negative impact of the increasing number of infections continues. Even inthis environment, various measures to improve attractiveness have been effective at Mi-Nara, a retail complex in Nara Prefecture. In theoffice leasing market, cancellations due to changes in work styles, such as teleworking, and deterioration in corporate performancecontinue to be apparent in some properties, while the vacant spaces are being backfilled.
Under such circumstances, MIRAI acquired 4 properties in total: “Ehime Building/Hiroshima (acquisition price: 2,780 million yen)”,“Tsurumi Fuga 1 (acquisition price: 5,300 million yen)” , “BIGMOTOR Ginan (land) (acquisition price: 1,080 million yen)” on January
12, 2022, and “Yokohama-Daikokucho Maintenance Center (land) (acquisition price: 1,490 million yen)” on March 25, 2022. As a result,－ 4－

as of the end of the 12th fiscal period, MIRAI had 38 properties under management, with a total acquisition price of 164,554 million yen,a total leasable area of 372,290.09 sqm, and occupancy rate of 98.1%.
(iii) Overview of Fund Procurement
During this fiscal period under review, MIRAI raised 4,746 million yen by issuance of new investment units through a public offering(104,000 units) on December 24, 2021 and 237 million yen by a third-party allotment (5,200 units) on January 25, 2022. As a result, thebalance of unitholders’ capital as of the end of the 12th fiscal period was 78,499 million yen and the total number of outstanding
investment units was 1,771,440 units. MIRAI borrowed long-term borrowings of 8,800 million yen and issued #5th Investment
Corporation Bond of 1,200 million yen on November 30, 2021 to repay borrowings of 10,000 million yen maturing on the same day. In
addition, MIRAI borrowed 4,000 million yen in long-term borrowings on January 12, 2022 and 1,300 million yen in long-termborrowings on March 25, 2022 to fund the acquisition of real estate trust beneficiaries. The balance of borrowings and investment
corporation bonds as of the end of the 12th fiscal period was 84,000 million yen (of which 7,000 million yen was current portion of longterm borrowings, 70,800 million yen was long-term borrowings, 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 5,275 million yen, operating income of 2,547 million yen,ordinary income of 2,245 million yen, and net income of 2,244 million yen for the 12th 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”),
MIRAI decided to distribute 2,244,414,480 yen, which is the entire amount after deducting the reversal of the provision for adjustmentof temporary differences, etc. (as defined in Article 2, Paragraph 2, Item 30 of the Rules of Account Settlement of Investment
Corporations) from the income as defined in Article 136, Paragraph 1 of the AITIC, except for fractions of less than one yen, 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 1,267 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

Summary

Total number of outstanding investment units(units)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.

－ 5－<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 8th Period
From Nov. 1, 2019
to Apr. 30, 2020

The 9th Period
From May 1, 2020
to Oct. 31, 2020

The 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

Maximum (Yen)

63,800 yen

42,700 yen

53,500 yen

58,500 yen

56,100 yen

Minimum (Yen)

28,160 yen

33,050 yen

36,600 yen

47,400 yen

46,650 yen(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, 2,244,414,480 yen, which is the total amount of unappropriated retained earnings after
deduction of reversal of allowance for temporary difference adjustment (as stipulated in Article 2, Paragraph 2, Item 30 of the Ordinanceon Accountings of Investment Corporations), from the amount of earnings as stipulated in Article 136, Paragraph 1 of the AITIC,
excluding a fraction of one yen in distribution per investment unit, will be paid as distribution (exclusive of distributions in excess ofearnings).
PeriodThe 8th Period
From Nov. 1, 2019
to Apr. 30, 2020

The 9th Period
From May 1, 2020
to Oct. 31, 2020

The 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

3,216,858

2,915,631

2,538,115

2,623,329

2,597,360

Unappropriated retained earnings(Thousand yen)

Retained earnings(Thousand yen)

539,082

465,489

480,262352,709

3,984

Total amount of cash distributions(Thousand yen)

2,594,756

2,375,340

2,072,813

2,142,627

2,244,414(Yen)[1,561][1,429][1,247][1,289][1,267](Thousand yen)

2,594,756

2,375,340

2,057,853

2,142,627

2,244,414(Yen)[1,561][1,429][1,238][1,289][1,267](Thousand yen)--

14,960--[Distributions per unit]
Of which, total amount of profit distributions[Profit distributions per unit]
Of which, total amount of investment refunds[Refund of investment per unit]

(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)

[-]

[-]

[-]

[-]

[-]

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, MIRAI needs to carefully consider the future outlook based on trends in corporate performance and changes
in work styles. In hotel and retail sectors, rents for some assets are linked to tenants’ performance. MIRAI does not take variable rents
into consideration for hotels excluding special factors, such as providing as a recovery accommodation facility for patients with mildcases of COVID-19, etc. For retail assets, MIRAI will take relatively conservative forecasts with reference to past years’ results, whileconsidering a certain degree of renewal effects. 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 sound financial 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.

－ 6－(6) Significant Events after the Balance Sheet Date
Disposition of assets
MIRAI disposed the following asset after the end of the 12th Period (April 30, 2022).
Name of the Asset
Comfort Hotel Nagano
Type of Specified Asset
Real estate trust beneficiary
Address
1-12-4, Minami-chitose, Nagano-shi, Nagano(Residential Address)
Agreement Date
May 25, 2022
Disposition Date
May 31, 2022
Buyer
Ichigo Hotel REIT Investment Corporation
Disposition Price
670 million yen (Note)
MIRAI expects to record 0 million yen for the fiscal period ending October 31, 2022 in gain on
Impact on Profit / Losssales of real estate properties (disposition gain) as operating revenue.
(Note) “Disposition Price” shows the sale and purchase value of the asset that is stated in the sale and purchase agreement. The sale and purchase value does not include national or local consumption tax or expenses
necessary for the acquisition, and it is rounded down to the nearest million yen.

2 Overview of MIRAI(1) Status of Unitholders’ Capital
PeriodThe 8th Period(Apr. 30, 2020)

The 9th Period(Oct. 31, 2020)

The 10th Period(Apr. 30, 2021)

The 11th Period(Oct. 31, 2021)

The 12th Period(Apr. 30, 2022)

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

1,662,240

1,662,240

1,771,440

Total unitholders’ capital(Million yen)

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

29,02032,081

33,83732,59933,485(2) Matters Concerning Investment Units
Major unitholders as of April 30, 2022 are as follows:
Number of units owned(Units)Name

Ratio to total units outstanding (%)

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

253,997

14.34

Custody Bank of Japan, Ltd. (Trust account)

180,605

10.20

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

74,299

4.19

Custody Bank of Japan, Ltd. (Securities investment trust account)

65,669

3.71

The Hachijuni Bank, Ltd.

27,469

1.55

STATE STREET BANK WEST CLIENT-TREATY 505234

25,532

1.44

SSBTC CLIENT OMNIBUS ACCOUNT

20,462

1.16

MITSUI & CO. ASSET MANAGEMENT HOLDINGS LTD.

20,000

1.13

IDERA Capital Management Ltd.

20,0001.13

JP MORGAN CHASE BANK 385771

19,857

1.12

707,890

39.96

Total

－ 7

－

(3) Matters Concerning Officers, etc.
(i) The Executive Director, Supervisory Director and Accounting Auditor for the 12th period are as follows:
Title

Executive Director

Name

Total compensation or fee forsix-month period ended April
30, 2022(Thousand yen)

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

3,683

17,000(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.

(5) Asset Management Company, Asset Custodian and General Administrators
The asset management company, asset custodian and general administrators as of April 30, 2022 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 and MUFG Bank, Ltd. and Mizuho Bank, Ltd.

－ 8－

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

Category

Real estate

Real estate in trust

The 11th Period
As of October 31, 2021

The 12th Period
As of April 30, 2022

Total amount held
(Million yen)

Ratio to total assets(%)

Total amount held
(Million yen)

Ratio to total assets(%)

Office

2,239

1.4

2,237

1.3

Industrial

2,418

1.5

2,418

1.4

Total of real estate

4,657

2.9

4,656

2.7

Office82,32351.1

85,11849.5

Retail30,04618.6

36,723

21.4

Hotel

26,581

16.5

26,50915.4

Industrial

7,779

4.8

9,241

5.4

Educational

4,098

2.5

4,098

2.4

Total of real estatein trust

94.0

150,830

93.6

161,690

Deposits and other assets

5,738

3.6

5,635

3.3

Total assets

161,226100.0

171,982100.0(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, 2022 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

23,80022,737.07

22,737.07

100.0

18.6

OfficeShinagawa Seaside Parktower

19,934

22,205.78

21,379.97

96.3

14.0

OfficeTokyo Front Terrace

10,801

9,705.59

8,106.59

83.5

4.7

OfficeShinjuku Eastside Square

9,775

5,774.45

5,685.22

98.5

4.9

OfficeNot disclosed(Note 4)Retail

5.6

OfficeAEON Kasai

9,626

28,338.45

28,338.45

100.0

MI Terrace Nagoya-Fushimi

8,943

11,625.38

11,625.38

100.0

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

Rokko Island DC

7,727

15,563.37

15,563.37

100.0

Tsurumi Fuga 1

5,530

9,578.60

9,578.60

100.0

Mi-Nara

5,081

43,435.72

39,918.08

91.9

8.4

Tokyo Eiseigakuen Senmongakko

4,098

4,220.46

4,220.46

100.0

Not disclosed(Note 4)

Total

105,319

173,184.87

167,153.19

96.5

70.3

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.

－ 9－

(3) Details of Real Estate and Other Assets
The following is a summary of the assets owned by MIRAI as of April 30, 2022.
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

19,934

22,570Kawasaki Tech Center

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

Trust beneficiaries

22,737.07

23,80024,600Shinjuku Eastside Square

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

Trust beneficiaries

5,774.45

9,775

10,650Tokyo Front Terrace

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

Trust beneficiaries

9,705.59

10,801

11,094MI Terrace Nagoya-Fushimi

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

Trust beneficiaries

11,625.38

8,943

10,600Orico Hakataeki Minami
Building

3-7-10, Hakataeki-minami, hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiaries

2,845.60

1,727

1,780

My Square Building

2-10-3, Azabu Juban, Minato-ku, Tokyo

Trust beneficiaries

1,795.74

2,942

3,050

Hiroshima Rijo-dori Building

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

Trust beneficiaries

3,611.85

2,341

2,540

BizMiiX Yodoyabashi

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

Trust beneficiaries

1,020.82

2,018

2,210

TCA Building

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

Real estate

3,212.80

2,237

2,270

Ehime Building/Hiroshima

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

Trust beneficiaries

4,700.45

2,832

2,980

Shibuya World East Building

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

Trust beneficiaries

1,701.55

3,373

5,000

THINGS Aoyama

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

Trust beneficiaries

997.62

2,946

3,240

MI Cube Sendai Clisroad

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

Trust beneficiaries

1,023.76

1,378

1,450

AEON Kasai

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

Trust beneficiaries

28,338.45

9,626

9,580

MEGA Don Quijote Izumi-Chuo

5-6-17, Ibuki-no, Izumi-shi, Osaka

Trust beneficiaries

6,891.87

3,020

2,570

CAINZ MALL Hikone (land)

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

Trust beneficiaries

85,323.95

3,675

4,270

MaxValu Takatori (land)

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

Trust beneficiaries

5,748.81

987

1,040

Tsurumi Fuga 1

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

Trust beneficiaries

9,578.60

5,530

5,800

BIGMOTOR Ginan (land)

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

Trust beneficiaries

6,544.89

1,101

1,190

Hotel Sunroute Niigata

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

Trust beneficiaries

8,254.80

2,141

2,260

Daiwa Roynet Hotel Akita

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

Trust beneficiaries

7,439.36

1,895

2,170

Super Hotel Sendai/Hirose-dori

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

Trust beneficiaries

3,283.95

1,232

1,670

Super Hotel Osaka/Tennoji

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

Trust beneficiaries

2,486.39

1,242

1,590

Super Hotel Saitama/Omiya

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

Trust beneficiaries

2,946.55

1,065

1,330

Super Hotel Kyoto/Karasumagojo

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

Trust beneficiaries

2,144.02

1,010

1,290

Ise City Hotel Annex

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

Trust beneficiaries

4,099.31

1,905

1,810

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

794

828

Comfort Hotel Nagano

1-12-4, Minami-chitose, Nagano-shi, Nagano

Trust beneficiaries

1,921.45

635

588

Hotel Wing International SelectUeno/Okachimachi

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

Trust beneficiaries

3,079.33

3,800

4,050

Smile Hotel Naha City Resort

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

Trust beneficiaries

9,698.44

4,024

3,990

Smile Hotel Hakataeki-Mae

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

Trust beneficiaries

2,432.72

3,789

3,580

Smile Hotel Nagoya-Sakae

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

Trust beneficiaries

2,909.20

2,969

2,920

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

Trust beneficiaries

43,435.72

5,081

3,750

Rokko Island DC

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

Trust beneficiaries

15,563.37

7,727

8,880

Real estate

16,529.10

2,418

2,560

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

Trust beneficiaries

3,499.83

1,514

1,580

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

Trust beneficiaries

4,220.46

4,098

4,280

372,290.09

166,346

177,610

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.

－ 10

－

The leasing status of real estate properties owned by MIRAI is as follows:
The 11th Period(From May. 1, 2021 to Oct. 31, 2021)

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

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

23

98.0

759

14.8

23

96.3

740

14.0

Kawasaki Tech Center

27

100.0

949

18.6

27

100.0

979

18.6

Shinjuku Eastside Square

40

98.5

268

5.3

39

98.5

260

4.9

Tokyo Front Terrace

23

85.0

262

5.1

24

83.5

247

4.7

MI Terrace Nagoya-Fushimi

8

97.1

301

5.9

8

100.0

293

5.6

Orico Hakataeki Minami Building

1

100.0

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

100.0

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

9

100.0

86

1.7

9

100.0

77

1.5

Hiroshima Rijo-dori Building

12

96.3

80

1.6

13

100.0

82

1.6

BizMiiX Yodoyabashi (Note 6)

19

28.5

13

0.3

26

58.9

21

0.4

TCA Building

8

100.0

69

1.4

7

100.0

66

1.3

Ehime Building/Hiroshima

-

-

-

-

21

100.0

58

1.1

Shibuya World East Building

8

100.0

117

2.3

8

100.0

114

2.2

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

100.0

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

3

100.0

Name of real estate, etc.

THINGS Aoyama

1

100.0

MI Cube Sendai Clisroad

3

100.0

33

0.7

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)

AEON Kasai

1

100.0

MEGA Don Quijote Izumi-Chuo

1

100.0

CAINZ MALL Hikone (land)

1

100.0

MaxValu Takatori (land)

1

100.0

Tsurumi Fuga 1

-

-

-

BIGMOTOR Ginan (land)

-

-

-

Hotel Sunroute Niigata

1

94.6

75

Daiwa Roynet Hotel Akita

1

100.0

Super Hotel Sendai/Hirose-dori

1

Super Hotel Osaka/Tennoji

34

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

1

100.0

1

100.0

1

100.0

1

100.0

-

1

100.0

-

1

100.0

1.5

1

94.6

70

1.3

69

1.3

1

100.0

69

1.3

100.0

54

1.1

1

100.0

44

0.8

1

100.0

46

0.9

1

100.0

39

0.7

Super Hotel Saitama/Omiya

1

100.0

44

0.9

1

100.0

35

0.7

Super Hotel Kyoto/Karasumagojo

1

100.0

1

100.0

38

0.8

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)Ise City Hotel Annex

1

100.0

Comfort Hotel Kitakami

2

100.0

Comfort Hotel Nagano

1

100.0

Hotel Wing International SelectUeno/Okachimachi

1

100.0

Smile Hotel Naha City Resort

1

100.0

67

Smile Hotel Hakataeki-Mae

1

100.0

Smile Hotel Nagoya-Sakae

1

100.0

Mi-Nara53

90.6

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

0.6
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

1

100.0

1.3

1

100.0

171

3.2

36

0.7

1

100.0

34

0.6

45

0.9

1

100.0

46

0.9

56

91.9

465

9.1

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

1

100.0

1

100.0

-

-

-

1

100.0

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

11

1

100.0

1

100.0

-

1

100.0

Not disclosed(Note 4)

1

100.0

－

442

8.4

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)

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

Name of real estate, etc.

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)

256

97.8

5,113

Total

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

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)

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

Portion of realestate leasing
business
revenue (%)

100.0

290

98.1

5,275

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.

(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, 2022 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)

56,100,000(2,664)(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)

TotalamountPayment
for thecurrent
periodTotalamountpaid

From June 2020
to October 2022

156,646

24,86074,580From February 2022
to October 2022

152,821--

Compartment repair work, electricalinstallation work, etc.

From May 2022
to October 2022

62,877

10,00010,000Kawasaki Tech Center(Kawasaki-shi, Kanagawa)Air-conditioning equipment work, electricalinstallation work, etc.

From May 2022
to October 2022

41,258--Orico Hakataeki Minami Building(Fukuoka-shi, Fukuoka)

Air-conditioning equipment work, etc.

From May 2022
to October 2022

29,386--

Others--126,603--

PurposeScheduled period

Shinagawa Seaside Parktower(Shinagawa-ku, Tokyo)

Automatic fire alarm equipment renewal
work, disaster prevention equipment renewal
work, compartment repair work, airconditioning equipment work, etc.

Tokyo Front Terrace(Shinagawa-ku, Tokyo)

Elevator renewal work, compartment repair
work, etc.

Mi-Nara(Nara-shi, Nara)

Fiscal period ending October 31, 2022 (13th period)

After Fiscal period ending April 30, 2023 (14th period)
Ise City Hotel Annex(Ise-shi, Mie)

Renewal work

From January 2023
to February 2023

110,935--

Kawasaki Tech Center(Kawasaki-shi, Kanagawa)Elevator renewal work

From November 2022
to April 2023

88,561--

Tokyo Front Terrace(Shinagawa-ku, Tokyo)

Elevator renewal work

From November 2022
to April 2023

76,954--(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 500,153 thousand yen, and together－ 12－with 64,048 thousand yen in repair expenses classified as expenses for the current fiscal period, a total of 564,201 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)Electrical installation work, air-conditioning equipment
work, etc.

From November 2021
to April 2022

97,850Tokyo Front Terrace(Shinagawa-ku, Tokyo)

Escalator renewal work, etc.

From September 2021
to April 2022

96,231Mi-Nara(Nara-shi, Nara)

Air-conditioning equipment work, water supply pumpequipment construction, compartment repair work, etc.

From November 2021
to March 2022

88,277

AEON Kasai(Edogawa-ku, Tokyo)

Disaster prevention equipment renewal work

From February 2021
to March 2022

86,915

Shinagawa Seaside Parktower(Shinagawa-ku, Tokyo)

Steam generator renewal work, construction of security
equipment, electrical installation work, etc.

From November 2021
to April 2022

27,541--

103,337

OthersTotal

500,153(3) Reserve for Long-Term Repair Plan
Not applicable.
5 Expenses(1) Details of Expenses Related to Asset Management, etc.
(Thousand yen)thth

The 11 Period
From May 1, 2021
to October 31, 2021

Item

Asset management fee (Note)

The 12 Period
From November 1, 2021
to April 30, 2022
441,548434,547

Asset custody fee

8,499

8,916

Administrative service fees

20,827

18,588

Remuneration for directors

3,696

3,683

Other operating expenses

49,641

57,874524,213523,610

Total(Note) In addition to the above, there are acquisition fee of 106,500 thousand yen that are included in the book value of individual assets in the 12th 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

Disposition

Acquisition date

Acquisition price(Million yen)
(Note)

Ehime Building/Hiroshima

January 12, 2022

2,780

-

-

-

-

Tsurumi Fuga 1

January 12, 2022

5,300

-

-

-

-

BIGMOTOR Ginan (land)

January 12, 2022

1,080

-

-

-

-

Yokohama-Daikokucho Maintenance Center (land)

March 25, 2022

1,490

-

-

-

-

-

10,650----Name of real estate, etc.

Total

Disposition date

Disposition price(Million yen)Book value(Million yen)

Gain/loss on sale(Million yen)

(Note) The acquisition price do not include miscellaneous expenses, property tax, city planning tax, consumption tax and local consumption tax required for the acquisition of the relevant real estate, etc.

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

Acquisition

Transaction date

Type of assets

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

Ehime Building/Hiroshima

January 12,
2022

Real estate
trust
beneficiaries

2,780

Tsurumi Fuga 1

January 12,
2022

Real estate
trust
beneficiaries

BIGMOTOR Ginan (land)

January 12,
2022

Real estate
trust
beneficiaries

Name of Real Estate, etc.

－ 13

－

Appraiser

Appraisal date

2,950

Daiwa Real
Estate Appraisal
Co., Ltd.

October 31,
2021

5,300

5,800

Tanizawa Sogo
Appraisal Co.,Ltd.

November 1,
2021

1,080

1,190

Tanizawa Sogo
Estate Appraisal
Co., Ltd.

November 1,
2021

Yokohama-Daikokucho Maintenance Center(land)March 25, 2022

Real estate
trust
beneficiaries

1,490

1,570

Daiwa Real
Estate Appraisal
Co., Ltd.

October 31,
2021(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 price do not include miscellaneous expenses, property tax, city planning tax, consumption tax and local consumption tax required for the acquisition of the relevant real estate, etc.

(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(i) General Meeting of Unitholders
Not applicable.
(ii) Board of Directors
The following is a summary of the major agreements and amendments approved by the Board of Directors of MIRAI during the current
fiscal period.
Approval date

December 13, 2021

Item

Execution of new investment unit
underwriting agreement, etc.

Overview
With respect to the issuance of new investment units and secondary offering of investment units approved at the Board of Directors
meeting held on the same day, MIRAI executed a certificate of agreement for underwriting new investment units between Nomura
Securities Co, Ltd., SMBC Nikko Securities Inc., Mizuho Securities Co, Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co, Ltd.

(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

－

■Y
a better∬
訛子
需woridIndependent Auditor's Report

The Board ofDircctors
MIRAI Corporation

OpinionWe ha、アc auditcd he accompanying inancial statcmcnts ofMIRAI Corporation(thcCompany''),whiCh COmprise the balance shcct as at Apri1 30,2022,and hc statcmcnts ofincome and rctaincd ea∬ 五ngs,changcs in nct assets,cash distributions and cash no、 vs lbr thesix― month period thcn cnded,and notes to thc inancial statements.
In olェ r

opinion,the accompanying inancial statements prescnt fairly,in all matcrial respects,thc

financ壺 」position ofthc Company as atApri1 30,2022,and its inancial perfollllance and its

cashユ o、 vs fbr the six― mondl pcriod thcn ended in accordancc、 vith accounting principles
gcnerally accepted in Japan.

Basis for Opinion
We conductcd our auditin accordancc、 vith auditing standards gcncrally acceptcd in Japan.Our
rcsponsibilities under thosc standards are funher described in thc Auditor's Responsibilitics for

thc Audit ofthe Financial Statcmcnts section of our repoA.Wc arc indcpcndent ofthe Company
in accordance with thc cthical requirements that are rclcvant to our audit ofthe financial

statements in Japan,and、 ve have fulillcd our othcr c■ lical responsibilitics in accordance withthese requiremcnts,Wc beheve that the audit cvidence、 vc have obtained is sufflcicnt andappropriatc to provide a basis for our opinion.

Other lnformation
Thc ohcrinfo上 11lation compriscs thc infoHnation includcd in Scnli Annual Repon that cOnt〔 unsaudited inancial statcmcnts but does not includc thc flnancial statements and ollr auditor's

rcport thereon.Wfanagemё nt is rcsponsiblc for prcparation and disclosure ofthe other
infollklationo Supeぃ 五sory E)ircctor is responsible for oversceing the Company's rcporting
proccss ofthe othcr information.
Our opinion on the financial statcmcnts docs not cover thc Othcr infoHnation and、 vc do not
cxpress any fonll ofassurance conclusion thcrcon.
In comlcction wih our audit ofhe flnancial stttements,Ollr reSponsibility is to rcad he other
infollllation and,in doing so,consider whcther the othcr infollllation is lnaterially inconsistcnt
with the flnancial statcments or ollr kno、vledge obtaincd in the audit or othcrwisc appcars to bematerially■ lisstatOd.
It baSed On thc work we have perfo■ 1llcd,wc cOnclude that here is a matcrial misstatement of
his ohcr infollllatiOn,we arc rcquircd to repoi that fact。

We have nothing to rcportin this regard.

Ernst 8(Young ShinNihon LLC

二Y
a better訛l鵜 worid

ResPonSibilities of Management and Supewisory E,irector for the Financial Statements
ヽ/1anagement is responsiblc fbr thc prcparation and金五r presentation ofthese financial statcmcnts
in accordance、 vith accounting principlcs gcncrally acceptcd in Japan,and for such inte■lalcontrol as rnanagement dcte111lincs is necessary to enable the preparation of inancial statcments

hat are frec from material misstatement,wheher due to fraud or error.
In prcparing hc in〔 ncial statement母 ,managcmentis responsible for assessing thc Company's

ability to continue as a going conccm and disclosing,as required by accounting principles
gcncrally acceptcd in Japan,Inatters related to going concem。

The Supervisory E)ircctor is responsible for ovcrsccing the Company's flnancial rcporting
proccss.

Auditor's ResPonsibilities lbr the Audit ofthe Financial Statements
Our ottectiVCS are to obttn reasonablc assllrance about whchcr hc inancial stttements as awhole arc free frorl lnatcttal lnisstatel■ ent,whclhcr due to fraud or error,and to issue anauditor's rcpott that includcs ollr Opinion.WIisstatemcnts can arisc trom fraud or eFOr and arc

considcred rnatcrial it indiVidually or in thc aggrcgate,they could reasonably bc cxpccted toinauencc thc econonic dccisions ofusers taken on the basis ofthesc financial statements,
As part ofan auditin accordance、 vith auditing standards generally acceptcd in Japan,wecxcrcise professionaljudgmc前 and maint航 n professional skcpticism throughout the audito Wc
also:

・ Identitt and assess thc isks ofmaterial misstatemcnt ofhc anancial statcments,whcher
duc to fraud or cror,design and perfoklll audit procedures responsive to hosc risks,andobtaln audit evidence that is sufflcicnt and appropriate to provide a basis fbr our opinion.

。 Consider interllal control relevant to thc audit in order to design audit procedurcs that areappropriate in the circumstanccs for our risk assessments,、

vhile the purposc ofthe audit ofthc flnancial statements is not expressing an opinion on thc cffcctivcness ofthe Company's
intcrllal coll仕 ol.

。Evaluate the appropriatcncss of accounting pohcies uscd and thc rcasonableness ofaccounting cstimatcs and related disclosures made by managcment,
C Conclude on the appropriatcncss ofrnanagement's use ofthe going concem basis ofaccounting and,based on he audit evidcncc obt五 ned,whehcr a material unccttainty exists
related to cvcnts or conditions hat may cast signiicttit doubt on the Company's ability to
exiStS,we arc
continue as a going conccm.If we concludc that a material llnccnainサ
rcquired to draw attcntion in our auditor's reportto the related discloswes in thc financial
statemcnts o為 lf such disclosllres arc inadequatc,to modi,our opiniOno Olttr conclusions arc

based on thc audit cvidence obtained up to thc datc ofour auditor's report.Ho、 vcvcr,tuture
cvents or conditions rnay cause thc Company to ceasc to continuc as a going concem。

・ Evaluate the overall presentation,structure and contcnt ofthc financial statements,including
he disclosures,and、 vheher thc financial statcments rcprescnt thc underlying transactions
and events in a rnanncr that achieves fair prcsentation in aOcordance、
principlcs gcncrally accepted in Japan.

E「nst&Young shinNIhon LLC

vith accounting

EY
a better訛l鷲 需worid。Obtain sufflcicnt appropriatc audit cvidcnce regarding thc inancial infoHnation ofthc
cntities or busincss activitics within the Company to cxpress an opinion on thc inancial
ニancc ofthc
statcments.We are rcsponsiblc for the direction,supeぃ 五sion and perfoIニ ェ
Col■ pany audit.We remain solely responsible for our audit opinion.

Wc communicatc with the Executivc Director rcgarding,alnong ohcr rnattcrs,the planned scope
and tilning ofthe audit and signiicant audit indings,including any signiflcant dcicicncies inintcmal control that we identify during our audit。
e also provide thc ExccJtivc Director、 vith a statement that、 ve havc complicd、 vih the cthicalヽアrcquircments regarding independcnce that arc relevant to our audit ofthe financial statements inJapan,and to communicatc、vith them all rclationships and oher rnattcrs that rnay reasonably bethoughtto bear on ourindependcncc,and wherc apphcable,rclatcd safcguards.
IntOrest Required to Be Disclosed by the Certined Public Accountants Act ofJapan
Our il11.and its dcsignatcd engagement partners do not havc any interestin thc Company which
1■ ed Pubhc Accountants Act ofis rcquircd to be discloscd pursuant to thc provisions ofthe Cc■
Japan.

Ernst&Young ShittNihon LLC
Tokyo,Japan
July 29,2022

ゑ各え嗣

Sh苅 i Kancko
Designated Engagemcnt Painer
Ccrtifled Public Accountttit

斗上 な 友IIiroto lnoue

Dcsignatcd Engagement Panncr
Certiflcd Public Accountant

Ernst&Young shinNihon LLC

Financial Statements(1) Balance Sheet(Thousands of yen)
As of October 31, 2021
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes 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

－ 15

－

As of April 30, 2022

2,542,119
2,331,887
227,272
131,784
57,17628
5,290,266

2,050,206
2,553,099
257,651
147,320
92,26687
5,100,631

436,737(10,017)426,720
564
(157)
407
4,230,785*1 35,077,401(4,536,603)
30,540,797
318,733(68,533)
250,199
207,051(62,426)
144,625*1 218,425(46,316)
172,109
119,722,380
54,691
155,542,717

436,737(16,131)420,605
564
(251)
313
4,770
(39)
4,730
4,230,785*1 37,118,626(5,133,371)
31,985,255
318,733(75,539)
243,194
220,610(69,918)
150,692*1 281,097(67,601)
213,496
129,097,520
93,037
166,439,632

18,640231
18,872

16,087231
16,318263,995
23
11,00656,134331,159
155,892,749

304,60418
11,00656,134
371,763
166,827,714

43,50043,500161,226,516

54,241
54,241
171,982,587

(Thousands of yen)
As of October 31, 2021
Liabilities
Current liabilities
Operating accounts payable
Distributions payable
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
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
Derivatives liabilities
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

*4

－ 16

－

As of April 30, 2022

514,683
8,466
10,000,000
509,857
5,383
1,096
625,064
948
137
11,665,638

480,597
10,5037,000,000
502,516
3,471
981
660,487
5,001
17,854
8,681,414

5,000,000
63,700,000
150,1095,050,075
352,076
74,252,261
85,917,899

6,200,000
70,800,000
148,766
5,405,910
2,664
82,557,341
91,238,755

73,516,089

78,499,868(478,725)*4(350,732)(478,725)
73,037,364(350,732)
78,149,135

2,623,329

2,597,360

2,623,329
75,660,693

2,597,360
80,746,496(352,076)(352,076)*3 75,308,617
161,226,516(2,664)(2,664)*3 80,743,832
171,982,587

(2) Statement of Income and Retained Earnings(Thousands of yen)
For the six-month
period ended
October 31, 2021
Operating revenue
Leasing business revenue
Other leasing business revenue
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fee
Asset custody fees
Administrative service fees
Remuneration for directors (and other officers)
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed distributions
Interest on tax refund
Subsidy income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance
costs
Borrowing related expenses
Investment unit issuance expenses
Other
Total non-operating expenses
Ordinary income
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)*1

For the six-month
period endedApril 30, 2022

4,262,183
851,598
5,113,781*1

2,192,292
441,548
8,499
20,827
3,696
49,6412,716,506
2,397,275

*1

*1

*1

－ 17

－

4,452,612
822,390
5,275,003*1

2,203,860
434,547
8,916
18,5883,683
57,874
2,727,470
2,547,532

22
2,711
2,733

23
1,027
284
516
1,851

203,041
9,351

202,668
22,586

1,607

2,990

41,859255,859
2,144,149
2,144,149
1,099
(16)
1,083
2,143,066
480,2622,623,329

46,74025,7563,000
303,7422,245,641
2,245,641
985
5990
2,244,651
352,7092,597,360

(3) Statement of Changes in Net Assets
The Fiscal Period ended October 2021 (The 11th period from May 1, 2021 to October 31, 2021)(Thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalAllowance fortemporarydifference
adjustment

Total deduction
from unitholders’capital73,516,089(463,764)(463,764)

73,052,324(14,960)(14,960)(14,960)-(14,960)(14,960)(14,960)

73,516,089(478,725)(478,725)

73,037,364

Balance at beginning of period

Unitholders’ capital,net

Changes during period
Dividends of surplus
Distributions in excess of earnings fromallowance for temporary difference
adjustments
Net income
Net changes in items other thanunitholders’ equity
Total changes during period
Balance at end of period*1(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning of period

Total surplus

Totalunitholders’equityDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

2,538,115

2,538,115

75,590,440(480,108)(480,108)(2,057,853)(2,057,853)(2,057,853)(2,057,853)(14,960)(14,960)

2,143,066

2,143,066

Unappropria
ted retained
earnings(undisposed
loss)

Total net
assets75,110,331

Changes during period
Dividends of surplus
Distributions in excess ofearnings from allowance fortemporary difference
adjustments
Net income

2,143,066

2,143,066

Net changes in items otherthan unitholders’ equity
Total changes during period
Balance at end of period

128,032

128,032

128,032

85,213

85,21370,253

128,032

128,032

198,285

2,623,329

2,623,329

75,660,693(352,076)(352,076)

75,308,617

－ 18

－

The Fiscal Period ended April 2022 (The 12th period from November 1, 2021 to April 30, 2022)(Thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’capitalAllowance fortemporarydifference
adjustment

Total deduction
from unitholders’capital73,516,089(478,725)(478,725)

Balance at beginning of period

Unitholders’ capital,net

73,037,364

Changes during period
Issuance of new investment units

4,983,778

4,983,778

Dividends of surplus
Reversal of allowance for temporary
difference adjustments

127,992

127,992

127,992

4,983,778

127,992

127,992

5,111,771

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

78,149,135

Net income
Net changes in items other thanunitholders’ equity
Total changes during period
Balance at end of period*1(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning of period

Unappropria
ted retained
earnings(undisposed
loss)
2,623,329

Total surplus

Totalunitholders’equityDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

2,623,329

75,660,693(352,076)(352,076)

Total net
assets75,308,617

Changes during period
Issuance of new investment
units
Dividends of surplus

4,983,778

4,983,778(2,142,627)(2,142,627)(2,142,627)(2,142,627)

temporary difference
adjustments(127,992)(127,992)--

Net income

2,244,651

2,244,651

2,244,651

2,244,651

Reversal of allowance for

Net changes in items otherthan unitholders’ equity

349,412349,412349,412

Total changes during period(25,968)(25,968)

5,085,802

349,412349,4125,435,214

Balance at end of period

2,597,360

2,597,360

80,746,496(2,664)(2,664)80,743,832

－ 19

－

(4) Statement of Cash Distributions(Yen)
Fiscal Period ended October 2021
(The 11th period from May 1, 2021
to October 31, 2021)
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 2022
(The 12th period from November 1, 2021
to April 30, 2022)

2,623,329,217

2,597,360,578

127,992,480

348,961,200

127,992,480

348,961,200

2,142,627,360[1,289]2,244,414,480[1,267]352,709,377

3,984,898

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,
2,142,627,360 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,
2,244,414,480 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).

－ 20

－

(5) Statement of Cash Flows(Thousands of yen)
For the six-month
period ended
October 31, 2021
Cash flows from operating activities
Net income before income taxes
Depreciation
Amortization of investment corporation bond issuancecosts
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by 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 deposits held in trust
Other payments
Net cash used in investing activities
Cash flows from financing activities
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment corporation
bonds
Proceeds from issuance of investment units
Distributions paid
Net cash provided by (used in) financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－ 21

－

For the six-month
period endedApril 30, 2022

2,144,149
610,859

2,245,641
641,351

1,607

2,990

(22)
212,392(110,073)
1,574(57,176)
11,42324,998(314,647)
26,51054,513(5,958)2,600,151
22(208,138)(755)
2,391,279

25,756(23)
225,254(30,379)(15,536)(35,090)(110,213)(6,886)35,423(40,609)
20,682
2,958,361
23(227,166)(1,100)2,730,118(12,351)(650,724)-(11,455,784)(3,486)

6,798

2,144

(278,365)(155,587)

58,053

511,422(0)(876,589)(0)(4,254)(11,105,547)(3,000,000)
1,500,000(1,500,000)

14,100,000(10,000,000)

2,975,530

1,186,268(2,072,850)(2,097,319)(582,630)
5,274,535*1 4,691,905

4,958,022(2,139,562)
8,104,728(270,701)
4,691,905*1 4,421,204

(6) Notes to the financial statements[Notes on Assumption of Going Concern]
Not applicable to the 12th 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, 2022, the numbers of investment units issued and outstandingare 1,771,440 units and MIRAI owns 38 properties (total acquisition price of 164,554 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.

－ 22

－

1.

2.

3.

4.

5.

6.

[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. 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 11th Period, the property tax, etc. included in the acquisition
cost of real estate was not applicable. In the 12th Period, the property tax, etc. included in theacquisition cost of real estate was 49,924 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
A. Accounting for trust beneficiary right for real estate, etc. as trust asset
Other significant
basis forpreparation of－ 23－

financial
statements

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 11th Period(as of October 31, 2021)
Property, plant and equipment
Loss on impairment

The 12th Period(as of April 30, 2022)

155,542,717-

166,439,632-

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.
[Notes to Changes in Accounting Policies]
Not applicable.

－ 24

－

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

The 11th Period (from May 1, 2021 to October 31, 2021)
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

127,992

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 12th Period (from November 1, 2021 to April 30, 2022)
1. Reason for occurrence of provision, assets identified and allowance(Thousands of yen)
Assets identifiedDeferred gains or losses onhedgesReason for occurrence of provision

Reversal of allowance fortemporary difference adjustment

Occurrence of revaluation losses frominterest rate swap

348,961

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.
[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 11th Period(as of October 31, 2021)
Buildings in trust
Tools, furniture, and fixtures in trust(Thousands of yen)
The 12th Period(as of April 30, 2022)

213,030

213,030328

328*2. Commitment line contracts

MIRAI has the commitment line contracts with the banks.
The 11th Period(as of October 31, 2021)
Total amount specified in thecommitment line contracts
Borrowing balance at end of period
Outstanding loan commitments at
end of period(Thousands of yen)
The 12th Period(as of April 30, 2022)

3,000,000

3,000,000--

3,000,000

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

The 11 Period(as of October 31, 2021)(Thousands of yen)
The 12th Period(as of April 30, 2022)

50,00050,000－ 25－

*4. Allowance for temporary difference adjustment

The 11th Period (from May 1, 2021 to October 31, 2021)
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 11th
periodThebalance at

Reason for

the endingof the 11th

occurrence ofreversal

periodOccurrence ofrevaluation
losses frominterest rate

491,890

463,764

14,960-478,725-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 12th Period (from November 1, 2021 to April 30, 2022)
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 12th

Allowance

ReversalReason for

the endingof the 12th

occurrence ofreversal

periodperiodDeferred gains
or losses onhedgesThebalance atOccurrence ofrevaluation
losses frominterest rate

491,890478,725swap-

127,992

350,732

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.

－ 26

－

[Notes to Statement of Income and Retained Earnings]*1. Breakdown of income from real estate leasing business(Thousands of yen)
The 11th Period

The 12th Period(from May 1, 2021 to October 31, 2021)(from November 1, 2021 to April 30, 2022)(i) Real estate leasing business revenue
Rent revenue-real estate
Rent income
Land rents received
Facility charges

3,912,631
188,400

4,081,001
202,072

161,152

Other lease business revenue
Utilities charges
Other operating income

4,262,183

582,390

169,539

4,452,612

569,581269,207851,598

Total real estate leasing business revenue

252,809822,390

5,113,781

5,275,003(ii) Real estate leasing business expenses
Expenses related to rent businessOutsourcing service expenses
Utilities expenses

369,829

370,255

462,215
398,204

456,817391,162

Depreciation

61,149609,599

64,048640,320

Other expenses related to rent business

291,293281,255

Taxes and dues
Repair expenses

Total real estate leasing business expenses(iii) Income from real estate leasing
business (i - ii)

2,192,292

2,203,860

2,921,489

3,071,142[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 11th Period

The 12th Period(from May 1, 2021 to October 31, 2021)(from November 1, 2021 to April 30, 2022)

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

20,000,000 units

20,000,000 units

1,662,240 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 11th Period

The 12th Period(from May 1, 2021 to October 31, 2021)(from November 1, 2021 to April 30, 2022)

Cash and deposits

2,542,119

2,050,206

Cash and deposits in trust

2,331,887

2,553,099

Restricted deposits held in trust(Note)(182,100)(182,101)

Cash and cash equivalents

4,691,905

4,421,204(Note) These are deposits that are reserved for the return of security deposits from tenants.

－ 27

－

[Lease Transactions]Operating lease transactions (as a lessor)(Thousands of yen)th

The 11 Period

The 12th Period(from May 1, 2021 to October 31, 2021)(from November 1, 2021 to April 30, 2022)

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

4,215,486
28,072,837

4,336,431
33,194,651

Total

32,288,324

37,531,082[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.

－ 28

－

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

Amounts on the Balance Sheet, fair value and their difference as of October 31, 2021 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

10,000,000

borrowings(ii) Investment corporation bonds

Difference

10,000,379

379

5,000,000

4,947,500(52,500)(iii) Long-term borrowings

63,700,000

63,724,722

24,722

Total liabilities

78,700,000

78,672,602(27,397)[352,076][352,076]-(iv) Derivative transactions *Amounts on the Balance Sheet, fair value and their difference as of April 30, 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-termborrowings(ii) Investment corporation bonds(iii) Long-term borrowings

Fair value

Difference

7,000,000

7,000,000-

6,200,000

6,059,460(140,540)

70,800,000

70,787,192(12,807)

Total liabilities
84,000,000
83,846,652(153,347)(iv) Derivative transactions *[2,664][2,664]*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, 2021)
Within1 yearInvestment
corporation bonds

1-2 years

2-3 years(Thousands of yen)
After
4-5 years
5 years

3-4 years

-

-

-

-

-

5,000,000

Long-term
borrowings

10,000,000

10,500,000

18,000,000

15,500,000

4,000,000

15,700,000

Total

10,000,000

10,500,000

18,000,000

15,500,000

4,000,000

20,700,000

－ 29

－

Repayment schedule for borrowings and Investment corporation bonds after the closing date (as of April 30, 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

7,000,000

20,000,000

11,000,000

8,500,000

14,000,000

17,300,000

Total

7,000,000

20,000,000

11,000,000

8,500,000

14,000,000

23,500,000[Notes to Investment Securities]

The 11th Period (as of October 31, 2021)
Not applicable to the 11th Period.
The 12th Period (as of April 30, 2022)
Not applicable to the 12th Period.
[Notes to Derivatives]

The 11th Period (as of October 31, 2021)
1. Transactions not applicable to hedge accounting
Not applicable to the 11th Period.
2. Transactions applicable to hedge accounting
The 11th Period (from May 1, 2021 to October 31, 2021)
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

50,000,000

50,000,000(352,076)

Based onprices andotherconditions
presented byfinancial
institutions

The 12th Period (as of April 30, 2022)
1. Transactions not applicable to hedge accounting
Not applicable to the 12th Period.
2. Transactions applicable to hedge accounting
The 12th Period (from November 1, 2021 to April 30, 2022)
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－ 30

63,100,000－

56,100,000(2,664)

Based onprices andotherconditions
presented byfinancial
institutions

[Notes to Retirement Benefits]

The 11th Period (as of October 31, 2021)
Not applicable to the 11th Period.
The 12th Period (as of April 30, 2022)
Not applicable to the 12th Period.
[Tax Effect Accounting]
1. Breakdown of major causes of deferred tax assets and deferred tax liabilities(Thousands of yen)th

The 11 Period(as of October 31, 2021)

The 12th Period(as of April 30, 2022)

Deferred tax assets
Enterprise tax not deductible

23

18

Deferred losses on hedges

110,763

838

Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets

110,787856(110,763)

(838)

23

18

23

18

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 11th Period(as of October 31, 2021)
Effective statutory tax rate

The 12th Period(as of April 30, 2022)

31.46%

31.46%(31.44%)0.03%(31.44%)
0.03%

0.05%

0.04%

(Adjustments)

Deductible cash distributions
Other
Effective tax rate after applying tax effect accounting[Notes to Equity in Earnings of Affiliates]

The 11th Period (as of October 31, 2021)
Not applicable to the 11th Period.
The 12th Period (as of April 30, 2022)
Not applicable to the 12th Period.
[Transactions with Related Parties]
1. Parent company and principal corporate unitholders

The 11th Period (from May 1, 2021 to October 31, 2021)
Not applicable to the 11th Period.
The 12th Period (from November 1, 2021 to April 30, 2022)
Not applicable to the 12th Period.
2. Subsidiaries and affiliates

The 11th Period (from May 1, 2021 to October 31, 2021)
Not applicable to the 11th Period.
The 12th Period (from November 1, 2021 to April 30, 2022)
Not applicable to the 12th Period.

－ 31

－

3. Sister companies

The 11th Period (from May 1, 2021 to October 31, 2021)
Not applicable to the 11th Period.
The 12th Period (from November 1, 2021 to April 30, 2022)
Not applicable to the 12th Period.
4. Directors and principal individual unitholders

The 11th Period (from May 1, 2021 to October 31, 2021)
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
PartnersCo., Ltd.

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.

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

441,548

Accounts
payable other485,703(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.
The 12th Period (from November 1, 2021 to April 30, 2022)
Paid-in
VotingNature of relationship
Name ofcapitalBusinessrightsNature ofClassify- company Addressordescription oror
cationholding Concurrent posts Business transaction
investoccupationindividual
relationship
ratio
ment
Executive director

Directoror theMichioclose Suganuma
relative

Executive directorof MIRAI and--

President of Mitsui
Bussan & IDERA
PartnersCo., Ltd.

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

Balance atTransaction
end ofamountAccount
period(Thousands(Thousandof yen)s of yen)-Co., Ltd.

541,047(Note 3)

Accounts
payable other

478,001(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 acquisition fee of 106,500 thousand yen, which were included in the book value of theacquired properties.
[Notes to Asset retirement obligations]

The 11th Period (as of October 31, 2021)
Not applicable to the 11th Period.
The 12th Period (as of April 30, 2022)
Not applicable to the 12th Period.

－ 32

－

[Notes to Lease Properties]
MIRAI holds offices, retails, hotels, an industrial asset 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 11th Period

The 12th Period(from May 1, 2021 to October 31, 2021)(from November 1, 2021 to April 30, 2022)

Amount on the balance sheet
Balance at the beginning of
the period
Changes during the period
Balance at the end of theperiod155,657,198

155,488,025(169,172)

10,858,568

155,488,025

166,346,594

Fair value at the end of the period
165,350,600
177,610,600(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 11th period, the reason of increase ismainly attributable to capital expenditure (439,221 thousand yen) and the reasons of decrease are mainly
attributable to depreciation (608,393 thousand yen). During the 12th period, the reason of increase is mainly
attributable to acquisition of 4 real estate trust beneficiary rights (10,997,213 thousand yen) and the reason of
decrease is mainly attributable to depreciation (638,798 thousand yen).
(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 12th 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 11th Period (from May 1, 2021 to October 31, 2021)(Thousands of yen)

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

Sales to external customers-

Utility revenue-

582,390582,390-

4,531,390

OthersTotal
582,390
5,113,781(Note) 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.
The 12th Period (from November 1, 2021 to April 30, 2022)(Thousands of yen)

Revenue from contracts withcustomers (Note)
Disposition of real estate, etc.
Utility revenue
OthersSales to external customers--

569,581569,581-4,705,421

Total
569,5815,275,003(Note) 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.
－ 33－

2. Information that provides a basis for understanding revenue from contracts with customers

The 11th Period (from May 1, 2021 to October 31, 2021)
As stated in the Summary of Significant Accounting Policies.
The 12th Period (from November 1, 2021 to April 30, 2022)
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 11th Period
The 12th Period(from May 1, 2021 to October 31, 2021)(from November 1, 2021 to April 30, 2022)

90,358 thousand yen

105,238 thousand yen

105,238 thousand yen

111,237 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
Not applicable.
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 11th Period (from May 1, 2021 to October 31, 2021)
Description is omitted as MIRAI engages in a single segment of the real estate leasing business.
The 12th Period (from November 1, 2021 to April 30, 2022)
Description is omitted as MIRAI engages in a single segment of the real estate leasing business.
(ii) Related information
The 11th Period (from May 1, 2021 to October 31, 2021)
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
－ 34

－

C.

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.
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 12th Period (from November 1, 2021 to April 30, 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.
[Per Unit Information]
The 11th Period

The 12th Period(from May 1, 2021 to October 31,
2021)(from November 1, 2021 to April 30,
2022)

Net assets per unit

45,305 yen

45,580 yen

Net income per unit

1,289 yen

1,291 yen

(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 11th Period

The 12th Period(from May 1, 2021 to October 31,
2021)(from November 1, 2021 to April 30,
2022)

Net income

2,143,066

2,244,651--

Net income pertaining to common investment units

2,143,066

2,244,651

Average number of investment units during period

1,662,240 units

1,738,544 units

Amount not attributable to common unitholders

－ 35

－

[Notes to Significant Subsequent Events]
Disposition of an asset
MIRAI disposed the following asset after the end of the 12th Period (April 30, 2022).
Name of the asset

Comfort Hotel Nagano

Type of specified assets

Real estate trust beneficiary

Address (lot number)

1-12-4, Minami-chitose, Nagano-shi, Nagano

Agreement date

May 25, 2022

Disposition date

May 31, 2022

Buyer

Ichigo Hotel REIT Investment Corporation

Disposition price

670 million yen (Note)

Impact on profit andloss

MIRAI expects to record 0 million yen for the fiscal period ending October 31, 2022 ingain on sales of real estate properties (disposition gain) as operating revenue.

(Note) “Disposition Price” shows the sale and purchase value of the asset that is stated in the sale and purchase agreement. The sale andpurchase value does not include national or local consumption tax or expenses necessary for the disposition, and it is rounded down to
the nearest million yen.

－ 36

－

[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

Primary hedged
items

Contract amount

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

56,100,000(2,664)

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

436,737--

436,737

16,131

6,114

420,605

Structures

564

-

-

564

251

94

313

-

4,770

-

4,770

39

39

4,730

Land

4,230,785--

4,230,785--

4,230,785

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

35,077,401

2,041,225-

37,118,626

5,133,371

596,767

31,985,255

318,733--

318,733

75,5397,005

243,194

207,051

13,559-220,610

69,918

7,491

150,692

218,425

62,671-

281,097

67,601

21,284

213,496

119,722,380

9,375,139-

129,097,520--

129,097,520

Construction inprogress in trust

54,691

38,345-93,037--93,037

Subtotal

160,266,772

11,535,712-

171,802,485

5,362,852

638,798

166,439,632

28,200--28,20012,112

2,553

16,087

231

-

-

231

-

-

231

28,431--

28,431

12,112

2,553

16,318160,295,204

11,535,712-

171,830,917

5,374,965

641,351

166,455,951

Machinery andequipment

Tools, furniture andfixtures in trust
Land in trust

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

(iv) Other Specified Assets
Not applicable.

－ 37

－

(Note)(Note)

(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)5,000,000

1,200,000-

6,200,000-

Corporation Bonds
Fourth Series ofUnsecured Investment(Note 1)-

Corporation Bonds

Unsecured Investment

Repaymentofborrowings

1,000,000

Second Series ofThird Series ofCollateral

July 26, 2018

Corporation Bonds

Unsecured Investment

Usage

Corporation Bonds
Fifth Series ofUnsecured Investment
Corporation Bonds(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
-

－ 38

－

Over 4 years but
within 5 years-

Over 5 years-

6,200,000

(vi) Borrowings(Thousand yen)Classification

Short-termborrowings

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

Repayment Repayment
Usage Description
datemethod10,000,000-

10,000,000-

0.37000

November 30,
2021-

5,000,000-

5,000,000

0.37250-

2,000,000-

2,000,000

10,000,000

7,000,000

10,000,000

7,000,000

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

0.49960

November 30,
2023

2,000,000--

2,000,000

0.49960

November 30,
2023

5,000,000--

5,000,000

0.59470

November 29,
2024

5,000,000-

5,000,000-

0.37250

November 30,
2022

2,000,000-

2,000,000-

0.37250

2,000,000--

2,000,000

BulletNovember 30,
repayment(Note Unguaranteed/2022
3)
Unsecuredonmaturity
November 30,
0.621252023

2,000,000--

2,000,000

0.45000

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

October 26,
2017

1,000,000--

1,000,000

0.70900 July 30, 2027

October 31,
2017

4,000,000--

4,000,000

0.72750

October 29,
2027

October 31,
2017

1,000,000--

1,000,000

0.72750

October 29,
2027

Drawdown
date

MizuhoDecember 16,
2016
Bank, Ltd.
Sumitomo
Mitsui Trust December 16,
2016
Bank,
LimitedShinsei
December 16,
Bank,
2016
LimitedSubtotal
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,
LimitedSumitomo
Mitsui Trust December 16,
2016
Bank,

Long-term
borrowings

LimitedShinsei
December 16,
Bank,
2016
LimitedDevelopment
December 16,
Bank of2016
Japan Inc.
MizuhoTrust &
April 28,
2017
Banking Co.,
Ltd.
Sumitomo
Mitsui Trust October 26,
2017
Bank,
LimitedShinsei
October 26,
Bank,
2017
LimitedThe Nanto
October 26,
2017
Bank, Ltd.
ResonaBank,
LimitedSumitomo
Mitsui
Banking
Corporation
The Bank ofFukuoka,
Ltd.

－ 39

－

BulletNovember 30,
repayment (Note Unguaranteed/2022
Unsecuredon3)
maturity
November 30,
0.37250
2022

April 30,
2024

Classification

LenderBalance at
Amount ofAmount of
Drawdown
Balance at
beginningofincreasedecreasedate
end of period
periodduring period during period

ShinseiMarch 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
BankingLong-term
borrowings

Averageinterest rate
(Note 1)
(Note 2)

Repayment Repayment Usage Description
methoddate

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

January 31,2024

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

2,500,000--

2,500,000

0.42180

October 31,
2023

1,000,000--

1,000,000

0.42180

1,500,000--

1,500,000

0.45000

October 31,
Bullet2023
repayment (Note Unguaranteed/on3)
Unsecured
April 30,
maturity2024

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-

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

February 28,
2029-

300,000-

300,000

0.59500

February 28,
2029

Subtotal

63,700,000

14,100,000

7,000,000

70,800,000

Total

73,700,000

21,100,000

17,000,000

77,800,000

Corporation
Sumitomo
Mitsui Trust November 1,
2018
Bank,
LimitedShinseiNovember 1,
Bank,
2018
Limited
MUFGApril 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
January 12,
2022
Bank, Ltd.
Sumitomo
Mitsui Trust January 12,
2022
Bank,
LimitedShinsei
January 12,
Bank,
2022
LimitedSumitomo
MitsuiJanuary 12,
2022
Banking
Corporation
MizuhoMarch 25,
2022
Bank, Ltd.
ResonaBank,
LimitedMarch 25,
2022

(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.

－ 40

－

(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

7,000,000

Over 1 year andwithin 2 years
20,000,000

Over 2 years but
within 3 years

Over 3 years but
within 4 years

Over 4 years but
within 5 years

11,000,000

8,500,000

14,000,000

－ 41

－

Over 5 years
17,300,000