Industrial & Infrastructure Fund Investment : Financial Statements for the 35th Accounting Period (August 1, 2024 - January 31, 2025)

Financial Statements

Of

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

As of January 31, 2025

Industrial & Infrastructure Fund Investment Corporation (IIF) invests in social infrastructure as a source of power for the Japanese economy and supports Japan's industrial activities from the perspective of real estate.

Industrial & Infrastructure Fund Investment Corporation (IIF) was listed on the REIT securities market of the Tokyo Stock Exchange (securities code: 3249) in October 2007 as the only J-REITspecializing in industrial properties.

IIF aims to continuously expand unitholder valueby securing a stable profitand achieving steady growth of the properties under management. It aims to achieve this by investing in logistics facilities, manufacturing and research and development (R&D) facilities, and infrastructure facilities which play a vital role in various industrial activities and are expected to be utilized stably in the medium and long term (hereinafter collectively referred to as "industrial properties").

KJR Management

IIF has signed an asset management agreement with KJR Management (hereinafter referred to as the "Asset Manager") and consigned the asset management business based on its articles of incorporation and investment policy.

The Asset Manager manages IIF's portfolio with the aim of securing a stable profit and achieving steady growth of the properties under management in the medium and long term.

Highlight of the 35th Period

* The figures include distribution in excess of profit.

Greetings

I would like to take this opportunity to express my sincere gratitude to all investors for your ongoing support.

This report provides an update on IIF's performance for the fiscal period ended January 31, 2025 (the 35th period). In the fiscal period, IIF acquired IIF Shimonoseki Vehicle Maintenance Center, IIF Hyogosanda Logistics Center II and 20.0% of the total equity interest in Tokumei Kumiai

that has collateralized underlying assets for real estate trust beneficiary rights set in one property. In addition, IIF disposed IIF Totsuka Technology Center (land with leasehold interest) (35% co-ownership interest). As a result, the number of properties under management at the end of the period was 110, and the asset under management was 507.6 billion yen (based on acquisition price).

IIF has been able to re-sign expiring tenants with an increase in rent, and to increase rents within the term of the contract through continued careful management of tenants with expiring contracts. In addition, IIF has steadily implemented internal growth strategies such as facility usage fees from tenants in conjunction with the introduction of measures to reduce environmental impact (installation of solar power generation systems, conversion to LEDs, air conditioning upgrades, etc.). In addition, as one of the measures to enhance unitholder value, IIF has disposed and will dispose properties recording a cumulative gain of approximately 7.7 billion yen from the 30th to the 36th fiscal period. In the future, IIF intend to continue to return gains on sale to unitholders without retaining them.

IIF will continue to strive for stable management and work to maximize unitholder value through sustainable growth of internal growth, realization of unrealized gains external growth. I would like to look forward to your continuous support.

Kumi Honda

Executive Director

Industrial & Infrastructure Fund Investment Corporation

Growth Strategy

Distribution per unit for the fiscal year ended January 31, 2025 will reach a record high, continuing from the previous fiscal year

In January 2025/35th fiscal period, distributions per unit reached a record high of 3,524 yen due to the contribution of newly acquired properties and a reduction in leasing business expenses at existing properties.

For the fiscal period ending July 31, 2025/ the 36th fiscal period, although new acquisitions and redevelopment properties will contribute to earnings, fixed city tax expenses on newly acquired properties and interest expenses due to the increase in interest rates are expected to increase. As a result, we forecast a distribution of 3,450 yen per unit for the 36th fiscal period. For the fiscal period ending January 31, 2026/ the 37th fiscal period, we forecast a distribution of 3,210 yen per unit due to the stripping of gain on the sale of IIF Totsuka Technology Center (land with leasehold interest) and the full-year contribution from the expense of the fixed city tax on the newly acquired property.

Furthermore, we have now set a new distribution growth target per unit. Going forward, we will strongly promote internal growth and aim to reach 3,400 yen of distribution per unit (excluding gain on sales) through growth at an annual rate of 3.0% or more from the fiscal period ending January 31, 2026. In addition, we aim to further raise the level of distributions by 200 to 400 yen in each fiscal period as a continuous return of gains on sales, to reach a distribution per unit (including profit on sales) of 3,600 to 3,800 yen in the fiscal period ending January 31, 2028.

Toward improving the unit price level,

Future growth strategy with a strong focus on improving distribution per unit

*1 CRE carve-out proposal activities are proposal activities aimed at capturing the needs of Japanese companies to slim down their balance sheets by selling real estate such as logistics, factories, R&D facilities, and infrastructure facilities that they have owned, and IIF acquires such real estate mainly through sale-and-leaseback transactions in collaboration with KKR Group, etc. as part of their CRE strategy.

*2 The future business performance, plans and estimates, management targets and strategies described in this material are based on current assumptions and premises concerning future events and trends in the business environment. Therefore, there is no guarantee that they will be realized at this time, and actual results may differ due to a variety of factors. The same applies hereafter.

Financial Initiatives of IIF

Manage borrowing costs through flexible financial measures while maintaining a focus on long-term fixed-rate loans.

IIF's Sustainability Management

Environmental Quantitative analysis of TCFD and disclosure on our website

IIF assesses the financial impact on the entire portfolio based on climate change-related scenarios, with 2030 as the medium term and 2050 as the long term. Based on the assessment results, IIF's efforts and measures to respond to potential risks and opportunities are as described below.

https://iif-reit_sustainability.disclosure.site/en/themes/80/

Social The 3rd Social Bond

IIF issued 2.5 billion yen (5 years / interest rate: 0.959% per annum) for the partial early repayment of the loan raised in connection with the acquisition of IIF Ota Manufacturing Center.

Governance Governance system and the holding of General Meeting of Unitholders and Board of Directors

IIF is operated by a Board of Directors meeting consisting of one executive director and three supervisory directors. Certain matters concerning IIF are decided at the General Meeting of Unitholders (convened at a certain time once every two years), which comprises the unitholders. In addition, the Board of Directors meeting is held during the fiscal period as indicated below to fully discuss the status of legal compliance and the internal control system.

Financial Statements

Of

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

As of January 31, 2025

With Independent Auditor's Report