May 23, 2022
Issuer of Real Estate Investment Trust Securities
MORI TRUST Sogo Reit, Inc.
4-3-1 Toranomon, Minato-ku, Tokyo
Masayuki Yagi,
Executive Director(TSE code 8961)
Asset Management Company:
MORI TRUST Asset Management Co., Ltd.
Michio Yamamoto
President and Representative Director
Contact:
Hiroshi Naito
General Manager, Strategic Management Department,
Sogo REIT Management Division
Phone: +81-3-6435-7011

MTR Announces Financial Results
for the fiscal period ended March 31, 2022

Tokyo, May 23, 2022 – Mori Trust Sogo Reit, Inc. (MTR) has announced financial results for the fiscal period
ended March 31, 2022 (from October 1, 2021 to March 31, 2022).

1. Operational/Asset Conditions for the fiscal period ended March 31, 2022 (from October 1, 2021 to March
31, 2022)(Amounts are rounded down to the nearest million yen)

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

Operating Revenues
Fiscal period ended
March 31, 2022
Fiscal period ended
September 30, 2021

Operating Income

Profit%Millions of yen%

Millions of yen%

Millions of yen

%

8,528

(7.3)

5,042

(9.4)

4,685

(10.0)

4,537(10.0)

9,202

4.7

5,563

1.8

5,205

1.7

5,041

(1.4)

Basic earnings per unit
Fiscal period ended
March 31, 2022
Fiscal period ended
September 30, 2021

Ordinary Income

Millions of yen

Rate of returnon equity

Ordinary income to total
assets ratio

Ordinary income tooperating revenues ratio

Yen

%

%

%

3,437

2.8

1.4

54.9

3,819

3.1

1.6

56.6

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.

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

Fiscal period ended
March 31, 2022
Fiscal period ended
September 30, 2021

3,195

4,217

3,550

4,686

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

Ratio ofdistributions to
net assets

Payoutratio

Millions of yen

%

%

−

−

92.9

2.6

−

−

92.9

2.9

(Note1) The difference between the distribution per unit and profit per unit for the fiscal period ended September 30, 2021, is a result of thereversal of the reserve for reduction entry (¥134 million) and reserve (¥490 million). The difference between the distribution per unit
and profit per unit for the fiscal period ended March 31, 2022, is a result of the reversal of the reserve for reduction entry (¥134 million)
and reserve (¥454 million).
(Note2) The payout ratio is rounded down to one decimal place.

(3) Financial positions
Total assets

Net assets

Capital adequacy ratio

Net assets per unit

Millions of yen

Millions of yen%

Yen

325,071

159,957

49.2

121,180

328,288

160,106

48.8

121,292

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

18,165(16,448)(5,702)

17,87818,783(14,385)(7,114)

21,863Fiscal period ended
March 31, 2022
Fiscal period ended
September 30, 2021

(4) Cash flows

Fiscal period ended
March 31, 2022
Fiscal period ended
September 30, 2021

Cash and equivalents,
end of period

2. Forecast for the September 2022 period (April 1, 2022 to September 30, 2022) and the March 2023 period(October 1, 2022 to March 31, 2023)(% shows change vs. previous period)
Operating revenues
Millions ofyen%OperatingincomeMillions ofyen

Ordinary
income%Millions ofyenDistributions perDistributions
unit (excluding
in excess of
distributions in
profit per unit
excess of profit)

Profit%Millions of
yen

%

Yen

Fiscal period ended
6,845 (19.7)
3,324 (34.1)
2,936 (37.3)
3,257 (28.2)
3,000
September 30, 2022
Fiscal period ended
6,876
0.5
3,383
1.7
2,974
1.3
3,200 (1.7)
2,800March 31, 2023
(Reference) The profit per unit forecast is ¥2,467 for the fiscal period ending September 30, 2022 and ¥2,424 for the fiscal period ending

Yen

0
0

March 31, 2023.
(Note1) The distribution per unit for the fiscal period ending September 30, 2022, is calculated based on the assumption that the sum of the profit
for the said period and the reversal of the reserve for reduction entry (¥702 million) will be distributed.
(Note2) The distribution per unit for the fiscal period ending March 31, 2023, is calculated based on the assumption that the sum of the profit forthe said period and the reversal of the reserve for reduction entry (¥495 million) 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.

2

3. Status of Asset Management(a) Summary of results for the current fiscal period(i) Transition of the Investment Corporation
The Investment Corporation was established on October 2, 2001, with Mori Trust Asset Management Co., Ltd. (changed tradename from Nihon Sogo Fund Co., Ltd.. on November 1, 2003) as the organizer, pursuant to the Act on Investment Trusts andInvestment Corporations.
On March 28, 2002, the Investment Corporation began asset management, starting with the acquisition of the trust beneficiaryright in Frespo Inage, land related to leased land agreement for business use.
Since then the Investment Corporation 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).
As a result, the real estate held by the Investment Corporation as of March 31, 2022, numbered 16 properties, with a total
assets price of ¥325,071 million.

(ii)

Investment environment and performance

During the fiscal period under review, the Japanese economy weakened, improving initially as consumer spending recovered
with the lifting of the state of emergency but stagnating again due to the implementation of a quasi-state of emergency in faceof the spread of new COVID-19 variants. The economic outlook also grew more uncertain amid rising geopolitical risk,
including the Ukraine crisis.
In the real estate investment market, investor confidence in Japan and abroad remained at a high level partly due to thedepreciation of the yen in response to the BOJ's maintenance of its monetary easing policy and the widening Japan-US interest
rate spread. Under such conditions, information on the sale of high-quality properties available for investment was limited andthe situation in which it was difficult to acquire properties persisted.
In the real estate leasing market, contracted rents for office buildings continued their downward trend but the vacancy rate for
office buildings rose at a slower pace, reflecting relocation to new office buildings and continued partial cancellation or
relocation to smaller spaces to reduce costs, offset by a growing tendency to relocate to larger spaces or open new offices.
In the market for retail facilities, urban commercial facilities and restaurants continued to face challenging conditions undera quasi-state of emergency but the sales of food at supermarkets, housing-related products, and other goods remained strong.
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.
The hotel market continues to face a challenging environment, with the spread of new variants delaying the recovery of
inbound tourism despite signs of improvement in domestic tourism.
Under these investment conditions, MTR carried out investment management to ensure more stable profit by maintaining theoccupancy rate of portfolio properties, purchasing part of Kamiyacho Trust Tower and selling part of Tokyo Shiodome Building
as of October 1, 2021.
As a result, as of March 31, 2022, the Investment Corporation owned 16 properties with a total book value of ¥306,985 million.
The occupancy rate for the properties owned by the Investment Corporation was 96.0% (90.5% (Note)) as of March 31, 2022.
MTR and the Asset Management Company 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, andimprovement of organizational governance in asset management operations, are essential for achieving a medium- to long-term
increase in the investor value of investment corporations.
In the fiscal period under review, MTR made efforts to save energy and water at facilities in connection with "E: environment,"
including installing LED emergency lighting fixtures in the parking lot of Hotel Okura Kobe and installing automatic faucets on
wash basins at Shin-Yokohama TECH Building. Two properties (Osaki MT Building and Shin-Yokohama TECH Building) alsoacquired DBJ Green Building certification for the first time, and Kamiyacho Trust Tower, in which MTR purchased real estate
trust beneficiary rights in July and October 2021, acquired the highest rating of AAA in Tokyo Metropolitan Government's
Energy Performance Certificate Program. As a result, MTR has acquired Environmental Certification and Evaluation for eightproperties it owns as of the end of the fiscal period under review. The ratio of certified properties in the portfolio, excluding landwith leasehold interest, is around 53% on a number of properties basis and around 50% on a leasable area basis. For "S: society,"
MTR sought to encourage initiatives promoting respect for human rights by positioning human rights initiatives as a basic
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.

3

sustainability policy and also established a human rights policy. MTR also implemented initiatives to ensure tenants’ safety andsecurity, such as continuing to place disinfectants at common areas of its properties as measures against COVID-19 andcontinuing to provide documents on preventive measures against infection. In addition, MTR supported the activities of Japanese
Red Cross Society by placing posters on its properties to cooperate in the Red Cross promotion activities. For "G: governance,"
MTR implemented training and awareness-raising activities such as providing compliance training to all executives andemployees on a regular basis, and sought to improve compliance awareness among employees.
MTR also conducted climate scenario analysis, identification of climate-related risks and opportunities, and assessment of
their financial impact for its portfolio and sought to enhance climate-related disclosures. In conjunction with this, MTR
expressed its support for the Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
(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.

(iii) Financing
MTR borrowed a total of ¥17,500 million for the repayment of existing borrowings that have matured. MTR issued thesixteenth and seventeenth series unsecured investment corporation bonds as outlined below to secure funds needed for theredemption of the eleventh series unsecured investment corporation bonds due in February 2022.
Name: MORI TRUST Sogo Reit, Inc. Sixteenth Series Unsecured Investment Corporation Bonds(Ranking Pari Passu among the specified Investment Corporation Bonds)
Issue amount: ¥1000 million
Interest rate: 0.110% per annum
Date of issue: February 21 2022
Redemption date: February 28 2025
Collateral: Unsecured and unguaranteed
Name: MORI TRUST Sogo Reit, Inc. Seventeenth Series Unsecured Investment Corporation Bonds(Ranking Pari Passu among the specified Investment Corporation Bonds)
Issue amount: ¥1,000 million
Interest rate: 0.500% per annum
Date of issue: February 21, 2022
Redemption date: February 27, 2032
Collateral: Unsecured and unguaranteed
As a result, interest-bearing debt as of March 31, 2022 amounted to ¥154,000 million, of which long-term loans payableamounted to ¥135,000 million (including long-term loans payable of ¥25,500 million due for repayment within 1 year) andinvestment corporation bonds amounted to ¥13,000 million (including investment corporation bonds of ¥4,000 million due forredemption within 1 year). The ratio of interest-bearing debt to total assets as of March 31, 2022 was 47.4% (compared with
47.2% as of September 30, 2021).
As of March 31, 2022, the Investment Corporation has obtained a long-term issuer rating of AA (rating outlook: stable) fromJapan Credit Rating Agency, Ltd. (JCR)(iv) Overview of financial results and distributions
As a result of the abovementioned operations, operating revenue came to ¥8,528 million, operating income came to ¥5,042
million, ordinary income after the deduction of loan-related interest expenses from operating income came to ¥4,685 million,
and profit came to ¥4,537 million.
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 a partial reversal (¥134 million) of thereserve for reduction entry accumulated under the Special Provisions for Taxation in the Case of Advanced Acquisition of Land,
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.

4etc. in 2009 and 2010 in Article 66-2 of the Act on Special Measures Concerning Taxation and the deduction of the reserve for
reduction entry of ¥454 million 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 distribution per investment unit
amounted to ¥3,195.

(b) Outlook for the next fiscal period(i) Outlook for overall performance
The Japanese economy is expected to see a gradual recovery in consumer spending as the vaccine rollout and the government's
economic measures lessen the impact of COVID-19. However, given the increase in geopolitical risk, including the Ukraine
crisis, the depreciation of the yen, and rising prices for oil and other goods, the situation in Japan and abroad requires attention.
In the real estate investment market, investor confidence in Japan and abroad will remain high and information on the sale ofhigh-quality properties available for investment will be limited. As a result, transaction prices are expected to hover at a highlevel for the time being and expected cap rates will likely remain low.
In the real estate leasing market, a recovery in demand for office buildings, driven by moves to relocate to a larger space oropen a new office, is expected. However, the impact of increased new supply from FY2023 needs to be monitored.
In the markets for retail facilities and hotels, conditions are likely to remain challenging in the short term owing to the delayed
recovery of inbound demand. However, given that consumer spending in Japan is expected to improve, a recovery in businessperformance is also anticipated.
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 the Investment Corporation, the Investment Corporation
will maintain the weight of fixed-term building lease agreements with fixed rent over the medium and long term at a certain
percentage, to ensure that a drop in the level of market rents does not immediately have a major impact on the revenue of thereal estate owned by the Investment Corporation.
However, when entering into a new lease agreement, the Investment Corporation will examine the agreement term and thefixing of rents in the medium 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 Investment Corporation will operate and manage real estate in accordance with the following policy tomaintain and increase market competitiveness and to enable stable operation.
1. The Investment Corporation 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
based on an assessment of the features of each portfolio real estate, and endeavor to maintain high occupancy rates of thereal estate it owns. When real estate becomes vacant or is due to become vacant, the Investment Corporation will conductwell-aimed market research and then focus on leasing in cooperation with the Mori Trust Group, real estate agents andproperty management companies.
2. When entering into a new lease agreement, the Investment Corporation 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. In the case of portfolio real estate that can be expected to achieve stable internal
growth, the Investment Corporation will also incorporate agreements designed to tap into growth in income gain.
3.
Based on consideration of the aging and age of portfolio real estate, the Investment Corporation will endeavor to maintainstable occupancy rates by renovating aged facilities, etc. and actively making investments to increase market
competitiveness so that portfolio real estate compares favorably with competing properties.

(iii)

Investment strategy for new investment real estate

The Investment Corporation’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
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5

information, to expand the size of its assets under management (AUM) and acquire new real estate.
1. The Investment Corporation will invest primarily in real estate in central Tokyo regardless of its use, aiming for aninvestment portfolio in which central Tokyo properties account for 60 -80% of total AUM. It will also invest in certain
investment real estate located in other regions, such as office buildings located in areas with a high concentration of officebuildings and convenient transport links and high-quality commercial facilities that are highly competitive within theirtrade area.
2. The Investment Corporation will invest in investment real estate intended for “office building” use, aiming to build aportfolio in which office buildings account for 70-90% of total AUM. Besides office buildings, it will also invest incommercial facilities (10-30% of total AUM) and “Others” (0-10% of total AUM). However, for the present time, it will
invest only in residential properties and hotels in the “others” category.
３．The Investment Corporation’s basic strategy is to conclude medium-to-long-term lease agreements with tenants. Also, where
possible, it will endeavor to conclude fixed-term building lease agreements or other agreements that take fixing the rent or
lengthening the agreement period into consideration. The agreement for the lease of investment real estate may take theform of leasing the investment real estate directly to the tenant or the form of using a master lessee as an intermediary
between the Investment Corporation and tenants and leasing to the master lessee. The Investment Corporation will actively
examine a master lease agreement in cases where, upon consideration of factors such as the size and use of the real estate
and the characteristics of tenants, this arrangement is deemed to have certain benefits.

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6

(iv) Financial strategy, etc.
The Investment Corporation will examine points such as the amounts of loans, borrowing periods and the fixation of interest
rates, and work to arrive at the optimum financing balance, bearing in mind the need to curb the negative effects of changes infinancing conditions and reduce financing costs. The Investment Corporation will also consider issuing investment corporation
bonds.
In addition, MTR will consider diversifying lenders and issuing investment corporation bonds while focusing on its
conventional, long-term relationships with financial institutions.

(v) Significant events after balance sheet date
Not applicable(vi) Forecasts of performance
The Investment Corporation forecasts that performance in the next fiscal period the fiscal period ending September 30,
2022(from April 1, 2022 to September 30, 2022) will be as follows. Assuming that the assumptions of forecasts of performanceare correct, performance forecasts for the fiscal period ending March 31, 2023(from October 1, 2022 to March 31, 2023) are as
follows.
Please refer to “Assumptions for Forecasts of Performance for the fiscal period ending September 30, 2022(from April 1,
2022 to September 30, 2022) and the fiscal period ending March 31, 2023(from October 1, 2022 to March 31, 2023)” below forfurther details of the assumptions of forecasts of performance.
the fiscal period ending
September 30, 2022

the fiscal period ending
March 31, 2023

Operating revenues¥6,845 million¥6,876 million

Operating income¥3,324 million¥3,383 million

Ordinary income¥2,936 million¥2,974 million

Profit¥3,257 million¥3,200 million¥3,000¥2,800Distribution per unit

(Note1 ) 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, profit, and distribution per unit, and such may differ according tocircumstances occurring in the future.
(Note2 ) The distributions for the fiscal period ending September 30, 2022, and fiscal period ending March 31 2023 are based on theassumption of internal reserves reduction.

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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Assumptions for Forecasts of Performance for the Fiscal Period ending September 30, 2022 (from April 1, 2022
to September 30, 2022) and the Fiscal Period ending March 31, 2023(from October 1, 2022 to March 31, 2023)
Item

Assumptions

・MTR assumes that the 16 properties held as of March 31, 2022.
Portfolio properties
・The actual portfolio may change due to the acquisition or disposal/transfer of other properties.
Number of investment ・We assume 1,320,000 investment units issued and outstanding as of March 31, 2022. The number ofunits issued andinvestment issued and outstanding may change, however, for reasons such as the issuance of investment
units during the fiscal period.
outstanding・Interest-bearing debt amounted to ¥154,000 million as of March 31, 2022.
・MTR assumes that it will appropriate funds raised through refinancing and the issuance of investment
Interest-bearing debt corporation bonds to repay loans of ¥20,000 million that will fall due during the fiscal period ending
September 30, 2022. MTR assumes that it will appropriate funds raised through refinancing and theand refinancing
issuance of investment corporation bonds to repay loans of ¥11,500 million that will fall due during the
fiscal period ending March 31, 2023, and redeem investment corporation bonds of ¥4,000 million.
・Concerning leasing business revenues, we take factors such as tenant movements into consideration.
・We assume that there will be no delayed payment or non-payment by tenants.
・MTR assumes rents for the offices and stores in Tokyo Shiodome Building for the fiscal period ending
Operating revenue
September 30 2022, and the fiscal period ending March 31, 2023, to be based on sublease agreements
already signed at present.
・MTR assumes that Shinbashi MTR Building will be vacant during the fiscal period ending September 30
2022, and the fiscal period ending March 31 2023.
・Concerning fixed property tax, city planning tax, depreciated asset tax, etc. for owned real estate intrust, the portion of the tax amount to be levied that corresponds to the relevant calculation period isrecorded 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 ofacquisition of the real estate, etc. is included in the cost of acquisition of the relevant real estate and isthus 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 to
the fiscal period, and (iii) certain types of repair and maintenance expenses are not required in every
Operating expenses
fiscal period.
・We estimate property and other taxes of ¥880 million for the fiscal period ending September 30 2022 and¥878 million for the fiscal period ending March 31 2023 fiscal period.
・We estimate property management fees of ¥756 million for the fiscal period ending September 30 2022
and ¥728 million for the fiscal period ending March 31 2023.
・We estimate depreciation of ¥1,116 million for the fiscal period ending September 30 2022 and ¥1,087
million for the fiscal period ending March 31 2023.
・We estimate operations expenses other than leasing business expenses (asset management fees, fees forthe custody of assets, administrative service fees, etc.) of ¥416 million for the fiscal period ending
September 30 2022 and ¥417 million for the fiscal period ending March 31 2023.
estimate non-operating expenses (loan interest, investment corporation bond interest, etc.) of ¥388
・We
Non-operating
million for the fiscal period ending September 30 2022 and ¥408 million for the fiscal period ending
expenses
March 31 2023.
・Distributions (distribution per unit) are calculated based on the cash distribution policy set out in theInvestment Corporation’s Articles of Incorporation.
・On calculating the distribution for the fiscal period ending September 30 2022, MTR assumes reversal ofa portion worth ¥1,024 million (reserve for reduction entry of ¥702 million and relevant deferred tax
liabilities of ¥322 million) of the internal reserves totaling ¥2,553 million (the total of reserve for
reduction entry of ¥1,750 million and relevant deferred tax liabilities of ¥803 million) to be accumulated
until the fiscal period ended March 31, 2022, under the application of the Special Provisions for Taxationin the Case of Advanced Acquisition of Land, etc. in 2009 and 2010 and Special Provisions for Taxation
Distributions
in Cases of Repurchase of Specified Assets.
・On calculating the distribution for the fiscal period ending March 31 2023, MTR assumes reversal of a
portion worth ¥722 million (reserve for reduction entry of ¥495 million and relevant deferred tax
liabilities of ¥227 million) of the internal reserves totaling ¥1,528 million (the total of reserve for
reduction entry of ¥1,047 million and relevant deferred tax liabilities of ¥480 million) to be accumulated
until the fiscal period ending September 30 2022, under the application of the Special Provisions for
Taxation in the Case of Advanced Acquisition of Land, etc. in 2009 and 2010 and Special Provisions forDisclaimer: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

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 ofearnings per unit).
of 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 September 30, 2021
AssetsCurrent assets
Cash and deposits

18,883,962
2,979,150
45,140395
54,831

Cash and deposits in trust
Operating accounts receivable
Accounts receivable - otherPrepaid expenses
Other

As of March 31, 2022

14,680,828
3,197,268
41,862
1,334
47,914

9,290

9,296

21,972,770

17,978,504

37,804,123(18,705,404)

34,980,281(17,770,794)

Buildings, net

19,098,719

17,209,486

Structures
Accumulated depreciation

507,685(472,793)

443,976(412,958)

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation

Structures, net

34,89231,017

153,655(122,606)

153,655(125,012)

Machinery and equipment, net

31,04828,642Tools, furniture and fixtures
Accumulated depreciation

109,079(82,993)

109,138(85,331)

Machinery and equipment
Accumulated depreciation

Tools, furniture and fixtures, net

26,08623,807Land
Buildings in trust
Accumulated depreciation

125,628,932
31,121,100(12,126,841)

114,585,335
33,902,566(12,761,396)

Buildings in trust, net

18,994,259

21,141,169

Structures in trust
Accumulated depreciation

156,605

187,292(107,008)(111,516)

Structures in trust, net

49,59775,775

Machinery and equipment in trust
Accumulated depreciation

34,117(4,195)61,690(6,234)

Machinery and equipment in trust, net

29,92255,456

Tools, furniture and fixtures in trust
Accumulated depreciation

98,318(61,410)

102,316(65,339)

Tools, furniture and fixtures in trust, net

36,90736,976

Land in trust

142,307,259

153,797,970

Total property, plant and equipment

306,237,624

306,985,638

Intangible assets
Other

240

240

Total intangible assets

240

240

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 September 30, 2021
Investments and other assets
Guarantee deposits
Long-term prepaid expenses

As of March 31, 2022

Other

10,00016,0043,208

10,00038,9682,815

Total investments and other assets

29,212

51,783306,267,077

307,037,662

Total non-current assets
Deferred assets
Investment corporation bond issuance costs

48,77755,401

Total deferred assets

48,77755,401

328,288,624

325,071,568

340,740
6,000,000

242,061
6,000,000

Advances received
Deposits received

3,000,000
31,500,000
95,457518,246
8,289
606
9,626
999,415322

4,000,000
25,500,000
110,421429,156
7,185
879
108,676
913,270916

Total current liabilities

42,472,704

37,312,567

Deferred tax liabilities

11,000,000
103,500,000
9,618,022
934,875
656,564

9,000,000
109,500,000
7,565,023
932,717803,422

Total non-current liabilities

125,709,462

127,801,163

Total liabilities

168,182,166

165,113,730

153,990,040

153,990,040

1,074,447

1,430,418

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

Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust

Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

1,074,447

1,430,418

5,041,970

4,537,379

6,116,418

5,967,798

160,106,458

159,957,838

160,106,458

159,957,838

328,288,624

325,071,568

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

(2) Statement of income
For the six-month period ended September 30, 2021 and March 31, 2022
Thousands of yen
For the period
from October 1, 2021
to March 31, 2022

For the period
from April 1, 2021
to September 30, 2021
Operating revenue
Lease business revenue
Other lease business revenue

7,485,180

6,739,063

Gain on sale of investment property

283,283
1,433,905

337,252
1,452,077

Total operating revenue

9,202,368

8,528,392

Other operating expenses

3,152,474
335,797
12,89358,3583,600
75,764

3,025,005
329,091
13,10245,8693,600
69,376

Total operating expenses

3,638,888

3,486,044

5,563,480

5,042,348

Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors' compensations

Operating income
Non-operating income
Interest income
Reversal of dividends payable
Interest on 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

107

104

782
−

753
110

890

969

325,876
22,802

325,041
22,833

9,146

8,933

1,071

1,374

358,895

358,184

Ordinary income

5,205,474

4,685,132

Profit before income taxes

5,205,474

4,685,132

Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings at beginning of period
Unappropriated retained earnings

623

895

163,408

146,858

164,031

147,753

5,041,443

4,537,379

527−

5,041,970

4,537,379

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

(3) Statement of changes in Net Assets
For the six-month period from April 1, 2021 to September 30, 2021
Thousands of yen
Unitholders' equity
Surplus
Unitholders'
capitalBalance at beginning ofcurrent period
Changes of items during
periodUnappropriatedReserve for
Total voluntary retained earnings
reduction entry retained earnings (undisposed loss)
1,074,447

1,074,447

Total surplus

Total unitholders' Total net assets
equity5,115,527

6,189,975

160,180,015

160,180,015

Dividends of surplus(5,115,000)(5,115,000)(5,115,000)(5,115,000)

Profit

5,041,443

5,041,443

5,041,443

5,041,443

Total changes of items
during period
Balance at end of current
period153,990,040

Voluntary retained earnings

−

−

−

(73,556)(73,556)(73,556)(73,556)

153,990,040

1,074,447

1,074,447

5,041,970

6,116,418

160,106,458

160,106,458

For the six-month period from October 1, 2021 to March 31, 2022
Thousands of yen
Unitholders' equity
Surplus
Unitholders'
capitalBalance at beginning ofcurrent period
Changes of items during
periodProvision of reserve for
reduction entry
Reversal of reserve for
reduction entry

UnappropriatedReserve for
Total voluntary retained earnings
reduction entry retained earnings (undisposed loss)

Total surplus

Total unitholders' Total net assets
equity1,074,447

1,074,447

5,041,970

6,116,418

160,106,458

160,106,458

490,085

490,085(490,085)−−−(134,114)(134,114)

134,114−−−

Dividends of surplus(4,686,000)(4,686,000)(4,686,000)(4,686,000)

Profit

4,537,379

4,537,379

4,537,379

4,537,379

Total changes of items
during period
Balance at end of current
period153,990,040

Voluntary retained earnings−

355,970

355,970(504,591)(148,620)(148,620)(148,620)

153,990,040

1,430,418

1,430,418

4,537,379

5,967,798

159,957,838

159,957,838

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

(4) Statement of Cash Distributions
For the six-month period ended September 30, 2021 and March 31, 2022
Unit: yen

I. Unappropriated retained earnings
II. Reversal of voluntary retained
earnings
Reversal of reserve for reduction entry
Ⅲ. Distribution amount(Distribution amount per unit)
IV. Voluntary retained earnings
Provision of reserve for reduction
entry

The Fiscal Period ended
September 30, 2021
(April 1, 2021 to September 30, 2021)

The Fiscal Period ended
March 31, 2022
(October 1, 2021 to March 31, 2022)

5,041,970,716

4,537,379,582

134,114,736
4,686,000,000(3,550)134,114,736
4,217,400,000(3,195)490,085,452

454,094,318

Ⅴ. Retained earnings carried forward－－

Calculation method of distribution
amountIn 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 adding the reversal of thereserve for reduction entry under Article66-2 of the Act on Special Measures
Concerning Taxation and deducting
provision of the reserve for reduction
entry under Article 66-7 of the Act on
Special Measures Concerning Taxation,
the amount of which is 4,686,000,000
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.

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 adding the reversal of thereserve for reduction entry under Article66-2 of the Act on Special Measures
Concerning Taxation and deducting
provision of the reserve for reduction
entry under Article 65-7 of the Act on
Special Measures Concerning Taxation,
the amount of which is 4,217,400,000
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.

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

(5) Statement of cash flows
For the six-month period ended September 30, 2021 and March 31, 2022
Thousands of yen
For the period
from October 1, 2021
to March 31, 2022

For the period
from April 1, 2021
to September 30, 2021
Cash flows from operating activities
Profit before income taxes

5,205,474
1,113,968

4,685,132
1,125,735

9,146

8,933

(107)
348,678

Increase (Decrease) in accrued consumption taxes
Increase (Decrease) in advances received

ሺ1,727)
69,932(187,887)(10,782)(104)
347,875(522)(80,181)
99,050(86,145)

Decrease due to sale of investment property
Other, net

12,538,270
53,59812,520,098(106,676)

Subtotal

19,138,564

18,513,195

Interest income received
Interest expenses paid
Income taxes paid

107
(353,821)
(972)

104
(346,685)(622)

Net cash provided by operating activities

18,783,877

18,165,991(263,209)(14,180,295)(195,043)
250,001(34,126)(14,344,757)(2,385,217)
326,611(55,395)(16,369)

57,831

5,120

393

393

(14,385,718)(16,448,345)

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

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits intrust
Proceeds from tenant leasehold and security deposits in
trust
Other
Net cash used in investing activities
Cash flows from financing activities(4,000,000)-

Payments for investment corporation bond issuance costs
Dividends paid

14,000,000(12,000,000)(5,114,632)

14,500,000(14,500,000)
2,000,000(3,000,000)(15,558)(4,687,104)

Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds

Net cash used in financing activities(7,114,632)(5,072,662)

Net increase (decrease) in cash and cash equivalents(2,716,473)(3,985,015)

Cash and cash equivalents at beginning of period

24,579,586

21,863,112

Cash and cash equivalents at end of period

21,863,112

17,878,096

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

5. Reference Information(1) Composition of assets
As of September 30, 2021
type

Real
property

RegionTotal of net
book value (Note 1)(Millions of yen)

As of March 31, 2022

Ratio tototal assets(Note 2) (%)

Total of net
book value (Note 1)(Millions of yen)

Ratio tototal assets(Note 2) (%)

Central Tokyo (Note 3)

121,13436.9

108,338

33.3

Other (Note 4)

23,685

7.2

23,540

7.2

Central Tokyo (Note 3)

126,92238.7

140,752

43.3

Other (Note 4)

34,49510.5

34,355

10.6

Subtotal

306,23793.3

306,985

94.4

22,051

6.7

18,085

5.6

328,288100.0

325,071

100.0

Trust

Other assets
Total(Note 1) “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 2) “Ratio to total assets” is rounded to the first decimal place.
(Note 3) “Central Tokyo” referrers to Chiyoda, Chuo, Minato, Shinagawa, Shibuya and Shinjuku Wards.
(Note 4) “Other” refers to greater Tokyo (Kanagawa, Chiba and Saitama Prefectures, and the Tokyo Metropolitan Area excluding central Tokyo) and other major
regional cities.

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.

16

(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 March 31, 2022 was 16, 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 March 31, 2022 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
Property nameArea
(Note 1)

Location（Parcel number）(Note 1)

Land（㎡）

Building（㎡）Structure(Note 2)
/number offloors(Note 1)

Ownership form
Land Building

Tokyo Shiodome Building(Note 3)

1-12-1 Higashishinbashi, Minato-ku, Tokyo

17,847.73

191,394.06

ON Building (Note 4) (Note 5)5-746-1 Kitashinagawa,Tokyo, etc.

10,850.67

32,812.27

S・SRC
B2/21F

Owned Owned

Kioicho Building (Note 5) (Note 6)

3-3 Kioicho, Chiyoda-ku, Tokyo, etc.

9,291.93

63,535.55

SRC・S
B4/26F

Owned Owned

Kamiyacho Trust Tower (Note 5)(Note 7)

4-24-6 Toranomon, Minato-ku, Tokyo, etc.

16,131.84

196,037.12

S・RC
B4/37F

Owned Owned

Osaki MT Building (Note 4)5-689-2 Kitashinagawa,Tokyo, etc.

13,852.74

26,980.68

S・SRC
B3/14F

Owned Owned

Midosuji MTR Building (Note 5)

3-43-5 Awajimachi, Chuo-ku, Osaka City

1,560.98

15,129.16

S・SRC
B2/13F

Owned Owned

Hiroo MTR Building (Note 5)

2-91-1, Ebisu, Shibuya-ku, Tokyo

1,671.79

6,709.80

SRC
B1/7F

Owned Owned

Tenjin Prime (Note 5)

2-138 Tenjin, Chuo-ku, Fukuoka City, etc.

1,110.73

7,722.04

Shin-Yokohama TECH Building(Note 8)3-9-1
Shinyokohama,
Yokohama City, etc.

2,671.11

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

SHIBUYA FLAG (Note 5)

81-11 Udagawacho, Shibuya-ku, Tokyo,
etc.

1,026.44

7,766.49

Shinbashi Ekimae MTR Building

2-28-2 Shinbashi, Minato-ku, Tokyo, etc.

1,069.88

7,820.45

Ito-Yokado Shonandai

6-2-1 Ishikawa, Fujisawa City, Kanagawa
Prefecture

35,209.93

53,393.66

S
5F

Owned Owned

Kohnan Sagamihara-Nishihashimoto

5-4-4
Nishihashimoto,
Sagamihara City

19,878.57

40,283.77

S
5F

Owned Owned

Frespo Inage (Note 5)731-17 Naganumaharacho, Inage-ku, Chiba
City

39,556.71

－

－

Owned

Hotel Okura Kobe (Note 5)48-1 Hatobacho, Chuo-ku, Kobe City, etc.

30,944.44

72,246.86

SRC・S
B2/35F

Owned Owned

Park Lane Plaza

2-30-6 Jingumae, Shibuya-ku, Tokyo

1,702.95

5,246.78

RC
B1/7F

Owned Owned

Shinagawa-ku,

Shinagawa-ku,

Kohoku-ku,

Midori-ku,

SRC・RC・S
Owned Owned
B4/37F

S・RC
Owned Owned
B1/12F
A-Wing：SRC
B1/9F
B-Wing：S・ Owned Owned
SRC
B1/16F
S・SRC
Owned Owned
B2/9F
S・SRC・RC
Owned Owned
B2/8F

－

(Note 1) “Location (Parcel number)”, “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 the 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, the Tokyo Shiodome Building is aco-owned building, 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 the 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 the trust fiduciaries is owned by MTR as the site of the Osaki MT Building. As a result, the 3 sections of land in question (total area of 10,850.67m2)
are stated separately as part of the land area of the Osaki MT Building and the land area of the 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 land in 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, the 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

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

of 907,880/1,000,000) by the total floor space.
(Note 5) Of the 16 properties listed above, the ON Building, the Kioicho Building, Kamiyacho Trust Tower, the Midosuji MTR Building, Hiroo MTR Building,Tenjin Prime, SHIBUYA FLAG, Frespo Inage and Hotel Okura Kobe 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 the 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 24,598.85 m2.
(Note 7) 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 7,595.44 m2.
(Note 8) The Shin-Yokohama TECH Building is real estate that is comprised of two buildings, A-Wing and B-Wing, and the site for the buildings.

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

Categories, prices and investment ratios of the Portfolio

RegionUse(Note 1)

Officebuilding

CentralTokyo

RetailfacilityBook
DirectDiscounted cash
End-ofvalue at
reduction
flow
periodAcquisition
the endmethod(DCF) method
appraisal
Price
of
value
Property name(Note 2)
fiscal(Note 3)
(Millions of
Discount Terminal
periodCap rateyen)(Millions ofrate
cap rate(Millionsyen)of yen)82,539
Tokyo Shiodome Building
75,045
81,400
3.3％
3.2％
3.3％
(Note 5)

Other

25.4%

Japan Real Estate
Institute

12.3%

38,89835,100

3.4％

3.1％

3.5％

Kioicho Building

34,30033,08038,000

3.2％

3.0％

3.4％

Kamiyacho Trust Tower

27,960(Note 6)28,01831,100

2.6％

2.5％

Osaki MT Building

14,386(Note 7)

12,92417,000

3.3％

3.0％

3.4％

Japan Real Estate
Institute

4.4%

Hiroo MTR Building

8,100

8,338

8,440

3.6％

3.4％

3.8％

Daiwa Real EstateAppraisal Co.,
Ltd.

2.5%

Subtotal

207,185

196,305

211,040SHIBUYA FLAG

32,04032,41640,700

3.2％

3.0％

3.4％

Japan Real Estate
Institute

9.9%

18,00017,25721,800

3.6％

3.4％

3.8％

Chuo-Nittochi
Solutions Co., Ltd.

5.5%

50,04049,67462,500－15.4%

Chuo-Nittochi
3.0％
Solutions Co., Ltd.

1.0%

Shinbashi
Building

EkimaeMTR

Daiwa Real EstateAppraisal Co.,Ltd.
Daiwa Real Estate
2.7％
Appraisal Co.,
Ltd.

3.3％

4.0％

10.6%
8.6%

63.8%

－

Park Lane Plaza

3,200

3,110

4,210

Subtotal

3,200

3,110

4,210

－

1.0%

260,425

249,090277,750

－

80.2%
3.1%

Midosuji MTR Building

10,170

9,907

10,500

3.6％

3.4％

Daiwa Real Estate
3.8％
Appraisal Co.,Ltd.

Tenjin Prime

7,050(Note 8)

6,690

9,680

3.7％

3.5％

3.8％

Japan Real Estate
Institute

2.2%

Shin-Yokohama
TECH Building

6,900

6,719

8,170

4.6％

4.4％

4.9％

Chuo-Nittochi
Solutions Co., Ltd.

2.1%

Subtotal

24,12023,31728,350

Ito-Yokado Shonandai

11,6009,725

11,700

5.3％

5.0％

5.5％

Japan Real Estate
Institute

3.6%

Kohnan SagamiharaNishihashimoto

7,460

7,095

8,500

5.2％

4.9％

5.4％

Japan Real Estate
Institute

2.3%

Frespo Inage

2,100(Note 9)

2,193

2,610

－
(Note 10)

7.9%

－ Japan Real Estate(Note 11)
Institute

0.6%

Subtotal

21,16019,013

22,810Hotel Okura Kobe

19,00015,564

16,900Subtotal

19,00015,564

16,900－5.9%

Subtotal

64,28057,89568,060

－

19.8%

Total

324,705

306,985

345,810－100.0%

7.4%

－

Other
RetailfacilityRich Appraisal
Institute K.K.

39,900Subtotal

Officebuilding

Investment
ratio(Note 4)

ON Building

Subtotal
Other

Appraiser

―
4.9％

4.7％

5.0％

6.5%
Rich Appraisal
Institute K.K.

5.9%

(Note 1) The attribution of properties that have more than one use is judged based on their main use. The Tokyo Shiodome Building, the Kamiyacho Trust Tower
and the Kioicho Building are categorized as “Office building”, which is the main use of the buildings, and SHIBUYA FLAG is categorized as “Retailfacility”, which is the main use of the building. The same applies thereafter.

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.

19

(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. 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 March 31, 2022)
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 March 31, 2022,
out of ¥110,000 million, 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).
(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) 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 9) 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 10) The direct capitalization method is not adopted for Frespo Inage.
(Note 11) 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.

20

(ii) Details of the situation of leasing of the Portfolio
The situation of leasing of the Portfolio held by MTR as of March 31, 2022 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 March 31, 2022 (six months from October 1, 2021 to March 31, 2022)
is 4 properties, Tokyo Shiodome Building, ON Building, Kioicho Building and SHIBUYA FLAG.
Situation of leasing of the Portfolio
RegionRentalrevenues(Note 1)
(Millions of yen)

Ratio tototal rental
revenues
ratio(Note 2)

Rentablearea(Note 3)(㎡)

Rent
area
(Note 4)(㎡)

878

12.4％

71,806.84

71,806.84

１(12)(Note 6)(Note 6)

20,654.60

20,654.60

1

Kioicho Building (Note 7)

982

13.9％

24,748.48

23,822.44

37(71)

Kamiyacho Trust Tower (Note 8)

533

7.5％

7,702.54

7,702.54

１(７)

Osaki MT Building (Note 9)

340

4.8％

24,495.21

24,495.21

１(13)

Hiroo MTR Building (Note 10)

177

2.5％

4,946.36

4,329.33

８(Note 6)(Note 6)

5,983.86

5,983.86

3

Shinbashi Ekimae MTR Building

308

4.4％

8,055.00

0.00

０Park Lane Plaza (Note 11)

109

1.5％

4,443.03

4,443.03

18

Midosuji MTR Building (Note 12)

318

4.5％

15,129.16

15,129.16

１(32)

Tenjin Prime (Note 10)

254

3.6％

5,990.40

5,990.40

14

Shin-Yokohama TECH Building

265

3.8％

18,238.86

10,923.95

14

Ito-Yokado Shonandai

375

5.3％

53,393.66

53,393.66

１(Note 6)(Note 6)40,283.77

40,283.77

1Frespo Inage

123

1.7％

39,556.71

39,556.71

１

Hotel Okura Kobe

618

8.7％

72,246.86

72,246.86

１

7,076

100.0％

417,675.34

400,762.36

103
(197)

Use

Property nameTokyo Shiodome Building(Note 5)
ON Building

Officebuilding

Central Tokyo

SHIBUYA FLAG (Note 10)

RetailFacility

Other

Officebuilding

Other
Retailfacility

Other

KohnanNishihashimoto

Total (Note 13)

Sagamihara-

Total numberoftenants(Note 1) “Rental revenues” stated are rental revenues (rent, common charges, other rental revenues, etc.) for the fiscal period ended March 31, 2022 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). The area of the Tokyo Shiodome Building stated is the area calculated by multiplying MTR’s coowned interest (375,178/1,000,000) by the total rentable area of the building (191,394.06m2). In addition, the area of the Osaki MT Building stated is thearea calculated by multiplying MTR’s co-owned interest (907,880/1,000,000) by the total rentable area of the building (26,980.68m2).
(Note 4) The “Rent area” stated is the area that includes the rentable area and the area for which lease contracts are actually concluded and the property is leased.
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 rent areaof the building (191,394.06m2). 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 rent area of the building (26,980.68m2).
(Note 5) 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 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 aDisclaimer: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

master 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 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 byeach unit owner.
(Note 9) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for the 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 10) MTR leases the land and building of Hiroo MTR Building, SHIBUYA FLAG and Tenjin Prime 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 11) 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 12) 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 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, 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 5.

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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Occupancy rate of the Portfolio
2022
RegionUse

Officebuilding

Property name

Other

Other

Retailfacility

Other

2018

2017

End ofSep.

End ofMar.

End ofSep.

End ofMar.

End ofSep.

End ofMar.

End of
Sep.

Tokyo Shiodome Building(Note 2)

100.0

100.0

100.0

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

96.3
(95.6)
100.0(99.3)
100.0(95.2)

89.7(89.7)
100.0(97.3)
100.0(85.8)

90.8(89.5)

99.9(98.7)

99.9(98.7)

99.9(98.5)

99.9(99.9)

99.9(99.9)

99.9(98.7)

99.9(98.1)

－

－

－

－

－

－

－

－

100.0
(85.0)

100.0(99.1)

100.0(97.8)

100.0(91.8)

100.0(91.8)

100.0(100.0)100.0(92.7)

100.0(92.7)

87.5

87.5

100.0

100.0

100.0

100.0

100.0

84.2

99.5

－

99.0
(82.8)

98.0(75.1)

98.7(97.1)

99.9(99.7)

99.9(99.6)

99.9(99.0)

99.9(99.3)

99.5(99.5)

99.9(99.1)

99.9(99.0)

100.0

92.2

92.2

100.0

100.0

100.0

100.0

100.0

100.0

100.0

0.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Subtotal

42.6

96.7

96.7

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Park Lane Plaza

100.0

100.0

95.9

100.0

92.9

95.9

100.0

100.0

96.8

100.0

Subtotal

100.0

100.0

95.9

100.0

92.9

95.9

100.0

100.0

96.8

100.0

94.4
(79.2)
Building 100.0(100.0)98.0(78.1)
100.0(100.0)98.5(97.0)
100.0(95.6)

99.9(99.7)
100.0(98.4)

99.8(99.5)
100.0(100.0)99.9(99.0)
100.0(100.0)99.9(99.3)
100.0(100.0)99.6(99.5)
100.0(96.4)

99.9(99.2)
100.0(100.0)99.9(99.1)
100.0(95.5)

Kioicho Building (Note 3)
Kamiyacho Trust Tower(Note 4)

SHIBUYA FLAG (Note 6)
Shinbashi
Building

EkimaeSubtotal (Note 7)

Officebuilding

2019

End ofMar.

Hiroo MTR Building(Note 6)
Subtotal(Note 7)Retailfacility2020

End ofSep.
100.0(53.5)

Osaki MT Building(Note 5)
Central
Tokyo

2021

End ofMar.
100.0(61.3)

Midosuji(Note 8)MTR

MTR

Tenjin Prime (Note 6)

100.0

100.0

100.0

100.0

100.0

100.0

100.0

89.1

100.0

100.0

Shin-Yokohama
TECH Building

59.9

100.0

100.0

100.0

100.0

100.0

98.7

98.7

95.7

92.6

Subtotal (Note 7)

81.4(78.7)

100.0(100.0)100.0(98.7)

100.0(99.5)

100.0(100.0)100.0(100.0)99.4(99.3)

97.7(96.3)

98.0(97.7)

96.6(94.7)

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

Subtotal

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

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

Hotel Okura Kobe
Subtotal

97.0
100.0
100.0
100.0
100.0
99.9
99.6
99.7
99.4
100.0
Subtotal (Note 7)(96.9) (100.0)(99.8)(99.9) (100.0) (100.0)(99.9)(99.5)(99.7)(99.2)
96.0
99.1
99.9
99.7
99.3
99.9
99.9
99.6
99.8
99.9
Total (Note 7)(90.5)(91.9)(99.9)(99.2)(98.6)(99.8)(99.7)(99.5)(99.5)(99.6)(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) 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
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 4) 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 5) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for the Osaki MT Building. The
figures in 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, SHIBUYA FLAG and Tenjin Prime 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

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

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 to Note 2.
(Note 8) 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.

24

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 March 31, 2022 from October 1, 2021 to March 31, 2022, of MORI TRUST Sogo 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, May 23, 2022, and MTR does notundertake 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.

25