MIRAI : (Delayed)(REIT)Financial Report for the Fiscal Period ended October 31, 2021

(REIT) Financial Report for the Fiscal Period ended October 31, 2021

(The 11th Period)

													December 13, 2021
Name of REIT issuer:	MIRAI Corporation				Stock exchange listing: Tokyo Stock Exchange
Security code:		3476								URL:https://3476.jp/en/
Representative:		Michio Suganuma, Executive Director
Name of asset manager:	Mitsui Bussan & IDERA Partners Co., Ltd.
Representative:		Michio Suganuma, Representative Director, President
Contact:		Nobuaki Takuchi, Director, CFO
		TEL: [phone]
Scheduled date for submission of securities report:		January 28, 2022
Scheduled date for commencing dividend payments:	January 14, 2022
IR Material:	Will be posted on the website
IR Meeting:	Will be held for institutional investors and securities analysts
										(Figures are rounded down to the nearest million yen)
1. Performance for the Fiscal Period ended October 2021 (The 11th period from May 1, 2021 to October 31, 2021)
(1) Operating Results									(% represents change from the previous period)
	Operating Revenue			Operating Profit		Ordinary Profit	Net profit
Period ended	Million yen	%		Million yen		%			Million yen		%	Million yen		%
Oct. 31, 2021	5,113	2.8			2,397		3.3			2,144		3.4	2,143		3.4
Apr. 30, 2021	4,973	(7.3)			2,321		(11.5)			2,073		(12.8)	2,072		(12.8)
	Net Profit per Unit	Net Profit to Net Assets			Ordinary Profit to	Ordinary Profit to
		Total Assets		Operating Revenue
Period ended		Yen					%					%			%
Oct. 31, 2021		1,289					2.8					1.3			41.9
Apr. 30, 2021		1,246					2.8					1.3			41.7

(Note) Net Profit per Unit is calculated by dividing the net income by the day-weighted average number of investment units. (Fiscal period ended April 30, 2021 = 1,662,240 units, Fiscal period ended October 31, 2021 = 1,662,240 units)

(2) Distributions

	Distributions	Total	Distributions	Total	Distributions	Total
	per Unit	Distributions	per Unit	Distributions		Distributions
	(excluding	(excluding	in excess of	Distributions	(including	(including	Payout Ratio
	earnings per	in excess of	to Net Assets
	distributions in	distributions in	distributions in	distributions in
	excess of	excess of	Unit	earnings	excess of	excess of
	earnings)	earnings)			earnings)	earnings)
Period ended	Yen	Million yen	Yen	Million yen	Yen	Million yen	%	%
Oct. 31, 2021	1,289	2,142	-	-	1,289	2,142	100.0	2.8
Apr. 30, 2021	1,238	2,057	9	14	1,247	2,072	99.3	2.7

(Note 1) Distributions in excess of earnings per unit amounted 9 yen for the Fiscal Period ended April 30, 2021 is made from the allowance for temporary difference adjustment. There is no distribution by decreasing unitholders' capital on taxation.

(Note 2) Total Distributions (including distributions in excess of earning) for the Fiscal Period ended April 30, 2021 is composed of distributions of net assets deducting unitholders' capital (excluding distributions in excess of earnings) at period-end and distributions of the allowance for temporary difference adjustment (distributions in excess of earning) as changes in deferred losses on hedges during the period.

(Note 3) Payout Ratio = Total Distributions (excluding distributions in excess of earnings) / Net Profit * 100

Payout Ratio for the Fiscal Period ended April 30, 2021 is 100.0% using the Total Distributions (including distributions in excess of earnings).

(Note 4) Distributions to Net Assets are calculated based on Total Distributions (excluding distributions in excess of earnings).

(3) Financial Position

	Total Asset	Net Asset	Net Assets to Total Assets	Net Assets per Unit
Period ended	Million yen	Million yen	%	Yen
Oct. 31, 2021	161,226	75,308	46.7	45,305
Apr. 30, 2021	161,815	75,110	46.4	45,186

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(4) Cash Flows

				Cash and Cash
	Operating Activities	Investing Activities	Financing Activities	Equivalents at End of
				Period
Period ended	Million yen	Million yen	Million yen	Million yen
Oct. 31, 2021	2,391	(876)	(2,097)	4,691
Apr. 30, 2021	9,273	(10,096)	625	5,274

2. Forecasts for the Fiscal Period ending April 2022 (The 12th Period from November 1, 2021 to April 30, 2022) and ending October 2022 (The 13th Period from May 1, 2022 to October 31, 2022)

(% represents change from the previous period)

										Distributions per	Distributions in
										Unit (excluding
	Operating Revenue	Operating Profit	Ordinary Profit	Net Profit		excess of earnings
		Distributions in excess
										of earnings)	per Unit
Period ending	Million	%	Million	%	Million	%	Million		%	Yen	Yen
	yen		yen		yen		yen
Apr. 30, 2022	5,178	1.3	2,539	5.9	2,233	4.2	2,232		4.2	1,260	-
Oct. 31, 2022	5,366	3.6	2,564	1.0	2,276	1.9	2,275		1.9	1,285	-

(Reference) Forecasted Net Profit per Unit (Forecasted Net Profit / Forecasted Unit at end of period)

The Fiscal Period ending April 2022:
Forecasted Unit at end of period 1,771,440 units	Forecasted Net Profit per Unit 1,260 yen
The Fiscal Period ending October 2022:
Forecasted Unit at end of period 1,771,440 units	Forecasted Net Profit per Unit 1,284 yen

Others

1. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements due to corrections of errors

(i)	Changes in accounting policies due to revisions to accounting standards	Yes
(ii)	Changes in accounting policies other than (i)	None
(iii) Changes in accounting estimates	None
(iv) Restatement of prior period financial statements due to corrections of errors	None

(2) Number of investment units issued and outstanding

(i) Number of investment units (including treasury units) issued and outstanding at the end of each period

As of Oct. 31, 2021:	1,662,240 units As of Apr. 30, 2021:	1,662,240 units
(ii) Number of treasury units issued and outstanding at end of period
As of Oct. 31, 2021:	0 unit As of Apr. 30, 2021:	0 unit

• Financial Report is not subject to audit by certified public accountants or audit corporations.
• Explanation on the appropriate use of forecasts and other notes

(Note to forward-looking statements)

This document contains forecasts and other forward-looking statements based on the information currently available and on certain assumptions judged as rational by MIRAI Corporation (hereinafter "MIRAI"), and the actual operating results and so on may differ significantly from that anticipated by MIRAI due to various factors. Moreover, the forecasts are not intended to guarantee any amount of dividend distribution and distribution in excess of earnings. For notes regarding assumptions underlying these forecasts, please refer to "Assumptions Underlying Forecasts for the Fiscal Periods Ending April 30, 2022 and October 31, 2022." on page 3.

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Assumptions Underlying Forecasts for the Fiscal Periods Ending April 30, 2022 and October 31, 2021

Item		Assumptions
Calculation period	・	The Fiscal Period Ending April 2022: November 1, 2021 to April 30, 2022 (181 days)
・	The Fiscal Period Ending October 2022: May 1, 2022 to October 31, 2022 (184 days)
	・	In addition to the real estate trust beneficiaries that MIRAI owns (total 34, hereinafter the "Portfolio assets"), it assumes
		that MIRAI will acquire "Ehime Building/Hiroshima", "Tsurumi Fuga 1" and "BIGMOTOR Ginan (land)" on January
		12, 2022 and "Yokohama-Daikokucho Maintenance Center (land)" on March 25, 2022 (together the "Assets to be
		Acquired"). For details of the acquisition, please refer to "Notice Concerning Acquisition of Real Estate Trust
Portfolio assets		Beneficiaries in Japan ("Ehime Building/Hiroshima", "Tsurumi Fuga 1", "BIGMOTOR Ginan (land)" and
		"Yokohama-Daikokucho Maintenance Center (land)")" announced today.
	・	It assumes that there is no movement of the "Portfolio assets" (acquisition of new assets and/or dispositions of assets)
		other than the above "Assets to be Acquired".
	・	Changes may occur in reality due to changes in the "Portfolio assets".
	・	It is assumed that total number of investment units outstanding is 1,771,440 units which is comprised of 1,662,240
		units outstanding as of today and 104,000 new units to be issued through public offering and 5,200 units through third-
Total number of		party allotment resolved at the Board of Directors meeting held today.
investment units	・	The number of new investment units to be issued through third-party allotment is assumed as 5,200 units which is the
issued		maximum units to be issued.
	・	Other than described above, no changes in the number of investment units due to any issuances of new units are
		assumed until October 31, 2022.
	・	Of the interest-bearing debt of 78,700 million yen, there is no interest-bearing debt that matures during fiscal periods
		ending April 2022 October 2022.
Interest-bearing debt	・	The interest-bearing debt outstanding as of April 30, 2022 and October 31, 2022 is expected to be 84,000 million yen.
・	The LTV (based on total assets) as of April 30, 2022 and October 31, 2022 is expected to be approximately mid 48%.
	・	The calculation of the LTV (based on total assets) uses the following formula.
		LTV (based on total assets) (%) = total amount of interest-bearing debt outstanding / total assets
	・	Lease business revenue from the "Portfolio assets" is calculated primarily by taking into account leasing contracts
		effective as of today, trends in the real estate leasing market (vacancy rates, rent levels, etc.) and status of negotiation
		with tenants. Revenue from the lease of the Acquisition is calculated primarily by taking into account information on
		trends in lease contracts provided by the previous owner, etc., leasing contracts to be effective as of the scheduled date
Operating revenue		of acquisition of the Acquisition, and trends in the real estate leasing market (vacancy rates, rent levels, etc.).
	・	It is assumed that hotels with variable rent ("Smile Hotel Naha City Resort", "Smile Hotel Hakataeki-mae" and "Smile
		Hotel Nagoya-Sakae") will not incur variable rent until the end of October 2022, excluding the period during which
		"Smile Hotel Naha City Resort" is provided as a recovery accommodation facility for patients with minor illnesses of
		COVID-19 (contract period: October 11, 2021 to March 31, 2022 (scheduled)).
	・	Expenses for the lease business other than depreciation are based on past records and information provided by the
		previous owners, etc. while reflecting other variable factors into consideration.
	・	In principle, the fixed asset tax, city planning tax, and depreciation asset tax (the "Fixed Asset and City Planning
		Taxes") of "Asset to be Acquired" during a fiscal year will be settled on the acquisition date with previous owners in
		proportion to holding period for the assets. Such costs are to be capitalized without having any impact to profit and/or
		loss in the fiscal period of the acquisition. The total amount of the capitalized Fixed Asset and City Planning Taxes on
		the Assets to be Acquired is estimated to be 49 million yen.
	・	Total repair expenses for buildings are calculated based on the repair plans developed by Mitsui Bussan & IDERA
		Partners Co., Ltd., the asset manager of MIRAI and takes into account the engineering reports and appraisal reports,
		and are accrued in each fiscal period. It should be noted, however, that the actual repair expenses in each fiscal period
		may differ considerably from the estimates, mainly due to urgent repair expenses for any damages of assets arising
		from unexpected factors, significant yearly fluctuations in the amount of repair expenses and the nature of repair
Operating expense		expenses whereby they do not arise on a regular basis.
・	Depreciation including incidental expenses is calculated using the straight-line method.
	・	The breakdown of expenses for the lease business is as follows.
		The Fiscal Period Ending	The Fiscal Period Ending
		April 30, 2022	October 31, 2022
		Outsourcing services:	392 million yen	386 million yen
		Utilities expenses:	356 million yen	470 million yen
		Taxes and dues:	390 million yen	423 million yen
		Repair expenses:	67 million yen	64 million yen
		Other expenses for leasing business:	263 million yen	237 million yen
		Depreciation:	635 million yen	660 million yen
	・	Other operating expenses (asset management fees, administrative servicing fees, etc.) are estimated to be 531 million
		yen for the fiscal period ending April 30, 2022, and 514 million yen for the fiscal period ending October 31, 2022.
	・	Interest expenses and borrowing-related expenses are estimated to be 278 million yen for the fiscal period ending April
Non-operating		30, 2022, and 288 million yen for the fiscal period ending October 31, 2022.
expenses	・	One-off expenses of 27 million yen for the issuance of new investment units that was resolved at the Board of Directors
		meeting held on December 13, 2021 are expected for the fiscal period ending April 30, 2022.
	・	Distributions per unit (excluding distributions in excess of earnings) are calculated based on the cash distribution policy
		described in the Articles of Incorporation of MIRAI.
	・	The amount of distributions per unit (excluding distributions in excess of earnings) may fluctuate due to various factors
Distributions per unit		such as acquisitions and sales of assets, changes in rent income caused by tenant relocations, unexpected repairs
(Excluding		incurred, and interest rate fluctuations.
distributions in excess	・	Derivatives transactions (interest rate swaps transaction) will be continuously in place during the fiscal periods ending
of earnings)		April 30, 2022 and October 31, 2022. It is estimated that deferred losses on hedges as deduction from net assets (as
		specified in Item 30-B, Clause 2, Article 2 of the Calculation Rules for Investment Corporations) is 352 million yen
		which is the same amount as the fiscal period ended October 31, 2021. It is calculated based on the assumption that
		there is no change in the market value of interest rate swaps.

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Item		Assumptions
Distributions in	・	As described above, no change in the amount of deferred losses on hedges as deduction from net assets is assumed in
	the fiscal period ending April 30, 2022 and October 31, 2022, and distributions in excess of earnings related to the
excess of earnings per
	allowance for temporary difference adjustment are not scheduled at present.
unit
・	Distributions in excess of earnings by decreasing unitholders' capital under taxation are not scheduled at present.
	・	Excluding above, it is assumed that impact of spread of COVID-19 will not be significantly wider than current estimate
		and that the epidemic will not last longer. In reality, potential for the impact of spread of COVID-19 continuing to
		expand and becoming prolonged cannot be ruled out.
Others	・	The forecasts assume that no revisions that may impact the above projections will be made to laws and regulations,
		taxation, accounting standards, listing rules, the rules of the Investment Trust Association, Japan, or others.
	・	The forecasts assume no unforeseeable significant changes in the general economic trends and real estate market
		conditions.

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3. Financial Statements

(1) Balance Sheet

		(Thousands of yen)
	As of April 30, 2021	As of October 31, 2021
Assets
Current assets
Cash and deposits	3,379,883	2,542,119
Cash and deposits in trust	2,076,752	2,331,887
Operating accounts receivable	117,198	227,272
Prepaid expenses	133,358	131,784
Consumption taxes receivable	-	57,176
Other	113	28
Total current assets	5,707,305	5,290,266
Non-current assets
Property, plant and equipment
Buildings	424,386	436,737
Accumulated depreciation	(3,960)	(10,017)
Buildings, net	420,425	426,720
Structures	564	564
Accumulated depreciation	(62)	(157)
Structures, net	502	407
Land	4,230,785	4,230,785
Buildings in trust	34,669,961	35,077,401
Accumulated depreciation	(3,966,358)	(4,536,603)
Buildings in trust, net	30,703,602	30,540,797
Structures in trust	318,733	318,733
Accumulated depreciation	(61,460)	(68,533)
Structures in trust, net	257,272	250,199
Machinery and equipment in trust	188,940	207,051
Accumulated depreciation	(54,162)	(62,426)
Machinery and equipment in trust, net	134,777	144,625
Tools, furniture and fixtures in trust	217,106	218,425
Accumulated depreciation	(29,655)	(46,316)
Tools, furniture and fixtures in trust, net	187,451	172,109
Land in trust	119,722,380	119,722,380
Construction in progress in trust	27,345	54,691
Total property, plant and equipment	155,684,544	155,542,717
Intangible assets
Software	16,851	18,640
Other	231	231
Total intangible assets	17,083	18,872
Investments and other assets
Long-term prepaid expenses	318,508	263,995
Deferred tax assets	7	23
Guarantee deposits	11,006	11,006
Other	56,134	56,134
Total investments and other assets	385,656	331,159
Total non-current assets	156,087,284	155,892,749
Deferred assets
Investment corporation bond issuance costs	20,637	43,500
Total deferred assets	20,637	43,500
Total assets	161,815,227	161,226,516

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