United Urban Investment : 39th Fiscal Period (Dec.1, 2022 - May 31, 2023) Summary ofFinancial Report

For Translation Purposes Only

July 19, 2023

SUMMARY OF FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED

May 31, 2023 (December 1, 2022 - May 31, 2023)

Name of issuer:	United Urban Investment Corporation (United Urban)
Listing:	Tokyo Stock Exchange
Securities code:	8960
URL:	https://www.united-reit.co.jp/en/
Representative:	Toshiaki Emon, Executive Officer
Asset Management Company:	Japan REIT Advisors Co., Ltd. (JRA)
Representative:	Junichi Batai, President and Chief Executive Officer
Inquiries:	Shuichi Kamizono, Chief Financial Officer
	TEL: [phone]
Scheduled date of filing of Securities Report:	August 29, 2023
Scheduled date for commencing dividend payments:	August 14, 2023
Supplementary Materials on Financial Results:	Scheduled
Financial Results Conference:		Scheduled (for analysts and institutional investors (Japanese language only))

(Amounts are rounded down to the nearest millions of yen, unless otherwise indicated)

1. Performance for the Fiscal Period Ended May 31, 2023 (December 1, 2022 - May 31, 2023)

(1) Business Results

(Percentage figures show the increase/decrease rate compared to the previous period)

	Operating Revenues	Operating Income	Ordinary Income	Net Income
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%
Fiscal period ended	25,052		2.5	10,903	2.6	9,930	2.7	9,929		2.7
May 31, 2023
Fiscal period ended	24,433		1.0	10,627	0.7	9,666	0.4	9,666		0.4
November 30, 2022
	Net Income per Unit	Return on Equity	Return on Assets	Ordinary Income to
	Operating Revenues
Fiscal period ended	Yen			%		%	%
3,204		2.8		1.4		39.6
May 31, 2023
Fiscal period ended	3,103		2.7		1.4		39.6
November 30, 2022

(2) Distributions

	Cash	Total Cash	Distributions in	Total Distributions		Distribution
	Distributions
	Distributions	Payout Ratio	Ratio to
	per Unit	Excess of Earnings	in Excess of
	(excluding excess	Unitholders'
	(excluding excess	per Unit	Earnings
	of earnings)		Equity
	of earnings)
Fiscal period ended	Yen	Millions of yen	Yen	Millions of yen	%	%
3,229	10,005	－	－	100.7	2.8
May 31, 2023
Fiscal period ended	3,144	9,741	－	－	101.3	2.7
November 30, 2022

Notes: 1. "Payout Ratio" is rounded down to the nearest one decimal place.

1. 2. For the fiscal period ended November 30, 2022, because a reversal of reserve for temporary difference adjustments (¥77 million) was added to the net income and the calculation of net income per unit is based on the average number of investment units during the period due to the acquisition and cancellation of own investment units in the fiscal period, there was a difference between cash distribution per unit and net income per unit. For the fiscal period ended May 31, 2023, because a reversal of reserve for temporary difference adjustments (¥77 million) was added to the net income, there was a difference between cash distribution per unit and net income per unit.

2. Financial Position

	Total Assets	Total Unitholders'	Equity Ratio	Net Asset per Unit
	Equity (Net Asset)
Fiscal period ended	Millions of yen	Millions of yen	%	Yen
723,202	360,480	49.8	116,336
May 31, 2023
Fiscal period ended	714,899	360,338	50.4	116,291
November 30, 2022

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(4) Conditions of Cash Flows

	Cash Flows from	Cash Flows from	Cash Flows from	Cash and Cash
	Equivalents at the End
	Operating Activities	Investing Activities	Financing Activities
	of the Period
Fiscal period ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
13,227	(8,656)	(2,739)	60,737
May 31, 2023
Fiscal period ended	13,211	(7,403)	(10,005)	58,906
November 30, 2022

2. Forecasts of Results for the Fiscal Period Ending November 30, 2023 (June 1, 2023 - November 30, 2023) and the Fiscal Period Ending May 31, 2024 (December 1, 2023 - May 31, 2024)

(Percentage figures show the increase/decrease rate compared to the previous period)

												Cash	Distributions
		Operating									Distributions
		Operating Income	Ordinary Income	Net Income	per Unit	in Excess of
		Revenues	Earnings per
										(excluding excess
												of earnings)	Unit
		Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen		%	Yen	Yen
	Fiscal period ending	25,305	1.0	11,220		2.9	10,148	2.2	10,148		2.2	3,300	-
	November 30, 2023
	Fiscal period ending	25,273	(0.1)	11,568		3.1	10,458	3.1	10,458		3.1	3,400	-
	May 31, 2024
[Reference] Estimated net income per unit (full business year):
	Fiscal period ending November 30, 2023 ¥3,274		Fiscal period ending May 31, 2024	¥3,374

Note: The resource for cash distributions for the fiscal period ending November 30, 2023 and the fiscal period ending May 31, 2024 is the result of adding a reversal of reserve for temporary difference adjustments (¥77 million) to the net income, respectively. Therefore, it differs from "net income" of each fiscal period.

＊Other

1. Change in Accounting Policies, Change in Accounting Estimate, and Restatement
2. 1. Changes in accounting policies in accordance with a revision of the accounting rules: Not Applicable
   2. Changes in accounting policies other than 1, above: Not Applicable
   3. Changes in accounting estimate: Not Applicable
   4. Restatement: Not Applicable
3. Total Number of Investment Units Issued and Outstanding

1. Total number of investment units issued at the end of the fiscal period (including own investment units)
2. Number of own investment units at the end of the fiscal period

As of May 31, 2023	3,098,591 units	As of November 30, 2022	3,098,591 units
As of May 31, 2023	0 units	As of November 30, 2022	0 units

Note: For the number of investment units used as the basis for the calculation of net income per unit, please refer to "Notes to Pe r Unit Information" on page 29.

1. Rounding of Fractions of Amounts and Ratios
   Unless otherwise specifically indicated, amounts in this report have been rounded down to the units stated and the ratios have been rounded to the nearest one decimal place.
2. • This report ("Brief Report on the Closing of Accounts" (Kessan-Tanshin)) is not subject to audits by a certified public accountant or an audit corporation.
   • Special Notes

Forward-looking statements contained in this material are our current expectations produced as of the date hereof, based on certain assumptions. Accordingly, the actual operating revenues, operating income, ordinary income, net income, cash distributions per unit and distributions in excess of earnings per unit may differ from forecasts because of future acquisitions and sales of properties, real estate market trends and changes in other situations concerning United Urban. In addition, forward-looking statements are not guarantees of payment of any cash distributions by United Urban. For details of the assumptions made, please refer to the "Assumptions for the Forecast of Financial Results for the Fiscal Period Ending November 30, 2023 (40th fiscal period: from June 1, 2023 to November 30, 2023)" and the Fiscal Period Ending May 31, 2024 (41st fiscal period: from December 1, 2023 to May 31, 2024) on page 10.

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DISCLAIMER

This is an English-language translation of original Japanese document "the Brief Report on the Closing of Accounts" (Kessan-Tanshin) for the fiscal period ended May 31, 2023. This translation is provided for information purpose only and is not intended to constitute a statutory document for an offer to sell, or seeking an offer to buy, any securities of United Urban. United Urban makes no assurance or warranty with respect to the completeness or accuracy of this English translation; the Japanese versions of the Kessan- Tanshin should always be referred to as the originals of this document.

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Table of Contents

1. Management Status	…………………………………………………...	5
Management Status	………………………………………………………………………..	5

2. Financial Statement ………………………………………………………………………………. 13

1. Balance Sheet ……………………………………………………………………………….... 13
2. Statement of Income and Retained Earnings ……………………………………………….... 15

(3) Statements of Unitholders' Equity ……………………………………………………………. 16

1. Statements of Cash Distribution ……………………………………………………………. 18
2. Statements of Cash Flows …………………………………………...……………………..... 19
3. Notes to Assumption of Going Concern ……………………………………………………. 20
4. Notes to Important Accounting Policies ……………………………………………………. 20

(8)	Notes to Financial Statements ………………………………………………………………	21
(9)	Change in Total Number of Investment Units Issued and Outstanding ………………………	29
3. Reference Information ……………………………………………………………………………	30
(1)	Information on the Price of Assets under Management, etc. …………………………………	30

1. Capital Expenditures …………………………………………………………………………. 41

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1. Management Status

Management Status

1. Overview during the period

a. Investment environment and operation

(i) Investment environment

The Japanese economy, during this period, continued to need close watching over uncertainty from surging prices for energy and raw materials across the globe, mainly due to the situation in Ukraine and accompanying price increase. With COVID-19 infections now settling down, social and economic activities are now becoming normal, and a further recovery in consumer spending and corporate capital spending has taken place. In particularly, the recovery has been gaining momentum since the downgrade of the COVID-19 to category V (a common infectious disease) in the Infectious Disease Act dated May 2023.

In the real estate investment market in Japan, the investment appetite of both domestic and overseas investors remains strong, so the market continues to be highly competitive. Two major reasons for this market strength are that the new governor of the Bank of Japan is maintaining the fiscal easing policy as well as the continuing credit uneasiness due to the bankruptcy of financial institutions in Europe and the US.

Similar to the last period, the real estate leasing market remained strong across the board during this period.

Sales of retail properties have been picking up steadily because Japanese people are going out more often and there are increasing numbers of overseas visitors coming to Japan due to the depreciated yen, although many prices are in an upward trend.

For hotels, guest room occupancy rates are gaining momentum due to promotions by the central and local governments as well as relaxed entry requirements for overseas travelers.

In office buildings, companies have largely completed reviewing their strategies, and office vacancy rates in major cities nationwide have been leveling off. A slowing trend for office rents has been seen in business districts in Tokyo and other cities.

Residential demand remains strong, and the occupancy rates and rents have been stable across the country.

In the logistics (warehousing) market, supply is continuing to grow in areas next to major cities nationwide, including the Tokyo Metropolitan Area. While the occupancy rates have been trending slightly downward, rents remain flat.

(ii) New acquisition

During the period, United Urban acquired the following three properties.

Moreover, the housing for the elderly, Granda Miyanomori, of which United Urban led the project as a development company for the first time, was constructed and United Urban additionally acquired the building portion of the property.

Property	Property Name	Type	Location	Acquisition Price	Acquisition Date
(Millions of yen)
No.	(Note 1)
		(Note 2)
D36	GRAND-ROUGE Joto	Apartment	Osaka, Osaka	1,755	December 22, 2022
E22	Sapporo Yonesato Logistics Center	Warehouse	Sapporo, Hokkaido	1,177
B50	OSAKA BAY TOWER (Note 3)	Office	Osaka, Osaka	2,637	March 20, 2023
	Subtotal (Above three properties)		5,569
E20	Granda Miyanomori (Building portion)	Nursing	Sapporo, Hokkaido	1,053	May 31, 2023
(Additional acquisition) (Note 4)	home	(Note 5)
	Total			6,622

Notes: 1. Of the types of use indicated in the real estate register, the primary type is stated. The same shall apply hereinafter.

1. The acquisition price and the sale price are stated based on the prices stated in the purchase and sale agreements, etc. concerning the acquisition or sale of each property. The acquisition price is rounded to the nearest whole unit. In addition, the amount of each price does not include expenses related to the acquisition or sale and consumption tax, etc. The same shall apply hereinafter.
2. The acquisition asset is 10% quasi co-ownership of the trust beneficial interest of the compartmentalized ownership in a part of

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