United Urban Investment : SUMMARY OF FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED NOVEMBER 30, 2018 (June 1, 2018 - November 30, 2018)

For Translation Purposes Only

January 18, 2019

SUMMARY OF FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED

NOVEMBER 30, 2018 (June 1, 2018 - November 30, 2018)

Name of issuer: Listing: Securities code: URL: Representative:

Asset Management Company: Representative:

United Urban Investment Corporation (United Urban) Tokyo Stock Exchange 8960http://www.united-reit.co.jp/eng/ Ikuo Yoshida, Executive Officer Japan REIT Advisors Co., Ltd.

Inquiries:

Norimasa Gaun, President and Chief Executive Officer Kenichi Natsume, Chief Financial Officer

TEL: [phone]

Scheduled date of filing of Securities Report:	February 27, 2019
Scheduled date for commencing dividend payments:	February 15, 2019
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 November 30, 2018 (June 1, 2018 - November 30, 2018)

(1) Business Results

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

Operating RevenuesOperating IncomeOrdinary IncomeNet Income

Millions of yen

% Millions of yen

% Millions of yen

% Millions of yen

%

Fiscal period ended November 30, 2018 Fiscal period ended May 31, 2018

25,733 (11.8) 29,166

12.5

12,894 13,089

(1.5)

4.9

11,789 11,974

(1.5)

5.8

11,788 11,973

(1.5)

5.8

Net Income per Unit	Return on Equity	Return on Assets	Ordinary Income to Operating Revenues
Fiscal period ended November 30, 2018 Fiscal period ended May 31, 2018	Yen 3,858 3,919	% 3.3 3.4	% 1.8 1.8	% 45.8 41.1

(2) Distributions

Distributions per Unit (excluding excess of earnings)	Total Cash Distributions (excluding excess of earnings)	Distributions in Excess of Earnings per Unit	Total Distributions in Excess of Earnings	Payout Ratio	Distribution Ratio to Unitholders' Equity
Fiscal period ended November 30, 2018 Fiscal period ended May 31, 2018	Yen 3,473 3,530	Millions of yen 10,610 10,784	Yen 0 0	Millions of yen 0 0	% 90.0 90.0	% 3.0 3.0

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

2. For both fiscal period, because a portion of unappropriated retained earnings was reserved (Fiscal period ended May 31, 2018: ¥1,264 million, Fiscal period ended November 30, 2018: ¥1,254 million as a reserve for reduction entry, etc.) and a reversal of reserve for temporary difference adjustments (Fiscal period ended May 31, 2018: ¥75 million, Fiscal period ended November 30, 2018: ¥76 million) was added to the net income, there was a difference between cash distribution per unit and net income per unit.

(3) Financial Position

Total Assets	Total Unitholders' Equity (Net Asset)	Equity Ratio	Net Asset per Unit
Fiscal period ended November 30, 2018 Fiscal period ended May 31, 2018	Millions of yen 651,242 648,503	Millions of yen 356,029 355,017	% 54.7 54.7	Yen 116,536 116,205

(4) Conditions of Cash Flows

Cash Flows from Operating Activities	Cash Flows from Investing Activities	Cash Flows from Financing Activities	Cash and Cash Equivalents at the End of the Period
Fiscal period ended November 30, 2018 Fiscal period ended May 31, 2018	Millions of yen 14,271 13,295	Millions of yen (5,001) 97	Millions of yen (9,283) (26,054)	Millions of yen 49,652 49,665

2. Forecasts of Results for the Fiscal Period Ending May 31, 2019 (December 1, 2018 - May 31, 2019) and the Fiscal Period Ending November 30, 2019 (June 1, 2019 - November 30, 2019)

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

Operating Revenues		Operating Income		Ordinary Income		Net Income		Distributions per Unit (excluding excess of earnings)	Distributions in Excess of Earnings per Unit
Fiscal period ending May 31, 2019 Fiscal period ending November 30, 2019	Millions of yen 27,126 24,532	% 5.4 (9.6)	Millions of yen 13,101 11,401	% 1.6 (13.0)	Millions of yen 11,949 10,311	% 1.4 (13.7)	Millions of yen 11,949 10,310	% 1.4 (13.7)	Yen 3,550 3,400	Yen 0 0

Distributions

[Reference] Estimated net income per unit (full business year): Fiscal period ending May 31, 2019 ¥3,911 Fiscal period ending November 30, 2019 ¥3,374

Note: The resource for cash distributions for the fiscal period ending May 31, 2019 is the result of adding a reversal of reserve for temporary difference adjustments (¥76 million) to the net income while accumulating the reserve for reduction entry (¥1,179 million) from the net income. The resource for cash distributions for the fiscal period ending November 30, 2019 is the result of adding a reversal of reserve for temporary difference adjustments (¥76 million) to the net income. Therefore, it differs from "net income" of each fiscal period.

＊Other

• (1) Change in Accounting Policies, Change in Accounting Estimate, and Restatement

  • 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

• (2) Total Number of Investment Units Issued and Outstanding

  • 1. Total number of investment units issued at the end of the fiscal period (including treasury investment units)

    As of November 30, 2018: 3,055,087 units

    As of May 31, 2018: 3,055,087 units

  • 2. Treasury investment units at the end of the fiscal period

    As of November 30, 2018: None

    As of May 31, 2018: None

    Note: For the number of investment units used as the basis for the calculation of net income per unit, please refer to "Notes to Per

  Unit Information" on page 26.

• (3) 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.

  Description of implementation status of audit procedure

  • • As of January 18, 2019, the audit procedure of the financial statements under the FinancialInstruments and Exchange Act has not been completed.

Explanation for appropriate use of result forecasts and other special instructions

• • Forward-looking statements contained in this material are our current expectations produced as of operating income, ordinary income, net income, 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 May 31, 2019 (31st fiscal period: from December 1, 2018 to May 31, 2019) and the Fiscal Period Ending November 30, 2019 (32nd fiscal period: from

the date hereof, based on certain assumptions. Accordingly, the actual operating revenues,

June 1, 2019 to November 30, 2019)" below.

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 November 30, 2018. 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.

Table of Contents

1.	Related Corporations of Investment Corporation ……………………………………………….....	5
2.	Management Policies and Management Status ………………………………………………… ...	5
(1) Management Policies ……………………………………………………………………… ..	5
(2) Management Status ……………………………………………………………………… ..	5
3.	Financial Statement ……………………………………………………………………………… .	13
(1) Balance Sheet ………………………………………………………………………………....	13
(2) Statement of Income and Retained Earnings ………………………………………………....	15
(3) Statements of Unitholders' Equity …………………………………………………………… .	16
(4) Statements of Cash Distribution …………………………………………………………… .	18
(5) Statements of Cash Flows ………………………………………… ... …………………….....	19
(6) Notes to Assumption of Going Concern …………………………………………………… .	20
(7) Notes to Important Accounting Policies …………………………………………………… .	20
(8) Notes to Financial Statements ………………………………………………………………	21
(9) Change in Total Number of Investment Units Issued and Outstanding ………………………	28
4.	Change in Directors …………………………………………………………………………… ...	28
5.	Reference Information ……………………………………………………………………………	29
(1) Composition of Portfolio ………………………………………………………………………	29
(2) Investment Assets ………………………………………………………………………… .	30
(3) Capital Expenditures ………………………………………………………………………… .	38
(4) Information Concerning Tenants ………………………………………………………………	40
4

• 1. Related Corporations of Investment Corporation

  Structure of Investment Corporation

  As there are no significant changes in "Structure of Investment Corporation" stated in the latest Securities Report (submitted on August 30, 2018), the disclosure is omitted.

• 2. Management Policies and Management Status

  • (1) Management Policies

• As there are no significant changes in "Investment Policies," "Investment Targets," "Distribution Policies" and "Investment Restriction" stated in the latest Securities Report (submitted on August 30, 2018), the disclosure is omitted.

• (2) Management Status

1. Overview during the period

a. Investment environment and operation

• (i) Investment environment

  Japanese economy during this period remains stable due to the good condition of corporate performance. Overseas, although there are concerns over the rise of interest rates and the trade friction, etc. in the United States, financing environment has been generally favorable in Japan due to the low interest rate.

  In the real estate sales market, transaction prices are still increasing against a background of active investment demand from domestic and foreign investors in the continuation of favorable financing environment. With regard to the real estate rental market, as for retail properties, the sales of urban type properties has been mainly stable, and the rental market for retail properties remains steady. As for office buildings, although there are new supplies in Tokyo area, extended demands for corporates' business expansion are strong and there is favorable progress in contracts with tenants for the new large-scale buildings which was completed in 2018. The vacancy ratio in Sapporo, Osaka, Nagoya, Fukuoka, etc. has kept historical low, and it also has kept low in the Tokyo metropolitan area and major cities throughout Japan. The asking rents have continued to rise. Number of inbound tourists was 28.69 million in 2017, increased by 19% compared with the previous year, and it keeps good condition in 2018 even though it reduced temporary because of typhoons and earthquakes etc. And the sale of hotels has been favorable mainly in the local areas. As for residential properties, while the supply of new properties is increasingly limited, rental properties have a steady demand, and both the occupancy ratio and rent levels remains stable.

• (ii) New acquisition and sale of properties

During the period, United Urban acquired the following three properties. In addition, United Urban exchanged a part of the land of Shin-Sapporo Center Building (6.39sq. m) for a part of the adjacent land owned by City of Sapporo (6.39sq. m) on August 24, 2018.

Property No.	Property Name	Type (Note 1)	Location	Acquisition Price (Millions of yen) (Note 2)	Acquisition Date
D29	Chatle Otemachi S・N	Apartment	Kitakyusyu, Fukuoka	3,398	July 3, 2018
C16	the b fukuoka tenjin	Hotel	Fukuoka, Fukuoka	3,000	September 27, 2018
E13	Musashimurayama Logistics Center	Warehouse	Musashimurayama, Tokyo	1,800	October 30, 2018
Total				8,198

On the other hand, the second transfer of the sale of Himonya Shopping Center was executed on November 1, 2018 based on the sale and purchase agreement of the trust beneficial interest dated May 24, 2018.