United Urban Investment : 38th Fiscal Period (Jun. 1, 2022 - Nov. 30, 2022) SemiannualReport

Semiannual Report

Thirty-eighth Fiscal Period

From June 1, 2022 to November 30, 2022

th

Profile

United Urban Investment Corporation ("United Urban") was incorporated on November 4, 2003, under the Act on Investment Trusts and Investment Corporations of Japan. On December 22, 2003, United Urban was listed on the real estate investment trust ("J-REIT") section of the Tokyo Stock Exchange (Securities Code: 8960), and United Urban has been growing steadily since listing. In addition, through the merger with Nippon Commercial Investment Corporation ("NCI") in December 2010, United Urban considerably expanded the size of assets.

In order to obtain stable earnings over the medium to long term, United Urban intends to form an optimal portfolio that is diversified both in terms of the types of use and areas of location, which is thought to cope with economic and real estate market fluctuations. And United Urban will conduct asset management aiming to both improve revenues and mitigate risk through property management and enhancement of property values based on a bottom-up approach.

Growth of Assets (Note 1)

(Billions of yen)

Retail Properties

Office Buildings

Hotels

Residential Properties

Others

600

548.7

Merger with NCI

Tenth anniversary of

Split of investment units

listing (Dec. 2013)

520.0 520.1

493.1

500

Issuance of corporate bonds for retail investors (first for J-REIT)

471.2

474.9

(Dec. 2010)

			387.2	416.7	422.6	429.0
400
	Establishment
	(Nov. 2003)
300
	The tenth	220.0
	J-REIT listed
200	on TSE (Dec. 2003)
100	64.7
0	1st FP	14 th FP	15 th FP	16 th FP	17th FP	18th FP	19 th FP	20th FP	21st FP	22nd FP	23rd FP	24th FP
	(May/2004)	(Nov/2010) (May/2011) (Nov/2011) (May/2012) (Nov/2012) (May/2013) (Nov/2013) (May/2014) (Nov/2014) (May/2015) (Nov/2015)
No. of	14	50	86	90	91	94	97	97	103	108	108	117
Properties

Notes: 1. The total acquisition prices of properties owned by United Urban at the end of each fiscal period are shown above, and figures are rounded to the units stated.

1. Unless otherwise indicated, in principle, all figures in this report are rounded down to the nearest unit.
2. In this document, J-REIT refers to a real-estate investment trust listed on a Japanese stock exchange.

C o n t e n t s

1. Key Figures
2. Financial Highlights
3. To Our Unitholders
4. Distinctive Features of United Urban
5. Investment Unit Information

The shareholder of Japan REIT Advisors Co., Ltd. ("JRA"), the asset management company that United Urban entrusts with asset management services, is the general trading company Marubeni Corporation ("Marubeni"). United Urban takes full advantage of the functions and the wide-ranging information network and support provided by Marubeni and its affiliated companies to execute property acquisition and sales, tenant leasing, and to reduce costs, etc. Furthermore, United Urban aims to develop and manage a stable portfolio of properties over the medium to long term.

Debt financing through green finance with the first joint						671.4	675.1	676.8	682.3
management specified money trust in Japan (Sep. 2018)			643.8	661.5	656.4
	621.6				626.1
	610.9	608.6	613.9
575.5	590.4

25th FP	26th FP	27th FP	28th FP	29th FP	30th FP	31st FP	32nd FP	33rd FP	34th FP	35th FP	36 th FP	37 th FP	38 th FP
(May/2016) (Nov/2016) (May/2017) (Nov/2017) (May/2018) (Nov/2018) (May/2019) (Nov/2019) (May/2020) (Nov/2020) (May/2021) (Nov/2021) (May/2022) (Nov/2022)
118	119	123	116	116	119	120	122	129	130	133	136	136	137

7	Acquisitions and Sales of Properties	26	Profile of Asset Management Company
11	Portfolio Properties	27	Performance Report
21	Financial Status	55	Financial Section

1. ESG Initiatives

1. Corporate Profile

United Urban Investment Corporation 1

K ey Figures	(As of November 30, 2022)

Cash Distribution per Unit for the 38th Fiscal Period

• 3,144

Total Acquisition Price	Number of Properties
¥ 682 billion	137

Occupancy Ratio

98.9%

Ratings (As of December 31, 2022)

Long-term issuer rating

JCRAA

Rating outlook: Stable

Loan-to-Value Ratio (LTV) (total assets basis) (Note)

43.8%

Note: LTV (total assets basis) = Interest-bearing liabilities (including corporate bonds) / Total assets

Total Amount of Retained Earnings (Note)

• 9,976million

Note: Reserve for temporary difference adjustments and reserve retained for distribution.

2 United Urban Investment Corporation

Financial Highlights

Financial Indicators

(Millions of yen, except per unit information)

	36th Fiscal Period	37th Fiscal Period	38th Fiscal Period	39th Fiscal Period	40th Fiscal Period
		June 1, 2021-		December 1, 2021-		June 1, 2022-		December 1, 2022-		June 1, 2023-
					May 31, 2023		November 30, 2023
		November 30, 2021		May 31, 2022		November 30, 2022
					(forecast)		(forecast)
Operating revenues	¥	22,806	¥	24,184	¥	24,433	¥	24,613	¥	24,677
Operating income		8,256		10,553		10,627		10,307		10,379
Ordinary income		7,326		9,628		9,666		9,307		9,313
Net income		7,326		9,628		9,666		9,306		9,312
Total cash distribution		9,666		9,704		9,741		9,772		9,803
Cash distribution per unit (Yen)		3,100		3,112		3,144		3,154		3,164
Total assets		707,548		715,568		714,899		-		-
Total net assets		363,257		363,291		360,338		-		-
Net assets per unit (Yen)		116,490		116,501		116,291		-		-

Cash distribution per unit (Yen)

3,435	3,470
		3,119	3,182	3,100	3,112	3,144	3,154	3,164
32nd FP	33rd FP	34th FP	35th FP	36th FP	37th FP	38th FP	39th FP	40th FP
(Nov/2019)	(May/2020)	(Nov/2020)	(May/2021)	(Nov/2021)	(May/2022)	(Nov/2022)	(May/2023)	(Nov/2023)
							(forecast)	(forecast)

Cash distribution per unit forecast for the	¥	3,154
39th Fiscal Period:

(From December 1, 2022 to May 31, 2023)

Cash distribution per unit forecast for the	¥	3,164
40th Fiscal Period:

(From June 1, 2023 to November 30, 2023)

Note: Cash distribution per unit forecast is our current expectations produced as of January 19, 2023, based on certain assumptions. Accordingly, the actual cash distributions per unit may differ from forecasts because of future acquisitions and sales of properties, real estate market trends and changes in other circumstances around United Urban. In addition, the forecasts are not guarantees of payment of any cash distributions by United Urban. For the latest information of forecasts, please refer to United Urban's website.

United Urban Investment Corporation 3