Industrial & Infrastructure Fund Investment Corporation TSE:3249

Industrial & Infrastructure Fund Investment : Financial Statements for the 37th Accounting Period (August 1, 2025 - January 31, 2026)

Published April 23, 2026 at 8:21 a.m. UTC

Source: MarketScreener

Financial Statements Of INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

As of January 31, 2026

With Independent Auditor's Report

Independent Auditor's Report

The Board of Directors

Industrial & Infrastructure Fund Investment Corporation

The Audit of the Financial Statements Opinion

We have audited the accompanying financial statements of Industrial & Infrastructure Fund Investment Corporation (the Company), which comprise the balance sheet as at January 31, 2026, and the statements of income and retained earnings, changes in net assets, and cash flows for the six-month period then ended, and notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at January 31, 2026, and its financial performance and its cash flows for the six-month period then ended in accordance with accounting principles generally accepted in Japan.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Japan, including those applicable to audits of financial statements of public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

The other information comprises the information included in the Financial Statements that contains audited financial statements, but does not include the financial statements and our auditor's report thereon. Management is responsible for preparation and disclosure of the other information. The Supervisory Directors are responsible for overseeing the Company's reporting process of the other information.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and Supervisory Directors for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern and disclosing, as required by accounting principles generally accepted in Japan, matters related to going concern.

The Supervisory Directors are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances for our risk assessments, while the purpose of the audit of the financial statements is not expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation in accordance with accounting principles generally accepted in Japan.

We communicate with the Executive Director regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Executive Director with a statement that we have complied with the ethical requirements regarding independence that are relevant to our audit of the financial statements in Japan, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied to reduce threats to an acceptable level.

Convenience Translation

The U.S. dollar amounts in the accompanying financial statements with respect to the six-month period ended January 31, 2026 are presented solely for convenience. Our audit also included the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 2 to the financial statements.

Fee-related Information

The fees for the audits of the financial statements of Industrial & Infrastructure Fund Investment Corporation and its subsidiary and other services provided by us and other EY member firms for the six-month period ended January 31, 2026 are 18 million yen and 6 million yen, respectively.

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan

Our firm and its designated engagement partners do not have any interest in the Company which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Ernst & Young ShinNihon LLC Tokyo, Japan

April 22, 2026

Kazunori Takenouchi Designated Engagement Partner Certified Public Accountant

Tatsuhiko Ui

Designated Engagement Partner Certified Public Accountant

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION BALANCE SHEETS As of January 31, 2026

As of

July 31,

2025

January 31,

2026

January 31,

2026

(in thousands of

ASSETS

Current assets:

(in millions of yen)

U.S. dollars)

Cash and bank deposits (Note 3) ￥	15,788	￥	19,891	＄	129,450
Cash and bank deposits in trust (Note 3)...............................................................	9,672		8,591		55,914
Rental receivables......................................................................................................	1,689		1,690		11,003
Prepaid expenses.......................................................................................................	2,128		1,324		8,620
Income taxes receivable...........................................................................................	75		79		518
Consumption taxes refundable...............................................................................	-		66		432
Other............................................................................................................................	8		18		119
Total current assets............................................................................	29,363		31,663		206,059
Noncurrent assets:
Property, plant and equipment (Notes 4 and 6):
Buildings, at cost.......................................................................................................	36,998		36,539		237,797
Less: Accumulated depreciation........................................................................	(12,276)		(12,493)		(81,303)
Buildings, net........................................................................................................	24,722		24,046		156,493
Structures, at cost.....................................................................................................	129		124		811
Less: Accumulated depreciation........................................................................	(79)		(80)		(521)
Structures, net......................................................................................................	49		44		290
Machinery and equipment, at cost.........................................................................	2		17		110
Less: Accumulated depreciation........................................................................	(0)		(0)		(3)
Machinery and equipment, net..........................................................................	2		16		107
Tools, furniture and fixtures, at cost......................................................................	27		26		174
Less: Accumulated depreciation........................................................................	(19)		(20)		(130)
Tools, furniture and fixtures, net.......................................................................	7		6		43
Land.............................................................................................................................	20,343		17,373		113,061
Construction in progress..........................................................................................	17		12		82
Buildings in trust, at cost..........................................................................................	149,099		153,387		998,225
Less: Accumulated depreciation........................................................................	(27,538)		(28,995)		(188,701)
Buildings in trust, net..........................................................................................	121,561		124,391		809,524
Structures in trust, at cost........................................................................................	1,917		1,940		12,630
Less: Accumulated depreciation........................................................................	(936)		(1,006)		(6,553)
Structures in trust, net........................................................................................	980		933		6,077
Machinery and equipment in trust, at cost...........................................................	227		314		2,049
Less: Accumulated depreciation........................................................................	(117)		(133)		(868)
Machinery and equipment in trust, net............................................................	109		181		1,181
Tools, furniture and fixtures in trust, at cost........................................................	806		857		5,583
Less: Accumulated depreciation........................................................................	(216)		(269)		(1,750)
Tools, furniture and fixtures in trust, net.........................................................	589		588		3,832
Land in trust...............................................................................................................	315,945		326,354		2,123,873
Construction in progress in trust............................................................................	37		20		136
Total net property, plant and equipment...........................................	484,366		493,971		3,214,705
Intangible assets (Notes 5 and 6):
Leasehold rights...................................................................................................	19,833		19,833		129,076
Other......................................................................................................................	0		0		1
Total intangible assets................................................................	19,834		19,834		129,078

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION BALANCE SHEETS As of January 31, 2026

As of

July 31, January 31, January 31,

2025 2026 2026

(in thousands of

(in millions of yen)

U.S. dollars)

Investments and other assets:

Shares of subsidiaries and associates..............................................................	356	356	2,322
Investment securities...........................................................................................	18,463	18,703	121,719
Lease and guarantee deposits...........................................................................	10	10	66
Long-term prepaid expenses..............................................................................	1,525	1,506	9,801
Other......................................................................................................................	4	4	26
Total investments and other assets..............................................	20,359	20,580	133,936
Total noncurrent assets.......................................................................	524,560	534,386	3,477,720
Deferred assets: Investment unit issuance costs...........................................................................	129	81	530
Investment corporation bonds issuance costs................................................	71	63	413
Total deferred assets...........................................................................	200	144	943
TOTAL ASSETS ￥	554,125	￥ 566,194	＄ 3,684,723

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION BALANCE SHEETS As of January 31, 2026

As of July 31, January 31, January 31,

LIABILITIES

Current liabilities:

2025 2026

(in millions of yen)

2026

(in thousands of U.S. dollars)

Operating accounts payable ￥	1,750	￥	1,579	＄	10,278
Short-term loans payable (Note 7).........................................................................	2,100		12,900		83,951
Current portion of investment corporation bonds - unsecured (Notes 8 and 18)..............................	-		3,000		19,523
Current portion of long-term loans payable (Notes 7 and 18)...........................	26,300		25,900		168,553
Accounts payable - other.........................................................................................	980		1,010		6,575
Accrued expenses......................................................................................................	225		255		1,660
Income taxes payable...............................................................................................	0		0		3
Consumption taxes payable....................................................................................	348		-		-
Advances received.....................................................................................................	3,970		2,645		17,214
Other............................................................................................................................	10		9		59
Total current liabilities........................................................................	35,687		47,299		307,821
Noncurrent liabilities:
Investment corporation bonds - unsecured (Notes 8 and 18)............................	15,200		12,200		79,396
Long-term loans payable (Notes 7 and 18)...........................................................	237,733		240,233		1,563,406
Tenant leasehold and security deposits.................................................................	2,678		2,660		17,317
Tenant leasehold and security deposits in trust...................................................	15,372		15,200		98,925
Asset retirement obligations (Note 20)...................................................................	983		985		6,416
Other............................................................................................................................	4		2		19
Total noncurrent liabilities..................................................................	271,971		271,283		1,765,480
TOTAL LIABILITIES...............................................................................	307,659		318,583		2,073,302
NET ASSETS (Note 9)
Unitholders' equity:
Unitholders' capital,
32,000,000 units authorized; 2,536,216 units as of July 31, 2025 and
2,528,461 units as of January 31, 2026 issued and outstanding....................	238,456		238,456		1,551,846
Total deduction from unitholders' capital............................................................	(1,292)		(1,822)		(11,860)
Allowance for temporary difference adjustment (Note 10)..........................	(650)		(181)		(1,179)
Other deduction of unitholders' capital...........................................................	(641)		(1,641)		(10,681)
Unitholders' capital, net...........................................................................................	237,164		236,634		1,539,985
Retained earnings......................................................................................................	9,297		10,975		71,424
Total unitholders' equity.....................................................................	246,461		247,609		1,611,409
Valuation and translation adjustments:
Deferred gains or (losses) on hedges.....................................................................	3		1		11
Total valuation and translation adjustments..........................................	3		1		11
TOTAL NET ASSETS..............................................................................	246,465		247,610		1,611,420
TOTAL LIABILITIES AND NET ASSETS ￥	554,125	￥	566,194	＄	3,684,723

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION STATEMENTS OF INCOME AND RETAINED EARNINGS

For the six months ended January 31, 2026

For the six months ended July 31, January 31, January 31,

2025 2026 2026

(in thousands of

(in millions of yen)

U.S. dollars)

Operating revenue
Rent revenue－real estate (Note 14) ￥		21,335	￥	20,463	＄	133,172
Gain on sales of property (Note 15)........................................................................		1,013		3,188		20,748
Dividend income from investments in Tokumei Kumiai ....................................		359		371		2,417
Total operating revenue..................................................................		22,708		24,023		156,338
Operating expenses
Expenses related to property rental business (Note 14)......................................	10,069		9,560		62,217
Asset management fees............................................................................................	1,608		1,654		10,766
Directors' compensations........................................................................................	7		7		48
Asset custody fees......................................................................................................	12		12		81
Administrative service fees.......................................................................................	54		53		350
Other...........................................................................................................................	256		245		1,600
Total operating expenses................................................................	12,009		11,534		75,064
Operating income...............................................................................	10,699		12,488		81,274
Non-operating income Interest income..........................................................................................................	16		36		240
Interest on refund......................................................................................................	0		0		0
Reversal of distribution payable.............................................................................	0		0		3
Gain on donation of non-current assets................................................................	42		4		30
Other...........................................................................................................................	0		0		0
Total non-operating income.............................................................	59		42		275
Non-operating expenses
Interest expenses.......................................................................................................	1,090		1,191		7,752
Interest expenses on investment corporation bonds...........................................	45		45		296
Amortization of investment corporation bonds issuance costs........................	7		7		48
Borrowing related expenses....................................................................................	266		267		1,738
Amortization of investment unit issuance costs...................................................	48		48		314
Other...........................................................................................................................	4		4		31
Total non-operating expenses..........................................................	1,462		1,564		10,181
Ordinary income.................................................................................	9,296		10,966		71,368
Income before income taxes.................................................................	9,296		10,966		71,368
Income taxes (Note 16):
Current...................................................................................................................		0		0		3
Total income taxes.....................................................................		0		0		3
Net income.........................................................................................		9,295		10,965		71,364
Retained earnings brought forward.......................................................		1		9		59
Unappropriated retained earnings (Note 11) ￥		9,297	￥	10,975	＄	71,424

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended January 31, 2026

Valuation and

Unitholders' equity translation adjustments

Unitholders' capital Deduction from unitholders'

capital

Allowance

Surplus

Total

Unitholders' capital

for temporary difference adjustment

Other deduction of unitholders' capital

Total capital deduction

Unitholders' capital, net

Retained earnings

Total surplus

Own investment units

Total unitholders' equity

Deferred gains or (losses) on hedges

valuation and translation adjustments

Total net assets

238,456	￥	(521)	￥	(641)	￥	(1,162)	￥	237,293	￥	8,809	￥	8,809	￥	-	￥	246,103	￥	6	￥	6	￥	246,109
-		-		-		-		-		(8,808)		(8,808)		-		(8,808)		-		-		(8,808)
-		(129)		-		(129)		(129)		-		-		-		(129)		-		-		(129)
-		-		-		-		-		9,295		9,295		-		9,295		-		-		9,295
-		-		-		-		-		-		-		-		-		(2)		(2)		(2)
-		(129)		-		(129)		(129)		487		487		-		357		(2)		(2)		355
238,456	￥	(650)	￥	(641)	￥	(1,292)	￥	237,164	￥	9,297	￥	9,297	￥	-	￥	246,461	￥	3	￥	3	￥	246,465
-		-		-		-		-		(8,818)		(8,818)		-		(8,818)		-		-		(8,818)
-		469		-		469		469		(469)		(469)		-		-		-		-		-
-		-		-		-		-		10,965		10,965		-		10,965		-		-		10,965
-		-		-		-		-		-		-		(999)		(999)		-		-		(999)
-		-		(999)		(999)		(999)		-		-		999		-		-		-		-
-		-		-		-		-		-		-		-		-		(2)		(2)		(2)
-		469		(999)		(530)		(530)		1,677		1,677		-		1,147		(2)		(2)		1,145
238,456	￥	(181)	￥	(1,641)	￥	(1,822)	￥	236,634	￥	10,975	￥	10,975	￥	-	￥	247,609	￥	1	￥	1	￥	247,610

(in millions of yen) Balance as of January 31, 2025 ￥

Changes during the period

Dividends from surplus....................................................

Dividend in excess of profit from

allowance for temporary difference adjustment......... Net income........................................................................

Net changes of items other than unitholders' equity.... Total changes during the period........................................

Balance as of July 31, 2025 ￥

Changes during the period

Dividends from surplus....................................................

Reversal of allowance for temporary difference adjustment.....................................................................

Net income........................................................................

Acquisition of own investment units..............................

Retirement of own investment units.............................. Net changes of items other than unitholders' equity....

Total changes during the period........................................

Balance as of January 31, 2026 ￥

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended January 31, 2026

Unitholders' equity

Unitholders' capital

Deduction from unitholders'

capital Surplus

Allowance

Valuation and translation adjustments

Total

Unitholders' capital

for temporary difference adjustment

Other deduction of unitholders' capital

Total capital deduction

Unitholders' capital, net

Retained earnings

Total surplus

Own investment units

Total unitholders' equity

Deferred gains or (losses) on hedges

valuation and translation adjustments

Total net assets

Balance as of July 31, 2025 ＄ 1,551,846	＄	(4,235)	＄	(4,174)	＄	(8,409)	＄ 1,543,436	＄	60,504	＄	60,504	＄	-	＄ 1,603,941	＄	26	＄	26	＄ 1,603,967
Changes during the period Dividends from surplus....................................................	-	-	-		-		-	(57,389)		(57,389)		-		(57,389)	-		-		(57,389)
Reversal of allowance for temporary difference adjustment.....................................................................	- 3,056		-		3,056		3,056	(3,056)		(3,056)		-		-	-		-		-
Net income........................................................................	- -		-		-		-	71,364		71,364		-		71,364	-		-		71,364
Acquisition of own investment units..............................	- -		-		-		-	-		-		(6,507)		(6,507)	-		-		(6,507)
Retirement of own investment units..............................	- -		(6,507)		(6,507)		(6,507)	-		-		6,507		-	-		-		-
Net changes of items other than unitholders' equity....	- -		-		-		-	-		-		-		-	(14)		(14)		(14)
Total changes during the period.......................................	- 3,056		(6,507)		(3,451)		(3,451)	10,919		10,919		-		7,468	(14)		(14)		7,453
Balance as of January 31, 2026 ＄ 1,551,846	＄	(1,179)	＄	(10,681)	＄	(11,860)	＄ 1,539,985	＄	71,424	＄	71,424	＄	-	＄ 1,611,409	＄	11	＄	11	＄ 1,611,420

(in thousands of U.S. dollars)

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION STATEMENTS OF CASH FLOWS

For the six months ended January 31, 2026

For the six months ended July 31, January 31, January 31,

2025 2026

(in millions of yen)

2026

(in thousands of U.S. dollars)

Net cash provided by (used in) operating activities: Income before income taxes ￥	9,296	￥	10,966	＄	71,368
Depreciation and amortization....................................................................	2,654		2,755		17,930
Gain on donation of non-current assets......................................................	(42)		(4)		(30)
Amortization of investment corporation bonds issuance costs..............	7		7		48
Amortization of investment unit issuance costs.........................................	48		48		314
Interest income................................................................................................	(16)		(36)		(240)
Interest expenses.............................................................................................. Changes in assets and liabilities:	1,135		1,236		8,049
Decrease (increase) in operating accounts receivable.............................	(348)		(1)	(11)
Decrease (increase) in consumption taxes refundable.............................	-		(66)	(432)
Decrease (increase) in prepaid expenses.....................................................	(859)		803	5,231
Decrease (increase) in long-term prepaid expenses..................................	84		19	126
Increase (decrease) in operating accounts payable..................................	(334)		189	1,235
Increase (decrease) in accounts payable - other.......................................	(2)		14	93
Increase (decrease) in accrued expenses....................................................	(0)		(0)	(1)
Increase (decrease) in consumption taxes payable...................................	(162)		(348)	(2,271)
Increase (decrease) in advances received...................................................	608		(1,325)	(8,627)
Increase (decrease) in other noncurrent liabilities....................................	4		(1)	(8)
Decrease from sales of property and equipment in trust.........................	1,593		7,978	51,921
Other, net................................................................................................................	125		6	39
Subtotal.......................................................................................................	13,790		22,240	144,735
Interest income received..........................................................................	16		25	162
Interest expenses paid...............................................................................	(1,121)		(1,207)	(7,858)
Income taxes paid.....................................................................................	12		(4)	(29)
Net cash provided by operating activities.......................................	12,697		21,053	137,011
Net cash provided by (used in) investing activities:
Payments into time deposits..........................................................................	-		(4,000)	(26,031)
Purchases of property, plant and equipment.............................................	(708)		(431)	(2,811)
Purchases of property, plant and equipment in trust...............................	(2,925)		(20,247)	(131,767)
Proceeds from tenant leasehold and security deposits............................	91		88	576
Payments of tenant leasehold and security deposits................................	(33)		(0)	(0)
Proceeds from tenant leasehold and security deposits in trust...............	3		4,799	31,231
Payments of tenant leasehold and security deposits in trust...................	(393)		(5,076)	(33,038)
Proceeds from lease and guarantee deposits in trust...............................	115		-	-
Proceeds from investment securities...........................................................	57		166	1,085
Purchase of investment in securities............................................................	(1,729)		(410)	(2,674)
Net cash used in investing activities.................................................	(5,522)		(25,112)	(163,430)
Net cash provided by (used in) financing activities:
Proceeds from short-term loans payable...................................................	400		17,900	116,490
Repayments of short-term loans payable...................................................	(4,900)		(7,100)	(46,205)
Proceeds from long-term loans payable.....................................................	16,150		14,200	92,411
Repayments of long-term loans payable....................................................	(12,600)		(12,100)	(78,745)
Payments for acquisition of own investment units....................................	-		(999)	(6,507)
Dividends paid..................................................................................................	(8,936)		(8,818)	(57,392)
Net cash provided by (used in) financing activities.......................	(9,886)		3,081	20,051
Net change in cash and cash equivalents........................................	(2,710)		(978)	(6,367)
Cash and cash equivalents at beginning of period............................	28,172		25,461	165,701
Cash and cash equivalents at end of period (Note 3)........................	￥ 25,461		￥ 24,483	＄ 159,333

The accompanying notes are an integral part of these financial statements.

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION NOTES TO FINANCIAL STATEMENTS

As of and for the six months ended January 31, 2026

Note 1 － Organization

Industrial & Infrastructure Fund Investment Corporation (the "Company"), a real estate investment corporation, with initial capital of ¥200 million, was incorporated on March 26, 2007, under the Act on Investment Trusts and Investment Corporations of Japan (the "Investment Trust Act"). The Company is externally managed by a registered asset management company, KJR Management (the "Asset Manager"). The Asset Manager is wholly owned by KJRM Holdings (formerly 76KK), an indirect subsidiary of KKR & Co. Inc.

The Company was formed to invest primarily in industrial and infrastructure properties in Japan. On October 17, 2007, the Company raised ¥35,112 million through an initial public offering of 76,000 investment units.

On October 19, 2007, the day after the Company was listed on the J-REIT section of the Tokyo Stock Exchange, the Company acquired nine properties which consist of eight logistics facilities (IIF Shinonome Logistics Center and others) and one infrastructure property (IIF Kobe District Heating and Cooling Center) for an aggregate purchase price of ¥66 billion by utilizing net proceeds from the initial public offering and loans payable from a bank syndicate, and operations of the Company commenced on this date. On November 19, 2007, the Company issued 2,635 investment units domestically in connection with the exercise of an over-allotment option, generating net proceeds of ¥1,217 million.

Subsequent to that, the Company acquired IIF Haneda Airport Maintenance Center for a purchase price of ¥41,110 million on February 29, 2008 in cash and through loans payable from a bank syndicate.

During the six months ended June 30, 2009, the Company issued a subordinated investment corporation bond in the amount of

¥8,000 million and sold IIF Musashi Murayama Logistics Center, which had ¥7,863 million in aggregate net book value as of December 31, 2008, to a third party for ¥8,040 million. Net proceeds were used to partially repay outstanding loans payable.

Subsequently, the Company sold IIF Funabashi Logistics Center to a third party for ¥9,020 million with the result of a gain on sales of property of ¥460 million and acquired two properties for an aggregate purchase price of ¥5,690 million during the six months ended June 30, 2010, and acquired one additional property for a purchase price of ¥1,100 million by utilizing internal cash during the six months ended December 31, 2010.

On March 8, 2011, the Company completed its second public offering of 14,200 investment units at a price of ¥405,945 per unit in connection with a Japanese Primary Offering. On March 24, 2011, the Company issued 397 investment units domestically in connection with the exercise of an over-allotment option. Net proceeds of ¥5.7 billion from the second offering were used to acquire five additional properties.

On August 31, 2011, the Company redeemed the subordinated investment corporation bond in advance of the due date from Mitsubishi Corporation at a price of ¥8,000 million (par value) by raising funds through new loans payable.

On March 5, 2012, the Company completed its third public offering of 44,762 investment units, out of which 22,381 new units were offered through a domestic public offering and 22,381 new units were offered through an overseas offering, at a price of ¥432,135 per unit. On March 26, 2012, the Company issued 2,238 investment units domestically in connection with the exercise of an over-allotment option. Net proceeds of ¥19.6 billion from the third offering were used to acquire six additional properties.

Subsequently, the Company acquired one additional property for a purchase price of ¥1,770 million by utilizing internal cash during the six months ended December 31, 2012.

On February 4, 2013, the Company completed its fourth public offering of 15,424 investment units, out of which 7,524 new units were offered through a domestic public offering and 7,900 new units were offered through an overseas offering, at a price of

¥692,250 per unit. On March 5, 2013, the Company issued 376 investment units domestically in connection with the exercise of an over-allotment option. Net proceeds of ¥10.6 billion from the fourth offering were used to acquire six additional properties.

On February 3, 2014, the Company completed its fifth public offering of 8,884 investment units, out of which 4,334 new units were offered through a domestic public offering and 4,550 new units were offered through an overseas offering, at a price of ¥803,400 per unit. On March 4, 2014, the Company issued 216 investment units domestically in connection with the exercise of an over-allotment option. Net proceeds of ¥7.1 billion from the fifth offering were used to acquire eight additional properties.

The Company executed a two-for-one unit split on January 1, 2015 as the effective date.

On March 16, 2015, the Company completed its sixth public offering of 20,988 investment units, out of which 10,238 new units were offered through a domestic public offering and 10,750 new units were offered through an overseas offering, at a price of ¥546,000 per unit. On March 27, 2015, the Company issued 512 investment units domestically in connection with the exercise of an over-allotment option. Net proceeds of ¥11.3 billion from the sixth offering were used to acquire six additional properties.

On February 14, 2017, the Company completed its seventh public offering of 43,538 investment units, out of which 21,238 new units were offered through a domestic public offering and 22,300 new units were offered through an overseas offering, at a price of ¥506,025 per unit. On March 3, 2017, the Company issued 1,062 investment units domestically in connection with the exercise of an over-allotment option. Net proceeds of ¥21.6 billion from the seventh offering were used to acquire eleven additional properties.

The Company executed a four-for-one unit split on February 1, 2018 as the effective date.

On March 7, 2018, the Company completed its eighth public offering of 109,275 investment units, out of which 53,600 new units were offered through a domestic public offering and 55,675 new units were offered through an overseas offering, at a price of

¥119,437 per unit. On April 4, 2018, the Company issued 885 investment units domestically in connection with the exercise of an over-allotment option. Net proceeds of ¥12.5 billion from the eighth offering were used to acquire thirteen additional properties.

On May 29, 2019, the Company completed its ninth public offering of 90,700 investment units at a price of ¥125,092 per unit. On June 25, 2019, the Company issued 4,500 investment units in connection with the exercise of an over-allotment option. Net proceeds of ¥11.4 billion from the ninth offering were used to acquire five additional properties and investment in Tokumei Kumiai agreement.

On December 18, 2019, the Company completed its tenth public offering of 83,900 investment units, out of which 40,900 new units were offered through a domestic public offering and 43,000 new units were offered through an overseas offering, at a price of

¥160,387 per unit. On January 15, 2020, the Company issued 2,100 investment units in connection with the exercise of an over-allotment option. Net proceeds of ¥13.3 billion from the tenth offering were used to acquire five additional properties.

On August 11, 2020, the Company completed its 11th public offering of 181,000 investment units at a price of ¥182,845 per unit. On September 8, 2020, the Company issued 9,000 investment units in connection with the exercise of an over-allotment option. Net proceeds of ¥33.6 billion from the 11th offering were used to acquire three additional properties.

On March 23, 2023, the Company completed its 12th public offering of 43,500 investment units at a price of ¥138,278 per unit. Net proceeds of ¥5.8 billion from the 12th offering were used to acquire five additional properties.

On February 28, 2024, the Company completed its 13th public offering of 409,609 investment units at a price of ¥119,047 per unit. On March 26, 2024, the Company issued 13,091 investment units in connection with the exercise of an over-allotment option. Net proceeds of ¥48.7 billion from the 13th offering were used to acquire 28 additional properties and equity interests in Tokumei Kumiai Agreement.

As of January 31, 2026, the Company's portfolio consisted of 110 properties.

Note 2 － Summary of Significant Accounting Policies

Basis of Presentation
The Company maintains its accounts and records in conformity with accounting principles and practices generally accepted in Japan ("Japanese GAAP"), including provisions set forth in the Investment Trust Act, the Companies Act of Japan, the Financial Instruments and Exchange Act, and other related regulations, which are different in certain respects from the application and disclosure requirements of International Financial Reporting Standards or accounting principles generally accepted in the United States of America.
The accompanying financial statements are a translation of the financial statements of the Company, which were prepared in accordance with Japanese GAAP. In preparing the accompanying financial statements, certain information in the notes has been added to the financial statements issued domestically for the convenience of the readers outside Japan.
The financial statements are not intended to present the financial position and the results of operations in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.
The Company maintains its accounting records in Japanese yen. The U.S. dollar amounts included in the accompanying financial statements and notes thereto represent the arithmetical result of translating Japanese yen into U.S. dollars at the rate of ¥153.66
= US$1, the effective rate of exchange prevailing at January 31, 2026. The inclusion of such U.S. dollar amounts associated with the six months ended January 31, 2026 is solely for the convenience of readers outside Japan. Such translations should not be construed as representations that the Japanese yen amounts represent, or have been, or could be converted into, U.S. dollars at that or any other rate.
Amounts less than ¥1 million and US$1 thousand are truncated. The Company does not prepare consolidated financial statements.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash, demand deposits, and short-term investments which are highly liquid and readily convertible to cash, have a low risk of price fluctuation, and mature within three months from the date of acquisition.
Property, Plant and Equipment (Including Trust Assets)
Property, plant and equipment is recorded at cost. Depreciation of property, plant and equipment, except for land, is calculated on a straight-line basis over the estimated useful lives of the assets as stated below:
Buildings .......................................... 8 - 70 years
Structures ........................................ 2 - 45 years
Machinery and equipment .............. 9 - 17 years
Tools, furniture and fixtures ............ 5 - 15 years
Intangible Assets
Intangible assets are amortized on a straight-line basis.
Long-term Prepaid Expenses
Long-term prepaid expenses are amortized on a straight-line basis.
Impairment of Fixed Assets
An assessment for impairment is carried out on an asset or group of assets, such as fixed assets, intangible assets and investments, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
If the asset or group of assets is deemed to be impaired, an impairment loss is recognized for the difference between the carrying amount and the fair value of the asset or group of assets by using the discounted cash flow model.
Accounting Treatment of Trust Beneficiary Interests in Real Estate Trusts
For trust beneficiary interests in real estate trusts, which are commonly utilized to obtain ownership in investment properties in Japan and through which the Company holds all of its real estate, all assets and liabilities with respect to assets in trust, as well as all income generated and expenses incurred with respect to assets in trust, are recorded in the relevant balance sheet and income statement accounts of the Company in proportion to the percentage interest that such trust beneficiary interest represents. Certain material accounts with respect to assets and liabilities in trust are presented separately from other accounts in the balance sheet of the Company.
Revenue Recognition

The content of the performance obligations regarding the revenue arising from contracts with the customers of the Company and the normal point in time when satisfying such performance obligations (normal point in time when recognizing revenues) are mainly as follows:

Sale of property
Revenue from sale of property is recognized when the purchaser, which is a customer, acquires control of the property by fulfilling the delivery obligations stipulated in the sale contract of the property.

Common area charges

For common area charges, revenue is recognized based on the supply of electricity, water, etc. to the lessee, which is a customer, in accordance with the terms of the lease agreement of properties and accompanying agreements. Of utilities revenue, when the Company is deemed to be an agent in the transaction, the net amount obtained by deducting the amount paid to other related parties supplying electricity, water, etc. from the amount received as the charges for electricity, water, etc. is recognized as revenue.

Hedge Accounting
In accordance with the Company's risk management policy and its internal rules, the Company uses derivative instruments for the purpose of hedging risks that are prescribed in the Company's articles of incorporation. The Company hedges fluctuations in interest rates of loans payable through the use of interest rate swaps as hedging instruments and deferred hedge accounting is generally applied. The hedge effectiveness of the interest rate swaps is assessed by comparing the cumulative changes in the cash flows of the hedging instruments with those of the hedged items. The Company applies, however, the special treatment provided under Japanese GAAP for the interest rate swaps which qualify for hedge accounting and meet specific criteria, under which only the interest received or paid under such swap contracts can be recognized and added to or deducted from any interest earned or incurred on the hedged asset or liability, as appropriate, and the fair value of the interest rate swaps is not required to be evaluated separately. An assessment of hedge effectiveness is not performed when the interest rate swaps meet the specific criteria required for such special treatment.
Securities
Shares of subsidiaries and associates are stated at cost determined by the moving average method.
Non-marketable securities held as available-for-sale are stated at cost determined by the moving average method. Investments in Tokumei Kumiai (silent partnership) agreements are accounted for by using the equity method of accounting.
Investment Units Issuance Costs
Investment units issuance costs are capitalized and amortized on a straight-line basis over three years.
Investment Corporation Bonds Issuance Costs
Investment corporation bonds issuance costs are capitalized and amortized on a straight-line basis over the maturity period of the investment corporation bonds.
Income Taxes
Deferred tax assets and liabilities are computed based on the temporary differences between the financial statements and income tax basis of assets and liabilities by using the applicable statutory tax rate.

Taxes on Property, Plant and Equipment

Property, plant and equipment are annually subject to various taxes, such as property taxes and urban planning taxes. An owner of a property is registered in the record maintained by the local government in each jurisdiction, and such taxes are imposed on the owner registered in the record as of January 1 of each year based on the assessment made by the local government.

Under the above tax rules, a seller of a property at the time of disposal is liable for these taxes on the property from the date of disposal to the end of the calendar year in which the property is disposed. The seller, however, is reimbursed by the purchaser for these accrued tax liabilities and the amount of settlement reflects this adjustment. For the purchaser, a portion of such taxes calculated from the acquisition date to the end of the calendar year is capitalized as a cost of the property in accordance with Japanese GAAP. In subsequent calendar years, half of such taxes on property, plant and equipment for each calendar year are charged as operating expenses in each fiscal period.

Taxes on property, plant and equipment capitalized as part of the acquisition cost of properties amounted to 46 million and 1 million (US$11 thousand) for the six months ended July 31, 2025 and January 31, 2026, respectively.

(New accounting standards not yet applied) Accounting Standard for Leases, etc.

"Accounting Standard for Leases"
(Accounting Standards Board of Japan (ASBJ) Statement No. 34, September 13, 2024, ASBJ)
"Implementation Guidance on Accounting Standard for Leases" (ASBJ Guidance No. 33, September 13, 2024, ASBJ), etc.

Overview
As part of its efforts to ensure consistency between Japanese GAAP and international accounting standards, the ASBJ reviewed the Accounting Standard for Leases to recognize assets and liabilities for all leases held by a lessee, with international accounting standards taken into consideration. Accordingly, the ASBJ issued the Accounting Standard for Leases, etc. that adopts only the key provisions of IFRS 16 that is based on the single accounting model. The revision aims to be simple and highly convenient, and to make it unnecessary to revise non-consolidated financial statements that apply IFRS 16 in the Accounting Standard for Leases, etc. Regarding the method for allocating the lease expenses in the lessee's accounting treatment, using the same approach as IFRS 16, a single accounting model is applied for recording the depreciation associated with the right-of-use assets and the amount equivalent to the interest on the lease liabilities for all leases regardless of whether the lease is a finance lease or an operating lease.
Scheduled date of application
The Company will adopt the accounting standards from the beginning of the six months ending January 31, 2028.

Impact from the application of the accounting standard

The Company is currently evaluating the effect on its financial statements by applying the "Accounting Standard for Leases," etc.

Accounting Standard for Subsequent Events, etc.

"Accounting Standard for Subsequent Events" (ASBJ Statement No. 41, January 9, 2026, ASBJ)

"Implementation Guidance on Accounting Standard for Subsequent Events" (ASBJ Guidance No. 35, January 9, 2026, ASBJ), etc.

Overview
The Accounting Standard for Subsequent Events, etc. were established with the priority objective of setting comprehensive accounting standards addressing the definition, accounting treatment, and disclosure of subsequent events. As a basic policy,
the accounting-related content presented in Audit Standards Report No. 560, Practical Guideline No. 1, "Audit Considerations Relating to Subsequent Events," issued by the Auditing and Assurance Standards Committee of the Japanese Institute of Certified Public Accountants, has in principle been carried over and transferred to the Accounting Standards Board of Japan. In accordance with this policy, revisions to the wording and a reorganization of the evaluation period for subsequent events were conducted, and new disclosure requirements were introduced, such as notes regarding the approval of the issuance of financial statements. Accordingly, these standards prescribe the accounting treatment and disclosure related to subsequent events.
Scheduled date of application
The Company will adopt the accounting standards from the beginning of the six months ending January 31, 2028.
Impact from the application of the accounting standard

The Company is currently evaluating the effect on its financial statements by applying the "Accounting Standard for Subsequence Events," etc.

Note 3 － Cash and Cash Equivalents

Cash and cash equivalents shown in the statement of cash flows consist of the following balance sheet items.

As of

July 31,

January 31,

2025 2026 2026

(in thousands of

(in millions of yen)

U.S. dollars)

Cash and bank deposits ￥	15,788	￥	19,891	＄	129,450
Cash and bank deposits in trust................................................................	9,672		8,591		55,914
Time deposits over three months..................................................................	-		(4,000)		(26,031)
Cash and cash equivalents ￥	25,461	￥	24,483	＄	159,333

Note 4 － Property, Plant and Equipment

The following tables show the summary of movement in property, plant and equipment for the six months ended January 31, 2026.

For the six months ended January 31, 2026:

At cost

Net property,

Beginning balance

Increase

Decrease

Ending balance

(in millions of yen)

Accumulated depreciation

Depreciation for the period

plant and equipment

Buildings ￥	36,998	￥	413	￥	871	￥	36,539	￥	12,493	￥	479	￥	24,046
Structures.................................................	129		-		4		124		80		3		44
Machinery and equipment......................	2		14		-		17		0		0		16
Tools, furniture and fixtures....................	27		-		0		26		20		1		6
Land..........................................................	20,343		130		3,100		17,373		-		-		17,373
Construction in progress.........................	17		-		4		12		-		-		12
Buildings in trust......................................	149,099		7,234		2,946		153,387		28,995		2,123		124,391
Structures in trust.....................................	1,917		27		3		1,940		1,006		70		933
Machinery and equipment in trust.........	227		87		-		314		133		15		181
Tools, furniture and fixtures
in trust .................................	806		61		9		857		269		61		588
Land in trust.............................................	315,945		16,499		6,090		326,354		-		-		326,354
Construction in progress in trust............	37		2		19		20		-		-		20
Total ￥	525,550	￥	24,470	￥	13,050	￥	536,970	￥	42,999	￥	2,755	￥	493,971

At cost Beginning Ending

balance Increase Decrease balance

Accumulated depreciation

Depreciation for the period

Net property, plant and equipment

(in thousands of U.S. dollars)

Buildings ＄	240,779	＄	2,690	＄	5,671	＄	237,797	＄	81,303	＄	3,120	＄	156,493
Structures.................................................	843		-		31		811		521		20		290
Machinery and equipment......................	14		95		-		110		3		2		107
Tools, furniture and fixtures....................	176		-		1		174		130		6		43
Land..........................................................	132,390		850		20,178		113,061		-		-		113,061
Construction in progress.........................	111		-		28		82		-		-		82
Buildings in trust......................................	970,318		47,080		19,173		998,225		188,701		13,819		809,524
Structures in trust.....................................	12,476		177		23		12,630		6,553		458		6,077
Machinery and equipment in trust.........	1,479		569		-		2,049		868		101		1,181
Tools, furniture and fixtures
in trust .................................	5,247		398		62		5,583		1,750		400		3,832
Land in trust.............................................	2,056,133		107,374		39,634		2,123,873		-		-		2,123,873
Construction in progress in trust............	246		15		125		136		-		-		136
Total ＄ 3,420,217		＄	159,253	＄	84,932	＄ 3,494,538		＄	279,832	＄	17,930	＄ 3,214,705

Note 5 － Intangible Assets

Intangible assets consist of mainly leasehold rights to use nationally-owned land on which IIF Haneda Airport Maintenance Center is located with approval of the authorities under Article 18-6 and 19 of the National Property Act of Japan.

Note 6 － Fair Value of Investment and Rental Property

The following table shows the net book value and the fair value of the investment and rental properties in aggregate for the six months ended July 31, 2025 and January 31, 2026.

As of / For the six months ended

July 31,

January 31,

2025 2026 2026

(in thousands of

Net book value(1)

(in millions of yen)

U.S. dollars)

Balance at the beginning of the period............................... ￥ 505,217 ￥ 504,200 ＄ 3,281,273

Net increase (decrease) during the period(2)....................... (1,017) 9,605 62,510 Balance at the end of the period.......................................... ￥ 504,200 ￥ 513,805 ＄ 3,343,784

Fair value(3)................................................................................................. ￥ 629,165 ￥ 642,374 ＄ 4,180,493

Note:

(1)

(2)

The net book value includes leasehold rights. For the six months ended July 31, 2025:

Changes in the net book value are mainly due to the following transactions and depreciation.

Increase (decrease) in net book value

(in millions ofyen)

Acquisition: IIF Hamura Logistics Center (Redevelopment)............................................................................................................................................. ￥ 2,524

Disposition: IIF Totsuka Technology Center (Land with leasehold interest) (35% of quasi-co-ownership)......................................................... (1,593)

For the six months ended January 31, 2026:

Changes in the net book value are mainly due to the following transactions and depreciation.

Increase (decrease) in net book

(in thousands of U.S.

(in millions ofyen) dollars)

Acquisition:	IIF Funabashi Logistics Center II ￥	9,520	＄	61,960
	IIF Narashino Logistics Center I (Building)..............................................................................................................	5,223		33,992
	IIF Higashihiroshima Manufacturing Center .........................................................................................................	3,446		22,428
Disposition:	IIF Kamata R&D Center.................................................................................................................................................	(7,257)		(47,230)
	IIF Higashi-Osaka Logistics Center (30% of quasi-co-ownership)....................................................................	(720)		(4,691)

Fair value has been determined based on the appraisal or researched value provided by independent real estate appraisers. For the six months ended July 31, 2025, the selling prices are used for IIF Higashi-Osaka Logistics Center and IIF Kamata R&D Center signed disposition contracts on July 30, 2025 and September 17, 2025, respectively. For the six months ended January 31, 2026, the selling prices are used for IIF Higashi-Osaka Logistics Center (70% of quasi-co-ownership) signed disposition contract on July 30, 2025, and IIF Izumiotsu e-shop Logistics Center (Land with leasehold interest), IIF Hanno Manufacturing Center (Land with leasehold interest), IIF Higashimatsuyama Gas Tank

Maintenance Center (Land with leasehold interest) and IIF Kobe Nishi Logistics Center (Land with leasehold interest) which were signed disposition contract on December 4, 2025.

For rental revenues and expenses for the six months ended July 31, 2025 and January 31, 2026, please refer to "Rent Revenue-Real Estate and Expenses Related to Property Rental Business."

Note 7 － Loans Payable

The following table shows the details of loans payable for the six months ended January 31, 2026.

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Short-term loans payable	Sumitomo Mitsui Trust Bank, Limited	￥ 1,700	￥ -	￥ 1,700	￥ -	＄ 11,063	＄ -	＄ 11,063	＄ -	0.8%	October 31, 2025	Repayment of outstanding loans payable, etc.	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	400	-	400	-	2,603	-	2,603	-	0.8%	February 27, 2026 (2)	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	-	5,000	5,000	-	-	32,539	32,539	-	0.8%	August 31, 2026 (3)	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	-	9,500	-	9,500	-	61,824	-	61,824	0.9%	November 30, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	-	3,400	-	3,400	-	22,126	-	22,126	0.9%	November 30, 2026	Acquisition of real estate property	Unsecured and unguaranteed
Total Short-term loans payable		￥ 2,100	￥ 17,900	￥ 7,100	￥ 12,900	＄ 13,666	＄ 116,490	＄ 46,205	＄ 83,951
Long-term loans payable	Development Bank of Japan Inc.	￥ 1,000	￥ -	￥ -	￥ 1,000	＄ 6,507	＄ -	＄ -	＄ 6,507	1.7%	March 13, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	724	-	-	724	4,711	-	-	4,711
										1.7% (4)	March 13, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	276	-	-	276	1,796	-	-	1,796	1.7% (4)	March 13, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,000	-	-	1,000	6,507	-	-	6,507	1.3%	March 31, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Meiji Yasuda Life Insurance Company	850	-	-	850	5,531	-	-	5,531	1.2%	March 31, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	800	-	-	800	5,206	-	-	5,206	0.5% (4)	March 31, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	The Bank of Fukuoka, Ltd.	800	-	-	800	5,206	-	-	5,206	0.5%	March 31, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,000	-	-	2,000	13,015	-	-	13,015	0.4%	August 31, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,600	-	1,600	-	10,412	-	10,412	-	0.5%	August 15, 2025	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	3,255	-	-	3,255	21,187	-	-	21,187
										0.6%	March 6, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,244	-	-	1,244	8,098	-	-	8,098	0.6%	March 6, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,170	-	-	2,170	14,124	-	-	14,124
										0.7%	September 4, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	829	-	-	829	5,398	-	-	5,398	0.7%	September 4, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,099	-	2,099	-	13,663	-	13,663	-
										0.6%	September 17, 2025	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	800	-	800	-	5,208	-	5,208	-	0.6%	September 17, 2025	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.5%	March 17, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,000	-	-	1,000	6,507	-	-	6,507	0.9%	March 16, 2029	Acquisition of real estate property	Unsecured and unguaranteed

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Long-term loans payable	Mizuho Bank, Ltd.	￥ 1,000	￥ -	￥ -	￥ 1,000	＄ 6,507	＄ -	＄ -	＄ 6,507	0.6%	March 17, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	The Nishi-Nippon City Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.7%	March 17, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Trust & Banking Co., Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.7%	March 17, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	The Bank of Fukuoka, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.7%	March 17, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	4,054	-	4,054	-	26,385	-	26,385	-
										0.6%	September 30, 2025	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,545	-	1,545	-	10,058	-	10,058	-	0.6%	September 30, 2025	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.7%	March 31, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	1,000	-	-	1,000	6,507	-	-	6,507	0.7%	March 31, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,300	-	-	1,300	8,460	-	-	8,460	0.8%	March 30, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,200	-	-	1,200	7,809	-	-	7,809	0.6%	March 31, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,938	-	-	2,938	19,120	-	-	19,120
										0.7%	September 30, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,062	-	-	1,062	6,911	-	-	6,911	0.7%	September 30, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,791	-	-	2,791	18,163	-	-	18,163
										0.9%	September 28, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,009	-	-	1,009	6,566	-	-	6,566	0.9%	September 28, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	JAPAN POST INSURANCE Co., Ltd.	2,300	-	-	2,300	14,968	-	-	14,968	0.9%	February 1, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	100	-	-	100	650	-	-	650	0.9%	February 1, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	700	-	-	700	4,555	-	-	4,555	0.7%	February 1, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	2,500	-	-	2,500	16,269	-	-	16,269	0.7%	August 31, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Development Bank of Japan Inc.	2,500	-	-	2,500	16,269	-	-	16,269	0.9%	February 28, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Development Bank of Japan Inc.	400	-	-	400	2,603	-	-	2,603	0.7%	September 7, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	400	-	-	400	2,603	-	-	2,603	0.6%	September 7, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	400	-	-	400	2,603	-	-	2,603	0.6%	March 7, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Trust & Banking Co., Ltd.	1,100	-	-	1,100	7,158	-	-	7,158	0.6%	March 7, 2028	Acquisition of real estate property	Unsecured and unguaranteed

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Long-term loans	MUFG Bank, Ltd.	￥ 3,618	￥ -	￥ -	￥ 3,618	＄ 23,545	＄ -	＄ -	＄ 23,545
payable										0.7%	March 9, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
payable	Sumitomo Mitsui Trust Bank, Limited	1,382	-	-	1,382	8,993	-	-	8,993	0.7%	March 9, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	724	-	-	724	4,711	-	-	4,711
										0.8%	March 9, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	276	-	-	276	1,796	-	-	1,796	0.8%	March 9, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	434	-	-	434	2,827	-	-	2,827
										0.6%	September 30, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	165	-	-	165	1,077	-	-	1,077	0.6%	September 30, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,200	-	-	1,200	7,809	-	-	7,809	0.7%	September 29, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	600	-	-	600	3,904	-	-	3,904	0.6%	September 30, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	500	-	-	500	3,253	-	-	3,253	0.6%	March 31, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	500	-	-	500	3,253	-	-	3,253	0.5%	March 31, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.4%	September 30, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.5%	September 29, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	3,274	-	-	3,274	21,306	-	-	21,306	0.5%	March 29, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	900	-	-	900	5,857	-	-	5,857	0.4%	November 30, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	800	-	-	800	5,206	-	-	5,206	0.4%	November 30, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	The Norinchukin Bank	1,000	-	-	1,000	6,507	-	-	6,507	0.3%	August 2, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	800	-	-	800	5,206	-	-	5,206	0.4%	November 30, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	800	-	-	800	5,206	-	-	5,206	0.4%	November 30, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.4%	May 31, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.5%	May 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	1,000	-	-	1,000	6,507	-	-	6,507	0.5%	May 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,600	-	-	1,600	10,412	-	-	10,412	0.6%	May 31, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	Nippon Life Insurance Company	1,500	-	-	1,500	9,761	-	-	9,761	0.6%	May 31, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	583	-	-	583	3,794	-	-	3,794	0.5%	November 30, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,626	-	-	1,626	10,581	-	-	10,581	0.3%	September 29, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Long-term loans payable	Mizuho Bank, Ltd.	￥ 1,500	￥ -	￥ -	￥ 1,500	＄ 9,761	＄ -	＄ -	＄ 9,761	0.4%	March 29, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	400	-	-	400	2,603	-	-	2,603	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	300	-	-	300	1,952	-	-	1,952	0.4%	October 31, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	300	-	-	300	1,952	-	-	1,952	0.3%	April 30, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	300	-	-	300	1,952	-	-	1,952	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	500	-	-	500	3,253	-	-	3,253	0.4%	October 31, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Trust & Banking Co., Ltd.	300	-	-	300	1,952	-	-	1,952	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	500	-	-	500	3,253	-	-	3,253	0.5%	October 31, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	700	-	-	700	4,555	-	-	4,555	0.4%	October 31, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	500	-	-	500	3,253	-	-	3,253	0.3%	April 30, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	800	-	-	800	5,206	-	-	5,206	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,100	-	-	1,100	7,158	-	-	7,158	0.4%	October 31, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Trust & Banking Co., Ltd.	800	-	-	800	5,206	-	-	5,206	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,300	-	-	1,300	8,460	-	-	8,460	0.5%	October 31, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,000	-	-	1,000	6,507	-	-	6,507	0.4%	June 30, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	The Norinchukin Bank	1,500	-	-	1,500	9,761	-	-	9,761	0.3%	June 30, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	500	-	-	500	3,253	-	-	3,253	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	400	-	-	400	2,603	-	-	2,603	0.4%	October 31, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	200	-	-	200	1,301	-	-	1,301	0.3%	April 30, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	500	-	-	500	3,253	-	-	3,253	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	700	-	-	700	4,555	-	-	4,555	0.4%	October 31, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Trust & Banking Co., Ltd.	500	-	-	500	3,253	-	-	3,253	0.4%	October 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	700	-	-	700	4,555	-	-	4,555	0.5%	October 31, 2030	Acquisition of real estate property	Unsecured and unguaranteed

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Long-term loans payable	MUFG Bank, Ltd.	￥ 1,000	￥ -	￥ -	￥ 1,000	＄ 6,507	＄ -	＄ -	＄ 6,507	0.3%	March 28, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	3,000	-	-	3,000	19,523	-	-	19,523	0.4%	September 27, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,500	-	-	1,500	9,761	-	-	9,761	0.2%	March 29, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,200	-	-	1,200	7,809	-	-	7,809	0.3%	September 28, 2027	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	2,800	-	-	2,800	18,222	-	-	18,222	0.5%	September 29, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,500	-	-	1,500	9,761	-	-	9,761	0.2%	September 28, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,500	-	-	1,500	9,761	-	-	9,761	0.3%	September 28, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.4%	March 28, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	3,000	-	-	3,000	19,523	-	-	19,523	0.4%	September 27, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	1,500	-	-	1,500	9,761	-	-	9,761	0.4%	September 27, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	The Norinchukin Bank	2,500	-	-	2,500	16,269	-	-	16,269	0.3%	March 28, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,900	-	-	1,900	12,364	-	-	12,364	0.3%	March 31, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	600	-	-	600	3,904	-	-	3,904	0.2%	September 4, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	800	-	-	800	5,206	-	-	5,206	0.4%	March 31, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	300	-	-	300	1,952	-	-	1,952	0.2%	September 4, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,000	-	-	1,000	6,507	-	-	6,507	0.4%	September 28, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.5%	November 28, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	450	-	-	450	2,928	-	-	2,928	0.4%	January 31, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	500	-	-	500	3,253	-	-	3,253	0.5%	January 31, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,250	-	-	1,250	8,134	-	-	8,134	0.5%	February 4, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Development Bank of Japan Inc.	2,000	-	-	2,000	13,015	-	-	13,015	0.8%	March 31, 2033	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	500	-	-	500	3,253	-	-	3,253	0.6%	March 29, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,500	-	-	1,500	9,761	-	-	9,761	0.9%	June 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	The Nishi-Nippon City Bank, Ltd.	500	-	-	500	3,253	-	-	3,253	0.7%	July 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Long-term loans payable	The Chugoku Bank, LTD.	￥ 700	￥ -	￥ -	￥ 700	＄ 4,555	＄ -	＄ -	＄ 4,555	0.9%	September 15, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	2,000	-	-	2,000	13,015	-	-	13,015	0.9%	September 16, 2032	Acquisition of real estate property	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	1,500	-	-	1,500	9,761	-	-	9,761	0.9%	September 16, 2032	Acquisition of real estate property	Unsecured and unguaranteed
	The 77 Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	0.8%	March 14, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	Shinkin Central Bank	1,000	-	-	1,000	6,507	-	-	6,507	0.8%	March 14, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,800	-	-	2,800	18,222	-	-	18,222	1.0%	September 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	100	-	-	100	650	-	-	650	0.8%	September 30, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Kansai Mirai Bank, Limited	900	-	-	900	5,857	-	-	5,857	0.8%	September 30, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,250	-	-	1,250	8,134	-	-	8,134	0.6%	July 31, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,000	-	1,000	-	6,507	-	6,507	-	0.5%	January 30, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	500	-	-	500	3,253	-	-	3,253	0.6%	February 5, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	500	-	-	500	3,253	-	-	3,253	0.7%	February 4, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	500	-	-	500	3,253	-	-	3,253	0.7%	February 4, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,700	-	-	1,700	11,063	-	-	11,063	0.9%	March 31, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	800	-	-	800	5,206	-	-	5,206	0.9%	April 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,000	-	-	1,000	6,507	-	-	6,507	0.8%	May 15, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,000	-	-	1,000	6,507	-	-	6,507	0.4%	December 28, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	900	-	-	900	5,857	-	-	5,857	0.4%	June 30, 2027	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,400	-	-	1,400	9,111	-	-	9,111	0.9%	June 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	The Yamaguchi Bank, Ltd.	500	-	-	500	3,253	-	-	3,253	1.2%	August 4, 2033	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,000	-	-	1,000	6,507	-	-	6,507	1.1%	September 29, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,500	-	-	1,500	9,761	-	-	9,761	0.5%	April 20, 2026	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,500	-	-	1,500	9,761	-	-	9,761	0.8%	April 18, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,500	-	-	1,500	9,761	-	-	9,761	1.0%	October 18, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Long-term loans payable	MUFG Bank, Ltd.	￥ 1,500	￥ -	￥ -	￥ 1,500	＄ 9,761	＄ -	＄ -	＄ 9,761	1.1%	April 18, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	2,000	-	-	2,000	13,015	-	-	13,015	1.1%	December 11, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	2,000	-	-	2,000	13,015	-	-	13,015	1.3%	December 9, 2033	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	2,000	-	-	2,000	13,015	-	-	13,015	1.1%	December 11, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	2,000	-	-	2,000	13,015	-	-	13,015	1.3%	December 9, 2033	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,000	-	-	1,000	6,507	-	-	6,507	1.3%	November 30, 2033	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	1.3%	November 30, 2033	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	2,000	-	-	2,000	13,015	-	-	13,015	1.3%	November 30, 2033	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	900	-	-	900	5,857	-	-	5,857	1.1%	August 31, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	4,000	-	-	4,000	26,031	-	-	26,031	1.2%	February 28, 2034	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	3,000	-	-	3,000	19,523	-	-	19,523	1.3%	February 28, 2034	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	3,000	-	-	3,000	19,523	-	-	19,523	1.3%	February 28, 2034	Acquisition of real estate property	Unsecured and unguaranteed
	The Norinchukin Bank	3,000	-	-	3,000	19,523	-	-	19,523	1.3%	February 28, 2034	Acquisition of real estate property	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	1,000	-	-	1,000	6,507	-	-	6,507	1.3%	February 28, 2034	Acquisition of real estate property	Unsecured and unguaranteed
	The Bank of Fukuoka, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	1.3%	February 28, 2034	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,000	-	-	2,000	13,015	-	-	13,015	1.1%	February 28, 2033	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	4,000	-	-	4,000	26,031	-	-	26,031	1.2%	February 28, 2033	Acquisition of real estate property	Unsecured and unguaranteed
	The Norinchukin Bank	4,000	-	-	4,000	26,031	-	-	26,031	1.2%	February 28, 2033	Acquisition of real estate property	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	2,000	-	-	2,000	13,015	-	-	13,015	1.2%	February 28, 2033	Acquisition of real estate property	Unsecured and unguaranteed
	The Bank of Fukuoka, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	1.2%	February 28, 2033	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	2,500	-	-	2,500	16,269	-	-	16,269	1.1%	February 27, 2032	Acquisition of real estate property	Unsecured and unguaranteed
	The Norinchukin Bank	3,000	-	-	3,000	19,523	-	-	19,523	1.1%	February 27, 2032	Acquisition of real estate property	Unsecured and unguaranteed
	The Bank of Fukuoka, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	1.1%	February 27, 2032	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	500	-	-	500	3,253	-	-	3,253	1.1%	February 27, 2032	Acquisition of real estate property	Unsecured and unguaranteed

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Long-term loans payable	The Nishi-Nippon City Bank, Ltd.	￥ 500	￥ -	￥ -	￥ 500	＄ 3,253	＄ -	＄ -	＄ 3,253	1.1%	February 27, 2032	Acquisition of real estate property	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,500	-	-	1,500	9,761	-	-	9,761	1.1%	August 29, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,000	-	-	2,000	13,015	-	-	13,015	1.1%	February 28, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,000	-	-	1,000	6,507	-	-	6,507	1.0%	February 28, 2031	Acquisition of real estate property	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	2,000	-	-	2,000	13,015	-	-	13,015	0.9%	August 30, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	3,000	-	-	3,000	19,523	-	-	19,523	0.9%	February 28, 2030	Acquisition of real estate property	Unsecured and unguaranteed
	Development Bank of Japan Inc.	2,000	-	-	2,000	13,015	-	-	13,015	0.8%	August 31, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	2,000	-	-	2,000	13,015	-	-	13,015	0.8%	February 28, 2029	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	2,000	-	-	2,000	13,015	-	-	13,015	1.0%	August 31, 2028	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	2,500	-	-	2,500	16,269	-	-	16,269	1.0%	August 31, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,500	-	-	1,500	9,761	-	-	9,761	1.0%	February 27, 2026	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,000	-	1,000	-	6,507	-	6,507	-	0.8%	August 29, 2025	Acquisition of real estate property	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,200	-	-	1,200	7,809	-	-	7,809	1.0%	February 28, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	1.1%	March 31, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,500	-	-	1,500	9,761	-	-	9,761	1.0%	February 28, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,000	-	-	1,000	6,507	-	-	6,507	1.1%	March 31, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Trust & Banking Co., Ltd.	2,000	-	-	2,000	13,015	-	-	13,015	1.4%	January 31, 2034	Repayment of the redemption of corporatebonds, etc.	Unsecured and unguaranteed
	The Chiba Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	1.4%	January 31, 2034	Repayment of the redemption of corporatebonds, etc.	Unsecured and unguaranteed
	Asahi Shinkin Bank	1,000	-	-	1,000	6,507	-	-	6,507	1.4%	January 31, 2034	Repayment of the redemption of corporatebonds, etc.	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,100	-	-	2,100	13,666	-	-	13,666	1.0%	September 27, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	700	-	-	700	4,555	-	-	4,555	1.3%	August 31, 2033	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Shinkin Central Bank	1,500	-	-	1,500	9,761	-	-	9,761	1.3%	August 31, 2034	Repayment of outstanding loans payable	Unsecured and unguaranteed
	The Yamaguchi Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	1.3%	August 31, 2034	Repayment of outstanding loans payable	Unsecured and unguaranteed
	The 77 Bank, Ltd.	1,000	-	-	1,000	6,507	-	-	6,507	1.1%	August 31, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed

Classification	Name of lender	Beginning balance	Increase	Decrease	Ending balance	Beginning balance	Increase	Decrease	Ending balance	Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Classification	Name of lender	(in millions of yen)				(in thousands of U.S. dollars)				Average interest rate(1)	Maturity date	Use of proceeds	Remarks
Long-term loans payable	The Chugoku Bank, LTD.	￥ 1,000	￥ -	￥ -	￥ 1,000	＄ 6,507	＄ -	＄ -	＄ 6,507	1.1%	August 31, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	2,650	-	-	2,650	17,245	-	-	17,245	1.1%	September 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	850	-	-	850	5,531	-	-	5,531	0.8%	September 29, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,300	-	-	1,300	8,460	-	-	8,460	1.3%	January 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Development Bank of Japan Inc.	1,000	-	-	1,000	6,507	-	-	6,507	1.3%	January 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Bank, Ltd.	1,500	-	-	1,500	9,761	-	-	9,761	1.6%	February 28, 2035	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,500	-	-	1,500	9,761	-	-	9,761	1.5%	February 27, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,350	-	-	1,350	8,785	-	-	8,785	1.4%	February 28, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Mizuho Trust & Banking Co., Ltd.	850	-	-	850	5,531	-	-	5,531	1.8%	February 28, 2035	Repayment of outstanding loans payable	Unsecured and unguaranteed
	SBI Shinsei Bank, Limited	850	-	-	850	5,531	-	-	5,531	1.8%	February 28, 2035	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	1,500	-	-	1,500	9,761	-	-	9,761	1.2%	February 29, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	The Norinchukin Bank	1,000	-	-	1,000	6,507	-	-	6,507	1.6%	February 28, 2033	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	600	-	-	600	3,904	-	-	3,904	1.3%	February 29, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	1,500	-	-	1,500	9,761	-	-	9,761	1.5%	March 29, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	1,500	-	-	1,500	9,761	-	-	9,761	0.9%	March 31, 2028	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Banking Corporation	500	-	-	500	3,253	-	-	3,253	1.5% (4)	May 15, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Daiwa Next Bank, Ltd.	2,000	-	-	2,000	13,015	-	-	13,015	1.6% (4)	November 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	The Akita Bank,Ltd.	500	-	-	500	3,253	-	-	3,253	1.6% (4)	November 30, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	-	1,600	-	1,600	-	10,412	-	10,412	1.3%	July 31, 2031	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	-	1,000	-	1,000	-	6,507	-	6,507	1.7%	August 31, 2033	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	-	800	-	800	-	5,206	-	5,206	1.5%	July 31, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	-	2,100	-	2,100	-	13,666	-	13,666	1.5%	August 31, 2032	Repayment of outstanding loans payable	Unsecured and unguaranteed
	MUFG Bank, Ltd.	-	2,600	-	2,600	-	16,920	-	16,920	1.3%	March 30, 2029	Repayment of outstanding loans payable	Unsecured and unguaranteed
	Sumitomo Mitsui Trust Bank, Limited	-	1,500	-	1,500	-	9,761	-	9,761	1.6%	September 30, 2030	Repayment of outstanding loans payable	Unsecured and unguaranteed

Classification

Name of lender

Beginning balance

Increase

Decrease

Ending balance

Beginning balance

Increase

Decrease

Ending balance

Average

interest rate(1)

Maturity date

Use of proceeds

Remarks

(in millions of yen)

(in thousands of U.S. dollars)

Long-term loans payable

MUFG Bank, Ltd.

￥ -

￥ 1,500

￥ -

￥ 1,500

＄ -

＄ 9,761

＄ -

＄ 9,761

1.7%

September 30,

2033

Repayment of outstanding loans payable

Unsecured and unguaranteed

Sumitomo Mitsui Trust Bank, Limited

2,100

13,666

1.5%

October 31,

2029

Repayment of outstanding loans payable

Unsecured and unguaranteed

Sumitomo Mitsui Banking Corporation

1,000

6,507

2.0%

January 31,

2029

Repayment of outstanding loans payable

Unsecured and unguaranteed

Total long-term loans payable

￥ 264,033

￥ 14,200

￥ 12,100

￥ 266,133

＄ 1,718,293

＄ 92,411

＄ 78,745

＄ 1,731,960

Total

￥ 266,133

￥ 32,100

￥ 19,200

￥ 279,033

＄ 1,731,960

＄ 208,902

＄ 124,951

＄ 1,815,911

Notes:

The average interest rate indicates a weighted average interest rate for the period, rounded to the first decimal place.
The Company had repaid all principal of the loans payable on October 31, 2025 in advance of the maturity date.
The Company had repaid all principal of the loans payable on September 30, 2025 in advance of the maturity date.
These long-term loans payable are hedged by interest rate swaps and the average interest rate of these long-term loans payable is calculated adjusting for the effect of the interest rate swaps.
Annual repayments of long-term loans payable scheduled for the next five years after the balance sheet date were as follows:

As of January 31, 2026

(in millions of yen)	(in	thousands of U.S. dollars)
Up to 1 year........................................................... ￥ 25,900	＄	168,553
1-2 years................................................................. 23,600		153,585
2-3 years.................................................................. 31,409		204,405
3-4 years................................................................. 33,174		215,892
4-5 years................................................................. 35,400		230,378

Note 8 － Investment Corporation Bonds

The details of the unsecured investment corporation bonds issued and outstanding as of January 31, 2026 were as follows:

As of January 31, 2026

(in millions of yen)

(in thousands of U.S. dollars)

Investment corporation bonds－unsecured
¥3,000 million of 10-year bonds, issued on December 26, 2016,
maturing on December 25, 2026 with a coupon of 0.40% ￥ ¥3,000 million of 10-year bonds, issued on September 7, 2021,	3,000	＄	19,523
maturing on September 5, 2031 with a coupon of 0.39% (Social bond)........... ¥2,000 million of 15-year bonds, issued on September 7, 2021,	3,000		19,523
maturing on September 5, 2036 with a coupon of 0.68% (Social bond)........... ¥1,700 million of 15-year bonds, issued on September 30, 2022,	2,000		13,015
maturing on September 30, 2037 with a coupon of 1.00%............................... ¥3,000 million of 5-year bonds, issued on December 26, 2022,	1,700		11,063
maturing on December 24, 2027 with a coupon of 0.42%................................ ¥2,500 million of 5-year bonds, issued on October 17, 2024,	3,000		19,523
maturing on October 17,2029 with a coupon of 0.96% (Social bond)...............	2,500		16,269
Total ￥	15,200	＄	98,919

Net proceeds from the issuance of the investment corporation bonds were used for repayment of outstanding loans payable or redemption of investment corporation bonds.

Annual repayments on the investment corporation bonds scheduled for the next five years after the balance sheet date were as follows:

As of January 31, 2026

	(in millions of yen)		(in thousands of U.S. dollars)
Up to 1 year ￥	3,000	＄	19,523
1-2 years..........................................................................................................................	3,000		19,523
2-3 years..........................................................................................................................	-		-
3-4 years..........................................................................................................................	2,500		16,269
4-5 years..........................................................................................................................	-		-

Note 9 － Net Assets

The Company issues only non-par value units in accordance with the Investment Trust Act, and the entire amount of the issue price of new units is allocated to unitholders' capital within net assets. The Company is required to maintain net assets of at least ¥50 million (US$325 thousand) as required by Article 67-4 of the Investment Trust Act.

The number of units issued and outstanding were 2,536,216 units and 2,528,461 units as of July 31, 2025 and January 31, 2026, respectively.

The Company purchased its own investment units and retired all of its own investment units as follows. The acquisition cost of the Company's own investment units is deducted from unitholders' equity.

As of

July 31, January 31,

2025 2026

Total number of own investment units retired........................................ - 7,755 units

Total amount of retirement (in millions of yen)....................................... - ￥ 999

Total amount of retirement (in thousands of U.S. dollars)..................... - ＄ 6,507

Note 10 － Allowance for Temporary Difference Adjustments

Information on allowance for temporary difference adjustments for the six months ended July 31, 2025 and January 31, 2026 is as follows:

Reason, related assets and amounts, initial amount and allowance

For the six months ended July 31, 2025: (in millions of yen)

Related assets, etc.

Reason

Initial amount

Balance at beginning of

the period

Allowance during the

period

Reversal during the period

Balance at the end of the

period

Reason for reversal

Buildings in trust

Excess of depreciation allowance

￥

2,419

￥

521

￥

129

￥

650

Reversal of excess of depreciation allowance

Total

￥

2,419

￥

521

￥

129

￥

650

For the six months ended January 31, 2026: (in millions of yen)

Related assets, etc.

Reason

Initial amount

Balance at beginning of

the period

Allowance during the

period

Reversal during the period

Balance at the end of the

period

Reason for reversal

Buildings in trust

Excess of depreciation allowance

￥

2,456

￥

650

￥

(506)

￥

181

Reversal of excess of depreciation allowance

Total

￥

2,456

￥

650

￥

(506)

￥

181

For the six months ended January 31, 2026: (in thousands of U.S. dollars)

Related assets, etc.

Reason

Initial amount

Balance at

beginning of the period

Allowance

during the period

Reversal during the period

Balance at the

end of the period

Reason for reversal

Buildings in trust

Excess of depreciation allowance

＄

15,986

＄

4,235

＄

242

＄

(3,298)

＄

1,179

Reversal of excess of depreciation allowance

Total

＄

15,986

＄

4,235

＄

242

＄

(3,298)

＄

1,179

Method of reversal
1. Buildings in trust

The allowance will be reversed corresponding to disposal of the buildings in the future.

Note 11 － Appropriation of Retained Earnings

In accordance with the distribution policy in Article 25, Paragraph 1, Item 2 of the Company's articles of incorporation, which stipulates making distributions in excess of 90% of distributable profit as defined in Article 67-15, Paragraph 1 of the Special Taxation Measures Act of Japan for the fiscal period, profit distributions (not including distributions in excess of profit) declared for the six months ended January 31, 2026 were ¥10,973,520,740 (US$71,414 thousand), comprising profit as defined in Article 136, Paragraph 1 of the Act on Investment Trusts and Investment Corporations of Japan after reversal of allowance for temporary difference adjustment, except for fractional distribution per investment unit less than one yen.

The Company also intends to make distributions in excess of profit amounting to ¥30,341,532 (US$197 thousand) as unitcapital refund from allowance for temporary difference adjustment, considering an effect of differences between net income and taxable income and items deducted from net assets, which were corresponding to differences between net income and taxable income for the period, except for fractional distribution per unit in excess of profit less than one yen.

Furthermore, the Company generally makes distributions in excess of profit (unitcapital refunds from deduction of unitcapital under tax rules) on a continuous basis every fiscal period in accordance with the policy prescribed in the article of incorporation 25, Paragraph 2. For the six months ended January 31, 2026, The Company declared ¥389,382,994 (US$2,534 thousand) of distributions in excess of profit as unitcapital refunds from deduction of unitcapital under tax rules.

Therefore, cash distributions declared for the six months ended January 31, 2026 were ¥11,393,245,266 (US$74,145 thousand).

The following table shows the appropriation of retained earnings for the six months ended July 31, 2025 and January 31, 2026, respectively.

For the six months ended

July 31,

2025

January 31,

2026

January 31,

2026

(in thousands of

(in millions of yen)

U.S. dollars)

Unappropriated retained earnings..................................................................................	￥	9,297	￥	10,975	＄	71,424
Distributions in excess of profit........................................................................................		-		419		2,731
Capitalization.....................................................................................................................		469		-		-
Cash distribution declared................................................................................................		8,818		11,393		74,145
Profit distributions......................................................................................................		8,818		10,973		71,414
Allowance for temporary difference adjustments....................................................		-		30		197
Return of unitholders' capital though unitholders' capital deduction...................		-		389		2,534
Retained earnings carried forward...................................................................................	￥	9	￥	1	＄	9

A dividend in respect of the six months ended January 31, 2026 of ¥4,506 (US$29), per investment unit, amounting to a total dividend of ¥11,393 million (US$74,145 thousand), was proposed and approved at the Board of Directors Meeting on March 17, 2026. These financial statements do not reflect this dividend payable.

Cash distributions per investment unit were ¥3,477 and ¥4,506 (US$29) for the fiscal periods ended July 31, 2025 and January 31, 2026, respectively. For the fiscal periods ended July 31, 2025 and January 31, 2026, the cash distributions per investment unit included distributions in excess of profit as stipulated in Article 25, Paragraph 2 of the Company's articles of incorporation in the amounts of ¥0 and ¥166 (US$1), respectively.

Note 12 － Information on Allowance for Temporary Difference Adjustments

Information on temporary differences subject to allowance for temporary difference adjustments for the six months ended July 31, 2025 and January 31, 2026 is as follows:

For the six months ended July 31, 2025:

Reasons, related assets and allowance

(in millions of yen)

Related assets, etc.

Reason

Allowance for temporary

difference adjustments

Buildings in trust, etc.

Excess of depreciation allowance

￥ 37

Reasons, related assets and reversal

(in millions of yen)

Related assets, etc.

Reason

Allowance for temporary

difference adjustments

Buildings in trust, etc.

Reversal of excess of depreciation

allowance

￥ 506

Method of reversal

(1) Buildings in trust

The allowance will be reversed corresponding to disposal of the buildings in the future.

For the six months ended January 31, 2026:

Reasons, related assets and allowance

(in millions of yen) (in thousands of U.S. dollars)

Related assets, etc.

Reason

Allowance for temporary

difference adjustments

Allowance for temporary

difference adjustments

Buildings in trust, etc.

Excess of depreciation allowance

￥ 30

＄ 197

Reasons, related assets and reversal

(in millions of yen) (in thousands of U.S. dollars)

Related assets, etc.

Reason

Allowance for temporary

difference adjustments

Allowance for temporary

difference adjustments

Buildings in trust, etc.

Reversal of excess of depreciation

allowance

￥ -

＄ -

Method of reversal

(1) Buildings in trust

The allowance will be reversed corresponding to disposal of the buildings in the future.

Note 13 － Revenue Recognition

Information on the breakdown of revenue from contracts with customers for the six months ended July 31, 2025 and January 31, 2026 is as follows:

For the six months ended July 31, 2025:

Revenue from contracts with customers(1)

Sales to external customers(2)

(in millions of yen)

Sales of property ￥

Common area charges........................................................................................................

Others...................................................................................................................................

Total ￥

2,625 ￥

1,343

4,000 ￥

1,013

1,343

20,350

22,708

For the six months ended January 31, 2026:

Revenue from contracts with customers(1)

Sales to external customers(2)

(in millions of yen)

(in thousands of U.S. dollars)

(in millions of yen)

(in thousands of U.S. dollars)

Sales of property ￥	11,575	＄	75,328	￥	3,188	＄	20,748
Common area charges........................................................................................................	1,235		8,042		1,235		8,042
Others...................................................................................................................................	31		202		19,598		127,547
Total ￥	12,841	＄	83,573	￥	24,023	＄	156,338
Notes:

Rent revenues subject to the "Accounting Standard for Lease Transactions" (Accounting Standards Board of Japan Statement No.13) and sale of property subject to the "Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Using Special Purpose Companies" (Transferred Guidance, No.10) are excluded from "Revenue from contracts with customers" as such revenues are not subject to Accounting Standard for Revenue Recognition. Revenue from contracts with customers mainly represents revenues from sales of property and common area charges.
Sales of property are recorded as gain (loss) on sales of property in the statements of Income and retained earnings pursuant to Article 48, Paragraph 2 of the Regulations on Accounting of Investment Corporations (Cabinet Office Order No. 47 of 2006). Accordingly, the sales to external customers shows the amount obtained by deducting cost of sales of property and other sales expenses proceeds from sales of property.

Information to understand amounts of revenues for the current fiscal period and future fiscal periods is as follows:

Balance of contract assets and contract liabilities, etc.

For the six months ended

July 31, January 31, January 31,

2025 2026 2026

(in thousands of

(in millions of yen) U.S. dollars)

Receivables generated from contracts with customers (balance at beginning of fiscal period) ￥	586	￥	684	＄	4,453
Receivables generated from contracts with customers (balance at end of fiscal period).......................	684		516		3,362
Contract assets (balance at beginning of fiscal period).............................................................................	-		-		-
Contract assets (balance at end of fiscal period)........................................................................................	-		-		-
Contract liabilities (balance at beginning of fiscal period)........................................................................	-		-		-
Contract liabilities (balance at end of fiscal period)...................................................................................	-		-		-

Transaction value allocated to remaining performance obligations

As of July 31, 2025, transaction value allocated to remaining performance obligations regarding sales of property was ¥5,250 million related to a property signed disposition contract on July 30, 2025. Revenue from the remaining performance obligations will be recognized when the delivery of the property completed or scheduled on August 1, 2025, June 1, 2026 and August 3, 2026.

As of January 31, 2026, transaction value allocated to remaining performance obligations regarding sales of property was ¥3,675 million (US$23,916 thousand) and ¥11,372 million (US$74,007 thousand) related to a property signed disposition contract on July 30, 2025 and December 4, 2025, respectively. Revenue from the remaining performance obligations will be recognized when the delivery of the property completed or scheduled on March 17, 2026, June 1, 2026, August 3, 2026 and October 30, 2026.

With regard to common area charges, as the Company has the right to receive from customers an amount directly corresponding to the value for the lessees, who are customers, of sections for which performance is complete by the end of the fiscal period, the amount it has the right to claim is recognized as revenue in accordance with Paragraph 19 of the Implementation Guidance on Accounting Standard for Revenue Recognition. Accordingly, such is not included in the note on transaction value allocated to remaining performance obligations through application of the provisions of Paragraph 80-22 (2) of the Accounting Standard for Revenue Recognition.

Note 14 － Rent Revenue－Real Estate and Expenses Related to Property Rental Business

Rent revenue－real estate and expenses related to property rental business for the six months ended July 31, 2025 and January 31, 2026 consist of the following:

For the six months ended

July 31,

January 31,

Rent revenue－real estate:

2025 2026

(in millions of yen)

2026

(in thousands of U.S. dollars)

Rental and parking revenue................................................................ ￥ 18,715 ￥ 19,119 ＄ 124,426

Common area charges......................................................................... 1,343 1,235 8,042

Other..................................................................................................... 1,276 108 703

Total rent revenue-real estate............................................................. ￥ 21,335 ￥ 20,463 ＄ 133,172

Expenses related to property rental business:

Property management fees ￥	114	￥	126	＄	824
Facility management fees....................................................................	1,643		1,657		10,789
Utilities..................................................................................................	1,822		1,787		11,634
Property-related taxes.........................................................................	1,583		1,647		10,718
Insurance..............................................................................................	76		75		493
Repair and maintenance......................................................................	1,630		929		6,051
Depreciation.........................................................................................	2,654		2,755		17,930
Trust fees...............................................................................................	33		34		224
Leasehold rents....................................................................................	502		516		3,363
Other.....................................................................................................	7		28		185

Total expenses related to property rental business........................... ￥ 10,069 ￥ 9,560 ＄ 62,217

Operating income from property leasing activities....................... ￥ 11,265 ￥ 10,902 ＄ 70,954

Note 15 － Gain on Sales of Property

Information on gain on sales of property is as follows:

For the six months ended July 31, January 31, January 31,

2025 2026 2026

(in thousands of

(in millions of yen)

U.S. dollars)

Proceeds from sale of property ￥	2,625	￥	11,575	＄ 75,328
Cost of property...............................................................	1,593		7,978	51,921
Other sales expenses.......................................................	17		408	2,657

Gain on sales of property, net......................................... ￥ 1,013 ￥ 3,188 ＄ 20,748

Note 16 － Income Taxes

The Company is subject to corporate income taxes in Japan. The Company may deduct from its taxable income the amounts distributed to its unitholders, provided the requirements are met under the Special Taxation Measures Act of Japan. Under this act, the Company must meet a number of tax requirements, including a requirement to distribute in excess of 90% of distributable profit for the fiscal period in order to be able to deduct such amounts. If the Company does not satisfy all of the requirements, the entire taxable income of the Company will be subject to regular corporate income taxes in Japan.

The Company has a policy of making distributions in excess of 90% of its distributable profit for the fiscal period to qualify for conditions set forth in the Special Taxation Measures Act of Japan to achieve a deduction of distributions for income tax purposes and it distributes approximately 100% of distributable profit. Hence, the Company has treated the distributions as a tax allowable deduction as defined in the Special Taxation Measures Act of Japan.

A reconciliation of the Company's effective tax rates and statutory tax rates is as follows:

For the six months ended

July 31, January 31,

2025 2026

(Rate)

Statutory tax rates......................................................................................	31.46%	31.46%
Deductible cash distributions....................................................................	(29.84)	(31.57)
Other...........................................................................................................	(1.62)	0.11

Effective tax rates........................................................................................ 0.01% 0.01%

Deferred tax assets consist of the following:

		As of
July 31,		January 31,		January 31,
2025		2026		2026
(in millio		ns of yen)		(in thousands of U.S. dollars)
Deferred tax assets: Asset retirement obligations ￥	309	￥	310	＄	2,018
Subtotal................................................................................................	309		310		2,018
Valuation allowance............................................................................	(309)		(310)		(2,018)
Total ￥	-	￥	-	＄	-
Net deferred tax assets ￥	-	￥	-	＄	-

Note 17 － Leases

As lessor; Operating leases - Lease rental revenues

The Company leases its properties mainly to corporate tenants. Future minimum rental revenues pursuant to existing rental contracts as of July 31, 2025 and January 31, 2026 scheduled to be received are summarized as follows:

As of July 31, January 31, January 31,

2025	2026	2026
(in millions of	yen)	(in thousands of U.S. dollars)
Due within one year...................................................................................... ￥ 24,791 ￥	23,483	＄ 152,825
Due after one year 217,322	215,357	1,401,517

Total.............................................................................................................. ￥ 242,113 ￥ 238,840 ＄ 1,554,342

Note 18 － Financial Instruments

Qualitative and quantitative information for financial instruments for the six months ended July 31, 2025 and January 31, 2026 was as follows:

Qualitative information for financial instruments
1. Policy for financial instrument transactions
  The Company raises funds through loans payable, the issuance of investment corporation bonds or investment units for the acquisition of real estate properties, expenditures on property maintenance and/or repayment of existing debt. Surplus funds are managed carefully through investment in financial instruments taking into account liquidity and safety in light of the current financial market condition. Derivative instruments are used only for hedging purposes and not for speculation.
2. Nature and extent of risks arising from financial instruments and risk management
  The funds raised through loans payable or issuance of investment corporation bonds are mainly used to acquire real estate properties or properties in trust, and for the repayment of existing loans payable or investment corporation bonds. Although loans payable with floating interest rates are subject to fluctuations in market interest rates, the Asset Manager manages interest fluctuation risk by monitoring market interest rates and measuring the effect on the results of operation of the Company. In addition, a certain portion of loans payable with floating interest rates is hedged by derivative instruments (interest rate swaps) as hedging instruments. The hedge effectiveness of the interest rate swaps is assessed by comparing the cumulative changes in the cash flows of the hedging instruments and the hedged items. When the interest rate swaps meet specific criteria required for the special treatment provided under Japanese GAAP, the assessment of hedge effectiveness is not performed. The Company uses derivative instruments in accordance with its risk management policy and internal rules.
  Liquidity risks relating to loans payable and investment corporation bonds are managed by preparing monthly plans for funds, maintaining high liquidity and entering into commitment line agreements with banks.
3. Supplemental information on fair value of financial instruments
  The fair value of financial instruments is estimated by using valuation techniques which contain various assumptions. If other valuation models or assumptions were used, the estimated fair value may differ.
Matters concerning the fair value, etc. of financial instruments

The following table shows the carrying amounts, fair value and valuation differences of financial instruments for which fair value is available as of July 31, 2025 and January 31, 2026. Information on cash and bank deposits, those in trust and short-term loans payable is omitted because the carrying amounts approximate their fair value due to their short maturities. Also, information on tenant leasehold and security deposits and those in trust is omitted as immaterial.

As of

July 31, 2025 January 31, 2026 January 31, 2026

Carrying amounts

Fair value

Difference

Carrying amounts

Fair value

Difference

Carrying amounts

Fair value

Difference

Liabilities:

Current portion of investment
(in millions of yen) (in thousands of U.S. dollars)
corporation bonds - unsecured.. ￥ - ￥ - ￥ - ￥ 3,000 ￥ 2,972 ￥ (27) ＄ 19,523 ＄ 19,346 ＄ (177)
Current portion of long-term
loans payable................................ 26,300 26,317 17 25,900 25,879 (20) 168,553 168,420 (133)
Investment corporation
bonds－unsecured....................... 15,200 14,260 (939) 12,200 11,039 (1,160) 79,396 71,844 (7,551)
Long-term loans payable.................... 237,733 234,947 (2,785) 240,233 231,554 (8,678) 1,563,406 1,506,926 (56,479)
Total............................................ ￥ 279,233 ￥ 275,525 ￥ (3,707) ￥ 281,333 ￥ 271,446 ￥ (9,886) ＄ 1,830,879 ＄ 1,766,537 ＄ (64,342)
Derivative instruments..................... ￥ 3 ￥ 3 ￥ - ￥ 1 ￥ 1 ￥ - ＄ 11 ＄ 11 ＄ -
Note (1): The methods and assumptions used to estimate fair value are as follows:
Liabilities
1. Current portion of investment corporation bonds - unsecured and (3) Investment corporation bonds－unsecured The fair value is the quoted price provided by a financial market information provider.
2. Current portion of long-term loans payable and (4) Long-term loans payable
  Long-term loans payable with floating interest rates reflecting changes in market rates within a short term period are stated at their carrying amounts as their carrying amounts approximate their fair values. When long-term loans payable with floating interest rates are hedged by interest rate swaps which qualify for hedge accounting and meet special criteria, the fair value of the hedged long-term loans payable is determined based on the present value of contractual cash flows in conjunction with the hedging interest rate swaps discounted at current market interest rates which would be applicable to new loans payable under the same conditions and terms. The fair value of long-term loans payable with fixed interest rates is determined based on the present value of contractual cash flows discounted at current market interest rates which would be applicable to new loans payable under the same conditions and terms.
  Derivative instruments
  The fair value of the interest rate swaps subject to deferred hedge accounting method is evaluated separately using the fair value estimated by the counterparty to the interest rate swap contracts based on market interest rates and other assumptions. The fair value of the interest rate swaps subject to special treatment for hedge accounting of interest rate swaps under Japanese GAAP is included in that of the hedged long-term loans payable as noted above. Please refer to "Note 19 －Derivative Instruments" for further information on the interest rate swaps.
  Note (2): Non-marketable investment securities
  Shares of subsidiaries and associates are not subject to fair value disclosure in accordance with Paragraph 5 of the "Implementation Guidance on Disclosures about Fair Value of Financial Instruments" (Accounting Standards Board of Japan Guidance No. 19 revised on March 31, 2020).
  The net book values of shares of subsidiaries and associates are ¥356 million and ¥356 million (US$2,322 thousand) as of July 31, 2025 and January 31, 2026, respectively.
  Note (3): Investments in Tokumei Kumiai agreement
  For equity interests in Tokumei Kumiai agreement, notes relating to the matters stipulated in Paragraph 4, item 1 of the "Implementation Guidance on Disclosures about Fair Value of Financial Instruments" (Accounting Standards Board of Japan Guidance No.19 revised on March 31, 2020) are omitted as the Investment Corporation applies the treatment stipulated in Paragraph 24-16 of the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (Accounting Standards Board of Japan Guidance No.31 issued on June 17, 2021).
  The net book values of equity interests in Tokumei Kumiai are ¥18,463 million and ¥18,703 million (US$121,719 thousand) as of July 31, 2025 and January 31, 2026, respectively.
  Note (4): Cash flow schedule of interest-bearing financial liabilities after the balance sheet date
  As of July 31, 2025:
  Up to 1 year 1-2 years 2-3 years 3-4 years
  (in millions of yen)
  4-5 years
  Over 5 years
  Investment corporation bonds－unsecured.......................................... ￥ - ￥ 3,000 ￥ 3,000 ￥ - ￥ 2,500 ￥ 6,700 Long-term loans payable............................................................................... 26,300 24,300 26,800 29,183 30,400 127,050 Total........................................................................................................................ ￥ 26,300 ￥ 27,300 ￥ 29,800 ￥ 29,183 ￥ 32,900 ￥ 133,750
  As of January 31, 2026:
  Investment corporation bonds－unsecured.......................................... ￥ 3,000 ￥ 3,000 ￥ - ￥ 2,500 ￥ - ￥ 6,700 Long-term loans payable............................................................................... 25,900 23,600 31,409 33,174 35,400 116,650 Total........................................................................................................................ ￥ 28,900 ￥ 26,600 ￥ 31,409 ￥ 35,674 ￥ 35,400 ￥ 123,350
  Up to 1 year 1-2 years 2-3 years 3-4 years 4-5 years Over 5 years
  (in thousands of U.S. dollars)
  As of January 31, 2026:
  Investment corporation bonds－unsecured.......................................... ＄ 19,523 ＄ 19,523 ＄ - ＄ 16,269 ＄ - ＄ 43,602 Long-term loans payable............................................................................... 168,553 153,585 204,405 215,892 230,378 759,143 Total........................................................................................................................ ＄ 188,077 ＄ 173,109 ＄ 204,405 ＄ 232,161 ＄ 230,378 ＄ 802,746
  Note 19 － Derivative Instruments
  Information on derivative transactions undertaken by the Company as of July 31, 2025 and January 31, 2026 was as follows. Derivative instruments are used only for hedging purposes and are subject to hedge accounting.
  As of July 31, 2025
  Method of hedge accounting
  Type of derivatives
  Hedged item
  Notional amounts(1) Total Over 1 year
  Fair value(2)
  (in millions of yen)
  Deferred hedge accounting
  Special treatment for hedge
  Interest rate swap (Floating-rate to fixed-rate interest)
  Interest rate swap
  Long-term loans payable ￥
  Long-term loans
  800 ￥
  - ￥ 3

accounting of interest rate swaps

(Floating-rate to fixed-rate interest)

payable

4,000 3,000 Note

Total.................................................................................................. ￥ 4,800 ￥ 3,000 ￥ 3(3)

As of January 31, 2026

Method of hedge	Type of		Notional amounts(1)	Fair	Notional amounts(1)	Fair
accounting	derivatives	Hedged item	Total Over 1 year	value(2)	Total Over 1 year	value(2)

(in millions of yen) (in thousands of U.S. dollars)

Interest rate swap

Deferred hedge accounting (Floating-rate to

fixed-rate interest)

Long-term

loans payable ￥

800 ￥

- ￥ 1 ＄

5,206 ＄

- ＄ 11

Special treatment for hedge accounting of interest rate swaps

Interest rate swap (Floating-rate to fixed-rate interest)

Long-term loans payable

4,000 3,000 Note

(3)

26,031 19,523 Note

(3)

Total.................................................................................................. ￥ 4,800 ￥ 3,000 ￥ 1(3) ＄ 31,237 ＄ 19,523 ＄ 11(3)

Notes:

The notional amounts do not represent the market risk exposure associated with the derivative instruments.
The fair value is estimated by the counterparty to the interest rate swaps contracts by using market interest rates and other assumptions.
As disclosed in "Note 2 - Summary of Significant Accounting Policies (i) Hedge Accounting", the Company applies the special treatment provided under Japanese GAAP for the interest rate swaps which qualify for hedge accounting and meet specific criteria, under which only the interest received or paid under swap contracts, and not the fair value of the derivative, can be determined separately from the hedged asset or liability. Consequently, the fair value of the interest rate swaps as the hedging instruments and the long-term loans payable as the hedged items is calculated together as one and disclosed as such under Note (1) in "Note 18 － Financial Instruments (b) Matters concerning the fair value, etc. of financial".