Fiscal Period Ended September 2022 (41st 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

31

Fiscal Period Ended September 2022 Settlement Highlights

4

Balance Sheets

32

Overview of the Settlement for the Fiscal Period Ended September 2022

5

Statements of Income and Retained Earnings

33

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

6

Statement of Cash Distributions / Statements of Cash Flows

34

Forecasts for the Fiscal Period Ending February 2023
(October 1, 2022 through February 28, 2023)

7

Changes in Indicators

35

Changes in Asset Size, LTV and Distribution Per Unit

2. Operation Status

836

Recognition of Conditions

9

Property Portfolio List as of the End of the Fiscal Period

37

Management situation of properties owned

10

Appraisal Values of Portfolio Properties at the Fiscal Period-End

38

Changes in Occupancy Rate

39

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

40

Portfolio Summary and Breakdown of Property-Related
Revenues/Expenses

41

Interest-Bearing Liabilities

44

Asset Replacement (Sale of Shinbashi Ekimae MTR Building andAcquisition of Sendai MT Building)

11

New Property Acquisition (Sendai MT Building)

12

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

13

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

14

Investors

45

3. Initiatives Related to ESG

15

Changes in Unit Prices

46

Initiatives Related to ESG

16

Changes in Vacancy Rate and Rent per Unit in Major Cities

47

4. Characteristics of MORI TRUST Sogo Reit, Inc.

27

Asset Management Company Remuneration Methods

48

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

28

Notes

49

Mori Trust Group30

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 September 2022 (41st Fiscal Period) Information Package

Fiscal Period Ended September 2022 Settlement Highlights

1. Overview of the Settlement and Forecasts

Distribution Per Unit

¥3,000（down ¥195 vs. the fiscal period ended March 2022, ± ¥0 vs. forecast）

Of which, distribution excluding temporary factors is 2,305 yen (up 81 yen from forecast)* Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, etc.

As of September 30, 2022 (change from the previous fiscal period in parentheses)

Debt

Asset
Number of property: 16 properties (–)

Asset size:¥324.7 billion (–) (Note 1)

Balance of interest-bearing debt:(up ¥2 billion)

Average interest rate for borrowings
during fiscal period:
0.48% (up 0.03%)

47.9% (up 0.5%)

LTV:
Occupancy rate:* Sublease basis

96.5% (up 0.5%)
91.6% (up 1.1%) (Note 2)¥350.0 billion (up ¥3.8 billion)¥44.0 billion (up ¥4.9 billion) (Note 3)

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

Office building

80.2% (–)
71.2% (–)

AA (stable)

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

EquityAppraisal values of portfolio properties at the fiscal
period end:
Unrealized profit:¥156.0 billion

Number of units issued:

1,320,000 units (–)

NAV per unit:¥150,867 (up 2.2%)(Note 4)

*Starting from the fiscal period under review, calculated based on NAV after
deduction of total distributions

Investment unit price:¥137,700/ closing price on September 30, 2022)* The notes on this page constitute an integral part of this presentation. See P.49~P50

4

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Overview of the Settlement for the Fiscal Period Ended September 2022

・ Operating revenues exceeded the forecast by 56 million yen, chiefly due to progress with leasing.
・ Operating income was 103 million yen more than forecast as brokerage fees and repair expenses
were lower than forecast, among other factors.
・ Distribution per unit excluding temporary factors exceeded the forecast by 81 yen to become 2,305
yen.

Distribution Per Unit
¥195 from the previous fiscal¥3,000 (down
period, ± ¥0 vs. forecast)(Unit: Million yen)
Period ended
Period ended Period ended
September
SeptemberMarch 2022
2022
2022
actualactualforecast
(A)
(B)
(C)

Vs. forecast

(C-A)

(C-B)

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

6,902
6,902
－
3,474
3,057
881
1,060
1,116
416

- 1,626- 173- 1,452
- 12
32
9
33
-9
- 44

56
56
－
- 46
- 46
0
- 46
-0
-0

(d)=(a)-(b)

4,051

3,741

3,844

- 206

102

(d)+(c)

5,177

4,858

4,960

- 216

102

5,042
0
358
4,685
4,537

3,324
0
388
2,936
3,257

3,428
0
385
3,043
3,331

- 1,614-0
27- 1,641- 1,206

103
0
-3
107
73

319

- 702

- 628

- 948

73

Distribution per unit (yen)

4,217
3,195

3,960
3,000

3,960
3,000

- 257
- 195

－
－

Distribution per unit excluding temporary
factors (yen) *

2,481

2,224

2,305

- 176

81

1,320,000

1,320,000

1,320,000－－

Rental revenues(a)Gain on sale of real estate
Operating expenses
Property-related expenses(b)

Property and other taxes
Overhead expenses
Depreciation(c)

Selling, general and administrative expenses
Profits and losses from realestate rental business
Earnings before depreciation
and amortization (NOI)
Operating income
Non-operating revenues
Non-operating expenses
Ordinary income
Profit
Net increase/decrease of reserve for reduction
entry
Total distribution

Total number of outstanding investment units(Unit: Million yen)

Operating revenues<Rental revenues>● Impact mainly from tenant vacation and new occupancy● Contract cancellation fees
● Higher utilities income due to increased consumption by tenants● Full-year impact of tenant vacation at Shinbashi Ekimae MTR
Building that occurred in the previous period● Absence of the late surrender fees at Shinbashi Ekimae MTR
Building that occurred in the previous period＜Gains on sale of real estate＞● Absence of gain on sale of part of Tokyo Shiodome Building

94
23
11
-229
-78
-1,452

Operating expenses<Property-related expenses>● Increase in brokerage fee● Growth in utilities expenses due in part to an increase in
consumption by tenants and energy adjustment expenses, etc.
● Decrease in repair expenses● Decrease in property management fees due to an increase in the
return of common charges at Kioicho Building<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

47
43
-31
-22
-25
-22

Non-operating expenses* Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, etc.

● Increase in interest paid

27

Vs. forecast
Operating revenues<Rental revenues>● Impact mainly from tenant vacation and new occupancy

34

Operating expenses■ Balance of internal reserves
Period ended
Mar.2022(Actual)▮ Main factors in change
Vs. previous fiscal period

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（Unit: Million yen）
Period ended
Sep.2022
Vs. previous(Actual)fiscal period<Property-related expenses>● Decrease in intermediate fees
● Repair expenses fell below forecast

-30
-13

(*)

2,553

1,636

- 917

*Income taxes deferred + net increase/decrease of reserve for reduction entry5Factors for Change in Distributions per Unit

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package(the fiscal period ended 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

3,000

714
71

2,481

Reversal ofinternal reserves

18

Contract
cancellation
fees
Impact mainly
from tenant-173
vacation and new Full-year impact of-59
occupancy
tenant vacation at
Absence of the late
-36
Shinbashi Ekimaesurrender fees Increase in
MTR
at Shinbashi
brokerage fee
Building that
Ekimae MTR
occurred in the
Building that
previous period
occurred in theprevious period

3,000

695

23
-24
Fluctuations
in utilities
revenues, etc

16Increase ininterest paid

-20
Decrease in
Decrease in property
repairmanagement fees due
expenses
to an increase in the
return of common
charges at
Kioicho Building

776

8
Other

2,305

+¥81

2,224

Distribution
excluding the
temporaryfactors

Period ended
March 2022
ActualPeriod ended

Period ended

September 2022 September 2022
ActualActualCurrent
fiscal period

Announced
May 20226

Forecasts for the Fiscal Period Ending February 2023
(October 1, 2022 through February 28, 2023)

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package
1. Overview of the Settlement and Forecasts• The period ending Feb. 28, 2023 has an irregular length of five months due to the merger with MORI
TRUST Hotel Reit, Inc. (dated March 1, 2023).
• Primary factors for the change based on the previous business period (October 2022 - March 2023) are
1. an upward revision of operating revenues due to progress of leasing, and2. an upward revision of operating expenses due to an increase in utilities expenses.

Forecast Distribution Per Unit

¥2,462(Unit: Million yen)
Period ended Forecast for the
September 2022 fiscal period
actualending February Vs. previous2023（ Fivefiscal period
Months ）
(A)

(B)

(B-A)

Previous
forecast for the
fiscal period
ending March
2023
(C)

▮ Main factors in change(Reference)
Oct.2022 Mar.2023(Six Months)

Vs. previous
fiscal period

Vs. previous
forecast

Estimate
(D)

(D-A)

(D-C)

Vs. previous fiscal period

6,902
6,902
－
3,474
3,057
881
1,060
1,116
416

7,168
5,779
1,389
3,297
2,794
879
1,004
910
503

266
- 1,122
1,389
- 176
- 263
-1
- 55
- 206
87

8,298
6,909
1,389
3,563
3,105
878
1,133
1,094
458

8,358
6,968
1,389
3,628
3,166
879
1,193
1,094
461

1,455
66
1,389
153
108
-1
132
- 21
45

59
59
－
64
60
1
59
－
3

(d)=(a)-(b)

3,844

2,985

- 859

3,803

3,802

- 42

-1

(d)+(c)

4,960

3,895

- 1,065

4,897

4,896

- 64

-1

3,870
0
327
3,543
3,450

442
-0
- 58
500
119

4,734
0
408
4,326
4,189

4,730
0
397
4,332

1,301
-0
11
1,289

-4
－
- 11
6

Profit

3,428
0
385
3,043
3,331

Net increase/decrease of reserve for reduction
entry

- 628

200

829

295

3,960
3,000

3,249
2,462

- 710
- 538

3,894
2,950

2,305

1,742

- 563

2,260

1,320,000

1,320,000－

1,320,000

Operating revenues
Rental revenues(a)Gain on sale of real estate
Operating expenses
Property-related expenses(b)

Property and other taxes
Overhead expenses
Depreciation(c)

Selling, general and administrative expenses
Profits and losses from realestate rental business
Earnings before depreciation
and amortization (NOI)
Operating income
Non-operating revenues
Non-operating expenses
Ordinary income

Total distribution
Distribution per unit (yen)Distribution per unit excluding temporary
factors (yen) *Total number of outstanding investment units* Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, etc.

(Estimate for Oct. 2022 - Mar. 2023)(Unit: Million yen)

Operating revenues<Rental revenues>● Increase due to tenant occupation at Tokyo Shiodome Building.
● Absence of contract cancellation fees
● Decrease in utilities revenues due in part to seasonal fluctuations＜Gains on sale of real estate＞● Gain on sale of part of Shinbashi Building

103
-23
-31
1,389

Operating expenses<Property-related expenses>● Increase in repair expenses● Increase in property management fees for Kioicho Building due to adecrease in the common-area charges refunded● Increase in utilities expense partly due to an increase in the unit pricefor electricity<Selling, general and administrative expenses>● Increase in asset management fee● Increase in consumption tax not eligible for deduction

63
22
33
19
22

Vs. previous forecast
Operating revenues● Upward revision due to new tenant occupation

38

Operating expenses● Upward revision of utilities expenses

49■ Balance of internal reserves（million yen）

PeriodendingSep. 2022
forecast

1,636

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

1,929

292 *Income taxes deferred + net increase/decrease of reserve for reduction entry7

2. Operation Status

8

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Recognition of Conditions

2. Operation Status

Leasing market
・ 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.

Selling and buying market
・ 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..
Conditions of Investment Market▮ Trend in vacancy rates and unit rents inTokyo business district(%)▮ Trend in transaction yield of standard ClassA buildings

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

20

(yen/
month, tsubo)
25,00015

20,00010

15,000▮Situations of recognition of the market cycle
among real estate investors
0%

20%

40%

0%

20%

40%

60%

80%

100%

60%

80%

100%

Apr. 2014
Apr. 20157%

Apr. 2016
Apr. 2017
Apr. 2018

6%

Apr. 2019
Apr. 2020

5%

Apr. 2021
Apr. 2022

10,000

5

4%
5,000

Source: Prepared by MTR based on data published by Miki Shoji Co., Ltd.
Tokyo business districts: Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku,
and Shibuya-ku

3%

2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

Mar-22Mar-21

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

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-09Mar-08Mar-07Mar-060

Sendai
SapporoFukuoka
NagoyaMidosuji, Osaka

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.

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)

9Management situation of properties owned

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

2. Operation Status

Leasing status of Tokyo Shiodome Building
Occupancy rates as of the date of earnings announcement (on the basis of contract conclusion (includes offers))
All properties: approx. 99% (up 21% from the date of the previous earnings announcement)
Office and retail units: approx. 98% (up +30％)
・ Full occupancy has nearly resumed in light of the recovery in demand for large office buildings in the Tokyo area.

Leasing status of Shin-Yokohama TECH Building
Occupancy rates as of the date of earnings announcement (on the basis of contract conclusion)
Approx. 78% (up 8% from the date of the previous earnings announcement)
・ A certain level of occupancy resumed in the Shin-Yokohama area despite relatively low tenant activity.
→ Continue leasing strategies focusing on occupancy rates

Leasing status of Shinbashi Ekimae MTR Building
・ Decided to implement asset replacement with Sendai MT Building, a property developed by a sponsor (divided into three phases)

10

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Asset Replacement (Sale of Shinbashi Ekimae MTR Building and Acquisition of Sendai MT Building)

2. Operation Status■ Overview of asset replacement
Sale

Asset
for Sale
Sale price

Acquisition

Shinbashi Ekimae MTR Building
Period ending
Mar.2023

Period ending
Aug.2023

Period ending
Feb.2024

co-ownershipinterest: 1/3

co-ownershipinterest: 1/3

co-ownershipinterest: 1/3¥7,266 million¥7,266 million¥7,266 million

Total ¥21,800 million
Book value
Profit (Note1)
Buyer¥17,240 million（as of September 30, 2022）
Approx. ¥1,300
millionApprox. ¥1,300
millionApprox. ¥1,400
million

MORI TRUST CO., LTD.

Asset
for Acquisition
Acquisition
priceAppraisal
value
Expected NOI(Note2)

SellerSendai MT Building
Period ending
Mar.2023

Period ending
Aug.2023

Period ending
Feb.2024

co-ownershipinterest:
90,845/300,000

co-ownershipinterest:
90,845/300,000

co-ownershipinterest:
90,845/300,000¥5,266 million¥5,266 million¥5,266 million

Total ¥15,800 million¥15,800 million（as of June 30, 2022）¥798 million / year
MORI TRUST CO., LTD.

■ Background to and purposes of asset replacement（Background to asset replacement）
Shinbashi Ekimae MTR Building
After the tenant that leased the entire building left (December 2021),
MTR examined both leasing and sale.

（Purposes of asset replacement）(1) Achieve stable earnings early

Leasing
Due to COVID-19, MTR was not able to identify demand from any
tenant that will lease the entire building or multiple tenants that will
occupy the entire building.

(2) Increase distributions through the realization of an
unrealized gain and stabilize the level of distributions
by increasing internal reserves

Sale of the property- MTR intended to achieve stable earnings and primarily examined
replacement of the property with other properties.

(3) Stabilize earnings and maintain the portfolio yield- Acquire an office building in a core regional city, a building
whose occupancy rate is stable and whose yield is higher
than the yields of properties in central Tokyo.

Although there were a number of inquiries regarding the sale of theproperty, MTR received no concrete proposals on replacement
candidates from any party other than Mori Trust Co., Ltd. (sponsor).
* The notes on this page constitute an integral part of this presentation. See P.49~P50

11Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

New Property Acquisition (Sendai MT Building)Summary of Asset for Acquisition
Property nameLocation
Use
OwnershipLand
Building

Sendai MT Building
4-2-3, Tsutsujigaoka, Miyagino-ku, Sendai-shi, Miyagi
Office building
Owned
Owned (co-owned interest: 90.8450%)
5,020.33 m2 (Land area registered for the entire building
lot）
Area
Land
4,491.16 m2 (Land area registered for exclusively owned
space to be owned）
Building
42,941.53 m2 (Floor area registered for the entire building)Number of floors
18 floors above ground, 2 floors below groundMonth/year of completion March 1999
Seismic risk (PML) (Note1) 4.9%

2. Operation Status

Characteristics of the property(Location)- The property is conveniently located in terms of public transportation (a 4-minute walkfrom JR Sendai Station).
- The JR Sendai Station Eastside Development project is in progress, and the vitality of
the area is expected to increase.
(Building and facilities)- The area of the floor spaces on the standard floors is approximately 470 tsubo. Thesefloor spaces, which are regularly shaped and divisible, may be leased flexibly totenants whether they require large floor spaces or small ones.
- Japan's first high-rise building with a seismic isolation structure. Has a high seismic
performance.
Basically, the Great East Japan Earthquake caused no damage to theproperty's facilities, interior decorations, office furniture, fixtures or
structure.
- Equipped with emergency power generators that can be operated for longer than 24hours and various types of emergency supplies, the property supports tenantcompanies by ensuring that their business contingency plans (BCP) are implemented
effectively.

Master lease agreement with sponsor
・ Will sign a master lease agreement with sponsor
contract type
Lease period
Total rent area
Total rentable area

Remarks

Building lease (master lease contract)
From February 28, 2023 to February 29, 2028
39,010.23㎡（Note2）
39,010.23㎡（Note2）
A master lease agreement, under which rent income islinked to rents under sublease agreements, will be used forthe property.
The number of tenants and the occupancy rate undersublease agreements as of July 29, 2022 are as shown
below.
（total number of tenants ）45
99.9％（occupancy rate）* The notes on this page constitute an integral part of this presentation. See P.49~P50

12Financial Status

Fiscal Period Ended September 2022 (41st 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)

Consider the amount, period, and other conditions of borrowings inview of a further interest-rate raise and achieve financing at the optimalbalance amid the ongoing rise in the base interest rate.

●Changesin0
2 borrowings
4

6

13

8

0.68%

0.72%

11

10

12
0.81%

0.71%

0.53%

0.61%

9

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

Borrowing summary
Total amount
20,000 million yen
Average loan term
5.5yearAverage interest rate
0.68%

0.47%
0.45%
0.43% 0.53%
0.35%
0.45%

7

0.51%

0.41%

Average interest rate on
repayments in each period
0.31%

0.34%

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

4.7(Issuance of Twelfth Series Investment Corporation Bonds)

4.0

3.7

4.3

3.6

5.3

4.6

5.3

4.5

5.5

Bond name

Term

Issuance amountInterest rateIssuance date

18th unsecuredinvestment
corporation bonds

5 years and8 months

2,000 million yen

0.420%

June 20, 2022-1

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

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

0.01%

Average loan period (year) of
borrowings in each period

1

Flexibly respond to investors’ demand for medium-term bonds and issue 5year 8-month bonds for 2 billion yen to prepare for future capital requirements.

Average interest rate on
borrowings in each period

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

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

September 30,
2022(End of 41st
fiscal period)

Loan repayment schedule diversification（million yen）
20,000（Schedule for repayment within one year）

Investment corporation bonds
Long-term loans
Short-term loans

Fiscal period ending February 2023
Repayment summary
Total amount
11,50020,000 million yen
Average loan term
4.3year
4.5yearAverage interest rate
0.40%
0.45%

15,000

3,000

3,000

10,000

8,500
6,000
5,000

14,000 13,000 14,500
10,000

9,000
7,000

4,000
0

PeriodendingFebruary
2024

PeriodendingAugust2024

PeriodendingFebruary
2025

PeriodendingFebruary
2026

PeriodendingAugust2026

PeriodendingFebruary
2027

2,500

2,000

1,000
PeriodendingAugust
2025

3,500

4,500

3,000
PeriodendingAugust
2023

7,500

9,000

9,000

8,000

1,000
PeriodendingFebruary
2023

7,000

PeriodendingAugust2027

PeriodendingFebruary
2028

PeriodendingAugust2028

PeriodendingFebruary2029

PeriodendingAugust2029

500
PeriodendingFebruary
2030

PeriodendingAugust
2030

1,000

1,500

1,000

1,000

1,000

PeriodendingFebruary
2031

PeriodendingAugust2031

PeriodendingFebruary
2032

PeriodendingFebruary
2036

PeriodendingFebruary2037

13

Fiscal Period Ended September 2022 (41st 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 September 2022)(Million yen)March 31,2022

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)

September 30,
2022(Million yen)
Balance ofborrowings
31,00019.9%

Sumitomo Mitsui Banking Corporation

27,00017.3%

Sumitomo Mitsui Trust Bank, Limited

19,00012.2%

MUFG Bank, Ltd.

14,5009.3%

Development Bank of Japan Inc.

12,500

8.0%

Resona Bank, Limited.

6,000

3.8%

The Bank of Fukuoka, Ltd.

5,500

3.5%

Aozora Bank, Ltd.

5,500

3.5%

The NorinchukinBank

4,500

2.9%

The Nishi-Nippon City Bank, Ltd.

3,500

2.2%

Shinkin Central Bank

2,000

1.3%

Classification
Loans

Change154,000

156,000

2,000

6,000

6,000

ー

LenderMizuho Bank, Ltd.

(%)

135,000

135,000

ー

13,00015,0002,000

LTV (Loan To Value ratio)

47.3%

47.9%

0.5%

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

96.1%

96.2%

0.0%

Fixed interest-bearing liabilities ratio

96.1%

96.2%

0.0%

Average interest for borrowings during fiscal period

0.45%

0.48%

0.03%

Mitsui Sumitomo Insurance Company, Limited

2,000

1.3%

The 77 Bank, Ltd.

1,500

1.0%

The Hachijuni Bank, Ltd.

1,000

0.6%

Mizuho Trust & Banking co., Ltd.

1,000

0.6%

The Ashikaga Bank, Ltd.

1,000

0.6%

Short-term loans

0.21%

0.21%

0.00%

Long-term loans and investment corporation bonds

0.46%

0.49%

0.03%

3.3year

3.5year

0.2yearAverage duration of interest-bearing liabilities▮ Rating
Rating agency

Japan Credit Rating Agency, Ltd. (JCR)

Liabilities rated

Long-Term Issuer Rating

Rating (outlook)

AA (stable)

SUMITOMO LIFEINSURANCECOMPANY

1,000

0.6%

Shinsei Bank, Limited

1,000

0.6%

Nippon Life Insurance Company

1,000

0.6%

The Dai-ichi Life Insurance Company,Limited
Subtotal
Investment corporation bonds
Total▮ Changes in LTV
48.0%
46.4%

March 31,2017

September 30,
2017

500

0.3%

141,000

90.4%

15,0009.6%

156,000

100.0%

Standard LTV: 50%

47.2%

47.1%

47.2%

47.2%

47.1%

47.1%

47.5%

47.2%

47.4%

March 31,2018

September 30,
2018

March 31,2019

September 30,
2019

March 31,2020

September 30,
2020

March 31,2021

September 30,
2021

March 31,
2022

47.9%

September 30,
2022

14

3. Initiatives Related to ESG

15

Initiatives Related to ESG

Fiscal Period Ended September 2022 (41st 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.

16

Initiatives Related to ESG

Fiscal Period Ended September 2022 (41st 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 2022 designation for thesixth 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.

17

Fiscal Period Ended September 2022 (41st 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

18

Fiscal Period Ended September 2022 (41st 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

Act

implementation system• Setting reduction targets for eachenergy indicator• Development of reduction plans for eachenergy indicator＜Environmental Performance Targets＞
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)

Plan＜Environmental Performance Data＞
Item

Check

Do

values for each energy indicator• Implementation of reduction plans foreach energy indicator

Energyeach energy indicator* The notes on this page constitute an integral part of this presentation. See P.49~P50

Water

2021

39,32736,541

30,254

t-CO2

－

624

594

604

Scope2 (Indirect emissions)

t-CO2

－

3,100

2,648

2,598
22,219Emissions intensity• Management of energy indicator targets• Checking progress of reduction plan for

2020

t-CO2

Scope3 (Tenant's emissions)• Obtaining knowledge of actual

2019

Baseline

Scope1 (Direct emissions)

Emissions
CO2

unit

Consumption
Consumption intensity
Consumption
Consumption intensity

t-CO2

25,421－32,81727,012t-CO2/㎡

0.095

0.083

0.069

0.064

MWh

101,814

99,076

84,37075,540

MWh/㎡

0.246

0.224

0.191

0.189

㎥

546,827

512,893

325,073

282,065

㎥/㎡

1.317

1.161

0.737

0.706

19

Fiscal Period Ended September 2022 (41st 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・Kamiyacho Trust Tower・Osaki MT Building
・Midosuji MTR Building・Hiroo MTR Building ・Tenjin Prime
・Shin-Yokohama TECH Building ・SHIBUYA FLAG
・Hotel Okura Kobe・Park Lane Plaza etc＜Introduction of Highly Efficient Heating Systems/
Renewal of air-conditioning systems＞
MTR is working on increasing comfort and reducing CO2 through the introduction ofhighly efficient heating systems whose energy efficiency is excellent and renewal withhighly efficient air-conditioning systems whose energy saving performance is highupon the replacement of air-conditioning systems.
(Examples of introduction) ・Tokyo Shiodome Building・ON Building
・Kioicho Building・Osaki MT Building ・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 Building Energy Management Systems (BEMS)＞
MTR is working to introduce building energy management systems (BEMS) in theproperties it owns to measure the energy efficiency of entire buildings, thereby achieving
energy saving and creating optimal indoor environments.
(Examples of introduction) ・Kamiyacho Trust Tower＜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* The notes on this page constitute an integral part of this presentation. See P.49~P50＜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 Building

etc.

＜Protection of Biodiversity＞
The Kamiyacho Trust Tower provides a comfortable green space and a waterfront
terrace for waterscape relaxation, among other facilities. We conserved a large camphor
tree, which is more than 100 years old, by transplanting it within the premises with thetraditional tatebiki (tree sliding) method, creating a biodiversity-conscious biotope in the
5,000-square-meter green space that offers the area's original landscape.
Such activities were highly recognized, and we received the Chairman's Award in the
42nd Green City Award from the Organization for Landscape and Urban GreenInfrastructure.
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 full ofgreenery, worthy of the name "Garden", and contributes to symbiosis and coexistencewith nature and the protection of biodiversity.

＜Properly Dealing with Environmental Issues such as Contamination＞
When acquiring real estate, assessing beforehand whether there are harmful
substances such as PCBs or asbestos, soil contamination or other environmental
issues is an integral part of the process.
We deal with any issues with real estate held such as the presence of harmful
substances through appropriate measures, management or treatment in accordancewith laws and regulations.

＜Management of waste＞
We are working on the continuous reduction of waste by properly managing waste in
our portfolio.

Item

Total amount of waste (t)

2021

2,063
20

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Initiatives Related to ESG (Environment)

3. Initiatives Related to ESG

Collaboration with Tenants and Suppliers＜Reduction of waste＞＜Introduction of green lease＞

When carrying out construction work, MTR is continuously working to reduce waste incollaboration with contractors.

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.

＜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.

In addition, MTR carried out renovations for energy saving (changing lighting to LED lights),
paying the costs, and will receive green lease fees, which are calculated based on a
reduction in electricity charges the tenants pay after the renovations, from the tenants.
(Examples of introduction) ・Kioicho Building ・Osaki MT Building

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)▮ 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）
21

Fiscal Period Ended September 2022 (41st 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

22

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

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

Initiatives for Employees▮ Initiatives for Employees＜Employee Training by MTR's asset management company(MTAM) ＞＜Personnel Evaluation and Feedback＞

MTAM bears the cost of participation in training and examinations and otheractivities to support all regular employees in gaining qualifications anddeveloping necessary business skills in order to improve their professional
skills.
MTAM’s employees also take part in diverse human resource development
programs prepared by Mori Trust Co. Ltd., which is MTAM’s sponsor.
(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
Certified Master and homebuilder
・External seminars on practical accounting and tax issues
・External seminars on compliance(Sponsor's human resource programs)

We hold meetings with all employees to give them feedback on their latest
personnel evaluations once a year. The employee is told of their personnel
evaluation, and the employee and evaluator share information on theoperational roles that the employee is expected to play and the skills theemployee should improve.
All employees meet with their supervisors four times a year to set goals,
assess progress, and evaluate achievement.
The employee sets targets to achieve through business operations andpersonal performance goals quarterly and reviews with their supervisor theirprogress against their personal goals and the achievement level. The personalgoals are changed if needed.
Using the above personnel evaluation feedback system and management-byobjectives system, we increase the transparency and persuasiveness ofevaluations and encourage employees to increase their abilities and motivation.
＜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%

Companywide presentation competition on the future vision of MORI TRUSTRegular (*)/Non-regular
employee ratios

Regular employees : 78%

Non-regular employees : 22%

Themes: New business, company-wide reform*Regular employees consist of employees seconded from the sponsor group.

・MT TALK・MT ACADEMY
Study meetings and workshops on new business knowledge and approaches＜Implementation of employee satisfaction surveys＞

Themes: Critical thinking, design thinking, SDGs, etc.

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.

・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.

23

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

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

Initiatives for Human Rights / Information Disclosure etc.
▮Initiatives for Human Rights＜Policy of Respect for Human Rights＞
Based on the "Respect for Human Rights" section of its Sustainability Policy,
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.
The matters the Asset Management Company must comply with are as follows:(1)Respect for Human Rights
Our internal regulations prohibit all acts that could be construed as
discrimination on the grounds of gender, age, nationality, race, ethnicity, creed,
religion, Sexual orientation, gender identity, social identity, physical disability orother differences or as sexual harassment and power harassment. We aim tocreate a workplace environment where the rights and personality of theindividual are respected, and diverse human resources can thrive.
(2) Prohibition on child labor and forced labor
MTAM support and practice the effective abolition of child labor and forced labor.
We observe the minimum working age stipulated by laws and ordinances, anddo not force workers to engage in labor contrary to their own free will.
(3) Respect for freedom of association and collective bargaining rights
MTAM support and respect freedom of association and collective bargaining
rights, and do not discriminate with regard to employment, promotion, dismissal
or decisions to transfer workers, in accordance with relevant laws andordinances.
(4) Control excessive work hours and overtime work
MTAM comply with labor-management agreements on overtime work (Article 36
Agreements) and strive to control excessive working hours and overtime work.
(5) Payment of wages equal to or above the minimum wage
MTAM pay employees wages equal to or above the minimum wage stipulated bylaw, to ensure stable lifestyles.
(6) Compliance with equal pay for equal work
MTAM prohibit unreasonable differences in treatment between regular(permanent) and irregular (non-permanent) workers, in accordance with relevantlaws and ordinances.

＜Scheme for listening to grievances from officers and employees＞
We listen to employees regarding their grievances and frustrations in each
workplace, identify organizational or individual violations of laws and regulations,
including abuses of human rights and acts of discrimination and harassment,
and take appropriate steps through the whistleblowing system applicable to all
managers and staff members in the workplace (managers and staff members
including part-time employees, contract employees, employees dispatched fromother companies and temporary staff).
Under this system, whistleblower are able to make reports anonymously. In
addition, dismissal, disciplinary measures, retaliation or any other treatment
disadvantageous to the whistleblower on account of such whistleblowing is
prohibited.

▮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 bedisclosed and information that has been deemed beneficial in investors'
making of investment decisions in a timely and appropriate manner.

▮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 September 2022 (41st 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 September 30, 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.

25

Fiscal Period Ended September 2022 (41st 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
themesAction Plans

Safety andsecurity

・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

Environment

・Urban development through the protection of landscapes and biodiversity and the sustainable
use of resources
・More widespread use and more stable supply of renewable energy
・Proper collaboration with various stakeholders

Work/Lifestyles

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

Innovation

・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
Platinum 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).

26

4. Characteristics of MORI TRUST Sogo Reit, Inc.

27

Fiscal Period Ended September 2022 (41st 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 September 30, 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.49~P50

28.8%
100%

28

Fiscal Period Ended September 2022 (41st 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 the end of September 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 September, 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 September 2022)

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

29

Fiscal Period Ended September 2022 (41st 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)

30

5. Reference31

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Balance Sheets

5. Reference
Thousands of yen
As of March 31,2022

As of September 30,
2022

Assets

As of March 31,2022

As of September 30,
2022

Liabilities

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

14,680,828

16,534,395

3,197,268
41,862
1,334

3,089,760
77,534-47,914
9,296

86,346
15,44917,978,504

19,803,486

Non-current assets
Property, plant and equipment

Current liabilities
Operating accounts payable

242,061

307,7096,000,000
4,000,000
25,500,000

6,000,000
4,000,000
18,000,000

110,421429,156

58,604430,289

Income taxes payable
Accrued consumption taxes

7,185
879
108,676

8,073
867
233,884
809,224

Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Dividends payable

Buildings

17,209,486

16,770,597

Advances received

913,270

Structures

31,01730,393

Deposits received

916

322

Machinery and equipment

28,642

26,237

Total current liabilities

37,312,567

29,848,976

Tools, furniture and fixtures

Non-current liabilities

23,80723,483

Land

114,585,335

114,585,335

Investment corporation bonds

Buildings in trust

21,141,169

20,569,225

Long-term loans payable

Structures in trust

75,77571,277

Tenant leasehold and security deposits

Machinery and equipment in trust

55,456

58,102Tenant leasehold and security deposits in trust

Tools, furniture and fixtures in trust

36,97633,395

Deferred tax liabilities

Land in trust

153,797,970

153,798,827

Total property, plant and equipment

306,985,638

305,966,876

Other

240

240

Total intangible assets

240

240

Guarantee deposits

10,00010,000Long-term prepaid expenses

38,96866,825

Total non-current liabilities
Total liabilities

9,000,000

11,000,000

109,500,000

117,000,000

7,565,023

7,555,628

932,717918,125

803,422514,820

127,801,163

136,988,574

165,113,730

166,837,550

153,990,040

153,990,040

Intangible assets

Investments and other assets

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

Other

2,815

2,815

Reserve for reduction entry

1,430,418

1,750,398

Total investments and other assets

51,78379,640Total voluntary retained earnings

1,430,418

1,750,398

306,046,756

Unappropriated retained earnings

4,537,379

3,331,238

Total surplus

5,967,798

5,081,637

159,957,838

159,071,677

Total non-current assets

307,037,662

Deferred assets
Investment corporation bond issuance costs

55,401

58,984

Total deferred assets

55,401

58,984

325,071,568

325,909,227

Total assets

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

159,957,838

159,071,677

325,071,568

325,909,227*The balance of internal reserves as of September 30, 2022 was 2,265 million yen(total amount of deferred tax liabilities and a reserve for reduction entry)

32

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Statements of Income and Retained Earnings

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

Operating revenue
6,739,063

6,603,932

337,252

298,407

Gain on sale of investment property

1,452,077-

Total operating revenue

8,528,392

6,902,340

Lease business revenue
Other lease business revenue

Operating expenses
3,025,005

3,057,896

Asset management fee

329,091

307,505

Asset custody fee

13,102

12,987Administrative service fees

45,86945,076

Expenses related to rent businessDirectors' compensations

3,600

3,600

Other operating expenses

69,376

46,950Total operating expenses

3,486,044

3,474,016

5,042,348

3,428,323

Operating income

Thousands of yen

Thousands of yen
For the period
from April 1, 2022
to September 30, 2022

Non-operating income
Interest income

104

90

Reversal of dividends payable

753

845

Interest on refund

110-

Total non-operating income

969

936

Interest expenses

325,041

345,823

Interest expenses on investment corporation bonds

22,83327,158

Amortization of investment corporation bond

8,933

8,874

other

1,374

3,886

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 October 1, 2021
to March 31, 2022

For the period
from April 1, 2022
to September 30, 2022

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

6,244,322
236,001
123,609298,4076,902,340

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

717,358
255,836
881,367
19,142
41,623
1,116,153
26,414
3,057,896

4,051,310

3,844,443

Non-operating expenses

358,184

385,741

Ordinary income

Total non-operating expenses

4,685,132

3,043,518

Profit before income taxes

4,685,132

3,043,518

Income taxes - current

895

881

Income taxes - deferred

146,858(288,601)

Total income taxes

147,753(287,720)

4,537,379
4,537,379

3,331,238
3,331,238

ProfitUnappropriated retained earnings

33

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

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

5. Reference▮ Statements of Cash Flows(yen)

Thousands of yen

For the period
For the period
from April 1, 2021
from April 1, 2022
to September 30, 2021 to September 30, 2022
Ⅰ．Unappropriated retained
earnings

4,537,379,582

3,331,238,876

134,114,736

628,761,124

4,217,400,000

3,960,000,000(3,195)(3,000)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 carriedforward454,094,318-－-

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

For the period
from April 1, 2022
to September 30, 2022

4,685,132
1,125,735
8,933
(104)
347,875(522)(80,181)
99,0503,043,518
1,116,153
8,874
(90)
372,981(35,671)(10,983)
125,207

Increase (Decrease) in advances received(86,145)(104,045)

Decrease due to sale of investment property
Other, net

12,520,098(106,676)(89,768)

Subtotal

18,513,195

4,426,175

104(346,685)

90(353,781)

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

(622)

(892)

18,165,991

4,071,591(34,126)(69,009)(14,344,757)(2,385,217)(80,198)(90,166)

Proceeds from tenant leasehold and security deposits

326,611160,283

Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust(16,369)
5,120(25,275)
7,804

Other
Net cash used in investing activities
Cash flows from financing activities393-(16,448,345)(96,562)

Proceeds from long-term loans payable

14,500,000

17,000,000

Repayments of long-term loans payable(14,500,000)(17,000,000)

Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds

2,000,000(3,000,000)

2,000,000-

Payments for investment corporation bond issuance costs
Dividends paid
Net cash used in financing activities(15,558)(12,457)(4,687,104)(5,072,662)(4,216,512)(2,228,969)

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

1,746,059

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

21,863,112
17,878,096

17,878,096
19,624,156

34

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Changes in Indicators

5. Reference（Unit:million yen）

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)Period ended
September 2022
(41st fiscal
period)Formula

8,882

8,789

9,202

8,528

6,902

－

－

1,433

1,452

－

Operating expenses

3,445

3,325

3,638

3,486

3,474

Operating income

5,437

5,464

5,563

5,042

3,428

Ordinary income

5,059

5,116

5,205

4,685

3,043

Profit

5,058

5,115

5,041

4,537

3,331

Total distribution

5,058

5,115

4,686

4,217

3,960

Total assets

328,915330,301

328,288

325,071

325,909

Interest-bearing liabilities

155,000

157,000

155,000

154,000

156,000

Total net assets

160,123

160,180

160,106

159,957

159,071

Unrealized gain/loss

36,21537,00535,092

39,12444,033

NAV

191,280

192,070

190,512

194,864

199,144 NAV = Total net assets + Unrealized gain/loss - Total distribution

Profits from real estate rental business

5,890

5,909

4,615

4,051

3,844

Depreciation and amortization

1,308

1,126

1,113

1,125

1,116

NOI

7,199

7,036

5,729

5,177

4,960 NOI = Profits from real estate rental business + Depreciation and amortization

FFO

6,366

6,242

4,721

4,211

4,447 FFO = Profit + Depreciation and amortization – Gain/loss on sale of real estate

216

416

287

213

Net cash flows

6,982

6,619

5,442

4,963

4,864 NCF = NOI – Capital improvements

ROA (annualized)

3.1%

3.1%

3.2%

2.9%

1.9% ROA = (Ordinary income / Total assets) / 6 × 12 * Annualized

ROE (annualized)

6.3%

6.4%

6.3%

5.7%

4.2% ROE = (Profit / Total net assets) / 6 × 12 * Annualized

LTV ratio

47.1%

47.5%

47.2%

47.4%

47.9% LTV = Interest-bearing liabilities / Total assets

1,320,000units

1,320,000units

1,320,000units

1,320,000units

1,320,000units

3,832yen

3,875yen

3,550yen

3,195yen

3,000yen

Total net assets per unit

121,305yen

121,348yen

121,292yen

121,180yen

120,508yen

NAV per unit

144,909yen

145,507yen

144,327yen

147,624yen

150,867yen

FFO per unit

4,823yen

4,728yen

3,576yen

3,190yen

3,369yen

Operating revenues
Gain on sale of real estate

Capital improvements

Total number of outstanding investment units
Distribution per unit

96

35

Fiscal Period Ended September 2022 (41st 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

4,075

3,749

4,001

4,015

3,900

3,927 3,954
3,566

3,763

53.7%

LTV

33.0%

46.9% 46.1%

43.5%

42.4%
42.5%

35.3%

43.6%

4,964

3,921
3,557

3,446

53.0%

(Loan To Value ratio)

28.1%

4,097

3,521

3,300

October 2013
Capital increase
through public offering
4,530

4,534

3,852

3,684

5. Reference

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

48.0%

3,650

3,000

3,875

3,785

3,650

3,550

3,195

47.2%

46.4%

47.1%

47.2%

47.1%

47.2%

47.5%

47.1%

47.4%
47.2%

47.9%

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

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)

Acquired ON Building

Acquired Shinbashi
Ekimae MTR Building

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.

Period
ended
Sep.
2014
(25th
fiscalperiod)Acquired
SHIBUYAFLAG
Acquired Kohnan
SagamiharaNishihashimot
Acquired Tenjin
Prime

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

Period Period
ended ended
Sep.
Mar.
2022
2022
(41st
(40th
fiscalfiscalperiod) period)

Acquired Kamiyacho
Trust Tower
Partially sold Tokyo
Shiodome Building

Additionally Acquired Kamiyacho Trust Tower
Partially sold Tokyo Shiodome Building

36

Fiscal Period Ended September 2022 (41st 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 41st fiscal at end of 41st
fiscal period
period

Ratio

NOI
Yield

Tokyo Shiodome Building

Minato Ward,
Tokyo

Jan. 2005

Apr. 2010

82,53925.4%

74,824

81,400284

0.7%

ON Building

Shinagawa Ward,
Nov. 1990
Tokyo

Aug. 2008

39,90012.3%

38,812

36,200622

3.1%

Kioicho Building

Chiyoda Ward,
Tokyo

Nov. 1989

Oct. 2014

34,30010.6%

32,93838,300662

3.9%

Kamiyacho Trust Tower

Minato Ward,
Tokyo

Mar. 2020

Jul. 2021, etc.

27,9608.6%

27,93432,300461

3.3%

Osaki MT Building

Shinagawa Ward,
Jul. 1994
Tokyo

Mar. 2005, etc.

14,386

4.4%

12,886

17,800311

4.3%

Midosuji MTR Building

Chuo Ward,
OsakaMar. 1999

Apr. 2015

10,170

3.1%

9,871

11,100204

4.0%

Hiroo MTR Building

Shibuya Ward,
Tokyo

Nov. 1992

Jan. 2018

8,100

2.5%

8,329

8,420

140

3.5%

Tenjin Prime

Chuo Ward,
Fukuoka

Oct. 2008

Jul. 2012, etc.

7,050

2.2%

6,659

9,910

195

5.6%

Shin-Yokohama TECH Building

Kohoku Ward,
Yokohama

Feb. 1986, etc. Nov. 2003

6,900

2.1%

6,653

8,280

130

3.8%

SHIBUYA FLAG

Shibuya Ward,
Tokyo

Aug. 2009

Apr. 2013

32,0409.9%

32,39540,700675

4.2%

Shinbashi Ekimae MTR
Building

Minato Ward,Tokyo

Apr. 1999

Apr. 2007

18,0005.5%

17,24021,800-36－

Ito-Yokado Shonandai

Fujisawa City,
Kanagawa

Nov. 2002

Mar. 2003

11,600

3.6%

9,663

11,700332

5.7%

Kohnan SagamiharaNishihashimoto

Midori Ward,
Sagamihara

Aug. 2005

Oct. 2012

7,460

2.3%

7,069

8,330

229

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%

15,395

16,900543

5.7%

Shibuya Ward,Tokyo

Jun. 1988

Dec. 2004

3,200

1.0%

3,097

4,250

87

5.5%

－

－

324,705

100.0%

305,966

350,000

4,960

3.1%

Residential Park Lane Plaza

Total

－

* The notes on this page constitute an integral part of this presentation. See P.49~P50

37

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Appraisal Values of Portfolio Properties at the Fiscal Period-End

5. Reference(Million yen)

End-of-period book value

Use

Name

Acquisition
price

Direct reduction method

End-of-period appraisal value

Cap rate
Period ended
March 2022

Period ended
Period ended
Period ended
September
SeptemberMarch 2022
2022
2022

Difference

PeriodPeriodended
ended
SeptemberMarch 2022
2022

Discounted cash flow(DCF) method
Appraiser

Comparison
with theprevious
fiscal period

Discount
rate

Terminal
cap rate(Note 3)

Tokyo Shiodome Building

82,53975,04574,824

81,40081,400

－

3.3%

3.2%

-0.1%

3.1%

3.2%

Richi Appraisal

ON Building

39,90038,89838,81235,10036,200

1,100

3.4%

3.3%

-0.1%

3.0%

3.4%

Japan Real Estate

Kioicho Building

34,30033,08032,93838,00038,300

300

3.2%

3.1%

-0.1%

2.9%

3.3%

Daiwa Real Estate

Kamiyacho Trust Tower

27,96028,01827,934

31,10032,300

1,200

2.6%

2.5%

-0.1%

2.4%

2.6%

Daiwa Real Estate

Osaki MT Building

14,386

12,924

12,886

17,30017,800

500

3.3%

3.2%

-0.1%

2.9%

3.3%

Japan Real Estate

Midosuji MTR Building

10,170

9,907

9,871

10,500

11,100

600

3.6%

3.5%

-0.1%

3.3%

3.7%

Daiwa Real Estate

Hiroo MTR Building

8,100

8,338

8,329

8,440

8,420

- 20

3.6%

3.6%

－

3.4%

3.8%

Daiwa Real Estate

Tenjin Prime

7,050

6,690

6,659

9,680

9,910

230

3.7%

3.6%

-0.1%

3.4%

3.7%

Japan Real EstateShin-Yokohama TECH Building

6,900

6,719

6,653

8,170

8,280

110

4.6%

4.5%

-0.1%

4.3%

4.8%

Chuo-Nittochi

SHIBUYA FLAG

32,04032,41632,39540,70040,700

－

3.2%

3.2%

－

3.0%

3.4%

Japan Real Estate

Shinbashi Ekimae MTR Building

18,00017,257

17,24021,80021,800

－

3.6%

3.6%

－

3.4%

3.8%

Chuo-Nittochi

Ito-Yokado Shonandai

11,600

9,725

9,663

11,70011,700

－

5.3%

5.3%

－

5.0%

5.5%

Japan Real Estate

Kohnan Sagamihara-Nishihashimoto

7,460

7,095

7,069

8,500

8,330

- 170

5.2%

5.3%

0.1%

5.0%

5.5%

Japan Real EstateFrespo Inage

2,100

2,193

2,193

2,610

2,610

－ －(Note1) －(Note1)

－

7.9%

Hotel Okura Kobe

19,00015,564

15,395

16,90016,900

－

4.9%

4.9%

－

4.7%

5.0%

Richi Appraisal

Residential Park Lane Plaza

3,200

3,110

3,097

4,210

4,250

40

3.3%

3.3%

－

4.0%

3.0%

Chuo-Nittochi

OfficeBuilding

RetailFacility

Hotel－(Note2) Japan Real Estate

Difference
Period ended
Period ended
SeptemberMarch 2022
2022

Total

39,12444,033* The notes on this page constitute an integral part of this presentation. See P.49~P50

Difference

4,909

38

Fiscal Period Ended September 2022 (41st 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
March 2022)
March 31, 2022

Use
Office Building

Master lease basis(Sublease basis)

Retail Facility
Other
Total

Master lease basis(Sublease basis)

April 30,2022

95.4%(81.8%)
94.5%
100%
96.0%
(90.5%)

May 31,2022

95.7%(82.1%)
94.5%
100%
96.1%
(90.6%)

95.5%(81.7%)
94.5%
100%
96.0%
(90.4%)

June 30,2022

July 31,2022

95.2%(81.3%)
94.5%
100%
95.9%
(90.3%)(Period ended
September 2022)
September 30, 2022

August 31,2022

96.4%(83.4%)
94.5%
100%
96.4%
(91.1%)

96.6%(83.6%)
94.5%
99.8%
96.5%
(91.2%)

96.6%(84.6%)
94.5%
99.8%
96.5%
(91.6%)▮ Property-Related Occupancy Rate (Most Recent 5 Fiscal Periods)
Name

Use

Tokyo Shiodome Building（Note2）

ON Building

OfficeBuilding

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

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

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

100%

100%

100%

100%
99.9%
（98.7%）

100%
90.8%（89.5%）

100%
89.7%(89.7%)

－

－

100%

100%
（85.0%）
100%（95.6%）
100%

100%(85.8%)
100%(100%)
87.5%

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

September 30, 2022
(End of 41st fiscal period)

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

100%(66.5%)
100%
94.5%(92.6%)
100%(99.3%)
100%(95.6%)
100%(96.4%)
100%

Kioicho Building（Note3）Kamiyacho Trust Tower（Note4）

Osaki MT Building（Note5）

Midosuji MTR Building（Note6）

Hiroo MTR Building（Note7）100%（99.1%）
100%（98.4%）
100%

Tenjin Prime（Note7）

100%

100%

100%

100%

100%

100%

100%

100%

59.9%

71.7%

Shin-Yokohama TECH Building（Note7）SHIBUYA FLAG

100%

92.2%

92.2%

100%

100%

Shinbashi Ekimae MTR Building

100%

100%

100%

0%

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

100%
99.9%
(99.9%)

95.9%
99.3%
(98.6%)

100%
99.1%(91.9%)

100%
96.0%(90.5%)

96.8%
96.5%
(91.6%)

RetailFacility

Total (Note 8)* The notes on this page constitute an integral part of this presentation. See P.49~P50

39

Fiscal Period Ended September 2022 (41st 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

94.5%
(92.6%)
100.0%(99.3%)
100%(95.6%)
100%(96.4%)

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(Note4)

Fixed-termbuilding lease

March 31, 2025

No
cancellation

Master lease(Note5)

Building lease

March 31, 2023

38
－
(70)
1
Mori Trust Co., Ltd.
(7)
1Mori Trust Co., Ltd.
(13)
1
Tokyo Capital(31) Management Co., Ltd.

(Note2)

Kamiyacho Trust Tower(Note3)

Osaki MT Building(Note4)

Midosuji MTR Building(Note5)

Hiroo MTR Building(Note6)100.0%

9

－

－

－

－

Tenjin Prime(Note6)

100%

13

－

－

－

－

71.7%

17

－

－

－

－

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, 2042

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

96.8%

17

－

－

－

－

96.5%
(91.6%)

106(199)

SHIBUYA FLAG

Hotel

1
(14)

Major tenant/master lessee

Kioicho Building

Shin-Yokohama TECH
Building

RetailFacility

100%(66.5%)

5. Reference

Residential Park Lane Plaza

Total （Note8）(Note6)* The notes on this page constitute an integral part of this presentation. See P.49~P50

40

Fiscal Period Ended September 2022 (41st 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
9,871million yen
11,100million yen
15,129.16㎡
2.1%

January, 2005

November 1990

November 1989

March, 2020

July 1994(Renovated in 2008)

April 2010
82,539million yen
74,824million yen
81,400million yen
191,394.06㎡(Note1)
6.0%

August 2008
39,900million yen
38,812million yen
36,200million yen
32,812.27㎡
8.0%

October 2014
34,300million yen
32,938million yen
38,300million yen
63,535.55㎡(Note2)
11.3%

July 2021, and other
27,960million yen
27,934million yen
32,300million yen
196,037.12㎡(Note3)
6.5%

March 2005, and other
14,386million yen
12,886million yen
17,800million yen
26,980.68㎡(Note4)
11.5%

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Rental revenues

878,784

916,695

982,049

1,055,109

533,103536,931

340,037

357,346

318,730

315,848

Rent

878,784

916,695

893,119

928,486

522,272

524,190

339,558

356,770

281,261

274,869

Common charges

－

－

9,274

8,828

－

－

－

－

6,745

6,745

Land leasing revenues

－

－

－

－

－

－

－

－

－

－

Other rental revenues－－

79,655

117,794

10,831

12,740478

575

30,723

34,234

Property-related expenses

832,246

856,047

551,639

544,022

145,357

159,672

99,877105,262

146,159

156,985

Property and other taxes

361,920

345,981

88,401

90,249－9,525

38,14839,38840,58642,179Property taxes

361,920

345,981 Undisclosed Undisclosed(Note6)(Note6)－

87,07688,924－

9,525

38,14839,38840,58642,179

1,325

1,325

－

－

－

－

－

－

246,820

286,589

312,106

301,875

61,291

66,078

3,193

6,471

60,183

69,126

230,440

274,720

240,952

213,956

46,181

44,915－

1,428

27,30627,094－－56,85774,49913,824

19,862－－25,36830,081

3,760

3,508

1,495

1,596

291

283

816

875

572

614

－

－

800

800

750

750

－

－

500

500

Other taxes
Overhead expenses
Property management fees
Utilities
Casualty insurance
Trust fees
Other expenses
Depreciation and amortization－

12,6198,360

12,00011,024

244

266

2,377

4,167

6,436

10,835

223,504

223,477

151,131

151,896

84,066

84,06858,534

59,40145,38945,679Profits and losses from real estate rental business

46,53860,647535,416

530,225

430,410511,086

387,746377,259

240,160

252,084

172,570

158,863

Earnings before depreciation and amortization (NOI)

270,043

284,125

627,655

622,338

581,541

662,983

471,812461,327

298,695

311,486

217,960

204,542

NOI yield (Note 7)

0.7%

3.1%

* The notes on this page constitute an integral part of this presentation. See P.49~P50

3.9%

3.3%

4.3%

4.0%

41

Fiscal Period Ended September 2022 (41st 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
32,395million yen
40,700million yen
7,766.49㎡
11.9%

April 2007
18,000million yen
17,240million yen
21,800million yen
7,820.45㎡
12.2%

March 2003
11,600million yen
9,663million 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
8,329million yen
8,420million yen
6,709.80㎡
7.3%

July 2012, and other
7,050million yen
6,659million yen
9,910million yen
7,722.04㎡
6.4%

November 2003
6,900million yen
6,653million yen
8,280million yen
25,187.22㎡
8.7%

Rental revenues (thousand yen)

Period ended
March 2022

Period ended
September 2022

5. Reference

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Rental revenues

177,211

182,598

254,115

256,344

265,490

252,906

308,045－

375,045

375,068

Rent

135,509141,788

218,319

218,134

237,024

222,050

229,500－

375,000

375,000

Common charges

18,40818,40819,53019,476

－

－

－

－

－

－

Land leasing revenues

－

－

－

－

－

－

－

－

－

－

Other rental revenues

23,29322,40016,26518,73328,46530,85578,545－45

68

Property-related expenses

52,46357,752

88,66791,596

189,575

193,253

52,46153,769110,729

104,884

Property and other taxes

11,698

11,962

27,31728,922

29,70230,07034,26635,612

38,99839,098Property taxes

11,575

11,84027,31728,922

29,70235,612

38,99839,098

122

122

－

－

－

30,070 Undisclosed Undisclosed(Note6)(Note6)－34,266

Other taxes

－

－

－

－

Overhead expenses

25,33630,32530,411

31,69889,121

92,366

1,184

1,146

10,230

3,949
1,620

Property management fees

4,995

8,696

7,460

7,827

56,27757,565

975

924

1,620

Utilities

15,87818,467

13,625

16,60826,046

31,373

－

－

－

－

236

254

211

225

827

888

209

222

1,004

1,069

Casualty insurance
Trust fees
Other expenses

400

400

750

1,250

－

－

－

－

－

－

3,825

2,507

8,364

5,786

5,969

2,539

－

－

7,606

1,260

Depreciation and amortization

15,42815,46330,93830,97670,75270,816

17,01017,01061,50061,836

Profits and losses from real estate rental business

124,748

124,845

165,447

164,747

75,91459,653645,868

651,808

255,584▲ 53,769

264,316

270,183

Earnings before depreciation and amortization (NOI)

140,176

140,309

196,385

195,724

146,667

130,469

669,841

675,973272,595▲ 36,758

325,816

332,019

NOI yield (Note 7)

3.5%

5.6%

* The notes on this page constitute an integral part of this presentation. See P.49~P50

3.8%

4.2%

－

5.7%

42

Fiscal Period Ended September 2022 (41st 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
7,069million yen
8,330million yen
40,283.77㎡
13.5%

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

September 2006
19,000million yen
15,395million yen
16,900million yen
72,246.86㎡
17.8%

December 2004
3,200million yen
3,097million yen
4,250million yen
5,246.78㎡
14.9%－
324,705million yen
305,966million yen
350,000million yen

Midori Ward, Sagamihara

Period ended
March 2022

Period ended
September 2022

Rental revenues（39,556.71㎡）(Note8)－
Period ended
March 2022

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

Period ended
March 2022－
5.5% (Note9)

Period ended
September 2022

Period ended
March 2022

Period ended
September 2022

123,609

123,609618,490627,790

109,378

110,427

7,076,315

6,902,340

Rent

－

－

618,490627,790

99,877

98,8396,378,952

6,244,322

Common charges

－

－

－

－

9,043

9,043

236,502

236,001Land leasing revenues

123,609

123,609

－

－

－

－

123,609

123,609

Other rental revenues

－

－

－

－

457

2,543

337,252

298,407

8,019

8,020

294,814284,561

34,92736,082

3,025,005

3,057,896

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

Undisclosed Undisclosed(Note6)(Note6)

7,269

7,270

70,24471,497

7,534

7,784

872,062

881,367

7,269

7,270

70,24471,497

7,534

7,784

870,611877,967

－

－

－

－

－

－

1,451

3,399

750

750

22,704

13,034

13,838

14,663

1,027,207

1,060,376

Property management fees

－

－

－

－

8,951

9,408

694,543

717,358

Utilities

－

－

－

－

1,507

1,624

212,236

255,836

7,034

7,426

165

176

18,494

19,142

Overhead expenses

Casualty insurance－－

Trust fees

750

750

2,000

2,000

－

－

7,600

8,100

Other expenses－－

13,669

3,608

3,214

3,452

94,33259,938－－201,865

200,029

13,554

13,634

1,125,735

1,116,153

Profits and losses from real estate rental business

Depreciation and amortization
192,871

203,644

115,589

115,588323,676

343,229

74,451

74,344

4,051,310

3,844,443

Earnings before depreciation and amortization (NOI)

228,716

229,227

115,589

115,588525,541

543,259

88,00587,9795,177,045

4,960,596

NOI yield (Note 7)

6.1%

11.0%

* The notes on this page constitute an integral part of this presentation. See P.49~P50

5.7%

5.5%

3.1%

43

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Interest-Bearing Liabilities

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

Averageinterest rate

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

0.22%
0.22%
0.21%
0.21%

Floating

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

October 8, 2021
October 15, 2021
April 8, 2022
August 31, 2022

▮ Long-term loans
LenderOctober 7, 2022
October 14, 2022
April 7, 2023
August 31, 2023

(Million yen)
Outstanding balanceat end of period

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%
0.50%
0.41%
0.36%
0.39%
0.72%
0.39%
0.55%
0.33%
0.41%
0.31%

Draw down date

Repayment date

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
August 31, 2022
March 12, 2021
September 30, 2020
April 22, 2021
April 24, 2018
May 31, 2021
August 31, 2022
August 30, 2019
August 31, 2020
August 30, 2019

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
February 27, 2026
March 12, 2026
March 31, 2026
April 22, 2026
April 24, 2026
May 29, 2026
August 31, 2026
August 31, 2026
August 31, 2026
August 31, 2026

500
500
1,000
1,000
500
500
500
1,000
3,000
1,500
1,000
500
500
1,000
1,500
1,500
1,500
500
500
500
1,000
1,000
1,500
1,000
1,000
1,000
500
1,500
1,500
1,500
1,000
1,500
1,000
1,000
1,500
3,000
1,000
1,500
500
1,500
2,000
1,000
1,500
1,000
500
2,000
1,500
1,500
135,000

Fixed

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

Averageinterest rate

Fixed

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
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
Nippon Life Insurance Company
Resona Bank, Limited.
Aozora Bank, Ltd.
Resona Bank, Limited.
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
The Nishi-Nippon City Bank, Ltd.
The 77 Bank, Ltd.

Repayment date

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
Sumitomo Mitsui Trust Bank, Limited
The Ashikaga Bank, Ltd.
Aozora Bank, Ltd.
SUMITOMO LIFEINSURANCECOMPANY
The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Trust Bank, Limited
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.
Sumitomo Mitsui Trust Bank, Limited
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
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
The 77 Bank, Ltd.
Shinsei Bank, Limited
Mitsui Sumitomo Insurance Company, Limited
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Total

0.40%
0.39%
0.42%
0.40%
0.56%
0.56%
0.50%
0.51%
0.38%
0.59%
0.63%
0.45%
0.59%
0.55%
0.63%
0.38%
0.48%
0.48%
0.38%
0.56%
0.43%
0.74%
0.50%
0.63%
0.47%
0.55%
0.47%
0.53%
0.54%
0.51%
0.71%
0.51%
0.54%
0.53%
0.59%
0.71%
0.82%
0.59%
0.79%
0.90%
0.92%
0.65%
0.76%
0.62%
0.63%
0.98%
0.66%
0.98%

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

▮ Investment corporation bonds
Balance at end of
periodIssue

12th unsecured investment corporation bonds
13th unsecured investment corporation bonds
16th unsecured investment corporation bonds
6th unsecured investment corporation bonds
18th 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

4,000
3,000
1,000
1,000
2,000
1,000
1,000
1,000
1,000
15,000Interest rate

0.10%
0.17%
0.11%
1.07%
0.42%
0.50%
0.50%
0.75%
1.08%

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
February 26, 2027
April 22, 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
August 31, 2027
September 10, 2027
September 30, 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 11, 2028
April 17, 2028
August 31, 2028
August 31, 2028
October 31, 2028
February 28, 2029
April 11, 2029
April 23, 2029
February 28, 2030
April 11, 2030
April 12, 2030
June 24, 2030
July 19, 2030
August 31, 2030
August 31, 2030
October 28, 2030
February 28, 2031
April 11, 2031

(Million yen)
Issue date

Maturity dateFebruary 20, 2020
February 25, 2021
February 21, 2022
February 26, 2015
June 20, 2022
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 29, 2028
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:¥156,000 million
Borrowed and issued during the 41st period ended September 2022.

44

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Investors

5. Reference▮ Top 10 Unitholders (Total number of outstanding investment units: 1,320,000)
Unitholders(As of September 30, 2022)

Number of units held

Ownership ratio

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

350,070
248,970

26.52%
18.86%The Master Trust Bank of Japan, Ltd. (trust account)

131,193

9.94%

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

43,2603.28%

SSBTC CLIENT OMNIBUS ACCOUNT

17,739

1.34%

STATE STREET BANK WEST CLIENT - TREATY 505234

16,215

1.23%

LEGAL + GENERAL ASSURANCE PENSIONS MANAGEMENT LIMITED

16,057

1.22%

JP MORGAN CHASE BANK 385781

13,669

1.04%

THE HACHIJUNI BANK,LTD.

13,0850.99%

JP MORGAN CHASE BANK 385771

12,1170.92%

862,375

65.33%

Total of top 10 unitholders▮ Changes in investment unitholder ratio by owner(End of each fiscal period)

Total number ofoutstanding
10.81%
investment units
as of September 30, (142,700)
20220: 1,320,000
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▮ Changes in number of investment unitholders by owner(End of each fiscal period)■ Total number of investment unitholders

41.77%(551,338)

28.62%(377,723)

18.81%(248,239)

Period ended
September 2022

18,598名

Period ended
March 2022

18,819名

Period ended
September 2021

41.87%(552,683)

28.61%(377,595)

18.55%(244,868)

19,386名■ Individuals and others
Period ended
September 2022

17,895名

Period ended
March 2022

42.08%(555,505)

28.65%(378,223)

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

17.77%(234,591)

18,127名

Period ended
September 2021

18,691名■ Financial institutions(incl. securities companies)■ Other domestic
corporations

Period ended
September 2022

126名

Period ended
September 2022

125名

Period ended
March 2022

131名

Period ended
September 2021

Period ended
March 2022
Period ended
September 2021

■ Overseas corporations
and individuals

303名

Period ended
September 2022

274名

302名

Period ended
March 2022

265名

304名

Period ended
September 2021

260名

45

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Changes in Unit Prices

5. Reference▮ Closing Unit price and trading volume February 13, 2004 to September 30, 2022
Unit price（Thousand yen）

Trading volume

Unit price400

Trading volume

50,000
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
35,00030,000200

25,00020,00015,000100
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 September 30, 2022
MTR's unit price300

TSE REIT Index

TOPIX

250
200
150
100
50
0
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22*A base of 100 is used to compare MTR’s unit price at IPO with the TSE REIT Index and TOPIX.

46

Fiscal Period Ended September 2022 (41st 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(%)(yen/month, tsubo)

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

20

12,50015
10,00010

5,000Mar-22Mar-21

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

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-09Mar-08Mar-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)
12,5007,500

5Sendai 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-13Mar-120

Mar-11

Mar-22Mar-21

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

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-105,000

Mar-090

Mar-08Mar-22Mar-21

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

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-09Mar-08Mar-07Mar-06

Fukuoka business districts: Akasaka Daimyo, Tenjin, Yakuin and
Watanabe Dori, Gion and Gofukumachi,
Hakata Station front, Hakata Station Eastand South

10,0007,500
5Mar-075,000

012,50010Mar-06

7,500

Average vacancy rate (left axis)

20

(yen/
month, tsubo)

10,000
10

5

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.

47

Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

Asset Management Company Remuneration Methods

5. Reference(The end of the fiscal period ended September 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.49~P50

48

Notes (1)Fiscal Period Ended September 2022 (41st 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 - Total distribution) ÷ Number of investment units issued

P11(Note 1) The amounts include expenses for construction scheduled to be undertaken by the time of sale and expenses for this sale. The amounts are estimates because all expenses have not been finalized.
(Note 2) The above figure is the annual NOI (after the completion of acquisition in three parts) for the Property for Acquisition and excludes special factors in the fiscal year of acquisition. The expected NOI is calculated based on theassumed occupancy rate (95.0%).

P12(Note 1) 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 2) Total rent area and total rentable are indicated as an area calculated by multiplying the floor area of the whole building (42,941.53m2) by MTR's co-ownership interest (90.854%) as of February 29, 2024 (after the completionof the acquisition in three parts)

P19＜Environmental Management System (EMS)＞* 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 leasehold interest).
＜Environmental Performance Targets＞* 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 and utilization rate of each property.
＜Environmental Performance Data＞*Excluding properties (dedicated areas of residential houses, etc.) the data for which cannot be easily assessed, although all properties owned by MTR are included for the compilation of data (excluding land with leasehold interest, etc.)*Scope 3: Emissions from areas under the management of tenants (Category-13)*Aggregation period is one year from April 1 each year to March 31 of the following year.
*The confirmation of a third party (Yasui Architects & Engineers, Inc.) has been obtained regarding total CO2 emissions, energy consumption and water consumption.

P20＜Management of waste＞*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.

P28(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.

P37(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 2022 (annual basis) / Acquisition price

P38(Note 1) For Frespo Inage, the direct reduction method is not adopted.
(Note 2) For Frespo Inage, the cap rate and the terminal cap rate have not been established.
(Note 3) 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.

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Notes (2)Fiscal Period Ended September 2022 (41st Fiscal Period) Information Package

P39(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. 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.

P40(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) 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 1.

P41〜43(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 September 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.

P48(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 rate50

Fiscal Period Ended September 2022 (41st 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

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