Fiscal Period Ended March 2022 (40th Fiscal Period)

Information Package(Securities Code: 8961)
https://www.mt-reit.jp/en/(Asset Management Company)

MEMO

Contents
1. Overview of the Settlement and Forecasts

3

5. Reference

32

Fiscal Period Ended March 2022 Settlement Highlights

4

Balance Sheets

33

Overview of the Settlement for the Fiscal Period Ended March 2022

5

Statements of Income and Retained Earnings

34

Factors for Change in Distributions per Unit
(the fiscal period ended March 2022)

6

Statement of Cash Distributions / Statements of Cash Flows

35

Forecasts for the Fiscal Period Ending September 2022

7

Changes in Indicators

36

Factors for Change in Distributions per Unit
(the fiscal period ending September 2022)

8

Changes in Asset Size, LTV and Distribution Per Unit

37

Property Portfolio List as of the End of the Fiscal Period

Forecasts for the Fiscal Period Ending March 2023

938

2. Operation Status

10

Appraisal Values of Portfolio Properties at the Fiscal Period-End

39

Internal Growth (Recognition of Conditions and Future Policies)

11

Changes in Occupancy Rate

40

Internal Growth (Tennant trends in the current fiscal period/Situation of Rent
Revision for Six Office Buildings)

12

Overview of Occupancy Rate and Lease Contracts at the Fiscal
Period-End

41

Management situation of properties owned

13

Portfolio Summary and Breakdown of Property-Related
Revenues/Expenses

42

External Growth (Recognition of Conditions and Future Policies)

14

Interest-Bearing Liabilities

45

Financial Status (Management Results for the Fiscal Period Under Review
and Loan Repayment Schedule Diversification)

15

Investors

46

Financial Status (Status of Interest-Bearing Liabilities and Rating)

16

Changes in Unit Prices

47

3. Initiatives Related to ESG

17

Changes in Vacancy Rate and Rent per Unit in Major Cities

48

Initiatives Related to ESG

18

Asset Management Company Remuneration Methods

49

4. Characteristics of MORI TRUST Sogo Reit, Inc.

28

Notes

50

Basic Policy and Characteristics of MORI TRUST Sogo Reit, Inc.

29

Mori Trust Group31
Disclaimer / Contact Information

Disclaimer:This document is intended to provide information about the business performance and strategies of MORI TRUST Sogo Reit, Inc. (MTR). It is not intended and should not be construed as an
inducement or invitation to purchase or invest in the products or investment units of MTR. We caution readers to contact their securities company representative if intending to acquire or sell any of
MTR’s investment products or investment units, and to undertake investment decisions subject to individual determination. Statements in this document that are not historical facts are “forwardlooking statements.” While MTR takes all reasonable care in the preparation of this document, it does not guarantee the accuracy and completeness of its content. Readers are also cautioned thatthe contents of this document may be changed or deleted without prior notice.

21. Overview of the Settlement and Forecasts

3

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Fiscal Period Ended March 2022 Settlement Highlights

1. Overview of the Settlement and Forecasts

Distribution Per Unit

¥3,195（down ¥355 vs. the fiscal period ended September 2021, up ¥120 vs. forecast）

As of March 31, 2022 (change from the previous fiscal period in parentheses)

Debt

Asset
Number of property: 16 properties (–)

Asset size:¥324.7 billion (up ¥0.3 billion) (Note 1)

Balance of interest-bearing debt:(down ¥1 billion)

Average interest rate for borrowings
during fiscal period:
0.45% (up 0.00%)

47.4% (up 0.2%)

LTV:
Occupancy rate:* Sublease basis

96.0% (down 3.2%)
90.5% (down 1.4%) (Note 2)¥345.8 billion (up ¥4.4 billion)¥38.8 billion (up ¥3.7 billion) (Note 3)

Investment ratio:[by area] Tokyo metropolitan area
[by use]

Office building

80.2% (down 0.0%)
71.2% (up 0.0%)

AA (stable)

Long-term rating of issuers:/ Japan Credit Rating Agency, Ltd.

EquityAppraisal values of portfolio properties at the fiscal
period end:
Unrealized profit:¥154.0 billion

Number of units issued:

1,320,000 units (–)

NAV per unit:¥150,592 (up 1.8%)(Note 4)

Investment unit price:¥143,000/ closing price on March 31, 2022)* The notes on this page constitute an integral part of this presentation. See P.50~P51

4

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Overview of the Settlement for the Fiscal Period Ended March 2022

・ The gain on sale of real estate was at the same level as in the previous period (a portion of the gainon sale is reserved internally).
・ Operating revenues exceeded the forecast by 113 million yen, chiefly due to late surrender fees at
Shinbashi Ekimae MTR Building.
・ Operating income was 168 million yen more than forecast as brokerage fees and repair expenses
were lower than forecast, among other factors.

Distribution Per Unit
¥355 from the previous fiscal¥3,195 (down
period, up ¥120 vs. forecast)(Unit: Million yen)
Period ended Period ended
Period ended
SeptemberMarch 2022
March 2022
2021
forecast
actualactual(A)(B)(C)
Rental revenues

(C-A)

(C-B)

<Rental revenues>
113
92
20
- 55
- 50
-0
- 48
-1
-4

(d)=(a)-(b)

4,615

3,908

4,051

- 564

143

(d)+(c)

5,729

5,035

5,177

- 552

141

5,563
0
358
5,205
5,205
0
163
5,041

4,873
0
362
4,511
4,511
1
142
4,368

5,042
0
358
4,685
4,685
0
146
4,537

- 521
0
-0
- 520
- 520
0
- 16
- 504

168
0
-4
173
173
-0
4
168

(a)

(b)

Overhead expenses(c)Selling, general and administrative expenses
Profits and losses from realestate rental business
Earnings before depreciation
and amortization (NOI)

Operating revenues

- 673
- 692
18
- 152
- 127
- 86
- 53
11
- 25

Property and other taxes
Depreciation

Vs. forecast

8,528
7,076
1,452
3,486
3,025
872
1,027
1,125
461

Operating expenses
Property-related expenses

Vs. previous fiscal period

8,415
6,983
1,431
3,541
3,075
872
1,076
1,127
465

Gain on sale of real estate

Operating income
Non-operating revenues
Non-operating expenses
Ordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Profit
Net increase/decrease of reserve for reduction
entry
Total distribution
Distribution per unit (yen)Total number of outstanding investment units

355

309

319

- 35

10

4,686
3,550
1,320,000

4,059
3,075
1,320,000

4,217
3,195
1,320,000

- 468
- 355
－

158
120
－

■ Balance of internal reserves
Period ended
Sep. 2021(Actual)（Unit: Million yen）
Period ended
Mar.2022
Vs. previous(Actual)fiscal period
(*)

2,086

2,553

*Income taxes deferred + net increase/decrease of reserve for reduction entry

466▮ Main factors in change

Vs. previous
fiscal period

9,202
7,768
1,433
3,638
3,152
958
1,080
1,113
486

Operating revenues

1. Overview of the Settlement and Forecasts(Unit: Million yen)

● Impact of property replacement● Late surrender fees at Shinbashi Ekimae MTR
Building (“Shinbashi Bldg.”)● Impact of tenant occupation and vacation at the Tokyo Shiodome
Building (“Shiodome Bldg.”)● Decrease in vacation at Shinbashi Bldg.
● Impact of occupation and vacation on other properties, etc.
● Absence of contract cancellation fees in the previous period

205
78
-657
-229
-42
-31

Operating expenses＜Property-related expenses＞● Decrease in fixed asset taxes due to sale of part of Shiodome
Bldg.
● Increase in utilities expenses due in part to an increase in energy
adjustments● Decrease in repair expenses● Decrease in property management fees due to the replacementof properties＜Selling, general and administrative expenses＞● Absence of expenses associated with the Investors' Meeting

-84
25
-53
-13
-13

Vs. forecast
Operating revenues＜Rental revenues＞● Late surrender fees at Shinbashi Bldg.
● Difference of assumptions concerning the vacation of residential
properties

78
14

Operating expenses＜Property-related expenses＞● Brokerage fees below forecast● Repair expenses fell below forecast

-29
-16

5

Factors for Change in Distributions per Unit

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package(the fiscal period ended March 2022)

1. Overview of the Settlement and Forecasts(Unit: Yen)

Temporary factors relating to the sale of Shiodome Bldg.
Gain on transfer 1,086
Management fee -16
Transfer to internal reserves -393

3,550

1,100

Late surrender fees at
Shinbashi Bldg.

-17

2,891

229

Impact ofproperty
replacement(income fromrents, fixed
asset taxes,
property
management
fees)

Distribution
excluding the
temporaryfactors

Absence ofcontract
cancellation
fees in theprevious period-498
Impact mainlyof tenantoccupation and -173
vacation at
Shiodome Bldg.
Decrease invacation at
Shinbashi
Bldg.

-16
Increase in
consumption tax
not eligible fordeduction (fall intaxable sales due
to sale of land)

59
659

Transfer to internal reserves(part of gain on sale of
Shiodome Bldg.)

Increase in asset
management fees

consumption tax not eligible for deduction -18

- 32

-24

Impact ofoccupation andvacation on
otherproperties, etc.

Decrease inrepair expenses

Absence ofexpenses
associated with
the Investors'
Meeting

40

10

-16
Fluctuations
in utilities
revenues-8
Increase indepreciation
andamortization- ¥355353

3,195+ ¥120

3,075
714
3

Other

706
Gain on sale ofpart of Shiodome
Bldg.

2,481

Appropriated from gain onsale of Shiodome Bldg.

2,369

Related to property
replacement(temporary factor)

Appropriated from gain onsale of Shiodome Bldg.

Period ended

Period ended

Period ended

September 2021

March 2022

March 2022

ActualActualForecast
Announced

Current
fiscal period

November 2021 6

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Forecasts for the Fiscal Period Ending September 2022

・The operating revenues forecast was revised upward due in part to progress in leasing and contract
cancellation fees.
・ The profit forecast was revised upward as a result of revisions to property taxes, brokerage fees,
repair expenses, property management fees, etc.
・The previous forecast for distributions per share, 3,000 yen, remains unchanged (the use of internal
reserves is expected).

Forecast Distribution Per Unit

¥3,000(down ¥195 from the previous fiscal
period, ± ¥0 vs. previous forecast)(Unit: Million yen)
Period ended
Previous
New forecast
March 2022 forecast for the for the fiscal
actualfiscal period
period ending
endingSeptember
September
2022
2022
(A)
(B)
(C)
Rental revenues(d)=(a)-(b)

4,051

3,685

3,741

- 309

56

(d)+(c)

5,177

4,806

4,858

- 318

51

5,042
0
358
4,685
4,685
0
146
4,537

3,270
0
379
2,891
2,891
1
- 336
3,226

3,324
0
388
2,936
2,936
1
- 322
3,257

- 1,717-030- 1,749- 1,7490- 469- 1,279

54
－
9
44
44
－
14
30

319

- 733

- 702

- 1,022

30

4,217
3,195
1,320,000

3,960
3,000
1,320,000

3,960
3,000
1,320,000

- 257
- 195
－

－
－
－

(b)

Overhead expenses(c)Selling, general and administrative expenses

Operating income
Non-operating revenues
Non-operating expenses
Ordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Profit
Net increase/decrease of reserve for reduction
entry
Total distribution
Distribution per unit (yen)Total number of outstanding investment units■ Balance of internal reserves
Periodended
Mar.2022(Actual)PeriodendingSep. 2022(Previous
forecast)

PeriodendingSep. 2022(New
forecast)

2,553

1,468

1,528

(C-B)

26
26
－
- 27
- 29
- 65
40
-4
2

Property and other taxes

Profits and losses from realestate rental business
Earnings before depreciation
and amortization (NOI)(C-A)- 1,682- 230- 1,452
34
78
8
79
-9
- 44

Operating expenses

Depreciation

Vs. previous
forecast

6,845
6,845
－
3,520
3,103
880
1,106
1,116
416

Gain on sale of real estate
Property-related expenses

Vs. previous
fiscal period

6,818
6,818
－
3,547
3,133
945
1,066
1,120
414

(a)

▮ Main factors in change
Vs. previous fiscal period

8,528
7,076
1,452
3,486
3,025
872
1,027
1,125
461

Operating revenues

1. Overview of the Settlement and Forecasts（million yen）

Vs. previous Vs. previous
fiscal period
forecast(*)*Income taxes deferred + net increase/decrease of reserve for reduction entry- 1,024

60(Unit: Million yen)

Operating revenues<Rental revenues>● Impact of tenant occupation and vacation● Contract cancellation fees
● Full-year impact of tenant vacation at Shinbashi Bldg. that occurred in
the previous period● Absence of the late surrender fees at Shinbashi Bldg. that occurred in
the previous period＜Gains on sale of real estate＞● Absence of gain on sale of part of Shiodome Bldg.

57
23
-229
-78
-1,452

Operating expenses<Property-related expenses>● Increase in brokerage fee● Increase in utilities expenses due in part to an increase in energy
adjustments● Decrease in property management fees due to an increase in the returnof common charges at Kioicho Building● Decrease in repair expenses<Selling, general and administrative expenses>● Decrease in asset management fees due to a decrease in profit
resulting from the absence of gain on sale
● Decrease in consumption tax not eligible for deduction

75
33
-19
-17
-26
-22

Non-operating expenses● Increase in interest paid

30

Vs. previous forecast
Operating revenues● Impact mainly from tenant vacation and new occupancy● Contract cancellation fees
● Downward revision of utilities revenues

25
23
-27

Operating expenses● Downward revision of property taxes (continuation of reductions in tax)
● Upward revision of brokerage fees (Shiodome Bldg., etc.)● Upward revision of utilities expenses due in part to increase in energy
adjustments of repair expenses● Downward revision of repair expenses● Downward revisionoperty management fees due to an increase in the
return of common charges at Kioicho Building

-67
49
31
-22
-16

7

Factors for Change in Distributions per Unit

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package(the fiscal period ending September 2022)

1. Overview of the Settlement and Forecasts(Unit: Yen)

Temporary factors relating to the sale of Shiodome Bldg.
Gain on transfer 1,100
Management fee -16
consumption tax not eligible for deduction -17
Transfer to internal reserves -353

3,195

-¥195

714

Contract
cancellation fees

43

2,481

Impact oftenantoccupationand vacation

-173

2,800

Internal revenues
reduction

18

Full-year impact
of tenantvacation at
Shinbashi Bldg.
that occurred in
the previous
period3,000

Decrease in property
management fees due toan increase in the returnof common charges at
Kioicho Building

-59

14

-57
Absence of the late-25
surrender fees at
Increase in
Shinbashi Bldg. brokerage fee Increase in utilities
expenses due in partthat occurred in theto an increase inprevious period
energy adjustments

776

12
Decrease in repair-23
expenses
Increase ininterest paid

547

2,253
-7

+¥29

2,224

Other

Distribution
excluding the
temporaryfactors

Period ended

Period ending

Period ending

March 2022

September 2022

March 2023

Actualforecast

forecast

Current
fiscal period8

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Forecasts for the Fiscal Period Ending March 2023

1. Overview of the Settlement and Forecasts

Forecast Distribution Per Unit

¥2,800 (down ¥200 vs. forecast for

fiscal period ending September 2022)(Expectation on performance forecast)・ Vacancy continues for units where no new tenant is found, and a certain amount of vacation is expected for offices and residences.
・ Downward revisions in consideration of real estate rental market conditions are expected.
・ No acquisition or sale of properties is factored in.
・ Distribution per unit is forecast to be 2,800 yen. About half of the balance of internal reserves is expected to be used.

(Unit: Million yen)

Operating revenues
Operating income
Ordinary income
Income taxes - deferred
Profit
Net increase/decrease of reserve
for reduction entry
Total distribution
Distribution per unit (yen)Total number of outstanding
investment units

Period ending
September 2022
Forecast(41st fiscal period)

Period ending
March 2023
Forecast(42nd fiscal period)

(A)

(B)

▮Main factors in change(Unit: Million yen)

Operating revenues
Change
(B-A)

6,845
3,324
2,936
-322
3,257

6,876
3,383
2,974
-227
3,200

31
58
38
95
-56

-702

-495

207

3,960
3,000

3,696
2,800

-264
-200

1,320,000

1,320,000－<Rental revenues>● Impact of tenant occupation and vacation● Absence of contract cancellation fees in the previous period● Impact of a downward revision (including assumptions)

69
-23
-15

Operating expenses＜Property-related expenses＞● Decrease in brokerage fee● Decrease in depreciation and amortization (Depreciation/amortization
periods of some assets ended.)● Increase in repair expenses

-35
-33
27

Non-operating expenses● Increase in interest paid

19

■ Balance of internal reserves（million yen）
PeriodendingSep. 2022
forecast

1,528

PeriodendingVs.
Mar. 2023
previous
forecast fiscal period
(*)

806

- 722

*Income taxes deferred + net increase/decrease of reserve for reduction entry92. Operation Status

10

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Internal Growth (Recognition of Conditions and Future Policies)

2. Operation Status

Recognition of Present Conditions
・In Tokyo's office market, the vacancy rate remains in an upward trend due to the impact of the COVID-19 pandemic.
However, the pace of increase is slowing due to a growing tendency to relocate to a larger space or open a new office.
・A tendency to relax terms and conditions to make it easier to attract tenants can be seen and rents continue to trend downwards.
・The impact of large supply of office space in central Tokyo planned from 2023 requires attention.

Future Policies
・Seek to tap into demand by flexibly meeting tenant needs in terms of rent, area, etc.
・With the rent gap narrowing due to falling market rents, negotiate upward rent revision with tenants when there is the scope for upwardrevision, while paying attention to exit risk・ Comprehensively assess any requests received for rent reductions and so on, taking social circumstances and unitholder interests into
consideration.
(Consider each request individually, including factors such as tenant business results, rent gaps, leasing difficulty, impact on portfolio
revenue, and portfolio occupancy status)
11

Internal GrowthFiscal Period Ended March 2022 (40th Fiscal Period) Information Package(Tennant trends in the current fiscal period/Situation of Rent Revision for Six Office Buildings)

2. Operation Status

Tennant trends in the current fiscal period・In the current fiscal period, there were a number of rent reductions and exits due to the COVID-19 pandemic.
(Rent reductions) 2(Exit notifications) 4

Situation of Rent Revision for Six Office Buildings (Kioicho Building, Osaki MT Building, Midosuji MTR Building, Hiroo MTR
Building, Tenjin Prime and Shin-Yokohama TECH Building)・ A breakdown of revisions during the current fiscal period is as follows: increase: 13%, unchanged: 79%;
and decrease: 8% (percentages are based on leased area).
・Negotiation policies for the fiscal period ending September 2022 and fiscal period ending March 2023 were developed
conservatively considering market trends, specifically the downward trend in rents.
▮ Actual revisions and negotiation policy for contracts that will be revised

100%

8%

80%

60%

4%

15%

92%

40%

Agreement

37%

39%

75%

85%

79%

31%
9%

0%

Unchanged

Negotiation policy (Note2)

13%

Unchanged

35%

57%

42%

Decrease
Increase

69%

60%

20%

8%

39%

58%

40%

17%

11%
7%
6%

Increased or
unchanged

4%61%

Increase* Area ratio against total areas
subject to revisions

PeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodendingendingending
ended
ended
ended
ended
ended
ended
ended
Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 Mar. 2021 Sep. 2021 Mar. 2022 Sep. 2022 Mar. 2023
Current fiscal
periodArea subject torevision （Note1） 9,603㎡

22,442㎡

9,865㎡

10,891㎡

10,895㎡

25,006㎡* The notes on this page constitute an integral part of this presentation. See P.50~P51

9,694㎡

12,323㎡

10,620㎡

12,788㎡

12Management situation of properties owned

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

2. Operation Status

Tokyo Shiodome Building
Occupancy rates as of the date of earnings announcement (on the basis of contract conclusion(includes offers))
All properties: approx. 78% (up 17% from the date of the previous earnings announcement)
Office and retail units: approx. 68% (up 24%)
・Tenant activity resumed with the lifting of the state of emergency at the beginning of the fiscal period.
→ Seek improvement in occupancy by continuing to implement flexible leasing activities according
to tenant needs（Replacement transaction）
Sale: Tokyo Shiodome Building
Acquisition: Kamiyacho Trust Tower
Conducted the second transaction
on October 1, 2021
Recorded gains on sale of real estate of
approx. 1.4 billion yen

Shinbashi Ekimae MTR Building
Leasing: Demand for large office space is still lackluster under the difficult conditions created by the COVID-19 pandemic.
Sale: Although a number of clients are still showing a strong interest in acquiring the property, the existence of alternative properties is a major factor.
→ Discussions with sponsor, etc. on the basis of a replacement transaction are ongoing(Aiming to reach a decision during the fiscal period ending September 2022).

Shin-Yokohama TECH Building
Occupancy rates as of the date of earnings announcement (on the basis of contract conclusion (includes offers))
Approx. 70% (up 10% from the date of the previous earnings announcement)
・As in other areas, tenant activity was slow but achieved some incremental gains.
→ Continue to implement leasing activities with emphasis on early recovery of occupancy

Ito-Yokado Shonandai・Agreed on the terms and conditions of a new contract after expiry of the current lease period with the current tenant
Type of lease contract

Building lease agreement (lease of whole building ）Lease period

From November 21, 2022 to November 20, 2042 (cancellation not allowed before November 20, 2032)

Monthly rent

62,500,000 yen (same as current rent; no revision for first 10 years; may be revised through consultation on 10th and 15th anniversaries)→Generation of stable income over the medium and long term

13

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

External Growth (Recognition of Conditions and Future Policies)

2. Operation Status

Recognition of Present Conditions
・ Demand for property purchases from domestic and foreign investors remains high, and the transaction yields continue to be low.
・ Although sales of corporate head offices were seen, information on the sale of high-quality properties from an investment perspective
was still limited and the situation in which it was difficult to acquire properties persisted.
・ In terms of real estate investors' perception of market cycles, the existence of a certain number of investors who think the market has peaked
requires attention.
Conditions of Investment Market▮ Trend in transaction yield of standard ClassA buildings▮ Trends in the number of transactions and values
in real estate selling and buying
12.1

13.6

13.2

9.6

7%

3.9

6%

8.7

414

5%

9.1

0%a half year
20%
40%as of April
60%（Forecasts forinto the future;2021） 80%100%

Apr. 2019
403

391
341

389
326

Apr. 2020
385

Apr. 2021
Oct. 2021

327

2021

2020

2019

2018

2017

2016

Apr. 2022
2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

100%

Apr. 2017

Sendai
SapporoFukuoka
NagoyaMidosuji, Osaka

2004

80%

Apr. 2016

6.3

281

3%

60%

Apr. 2018

358

4%

40%

Apr. 2015

486
407

20%

Apr. 2014

Amount(100Billion yen)number

0%

12.6
8.6

7.6 6.9▮Situations of recognition of the market cycle
among real estate investors

Source: Prepared by the Company based on Japan Real Estate Institute:
The Japanese Real Estate Investor Survey
The figure for Central Tokyo represents the simple mean value of the dataobtained in the survey in Marunouchi-Otemachi, Nihonbashi, Toranomon,
Nishi-Shinjuku, Shibuya and Osaki.
*The data were current as of October of each year.

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

2019
2020
2021
Source: Prepared by the Company based on Nikkei BP: Nikkei Real
Estate Market Report May 2019,Aug. 2019,Nov. 2019,Feb. 2020,Feb.
2020,May 2020,Aug. 2020,Nov. 2020,Feb. 2021 and Aug. 2021
*Based on articles in the Nikkei Real Estate Market Report

Q4

1

2

Recovery stage

3

4

Expansion stage

5
5

6

Reduction stage

７

８

Recession stage

Source: Prepared by the Company based on Japan Real Estate
Institute: The Japanese Real Estate Investor Survey* Recognition of the market cycle (market trends) in relation to Tokyo(Marunouchi/Otemachi districts)

Future Policies
・ Maintain the policy of highly selective investment focusing on the medium- to long-term value of properties (monitor changes
in investment environment taking into account the adjustment phase of real estate prices)・ Continue to develop strategies to increase the stability and quality of the portfolio
14

Financial Status

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package(Management Results for the Fiscal Period Under Review and Loan Repayment Schedule Diversification)

2. Operation Status

Management results for the fiscal period under review
15(Results of loans)Achieved both reduction in the cost of raising funds by taking
advantage of the low interest rate environment and prolongation of
the terms of loans●Changesin0
2 borrowings
4

6

13

8

12
0.81%

0.72%

11

0.68%

0.71%

Borrowing summary
Total amount
17,500 million yen
Average loan term
5.3yearAverage interest rate
0.53%

0.53%

0.47%

9

Repayment summary
Total amount
17,500 million yen
Average loan term
4.6yearAverage interest rate
0.53%

10

7

0.37%

0.45%
0.34%
0.35%

0.61%

0.51%

0.53%
0.43%

0.41%

Average interest rate on
repayments in each period
0.31%

5

Average loan period (year) of
repayments in each period
0.21%

0.11%

(Note) Average interest rates are weighted rates applied when repayments and borrowings are undertaken.

3(Issuance of Twelfth Series Investment Corporation Bonds)

Bond name

5.1

4.7

4.0

3.7

4.3

3.6

5.3

4.6

5.3

0.01%

Average loan period (year) of
borrowings in each period

1Issued 10-year long-term bonds, in addition to the issuance ofinvestment corporation bonds in the 3-year zone for 12 straight years
16th unsecuredinvestment
corporation bonds
17th unsecuredinvestment
corporation bonds

5.1

Average interest rate on
borrowings in each periodTermIssuance amountInterest rateIssuance date

3 years

1,000 million yen

0.110%

February 21, 2022

10 years

1,000 million yen

0.500%

February 21, 2022

-1

March 31,2020
(End of 36th
fiscal period)

September 30,
2020(End of 37th
fiscal period)

March 31,2021
(End of 38th
fiscal period)

September 30,
2021(End of 39th
fiscal period)

March 31,2022
(End of 40th
fiscal period)

Loan repayment schedule diversification（Schedule for repayment within one year）（million yen）
20,000Investment corporation bonds
Long-term loans
Short-term loans

3,000

15,000

3,000

Fiscal period ending September 2022

Fiscal period ending March 2023

Repayment summary
Total amount
20,000 million yen
Average loan term
4.5yearAverage interest rate
0.45%

Repayment summary
Total amount
11,500 million yen
Average loan term
4.3yearAverage interest rate
0.40%

10,00017,000

8,500

9,500

14,00013,5005,000

10,000

9,500

7,500

7,500

4,000
0

3,000

5,500

7,500

6,500

6,500
4,500
1,500

500

4,000

1,500

1,000

1,000

1,000

1,000

PeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodendingendingendingendingendingendingendingendingendingendingendingendingendingendingendingendingendingendingendingendingSeptember March September March September March September March September March September March September March September March September March September March
2022
2031
2023
2031
2023
2032
2024
2024
2025
2025
2026
2026
2027
2027
2028
2028
2029
2029
2030
2030
(41st fiscal (42nd fiscal (43rd fiscal (44th fiscal (45th fiscal (46th fiscal (47th fiscal (48th fiscal (49th fiscal (50th fiscal (51st fiscal (52nd fiscal (53rd fiscal (54th fiscal (55th fiscal (56th fiscal (57th fiscal (58th fiscal (59th fiscal (60h fiscal
period)period)period)period)period)period)period)period)period)period)period)period)period)period)period)period)period)period)period)period)PeriodendingMarch
2036(68th fiscal
period)PeriodendingMarch
2037(70th fiscal
period)

1,000

1,000

15

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Financial Status (Status of Interest-Bearing Liabilities and Rating)▮ Interest-bearing liabilities

2. Operation Status▮ Breakdown of interest-bearing liabilities(as of the end of March 2022)(Million yen)
September 30,
2021(End of the 39th
fiscal period)

March 31,2022
(End of the 40th
fiscal period)

155,000

154,000- 1,000

6,000

6,000

ー

Total interest-bearing liabilities
Short-term loans
Long-term loans (including long-term loans due within
one year)Investment corporation bonds (including investment
corporation bonds due within one year)(Million yen)
Balance ofborrowings
31,00020.1%

Sumitomo Mitsui Banking Corporation

27,00017.5%

Sumitomo Mitsui Trust Bank, Limited

19,00012.3%

MUFG Bank, Ltd.

14,5009.4%

Development Bank of Japan Inc.

12,500

8.1%

Resona Bank, Limited.

6,000

3.9%

The Bank of Fukuoka, Ltd.

5,500

3.6%

Aozora Bank, Ltd.

5,500

3.6%

The NorinchukinBank

4,500

2.9%

The Nishi-Nippon City Bank, Ltd.

3,500

2.3%

Classification
Loans

Change135,000

135,000

ー

14,00013,000- 1,000

LenderMizuho Bank, Ltd.

(%)

LTV (Loan To Value ratio)

47.2%

47.4%

0.2%

Long-term interest-bearing liabilities ratio (including loans
expected to be repaid or redeemed within one year)

96.1%

96.1%

- 0.0%

Fixed interest-bearing liabilities ratio

96.1%

96.1%

- 0.0%

Shinkin Central Bank

2,000

1.3%

Average interest for borrowings during fiscal period

0.45%

0.45%

0.00%

Mitsui Sumitomo Insurance Company, Limited

2,000

1.3%

Short-term loans

0.21%

0.21%

- 0.00%The 77 Bank, Ltd.

1,500

1.0%

Long-term loans and investment corporation bonds

0.46%

0.46%

0.00%

The Hachijuni Bank, Ltd.

1,000

0.6%

Mizuho Trust & Banking co., Ltd.

1,000

0.6%

3.0year

3.3year

0.2year

The Ashikaga Bank, Ltd.

1,000

0.6%

SUMITOMO LIFEINSURANCECOMPANY

1,000

0.6%

Shinsei Bank, Limited

1,000

0.6%

Nippon Life Insurance Company

1,000

0.6%

Average duration of interest-bearing liabilities▮ Rating
Rating agency

Japan Credit Rating Agency, Ltd. (JCR)

Liabilities rated

Long-Term Issuer Rating

Rating (outlook)

AA (stable)

The Dai-ichi Life Insurance Company,Limited
Subtotal

500

0.3%

141,000

91.6%

Investment corporation bonds
Total

13,0008.4%

154,000

100.0%▮ Changes in LTV
48.0%

Standard LTV: 50%

48.0%
46.4%

47.2%

47.1%

47.2%

47.2%

47.1%

47.1%

47.5%

47.2%

47.4%

September 30, March 31, September 30, March 31, September 30, March 31, September 30, March 31, September 30, March 31, September 30, March 31,
2016
2017
2017
2018
2018
2019
2019
2020
2020
2021
2021
2022
(End of 29th (End of 30th (End of 31st (End of 32nd (End of 33rd (End of 34th (End of 35th (End of 36th (End of 37th (End of 38th (End of 39th (End of 40th
fiscal period) fiscal period) fiscal period) fiscal period) fiscal period) fiscal period) fiscal period) fiscal period) fiscal period) fiscal period) fiscal period) fiscal period)16

3. Initiatives Related to ESG

17

Initiatives Related to ESG

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package(Sustainability Policy/System for Promotion of Sustainability)
Sustainability Policy
The asset management company of MTR establishes the "sustainability policy"
and proceeds with the initiatives for environmental consideration, contribution tosociety, strengthening of governance in organizations and others in asset
management operations to enhance the value of unitholders of the investment
corporation in the medium to long term.

▮ Sustainability Policy
1. Promoting energy savings and GHG emissions reduction
Promotion of efficient use of energy in assets under management,
introduction of facilities conducive to energy saving and low carbonization
2. Contributing to recycling-oriented society
Promotion of initiatives for effective use of limited resources, including 3R forwater saving and waste reduction
3. Streamlining the internal management system and strengthening
compliance
Establishment of the internal system for the effective promotion of initiatives
under this policy, compliance with laws and regulations, educational andawareness-raising activities concerning ESG directed at employees
4. Respect for Human Rights
Respect for human rights based on international norms, and compliance withhuman rights-related laws and regulations in the countries and regions inwhich MTR conducts business activities
5. Promoting health and comfort
Asset management that seeks improvement in health, safety, and comfort oftenants and facility users,
as well as creation of effective working environments for employees
6. Responding to climate change and improving resilience
Promotion of climate change adaptation and mitigation efforts
7. Collaborating with external stakeholders
Construction of good relationships with tenants, customers, local communities
and other external stakeholders
8. Disclosing ESG information
Broad disclosure of this policy and information regarding the situations ofinitiatives for sustainability, among others

3. Initiatives Related to ESG

System for Promotion of Sustainability▮ Meeting for Promotion of Sustainability
Meetings for promotion of sustainability are held regularly to ensure that
Sustainability Policy is implemented and the sustainability goals are achieved.
(Attendees)
・President & Director (Chief Officer with the authority to make final decisions
on matters related to the promotion of sustainability)
・Other Directors
・General Managers of the Strategic Management Departments andInvestment Departments of the Management Divisions (Operating Officers ofmatters related to the promotion of sustainability)
・General Manager of the Planning & Finance Department
・Compliance Officer
・Other members whose attendance is considered necessary by operating
officers(Details of discussions and reports, frequency of meetings andexamination process)・At meetings, policies regarding sustainability are established, revised orabolished, and a range of measures that should be taken in line with the
Sustainability Policy are discussed and reported.
・Meetings are held four times a year. We are working on continuous
improvement through the repetition of the PDCA cycle, including theexamination and planning of measures, the reporting and evaluation ofprogress, the analysis of results, and the examination and planning of
improvement measures.
・Matters discussed at the meetings are to be decided upon and implemented
according to the asset management company's Rules Regarding
Administrative Authorities.

▮ Employee training on sustainability
To spread the awareness of sustainability among employees, employee training
on sustainability is provided periodically by inviting outside consulting
companies as part of the environmental educational and awareness-raising
activities.

18

Initiatives Related to ESG

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package(Relevance to materiality and the SDGs/GRESB Real Estate Assessment)
Relevance to materiality and the SDGs

3. Initiatives Related to ESG

GRESB Real Estate Assessment

We identify issues, taking into consideration recognized issues in the REIT
sector, external organizations' ESG evaluations, current social trends and otherfactors, and then evaluate materiality from MTR's perspectives by factoring in themain initiatives advanced by MTR as well as the importance and priority of these
initiatives.

MTR has earned “Green Star” in this assessment in 2021 designation for thefifth consecutive year by achieving high performance both in “Management
Component” that evaluates policies and organizational structure for ESG
promotion, and “Performance Component” that assesses environmental
performance and tenant engagement of properties owned.

In addition, we seek to contribute to the achievement of the Sustainable
Development Goals (SDGs) through the implementation of these materialitylinked initiatives.

MTR received a“4 Stars”in GRESB Rating, which is based on GRESB Overall
Score and its quintile position relative to global participants.

MTR has received the highest “A level” for the five-grade GRESB Public
Disclosure”, which assess the width of ESG disclosure practices in connection
with sustainability initiatives, for the second consecutive year.

Issuance of Sustainability Report
MTR and the asset management company issued a sustainability report which
provides stakeholders with information about their ESG approach and activities
and posted the report on MTR’s website.

19

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Initiatives Related to ESG (Climate Change)

3. Initiatives Related to ESG

Initiatives for the TCFD Recommendations▮ Declaration of Support for the TCFD Recommendations▮ Strategies

MTR’s asset management company (MTAM) declared its support for therecommendations announced in June 2017 by the Task Force on ClimateRelated Financial Disclosures (TCFD *).
In order to secure MTR's sustainable and stable profitability in the long term,
it will be essential for MORI TRUST Asset Management to enhance theresilience of its businesses by identifying, assessing and managing risks andopportunities that may be brought about by climate change. We will strive fordisclosure of information on these risks and opportunities, in line with the
TCFD recommendations.

In order to consider climate-related risks and opportunities, MTAM conducteda scenario analysis for MTR's portfolio.
Financial Impact
Category

Policy and Law* The Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial
Stability Board (FSB), an organization that includes the financial authorities of major countries
and aims for the stabilization of international financial systems.

Markets and Reputations（Chief executive responsible for response to climate change）
・President & Director（Executive officer responsible for response to climate change）
・General managers of the Planning & Finance Department , andStrategic Management Department, Investment Management
Department of Sogo REIT Management Division.

・Climate change responses such as setting indicators and targets
Climate-related risk management is integrated into and managed based on thefollowing company-wide risk management programs.

Chronic Risks

・Progress of adaptation and mitigation initiatives

Physical・Managing risks and opportunities

Acute Risks（Matters for discussion and reporting at the Meetings for Promotion of
Sustainability）
・Identification and classification of impacts of climate change

Technology

MTAM has established the following organizational governance system torespond to climate change-related risks and opportunities and promote andsupervise matters relating to climate change.

Transition▮ Governance and Relating to Climate Change

Risk and Opportunity Factors

Toughening taxation on GHG emissions byintroducing a carbon tax

Risks and
Opportunities

4℃ Scenario

2-1.5℃
Scenario

Medium Long-term
term

Medium Long-term
term

Risks

Low

Low

Medium

High

Risks

Low

Low

Medium Medium

Opportunities

Low

Low

Risks

Low

Low

Opportunities

Low

Low

Risks

Low

Risks

Low

Low

Low

MediumOpportunities

Low

Low

Low

MediumToughening of energy conservation standards
leading, obligations to report emissions

Evolution and widespread adoption ofrenewable energy and energy-saving
technologies

Change in social values relating toenvironmental performance

Low

MediumMedium Medium

Low

Low

Medium Medium Medium

Changes in tenant demand (growing needs /demand for environmental performance)

Damage to properties caused by winddamage from typhoons

Risks

Medium Medium

Low

MediumInundation due to intensive heavy rainfall andflooding of nearby rivers

Risks

Medium Medium

Low

MediumProgressive rise of sea levels

Risks

Low

MediumLow

Low

Increase in extreme climatic conditions, suchas extremely hot and cold days

Risks

Low

Low

Low

Low

20

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Initiatives Related to ESG (Climate Change)

3. Initiatives Related to ESG

Initiatives for the TCFD Recommendations▮ Metrics and Targets
MTAM uses indicators and targets to monitor its efforts to reduce the impact of climate-related risks and actualize opportunities.
＜Environmental Management System (EMS)＞
MTR’s asset management company has built an environmental
management system to promote energy saving, reduction of greenhousegas (GHG) emissions, and effective use of resources.
MTR sets targets for CO2 emissions, energy consumption and water
consumption, observes the results, carries out plan-and-result
management, and takes measures to contribute to the creation of asustainable recycling society through the reduction of the environmental
burden.

• Development of sustainability policy and• Assessment of effectiveness of EMS• Planning improvement measures fornext fiscal year

implementation system

In FY2021, MTAM has set reduction targets for total CO2 emissions, energy
consumption and water consumption across the portfolio for FY2021 to
FY2025, as shown below. We have set its targets for CO2 emissions
reduction, bearing in mind the Japanese government target of reducing CO2
emissions in fiscal 2030 by 46% from their level in fiscal 2013.

CO2

EnergyWater

30％ reduction

15％ reduction

12％ reduction(in intensity︓
compared to Baseline)(in intensity︓
compared to Baseline)(in intensity︓
compared to Baseline)• Setting reduction targets for eachenergy indicator• Development of reduction plans for eachenergy indicator

Act＜Environmental Performance Targets＞

Plan* Energy: Electricity, gas, fuel, DHC, etc./Water: Water supply and recycled water* Baseline: Average in FY2014 and FY2015* Rate is consumption rate or emissions rate per unit floor area. Adjusted based on the period of holding andutilization rate of each property.

＜Environmental Performance Data＞

Check

Do

Item
CO2

• Obtaining knowledge of actual

values for each energy indicator• Implementation of reduction plans foreach energy indicator• Management of energy indicator targets• Checking progress of reduction plan foreach energy indicator* The confirmation of a third party (Yasui Architects & Engineers, Inc.) has been obtained regarding total CO2
emissions, energy consumption and water consumption across the portfolio (excluding land with leaseholdinterest).

EnergyWater

Baseline

2018

2019

2020

Emissions (t-CO2)

39,32737,29635,633Emissions intensity (t-CO2/㎡)

0.095

0.086

0.082

0.068

101,814

102,433

97,252

82,561

Consumption (MWh)Consumption intensity (MWh/㎡)
Consumption (㎥)Consumption intensity (㎥/㎡)

29,425

0.246

0.236

0.224

0.190

546,827

526,507506,521319,966

1.317

1.211

1.164

0.737

* All real estate held by MTR at the time the baseline was determined (except sold properties and land withleasehold interest) is included in the aggregation of data. However, areas for which it is difficult tounderstand data (exclusive use areas of residential properties, etc.) are excluded.
* Aggregation period is one year from April 1 each year to March 31 of the following year.

21

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Initiatives Related to ESG (Environment)

3. Initiatives Related to ESG

Examples of Environment Initiatives＜Introduction of LED Lighting＞
MTR introduced LED lighting and lighting equipment with human sensors
successively in rooms for rent and common areas of the properties held.
Energy saving activities for reducing the environmental burden are promoted.
(Examples of introduction)
・Tokyo Shiodome Building・ON Building・Kioicho Building・Kioicho Building＜Water-saving through reduction of water consumption andtoilet equipment renewal＞
MTR is working to conserve water in the common areas of the properties it owns byinstalling automatic sink faucets and replacing hygiene equipment with products withhigh water-saving performance.
(Examples of introduction)• ON Building, Osaki MT Building, Shin-Yokohama TECH Buildingetc.

・Kamiyacho Trust Tower・Osaki MT Building ・Midosuji MTR Building・Hiroo MTR Building ・Tenjin Prime・Shin-Yokohama TECH Building ・SHIBUYA FLAG ＜Properly Dealing with Environmental Issues such as Contamination＞
When acquiring real estate, assessing beforehand whether there are harmful
・Hotel Okura Kobe・Park Lane Plaza etc
substances such as PCBs or asbestos, soil contamination or other environmental
issues is an integral part of the process.
＜Introduction of Highly Efficient Heating Systems/
We deal with any issues with real estate held such as the presence of harmful
Renewal of air-conditioning systems＞
substances through appropriate measures, management or treatment in accordancewith laws and regulations.
MTR is working on increasing comfort and reducing CO2 through the introduction ofhighly efficient heating systems whose energy efficiency is excellent and renewal with
＜Management of waste＞
highly efficient air-conditioning systems whose energy saving performance is highWe are working on the continuous reduction of waste by properly managing waste inupon the replacement of air-conditioning systems.
our portfolio.
(Examples of introduction)
・Tokyo Shiodome Building・ON Building・Kioicho Building・Osaki MT Building

Item・Midosuji MTR Building・ Tenjin Prime・Shin-Yokohama TECH Building
・Ito-Yokado Shonandai・Hotel Okura Kobe etc<Utilization of power sources that do not emit CO2>
MTR is promoting the use of CO2-emission free power (virtually zero CO2emissions) through the utilization of non-fossil certificates, etc.
(Examples of introduction)
・SHIBUYA FLAG （RE100 initiatives）＜Introduction of smart meters＞
MTR is focusing on the efficient use of energy by utilizing smart meters to understanddetails such as the amount of power that is consumed and the time it is consumed.
(Examples of introduction)
・Kamiyacho Trust Tower・Osaki MT Building

Total amount of waste (t)

2020

2,274

*Excluding properties (residential houses, etc.) whose data cannot be easily assessed.
*Aggregation period is one year from April 1 each year to March 31 of the following year.

＜Protection of Biodiversity＞
ON Building and Osaki MT Building, which are owned by MTR, have formed Osaki
Business Garden, a large-scale redevelopment project. The site has an open space fullof greenery, worthy of the name "Garden", and contributes to symbiosis and coexistencewith nature and the protection of biodiversity.

ON Building
Osaki MT Building

22

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Initiatives Related to ESG (Environment)

3. Initiatives Related to ESG

Examples of Environment Initiatives▮Collaboration with Tenants and Suppliers＜Introduction of green lease＞＜Reduction of waste＞
When carrying out construction work, MTR is continuously working to reduce waste incollaboration with contractors.

＜Supply chain management＞
When selecting a property management company, MTR assessed the candidates’
activities related to sustainability in addition to their facility operation and management,
lease operation and management, and leasing operations.

MTR and tenants of some of the properties owned have concluded a memorandum of
understanding for a green lease, aiming to reduce the environmental burden.
Information sharing about electricity, gas and water consumption and discussions on
the improvement of environmental performance will be conducted.
In addition, MTR has introduced an initiative where MTR will carry out energy-saving
installation work in the units of some tenants at Osaki MT Building at MTR's own
expense and a portion of the installation costs will be returned as green lease paymentsfrom the tenants..

Acquisition of Environmental Certification and Evaluation
MTR has acquired Environmental Certification and Evaluation for eight properties it owns.
The ratio of certified properties in the portfolio, excluding land with leasehold interest, is around 53% on a number of properties basis and around 50% on a leasablearea basis.

▮ DBJ Green Building certification★★★
Properties with excellent
environmental & social awareness★★

★

Properties withhigh environmental& social awareness

Properties withhigh environmental& social awarenessTokyo Shiodome Building

ON Building

Shin-Yokohama TECH Building

Kioicho Building (Office)Osaki MT Building

SHIBUYA FLAG (Retail)

Kioicho Building(Residential)

Midosuji MTR Building
SHIBUYA FLAG (Office)* Green text are properties acquired in the current fiscal period.

▮ Tokyo Metropolitan Government Building Energy-Saving Performance Evaluation System
Property name

Kamiyacho Trust Tower

Heat insulation capacity ofthe building

AAA（Highest rating）

building Energy-saving capability ofthe equipment systems

AAA（Highest rating）
23

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Initiatives Related to ESG (Society)3. Initiatives Related to ESG

Contribution to local communities ／Improvement of tenant satisfaction and comfort etc.
▮ Improvement of tenant satisfaction▮Contribution to local communities＜Installation of Bicycles for the Community／Cooperation with Local Events＞ <Tenant satisfaction surveys>
MTR endeavors to contribute to the sustainable development of local communities,
including participating in regular community cleaning activities, attending various
meetings on town creation, providing a public cycle system(Kioicho Building and ItoYokado Shonandai), and joining and cooperating in community events.

MTR is constantly seeking to improve tenant satisfaction by conducting surveys oftenants who occupy offices and retail properties, etc. and sharing the survey results withbuilding management companies, etc. for use in improving building operation andmanagement.

<Improvement of tenant comfort>
MTR carries out work to renew common areas to improve the comfort of tenants who
occupy the properties.

Provision of community cycle system(Kioicho Building)Midosuji Illuminations(Midosuji MTR Building)＜Cooperation in Zero Emission Tokyo Strategy＞
To cooperate with the Tokyo government in the Zero Emission Tokyo program
targeting zero CO2 emissions by 2050, the Company donated CO2 reduction
credit of 15,007 points to the Tokyo government in October 2020 based on
Tokyo Cap-and-Trade Program..
＜Cooperation in the activities of the Japanese Red Cross Society＞
Cooperation in the activities of the Japanese Red Cross Society
As a gesture of its endorsement of the activities of the Japanese Red Cross
Society, MTR has been cooperating with the educational activities of the Red
Cross by displaying its posters in owned properties.

Entrance hall renewal work
(Shin-Yokohama TECH Building)

Barrier-free renovation construction(Tenjin Prime)<Efforts for tenants’ safety and security (COVID-19 countermeasures)>・Placed sanitizer in common areas such as entrances and elevator halls of properties
owned
・ Janitors and security guards wear face shields, masks and disposable gloves whenworking and patrolling in the buildings
・ Display of documents related to measures to prevent infection▮Collaboration with Property Management Companies,
Suppliers and Other Business Partners
When selecting and evaluating property management companies, suppliers and otherbusiness partners, we assess their environmental policy and corporate framework andtheir cooperation with MTAM’s Sustainability Policy.

24

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Initiatives Related to ESG (Society)3. Initiatives Related to ESG

Initiatives for Employees／Initiatives for Human Rights etc.
▮ Initiatives for Employees＜Employee Training by MTR's asset management company(MTAM) ＞(Asset Management Company's training programs)
・Internal training on compliance, protection of personal information, etc.
・External training on sustainability delivered by ESG experts
・Study meetings on real estate delivered by university professors(Support for the acquisition of various qualifications and attendance of externalseminars)・Acquisition of real estate-related specialist qualifications such as ARES

＜Human Resources with High levels of Expertise＞
We seek the achieve even more sophisticated asset management operations
by accepting human resources with extensive experience and high levels of
expertise from our sponsor and the sponsor group and leveraging their
specialist skills.
Status of Employees（as of March 31,2022）
Male/female employee ratios

Male: 78%

Female: 22%

Regular (*)/Non-regular
employee ratios

Regular employees : 78%

Non-regular employees : 22%*Regular employees consist of employees seconded from the sponsor group.

Certified Master and homebuilder▮Initiatives for Human Rights

・External seminars on practical accounting and tax issues

MTAM supports and respects the principles of human rights stipulated byinternational norms such as the Universal Declaration of Human Rights, the ILO
Declaration on Fundamental Principles and Rights at Work, and the Guiding
Principles on Business and Human Rights, and engages in initiatives to ensure
respect for human rights.

・External seminars on compliance(Sponsor's human resource programs)
・MT TALK
Companywide presentation competition on the future vision of MORI TRUST
Themes: New business, company-wide reform・MT ACADEMY
Study meetings and workshops on new business knowledge and approaches
Themes: Critical thinking, design thinking, SDGs, etc.
・MT meetup futureInternal lectures delivered by executives, researchers and other experts
playing an active part in various fields
Themes: Tourism-oriented country, AI, IoT, DX, etc.
＜Implementation of employee satisfaction surveys＞
MTAM conducts an employee satisfaction survey every year. It respects each
employee and has been working on the provision of healthy and comfortableworkplace environments to ensure that all employees are able to fully
demonstrate their capabilities.

The matters the Asset Management Company must comply with are as follows:
1. Prohibition of discrimination and harassment
2. Prohibition on child labor and forced labor
3. Respect for freedom of association and collective bargaining rights
4. Control excessive work hours and overtime work
5. Payment of wages equal to or above the minimum wage
6. Compliance with equal pay for equal work
We also expect business partners and others to engage in initiatives that
ensure respect for human rights.

▮Information Disclosure
MTAM has set out the Information Disclosure Regulations and the Detailed
Regulations on Fair Disclosure Rules to seek to protect investors and others
and help maintain and improve public trust in MTR and MTAM.
We strive to disclose to the public the information which needs to be disclosed
and information that has been deemed beneficial in investors' making ofinvestment decisions in a timely and appropriate manner.

25

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Initiatives Related to ESG (Governance)

3. Initiatives Related to ESG

Initiatives for Governance▮ Same boat investment by Mori Trust GroupMTR aims to improve unitholder value by aligning sponsor interests with those ofunitholders.

Percentage of investment units
owned by Mori Trust Group26.5%(as of March 31, 2022)▮ Procedural flow for related party transactions
MORI TRUST Asset Management Co., Ltd., which is the asset managementcompany, has established a governance structure that prioritizes compliance toensure prevention of conflicts of interest, risk management and legal compliance.
The asset management company has established a Compliance Committee and an
Investment Committee and elected outside members to both, and if the acquisition ofan asset, etc. is classed as a related party transaction, the approval of the outside
members of both commities is required.

▮ MTR’s Operational Structure
Proposing department

Examination by Compliance Officer

Resolution by Compliance Committee◀

Resolutions by SOGO REIT Management Division
Investment Committe◀

Resolution by Board of Directors

Approval of MTR’s Management Board

Attendance and approval of outside members isprerequisite for passing a resolution<Organization Chart>

Instruction to stop or change content of transaction

MTR entrusts asset management to MORI TRUST Asset Management Co., Ltd., which isthe asset management company. The organizational structure of the asset managementcompany is as shown below.

▮Information Security▮ Provision of regular compliance training
MTAM provides all its officers and employees (including temporary employees,
contract employees, and employees on loan or dispatched from other companies) withtraining mainly aimed at raising compliance awareness on a regular basis.

MTAM enacted the Information Management Rules with the aim of properly utilizing
company information and preventing information incidents including unauthorizedaccess and the loss or leak of company information.
The rules aim to ensure information management by providing for training andaudits on the management of confidential information, restriction of unauthorizedaccess, prevention of information leaks, maintenance of information systems andinformation system.

26

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Initiatives Related to ESG (Sponsor group)

3. Initiatives Related to ESG

Vision for promoting sustainability／Mori Trust’s personnel system▮ Mori Trust Group's vision for promoting sustainability.
Under the slogan "from urban planning to future planning," the Mori Trust Group has
identified seven priority themes for the sponsor group's pursuit of sustainability andhas set out action plans for realizing harmony between the economy, environment andsociety.
Seven priority
themesSafety andsecurity

Environment

Action Plans
・Creation of sustainable spaces for activity through the realization of regional disastermanagement and BCP
・Provision of peace of mind to meet the needs of the times, including infection control
measures using new technologies
・Promotion of regional and social development and growth in collaboration with various
stakeholders
・Urban development through the protection of landscapes and biodiversity and thesustainable use of resources
・More widespread use and more stable supply of renewable energy
・Proper collaboration with various stakeholders

・Provision of facilities and services for enhancing work-life balance
・Creation of lifestyle diversity through new businesses
Work/Lifestyles
・Implementation of new work styles and proposals/giving-back of new work styles tosocietyInnovation

・Development of industry through investments and partnerships
・Optimization of supply chain though the utilization of digital data and advanced
technologies
・Establishment of group structure which encourages the proposal and implementation of
ideas

Wellness

・Provision of spaces which contribute to sustainable improvement in people's health andwellbeing
・Creation of dining and accommodation experiences to nourish mind, body and soul
・Realization of health and productivity management on a society-wide basis

Diversity

Compliance
Governance・Promotion of international exchanges and multilingual service
・Establishment of management base which enables diverse human resources to play anactive part・Continuous improvement in governance to help revitalize the economy
・Strengthening of risk management to support sustainable corporate activities▮ Mori Trust’s personnel system
Mori Trust, the sponsor of the asset management company, considers the work-lifebalance of its employees to help maximize each employee’s abilities and strives tocreate a comfortable environment for them to work.
(1) Promotion of work-life balance and women’s participation
MTR has introduced various programs, such as childcare leave, to help
employees manage both their work and childcare.
(1) Percentage of female recruitment

33.3%(2) Percentage of female employees

27.7%(3) Percentage of female managers

6.8%(4) Percentage of paid leave taken

79.1%(5) Percentage of employees taking
childcare leave

Male

90.0%

Female100.0%(Note) Item (1)and(4)and(5): FY2021, items (2) and (3) as of March 31, 2022

(2) Certification as a childcare supporting company and start of childcare
business
MTR is recognized as a company supporting childcare and promoting women’s
activities by the Ministry of Health, Labour and Welfare (MHLW) and certified
Kurumin and Eruboshi (two stars).
MTR opened a company-sponsored nursery, Nursery Room Mirai’s, in
Shiroyama Trust Tower in November 2019, which is available for use of thebuilding’s tenants and employees.
(3) Implementation of work-style reforms• Participation in "Time Difference Biz” led by the Tokyo Metropolitan
Government• Uses telecommuting and mobile workplace(4) Health and productivity managemen
The company, employees, their families, and the health insurance society work
together on health management-related initiatives.
These initiatives have been favorably received, and Mori Trust was certified as a
“Health and Productivity Management Organization” in 2022 (Ministry of
Economy, Trade, and Industry).

27

4. Characteristics of MORI TRUST Sogo Reit, Inc.

28

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Basic Policy and Characteristics of MORI TRUST Sogo Reit, Inc. (1)4. Characteristics of MORI TRUST Sogo Reit, Inc.

Basic Policy

Features of MORI TRUST Sogo Reit, Inc.

Stable operations over the medium and long terms“Diversified REIT” with a portfolio consisting
mainly of office buildings in central Tokyo

Progressing with steady accumulationof portfolio property assets

Securing stable income

1

Operate with a view toward “Profitability,”“Stability” and “Growth Possibility”

Investment in carefully selected properties, with emphasis on “quality” interms of “location” and “building grade”

2

Maintaining
high occupancy
rates

Broad collaboration with the Mori Trust Group
Collaboration over the acquisition and sale of real estate and utilization ofreal estate leasing and management knowhow

Stable operations
Steady growthof asset size

Construction of a stable portfolio with selectively acquired properties

3

Stabledistributions

Solid financial strategy
Utilization of creditworthiness to raise funds at low interest rates and solid bankformation including three megabanks

1 Construction of a stable portfolio with selectively acquired properties
Investment in carefully selected properties which will contribute to stable operations over the medium and long term rather than pursuing hasty
expansion in scale
Implementation of an investment strategy focusing on “quality” in terms of “location” and “building grade”
By region

Investments (as of March 31, 2022)

16 properties
324.7 billion yen

Number of properties:
Asset size:(Total acquisition price)

Other areas
19.8%
Central Tokyo

By useOther(Residential / Hotel)
6.8%

By acquisition priceLess than 10 billion yen
10.7%

Retail Facilities
21.9%
Office Building

80.2％

71.2％

10 billion yen
or more89.3％

Target portfolio and actual performance
RegionCentral Tokyo (Note 1)

Use

Office Building
Retail Facility / Other (Note 3)
Total

Total

Other areas (Note 2)

TargetActualTargetActualTargetActual60–70%

63.8%

10–20％

7.4%

70–90%

71.2%

0–10%

16.4%

10–20%

12.4%

10–30%

60–80%

80.2%

20–40％

19.8%* The notes on this page constitute an integral part of this presentation. See P.50~P51

28.8%
100%

29

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Basic Policy and Characteristics of MORI TRUST Sogo Reit, Inc. (2)4. Characteristics of MORI TRUST Sogo Reit, Inc.

2 Broad collaboration with the Mori Trust Group

350,070 units (26.5%) held (as of March 31, 2022)

Investment units held by the Mori Trust Group
Pipeline for the acquisition and disposition of real estate

The Investment Corporation and Mori Trust Co., Ltd. have entered into an agreement on the provision of information on real estate, etc. between
the Investment Corporation and three companies of the Mori Trust Group.
Acquisitions (as of March, 2022)
Acquisitions Based on Information
Provided by the Mori Trust GroupAcquisitions through31.1% Proprietary
Channels

Acquisitions from the Mori Trust Group

45.6%

23.3%

Acquisitions
involving theMori Trust GroupON Building

Kioicho Building

Shin-Yokohama
TECH Building

Hotel Okura Kobe

76.7%

Tokyo Shiodome
Building

Kamiyacho Trust Osaki MT Building
Tower

Ito-Yokado
Shonandai* Percentage based on acquisition price

Recent dispositions
Acquisitions from the Mori Trust Group:

Kamiyacho Trust Tower (2021)

Dispositions to the Mori Trust Group:
Dispositions based on information provided by the Mori Trust Group:

Akasaka-Mitsuke MT Building (2010), Mita MT Building (2014), Tokyo Shiodome Building (2021(Partial Sale))Ginza MTR Building (2014 and 2015), Osaka Marubeni Building (2015),
Ito-Yokado Shin-Urayasu (2017)

Harnessing the real estate leasing and management knowhow of the Mori Trust GroupThe Investment Corporation seeks to increase the profitability of the portfolio by harnessing the real estate leasing and management knowhow of
the Mori Trust Group.

3 Solid financial strategy● Utilization of creditworthiness to raise funds at low interest rates● Solid bank formation including three megabanks● Strike a balance between short-term and long-term debt, taking reduction of financing costs and mitigation of the impact of changes in the financial
environment into consideration.
RatingBank formation

AA (stable)

JCR / Long-Term Issuer Rating (as of the end of March 2022)

Establishment of solid bank formation (20 companies in total), including three megabanks

30

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Mori Trust Group

4. Characteristics of MORI TRUST Sogo Reit, Inc.

Since its founding in 1951, the Mori Trust Group has engaged in large urban development projects primarily in the central Tokyo area, with property
holding, leasing, operation, and management. Through the success of this core business, in which the Group has envisioned the future of cities andcontinued to provide functions truly needed by people, the Group ensures high profitability and stable income and is building a strong financial foundation.

1st stage
1951–1992

2nd stage
1993–2004

3rd stage
2005–2015

4th stage
2016–

Founded Mori Trust Group

Increased competitivenessas a corporate group

Developed real estate, hotel, and resort investment
business

Respond to globalism andpromote innovation

1990

Gotenyama Trust Tower
Completed in 1990

Shiroyama Trust Tower
Completed in 1991

2000

2005

2010

2015

2020

Tokyo Shiodome Building
Completed in 2005

Marunouchi Trust City
Completed in 2008

Sendai Trust City
Completed in 2010

Kyobashi Trust Tower
Completed in 2014

Tokyo World Gate
Completed in 2020

Tokyo World Gate Akasaka
Scheduled for completionin 2024▮ Mori Trust Group facilities▮ System of real estate development

Holds and operates a large number of properties in central Tokyo, central
areas of major cities (Sendai and Osaka) and countryside resorts.

Applies expertise built in property marketing, operation, andmanagement to building planning and design

Total number of facilities:

91

Buildings for lease:

65 buildings(As of March 31, 2022)

31

5. Reference32

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Balance Sheets

5. Reference
Thousands of yen
As of September 30,
2021

As of March 31,
2022

Assets

As of September 30,
2021

As of March 31,
2022

Liabilities

Current assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Accounts receivable - otherPrepaid expenses
Other
Total current assets

Current liabilities
18,883,962

14,680,828

2,979,150
45,1403,197,268
41,862395

1,334

54,831
9,290

47,914
9,296

21,972,770

17,978,504

Non-current assets
Property, plant and equipment

Operating accounts payable
Short-term loans payable

340,740

242,061

6,000,000
3,000,000

6,000,000
4,000,000

31,500,000

25,500,000

Accrued expenses

95,457518,246

110,421429,156

Dividends payable

8,289

7,185

Income taxes payable
Accrued consumption taxes

606
9,626

879
108,676
913,270

Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – other

Buildings

19,098,719

17,209,486

Advances received

999,415Structures

34,89231,017

Deposits received

322

916

Machinery and equipment

31,04828,642

Total current liabilities

42,472,704

37,312,567

Tools, furniture and fixtures

Non-current liabilities

26,08623,807

Land

125,628,932

114,585,335

Investment corporation bonds

11,000,000

9,000,000

Buildings in trust

18,994,259

21,141,169

Long-term loans payable

103,500,000

109,500,000

Structures in trust

49,59775,775Tenant leasehold and security deposits

9,618,022

7,565,023

Machinery and equipment in trust

29,92255,456

Tenant leasehold and security deposits in trust

934,875

932,717

Tools, furniture and fixtures in trust

36,90736,976

Deferred tax liabilities

656,564

803,422

Land in trust

142,307,259

153,797,970

125,709,462

127,801,163

Total property, plant and equipment

306,237,624

306,985,638

168,182,166

165,113,730

Other

240

240

Total intangible assets

240

240

153,990,040

153,990,040

Guarantee deposits

10,00010,000Long-term prepaid expenses

16,00438,968

Total non-current liabilities
Total liabilities

Intangible assets

Investments and other assets

Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary retained earnings

Other

3,208

2,815

Reserve for reduction entry

1,074,447

1,430,418

Total investments and other assets

29,212

51,783

Total voluntary retained earnings

1,074,447

1,430,418

307,037,662

Unappropriated retained earnings

5,041,970

4,537,379

Total surplus

6,116,418

5,967,798

160,106,458

159,957,838

Total non-current assets

306,267,077

Deferred assets
Investment corporation bond issuance costs

48,77755,401

Total deferred assets

48,77755,401

328,288,624

325,071,568

Total assets

Total unitholders' equity
Total net assets
Total liabilities and net assets

160,106,458

159,957,838

328,288,624

325,071,568*The balance of internal reserves as of March 31, 2022 was 2,233 million yen(total amount of deferred tax liabilities and a reserve for reduction entry)

33

Statements of Income and Retained Earnings▮ Statements of Income
For the period
from April 1, 2021
to September 30, 2021
7,485,180

6,739,063

283,283

337,252

Gain on sale of investment property

1,433,905

1,452,077

Total operating revenue

9,202,368

8,528,392

Other lease business revenue

Operating expenses
3,152,474

3,025,005

Asset management fee

335,797

329,091

Asset custody fee

12,893

13,102Administrative service fees

58,35845,869

Expenses related to rent businessDirectors' compensations

3,600

3,600

Other operating expenses

75,764

69,376

Total operating expenses

3,638,888

3,486,044

5,563,480

5,042,348

Interest income

107

104

Reversal of dividends payable

782

753

-

110

890

969

Interest expenses

325,876

325,041

Interest expenses on investment corporation bonds

22,802

22,833

Amortization of investment corporation bondissuance costs

9,146

8,933

Operating income
Non-operating income

Interest on refund
Total non-operating income

5. Reference(Breakdown of Real Estate Leasing Business Income)Thousands of yen
For the period
from October 1, 2021
to March 31, 2022

Operating revenue
Lease business revenue

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Thousands of yen

A. Rental revenues
Lease business revenue
Rent
Common charges
Land leasing revenues
Other lease business revenue
Total rental revenues
B. Property-related expenses
Property management expenses
Property management fees
Utilities
Property and other taxes
Casualty insurance
Repair expenses
Depreciation and amortization
Other expenses
Tota property-related expenses
C. Profit and losses from realestate rental business (A-B)

For the period
from April 1, 2021
to September 30, 2021

For the period
from October 1, 2021
to March 31, 2022

7,122,682
238,888
123,609283,283
7,768,463

6,378,952
236,502123,609337,252
7,076,315

721,885
186,415
958,141
17,371
126,339
1,113,968
28,353
3,152,474

694,543
212,236
872,062
18,49472,707
1,125,735
29,2253,025,005

4,615,989

4,051,310

Non-operating expenses

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

Other
Total non-operating expenses

Income taxes - current
Income taxes - deferred
Total income taxes

623

895

163,408

146,858

164,031

147,753

Profit

5,041,443

4,537,379

Retained earnings at beginning of period

527
5,041,970

4,537,379

Unappropriated retained earnings

34

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Statement of Cash Distributions / Statements of Cash Flows▮ Statement of Cash Distributions

5. Reference▮ Statements of Cash Flows(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
Ⅴ．Retained earnings carriedforward

For the period
from April 1, 2021
to September 30, 2021

For the period
from October 1, 2021
to March 31, 2022

5,041,970,716

4,537,379,582

134,114,736

134,114,736

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

454,094,318--

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

5,205,474
1,113,968
9,146
(107)
348,678(1,727)
69,932(187,887)

4,685,132
1,125,735
8,933
(104)
347,875(522)(80,181)
99,050(10,782)(86,145)

Decrease due to sale of investment property
Other, net

12,538,270

12,520,098

53,598(106,676)

Subtotal

19,138,564

18,513,195

107(353,821)

104(346,685)

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities

(972)

(622)

18,783,877

18,165,991

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 in trust
Proceeds from tenant leasehold and security deposits in trust
Other(263,209)(34,126)(14,180,295)(14,344,757)(195,043)
250,001(2,385,217)
326,611(55,395)(16,369)

57,831

5,120

393

393

(14,385,718)(16,448,345)(4,000,000)
14,000,000

14,500,000(12,000,000)(14,500,000)

Cash flows from financing activities
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-

2,000,000

Redemption of investment corporation bonds-(3,000,000)

Payments for investment corporation bond issuance costs-(15,558)(5,114,632)(7,114,632)(4,687,104)(5,072,662)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(2,716,473)(3,985,015)

24,579,586

21,863,112

Cash and cash equivalents at end of period

21,863,112

17,878,096

Dividends paid

35

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Changes in Indicators

5. Reference（Unit:million yen）

Period ended
March 2020
(36th fiscal
period)Period ended
September 2020
(37th fiscal
period)Period ended
March 2021
(38th fiscal
period)Period ended
September 2021
(39th fiscal
period)Period ended
March 2022
(40th fiscal
period)Formula

8,869

8,882

8,789

9,202

8,528

－

－

－

1,433

1,452

Operating expenses

3,471

3,445

3,325

3,638

3,486

Operating income

5,398

5,437

5,464

5,563

5,042

Ordinary income

4,996

5,059

5,116

5,205

4,685

Profit

4,995

5,058

5,115

5,041

4,537

Total distribution

4,996

5,058

5,115

4,686

4,217

Total assets

329,302328,915330,301

328,288

325,071

Interest-bearing liabilities

155,000

155,000

157,000

155,000

154,000

Total net assets

160,060

160,123

160,180

160,106

159,957

Unrealized gain/loss

56,42336,21537,00535,09238,824NAV

216,484

196,338

197,185

195,198

198,782 NAV = Total net assets + Unrealized gain/loss

Profits from real estate rental business

5,855

5,890

5,909

4,615

4,051

Depreciation and amortization

1,292

1,308

1,126

1,113

1,125

NOI

7,148

7,199

7,036

5,729

5,177 NOI = Profits from real estate rental business + Depreciation and amortization

FFO

6,287

6,366

6,242

4,721

4,211 FFO = Profit + Depreciation and amortization – Gain/loss on sale of real estate

590

216

416

287

Net cash flows

6,557

6,982

6,619

5,442

4,963 NCF = NOI – Capital improvements

ROA (annualized)

3.0%

3.1%

3.1%

3.2%

2.9% ROA = (Ordinary income / Total assets) / 6 × 12 * Annualized

ROE (annualized)

6.2%

6.3%

6.4%

6.3%

5.7% ROE = (Profit / Total net assets) / 6 × 12 * Annualized

LTV ratio

47.1%

47.1%

47.5%

47.2%

47.4% LTV = Interest-bearing liabilities / Total assets

1,320,000units

1,320,000units

1,320,000units

1,320,000units

1,320,000units

3,785yen

3,832yen

3,875yen

3,550yen

3,195yen

Total net assets per unit

121,258yen

121,305yen

121,348yen

121,292yen

121,180yen

NAV per unit

164,003yen

148,741yen

149,382yen

147,877yen

150,592yen

FFO per unit

4,763yen

4,823yen

4,728yen

3,576yen

3,190yen

Operating revenues
Gain on sale of real estate

Capital improvements

Total number of outstanding investment units
Distribution per unit

213

36

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Changes in Asset Size, LTV and Distribution Per Unit
October 2008
May 2010
Capital increase through
Capital increasea private placement through public offering
4,615

(yen)

Distribution
per unit

3,853

3,498
3,048

4,592

4,097

4,001

4,075

3,749

3,684

October 2013
Capital increase
through public offering

4,015

3,521

3,900

3,927

3,954
3,566

3,763

53.7%
43.5%

42.4%

LTV

33.0%
28.1%

42.5%

35.3%

3,921
3,557

43.6%

46.9% 46.1%

44.3%

45.9%

49.6%

47.2% 48.8%
46.2%

48.5%

48.4%

3,520

3,603

48.2%

48.0%

48.6%

3,832

3,666 3,709

3,570

3,446

53.0%
(Loan To Value ratio)

4,964

4,530

4,534

3,852

3,300

5. Reference

3,650

3,785

3,650

3,550

3,875
3,195

48.0%

47.2%

46.4%

47.1%

47.2%

47.1%

47.2%

47.5%

47.1%

47.4%
47.2%

37.7% 37.9%

32.9%

21.5%

16properties(Billion yen)324.7

(Total acquisition price of properties owned at the end of the fiscal period)

Billion

350

yen

300

Asset size

250
200

7properties
107.2

150

Billion
yen

100
50
0

Acquired Pak Lane
Plaza Acquired
Osaki MT Building
Acquired Ito-Yokado
Shin Urayasu
Listed on TSE

Sold Hitachi Head Office
Building
Acquired Akasaka-mitsuke
MT Building
Acquired Hotel Okura Kobe

Additionally acquired
Osaki MT Building

Acquired ON Building

Acquired Shinbashi
Ekimae MTR Building

Period
ended
Sep.
2014
(25th
fiscalperiod)Period
ended
Mar.
2012
(20th
fiscalperiod)Period
ended
Sep.
2009
(15th
fiscalperiod)Period
ended
Mar.
2007
(10th
fiscalperiod)Period Period
ended ended
Sep.
Mar.
2004
2004
(5th
(4th
fiscalfiscalperiod) period)

Partial disposalof Frespo Inage

Acquired Tokyo Shiodome Building
Sold Akasaka-mitsuke MT Building(Note) Investment units were split at a ratio of 1 to 5 as of April 1, 2014. Distribution per unit before
the split is the actual distribution per unit divided by five and rounded down to the nearest yen.

Acquired
SHIBUYAFLAG
Acquired Kohnan
SagamiharaNishihashimot
Acquired Tenjin
Prime

Sold Ginza MTR Building(Remaining co-owned
interest: 50%)
Acquired Midosuji MTR Building
Sold Osaka Marubeni Building
Acquired Kioicho Building
Partially sold Ginza MTR Building
Disposed Mita MT Building
Additionally acquired Osaki MT Building

Period
ended
Mar.
2022
(40th
fiscalperiod)Period
ended
Sep.
2019
(35th
fiscalperiod)Period
ended
Mar.
2017
(30th
fiscalperiod)Acquired
Hiroo MTR
Building
Sold Ito-Yokado
Shin-Urayasu

Acquired Kamiyacho
Trust Tower
Partially sold Tokyo
Shiodome Building

Additionally Acquired Kamiyacho Trust Tower
Partially sold Tokyo Shiodome Building

37

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Property Portfolio List as of the End of the Fiscal Period

5. Reference(Million yen)

Use

OfficeBuilding

RetailFacility

Hotel

Name

Construction
completion

Location

Acquisitiondate

Acquisition priceAppraisal value
Book value at
end of 40th fiscal at end of 40th
fiscal period
period

Ratio

NOI
Yield

Tokyo Shiodome Building

Minato Ward,
Tokyo

Jan. 2005

Apr. 2010

82,53925.4%

75,045

81,400270

0.7%

ON Building

Shinagawa Ward,
Nov. 1990
Tokyo

Aug. 2008

39,90012.3%

38,89835,100627

3.1%

Kioicho Building

Chiyoda Ward,
Tokyo

Nov. 1989

Oct. 2014

34,30010.6%

33,08038,000581

3.4%

Kamiyacho Trust Tower

Minato Ward,
Tokyo

Mar. 2020

Jul. 2021, etc.

27,9608.6%

28,01831,100471

3.4%

Osaki MT Building

Shinagawa Ward,
Jul. 1994
Tokyo

Mar. 2005, etc.

14,386

4.4%

12,92417,000298

4.2%

Midosuji MTR Building

Chuo Ward,
OsakaMar. 1999

Apr. 2015

10,170

3.1%

9,907

10,500217

4.3%

Hiroo MTR Building

Shibuya Ward,
Tokyo

Nov. 1992

Jan. 2018

8,100

2.5%

8,338

8,440

140

3.5%

Tenjin Prime

Chuo Ward,
Fukuoka

Oct. 2008

Jul. 2012, etc.

7,050

2.2%

6,690

9,680

196

5.6%

Shin-Yokohama TECH Building

Kohoku Ward,
Yokohama

Feb. 1986, etc. Nov. 2003

6,900

2.1%

6,719

8,170

146

4.3%

SHIBUYA FLAG

Shibuya Ward,
Tokyo

Aug. 2009

Apr. 2013

32,0409.9%

32,41640,700669

4.2%

Shinbashi Ekimae MTR
Building

Minato Ward,Tokyo

Apr. 1999

Apr. 2007

18,0005.5%

17,25721,800272

3.0%

Ito-Yokado Shonandai

Fujisawa City,
Kanagawa

Nov. 2002

Mar. 2003

11,600

3.6%

9,725

11,700325

5.6%

Kohnan SagamiharaNishihashimoto

Midori Ward,
Sagamihara

Aug. 2005

Oct. 2012

7,460

2.3%

7,095

8,500

228

6.1%

Frespo Inage

Inage Ward,
Chiba

－

Mar. 2002

2,100

0.6%

2,193

2,610

115

11.0%

Hotel Okura Kobe

Chuo Ward, Kobe Mar. 1989

Sep. 2006

19,0005.9%

15,564

16,900525

5.5%

Shibuya Ward,Tokyo

Jun. 1988

Dec. 2004

3,200

1.0%

3,110

4,210

88

5.5%

－

－

324,705

100.0%

306,985

345,810

5,177

3.2%

Residential Park Lane Plaza

Total

－

* The notes on this page constitute an integral part of this presentation. See P.50~P51

38

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Appraisal Values of Portfolio Properties at the Fiscal Period-End

5. Reference(Million yen)

End-of-period book value

Use

Acquisition
price

Name

Tokyo Shiodome Building

75,045

94,90081,400

Direct reduction method

Difference(Note1)(81,400)

Cap rate
Comparison
Periodwith the
Periodended
previous
ended
SeptemberMarch 2022 fiscal period
2021

Appraiser
Discount
rate

Terminal
cap rate(Note 5)

- 13,500

82,539

3.3%

3.3%

－

3.2%

3.3%

Richi Appraisal(－)

ON Building

39,90038,98238,89833,80035,100

1,300

3.5%

3.4%

-0.1%

3.1%

3.5%

Japan Real Estate

Kioicho Building

34,30033,112

33,08038,00038,000

－

3.2%

3.2%

－

3.0%

3.4%

Daiwa Real Estate

14,03628,01815,55031,10015,550
2.6%

2.6%

－

2.5%

2.7%

Daiwa Real Estate

Kamiyacho Trust Tower
OfficeBuilding

Period ended
Period ended
Period ended
Period ended
September
SeptemberMarch 2022
March 2022
2021
2021

87,783(Deducting the amount equivalent to the sharein the applicable sale on October 1,2021)

End-of-period appraisal value

Discounted cash flow(DCF) method(Adding the amount equivalent to the additional
acquisition on October 1,2021)

27,960(Note2)(31,100)(－)

Osaki MT Building

14,386

12,954

12,924

16,80017,000

200

3.4%

3.3%

-0.1%

3.0%

3.4%

Japan Real Estate

Midosuji MTR Building

10,170

9,949

9,907

10,50010,500

－

3.6%

3.6%

－

3.4%

3.8%

Daiwa Real Estate

Hiroo MTR Building

8,100

8,354

8,338

8,440

8,440

－

3.6%

3.6%

－

3.4%

3.8%

Daiwa Real Estate

Tenjin Prime

7,050

6,605

6,690

9,080

9,680

600

3.9%

3.7%

-0.2%

3.5%

3.8%

Japan Real EstateShin-Yokohama TECH Building

6,900

6,774

6,719

7,970

8,170

200

4.6%

4.6%

－

4.4%

4.9%

Chuo-Nittochi

SHIBUYA FLAG

32,04032,43732,41640,50040,700

200

3.2%

3.2%

－

3.0%

3.4%

Japan Real Estate

Shinbashi Ekimae MTR Building

18,00017,274

17,25722,00021,800

- 200

3.6%

3.6%

－

3.4%

3.8%

Chuo-Nittochi

Ito-Yokado Shonandai

11,600

9,779

9,725

11,70011,700

－

5.3%

5.3%

－

5.0%

5.5%

Japan Real Estate

Kohnan Sagamihara-Nishihashimoto

7,460

7,130

7,095

8,500

8,500

－

5.2%

5.2%

－

4.9%

5.4%

Japan Real EstateFrespo Inage

2,100

2,193

2,193

2,610

2,610

－ －(Note3) －(Note3)

－

7.9%

Hotel Okura Kobe

19,00015,747

15,564

16,90016,900

－

4.9%

4.9%

－

4.7%

5.0%

Richi Appraisal

Residential Park Lane Plaza

3,200

3,121

3,110

4,080

4,210

130

3.4%

3.3%

-0.1%

4.0%

3.0%

Chuo-Nittochi

RetailFacility

Hotel－(Note4) Japan Real Estate

Difference
Period ended
Period ended
SeptemberMarch 2022
2021

Total

35,09238,824

Difference

3,732* The notes on this page constitute an integral part of this presentation. See P.50~P51

39

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Changes in Occupancy Rate

5. Reference▮ Monthly Occupancy Rates for Each Use Category (from end of previous period to end of current period)(Period ended
September 2021)
September 30, 2021

Use
Office Building

Master lease basis(Sublease basis)

Retail Facility
Other
Total

Master lease basis(Sublease basis)

October 31,2021

98.4%(80.6%)
99.7%
100%
99.1%
(91.9%)

November 30,2021

December 31,2021

98.4%(84.8%)
100%
100%
99.3%
(93.8%)

94.9%(80.4%)
100%
100%
97.6%
(92.0%)

98.4%(84.2%)
100%
100%
99.3%
(93.6%)

January 31,2022

February 28,2022

94.2%(79.9%)
94.5%
100%
95.4%
(89.7%)(Period ended
March 2022)
March 31, 2022

95.1%
(81.1%)
94.5%
100%
95.8%
(90.2%)

95.4%(81.8%)
94.5%
100%
96.0%
(90.5%)▮ Property-Related Occupancy Rate (Most Recent 5 Fiscal Periods)
Name

Use

Tokyo Shiodome Building（Note2）

ON Building

OfficeBuilding

March 31, 2020
(End of 36th fiscal period)

September 30, 2020
(End of 37th fiscal period)

March 31, 2021
(End of 38th fiscal period)

100%

100%

100%

100%
99.9%
（98.7%）

100%
99.9%（98.7%）

100%
90.8%（89.5%）

－

－

－

100%
（99.1%）
100%（98.4%）
100%

100%（85.0%）
100%（95.6%）
100%

September 30, 2021
(End of 39th fiscal period)

March 31, 2022
(End of 40th fiscal period)

100%(53.5%)
100%
89.7%(89.7%)
100%(97.3%)
100%(85.8%)
100%(100%)
87.5%

100%(61.3%)
100%
96.3%(95.6%)
100%(99.3%)
100%(95.2%)
100%(100%)
87.5%

Kioicho Building（Note3）Kamiyacho Trust Tower（Note4）

Osaki MT Building（Note5）

Midosuji MTR Building（Note6）

Hiroo MTR Building（Note7）100%（97.8%）
100%（100%）
100%

Tenjin Prime（Note7）

100%

100%

100%

100%

100%

100%

100%

100%

100%

59.9%

Shin-Yokohama TECH Building（Note7）SHIBUYA FLAG

100%

100%

92.2%

92.2%

100%

Shinbashi Ekimae MTR Building

100%

100%

100%

100%

0%

Ito-Yokado Shonandai

100%

100%

100%

100%

100%

Kohnan Sagamihara-Nishihashimoto

100%

100%

100%

100%

100%

Frespo Inage

100%

100%

100%

100%

100%

Hotel

Hotel Okura Kobe

100%

100%

100%

100%

100%

Residential

Park Lane Plaza

92.9%
99.9%
(99.8%)

100%
99.9%(99.9%)

95.9%
99.3%
(98.6%)

100%
99.1%(91.9%)

100%
96.0%(90.5%)

RetailFacility

Total (Note 8)* The notes on this page constitute an integral part of this presentation. See P.50~P51

40

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Overview of Occupancy Rate and Lease Contracts at the Fiscal Period-End
Use

Total
Occupancy
number ofratetenants

Name
Tokyo Shiodome
Building(Note1)

ON Building

OfficeBuilding

100%

1

96.3%
(95.6%)
100.0%(99.3%)
100%(95.2%)
100%(100%)

Type of lease contract

Lease contract expiry

Mori Trust Co., Ltd.

Master lease(Note1)

Fixed-termbuilding lease(Offices/retailers) March 31, 2026
(Hotel) December 31, 2035

Nocancellation

Kobe Steel Ltd.

Direct lease

Building lease

March 31, 2023

No
cancellation

－

－

－

Master lease(Note3)

Building lease

March 31,2030

Nocancellation

Master lease(Note1)

Fixed-termbuilding lease

March 31, 2025

No
cancellation

Master lease(Note4)

Building lease

March 31, 2023

37
－
(71)
1
Mori Trust Co., Ltd.
(7)
1Mori Trust Co., Ltd.
(13)
1
Tokyo Capital(32) Management Co., Ltd.

(Note2)

Kamiyacho Trust Tower(Note3)

Osaki MT Building(Note4)

Midosuji MTR Building(Note5)

Hiroo MTR Building(Note6)

87.5%

8

－

－

－

－

Tenjin Prime(Note6)

100%

14

－

－

－

－

59.9%

14

－

－

－

－

100%

3

H&M Hennes & Mauritz
Japan KK

Direct lease(Note6)

Undisclosed(Note7)

Undisclosed(Note7)

Shinbashi Ekimae MTR
Building

0%

0

－

－

－

－

Ito-Yokado Shonandai

100%

1

Ito-Yokado Co., Ltd.

Master lease

Building lease

November 20, 2022(Note8)Nocancellation

Kohnan SagamiharaNishihashimoto100%

1 Kohnan Shoji Co., Ltd.

Master lease

Fixed-termbuilding lease

September 27, 2023

No
cancellation

Frespo Inage

100%

1

Daiwa Lease Co, Ltd.

Direct lease

Land lease

December 2, 2027

No
cancellation

Hotel Okura Kobe

100%

1

Hotel Okura Kobe

Direct leasebuilding lease

March 31, 2032

Nocancellation

100%

18

－

－

－

－

96.0%
(90.5%)

103(197)

SHIBUYA FLAG

Hotel

1
(12)

Major tenant/master lessee

Kioicho Building

Shin-Yokohama TECH
Building

RetailFacility

100%(61.3%)

5. Reference

Residential Park Lane Plaza

Total （Note9）(Note6)* The notes on this page constitute an integral part of this presentation. See P.50~P51

41

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (1)Location
Construction completion
Acquisition date
Acquisition priceBook value
Appraisal value
Total floor space
PML (Note 5)
Rental revenues (thousand yen)

Tokyo Shiodome Building

ON Building

Minato Ward, Tokyo

Shinagawa Ward, Tokyo

Office Building
Kioicho Building
Kamiyacho Trust Tower

Chiyoda Ward, Tokyo

5. Reference

Osaki MT Building

Midosuji MTR Building

Minato Ward, Tokyo

Shinagawa Ward, Tokyo

Chuo Ward, Osaka
March 1999
April 2015
10,170million yen
9,907million yen
10,500million yen
15,129.16㎡
2.1%

January, 2005

November 1990

November 1989

March, 2020

July 1994(Renovated in 2008)

April 2010
82,539million yen
75,045million yen
81,400million yen
191,394.06㎡(Note1)
6.0%

August 2008
39,900million yen
38,898million yen
35,100million yen
32,812.27㎡
8.0%

October 2014
34,300million yen
33,080million yen
38,000million yen
63,535.55㎡(Note2)
11.3%

July 2021, and other
27,960million yen
28,018million yen
31,100million yen
196,037.12㎡(Note3)
6.5%

March 2005, and other
14,386million yen
12,924million yen
17,000million yen
26,980.68㎡(Note4)
11.5%

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Rental revenues

1,829,798

878,784

964,625

982,049

78,950533,103

334,026

340,037

302,332

318,730

Rent

1,798,067

878,784

876,052

893,119

77,092522,272

333,522339,558

266,024

281,261

Common charges－－

10,168

9,274

－

－

－

－

6,745

6,745

Land leasing revenues

－

－

－

－

－

－

－

－

－

－

Other rental revenues

31,730－78,40479,655

1,857

10,831504

478

29,56230,723

Property-related expenses

1,012,450

832,246

546,431551,639

36,575

145,357

101,261

99,877150,429

146,159

Property and other taxes

446,018

361,920

88,401

88,401－－

38,154

38,14840,586

40,586

Property taxes

446,018

361,920 Undisclosed Undisclosed(Note6)(Note6)－

87,076

87,076－－38,154

38,14840,586

40,586

1,325

1,325

－

－

－

－

－

－

288,531

246,820309,723

312,106

15,476

61,291

4,826

3,193

64,64060,183

277,719

230,440

243,723240,952

11,303

46,181－－

31,111

27,306－－52,97356,857

3,688

13,824－－

22,59825,368

3,004

3,760

1,451

1,495

73

291

794

816

557

572

－

－

800

800

375

750

－

－

500

500

Other taxes
Overhead expenses
Property management fees
Utilities
Casualty insurance
Trust fees
Other expenses
Depreciation and amortization
Profits and losses from real estate rental business
Earnings before depreciation and amortization (NOI)NOI yield (Note 7)

－

7,807

12,61910,77512,000

36

244

4,032

2,377

9,872

6,436

277,901

223,504

148,305

151,131

21,09884,06658,28058,53445,20245,389817,347

46,538543,843

535,416

418,194

430,410

42,374

387,746

232,764

240,160

151,903

172,570

1,095,248

270,043635,751

627,655

566,500

581,541

63,473471,812

291,045

298,695

197,106

217,960

0.7%

3.1%

* The notes on this page constitute an integral part of this presentation. See P.50~P51

3.4%

3.4%

4.2%

4.3%

42

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (2)Location

Hiroo MTR Building

Office Building
Tenjin Prime

Shibuya Ward, Tokyo

Shin-Yokohama TECH
Building

SHIBUYA FLAG

Retail Facility
Shinbashi Ekimae MTR
Building

Ito-Yokado Shonandai

Chuo Ward, Fukuoka

Kohoku Ward, Yokohama

Shibuya Ward, Tokyo

Minato Ward, Tokyo

Fujisawa City, Kanagawa

August 2009

April 1999

November 2002

April 2013
32,040million yen
32,416million yen
40,700million yen
7,766.49㎡
11.9%

April 2007
18,000million yen
17,257million yen
21,800million yen
7,820.45㎡
12.2%

March 2003
11,600million yen
9,725million yen
11,700million yen
53,393.66㎡
14.0%

Construction completion

November 1992

October 2008

Building A: February 1986
Building B: February 1988

Acquisition date
Acquisition priceBook value
Appraisal value
Total floor space
PML (Note 5)

January 2018
8,100million yen
8,338million yen
8,440million yen
6,709.80㎡
7.3%

July 2012, and other
7,050million yen
6,690million yen
9,680million yen
7,722.04㎡
6.4%

November 2003
6,900million yen
6,719million yen
8,170million yen
25,187.22㎡
8.7%

Rental revenues (thousand yen)

Period ended
September 2021

Period ended
March 2022

5. Reference

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Rental revenues

185,378

177,211

251,456

254,115354,797

265,490

460,200

308,045

375,045

375,045

Rent

141,295

135,509214,643

218,319

325,775

237,024

459,000

229,500

375,000

375,000

Common charges

19,901

18,40819,53019,530

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

Land leasing revenues
Other rental revenues

24,18023,293

17,281

16,26529,022

28,465

1,200

78,54545

45

Property-related expenses

51,30052,463

91,52088,667

193,335

189,575

52,68452,461

139,991

110,729

Property and other taxes

11,698

11,69827,31827,317

29,707

29,702

34,26834,26639,00338,998Property taxes

11,575

11,57527,31827,317

29,70734,26639,00338,998

122

122

－

－

－

29,702 Undisclosed Undisclosed(Note6)(Note6)－34,268Other taxes

－

－

－

－

Overhead expenses

24,35825,33633,27230,411

92,852

89,121

1,404

1,184

40,110

10,2301,620

Property management fees

5,155

4,995

8,978

7,460

57,59056,277

1,200

975

1,620

Utilities

15,666

15,87813,59013,62523,606

26,046

－

－

－

－

230

236

205

211

805

827

204

209

981

1,004

Casualty insurance
Trust fees
Other expenses

400

400

750

750

－

－

－

－

－

－

2,906

3,825

9,747

8,364

10,850

5,969

－

－

37,5097,606

Depreciation and amortization

15,242

15,42830,93030,93870,77570,752

17,01017,01060,87761,500

Profits and losses from real estate rental business

134,078

124,748

159,935

165,447

161,462

75,914

611,197645,868

407,515

255,584

235,053

264,316

Earnings before depreciation and amortization (NOI)

149,321140,176

190,866

196,385

232,238

146,667

635,146

669,841

424,526

272,595

295,930

325,816

NOI yield (Note 7)

3.5%

5.6%

* The notes on this page constitute an integral part of this presentation. See P.50~P51

4.3%

4.2%

3.0%

5.6%

43

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (3)Retail Facility
Kohnan SagamiharaFrespo Inage
Nishihashimoto

Hotel
Hotel Okura Kobe

5. Reference

Residential
Park Lane Plaza

Total

Location
Construction completion
Acquisition date
Acquisition priceBook value
Appraisal value
Total floor space
PML (Note 5)
Rental revenues (thousand yen)

Inage Ward, Chiba

Chuo Ward, Kobe

Shibuya Ward, Tokyo－

August 2005－

March 1989
(Expanded March 1995)

June 1988－

October 2012
7,460million yen
7,095million yen
8,500million yen
40,283.77㎡
13.5%

March 2002
2,100million yen
2,193million yen
2,610million yen

September 2006
19,000million yen
15,564million yen
16,900million yen
72,246.86㎡
17.8%

December 2004
3,200million yen
3,110million yen
4,210million yen
5,246.78㎡
14.9%－
324,705million yen
306,985million yen
345,810million yen

Midori Ward, Sagamihara

Period ended
September 2021

Period ended
March 2022

Rental revenues（39,556.71㎡）(Note8)－
Period ended
September 2021

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

Period ended
September 2021－
5.5% (Note9)

Period ended
March 2022

Period ended
September 2021

Period ended
March 2022

123,609

123,609622,372

618,490

108,405

109,378

7,768,463

7,076,315

Rent

－

－

622,372

618,490

98,10999,877

7,122,682

6,378,952

Common charges

－

－

－

－

9,043

9,043

238,888236,502

Land leasing revenues

123,609

123,609

－

－

－

－

123,609

123,609

Other rental revenues

－

－

－

－

1,252

457

283,283

337,252

8,020

8,019

298,262

294,81435,13434,927

3,152,474

3,025,005

Property-related expenses
Property and other taxes
Property taxes
Other taxes

Undisclosed Undisclosed(Note6)(Note6)

7,270

7,269

70,24570,244

7,539

7,534

958,141

872,062

7,270

7,269

70,24570,244

7,539

7,534

954,741

870,611

－

－

－

－

－

－

3,399

1,451

750

750

26,80622,704

13,988

13,8381,080,365

1,027,207

Property management fees

－

－

－

－

9,730

8,951

721,885

694,543

Utilities

－

－

－

－

1,348

1,507

186,415

212,236

7,081

7,034

160

165

17,371

18,494

Overhead expenses

Casualty insurance－－

Trust fees

750

750

2,000

2,000

－

－

7,225

7,600

Other expenses－－

17,724

13,669

2,748

3,214

147,468

94,332－－201,210201,865

13,607

13,554

1,113,968

1,125,735

Profits and losses from real estate rental business

Depreciation and amortization
187,348

192,871

115,588

115,589

324,109323,676

73,271

74,451

4,615,989

4,051,310

Earnings before depreciation and amortization (NOI)

225,016

228,716

115,588

115,589

525,320

525,541

86,87888,0055,729,957

5,177,045

NOI yield (Note 7)

6.1%

11.0%

* The notes on this page constitute an integral part of this presentation. See P.50~P51

5.5%

5.5%

3.2%

44

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Interest-Bearing Liabilities

5. Reference▮ Short-term loans
LenderOutstanding balanceat end of period

Averageinterest rate

2,000
1,000
2,500
500
6,000

0.20%
0.22%
0.22%
0.22%

Floating

Mizuho Bank, Ltd.
Resona Bank, Limited.
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited.
Total(Million yen)
Draw down date

April 9, 2021
August 31, 2021
October 8, 2021
October 15, 2021

▮ Long-term loans
LenderApril 8, 2022
August 31, 2022
October 7, 2022
October 14, 2022

(Million yen)
Averageinterest rate

4,000
1,000
2,000
1,000
2,000
500
3,500
2,000
1,000
1,500
500
2,500
2,000
1,000
1,000
3,500
1,000
500
1,500
1,000
1,000
500
500
1,000
3,000
1,500
2,000
2,000
3,000
2,000
1,000
3,000
1,000
3,000
1,000
500
1,500
500
3,000
1,000
1,000
1,000
500
1,000
2,500
4,000
1,000
3,000
3,000
1,000
1,000
1,500
1,000
1,500
1,000

0.47%
0.47%
0.41%
0.44%
0.80%
0.43%
0.44%
0.40%
0.47%
0.44%
0.44%
0.49%
0.49%
0.45%
0.45%
0.47%
0.43%
0.49%
0.48%
0.51%
0.48%
0.43%
0.54%
0.46%
0.17%
0.64%
0.54%
0.57%
0.27%
0.36%
0.36%
0.56%
0.56%
0.29%
0.30%
0.43%
0.56%
0.56%
0.32%
0.65%
0.65%
0.34%
0.65%
0.64%
0.33%
0.37%
0.32%
0.46%
0.68%
0.43%
0.42%
0.47%
0.52%
0.41%
0.41%

Draw down date

Repayment date

April 11, 2017
April 11, 2017
April 13, 2018
April 24, 2017
April 30, 2015
August 30, 2018
August 31, 2017
August 31, 2016
September 29, 2017
January 19, 2018
January 19, 2018
February 28, 2018
February 28, 2018
February 29, 2016
February 29, 2016
April 12, 2016
April 22, 2016
April 24, 2018
August 31, 2016
August 31, 2018
August 31, 2016
August 31, 2018
September 29, 2017
October 18, 2016
August 30, 2019
February 28, 2017
March 11, 2016
March 19, 2018
October 9, 2020
April 11, 2019
April 11, 2019
April 24, 2018
May 31, 2018
October 9, 2020
April 9, 2021
December 26, 2019
January 19, 2018
January 19, 2018
February 28, 2020
February 28, 2018
February 28, 2018
February 28, 2020
February 28, 2018
March 19, 2018
April 9, 2021
April 13, 2020
April 13, 2021
April 24, 2019
August 31, 2018
January 19, 2022
January 31, 2020
February 28, 2022
February 28, 2019
February 26, 2021
March 12, 2021

April 11, 2022
April 11, 2022
April 13, 2022
April 22, 2022
April 28, 2022
August 30, 2022
August 31, 2022
August 31, 2022
September 30, 2022
January 19, 2023
January 19, 2023
February 28, 2023
February 28, 2023
February 28, 2023
February 28, 2023
April 12, 2023
April 21, 2023
April 24, 2023
August 31, 2023
August 31, 2023
August 31, 2023
August 31, 2023
September 29, 2023
October 18, 2023
February 29, 2024
February 29, 2024
March 11, 2024
March 19, 2024
April 9, 2024
April 11, 2024
April 11, 2024
April 24, 2024
May 31, 2024
October 9, 2024
October 9, 2024
December 26, 2024
January 17, 2025
January 17, 2025
February 28, 2025
February 28, 2025
February 28, 2025
February 28, 2025
February 28, 2025
March 19, 2025
April 9, 2025
April 11, 2025
April 11, 2025
April 24, 2025
August 29, 2025
January 19, 2026
January 30, 2026
February 27, 2026
February 27, 2026
February 27, 2026
March 12, 2026

500
1,000
500
500
1,000
1,000
500
500
500
1,000
1,000
500
500
500
1,000
3,000
500
500
1,000
1,500
1,500
500
500
500
1,000
1,500
1,000
1,000
1,000
500
1,500
1,500
1,500
1,500
1,000
1,000
1,500
3,000
1,500
500
1,000
1,500
1,000
500
1,500
135,000

Fixed

Outstanding balanceat end of period

Fixed

Mizuho Bank, Ltd.
Aozora Bank, Ltd.
MUFG Bank, Ltd.
The Ashikaga Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mizuho Trust & Banking co., Ltd.
Mizuho Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Nishi-Nippon City Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank of Japan Inc.
Resona Bank, Limited.
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Resona Bank, Limited.
Mizuho Bank, Ltd.
Development Bank of Japan Inc.
Aozora Bank, Ltd.
Shinkin Central Bank
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
The Nishi-Nippon City Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Hachijuni Bank, Ltd.
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.

Repayment date

Nippon Life Insurance Company
Resona Bank, Limited.
Aozora Bank, Ltd.
Resona Bank, Limited.
Development Bank of Japan Inc.
The Nishi-Nippon City Bank, Ltd.
The 77 Bank, Ltd.
Nippon Life Insurance Company
Mitsui Sumitomo Insurance Company, Limited
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Resona Bank, Limited.
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
The Bank of Fukuoka, Ltd.
The NorinchukinBank
Aozora Bank, Ltd.
SUMITOMO LIFEINSURANCECOMPANY
The Bank of Fukuoka, Ltd.
The NorinchukinBank
The Nishi-Nippon City Bank, Ltd.
Resona Bank, Limited.
SUMITOMO LIFEINSURANCECOMPANY
The Dai-ichi Life Insurance Company,Limited
Development Bank of Japan Inc.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank of Japan Inc.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
The 77 Bank, Ltd.
Shinsei Bank, Limited
Mitsui Sumitomo Insurance Company, Limited
Development Bank of Japan Inc.
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Total

0.36%
0.39%
0.72%
0.39%
0.33%
0.41%
0.31%
0.40%
0.39%
0.42%
0.40%
0.56%
0.56%
0.50%
0.51%
0.38%
0.45%
0.59%
0.55%
0.38%
0.48%
0.48%
0.38%
0.56%
0.43%
0.50%
0.63%
0.47%
0.55%
0.47%
0.53%
0.54%
0.51%
0.51%
0.54%
0.53%
0.59%
0.71%
0.59%
0.79%
0.65%
0.76%
0.62%
0.63%
0.66%

September 30, 2020
April 22, 2021
April 24, 2018
May 31, 2021
August 30, 2019
August 31, 2020
August 30, 2019
April 23, 2021
September 30, 2020
December 24, 2021
December 25, 2020
December 26, 2019
December 26, 2019
January 19, 2022
January 31, 2022
February 28, 2020
December 24, 2021
December 26, 2019
January 31, 2022
August 30, 2019
August 31, 2020
August 31, 2020
August 30, 2019
February 28, 2022
March 12, 2020
April 13, 2021
December 26, 2019
January 19, 2021
February 26, 2021
January 19, 2021
March 31, 2021
April 9, 2021
October 11, 2019
October 17, 2019
August 31, 2020
August 31, 2020
October 29, 2021
February 28, 2022
April 23, 2021
February 28, 2022
December 24, 2021
January 19, 2022
August 31, 2021
August 30, 2021
August 31, 2021

▮ Investment corporation bonds
Issue

12th unsecured investment corporation bonds
13th unsecured investment corporation bonds
16th unsecured investment corporation bonds
6th unsecured investment corporation bonds
14th unsecured investment corporation bonds
17th unsecured investment corporation bonds
15th unsecured investment corporation bonds
9th unsecured investment corporation bonds
Total

Balance at end of
period

4,000
3,000
1,000
1,000
1,000
1,000
1,000
1,000
13,000Interest rate

0.10%
0.17%
0.11%
1.07%
0.50%
0.50%
0.75%
1.08%

March 31, 2026
April 22, 2026
April 24, 2026
May 29, 2026
August 31, 2026
August 31, 2026
August 31, 2026
September 18, 2026
September 30, 2026
December 24, 2026
December 25, 2026
December 25, 2026
December 25, 2026
January 19, 2027
January 29, 2027
February 26, 2027
June 24, 2027
June 25, 2027
July 30, 2027
August 31, 2027
August 31, 2027
August 31, 2027
August 31, 2027
August 31, 2027
September 10, 2027
October 13, 2027
December 24, 2027
January 19, 2028
January 19, 2028
January 19, 2028
March 31, 2028
April 7, 2028
April 11, 2028
April 17, 2028
August 31, 2028
August 31, 2028
October 31, 2028
February 28, 2029
April 23, 2029
February 28, 2030
June 24, 2030
July 19, 2030
August 31, 2030
August 31, 2030
February 28, 2031

(Million yen)
Issue date

Maturity dateFebruary 20, 2020
February 25, 2021
February 21, 2022
February 26, 2015
February 25, 2021
February 21, 2022
February 25, 2021
February 23, 2017

February 20, 2023
February 22, 2024
February 28, 2025
February 26, 2027
February 25, 2031
February 27, 2032
February 25, 2036
February 23, 2037

(Note) The short-term loans, long-term loans, and investment corporation bonds are all unsecured and unguaranteed.

Total interest-bearing liabilities at the end of the period:¥154,000 million
Borrowed and issued during the 40th period ended March 2022.

45

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Investors

5. Reference▮ Top 10 Unitholders (Total number of outstanding investment units: 1,320,000)
Unitholders(As of March 31, 2022)

Number of units held

Ownership ratio

MORI TRUST Holdings, Inc.
Custody Bank of Japan, Ltd.(Trust accounts)

350,070
215,401

26.52%
16.32%The Master Trust Bank of Japan, Ltd. (trust account)

136,844

10.37%The Nomura Trust and Banking Co., Ltd. (investment trust)

43,800

3.32%

Custody Bank of Japan, Ltd.(Securities investment trust accounts)

23,926

1.81%

SSBTC CLIENT OMNIBUS ACCOUNT

17,610

1.33%

STATE STREET BANK WEST CLIENT - TREATY 505234

16,828

1.27%

LEGAL + GENERAL ASSURANCE PENSIONS MANAGEMENT LIMITED

16,145

1.22%

JP MORGAN CHASE BANK 385781

13,376

1.01%

THE HACHIJUNI BANK,LTD.

13,0850.99%

847,08564.17%

Total of top 10 unitholders▮ Changes in investment unitholder ratio by owner(End of each fiscal period)
Total number ofoutstanding
10.97%
investment units
as of March 31, 2022: (144,854)
1,320,000
Total number ofoutstanding
11.49%
investment units
as of September 30, (151,681)
2021: 1,320,000
Total number ofoutstanding
11.63%
investment units
as of March 31, 2021: (153,520)
1,320,000▮ Changes in number of investment unitholders by owner(End of each fiscal period)■ Total number of investment unitholders

41.87%(552,683)

42.08%(555,505)

43.40%(572,833)

28.61%(377,595)

28.65%(378,223)

28.71%(378,938)

Individuals and others
Financial institutions (including securities companies)
Other domestic corporations
Overseas corporations and individuals

18.55%(244,868)

17.77%(234,591)

16.27%(214,709)

Period ended
March 2022

18,819Period ended
September 2021

19,386

Period ended
March 2021

19,370■ Individuals and others
Period ended
March 2022

18,127

Period ended
September 2021

18,691

Period ended
March 2021

18,669■ Financial institutions(incl. securities companies)
Period ended
March 2022
Period ended
September 2021
Period ended
March 2021

■ Other domestic
corporations

125

Period ended
March 2022

131

Period ended
September 2021

141

Period ended
March 2021

■ Overseas corporations
and individuals

302

Period ended
March 2022

265

304

Period ended
September 2021

260

318

Period ended
March 2021

242

46

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Changes in Unit Prices

5. Reference▮ Closing Unit price and trading volume February 13, 2004 to March 31, 2022
Unit price（Thousand yen）

Trading volume

Trading volume

Unit price50,000400
October 2008
Capital increase througha private placement

Listed on TSE on
February 13, 2004

May 2010
Capital increase
through public offering

October 2013
Capital increase
through public offering

45,00040,000300
35,00030,00025,000200

20,00015,000100
10,0005,000
0Jan-04Jan-05Jan-06

Jan-07

Jan-08Jan-09Jan-10Jan-11

Jan-12

Jan-13Jan-14Jan-15Jan-16

Jan-17Jan-18Jan-19Jan-20Jan-21

Jan-220*Unit price and trading volume take into account the split of investment units (at the ratio of 1 to 5 units) on April 1, 2014, and figures prior to April 1, 2014 are revised accordingly.

▮ Comparative performance of closing Unit price February 13, 2004 to March 31, 2022
MTR's unit price300

TSE REIT Index

TOPIX

250
200
150
100
50
0
Jan-04Jan-05Jan-06

Jan-07

Jan-08Jan-09Jan-10Jan-11

Jan-12

Jan-13*A base of 100 is used to compare MTR’s unit price at IPO with the TSE REIT Index and TOPIX.

Jan-14Jan-15Jan-16

Jan-17Jan-18Jan-19Jan-20Jan-21

Jan-2247

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Changes in Vacancy Rate and Rent per Unit in Major Cities▮ Tokyo business districts(%)▮ Yokohama business districts

Average rent (right axis)
Average vacancy rate (left axis)

20

5. Reference(yen/month, tsubo)

15

(%)

25,00020

20,00015▮ Osaka business districts

Average rent (right axis)
Average vacancy rate (left axis)(yen/month, tsubo)
12,500(%)

Average rent (right axis)
Average vacancy rate (left axis)

20

(yen/
month, tsubo)
12,50015
10,00010Mar-22Mar-21

Mar-20Mar-19Mar-18Mar-17Mar-16

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-09Mar-085,000

Mar-060

Mar-22Mar-21

Mar-20Mar-19Mar-18Mar-17Mar-16

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-09Mar-08Mar-07

5,000

7,500

5

Mar-077,500

Mar-06Mar-22Mar-21

Mar-20Mar-19Mar-18Mar-17Mar-16

Mar-15Mar-140

Mar-13

5,000

Mar-120

Mar-11

5Mar-1010,000Mar-095

Mar-0810

Mar-07

15,000Mar-0610

10,000Tokyo business districts: Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku,
and Shibuya-ku

Yokohama business districts: Kannai, Yokohama Station, ShinYokohama, and Minato Mirai 21

Osaka business districts: Umeda, Minami-Morimachi, Yodoyabashi and
Honmachi, Senba, Shinsaibashi and Namba,
and Shin-Osaka▮ Fukuoka business districts▮ Sendai business districts▮ Nagoya business districts

Average vacancy rate (left axis)

20

(yen/
month, tsubo)
12,500Fukuoka business districts: Akasaka Daimyo, Tenjin, Yakuin and
Watanabe Dori, Gion and Gofukumachi,
Hakata Station front, Hakata Station Eastand South

12,50010,000

7,500

7,500

5

Sendai business districts: Station front area, area around Ichibancho,
area around prefectural government and city
hall, area east of the station, and neighboring
office5,000

Mar-22Mar-21

Mar-20Mar-19Mar-18Mar-17Mar-16

Mar-15Mar-14Mar-130

Mar-12Mar-22Mar-21

Mar-20Mar-19Mar-18Mar-17Mar-16

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-095,000

Mar-080

Mar-11

5

Mar-07Mar-22Mar-21

Mar-20Mar-19Mar-18Mar-17Mar-16

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-09Mar-08Mar-075,000

Mar-060month, tsubo)10Mar-06

7,500

Average vacancy rate (left axis)

20

10,000
10

5

(yen/

Average rent (right axis)

15

15

10,00010(%)

Mar-1015

Average rent (right axis)

Mar-0912,500(%)

Mar-08Average vacancy rate (left axis)

20

(yen/
month, tsubo)Mar-07

Average rent (right axis)

Mar-06(%)

Nagoya business districts: Meieki, Fushimi, Sakae, and Marunouchi

Source: Prepared by MTR based on data published by Miki Shoji Co., Ltd.

48

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Asset Management Company Remuneration Methods

5. Reference(The end of the fiscal period ended March 2022)
Agreement

Calculation rate forremuneration

For each operation period, the average amount of the total appraisal
value of assets at the end of the settlement period under review andRemuneration the total appraisal value of assets at the end of the previous
Method 1
settlement period shall be multiplied by up to 0.2%, being thepercentage determined by the Board of Management meeting,multiplied by one half.

0.15%(Note 1)

(Total appraisal value of assets at relevant fiscal period-end +Total appraisal value of assets at prior fiscal period-end)
÷ 2 x 0.15% x 1/2

As determined at the Board of Management meeting, the amount of
remuneration shall equal a maximum rate of 3% of distributable
Remuneration income for the relevant fiscal period. Based on standard accounting
Method 2
principles generally accepted in Japan, distributable income isdetermined as the sum of profit before income taxes and losses
carried forward.

1.5%(Note 2)Distributable income x 1.5%

Calculation method

In the event MTR acquires specified assets stipulated in theagreement, the rate of remuneration shall be a set percentage ofthe acquisition price of each property (excluding consumption tax,
local consumption tax and transaction-related expenses), as listed
below.
In the event that MTR implements a merger and, as a result,
succeeds to specified assets stipulated in the agreement from themerger partner, the rate of remuneration shall be a set percentage
Total amount of the acquisition price percentage listed in the left
Remuneration of the appraisal value as of the date of acceptance of the merger for
Refer to left column
column
Method 3each specified asset, as listed below.
The percentages below may be reduced depending on thesurrounding circumstances.
- For acquisitions up to ¥15 billion, remuneration is 0.4% of theamount- For acquisitions from ¥15 billion to ¥30 billion, remuneration is0.1% of the amount- For acquisitions above ¥30 billion, remuneration is 0.05% of theamountIn the event MTR transfers specified assets stipulated in its
Remuneration agreement, the rate of remuneration shall be 0.05% of the transfer
Refer to left column Transfer amount x 0.05%
Method 4amount of each asset transferred (excluding consumption tax, local
consumption tax and transaction-related expenses).

* The notes on this page constitute an integral part of this presentation. See P.50~P51

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Notes (1)Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

P4(Note 1) Asset size is the total acquisition price.
(Note 2) For the properties that adopt the master lease contract with the system of linking rental revenue with rents under the sublease contract or the master lease contract of thepass-through type, the occupancy rate calculated based on the occupancy rate under the sublease contract is stated.
(Note 3) Unrealized profit is the difference between total appraisal value at the end of the fiscal period and total book value at the end of the fiscal period.
(Note 4) NAV per unit: (Year-end net asset value + Unrealized profit and loss) + Number of investment units issued

P12(Note 1) For the properties that adopt the master lease contract, the diagram covers lease areas under sublease contracts. These do not include areas to be vacated, residences and storage spaces.
(Note 2) Negotiation policy determined mainly by factoring in the gap between the target rent at the time of attracting a new tenant and the current rent.
(Note 3) The total may not add up to 100% due to rounding to the first decimal place.

P29(Note 1) “Central Tokyo” refers to Chiyoda, Chuo, Minato, Shinagawa, Shibuya and Shinjuku wards.
(Note 2) “Other Areas” refers to greater Tokyo (Kanagawa, Chiba and Saitama Prefectures, and the Tokyo Metropolitan Area (excluding central Tokyo) and other major regional cities.
(Note 3) Restricted to investments in residential properties and hotels for the foreseeable future.
(Note 4) The investment ratios are based on acquisition prices.

P38(Note 1) For details, please refer to “Appraisal Value of Portfolio Properties at the Fiscal Period-End” and “Portfolio Summary and Breakdown of Property-Related Revenues/Expenses” described below.
(Note 2) NOI earnings yield: NOI in the fiscal period ended September 2021 (annual basis) / Acquisition price

P39(Note 1) For Shiodome Building, We transferred 62,411 / 1,000,000 of the co-ownership interest on October 1, 2021.As of March 31, 2022, We own a co-ownership interest of 375,178 / 1,000,000. The figures in brackets are obtainedby deducting the amount equivalent to the share in the applicable sale from the appraisal value of the portfolio properties at the end of fiscal period ended September 2021.
(Note 2) Kamiyacho Trust Tower was additionally acquired on October 1, 2021. The amount in parentheses is the appraisal value of the property at the end of the fiscal period ended September 2021 plus the appraisal value of theadditional acquisition as of February 28, 2021.
(Note 3) For Frespo Inage, the direct reduction method is not adopted.
(Note 4) For Frespo Inage, the cap rate and the terminal cap rate have not been established.
(Note 5) Richi Appraisal: Richi Appraisal Institute, Japan Real Estate: Japan Real Estate Institute, Daiwa Real Estate: Daiwa Real Estate Appraisal Co., Ltd., Chuo-Nittochi: Chuo-Nittochi Solutions Co., Ltd.

P40
(Note 1) The occupancy rate for each asset, such as real estate, is the percentage of the total rented area out of the total rentable area. The total occupancy rate is based on assets, such as real estate, held by MTR as of the end ofeach fiscal period. If the result of rounding is 100.0%, however, the rate is indicated as 99.9% by rounding down the second 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 a master 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, represent occupancy rates based on sublease agreements for the office and store
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 building portion of the Kioicho Building from a fiduciary trust company under a master lease agreement and subleases it to tenants. For the residential section,
MTR enters into a pass-through master lease agreement. The occupancy rates stated above are those under the sublease agreement for the office portion and the master lease agreement for the residential portion. The figure
in brackets for the occupancy rate of the building is the occupancy rate 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 Osaki MT Building, and the figure in brackets for the occupancy rate of the building is the occupancy
rate based on the sublease agreement.
(Note 6) The agreement used for the Midosuji MTR Building is the master lease pass-through model, and the occupancy rate in brackets for the building is that based on the sublease agreement.
(Note 7) MTR leases the land and building of Hiroo MTR Building, Tenjin Prime and SHIBUYA FLAG from a fiduciary trust company under a master lease agreement and subleases it to tenants. The occupancy rates of the above
properties are for those under the sublease agreements.
(Note 8) The numbers in parentheses of subtotal and total occupancy rates represent occupancy rates based on sublease agreements for Kioicho Building, Osaki 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, was calculated according to Note 2.

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Notes (2)Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

P41(Note 1) 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 ofTokyo Shiodome Building. The numbers in parentheses of the occupancy rates of the properties and the total number of tenants of the property represent those based on sublease agreements for the office and store section
and those based on the master lease agreement for the hotel section.
( Note 2) Regarding the office portion of the Kioicho Building, MTR leases the office portion of the Kioicho Building from a fiduciary trust company under a master lease agreement and subleases it to tenants. Regarding the residential
portion, the agreement used is the master lease pass-through model. The occupancy rate and the total number of tenants stated above are those under the sublease agreement for the office portion and the master leaseagreement for the residential portion.
(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 are those of theentire joint management units.
(Note 4) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Osaki MT Building.
(Note 5) The agreement used for the Midosuji MTR Building is the master lease pass-through model.
(Note 6) For Hiroo MTR Building, Tenjin Prime and SHIBUYA FLAG, MORI TRUST Sogo Reit has adopted a scheme under which it subleases the land and the building it rents to tenants in accordance with the master lease contract
with the trustee. The types of contracts with major tenants represent the types of sublease contracts.
(Note 7) Lease contract expiry is not shown, as consent from tenants has not been obtained.
(Note 8) For Ito-Yokado Shonandai, a building lease contract renewal agreement for the period between November 21, 2022 and November 20, 2042, was signed (see P. 13 for details).
(Note 9) The numbers in parentheses of the occupancy rates of the properties and the total number of tenants represent those based on sublease agreements for Kioicho Building, Osaki MT Building, and Midosuji MTR Building and theoverall number of tenants in all joint management units for Kamiyacho Trust Tower. The occupancy rates of the properties and the total number of tenants in Tokyo Shiodome Building represent that based on Note 5.

P42〜44(Note 1) The Tokyo Shiodome Building is a co-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) with the total floor space.
(Note 2) 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 3) 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 4) 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 of 907,880/1,000,000) with the total floor space.
(Note 5) Probable Maximum Loss (PML) refers to the expected maximum loss ratio caused by an earthquake based on a loss confidence value of 90%. The expected maximum-level earthquake refers to an earthquake that occurs
once every 50 years with a 10% excess-probability. This means that an earthquake of this magnitude statistically occurs once every 475 years.
(Note 6) The rental revenues and property-related expenses of ON Building ,SHIBUYA FLAG and Kohnan Sagamihara-Nishihashimoto are not disclosed because tenants’ consent to disclosure has not been obtained.
(Note 7) NOI earnings yield is calculated by converting NOI in the fiscal period ended March 2022 to an annual basis.
(Note 8) The floor area of Frespo Inage is the area of the real estate trust associated with the real estate trust’s beneficiary rights.
(Note 9) Portfolio PML is calculated by assuming an earthquake with an epicenter close to Tokyo’s Minato Ward out of multiple earthquake scenarios.

P49(Note 1) At a Board of Management meeting held on September 29, 2003, it was decided that the calculation rate for remuneration in the rate stated above will be reduced.
(Note 2) At a Board of Management meeting held on November 27, 2003, it was decided that the calculation rate for remuneration in the rate51

Fiscal Period Ended March 2022 (40th Fiscal Period) Information Package

Disclaimer / Contact Information▮ Disclaimer
 This document is intended to provide information about the business performance and strategies of MORI TRUST Sogo Reit, Inc.
(MTR). It is not intended and should not be construed as an inducement or invitation to purchase or invest in the products orinvestment units of MTR. We caution readers to contact their securities company representative if intending to acquire or sell any of
MTRʼs investment products or investment units.
 This document includes forecasts and other forward-looking statements that are based on certain assumptions and judgments madeby MTR and MORI TRUST Asset Management Co., Ltd. based on the information currently available to them. Such forward-looking
statements are subject to risks and uncertainties and are not guarantees of future performance. Actual future results may differ
materially from the forward-looking statements and forecasts.
 While MTR takes all reasonable care in the preparation of this document, it does not guarantee the accuracy and completeness of its
content.
 Readers are also cautioned that the contents of this document may be changed or deleted without prior notice.
 This document should not be construed as a disclosure document prepared in accordance with the Financial Instruments andExchange Act.
 Readers are advised to exercise their own independent judgment when making any investment decision.
 This English document is provided as a service and is not intended to be an official statement. Should a discrepancy be found, theJapanese original will always govern the meaning and interpretation.

▮ Contact Information

MORI TRUST Asset Management Co., Ltd.
Asset Management Strategic Management Department, Sogo REIT Management Division (IR Section)
Company(Financial instruments and exchange business registration with the Kanto Local Finance Bureau,
License No. 407/ Member of the Investment Trusts Association, Japan)
Tel.

03-6435-7011

52