NEWS RELEASE
March 28, 2023
For Immediate Release
Investment Corporation
Japan Real Estate Investment Corporation
Jo Kato, Executive Director(TSE code: 8952)
Asset Management Company
Japan Real Estate Asset Management Co., Ltd.
Shojiro Kojima, President & CEO
Contact: Masaru Motooka
Executive Officer & General Manager
Strategic Planning Department
Phone: +81‐3‐3211‐7951

Announcement of Acquisition of Domestic Real Estate
and Trust Beneficiary Interest in Domestic Real Estate
Japan Real Estate Investment Corporation (“JRE”) hereby announces that Japan Real Estate AssetManagement Co., Ltd. (“JRE‐AM”), the asset management company to which JRE entrusts asset investment,
today decided to acquire domestic real estate and trust beneficiary interest in domestic real estate as follows:≪Properties to be acquired≫
Property nameLocation

Acquisition Price(planned)

Shinjuku Eastside Square(additional acquisition)(ownership interest ratio: 4%)

Shinjuku‐ku,
Tokyo

JPY 8,500 million

Contract date(scheduled)Transfer date(scheduled)

March 30,
2023

March 30,2023

CIRCLES Hirakawacho
Chiyoda‐ku
JPY 1,780 million(ownership interest ratio: 100%)
Tokyo(Note) The ownership interest ratio in the “Property name” column indicates, with respect to Shinjuku Eastside
Square, the percentage of JRE’s co‐ownership interest in the entire property and its co‐ownership interest
is to total 39% with this additional acquisition. As for CIRCLES Hirakawacho, it shows the percentage of JRE’s
ownership interest in the entire property.
≪Reason for the Acquisitions≫
JRE will acquire the properties pursuant to the policies and types of assets targeted for asset investment
stipulated in its Articles of Incorporation. Both properties are high‐specification buildings with great
functionality, situated in favorable locations in central Tokyo, which JRE determined will contribute toenhancing its medium‐ to long‐term competitiveness and expanding its asset size. In principle, JRE invests inproperties with a total floor area of 3,000 m2 or more according to its Investment Guidelines. JRE decided toacquire CIRCLES Hirakawacho, however, which does not satisfy the above criterion, in consideration of its
competitive edge that can accommodate the diverse ways of working in recent years.
1
Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

≪Property to be acquired: Shinjuku Eastside Square (additional acquisition)≫
1. Outline of the Acquisition
Property nameShinjuku Eastside Square (additional acquisition)(ratio of ownership interest: 4%)

Acquisition price (planned)

JPY 8,500 million

SellerMitsubishi Estate Co., Ltd.

Brokerage

No

Decision date

March 28, 2023

Contract date (scheduled)

March 30, 2023

Transfer date (scheduled)

March 30, 2023

Payment date (scheduled)

March 30, 2023

2. Reason for the Acquisition
The property was evaluated for the following points in particular:(1) Excellent building and facilities
Shinjuku Eastside Square, completed in 2012, is a large‐scale office building with high specification
features including a ceiling height of 2.85 meters and a raised floor of 130 millimeters, boastinga typical floor plate of approx. 6,000 m2, one of the largest of its kind in Tokyo. The property also
houses convenient facilities for office workers such as various restaurants and a fitness gym. It isequipped with damping structure and an emergency power generator capable of 72‐hour operation
as BCP measures, while adopting environmentally responsible specifications such as Low‐E multi‐
layer glass and rainwater recycling facilities. Thus, those features make the property highly disaster
resistant and energy efficient. Furthermore, the property offers office workers and visitors a place totake a rest and an easy access to neighboring facilities with some 40% of its whole site covered withgreen, which contributes to enhancing the community well‐being, and hence high competitiveness.
(2) Superior location
The property is located in the Shinjuku area, one of the world’s leading cities, where various functions,
including business and commercial activities, are concentrated. For its sophisticated and eye‐catching
design, the property serves as a landmark in the surrounding neighborhood. It is also directly
connected to Higashi‐Shinjuku subway station and within a walking distance from Shinjuku station,
where a number of railway and subway lines are available, enjoying the locational advantage.
3. Description of the Property to Be Acquired
Property name
Type of specified asset
Type of ownership
Land
Building
Trustee
Location (Building address)
Usage
Area
Land
Building

Shinjuku Eastside Square (additional acquisition)(ratio of ownership interest: 4%)
Trust beneficiary interest in domestic real estate
Ownership (co‐ownership interest: 4/100)
Ownership (co‐ownership interest: 4/100)
Mitsubishi UFJ Trust and Banking Corporation
6‐27‐30, Shinjuku, Shinjuku‐ku, Tokyo
Offices and shops
25,320.28 m2 (area stated in the real property registry)
167,245.46 m2
2

Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

Structure
Typical floor area
Completion
Matters related toearthquake resistanceMortgage
Appraisal value(Date of value)
Appraisal institution
Outline of lease
Total number of tenants
Total rent revenues
Security deposit
Total leased area
Net rentable area

Occupancy rate

Special notes(gross floor area stated in the real property registry)
S/RC structure with flat roof, 20 stories above the ground and 2
basement levels
5,914 m2
March 2012
PML: 1.2% (based on the seismic risk assessment report by Tokio
Marine dR Co., Ltd.)No
JPY 8,510 million(as of March 1, 2023)
Japan Real Estate Institute42
JPY 387 million per year
JPY 328 million
4,626 m2
4,678 m2
March 31, 2021
100.0 %
September 30, 2021
98.6 %March 31, 2022
98.7 %
September 30, 2022
98.5 %
Scheduled acquisition date 98.9 %・The property is located in an area designated under the district
plan of Shinjuku 6‐chome Northwest District. When constructing
buildings, etc., it is required to comply with the said district plan.
Moreover, this property and the adjacent property (6‐315‐33,
Shinjuku, Shinjuku‐ku) are jointly certified as a single housing
estate, where all the improvements there are considered to bebuilt on a single site, in accordance with the Building Standards
Act 86, paragraph 1. The maximum floor‐area ratio (“FAR”) of
600% is permitted for the said single housing estate, and 599.99%of the allowance has been used up, in which the FAR of thisproperty and the adjacent property are 608.09% and 219.56%
respectively. The owners of those two properties, therefore, are
not permitted to do any extension, repair, or renovation work
which causes the FAR to go beyond the allowance of 600.0%. To
ensure the aforementioned restriction is observed, theagreement between the owners had been concluded, and JRE
succeeded to the rights and duties under this agreement from theseller.
・Matters related to preferential negotiation rights for the transfer
of an interest in the property are provided for in the co‐owners
agreement.

(Note)
・ JRE acquired a 14% co‐ownership interest in the property on October 1, 2014, 3.6% on January
25, 2017, 13.4% on March 30, 2018, and 4% on March 27, 2020; therefore, JRE’s co‐ownershipinterest is to total 39% with this additional acquisition.
・JRE, upon acquisition of the property, will lease the whole space to be acquired to Mitsubishi
Estate, which will then sublease it to third parties under a master lease contract of a pass‐ throughtype.
・ “Area,” “Structure,” and “Completion” show the same entries stated in the real property registry.
“Usage,” however, indicates the main entries, among those listed in the real property registry.
3
Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

・ “Outline of lease” is based on the data provided by the seller and calculated on the basis of JRE’s
interest. “Total number of tenants” shows the number pertaining to the entire property.
・”Total rent revenues” shows the actual revenues for the year through February 2023.
・ “Total number of tenants,” “Total leased area,” “Net rentable area,” and “Occupancy rate on thescheduled acquisition date” are forecasts as of the scheduled acquisition date.
・ NOI (Net Operating Income): JPY 274 million a year (an estimated amount)・ Depreciation: JPY 53 million a year (an estimated amount)
4. Outline of Seller
Corporate name

Mitsubishi Estate Co., Ltd.

Location

1‐1‐1, Otemachi, Chiyoda‐ku, Tokyo

Representative

Junichi Yoshida, President & Chief Executive Officer

Principal business

Real estate business

Paid‐in capital

JPY 142,414 million (as of Dec. 31, 2022)

Date of establishment

May 7, 1937

Net assets(Consolidated): JPY 2,415,605 million (as of Dec. 31, 2022)

Total assets(Consolidated): JPY 7,012,769 million (as of Dec. 31, 2022)

Major shareholders and their The Master Trust Bank of Japan, Ltd. (Trust Acc.): 17.26%
shareholding percentages
Custody Bank of Japan, Ltd. (Trust Acc.): 5.13%(as of March 31, 2022)
Meiji Yasuda Life Insurance Company: 3.19%
Relationship with JRE and JRE‐AM

Capital relationship

Personnel relationship

Business relationshipApplicability to relatedparties

Mitsubishi Estate Co., Ltd. (hereinafter referred to as “thecompany” in this table) is a parent company of JRE‐AM, holding a
100% stake as of March 28, 2023. The company also holds 17,120
investment units of JRE as of September 30, 2022, which accounts
for 1.24% of the number of units outstanding.
Thirteen personnel from the company are on loan to JRE‐AM as ofMarch 28, 2023, and JRE’s executive director concurrently serves ascorporate advisor of the company.
The company is the previous owner and trust beneficiary of someof the JRE‐owned properties. It is also a lessee for JRE. In addition,it has several collateral contracts regarding properties held by JRE.
The company falls within the definition of related party of JRE‐AM
under the Regulation for Terminology, Forms, and Preparation
Methods of Financial Statements. Furthermore, the company falls
within the definition of interested persons, etc. of JRE‐AM under
the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations (Cabinet Order No. 480 of 2000, including
later amendments), and also falls within the definition of interested
parties under the internal rules of JRE‐AM.

4
Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

5. Status of Owners, Etc. of the Property
Property nameShinjuku Eastside Square(Location)(6‐27‐30, Shinjuku, Shinjuku‐ku, Tokyo)
Status of owners, etc. of thePrevious owner
Second previous ownerproperty
Shinjuku Rokuchome
Corporate name
Mitsubishi Estate Co., Ltd.
Specific Purpose Company(TMK)
Mitsubishi Estate Co., Ltd.,the shareholder of JRE‐AM
Relationship with(investment ratio in it: 100%)
See “Outline of Seller” above
interested parties of JRE
made a preferred equity
investment in the above
TMK.
Acquisition background
Acquisition for the purpose of
Newly built in March 2012
and reason, etc.
investment management
Omitted as the previous owner
Acquisition priceowned the property for more―than a year
Acquisition date
October 2014―
6. Summary of Appraisal Report
Property nameAppraisal value
Appraiser
Date of value

Shinjuku Eastside Square (additional acquisition)
JPY 8,510 million
Japan Real Estate InstituteMarch 1, 2023
Item

Value indicated by the income approach
Value indicated by the direct
capitalization method(1) Operating income [①‐②]①Poten al rental
income②Vacancy loss(2) Operating expenses
Maintenance andmanagement fee
Property management fee

AmountDescription

8,510,000

Estimated the value as shown to the left by relating
values indicated by the direct capitalization method andthe DCF method, deeming both normative to the same
degree8,550,000
382,523
416,391

Estimated considering the current average rent and the
new rent level, etc. of the subject property

33,868

Recorded based on historical vacancy rates of thesubject property and average vacancy rates ofcomparable properties

98,98035,612(note)

Estimated based on expenses incurred in previous years
for the maintenance and management fee, and thecurrent contract for property management fee

Utilities expenses

26,117

Repair expenses

4,454

Leasing cost

3,078

Estimated based on expenses incurred in previous
years, referring to occupancy rates
Estimated according to the average annual expenses
stated in the engineering report, referring to expenses
incurred in previous years
Recorded based on the estimated tenant turnover
period5Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

Property tax and city
planning tax

29,298Insurance Premium

421

Other expenses(3) Net operating income [(1)‐(2)](4) Operating profit on lump‐sum payments

0

Estimated on the basis of the taxes levied for fiscal year
2022
Recorded based on insurance premiums incurred inprevious years, referring to those of comparable
properties
No expenses applicable to the said item

283,543
3,145

Estimated under the assumption of an investment yieldof 1.0%(5) Capital expenditures

13,083

Estimated referring to expenses incurred in previous
years of comparable properties, the subject property’s
building age, and the average annual repair/renewal expenses stated in the engineering report(6) Net cash flow [(3)+(4) ‐ (5)]273,605(7) Capitalization rate

3.2%

Value indicated by the DCF
method8,470,000

Discount rate

2.9%

Terminal capitalization rate

3.3%

Value indicated by the cost approach
Land ratio
Building ratio

8,110,000
85.2%
14.8%

Determined by adding or subtracting a spread derived
from individuality of the subject property to or from thestandard cap rate of the area, referring to market
capitalization rates of comparable properties

Determined referring to capitalization rates ofcomparable properties, while taking into accountindividuality of the subject property
Determined referring to market capitalization rates ofcomparable properties, while taking into account themarketability of the subject property at the end of theholding period* In thousands of yen (amounts are rounded down to the nearest thousand yen)

Any special considerations in thereconciliation between indicatedvalues and determination of the final
appraisal value
Note:

Nothing in particular

No consent has been obtained from the property management company to disclose the property
management fee as a separate item. Moreover, if the property management fee for the subject property isdisclosed separately, it might potentially affect other deals done by the property management company,
which could negatively affect JRE in efficiently delegating property management services under its policyon the maintenance and management of target investment properties. This could in turn undermine theinterests of its unitholders. Accordingly, the maintenance and management fee and the property
management fee are shown by the combined amount.

6
Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

≪Property to be acquired: CIRCLES Hirakawacho≫1.

Outline of the Acquisition
Property name

CIRCLES Hirakawacho (ratio of ownership interest: 100%)

Acquisition price (planned)

JPY 1,780 million

SellerMitsubishi Estate Co., Ltd.

Brokerage

No

Decision date

March 28, 2023

Contract date (scheduled)

March 30, 2023

Transfer date (scheduled)

March 30, 2023

Payment date (scheduled)

March 30, 2023

2. Reason for the Acquisition
The property was evaluated for the following points in particular:(1) New building and convenient facilities
CIRCLES Hirakawacho has just been completed in 2021 and is one of the series of compact officebuildings, “CIRCLES”, developed by Mitsubishi Estate. The property is designed under the concept of“a workplace for gathering and interacting”, combining security and functions required of officebuildings with a sophisticated exterior and interior. It also provides those who work there with spaces
for them to interact with each other, which would lead to creating new ideas, such as a rooftop terrace
for work and rest, and a cafe on the first floor. The property, therefore, has been deemed highly
competitive, meeting a wide range of needs, such as head offices for emerging companies who
outgrown their shared office space, and branches of leading companies for sales or other specificpurposes.
(2) Superior location
Hirakawacho, where the property is located, is on the west side of the Imperial Palace. While in theheart of Tokyo, the area has relatively calm atmosphere, being close to Chidorigafuchi Park and the
National Theatre of Japan, etc. The area also enjoys solid demand for office space because of its
proximity to Nagatacho and Kasumigaseki, where the supreme court and other government offices areconcentrated. The property is three minutes on foot from two subway stations and offers great accessto downtown Shibuya and Otemachi, the business center of Tokyo.
3.

Description of the Properties to Be Acquired
Property name
Type of specified asset
Type of ownership
Land
Building
Location (Building address)
Usage
Area
Land
Building
Structure
Typical floor area

CIRCLES Hirakawacho (ratio of ownership interest: 100%)
Domestic real estate
Ownership
Ownership
1‐3‐13 Hirakawacho, Chiyoda‐ku, Tokyo
Offices and shops
171.15 m2 (area stated in the real property registry)
1,095.13 m2(gross floor area stated in the real property registry)
RC structure with flat roof, 11 stories above the ground94.37 m2
7

Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

Completion
Matters related toearthquake resistanceMortgage
Appraisal value(Date of value)
Appraisal institution
Outline of lease
Total number of tenants
Total rent revenues
Security deposit
Total leased area
Net rentable area
Occupancy rate

November 2021
PML: 3.9% (based on the seismic risk assessment report by Tokio
Marine dR Co., Ltd.)No
JPY 1,810 million(as of March 1, 2023)
Daiwa Real Estate Appraisal Co., Ltd.
10
21 million yen per year
28 million yen
885 m2979 m2
March 31, 2022
September 30, 2022
Scheduled acquisition date
Nothing in particular

23.0 %
32.6%
90.4 %

Special notes(Note)
・ JRE, upon acquisition of the property, will lease the whole space to be acquired to Mitsubishi
Real Estate Services Co., Ltd., which will then sublease it to third parties under a master lease
contract of a pass-through type.
・ “Area,” “Structure,” and “Completion” show the same entries stated in the real property registry.
“Usage,” however, indicates the main entries, among those listed in the real property registry.
・ “Outline of lease” is based on the data provided by the seller.
・”Total rent revenues” shows the actual revenues for the year through February 2023.
・ “Total number of tenants,” “Total leased area,” “Net rentable area,” and “Occupancy rate on thescheduled acquisition date” are forecasts as of the scheduled acquisition date.
・ NOI (Net Operating Income): JPY 59 million a year (an estimated amount)・ Depreciation: JPY 21 million a year (an estimated amount)
4.

Outline of Seller
See “Outline of Seller” above.

5.

Status of Owners, Etc. of the Property
Property name
CIRCLES Hirakawacho(Location)(1‐3‐13 Hirakawacho, Chiyoda‐ku, Tokyo)
Status of owners, etc. of thePrevious owner
Second previous ownerproperty
Corporate name
Relationship withinterested parties of JRE
Acquisition backgroundand reason, etc.
Acquisition price
Acquisition date

Mitsubishi Estate Co., Ltd.

―See “Outline of Seller” above―

Newly built in November 2021

―

―

―

―

―

8
Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

6.

Summary of Appraisal Report
Property nameAppraisal value
Appraiser
Date of value

CIRCLES Hirakawacho
JPY 1,810 million
Daiwa Real Estate Appraisal Co., Ltd
March 1, 2023
Item

Value indicated by the income approach
Value indicated by the direct
capitalization method(1) Operating income [①‐②]AmountDescription

1,810,000

Indicated by the income approach, placing more weighton the DCF method that incorporates fluctuations of the
future net cash flow, while employing the direct
capitalization method for verification

1,880,000
82,276①Poten al rental
income85,662②Vacancy loss

3,385(2) Operating expenses
Maintenance andmanagement fee
Property management fee

19,6106,184(note)

Utilities expenses

3,023

Repair expenses

1,133

Leasing cost
Property tax and city
planning tax
Insurance Premium
Other expenses(3) Net operating income [(1)‐(2)](4) Operating profit on lump‐sum payments

Estimated considering the medium‐ to long‐termcompetitiveness of the subject property and new rent
levels of comparable properties
Recorded based on average vacancy rates ofcomparable properties, considering the competitivenessof the subject property

657

Estimated based on the current contracts
Estimated referring to expenses incurred in previous
years of the subject property and comparable
properties
Estimated according to the average annual expenses
stated in the engineering report
Recorded the amount equivalent to the 1.0‐month rent
for new tenants, in light of cases of comparable
properties

7,995

Estimated on the basis of the taxes levied for fiscal year
2022

81

Recorded referring to an insurance premium estimate

534

Recorded based on supplies and miscellaneous
expenses, etc.

62,666357(5) Capital expenditures

1,144(6) Net cash flow [(3)+(4) ‐ (5)]61,880(7) Capitalization rate

3.3%

Value indicated by the DCF
method

1,780,000

Discount rate

3.1%

Terminal capitalization rate

3.5%

Value indicated by the cost approach
Land ratio

1,230,000
60.4%
9Estimated under the assumption of an investment yieldof 1.0%Estimated referring to the average annual repair/renewal expenses stated in the engineering report
Estimated referring to the market capitalization rates ofcomparable properties

Estimated from the discount rates in the transactions ofcomparable properties and comparisons with the yields
of other financial instruments, etc.
Estimated on the basis of the capitalization rate, while
taking into account the marketability of the subject
property at the end of the holding period

Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

Building ratio

39.6%* In thousands of yen (amounts are rounded down to the nearest thousand yen)

Any special considerations in thereconciliation between indicatedvalues and determination of the final
appraisal value
Note:

Nothing in particular

No consent has been obtained from the property management company to disclose the property
management fee as a separate item. Moreover, if the property management fee for the subject property isdisclosed separately, it might potentially affect other deals done by the property management company,
which could negatively affect JRE in efficiently delegating property management services under its policyon the maintenance and management of target investment properties. This could in turn undermine theinterests of its unitholders. Accordingly, the maintenance and management fee and the property
management fee are shown by the combined amount.

10
Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

≪Transaction with Interested Party≫
Those transactions fall under a transaction with an interested party. In order for such a transaction toproceed, JRE‐AM first goes through the deliberation and approval process at its compliance committee,
and then obtains approval from its investment management council pursuant to the rules for interested‐
party transactions.
≪Settlement Method≫
1) Acquisition fundShinjuku Eastside Square: Loans
CIRCLES Hirakawacho: Loans
2) Settlement method
Lump‐sum payment at the time of transfer(Note) For more information about loans for the acquisitions, please refer to the press release titled “Announcementof Debt Financing” published today.

≪Future Outlook≫
There are no revisions to the operating performance forecasts for the fiscal period ending March 2023
(October 1, 2022 to March 31, 2023) as the acquisitions will likely have only a marginal effect on
performance.
Regarding forecast revisions for the fiscal period ending September 2023 (from April 1, 2023 to
September 30, 2023) and performance forecasts for the fiscal period ending March 2024 (from October
1, 2023 to March 31, 2024), please refer to the press release titled “Announcement of forecast revisions
for the September 2023 period and forecasts for the March 2024 period” announced today.
<Reference>
Performance forecasts announced on Nov. 15, 2022 and actual results for the previous period

Period ended

September 30,2022(Actual)March 31,2023(Forecast)
September 30,2023(Forecast)

Operating
Revenues

Operating
ProfitOrdinary
ProfitNet Profit

Dividend per
Unit (excluding
dividend inexcess of
earnings)

JPY million

JPY million

JPY million

JPY million

JPY

JPY

37,65418,042

17,256

16,79011,500036,98016,67015,81015,79011,400037,18016,57015,67015,66011,3000

Dividend inexcess of
earnings per
unit

This is the English translation of the announcement in Japanese dated March 28, 2023.
No assurance or warranties are given for the completeness or accuracy of this English translation.
11
Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

(Reference) map of the Shinjuku Eastside Square(Reference) Exterior of Shinjuku Eastside Square

12Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.

(Reference) map of CIRCLES Hirakawacho(Reference) Exterior of CIRCLES Hirakawacho

13
Disclaimer: This document is intended to serve as a press release to make available to the public the information on Acquisition of Real Estate
Properties of Japan Real Estate Investment Corporation (“JRE”), and does not constitute and should not be construed as an offer
to sell or solicitation of an offer to purchase any investment unit or other investment in JRE. Prospective investors are advised toread the JRE's prospectus for issuance of new investment units and secondary offering (and its amendments thereto, if any) andmake any investment decisions at their own risk and responsibility.