Supplementary Materials
on Press Releases announced today

May 21, 2021

“Notice of Acquisition and Disposition of Assets and Lease Contract with New Tenants(Tamachi East Building and Tokyu Plaza Akasaka)”

Activia Properties Inc.
（Securities Code: 3279/API）Portfolio
improvement

Promotion of asset
recycling model

Secure external
growth opportunity

Outline of asset replacement
Anticipated
Asset
TO-19

Effect from asset replacement

Asset to bedisposedUR-2 Tokyu Plaza Akasaka

Tamachi East Building

１（50% co-ownership）

２Replacement

Anticipatedacquisition price(Appraisal NOI yield)¥6,800 million( 3.9% )(Note 1)

Appraisal value(Note 2)

¥7,130 million

Anticipateddisposition price¥11,800 million

Assumed bookvalue (Note 5)(Note 6)¥11,537 million

Appraisal value¥10,800 million(Note 5)(Note 5)(Note 2)¥260 million

Expected NOI¥272 million

NOI after
depreciation(Note 3)¥244 million

NOI after
depreciation¥193 million

NOI yield after
depreciation (Note 4)

3.6%

Improve NOI after
depreciation and its yield Dispose of a commercial facility mainly comprised of
hotel heavily impacted by COVID-19 crisis and acquirea Tokyo office property enjoying stability located inAPI’s target investment area

Promotion of asset recycling model Promote the asset recycling model through a flexible
asset replacement leveraging support from the sponsor

3

Expected NOI(Note 3)

Portfolio reinforcement(Note 5)(Note 3)(Note 5)(Note 3)

NOI yield after
depreciation (Note 4) Sponsor plans reconstruction of Tokyu Plaza Akasaka
and API obtained a preferential negotiation right ofthe property after reconstruction of building
Asset recycling modelSponsor
Fund-recycling modelDevelopmentFuture utilization ofexcess funds

Asset

Asset-recycling model
Note

1.7%

Secured opportunity of future external
growthProperty
Assetreplacement

Funds
Alternativeproperty

Note(Note 1) Calculated by dividing the net operating income (¥263 million) based on direct capitalization method stated in the appraisal report
as of March 31, 2021 by the acquisition price.
(Note 2) Appraisal Values stated in the appraisal reports as of March 31, 2021 for both Tamachi East Building and Tokyu Plaza Akasaka.
(Note 3) For Tamachi East Building, NOI is the estimated annual net operating income based on the present assumption. For Tokyu PlazaAkasaka, NOI is the total amount of the assumed net operating incomes for the fiscal period ending May 2022 and for the fiscal
period ending November 2022 based on the assumption that API continues to hold the property.
(Note 4) For Tamachi East Building, NOI yield is calculated by dividing the estimated annual net operating income on the present assumption
by the acquisition price of the property (¥6,800 million). For Tokyu Plaza Akasaka, NOI yield is calculated by dividing the amountequivalent to the total of the assumed net operating incomes for the period ending May 2022 and the period ending November 2022
based on the assumption that API continues to hold the property by the acquisition price of the property (¥11,450 million).
(Note 5) In proportion to the 50% co-ownership interest.
(Note 6) Estimated amount as of October 29, 2021.

Disclaimer
This document is provided solely for informational purposes and should not be construed as an offer, solicitation or recommendation to buy or sell any
specific product including investment units. Any decisions making on investment absolutely rest on your own judgment and on your own responsibility.
This document is not a disclosure document or statement of financial performance required by the Financial Instruments and Exchange Act, the Act
Concerning Investment Trusts and Investment Corporations of Japan, the rules governing companies listed on the Tokyo Stock Exchange or any otherapplicable rules.
This document includes charts and data described by TLC REIT Management Inc. (hereinafter the “Asset Manager”) and refers to data, index and otherinformation provided by third parties in addition to information about Activia Properties Inc. (hereinafter the “Investment Corporation”). Also analyses,
judgments and other points of view of the Asset Manager under the present situation are included.
The information contained in this document is not audited and there is no guarantee regarding the accuracy and certainty of the information. Analyses,
judgments and other non-factual views of the Asset Manager merely represent views of the Asset Manager as of the preparation date. Different views
may exist and the Asset Manager may change its views in the future.
The figures included in this document may be different from the corresponding figures in other disclosure materials due to differences in rounding.
Although theinformation contained in this document is the best available at the time of its publication, no assurances can be given regarding the accuracy, certainty,
validity or fairness of this information. The content of this document can be modified or withdrawn without prior notice.
The Investment Corporation and the Asset Manager do not guarantee the accuracy of the data, indexes and other information provided by third parties.
The Investment Corporation’s actual performance may be materially different from results anticipated by forward-looking statements contained in thisdocument.
Dates indicated in this document may not be business days.

Disclaimer for Dutch Investors
The units of the Investment Corporation are being marketed in the Netherlands under Section 1:13b of the Dutch Financial Supervision Act (Wet op het
financieel toezicht, or the “Wft”). In accordance with this provision, the Asset Manager has notified the Dutch Authority for the Financial Markets of its
intention to offer these units in the Netherlands. The units of the Investment Corporation will not, directly or indirectly, be offered, sold, transferred ordelivered in the Netherlands, except to or by individuals or entities that are qualified investors (gekwalificeerde beleggers) within the meaning of Article
1:1 of the Wft, and as a consequence neither the Asset Manager nor the Investment Corporation is subject to the license requirement pursuant to theWft. The Asset Manager is therefore solely subject to limited ongoing regulatory requirements as referred to in Article 42 of the European AlternativeInvestment Fund Managers Directive (European Directive 2011/61/EU) (the “AIFMD”).
Please visit the Investment Corporation’s home page (https://www.activia-reit.co.jp/en/) to access information provided under Article 23 of the AIFMD.