MIRAI Corporation.

Strong Financial Base and Equity Co-Investment by Sponsors

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Financial Strategy

MIRAI aims to establish a strong financial base by maintaining a conservative LTV ratio and establishing a lender formation comprising mainly mega-bank groups.

LTV(Note 1)48.8

Remaining maturity
on debt7.2years

Credit ratings(Note 2)

As of January 17, 2019

(Note 1) LTV (based on total assets) = Outstanding interest-bearing debt ÷ Total assets.
Total asset is 152,922 million yen which is the sum of 1) total asset as of the end of October 2018 and 2) total acquisition price of the assets which MIRAI has acquired since November 1, 2018..
(Note 2) MIRAI obtained a long-term issuer rating ”A+(Positive)" from Japan Credit Rating Agency, Ltd. (JCR) and "A(stable)" from Rating and Investment Information, Inc.

Initiative to align the interests of unitholders and sponsors

1. Equity Co-investments

MIRAI aims to align the interests of unitholders, sponsors and the Asset Manager and achieve medium and long-term improvement in unitholders’ value through Equity Co-investments adopted as a governance initiative.

Equity Co-investments by the two sponsors

MIRAI’s strong commitment to improving unitholders’ value

2. Asset management fee structure linked to unitholder profit

Asset management fee I
(based on AUM)
Up to 0.5% per year of total assets
Asset management fee II
(based on DPU)
Adjusted DPU (See Note) x NOI after depreciation x 0.001%(as an upper limit)
Note: Adjusted DPU = Unappropriated retained earnings before deducting Assetmanagement fee 2 / Number of investment units outstanding
Acquisition fee Up to 1.0% of the acquisition price
Disposition fee Up to 1.0% of the disposition price
Merger fee Up to 1.0% of the appraisal value at the time of merger of real-state-related assets held by the counterparty of the merger at the time of merger