Industrial & Infrastructure Fund Investment : 32nd Fiscal Period Results (February 1, 2023 ~ July 31, 2023)

(Thousands of yen)

January 31, 2023

July 31, 2023

ASSETS

Current assets:

Cash and bank deposits

35,896,549

35,313,041

Cash and bank deposits in trust

6,127,572

6,055,811

Rental receivables

460,730

962,812

Prepaid expenses

854,422

1,922,130

Income taxes receivable

-

8

Consumption taxes refundable

231,481

-

Other

1,180

6,503

Total current assets

43,571,937

44,260,307

Noncurrent assets:

Property, plant and equipment:

Buildings, at cost

35,340,238

35,561,297

Less: Accumulated depreciation

(10,049,081)

(10,486,104)

Buildings, net

25,291,156

25,075,192

Structures, at cost

119,103

123,482

Less: Accumulated depreciation

(59,818)

(64,089)

Structures, net

59,284

59,393

Machinery and equipment, at cost

11,892

11,892

Less: Accumulated depreciation

(11,892)

(11,892)

Machinery and equipment, net

0

0

Tools, furniture and fixtures, at cost

26,719

26,719

Less: Accumulated depreciation

(14,387)

(15,614)

Tools, furniture and fixtures, net

12,331

11,104

Land

20,391,344

20,391,344

Construction in progress

1,896,652

2,105,502

Buildings in trust, at cost

107,188,558

111,123,286

Less: Accumulated depreciation

(19,578,286)

(20,917,421)

Buildings in trust, net

87,610,271

90,205,864

Structures in trust, at cost

Less: Accumulated depreciation

(630,733)

(685,227)

Structures in trust, net

748,832

799,968

Machinery and equipment in trust, at cost

132,642

132,642

Less: Accumulated depreciation

(69,927)

(77,135)

Machinery and equipment in trust, net

62,714

55,506

Tools, furniture and fixtures in trust, at cost

281,689

330,782

Less: Accumulated depreciation

(63,673)

(83,987)

Tools, furniture and fixtures in trust, net

218,016

246,795

Land in trust

221,334,622

228,823,627

Construction in progress in trust

8,760

9,830

Total net property, plant and equipment

357,633,987

367,784,130

Intangible assets:

Leasehold right

19,833,966

19,833,966

Other

3,257

2,027

Total intangible assets

19,837,223

19,835,993

Investments and other assets:

Investment in affiliates

-

356,826

Investment securities

83,335

-

Lease and guarantee deposits

10,200

10,200

Long-term prepaid expenses

1,098,664

1,034,723

Other

10,293

5,515

Total investments and other assets

1,202,493

1,407,264

Total noncurrent assets

378,673,704

389,027,389

Deferred assets:

Investment unit issuance costs

13,887

42,461

Investment corporation bonds issuance costs

85,918

79,321

Total deferred assets

99,806

121,783

TOTAL ASSETS

422,345,447

433,409,480

(Thousands of yen)

January 31, 2023

July 31, 2023

LIABILITIES

Current liabilities:

Operating accounts payable

1,863,179

1,386,496

Short-term loans payable

3,700,000

5,000,000

Current portion of investment corporation bonds - unsecured

-

2,000,000

Current portion of long-term loans payable

21,100,000

19,000,000

Accounts payable - other

764,375

840,410

Accrued expenses

148,510

138,329

Income taxes payable

1,513

615

Consumption taxes payable

-

295,472

Advances received

2,941,995

3,420,346

Other

707,687

231,089

Total current liabilities

31,227,262

32,312,760

Noncurrent liabilities:

Investment corporation bonds - unsecured

14,700,000

12,700,000

Long-term loans payable

168,783,000

173,583,000

Tenant leasehold and security deposits

2,630,414

2,640,473

Tenant leasehold and security deposits in trust

15,230,464

15,640,423

Asset retirement obligations

865,966

839,807

Other

3,069

2,428

Total noncurrent liabilities

202,212,914

205,406,132

TOTAL LIABILITIES

233,440,176

237,718,893

NET ASSTES

Unitholders' equity:

Unitholders' capital

183,865,203

189,683,850

Capital deduction:

Allowance for temporary difference adjustment

(283,073)

(781,924)

Other deduction of unitholders' capital

(641,451)

(641,451)

Total capital deduction

Unitholders' capital, net

182,940,679

188,260,474

Surplus:

Retained earnings

5,973,223

7,428,646

Total surplus

5,973,223

7,428,646

Total unitholders' equity

188,913,902

195,689,121

Valuation and translation adjustments:

Deferred gains or (losses) on hedges

(8,631)

1,465

Total valuation and translation adjustments

(8,631)

1,465

TOTAL NET ASSETS

188,905,271

195,690,586

TOTAL LIABILITIES AND NET ASSETS

422,345,447

433,409,480

(Thousands of yen)

For the six months ended

January 31, 2023

July 31, 2023

Operating revenue

Rent revenue－real estate

16,492,989

16,986,729

Gain on sales of property

1,450,116

861,327

Dividend income from investments in Tokumei Kumiai

1,419

5

Total operating revenue

17,944,524

17,848,062

Operating expenses

Expenses related to property rental business

9,517,666

8,008,188

Asset management fees

1,276,422

1,284,797

Directors' compensations

7,440

7,440

Asset custody fees

9,463

9,585

Administrative service fees

40,433

39,199

Other

153,541

143,893

Total operating expenses

11,004,967

9,493,104

Operating income

6,939,556

8,354,958

Non-operating income

Interest income

192

208

Interest on refund

-

717

Reversal of distribution payable

419

504

Compensation income

16,201

-

Total non-operating income

16,813

1,430

Non-operating expenses

Interest expenses

674,378

652,746

Interest expenses on investment corporation bonds

63,163

42,106

Amortization of investment corporation bonds issuance costs

6,456

6,597

Borrowing related expenses

217,652

211,228

Amortization of investment unit issuance costs

29,913

20,736

Other

21,993

3,172

Total non-operating expenses

Ordinary income

5,942,812

7,419,800

Income before income taxes

5,942,812

7,419,800

Income taxes

Current

1,833

639

Total income taxes

1,833

639

Net income

5,940,979

7,419,161

Retained earnings brought forward

Unappropriated retained earnings

5,973,223

7,428,646

(Thousands of yen)

For the six months ended

January 31, 2023

July 31, 2023

Net cash provided by (used in) operating activities:

Income before income taxes

5,942,812

7,419,800

Depreciation and amortization

2,758,107

1,709,572

Amortization of investment corporation bonds issuance costs

6,456

6,597

Amortization of investment unit issuance costs

29,913

20,736

Interest income

(192)

(208)

Interest expenses

737,542

694,852

Changes in assets and liabilities:

Decrease (increase) in operating accounts receivable

325,004

(502,082)

Decrease (increase) in consumption taxes refundable

(231,481)

231,481

Decrease (increase) in prepaid expenses

139,397

(1,067,707)

Decrease (increase) in long-term prepaid expenses

72,722

63,941

Increase (decrease) in operating accounts payable

(174,477)

(482,327)

Increase (decrease) in accounts payable - other

(7,852)

35,184

Increase (decrease) in accrued expenses

969

(1,257)

Increase (decrease) in consumption taxes payable

(582,697)

295,472

Increase (decrease) in advances received

(56,664)

478,350

Increase (decrease) in other noncurrent liabilities

(1,142)

(640)

Decrease from sales of property and equipment in trust

1,144,984

1,995,548

Other, net

(31,408)

(116,021)

Subtotal

Interest income received

192

208

Interest expenses paid

(726,407)

(703,776)

Income taxes paid

(1,255)

(1,546)

Net cash provided by operating activities

9,344,522

10,076,179

Net cash provided by (used in) investing activities:

Purchases of property, plant and equipment

(1,151,774)

(386,687)

Purchases of property, plant and equipment in trust

(6,436,561)

(13,793,903)

Proceeds from tenant leasehold and security deposits

1,051

10,058

Proceeds from tenant leasehold and security deposits in trust

129,412

501,498

Payments of tenant leasehold and security deposits in trust

(373,010)

(91,539)

Purchase of investment in affiliates

-

(356,826)

Proceeds from investment securities

-

81,818

Net cash used in investing activities

Net cash provided by (used in) financing activities:

Proceeds from short-term loans payable

2,000,000

3,000,000

Repayments of short-term loans payable

(1,700,000)

(1,700,000)

Proceeds from long-term loans payable

10,500,000

12,800,000

Repayments of long-term loans payable

(5,000,000)

(10,100,000)

Proceeds from issuance of investment corporation bonds

4,700,000

-

Redemption of investment corporation bonds

(5,000,000)

-

Payments of investment corporation bonds issuance costs

(35,496)

(2,800)

Proceeds from issuance of investment units

-

5,818,647

Payments of investment unit issuance costs

-

(49,310)

Dividends paid

(6,416,640)

(6,462,404)

Net cash provided by (used in) financing activities

(952,137)

3,304,132

Net change in cash and cash equivalents

561,502

(655,269)

Cash and cash equivalents at beginning of period

41,462,619

42,024,121

Cash and cash equivalents at end of period

42,024,121

41,368,852