To Our Unitholders

Yasuyuki Kuratsu Executive Director Industrial & Infrastructure Fund Investment Corporation

I would like to take this opportunity to express my sincere gratitude to all investors for your ongoing support.

This report provides an update on IIF’s performance for the fiscal period ended January 31, 2019 (the 23rd period).

In this period, we held our 7th General Meeting of Unitholders on October 30, 2018. I would like to thank our unitholders participating in the Meeting for their valuable comments and questions on the day.
IIF acquired one property in this period (total acquisition price: 900 million yen). This addition brought the total number of properties under management to 67 and the total asset size to 275.6 billion yen (on an acquisition price basis) as of the end of the period. We also decided to invest in a silent partnership (“Tokumei Kumiai”) (investment amount: 100 million yen), which is to be executed in the next period. IIF intends to work on promoting industry and human resource development together with Ota-ku, Tokyo by investing as an investor in the Tokumei Kumiai in a rental factory of which Ota-ku is the tenant. This investment is highly significant for IIF from the perspective of ESG*1, which has recently been a matter of growing social interest.

With regard to existing properties, we acquired ESG-related environmental certifications—CASBEE for Real Estate Certification for one property and DBJ Green Building Certification for three properties*2. To improve the rate of acquisition of environmental certifications for properties under management, we will keep striving to acquire such certifications. IIF has also been awarded the “Green Star”, GRESB’s (Global Real Estate Sustainability Benchmark) highest award, for six consecutive years. In addition to conventional stable investment management, by working on ESG, for which there is increasing social demand, IIF aims to contribute to the realization of a sustainable society through our asset management.

As a result of these activities, the distribution per unit (including distribution in excess of profit) for this period was 2,723 yen. IIF will work to maximize unitholder value while implementing ESG measures, and we look forward to your continued support.

*1 ESG is derived from the initial letters of Environmental, Social, and Governance, and refers to initiatives toward long-term corporate growth in various business fields.
*2 DBJ Green Building Certification for the three properties was reacquired after the expiration of the effective certification period.



Yasuyuki Kuratsu
Executive Director
Industrial & Infrastructure Fund Investment Corporation