MIRAI : (REIT) Financial Report for the Fiscal Period ended April 30, 2022 (The 12th Period)

MIRAI Corporation

AM Company: Mitsui Bussan & IDERA Partners Co., Ltd.

Security Code: 3476 https://3476.jp/en

12th Fiscal Period Investor Presentation

Fiscal Period Ended April 30, 2022 (12th FP) November 1, 2021 to April 30, 2022

Table of Contents	1
Section 1.	Operational Highlight	・・・・・ P2
Section 2. MIRAI Mid-Term Management Plan 2025
	"Smart Defense/Offense with Aligned Interest"	・・・・・ P20
Section 3.	External Growth Strategy/Market Trends	・・・・・ P26
Section 4.	Portfolio Management	・・・・・ P30
Section 5.	Finance & ESG Initiatives	・・・・・ P37

1

2

Section 1.

Operational Highlight

Operational Highlight
Executive Summary	3

Mid-term Management Plan 2025 "Smart Defense & Offense with Aligned Interest"

Results	Next Action

DPU

External

Growth

Portfolio

Management

Finance

ESG

Result for 12th FP

1,267yen

AUM

163.9

billion yen

Occupancy Rate

98.1%

Rating by JCR

A+(stable)

Percentage of environmental certification

74.4%

• 7 yen(+0.6%) compared with the forecast
• Controlled PO dilution with result in line with expectation
• Acquired 4 "Defensive" assets for 10.6 billion yen
• Portfolio control: Hotel disposition
• Tokyo Front Terrace: Firmly maintaining occupancy rate
• BizMiiX Yodoyabashi/Mi-Nara: Steady improvement
• First PO in 2 years/First green finance
• LTV (based on total assets): 48.8% (end of 12thFP)
• First GRESB 2 star/Green star
• Ongoing social contributions (providing our asset as a recovery accommodation facility for people with COVID-19, etc.)

• "Smart Defense": DPU 1,300 yen level (assumes no hotel variable rent)
• "Offense with Aligned Interest": New DPU target to be set after 2023
• Mid-termManagement Plan target: 200 billion yen
• Aiming to acquire assets with defensiveness for "Smart Defense" and growth potential for "Offense with Aligned Interest"
• Occupancy rates in large-scale offices are recovering due to appropriate measures
• Anticipate recovery of hotel variable rents as an internal growth driver
• Limited impact of rising interest rate (only 7 billion yen refinancing during the year)
• Steady expansion of foreign investors due to index inclusion effect
• Improvement of GRESB evaluation (target), TCFD and ESG report disclosure to start
• Continue to consider switching to renewable energy while monitoring cost balance

Note: The Figures are as of April 30, 2022 except for the AUM figure. AUM is as of May 31, 2022 (after disposition of Comfort Hotel Nagano).

3

Operational Highlight

Distributions per Unit (DPU)	4
Maintain DPU of 1,285 yen through meticulous portfolio management

(yen)

1,400

1,300

decrease increase

• Providing Naha hotel as a recovery accommodation facility for patients with COVID-19 (+22)
• Income from restoration of a large- scale office/reduction in outsourcing service expenses, etc. (+25)

• Full-periodcontribution from assets acquired in 12th FP (+54)
• Non-operatingexpenses (reduction of PO expense etc.) (+8)

• Step up rent of assets acquired in 12th FP (Ginan/Daikokucho) (+14)
• Rent recovery of Office/BizMiiX/ Mi-Nara (+24)

1,200

1,100

62

71

71

54

44

48

1,260

1,267

1,285

1,285

◼

BizMiiX Yodoyabashi & Mi-Nara

◼

Increase in property and other tax

◼

End of Providing Naha hotel as a

(Asset acquired in 2021, etc.) (-17)

delayed progress (-32)

recovery accommodation facility for

◼ Increase in net utilities expense

◼

Increase in general and

patients with COVID-19(-56)

administrative expenses (increased

(-10)

◼

Increase in depreciation, etc. (-14)

AUM) (-20)

12th FP

12th FP

13th FP

14th FP

(forecast)

(actual)

(forecast)(Note)

(forecast)(Note)

Occupancy rate

Occupancy rate

Occupancy rate

98.1%

98.7%

98.9%

Note: This forecast is calculated based on certain assumptions as of June 14, 2022 and subject to change due to conditions such as change in rent income thorough tenant turnovers, acquisition and disposition of assets, and additional unit issuance. The forecast should not be construed as	4
guarantee of DPU. The same applies hereinafter.