Industrial & Infrastructure Fund Investment : Financial Statements for the 31st Accounting Period (August 1, 2022 - January 31, 2023)

Financial Statements

Of

INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT CORPORATION

As of January 31, 2023

Industrial & Infrastructure Fund Investment Corporation (IIF) invests in social infrastructure as a source of power for the Japanese economy and supports Japan's industrial activities from the perspective of real estate.

Industrial & Infrastructure Fund Investment Corporation (IIF) was listed on the REIT securities market of the Tokyo Stock Exchange (securities code: 3249) in October 2007 as the only J-REITspecializing in industrial properties.

IIF aims to continuously expand unitholder valueby securing a stable profitand achieving steady growth of the properties under management. It aims to achieve this by investing in logistics facilities, manufacturing and research and development (R&D) facilities, and infrastructure facilities which play a vital role in various industrial activities and are expected to be utilized stably in the medium and long term (hereinafter collectively referred to as "industrial properties").

KJR Management

IIF has signed an asset management agreement with KJR Management (hereinafter referred to as the "Asset Manager") and consigned the asset management business based on its articles of incorporation and investment policy.

The Asset Manager manages IIF's portfolio with the aim of securing a stable profit and achieving steady growth of the properties under management in the medium and long term.

Distribution Per Unit

 The 31st Fiscal Period (Result: August 1, 2022 - January 31, 2023)	3,122 yen
	The 32nd Fiscal Period (Forecast: February 1, 2023 - July 31, 2023)	3,084 yen
	The 33rd Fiscal Period (Forecast: August 1, 2023 - January 31, 2024)	3,165 yen

Highlight of the 31st Period

				The 28th			The 29th			The 30th			The 31st			The 32nd		The 33rd
										Period			Period		Period
				Period			Period			Period
										(Actual)			(Forecast)		(Forecast)
	Operating Revenue	15,349	16,493		17,194		17,944		18,402		19,046
	(million yen)
	Net Income			6,663			5,786			6,492			5,940			6,630			7,146
	(million yen)
	Total Asset	407,428	413,419		417,430		422,345		-		-
	(million yen)
	Distribution per Unit			3,266			3,060			3,100			3,122			3,084			3,165
	(yen)*
	Net Asset Value	91,842	91,387		91,476		91,257		-		-
	per Unit (yen)

* The figures include distribution in excess of profit.

Greetings

I would like to take this opportunity to express my sincere gratitude to all investors for your ongoing support. I also would like to express my deepest sympathy to those who have suffered from the novel coronavirus disease, as well as to their families and related persons.

This report provides an update on IIF's performance for the fiscal period ended January 31, 2023 (the 31st period). In the fiscal period, IIF acquired IIF Yokkaichi Logistics Center (New Building) upon its completion, and disposed IIF Osaka Nanko IT Solution Center. As a result, the number of properties under management at the end of the fiscal period was 74, and the AUM was 378.9 billion yen (on an acquisition price basis).

With regards to IIF Hamura Logistics Center, IIF has concluded a construction contract with Suzuyo Construction and proceeds with redevelopment plan by utilizing surplus floor-area ratio and transformed into a versatile and latest logistics facility. In addition, as for ESG, IIF participated in the Carbon Disclosure Project (CDP) Climate Change Program for the first time and received a score of "A- ", the highest level of leadership, and received certification and registration under Eco Action 21, an environmental management system established by the Ministry of the Environment.

As a result of these activities, the distribution per unit (including distribution in excess of profit) for the period was 3,122 yen. Currently, the Japanese economy is gradually moving toward normalization of economic activities as restrictions on activities due to the spread of the novel coronavirus disease have been eased, but the impact of the sharp rise in resource prices due to the situation in Ukraine and other factors continue to be a concern. However, IIF will continue to strive for stable management and work to maximize unitholder value through continuous external and internal growth. I would like to look forward to your continuous support.

Kumi Honda

Executive Director

Industrial & Infrastructure Fund Investment Corporation

IIF Focus

Continuous improvement of asset value through acquisition of highly profitable properties by CRE proposal and promotion of redevelopment projects

Topics

• Announced in 11th public offering in March 2023, increasing asset size to 388.8 billion yen
• Acquisition of highly profitable properties through CRE/PRE and improvement of the unitholder value
• Stabilized distributions by distributing gains on the sale of IIF Kobe Logistics Center over three fiscal periods
• IIF participated in the Carbon Disclosure Project ("CDP") Climate Change Program for the first time in 2022 and received a score of " A- Score", the highest "Leadership" level.

Summary of the 31st Period (Fiscal Period Ended January 31, 2023)

In the period, due to the increase in rent revenues of IIF Yokkaichi Logistics Center (New Building) acquired in this fiscal period and the gain on sale from disposition of a property, operating revenue was 17,944 million yen (increase by 750 million yen from the previous period), and net income was 5,940 million yen (decrease by 551 million yen from the previous period).

As a result, the distribution per unit increased by 22 yen from the previous period to 3,122 yen (including distribution in excess of profit of 252 yen per unit*1). Net asset value (NAV) per unit*2 increased by 347 yen from the previous fiscal period to 133,322 yen.

IIF's portfolio as of January 31, 2023 consists of 74 properties worth 378.9 billion yen (based on acquisition price) with a total leasable area of 2,570,255.70 m2 and an occupancy rate of 98.8%*3.

The average remaining lease term is 10.5 years, and based on these long-term lease agreements, we have secured stable management.

Prospect for the 32nd Period (Fiscal Period Ending July 31, 2023), the 33rd Period (Fiscal Period Ending January 31, 2024) and Future Management Policies

We forecast an operating revenue of 18,402 million yen, net income of 6,630 million yen, a distribution per unit of 3,084 yen (no distribution in excess of profit) for the fiscal period ending July 31, 2023 (the 32nd period) and an operating revenue of 19,046 million yen, net income of 7,146 million yen, a distribution per unit of 3,165 yen (including distribution in excess of profit of 40 yen) for the fiscal period ending January 31, 2024 (the 33rd period).

As the only J-REIT specializing in industrial properties*4, IIF has pioneered manufacturing facility, research & development facilities and infrastructure facilities based upon our unique Corporate Real Estate (CRE*5) proposals. As a result, we have acquired the properties with low competition and high growth potential.

In February 2023, IIF announced the disposition of IIF Kobe Logistics Center, and in March 2023, IIF launched its 11th public offering, and by utilizing IIF's strength in CRE/PRE proposals, IIF has acquired