United Urban Investment: The “To Our Unitholders” page has been updated.

We would like to express our sincere appreciation for your support and sponsorship of United Urban Investment Corporation (“United Urban”).

As part of our diversified investment policy, during the 36th fiscal year ended November 30, 2021, United Urban acquired LEVEN Otakanomori, a retail center in Nagareyama, Chiba (acquisition price: $3.8 billion). yen), as well as Kazo Logistics Center I・II in Kazo, Saitama (acquisition price: 3.2 billion yen) and Kobe Seishin Logistics Center in Kobe, Hyogo (acquisition price: 1.9 billion yen ), are both logistics facilities. At the same time, after a thorough assessment of the real estate investment market and the potential of existing properties, we sold Quartz Tower, a clinic building in Shibuya-ku, Tokyo (sale price: 5.8 billion yen ). As a result, we have improved the quality and profitability of our portfolio by replacing properties.

For the 36th year, rental income increased compared to the previous year. This increase is due to the avoidance of an expected drop in income from the social response to tenants affected by the spread of COVID-19, as well as a recovery in income from existing properties and income from newly acquired properties. However, operating revenue was down from the prior period due to a reduction in the gain on sale of property sold in the 35th fiscal year, and United Urban recorded operating revenue of $22.772 million. of yen. Additionally, net profit also declined from the prior period after recording impairment losses (1,139 million yen) for Fuchu Building totaling 7,350 million yen. The cash distribution per unit for the 36th fiscal period remained at 3,100 yen using retained earnings based on the asset management policy under COVID-19 (Note) announced during the 34th fiscal period. Although Japan’s infection status gradually recovered at the end of 2021, thanks to the full deployment of COVID-19 vaccinations for a wide range of ages, we believe that the global recovery will need more of time. Therefore, the forecasts for the 37th and 38th years are based on certain assumptions.

Amid global concern over the spread of infections by the new variant of COVID-19, it is still difficult to predict when the socio-economic impact of COVID-19 will end. Some countries and companies have launched new initiatives to coexist with COVID-19, and changes in social structure may continue. Under these circumstances, United Urban will accurately identify new needs emerging in the time of COVID-19 and focus on stable mid- to long-term operations.

Your continued support and kind attention is greatly appreciated.

(Note) Asset Management Policy in the Context of COVID-19
United Urban will focus on stable management in accordance with the following basic policies for sustainable growth in unitholder value.
・Replacements of properties that will serve to improve the quality and profitability of the portfolio
・Balancing social responses with stable portfolio management
・Flexible financial management according to change
・Stable distribution through reversal of retained earnings

January 2022

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