United Urban Investment : "To Our Unitholders" page has been updated.

First, we would like to express our deepest condolences to those people around the country who lost loved ones to COVID-19 as well as our deepest sympathy to everyone affected by this virus. We would also like to extend our sincere gratitude to the healthcare professionals who continue to devote themselves to combating COVID-19.

We would also like to express our sincere gratitude to you for your support and your patronage of United Urban Investment Corporation ('United Urban').

I am Toshiaki Emon, and I assumed the position of the Executive Officer of United Urban on September 1, 2021. I will dedicate all my effort to achieve our future growth and would like to humbly ask you for the same support and help given to my predecessor.

Under our diversified investment policy, in the 35th fiscal period ended May 31, 2021, United Urban acquired Toranomon Hills Mori Tower (a compartmentalized ownership of the 10th floor) (acquisition price: 10.0 billion yen) and Toranomon PF Building (acquisition price: 3.4 billion yen), both are office buildings in Minato-ku, Tokyo. We also acquired UUR Kyobashi East Building, an office building in Chuo-ku, Tokyo (acquisition price: 7.2 billion yen), and UUR Court Ibaraki Higashi-Chujo, a rental apartment in Ibaraki, Osaka (acquisition price: 1.6 billion yen). In this fiscal period, we also carried out the second divided sale (50%) for an office building, Nishi-Shimbashi 1-chome Building (total sale price: 18.9 billion yen) following the first divided sale (50%) in the previous fiscal period. In the 36th fiscal period ending November 30, 2021, after comprehensively evaluating the real estate investment market and the potential of existing properties, United Urban acquired a retail facility in Nagareyama, Chiba and a logistic facility in Kazo, Saitama (total acquisition price: 7.0 billion yen) as well as sold a clinic building in Shibuya-ku, Tokyo. We have improved the quality and the profitability of our portfolio through the replacement of properties.

In the 35th fiscal period, United Urban posted operating revenues of 24,198 million yen and net income of 9,847 million yen. Both revenue and earnings increased compared with the previous fiscal period. These increases were due to avoiding a projected fall in revenues from an emergency response to tenants affected by the spread of COVID-19, an earnings recovery from existing properties, revenues from newly acquired properties, and a gain on the sale of a property. As a result, the cash distribution per unit for the 35th fiscal period became 3,182 yen (an increase of 52 yen compared with the initial forecast released in January 2021). Because the impact of COVID-19 is expected to be felt for some time, the forecasts after the 36th fiscal period are based on certain assumptions.

While the economic situation around the world is still being affected by COVID-19, some overseas countries are seeing a recovery to a more normalized economy with the progress of vaccinations. In Japan, we are beginning to see some promising signs for our daily life returning to the way it was as vaccinations are taking place for wide range of age groups. However, we believe more time will be required for a full economic recovery. Under these circumstances, United Urban will focus on improving the profitability of our portfolio as well as stable operations after the coronavirus is gone.

Your continuing support and kind attention are highly appreciated.

September 2021