United Urban Investment : Thirty-fifth Fiscal Period Semiannual Report

Semiannual Report

Thirty-fifth Fiscal Period

From December 1, 2020 to May 31, 2021

P r o f i l e

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
																520.0	520.1
500										471.2		474.9	493.1

416.7 422.6 429.0

400387.2

300

Listed on TSE

(Dec. 2003)	220.0
200
100	64.7
0	1st FP	14th FP	15th FP	16th FP	17th FP	18th FP	19th FP	20th FP	21st FP	22nd FP	23rd FP
	(May/2004)	(Nov/2010)	(May/2011)	(Nov/2011)	(May/2012)	(Nov/2012)	(May/2013)	(Nov/2013)	(May/2014)	(Nov/2014)	(May/2015)
No. of	14	50	86	90	91	94	97	97	103	108	108
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. Acquisitions and Sale of Properties

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.

						643.8	661.5	656.4	671.4
	621.6	610.9	608.6	613.9	626.1
575.5	590.4

548.7

24th FP	25th FP	26th FP	27th FP	28th FP	29th FP	30th FP	31st FP	32nd FP	33rd FP	34th FP	35th FP
(Nov/2015)	(May/2016)	(Nov/2016)	(May/2017)	(Nov/2017)	(May/2018)	(Nov/2018)	(May/2019)	(Nov/2019)	(May/2020)	(Nov/2020)	(May/2021)
117	118	119	123	116	116	119	120	122	129	130	133

9	Investment Unit Information	26	Profile of Asset Management Company
10	Financial Status	27	Performance Report
12	ESG Initiatives	61	Financial Section

1. Portfolio Properties

1. Corporate Profile

United Urban Investment Corporation 1

Key Figures (As of May 31, 2021)

Cash Distribution per Unit for the 35th Fiscal Period

¥3,182

Total Acquisition Price

¥671billion

Occupancy Ratio

Number of Properties

97.3% 133

Loan-to-Value Ratio (LTV) (Note)

Ratings (As of July 20, 2021)

Long-term issuer rating

35.0% JCR AA

Rating outlook: Stable

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

Appraisal values at the end of the period - Book value at the end of the period)

2 United Urban Investment Corporation

Financial Highlights

(Millions of yen, except per unit information)

	31st Fiscal Period	32nd Fiscal Period	33rd Fiscal Period	34th Fiscal Period	35th Fiscal Period
		December 1, 2018-		June 1, 2019-		December 1, 2019-		June 1, 2020-		December 1, 2020-
		May 31, 2019		November 30, 2019		May 31, 2020		November 30, 2020		May 31, 2021
Operating revenues	¥	27,261	¥	24,671	¥	23,565	¥	23,945	¥	24,198
Operating income		13,569		11,565		10,622		10,644		10,784
Ordinary income		12,413		10,544		9,633		9,650		9,847
Net income		12,413		10,543		9,633		9,650		9,847
Total cash distribution		11,184		10,711		10,820		9,726		9,922
Cash distribution per unit (Yen)		3,661		3,435		3,470		3,119		3,182
Total assets		680,901		678,208		694,089		701,982		704,135
Total net assets		357,789		367,970		366,863		365,666		365,797
Net assets per unit (Yen)		117,112		118,002		117,647		117,263		117,305

Cash distribution per unit

(Yen)

4,000

3,530

3,661

3,358

3,473

3,435

3,470

3,250

3,119

3,182

3,100

3,100

2,953

3,000

3,010

3,000

2,000

1,000

0

24th FP

25th FP

26th FP

27th FP

28th FP

29th FP

30th FP

31st FP

32nd FP

33rd FP

34th FP

35th FP

36th FP (forecast)

37th FP (forecast)

(Nov/2015)

(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)

Operating revenues / Net income

(Millions of yen)

Operating revenues

Net income

30,000
25,000
20,000
15,000
10,000
5,000
0	32nd Period	33rd Period	34th Period	35th Period
31st Period

Total assets / Total net assets / Net assets per unit

(Millions of yen)		Total assets		Total net assets		Net assets per unit	(Yen)

700,000				120,000
600,000
500,000				115,000
400,000				110,000
300,000
200,000				105,000
100,000
0	32nd Period	33rd Period	34th Period	0
31st Period	35th Period

United Urban Investment Corporation 3