August 17, 2020
For Translation Purposes Only
Real Estate Investment Fund Issuer:
Mori Hills REIT Investment Corporation(Securities Code: 3234)
1-12-32 Akasaka, Minato-ku, Tokyo
Hideyuki Isobe, Executive Director
Asset Manager:
Mori Building Investment Management Co., Ltd.
Hideyuki Isobe, President & CEO
Inquiries: Akira Nemoto
General Manager of Financial Department
TEL: +81-3-6234-3234
MHR Revises Forecast for the Fiscal Period Ending January 2021
and Announces Forecast for the Fiscal Period Ending July 2021
Mori Hills REIT Investment Corporation (hereafter “MHR”) has revised its forecast of financial
results for the twenty-ninth fiscal period ending January 2021 (August 1, 2020 to January 31,2021) disclosed as of March 13, 2020, and announces its new forecast of financial results for thethirtieth fiscal period ending July 2021 (February 1, 2021 to July 31, 2021) as follows.
1. Revision of Forecast of Financial Results for the Twenty-Ninth Fiscal Period Ending January 2021
Dividend
per Unit

Dividend in
Excess ofEarnings
per Unit

Operating
Revenue

Operating
IncomeOrdinary
IncomeNet Income

Previous forecast(A)9,645
million yen

6,029
million yen

5,439
million yen

5,437
million yen

2,900 yen

- yen

Revised forecast
(B)

9,824
million yen

6,162
million yen

5,560
million yen

5,559
million yen

2,900 yen

- yen

Difference(B)－(A)179
million yen

132
million yen

121
million yen

121
million yen

- yen

- yen

1.9%

2.2%

2.2%

2.2%

-%

-%

Rate ofincrease/decrease(excluding
dividend inexcess ofearnings)

Note:This document is a press release regarding the revision of financial forecasts for the fiscal period ending
January 2021 and forecast of financial results for the fiscal period ending July 2021, and has not been preparedas an inducement or invitation for investment. We caution readers to refer to MHR’s Prospectus for theIssuance of New Investment Units and Secondary Offering of Investment Units and the Notices of Amendments
thereto, and to undertake any investment decision at their own judgment and responsibility.

12. Forecast of Financial Results for the Thirtieth Fiscal Period Ending July 2021
Operating
Revenue
Thirtieth fiscal
period ending
July 2021

OperatingIncomeOrdinary
IncomeDividendper Unit
Net Income9,877

6,170

5,577

5,576

million yen

million yen

million yen

million yen(excluding
dividend inexcess ofearnings)
2,910 yen

Dividend in
Excess ofEarnings
per Unit- yen<Reference>
Twenty-Ninth Fiscal Period Ending January 2021
Forecast number of investment units issued and outstanding at end of period: 1,916,330 units
Forecast net income per unit: 2,900 yen
Thirtieth Fiscal Period Ending July 2021
Forecast number of investment units issued and outstanding at end of period: 1,916,330 units
Forecast net income per unit: 2,910 yen(Note) The forecast number of investment units issued and outstanding at the end of the fiscal period is
calculated as the sum of the 1,874,960 investment units issued and outstanding as of today and the 41,370
investment units (39,400 investment units issued through public offering and 1,970 investment units
issued through third-party allotment) to be issued as resolved at MHR’s board of directors’ meeting held
today under the assumption the issuance takes place in its entirety.

3. Reason for the Revision and the Announcement of Forecast of Financial Results
MHR resolved at its board of directors’ meeting held today to issue new investment units inorder to procure funds for a part of the acquisition of specified assets (assets described in Article
2, Paragraph 1 of the Act on Investment Trusts and Investment Corporations) and acquisition
costs. As a result, the assumptions for the forecast of financial results for the fiscal period ending
January 2021 stated in the press release “Financial Report for the Twenty-seventh Fiscal Period
Ended January 31, 2020” dated March 13, 2020, have been revised accordingly, and MHR newly
announces the forecast of financial results for the fiscal period ending July 2021.
(Notes)1. The above forecasts have been calculated as of today based on the assumptions stated in theattachment, “Assumptions for Forecasts of Results for the Twenty-Ninth Fiscal Period Ending January
2021 and the Thirtieth Fiscal Period Ending July 2021.” Therefore, actual operating revenue,operating income, ordinary income, net income, dividend per unit (excluding dividend in excess ofearnings) and dividend in excess of earnings per unit may change due to factors such as change in thenumber and amount of new investment units that MHR will actually decide to issue, future acquisitionor transfer of real estate, changes in the real estate market and other changes in circumstances, etc.
regarding MHR. Therefore, the above forecasts do not guarantee actual performance or dividend
amount.
2. MHR may revise the forecasts if it expects substantial discrepancies from the above forecasts.
3. Figures of less than one unit are rounded off and the percentage is rounded to the first decimal place.
The same shall apply hereafter.

Note:
This document is a press release regarding the revision of financial forecasts for the fiscal period ending
January 2021 and forecast of financial results for the fiscal period ending July 2021, and has not been preparedas an inducement or invitation for investment. We caution readers to refer to MHR’s Prospectus for theIssuance of New Investment Units and Secondary Offering of Investment Units and the Notices of Amendments
thereto, and to undertake any investment decision at their own judgment and responsibility.

2<Reference>
Forecast of Financial Results for the Twenty-Eighth Fiscal Period Ending July 2020

Twenty-eighthfiscal period
ending July 2020

Dividend
per Unit

OperatingRevenue

Operating
IncomeOrdinary
IncomeNet Income

9,621
million yen

6,015
million yen

5,420
million yen

5,419
million yen(excludingdividend inexcess ofearnings)

2,890 yen

Dividend in
Excess ofEarnings
per Unit- yen(Note) The above forecast has been calculated based on the assumptions stated in “Financial Report for theTwenty-seventh Fiscal Period ended January 31, 2020” under “Forecasts of Results for the Twenty-eighth
Fiscal Period Ending July 31, 2020 (February 1, 2020 - July 31, 2020) and Twenty-ninth Fiscal PeriodEnding January 31, 2021 (August 1, 2020 - January 31, 2021)” dated March 13, 2020. Therefore, actual
operating revenue, operating income, ordinary income, net income, dividend per unit (excluding dividendin excess of earnings) and dividend in excess of earnings per unit may change. Furthermore, the above
forecast does not guarantee actual performance or dividend amount. MHR may revise the forecast if it
expects substantial discrepancies from the above forecast.

MHR’s website address is https://www.mori-hills-reit.co.jp/en/

Note:This document is a press release regarding the revision of financial forecasts for the fiscal period ending
January 2021 and forecast of financial results for the fiscal period ending July 2021, and has not been preparedas an inducement or invitation for investment. We caution readers to refer to MHR’s Prospectus for theIssuance of New Investment Units and Secondary Offering of Investment Units and the Notices of Amendments
thereto, and to undertake any investment decision at their own judgment and responsibility.

3

(Attachment)
Assumptions for Forecasts of Results for the Twenty-Ninth Fiscal Period Ending January 2021
and the Thirtieth Fiscal Period Ending July 2021
Item
Accounting
PeriodInvestment
Portfolio

Assumptions
Twenty-Ninth Fiscal Period: August 1, 2020 - January 31, 2021 (184 days)
Thirtieth Fiscal Period: February 1, 2021 - July 31, 2021 (181 days)
In addition to the currently owned 11 properties, MHR is planning theadditional acquisition of a portion of Toranomon Hills Mori Tower(hereafter, the “Asset to Be Acquired”) on September 1, 2020. For details ofthe acquisition of the Asset to Be Acquired, please refer to the press release“MHR Announces Acquisition of Trust Beneficiary Interest in Domestic Real
Estate (Toranomon Hills Mori Tower: Additional Acquisition)” separately
announced today.
MHR assumes that it will acquire the Asset to Be Acquired on the
anticipated acquisition date above, and that there will be no change in theinvestment portfolio (such as acquisitions of new properties or transfers ofexisting properties) until the end of the thirtieth fiscal period ending July2021.
In actual practice, however, the forecasts are subject to change in theinvestment portfolio and other factors.

Operating
Revenue

Rent revenue of real estate is estimated based on lease agreements, etc.
effective as of today, taking into account the market environment, trends
among individual tenants and other factors.
MHR assumes that there will be no delinquencies or unpaid rent by tenants.

Note:
This document is a press release regarding the revision of financial forecasts for the fiscal period ending
January 2021 and forecast of financial results for the fiscal period ending July 2021, and has not been preparedas an inducement or invitation for investment. We caution readers to refer to MHR’s Prospectus for theIssuance of New Investment Units and Secondary Offering of Investment Units and the Notices of Amendments
thereto, and to undertake any investment decision at their own judgment and responsibility.

4OperatingExpenses

For expenses related to the real estate leasing business, which are major
operating expenses, 3,342 million yen is expected for the fiscal period ending
January 2021, and 3,398 million yen is expected for the fiscal period ending
July 2021. Expenses other than those below are calculated by referring tohistorical figures and adjusted to reflect variable factors.
A） For property taxes, city planning taxes, etc., 736 million yen (for sixmonths) and 768 million yen (for six months) are expected for the fiscal
periods ending January 2021 and July 2021, respectively. Furthermore,
property taxes, city planning taxes, etc. associated with the acquisitionof the Asset to Be Acquired, will be calculated at the time of acquisition
with the seller using a prorated adjusted amount; however, MHR shallcapitalize these amounts as part of the cost of the acquisition and, thus,
shall not recognize them as operating expenses for the fiscal period
ending January 2021. Additionally, part of the property taxes, city
planning taxes, etc. associated with this property acquisition will beincorporated into the cost of acquisition, and 10 million yen (for threemonths) is expected to be recognized as operating expenses for the fiscal
period ending July 2021.
B） For building maintenance and repairs, MHR recorded the estimatedrequired amount for the respective fiscal periods as 80 million yen for
the fiscal period ending January 2021 and 80 million yen for the fiscal
period ending July 2021. However, please note that the actual expenses
for maintenance and repairs in the respective fiscal periods may differ
materially from the estimated amounts due to various reasons. For
example, an unforeseeable event may cause serious damage to abuilding and emergency repairs may be required as a consequence.
Also, maintenance and repairs are expenses that are not accrued on aregular basis and the amount of variation may vary significantly fromone period to the next.
C） Depreciation and amortization, which are calculated using thestraight-line method with future additional capital expenditures taken
into account, are expected to be 1,062 million yen in the fiscal periodending January 2021 and 1,087 million yen in the fiscal period ending
July 2021.
D） For property management fees, 1,175 million yen is expected for thefiscal period ending January 2021 and 1,163 million yen is expected forthe fiscal period ending July 2021.
For operating expenses other than expenses related to the real estateleasing business (asset management fee, asset custody fee, administrative
service fees, etc.), 319 million yen is expected for the fiscal period ending
January 2021 and 308 million yen is expected for the fiscal period ending
July 2021.

Note:
This document is a press release regarding the revision of financial forecasts for the fiscal period ending
January 2021 and forecast of financial results for the fiscal period ending July 2021, and has not been preparedas an inducement or invitation for investment. We caution readers to refer to MHR’s Prospectus for theIssuance of New Investment Units and Secondary Offering of Investment Units and the Notices of Amendments
thereto, and to undertake any investment decision at their own judgment and responsibility.

5Non-OperatingExpenses

MHR expects to incur 385 million yen for the fiscal period ending January
2021 and 383 million yen for the fiscal period ending July 2021 in interest
expenses; 50 million yen for the fiscal period ending January 2021 and 49
million yen for the fiscal period ending July 2021 in interest expenses oninvestment corporation bonds; and 144 million yen for the fiscal period
ending January 2021 and 138 million yen for the fiscal period ending July
2021 in borrowing expenses.
MHR expects to incur 12 million yen for the fiscal period ending January
2021 and 12 million yen for the fiscal period ending July 2021 inamortization of investment unit issuance expenses including the issuance of
new investment units resolved at the board of directors’ meeting held today(hereafter, “Issuance of New Investment Units”).

Interest-Bearing
Debt

MHR’s balance of interest-bearing debt as of today is 179,222 million yen.
MHR assumes that it will newly borrow 5,200 million yen in August 2020 aspart of the funds for the acquisitions of the Asset to Be Acquired in theinvestment portfolio as described above.
The balance of loans payable outstanding as of today is 162,222 million yen.
Of the balance, MHR assumes that 12,500 million yen of loans payable due
for repayment by the end of the fiscal period ending July 2021 will berefinanced in the entire amount.
The balance of investment corporation bonds as of today is 17,000 million
yen. Of the balance, MHR assumes that 5,500 million yen due forredemption by the end of the fiscal period ending July 2021 will be redeemedwith issuance of the same amount of investment corporation bonds.

Issuance ofInvestment
Units

The number of investment units issued and outstanding as of today is
1,874,960 units. MHR assumes that a total of 41,370 units (39,400 units
additionally issued through public offering and an upper limit of 1,970 units
additionally issued through third-party allotment) will be issued. For detailsof the issuance of new investment units, please refer to the press release“MHR Announces Issuance of New Investment Units and Secondary
Offering of Investment Units” separately announced today.
MHR assumes that there will be no additional issuance of investment units
other than the above until the end of the fiscal period ending July 2021.

Note:
This document is a press release regarding the revision of financial forecasts for the fiscal period ending
January 2021 and forecast of financial results for the fiscal period ending July 2021, and has not been preparedas an inducement or invitation for investment. We caution readers to refer to MHR’s Prospectus for theIssuance of New Investment Units and Secondary Offering of Investment Units and the Notices of Amendments
thereto, and to undertake any investment decision at their own judgment and responsibility.

6Dividend perUnit(excludingdividend inexcess ofearnings)

Dividend per unit is calculated based on the assumption that MHR will
make distributions in accordance with the distribution policy set forth in its
Articles of Incorporation.
Dividend per unit may vary due to various factors, including changes in theinvestment portfolio, changes in rent income due to tenant replacement,
unexpected repairs, changes in interest rates, or additional issuance of new
investment units.
Dividends per unit are calculated based on the assumption that changes will
not arise in deferred losses on hedges, which is an item of deduction fromnet assets (as defined in Article 2, Paragraph 2, Item 30 (b) of the Ordinanceon Accountings of Investment Corporations) arising from interest rate swap
transactions.

Dividend in
Excess ofEarnings perUnit

As dividends in excess of earnings per unit are calculated based on theassumption that changes will not arise in fair value from interest rate swaptransactions, MHR does not plan to make distributions in excess of earnings(allowance for temporary difference adjustments) for the fiscal periods
ending January 31, 2021, and July 31, 2021.
Of dividends in excess of earnings, none falling under the category ofdistributions accompanying decrease in capital, etc. under tax law isplanned at this point in time.

OtherMHR assumes that there will be no amendments to laws and regulations,taxation systems, accounting standards, listing regulations, rules of theInvestment Trusts Association, Japan, etc. that would affect the aboveforecasts.
MHR assumes that there will be no unforeseeable material changes ingeneral economic conditions, the real estate market, etc.

Note:
This document is a press release regarding the revision of financial forecasts for the fiscal period ending
January 2021 and forecast of financial results for the fiscal period ending July 2021, and has not been preparedas an inducement or invitation for investment. We caution readers to refer to MHR’s Prospectus for theIssuance of New Investment Units and Secondary Offering of Investment Units and the Notices of Amendments
thereto, and to undertake any investment decision at their own judgment and responsibility.

7