Japan Metropolitan Fund Investment : The 39th Fiscal Period Results(March 1, 2021 – August 31, 2021)

Japan Metropolitan Fund Investment Corporation

The 39th Fiscal Period Financial Results

(March 1, 2021 - August 31, 2021)

JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

BALANCE SHEETS

As of February 28, 2021 and August 31, 2021

		(Thousands of yen)
	As of
	February 28, 2021	August 31, 2021
ASSETS
Current assets:
Cash and bank deposits	60,314,119	64,815,529
Cash and bank deposits in trust	12,762,382	18,562,314
Rent receivables	801,746	1,047,098
Income taxes receivable	54	45,739
Other current assets	1,067,990	1,286,755
Total current assets	74,946,293	85,757,437
Non-current assets:
Property and equipment:
Buildings	2,450,756	2,474,308
Accumulated depreciation	(748,757)	(789,991)
Buildings, net	1,701,998	1,684,317
Building improvements	66,693	66,693
Accumulated depreciation	(29,130)	(30,620)
Building improvements, net	37,563	36,072
Furniture and fixtures	21,358	21,358
Accumulated depreciation	(15,338)	(15,834)
Furniture and fixtures, net	6,019	5,523
Land	28,459,580	28,459,580
Construction in progress	3,400	41,020
Buildings in trust	286,754,520	333,918,946
Accumulated depreciation	(110,090,429)	(109,594,075)
Buildings in trust, net	176,664,090	224,324,871
Building improvements in trust	12,971,674	12,218,969
Accumulated depreciation	(5,131,933)	(4,728,045)
Building improvements in trust, net	7,839,740	7,490,923
Machinery and equipment in trust	2,191,384	2,149,423
Accumulated depreciation	(1,405,545)	(1,395,775)
Machinery and equipment in trust, net	785,839	753,648
Furniture and fixtures in trust	4,857,617	4,975,095
Accumulated depreciation	(3,082,999)	(3,163,745)
Furniture and fixtures in trust, net	1,774,618	1,811,349
Land in trust	602,253,992	849,981,160
Construction in progress in trust	40,720	118,392
Total property and equipment	819,567,564	1,114,706,861
Intangible assets:
Goodwill	-	15,647,971
Leasehold rights in trust	5,073,992	5,053,919
Other intangible assets	71,939	226,099
Other intangible assets in trust	113,299	96,711
Total intangible assets	5,259,232	21,024,701
Investment and other assets:
Investment securities	-	10,611,996
Lease deposits in trust	1,537,127	1,539,837
Long-term prepaid expenses	1,787,012	1,927,613
Other investments	1,036	1,036
Total investment and other assets	3,325,176	14,080,484
Total non-current assets	828,151,972	1,149,812,048
Deferred assets:
Investment corporation bond issuance costs	122,753	151,154
Total deferred assets	122,753	151,154
TOTAL ASSETS	903,221,019	1,235,720,640
(To be continued on the following page)

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		(Thousands of yen)
	As of
	February 28, 2021	August 31, 2021
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable - operating	2,075,871	3,828,778
Current portion of long-term bonds issued - unsecured	-	6,000,000
Current portion of long-term borrowings	51,000,000	52,900,000
Accounts payable - other	94,731	71,301
Accrued expenses	1,616,752	2,228,371
Income taxes payable	605	605
Consumption tax payable	1,096,173	1,157,900
Rent received in advance	3,069,222	4,420,894
Deposits received	2,267,472	1,121,653
Current portion of tenant leasehold and security deposits in trust	695,091	674,895
Derivatives liabilities	19,243	37,772
Other current liabilities	140,573	156,720
Total current liabilities	62,075,736	72,598,893
Non-current liabilities:
Long-term bonds issued - unsecured	44,500,000	53,500,000
Long-term borrowings	316,200,000	426,275,000
Tenant leasehold and security deposits	1,788,297	1,785,226
Tenant leasehold and security deposits in trust	44,050,694	56,876,280
Asset retirement obligations	549,506	783,521
Derivatives liabilities	60,454	109,430
Other non-current liabilities	29,130	121,128
Total non-current liabilities	407,178,082	539,450,587
TOTAL LIABILITIES	469,253,818	612,049,481
Net Assets
Unitholders' equity:
Unitholders' capital	411,878,082	411,878,082
Surplus:
Capital surplus	14,986,826	202,855,188
Deduction from capital surplus	(11,999,843)	(11,999,843)
Capital surplus, net	2,986,982	190,855,344
Voluntary reserve
Reserve for reduction entry of property	452,199	770,557
Reserve for dividends	3,915,072	3,915,072
Retained earnings for temporary difference adjustment	2,918,039	2,785,030
Total voluntary reserve	7,285,311	7,470,660
Retained earnings	11,896,522	13,549,190
Total surplus	22,168,816	211,875,196
Total unitholders' equity	434,046,898	623,753,278
Valuation and translation adjustments:
Net unrealized holding gains (losses) on investment securities	-	65,083
Deferred losses on hedges	(79,697)	(147,202)
Total valuation and translation adjustments	(79,697)	(82,119)
TOTAL NET ASSETS	433,967,201	623,671,158
TOTAL LIABILITIES AND NET ASSETS	903,221,019	1,235,720,640

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JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

STATEMENTS OF INCOME AND RETAINED EARNINGS

For the Six Months Ended

February 28, 2021 and August 31, 2021

		(Thousands of yen)
	For the six months ended
	February 28, 2021	August 31, 2021
Operating revenues
Rent and other operating revenues	29,392,066	38,022,596
Gain on sales of property	1,126,862	2,107,223
Dividend income	-	230,926
Total operating revenues	30,518,929	40,360,746
Operating expenses
Property-related expenses	13,842,931	17,239,266
Loss on sales of property	-	1,767,153
Asset management fees	2,677,495	4,449,593
Custodian fees	29,970	30,530
General administration fees	129,518	132,113
Compensation for Directors	5,940	5,782
Merger expenses	74,764	356,711
Amortization of goodwill	-	401,230
Other operating expenses	252,618	417,894
Total operating expenses	17,013,238	24,800,276
Operating income	13,505,690	15,560,469
Non-operating revenues
Interest income	359	411
Subsidy income	-	16,406
Other non-operating revenues	1,990	4,443
Total non-operating revenues	2,349	21,261
Non-operating expenses
Interest expenses	1,127,543	1,492,843
Interest expenses on investment corporation bonds	143,023	174,240
Amortization of investment corporation bond issuance costs	20,381	21,632
Loan-related costs	315,451	339,053
Other non-operating expenses	4,513	4,166
Total non-operating expenses	1,610,912	2,031,935
Ordinary income	11,897,127	13,549,795
Income before income taxes	11,897,127	13,549,795
Income taxes
Current	605	605
Total income taxes	605	605
Net income	11,896,522	13,549,190
Unappropriated earnings at beginning of period	-	-
Retained earnings at the end of period	11,896,522	13,549,190

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JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

STATEMENTS OF CASH FLOWS

For the Six Months Ended

February 28, 2021 and August 31, 2021

		(Thousands of yen)
	For the six months ended
	February 28, 2021	August 31, 2021
Cash Flows from Operating Activities:
Income before income taxes	11,897,127	13,549,795
Adjustments to reconcile income before income taxes to net cash provided by
operating activities:
Depreciation	5,408,726	6,161,683
Amortization of goodwill	-	401,230
Amortization of investment corporation bond issuance costs	20,381	21,632
Gain on sales of property	(1,126,862)	(2,107,223)
Loss on sales of property	-	1,767,153
Loss on disposal of fixed assets	25,831	24,898
Interest income	(359)	(411)
Interest expenses	1,270,566	1,667,083
Changes in assets and liabilities:
(Increase) decrease in rent receivables	194,196	10,647
(Increase) decrease in income taxes receivable	34	(37,322)
(Increase) decrease in long-term prepaid expenses	(57,003)	(140,601)
Increase (decrease) in accounts payable - operating	(346,767)	(600,945)
Increase (decrease) in consumption tax payable	700,746	(56,050)
Increase (decrease) in accounts payable - other	(141,857)	(237,993)
Increase (decrease) in accrued expenses	(30,712)	(320,758)
Increase (decrease) in rent received in advance	(104,247)	101,972
Increase (decrease) in deposits received	972,230	(582,302)
Other, net	(470,564)	(244,887)
Sub total	18,211,466	19,377,601
Interest received	359	411
Interest expenses paid	(1,311,340)	(1,680,441)
Income taxes paid	(605)	(20,695)
Net cash provided by operating activities	16,899,881	17,676,875
Cash Flows from Investing Activities:
Purchase of property and equipment	(16,927)	(39,204)
Purchase of property and equipment in trust	(1,432,143)	(32,279,364)
Proceeds from sales of property and equipment in trust	8,572,100	29,669,968
Payments for sales of property and equipment in trust	(38,280)	(56,760)
Purchase of intangible assets	(1,937)	(131,258)
Purchase of intangible assets in trust	(20,506)	(5,440)
Payments of tenant leasehold and security deposits	(53,162)	(28,166)
Proceeds from tenant leasehold and security deposits	50,244	54,288
Payments of tenant leasehold and security deposits in trust	(1,371,422)	(3,708,690)
Proceeds from tenant leasehold and security deposits in trust	359,324	1,771,827
Payments of lease deposits	(82)	-
Payments of lease deposits in trust	(25,214)	-
Proceeds from lease deposits in trust	79,375	7,500
Investment in securities	-	(1,893,098)
Payments for restricted bank deposits in trust	(24)	-
Net cash provided by (used in) investing activities	6,101,344	(6,638,398)
Cash Flows from Financing Activities:
Repayments of short-term borrowings	(7,000,000)	-
Proceeds from long-term borrowings	35,050,000	39,750,000
Repayments of long-term borrowings	(28,075,000)	(46,750,000)
Proceeds from issuance of investment corporation bonds	-	8,449,966
Redemption of investment corporation bonds	-	(1,500,000)
Payments of merger cash distributions	-	(5,434,444)
Distribution payments	(11,710,123)	(11,710,354)
Net cash used in financing activities	(11,735,123)	(17,194,833)
Net change in cash and cash equivalents	11,266,102	(6,156,356)
Cash and cash equivalents at the beginning of period	61,297,066	72,563,168
Increase in cash and cash equivalents resulting from merger	-	16,457,698
Cash and cash equivalents at the end of period	72,563,168	82,864,510

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