Financial Summary (REIT) for Fiscal Period Ended August 31, 2023

REIT Securities Issuer

MORI TRUST REIT, Inc.

Securities Code:
Representative:

8961
Hiroshi Naito, Executive Director

Asset Management
Company:
Representative:
Contact:

October 20, 2023

Stock ExchangeTokyo Stock
Listing:
Exchange
URL: https://www.mt-reit.jp/en/

MORI TRUST Asset Management Co., Ltd.
Hiroshi Naito, President and Representative Director
Nobuyuki Aizawa, Managing Director, General Manager, Strategic Management
Department
Tel: 03-6435-7011

Scheduled date of submission of securities report:
Scheduled date of commencement of cash distribution
payment:

November 28, 2023
November 13, 2023

Preparation of supplementary financial results briefing
materials:
Holding of financial results briefing session:

Yes
Yes

1. Operational/Asset Conditions for the fiscal period ended August 31, 2023 (from March 1, 2023 to August
31, 2023)(Amounts are rounded down to the nearest million yen)

(1) Operating results(% shows change vs. previous period)

Operating revenues
Fiscal period ended
August 31, 2023
Fiscal period ended
February 28, 2023

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

11,812

62.7

7,188

77.1

6,535

75.1

7,157

98.1

7,258

5.2

4,057

18.4

3,731

22.6

3,614

8.5

Net income per unit
Fiscal period ended
August 31, 2023
Fiscal period ended
February 28, 2023

Rate of returnon equity

Ordinary income to total
assets ratio

Ordinary income tooperating revenues ratio

Yen

%

%

%

2,010

3.7

1.6

55.3

1,368

2.3

1.2

51.4

(Note1) MTR changed its fiscal period end from the last day of March and the last day of September each year to the last day of February andthe last day of August each year by resolution of the General Meeting of Unitholders held on February 1, 2023. Accordingly, the fiscal
period ended February 28, 2023 is a five-month period from October 1, 2022 to February 28, 2023.
(Note2) As a 2-for-1 unit split was conducted with March 1, 2023 as the effective date, profit per unit is calculated based on the assumptionthat the unit split was conducted at the beginning of the fiscal period ended February 28, 2023.

(2) Distributions

Fiscal period ended
August 31, 2023
Fiscal period ended
February 28, 2023

Distributions per
Total distributions
unit (excluding(excluding total
distributions in
distributions inexcess of profit)
excess of profit)
Yen
Millions of yen

Distributions in
Total distributions
excess of profit
in excess of profit
per unit

Ratio ofdistributions to
net assets

Payoutratio

YenMillions of yen

%

%

1,700

6,052

－

－

84.5

2.7

2,545

3,359

－

－

92.9

2.1

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

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(Note1) The difference between the distributions per unit and the basic earnings per unit for the fiscal period ended February 28, 2023, is a
result of the reserve of the reserve for reduction entry (254 million yen). The difference between the distributions per unit and the basic
earnings per unit for the fiscal period ended August 31, 2023, is a result of the reserve of the reserve for reduction entry (1,105 million
yen).
(Note2) The payout ratio is rounded down to one decimal place. The payout ratio for the fiscal period ended February 28, 2023 is calculatedusing the following formula, because MTR conducted an investment unit split at the rate of two units for one unit with March 1, 2023
as the effective date. Payout ratio = total distributions / net income x 100(3) Financial positions
Total assets
Fiscal period ended
August 31, 2023
Fiscal period ended
February 28, 2023

Net assets

Capital adequacy ratio

Net assets per unit

Millions of yen

Millions of yen%

Yen

473,191

232,260

49.1

65,241

322,398

158,72549.2

60,123(Note) As a 2-for-1 unit split was conducted with March 1, 2023 as the effective date, the net assets per unit is calculated based on theassumption that the unit split was conducted at the beginning of the fiscal period ended February 28, 2023.

(4) Cash flows
Cash flows
from operating activities

Cash flows
from investing activities

Cash flows
from financing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

13,626(29,114)

13,952

21,271

10,325(5,331)(7,475)

17,143Fiscal period ended
August 31, 2023
Fiscal period ended
February 28, 2023

Cash and equivalents,
end of period

2. Forecast for the February 2024 period (September 1, 2023 to February 29, 2024) and the August 2024
period (March 1, 2024 to August 31, 2024)(% shows change vs. previous period)
Operating revenues

Fiscal period ending
February 29, 2024
Fiscal period ending
August 31, 2024

OperatingincomeOrdinary
incomeDistributions per Distributions
unit (excluding
distributions in in excess ofexcess of profit) profit per unit

Net income

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

Yen

11,952

1.2

7,648

6.4

6,946

6.3

6,935

(3.1)

1,757

－

10,823(9.4)

6,506 (14.9)

5,701 (17.8)

1,602

－

5,712 (17.8)(Reference) The profit per unit forecast is 1,948 yen for the fiscal period ending February 29, 2024 and 1,601 yen for the fiscal period ending

August 31, 2024.
(Note1) The distributions per unit for the fiscal period ending February 29, 2024, is calculated based on the assumption that the remainder fromthe subtraction of the provision for reserve for reduction entry (681 million yen) for a gain on the sale of real estate, etc. expected in thesaid fiscal period from the sum of the net income for the said period will be distributed.
(Note2) The distributions per unit for the fiscal period ending August 31, 2024, is calculated based on the assumption that the sum of the net
income for the said period and the reversal of reserve for reduction entry (3 million yen) will be distributed.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

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3. Status of Asset Management(A) Status of Asset Management(a) Summary of results for the current fiscal period(i) Transition of the Investment Corporation
MORI TRUST REIT, Inc. ("MTR") was established on October 2, 2001, with Mori Trust Asset Management Co., Ltd.
(changed trade name from Nihon Sogo Fund Co., Ltd.. on November 1, 2003) ("MTAM") as the organizer, pursuant to the Act
on Investment Trusts and Investment Corporations.
On March 28, 2002, MTR began asset management, starting with the acquisition of the trust beneficiary right in Frespo Inage,
land related to leased land agreement for business use.
Since then MTR has steadily expanded the size of its assets, and was listed on the Real Estate Investment Trust Securities
Market of the Tokyo Stock Exchange (Stock Code: 8961).
MTR conducted an absorption-type merger, in which MTR is the surviving company and MORI TRUST Hotel Reit, Inc.
("MTH") is the dissolving company on March 1, 2023. The trade name was changed from MORI TRUST Sogo Reit, Inc. to
MORI TRUST REIT, Inc.
As a result, the real estate held by MTR as of August 31, 2023, numbered 22 properties, with a total assets price of 473,191
million yen.

(ii) Investment environment and performance
During the period under review, the Japanese economy continued to pick up as restrictions on activities due to COVID-19
were further eased and consumer spending, corporate capital investment, and inbound demand all showed signs of recovery,
despite a slowdown in the pace of global economic recovery and the impact of high prices.
In the real estate investment market, the willingness of domestic and foreign investors to acquire properties remains firm,
despite negative factors such as rising interest rates due to global monetary tightening and the risk of economic recession. Given
these conditions, sales of high-quality properties available for investment were limited and the situation in which it was difficult
to acquire properties persisted.
In the real estate leasing market, contracted rents for office buildings continued to decline, but the extent of the decline wassmaller amid the normalization of economic activity in the post-COVID era. Vacancy rates rose slightly in some areas due to anincrease in new supply, but progress was made filling vacancies at existing buildings.
Hotels continued to show a recovery trend due to an increase in the number of foreign visitors to Japan as a result of the easingof border controls from October 2022 onwards, and the expansion of domestic lodging demand following reclassification of
Covid-19 as Category V Infectious Diseases under the Infectious Diseases Control Act in May 2023.
As for retail facilities, department store, supermarket, and convenience store sales exceeded the previous year's levels despite
the impact of rising prices, and the overall performance was strong partly thanks to a surge in inbound demand.
In the market for luxury rental housing in Tokyo, both the occupancy rate and the rent level held firm, reflecting sustained
demand versus limited supply.
Under these investment conditions, during the fiscal period under review, MTR conducted the merger and took over the five
hotel properties owned by MTH. In addition, MTR has tenaciously negotiated to maintain and improve occupancy rates andrevise rents of the assets under management,and has carried out investment management to ensure more stable profit throughthe partial acquisition of Kamiyacho Trust Tower on March 1, 2023, and the partial acquisition of Sendai MT Building and thepartial transfer of Shimbashi Ekimae MTR Building on August 31, 2023.
As a result, as of August 31, 2023, MTR owned 22 properties with a total book value of 450,758 million yen. The occupancy
rate for the properties owned by MTR was 98.9% (97.9% (Note)) as of August 31, 2023.
MTR and MTAM are making progress in their efforts, which consider the environment and society based on the recognition
that activities to raise sustainability, such as environmental considerations, social contribution, and organizational governancein asset management operations, are essential for achieving a medium- to long-term increase in the investor value of investment
corporations.
With respect to "E: environment," during the fiscal period under review, Osaki MT Building, Kioicho Building and Hiroo
MTR Building promoted energy conservation at their facilities, for instance with the use of LED lighting fixtures. In addition,
MTR has acquired Environmental Certification and Evaluation for twelve properties it owns and the ratio of certified properties
in the portfolio, excluding land with leasehold interest, is around 57% on a number of properties basis and around 54% on aleasable area basis as of August 31, 2023. For “S: society,” Based on the results of MTAM's employee satisfaction survey, an
action plan has been formulated to resolve areas requiring improvement, and efforts are being made to provide a healthier andmore comfortable working environment. For "G: governance," MTR implemented training and awareness-raising activities suchas providing compliance training to all executives and employees of MTAM on a regular basis, and sought to improve
compliance awareness among employees.
(Note) The figure in parentheses is the occupancy rate calculated based on sublease agreements for properties using a master lease agreement
under which rent income is linked to rents under sublease agreements or a pass-through master lease agreement.

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(iii) Financing

In the fiscal period under review, MTR assumed interest-bearing debt of 53,975 million yen (short-term loans of 5,475 million
yen and long-term loans of 48,500 million yen) through the merger with MTH on March 1, 2023, and on the same day borrowed
19,500 million yen for the additional acquisition of Kamiyacho Trust Tower and expansion of cash on hand. MTR borrowed atotal of 20,000 million yen for the repayment of existing borrowings of 21,475 million yen that have matured.
As a result, interest-bearing debt as of August 31, 2023 amounted to 224,500 million yen, of which long-term loans payableamounted to 200,500 million yen (including long-term loans payable of 42,500 million yen due for repayment within 1 year)
and investment corporation bonds amounted to 14,000 million yen (including investment corporation bonds of 3,000 million
yen due for redemption within 1 year). The ratio of interest-bearing debt to total assets as of August 31, 2023 was 47.4%(compared with 47.3% as of February 28, 2023).
As of August 31, 2023, MTR has obtained a long-term issuer rating of AA (rating outlook: stable) from Japan Credit Rating
Agency, Ltd. (JCR)(iv) Overview of financial results and distributions
As a result of the abovementioned operations, operating revenue came to 11,812 million yen, operating income came to 7,188
million yen, ordinary income after the deduction of loan-related interest expenses from operating income came to 6,535 million
yen, and net income came to 7,157 million yen.
With the intention that the maximum amount of profit distributions would be included in tax-deductible expenses under theapplication of special provisions for taxation (Article 67-15 of the Act on Special Measures Concerning Taxation), MTR decided
to distribute all undistributed profit at the end of the fiscal period under review after deduction of a portion of the reserve for
reduction entry accumulated using reduction entry under the Act on Special Measures Concerning Taxation totaling 1,105
million yen which consists of 631 million yen that was previously recorded as deferred tax liabilities and was transferred to thereserve for reduction entry and 473 million yen of the reserve for reduction entry accumulated using the Special Provisions for
Taxation in Cases of Repurchase of Specified Assets in Article 65-7 of the Act on Special Measures Concerning Taxation.
Consequently, the distributions per investment unit amounted to 1,700 yen.

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(b) Outlook for the next fiscal period(i) Outlook for overall performance
Turning to the outlook for the Japanese economy, global monetary tightening and the situation in Ukraine continue to taketheir toll. Against this backdrop, weaker-than-anticipated external demand due to global slowdown and high resource prices andinflation pose downside risks to the Japanese economy. Nonetheless, Japan's economy is expected to pick up due to a continued
upward trend in personal consumption on the back of rising wages and employment growth, an increase in forward-looking
capital investment among businesses post COVID, and further recovery in inbound demand driven by a sense that Japan is anaffordable travel destination due to a weaker yen. However, developments such as the global recession caused by monetary
tightening, economic trends in China where the real estate market continues to stagnate, and financial and foreign exchange
market movements continue to require attention.
In the real estate investment market, there is growing concern over interest rate hikes as a result of global monetary tightening
and the risk of a global recession and the market is being negatively impacted in some respects. Nonetheless, investors in Japanand abroad continue to have a firm desire to acquire properties, partly underpinned by the relative stability of the Japanesemarket compared to other countries. However, given that sales of prime properties for investment are limited, transaction prices
are expected to hover at a high level for the time being and expected cap rates will likely remain low.
In the real estate leasing market, the downward trend in rents for office buildings is expected to slow due to continued moves
to relocate to a larger space or expand office space in the same building and a recovery in demand for office buildings amid thenormalization of economic activity post COVID. However, given that some newly supplied buildings in central Tokyo will becompleted with large vacancies, partly due to the impact of large supply in 2023, the vacancy rate trend will continue to require
close monitoring.
As for hotels, further recovery of inbound demand is expected with the lifting of the ban on group travel to Japan from China,
but the trend is uncertain due to the deterioration of sentiment toward Japan triggered by the release of treated water from the
Fukushima Daiichi Nuclear Power Plant. Meanwhile, both inbound demand outside of China and domestic lodging demand are
expected to continue to recover. However, attention should be paid to the impact of rising utility costs, food costs, etc. and labor
shortages.
Retail facilities are expected to recover due to an upward trend in personal consumption on the back of rising wages andemployment growth and inbound demand, despite the impact of rising prices.
In the market for luxury rental housing in Tokyo, based on the assumption that new supply will be limited and demand willremain strong, both the occupancy rate and rent levels are likely to remain steady.

(ii) Future investment policy
Regarding the form of lease agreements of the real estate owned by MTR, MTR will maintain the weight of fixed-termbuilding lease agreements with fixed rent over the medium and long term at a certain percentage, to ensure that a drop in thelevel of market rents does not immediately have a major impact on the revenue of the real estate owned by MTR.
However, when entering into a new lease agreement, MTR will examine the agreement term and the fixing of rents in themedium or long term based on an assessment of the location and features of the real estate and will aim to maximize revenue.
In addition, the following policy will be applied to the operation and management of real estate owned by MTR to maintainand improve market competitiveness and to enable management that combines asset quality, stability, and growth potential.
1. MTR will work to improve the satisfaction of tenants and consider measures such as thoroughgoing implementation of
preventive maintenance and safety management and enhancement of customer relations with tenants and users based on anassessment of the features of each portfolio real estate, and endeavor to maintain high occupancy rates of the real estate it
owns. When real estate becomes vacant or is due to become vacant, MTR will conduct well-aimed market research andthen focus on leasing in cooperation with the Mori Trust Group, real estate agents and property management companies.
2. When entering into a new lease agreement, MTR will endeavor to conclude a medium- or long-term fixed-term building
lease agreement or an agreement that otherwise considers fixing the rent or lengthening the agreement term to ensure future
rental revenue. For accommodations, in addition to fixed rents, MTR will also incorporate contracts that provide for variable
rents linked to actual sales and other factors, in order for MTR to enjoy the benefits of improved revenue fromaccommodations. In addition to leasing investment properties directly to tenants, there is also a master lease agreement inwhich a lessee (master lessee) acts as an intermediary for a tenant and the property is leased to the master lessee. MTR will
positively consider a master lease agreement if certain effects are recognized after examining the characteristics of thesubject property, such as its size, use, and tenants.
3.
Based on consideration of the aging and age of portfolio real estate, MTR will endeavor to maintain stable occupancy rates
by renovating aged facilities, etc. and actively making investments to increase market competitiveness so that portfolio realestate compares favorably with competing properties.

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(iii) Investment strategy for new investment real estate
MTR’s basic policy is to make investments based on the following investment strategies, with a focus on seeking to further
develop and cultivate property information routes and endeavoring to gather high quality property information, to expand thesize of its assets under management (AUM) and acquire new real estate.
1. The investment properties will be classified into three categories from the viewpoint of use: Office Buildings, Hotels, andOther (for the time being, retail facilities and residential properties). With Office Buildings and Accommodations as thecore assets, MTR will make diversified investments in Other category. The investment ratio for each use shall be 40-80%
for Office Buildings, 20-55% for Accommodations, and 0-30% for Other.
2.
Investment regions of investment assets will be diversified to reduce the risk of fluctuations in portfolio cash flows. Of theinvestment assets, the investment area for office buildings will primarily be central Tokyo, which has a high concentrationof commerce, industry and population. However, MTR will also make diversified investments in assets located in the areasurrounding central Tokyo as well as government-designated cities, etc. The investment ratio will be 60% or more in central
Tokyo and 40% or less in the area surrounding central Tokyo and government-designated cities, etc. In making investment
decisions, MTR will examine transportation convenience, suitability of the use of the investment property in the relevantarea, competitiveness, etc. Of the investment assets, the investment areas for accommodations will mainly be major cities
nationwide and famous tourist destinations.

(iv) Financial strategy, etc.
MTR will examine points such as the amounts of loans, borrowing periods, bearing in mind the need to curb the negative
effects of changes in financing conditions and reduce financing costs.
In addition, MTR will consider diversifying lenders and issuing investment corporation bonds while focusing on its
conventional, long-term relationships with financial institutions. MTR will also consider green finance (financing for projects
that improve the environment) as part of our efforts to improve sustainability.

(v) Significant events after balance sheet date
Not applicable(vi) Forecasts of performance
MTR forecasts that performance in the fiscal period ending February 29, 2024 (from September 1, 2023 to February 29,2024) and the fiscal period ending August 31, 2024 (from March 1, 2024 to August 31, 2024) will be as follows.
Please refer to “Assumptions for Forecasts of Performance for the fiscal period ending February 29, 2024 (from September 1,
2023 to February 29, 2024) and the fiscal period ending August 31, 2024 (from March 1, 2024 to August 31, 2024)” below forfurther details of the assumptions of forecasts of performance.
Fiscal period ending
Fiscal period ending
February 29, 2024
August 31, 2024
Operating revenues

11,952 million yen

10,823 million yen

Operating income

7,648 million yen

6,506 million yen

Ordinary income

6,946 million yen

5,712 million yen

Net income

6,935 million yen

5,701 million yen

1,757 yen

1,602 yen

Distributions per unit

(Note 1) The above forecasts are based on certain assumptions and information currently available and are not a guarantee of actual
operating revenues, operating income, ordinary income, profitnet income and distributions per unit, and such may differ
according to circumstances occurring in the future.
(Note 2) The distributions for the fiscal period ending February 29, 2024 are based on the assumption of internal reserves provision.The
distributions for the fiscal period ending August 31, 2024 are based on the assumption of internal reserves reduction.

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6

Assumptions for Forecasts of Performance for the Fiscal Period ending February 29, 2024 (from September 1,
2023 to February 29, 2024) and the Fiscal Period ending August 31, 2024 (from March 1, 2024 to August 31,
2024)
Item

Assumptions
・Fiscal period ending February 29, 2024 (September 1, 2023 through February 29, 2024, totaling 182
days)
Calculation period・Fiscal period ending August 31, 2024 (March 1, 2024 through August 31, 2024, totaling 184 days)
・MTR assumes that the partial transfer of Shinbashi Ekimae MTR Building as well as the acquisition of
Sendai MT Building planned for February 29, 2024 are reflected in the 22 properties held as of August
Portfolio properties
31, 2023.
・The actual portfolio may change due to the acquisition or disposal/transfer of other properties.
Number of investment ・We assume 3,560,000 investment units issued and outstanding as of August 31, 2023. The number ofinvestment issued and outstanding may change, however, for reasons such as the issuance of investment
units issued andunits during the fiscal period.
outstanding
・The total amount is assumed to be 224,500 million yen as of August 31, 2023.
・MTR assumes that it will appropriate funds raised through refinancing and the issuance of investment
Interest-bearing debt
corporation bonds to repay loans of 19,500 million yen that will fall due during the fiscal period ending
February 29, 2024, and redeem investment corporation bonds of 3,000 million yen. MTR assumes that it
and refinancing
will appropriate funds raised through refinancing to repay loans of 33,000 million yen that will fall due
during the fiscal period ending August 31, 2024.
・Rental revenues are calculated taking into account factors such as market environment,tenants’ trends,
and the competitiveness of properties, in addition to the lease contracts thathave been concluded, to be
10,580 million yen for the fiscal period ending February 29, 2024 and 10,823 million yen for the fiscal
period ending August 31, 2024.
・In principle, it is assumed that the properties and sections that are expected to be vacantand for which no
new contracts have been concluded when the forecast was prepared will remain vacant. Based on thisassumption, “Kohnan Sagamihara-Nishihashimoto” (the name was changed to “Hashimoto MTR
Building” on September 28, 2023) is also assumed to remain vacant in the fiscal period ending February
29, 2024 and August 31, 2024 after September 27, 2023, when the tenant will leave due to the expirationof fixed-term building lease agreement.
・Rents of four hotel properties with rents consisting mainly of variable rents (Shangri-La Tokyo, Hilton
Odawara Resort & Spa, Courtyard by Marriott Tokyo Station and Courtyard by Marriott Shin-Osaka
Station) included in rental revenues are calculated based on the following assumptions. Variable rent iscalculated mainly on the basis of management results in the previous year and in 2019, which was notaffected by COVID-19 infection, by the method set out in the lease agreement of each property, taking
into consideration factors for fluctuation such as recent hotel market conditions.

Operating revenue[Shangri-La Tokyo]
Variable rent in the fiscal period ending February 29, 2024: 885 million yen
Variable rent in the fiscal period ending August 31, 2024: 959 million yen
The variable rent for each month is amount calculated by multiplying the rent received from subtenantby tenant (hereinafter referred to as “subletting tenant rent” (Note)) for a month three months before themonth in question by 97%.
(Note) “Subletting tenant rent” is calculated by multiplying total revenue from the subtenant’s hotel
operations by a certain percentage. The percentage is not disclosed as the consent of the subtenant
has not been obtained.
(Reference)Minimum annual guaranteed rent (from April each year to March the following year (Note)):882,700,000 yen(Note) If the total amount of subletting tenant rent for the period from January to December each year isless than 910,000,000 yen (including if subletting tenant rent is not paid due to vacation by thesubletting tenant, etc.), rent is calculated on the basis that the subletting tenant rent for the period
is 910,000,000 yen (910,000,000 yen × 97% = 882,700,000 yen), and the difference (shortfall)
between this amount and the total amount of rent from April to March the following year is paid,
together with the rent for March the following year, no later than the last day of February thefollowing year.
[Hilton Odawara Resort & Spa]
Variable rent in the fiscal period ending February 29, 2024: 191 million yen
Variable rent in the fiscal period ending August 31, 2024: 205 million yen(Includes additional revenues of 2 million yen other than rent revenue which MTR receives from thelessee of Hilton Odawara Resort & Spa.)
The monthly rent for March to August each year is the amount (not less than 0 yen) equivalent to onetwelfth of the amount obtained when the sum total of the hotel’s base profit for the 12 months from

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7

January to December in the previous year is multiplied by 95%.
The monthly rent for September each year to February in the following year is the amount (not less than
0 yen) equivalent to one-twelfth of the amount obtained when the sum total of the hotel’s base profit forJuly in the previous year to June in the year in question is multiplied by 95%.
(Note) “Base profit” refers to the amount obtained by the following formula.
Base profit = The profit that the lessee earns from operating the hotel − The expenses that thelessee incurs from operating the hotel (the lessee’s insurance expenses, etc.)[Courtyard by Marriott Tokyo Station]
Variable rent in the fiscal period ending February 29, 2024: 299 million yen
Variable rent in the fiscal period ending August 31, 2024: 280 million yen
The variable rent for each month is amount (not less than 0 yen) calculated by multiplying adjusted
operating income by facility (Note) of the hotel for a month three months before the month in question
by 90%.
(Note) “Adjusted operating income by facility” refers to sales from hotel operations less hotel operating
expenses by department, unallocated operating expenses, fixed operating costs, and operating
expenses of hotel operator allocated to head office (only expenses related to the hotel).
(Reference)Minimum annual guaranteed rent (from October each year to September the following year
(Note): 310,000,000 yen(Note) If the total amount of rent (which is the rent for the entire property including the potion attributable
to the quasi-co-owner MORI TRUST CO., LTD. The same applies hereinafter to the property.)
for the period from October each year to September the following year is less than 310,000,000
yen, rent for the period in question is taken as 310,000,000 yen, and the difference (shortfall)
between this amount and the total amount of rent from October to September the following year
is paid, together with the rent for September the following year, no later than the last day of August
the following year. The difference from the minimum guaranteed rent includes the portion
attributable to the quasi-co-owner MORI TRUST CO., LTD. Only 93.5%, which is the quasi coownership interest in the property, of the entire difference from the minimum guaranteed rent isrecorded as operating income of MTR .
[Courtyard by Marriott Shin-Osaka Station]
Variable rent in the fiscal period ending February 29, 2024: 315 million yen
Variable rent in the fiscal period ending August 31, 2024: 305 million yen
The variable rent for each month is amount (not less than 0 yen) calculated by multiplying adjusted
operating income by facility (Note) of the hotel for a month three months before the month in question
by 90%.
(Note)“Adjusted operating income by facility” refers to sales from hotel operations less hotel operating
expenses by department, unallocated operating expenses, fixed operating costs, and operating
expenses of hotel operator allocated to head office (only expenses related to the hotel). Only sales
and expenses relating to the accommodation of general users of the hotel are included in thecalculation of adjusted operating income by facility, in principle. Sales and expenses relating to
the accommodation of guests who are members of Laforet Club of the tenant, MORI TRUST CO.,LTD. food and beverages, parking facilities, etc. are not included.
(Reference)Minimum annual guaranteed rent (from October each year to September the following year
(Note): 460,000,000 yen(Note) If the total amount of rent for the period from October each year to September the following year
is less than 460,000,000 yen, rent for the period in question is taken as 460,000,000 yen, and thedifference (shortfall) between this amount and the total amount of rent from October to
September the following year is paid, together with the rent for September the following year,
no later than the last day of August the following year.
・We estimate gain on sale of real estate of around 1,300 million yen during the fiscal period ending
February 29. 2024 from the partial transfer of Shinbashi Ekimae MTR Building.
・Operating revenues are calculated based on the assumption that there will be no delinquent or unpaid rentby the lessor, and that there will be no grace period for the payment of rent to the lessor or reduction ofrent, etc..
・Concerning fixed property tax, city planning tax, depreciated asset tax, etc. for owned real estate in trust,the portion of the tax amount to be levied that corresponds to the relevant calculation period is recorded
as leasing business expenses. However, the amount equivalent to fixed property tax, city planning tax,
etc. for the fiscal year of acquisition reimbursed to the previous owner at the time of acquisition of the
Operating expenses
real estate, etc. is included in the cost of acquisition of the relevant real estate and is thus not recognized
as expenses in the relevant calculation period.
・Concerning repair expenses, the estimated amount required is recorded as expenses. However, the actual
repair expenses may significantly differ from the estimates since (i) an unforeseeable event may cause
damage to a building requiring emergency repair expenditure, (ii) in general, amounts vary according toDisclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

8the fiscal period, and (iii) certain types of repair and maintenance expenses are not required in every fiscal
period.
・We estimate property and other taxes of 1,253 million yen for the fiscal period ending February 29, 2024
and 1,271 million yen for the fiscal period ending August 31, 2024.
・We estimate property management fees of 781 million yen for the fiscal period ending February 29, 2024
and 797 million yen for the fiscal period ending August 31, 2024.
・We estimate depreciation of 1,013 million yen for the fiscal period ending February 29, 2024 and 1,017
million yen for the fiscal period ending August 31, 2024.
・We estimate operations expenses other than leasing business expenses (asset management fees, fees forthe custody of assets, administrative service fees, etc.) of 643 million yen for the fiscal period ending
February 29, 2024 and 587 million yen for the fiscal period ending August 31, 2024.
・In accordance with the Accounting Standard for Business Combinations (ASBJ Statement No. 21, revised
Amortization of
on September 13, 2013), the goodwill will be recorded as an asset and amortized regularly on a straightgoodwill
line basis over 20 years. Amortization expenses related to goodwill are assumed to be 15 million yen forthe period ending February 29, 2024 and 15 million yen for the period ending August 31, 2024.
・We estimate non-operating expenses (loan interest, investment corporation bond interest, etc.) of 701
Non-operating
million yen for the fiscal period ending February 29, 2024 and 794 million yen for the fiscal period
expensesending August 31, 2024.
・Distributions (distribution per unit) are calculated based on the cash distribution policy set out in MTR’s
Certificate of Incorporation.
・On calculating the distribution for the fiscal period ending February 29, 2024, MTR assumes provision asinternal reserves of a portion worth 681 million yen of gains on sales of real estate, etc. due to the partial
transfer of Shinbashi Ekimae MTR Building, which are expected to arise in the fiscal period ending
February 29, 2024, under the application of Special Provisions for Taxation in Cases of Repurchase ofDistributions
Specified Assets.
・On calculating the distribution for the fiscal period ending August 31, 2024, MTR assumes reversal of a
portion worth 3 million yen of the internal reserves to be accumulated under the application of the Special
Provisions for Taxation in Cases of Repurchase of Specified Assets.
・Distributions per unit may change due to a variety of factors, including changes in the assets underinvestment and changes in rental income as a result of changes in tenants, the occurrence of unforeseen
repairs, fluctuation in the number of issued investment units and financing.
Distributions in excess ・We currently have no plans to pay cash distributions in excess of earnings (distributions in excess ofof earnings per unit
earnings per unit).
・Our forecasts assume no revisions that impact on the above projections will be made to laws andOthersregulations, tax systems, accounting standards, securities listing regulations and the rules of The
Investment Trusts Association, Japan, or others.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

94. FINANCIAL STATEMENTS(1) BALANCE SHEETS
Thousands of yen
As of August 31, 2023

As of February 28, 2023
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Accounts receivable - otherPrepaid expenses
Consumption taxes refund receivable
Other
Total current assets

14,729,422

16,376,466

2,413,662
97,513

4,894,721
130,31828
55,631

12
72,178－64,915130,928
23,14017,361,173

21,627,766

34,742,923

Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation(18,302,773)

34,290,253(18,238,814)

Buildings, net

16,440,150

16,051,438

Structures
Accumulated depreciation

443,960

442,844(413,398)(413,317)

Structures, net

30,561

29,526

Machinery and equipment
Accumulated depreciation

128,457

121,199(105,502)(85,112)

22,95536,087

VehiclesAccumulated depreciation

－

194

－

(29)

Vehicles, net－

165113,212(89,644)

160,993(95,587)

Machinery and equipment, net

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

23,56765,405Land
Buildings in trust
Accumulated depreciation

109,001,394
35,354,628

103,417,452
59,153,104(13,931,696)(14,654,666)

Buildings in trust, net

21,422,932

44,498,437

Structures in trust
Accumulated depreciation

187,941

269,320(119,677)(128,499)

Structures in trust, net

68,264140,821

Machinery and equipment in trust
Accumulated depreciation

70,137(10,557)

116,384(15,541)

Machinery and equipment in trust, net

59,579100,843

Tools, furniture and fixtures in trust
Accumulated depreciation

105,717(72,856)

132,357(79,447)

Tools, furniture and fixtures in trust, net

32,86052,909Land in trust

157,795,399

286,365,778

Total property, plant and equipment

304,897,665

450,758,867

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

10

Thousands of yen
As of August 31, 2023

As of February 28, 2023
Intangible assets
Goodwill

613,524

Software

－
－

Other

240

240

Total intangible assets

240

615,997

Investments and other assets
Guarantee deposits
Deferred tax assets

10,000Long-term prepaid expenses
Other

20,000875

57,897
2,815

103,802
2,815

Total investments and other assets

70,713

127,492

Total non-current assets

2,232

304,968,618

451,502,357

Deferred assets
Investment corporation bond issuance costs

68,95061,156

Total deferred assets

68,95061,156322,398,742

473,191,280

Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Dividends payable
Income taxes payable
Accrued consumption taxes
Advances received

220,285

725,7166,000,000
3,000,000

10,000,000
3,000,000

15,000,000
349,524

42,500,000
67,657444,375
7,955

569,2219,387

718
61,744

10,575814,808214－
1,251,425
38,81825,899,627

58,172,803

11,000,000
117,500,000

11,000,000
158,000,000

7,698,469
943,131

12,799,156
959,194

631,732－－
9

Total non-current liabilities

137,773,333

182,758,360

Total liabilities

163,672,960

240,931,164

153,990,040

153,990,040

Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Deferred tax liabilities
Other

Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus

69,736,000

Voluntary retained earnings
Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

11

Thousands of yen
As of February 28, 2023

As of August 31, 2023

Reserve for reduction entry

1,121,637

1,376,341

Total voluntary retained earnings

1,121,637

1,376,341

3,614,104

7,157,734

Unappropriated retained earnings
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

4,735,741

78,270,076

158,725,781

232,260,116

158,725,781

232,260,116

322,398,742

473,191,280

The accompanying notes form an integral part of these financial statements.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

12

(2) STATEMENTS OF INCOME AND RETAINED EARNINGSFor the five-month period ended February 28, 2023 and the six-month period ended August 31, 2023
Thousands of yen
For the period
from March 1, 2023
to August 31, 2023

For the period
from October 1, 2022
to February 28, 2023
Operating revenue
Lease business revenue

5,620,653
207,435

Other lease business revenue
Gain on sale of investment property
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors' compensations
Merger-related expenses
Amortization of goodwill
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of dividends payable
Interest on tax refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
otherTotal non-operating expenses

10,113,102
261,8021,430,579

1,437,186

7,258,668

11,812,092

2,710,417
275,258

3,382,852
749,387

10,82950,842

16,15569,6093,000
61,3603,600
250,000－
88,983

15,731
136,137

3,200,691

4,623,473

4,057,976

7,188,618

94
647

94
918

－

89

741

1,102

291,515594,518

24,39738,941

7,679

7,794

3,376

12,741

326,968

653,996

Ordinary income

3,731,749

6,535,724

Profit before income taxes

3,731,749

6,535,724

Income taxes - current
Income taxes - deferred

732
116,912

10,590(632,600)

Total income taxes

117,644(622,010)

Profit

3,614,104

7,157,734

Unappropriated retained earnings

3,614,104

7,157,734

The accompanying notes form an integral part of these financial statements.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

13

(3) STATEMENTS OF CHANGES IN NET ASSETS
Thousands of yen
Unitholders' equity
SurplusCapital surplus

Unitholders' capital

Capital surplus
Balance at beginning ofcurrent period
Changes of items during
periodReversal of reserve for
reduction entry

Voluntary retained earnings

Capital surplus, net

Reserve for reduction
entry

Total voluntary retained
earnings－

1,750,398

1,750,398(628,761)(628,761)－

153,990,040

Dividends of surplus
ProfitTotal changes of items
during period
Balance at end of current
period－－－(628,761)(628,761)

153,990,040－－

1,121,637

1,121,637

Unitholders' equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning ofcurrent period
Changes of items during
periodReversal of reserve for
reduction entry

Total unitholders'equityTotal surplus

Total net assets

3,331,238

5,081,637

159,071,677

159,071,677

628,761－－－

Dividends of surplus(3,960,000)(3,960,000)(3,960,000)(3,960,000)

Profit

3,614,104

3,614,104

3,614,104

3,614,104

282,865(345,895)(345,895)(345,895)

3,614,104

4,735,741

158,725,781

158,725,781

Total changes of items
during period
Balance at end of current
periodThe accompanying notes form an integral part of these financial statements.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

14

For the six-month period ended March 1, 2023 and August 31, 2023
Thousands of yen
Unitholders' equity
SurplusCapital surplus

Unitholders' capital

Capital surplus, net

Reserve for reduction
entry

Total voluntary retained
earnings－－

1,121,637

1,121,637

69,736,000

69,736,000
254,704

254,704

Capital surplus
Balance at beginning ofcurrent period
Changes of items during
period153,990,040

Increase by merger

Voluntary retained earnings

Provision of reserve for
reduction entry
Dividends of surplus
ProfitTotal changes of items
during period
Balance at end of current
period－69,736,000

69,736,000

254,704

254,704

153,990,040

69,736,000

69,736,000

1,376,341

1,376,341

Unitholders' equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning ofcurrent period
Changes of items during
period3,614,104

Increase by merger

Total unitholders'equityTotal surplus

Total net assets

4,735,741

158,725,781

158,725,781

69,736,000

69,736,000

69,736,000

Provision of reserve for
reduction entry(254,704)－－－

Dividends of surplus(3,359,400)(3,359,400)(3,359,400)(3,359,400)

Profit7,157,734

7,157,734

7,157,734

7,157,734

3,543,630

73,534,334

73,534,334

73,534,334

7,157,734

78,270,076

232,260,116

232,260,116

Total changes of items
during period
Balance at end of current
periodThe accompanying notes form an integral part of these financial statements.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

15

(4) STATEMENTS OF CASH DISTRIBUTIONS
For the six-month period ended March 1, 2023 and August 31, 2023
Unit: yen
Fiscal Period ended
February 28, 2023
(October 1, 2022 to February 28, 2023)

Fiscal Period ended
August 31, 2023
(March 1, 2023 to August 31, 2023)

3,614,104,524
3,359,400,000

7,157,734,912
6,052,000,000(2,545)(1,700)254,704,524

1,105,734,912

Ⅳ. Retained earnings carried forward
Calculation method of distribution In accordance with Paragraph 1,
amountArticle 29 of the Investment
Corporation’s Articles of Incorporation,
MTR decided to distribute the totalbalance of unappropriated retained
earnings after deducting provision of thereserve for reduction entry under Article65-7 of the Act on Special Measures
Concerning Taxation, the amount of
which is 3,359,400,000 yen.
In addition, MTR does not distributedividends in excess of accounting profit
as set forth in Paragraph 2, Article 29 of
the Investment Corporation’s Articles ofIncorporation.

In accordance with Paragraph 1,
Article 29 of the Investment
Corporation’s Articles of Incorporation,
MTR decided to distribute the totalbalance of unappropriated retained
earnings after deducting provision of thereserve for reduction entry under the
Act on Special Measures Concerning
Taxation that has been recorded asdeferred tax liabilities, and the reserve
for reduction entry under Article 65-7 of
the Act on Special Measures Concerning
Taxation, the amount of which is
6,052,000,000 yen.
In addition, MTR does not distributedividends in excess of accounting profit
as set forth in Paragraph 2, Article 29 of
the Investment Corporation’s Articles ofIncorporation.

I. Unappropriated retained earnings
Ⅱ. Distribution amount(Distribution amount per unit)
Ⅲ. Voluntary retained earnings
Provision of reserve for reduction
entryDisclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

16

(5) STATEMENTS OF CASH FLOWSFor the six-month period ended March 1, 2023 and August 31, 2023

Cash flows from operating activities
Profit before income taxes

Thousands of yen
For the period
from March 1, 2023
to August 31, 2023

For the period
from October 1, 2022
to February 28, 2023

Depreciation
Amortization of goodwill
Amortization of investment corporation bond issuance
costs
Interest income
Interest expenses
Decrease (Increase) in operating accounts receivable
Increase (Decrease) in operating accounts payable
Decrease(increase)in consumption taxes refund receivable

3,731,749

6,535,724

914,440－

966,640
15,731

7,679

7,794

(94)

(94)

315,912(19,978)

633,460(32,805)(10,954)504,944(129,917)－(172,139)
5,584

Increase (Decrease) in accrued consumption taxes
Increase (Decrease) in advances received(61,744)
29,598Decrease due to sale of investment property
Other, net

5,829,179
73,6555,822,521(68,973)

Subtotal

10,675,035

14,252,880

94

94

Income taxes paid

(348,757)(881)(625,255)(1,495)

Net cash provided by operating activities

10,325,489

13,626,223

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust(16,911)(370,239)(5,405,860)(29,341,494)(1,334)

Interest income received
Interest expenses paid

Purchase of intangible assets
Repayments of tenant leasehold and security deposits－(122,170)
184,460

Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits intrust
Proceeds from tenant leasehold and security deposits intrust
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Payments for investment corporation bond issuance costs
Dividends paid

(186,227)
772,650(8,391)(7,955)37,476

19,938(5,331,397)(29,114,663)－(1,475,000)

6,000,000(8,500,000)

32,500,000(13,000,000)

3,000,000(4,000,000)－－(2,600)(4,069,618)(15,045)(3,960,117)

Net cash used in financing activities(7,475,163)

13,952,781

Net increase (decrease) in cash and cash equivalents(2,481,070)(1,535,658)

Cash and cash equivalents at beginning of period

19,624,156

17,143,085－

5,663,761

17,143,085

21,271,188

Increase in cash and cash equivalents resulting from merger
Cash and cash equivalents at end of period
The accompanying notes form an integral part of these financial statements.
Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

17

5. Reference Information(1) Composition of assets
type

Real
property

Total of net
book value (Note 2)(Millions of yen)

As of August 31, 2023

Ratio tototal assets(Note 3) (%)

Total of net
book value (Note 2)(Millions of yen)

Ratio tototal assets(Note 3) (%)

87,50827.1

87,461

18.5

Metropolitan area,
ordinance-designatedcities,etc. (Note 5)

6,595

2.0

6,550

1.4

－

31,414

9.7

25,530

5.4

Central Tokyo(Note 4)

107,800

33.4

131,395

27.8

Metropolitan area,
ordinance-designatedcities,etc. (Note 5)

21,772

6.8

27,0505.7

Major cities acrossJapan (Note 6)

15,2384.7

131,104

27.7

Famous tourist sites(Note 7)

－

－

7,120

1.5

－

34,568

10.7

34,546

7.3

Subtotal

304,89794.6

450,758

95.3

Other assets

17,501

5.4

22,432

4.7

Total

322,398100.0

473,191

100.0

Officebuilding

Lodgingfacilities

Other

RegionCentral Tokyo(Note 4)

Officebuilding

Other

Trust

As of February 28, 2023

Use
(Note 1)

(Note 1) “The use categories are Office buildings and Lodging facilities, which are the core assets, and Other (retail facilities and residential properties). The same
applies hereinafter.
(Note 2) “Total of net book value” is based on the amounts presented in the balance sheets (book value after depreciation for real estate and real estate in trust) as ofthe settlement date.
(Note 3) “Ratio to total assets” is rounded to the first decimal place.
(Note 4) “Central Tokyo” referrers to Chiyoda, Chuo, Minato, Shinagawa, Shibuya and Shinjuku Wards.
(Note 5) “Other” refers to greater Tokyo (Kanagawa, Chiba and Saitama Prefectures, and the Tokyo Metropolitan Area excluding central Tokyo) and Metropolitanarea, ordinance-designated cities,etc.
(Note 6) Tokyo 23 wards and ordinance-designated cities(Note 7) Areas with attractive cultural and tourist attractions that already attract tourists or are expected to attract tourists in the future.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

18

(2) Investment Assets
The total number of real estate properties held by MTR and real estate properties in trust associated with the real estate trust’s beneficiaryrights held by MTR as of August 31, 2023 was 22, and all such real estate is leased by MTR or trust fiduciaries based on trust contracts inthe case of real estate in trust.
(i) List of details of real estate and real estate in trust
The overview of real estate held by MTR and real estate trust’s beneficiary rights and real estate in trust, properties in trust subject to suchrights, as of August 31, 2023 is as follows (real estate, real estate trust’s beneficiary rights and real estate in trust, properties in trust subject
to such rights, are hereinafter individually or collectively referred to as the “Portfolio”).
Overview of the Portfolio
Use

Property nameArea
(Note 1)

LocationLand（㎡）

Tokyo Shiodome
Building(Note 3) (Note 16)

Lodgingfacilities

Minato-ku, Tokyo

17,847.73

Structure(Note 2)
/number of
Floors (Note 1)

Type ofspecifiedassets191,394.06

SRC・RC・S
B4/37F

Real estate

Building（㎡）Kamiyacho Trust
Tower (Note 4)(Note 5) (Note 16)

Minato-ku, Tokyo

16,131.84

196,037.12

S・RC
B4/37FON Building(Note 5) (Note 6)

Shinagawa-ku, Tokyo

10,850.67

32,812.27

S・SRC
B2/21F

Kioicho Building(Note 5) (Note 7)(Note 16)

Chiyoda-ku, Tokyo

9,291.93

63,535.55

SRC・S
B4/26F

Osaki MT Building(Note 6)

Shinagawa-ku, Tokyo

13,852.74

26,980.68

S・SRC
B3/14F

Hiroo MTR Building
Shibuya-ku, Tokyo(Note 5)

1,671.79

6,709.80

SRC
B1/7F

Sendai MT Building(Note 5) (Note 8)

Miyagino-ku, Sendai-shi

5,020.33

42,941.53

RC
B2/18F

Midosuji MTR
Building (Note 5)

Chuo-ku, Osaka City

1,560.98

15,129.16

S・SRC
B2/13F

Tenjin Prime (Note 5) Chuo-ku, Fukuoka City

1,110.73

7,722.04

S・RC
B1/12F

Shin-Yokohama
TECH Building(Note 9)Kohoku-ku, Yokohama City

A-Wing：11,636.35
2,671.11 B-Wing：13,550.87
Total：25,187.22

Shangri-La Tokyo(Note 5) (Note 10)

Chiyoda-ku, Tokyo

12,026.77

180,335.11

S・SRC・RC
B4/37F

Hotel Okura Kobe
(Note 5)Chuo-ku, Kobe City

30,944.44

72,246.86

SRC・S
B2/35F50,605.67(Main facility) S・SRC
B1/12F(Bade facility) RC
B1/3F(Sports facility) RC
B1/2F(Chapel) S
1F

Lodgingfacilities
Hilton Odawara
Resort & Spa(Note 5) (Note 11)

Odawara-shi, Kanagawa

174,566.00

Disclaimer:

A-Wing：SRC
B1/9F
B-Wing：S・SRC
B1/16F

Real estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsReal estate
Real estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsReal estate
Real estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsThis English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

19

Use

Property nameArea
(Note 1)

LocationLand（㎡）

Lodgingfacilities

Other

Courtyard by
Marriott Shin-Osaka
Station (Note 5)(Note 12)
Courtyard by
Marriott Tokyo
Station (Note 5)(Note 13)

Building（㎡）Structure(Note 2)
/number of
Floors (Note 1)

Type ofspecifiedassetsReal estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrightsReal estate
trust’sbeneficiaryrights

Yodogawa-ku, Osaka

2,199.34

17,002.28

S
18F

Chuo-ku, Tokyo

4,399.47

51,242.93

S・SRC
B3/21F

Hotel Sunroute Plaza
Shibuya-ku, Tokyo
Shinjuku (Note 5)

3,136.57

20,451.25

RC・S
B1/14FSHIBUYA FLAG
(Note 5) (Note 16)

Shibuya-ku, Tokyo

1,026.44

7,766.49

S・SRC
B2/9F

Minato-ku, Tokyo

1,069.88

7,820.45

S・SRC・RC
B2/8F

Real estateFujisawa City, Kanagawa
Prefecture

35,209.93

53,393.66

S
5F

Real estate

Midori-ku, Sagamihara City

19,878.57

40,283.77

S
5F

Real estateFrespo Inage(Note 5)Inage-ku, Chiba City

39,556.71－－

Real estate
trust’sbeneficiaryrightsPark Lane Plaza

Shibuya-ku, Tokyo

1,702.95

5,246.78

Shinbashi Ekimae
MTR Building(Note 14)
Ito-Yokado
Shonandai
Kohnan SagamiharaNishihashimoto(Note 15)

RC
B1/7F

Real estate(Note 1) “Area” and “Structure/number of floors” present the details stated in real estate registries.
(Note 2) In “Structure”, “SRC” means steel-framed reinforced concrete construction, “RC” means reinforced construction and “S” means steel construction.
(Note 3) The land area of Tokyo Shiodome Building is the area of land jointly owned by MTR, and it includes the area of co-owned interest jointly owned by MTR
with other co-owners. In the relevant land, MTR’s co-owned interest is a ratio of 375,178/1,000,000. Moreover, Tokyo Shiodome Building is a co-ownedbuilding, and the floor area of 71,806.84m2 is calculated by multiplying MTR’s co-owned interest (ratio of 375,178/1,000,000) by the total floor space.
(Note 4) The land area of Kamiyacho Trust Tower is the total of 14 plots comprising the site of the building, including leased land. The building of Kamiyacho
Trust Tower is sectionally owned and the building area indicated is the total floor area of one building. The floor area for exclusive use owned by the trust
fiduciary having MTR as the only trust beneficiary is 13,292.02 m2.Of the said floor area for exclusive use, the 7th to 9th floors (total floor space: 11,393.16
m2. The number of floors is the number of floors in the registry plus one. The same applies hereinafter unless otherwise mentioned with respect to theproperty) are owned solely by MTR. MTR has a one-half of the co-ownership interest in the 14th floor (floor area: 3,797.72m2). Accordingly, for said 14th
floor, the floor area multiplied by MTR's co-ownership interest (1/2) (1,898.86m2) is stated as the floor area of the exclusive portion owned by MTR.
(Note 5) Of the 22 properties listed above, Kamiyacho Trust Tower, ON Building, Kioicho Building, Hiroo MTR Building, Sendai MT Building, Midosuji MTR
Building, Tenjin Prime, Shangri-La Tokyo, Hotel Okura Kobe, Hilton Odawara Resort & Spa, Courtyard by Marriott Shin-Osaka Station, Courtyard by
Marriott Tokyo Station, Hotel Sunroute Plaza Shinjuku, SHIBUYA FLAG and Frespo Inage have been categorized as real estate in trust, and the other 7
properties have been categorized as real estate. In addition, real estate in trust associated with Frespo Inage is only land, and the building is not included.
(Note 6) The land area of ON Building is the total area (10,850.67m2) of the 3 sections of land in which trust fiduciaries for whom MTR is the sole trust beneficiary
own a co-owned interest, and the trust fiduciaries own a co-owned interest of 840,139/1,000,000. The co-owned interest other than the one owned by thetrust fiduciaries is owned by MTR as the site of Osaki MT Building. As a result, the 3 sections of land in question (total area of 10,850.67m2) are statedseparately as part of the land area of Osaki MT Building and the land area of ON Building. Moreover, the land area of the Osaki MT Building is the total
area of all the 17 sections of land that MTR owns or jointly owns, which includes the co-owned interest of other co-owners. Of all the 17 sections of landin question, 13 sections of land (total area of 2,880.79m2) are solely owned by MTR. As for one section of land (area of 121.28m2), MTR owns a co-owned
interest of 1/5 and, as for the 3 sections of land (total area of 10,850.67m2), MTR owns a co-owned interest of 159,861/1,000,000. In addition, Osaki MT
Building is a co-owned building, and the floor area of 24,495.21m2 is calculated by multiplying MTR’s co-owned interest (ratio of 907,880/1,000,000) by
the total floor space.
(Note 7) The land area of Kioicho Building is the total area of the 8 sections of land, the site of the relevant building, and it includes the interest of other owners(partial ownership). Of the 8 sections of land in question, 5 sections of land (total area of 7,433.52m2) are solely owned by a trust fiduciary for whom MTR
is the sole trust beneficiary. MTR has acquired sectional ownership of the Kioicho Building. The total floor space stated is the total floor space for the
portion of one building that represents the sectional ownership. The exclusive portion of the floor space owned by a fiduciary of the trust in which MTR is
the sole beneficiary is 24,598.85m2.
(Note 8) The land area of the Sendai MT Building is the total area of all four parcels of land that are the site of the building in question, and is the so-called partial
ownership land consisting of the land owned solely by MORI TRUST CO., LTD. and other co-owners who had co-owned interest of the building. A trust
fiduciary, whose sole trust beneficiary is MTR currently holds a co-owned interest of 2/3 in the land owned solely by MORI TRUST CO., LTD. The Sendai
MT Building is a co-owned building of MORI TRUST CO., LTD. and a trust fiduciary, whose sole trust beneficiary is MTR, and a trust fiduciary, whosesole trust beneficiary is MORI TRUST CO. LTD. The total floor space multiplied by the co-owned interest of the trust fiduciary, whose sole trust beneficiaryis MTR (181,690/300,000) is 26,006.82m2.
(Note 9) Shin-Yokohama TECH Building is real estate that is comprised of two buildings, A-Wing and B-Wing, and the site for the buildings.
(Note 10) The site area of Shangri-La Tokyo is the total of five parcels of land comprising the site of the building and thus includes area owned by other unit owners.
This building is a unit ownership building, but the area of the entire building of MARUNOUCHI TRUST TOWER MAIN and MARUNOUCHI TRUSTTOWER NORTH is stated. The floor area of the exclusive element owned by the trustee with MTR as the sole beneficiary is 22,300.31m2.
(Note 11) For the site area of the Hilton Odawara Resort & Spa, the area of the entire site or land is stated. For the floor area of the Hilton Odawara Resort & Spa,the grand total of total floor area for the entire buildings of the Hilton Odawara Resort & Spa is stated. The total floor area multiplied by the quasi-co-Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

20

ownership interest in the Hilton Odawara Resort & Spa owned by MTR (50/100) is 25,302.83m2.
(Note 12) The land area of Courtyard by Marriott Shin-Osaka Station is the land area that is the site of the building in question and includes the interests of otherco-owners. The building of Courtyard by Marriott Shin-Osaka Station is a co-owned building, and the area multiplied by MTR's interest (74/100) subject
to the co-ownership trust beneficiary right is 12,581.68m2.
(Note 13) The site area of the entire site or land of the Courtyard by Marriott Tokyo Station is stated and the co-ownership interests of other parties are included.
his building is a unit ownership building, and the total floor area of the entire building of KYOBASHI TRUST TOWER is stated. The floor area of the
exclusive element owned by the trustee with MTR is 5,502.63m2. The total floor area multiplied by the quasi-co-ownership interest in the Courtyard by
Marriott Tokyo Station owned by MTR (935/1,000) is 5,144.95m2.
(Note 14) The land area of the Shinbashi Ekimae MTR Building is the total area of all 11 lots, which is the site of the building in question, with MTR holding a
one-thirds co-owned interest and a trust fiduciary, whose sole trust beneficiary is MORI TRUST CO. LTD. holding one-third co-owned interest. The
Shinbashi Ekimae MTR Building is a co-owned building, and the total floor space multiplied by MTR's co-owned interest (one-thirds) is 2,608.81m2.
(Note 15) The name was changed to "Hashimoto MTR Building" on September 28, 2023.
(Note 16) Tokyo Shiodome Building, Kamiyacho Trust Tower and Kioicho Building are categorized as “Office building”, which is the main use of the buildings,
and SHIBUYA FLAG is categorized as “Other”, which is the main use of the building. The grade for each accommodation is as follows.
Guest room
Guest room unit
Summary
Grade
Property Namefloor area (m2)price (yen)A prominent hotel chain
recognized worldwide as a40～
40,000～LuxuryShangri-La Tokyo
luxury brand

Upper upscale

A prominent hotel chain
recognized worldwide as an
upper upscale hotel brand

30～40

30,000～40,000

UpscaleA branded class under theumbrella of a prominent hotel
chain recognized worldwide asa luxury hotel brand.

20～30

20,000～30,000

Hotel Okura Kobe
Hilton Odawara Resort & Spa
Courtyard by Marriott Shin-Osaka Station
Courtyard by Marriott Tokyo Station

More comfortable hotel than
midscale hotels, with better
15～20
10,000～20,000 Hotel Sunroute Plaza Shinjuku
room size and interior design
・Standard area and price (ADR(Note)) guidelines are defined for each grade. The guideline for prices shall be revised when deemed necessary in response tochanges in market conditions and other factors.
(Note) ADR refers to Average Daily Rate.

Upper midscale

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

21

Categories, prices and investment ratios of the Portfolio

Use(Note 1)

RegionProperty nameTokyo Shiodome
Building

Book
DirectEnd-ofvalue at
reduction
Acquisition
periodmethodthe endPriceappraisalof(Note 2)
value
fiscal(Millions of(Note 3)
periodCap rateyen)(Millions of(Millionsyen)of yen)82,53974,59181,6003.1%(Note 5)

Discounted cashflow(DCF) method
Terminal
cap rate

3.0%

3.1%

Rich Appraisal
Institute K.K.

17.6%

Kamiyacho Trust
Tower

51,660(Note 6)51,50756,4002.5%

2.4%

Daiwa Real
2.6% Estate Appraisal
Co., Ltd.

11.0%

ON Building

39,90038,69635,300

3.3%

3.0%

3.4%

Japan Real
Estate Institute

8.5%

Kioicho Building

34,30032,881

38,400

3.1%

2.9%

Daiwa Real
3.3% Estate Appraisal
Co., Ltd.

7.3%

Osaki MT Building

14,386(Note 7)

12,87017,600

3.2%

2.9%

3.3%

Japan Real
Estate Institute3.1%

Hiroo MTR Building

8,100

8,309

8,420

3.6%

3.4%

Daiwa Real
3.8% Estate Appraisal
Co., Ltd.

1.7%

230,885

218,857

237,720

Subtotal

10,500

4.5%

4.3%

10,1709,819

10,700

3.5%

3.3%

7,050
(Note 9)6,611

10,100

3.4%

3.2%

6,900

6,550

8,600

4.3%

4.1%

34,65333,60039,900－7.4%

265,539

252,457

277,620－

56.5%

Shangri-La Tokyo

49,20049,14049,600

3.2％

2.9％

3.4％

Japan Real
Estate Institute

10.5％

Hotel Okura Kobe

19,00015,182

16,900

4.9％

4.7％

5.0％

Rich Appraisal
Institute K.K.

4.0％

Courtyard by Marriott
Shin-Osaka Station

17,40017,352

17,500

4.2％

3.9％

4.4％

Japan Real
Estate Institute

3.7％

Courtyard by Marriott
Tokyo Station(Note 10)

17,017

16,98017,017

3.7％

3.4％

3.9％

Japan Real
Estate Institute

3.6％

Hotel Sunroute Plaza
Shinjuku

32,50032,44732,400

3.5％

3.3％

3.7％

Japan Real
Estate Institute

6.9％

135,117

131,104

133,417

7,100

7,120

7,150

7,100

7,120

7,150

－

1.5％

142,217

138,224

140,567－

30.2％

SHIBUYA FLAG

32,04032,352

41,700

3.1％

2.9％

Shinbashi Ekimae
MTR Building

6,000(Note 12)

5,821

7,270

3.6％

3.4％

11,6009,587

11,7005.3％

5.0％

Shin-Yokohama
TECH Building

Subtotal
Subtotal

Subtotal
Famous tourist
sites

Hilton Odawara Resort& Spa (Note 11)

Subtotal
Subtotal

Other－

Daiwa Real
4.7% Estate Appraisal
Co., Ltd.
Daiwa Real
3.7% Estate Appraisal
Co., Ltd.
Japan Real
3.5%
Estate InstituteChuo-Nittochi
4.6% Solutions Co.,Ltd.

10,619Metropolitan
Midosuji MTRarea, ordinanceBuilding
designatedcities,etc.
Tenjin Prime

Lodgingfacilities

49.1%

－

10,533(Note 8)Sendai MT Building

Major cities
across Japan

Investment
ratio(Note 4)

Discount
rate

Central Tokyo

Officebuilding

Appraiser

Ito-Yokado Shonandai

Disclaimer:

4.5％

2.2%
1.5%
1.5%

28.7％

－
4.7％

2.2%

4.8％

Japan Real
Estate InstituteJapan Real
Estate InstituteChuo-Nittochi
3.8％ Solutions Co.,
Ltd.
Japan Real
5.5％
Estate Institute
3.2％

1.5％

6.8％
1.3％
2.5％

This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

22

Use
(Note 1)

Other

Property nameAcquisition
Price(Note 2)
(Millionsof yen)Kohnan SagamiharaNishihashimotoBook
value atthe endoffiscalperiod(Millionsof yen)

7,460

7,037

6,620

2,100
(Note 13)

2,193

3,200

Subtotal
Total

RegionFrespo Inage－

Park Lane Plaza

DirectEnd-ofreduction
periodmethodappraisal
value(Note 3)Cap rate(Millionsof yen)Discounted cashflow(DCF) method
Appraiser

Investment
ratio(Note 4)

Discount
rate

Terminal
cap rate

4.6％

4.0％

4.5％

2,600

－
(Note 14)

7.9％

3,083

4,330

3.3％

3.9％

62,40060,07674,220－13.3％

470,156

450,758

492,407－100.0％

Japan Real
Estate InstituteJapan Real－
Estate Institute(Note 15)
Chuo-Nittochi
3.0％ Solutions Co.,
Ltd.

1.6％
0.4％
0.7％

(Note 1) The attribution of properties that have more than one use is judged based on their main use. Tokyo Shiodome Building, Kamiyacho Trust Tower andKioicho Building are categorized as “Office building”, which is the main use of the buildings, and SHIBUYA FLAG is categorized as “Other”, which is themain use of the building. The same applies thereafter.
(Note 2) The “Acquisition price” stated is the amount (sales prices stated in sales contracts, etc.) that does not include various expenses (sales commission charges,
property and other taxes, etc.) that were incurred when the relevant Portfolio was acquired. However, for properties owned by MTH, the appraisal value asof the end of February 2023, which is their worth at the time of merger with MTH, is shown. The same applies thereafter.
(Note 3) The “End-of-period appraisal value” stated is the value that was calculated based on the capitalization method (based on the price as of August 31, 2023)
by real estate appraisers in accordance with MTR’s rules and the Investment Corporation Calculation Rules (Cabinet Office Ordinance No. 47, 2006;
including revisions thereafter).
(Note 4) The “Investment ratio” is the ratio of the acquisition prices of each asset against the total acquisition price of the Portfolio, and is rounded to the firstdecimal place.
(Note 5) The acquisition price of Tokyo Shiodome Building indicated is equivalent to 37.5178% of the co-ownership interest held by MTR as of August 31, 2023,
out of 110,000 million yen, which is the acquisition price of 50% of the co-ownership interest of the property concerned, due to the sale of 6.2411% coownership interest on July 1, 2021, and the sale of 6.2411% co-ownership interest on October 1, 2021.
(Note 6) The acquisition price of the Kamiyacho Trust Tower stated is the total amount of the acquisition prices on July 1, 2021 (13,980 million yen), October 1,
2021 (13,980 million yen) and March 1,2023 (23,700 million yen).
(Note 7) The acquisition price of the Osaki MT Building stated is the total amount of the acquisition prices on March 31, 2005 (7,870 million yen), October 28,
2005 (5,656 million yen) and January 30, 2015 (860 million yen).
(Note 8) Sendai MT Building will be acquired in three separate acquisitions, and the acquisition price of the Sendai MT Building stated is the total amount of theacquisition prices on February 28, 2023 (5,266 million yen) and August 31, 2023 (5,266 million yen).
(Note 9) The acquisition price of the Tenjin Prime stated is the total amount of the acquisition prices on July 12, 2012 (6,940 million yen), December 1, 2021 (110
million yen).
(Note 10) The acquisition prices and the appraisal value at end of period for Courtyard by Marriott Tokyo Station are the figures corresponding to MTR's quasi coownership interest in the trust beneficiary right of 935/1,000.
(Note 11) The acquisition prices and the appraisal value at end of period for Hilton Odawara Resort & Spa are the figures corresponding to MTR's quasi coownership interest in the trust beneficiary right of 50/100.
(Note 12) The acquisition price of Shinbashi Ekimae MTR Building stated is the amount equivalent to one-thirds of 18,000 million yen, the acquisition price ofthe entire property in question, because one-third of the co-ownership interest was transferred on February 28, 2023 and one-third of the co-ownershipinterest was transferred on August 31, 2023.
(Note 13) The acquisition price of Frespo Inage stated is the amount equivalent to 50% of 4,200 million yen, the acquisition price of the entire property in question,
because 50% of the land in trust was transferred on February 29, 2012.
(Note 14) The direct capitalization method is not adopted for Frespo Inage.
(Note 15) The terminal cap rate of Frespo Inage has not been stipulated.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

23

(ii) Details of the situation of leasing of the Portfolio
The situation of leasing of the Portfolio held by MTR as of August 31, 2023 is as follows.
Of the Portfolio held by MTR, the property in the Portfolio whose rental revenues account for 10% of the total rental revenuesof the entire Portfolio or higher in the fiscal period ended August 31, 2023 (six months from March 1, 2023 to August 31, 2023)
is 2 properties, Tokyo Shiodome Building, Kioicho Building.
Situation of leasing of the Portfolio

Rentalrevenues(Note 1)
(Millions of yen)

Ratio tototal rental
revenues
ratio (Note 2)

Rentablearea(Note 3) (㎡)

Rent
area
(Note 4) (㎡)

1,421

13.7％

71,806.84

71,806.84

1
(25)

944

9.1％

13,479.44

13,479.44

1(７)(Note 6)(Note 6)

20,654.60

20,654.60

1

Kioicho Building (Note 7)

1,047

10.1％

24,748.48

24,228.91

41(76)

Osaki MT Building (Note 8)

334

3.2％

24,495.21

24,495.21

１(16)

Hiroo MTR Building (Note 9)

158

1.5％

4,946.36

4,571.72

8

Sendai MT Building (Note 10)

216

2.1％

26,006.82

26,006.82

1(45)

Midosuji MTR Building (Note 11)

307

3.0％

15,129.16

15,129.16

１(32)

Tenjin Prime (Note 9)

255

2.5％

5,990.40

5,990.40

13

Shin-Yokohama TECH Building

316

3.0％

18,117.03

16,142.68

20

Shangri-La Tokyo

935

9.0％

22,755.55

22,755.55

１

Hotel Okura Kobe

629

6.1％

72,246.86

72,246.86

１

Courtyard by Marriott Shin-Osaka
Station296

2.9％

13,881.47

13,881.47

１Courtyard by Marriott Tokyo
Station278

2.7％

5,255.05

5,255.05

１

Hotel Sunroute Plaza Shinjuku

653

6.3％

21,248.23

21,248.23

１Famous tourist
Hilton Odawara Resort & Spa
sites

191

1.9％

25,302.83

25,302.83

１(Note 6)(Note 6)

5,983.86

5,983.86

3

Shinbashi Ekimae MTR Building－－

2,685.00

0.00

０Ito-Yokado Shonandai

375

3.6％

53,393.66

53,393.66

1

Kohnan SagamiharaNishihashimoto(Note 6)(Note 6)40,283.77

40,283.77

1Frespo Inage

123

1.2％

39,556.71

39,556.71

1Park Lane Plaza (Note 12)

107

1.0％

4,443.03

4,295.99

17

Use

RegionProperty nameTokyo Shiodome Building(Note 4)
Kamiyacho Trust Tower (Note 5)
ON Building

Central Tokyo

Officebuilding

Metropolitan
area,ordinancedesignatedcities,etc.

Lodgingfacilities

Major cities
across JapanSHIBUYA FLAG (Note 9)

Other

－

Total numberoftenants

117(272)(Note 1) “Rental revenues” stated are rental revenues (rent, common charges, other rental revenues, etc.) for the fiscal period ended August 31, 2023 fiscal period.
(Note 2) The “Ratio to total rental revenues” is rounded to the first decimal place.
(Note 3) The “Rentable area” includes a rentable area that is able to be used for use other than the main use in question (offices, stores, warehouses, etc.), in addition
to the rentable area that is able to be used for leasing, the main use of the Portfolio, and the “Rentable area” stated is the total area of the areas as describedabove (including common areas, etc. that are leased). In addition, "Rent area" is included in the rentable area and is the area that has been actually leased
through the execution of lease contracts. The area of the Tokyo Shiodome Building stated is the area calculated by multiplying MTR’s co-owned interest(375,178/1,000,000) by the total rentable area and rent area of the building (191,394.06m2). The area stated for Kamiyacho Trust Tower is the rentable area
and rent area for the 7th through 9th floors (11,553.81m2), plus the rentable area and rent area for the 14th floor (3,851.27m2) multiplied by MTR's coTotal (Note 13)

10,374Disclaimer:

100.0％

532,410.36

526,709.76

This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

24

ownership interest (1/2). In addition, the area of the Osaki MT Building stated is the area calculated by multiplying MTR’s co-owned interest(907,880/1,000,000) by the total rentable area of the building (26,980.68m2). The total leasable area of Sendai MT Building represents the leasable area ofthe building (42,941.53m2) multiplied by the co-ownership interest of the trust fiduciary, whose sole trust beneficiary is MTR (181,690/300,000). The area
stated for Courtyard by Marriott Shin-Osaka Station is the rentable area and rent area of the building (18,758.75 m2) multiplied by MTR's interest (74/100)
that is subject to trust beneficiary rights. The area stated for Courtyard by Marriott Tokyo Station is the rentable area and rent area (5,620.38m2) subject totrust beneficiary rights multiplied by MTR's quasi co-ownership interest (935/1,000) in the trust beneficiary rights. The area stated for Hilton Odawara
Resort & Spa is the rentable area and rent area (50,605.67m2) subject to trust beneficiary rights multiplied by MTR's quasi co-ownership interest (50/100)in the trust beneficiary rights. The area of the Shinbashi Ekimae MTR Building stated is the area calculated by multiplying MTR’s co-owned interest (1/3)
by the total rentable area and rent area of the building (8,050.00m2).
(Note 4) A master lease agreement, under which rent income is linked to rents under sublease agreements, is used for the office and store sections, and a master
lease agreement specifying a fixed rent is used for the hotel section of Tokyo Shiodome Building. The numbers in parentheses of the total number of tenantsof the property represent the total number of tenants based on sublease agreements for the office and store section and that based on the master leaseagreement for the hotel section.
(Note 5) A master lease agreement, under which rent income is linked to rents for joint management units, is used for Kamiyacho Trust Tower, and the number inparentheses of the total number of tenants of the property is the total number of tenants of the joint management units. Joint management is the system inwhich 25 floors from the sixth to the 30th floors are designated as joint management units, each unit owner signs a lease agreement with MORI TRUST
CO., LTD., designating the unit owner as the lessor and MORI TRUST CO., LTD. as the lessee, and the lessee subleases each floor as a joint management
unit. The lessee distributes the total income generated from these joint management units according to interest ratios based on the exclusively owned area
owned by each unit owner.
(Note 6) The “Rental revenues” and the “Ratio to total rental revenues” of the ON Building, SHIBUYA FLAG and Kohnan Sagamihara-Nishihashimoto are notdisclosed because the agreements of the tenants about disclosing rents have not been able to be obtained.
(Note 7) Regarding the office portion of the Kioicho Building, MTR leases the office portion of the Kioicho Building from a fiduciary trust company under amaster lease agreement and subleases it to tenants. Regarding the residential portion, the agreement used is the master lease pass-through model. The total
number of tenants of the relevant properties stated above is that under the sublease agreement for the office portion and the master lease agreement for the
residential portion. The figure in brackets for the total number of tenants is the total number of tenants based on the sublease agreements of the office andresidential portions of the building.
(Note 8) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Osaki MT Building. The figure
in brackets for the total number of tenants of the building is the total number of tenants based on the sublease agreements.
(Note 9) MTR leases the land and building of Hiroo MTR Building, Tenjin Prime and SHIBUYA FLAG from a fiduciary trust company under a master leaseagreement and subleases it to tenants. The total number of tenants of the above properties is that under the sublease agreements.
(Note 10) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Sendai MT Building. The figure
in brackets for the total number of tenants of the building is the total number of tenants based on the sublease agreements.
(Note 11) The agreement used for the Midosuji MTR Building is the master lease pass-through model. The figure in brackets for the number of tenants of thebuilding is the total number of tenants based on the sublease agreements.
(Note 12) At Park Lane Plaza, if lease contracts for more than one residential unit are concluded with one tenant, the number of residential units is counted as thenumber of tenants.
(Note 13) The numbers in parentheses of the total number of tenants represent the total numbers of tenants based on sublease agreements for Kioicho Building,
Osaki MT Building, Sendai MT Building, and Midosuji MTR Building and the overall number of tenants in all joint management units for Kamiyacho
Trust Tower. The total number of tenants in Tokyo Shiodome Building represents that based on Note 4.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

25

Occupancy rate of the Portfolio
RegionUseCentralTokyo

Property name

2021

2020

2019

Tokyo Shiodome Building(Note 2)
Kamiyacho Trust Tower(Note 3)End ofSep.
100.0(66.5)
100.0(99.3)End ofMar.
100.0(61.3)
100.0(99.3)End ofSep.
100.0(53.5)
100.0(97.3)End ofMar.

End ofSep.

End ofMar.

End ofSep.

End of
Mar.

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

ON Building

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

97.9
(97.4)
100.0(85.2)

97.8(95.6)
100.0(88.3)

94.5(92.6)
100.0(95.6)

96.3(95.6)
100.0(95.2)

89.7(89.7)
100.0(85.8)

90.8(89.5)
100.0(85.0)

99.9(98.7)
100.0(99.1)

99.9(98.7)
100.0(97.8)

99.9(98.5)
100.0(91.8)

99.9(99.9)
100.0(91.8)

92.4

92.4

100.0

87.5

87.5

100.0

100.0

100.0

100.0

100.0

98.7
(97.1)

99.9(99.7)

99.9(99.6)

99.9(99.0)

99.9(99.3)

Kioicho Building (Note 4)

99.4(95.9)
100.0(99.1)
100.0(100.0)99.4(85.9)
100.0(99.9)
100.0(100.0)99.1(84.8)

99.0(82.8)

98.0(75.1)

－

－

－

－

－

－

－

－

100.0
(96.4)

100.0(100.0)100.0(100.0)100.0(95.6)

100.0(98.4)

100.0(100.0)100.0(100.0)100.0(100.0)

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

89.1

78.0

71.7

59.9

100.0

100.0

100.0

100.0

100.0

98.7

97.0
(95.8)
98.7(95.8)

92.4(90.5)
97.6(87.1)

86.9(83.9)
96.6(84.6)

81.4(78.7)
95.4(81.8)

100.0(100.0)98.4(80.6)

100.0(98.7)
98.9(97.3)

100.0(99.5)
99.9(99.7)

100.0(100.0)99.9(99.7)

100.0(100.0)99.9(99.2)

99.4(99.3)
99.9(99.3)

Shangri-La Tokyo

100.0

－

－

－

－

－

－

－

－

－

Hotel Okura Kobe

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

－

－

－

－

－

－

－

－

－

100.0

－

－

－

－

－

－

－

－

－

100.0

－

－

－

－

－

－

－

－

－

Subtotal (Note 7)

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Famous
Hilton Odawara Resort &tourist sites Spa

100.0

－

－

－

－

－

－

－

－

－

Subtotal (Note 7)

100.0

－

－

－

－

－

－

－

－

－

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Subtotal (Note 7)
Subtotal (Note 7)

Major
citiesacrossJapan

Courtyard by Marriott ShinOsaka Station
Courtyard by Marriott
Tokyo Station
Hotel Sunroute Plaza
Shinjuku

Subtotal (Note 7)

Other

2022

End ofFeb.
100.0(70.8)
100.0(99.3)

Osaki MT Building(Note 5)
Hiroo MTR Building
Office(Note 6)
building
Subtotal(Note 7)
Sendai MT Building(Note 8)Metropolitan
Midosuji MTR Buildingarea,(Note 9)ordinancedesignatedTenjin Prime (Note 6)
cities,etc.
Shin-Yokohama
TECH Building

Lodgingfacilities

2023
End ofAug.
100.0(95.8)
100.0(99.3)－SHIBUYA FLAG (Note 6)

100.0

100.0

100.0

100.0

92.2

92.2

100.0

100.0

100.0

100.0

Shinbashi Ekimae MTR
Building

0.0

0.0

0.0

0.0

100.0

100.0

100.0

100.0

100.0

100.0

Ito-Yokado Shonandai

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Kohnan SagamiharaNishihashimoto

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Frespo Inage

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Park Lane Plaza

96.7

96.7

96.8

100.0

100.0

95.9

100.0

92.9

95.9

100.0

98.1

96.3

94.6

94.7

99.7

99.6

100.0

99.8

99.9

100.0

Subtotal (Note 7)

98.9
97.6
96.5
96.0
99.1
99.3
99.9
99.9
99.9
99.9
(97.9)(93.1)(91.6)(90.5)(91.9)(98.6)(99.9)(99.8)(99.6)(99.7)(Note 1) The “Occupancy rate” is rounded to the first decimal place. The occupancy rate stated for each Portfolio is the percentage of the total rented area out of
the total rentable area. The subtotal of the occupancy rate for each category (or the total occupancy rate of the entire Portfolio) is the percentage of thesubtotal (or the total) rented area out of the subtotal (or the total) rentable area. The subtotal and total occupancy rates stated are the rates based on the
Portfolio held by MTR as of the end of each fiscal period. If the result of rounding is 100.0%, however, the rate is indicated as 99.9% by rounding down thesecond decimal place to the nearest first decimal place.
(Note 2) A master lease agreement, under which rent income is linked to rents under sublease agreements, has been used for the office and store sections, and amaster lease agreement specifying a fixed rent has been used for the hotel section of Tokyo Shiodome Building since April 1, 2021. Therefore, the numbers
in parentheses of the occupancy rates of the properties after September 30, 2021, represent occupancy rates based on sublease agreements for the office andstore section and occupancy rates based on the master lease agreement for the hotel section.
(Note 3) A master lease agreement, under which rent income is linked to the rents for joint management units, is used for Kamiyacho Trust Tower, and the number
in parentheses of the occupancy rate of the property is the occupancy rate of the entire joint management units.
(Note 4) Regarding the office portion of the Kioicho Building, MTR leases the office portion of the Kioicho Building from a fiduciary trust company under a
Total (Note 7)

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

26

master lease agreement and subleases it to tenants. Regarding the residential portion, the agreement used is the master lease pass-through model. The
occupancy rates of the relevant properties stated above are those under the sublease agreement for the office portion and the master lease agreement for the
residential portion. The figures in brackets for the occupancy rates are the occupancy rates based on the sublease agreements of the office and residential
portions of the building.
(Note 5) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Osaki MT Building. The figuresin brackets for the occupancy rates of the building are the occupancy rates of tenants based on the sublease agreements.
(Note 6) MTR leases the land and building of Hiroo MTR Building, Tenjin Prime and SHIBUYA FLAG from a fiduciary trust company under a master leaseagreement and subleases it to tenants. The occupancy rates of the above properties are those under the sublease agreements.
(Note 7) The numbers in parentheses of subtotal and total occupancy rates represent occupancy rates based on sublease agreements for Kioicho Building, Osaki
MT Building, Sendai MT Building, and Midosuji MTR Building and the occupancy rate calculated based on the occupancy rate of the entire joint
management units for Kamiyacho Trust Tower. The occupancy rate of Tokyo Shiodome Building after September 30, 2021, was calculated according toNote 2.
(Note 8) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Sendai MT Building. The figuresin brackets for the occupancy rates of the building are the occupancy rates of tenants based on the sublease agreements.
(Note 9) The agreement used for the Midosuji MTR Building is the master lease pass-through model. The figures in brackets for the occupancy rates of the building
are the occupancy rates based on the sublease agreement.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

27

Disclaimer:This report contains translations of selected information described in the Financial Release (Kessan-Tanshin) prepared under the timelydisclosure requirements of the Tokyo Stock Exchange, and portions of the Financial Statements and the Performance Information Reportfor the fiscal period ended August 31, 2023 from March 1, 2023 to August 31, 2023, of MORI TRUST REIT, Inc. (MTR), preparedpursuant to the Law Concerning Investment Trusts and Investment Corporations of Japan.
This English language document was prepared solely for the convenience of and reference by investors and neither corresponds to theoriginal Japanese documents nor is intended to constitute a disclosure document. The Japanese language Kessan-Tanshin and the
Financial Statements and the Performance Information Report for the aforementioned should always be referred to as originals of thisdocument.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely identical to the concepts of theequivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial statements, if there exist any
discrepancies in the meaning or interpretation thereof between the original Japanese documents and English statements contained herein,
the original Japanese documents will always govern the meaning and interpretation.
None of MTR, MORI TRUST Asset Management Co., Ltd. (MTAM) or any of their respective directors, officers, employees, partners,
shareholders, agents or affiliates will be responsible or liable for the completeness, appropriateness or accuracy of English translations or
the selection of the portion(s) of any document(s) translated into English. No person has been authorized to give any information or
make any representations other than as contained in this document in relation to the matters set out in this document, and if given or
made, such information or representation must not be relied upon as having been authorized by MTR, MTAM or any of their respective
directors, officers, employees, partners, shareholders, agents or affiliates.
The financial statements are a translation of the unaudited financial statements of MTR, that were prepared in accordance with generally
accepted accounting principles in Japan (Japanese GAAP) which may materially differ in certain respects from generally accepted
accounting principles and practices in other jurisdictions. In preparing the financial statements, certain reclassifications andmodifications have been made to the financial statements issued domestically in order to present them in a format that is more familiar
to readers outside Japan.
Certain provisions of this document contain forward-looking statements and information. We base these statements on our beliefs aswell as our assumptions based solely on certain limited information currently available to us. Because these statements reflect ourcurrent views concerning future events, these statements involve known and unknown risks, uncertainties and assumptions. These
forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain importantfactors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking
statements, including without limitation: the general economy, market conditions, financial markets including the performance of thereal estate market, interest rate fluctuations, competition with our properties, and the impact of changing regulations or taxation.
MTR does not intend and is under no obligation to update any particular forward-looking statement included in this document. The
forward-looking statements contained in this press release speak only as of the date of release, and MTR does not undertake to update
those forward-looking statements to reflect events or circumstances occurring after the date of this release.

Disclaimer:This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found,the Japanese original will always govern the meaning and interpretation.

28