Industrial & Infrastructure Fund Investment : Financial Statements for the 30th Accounting Period (February 1, 2022 - July 31, 2022)

Industrial & Infrastructure Fund Investment Corporation

30th Period Asset Management Report

(Semi-Annual Report)

February 1, 2022 - July 31, 2022

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

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

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

KJR Management

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

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

Distribution Per Unit

 The 30th Fiscal Period (Result: February 1, 2022 - July 31, 2022)	3,100 yen
	The 31st Fiscal Period (Forecast: August 1, 2022 - January 31, 2023)	3,070 yen
	The 32nd Fiscal Period (Forecast: February 1, 2023 - July 31, 2023)	3,070 yen

Highlight of the 30th Period

				The 27th			The 28th			The 29th			The 30th			The 31st		The 32nd
										Period			Period		Period
				Period			Period			Period
										(Actual)			(Forecast)		(Forecast)
	Operating Revenue	13,892	15,349		16,493		17,194		17,922		16,583
	(million yen)
	Net Income			6,617			6,663			5,786			6,492			6,547			5,571
	(million yen)
	Total Asset	406,290	407,428		413,419		417,430		-		-
	(million yen)
	Distribution per Unit			3,201			3,266			3,060			3,100			3,070			3,070
	(yen)*
	Net Asset Value	91,812	91,842		91,387		91,476		-		-
	per Unit (yen)

* The figures include distribution in excess of profit.

Greetings

I would like to take this opportunity to express my sincere gratitude to all investors for your ongoing support. I also would like to express my deepest sympathy to those who have suffered from the novel coronavirus disease, as well as to their families and related persons.

This report provides an update on IIF's performance for the fiscal period ended July 31, 2022 (the 30th period). In the fiscal period, IIF acquired IIF Iruma Manufacturing Center (land with leasehold interest), IIF Tochigi Moka Manufacturing Center (land with leasehold interest) and disposed IIF Inzai Logistics Center. As a result, the number of properties under management at the end of the fiscal period was 75, and the AUM was 374.9 billion yen (on an acquisition price basis).

With regards to existing properties, IIF announced the redevelop project of IIF Hamura Logistics Center in March, 2022. The logistics facility over 30 years old will be redeveloped by utilizing surplus floor-area ratio and transformed into a versatile and latest logistics facility, with the aim of improving profitability. In addition, IIF continues to actively progress ESG initiatives, and as part of its efforts toward carbon neutral, following switchover at IIF Shonan Health Innovation Park last year, IIF has switched to electricity sourced from 100% renewable energy with Non-FIT & Non-Fossil certificate at IIF Sagamihara R&D Center.

As a result of these activities, the distribution per unit (including distribution in excess of profit) for the period was 3,100 yen. Currently, the Japanese economy should be closely monitored due to the impact of novel coronavirus pandemic, and the volatility of the capital markets, however, IIF will continue to strive for stable management and work to maximize unitholder value through continuous external and internal growth. I would like to look forward to your continuous support.

Kumi Honda

Executive Director

Industrial & Infrastructure Fund Investment Corporation

IIF Focus

Continuous improvement of asset value through acquisition of highly profitable properties by CRE proposal and promotion of redevelopment projects

Topics

• Commencement of redevelopment project at IIF Narashino Logistics Center I & II
• Completion and Acquisition of IIF Yokkaichi Logistics Center (New Building)
• Replacement of asset to be expected to decline profitability
• Establishment of the 4°C and 1.5°C scenarios as information disclosure based on the TCFD recommendations

Summary of the 30th Period (Fiscal Period Ended July 31, 2022)

In the period, due to the increase in rent revenues of IIF Iruma Manufacturing Center (land with leasehold interest) and IIF Tochigi Moka Manufacturing Center (land with leasehold interest) acquired in this fiscal period and the gain on sale from disposition of a property, operating revenue was 17,194 million yen (increase by 700 million yen from the previous period), and net income was 6,492 million yen (increase by 705 million yen from the previous period).

As a result, the distribution per unit increased by 40 yen from the previous period to 3,100 yen (including distribution in excess of profit of 168 yen per unit). Net asset value (NAV) per unit*1 increased by 3,269 yen from the previous fiscal period to 132,975 yen.

IIF's portfolio as of July 31, 2022 consists of 75 properties worth 374.9 billion yen (based on acquisition price) with a total leasable area of 2,578,861.08 m2 and an occupancy rate of 98.6%*2.

The average remaining lease term is 11.0 years, and based on these long-term lease agreements, we have secured stable management.

Prospect for the 31stPeriod (Fiscal Period Ending January 31, 2023), the 32nd Period (Fiscal Period Ending July 31, 2023) and Future Management Policies

We forecast an operating revenue of 17,922 million yen, net income of 6,547 million yen, a distribution per unit of 3,070 yen for the fiscal period ending January 31, 2023 (the 31st period) and an operating revenue of 16,583 million yen, net income of 5,571 million yen, a distribution per unit of 3,070 yen (including distribution in excess of profit of 379 yen) for the fiscal period ending July 31, 2023 (the 32nd period).

As the only J-REIT specializing in industrial properties*3, IIF has pioneered manufacturing facility, research & development facilities and infrastructure facilities based upon our unique Corporate Real Estate (CRE*4) proposals. As a result, we have acquired the properties with low competition and high growth potential.

IIF Yokkaichi Logistics Center (new building), a complex project that was acquired through CRE proposal in collaboration with the Kajima Group capturing the business expansion needs of a major logistics company, was completed and acquired in September 2022. In addition, the large-scale