Industrial & Infrastructure Fund Investment : Notice Concerning Revision of Forecast of Operating Results and Distributions for the July 2022 Fiscal Period and the January 2023 Fiscal Period

July 20, 2022

To all concerned parties:

Investment Corporation

Industrial & Infrastructure Fund Investment Corporation

(Tokyo Stock Exchange Company Code: 3249）

Representative:	Kumi Honda, Executive Director
	URL: https://www.iif-reit.com/english/
Asset Management Company
KJR Management
Representative:	Naoki Suzuki,
	President & Representative Director
Inquiries:	Hidehiko Ueda,
	Head of Industrial Division

TEL: [phone]

Notice Concerning Revision of Forecast of Operating Results and Distributions

for the July 2022 (30th) Fiscal Period and the January 2023 (31st) Fiscal Period

Industrial & Infrastructure Fund Investment Corporation ("IIF") announced today its revision to forecast of operating results and distributions for the July 2022 (30th) fiscal period (from February 1, 2022 to July 31, 2022) and forecast of operating results and distributions for the January 2023 (31st) fiscal period (from August 1, 2022 to January 31, 2023), announced in the "Summary of Financial Results" dated March 16, 2022. Details are as follows.

1. Revision of forecast of operating results and distributions for the fiscal period ending July 2022 (30th) fiscal period (from February 1, 2022 to July 31, 2022)

					Distributions per	Distributions per	Distributions
	Operating	Operating	Ordinary		Unit (including	Unit (excluding	in Excess of
	Net Income	distributions in	distributions in	Retained
	Revenue	Income	Income
	(million yen)	excess of retained	excess of retained	Earnings per
	(million yen)	(million yen)	(million yen)
		earnings per unit)	earnings per unit)	Unit
					(yen)	(yen)	(yen)
Previous	16,292	6,583	5,610	5,608	3,100	2,516	584
forecast (A)
Revised	17,153	7,391	6,421	6,419	3,100	2,896	204
forecast (B)
Variance (B) -	+861	+807	+811	+811	0	+380	(380)
(A)
Rate of	+5.3%	+12.3%	+14.5%	+14.5%	±0.0%	+15.1%	(65.1%)
variance

(Note 1) "Previous forecast" is forecast of operating results and distributions announced in "Summary of Financial Results" dated March 16, 2022 and "Investor Presentation for the Jan. 2022 (29th) Period". The same shall apply hereinafter.

(Note 2) Forecast of investment units issued and outstanding as of the end of fiscal period ending July 2022 (30th): 2,070,016 units

(Note 3) The forecast figures for the fiscal periods ending July 2022 (30th) represent current calculations based on the assumptions provided in the attached "Assumptions underlying the forecasts of operating results and distributions for the fiscal periods ending July 2022 (30th) and January 2023(31st)", and actual operating revenue, operating income, ordinary income, net income, distributions per unit (including distributions in excess of retained earnings per unit), distributions per unit (excluding distributions in excess of retained earnings per unit) and distributions in excess of retained earnings per unit may fluctuate significantly from the forecasts due to the deviation in assumptions caused by factors such as future acquisitions and sales of real estate, changes in rent income as a result of changes in the tenants, changes in the investment management environment such as the unexpected need to perform repairs and fluctuations in interest rates and actual number of investment units to be issued and the issue price of new investment units to be issued, among other factors. As such, the revision to forecast and forecast described in this press release do not guarantee any future results.

(Note 4) The above forecasts may be revised if the degree of deviation with subsequent estimates exceeds a certain level.

(Note 5) Digits below the unit are truncated. The same shall apply hereinafter.

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2. Forecast of operating results and distributions for the fiscal period ending January 2023 (31st) (from August 1, 2022 to January 31, 2023)

					Distributions per	Distributions per	Distributions
					Unit (including	Unit (excluding	in Excess of
	Operating	Operating	Ordinary		distributions in	distributions in
	Net Income	Retained
	Revenue	Income	Income	excess of	excess of
	(million yen)	Earnings per
	(million yen)	(million yen)	(million yen)	retained earnings	retained earnings
					per unit)	per unit)	Unit
					(yen)
					(yen)	(yen)
Previous	16,443	6,780	5,781	5,779	3,020	2,688	332
forecast (A)
Revised	17,767	7,565	6,548	6,546	3,070	3,070	0
forecast (B)
Variance (B) -	+1,323	+784	+766	+766	+50	+382	(332)
(A)
Rate of	+8.0%	+11.6%	+13.3%	+13.3%	+1.7%	+14.2%	(100%)
variance

(Note 1) "Previous forecast" is forecast of operating results and distributions announced in "Summary of Financial Results" dated March 16, 2022 and "Investor Presentation for the Jan. 2022 (29th) Period". The same shall apply hereinafter.

(Note 2) Forecast of investment units issued and outstanding as of the end of fiscal period ending January 2023 (31st): 2,070,016 units

(Note 3) The forecast figures for the fiscal periods ending January 2023 (31st) represent current calculations based on the assumptions provided in the attached "Assumptions underlying the forecasts of operating results and distributions for the fiscal periods ending July 2022 (30th) and January 2023(31st)", and actual operating revenue, operating income, ordinary income, net income, distributions per unit (including distributions in excess of retained earnings per unit), distributions per unit (excluding distributions in excess of retained earnings per unit) and distributions in excess of retained earnings per unit may fluctuate significantly from the forecasts due to the deviation in assumptions caused by factors such as future acquisitions and sales of real estate, changes in rent income as a result of changes in the tenants, changes in the investment management environment such as the unexpected need to perform repairs and fluctuations in interest rates and actual number of investment units to be issued and the issue price of new investment units to be issued, among other factors. As such, the revision to forecast and forecast described in this press release do not guarantee any future results.

(Note 4) The above forecasts may be revised if the degree of deviation with subsequent estimates exceeds a certain level.

(Note 5) Digits below the unit are truncated. The same shall apply hereinafter.

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3. Reasons for Revision and Announcement

As announced in "Notice Concerning Disposition of One Property in Japan【IIF Osaka Nanko IT Solution Center】" dated July 6, 2022, IIF will dispose IIF Osaka Nanko IT Solution Center on August 17, 2022 (31st fiscal period). In addition, as announced in "Notice Concerning Disposition of One Property in Japan【IIF Inzai Logistics Center】" dated today, IIF will dispose IIF Inzai Logistics Center on July 27, 2022(30th fiscal period).

With those disposition, gain on sale of real estate property in the fiscal period ending July 31, 2022 (30th fiscal period) and the fiscal period ending January 31, 2023 (31st fiscal period) is to be recorded.

On the other hand, considering the impact of the soaring energy prices, we reexamined the outlook for utility costs and conservatively reviewed real estate rental expenses and other expenses due to the possibility of incurring some additional expenses in the redevelopment property.

As a result, the revised forecast of distribution per unit (excluding distributions in excess of earnings) for the fiscal period ending July 31, 2022 (30th fiscal period) and the fiscal period ending January 31, 2023 (31st fiscal period) differ by more than 5% from the initial forecast of distribution per unit (excluding distributions in excess of earnings) for the fiscal periods ending July 31, 2022 (30th fiscal period) and January 31, 2023(31st fiscal period), which was announced on March 16, 2022.

Reference: Other press releases announced today:

"Notice Concerning Disposition of One Property in Japan【IIF Inzai Logistics Center】" "Supplementary Material Concerning Press Releases Dated July 6 and July 20, 2022"

About IIF: Industrial & Infrastructure Fund Investment Corporation ("IIF") is the first J-REIT focused on acquiring and operating both industrial and infrastructure properties in Japan－properties that play a vital role in the Japanese economy, and for which IIF expects to see stable demand in the mid to long term. With respect to industrial properties, IIF intends to invest in a diverse portfolio of properties, including manufacturing and research and development facilities.

Please refer to our website at https://www.iif-reit.com/english/

Contacts: For the further information relating to this press release as well as IIF and its Asset Manager, please feel free to contact Mr. Hidehiko Ueda (Telephone Number: 81-3-5293-7090), Head of Industrial Division at KJR Management., asset manager for Industrial & Infrastructure Fund Investment Corporation.

Investor Relations: Telephone Number: 81-3-5293-7091E-mail:[e-mail]

This English language release is for informational purposes only, and the Japanese language release should be referred to as the original.

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【Attachment】

Assumptions underlying the forecasts of operating results and distributions for the fiscal periods ending July 2022 (30th) and January 2023 (31st)

Item			Assumption
Accounting period	30th Fiscal Period from February 1, 2022 to July 31, 2022 (181 days)
31st Fiscal Period from August 1, 2022 to January 31, 2023 (184 days)
	In addition to the real estate and trust beneficial interest in real estate for the 76 properties
	owned by IIF as of July 20, 2022, it is assumed that it will acquire the following Anticipated
	Acquisition and dispose the following Anticipated Dispositions.
	IIF has concluded the purchase and sale agreement concerning all of the following
	Anticipated Acquisition and Anticipated Dispositions, and each acquisition and disposition
	date is as follows.
		IIF Yokkaichi Logistics Center		Anticipated to be acquired on
Assets owned		(New Building)		September 16, 2022
		IIF Inzai Logistics Center		Anticipated to be disposed on
			July 27, 2022
		IIF Osaka Nanko IT Solution Center		Anticipated to be disposed on
			August 17, 2022
	It is assumed that there is no change in the properties, except Anticipated Acquisition and
	Anticipated Dispositions above, until the end of January 2023, however, there may be a
	change due to the acquisition or disposition of our properties in actual.
	The total amount of interest-bearing debt as of July 20, 2022 is 202,783 million yen, consisting
	of long-term debt (including those loans that will become due within one year) of 184,383
	million yen, short-term debt of 3,400 million yen and investment corporation bonds of 15,000
	million yen.
	With regard to the long-term debts of 7,000 million yen scheduled to arrive on maturity date
	in the 30th fiscal period, IIF has already refinanced them with long-term debts of the same
Interest-bearing debt	amount. With regard to the long-term debts of 5,000 million yen and investment corporation
bonds of 5,000 million yen scheduled to arrive on maturity date or redemption date in the
	31st fiscal period, IIF plans to refinance them with long-term debts and investment
	corporation bonds of the same amount.
	In addition, for the purpose of acquiring the property as mentioned in "Assets owned" above,
	it is assumed that IIF borrows new long-term debts of 5,500 million yen on September 16,
	2022. As a result, it is assumed that the total interest-bearing debt as of the end of July 2022
	and the end of January 2023 are202,783 million yen will be 208,283 million yen, respectively.

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Item	Assumption
	IIF has estimated the rent revenue taking into consideration market environment,
	characteristic of individual property, competitiveness of properties and status of
	individual tenant including a plan for evacuation, based on effective lease agreements
Operating revenues	during the 30th fiscal period and the 31st fiscal period. It is assumed that there is no
arrears or non-payments of rent during the 30th fiscal period and the 31st fiscal period
	based on the assumptions described in "Assets owned" above. In addition, with regard to
	IIF Atsugi Logistics Center III and IIF Hamura Logistics Center to be redeveloped
	(planned), it is assumed that no rent revenue is generated from the beginning of the 30th
	fiscal period and June 2022 in the 30th fiscal period, respectively.
	Fixed property tax, city planning tax and depreciable property tax, and repair costs in the
	30th period is forecast to be approximately 1,362 million yen and approximately 1,003
	million yen (including approximately 244 million yen of demolition cost of existing
	building of IIF Atsugi Logistics Center III), respectively. Fixed property tax, city planning
	tax and depreciable property tax, and repair costs in the 31st period is forecast to be
	approximately 1,419 million yen and approximately 992 million yen (including
	approximately 136 million yen of demolition cost of existing building of IIF Hamura
	Logistics Center*), respectively. Fixed property tax and city planning tax, which are settled
	according to the number of days owned by the previous owner in connection with the new
	acquisition of the property, are not recorded as expenses because they are included in the
	acquisition cost, but are recorded as expenses from the following year. Accordingly, fixed
	property tax, city planning tax, and depreciable property tax relating to the properties
	acquired in the 30th fiscal period (IIF Iruma Manufacturing Center (land with leasehold
Operating expenses	interest) and IIF Tochigi Mooka Manufacturing Center (land with leasehold interest)) and
to be acquired described in the "Assets owned" above will be recorded as expenses from
	the 32nd fiscal period. Fixed property tax, city planning tax and depreciable property tax,
	which are included in the acquisition cost of the properties to be acquired, are assumed to
	be approximately 16 million yen.
	Depreciations including ancillary expenses for the 30th fiscal period and the 31st fiscal
	period are calculated based on the straight-line method and are estimated to be
	approximately 2,158 million yen and approximately 2,037 million yen, respectively.
	Calculation of external outsourcing expenses (property management fees, building
	management fees, etc.) is based on actual results thus far.
	* The demolition cost includes removal cost of asbestos. IIF has recorded asset retirement
	obligations related to expenses for removal of the asbestos since the fiscal period ended
	December 2016 (the 19th fiscal period). However, as the asset retirement obligations will
	be reversed for removal of the asbestos, they will be offset by demolition cost on
	accounting.
	IIF estimate the non-operating expenses (the interest expenses, other debt-related
	expenses, etc.) for the 30th fiscal period and for the 31st fiscal period will be approximately
Non-operating expenses	969 million yen and approximately 1,017 million yen, respectively.
IIF estimate the amortization of the cost concerning the issuance of new investment units
	for the 30th fiscal period and for the 31st fiscal period will be approximately 43 million
	yen and approximately 29 million yen, respectively.
Extraordinary gain or loss	No extraordinary gain or loss is expected for the 30th fiscal period and for the 31st fiscal
period.
Total number of units issued	It is assumed that the total number of issued investment units as of the submission date is
2,070,016

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