United Urban Investment CorporationTSE: 8960

41st Fiscal Period (Dec.1, 2023 - May 31, 2024) Summary ofFinancial Report

Jul 19, 2024 at 6:40 AM UTC · Issued by United Urban Investment Corporation

For Translation Purposes Only

July 19, 2024

SUMMARY OF FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED

May 31, 2024 (December 1, 2023 - May 31, 2024)

Name of issuer:	United Urban Investment Corporation (United Urban)
Listing:	Tokyo Stock Exchange
Securities code:	8960
URL:	https://www.united-reit.co.jp/en/
Representative:	Kenmin Asatani, Executive Officer
Asset Management Company:	Marubeni REIT Advisors Co., Ltd. (MRA)
Representative:	Junichi Batai, President and Chief Executive Officer
Inquiries:	Shuichi Kamizono, Chief Financial Officer
	TEL: +81-3-5402-3680
Scheduled date of filing of Securities Report:	August 28, 2024
Scheduled date for commencing dividend payments:	August 15, 2024
Supplementary Materials on Financial Results:	Scheduled
Financial Results Conference:		Scheduled (for analysts and institutional investors (Japanese language only))

(Amounts are rounded down to the nearest millions of yen, unless otherwise indicated)

1. Performance for the Fiscal Period Ended May 31, 2024 (December 1, 2023 - May 31, 2024)

(1) Business Results

(Percentage figures show the increase/decrease rate compared to the previous period)

	Operating Revenues	Operating Income	Ordinary Income	Net Income

	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Fiscal period ended	25,981		2.5	12,215	7.1	11,170	7.7	11,169	7.7
May 31, 2024

Fiscal period ended	25,356		1.2	11,408	4.6	10,370	4.4	10,369	4.4
November 30, 2023


	Net Income per Unit	Return on Equity	Return on Assets	Ordinary Income to
	Operating Revenues

Fiscal period ended	Yen			%		%	%
3,604		3.1		1.5		43.0
May 31, 2024

Fiscal period ended	3,346		2.9		1.4		40.9
November 30, 2023

(2) Distributions

	Cash	Total Cash	Distributions in	Total Distributions		Distribution
	Distributions
	Distributions	Payout Ratio	Ratio to
	per Unit	Excess of Earnings	in Excess of
	(excluding excess	Unitholders'
	(excluding excess	per Unit	Earnings
	of earnings)		Equity
	of earnings)

Fiscal period ended	Yen	Millions of yen	Yen	Millions of yen	%	%
3,629	11,244	－	－	100.6	3.1
May 31, 2024

Fiscal period ended	3,371	10,445	－	－	100.7	2.9
November 30, 2023

Notes: 1. "Payout Ratio" is rounded down to the nearest one decimal place.

2. The resource for cash distributions for the fiscal period ended November 30, 2023 and the fiscal period ended May 31, 2024 was the result of adding a reversal of reserve for temporary difference adjustments (¥77 million) to the net income, respectively. Therefore, it differs from "net income" of each fiscal period.
Financial Position

	Total Assets	Total Unitholders'	Equity Ratio	Net Asset per Unit
	Equity (Net Asset)

Fiscal period ended	Millions of yen	Millions of yen	%	Yen
734,420	361,801	49.3	116,763
May 31, 2024

Fiscal period ended	727,227	360,800	49.6	116,440
November 30, 2023

(4) Conditions of Cash Flows

	Cash Flows from	Cash Flows from	Cash Flows from	Cash and Cash
	Equivalents at the End
	Operating Activities	Investing Activities	Financing Activities
	of the Period

Fiscal period ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
14,012	(7,942)	(5,444)	63,891
May 31, 2024

Fiscal period ended	14,513	(5,398)	(6,586)	63,266
November 30, 2023

2. Forecasts of Results for the Fiscal Period Ending November 30, 2024 (June 1, 2024 - November 30, 2024) and the Fiscal Period Ending May 31, 2025 (December 1, 2024 - May 31, 2025)

(Percentage figures show the increase/decrease rate compared to the previous period)

												Cash	Distributions
		Operating									Distributions
		Operating Income	Ordinary Income	Net Income	per Unit	in Excess of
		Revenues	Earnings per
										(excluding excess
												of earnings)	Unit

		Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen		%	Yen	Yen
	Fiscal period ending	27,980	7.7	13,613		11.4	12,418	11.2	12,417		11.2	3,830	－
	November 30, 2024

	Fiscal period ending	26,607	(4.9)	12,372		(9.1)	11,012	(11.3)	11,012		(11.3)	3,680	－
	May 31, 2025

[Reference] Estimated net income per unit (full business year):
	Fiscal period ending November 30, 2024 ¥4,007		Fiscal period ending May 31, 2025	¥3,553

Note: The resource for cash distributions for the fiscal period ending November 30, 2024 is the result of deducting a provision of reserve for reduction entry (¥627 million) from the net income and adding a reversal of reserve for temporary difference adjustments (¥77 million) to the net income. Therefore, it differs from "net income" of the fiscal period. The resource for cash distributions for the fiscal period ending the fiscal period ending May 31, 2025 is the result of adding a reversal of reserve for reduction entry (¥313 million) and a reversal of reserve for temporary difference adjustments (¥77 million) to the net income. Therefore, it differs from "net income" of the fiscal period.

＊Other

Change in Accounting Policies, Change in Accounting Estimate, and Restatement
1. Changes in accounting policies in accordance with a revision of the accounting rules: Not Applicable
2. Changes in accounting policies other than 1, above: Not Applicable
3. Changes in accounting estimate: Not Applicable
4. Restatement: Not Applicable
Total Number of Investment Units Issued and Outstanding

Total number of investment units issued at the end of the fiscal period (including own investment units)
Number of own investment units at the end of the fiscal period

As of May 31, 2024	3,098,591 units	As of November 30, 2023	3,098,591 units

As of May 31, 2024	0 units	As of November 30, 2023	0 units

Note: For the number of investment units used as the basis for the calculation of net income per unit, please refer to "Notes to Pe r Unit Information" on page 30.

Rounding of Fractions of Amounts and Ratios
Unless otherwise specifically indicated, amounts in this report have been rounded down to the units stated and the ratios have been rounded to the nearest one decimal place.
- This report ("Brief Report on the Closing of Accounts" (Kessan-Tanshin)) is not subject to audits by a certified public accountant or an audit corporation.
- Special Notes

Forward-looking statements contained in this material are our current expectations produced as of the date hereof, based on certain assumptions. Accordingly, the actual operating revenues, operating income, ordinary income, net income, cash distributions per unit and distributions in excess of earnings per unit may differ from forecasts because of future acquisitions and sales of properties, real estate market trends and changes in other situations concerning United Urban. In addition, forward-looking statements are not guarantees of payment of any cash distributions by United Urban. For details of the assumptions made, please refer to the "Assumptions for the Forecast of Financial Results for the Fiscal Period Ending November 30, 2024 (42nd fiscal period: from June 1, 2024 to November 30, 2024) and the Fiscal Period Ending May 31, 2025 (43rd fiscal period: from December 1, 2024 to May 31, 2025)" on page 11.

DISCLAIMER

This is an English-language translation of original Japanese document "the Brief Report on the Closing of Accounts" (Kessan-Tanshin) for the fiscal period ended May 31, 2024. This translation is provided for information purpose only and is not intended to constitute a statutory document for an offer to sell, or seeking an offer to buy, any securities of United Urban. United Urban makes no assurance or warranty with respect to the completeness or accuracy of this English translation; the Japanese versions of the Kessan- Tanshin should always be referred to as the originals of this document.

Table of Contents

1. Management Status	………………………………………………………………………………	5
Management Status	………………………………………………………………………………	5

2. Financial Statement ………………………………………………………………………………. 14

Balance Sheet ……………………………………………………………………………….... 14
Statement of Income and Retained Earnings ……………………………………………….... 16

(3) Statements of Unitholders' Equity ……………………………………………………………. 17

Statements of Cash Distribution ……………………………………………………………. 19
Statements of Cash Flows …………………………………………...……………………..... 20
Notes to Assumption of Going Concern ……………………………………………………. 21
Notes to Important Accounting Policies ……………………………………………………. 21

(8)	Notes to Financial Statements ………………………………………………………………	22
(9)	Change in Total Number of Investment Units Issued and Outstanding ………………………	32
3. Reference Information ……………………………………………………………………………	33
(1)	Information on the Price of Assets under Management, etc. …………………………………	33

Capital Expenditures …………………………………………………………………………. 44

1. Management Status

Management Status

1. Overview during the period

a. Investment environment and operation

(i) Investment environment

Japanese monetary policy has been normalized with an interest rate hike for the first time in 17 years, following the lifting of the negative interest rate policy in March 2024. The stock market continued to rise with the Nikkei Stock Average hitting an all-time high, backed by corporate efforts to improve ROE and expectations for a transition to an inflationary economy due to a policy change by the Bank of Japan ("BOJ"). While there were signs that private consumption lacks strength, the Japanese economy was generally on a recovery trend during this period thanks to increases in corporate capital expenditures and the number of overseas visitors to Japan as well as improvements in the employment and wage environments. On the other hand, it is still necessary to pay close attention to continuing uncertainties resulting from the depreciation of the Japanese yen due to the robust economy in the United States and the outcome of their upcoming presidential election, as well as the surge in energy and raw material prices due to international affairs.

Financial markets, which are closely related to the real estate investment market, have fluctuated amid continuing uncertainty regarding the outlook for the interest rate policy, as expectations of additional interest rate hikes by the BOJ and postponement of the start of the FRB's rate cuts have grown. However, the real estate investment market has remained highly competitive, particularly among domestic investors who continue to show a strong appetite for investment.

Similar to the last period, the real estate leasing market in Japan remained strong across the board during this period.

The hotel sector has seen a recovery trend in both the room occupancy rate and room rates, owing to continued domestic demand and the increasing number of overseas visitors to Japan. As a result, RevPAR (Note) has already exceeded the pre-pandemic level at many hotels.

In retail facilities, both service and product sales have been steady thanks to a revitalization of economic activity and a recovery in demand from overseas visitors, and tenants' performance has been resilient overall.

In the office market, the decrease in demand attributed to employees working more often remotely, as seen in Europe and the United States, has not been observed in Japan. The impact of the significant new supply of large- scale office buildings in central Tokyo has been stabilized at the mid-5% range due to relocation demand for the purpose of expanding office areas and improving the office location. Rents in the Tokyo business district have continued to be on an upward trend.

Residential demand remains strong, and the occupancy rates as well as rents have been stable across the country.

In the logistics (warehouse) market, supply is continuing to grow in areas near major cities nationwide, including the Tokyo Metropolitan Area. While the occupancy rates have been trending downward, rents have remained flat.

Note: RevPAR (Revenue Per Available Room) means hotel sales per marketable guest rooms per day calculated by "Hotel sales from guest rooms per day / the number of marketable guest rooms."

(ii) New acquisition and sale of property

During the period, United Urban acquired the following two properties.

Property	Property Name	Type	Location	Acquisition Price	Acquisition Date
(Millions of yen)
No.	(Note 1)
		(Note 2)

B51	Toranomon Hills Business Tower	Office	Minato-ku, Tokyo	8,435	February 1, 2024
(Note 3)

B50	OSAKA BAY TOWER	Office	Osaka, Osaka	2,637	March 28, 2024
(additional acquisition) (Note 4)

	Total			11,072

On the other hand, during the period, United Urban sold the following two properties.

Property	Property Name	Type	Location	Sale Price	Date of Sale
(Millions of yen)
No.	(Note 1)
		(Note 2)

E2	Fuchu Building (Land) (Note 5)	-	Fuchu, Tokyo	2,000	January 31, 2024

A33	Plussing Wave Enoshima	Store,	Fujisawa,	2,150	March 29, 2024
Clinic	Kanagawa

	Total			4,150

Notes: 1. Of the types of use indicated in the real estate register, the primary type is stated. The same shall apply hereinafter.

1. The acquisition price and the sale price are stated based on the prices stated in the purchase and sale agreements, etc. concerning the acquisition or sale of each property. The acquisition price is rounded to the nearest whole unit. In addition, the amount of each price does not include expenses related to the acquisition or sale and consumption tax, etc. The same shall apply hereinafter.
2. United Urban acquired the compartmentalized ownership of the eighth floor of Toranomon Hills Business Tower and co- ownership of the site thereof (total ratio of co-ownership: 3.05%).
3. The acquisition asset is 10% quasi co-ownership of the trust beneficial interest of the compartmentalized ownership in a part of OSAKA BAY TOWER (55.4% of the entire property), and the ratio of the acquisition asset to the entire property is 5.54%. As United Urban holds 20% quasi co-ownership of the trust beneficial interest including the existing holding, 11.08% of the ownership ratio of the entire property belongs to United Urban.
4. The sale price of Fuchu Building shows the sale price of the land portion of the property. The building portion was sold on March 31, 2022.
Portfolio overview

As a result of the acquisition and sale of properties mentioned above (ii), United Urban held a total of 140 properties, comprising 36 retail properties, 35 office buildings, 2 retail-office complex, 21 hotels, 2 office-hotel complexes, 25 residential properties and 19 others, with an aggregate acquisition price of ¥698,240 million at the end of the 41st fiscal period (as of May 31, 2024). In addition, the total leasable floor space was 1,628,283.16 sq. m. and the total numbers of tenants were 2,994.

United Urban has continued to focus on maintaining occupancy rates during the period. Thereby, the occupancy rate for the entire portfolio at the end of each month during the period fluctuated between 98.9% and 99.2%, and stood at 98.9% at the end of the 41st fiscal period (as of May 31, 2024).

(iv) Sustainability initiatives

United Urban and MRA support the UN's Sustainable Development Goals (SDGs), aiming to realize a sustainable, diverse, and inclusive society through initiatives that help resolve environmental, social, and economic problems and create new value ("Sustainability Activities"). Furthermore, we have set following reduction targets:

reduce Scope 1 and Scope 2 GHG emissions by 42% by 2030 (compared with 2021)
achieve net zero GHG emissions, including within the value chain (Scope 3), by 2050.

For our climate change initiatives, United Urban and MRA have set a medium-term target for the environment certification coverage rate for 80% of the properties in United Urban's portfolio based on gross floor area, (excluding land) by the end of 2024, and have achieved 83.9%, exceeding our target, as of May 31, 2024. Moreover, as a result of our Sustainability Activities, in the 2023 survey of the GRESB Real Estate Assessment, an international benchmark for measuring ESG integration of real estate companies and funds, United Urban received 4 Stars in the five-level GRESB Rating (the second-highest level). Moreover, in the results for GRESB Public Disclosure Level Assessment, United Urban received the highest level: A.

MRA expressed support for the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures) in January 2022. A cross-organizational team representing MRA departments conducted a scenario analysis of climate risks and opportunities for United Urban's portfolio. The team followed the TCFD's recommendations, then disclosed the result of their analysis on the sustainability website (https://uur- sustainability.com/en/sustainability/).

b. Financing overview

During the period, United Urban procured debt financing for acquiring specified assets and the repayment of interest-bearing liabilities.

The status of interest-bearing liabilities at the end of the previous period and the end of the 41st fiscal period are as follows.

					(Millions of yen)
			Balance at the end of the	Balance at the end of the
			40th Fiscal Period	41st Fiscal Period	Changes
			(As of November 30, 2023)	(As of May 31, 2024)
		Short-term borrowings	4,000	3,000	-1,000
		Long-term borrowings	288,353	294,353	+6,000
		(borrowings due for repayment	(28,050)	(33,450)	(+5,400)
		within one year)

	Total of borrowings	292,353	297,353	+5,000
	Corporate bonds	31,500	31,500	-
	(corporate bonds that is to become	(-)	(2,000)	(+2,000)
	due for maturity within one year)

Total of interest-bearing liabilities	323,853	328,853	+5,000

Moreover, the details of ratings of United Urban as of June 30, 2024 are as follows.

Rating Agency	Details

Japan Credit Rating Agency Ltd.	Long-Term Issuer Rating: AA	Rating Outlook: Stable

c. Overview of financial results and distribution

As for financial result of the fiscal period, United Urban achieved operating revenues of ¥25,981 million (up by 2.5% from the previous period), profit from rental activities of ¥14,504 million (up by 7.2% from the previous period), operating income of ¥12,215 million (up by 7.1% from the previous period), ordinary income of ¥11,170 million (up by 7.7% from the previous period), and net income of ¥11,169 million (up by 7.7% from the previous period).

During the period under the review, United Urban added ¥77 million, which is a reversal of the reserve for temporary difference adjustments in accordance with "Ordinance on Accountings of Investment Corporations" and "Regulations Concerning Real Estate Investment Trusts and Real Estate Investment Corporations" stipulated by the Investment Trusts Association, Japan to ¥11,169 million of unappropriated retained earnings to distribute. As a result, United Urban decided to distribute ¥11,244 million, and cash distribution per unit was ¥3,629.

2. Outlook for the next fiscal period a. Outlook for overall operation

Uncertainty is expected to persist in politics and economics in Japan. However, the Japanese economy is anticipated to stay on a gradual recovery trend. Following the current period, the forecast is for both the investment and leasing markets to continue to be strong in the next period.

United Urban's portfolio is almost completely diversified, and profitability has been stabilized through investments across all asset types. The investment and leasing markets continue to be uncertain, but we believe that it is important to distinguish market conditions as well as to have steady profits from the entire portfolio by focusing on stable operations that can adapt to social changes.

Based on this understanding of the business environment, United Urban-while closely watching the trends in the real estate investment market-will take a proactive approach to a wide range of real estate investment opportunities and will continue with selective investments by applying varied methods as well as asset replacement. These initiatives should be effective for maintaining a high-quality portfolio. For existing properties, United Urban continually focuses on stable management by maintaining or increasing occupancy rates, renewing terms and conditions with the aim to raise rents, as well as the profitability and stability of the portfolio and reducing business costs, among other actions. Furthermore, United Urban intends to stabilize cash distributions by using retained earnings effectively.

Regarding financial management, United Urban is continuing to create a robust and sound financial base by controlling the LTV level, reducing the cost of financing, diversifying the maturities of interest-bearing liabilities, and ensuring adequate liquidity.

Looking at the sustainable growth of United Urban, including maximizing unitholder value, engaging with stakeholders, and coexisting with the environment and society, United Urban is dedicated not only to improving finances but also to resolving several of the nonfinancial issues associated with ESG (environment, society, and governance) as well as the UN's SDGs (Sustainable Development Goals).

b. Outlook for management status

Material facts arising after the end of 41st fiscal period and other material events A. Receipt of lump-sum payment due to tenant's departure

United Urban received lump-sum payment for cancellation due to the cancellation of the fixed-term lease agreement with the tenant of the following property.

Property name	Kawasaki Toshiba Building
Tenant name	Toshiba Electronic Devices & Storage Corporation
Leased area	36,142.30m2
Cancelled area	36,142.30m2 (cancelled area as a percentage of the property's total leasable area: 100%)
Cancellation date	June 1, 2024 (termination date: October 20, 2028)
Impact on profit and loss	United Urban plans to record temporary revenues of ¥1,466 million as operating revenue
	for the fiscal period ending the November 30, 2024.

B. Sale of property

United Urban concluded an agreement to sell the following property on March 27, 2024 and sold it on June 28, 2024.

Property name	Kawasaki Toshiba Building
Type of asset	Trust beneficial interest in real estate
Sale price	¥19,000 million
Date of agreement	March 27, 2024 (conclusion of the sale and purchase agreement of trust beneficial interest)
Date of sale	June 28, 2024
Buyer	Five domestic companies
	(the buyer does not fall under a related party of United Urban and MRA.)
Impact on profit and loss	United Urban plans to record gain on sales of real estate properties of ¥941 million as
	operating revenue for the fiscal period ending the November 30, 2024.

In addition, the reference information is as follows:

C. Acquisition of property and debt financing

1) United Urban acquired the following two properties.

Property	Property Name	Type	Location	Acquisition Price	Acquisition Date
No.	(Millions of yen)

C23	Randor Hotel Hiroshima Prestige	Hotel	Hiroshima,	2,580	June 3, 2024
Hiroshima

B49	IIDABASHI PLANO	Office	Chiyoda-ku,	383	June 26, 2024
(additional acquisition) (Note)	Tokyo

	Total			2,963

Note: United Urban acquired the compartmentalized ownership of a part of the 4th floor of the office building and a part of the 2nd floor of the retail building B and co-ownership of the site thereof (total ratio of co-ownership: 0.76%).

United Urban procured debt financing to support a part of the payment for acquiring Randor Hotel Hiroshima Prestige mentioned above 1), as set forth below. In addition, United Urban used cash on hand for the remaining amount to acquire the property and the amount to acquire IDABASHI PLANO (additional acquisition).

Title	Lender	Amount of	Interest Rate	Drawdown	Repayment	Remarks
Borrowing
Date	Date
		(Millions of yen)

Term Loan	The Hiroshima Bank, Ltd.	1,000	1.25057%	June 3, 2024	June 20, 2031	Unsecured
03D	Unguaranteed

D. New borrowing for repayment

United Urban procured debt financing on June 20, 2024 for the repayment of the existing borrowings (total: ¥10,550 million) upon their maturity on June 20, 2024, as set forth below.

Title	Lenders	Amount of	Interest Rate	Drawdown	Repayment	Remarks
Borrowing
Date	Date
		(Millions of yen)

Term Loan	Mizuho Bank, Ltd.	2,000	1.15434%		June 20, 2031
04D


Term Loan	Resona Bank, Limited	1,500	1.05250%
05D
(Green Loan)					June 20, 2030
Term Loan	Aozora Bank, Ltd.	1,000	1.03309%

06D
(Green Loan)
Term Loan	Sumitomo Mitsui Banking	1,650	0.93625%		June 20, 2029
07D		Unsecured
Corporation	June 20, 2024
(Green Loan)						Unguaranteed
			Basic interest
Term Loan	Sumitomo Mitsui Trust Bank,		rate
1,700	(JBA 1-month		June 20, 2031
08D	Limited
	JPY TIBOR)

			+ 0.27%
			Basic interest
Term Loan			rate
The Norinchukin Bank	2,700	(JBA 1-month		June 20, 2029
09D
		JPY TIBOR)

			+ 0.25%
	Total	10,550

E. New committed line of credit agreement

United Urban concluded a new committed line of credit agreement (Positive Impact Finance ("PIF") (Note)) on June 26, 2024, as set forth below.

Outline of the new committed line of credit agreement (PIF)

Participating financial institutions	Sumitomo Mitsui Trust Bank, Limited
	Mizuho Bank, Ltd.
	MUFG Bank, Ltd.
Maximum loan amount	¥24,000 million
Date of agreement	June 26, 2024
Term of agreement	From June 26, 2024 to June 26, 2025
Remarks	Unsecured, Unguaranteed

Note: The commitment line agreement is procured through PIF provided by Sumitomo Mitsui Trust Bank, Limited. PIF is a finance initiative which a financial institution comprehensively analyzes and evaluates the impacts (both positive and negative) which company' s activities have on the economy, society and the environment. In PIF, targets are set by the company to alleviate negative impacts and maximize positive ones. And the financial institution focuses on successive engagement with the company in order to ensure the realization of these targets by the company.

F. Early repayment of existing borrowing

United Urban decided on June 28, 2024 to use the proceeds from the sale of Kawasaki Toshiba Building mentioned above B. for early repayment of the borrowing, as set forth below.

(Term Loan 90C)

Lender	Sumitomo Mitsui Trust Bank, Limited
Balance of borrowing	¥3,000 million
Interest rate	Basic interest rate (JBA 1-month JPY TIBOR) + 0.17%
Drawdown date	November 22, 2023
Principal repayment date	November 20, 2024
Early repayment date	July 22, 2024
Repayment amount	¥3,000 million
Balance after repayment	- (full payment)
Remarks	Unsecured, Unguaranteed

G. Acquisition of property

United Urban decided to acquire the following property on July 19, 2024.

Property				Scheduled	Scheduled
Property Name	Type	Location	Acquisition Price
No.	Acquisition Date
			(Millions of yen)

B50	OSAKA BAY TOWER	Office	Osaka, Osaka	21,096	September 2,
(additional acquisition) (Note)	2024

Note: The asset to be acquired is 80% quasi co-ownership of the trust beneficial interest of the compartmentalized ownership in a part of OSAKA BAY TOWER (55.4% of the entire property), and the ratio of the asset to be acquired to the entire property is 44.32%. As United Urban will hold 100% quasi co-ownership of the trust beneficial interest including the existing holding, 55.4% of the ownership ratio of the entire property will belong to United Urban.

(ii) Outlook for management status

For the fiscal period ending November 30, 2024 (42nd fiscal period: from June 1, 2024 to November 30, 2024)

and the fiscal period ending May 31, 2025 (43rd fiscal period: from December 1, 2024 to May 31, 2025), the forecasts of financial results are estimated, as set forth below. For details of the assumptions for the forecasts, please refer to the "Assumptions for the Forecast of Financial Results for the Fiscal Period Ending November 30, 2024 (42nd fiscal period: from June 1, 2024 to November 30, 2024) and the Fiscal Period Ending May 31, 2025 (43rd fiscal period: from December 1, 2024 to May 31, 2025)" below.

Fiscal Period Ending November 30, 2024

Operating revenues:	¥27,980 million	Cash distributions per unit (Note 1):	¥3,830
Operating income:	¥13,613 million	Distributions in excess of earnings per unit:	¥－
Ordinary income:	¥12,418 million
Net income (Note 1):	¥12,417 million
Fiscal Period Ending May 31, 2025
Operating revenues:	¥26,607 million	Cash distributions per unit (Note 1):	¥3,680
Operating income:	¥12,372 million	Distributions in excess of earnings per unit:	¥－
Ordinary income:	¥11,012 million
Net income (Note 1):	¥11,012 million

Notes: 1. The resource for cash distributions for the fiscal period ending November 30, 2024 is the result of deducting a provision of reserve for reduction entry (¥627 million) from the net income and adding a reversal of reserve for temporary difference adjustments (¥77 million) to the net income. Therefore, it differs from "net income" of the fiscal period. The resource for cash distributions for the fiscal period ending May 31, 2025 is the result of adding a reversal of reserve for reduction entry (¥313 million) and a reversal of reserve for temporary difference adjustments (¥77 million) to the net income. Therefore, it differs from "net income" of the fiscal period. In addition, cash distributions per unit is based on the total number of investment units issued and outstanding of 3,098,591 units as of the date hereof, and it is based on the assumption that there will be no additional issuance of investment units until May 31, 2025.

2. The above-listedforward-looking statements are our current expectations produced as of the date hereof, based on certain assumptions. Accordingly, the actual operating revenues, operating income, ordinary income, net income, cash distributions per unit and distributions in excess of earnings per unit may differ from forecasts because of future acquisitions and sales of properties, real estate market trends and changes in other situations concerning United Urban. In addition, the forward- looking statements are not guarantees of the payment amount of any cash distributions by United Urban.