Industrial & Infrastructure Fund Investment : 32nd Fiscal Period Results (February 1, 2023 ~ July 31, 2023)

32nd Fiscal Period Results

(Flash Report)

February 1, 2023 - July 31, 2023

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

BALANCE SHEETS

As of January 31, 2023 and July 31, 2023

		(Thousands of yen)
	January 31, 2023	July 31, 2023
ASSETS
Current assets:
Cash and bank deposits	35,896,549	35,313,041
Cash and bank deposits in trust	6,127,572	6,055,811
Rental receivables	460,730	962,812
Prepaid expenses	854,422	1,922,130
Income taxes receivable	-	8
Consumption taxes refundable	231,481	-
Other	1,180	6,503
Total current assets	43,571,937	44,260,307
Noncurrent assets:
Property, plant and equipment:
Buildings, at cost	35,340,238	35,561,297
Less: Accumulated depreciation	(10,049,081)	(10,486,104)
Buildings, net	25,291,156	25,075,192
Structures, at cost	119,103	123,482
Less: Accumulated depreciation	(59,818)	(64,089)
Structures, net	59,284	59,393
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	26,719	26,719
Less: Accumulated depreciation	(14,387)	(15,614)
Tools, furniture and fixtures, net	12,331	11,104
Land	20,391,344	20,391,344
Construction in progress	1,896,652	2,105,502
Buildings in trust, at cost	107,188,558	111,123,286
Less: Accumulated depreciation	(19,578,286)	(20,917,421)
Buildings in trust, net	87,610,271	90,205,864
Structures in trust, at cost
Less: Accumulated depreciation	(630,733)	(685,227)
Structures in trust, net	748,832	799,968
Machinery and equipment in trust, at cost	132,642	132,642
Less: Accumulated depreciation	(69,927)	(77,135)
Machinery and equipment in trust, net	62,714	55,506
Tools, furniture and fixtures in trust, at cost	281,689	330,782
Less: Accumulated depreciation	(63,673)	(83,987)
Tools, furniture and fixtures in trust, net	218,016	246,795
Land in trust	221,334,622	228,823,627
Construction in progress in trust	8,760	9,830
Total net property, plant and equipment	357,633,987	367,784,130
Intangible assets:
Leasehold right	19,833,966	19,833,966
Other	3,257	2,027
Total intangible assets	19,837,223	19,835,993
Investments and other assets:
Investment in affiliates	-	356,826
Investment securities	83,335	-
Lease and guarantee deposits	10,200	10,200
Long-term prepaid expenses	1,098,664	1,034,723
Other	10,293	5,515
Total investments and other assets	1,202,493	1,407,264
Total noncurrent assets	378,673,704	389,027,389
Deferred assets:
Investment unit issuance costs	13,887	42,461
Investment corporation bonds issuance costs	85,918	79,321
Total deferred assets	99,806	121,783
TOTAL ASSETS	422,345,447	433,409,480

		(Thousands of yen)
	January 31, 2023	July 31, 2023
LIABILITIES
Current liabilities:
Operating accounts payable	1,863,179	1,386,496
Short-term loans payable	3,700,000	5,000,000
Current portion of investment corporation bonds - unsecured	-	2,000,000
Current portion of long-term loans payable	21,100,000	19,000,000
Accounts payable - other	764,375	840,410
Accrued expenses	148,510	138,329
Income taxes payable	1,513	615
Consumption taxes payable	-	295,472
Advances received	2,941,995	3,420,346
Other	707,687	231,089
Total current liabilities	31,227,262	32,312,760
Noncurrent liabilities:
Investment corporation bonds - unsecured	14,700,000	12,700,000
Long-term loans payable	168,783,000	173,583,000
Tenant leasehold and security deposits	2,630,414	2,640,473
Tenant leasehold and security deposits in trust	15,230,464	15,640,423
Asset retirement obligations	865,966	839,807
Other	3,069	2,428
Total noncurrent liabilities	202,212,914	205,406,132
TOTAL LIABILITIES	233,440,176	237,718,893
NET ASSTES
Unitholders' equity:
Unitholders' capital	183,865,203	189,683,850
Capital deduction:
Allowance for temporary difference adjustment	(283,073)	(781,924)
Other deduction of unitholders' capital	(641,451)	(641,451)
Total capital deduction
Unitholders' capital, net	182,940,679	188,260,474
Surplus:
Retained earnings	5,973,223	7,428,646
Total surplus	5,973,223	7,428,646
Total unitholders' equity	188,913,902	195,689,121
Valuation and translation adjustments:
Deferred gains or (losses) on hedges	(8,631)	1,465
Total valuation and translation adjustments	(8,631)	1,465
TOTAL NET ASSETS	188,905,271	195,690,586
TOTAL LIABILITIES AND NET ASSETS	422,345,447	433,409,480

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

STATEMENTS OF INCOME AND RETAINED EARNINGS

For the Six Months Ended

January 31, 2023 and July 31, 2023

		(Thousands of yen)
	For the six months ended
	January 31, 2023	July 31, 2023
Operating revenue
Rent revenue－real estate	16,492,989	16,986,729
Gain on sales of property	1,450,116	861,327
Dividend income from investments in Tokumei Kumiai	1,419	5
Total operating revenue	17,944,524	17,848,062
Operating expenses
Expenses related to property rental business	9,517,666	8,008,188
Asset management fees	1,276,422	1,284,797
Directors' compensations	7,440	7,440
Asset custody fees	9,463	9,585
Administrative service fees	40,433	39,199
Other	153,541	143,893
Total operating expenses	11,004,967	9,493,104
Operating income	6,939,556	8,354,958
Non-operating income
Interest income	192	208
Interest on refund	-	717
Reversal of distribution payable	419	504
Compensation income	16,201	-
Total non-operating income	16,813	1,430
Non-operating expenses
Interest expenses	674,378	652,746
Interest expenses on investment corporation bonds	63,163	42,106
Amortization of investment corporation bonds issuance costs	6,456	6,597
Borrowing related expenses	217,652	211,228
Amortization of investment unit issuance costs	29,913	20,736
Other	21,993	3,172
Total non-operating expenses
Ordinary income	5,942,812	7,419,800
Income before income taxes	5,942,812	7,419,800
Income taxes
Current	1,833	639
Total income taxes	1,833	639
Net income	5,940,979	7,419,161
Retained earnings brought forward
Unappropriated retained earnings	5,973,223	7,428,646

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

STATEMENTS OF CASH FLOWS

For the Six Months Ended

January 31, 2023 and July 31, 2023

		(Thousands of yen)
	For the six months ended
	January 31, 2023	July 31, 2023
Net cash provided by (used in) operating activities:
Income before income taxes	5,942,812	7,419,800
Depreciation and amortization	2,758,107	1,709,572
Amortization of investment corporation bonds issuance costs	6,456	6,597
Amortization of investment unit issuance costs	29,913	20,736
Interest income	(192)	(208)
Interest expenses	737,542	694,852
Changes in assets and liabilities:
Decrease (increase) in operating accounts receivable	325,004	(502,082)
Decrease (increase) in consumption taxes refundable	(231,481)	231,481
Decrease (increase) in prepaid expenses	139,397	(1,067,707)
Decrease (increase) in long-term prepaid expenses	72,722	63,941
Increase (decrease) in operating accounts payable	(174,477)	(482,327)
Increase (decrease) in accounts payable - other	(7,852)	35,184
Increase (decrease) in accrued expenses	969	(1,257)
Increase (decrease) in consumption taxes payable	(582,697)	295,472
Increase (decrease) in advances received	(56,664)	478,350
Increase (decrease) in other noncurrent liabilities	(1,142)	(640)
Decrease from sales of property and equipment in trust	1,144,984	1,995,548
Other, net	(31,408)	(116,021)
Subtotal
Interest income received	192	208
Interest expenses paid	(726,407)	(703,776)
Income taxes paid	(1,255)	(1,546)
Net cash provided by operating activities	9,344,522	10,076,179
Net cash provided by (used in) investing activities:
Purchases of property, plant and equipment	(1,151,774)	(386,687)
Purchases of property, plant and equipment in trust	(6,436,561)	(13,793,903)
Proceeds from tenant leasehold and security deposits	1,051	10,058
Proceeds from tenant leasehold and security deposits in trust	129,412	501,498
Payments of tenant leasehold and security deposits in trust	(373,010)	(91,539)
Purchase of investment in affiliates	-	(356,826)
Proceeds from investment securities	-	81,818
Net cash used in investing activities
Net cash provided by (used in) financing activities:
Proceeds from short-term loans payable	2,000,000	3,000,000
Repayments of short-term loans payable	(1,700,000)	(1,700,000)
Proceeds from long-term loans payable	10,500,000	12,800,000
Repayments of long-term loans payable	(5,000,000)	(10,100,000)
Proceeds from issuance of investment corporation bonds	4,700,000	-
Redemption of investment corporation bonds	(5,000,000)	-
Payments of investment corporation bonds issuance costs	(35,496)	(2,800)
Proceeds from issuance of investment units	-	5,818,647
Payments of investment unit issuance costs	-	(49,310)
Dividends paid	(6,416,640)	(6,462,404)
Net cash provided by (used in) financing activities	(952,137)	3,304,132
Net change in cash and cash equivalents	561,502	(655,269)
Cash and cash equivalents at beginning of period	41,462,619	42,024,121
Cash and cash equivalents at end of period	42,024,121	41,368,852