Japan Metropolitan Fund Investment : The 41st Fiscal Period Results (March 1, 2022 – August 31, 2022)

Japan Metropolitan Fund Investment Corporation

The 41st Fiscal Period Financial Results

(March 1, 2022 - August 31, 2022)

JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

BALANCE SHEETS

As of February 28, 2022 and August 31, 2022

		(Thousands of yen)
	As of
	February 28, 2022	August 31, 2022
ASSETS
Current assets:
Cash and bank deposits	38,840,649	41,232,640
Cash and bank deposits in trust	17,368,710	21,367,760
Rent receivables	1,014,373	1,092,389
Income taxes receivable	44,505	46,968
Consumption tax refundable	250,604	-
Derivatives	-	12,823
Other current assets	1,133,974	1,295,543
Total current assets	58,652,818	65,048,126
Non-current assets:
Property and equipment:
Buildings	2,465,178	2,482,490
Accumulated depreciation	(825,539)	(864,768)
Buildings, net	1,639,638	1,617,722
Building improvements	66,693	66,693
Accumulated depreciation	(32,110)	(33,592)
Building improvements, net	34,582	33,100
Furniture and fixtures	21,358	21,358
Accumulated depreciation	(16,329)	(16,775)
Furniture and fixtures, net	5,028	4,582
Land	28,459,580	28,459,580
Construction in progress	2,432	23,121
Buildings in trust	341,788,614	344,708,848
Accumulated depreciation	(114,653,464)	(119,854,390)
Buildings in trust, net	227,135,150	224,854,457
Building improvements in trust	12,214,832	12,241,876
Accumulated depreciation	(4,880,102)	(5,053,364)
Building improvements in trust, net	7,334,730	7,188,512
Machinery and equipment in trust	2,200,537	2,158,419
Accumulated depreciation	(1,449,236)	(1,428,282)
Machinery and equipment in trust, net	751,300	730,137
Furniture and fixtures in trust	5,142,042	5,181,492
Accumulated depreciation	(3,310,665)	(3,451,056)
Furniture and fixtures in trust, net	1,831,377	1,730,436
Land in trust	883,826,092	879,828,471
Construction in progress in trust	154,350	829,471
Total property and equipment	1,151,174,264	1,145,299,594
Intangible assets:
Goodwill	15,246,741	14,845,511
Leasehold rights in trust	5,033,845	5,013,772
Other intangible assets	314,470	298,730
Other intangible assets in trust	84,154	77,546
Total intangible assets	20,679,212	20,235,561
Investment and other assets:
Investment securities	13,115,153	14,285,653
Lease deposits in trust	1,487,004	1,479,615
Long-term prepaid expenses	2,114,255	2,326,024
Derivatives	58,935	130,815
Other investments	1,036	1,036
Total investment and other assets	16,776,384	18,223,146
Total non-current assets	1,188,629,861	1,183,758,302
Deferred assets:
Investment corporation bond issuance costs	157,163	157,618
Total deferred assets	157,163	157,618
TOTAL ASSETS	1,247,439,843	1,248,964,047
(To be continued on the following page)

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		(Thousands of yen)
	As of
	February 28, 2022	August 31, 2022
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable - operating	3,900,536	4,686,498
Short-term borrowings	6,000,000	6,000,000
Current portion of long-term bonds issued - unsecured	6,000,000	8,000,000
Current portion of long-term borrowings	47,200,000	46,700,000
Accounts payable - other	51,027	34,321
Accrued expenses	2,195,628	2,138,071
Income taxes payable	605	605
Consumption tax payable	-	1,028,389
Rent received in advance	4,529,198	4,410,820
Deposits received	2,333,630	2,076,158
Current portion of tenant leasehold and security deposits in trust	68,065	168,065
Derivatives liabilities	13,498	-
Other current liabilities	214,028	144,600
Total current liabilities	72,506,218	75,387,529
Non-current liabilities:
Long-term bonds issued - unsecured	58,500,000	54,500,000
Long-term borrowings	431,975,000	434,445,000
Tenant leasehold and security deposits	1,821,305	1,855,204
Tenant leasehold and security deposits in trust	56,885,135	57,072,720
Asset retirement obligations	787,426	837,316
Other non-current liabilities	105,257	89,860
Total non-current liabilities	550,074,125	548,800,101
TOTAL LIABILITIES	622,580,343	624,187,631
Net Assets
Unitholders' equity:
Unitholders' capital	411,878,082	411,878,082
Surplus:
Capital surplus	202,855,188	202,855,188
Deduction from capital surplus	(11,999,843)	(11,999,843)
Capital surplus, net	190,855,344	190,855,344
Voluntary reserve
Reserve for reduction entry of property	-	1,160,420
Reserve for dividends	3,915,072	3,915,072
Retained earnings for temporary difference adjustment	1,127,716	928,434
Total voluntary reserve	5,042,789	6,003,928
Retained earnings	16,924,222	15,722,673
Total surplus	212,822,356	212,581,946
Total unitholders' equity	624,700,438	624,460,028
Valuation and translation adjustments:
Net unrealized holding gains (losses) on investment securities	105,365	172,748
Deferred losses on hedges	53,695	143,639
Total valuation and translation adjustments	159,061	316,387
TOTAL NET ASSETS	624,859,499	624,776,416
TOTAL LIABILITIES AND NET ASSETS	1,247,439,843	1,248,964,047

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JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

STATEMENTS OF INCOME AND RETAINED EARNINGS

For the Six Months Ended

February 28, 2022 and August 31, 2022

(Thousands of yen)

For the six months ended

February 28, 2022 August 31, 2022

Operating revenues

Rent and other operating revenues

Gain on sales of property

Dividend income

Total operating revenues

Operating expenses

Property-related expenses

Loss on sales of property

Asset management fees

Custodian fees

General administration fees

Compensation for Directors

Amortization of goodwill

Other operating expenses

Total operating expenses

Operating income

Non-operating revenues

Interest income

Subsidy income

Sponsorship money income

Other non-operating revenues

Total non-operating revenues

Non-operating expenses

Interest expenses

Interest expenses on investment corporation bonds Amortization of investment corporation bond issuance costs Loan-related costs

Other non-operating expenses Total non-operating expenses

Ordinary income

Income before income taxes

Income taxes

Current

Total income taxes

Net income

Unappropriated earnings at beginning of period Retained earnings at the end of period

37,812,16439,006,993

2,532,2991,831,201

254,073274,236

40,598,53741,112,430

16,995,11718,245,748

• 420,972
  3,690,9303,735,114
  32,87734,133

149,045	154,924
5,782	5,782
401,230	401,230
515,377	419,778
21,790,360	23,417,685
18,808,177	17,694,745
343	295
28,927	2,238
52,800	-
4,537	3,531
86,607	6,064
1,409,884	1,395,192
183,369	187,295
24,403	24,965
349,077	366,802
3,223	3,276
1,969,957	1,977,532
16,924,827	15,723,278
16,924,827	15,723,278
605	605
605	605
16,924,222	15,722,673
-	-
16,924,222	15,722,673

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JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

STATEMENTS OF CASH FLOWS

For the Six Months Ended

February 28, 2022 and August 31, 2022

		(Thousands of yen)
	For the six months ended
	February 28, 2022	August 31, 2022
Cash Flows from Operating Activities:
Income before income taxes	16,924,827	15,723,278
Adjustments to reconcile income before income taxes to net cash provided by
operating activities:
Depreciation	6,058,181	6,015,183
Amortization of goodwill	401,230	401,230
Amortization of investment corporation bond issuance costs	24,403	24,965
Gain on sales of property	(2,532,299)	(1,831,201)
Loss on sales of property	-	420,972
Loss on disposal of fixed assets	25,712	76,165
Interest income	(343)	(295)
Interest expenses	1,593,253	1,582,487
Changes in assets and liabilities:
(Increase) decrease in rent receivables	34,519	(78,824)
(Increase) decrease in income taxes receivable	1,233	(2,463)
(Increase) decrease in consumption tax refundable	(250,604)	250,604
(Increase) decrease in long-term prepaid expenses	(186,641)	(211,769)
Increase (decrease) in accounts payable - operating	(519,745)	872,751
Increase (decrease) in consumption tax payable	(1,157,900)	1,028,389
Increase (decrease) in accounts payable - other	5,188	(6,028)
Increase (decrease) in accrued expenses	(16,092)	38,876
Increase (decrease) in rent received in advance	108,304	(118,378)
Increase (decrease) in deposits received	(234,060)	399,173
Other, net	218,381	(194,584)
Sub total	20,497,548	24,390,534
Interest received	343	295
Interest expenses paid	(1,656,853)	(1,580,157)
Income taxes paid	(605)	(605)
Net cash provided by operating activities	18,840,433	22,810,066
Cash Flows from Investing Activities:
Purchase of property and equipment	(24,694)	(24,763)
Purchase of property and equipment in trust	(63,250,844)	(7,385,851)
Proceeds from sales of property and equipment in trust	24,044,255	8,365,914
Payments for sales of property and equipment in trust	(134,981)	(158,697)
Purchase of intangible assets	(109,055)	(31,707)
Purchase of intangible assets in trust	(2,169)	(5,486)
Payments of tenant leasehold and security deposits	(33,326)	-
Proceeds from tenant leasehold and security deposits	34,213	33,898
Payments of tenant leasehold and security deposits in trust	(2,135,537)	(1,591,628)
Proceeds from tenant leasehold and security deposits in trust	3,022,282	1,493,137
Proceeds from lease deposits	10,000	-
Payments of lease deposits in trust	-	(111)
Proceeds from lease deposits in trust	42,833	7,500
Purchase of investment securities	(2,463,603)	(1,102,900)
Payments for restricted bank deposits in trust	(4)	-
Net cash used in investing activities	(41,000,634)	(400,695)
Cash Flows from Financing Activities:
Proceeds from short-term borrowings	6,500,000	8,000,000
Repayments of short-term borrowings	(500,000)	(8,000,000)
Proceeds from long-term borrowings	28,500,000	26,370,000
Repayments of long-term borrowings	(28,500,000)	(24,400,000)
Proceeds from issuance of investment corporation bonds	4,969,586	3,974,579
Redemption of investment corporation bonds	-	(6,000,000)
Distribution payments	(15,977,875)	(15,962,909)
Net cash used in financing activities	(5,008,288)	(16,018,330)
Net change in cash and cash equivalents	(27,168,488)	6,391,040
Cash and cash equivalents at the beginning of period	82,864,510	55,696,022
Cash and cash equivalents at the end of period	55,696,022	62,087,062

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