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)48.2

Remaining maturity
on debt7.1years

Credit ratings(Note 2)

As of June 13, 2018

(Note 1) LTV (based on total assets) = Outstanding interest-bearing debt ÷ Total assets.
Total assets = Total asset for the fiscal period ended April 2018 + Acquisition price (not including related expenses) of “MI Terrace Nagoya-Fushimi” and “Hotel Wing International Ueno/Okachimachi”.
(Note 2) MIRAI obtained a long-term issuer rating ”A+(stable)" 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
The sponsors own around 3.4% of the total number of investment units issued by MIRAI.
(Mitsui & Co.: Around 1.7%, IDERA: Around 1.7%)

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