Japan Metropolitan Fund Investment : The 42nd Fiscal Period Results (September 1, 2022 – February 28, 2023)

Japan Metropolitan Fund Investment Corporation

The 42nd Fiscal Period Financial Results

(September 1, 2022 - February 28, 2023)

JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

BALANCE SHEETS

As of August 31, 2022 and February 28, 2023

		(Thousands of yen)
	As of
	August 31, 2022	February 28, 2023
ASSETS
Current assets:
Cash and bank deposits	41,232,640	45,095,708
Cash and bank deposits in trust	21,367,760	19,180,353
Rent receivables	1,092,389	1,155,290
Advance payments to suppliers	-	405,900
Income taxes receivable	46,968	53,444
Derivatives	12,823	16,413
Other current assets	1,295,543	1,306,404
Total current assets	65,048,126	67,213,514
Non-current assets:
Property and equipment:
Buildings	2,482,490	2,485,272
Accumulated depreciation	(864,768)	(899,524)
Buildings, net	1,617,722	1,585,748
Building improvements	66,693	66,137
Accumulated depreciation	(33,592)	(34,767)
Building improvements, net	33,100	31,369
Furniture and fixtures	21,358	20,449
Accumulated depreciation	(16,775)	(16,942)
Furniture and fixtures, net	4,582	3,507
Land	28,459,580	28,976,260
Construction in progress	23,121	1,200
Buildings in trust	344,708,848	347,971,113
Accumulated depreciation	(119,854,390)	(125,114,532)
Buildings in trust, net	224,854,457	222,856,580
Building improvements in trust	12,241,876	12,294,915
Accumulated depreciation	(5,053,364)	(5,227,457)
Building improvements in trust, net	7,188,512	7,067,457
Machinery and equipment in trust	2,158,419	2,291,621
Accumulated depreciation	(1,428,282)	(1,473,823)
Machinery and equipment in trust, net	730,137	817,797
Furniture and fixtures in trust	5,181,492	5,251,024
Accumulated depreciation	(3,451,056)	(3,585,375)
Furniture and fixtures in trust, net	1,730,436	1,665,649
Land in trust	879,828,471	878,591,415
Construction in progress in trust	829,471	825,850
Total property and equipment	1,145,299,594	1,142,422,837
Intangible assets:
Goodwill	14,845,511	14,444,281
Leasehold rights in trust	5,013,772	4,993,698
Other intangible assets	298,730	292,953
Other intangible assets in trust	77,546	61,697
Total intangible assets	20,235,561	19,792,631
Investment and other assets:
Investment securities	14,285,653	15,833,992
Lease deposits in trust	1,479,615	1,467,115
Long-term prepaid expenses	2,326,024	2,402,032
Derivatives	130,815	317,606
Other investments	1,036	1,036
Total investment and other assets	18,223,146	20,021,782
Total non-current assets	1,183,758,302	1,182,237,251
Deferred assets:
Investment corporation bond issuance costs	157,618	153,395
Total deferred assets	157,618	153,395
TOTAL ASSETS	1,248,964,047	1,249,604,161
(To be continued on the following page)

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		(Thousands of yen)
	As of
	August 31, 2022	February 28, 2023
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable - operating	4,686,498	4,813,652
Short-term borrowings	6,000,000	6,200,000
Current portion of long-term bonds issued - unsecured	8,000,000	15,500,000
Current portion of long-term borrowings	46,700,000	41,300,000
Accounts payable - other	34,321	42,214
Accrued expenses	2,138,071	2,074,982
Income taxes payable	605	605
Consumption tax payable	1,028,389	776,594
Rent received in advance	4,410,820	4,456,354
Deposits received	2,076,158	1,495,721
Current portion of tenant leasehold and security deposits in trust	168,065	68,065
Current portion of asset retirement obligations	-	112,293
Other current liabilities	144,600	113,094
Total current liabilities	75,387,529	76,953,578
Non-current liabilities:
Long-term bonds issued - unsecured	54,500,000	50,000,000
Long-term borrowings	434,445,000	437,645,000
Tenant leasehold and security deposits	1,855,204	1,883,804
Tenant leasehold and security deposits in trust	57,072,720	57,093,442
Asset retirement obligations	837,316	726,539
Other non-current liabilities	89,860	79,797
Total non-current liabilities	548,800,101	547,428,585
TOTAL LIABILITIES	624,187,631	624,382,163
Net Assets
Unitholders' equity:
Unitholders' capital	411,878,082	411,878,082
Surplus:
Capital surplus	202,855,188	202,855,188
Deduction from capital surplus	(11,999,843)	(11,999,843)
Capital surplus, net	190,855,344	190,855,344
Voluntary reserve
Reserve for reduction entry of property	1,160,420	1,160,420
Reserve for dividends	3,915,072	3,915,072
Retained earnings for temporary difference adjustment	928,434	834,795
Total voluntary reserve	6,003,928	5,910,288
Retained earnings	15,722,673	15,964,846
Total surplus	212,581,946	212,730,479
Total unitholders' equity	624,460,028	624,608,562
Valuation and translation adjustments:
Net unrealized holding gains (losses) on investment securities	172,748	279,415
Deferred gains on hedges	143,639	334,020
Total valuation and translation adjustments	316,387	613,435
TOTAL NET ASSETS	624,776,416	625,221,997
TOTAL LIABILITIES AND NET ASSETS	1,248,964,047	1,249,604,161

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JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

STATEMENTS OF INCOME AND RETAINED EARNINGS

For the Six Months Ended

August 31, 2022 and February 28, 2023

		(Thousands of yen)
	For the six months ended
	August 31, 2022	February 28, 2023
Operating revenues
Rent and other operating revenues	39,006,993	39,674,615
Gain on sales of property	1,831,201	1,345,346
Dividend income	274,236	313,031
Total operating revenues	41,112,430	41,332,993
Operating expenses
Property-related expenses	18,245,748	18,761,466
Loss on sales of property	420,972	-
Asset management fees	3,735,114	3,682,963
Custodian fees	34,133	33,534
General administration fees	154,924	152,116
Compensation for Directors	5,782	5,782
Amortization of goodwill	401,230	401,230
Other operating expenses	419,778	408,629
Total operating expenses	23,417,685	23,445,722
Operating income	17,694,745	17,887,270
Non-operating revenues
Interest income	295	323
Subsidy income	2,238	-
Compensation income	-	33,802
Other non-operating revenues	3,531	2,286
Total non-operating revenues	6,064	36,412
Non-operating expenses
Interest expenses	1,395,192	1,354,246
Interest expenses on investment corporation bonds	187,295	188,558
Amortization of investment corporation bond issuance costs	24,965	26,614
Loan-related costs	366,802	351,787
Loss on retirement of non-current assets	-	33,802
Other non-operating expenses	3,276	3,223
Total non-operating expenses	1,977,532	1,958,231
Ordinary income	15,723,278	15,965,451
Income before income taxes	15,723,278	15,965,451
Income taxes
Current	605	605
Total income taxes	605	605
Net income	15,722,673	15,964,846
Unappropriated earnings at beginning of period	-	-
Retained earnings at the end of period	15,722,673	15,964,846

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JAPAN METROPOLITAN FUND INVESTMENT CORPORATION

STATEMENTS OF CASH FLOWS

For the Six Months Ended

August 31, 2022 and February 28, 2023

		(Thousands of yen)
	For the six months ended
	August 31, 2022	February 28, 2023
Cash Flows from Operating Activities:
Income before income taxes	15,723,278	15,965,451
Adjustments to reconcile income before income taxes to net cash provided by
operating activities:
Depreciation	6,015,183	5,848,434
Amortization of goodwill	401,230	401,230
Amortization of investment corporation bond issuance costs	24,965	26,614
Gain on sales of property	(1,831,201)	(1,345,346)
Loss on sales of property	420,972	-
Loss on retirement of non-current assets	76,165	112,787
Interest income	(295)	(323)
Interest expenses	1,582,487	1,542,804
Changes in assets and liabilities:
(Increase) decrease in rent receivables	(78,824)	(62,595)
(Increase) decrease in income taxes receivable	(2,463)	(6,475)
(Increase) decrease in consumption tax refundable	250,604	-
(Increase) decrease in long-term prepaid expenses	(211,769)	(76,007)
Increase (decrease) in accounts payable - operating	872,751	(294,488)
Increase (decrease) in consumption tax payable	1,028,389	(251,794)
Increase (decrease) in accounts payable - other	(6,028)	8,655
Increase (decrease) in accrued expenses	38,876	(34,218)
Increase (decrease) in rent received in advance	(118,378)	45,534
Increase (decrease) in deposits received	399,173	(231,109)
Other, net	(194,584)	33,491
Sub total	24,390,534	21,682,644
Interest received	295	323
Interest expenses paid	(1,580,157)	(1,569,859)
Income taxes paid	(605)	(605)
Net cash provided by operating activities	22,810,066	20,112,503
Cash Flows from Investing Activities:
Purchase of property and equipment	(24,763)	(524,323)
Deposit for purchase of property and equipment	-	(405,900)
Purchase of property and equipment in trust	(7,385,851)	(4,161,380)
Proceeds from sales of property and equipment in trust	8,365,914	3,601,089
Payments for sales of property and equipment in trust	(158,697)	(46,598)
Purchase of intangible assets	(31,707)	(14,312)
Purchase of intangible assets in trust	(5,486)	(12,615)
Proceeds from tenant leasehold and security deposits	33,898	28,600
Payments of tenant leasehold and security deposits in trust	(1,591,628)	(2,014,630)
Proceeds from tenant leasehold and security deposits in trust	1,493,137	1,381,346
Payments of lease deposits in trust	(111)	-
Proceeds from lease deposits in trust	7,500	12,500
Investment in securities	(1,102,900)	(1,441,520)
Payments for restricted bank deposits in trust	-	(412,529)
Proceeds from restricted bank deposits in trust	-	290,344
Net cash used in investing activities	(400,695)	(3,719,930)
Cash Flows from Financing Activities:
Proceeds from short-term borrowings	8,000,000	6,200,000
Repayments of short-term borrowings	(8,000,000)	(6,000,000)
Proceeds from long-term borrowings	26,370,000	20,600,000
Repayments of long-term borrowings	(24,400,000)	(22,800,000)
Proceeds from issuance of investment corporation bonds	3,974,579	2,977,608
Redemption of investment corporation bonds	(6,000,000)	-
Distribution payments	(15,962,909)	(15,816,705)
Net cash used in financing activities	(16,018,330)	(14,839,097)
Net change in cash and cash equivalents	6,391,040	1,553,475
Cash and cash equivalents at the beginning of period	55,696,022	62,087,062
Cash and cash equivalents at the end of period	62,087,062	63,640,538

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