United Urban Investment : "To Our Unitholders" page has been updated.

First, we would like to express our deepest condolences to those people around the country who lost loved ones due to COVID-19 as well as to convey our deepest sympathy to all who were affected by this virus. We would also like to extend our sincere gratitude to the healthcare professionals who continue to devote themselves to combating COVID-19.

And we would like to express our sincere gratitude to you for your support and your patronage of United Urban Investment Corporation ('United Urban').

While there is good news, such as vaccinations beginning, the social and economic situation around the world is still being affected. Since the state of emergency was lifted in May 2020, the Japanese economy has been experiencing ups and down, though it is coming back at a moderate pace. However, the increase in the number of people infected with COVID-19 has been rising and we believe that the momentum for an economic recovery remains slow. With this unprecedented crisis, United Urban has tried to respond effectively and quickly to this situation and to stay focused on controlling the profit decline as well as stable operations with an eye on today and after the coronavirus is gone.

In the 34th fiscal period ended November 30, 2020, United Urban acquired REDWOOD Narita Distribution Centre (50% quasi co-ownership), a logistics facility in Sanbu, Chiba (acquisition price: 2.3 billion yen) under our diversified investment policy. At the same time, by comprehensively evaluating the real estate investment market and the potential of existing properties, United Urban carried out a divided sale for an office building, Nishi-Shimbashi 1-chome Building (sale price: 18.9 billion yen) in this fiscal period and the following (35th fiscal) period ending May 31, 2021. Moreover, to improve the quality of our assets and the profitability of our portfolio through the replacement of properties, United Urban, in the 35th fiscal period, acquired Toranomon Hills Mori Tower (a compartmentalized ownership of the 10th floor) (acquisition price: 10.0 billion yen) and Toranomon PF Building (acquisition price: 3.4 billion yen), both are office buildings in Minato-ku, Tokyo, as well as UUR Court Ibaraki Higashi-Chujo, a rental apartment in Ibaraki, Osaka (acquisition price: 1.6 billion yen).

United Urban posted operating revenues of 23,945 million yen and net income of 9,650 million yen (both revenue and earnings increased compared with the previous fiscal period) in the 34th fiscal period. These increases were due to suspending a projected decrease in revenues from an emergency response to tenants affected by the spread of COVID-19, an earnings recovery from existing properties, revenues from newly acquired properties, and a gain on the sale of a property. As a result, the cash distribution per unit for the 34th fiscal period became 3,119 yen (an increase of 819 yen compared with the initial forecast released in July 2020). Though United Urban also expected to record a gain on the sale of a property in the 35th fiscal period, it is expected that the impact of COVID-19 will remain for a while. Accordingly, the forecasts after the 35th fiscal period are based on certain assumptions.

As a diversified J-REIT investing in properties varied both in type of use and location, United Urban has been focusing on real estate with intrinsic value and has been pursuing selected investments in a range of real estate properties. Under the investment and management policy of implementing property management based on a hands-on approach, all of our officers and employees of United Urban and the asset management company have a firm awareness of our initiatives for ESG (environment, social, and governance) and make every effort to achieve sustainable growth, while coexisting with society and the environment. Since we are facing an unknown crisis, United Urban and the asset management company intend to perform our duties faithfully under the basic policy mentioned above.

Your continuing support and kind attention are highly appreciated.

January 2021