Industrial & Infrastructure Fund Investment : 30th Fiscal Period Results (February 1, 2022~ July 31, 2022)

30th Fiscal Period Results

(Flash Report)

February 1, 2022 - July 31, 2022

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

BALANCE SHEETS

As of January 31, 2022 and July 31, 2022

		(Thousands of yen)
	As of
	January 31, 2022	July 31, 2022
ASSETS
Current assets:
Cash and bank deposits	33,529,077	35,580,310
Cash and bank deposits in trust	7,175,794	5,882,308
Rental receivables	417,733	785,734
Prepaid expenses	793,121	993,820
Income taxes receivable	121	-
Consumption taxes refundable	338,989	-
Other	3,183	1,809
Total current assets	42,258,021	43,243,983
Noncurrent assets:
Property, plant and equipment:
Buildings, at cost	34,970,399	35,128,687
Less: Accumulated depreciation	(9,192,320)	(9,618,348)
Buildings, net	25,778,079	25,510,338
Structures, at cost	116,956	118,298
Less: Accumulated depreciation	(51,538)	(55,655)
Structures, net	65,418	62,643
Machinery and equipment, at cost	11,892	11,892
Less: Accumulated depreciation	(11,892)	(11,892)
Machinery and equipment, net	0	0
Tools, furniture and fixtures, at cost	26,461	26,719
Less: Accumulated depreciation	(11,762)	(13,091)
Tools, furniture and fixtures, net	14,699	13,627
Land	19,192,636	20,375,013
Construction in progress	51,500	985,268
Buildings in trust, at cost	101,084,532	101,999,452
Less: Accumulated depreciation	(16,911,155)	(18,470,039)
Buildings in trust, net	84,173,376	83,529,412
Structures in trust, at cost	1,100,489	1,108,452
Less: Accumulated depreciation	(539,118)	(581,465)
Structures in trust, net	561,371	526,987
Machinery and equipment in trust, at cost	132,642	132,642
Less: Accumulated depreciation	(55,511)	(62,719)
Machinery and equipment in trust, net	77,130	69,922
Tools, furniture and fixtures in trust, at cost	192,359	260,079
Less: Accumulated depreciation	(30,773)	(46,394)
Tools, furniture and fixtures in trust, net	161,585	213,684
Land in trust	219,702,701	221,685,590
Construction in progress in trust	14,806	8,641
Total net property, plant and equipment	349,793,306	352,981,131
Intangible assets:
Leasehold right	19,833,966	19,833,966
Other	5,741	4,486
Total intangible assets	19,839,707	19,838,452
Investments and other assets:
Investment securities	89,395	83,335
Lease and guarantee deposits	10,200	10,200
Long-term prepaid expenses	1,277,953	1,171,386
Other	4,050	4,050
Total investments and other assets	1,381,599	1,268,971
Total noncurrent assets	371,014,614	374,088,556
Deferred assets:
Investment unit issuance costs	87,479	43,801
Investment corporation bonds issuance costs	59,632	54,078
Total deferred assets	147,112	97,880
TOTAL ASSETS	413,419,748	417,430,420

		(Thousands of yen)
	As of
	January 31, 2022	July 31, 2022
LIABILITIES
Current liabilities:
Operating accounts payable	2,150,989	1,764,787
Short-term loans payable	-	3,400,000
Current portion of investment corporation bonds - unsecured	5,000,000	5,000,000
Current portion of long-term loans payable	12,000,000	15,100,000
Accounts payable - other	782,493	771,782
Accrued expenses	144,911	136,406
Income taxes payable	698	936
Consumption taxes payable	-	582,697
Advances received	2,908,018	2,998,660
Other	13,832	89,203
Total current liabilities	23,000,944	29,844,474
Noncurrent liabilities:
Investment corporation bonds - unsecured	10,000,000	10,000,000
Long-term loans payable	172,383,000	169,283,000
Tenant leasehold and security deposits	2,491,250	2,629,362
Tenant leasehold and security deposits in trust	15,435,646	15,474,062
Asset retirement obligations	886,119	835,531
Derivatives liabilities	49,434	1,227
Other	13	4,212
Total noncurrent liabilities	201,245,464	198,227,397
TOTAL LIABILITIES	224,246,409	228,071,871
NET ASSTES
Unitholders' equity:
Unitholders' capital	183,865,203	183,865,203
Capital deduction:
Allowance for temporary difference adjustment	(216,796)	(732,463)
Other deduction of unitholders' capital	(293,688)	(293,688)
Total capital deduction	(510,485)	(1,026,151)
Unitholders' capital, net	183,354,718	182,839,051
Surplus:
Retained earnings	5,876,591	6,550,920
Total surplus	5,876,591	6,550,920
Total unitholders' equity	189,231,310	189,389,972
Valuation and translation adjustments:
Deferred gains or (losses) on hedges	(57,971)	(31,423)
Total valuation and translation adjustments	(57,971)	(31,423)
TOTAL NET ASSETS	189,173,338	189,358,548
TOTAL LIABILITIES AND NET ASSETS	413,419,748	417,430,420

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

STATEMENTS OF INCOME AND RETAINED EARNINGS

For the Six Months Ended

January 31, 2022 and July 31, 2022

		(Thousands of yen)
	For the six months ended
	January 31, 2022	July 31, 2022
Operating revenue
Rent revenue－real estate	16,206,072	16,334,072
Gain on sales of property	285,967	858,612
Dividend income from investments in Tokumei Kumiai	1,524	1,447
Total operating revenue	16,493,563	17,194,132
Operating expenses
Expenses related to property rental business	8,228,437	8,293,561
Asset management fees	1,252,816	1,241,470
Directors' compensations	7,440	7,440
Asset custody fees	9,264	9,306
Administrative service fees	38,268	38,135
Other	168,251	141,844
Total operating expenses	9,704,479	9,731,759
Operating income	6,789,084	7,462,373
Non-operating income
Interest income	200	214
Interest on refund	-	795
Reversal of distribution payable	701	323
Other	14	-
Total non-operating income	915	1,333
Non-operating expenses
Interest expenses	672,086	646,822
Interest expenses on investment corporation bonds	60,362	62,207
Amortization of investment corporation bonds issuance costs	5,263	5,554
Borrowing related expenses	213,223	207,586
Amortization of investment unit issuance costs	49,429	43,678
Other	1,790	3,682
Total non-operating expenses	1,002,156	969,530
Ordinary income	5,787,844	6,494,176
Income before income taxes	5,787,844	6,494,176
Income taxes
Current	918	1,264
Total income taxes	918	1,264
Net income	5,786,926	6,492,911
Retained earnings brought forward	89,665	58,009
Unappropriated retained earnings	5,876,591	6,550,920

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

STATEMENTS OF CASH FLOWS

For the Six Months Ended

January 31, 2022 and July 31, 2022

		(Thousands of yen)
	For the six months ended
	January 31, 2022	July 31, 2022
Net cash provided by (used in) operating activities:
Income before income taxes	5,787,844	6,494,176
Depreciation and amortization	2,456,241	2,161,044
Amortization of investment corporation bonds issuance costs	5,263	5,554
Amortization of investment unit issuance costs	49,429	43,678
Interest income	(200)	(214)
Interest expenses	732,449	709,029
Changes in assets and liabilities:
Decrease (increase) in operating accounts receivable	354,786	(368,001)
Decrease (increase) in consumption taxes refundable	(338,989)	338,989
Decrease (increase) in prepaid expenses	45,812	(200,698)
Decrease (increase) in long-term prepaid expenses	(77,199)	106,567
Increase (decrease) in operating accounts payable	362,781	(140,436)
Increase (decrease) in accounts payable - other	1,345	25,214
Increase (decrease) in accrued expenses	0	103
Increase (decrease) in consumption taxes payable	(951,602)	582,697
Increase (decrease) in advances received	511,945	90,641
Increase (decrease) in other noncurrent liabilities	(43)	4,198
Decrease from sales of property and equipment in trust	7,838,629	995,482
Other, net	(25,435)	13,204
Subtotal	16,753,059	10,861,229
Interest income received	200	214
Interest expenses paid	(718,023)	(717,637)
Income taxes paid	(1,195)	(904)
Net cash provided by operating activities	16,034,039	10,142,901
Net cash provided by (used in) investing activities:
Purchases of property, plant and equipment	(111,994)	(2,303,022)
Purchases of property, plant and equipment in trust	(20,660,930)	(4,330,386)
Proceeds from tenant leasehold and security deposits	-	138,202
Payments of tenant leasehold and security deposits	-	(90)
Proceeds from tenant leasehold and security deposits in trust	2,036,905	334,941
Payments of tenant leasehold and security deposits in trust	(408,179)	(296,526)
Proceeds from investment securities	-	6,060
Net cash used in investing activities	(19,144,198)	(6,450,820)
Net cash provided by (used in) financing activities:
Proceeds from short-term loans payable	5,000,000	3,400,000
Repayments of short-term loans payable	(5,000,000)	-
Proceeds from long-term loans payable	5,600,000	7,000,000
Repayments of long-term loans payable	(5,600,000)	(7,000,000)
Proceeds from issuance of investment corporation bonds	5,000,000	-
Payments of investment corporation bonds issuance costs	(41,148)	-
Dividends paid	(6,763,200)	(6,334,334)
Net cash used in financing activities	(1,804,349)	(2,934,334)
Net change in cash and cash equivalents	(4,914,507)	757,746
Cash and cash equivalents at beginning of period	45,619,379	40,704,872
Cash and cash equivalents at end of period	40,704,872	41,462,619